#UAE’s Sheikh Mohammed takes power as dynasty speculation swirls | Financial Times

UAE’s Sheikh Mohammed takes power as dynasty speculation swirls | Financial Times

As world leaders descended on the United Arab Emirates this week to offer condolences on the death of ruler Sheikh Khalifa, diplomatic circles buzzed with speculation over whether his successor Sheikh Mohammed, known as MBZ, would break with tradition and pick his son, rather than one of his brothers, as crown prince. 

The nomination of a crown prince or heir apparent is used to signal stability in Abu Dhabi, the oil-rich emirate that leads the Gulf monarchy, whose ruler wields power in consultation with his siblings and other powerful clans. The UAE plays an increasingly important role across the Middle East. 

The UAE’s founder, Sheikh Zayed — the father of Sheikh Khalifa and Mohammed and other influential officials — had two decades ago indicated that succession should pass through his sons but many anticipate that the powerful Sheikh Mohammed, 61, will instead choose his eldest son, Sheikh Khaled. 

“There are obviously concerns that MBZ wants to establish his own dynasty by selecting Khaled. It would be a massive departure from the traditional power dynamics in the UAE,” said Cinzia Bianco, a visiting fellow at the European Council on Foreign Relations. “MBZ is already doing centralisation — this would be hyper-centralisation.”

#UAE urges family-owned businesses to list on local bourses

UAE urges family-owned businesses to list on local bourses

The UAE is encouraging more family-owned businesses to list shares on the country's stock exchanges in a move to enable easier succession in companies and provide more liquidity to local bourses, a top government official said.

"It is encouraged a lot, we've seen family-owned businesses structure themselves to be able to exit partially or fully into IPO [initial public offering]," Ahmad Al Falasi, Minister of State for Entrepreneurship and SMEs, told The National on the sidelines of the Top CEO Forum in Dubai on Thursday.

"Once you list that company, the level of data that goes into the processes makes it easier as well for succession, for inheritances, because you are now being listed, you're reporting and auditing, you're in a shareholder structure that makes it much more friendly for succession as well," he said.

Additionally, listing more family-owned businesses that are "big names" and "big conglomerates" is injecting significant levels of liquidity into UAE's stock markets, Mr Al Falasi said.

Alpha Dhabi to invest $2.5bn in #AbuDhabi venture fund

Alpha Dhabi to invest $2.5bn in Abu Dhabi venture fund

Alpha Dhabi Holding, a subsidiary of Abu Dhabi's International Holding Company, has made a Dh9.2 billion ($2.5bn) commitment to invest in a venture fund that will focus on investments in growth-stage companies globally.

The Alpha Wave Ventures II, launched by Chimera Capital and Alpha Wave, will receive a capital contribution of Dh2.6bn and undrawn capital commitment of Dh6.6bn, which will be drawn down over the investment period of the fund. Alpha Dhabi revealed the move in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The fund, which was launched earlier this year, has already started to make investments.

With its global remit, the investment vehicle is prioritising private companies with a particular focus on growth-stage businesses across sectors including artificial intelligence, FinTech and life sciences.

Oil rebounds from two days of losses in volatile trade | Reuters

Oil rebounds from two days of losses in volatile trade | Reuters

Oil prices rebounded from two days of losses in a volatile session on Thursday, bolstered by weakness in the dollar and expectations that China could ease some lockdown restrictions that could boost demand.

Crude benchmarks continued their spate of wild swings, with both Brent and U.S. crude rising by nearly $5 a barrel in the span of a few hours, recovering from losses earlier in the week.

"The market has been extremely volatile," said Andrew Lipow, president of Lipow Oil Associates in Houston. "The market is reacting to all sorts of different headlines hour to hour, and the movement in oil markets on a day-by-day basis getting even more exaggerated."

Brent crude futures for July settled at $112.04, a gain of $2.93 a barrel, or 2.7%. U.S. West Texas Intermediate (WTI) crude futures for June settled up $2.62, or 2.4%, to $112.21 a barrel.

In China, investors are closely watching plans to ease coronavirus curbs from June 1 in the most populous city of Shanghai, which could lead to a rebound in oil demand from the world's top crude importer.

Biden Weighs Meeting #Saudi Crown Prince in Sign of Thawing - Bloomberg

Biden Weighs Meeting Saudi Crown Prince in Sign of Thawing - Bloomberg

U.S. President Joe Biden is weighing a meeting with Saudi Arabia’s Mohammed bin Salman as soon as next month, according to people familiar with the matter, after avoiding contact with the crown prince over the murder of columnist Jamal Khashoggi.

The move will mark a shift for Biden. Early in his presidency, the White House had said that Biden would deal only with Saudi Arabia’s official head of state, King Salman. An administration official, who asked not to be identified because of the sensitivity of the matter, said Biden may visit the Middle East for meetings with the Gulf Cooperation Council, a regional political and economic union, and noted that Saudi Arabia currently holds the presidency of the group.

The people familiar with the matter asked not to be identified because a meeting remains under discussion. CNN reported earlier that planning was underway for a meeting between Biden and MBS, as he is also known.

A spokeswoman for the White House National Security Council said they have no travel to announce at this time.Saudi Arabia’s Center for International Communication, and the Saudi Embassy in Washington, did not immediately respond to requests for comment.

Ex-Gucci Backer Investcorp Weighs Setting Up #UAE SPAC - Bloomberg

Ex-Gucci Backer Investcorp Weighs Setting Up UAE SPAC - Bloomberg

Investcorp is considering listing a special purpose acquisition company in the UAE, according to people with knowledge of the matter, boosting momentum for the Middle East’s nascent blank-check market.

The Bahrain-based asset manager, which previously backed luxury brands Tiffany & Co. and Gucci Ltd., is working with banks including Moelis & Co on setting up a regional SPAC that could raise as much as $250 million, the people said, asking not to be identified as the information isn’t public.

Talks are preliminary and Investcorp may still decide against listing a blank-check firm, the people added. Representatives for Investcorp and Moelis declined to comment.

The United Arab Emirates is plowing ahead with creating a SPAC market, even as Wall Street banks beat a hasty retreat from the business in the US as regulatory risks stack up. Poor returns and a slew of pulled deals have also weighed on what had previously been one of the financial industry’s hottest fads.

#SaudiArabia Food Delivery Company Jahez Seeks to Acquire Rival Chefz - Bloomberg

Saudi Arabia Food Delivery Company Jahez Seeks to Acquire Rival Chefz - Bloomberg

Saudi food delivery firm Jahez signed a non-binding pact to acquire The Chefz, months after Delivery Hero SE’s attempt to buy the firm was thwarted by the local competition watchdog.

Jahez International Co. for Information Systems Technology, as the firm is formally known, plans a full takeover of The Chefz, according to a statement. The consideration for the proposed transaction will be based on a due diligence and will include cash and shares in Jahez.

Saudi Arabia’s General Authority for Competition last year rejected Delivery Hero’s takeover offer for The Chefz, without disclosing any details or the reasons for its decision.

The Chefz, which started out as an app that specialized in home delivery for fine dining restaurants before expanding its services in the kingdom, competes against Delivery Hero’s Hungerstation and Jahez.

Jahez is the biggest locally owned food delivery group in Saudi Arabia. The firm made its trading debut in January after pricing its initial public offering at the top end of a planned range.

The shares have gained about 24% this year, giving it a market value of about $2.9 billion.

Oil swings wildly, rebounding to gains after steep losses | Reuters

Oil swings wildly, rebounding to gains after steep losses | Reuters

Oil prices rebounded from earlier losses in another volatile session on Thursday as Chinese officials planned to ease restrictions in Shanghai, which could further tighten global energy supply, and as the dollar retreated from recent gains.

Crude benchmarks continued their spate of wild swings, with both Brent and U.S. crude rising by nearly $5 a barrel in the span of a few hours, recovering from losses earlier in the week.

Brent crude futures for July rose $1.45, up 1.3%, to $110.57 a barrel at 12:32 p.m. EDT (1632 GMT), after hitting a session low of $105.75. U.S. West Texas Intermediate (WTI) crude futures for June rose 66 cents to $110.16, after dropping to $105.13 earlier.

"The market has been extremely volatile," said Andrew Lipow, president of Lipow Oil Associates in Houston. "The market is reacting to all sorts of different headlines hour to hour, and the movement in oil markets on a day-by-day basis getting even more exaggerated."

#SaudiArabia's ACWA expects NEOM hydrogen plant financing in Q3 | Reuters

Saudi Arabia's ACWA expects NEOM hydrogen plant financing in Q3 | Reuters

Saudi Arabia's utility developer ACWA Power (2082.SE), partly owned by the sovereign Public Investment Fund, expects to close financing for a multi-billion dollar green hydrogen plant in the third quarter, its chief executive said on Thursday.

The kingdom, one of the world's top oil exporters, wants to become the biggest supplier of green hydrogen, aiming to produce around 4 million tonnes by 2030 as part of Crown Prince Mohammed bin Salman's drive to diversify the economy.

"We should be sharing good news during Q3," ACWA's CEO Paddy Padmanathan told Reuters when asked about closing the project finance facility for the expected $5 billion plant which is being built in the planned futuristic city NEOM.

In a previous interview in October, Padmanathan had expected to have the financing in place in the first quarter.

Oil prices extend losses on fears of economic slowdown | Reuters

Oil prices extend losses on fears of economic slowdown | Reuters

Oil prices fell on Thursday on concerns that high fuel prices could hurt economic growth, but a planned easing of restrictions in Shanghai and a tight supply outlook limited losses.

Brent crude futures for July were down 75 cents, or 0.7%, at $108.36 a barrel by 1354 GMT, after hitting a session low of $105.75. U.S. West Texas Intermediate (WTI) crude futures for June fell $1.42, or 1.3%, to $108.17 a barrel, after dropping to $105.13 earlier.

Front-month prices for both benchmarks fell about 2.5% on Wednesday.

"Slumping stocks led by the U.S. retail sector raised concerns about growth, and with that, demand for fuels," Saxo Bank analyst Ole Hansen said.

Mideast Stocks: Most Gulf indexes track decline in global shares

Mideast Stocks: Most Gulf indexes track decline in global shares

Most stock markets in the Gulf ended lower on Thursday, tracking global shares as investors shunned riskier assets on worries about global inflation, China's zero-COVID policy and the Ukraine war.

The S&P 500 had lost 4% on Wednesday while the Nasdaq had fallen almost 5% as stark warnings from some of the world's biggest retailers underscored the impact of inflation.

Saudi Arabia's benchmark index dropped 2.3%, underperforming the region, dragged down by a 2.8% fall in Al Rajhi Bank and a 2.3% decline in oil behemoth Saudi Aramco. Among other losers, Saudi Electricity closed 5.7% lower, extending losses from Wednesday when it reported a drop in quarterly net profit.

In Abu Dhabi, the index gave up early gains, to finish 0.6% lower, hit by a 2% fall in the country's largest lender First Abu Dhabi Bank. On the other hand, International Holding Co (IHC) advanced 1.5%, extending gains from the previous session when the conglomerate announced the completion of a 7.3-billion dirham ($1.99 billion) investment deal for three Adani companies.

Dubai's main share index slid 1.4%, with sharia-compliant lender Dubai Islamic Bank losing 3% and Emirates Integrated Telecommunications retreating 1.6%. The Dubai index fell after a small rebound as investors continue to secure their gains, said Daniel Takieddine, CEO MENA BDSwiss. "The market has recorded significant increases in the last few months and could see additional price corrections along with other international markets."

The Qatari index declined 2.2%, as almost all the stocks on the index were in negative territory including the Gulf's largest lender, Qatar National Bank, down 5.9%.

Outside the Gulf, Egypt's blue-chip index added 0.8%, helped by a 2.9% rise in top lender Commercial International Bank.

ADNOC announces three new oil discoveries -statement | Reuters

ADNOC announces three new oil discoveries -statement | Reuters

Abu Dhabi National Oil Company (ADNOC) on Thursday announced three oil discoveries including one at Bu Hasa, Abu Dhabi’s biggest onshore field, with a crude oil production capacity of 650,000 barrels per day (bpd), the company said on Thursday.

ADNOC said the second oil find was in Abu Dhabi’s Onshore Block 3, operated by Occidental, and around 100 million barrels of oil in place were discovered.

In the third discovery, around 50 million barrels of light and sweet Murban-quality crude were found in the Al Dhafra Petroleum Concession, ADNOC said.

#SaudiArabia Targets Carmaking Big League With Lucid Tie-Up - Bloomberg

Saudi Arabia Targets Carmaking Big League With Lucid Tie-Up - Bloomberg

Saudi Arabia is working toward rolling out hundreds of thousands of cars a year, joining forces with luxury electric-vehicle startup Lucid Group Inc. as it looks to become a hub for automakers.

The kingdom, seeking to diversify its economy away from oil, is aiming to make some 300,000 cars a year by 2030, Industry and Minerals Resources Minister Bandar Alkhorayef said. Half of those cars will by built by Lucid, he said.

“Our direction toward setting up more EV manufacturing plants is very serious and important,” the minister said in an interview at the King Abdullah Economic City on the country’s west coast, where Lucid is building a factory.

Lucid, which is part-owned by the kingdom’s sovereign wealth fund, will export 85% of its Saudi-made EVs, while other manufacturers are expected to export about 25%, he said. Exports would target India, China, Africa and the rest of the Middle East, he said.

#Saudi banks will benefit from higher oil prices in wake of Ukraine conflict

Saudi banks will benefit from higher oil prices in wake of Ukraine conflict

Banks in Saudi Arabia stand to benefit from the latest shock caused by the conflict in Ukraine, while those in other emerging markets will face new risks as a result of the war, according to ratings agency Moody’s.

In a report on emerging market banks released today, the agency said the kingdom’s banks will benefit from rising oil prices, which will boost tax revenues, increase liquidity and lift economic growth, allowing the government to start unwinding five years of fiscal deficits.

“Higher oil revenues will also buoy investor confidence and increase flows of deposits into the banking sector.

“We expect real GDP to surge to 7.2 percent in 2022 and 4.5 percent in 2023, after tepid economic expansion in the years before the pandemic,” the agency said in its report.

Lucid Electric-Car Factory in #SaudiArabia to Receive $3.4 Billion in Incentives - Bloomberg video

Lucid Electric-Car Factory in Saudi Arabia to Receive $3.4 Billion in Incentives - Bloomberg

Lucid Group Inc. will receive as much as $3.4 billion in financing and incentives over the next 15 years for its planned factory in Saudi Arabia, which will be able to make as many as 155,000 electric vehicles annually.

The details, revealed Wednesday in conjunction with a ceremonial signing event, underscore the substantial scope of the project as the Newark, California-based EV maker plots its second production facility. Saudi Arabia, which owns a majority of Lucid’s shares through its sovereign wealth fund, recently committed to buy up to 100,000 electric vehicles from Lucid over the next 10 years.

Chairman Andrew Liveris told Bloomberg TV in January that the company hopes to have the factory up and running by 2026. It will be located in the King Abdullah Economic City, close to the major Red Sea trading port. Construction is slated to begin later this year.

Lucid shares fell 2.6% at 9:44 a.m. in New York. The stock declined 53% this year through Tuesday’s close.

Oil prices extend losses on fears of economic slowdown | Reuters

Oil prices extend losses on fears of economic slowdown | Reuters

Oil prices fell on Thursday, following earlier gains, on concerns that high fuel prices could hurt economic growth, but planned easing of restrictions in Shanghai and a tight supply outlook capped losses.

Brent crude futures for July were down $1.25, or 1.2%, at $107.86 a barrel by 0932 GMT. U.S. West Texas Intermediate (WTI) crude futures for June fell $1.96, or 1.8%, to $107.63 a barrel.

Front-month prices for both benchmarks fell about 2.5% on Wednesday.

"Slumping stocks led by the US retail sector raised concerns about growth, and with that, demand for fuels," Saxo Bank analyst Ole Hansen said.

Heavy falls on European and Asian stock markets followed Wall Street's worst day since mid-2020, as stark warnings from some of the world's biggest retailers underscored just how hard inflation is biting. read more

#SaudiArabia leads most Gulf bourses lower; #AbuDhabi gains | Reuters

Saudi Arabia leads most Gulf bourses lower; Abu Dhabi gains | Reuters

Saudi Arabia led a decline in most Gulf stock markets on Thursday as investors fled riskier assets on worries about global inflation, China's zero-COVID policy and the Ukraine war.

The main stock index in Saudi Arabia (.TASI) dropped 2.7%, mirroring weakness in global peers after an overnight selloff on Wall Street.

Losses were concentrated in Al Rajhi Bank (1120.SE) and oil behemoth Saudi Aramco (2222.SE), both of which fell nearly 3%. Saudi Electricity (5110.SE) tumbled 5.5% to extend losses from Wednesday when it reported a drop in quarterly net profit.

In Dubai, the main share index (.DFMGI) was 1.1% lower, hit by a 1.4% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 1.3% slide in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Qatar index (.QSI) retreated 2.5%, with almost all the stocks trading in negative territory including Qatar National Bank (QNBK.QA), the Gulf's biggest lender, down 4.6%.

Bucking the trend, the Abu Dhabi index (.FTFADGI) advanced 1%, buoyed by a 7.6% rise in International Holding Co (IHC) (IHC.AD).

IHC, chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser of the United Arab Emirates, had gained 6.7% in the previous session after completing a 7.3-billion dirham ($1.99 billion) investment deal for three Adani companies.

Separately, Abu Dhabi National Oil Company (ADNOC) and its Austrian chemicals partner Borealis plan an initial public offering of their petrochemicals joint venture Borouge, the latest step in the Abu Dhabi state energy group's asset monetisation programme. read more