Schlumberger-Backed Arabian Drilling Gets Approval for Saudi IPO - Bloomberg
Arabian Drilling Co., a Saudi oilfield-services firm partly held by Schlumberger NV, obtained the regulator’s approval to list its shares in an initial public offering, joining a steady stream of companies tapping the Gulf’s biggest stock market.
The company received the go-ahead to list a 30% stake, or 26.7 million shares, on the Saudi stock exchange, according to a statement. Bloomberg reported in April, citing people familiar with the matter, that Arabian Drilling appointed the Saudi unit of HSBC Holdings Plc and SNB Capital as financial advisers for an IPO that could value it at more than $1.4 billion.
Investor appetite for local listings remains strong, though a rally in Middle Eastern equities faded over the past month as fears of recessions gripped global markets. Saudi Arabian stocks briefly erased this year’s gains last week, trading about 18% below a high in May, before rebounding as bargain hunters stepped in.
Saudi Arabia’s stock market is one of the most active in the Middle East and since allowing foreigners to directly buy stocks in 2015 has attracted some of the biggest global investors. The exchange has been working for several years to attract listings from companies in the region as it tries to position itself as the main venue for stock trading in Middle East.
Arabian Drilling was founded in 1964 and counts Saudi Aramco, the kingdom’s state energy producer, among its main customers. Saudi Arabia’s Industrialization & Energy Services Co. owns 51% of Arabian Drilling, and Services Petroliers Schlumberger the rest.
Wednesday, 29 June 2022
Wall Street Banks Pulls Back From Middle East SPACs on SEC Clampdown - Bloomberg
Wall Street Banks Pulls Back From Middle East SPACs on SEC Clampdown - Bloomberg
Wall Street banks are rethinking their involvement in the listings of special purpose acquisition companies in the Middle East’s nascent market as new liability guidelines from US regulators chill the once red-hot industry.
Middle East SPAC sponsors such as Gulf Capital and Investcorp were initially in talks with Citigroup Inc. and Bank of America Corp. respectively, but they are likely to rely on local banks to finalize the deal, according to people familiar with the matter. It’s unclear what role either US bank will play, if any.
Citigroup will be very cautious in accepting new SPAC mandates in the region although it won’t pull back completely and could step up work depending on how the final rules in the US look, the people added, who asked not to be identified discussing private matters. Bank of America has also paused work on SPACs more broadly while the US rules are being finalized.
Goldman Sachs Group Inc., which has pulled out of working with most SPACs it took public, is currently not chasing blank-check firms in the Middle East, people familiar with the matter said. JPMorgan Chase & Co. is being similarly cautious.
Wall Street banks are rethinking their involvement in the listings of special purpose acquisition companies in the Middle East’s nascent market as new liability guidelines from US regulators chill the once red-hot industry.
Middle East SPAC sponsors such as Gulf Capital and Investcorp were initially in talks with Citigroup Inc. and Bank of America Corp. respectively, but they are likely to rely on local banks to finalize the deal, according to people familiar with the matter. It’s unclear what role either US bank will play, if any.
Citigroup will be very cautious in accepting new SPAC mandates in the region although it won’t pull back completely and could step up work depending on how the final rules in the US look, the people added, who asked not to be identified discussing private matters. Bank of America has also paused work on SPACs more broadly while the US rules are being finalized.
Goldman Sachs Group Inc., which has pulled out of working with most SPACs it took public, is currently not chasing blank-check firms in the Middle East, people familiar with the matter said. JPMorgan Chase & Co. is being similarly cautious.
Oil slides 2% on rising U.S. fuel stocks and output | Reuters
Oil slides 2% on rising U.S. fuel stocks and output | Reuters
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.
Brent futures for August delivery fell $1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.
U.S. West Texas Intermediate crude for August fell $1.98, or 1.8%, to settle at $109.78.
The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.
Oil prices slid about 2% on Wednesday as a rise in U.S. gasoline and distillate inventories and worries about slower economic growth around the world offset ongoing concerns about tight crude supplies.
Brent futures for August delivery fell $1.72, or 1.5%, to settle at $116.26 a barrel. The August contract will expire on Thursday and the more-active September contract was down $1.35 to $112.45.
U.S. West Texas Intermediate crude for August fell $1.98, or 1.8%, to settle at $109.78.
The Energy Information Administration (EIA) said U.S. crude inventories fell last week even as production hit its highest level since April 2020 during the first wave of the coronavirus pandemic. Fuel stocks rose as refiners ramped up activity, operating at 95% of capacity, the highest for this time of year in four years.
Gulf bourses end mixed on recession worries | Reuters
Gulf bourses end mixed on recession worries | Reuters
Stock markets in the Gulf ended mixed on Wednesday on growing concerns over inflation and the possibility of recession, while the Egyptian bourse rebounded a day after hitting its lowest in two years.
In Abu Dhabi, equities (.FTFADGI) closed 0.4% lower, hit by a 1.6% fall in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).
However, conglomerate International Holding Co (IHC) (IHC.AD) settled 0.4% higher, after rising about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi advanced 2.1%, while Aldar eased 0.2%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
Dubai's main share index (.DFMGI) lost 0.2%, with Emirates Integrated Telecommunications (DU.DU) declining 2.1% and top lender Emirates NBD (ENBD.DU) retreating 1.5%.
The Dubai market remains exposed to new price corrections as global sentiment shifts while the slowdown could impact banks in the emirate, said Daniel Takieddine, CEO MENA BDSwiss.
The Qatari benchmark (.QSI) dropped 0.5%, weighed down by a 1.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
HSBC on Wednesday said it slashed price target for the lender to 22.2 riyals from 25.6 riyals earlier.
Saudi Arabia's benchmark index (.TASI) added 0.5%, led by a 2.9% jump in the country's biggest lender Saudi National Bank (1180.SE).
The Saudi stock market saw a positive performance thanks to the expectations around oil prices, said Takieddine.
"The market could benefit from higher oil prices as supplies remain an issue," he said.
Oil prices, a key catalyst for the Gulf's financial markets, gained for a fourth straight session with tight supply worries offsetting concerns about a weaker global economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.5%, a day after hitting its lowest in over two years.
Stock markets in the Gulf ended mixed on Wednesday on growing concerns over inflation and the possibility of recession, while the Egyptian bourse rebounded a day after hitting its lowest in two years.
In Abu Dhabi, equities (.FTFADGI) closed 0.4% lower, hit by a 1.6% fall in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).
However, conglomerate International Holding Co (IHC) (IHC.AD) settled 0.4% higher, after rising about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi advanced 2.1%, while Aldar eased 0.2%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
Dubai's main share index (.DFMGI) lost 0.2%, with Emirates Integrated Telecommunications (DU.DU) declining 2.1% and top lender Emirates NBD (ENBD.DU) retreating 1.5%.
The Dubai market remains exposed to new price corrections as global sentiment shifts while the slowdown could impact banks in the emirate, said Daniel Takieddine, CEO MENA BDSwiss.
The Qatari benchmark (.QSI) dropped 0.5%, weighed down by a 1.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
HSBC on Wednesday said it slashed price target for the lender to 22.2 riyals from 25.6 riyals earlier.
Saudi Arabia's benchmark index (.TASI) added 0.5%, led by a 2.9% jump in the country's biggest lender Saudi National Bank (1180.SE).
The Saudi stock market saw a positive performance thanks to the expectations around oil prices, said Takieddine.
"The market could benefit from higher oil prices as supplies remain an issue," he said.
Oil prices, a key catalyst for the Gulf's financial markets, gained for a fourth straight session with tight supply worries offsetting concerns about a weaker global economy.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 0.5%, a day after hitting its lowest in over two years.
Oil prices rise for fourth day on supply worries | Reuters
Oil prices rise for fourth day on supply worries | Reuters
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87%.
U.S. West Texas Intermediate (WTI) crude futures were up $1.20, or 1.1%, to $112.96 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were up 87 cents to $118.85 a barrel by 1132 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.79, up 99 cents, or 0.87%.
U.S. West Texas Intermediate (WTI) crude futures were up $1.20, or 1.1%, to $112.96 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
#Dubai is the most expensive city in the Gulf for expatriates in 2022 – Mercer survey
Dubai is the most expensive city in the Gulf for expatriates in 2022 – Mercer survey
Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.
The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.
The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).
Dubai is also a pricier destination for expats compared to popular global hubs like Paris, Munich, Chicago and Sydney.
Hong Kong landed in the first spot, followed by Zurich and Geneva in the second and third positions, respectively.
Dubai has been ranked among the world’s most expensive cities to live and work in for expatriates this year, according to the Cost of Living survey by Mercer.
The study, which looks at how the rising cost of living has impacted workers’ financial wellbeing in 227 cities worldwide, placed Dubai in the 31st position.
The emirate, which has been seeing a growing influx of millionaires and demand for property recently, emerged as the costliest city in the Gulf Cooperation Council (GCC) region, beating out the neighbouring cities of Riyadh, which landed in the 103rd position, Jeddah (111th place), Manama (117), Muscat (119), Kuwait City (131) and Doha (133).
Dubai is also a pricier destination for expats compared to popular global hubs like Paris, Munich, Chicago and Sydney.
Hong Kong landed in the first spot, followed by Zurich and Geneva in the second and third positions, respectively.
Franklin Templeton Explores Opening an Office in #SaudiArabia - Bloomberg
Franklin Templeton Explores Opening an Office in Saudi Arabia - Bloomberg
Franklin Templeton is looking to establish an office in Saudi Arabia to deepen its access to the Middle East’s largest economy, according to people familiar with the matter.
Chief Executive Officer Jenny Johnson has earmarked the kingdom as a major expansion market for the asset manager, the people said, asking not to be named because the information is private.
The California-based firm, which oversees some $1.5 trillion worth of assets, plans to start the regulatory licensing process that will enable it to build a presence in Riyadh, where it will have investment teams and some sales and support on the ground, the people said. The office will be staffed through a mix of new recruits and internal transfers, including from the company’s Dubai office.
A spokeswoman for Franklin Templeton described Saudi Arabia as “an important market” in the region. “While we have not announced any new office openings, we are currently exploring options to grow our regional footprint and will share details in due course,” she said.
Franklin Templeton is looking to establish an office in Saudi Arabia to deepen its access to the Middle East’s largest economy, according to people familiar with the matter.
Chief Executive Officer Jenny Johnson has earmarked the kingdom as a major expansion market for the asset manager, the people said, asking not to be named because the information is private.
The California-based firm, which oversees some $1.5 trillion worth of assets, plans to start the regulatory licensing process that will enable it to build a presence in Riyadh, where it will have investment teams and some sales and support on the ground, the people said. The office will be staffed through a mix of new recruits and internal transfers, including from the company’s Dubai office.
A spokeswoman for Franklin Templeton described Saudi Arabia as “an important market” in the region. “While we have not announced any new office openings, we are currently exploring options to grow our regional footprint and will share details in due course,” she said.
Mideast Stocks: Strategists Won’t Call Bottom for Gulf Equities as Risks Build - Bloomberg
Mideast Stocks: Strategists Won’t Call Bottom for Gulf Equities as Risks Build - Bloomberg
The selloff in Persian Gulf equities won’t come to an end just yet, according to strategists, who say the risk of lower oil prices and a probable US recession will keep gains at bay.
“There could be more pain for Gulf markets from current levels,” said Noaman Khalid, associate director of indices, macroeconomics and strategy at Arqaam Capital. A lack of positive catalysts would leave the region’s equities “exposed to global vulnerabilities,” he said in written comments.
The MSCI GCC Countries Combined Index has slumped 13% this quarter, marking its worst three-month performance since March 2020, and regional benchmarks including those in Saudi Arabia and the United Arab Emirates have given up most of their yearly gains. The gauge is set to snap a sequence of handing investors positive returns every quarter since the start of the pandemic.
Gulf countries were seen as a haven by investors over the past year as oil prices soared and interest rates climbed, benefiting benchmarks which generally have big weightings of banking and energy shares. Regional equities gave up most of their yearly gains in recent weeks as sentiment soured due to the prospect of a US recession and as crude prices started to pull back from recent peaks.
The selloff in Persian Gulf equities won’t come to an end just yet, according to strategists, who say the risk of lower oil prices and a probable US recession will keep gains at bay.
“There could be more pain for Gulf markets from current levels,” said Noaman Khalid, associate director of indices, macroeconomics and strategy at Arqaam Capital. A lack of positive catalysts would leave the region’s equities “exposed to global vulnerabilities,” he said in written comments.
The MSCI GCC Countries Combined Index has slumped 13% this quarter, marking its worst three-month performance since March 2020, and regional benchmarks including those in Saudi Arabia and the United Arab Emirates have given up most of their yearly gains. The gauge is set to snap a sequence of handing investors positive returns every quarter since the start of the pandemic.
Gulf countries were seen as a haven by investors over the past year as oil prices soared and interest rates climbed, benefiting benchmarks which generally have big weightings of banking and energy shares. Regional equities gave up most of their yearly gains in recent weeks as sentiment soured due to the prospect of a US recession and as crude prices started to pull back from recent peaks.
Most major Gulf bourses fall on lower oil prices, IHC boosts #AbuDhabi | Reuters
Most major Gulf bourses fall on lower oil prices, IHC boosts Abu Dhabi | Reuters
Most stock markets in the Gulf slipped on Wednesday, tracking oil prices and on concerns over inflation and the possibility of recession, although conglomerate International Holding Co helped Abu Dhabi buck the trend and trade higher.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, hit by a 1.7% fall in Retal Urban Development Company (4322.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell after rising in the previous three sessions as the market tussled between concerns about the global economy and tight global oil supplies.
Dubai's main share index (.DFMGI) eased 0.1%, with top lender Emirates NBD Bank (ENBD.DU) losing 1.1% and blue-chip developer Emaar Properties (EMAR.DU) falling 0.4%.
The S&P 500 index (.SPX) retreated more than 2% overnight after data showed U.S. consumer confidence dropped to a 16-month low in June due to fears high inflation could cause the economy to slow significantly in the second half of the year. read more
In Abu Dhabi, equities (.FTFADGI) advanced 1.4%, with conglomerate International Holding Co (IHC) (IHC.AD) jumping about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi gained 1.4% and Aldar added 0.7%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
The Qatari index (.QSI) lost 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) declining 1.3% after HCBC slashed its price target to 22.2 riyals from 25.6 riyals earlier.
Most stock markets in the Gulf slipped on Wednesday, tracking oil prices and on concerns over inflation and the possibility of recession, although conglomerate International Holding Co helped Abu Dhabi buck the trend and trade higher.
Saudi Arabia's benchmark index (.TASI) dropped 0.4%, hit by a 1.7% fall in Retal Urban Development Company (4322.SE) and a 0.8% decrease in oil behemoth Saudi Aramco (2222.SE).
Oil prices, a key catalyst for the Gulf's financial markets, fell after rising in the previous three sessions as the market tussled between concerns about the global economy and tight global oil supplies.
Dubai's main share index (.DFMGI) eased 0.1%, with top lender Emirates NBD Bank (ENBD.DU) losing 1.1% and blue-chip developer Emaar Properties (EMAR.DU) falling 0.4%.
The S&P 500 index (.SPX) retreated more than 2% overnight after data showed U.S. consumer confidence dropped to a 16-month low in June due to fears high inflation could cause the economy to slow significantly in the second half of the year. read more
In Abu Dhabi, equities (.FTFADGI) advanced 1.4%, with conglomerate International Holding Co (IHC) (IHC.AD) jumping about 6% at 305 dirhams ($83.05), fetching a valuation of over $150 billion.
On Tuesday, IHC's unit Alpha Dhabi Holding (ALPHADHABI.AD) announced that it increased stake in Aldar Properties (ALDAR.AD) and became the single-largest shareholder.
Shares of Alpha Dhabi gained 1.4% and Aldar added 0.7%.
IHC, whose assets include firms in the fast-growing healthcare and industrial sectors, is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates' national security adviser and a brother of the country's president Sheikh Mohammed bin Zayed.
The Qatari index (.QSI) lost 0.4%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) declining 1.3% after HCBC slashed its price target to 22.2 riyals from 25.6 riyals earlier.
Oil prices rise for fourth day on supply worries | Reuters
Oil prices rise for fourth day on supply worries | Reuters
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were little changed at $117.9 a barrel by 0917 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.06, up 23 cents, or 0.2%.
U.S. West Texas Intermediate (WTI) crude futures were up 44 cents, or 0.4%, to $112.20 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
"The market is stuck in the push-pull between the current deteriorating macro backdrop and the looming threat of a recession, pitted against the strongest fundamental oil market set-up in decades, maybe ever," RBC Capital's Mike Tran said in a note.
Oil prices gained for a fourth straight session on Wednesday with tight supply worries offsetting concerns about a weaker global economy.
Brent crude futures for August were little changed at $117.9 a barrel by 0917 GMT. The August contract will expire on Thursday and the more-active September contract was at $114.06, up 23 cents, or 0.2%.
U.S. West Texas Intermediate (WTI) crude futures were up 44 cents, or 0.4%, to $112.20 a barrel.
Both contracts rose more than 2% on Tuesday as concerns over tight supplies due to Western sanctions on Russia outweighed fears of that demand may slow in a potential future recession.
"The market is stuck in the push-pull between the current deteriorating macro backdrop and the looming threat of a recession, pitted against the strongest fundamental oil market set-up in decades, maybe ever," RBC Capital's Mike Tran said in a note.