Oil little changed despite talk of possible OPEC+ supply boost | Reuters
Oil prices ended little changed on Tuesday, as geopolitical tensions and tight global supplies supported the market even as some speculated that OPEC+ might boost supplies more than expected.
The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, has been expected to decide at a monthly meeting on Wednesday tokeep gradually increasing production. But Goldman Sachs said there was a chance the oil market's rally would prompt a faster ramp-up.
On Friday, crude benchmarks hit their highest prices since October 2014, with Brent touching $91.70 and U.S. crude hitting $88.84. They gained about 17% in January on a supply shortage, political tensions in the Middle East and between Russia and the West over Ukraine.
Still, sources said an OPEC+ technical panel meeting on Tuesday did not discuss a hike of more than the expected 40,000 barrels per day from March.
OPEC undershot its promised output boost in January, a Reuters survey found, and other analysts expected the rally to persist.
"The Saudis will likely avoid any major adjustments as they have proven adept in recent years at treading a fine line in manoeuvring global pricing in their preferred direction," said Jim Ritterbusch, president of Ritterbusch and Associates LLC in Galena, Illinois.
Brent crude settled down 10 cents, or 0.1%, at $$89.16 a barrel while U.S. West Texas Intermediate crude rose 5 cents to $88.20.
Tuesday, 1 February 2022
#Saudi Pharmacy Chain Al Nahdi Seeks $1.3 Billion in Top IPO Since Aramco - Bloomberg
Saudi Pharmacy Chain Al Nahdi Seeks $1.3 Billion in Top IPO Since Aramco - Bloomberg
Saudi Arabia’s largest pharmacy retail chain plans to seek about $1.3 billion in an initial public offering in the next few months in what could be the largest listing in the kingdom since state oil giant Saudi Aramco went public in 2019, according to people familiar with the matter.
Al Nahdi Medical Co. has appointed the local unit of HSBC Holdings Plc and the investment banking arm of Saudi National Bank to manage the sale of a 30% stake on the Saudi stock market, the people said, asking not to be identified because the information is private. The company is considering seeking a valuation of around 16 billion riyals ($4.3 billion) in the IPO, the people said.
Deliberations are ongoing, and details of the potential offering haven’t been finalized, the people said. The firm, half owned by Jeddah-based investment firm Sedco Holding, received regulatory approval for the listing in December.
Al Nahdi, SNB Capital and HSBC declined to comment.
Saudi Arabia’s largest pharmacy retail chain plans to seek about $1.3 billion in an initial public offering in the next few months in what could be the largest listing in the kingdom since state oil giant Saudi Aramco went public in 2019, according to people familiar with the matter.
Al Nahdi Medical Co. has appointed the local unit of HSBC Holdings Plc and the investment banking arm of Saudi National Bank to manage the sale of a 30% stake on the Saudi stock market, the people said, asking not to be identified because the information is private. The company is considering seeking a valuation of around 16 billion riyals ($4.3 billion) in the IPO, the people said.
Deliberations are ongoing, and details of the potential offering haven’t been finalized, the people said. The firm, half owned by Jeddah-based investment firm Sedco Holding, received regulatory approval for the listing in December.
Al Nahdi, SNB Capital and HSBC declined to comment.
#Dubai Weighs Reducing Business Fees as #UAE Unveils Corporate Tax - Bloomberg
Dubai Weighs Reducing Business Fees as UAE Unveils Corporate Tax - Bloomberg
Dubai will consider cutting costs for businesses operating in the Middle East’s commercial hub after the United Arab Emirates set out plans to introduce taxes on corporate profit from next year.
“The fees imposed by the government of Dubai on commercial activities are affordable in the absence of corporate tax,” Abdulrahman Saleh Al Saleh, director general of Dubai’s Department of Finance, said in a statement. After the introduction of the corporate tax, “we will be keen to study those fees and look into the possibility of gradually reducing them in line with emergent trends.”
Dubai’s benchmark stock index fell the most in the Middle East on Tuesday. The UAE, of which Dubai is part, plans to tax corporate earnings from June next year.
The news is “clearly negative” for equities, said Hasnain Malik, head of research at Tellimer. Shareholders in publicly listed companies are among those likely to feel the impact of the tax because of the transfer of value to the government, he wrote in a note.
Dubai will consider cutting costs for businesses operating in the Middle East’s commercial hub after the United Arab Emirates set out plans to introduce taxes on corporate profit from next year.
“The fees imposed by the government of Dubai on commercial activities are affordable in the absence of corporate tax,” Abdulrahman Saleh Al Saleh, director general of Dubai’s Department of Finance, said in a statement. After the introduction of the corporate tax, “we will be keen to study those fees and look into the possibility of gradually reducing them in line with emergent trends.”
Dubai’s benchmark stock index fell the most in the Middle East on Tuesday. The UAE, of which Dubai is part, plans to tax corporate earnings from June next year.
The news is “clearly negative” for equities, said Hasnain Malik, head of research at Tellimer. Shareholders in publicly listed companies are among those likely to feel the impact of the tax because of the transfer of value to the government, he wrote in a note.
U.K. Warns Banque Havilland Over ‘Improper’ #Qatar Advice - Bloomberg
U.K. Warns Banque Havilland Over ‘Improper’ Qatar Advice - Bloomberg
Banque Havilland SA, the Luxembourg-based lender that counts Prince Andrew as one of its clients, was issued with a warning notice by the U.K. financial regulator over its alleged role in an economic boycott of Qatar.
Controlled by financier and U.K. Conservative Party backer David Rowland, the lender gave “improper advice” in a presentation that set out “manipulative trading practices” over Qatari bonds, the Financial Conduct Authority said Tuesday. The presentation could be taken to harm the Qatari economy, it said.
A spokesperson for Banque Havilland said no findings had yet been made by the regulator and it was challenging the warning notice through the FCA’s internal processes. The warning “refers to historic allegations of misconduct at the bank’s London premises in 2017.”
“None of the individuals referred to in the warning notice remains with the Bank,” the spokesperson said.
Banque Havilland SA, the Luxembourg-based lender that counts Prince Andrew as one of its clients, was issued with a warning notice by the U.K. financial regulator over its alleged role in an economic boycott of Qatar.
Controlled by financier and U.K. Conservative Party backer David Rowland, the lender gave “improper advice” in a presentation that set out “manipulative trading practices” over Qatari bonds, the Financial Conduct Authority said Tuesday. The presentation could be taken to harm the Qatari economy, it said.
A spokesperson for Banque Havilland said no findings had yet been made by the regulator and it was challenging the warning notice through the FCA’s internal processes. The warning “refers to historic allegations of misconduct at the bank’s London premises in 2017.”
“None of the individuals referred to in the warning notice remains with the Bank,” the spokesperson said.
#SaudiArabia announces $6.4 billion investments in future tech | Reuters
Saudi Arabia announces $6.4 billion investments in future tech | Reuters
Saudi Arabia has launched investments worth $6.4 billion in future technologies, the Saudi minister of communication and information technology said on Tuesday, as the kingdom races to diversify its economy from oil in the face of fierce regional competition.
Wealthy Gulf countries have launched initiatives to boost non-oil growth and reduce dependence on crude oil as climate change campaigners and volatility in oil prices have put pressure on government finances.
The kingdom has already announced it is pouring hundreds of billions of dollars into an economic transformation, known as Vision 2030, led by its de facto ruler Crown Prince Mohammed bin Salman.
The investments announced on Tuesday include a $2 billion joint venture between eWTP Arabia Capital, a fund backed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF) and Alibaba (9988.HK), and China's J&T Express Group, minister Abdullah Alswaha said.
Saudi Arabia has launched investments worth $6.4 billion in future technologies, the Saudi minister of communication and information technology said on Tuesday, as the kingdom races to diversify its economy from oil in the face of fierce regional competition.
Wealthy Gulf countries have launched initiatives to boost non-oil growth and reduce dependence on crude oil as climate change campaigners and volatility in oil prices have put pressure on government finances.
The kingdom has already announced it is pouring hundreds of billions of dollars into an economic transformation, known as Vision 2030, led by its de facto ruler Crown Prince Mohammed bin Salman.
The investments announced on Tuesday include a $2 billion joint venture between eWTP Arabia Capital, a fund backed by Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF) and Alibaba (9988.HK), and China's J&T Express Group, minister Abdullah Alswaha said.
Most stock markets end higher; #Dubai extends losses | Reuters
Most stock markets end higher; Dubai extends losses | Reuters
Most stock markets in the Gulf ended higher on Tuesday amid strong fundamentals and rising oil prices, while the Dubai index extended losses on plans for a federal corporate tax and geopolitical tensions.
Saudi Arabia's benchmark index (.TASI) added 0.2%, helped by a 1.5% gain in the kingdom's largest lender Saudi National Bank (1180.SE).
Stock markets in the Gulf were mostly rising thanks to the strong energy markets and solid local fundamentals. The region is benefiting from a post COVID recovery and decreasing concerns about the spread of the Omicron variant, said Eman AlAyyaf, CEO of EA Trading.
The Qatari benchmark (.QSI) gained 0.6%, with Qatar Gas Transport (QGTS.QA) jumping 3.9%.
In Abu Dhabi, the index (.ADI) reversed early losses to end 0.2% higher, with conglomerate International Holding gaining 0.7%.
Dubai's main share index (.DFMGI) finished 1% lower, extending losses from the previous session, weighed down by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU).
The United Arab Emirates (UAE) said on Monday it would introduce a federal corporate tax on business profits for the first time starting from June 1, 2023, although it kept the rate low, at 9%, to maintain its attractiveness for businesses. read more
Corporate taxes on profit are expected to reduce net earnings for companies outside free zone properties, creating a bearish sentiment in the market, according to Vijay Valecha, chief investment officer of Century Financial.
"Additionally, increasing geopolitical tensions between the UAE and Yemen are weighing heavily on the local bourses."
On Monday, the UAE intercepted a ballistic missile fired by Yemen's Iran-aligned Houthi movement, the third such attack on the U.S.-allied Gulf state in the last two weeks. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1% higher, led by a 1.1% increase in top lender Commercial International Bank (COMI.CA).
Most stock markets in the Gulf ended higher on Tuesday amid strong fundamentals and rising oil prices, while the Dubai index extended losses on plans for a federal corporate tax and geopolitical tensions.
Saudi Arabia's benchmark index (.TASI) added 0.2%, helped by a 1.5% gain in the kingdom's largest lender Saudi National Bank (1180.SE).
Stock markets in the Gulf were mostly rising thanks to the strong energy markets and solid local fundamentals. The region is benefiting from a post COVID recovery and decreasing concerns about the spread of the Omicron variant, said Eman AlAyyaf, CEO of EA Trading.
The Qatari benchmark (.QSI) gained 0.6%, with Qatar Gas Transport (QGTS.QA) jumping 3.9%.
In Abu Dhabi, the index (.ADI) reversed early losses to end 0.2% higher, with conglomerate International Holding gaining 0.7%.
Dubai's main share index (.DFMGI) finished 1% lower, extending losses from the previous session, weighed down by a 1.7% fall in blue-chip developer Emaar Properties (EMAR.DU).
The United Arab Emirates (UAE) said on Monday it would introduce a federal corporate tax on business profits for the first time starting from June 1, 2023, although it kept the rate low, at 9%, to maintain its attractiveness for businesses. read more
Corporate taxes on profit are expected to reduce net earnings for companies outside free zone properties, creating a bearish sentiment in the market, according to Vijay Valecha, chief investment officer of Century Financial.
"Additionally, increasing geopolitical tensions between the UAE and Yemen are weighing heavily on the local bourses."
On Monday, the UAE intercepted a ballistic missile fired by Yemen's Iran-aligned Houthi movement, the third such attack on the U.S.-allied Gulf state in the last two weeks. read more
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1% higher, led by a 1.1% increase in top lender Commercial International Bank (COMI.CA).
Deutsche Bank Hires Credit Suisse’s Wealth-Manager Trio to Woo #Saudi Ultra-Rich - Bloomberg
Deutsche Bank Hires Credit Suisse’s Wealth-Manager Trio to Woo Saudi Ultra-Rich - Bloomberg
Deutsche Bank AG has poached three wealth managers from Credit Suisse Group AG in pursuit of ultra-rich clients in Saudi Arabia as the German lender strengthens its global private banking franchise.
A Geneva-based team from its Swiss rival will join Deutsche Bank’s offshore team on March 1. Consisting of industry veteran Jamal Abi-Chahine, Toufic Rizkallah and Giulio Ferri, the group will report to Ahmed Hammouda.
With the changes, Deutsche Bank is looking to target the kingdom’s ultra-high net worth individuals and entrepreneurs, according to Loic Voide, a Swiss banker who was appointed in 2020 as co-chief executive officer for the Middle East and Africa and has been in charge of wealth management for the same region since 2018.
“We want to beef up our Saudi coverage for private banking,” he said in an interview. “We are actively looking to bring in people that have the ability to diversify our client base.”
Deutsche Bank AG has poached three wealth managers from Credit Suisse Group AG in pursuit of ultra-rich clients in Saudi Arabia as the German lender strengthens its global private banking franchise.
A Geneva-based team from its Swiss rival will join Deutsche Bank’s offshore team on March 1. Consisting of industry veteran Jamal Abi-Chahine, Toufic Rizkallah and Giulio Ferri, the group will report to Ahmed Hammouda.
With the changes, Deutsche Bank is looking to target the kingdom’s ultra-high net worth individuals and entrepreneurs, according to Loic Voide, a Swiss banker who was appointed in 2020 as co-chief executive officer for the Middle East and Africa and has been in charge of wealth management for the same region since 2018.
“We want to beef up our Saudi coverage for private banking,” he said in an interview. “We are actively looking to bring in people that have the ability to diversify our client base.”
Oil dips below $89, eyeing faster OPEC+ hike | Reuters
Oil dips below $89, eyeing faster OPEC+ hike | Reuters
Oil slipped on Tuesday, staying close to a seven-year high, weighed by speculation OPEC+ could go further than expected to add supply at a meeting this week and expectations of a rise in U.S. inventories.
While the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has been expected to maintain its policy of gradual production hikes at a meeting on Wednesday, Goldman Sachs said there was a chance of further steps.
"We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations," the bank said in a Jan. 31 report, adding the outcome remained "evenly balanced" between an accelerated response and a status quo increase.
Brent crude was down 51 cents, or 0.6%, at $88.75 a barrel at 1238 GMT. U.S. West Texas Intermediate crude slipped 63 cents, or 0.7%, to $87.52.
Oil slipped on Tuesday, staying close to a seven-year high, weighed by speculation OPEC+ could go further than expected to add supply at a meeting this week and expectations of a rise in U.S. inventories.
While the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, has been expected to maintain its policy of gradual production hikes at a meeting on Wednesday, Goldman Sachs said there was a chance of further steps.
"We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations," the bank said in a Jan. 31 report, adding the outcome remained "evenly balanced" between an accelerated response and a status quo increase.
Brent crude was down 51 cents, or 0.6%, at $88.75 a barrel at 1238 GMT. U.S. West Texas Intermediate crude slipped 63 cents, or 0.7%, to $87.52.
#Dubai Financial Market net profits down to $28mln for 2021 | ZAWYA MENA Edition
Dubai Financial Market net profits down to $28mln for 2021 | ZAWYA MENA Edition
Dubai Financial Market (DFM) has announced that its profits in 2021 fell to AED 103.8 million ($28 million) from AED 137 million in 2020
In a press release published alongside its Q4 2021 results, the company said its profits had jumped for the fourth quarter of 2021 to AED 65.7 million, up 269 percent on the same quarter in 2020.
The statement said the board had recommended distribution of a three percent cash dividend of AED 240 million to shareholders.
It also highlighted the increased trading value, up 10.2 percent to AED 72.3 billion for the year, while the General Index registered 28.2 percent growth, the highest since 2013.
Dubai Financial Market (DFM) has announced that its profits in 2021 fell to AED 103.8 million ($28 million) from AED 137 million in 2020
In a press release published alongside its Q4 2021 results, the company said its profits had jumped for the fourth quarter of 2021 to AED 65.7 million, up 269 percent on the same quarter in 2020.
The statement said the board had recommended distribution of a three percent cash dividend of AED 240 million to shareholders.
It also highlighted the increased trading value, up 10.2 percent to AED 72.3 billion for the year, while the General Index registered 28.2 percent growth, the highest since 2013.
Outlook: #Dubai property market likely to face headwinds in 2022 - CBRE | ZAWYA MENA Edition
Outlook: Dubai property market likely to face headwinds in 2022 - CBRE | ZAWYA MENA Edition
Dubai’s residential property market is likely to face some headwinds this year compared to past 12 months, but villa and apartment sales will remain strong in a post-pandemic world, according to the latest analysis by real estate consulting firm CBRE.
The market performed well in 2021, with average home prices and rents increasing by 9.3 percent and 8.3 percent, respectively. Last year’s price growth was also the highest since January 2015, while rents continued to be at historic highs, particularly for villas, all thanks to strong demand from both buyers and tenants.
“Looking ahead, in 2022, we expect transaction volumes to remain robust over the course of the year,” CBRE said.
“However, with payment plans offerings tightening and mortgage rates likely to edge up, we anticipate the market will face some headwinds in 2022, at least compared to 2021.”
Dubai’s residential property market is likely to face some headwinds this year compared to past 12 months, but villa and apartment sales will remain strong in a post-pandemic world, according to the latest analysis by real estate consulting firm CBRE.
The market performed well in 2021, with average home prices and rents increasing by 9.3 percent and 8.3 percent, respectively. Last year’s price growth was also the highest since January 2015, while rents continued to be at historic highs, particularly for villas, all thanks to strong demand from both buyers and tenants.
“Looking ahead, in 2022, we expect transaction volumes to remain robust over the course of the year,” CBRE said.
“However, with payment plans offerings tightening and mortgage rates likely to edge up, we anticipate the market will face some headwinds in 2022, at least compared to 2021.”
Moody’s Says New #UAE Tax is Credit Negative for Companies - Bloomberg
Moody’s Says New UAE Tax is Credit Negative for Companies - Bloomberg
The UAE’s plan to introduce a corporate tax will broaden the government’s income base but negatively affect the credit profiles of companies operating in the Middle East business hub, Moody’s Investors Service said.
The Gulf oil exporter announced Monday it would impose a 9% federal tax on corporate earnings from June 2023 as it seeks to shed its reputation as a tax haven and bring itself in line with changing global standards. The step is the most significant since 2018, when the country introduced value-added tax, the credit rating company said in a statement.
“The introduction of the 9% federal corporate tax is broadly credit negative for domestic UAE corporates because it will reduce their operating cash flows,” according to Moody’s. “However, the overall impact on the credit profile of large corporates will be muted because they have several offsetting levers, such as increasing product or service prices, optimizing their cost structure and reducing shareholder dividends.”
Stocks traded in Dubai and Abu Dhabi dropped after the announcement as investors said the move would hit net earnings.
The UAE’s plan to introduce a corporate tax will broaden the government’s income base but negatively affect the credit profiles of companies operating in the Middle East business hub, Moody’s Investors Service said.
The Gulf oil exporter announced Monday it would impose a 9% federal tax on corporate earnings from June 2023 as it seeks to shed its reputation as a tax haven and bring itself in line with changing global standards. The step is the most significant since 2018, when the country introduced value-added tax, the credit rating company said in a statement.
“The introduction of the 9% federal corporate tax is broadly credit negative for domestic UAE corporates because it will reduce their operating cash flows,” according to Moody’s. “However, the overall impact on the credit profile of large corporates will be muted because they have several offsetting levers, such as increasing product or service prices, optimizing their cost structure and reducing shareholder dividends.”
Stocks traded in Dubai and Abu Dhabi dropped after the announcement as investors said the move would hit net earnings.
Rapyd, #Israel’s $10 Billion Answer to Stripe, Wants to Crack U.S. Market - Bloomberg
Rapyd, Israel’s $10 Billion Answer to Stripe, Wants to Crack U.S. Market - Bloomberg
Israel’s most valuable private technology company is in talks to buy a U.S.-based business to establish a foothold in the world’s biggest economy ahead of an initial public offering.
Breaking into the U.S. is part of plans by payments startup Rapyd, last valued at $10 billion in August, to increase its attractiveness to American investors for a potential listing in two to three years, according to Chief Executive Officer Arik Shtilman.
It’s a move that would put the company up against the likes of Stripe Inc., the digital payments company worth $95 billion and among the most valuable startups in the world. Rapyd wants the U.S. to account for 20% of its revenue to address the risk that investors will have a home bias when looking to participate in the company’s eventual share sale, Shtilman said.
“I don’t want to explain to a pension fund looking to invest in my IPO what I’m doing in Brazil,” Shtilman, 42, said in an interview. “Just explaining to Americans where Brazil is on the map is complicated enough.”
Israel’s most valuable private technology company is in talks to buy a U.S.-based business to establish a foothold in the world’s biggest economy ahead of an initial public offering.
Breaking into the U.S. is part of plans by payments startup Rapyd, last valued at $10 billion in August, to increase its attractiveness to American investors for a potential listing in two to three years, according to Chief Executive Officer Arik Shtilman.
It’s a move that would put the company up against the likes of Stripe Inc., the digital payments company worth $95 billion and among the most valuable startups in the world. Rapyd wants the U.S. to account for 20% of its revenue to address the risk that investors will have a home bias when looking to participate in the company’s eventual share sale, Shtilman said.
“I don’t want to explain to a pension fund looking to invest in my IPO what I’m doing in Brazil,” Shtilman, 42, said in an interview. “Just explaining to Americans where Brazil is on the map is complicated enough.”
Goldman Says $90 Oil May Push OPEC+ Into Faster Output Ramp-Up - Bloomberg
Goldman Says $90 Oil May Push OPEC+ Into Faster Output Ramp-Up - Bloomberg
With Brent oil prices having surged to around $90 per barrel, OPEC and its allies may announce a bigger-than-expected rise in output, according to Goldman Sachs Group Inc.
The outcome of Wednesday’s meeting remains “evenly balanced” between a hike of 400,000 barrels a day for March and a bigger increase, the Wall Street bank said.
“We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations,” analysts including Damien Courvalin, Callum Bruce and Jeffrey Currie wrote in a report. “The producers’ group may also be growing more concerned by the hawkish central bank shift that could lead to slower global growth and oil revenues later this year.”
Goldman said such a move by OPEC+ would result in a short-term blip for crude prices and wouldn’t change the bank’s bullish view. The rapid decline in Covid-19 cases, strong demand so far in 2022 and initial earnings from U.S. producers “all reinforce our conviction in the need for sharply higher prices,” the bank said.
With Brent oil prices having surged to around $90 per barrel, OPEC and its allies may announce a bigger-than-expected rise in output, according to Goldman Sachs Group Inc.
The outcome of Wednesday’s meeting remains “evenly balanced” between a hike of 400,000 barrels a day for March and a bigger increase, the Wall Street bank said.
“We view growing potential for a faster ramp-up at this meeting, given the pace of the recent rally and the likely pressure from importing nations,” analysts including Damien Courvalin, Callum Bruce and Jeffrey Currie wrote in a report. “The producers’ group may also be growing more concerned by the hawkish central bank shift that could lead to slower global growth and oil revenues later this year.”
Goldman said such a move by OPEC+ would result in a short-term blip for crude prices and wouldn’t change the bank’s bullish view. The rapid decline in Covid-19 cases, strong demand so far in 2022 and initial earnings from U.S. producers “all reinforce our conviction in the need for sharply higher prices,” the bank said.
#SaudiArabia’s Elm Draws $57 Billion in Institutional Orders - Bloomberg
Saudi Arabia’s Elm Draws $57 Billion in Institutional Orders - Bloomberg
A digital security firm owned by Saudi Arabia’s wealth fund drew about $57 billion in orders from institutional investors, in the latest sign of strong demand for share sales in the Middle East.
Elm Co. drew orders worth 213.2 billion riyals from the institutional part of its IPO, which was 69.5 times oversubscribed. Local investors placed orders worth 206 billion riyals.
Share sales in Saudi Arabia have seen huge investor demand over the past year. Most listings have priced at the top of the range and shares have surged on their trading debut.
Elm is selling 24 million shares at 128 riyals apiece, an offering that may raise as much as $820 million. Riyad Capital is the financial adviser and underwriter for the IPO, which opens for retail investors for four days from Feb. 3.
A digital security firm owned by Saudi Arabia’s wealth fund drew about $57 billion in orders from institutional investors, in the latest sign of strong demand for share sales in the Middle East.
Elm Co. drew orders worth 213.2 billion riyals from the institutional part of its IPO, which was 69.5 times oversubscribed. Local investors placed orders worth 206 billion riyals.
Share sales in Saudi Arabia have seen huge investor demand over the past year. Most listings have priced at the top of the range and shares have surged on their trading debut.
Elm is selling 24 million shares at 128 riyals apiece, an offering that may raise as much as $820 million. Riyad Capital is the financial adviser and underwriter for the IPO, which opens for retail investors for four days from Feb. 3.
Early Snap Backer Leads Fundraising for Middle East E-Retailer - Bloomberg
Early Snap Backer Leads Fundraising for Middle East E-Retailer - Bloomberg
The e-commerce platform Retailo has raised $36 million to help fund its effort to digitize mom-and-pop stores in Pakistan, U.A.E. and its home country of Saudi Arabia.
The Riyadh-based company’s Series A round was led by Silicon Valley’s Graphene Ventures, an early-stage investor in Snap Inc. and Lyft Inc. The funding round is among the ten largest over the past year in the three countries Retailo operates in, according to data by Crunchbase. It raised $29 million in equity and $7 million in debt.
A string of startups has sprung up in recent years targeting the region’s retail shops, which often run with manual cash registers and handwritten entries. It’s a $500 billion industry made up of more than 10 million small businesses in the Middle East, North Africa and Pakistan, according to Retailo. Tiger Global Management LLC made its first investment in Pakistan two months ago in CreditBook, a firm that offers digital book-keeping solutions to small businesses.
The e-commerce platform Retailo has raised $36 million to help fund its effort to digitize mom-and-pop stores in Pakistan, U.A.E. and its home country of Saudi Arabia.
The Riyadh-based company’s Series A round was led by Silicon Valley’s Graphene Ventures, an early-stage investor in Snap Inc. and Lyft Inc. The funding round is among the ten largest over the past year in the three countries Retailo operates in, according to data by Crunchbase. It raised $29 million in equity and $7 million in debt.
A string of startups has sprung up in recent years targeting the region’s retail shops, which often run with manual cash registers and handwritten entries. It’s a $500 billion industry made up of more than 10 million small businesses in the Middle East, North Africa and Pakistan, according to Retailo. Tiger Global Management LLC made its first investment in Pakistan two months ago in CreditBook, a firm that offers digital book-keeping solutions to small businesses.
Free zones to crimp fiscal benefits of #UAE's corporate tax -Moody's | Reuters
Free zones to crimp fiscal benefits of UAE's corporate tax -Moody's | Reuters
The fiscal benefits of United Arab Emirates' new corporate tax will be constrained by the large role of free zones, which are exempt from the tax, on its non-oil economy, rating agency Moody's Investors Service said on Tuesday.
The UAE will introduce its first tax on business profits, a levy of 9%, in June 2023, and Tuesday's reaction was the first by a major rating agencies on the country's biggest fiscal reform since 2018, when it introduced value-added tax. read more
It and other Gulf oil-producing countries are seeking ways to make their economies less reliant on oil.
Moody's said that, while broadly credit negative for domestic UAE companies, the tax's overall impact on large corporates would be muted because of the free zones as well other potential offsetting levers such as increasing prices, optimising cost structures and cutting dividends.
The UAE is a magnet for the globe's ultra-rich, and its share markets fell on Tuesday on the tax announcement.
In the UAE's free zones, foreign companies can operate under light regulation and foreign investors take 100% ownership in companies.
Most other Gulf nations levy corporate taxes on foreign companies but only Oman taxes domestic ones too.
The fiscal benefits of United Arab Emirates' new corporate tax will be constrained by the large role of free zones, which are exempt from the tax, on its non-oil economy, rating agency Moody's Investors Service said on Tuesday.
The UAE will introduce its first tax on business profits, a levy of 9%, in June 2023, and Tuesday's reaction was the first by a major rating agencies on the country's biggest fiscal reform since 2018, when it introduced value-added tax. read more
It and other Gulf oil-producing countries are seeking ways to make their economies less reliant on oil.
Moody's said that, while broadly credit negative for domestic UAE companies, the tax's overall impact on large corporates would be muted because of the free zones as well other potential offsetting levers such as increasing prices, optimising cost structures and cutting dividends.
The UAE is a magnet for the globe's ultra-rich, and its share markets fell on Tuesday on the tax announcement.
In the UAE's free zones, foreign companies can operate under light regulation and foreign investors take 100% ownership in companies.
Most other Gulf nations levy corporate taxes on foreign companies but only Oman taxes domestic ones too.
#UAE bourses in red on corporate taxes, geopolitical tensions | Reuters
UAE bourses in red on corporate taxes, geopolitical tensions | Reuters
Major stock markets in the Gulf were mixed in early trade on Tuesday, with bourses in the United Arab Emirates falling after the country said it would introduce a federal corporate tax on business profits starting from June next year.
However, UAE kept the tax rate low at 9% to maintain its attractiveness for businesses. The move chimes with the country's efforts to diversify budget revenues to reduce reliance on petroleum, the mainstay of the economy for decades. read more
Dubai's main share index (.DFMGI) fell 1%, dragged down by a 1.9% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.8% decline in Emirates NBD Bank (ENBD.DU).
Corporate taxes on profit is expected to reduce the net profit for companies outside of the free zone properties creating a bearish sentiment in the market, according to Vijay Valecha, chief investment officer, Century Financial.
"Additionally, increasing geopolitical tensions between the UAE and Yemen are weighing heavily on the local bourses."
On Monday, the UAE intercepted a ballistic missile fired by Yemen's Iran-aligned Houthi movement, the third such attack on the U.S.-allied Gulf state in the last two weeks. read more
The Abu Dhabi index (.ADI) lost 0.5%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.5%.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, hovering near a 15-year high, led by a 0.5% rise in Al Rajhi Bank (1120.SE) and a 1.6% increase in Saudi National Bank (1180.SE).
Crude prices, a key catalyst for the Gulf financial markets, rose on expectations that a limited production increase by major oil producers and a solid post-pandemic recovery in fuel demand will keep a tight supply condition.
In Qatar, the benchmark index (.QSI) climbed 0.5%, with Qatar Gas Transport (QGTS.QA) jumping 4%.
Major stock markets in the Gulf were mixed in early trade on Tuesday, with bourses in the United Arab Emirates falling after the country said it would introduce a federal corporate tax on business profits starting from June next year.
However, UAE kept the tax rate low at 9% to maintain its attractiveness for businesses. The move chimes with the country's efforts to diversify budget revenues to reduce reliance on petroleum, the mainstay of the economy for decades. read more
Dubai's main share index (.DFMGI) fell 1%, dragged down by a 1.9% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 0.8% decline in Emirates NBD Bank (ENBD.DU).
Corporate taxes on profit is expected to reduce the net profit for companies outside of the free zone properties creating a bearish sentiment in the market, according to Vijay Valecha, chief investment officer, Century Financial.
"Additionally, increasing geopolitical tensions between the UAE and Yemen are weighing heavily on the local bourses."
On Monday, the UAE intercepted a ballistic missile fired by Yemen's Iran-aligned Houthi movement, the third such attack on the U.S.-allied Gulf state in the last two weeks. read more
The Abu Dhabi index (.ADI) lost 0.5%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.5%.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, hovering near a 15-year high, led by a 0.5% rise in Al Rajhi Bank (1120.SE) and a 1.6% increase in Saudi National Bank (1180.SE).
Crude prices, a key catalyst for the Gulf financial markets, rose on expectations that a limited production increase by major oil producers and a solid post-pandemic recovery in fuel demand will keep a tight supply condition.
In Qatar, the benchmark index (.QSI) climbed 0.5%, with Qatar Gas Transport (QGTS.QA) jumping 4%.
Oil eases on profit-taking, supply concerns check losses | Reuters
Oil eases on profit-taking, supply concerns check losses | Reuters
Oil prices eased on Tuesday, giving up early gains as investors took profits, although expectations that supply will remain tight amid a limited output increase by major producers and a solid post-pandemic recovery in fuel demand checked losses.
Brent crude for April delivery was down 10 cents, or 0.1%, at $89.16 a barrel at 0748 GMT, off an intraday high of $89.70. The front-month contract for March delivery expired on Monday at $91.21 a barrel, up 1.3%.
U.S. West Texas Intermediate crude slipped 6 cents, or 0.1%, to $88.09 a barrel, after gaining 1.5% on Monday. It hit a high of $88.57 earlier in the session.
The benchmarks hit their highest levels since October 2014 on Friday, at $91.70 and $88.84, respectively. They have gained about 17% in January, the biggest monthly gain since February 2021, amid a supply shortage and political uncertainty in Eastern Europe and the Middle East.
Oil prices eased on Tuesday, giving up early gains as investors took profits, although expectations that supply will remain tight amid a limited output increase by major producers and a solid post-pandemic recovery in fuel demand checked losses.
Brent crude for April delivery was down 10 cents, or 0.1%, at $89.16 a barrel at 0748 GMT, off an intraday high of $89.70. The front-month contract for March delivery expired on Monday at $91.21 a barrel, up 1.3%.
U.S. West Texas Intermediate crude slipped 6 cents, or 0.1%, to $88.09 a barrel, after gaining 1.5% on Monday. It hit a high of $88.57 earlier in the session.
The benchmarks hit their highest levels since October 2014 on Friday, at $91.70 and $88.84, respectively. They have gained about 17% in January, the biggest monthly gain since February 2021, amid a supply shortage and political uncertainty in Eastern Europe and the Middle East.