Friday 6 May 2022
Stars align for #UAE to become a global crypto hub | Reuters
Stars align for UAE to become a global crypto hub | Reuters
Dubai and Abu Dhabi are making a play for the cryptocurrency crown. Big crypto exchanges like FTX, last valued at $32 billion, are setting up shop in Dubai. There are a number of reasons why it might be to their taste.
Crypto is growing fast: total transactions volumes grew over 500% to $15.8 trillion in 2021, according to Chainalysis. Yet plenty of Western regulators seem to hate it. European Central Bank board member Fabio Panetta and the U.S. Securities and Exchange Commission’s boss Gary Gensler have both compared the asset class to the “Wild West”. Perhaps as a result, even the two largest cryptocurrencies, bitcoin and ether, are yet to have a dedicated supervisory body in the United States and the UK. Singapore has imposed stricter regulation, despite expressing interest in the market.
That leaves a gap for an ambitious locale willing to build its regulatory architecture around crypto, rather than vice versa. Step forward Dubai and Abu Dhabi. In the last few months, the pair have handed out more than 30 licences and passed new laws for crypto exchanges to operate in the cities. The exchanges have responded. Binance is recruiting for over 100 positions in the Gulf read more , while boss Changpeng Zhao has moved from Singapore to Dubai and bought a home there. FTX and Kraken are heading Gulf-wards, too.
The mutual love-in has a certain logic. Total private wealth held in the United Arab Emirates rose by $46 billion between 2019 and 2021 as some 5,600 millionaires moved to the country, according to the Global Citizens Report, and an influx of Russian oligarchs read more should amplify the trend. Around 25% of Middle East millionaires already invest in some kind of crypto, data from consultant Knight Frank shows. Meanwhile, local businesses like grocery delivery service YallaMarket and property firms are accepting payments in crypto, and the former has floated the idea of paying salaries in the currency. A global YouGov survey found that trust in cryptocurrencies was highest among adults in the UAE.
A Gulf crypto hub also carries obvious risks. The Financial Action Task Force recently said the UAE wasn’t doing enough to counter money-laundering risks, and crypto’s popularity with criminal elements read more raises the risk that a crypto-fuelled scandal could dilute the UAE’s good name instead of enhance it. On the other hand, if these elements can be managed and regulated then it could equally give the region what it could really use: a leading position in a major financial growth sector.
Dubai and Abu Dhabi are making a play for the cryptocurrency crown. Big crypto exchanges like FTX, last valued at $32 billion, are setting up shop in Dubai. There are a number of reasons why it might be to their taste.
Crypto is growing fast: total transactions volumes grew over 500% to $15.8 trillion in 2021, according to Chainalysis. Yet plenty of Western regulators seem to hate it. European Central Bank board member Fabio Panetta and the U.S. Securities and Exchange Commission’s boss Gary Gensler have both compared the asset class to the “Wild West”. Perhaps as a result, even the two largest cryptocurrencies, bitcoin and ether, are yet to have a dedicated supervisory body in the United States and the UK. Singapore has imposed stricter regulation, despite expressing interest in the market.
That leaves a gap for an ambitious locale willing to build its regulatory architecture around crypto, rather than vice versa. Step forward Dubai and Abu Dhabi. In the last few months, the pair have handed out more than 30 licences and passed new laws for crypto exchanges to operate in the cities. The exchanges have responded. Binance is recruiting for over 100 positions in the Gulf read more , while boss Changpeng Zhao has moved from Singapore to Dubai and bought a home there. FTX and Kraken are heading Gulf-wards, too.
The mutual love-in has a certain logic. Total private wealth held in the United Arab Emirates rose by $46 billion between 2019 and 2021 as some 5,600 millionaires moved to the country, according to the Global Citizens Report, and an influx of Russian oligarchs read more should amplify the trend. Around 25% of Middle East millionaires already invest in some kind of crypto, data from consultant Knight Frank shows. Meanwhile, local businesses like grocery delivery service YallaMarket and property firms are accepting payments in crypto, and the former has floated the idea of paying salaries in the currency. A global YouGov survey found that trust in cryptocurrencies was highest among adults in the UAE.
A Gulf crypto hub also carries obvious risks. The Financial Action Task Force recently said the UAE wasn’t doing enough to counter money-laundering risks, and crypto’s popularity with criminal elements read more raises the risk that a crypto-fuelled scandal could dilute the UAE’s good name instead of enhance it. On the other hand, if these elements can be managed and regulated then it could equally give the region what it could really use: a leading position in a major financial growth sector.
Alexander Tamas: the VC you've never heard of
Alexander Tamas: the VC you've never heard of
I’m still amazed by 2020’s boom in SPACs (some $81 billion raised as of December 21 in 242 deals). Increasingly, big players are entering the game: Softbank and Thoma Bravo. Feed the ducks while they are still quacking.
Among this flood of new supply it’s easy for unknown sponsors to get lost in the shuffle. Hat tip to Ramneek who tweeted a quote that got me interested in VYGG, backed by Vy Capital.
Vy Capital is a venture firm founded and run by Alexander Tamas who used to be a key dealmaker at DST, Yuri Milner’s Russian venture firm (with “close links to the Kremlin”). Milner was CEO and Chairman of Mail.Ru and became a household name once DST started writing big checks to US startups, notably $200 million to Facebook in 2009 (more on DST).
After investing in the hottest startups at the time, DST’s third partner Alexander Tamas was blessed with this quote by Marc Andreessen and Ben Horowitz:
I’m still amazed by 2020’s boom in SPACs (some $81 billion raised as of December 21 in 242 deals). Increasingly, big players are entering the game: Softbank and Thoma Bravo. Feed the ducks while they are still quacking.
Among this flood of new supply it’s easy for unknown sponsors to get lost in the shuffle. Hat tip to Ramneek who tweeted a quote that got me interested in VYGG, backed by Vy Capital.
Vy Capital is a venture firm founded and run by Alexander Tamas who used to be a key dealmaker at DST, Yuri Milner’s Russian venture firm (with “close links to the Kremlin”). Milner was CEO and Chairman of Mail.Ru and became a household name once DST started writing big checks to US startups, notably $200 million to Facebook in 2009 (more on DST).
After investing in the hottest startups at the time, DST’s third partner Alexander Tamas was blessed with this quote by Marc Andreessen and Ben Horowitz:
“He (Alexander Tamas) is Yuri Milner's human supercomputer. The investing whiz has placed some of the most impressive investment bets in the history of our industry, including Facebook, Zynga, Groupon and Twitter. He is a walking encyclopedia of Internet business models and strategies. He's on speed-dial for everyone trying to build the most successful, highest-scale, global Internet companies today.”In the article they ranked him as one of the “most powerful people in tech you’ve never heard of.” To be fair, this was when DST raised eyebrows with their check size and before Softbank’s Vision Fund and VC mega funds.
#Dubai-based VyCapital, #Qatar Holding, Binance to help Elon Musk buy Twitter
Dubai-based VyCapital, Qatar Holding, Binance to help Elon Musk buy Twitter
Dubai-based investment firm VyCapital and Qatar Holding, a subsidiary of the Gulf state’s sovereign wealth fund, among others, have committed to contribute to Elon Musk's buyout of Twitter.
According to a filing on the US Securities and Exchange Commission, the Qatar Investment Authority's subsidiary is contributing $375 million and VyCapital, which specialises in internet related investments, has pledged $700 million to Musk's $44 billion takeover bid.
On Thursday, Musk brought in 18 new investors including Binance, the world's largest cryptocurrency platform; venture capital firm Sequoia; and Oracle CEO Larry Ellison to contribute $7.14 billion to his Twitter deal. Musk is expected to secure the rest of the amount via loans or to dip into his own pocket.
Dubai-based investment firm VyCapital and Qatar Holding, a subsidiary of the Gulf state’s sovereign wealth fund, among others, have committed to contribute to Elon Musk's buyout of Twitter.
According to a filing on the US Securities and Exchange Commission, the Qatar Investment Authority's subsidiary is contributing $375 million and VyCapital, which specialises in internet related investments, has pledged $700 million to Musk's $44 billion takeover bid.
On Thursday, Musk brought in 18 new investors including Binance, the world's largest cryptocurrency platform; venture capital firm Sequoia; and Oracle CEO Larry Ellison to contribute $7.14 billion to his Twitter deal. Musk is expected to secure the rest of the amount via loans or to dip into his own pocket.
FAB Appoints Al Binali to Head Corporate and Commercial Banking - Bloomberg #AbuDhabi #UAE
FAB Appoints Al Binali to Head Corporate and Commercial Banking - Bloomberg
First Abu Dhabi Bank PJSC appointed Sara Al Binali as head of corporate and commercial banking at the UAE’s biggest bank, people familiar with the matter said.
Al Binali replaces Shirish Bhide, who is leaving the bank, the people said, asking not be identified because they aren’t authorized to discuss the matter with the media.
Al Binali has served as head of business banking since July 2020 and was the head of strategic planning before that, according to her LinkedIn profile. She began her career in 1999 at the Abu Dhabi Investment Authority, the emirate’s biggest sovereign wealth fund.
FAB, as the Abu Dhabi lender is known, declined to comment when reached by Bloomberg. Bhide didn’t respond to requests for comment.
Since Hana Al Rostamani took over as chief executive officer in early 2021, FAB has embarked on a broad management overhaul that’s led to the departures of several executives in the private bank and investment banking division, Bloomberg News reported in September. The bank has won mandates on several high-profile transactions across the Gulf amid a flurry of deal-making and initial public offerings in the region.
Formed from the merger of National Bank of Abu Dhabi and First Gulf Bank in 2017, FAB is half owned by sovereign wealth fund Mubadala Investment Co. and members of the emirate’s ruling family.
First Abu Dhabi Bank PJSC appointed Sara Al Binali as head of corporate and commercial banking at the UAE’s biggest bank, people familiar with the matter said.
Al Binali replaces Shirish Bhide, who is leaving the bank, the people said, asking not be identified because they aren’t authorized to discuss the matter with the media.
Al Binali has served as head of business banking since July 2020 and was the head of strategic planning before that, according to her LinkedIn profile. She began her career in 1999 at the Abu Dhabi Investment Authority, the emirate’s biggest sovereign wealth fund.
FAB, as the Abu Dhabi lender is known, declined to comment when reached by Bloomberg. Bhide didn’t respond to requests for comment.
Since Hana Al Rostamani took over as chief executive officer in early 2021, FAB has embarked on a broad management overhaul that’s led to the departures of several executives in the private bank and investment banking division, Bloomberg News reported in September. The bank has won mandates on several high-profile transactions across the Gulf amid a flurry of deal-making and initial public offerings in the region.
Formed from the merger of National Bank of Abu Dhabi and First Gulf Bank in 2017, FAB is half owned by sovereign wealth fund Mubadala Investment Co. and members of the emirate’s ruling family.
#Dubai Aerospace Writes Off $538 Million on Planes Stuck in Russia - Bloomberg
Dubai Aerospace Writes Off $538 Million on Planes Stuck in Russia - Bloomberg
The Middle East’s biggest plane-leasing firm wrote off half-a-billion dollars for aircraft stranded in Russia, after the Kremlin issued a law preventing foreign-owned jets from leaving the country without state permission.
Dubai Aerospace Enterprise booked a $538 million write-off for planes with airlines in Russia, it said in a statement on Friday. The company also filed insurance claims of $1 billion, and said this figure may rise.
Aircraft lessors have been caught up in the international response to Russia’s invasion of Ukraine. The Kremlin has blocked the repossession of planes as required by sanctions, stranding roughly 400 jets that had been leased to Russian companies.
Dubai Aerospace Enterprise caters to over 170 airline customers in over 65 countries. Its leasing division manages a fleet of about 425 Airbus SE, ATR and Boeing Co. aircraft, according to information on its website.
The Middle East’s biggest plane-leasing firm wrote off half-a-billion dollars for aircraft stranded in Russia, after the Kremlin issued a law preventing foreign-owned jets from leaving the country without state permission.
Dubai Aerospace Enterprise booked a $538 million write-off for planes with airlines in Russia, it said in a statement on Friday. The company also filed insurance claims of $1 billion, and said this figure may rise.
Aircraft lessors have been caught up in the international response to Russia’s invasion of Ukraine. The Kremlin has blocked the repossession of planes as required by sanctions, stranding roughly 400 jets that had been leased to Russian companies.
Dubai Aerospace Enterprise caters to over 170 airline customers in over 65 countries. Its leasing division manages a fleet of about 425 Airbus SE, ATR and Boeing Co. aircraft, according to information on its website.
#UAE Crypto News: Bankers Quit Jobs for Shot at Riches in ‘Wall Street of Crypto’ - Bloomberg #Dubai
UAE Crypto News: Bankers Quit Jobs for Shot at Riches in ‘Wall Street of Crypto’ - Bloomberg
In the shadow of Dubai’s sail-shaped Burj Al Arab hotel, crypto executives rubbed shoulders with Emirati royals, Wall Street bankers and Instagram influencers.
The festivities in late March were organized by Binance Holdings Ltd. in its de facto home of the United Arab Emirates, which is fast becoming a global hub for digital currencies. Co-founder and Chief Executive Officer Changpeng ‘CZ’ Zhao skipped the event as he recovered from Covid, but he was top of mind for partygoers who said they aspired to replicate his rapid ascent from software developer to one of the world’s wealthiest people.
Following Zhao’s lead, many are flocking to the UAE, which he has called the “Wall Street of crypto.” The euphoria even has local bankers, lawyers and big tech executives pondering career pivots of their own to cash in.
“We see a lot of interest from employees in traditional financial institutions who want to work for us,” Richard Teng, the head of Middle East and North Africa at Binance, which is the world’s largest crypto exchange by trading volume, said in an interview at Bloomberg’s Dubai office. “We’re actually recruiting a number of them.”
In the shadow of Dubai’s sail-shaped Burj Al Arab hotel, crypto executives rubbed shoulders with Emirati royals, Wall Street bankers and Instagram influencers.
The festivities in late March were organized by Binance Holdings Ltd. in its de facto home of the United Arab Emirates, which is fast becoming a global hub for digital currencies. Co-founder and Chief Executive Officer Changpeng ‘CZ’ Zhao skipped the event as he recovered from Covid, but he was top of mind for partygoers who said they aspired to replicate his rapid ascent from software developer to one of the world’s wealthiest people.
Following Zhao’s lead, many are flocking to the UAE, which he has called the “Wall Street of crypto.” The euphoria even has local bankers, lawyers and big tech executives pondering career pivots of their own to cash in.
“We see a lot of interest from employees in traditional financial institutions who want to work for us,” Richard Teng, the head of Middle East and North Africa at Binance, which is the world’s largest crypto exchange by trading volume, said in an interview at Bloomberg’s Dubai office. “We’re actually recruiting a number of them.”
#SaudiArabia announces $6 bln investments in steel complex, EV metals plant | Reuters
Saudi Arabia announces $6 bln investments in steel complex, EV metals plant | Reuters
Saudi Arabia's Ministry of Industry and Mineral Resources said it has secured $6 billion for a steel plate mill complex and electric vehicle battery metals plant as part of plans to lure $32 billion of investment into the mining sector.
The ministry's target would fund nine mining projects for midstream minerals and metals, said Industry and Mineral Resources Minister Bandar al-Khorayef, according to a statement.
The kingdom is seeking to diversify its economy away from oil by pouring hundreds of billions of dollars into a plan called Vision 2030 initiated by de facto ruler Crown Prince Mohammed bin Salman. Mining is one of the sectors that has been identified for expansion.
The nine projects include a $4 billion steel plate mill complex for the shipbuilding, oil and gas, construction and defence sectors and a "green" flat steel complex that will supply the automotive, food packaging, machinery and equipment, and other industrial sectors. Both projects are already underway, as is a $2 billion EV battery metals plant.
Saudi Arabia's Ministry of Industry and Mineral Resources said it has secured $6 billion for a steel plate mill complex and electric vehicle battery metals plant as part of plans to lure $32 billion of investment into the mining sector.
The ministry's target would fund nine mining projects for midstream minerals and metals, said Industry and Mineral Resources Minister Bandar al-Khorayef, according to a statement.
The kingdom is seeking to diversify its economy away from oil by pouring hundreds of billions of dollars into a plan called Vision 2030 initiated by de facto ruler Crown Prince Mohammed bin Salman. Mining is one of the sectors that has been identified for expansion.
The nine projects include a $4 billion steel plate mill complex for the shipbuilding, oil and gas, construction and defence sectors and a "green" flat steel complex that will supply the automotive, food packaging, machinery and equipment, and other industrial sectors. Both projects are already underway, as is a $2 billion EV battery metals plant.
Oil rises as supply concerns persist | Reuters
Oil rises as supply concerns persist | Reuters
Oil prices climbed for a third straight session on Friday, shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply.
Brent futures rose $2.08, or 1.88%, to $112.98per barrel by 0922 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $2.00, or 1.85%, to $110.26 a barrel.
Brent and WTI are on track to rise for a second week in a row, buoyed by the EU's proposal to phase out supplies of Russian crude oil in six months and refined products by the end of 2022. It would also ban all shipping and insurance services for transporting Russian oil.
The EU is tweaking its sanctions plan in a bid to win over reluctant states, three EU sources told Reuters on Friday. read more
Oil prices climbed for a third straight session on Friday, shrugging off concerns about global economic growth as impending European Union sanctions on Russian oil raised the prospect of tighter supply.
Brent futures rose $2.08, or 1.88%, to $112.98per barrel by 0922 GMT, while U.S. West Texas Intermediate (WTI) crude climbed $2.00, or 1.85%, to $110.26 a barrel.
Brent and WTI are on track to rise for a second week in a row, buoyed by the EU's proposal to phase out supplies of Russian crude oil in six months and refined products by the end of 2022. It would also ban all shipping and insurance services for transporting Russian oil.
The EU is tweaking its sanctions plan in a bid to win over reluctant states, three EU sources told Reuters on Friday. read more
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