UAE News: Top Backer of Dubai App Fetchr Warns Startup Faces Liquidation - Bloomberg
Dubai courier app Fetchr, once among the Middle East’s most promising startups, is considering filing for liquidation after becoming “insolvent” because of a disputed tax bill in Saudi Arabia, according to one of its top investors.
It would be Fetchr’s second brush with bankruptcy after the logistics firm nearly went under around the end of 2019 but staved off collapse through an emergency funding package and a turnaround plan that involved expanding in Saudi Arabia. Fetchr was valued at almost $300 million in a 2017 fundraising round.
Fetchr was still trying to complete its rescue fundraising when the Saudi tax authority imposed a $100 million bill last summer for unpaid value-added tax and zakat, an Islamic levy, according to a letter sent recently by venture capital firm BECO Capital, a major backer of the startup, to its own investors.
The company is now “insolvent,” and an extraordinary general meeting is scheduled for Sept. 29 “to discuss the best course of action forward,” according to the letter.
Wednesday, 6 October 2021
#Saudi Exchange Tadawul Is Said Close to IPO at $4 Billion Value - Bloomberg
Saudi Exchange Tadawul Is Said Close to IPO at $4 Billion Value - Bloomberg
Saudi Arabia’s stock exchange is close to announcing plans for a long-awaited initial public offering that could value it at as much as $4 billion, according to people familiar with the matter.
Tadawul, as it is known, may publish details of its IPO as soon as this month, the people said, asking not to be identified because the information is private. Deliberations are ongoing and no final decisions on timeframe have been taken, they said.
A representative for Tadawul declined to comment.
Riyadh has been the hottest market for IPOs in the Middle East in recent years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the city hosted the $29 billion offering of the world’s biggest oil producer, Saudi Arabian Oil Co., with shares being sold mostly to Saudi investors seeking guaranteed dividends.
Last month, Saudi Telecom Co.’s internet-services unit surged on its trading debut in Riyadh after drawing $126 billion in orders for its IPO. Plenty more are in the pipeline, including those of Saudi Basic Industries Corp.’s specialty chemicals business and cargo firm Saudi Arabian Logistics Co.
An IPO of Tadawul has been on the cards since at least 2016, when it hired HSBC Holdings Plc as an adviser. Things moved a step closer in April as Tadawul changed its corporate structure, creating subsidiaries for its exchange, clearing, depository and technology-services businesses. Soon after it hired Citigroup Inc., JPMorgan Chase & Co., and NCB Capital Co. as financial advisers and global coordinators for the IPO.
A successful listing of Tadawul would represent one of the largest in the exchange sector since Euronext NV, the operator of markets in countries including Belgium, France, the Netherlands and Portugal, went public through a $1.2 billion deal in 2014. Boursa Kuwait found favor with investors for its market debut last year.
Elsewhere, National Stock Exchange of India Ltd. has revived plans for an IPO, while Turkey’s sovereign wealth fund has considered a listing of Borsa Istanbul AS.
Saudi Arabia’s stock exchange is close to announcing plans for a long-awaited initial public offering that could value it at as much as $4 billion, according to people familiar with the matter.
Tadawul, as it is known, may publish details of its IPO as soon as this month, the people said, asking not to be identified because the information is private. Deliberations are ongoing and no final decisions on timeframe have been taken, they said.
A representative for Tadawul declined to comment.
Riyadh has been the hottest market for IPOs in the Middle East in recent years, with new offerings oversubscribed, mostly by local retail and institutional investors. In 2019, the city hosted the $29 billion offering of the world’s biggest oil producer, Saudi Arabian Oil Co., with shares being sold mostly to Saudi investors seeking guaranteed dividends.
Last month, Saudi Telecom Co.’s internet-services unit surged on its trading debut in Riyadh after drawing $126 billion in orders for its IPO. Plenty more are in the pipeline, including those of Saudi Basic Industries Corp.’s specialty chemicals business and cargo firm Saudi Arabian Logistics Co.
An IPO of Tadawul has been on the cards since at least 2016, when it hired HSBC Holdings Plc as an adviser. Things moved a step closer in April as Tadawul changed its corporate structure, creating subsidiaries for its exchange, clearing, depository and technology-services businesses. Soon after it hired Citigroup Inc., JPMorgan Chase & Co., and NCB Capital Co. as financial advisers and global coordinators for the IPO.
A successful listing of Tadawul would represent one of the largest in the exchange sector since Euronext NV, the operator of markets in countries including Belgium, France, the Netherlands and Portugal, went public through a $1.2 billion deal in 2014. Boursa Kuwait found favor with investors for its market debut last year.
Elsewhere, National Stock Exchange of India Ltd. has revived plans for an IPO, while Turkey’s sovereign wealth fund has considered a listing of Borsa Istanbul AS.
Oil retreats from multi-year highs after U.S. stock build | Reuters
Oil retreats from multi-year highs after U.S. stock build | Reuters
Oil prices dropped nearly 2% on Wednesday, pulling back from multi-year highs, as an unexpected rise in U.S. crude inventories prompted buyers to take a breather after recent torrid gains.
U.S. crude inventories rose by 2.3 million barrels last week, against expectations for a modest dip of 418,000 barrels, the U.S. Energy Department said. Gasoline inventories also rose, while distillate inventories were down only modestly.
Brent crude hit $83.47 a barrel, its highest since October 2018, but settled at $81.08, down $1.48 a barrel, or 1.8%. U.S. crude climbed to $79.78, highest since November 2014, before retreating to $77.43 for a daily decline of $1.50 or 1.9%.
"We saw some profit taking as oil had run up significantly," said Gary Cunningham, director at Tradition Energy in Stamford, Conn.
Oil prices dropped nearly 2% on Wednesday, pulling back from multi-year highs, as an unexpected rise in U.S. crude inventories prompted buyers to take a breather after recent torrid gains.
U.S. crude inventories rose by 2.3 million barrels last week, against expectations for a modest dip of 418,000 barrels, the U.S. Energy Department said. Gasoline inventories also rose, while distillate inventories were down only modestly.
Brent crude hit $83.47 a barrel, its highest since October 2018, but settled at $81.08, down $1.48 a barrel, or 1.8%. U.S. crude climbed to $79.78, highest since November 2014, before retreating to $77.43 for a daily decline of $1.50 or 1.9%.
"We saw some profit taking as oil had run up significantly," said Gary Cunningham, director at Tradition Energy in Stamford, Conn.
How a Global Foundry Is Losing Money in a Chip Boom - Bloomberg
How a Global Foundry Is Losing Money in a Chip Boom - Bloomberg
The current state of the global semiconductor market has been alternatively labeled by auto makers, politicians and executives as a shortage, a crisis, and even a squeeze. For the companies at the center of it all, the only word to describe what we’re seeing is a chip boom. It’s inexplicable, then, that any company which ought to be bathing in profits could still be losing money.
Enter GlobalFoundries Inc. The New York-based company is the world’s third-largest contract chipmaker and has just filed for a Nasdaq listing. With shares of leader Taiwan Semiconductor Manufacturing Co. up more than double since the darkest days of the Covid-19 pandemic, and nearest rival United Microelectronics Corp. rising almost five fold, investors ought to be clamoring over GlobalFoundries’ $1 billion offering.
Like its rivals, GlobalFoundries manufactures chips based on the designs of clients, most of which don’t have their own factories. Rather than land the most-advanced orders for components like smartphone processors and graphics chips, the company in 2018 reoriented its strategy toward chasing down older product types — which it euphemistically calls “feature rich” — that include parts that convert sound and images to digital signals.
Supplying older semiconductor products doesn’t attract the high prices commanded by TSMC, but they are much cheaper and easier to make. With modern cars lacking much-needed sensors, and even Apple Inc. noting the impact on iPad and iPhone sales, this ought to be a golden era for GlobalFoundries.
The current state of the global semiconductor market has been alternatively labeled by auto makers, politicians and executives as a shortage, a crisis, and even a squeeze. For the companies at the center of it all, the only word to describe what we’re seeing is a chip boom. It’s inexplicable, then, that any company which ought to be bathing in profits could still be losing money.
Enter GlobalFoundries Inc. The New York-based company is the world’s third-largest contract chipmaker and has just filed for a Nasdaq listing. With shares of leader Taiwan Semiconductor Manufacturing Co. up more than double since the darkest days of the Covid-19 pandemic, and nearest rival United Microelectronics Corp. rising almost five fold, investors ought to be clamoring over GlobalFoundries’ $1 billion offering.
Like its rivals, GlobalFoundries manufactures chips based on the designs of clients, most of which don’t have their own factories. Rather than land the most-advanced orders for components like smartphone processors and graphics chips, the company in 2018 reoriented its strategy toward chasing down older product types — which it euphemistically calls “feature rich” — that include parts that convert sound and images to digital signals.
Supplying older semiconductor products doesn’t attract the high prices commanded by TSMC, but they are much cheaper and easier to make. With modern cars lacking much-needed sensors, and even Apple Inc. noting the impact on iPad and iPhone sales, this ought to be a golden era for GlobalFoundries.
MIDEAST STOCKS #Saudi index at 14-year high, other gulf indexes mixed | Reuters
MIDEAST STOCKS Saudi index at 14-year high, other gulf indexes mixed | Reuters
Saudi Arabia's stock market edged up to its highest in nearly 14 years on Wednesday as oil prices rose, while performances across other major Gulf bourses were mixed.
Oil hit a multi-year high above $83 a barrel, supported by an OPEC+ refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.
Saudi Arabia's benchmark index (.TASI) was 0.1% higher, with Al Rajhi Bank (1120.SE) rising 0.8% and Saudi Telecom Company (7010.SE) up 2.4%.
Elsewhere, oil giant Saudi Aramco (2222.SE) gained 0.7%.
Aramco will complete its 1 million barrel per day (bpd) oil output expansion project by 2027 to bring its total production to 13 million bpd, its CEO said on Monday.
Aramco also aims to expand its oil trading business to 8 million bpd over the next five years from its current 5.5 million bpd, he added.
Saudi Arabia's non-oil private sector grew in September, with new orders rising at the fastest rate in seven years, a business survey showed, as a relaxation of COVID-19 restrictions on activity and travel boosted customer demand.
The Qatari index (.QSI) advanced 0.7%, with Qatar National Bank (QNBK.QA) rising 1.6%.
In Abu Dhabi, the index (.ADI) fell 0.4%, weighed down by a 1.3% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.4% drop in Emirates Telecommunications Group (ETISALAT.AD).
Dubai's main share index (.DFMGI) declined 1.2%, extending losses for a third consecutive session, dragged down by a 3.7% slide in Emirates NBD Bank (ENBD.DU).
The Dubai market remains under pressure as investors try to secure their gains and weigh the impact of the global economic slowdown on the local market, said Wael Makarem, senior market strategist at Exness.
"Concerns remain around the global economic slowdown and inflation levels, which are becoming more durable and are further fueled by energy prices. Resilient inflation could push central banks to amend their monetary policy ahead of schedule."
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.9% higher, led by a 2.4% rise in Commercial International Bank (COMI.CA).
Saudi Arabia's stock market edged up to its highest in nearly 14 years on Wednesday as oil prices rose, while performances across other major Gulf bourses were mixed.
Oil hit a multi-year high above $83 a barrel, supported by an OPEC+ refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.
Saudi Arabia's benchmark index (.TASI) was 0.1% higher, with Al Rajhi Bank (1120.SE) rising 0.8% and Saudi Telecom Company (7010.SE) up 2.4%.
Elsewhere, oil giant Saudi Aramco (2222.SE) gained 0.7%.
Aramco will complete its 1 million barrel per day (bpd) oil output expansion project by 2027 to bring its total production to 13 million bpd, its CEO said on Monday.
Aramco also aims to expand its oil trading business to 8 million bpd over the next five years from its current 5.5 million bpd, he added.
Saudi Arabia's non-oil private sector grew in September, with new orders rising at the fastest rate in seven years, a business survey showed, as a relaxation of COVID-19 restrictions on activity and travel boosted customer demand.
The Qatari index (.QSI) advanced 0.7%, with Qatar National Bank (QNBK.QA) rising 1.6%.
In Abu Dhabi, the index (.ADI) fell 0.4%, weighed down by a 1.3% fall in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 0.4% drop in Emirates Telecommunications Group (ETISALAT.AD).
Dubai's main share index (.DFMGI) declined 1.2%, extending losses for a third consecutive session, dragged down by a 3.7% slide in Emirates NBD Bank (ENBD.DU).
The Dubai market remains under pressure as investors try to secure their gains and weigh the impact of the global economic slowdown on the local market, said Wael Makarem, senior market strategist at Exness.
"Concerns remain around the global economic slowdown and inflation levels, which are becoming more durable and are further fueled by energy prices. Resilient inflation could push central banks to amend their monetary policy ahead of schedule."
Outside the Gulf, Egypt's blue-chip index (.EGX30) finished 0.9% higher, led by a 2.4% rise in Commercial International Bank (COMI.CA).
Oil drops after hitting multi-year high amid global energy crunch | Reuters
Oil drops after hitting multi-year high amid global energy crunch | Reuters
Oil dropped on Wednesday after hitting a multi-year high above $83 a barrel, pressured by an American Petroleum Institute (API) report showing rising crude inventories in the United States and technical indicators suggesting prices have rallied too fast.
The latest surge in the price of crude was underpinned by the refusal of the Organization of the Petroleum Exporting Countries and allies to boost output faster and comes against a backdrop of concern about tight energy supply globally.
On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the United States and other consumer nations have been urging. read more
Brent crude rose as high as $83.47, the highest since October 2018, and at 1335 GMT was down 98 cents, or 1.2%, at $81.58. U.S. crude climbed to $79.78, the highest since November 2014, before retreating to trade 71 cents lower at $78.22.
Oil dropped on Wednesday after hitting a multi-year high above $83 a barrel, pressured by an American Petroleum Institute (API) report showing rising crude inventories in the United States and technical indicators suggesting prices have rallied too fast.
The latest surge in the price of crude was underpinned by the refusal of the Organization of the Petroleum Exporting Countries and allies to boost output faster and comes against a backdrop of concern about tight energy supply globally.
On Monday, OPEC, Russia and other allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the United States and other consumer nations have been urging. read more
Brent crude rose as high as $83.47, the highest since October 2018, and at 1335 GMT was down 98 cents, or 1.2%, at $81.58. U.S. crude climbed to $79.78, the highest since November 2014, before retreating to trade 71 cents lower at $78.22.
Oil hits multi-year high on OPEC+ restraint amid global energy crunch | Reuters
Oil hits multi-year high on OPEC+ restraint amid global energy crunch | Reuters
Oil hit a multi-year high on Wednesday above $83 a barrel, supported by OPEC+'s refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.
The market later unwound those gains due to an American Petroleum Institute (API) report showing rising crude inventories in the United States and, analysts said, technical indicators suggesting oil has rallied too fast.
On Monday, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the U.S. and other consumer nations have been urging. read more
Brent crude rose as high as $83.47, the highest since October 2018, and at 1115 GMT was down 40 cents, or 0.5%, at $82.16. U.S. crude climbed to $79.78, the highest since November 2014, and was later down 35 cents at $78.58.
Oil hit a multi-year high on Wednesday above $83 a barrel, supported by OPEC+'s refusal to ramp up production more rapidly against a backdrop of concern about tight energy supply globally.
The market later unwound those gains due to an American Petroleum Institute (API) report showing rising crude inventories in the United States and, analysts said, technical indicators suggesting oil has rallied too fast.
On Monday, the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, chose to stay with a plan to increase output gradually and not boost it further as the U.S. and other consumer nations have been urging. read more
Brent crude rose as high as $83.47, the highest since October 2018, and at 1115 GMT was down 40 cents, or 0.5%, at $82.16. U.S. crude climbed to $79.78, the highest since November 2014, and was later down 35 cents at $78.58.
Shareholders approve merger of Qatari lenders Masraf Al Rayan, Al Khalij | ZAWYA MENA Edition
Shareholders approve merger of Qatari lenders Masraf Al Rayan, Al Khalij | ZAWYA MENA Edition
Qatari lender Masraf Al Rayan’s shareholders have approved the proposed merger with Al Khalij Commercial Bank in a move that would create one of the largest Islamic banks in the Middle East, according to a disclosure on Wednesday.
The merger by way of absorption will be completed through the issuance of new shares in Masraf Al Rayan to Al Khalij’s shareholders, subject to regulatory approvals and meeting of all the conditions set out in the merger agreement signed by the two entities in January, a statement to the Qatar Stock Exchange said.
Shareholders also approved the proposal to assume Al Khalij’s liabilities, which include term loan facilities of $120 million and trade facilities of $65 million which were provided by Arab Banking Corporation and Industrial Commercial Bank of China in 2017 and 2019, respectively.
The two lenders first announced the merger plan last year. In a previous filing, they said the proposal “will lead to the creation of one of the largest [shariah-compliant] banks in Qatar and the Middle East”.
The merged entity is expected to have 164 billion riyals ($45 billion) in assets.
Qatari lender Masraf Al Rayan’s shareholders have approved the proposed merger with Al Khalij Commercial Bank in a move that would create one of the largest Islamic banks in the Middle East, according to a disclosure on Wednesday.
The merger by way of absorption will be completed through the issuance of new shares in Masraf Al Rayan to Al Khalij’s shareholders, subject to regulatory approvals and meeting of all the conditions set out in the merger agreement signed by the two entities in January, a statement to the Qatar Stock Exchange said.
Shareholders also approved the proposal to assume Al Khalij’s liabilities, which include term loan facilities of $120 million and trade facilities of $65 million which were provided by Arab Banking Corporation and Industrial Commercial Bank of China in 2017 and 2019, respectively.
The two lenders first announced the merger plan last year. In a previous filing, they said the proposal “will lead to the creation of one of the largest [shariah-compliant] banks in Qatar and the Middle East”.
The merged entity is expected to have 164 billion riyals ($45 billion) in assets.
#UAE starts selling first federal government dollar bonds | Reuters
UAE starts selling first federal government dollar bonds | Reuters
The United Arab Emirates started marketing a triple-tranche U.S. dollar-denominated bond on Wednesday, the first issued by the federal government rather than individual emirates, in a sale to be concluded the same day, a document showed.
The bonds have tranches of 10, 20, and 40 years. The 10-year notes were offered with an initial price guidance of about 105 basis points (bps) over U.S. Treasuries, the 20-year at about 135 bps over the same benchmark, and the 40-year at about 3.6%.
The 40-year portion will be Formosa bonds, which are debt securities sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The UAE finance ministry is expected to raise between $3 billion and $3.5 billion, two sources familiar with the matter have told Reuters. read more
The United Arab Emirates started marketing a triple-tranche U.S. dollar-denominated bond on Wednesday, the first issued by the federal government rather than individual emirates, in a sale to be concluded the same day, a document showed.
The bonds have tranches of 10, 20, and 40 years. The 10-year notes were offered with an initial price guidance of about 105 basis points (bps) over U.S. Treasuries, the 20-year at about 135 bps over the same benchmark, and the 40-year at about 3.6%.
The 40-year portion will be Formosa bonds, which are debt securities sold in Taiwan by foreign borrowers and denominated in currencies other than the Taiwanese dollar.
The UAE finance ministry is expected to raise between $3 billion and $3.5 billion, two sources familiar with the matter have told Reuters. read more
U.S. oil rises to highest since 2014 amid global energy crunch | Reuters
U.S. oil rises to highest since 2014 amid global energy crunch | Reuters
U.S. oil prices rose for a fifth day on Wednesday to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets.
Brent crude prices also climbed for a fourth day on the supply anxiety, particularly after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided on Monday to stay with their planned output increase rather than boosting it further.
U.S. West Texas Intermediate (WTI) oil earlier rose to $79.47 a barrel, the highest since November 2014. The market was up 0.53%, or 42 cents, at $79.35 a barrel, as of 0652 GMT.
Brent crude added 0.8%, or 66 cents, to $83.22 a barrel, trading near last session's three-year high.
U.S. oil prices rose for a fifth day on Wednesday to their highest since 2014 amid global concerns about energy supply on signs of tightness in crude, natural gas and coal markets.
Brent crude prices also climbed for a fourth day on the supply anxiety, particularly after the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided on Monday to stay with their planned output increase rather than boosting it further.
U.S. West Texas Intermediate (WTI) oil earlier rose to $79.47 a barrel, the highest since November 2014. The market was up 0.53%, or 42 cents, at $79.35 a barrel, as of 0652 GMT.
Brent crude added 0.8%, or 66 cents, to $83.22 a barrel, trading near last session's three-year high.