Saudi Wealth Fund May Make Major Investment in Building Firms - Bloomberg
Saudi Arabia’s sovereign wealth fund may invest hundreds of millions of dollars in four local construction firms as it looks to bolster an industry that’s been crippled by payment delays from the government in recent years.
The Public Investment Fund is in talks with Nesma Holding, El Seif Group, Almabani General Contractors and Albawani to buy minority stakes in them or their subsidiaries, according to people familiar with the matter. The PIF has hired Rothschild and GIB Capital as advisers and is looking to take stakes of about 30% in each company, the people said.
The wealth fund may also later invest in international contractors working on Saudi projects, the people said.
The $580-billion PIF is relying on construction firms to build a glut of projects as part of Crown Prince Mohammed Bin Salman’s drive to wean the Saudi economy off oil. The PIF is spending spending hundreds of billions of dollars on tourism resorts, entertainment venues and even an entirely new city.
Sunday 27 March 2022
Gazprom Arm Risks Rattling Energy Markets From U.K. to Singapore - Bloomberg
Gazprom Arm Risks Rattling Energy Markets From U.K. to Singapore - Bloomberg
The trading arm of Russia’s gas giant Gazprom PJSC is under increasing pressure as clients and peers flee in response to the war in Ukraine, posing a risk for energy markets from the U.K. to Germany and Singapore.
Gazprom Marketing & Trading is facing liquidity problems as banks delay its transactions and peers refuse to deal with it, according to people familiar with the matter. But its failure would upend markets beyond its U.K. domicile: the firm is one of Europe’s top gas and power traders, has units in Asia and North America, and traded more than 100 liquefied natural gas cargoes in 2020.
Little known to the general public, Gazprom Marketing & Trading has revenues almost on par with the trading arm of Centrica Plc, the U.K.’s top energy supplier. If it goes out of business, it would bring down its U.K retail arm, a supplier to the National Health Service. The threat is so acute that the government made plans to nationalize the business, known as Gazprom Energy.
A unit in Germany is also at risk. The trading arm holds billions of euros worth of hedges for Wingas GmbH, a sister company that’s one of Germany’s largest gas suppliers, said the people, who asked not to be identified because the information is private. Losing these transactions would force the Kassel-based company, owned by Gazprom’s German arm, to purchase energy for its clients at current high prices.
The trading arm of Russia’s gas giant Gazprom PJSC is under increasing pressure as clients and peers flee in response to the war in Ukraine, posing a risk for energy markets from the U.K. to Germany and Singapore.
Gazprom Marketing & Trading is facing liquidity problems as banks delay its transactions and peers refuse to deal with it, according to people familiar with the matter. But its failure would upend markets beyond its U.K. domicile: the firm is one of Europe’s top gas and power traders, has units in Asia and North America, and traded more than 100 liquefied natural gas cargoes in 2020.
Little known to the general public, Gazprom Marketing & Trading has revenues almost on par with the trading arm of Centrica Plc, the U.K.’s top energy supplier. If it goes out of business, it would bring down its U.K retail arm, a supplier to the National Health Service. The threat is so acute that the government made plans to nationalize the business, known as Gazprom Energy.
A unit in Germany is also at risk. The trading arm holds billions of euros worth of hedges for Wingas GmbH, a sister company that’s one of Germany’s largest gas suppliers, said the people, who asked not to be identified because the information is private. Losing these transactions would force the Kassel-based company, owned by Gazprom’s German arm, to purchase energy for its clients at current high prices.
As BRIC Fund Assets Collapse, Jim O’Neill Is Keeping Away - Bloomberg
As BRIC Fund Assets Collapse, Jim O’Neill Is Keeping Away - Bloomberg
When Jim O’Neill devised the BRIC acronym at the turn of the century, the former Goldman Sachs Group Inc. chief economist did not intend the catchy phrase to be exploited for marketing investment funds.
Money managers scrambled to start funds anyway. The likes of Schroders Plc and Franklin Templeton -- along with Goldman Sachs Asset Management -- gobbled up billions of dollars from clients looking to profit by combining investments in Brazil, Russia, India and China. That marketing ploy has come crashing down and now faces an existential crisis.
Russia’s invasion of Ukraine has made the former uninvestable, with MSCI Inc. removing it from benchmarks including the BRIC Index. China, which represents a major slice of this benchmark, is also slowing and has embarked on an unprecedented crackdown on technology companies that has led to sharp losses.
BRIC funds have lost 14.6% this year, while their combined assets have slumped by more than 90% from their peak to about $3 billion, according to data compiled by Bloomberg.
When Jim O’Neill devised the BRIC acronym at the turn of the century, the former Goldman Sachs Group Inc. chief economist did not intend the catchy phrase to be exploited for marketing investment funds.
Money managers scrambled to start funds anyway. The likes of Schroders Plc and Franklin Templeton -- along with Goldman Sachs Asset Management -- gobbled up billions of dollars from clients looking to profit by combining investments in Brazil, Russia, India and China. That marketing ploy has come crashing down and now faces an existential crisis.
Russia’s invasion of Ukraine has made the former uninvestable, with MSCI Inc. removing it from benchmarks including the BRIC Index. China, which represents a major slice of this benchmark, is also slowing and has embarked on an unprecedented crackdown on technology companies that has led to sharp losses.
BRIC funds have lost 14.6% this year, while their combined assets have slumped by more than 90% from their peak to about $3 billion, according to data compiled by Bloomberg.
EU's Borrell says nuclear agreement with #Iran 'very close' | Reuters
EU's Borrell says nuclear agreement with Iran 'very close' | Reuters
Top EU diplomat Josep Borrell said on Saturday Iran and world powers were "very close" to agreement on reviving their 2015 nuclear deal, which would curb Tehran's nuclear programme in exchange for lifting tough sanctions.
Meanwhile Iran's foreign minister appeared to show flexibility on an issue which has been a leading sticking point in the nuclear talks, and Yemen's Iran-aligned Houthi group launched an apparent peace initiative to end a seven-year war.
Then-U.S. President Donald Trump abandoned the pact in 2018, prompting Tehran to start violating its nuclear limits about a year later, and 11 months of on-and-off talks to revive it paused in Vienna earlier this month after Russia presented a new obstacle.
Russia later said it had received written guarantees that it would be able to carry out its work as a party to the deal, suggesting Moscow could allow it to be resuscitated.
Top EU diplomat Josep Borrell said on Saturday Iran and world powers were "very close" to agreement on reviving their 2015 nuclear deal, which would curb Tehran's nuclear programme in exchange for lifting tough sanctions.
Meanwhile Iran's foreign minister appeared to show flexibility on an issue which has been a leading sticking point in the nuclear talks, and Yemen's Iran-aligned Houthi group launched an apparent peace initiative to end a seven-year war.
Then-U.S. President Donald Trump abandoned the pact in 2018, prompting Tehran to start violating its nuclear limits about a year later, and 11 months of on-and-off talks to revive it paused in Vienna earlier this month after Russia presented a new obstacle.
Russia later said it had received written guarantees that it would be able to carry out its work as a party to the deal, suggesting Moscow could allow it to be resuscitated.
#Saudi Grocer BinDawood Buys Majority Stake in Online Developer - Bloomberg
Saudi Grocer BinDawood Buys Majority Stake in Online Developer - Bloomberg
Saudi Arabian grocery chain BinDawood Holding bought a majority stake in e-commerce app manager and developer International Applications Trading Co. for an initial payment of 107.5 million riyals ($28.7 million) that could increase subject to future profitability milestones.
BinDawood Holding, through its Future Technology Retail unit, signed a definitive agreement to acquire a 62% stake in IATC, according to a statement. The unit will make additional payments in 2023 and 2026, subject to achieving revenue and profitability parameters in the respective previous years. The deal is expected to close in the second half of the year.
The founder and IATC’s management team will remain in place, and BinDawood will invest up to an additional 160 million riyals over a two-year period to develop the platforms, the roll-out of stores and fulfillment centers and to help shorten delivery times, the company said.
The additional investment will increase BinDawood’s stake in IATC, with the overall position to be determined after IATC’s valuation following the finalizing of its fiscal 2022 results.
Saudi Arabia is among the largest and fastest growing e-commerce markets in the region, with e-grocery shopping still in a nascent phase, BinDawood CEO Ahmad BinDawood said in statement, adding the firm is looking to control 30% of the market by 2028.
Saudi Arabian grocery chain BinDawood Holding bought a majority stake in e-commerce app manager and developer International Applications Trading Co. for an initial payment of 107.5 million riyals ($28.7 million) that could increase subject to future profitability milestones.
BinDawood Holding, through its Future Technology Retail unit, signed a definitive agreement to acquire a 62% stake in IATC, according to a statement. The unit will make additional payments in 2023 and 2026, subject to achieving revenue and profitability parameters in the respective previous years. The deal is expected to close in the second half of the year.
The founder and IATC’s management team will remain in place, and BinDawood will invest up to an additional 160 million riyals over a two-year period to develop the platforms, the roll-out of stores and fulfillment centers and to help shorten delivery times, the company said.
The additional investment will increase BinDawood’s stake in IATC, with the overall position to be determined after IATC’s valuation following the finalizing of its fiscal 2022 results.
Saudi Arabia is among the largest and fastest growing e-commerce markets in the region, with e-grocery shopping still in a nascent phase, BinDawood CEO Ahmad BinDawood said in statement, adding the firm is looking to control 30% of the market by 2028.
#Qatar says energy prices should be fair for producers and consumers | Reuters
Qatar says energy prices should be fair for producers and consumers | Reuters
Qatar's finance minister said on Sunday that energy prices should be fair for both producers and consumers.
"We need stable and fair prices that can be supported by the supplier as well as the buyer. This is what our interest is in the long term," Ali bin Ahmed Al Kuwari said at the Doha Forum international conference.
Qatar's finance minister said on Sunday that energy prices should be fair for both producers and consumers.
"We need stable and fair prices that can be supported by the supplier as well as the buyer. This is what our interest is in the long term," Ali bin Ahmed Al Kuwari said at the Doha Forum international conference.