#UAE Approves Four-Year Federal Budget Focused on Social Spending - Bloomberg

UAE Approves Four-Year Federal Budget Focused on Social Spending - Bloomberg

The United Arab Emirates approved its federal budget to 2026 and focused most of next year’s spending on social benefits and development.

The Gulf country approved a total of 58.9 billion dirhams ($16 billion) of spending in 2022, nearly the same as last year. Most of the spending is going to development and social benefits, according to the state-run WAM news agency. Nearly 16% will go to higher education, 6% to social affairs, 8.4% to the health sector and 3.8% to infrastructure and economic resources.

The total budget allocation for 2022-2026 is 290 billion dirhams. The decisions came during a cabinet session held at Expo2020, the $7 billion global exhibition that opened last month in Dubai.

The UAE has said it begun winding down an economic support program that was launched in response to the coronavirus pandemic, citing signs of gradual recovery. The country has one of the world’s fasted vaccination campaigns and has so far administered 20.5 million doses. Daily virus cases have remained under 200 for weeks.

The country sold $4 billion in bonds last week, its first ever federal dollar notes. Its debt is rated by Moody’s Investors Service at Aa2, the third-highest investment grade, and one step lower at AA- by Fitch Ratings. The federation is comprised of Abu Dhabi, Dubai, Sharjah, Ajman, Umm Al Quwain, Fujairah and Ras Al Khaimah.

During its session, the government also formed new federal councils including one for the general budget and taxes and another for infrastructure and housing.

#Saudi energy minister to discuss energy cooperation with Britain - cabinet | Reuters

Saudi energy minister to discuss energy cooperation with Britain - cabinet | Reuters

Saudi Arabia's energy minister will discuss with Britain a cooperation agreement in the energy field, a cabinet statement said on Tuesday without providing further details.

Oil steadies after energy crunch stirs up volatility | Reuters

Oil steadies after energy crunch stirs up volatility | Reuters

Oil prices steadied after whipsawing in a volatile session on Tuesday, as traders weighed the effect that higher energy costs could have on the global economic recovery.

Brent crude fell 23 cents to settle at $83.42 a barrel, after trading from a high of $84.23 to a low of $82.72. On Monday, the global benchmark hit $84.60, its highest since October 2018.

U.S. West Texas Intermediate crude futures (WTI) ended 12 cents higher at $80.64 a barrel, after ranging between $81.62 and $79.47.

Brent has risen for five consecutive weeks, while WTI has notched seven straight weeks of gains. Both contracts have risen by more than 15% since the start of September.

IMF increases #Saudi 2021 growth forecast slightly | ZAWYA MENA Edition

IMF increases Saudi 2021 growth forecast slightly | ZAWYA MENA Edition

The International Monetary Fund (IMF) expects Saudi Arabia, the biggest Arab economy, to post 2.8% economic growth this year, it said on Tuesday.

In July it had forecast 2.4% gross domestic product growth for 2021.

Saudi growth for next year is seen at 4.8%, the IMF said in its latest World Economic Outlook, keeping unchanged its previous forecast.

Saudi Arabia's economy contracted by 4.8% last year amid the twin shocks of the coronavirus pandemic and lower oil prices.

The Saudi ministry of finance said last month it expected 2.6% growth this year followed by a 7.5% expansion in 2022.

#Saudi Mining Plan Gets $3 Billion EV Boost From Australian Firm - Bloomberg

Saudi Mining Plan Gets $3 Billion EV Boost From Australian Firm - Bloomberg

An Australian company plans to invest $3 billion in Saudi Arabia in a bet on the metals used in batteries for electric vehicles.

EV Metals Group Plc’s spending will be on building plants to process minerals including lithium and nickel, and later expand into exploring for the battery metals, Managing Director and Chief Executive Officer Michael Naylor said. It would be one of the first major deals since Saudi Arabia passed a law to attract investments in mining as it looks to diversify its oil-dominated economy.

“We’re the first mover and we’ve got the know-how, the technology and the technical capabilities to bring to the kingdom to explore for these metals,” Naylor said in an interview. Based on its studies, EV Metals is “optimistic” it will find significant deposits of the materials used for electric car batteries in Saudi Arabia, he said.

The processing facilities will be developed over the next nine years, Naylor said. The company also has more than 15 applications for exploration licenses in the kingdom, and is looking for deposits of lithium, nickel and cobalt, he said.

ACWA Power IPO, Quote: Saudi Arabia IPO Stock Sinks on Riyadh Exchange - Bloomberg

ACWA Power IPO, Quote: Saudi Arabia IPO Stock Sinks on Riyadh Exchange - Bloomberg

ACWA Power International slumped as much as 10% on its second day as a listed company, giving up some gains from a debut that saw the stock surge by the daily limit.

Shares in the utility closed down 8.4% at 66.7 riyals ($17.78) on Tuesday. All six companies that have listed in the kingdom this year have surged on opening day, but ACWA is the first that hasn’t been able to carry the momentum into a second session.

Still, the company is seen as key to Saudi Arabia’s efforts to diversify from oil and analysts expect it to continue to grow. ACWA’s IPO attracted more than $300 billion in orders and it raised more than $1.2 billion in the biggest Saudi Arabian listing since Aramco’s two years ago.

#AbuDhabi launches 5 billion dirham IPO fund -media office | Reuters

Abu Dhabi launches 5 billion dirham IPO fund -media office | Reuters

Abu Dhabi's Supreme Council for Financial and Economic Affairs on Tuesday launched a 5 billion dirham ($1.4 billion) IPO fund to strengthen the Abu Dhabi Securities Exchange (ADX) as a leading stock market, the emirate's media office said in a tweet.

The IPO fund will invest in five to 10 private companies per year, with a focus on small and medium enterprises (SMEs). It will have a target ticket size of between 10% and 40% of the float, the media office added.

The Abu Dhabi stock index (.ADI) is the best performing market in the Gulf region this year, up 54% year to date, helped by higher oil prices, incentives to boost trading and more listings.

ADX is seeing a surge of new listings this year including companies owned by oil giant Abu Dhabi National Oil Co (ADNOC) and state investor Mubadala.

#SaudiArabia to ask foreign energy companies to up domestic input to 70%- sources | Reuters

Saudi Arabia to ask foreign energy companies to up domestic input to 70%- sources | Reuters

Saudi Arabia will require foreign firms working in the energy sector, including petrochemicals and water desalination, to boost local input to at least 70% in order to secure government contracts, three sources familiar with the matter said.

Energy Minister Prince Abdulaziz bin Salman discussed the plan to increase domestic input with local and international energy executives at a gathering in the Eastern city of Dammam last week, they said, confirming a video recording of his comments seen by Reuters.

He said the energy ministry would hold an event to announce the timeline, targets and mechanism for the plan, the latest effort to create new industries and generate jobs under Crown Prince Mohammed bin Salman's push to diversify the economy of the world's top oil exporter away from crude revenues.

Requirements for energy sector local content -- which include workers, supplies and operations as well as added value -- are currently around 30 to 35% but it is not clear how strictly these are enforced.

MIDEAST STOCKS Major stock markets track oil prices higher | Reuters

MIDEAST STOCKS Major stock markets track oil prices higher | Reuters

Major stock markets in the Gulf rose on Tuesday with higher oil prices, with the Abu Dhabi index extending gains for a third consecutive session.

Oil headed towards $84 a barrel and was within sight of a three-year high as a rebound in global demand contributes to energy shortages in big economies such as China.

Saudi Arabia's benchmark index (.TASI) finished 0.3% higher, led by a 0.8% gain in Al Rajhi Bank (1120.SE) and a 2.1% rise in Saudi Arabian Mining Company (1211.SE).

Among other gainers, oil giant Saudi Aramco (2222.SE) added 0.5%. Aramco has asked banks to arrange a loan expected to be in the $12-14 billion range that it plans to offer to buyers of its gas pipeline network, Reuters reported citing sources, as the oil giant advances plans to raise funds from asset sales. read more

However, renewable energy utility ACWA Power International (2082.SE) fell more than 8%, a day after jumping 30% in its market debut following a $1.2 billion IPO.

The kingdom's Nayifat Finance Company said on Tuesday it plans an initial public offering on the Riyadh stock exchange with a free float of 35% of its shares. read more

In Abu Dhabi, the index (.ADI) reversed early losses to inch 0.1% higher, with Emirates Telecommunications Group (ETISALAT.AD) rising 1.1% and conglomerate International Holding Co (IHC) (IHC.AD) nudging up 0.1%.

IHC has agreed to acquire 51% of Bin Suhail Group through a subsidiary to form a beauty industry joint venture, it said on Monday. read more

Dubai's main share index (.DFMGI) advanced 0.6%, bolstered by a 2.3% rise in Emirates NBD Bank (ENBD.DU) and a 0.6% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

However, Emaar Malls (EMAA.DU) retreated 1.5%.

Emaar Properties (EMAR.DU) said on Monday shareholders had approved an all-share merger with Emaar Malls.

The Qatari benchmark (.QSI) rose 0.2%, helped by a 1% gain in petrochemical maker Industries Qatar (IQCD.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 0.7%, with most of its stocks in positive territory, including top lender Commercial International Bank (COMI.CA).

Oil nears three-year high on energy crunch fears | Reuters

Oil nears three-year high on energy crunch fears | Reuters

Oil rose towards $84 a barrel on Tuesday, within sight of a three-year high, supported by a rebound in global demand that is contributing to energy shortages in big economies such as China.

With demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries (OPEC) and allied producers, collectively known as OPEC+, are sticking to plans to restore output gradually rather than boost supply quickly.

"OPEC+ will push ahead with its cautious approach to supply in the year-end period. Set against this backdrop, oil bears will remain in hibernation mode," said Stephen Brennock of oil broker PVM.

Brent crude was up 23 cents, or 0.3%, at $83.88 a barrel by 1130 GMT. On Monday it reached $84.60, the highest since October 2018. U.S. oil gained 41 cents, or 0.5%, to $80.93, having hit its highest since late 2014 on Monday at $82.18.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar close

Oil price rebound widens Middle East economic fault lines -IIF | Reuters

Oil price rebound widens Middle East economic fault lines -IIF | Reuters

Rebounding oil prices are widening economic gaps between oil exporters and importers in the Middle East and North Africa, the Institute of International Finance (IIF) said.

The region is set for growth of 2.3% this year and 4.3% in 2022 after a consolidated 3.8% gross domestic product contraction last year, the IIF, a trade body for the global financial industry, said in a report.

“While the economic recovery continues to gain momentum, a split in macroeconomic prospects has emerged within the region ... the divergence in economic performance between oil-exporting and oil-importing countries has widened further,” it said.

Oil-producing countries are set for current account surpluses of $165 billion this year and $138 billion next year after a current account deficit of $6 billion last year based on oil price forecasts of $71 per barrel this year and $66 next year, the IIF said.

Israeli AI chipmaker Hailo raises $136 mln, valued at $1 bln | Reuters

Israeli AI chipmaker Hailo raises $136 mln, valued at $1 bln | Reuters

Hailo, an artificial intelligence-focused, Israel-based chipmaker, said on Tuesday it raised $136 million in a private funding round led by Poalim Equity and Gil Agmon.

A source closed to the company said the financing was done at a valuation of $1 billion, making Hailo a unicorn.

Existing investors including Israeli entrepreneur and Hailo Chairman Zohar Zisapel, Swiss-based ABB Technology Ventures (ATV), London’s Latitude Ventures, Israel’s OurCrowd, and new investors, including Carasso Motors, Comasco, Shlomo Group, Talcar Corporation Ltd., and Automotive Equipment (AEV) also participated in the round, Hailo said.

Hailo’s total funding has reached $224 million.

The funds, it said, will be used to address growing interest in its AI Processor for Edge Devices, allowing the company to further develop its next-generation products and expand into both new and existing global markets.

Hailo said Mooly Eden, a former senior vice president at Intel Corp, will join its board of directors while Eyal Waldman, co-Founder and former CEO of Mellanox Technologies, will join its advisory board.

Retail group Marka declared bankrupt by #Dubai court in landmark judgement | Business – Gulf News

Retail group Marka declared bankrupt by Dubai court in landmark judgement | Business – Gulf News

The UAE retail and leisure company, Marka, has been declared bankrupt by a local court and all of its its assets brought into liquidation. The court order applies to all the Marka subsidiaries as well, and also requires board members to pay up Dh448 million to creditors.

According to a ruling by a Dubai court, the company’s managers and directors were stripped of all rights to manage the company or its subsidiaries. This followed a case brought against Marka, which had at its peak gone through a hugely successful IPO and listed on DFM, by creditors.

They cannot manage or dispose of the company’s funds, pay out any claims or borrow any sums under its name. In addition, they will have to hand over to the court-appointed bankruptcy trustee all funds and documents of the company within five days of the date of the ruling.

#Saudi SEDCO Capital and Amundi launch two new Shariah equity funds | ZAWYA MENA Edition

Saudi SEDCO Capital and Amundi launch two new Shariah equity funds | ZAWYA MENA Edition

Saudi Arabia’s SEDCO Capital, a global Shariah-compliant firm with over $5 billion in assets under management has launched two new global passive equity funds in partnership with asset manager Amundi.

The $69 million SC Global Listed Infrastructure Equity Fund will broadly replicate the performance of the FTSE Custom Global Core Infrastructure 50/50 Islamic Net Return Index.

The SC Global Low Volatility Equity Fund, with $91 million, will broadly replicate the performance of Dow Jones Islamic Market World Low Volatility 300 Net Total Return Index.

Both funds will be Shariah compliant and adhere to responsible investment principles, the firms said in a statement on Tuesday.

#Dubai real estate recovery 'fragile' and uneven, S&P says | Reuters

Dubai real estate recovery 'fragile' and uneven, S&P says | Reuters

Dubai real estate prices have rebounded strongly from a record low at the end of 2020, but demand is uneven and oversupply of residential properties will pressure prices in the long run, making the recovery fragile, S&P Global Ratings said.

Real estate investment firm CBRE Group said last week that average residential property prices in Dubai rose 4.4% in the 12 months to August, the highest annual growth since February 2015, but an ongoing fall in apartment rents signalled continued weakness in the long-troubled sector.

"The rebound in demand for residential real estate has largely benefited premium developers with a surge in pre-sales and price improvements," S&P said.

It said market data showed that apartments, which make up 85-90% of properties, experienced a price increase of about 6% in the second quarter. The rates for villas have also accelerated while rents for apartments are still lagging.

#Dubai's DP World, UK's CDC to invest up to $1.7 bln in Africa | Reuters

Dubai's DP World, UK's CDC to invest up to $1.7 bln in Africa | Reuters

Dubai ports giant DP World and Britain's development finance agency CDC Group on Tuesday said they planned to jointly invest up to $1.72 billion in logistics infrastructure in Africa over the next several years, starting with modernising three ports.

The investments will initially focus on expanding ports operated by DP World in Egypt's Ain Sokhna, Senegal's Dakar and Berbera in Somalia's breakaway region of Somaliland, CDC said.

State-owned DP Word has committed to investing $1 billion over the next several years, while CDC has committed $320 million and potentially investing up to a further $400 million.

The joint investments will eventually be expanded to other regions in Africa, in what DP World and CDC hope will accelerate inbound and outbound trade for the continent.

#Saudi Arabian Islamic finance firm Nayifat plans Riyadh float | Reuters

Saudi Arabian Islamic finance firm Nayifat plans Riyadh float | Reuters

Saudi Arabia's Nayifat Finance Company said on Tuesday it plans an initial public offering (IPO) on the Riyadh stock exchange with a free float of 35% of its shares.

Nayifat, a consumer-focused Islamic finance firm, said in a statement that it plans a sale of 35 million shares to institutional and retail investors. The sale of existing shares will be made by its current shareholders, it said.

Falcom Holding, a Saudi firm which owns businesses in leasing and financing of vehicles, as well as brokerage services, investment advisory and asset management, holds a 73.86% stake in Nayifat.

IPO activity in Saudi Arabia has boomed in recent years, with several companies considering flotations.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar mid-session

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #SaudiArabia #Qatar mid-session

Oil rises close to multi-year high on energy crunch fears | Reuters

Oil rises close to multi-year high on energy crunch fears | Reuters

Oil rose towards $84 a barrel on Tuesday, within sight of a three-year high, supported by a rebound in global demand that is contributing to energy shortages in big economies such as China.

With demand growing as economies recover from pandemic lows, the Organization of the Petroleum Exporting Countries and allied producers, or OPEC+, is sticking to plans to gradually bring back output, rather than quickly boost supply.

"OPEC+ will push ahead with its cautious approach to supply in the year-end period. Set against this backdrop, oil bears will remain in hibernation mode," said Stephen Brennock of oil broker PVM.

Brent crude was up 24 cents or 0.3% at $83.89 a barrel at 0810 GMT. On Monday it reached $84.60, the highest since October 2018. U.S. oil gained 21 cents or 0.3% to $80.73 and on Monday hit $82.18, the highest since late 2014.