SoftBank’s Rajeev Misra to launch $6bn fund backed by #AbuDhabi groups | Financial Times

SoftBank’s Rajeev Misra to launch $6bn fund backed by Abu Dhabi groups | Financial Times

Rajeev Misra, the trader who helped transform SoftBank into the world’s biggest and most controversial technology investor, is stepping back from the Japanese group to launch a new $6bn fund backed by Abu Dhabi. 

Misra, who structured and ran the record-breaking $100bn Vision Fund, said he would remain involved with SoftBank but that his new venture would pursue investment strategies beyond start-ups. 

The shake-up marks the latest sign of unrest inside SoftBank, which has been roiled by plunging valuations for technology companies as well as an exodus of senior leadership over the past several months. 

The new fund would be backed by Abu Dhabi state funds Mubadala and ADQ, as well as Royal Group, the conglomerate chaired by Sheikh Tahnoon bin Zayed al Nahyan, the United Arab Emirates’ national security adviser, said Misra.

#Dubai Home Sales Surge Even as Prices for Larger Houses Moderate - Bloomberg

Dubai Home Sales Surge Even as Prices for Larger Houses Moderate - Bloomberg

Dubai home sales jumped 42% in June, consulting firm ValuStrat said, though price growth slowed for larger single-family houses.

Prices for villas grew at a monthly rate of 1.7% in June, down from an average of 2.3% per month last year. Still, on an annual basis, prices are 32.2% higher, the consulting firm said in a report on Thursday.

Villas comprise less than 20% of the city’s housing supply and proved popular after the pandemic as people sought out more space. Meanwhile, prices for apartments, which make up the vast majority of housing supply in Dubai, grew at less than 1% in June, according to ValuStrat.

Dubai’s property market is recovering from a seven-year slump, helped by factors including an increase in Russian buyers looking to safeguard their wealth. The city’s nimble handling of the pandemic also helped shore up the market, a key sector for the Middle East’s business hub.

Americana IPO: Middle East KFC Operator Holds Pre-IPO Investor Meetings - Bloomberg

Americana IPO: Middle East KFC Operator Holds Pre-IPO Investor Meetings - Bloomberg

The operator of KFC and Pizza Hut restaurants across the Middle East and North Africa is courting select top investors ahead of a potential listing later this year, according to people familiar with the matter.

Americana is planning group and one-on-one investor meetings for a dual listing that could value the firm at as much as $8 billion, the people said, asking to not be identified because the matter is private. Investors from around the world will participate in the calls, they said.

Americana, backed by Saudi Arabia’s Public Investment Fund and an investment vehicle led by Dubai-based businessman Mohamed Alabbar, is preparing for a listing in Riyadh and Abu Dhabi that could raise $1 billion, Bloomberg News has reported.

Representatives for Americana declined to comment.

If the listing goes ahead, Americana will join a growing pipeline of new share sales in the Middle East. The Gulf has just wrapped its best first half for IPOs on record, but a sharp selloff in regional stock markets is starting to hit demand.

Empower Picks Citi, Emirates NBD, JPMorgan for #Dubai IPO - Bloomberg

Empower Picks Citi, Emirates NBD, JPMorgan for Dubai IPO - Bloomberg

Emirates Central Cooling Systems Corp. is set to pick Citigroup Inc., Emirates NBD Bank PJSC and JPMorgan Chase & Co. as joint global coordinators to work on an initial public offering planned for later this year, according to people familiar with the matter.

Known as Empower, the company has been working with Emirates NBD and Moelis & Co., its financial advisers, to prepare a possible listing on the domestic stock exchange, the people said, asking not be named because the information is private.

Empower is one of 10 proposed privatizations in Dubai as part of the city’s plans to bolster its capital markets and catch up with regional rivals Abu Dhabi and Riyadh, which have both seen a flurry of listings in recent years. A spokesperson at Empower did not respond to requests for comment. Citi, Emirates NBD and JPMorgan declined to comment, while Moelis didn’t immediately respond.

The listing will test whether Middle Eastern investor appetite, a rare bright spot in an otherwise gloomy year for share sales, is holding firm. The city’s first disposal in April was a success, with Dubai Electricity & Water Authority valued at $6.1 billion in an IPO that was 37 times oversubscribed.

Oil settles up nearly $4 as tight supply outweighs recession fears | Reuters

Oil settles up nearly $4 as tight supply outweighs recession fears | Reuters

Oil prices settled sharply higher on Thursday, rebounding from steep losses the previous two sessions, as investors returned their focus to tight supply despite nagging fears of a potential global recession.

Brent crude futures were up $3.96, or 3.9%, at $104.65 a barrel. U.S. WTI crude futures climbed $4.20, or 4.3%, to $102.73 a barrel.

Trade was volatile. At session lows, prices were down about $2.

Wall Street's main indexes opened higher, making up for some losses last week tied to recession fears as central banks aggressively hike interest rates to fight inflation. read more

"With Russian oil supplies set to drop as the year progresses and it runs out of Western parts to maintain fields, and with the rest of OPEC hopelessly uninvested in maintaining production capacity, I fear the days of $100 oil will be with us for some time yet," said Jeffrey Halley, a senior market analyst at OANDA.

#Dubai's inflation up 5% in May 2022

Dubai's inflation up 5% in May 2022

Dubai's inflation rose by 4.71% year-on-year (YoY) in May, compared to 2.8% in the same month of 2021.

Dubai's Consumer Price Index (CPI) reached 104.08 points in May, up from 101 points in the same month in 2021, according to the latest statistics by the Dubai Statistics Centre.

In May, the prices of transport, recreation, sport, and culture, as well as food and beverages increased by 27.22%, 22.62%, and 8.50%, respectively.

In the meantime, the prices of restaurants and accommodation services, clothing and footwear, as well as personal care, social protection, and miscellaneous goods and services rose by 5.07%, 1.49%, and 2.46%, respectively.

Most Gulf bourses in black as investors absorb Fed minutes | Reuters

Most Gulf bourses in black as investors absorb Fed minutes | Reuters

Most bourses in the Gulf rebounded on Thursday, enjoying a respite from their recent sell-off, as investors digest the U.S. Federal Reserve's firm hawkish stance on taming inflationary pressures.

The Fed's June meeting minutes showed officials rallied around an outsized rate hike, justifying the 0.75-percentage-point increase as near-term inflation outlook had deteriorated since their meeting in May. read more

Dubai's benchmark index (.DFMGI) advanced 1.5%, buoyed by a 5.1% jump in blue-chip developer Emaar Properties (EMAR.DU) and a 1.5% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Dubai bourse rebounded after a series of price corrections as traders reacted to a global sentiment shift after Wednesday's Federal Reserve minutes, said Farah Mourad, senior market analyst of XTB MENA.

"The market could see further price increases over the short term before returning to the downside."

Dubai road-toll operator Salik has appointed Ibrahim Al Haddad as chief executive officer, it said on Wednesday, in a move that showed the company was moving closer to its planned flotation.

Dubai's deputy ruler, Sheikh Maktoum Bin Mohammed, announced plans in November to turn Salik, then a division of the Roads and Transport Authority (RTA), into a public company. Listing it and nine other government-linked entities was intended to boost stock market activity.

The Qatari benchmark (.QSI) added 0.2%, helped by a 2.3% rise in Commercial Bank (COMB.QA).

On the other hand, Qatar National Bank (QNB) (QNBK.QA), the Gulf's largest lender by assets, fell 1.5%, despite reporting a 12.3% increase in second-quarter profit. read more

In Abu Dhabi, the equities (.FTFADGI) fell 0.3%, hit by a 1.4% fall in the United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD).

Egypt's blue-chip index (.EGX30) gained 1%, led by a 2.3% gain in top lender Commercial International Bank (COMI.CA).

The index is down more than 25% so far this year, having tumbled 3.6% to 8,642 on Monday, its lowest since November 2016.

Egypt has come under financial pressure because of a sharp slide in foreign portfolio investor holdings and rising costs for key commodity imports, especially since Russia's invasion of Ukraine. Headline inflation accelerated to 13.5% in May.

** Saudi Arabia was closed for a public holiday.

#Qatar National Bank's net profit rises 12.3% in second quarter | Reuters

Qatar National Bank's net profit rises 12.3% in second quarter | Reuters

Qatar National Bank (QNB) (QNBK.QA), the Gulf's largest lender by assets, said on Thursday that its second-quarter profit rose 12.3% on an annual basis as a result of higher income from interest as well as from fees.

QNB reported net profit of 3.89 billion Qatari riyals ($1.1 billion) in the three months to June 30, up from 3.464 billion riyals in the second quarter of 2021, beating a median analyst estimate of 3.546 billion riyals, Refinitiv data showed.

Net interest income in the second quarter rose 23.5% to 7.004 billion riyals from 5.672 billion riyals a year earlier, QNB said in a statement, while net fees and commission income rose 12.6% to 907.7 million riyals.

For the half-year, QNB posted 7 billion riyals in net profit, it said, up 4% from the same period a year earlier. QNB said "before the impact of hyperinflation" net profit for the period was 7.9 billion riyals.

Brent holds above $100 in tussle between supply, recession fears | Reuters

Brent holds above $100 in tussle between supply, recession fears | Reuters

Oil prices rose on Thursday after steep losses in the previous two sessions, as investors returned their focus to tight supply even as fears of a global recession persisted.

Brent crude futures rose 61 cents, or 0.6%, to $101.30 a barrel by 1121 GMT. WTI crude futures climbed 65 cents, or 0.7%, to $99.18 a barrel.

Trade was volatile, with prices at one stage showing losses of about $2 but then gaining nearly $1.

"With Russian oil supplies set to drop as the year progresses and it runs out of Western parts to maintain fields, and with the rest of OPEC hopelessly uninvested in maintaining production capacity, I fear the days of $100 oil will be with us for some time yet," said Jeffrey Halley, a senior market analyst at OANDA.

#Oman to Use Windfall From High Oil Prices to Prepay $1.33 Billion Loans in July - Bloomberg

Oman to Use Windfall From High Oil Prices to Prepay $1.33 Billion Loans in July - Bloomberg

Oman plans to prepay $1.33 billion in loans this month as the Gulf nation uses the windfall from higher oil prices to reduce its public debt.

The sultanate is using prepayments, bond buybacks and local debt sales to cut the cost of funding, state-run Oman News Agency reported. The government expects to save 127 million rials ($330 million) from these moves and aims to invest it in development projects.

Oil’s surge on the back of Russia’s invasion of Ukraine has pushed crude above the break-even level for almost all the Middle East’s producers. Oman recorded a budget surplus of 631 million rials in the first five months of the year.

Oman, which needs oil at about $61 a barrel to balance its books, has implemented a series of reforms to bridge the budget gap and lower its debt, including the introduction of a 5% value-added tax last year.

Making #Saudi Inc: How MBS drove the sovereign wealth fund's oil-fueled takeover - Bloomberg

Making Saudi Inc: How MBS drove the sovereign wealth fund's oil-fueled takeover - Bloomberg

A few years from now, an American executive flying into Saudi Arabia could disembark from an airline founded by its sovereign wealth fund and order an Uber, a company in which the same fund owns a 4% stake. Whisked across the capital, the executive might check into a boutique hotel in a former palace, also owned by the Public Investment Fund.

Attending the PIF’s annual conference, they could sip coffee farmed through a venture led by the fund, then sign a deal with a PIF-owned defense firm. That evening, the executive might catch dinner and a movie at a complex developed by its entertainment arm, flying home without touching a single business not linked to the PIF.

As Crown Prince Mohammed bin Salman races to diversify Saudi Arabia’s oil-dependent economy, the $620 billion PIF — which he chairs — is taking center stage, supplanting a pedigreed business class to become one of the most powerful institutions in a fast-changing economy.

Receding is the conservative Islamic kingdom of old, which lived off its oil revenues while cautiously investing in safe US treasuries and disbursing lucrative state contracts. This is Saudi Inc. And its self-styled Founder is ripping up the rule book.

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #Qatar mid-session #SaudiArabia closed

European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #Israel #Qatar mid-session #SaudiArabia closed

Brent holds above $100 in tussle between supply, recession fears | Reuters

Brent holds above $100 in tussle between supply, recession fears | Reuters

Oil prices were steady on Thursday after steep losses in the previous two sessions, as investors returned their focus to tight supply even as fears of a global recession persisted.

Brent crude futures rose 14 cents, or 0.1%, to $100.83 a barrel by 0900 GMT. WTI crude futures climbed 21 cents, or 0.2%, to $98.74 a barrel.

Prices swung between about $2 in losses and gains of nearly $1 in volatile trade.

"Recession fears continue to grow and that obviously does raise some concerns for the demand outlook," said Warren Patterson, ING's head of commodity research.

"However, supportive fundamentals should mean that further downside is relatively limited."