Ukraine Crisis: Qatar Can’t Come to Europe’s Aid If Russian Gas Is Interrupted - Bloomberg
Qatar wouldn’t be able to significantly ramp up supplies of natural gas to Europe in the event of any disruption to Russian flows, according to three people familiar with the situation.
U.S. President Joe Biden’s administration has spoken to major gas producers, including Qatar, about the possibility of getting more shipments sent to Europe in case a potential Russian invasion of Ukraine interrupts flows. Russia’s President Vladimir Putin has repeatedly denied having any plans for an invasion.
Qatar, one of the world’s biggest exporters of liquefied natural gas, is already producing at full capacity and most of its cargoes are sent to Asia under long-term contracts that it can’t break, the people said. The Persian Gulf state doesn’t want to compromise those Asian partnerships even if doing so would reap political rewards in Europe and the U.S., they said.
The U.S. is prepared to ensure alternative supplies covering a significant majority of any potential gas shortfall, two senior Biden administration officials said Tuesday. Re-routing supplies could take anywhere from several days to a week or two, the officials said.
Oil rises on concerns global political risks could tighten supplies | Reuters
Oil prices rose over 2% on Tuesday on concerns supplies could become tight due to Ukraine-Russia tensions, threats to infrastructure in the United Arab Emirates and struggles by OPEC+ to hit its targeted monthly output increase.
Analysts noted that oil prices rose despite a drop in equities markets (.SPX), (.IXIC) and the possibility of an interest rate hike by the U.S. Federal Reserve on Wednesday. read more
Brent futures rose $1.93, or 2.2%, to settle at $88.20 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $2.29, or 2.8%, to settle at $85.60.
"Geopolitical risks sent crude prices higher as a tight oil market that is already battling low inventories seems vulnerable to shortages in the coming months," said Edward Moya, senior market analyst at OANDA.
Abu Dhabi's Chimera closes second venture capital fund at $10 bln | Reuters
Abu Dhabi investment firm Chimera Capital said on Tuesday it closed its second venture capital (VC) fund at $10 billion, as it looks to find multi-million dollar opportunities in "growth-stage" companies.
The new fund, Alpha Wave Ventures II, will focus on the financial tech, artificial intelligence, life sciences, consumer internet and business to business sectors. Chimera said. The $10 billion fund is co-managed with U.S. alternative asset manager Alpha Wave Global, formerly known as Falcon Edge Capital.
"Put them together, and you have a large fund that can basically invest on a larger scale in basically growth stories," said Karim Radwan, Chimera Capital's chief investment officer.
Limited partners in the VC fund are all local and regional investors, Radwan said, declining to name them. He said the fund will invest between tens of millions and up to $100 million in growth-stage companies, typically between series A and pre-initial public offering (IPO).
Oil stable as tight supply counters falling U.S. markets | Reuters
Oil prices were little changed on Tuesday as bullish signals from a tight supply picture were countered by falling Wall Street equities and possible increase to U.S. interest rates, which could weigh on oil.
Brent crude futures were up 30 cents, or 0.4%, at $86.57 a barrel by 1425 GMT. U.S. West Texas Intermediate (WTI) crude futures were virtually flat with a gain of 3 cents to $83.34.
Global equities, which often move in tandem with oil, are set for their biggest monthly drop since the COVID-19 pandemic hit markets in March 2020. U.S. oil futures erased earlier gains as Wall Street opened, with equities falling.
However, both WTI and Brent hit seven-year highs last week and remain on track for monthly gains of more than 10%.
Casino operator Wynn plans UAE resort with 'gaming area' | Reuters
Hotel and casino operator Wynn Resorts (WYNN.O) will build a luxury resort in Ras Al Khaimah in the United Arab Emirates with a "gaming area", it said on Tuesday, without specifying whether this included gambling.
Gambling is not allowed in the Muslim Gulf state, but rumours have for years circulated that the Middle East business and tourism hub might allow it as regional economic competition heats up.
Dubai, another of the UAE's seven emirates, in April denied rumours that it was granting gambling licences.
In a sign that entertainment rules might be changing, the Ras Al Khaimah Tourism Development Authority (RAKTDA) said on Tuesday that it had created a new Department of Entertainment and Gaming Regulation to regulate "integrated resorts".
A top priority for the new body is a regulatory framework ensuring "the responsible practice of recreational gaming at all levels", the RAKTDA statement carried by state news agency WAM said.
The Wynn resort, which was announced by Ras Al Khaimah authorities and Wynn, is set for completion in 2026. It will be located on Al Marjan, a man-made island off the coast of Ras Al Khaimah.
Ras Al Khaimah's government communications office, RAKTDA and RAK Hospitality Holding did not immediately respond to requests for comment.
"The integrated development, featuring a world-class hotel, entertainment and gaming amenities, will add to the emirate's destination strategy to attract tourists from across the world," said Abdulla al-Abdooli, chief executive of Marjan, the master-developer of freehold property in Ras Al Khaimah in a statement.
ADNOC debt issuer holds investor meetings ahead of debut bonds | Reuters
Abu Dhabi National Oil Company's newly set up debt-issuing unit, ADNOC Murban, began holding investor meetings on Tuesday ahead of its debut bond sale expected this year, an investors' note seen by Reuters showed.
The meetings, coordinated by JPMorgan and Morgan Stanley (MS.N), will run through Friday and will target investors in Asia, Europe, the United States, and the Middle East and Africa, according to the note.
ADNOC and JPMorgan did not respond to emailed requests for comment. Morgan Stanley declined to comment.
The ability to tap the debt capital markets will give ADNOC flexibility to raise debt with longer tenors and potentially better pricing.
ADQ Seeks to Raise $1.1 Billion From Abu Dhabi Ports Share Sale - Bloomberg
Sovereign wealth fund ADQ is seeking to raise as much as $1.1 billion by selling shares in Abu Dhabi Ports, according to people familiar with the matter.
The listing on Abu Dhabi Securities Exchange is expected to comprise a sale of 1.25 billion shares at 3.20 dirhams ($0.87) each, the people said, declining to be identified as the matter is private. ADQ is planning for a listing on Feb. 8, subject to approvals.
Established in 2006, Abu Dhabi Ports contributes about 14% of Abu Dhabi’s non-oil economic growth, according to the firm’s website. The company has recently become more active in capital markets, selling a debut bond of $1 billion in April and signaling plans to issue more debt to support investment.
In 2020, Abu Dhabi Ports handled 30 million tons of general cargo volumes, according to its offering prospectus. The firm said it has a number of expansion projects ongoing at Khalifa Port, where it added a new container terminal in 2018.
The United Arab Emirates, the third-biggest producer in the Organization of Petroleum Exporting Countries, has used its oil wealth to broaden its economy, diversifying into tourism while also developing transport and trade hubs.
Abu Dhabi, the wealthiest of the UAE’s seven emirates, has been at the center of a push to revive IPOs. The city’s exchange -- also owned by ADQ -- is offering sweeteners that include flexibility on the minimum stake size required for share sales and promises to reduce or forgo listing fees.
Most Gulf bourses track oil prices higher; Egypt extends losses | Reuters
Most major stock markets in the Gulf ended higher on Tuesday, tracking global peers and a rebound in oil prices, as geopolitical risks in Europe and the Middle East fuelled supply disruption in an already tight market.
Oil prices were jittery as investors traded prudently in the face of the rising tensions in Eastern Europe while the confrontation with Russia continues, said Eman AlAyyaf, CEO of EA Trading.
Saudi Arabia's benchmark index (.TASI) edged up 0.3%, supported by energy and financial stocks, with oil behemoth Saudi Aramco (2222.SE) gaining 0.8% and Al Rajhi Bank (1120.SE) up 0.3%.
Dubai's main share index (.DFMGI) added 0.4%, after seeing its biggest fall in over a month in the previous session, led by Emirates NBD Bank (ENBD.DU) up 1.9% and blue-chip developer Emaar Properties (EMAR.DU) gaining 1.1%.
In Abu Dhabi, the index (.ADI) edged up 0.1%, as market heavyweight First Abu Dhabi Bank (FAB.AD) rose 0.2%.
Separately, the Abu Dhabi state oil giant Abu Dhabi National Oil Co has set up a subsidiary, ADNOC Murban, to issue primary debt and explore new funding opportunities. read more
In Qatar, the index (.QSI), gained 0.2%, as Qatar Islamic Bank (QISB.QA) climbed 2.2% and Qatar Gas Transport Nakilat (QGTS.QA) ended up 1.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.6%, extending losses for a third consecutive session, with the country's largest lender Commercial International Bank Egypt (COMI.CA) down 1.3%.
The stock market in Cairo fell again as investors continue to close their positions as tensions in the region remain high and as they wait for the U.S. Federal Reserve meeting, AlAyyaf added.
Oil prices rebound as growing political tensions fuel supply fears | Reuters
Oil prices bounced back on Tuesday, recovering some of the previous day's losses, as growing tension in Eastern Europe and the Middle East fuelled concerns over possible supply disruptions in an already tight market.
Brent crude futures rose $1.21, or 1.5%, to $87.52 a barrel at 0946 GMT, reversing a 1.8% fall in the previous session. U.S. West Texas Intermediate (WTI) crude futures climbed $1.11, or 1.3%, to $85.42 a barrel, having slid 2.2% on Monday.
World equities, which often move in tandem with oil, are set for their biggest monthly drop since the pandemic hit markets in March 2020.
Meanwhile, both WTI and Brent, fresh from hitting seven-year highs last week, are heading for monthly gains of over 12%.
Most Gulf markets fall in early trade; Dubai rises | Reuters
Most stock markets in the Gulf fell in early trade on Tuesday in line with global shares, amid growing tension in Eastern Europe and the Middle East, a day after a failed attack on UAE by Yemen's Houthis.
The United Arab Emirates (UAE) on Monday said it had foiled another Houthi missile attack following last week's deadly assault on the Gulf state as the Iran-aligned group takes aim at the safe haven status of the region's tourism and commercial hub read more
Saudi Arabia's benchmark index (.TASI) edged down 0.1%, with petrochemical maker Saudi Basic Industries - Sabic (2010.SE) declining 0.6% and telecoms operator Saudi Telecom Company (7010.SE) losing 0.8%.
In Qatar, the benchmark index (.QSI), eased 0.6%, hurt by its financial stocks as Qatar National Bank (QNBK.QA) and Commercial Bank (COMB.QA), dropped 1.4% and 1.3% respectively.
The Abu Dhabi index (.FTFADGI) also fell 0.4%, extending losses from the previous session, with the country's largest lender, First Abu Dhabi Bank (FAB.AD) easing 0.4%.
In Dubai, the main share index (.DFMGI), however, bucked the trend with stocks up 0.4%, a day after it saw a biggest fall in over a month in last session, supported by a 1.5% rise in Dubai's largest lender Emirates NBD Bank (ENBD.DU) and a 0.4% increase in blue-chip developer Emaar Properties (EMAR.DU).
MENA equity capital markets raised $14.5bln in 2021 - Refinitiv | ZAWYA MENA Edition
MENA equity capital markets (ECM) raised $14.5 billion from 42 offerings in 2021, a 193 percent increase in proceeds from last year and a 13-year-high in the number of ECM deals, according to Refinitiv data.
IPOs raised $8.2 billion in 2021, accounting for 56 percent of total proceeds, a 341 percent increase from 2020. Follow-on issuances totalled $5.1 billion in 2021, a 65 percent increase from last year and a thirteen-year high.The largest equity offering of the year was Saudi Telecom’s follow-on issuance of $3.2 billion after the sovereign wealth fund, Public Investment Fund, sold 6 percent of its stake. This was followed by ACWA Power International’s IPO which raised $1.2 billion. Abu Dhabi ADNOC Distribution raised $1.19 billion in a convertible bond sale. Also, in an IPO of a part of its drilling subsidiary, ADNOC raised $1.10 billion. Finally, the Saudi Tadawul Group Holding Co. raised just over $1 billion in share sale.
Chimera Capital: One of Biggest-Ever Tech Funds Wins Backing of UAE Royal’s Firm - Bloomberg
A United Arab Emirates investment firm linked to an influential member of Abu Dhabi’s ruling family has emerged as a backer of one of the largest funds in venture capital history, joining forces with New York-based Alpha Wave to deploy $10 billion with a focus on India.
Chimera Capital, part of a business empire overseen by Sheikh Tahnoon Bin Zayed, said the Alpha Wave Ventures II Fund will target companies that have yet to go public, focusing on a range of assets from financial technology to artificial intelligence and life sciences.
Alpha Wave, originally named Falcon Edge Capital, will work with it to identify and manage investment opportunities in pursuit of “a global mandate with a special focus on India,” Seif Fikry, Chimera’s chief executive officer, said in an emailed reply to Bloomberg questions.
The fund’s second close at $10 billion puts the haul in the same league as investment vehicles by Andreessen Horowitz, Tiger Global Management and Sequoia Capital. Chimera said the fund’s backers include a mix of large institutional investors, and it expects the ticket size could range from “tens of millions to hundreds,” according to Fikry.
Abu Dhabi's New Fund Gets Active Quickly With Deals with Lime, Indonesia - Bloomberg
Rapid-fire deals spanning the globe are putting a months-old Abu Dhabi sovereign fund on the map.
A convertible debt deal on Friday by U.S. electric scooter and bike startup Lime marked the first known investment by Abu Dhabi Growth Fund, and an agreement with Indonesia followed the day after.
Based in a city that’s among the few globally to manage over $1 trillion in sovereign wealth capital, the emirate’s new fund was set up in July with a “unique risk profile that complements the existing Abu Dhabi sovereign wealth funds,” according to its website.
Besides ADG, Abu Dhabi is also the home of the Abu Dhabi Investment Authority, with an estimated $829 billion in assets, and $243 billion Mubadala Investment Co. In addition to the two biggest funds, the government in 2018 set up ADQ, which took custody of some of the emirate’s biggest assets.
Kuwait draft 2022-2023 budget sees deficit down 74% | Reuters
Kuwait's finance ministry said on Monday it had submitted to the cabinet a draft budget for the fiscal year 2022-2023 with an expected deficit of 3.1 billion dinars ($10.26 billion), down 74.2% from the previous year.
The Gulf OPEC member sees oil income at 16.7 billion dinars throughout the FY that ends in March 2023, up 83.4% from 2021-2022, according to a ministry statement.
Total revenues were estimated at 18.8 billion dinars, assuming an oil price of $65 per barrel, while expenses were seen at 21.9 bln dinars for the FY 2022-2023.
The proposed budget includes 2.9 billion dinars in capital spending, and needs an oil price of $75 per barrel to break even.
Oil prices rebound as growing geopolitical tensions fuel supply fears | Reuters
Oil prices bounced back on Tuesday, recovering some of the previous day's losses, as growing tension in Eastern Europe and the Middle East fuelled concerns over possible supply disruptions.
Brent crude futures rose 60 cents, or 0.7%, to $86.87 a barrel at 0528 GMT, reversing a 1.8% fall in the previous session.
U.S. West Texas Intermediate (WTI) crude futures climbed 45 cents, or 0.5%, to $83.76 a barrel, having slid 2.2% on Monday.
Oil prices reached seven-year highs last week, bolstered by tight worldwide supply and resurgent global demand.
"The market tone stays strong, supported by heightening geopolitical risk," said Chiyoki Chen, chief analyst at Sunward Trading.
