Mideast Spotify Rival Anghami Soars on Debut After SPAC Merger - Bloomberg video
Middle Eastern Spotify Technology SA rival Anghami surged as much as 82% on its Nasdaq debut following its merger with a blank-check firm, even after all but a handful of investors opted to return their shares in exchange for cash.
Anghami shares opened at $17.91 on Friday, before paring some of the gains to trade around $12. It’s the first Arab technology company to list on Nasdaq and its debut comes a day after Spotify’s shares tumbled in the U.S. after disclosing a slowdown in growth, following a month of controversy involving podcast host Joe Rogan.
Special purpose acquisition companies are facing waning investor sentiment after they took Wall Street by storm last year, with high redemption rates, pulled listings and sinking share prices underscoring the troubles facing the asset class.
Holders of 9.8 million of the 10 million shares in Vistas Media Acquisition Company Inc., the SPAC behind Anghami’s float, have opted to return them for cash, according to a filing. The Abu Dhabi-based firm took the development in its stride.
Oil Market Keeps Getting Stronger as Prices Blow Through $92 - Bloomberg
“The rally in crude prices is showing no signs of slowing down as both supply and demand drivers remain very bullish,” said Ed Moya, Oanda’s senior market analyst for the Americas. “Geopolitical risks that include Russia-Ukraine tensions and Iran nuclear talks are also wildcards for oil prices as they seem more likely to lead to a tighter market over the short-term.
All of that is coming as OPEC+ struggles to lift output by the 400,000 barrels a day it has pledged each month. In January, OPEC’s 13 members added just 50,000 barrels a day, fanning trader concerns that the market’s spare capacity buffer is dwindling.
The rally means a return of $100 oil is growing increasingly likely by the day. For months, options markets have been abuzz with trading of contracts above that level. There are the equivalent of almost 112 million barrels of $100 calls for the global Brent benchmark over the next 12 months. Call options sold by banks in the $90s are also likely contributing to oil’s move higher.
On Friday, headline prices rose again with West Texas Intermediate settling at $92.31, and posting its seventh straight weekly gain, rising 6.3%. The global benchmark settled up 2.4% at $93.27 in New York.
Saudi Fund Jada Backs Ex-L Catterton Asia Chief’s $500 Million Fund - Bloomberg
Turmeric Capital, an investment firm led by former L Catterton Asia head Ravi Thakran, has secured backing from Saudi Arabia for a $500 million private equity fund, according to people familiar with the matter.
Jada, which was given $1 billion by Saudi Arabia’s wealth fund to seed venture and private equity firms investing in the country, will commit about $100 million, the people said, asking not to be identified as the information is private.
Known as the New Consumer Growth Fund, it’s looking to deploy capital “in vibrant regional businesses across the developing underfunded markets” in the Middle East, North Africa and South Asia, according to a presentation seen by Bloomberg.
The document dated January 2022 said Turmeric is establishing the fund in partnership with LVMH-backed L Catterton.
Truck It In Raises Largest Early Funding in Pakistan, MENA - Bloomberg
Pakistan’s Truck It In has raised $13 million in early-stage funding, the largest for a logistics startup in the Middle East, North Africa and its home country.
The Karachi-based startup’s seed round is jointly led by venture capital firms Global Founders Capital and Fatima Gobi Ventures. The other investors in the round include Picus Capital, Millville, Wamda, Zayn Capital, i2i Ventures, ADB Ventures, Cianna Capital, Reflect Ventures and K3 Ventures.
Pakistan, one of the world’s largest untapped markets, is seeing a funding frenzy in startups with more than $350 million raised last year, greater than the amount raised in at least the past six years combined. The nation relies on trucks for the bulk of its transportation needs with train cargo being almost non-existent. Pakistan’s freight market represents a $25 billion annual opportunity, according to the startup.
The startup is focusing on Pakistan’s small- and medium-sized truck operators that represent 80% of the fragmented market. Drivers can end up waiting days or weeks to get an order.
Saudi Aramco Restarts Discussions on Fresh Share Sale - Bloomberg
Saudi Arabia has started preliminary discussions on a fresh Aramco stock offering that could raise more money than its landmark listing two years ago, people familiar with the matter said.
The oil giant’s fortunes have shifted dramatically since its record-breaking 2019 initial public offering, which brought more than the $29.4 billion into the kingdom’s coffers. After enduring a painful oil-price slump in the initial stages of the Covid-19 pandemic, producers are now enjoying surging profits as fears of supply scarcity drives crude higher.
The Saudi government, which still owns the majority of Aramco, has held talks with advisers on the potential share sale, which could bring in more than than its initial IPO, the people said, asking not to be named because the matter is private. However, discussions are at an early stage and it hasn’t yet been decided whether to proceed with a listing and no timetables have been set, they said.
Dow Jones reported earlier that Aramco may sell as much as a $50 billion stake, or 2.5% of the company at current prices.
The kingdom’s internal deliberations come as oil trades at a seven-year high above $90 a barrel -- an increase of about $30 a barrel since Aramco first offered its shares. But while rallying crude prices have buoyed the company’s financial performance, it hasn’t resulted in higher dividends which may dampen interest among international investors.
When Saudi Arabia first proposed an IPO of Aramco, it had hoped to attract tens of billions of dollars of foreign capital into the kingdom. However, the share sale ended being a local affair, with the company relying on ultra-wealthy Saudis to buy its stock.
Aramco and the Saudi government’s Centre for International Communications didn’t immediately respond to requests for comment.
Oil hits seven-year highs as U.S. storm heightens supply concerns | Reuters
Oil prices reached seven-year highs on Friday as geopolitical tensions and a winter storm in the United States fuelled concerns over supply disruptions.
Brent crude rose $1.71, or 1.9%, to $92.82 a barrel by 1348 GMT, having earlier touched its highest since October 2014 at $93.05.
U.S. West Texas Intermediate crude rose by $1.84, or 2%, to $92.11 after also scaling a seven-year peak at $92.33.
Both benchmarks were on course for a seventh consecutive weekly gain.
"It may just be a matter of time until we're closing in on triple figures," said Craig Erlam, senior market analyst at OANDA.
UAE shares rebound as supply fears boost oil prices | Reuters
Brent crude rose $1.32, or 1.5%, to $92.43 a barrel by 1120 GMT, having touched its highest since October 2014 at $92.66 earlier in the session.
The Dubai stock index (.DFMGI) gained 0.6%, recovering from losses in the previous session, supported by its financial stocks, as Commercial Bank Of Dubai jumped 8.4% and its largest lender, Emirates NBD Bank (ENBD.DU), gained 0.8%. The index was down 1.5% for the week.
The index trimmed its weekly losses but continues to trade sideways on the broader picture in the absence of strong catalysts, said Wael Makarem, Senior Market Strategist, MENA, at Exness.
The UAE said on Monday it would introduce a federal corporate tax on business profits for the first time starting June 1, 2023, although it kept the rate low, at 9%, to maintain its attractiveness for businesses. read more
"While the introduction of the new profit tax does not seem to be a source of concern for now," Makarem said.
In Abu Dhabi, shares (.FTFADGI) edged up 0.1%, led by a 1.2% gain in real estate developer Aldar Properties (ALDAR.AD) and a 13.3% surge in National Bank of Ras Al Khaimah (RAKBANK.AD), after reporting full-year net profit rose more than 33% to 756.1 million dirhams ($205.88 million).
Aldar Properties said on Thursday it planned to invest 1 billion dirhams ($272.29 million) in Aldar Education, its wholly owned subsidiary, and the largest premium school operator in Abu Dhabi . Abu Dhabi index also fell 0.4% for the week.
Markets in the UAE shifted to a new Monday-to-Friday working week from the start of 2022 to better align with global markets.
Oil hits seven-year highs as U.S. storm heightens supply concerns | Reuters
Oil prices reached seven-year highs on Friday as geopolitical tensions and a winter storm in the United States fuelled concerns over supply disruptions.
Brent crude rose $1.29, or 1.4%, to $92.40 a barrel by 1100 GMT, having earlier touched its highest since October 2014 at $92.66.
U.S. West Texas Intermediate crude rose $1.36, or 1.5%, to $91.63 after also scaling a seven-year peak at $91.91.
Both benchmarks were on course for a seventh consecutive weekly gain.
"The latest upswing was triggered by a cold snap in Texas, which is fuelling concerns about production outages in the Permian Basin, the largest U.S. shale play," said Commerzbank commodities analyst Carsten Fritsch.
Abu Dhabi Ports Group to list on ADX next week
Abu Dhabi Ports Group, the operator of industrial cities and free zones in the emirate, will list on the main market of the Abu Dhabi Securities Exchange next week.
The shares of Abu Dhabi Ports Group — majority owned by ADQ, one of the region’s largest holding companies — will list under the trading symbol ADPORTS on February 8, the ADX said in a statement on Friday.
The company’s shares will be listed in “the first market — first category”, said the bourse, without disclosing the size of the listing that was first announced by ADQ in September 2021.
The share capital of the company was increased to Dh5.09 billion ($1.4bn) in 2022 from Dh3.84bn by way of private placement, with the nominal value of each share priced at Dh1, according to the company's prospectus.
ADQ currently has a stake of 75.44 per cent, or 3.84 billion shares, in Abu Dhabi Ports Group.
Saudi construction firm Azmeel's creditors approve $2 bln debt restructuring | Reuters
Creditors of Saudi Arabia's Azmeel Contracting Co, one of the kingdom's five biggest builders, have approved the restructuring of a 7.73 billion riyal ($2.06 billion) debt pile mainly through an issuance of perpetual Islamic bonds, its chief restructuring officer said on Friday.
Saudi Arabia's construction sector has faced myriad problems in recent years, with many firms falling casualty amid late payments from the government, rising costs and swings in oil prices that impact state-backed infrastructure projects.
About 88% of Azmeel's creditors, including 90% of banks and 75% of trade creditors, voted in favour of the restructuring plan, which will give them the option to sell their exposure in the secondary market should they choose to do so, Hisham Ashour, Azmeel's chief restructuring officer and managing director at Haykala Investment Managers, told Reuters.
In October 2019, Azmeel was one of the first Saudi companies to enter formal bankruptcy proceedings under a law that came into effect in 2018, part of broader Saudi plans to attract foreign investment
Dubai Islamic Bank Sees UAE as an Attractive Market Despite New Tax - Bloomberg
Dubai Islamic Bank, one of the city’s biggest lenders, expects the United Arab Emirates to remain competitive after a new tax on business profits comes into effect next year.
The UAE, of which Dubai is a part, earlier this week set out plans to levy a 9% corporate tax from June 2023. The tax won’t apply on personal income from employment, real estate and other investments, and incentives for free zones will continue.
The new tax regime is “welcome,” DIB Chief Executive Officer Adnan Chilwan said in an interview on Bloomberg TV on Friday. The levy won’t lead to a slowdown in the economy as it is still more competitive than some regional neighbors and global tax standards, he said.
To offset some of the higher expenses, Dubai’s government has already said it will consider cutting costs for businesses operating in the Middle East’s commercial hub.
“The UAE continues to be a very, very attractive market,” Chilwan said.
Oil to hit $100 on strong demand, Russia-Ukraine crisis -strategists | Reuters
Crude oil prices are likely to rise above $100 per barrel due to strong global demand, market strategists said this week, citing a potential war between Russia and Ukraine as one of their top concerns for markets in 2022.
Oil prices would gain if global supplies got disrupted, and as "substitution" demand from sky-rocketing natural gas prices in Europe and Asia picks up, along with re-openings from COVID-19 lockdowns, which will propel demand for aviation and other fuels, three strategists told the Reuters Global Markets Forum (GMF).
"The top geopolitical risk is Ukraine," said John Vail, chief global strategist at Nikko Asset Management in Tokyo. "The trend looks good in general for commodities."
The United States warned on Thursday that Russia has formulated several options as an excuse to invade Ukraine, including the potential use of a propaganda video showing a staged attack. Moscow dismissed the charge and has in the past says it is not planning an invasion.
