#Saudi GDP tops $1tn for first time as unemployment hits record low

Saudi GDP tops $1tn for first time as unemployment hits record low

Saudi Arabia's gross domestic product exceeded $1 trillion for the first time in 2022 as its economy grew by 8.7 per cent, while the unemployment rate among citizens also fell sharply, according to data estimates released by the General Authority for Statistics (Gastat).

The kingdom's GDP at constant prices reached 4.2 trillion Saudi riyals ($1.12 trillion) last year, buoyed by non-oil sector growth.

The non-oil sector contributed about 2.3 trillion riyals to the kingdom’s GDP, accounting for 61 per cent of the total, while the hydrocarbon sector added 1.61 trillion riyals, or 39 per cent, Al Rajhi Capital said in a report.

Meanwhile, the unemployment rate among Saudi citizens fell to 8 per cent in the fourth quarter of 2022, from 9.9 per cent in the third quarter, according to government data.

CBUAE decides to cancel #AbuDhabi licence of Russia's MTS bank

CBUAE decides to cancel Abu Dhabi licence of Russia's MTS bank

The Central Bank of the UAE (CBUAE) on Thursday revoked the license of Russia's MTS bank branch in Abu Dhabi.

The apex bank said in a statement that it will wind down MTS bank's Abu Dhabi operations within six months from date from the date of the decision.

MTS Bank, secured a licence in 2022 to operate in the UAE.

This decision comes after considering the available options regarding the new status of the MTS bank, and taking into account the sanctions risks associated with the bank after the designation, the CBUAE statement said.

During the winding down, the branch will be prohibited from opening new accounts and conducting transactions, except for clearing prior obligations. "The bank’s use of Central Bank’s payment systems will be restricted to this purpose only," the statement noted.

The US and Britain added several Russian banks including MTS to their sanctions list in February, while the European Union cut off more banks from the SWIFT global payments system.

Mideast Stocks: #UAE shares stumble as caution reigns ahead of U.S. inflation data

Mideast Stocks: UAE shares stumble as caution reigns ahead of U.S. inflation data

Stock markets in the United Arab Emirates fell on Friday as investors awaited key U.S. inflation data due later in the day for clues on future interest rate moves by the U.S. Federal Reserve. A record monthly drop in the euro zone's inflation rate has raised investors' expectations for similar U.S. data later in the day. The euro zone inflation numbers showed consumer prices rising 6.9% in March after an 8.5% increase in February.

Most Gulf Cooperation Council countries (GCC), including the United Arab Emirates, have their currencies pegged to the dollar and generally follow the Fed's policy moves, exposing the country to a direct impact from any Fed monetary tightening.

In Dubai, the main share index fell 0.6%, ending a three day rally, with real estate and financial stocks leading the losses. The index logged quarterly gains of 2.1%, but was down 0.9% on monthly basis. The blue-chip developer Emaar Properties dropped 2.1% and Dubai Islamic Bank and Dubai Investments slid 2.4% and 2.1% respectively. Amanat Holding also gained more than 1% after it announced the launch of its new healthcare platform Amanat Healthcare and plans to explore a regional IPO of the new entity in the near term.

Abu Dhabi's index also lost 0.5%, dragged down by a 1.8% slide in First Abu Dhabi Bank, the United Arab Emirates' biggest lender, and a 0.9% decline in Alpha Dhabi Holding. The index headed for its biggest quarterly loss since the first quarter of 2020, of 7.7%.

Owner of Expat Go-to Websites Dubizzle, Bayut Considers #UAE IPO - Bloomberg

Owner of Expat Go-to Websites Dubizzle, Bayut Considers UAE IPO - Bloomberg

Emerging Markets Property Group, which operates classifieds websites popular with expatriates in the United Arab Emirates, is considering an initial public offering, according to people familiar with the matter.

The company, which runs the Dubizzle and Bayut websites and is backed by tech investor Prosus NV, is set to hire Rothschild & Co. for the potential listing in Dubai or Abu Dhabi, the people said, asking not to be identified as the information isn’t public.

Details of the offering such as the size and timing are still preliminary and may change, the people said. Other banks may still be invited to pitch to work on the deal.

Representatives for EMPG weren’t immediately available for comment and Rothschild declined to comment.

Mideast Stocks: Most major Gulf bourses poised for weekly gain on firmer oil

Mideast Stocks: Most major Gulf bourses poised for weekly gain on firmer oil

Most major Gulf stock markets closed higher on Thursday, in line with global peers and firmer oil prices, amid improving investor sentiment underpinned by hopes the banking sector crisis is over.

Oil prices, a key catalyst for gulf's financial markets, rose on Thursday as a surprise drop in U.S. crude stockpiles and a halt in exports from Iraq's Kurdistan region offset a smaller-than-expected cut to Russian supplies. Brent crude futures were up 49 cents, or 0.63%, to $78.77 a barrel at 1145 GMT. Separately, in an effort to move to next generation leadership, UAE President Sheikh Mohammed bin Zayed Al Nahyan has appointed his eldest son Sheikh Khaled as crown prince of Abu Dhabi and named his brothers to top roles, state media said on Wednesday.

Saudi Arabia's benchmark stock index rose 0.8%, led by financials and healthcare stocks, with Al Rajhi Bank , Saudi Arabia's second-largest lender by assets, and the Kingdom's largest lender by assets Saudi National Bank gaining 1.7% and 2.2%, respectively, while Dr Sulaiman Al-Habib Medical Services was up 2.4%. The index logged a weekly gain of 1.4%, which led to a solid monthly gain of 4.8%.

Dubai's main share index advanced 0.7%, gaining for a third consecutive session, boosted by solid gains in real estate and utilities stocks. The blue-chip developer Emaar Properties jumped 2.3%, and Emirates Central Cooling Systems Corporation ended 1.2% higher.

In Abu Dhabi, the benchmark index added 0.2%, after closing flat on Wednesday, supported by a 0.8% gain in First Abu Dhabi Bank, the UAE's largest lender, and a 4.3% hike in Alpha Dhabi Holding. ADNOC Gas was up 1% after reporting a 32% increase in its 2022 core earnings on a pro forma basis. The benchmark stock index in Qatar closed almost flat, as financial and telecoms stocks moved sideways, with sharia-compliant lender Masraf Al Rayan increasing nearly 3%, while telecoms operator Ooredoo fell 2.9%. The benchmark registered a weekly gain of 2.1% but fell 3.4% on monthly basis.

Qatari stock market could see fewer gains as natural gas prices remain under pressure, said Daniel Takieddine, CEO MENA at BDSwiss.

Elsewhere, Qatar's state-owned energy firm QatarEnergy on Wednesday signed a deal to acquire stakes in two Canadian offshore explorations block from ExxonMobil.

Outside the Gulf, Egypt's blue-chip index, closed flat, with Commercial International Bank (CIB), Egypt's biggest private bank, climbing 2.2%, while electronic payments provider Fawry declining 2.6%. The Index recorded an impressive weekly rise of 5.1% but fell 3.4% on monthly basis.

Mubadala Eyes Bridgepoint’s $2.5 Billion Dialysis Firm Diaverum - Bloomberg

Mubadala Eyes Bridgepoint’s $2.5 Billion Dialysis Firm Diaverum - Bloomberg

Mubadala Investment Co. is exploring an acquisition of Bridgepoint Group Plc’s European dialysis clinic chain Diaverum, in a deal that could value the business at about $2.5 billion, according to people familiar with the matter.

The Abu Dhabi sovereign wealth fund is among final bidders competing to acquire Sweden-based Diaverum, the people said, asking not to be identified as the matter is private.

Bridgepoint is making a fresh attempt to find a buyer for the business after an earlier process to list or sell it failed in 2020, the people said. Other bidders could also emerge, and there’s no certainty the deliberations will lead to a transaction, the people said.

A representative for Mubadala declined to comment. A spokesman for Bridgepoint confirmed it’s working with Citigroup Inc. to study strategic options for Diaverum and declined to comment further.

Mubadala, with $284 billion of assets under management, has been stepping up its investments in health care as it seeks to diversify its portfolio. The fund teamed up with buyout firm EQT AB to acquire Swedish medical freight company Envirotainer AB for an enterprise value of about €2.8 billion ($3 billion) last year.

The wealth fund is also among parties looking to back CBC Group as it sets up a new fund targeting health care assets in the Middle East, Bloomberg News has reported.

Diaverum, headquartered in southern Swedish coastal city of Malmo, is one of Europe’s largest independent dialysis clinic operators with more than 400 locations in 23 countries, according to its website. The company also has a significant presence in the Middle East.

Bridgepoint acquired Diaverum from Gambro Holding AB in 2007.

Mideast Stocks: Gulf markets gain on steady oil, receding bank fears

Mideast Stocks: Gulf markets gain on steady oil, receding bank fears

Gulf stock markets opened slightly up on Thursday, tracking Asian peers and oil prices higher, helped by improving investor sentiment as concerns over a recent banking sector crisis eased.

Oil prices — a key catalyst for the gulf's financial markets — was nearly steady, as a surprise drop in U.S. crude stockpiles offset a smaller-than-expected cut to Russian supplies, while investors closely watched developments on Iraqi Kurdistan oil exports.

Brent crude futures fell 5 cents, or 0.1%, to $78.23 a barrel at 0630 GMT.

Saudi Arabia's benchmark stock index rose 0.7%, with luxury real estate developer Retal Urban Development Company adding 0.7% and Al Rajhi Bank, Saudi Arabia's second-largest lender by assets, edging up 0.8%.

Al Rajhi Bank is set to raise $1 billion with five-year sustainable Islamic bonds, a document from one of the banks arranging the deal showed on Wednesday.

Al Kathiri Holding Company surged nearly 10%, after it completed 100 million riyals ($26.64 million) worth of domestic sukuk offering.

Dubai's main share index advanced 0.4%, gaining for a third consecutive session, led by real estate and utilities stocks. The blue-chip developer Emaar Properties climbed 1.4%, and Emirates Central Cooling Systems Corporation inched up 0.5%.

In Abu Dhabi, the benchmark index also added 0.4%, after closing flat on Wednesday.

First Abu Dhabi Bank, the UAE's largest lender, climbed 2.6% on Thursday, its biggest gain in more than 2 months, while medical manpower staffing firm Response Plus Holding inching up 1.4% after it announced an annual dividend of 0.07 dirham a share.

The benchmark stock index in Qatar was also up 0.4%, boosted by financials, with Sharia-compliant lender Masraf Al Rayan jumping more than 3% and chemical maker Industries Qatar rising 0.7%.

Gupta Extradition: South Africa Urges #UAE to Provide Update on Request - Bloomberg

Gupta Extradition: South Africa Urges UAE to Provide Update on Request - Bloomberg

South Africa’s government expressed concern that the United Arab Emirates has yet to provide an update on a request to extradite Atul and Rajesh Gupta, who are wanted on charges of money laundering and fraud.

While the South African authorities have sought to ensure that the application for the return of the two men to South Africa meets UAE requirements, there has been no update, Justice and Correctional Services Minister Ronald Lamola said in a statement on Thursday. South Africa’s Central Authority has made various inquiries with the UAE, he said.

“The latest request is an urgent meeting between the two central authorities and the minister of justice and correctional services and his counterpart in the UAE,” Lamola said. “The ministry is pursuing this matter via the diplomatic channels pursuant to the extradition treaty between the two countries.”

A South African judicial inquiry into state graft detailed close links between the Guptas and former President Jacob Zuma, with numerous witnesses alleging they worked hand-in-hand to siphon money out of state transport, power and arms companies and jointly decided who was appointed to the cabinet. The Gupta brothers and Zuma have always denied the allegations.

#AbuDhabi's ADNOC Gas posts 2022 net profit of $4.9bln on higher prices

Abu Dhabi's ADNOC Gas posts 2022 net profit of $4.9bln on higher prices

ADNOC Gas, a subsidiary of the state energy company Abu Dhabi National Oil Company, said it made a pro forma net profit of $4.9 billion for the full year 2022 supported by higher sales and prices.

The company, which raised $2.5 billion in a record IPO last year and listed on the Abu Dhabi Securities Exchange, said it will focus on upstream capacity expansion and product mix optimization.

Pro forma adjusted revenue for 2022 was approximately $24.7 billion, a 27% increase versus $19.5 billion for FY 2021, the company said in a regulatory filing. For 2021, the company had an adjusted net profit of $3.6 billion.

Ahmed Alebri, Chief Executive Officer of ADNOC Gas, said: “Looking ahead, we remain focused on executing the growth strategy communicated during our IPO, underpinned by anticipated upstream capacity expansion and product mix optimization." He added the company is well positioned to benefit from the long-term demand for global gas whilst playing a critical role in the energy transition.

The company reiterated its expectation to pay an annualized dividend of $3.25 billion for FY 2023, and grow annual dividend per share by 5% over the period 2024-2027

Ten Years In Jail! New #Kuwait Judgement - BREAKING NEWS! | @Sarawak_Report

Ten Years In Jail! New Kuwait Judgement - BREAKING NEWS! | Sarawak Report

In what’s being described as a landmark ruling in Kuwait, the courts have in the past hours handed down a crushing guilty verdict against the once all-powerful son of a former prime minister, Sheikh Sabah Jaber Al-Mubarak Al-Hamad Al-Sabah.

The royal businessman has been sentenced to ten years in jail for having cooperated with Jho Taek Low, proxy to the convicted ex-Malaysian PM, Najib Razak, in laundering hundreds of millions of ringgit looted from the Malaysian public.

At stake, at the very least, is a stunning RM2 billion/(KD 145 million) cited by the courts as remaining in the guilty man’s bank bank account, although the judgement also confirms that over a billion dollars were in fact laundered through it. Moreover, Sarawak Report has reported on several other related accounts holding further stolen cash that were not apparently included within the prosecution.

Also convicted were Jho Low himself, the Sheikh’s personal lawyer, a college friend of Jho Low’s and continuing business partner, Hamad Al Wazan* and a former business associate of the Sheikh, Bachar Kiwan, who fled Kuwait at the time of the crime, having fallen foul of the criminal gang.

All were sentenced to the same ten year jail term – this being the first actual sentencing in absentia of Malaysia’s world famous financial fraudster, Jho Low, in a foreign court.

#SaudiArabia’s First Mills Seeks $1 Billion Value in IPO - Bloomberg

Saudi Arabia’s First Mills Seeks $1 Billion Value in IPO - Bloomberg

Saudi Arabia’s First Mills Co. is planning an initial public offering on the local stock exchange that could value the company at as much as $1 billion, according to people familiar with the matter.

The firm has appointed SNB Capital, the investment banking arm of the kingdom’s largest lender, as financial adviser on the deal, the people said, asking not to be identified as the information is private.

Saudi Arabia’s Capital Market Authority has approved the sale of a 30% stake in the company, the regulator said on Wednesday, confirming an earlier report from Bloomberg News.

Founded in 2017 during the first phase of a privatization of the country’s flour milling industry, First Mills was acquired by a group of investors including Saudi Arabia’s Almutlaq Group, AlSafi Holding Co., Abunayyan Trading Co. and the United Arab Emirates’ Essa Al-Ghurair Investment. It produces about 850,000 tonnes a year of flour, according to its website.

A representative for First Mills didn’t immediately respond to a request for comment, while a representative for SNB Capital declined to comment.

Saudi Arabia split the government-controlled flour milling industry into four companies and sold them off to the private sector. At least one of the other milling companies is also considering an IPO, the people said.

#SaudiArabia Tech Firm Rasan That Runs Tameeni Taps Banks for IPO - Bloomberg

Saudi Arabia Tech Firm Rasan That Runs Tameeni Taps Banks for IPO - Bloomberg

Rasan, a technology company that operates online insurance platform Tameeni, is working with Morgan Stanley and Saudi Fransi Capital for an initial public offering in Riyadh, according to people familiar with the matter.

The Saudi Arabian firm is preparing to list on the local bourse potentially as soon as this year, the people said, asking not to be identified as the information isn’t public.

Details of the offering such as size and timing are still preliminary and subject to change, they said. Representatives for Rasan and Morgan Stanley didn’t respond to requests for comment, while a Saudi Fransi spokesperson declined to comment.

#SaudiArabia's Al Rajhi Bank to raise $1 bln with sukuk | Reuters

Saudi Arabia's Al Rajhi Bank to raise $1 bln with sukuk | Reuters

Saudi Arabia's Al Rajhi Bank (1120.SE) is set to raise $1 billion with five-year sustainable Islamic bonds, a document from one of the banks arranging the deal showed on Wednesday.

The spread on the sukuk was set at 110 basis points (bps) over U.S. Treasuries (UST), tightened from initial price guidance of around 150 bps over UST after demand topped $3.75 billion, the document showed.

Al Rajhi Capital, Citi, Emirates NBD Capital, Goldman Sachs, HSBC, JPMorgan, KFH Capital and Standard Chartered are joint lead managers and bookrunners for the debt sale.

Mideast Stocks: Gulf stocks end mixed as investors remain cautious

Mideast Stocks: Gulf stocks end mixed as investors remain cautious

Gulf stock markets ended mixed on Wednesday in a sign investor confidence remains fragile, as they chose to secure their gains amid volatile market conditions despite oil being firmer and banking stability fears receding. Oil prices — a key catalyst for gulf's financial markets — rose for a third consecutive session on Wednesday, with Brent crude rising 63 cents, or 0.8%, to $79.28 a barrel at 1120 GMT.

Saudi Arabia's benchmark stock index gained 0.3%, after trading flat in its two previous sessions, with Dr Sulaiman Al-Habib Medical Services rising 3.6% and Saudi British Bank adding 1.9%. The grocery retailer Bindawood Holding closed 2.4% higher, after it reported a surge in its fourth-quarter net profit to 64.9 million riyals ($17.28 million), compared with a net profit of 13.2 million riyals ($3.52 million) a year earlier.

Dubai's main share index was up 0.5%, in its second positive day in a row, boosted by solid gains in financial and industrial stocks. Emirates NBD Bank, Dubai's largest lender, and Emirates Central Cooling Systems Corporation inched up 2.3 and 2.4%, respectively.

In Abu Dhabi, the benchmark index closed in red, pressured by a 0.4% slide in First Abu Dhabi Bank, the United Arab Emirates' biggest lender, and a 2.8% dive in Emirates Telecommunications Group. Reuters on Tuesday reported through sources that Uber Technologies' Middle East subsidiary Careem is in advanced talks with Emirates Telecommunications Group to invest in its expansion into services beyond ride-hailing.

The benchmark stock index in Qatar retreated 0.9%, mostly dragged down by financial and industrial stocks. Qatar National Bank (QNB), the Gulf's largest lender and Qatar Islamic Bank dropped 1.3% and 3.5%, respectively, while petrochemical makers Industries Qatar was also down 1.3%.

Outside the Gulf, Egypt's blue-chip index, climbed 2.5%, after a two consecutive session decline, as 28 of the 31 constituent stocks moved in positive territory. Commercial International Bank (CIB), Egypt's biggest private bank, climbed 1.8% while country's lone cigarette maker Eastern Company was up 6.1%.

The Egyptian stock market recorded a strong volume surge led by a buying trend from local investors, said Farah Mourad, Senior Market Analyst of XTB MENA.

KIA Kuwaiti Wealth Fund to Sell About 20 Million Mercedes Shares - Bloomberg

KIA Kuwaiti Wealth Fund to Sell About 20 Million Mercedes Shares - Bloomberg

The Kuwait Investment Authority sold shares worth about €1.4 billion in Mercedes-Benz Group AG — roughly a quarter of its stake — after the carmaker’s stock almost quadrupled over the last three years.

The KIA will own around 53 million shares after the share placement of about 20 million shares, which is part of an effort to diversify its portfolio, according to a statement.

The stake sale, which represented about 1.9% of Mercedes’s share capital, was priced at €69.27, according to the terms seen by Bloomberg. The price was a 3.6% discount to the stock’s closing price Tuesday.

Mercedes shares dropped 2.4% on Wednesday, after having surged about 50% from July through the start of March and having more than quadrupled since their March 2020 pandemic low. The KIA had informed the company of its decision and it plans to remain a key shareholder in the automaker, the German company said in a separate statement.

Chief Executive Officer Ola Källenius has focused the automaker on more profitable segments and pared back its offerings of entry-level models, leading to a 43% surge in the average price of a Mercedes since 2019. He also split the luxury-car company from its commercial vehicle operation, spinning off Daimler Truck Holding AG in late 2021.

While the luxury strategy has boosted earnings, signs of strain have emerged, with Mercedes having cut the price of flagship electric models in China, while the European and the US economies are weakening.

Kuwait owned 6.8% of Mercedes prior to the sale, making it the third-biggest holder, according to data compiled by Bloomberg. The KIA — the world’s oldest and one of the largest wealth funds — has been a Mercedes shareholder for almost 50 years.

#Qatar takes stakes in two Exxon oil and gas projects offshore Canada | Reuters

Qatar takes stakes in two Exxon oil and gas projects offshore Canada | Reuters

QatarEnergy said on Wednesday it signed a deal for stakes in two of ExxonMobil's (XOM.N) offshore explorations in Canada as the Qatari state-owned firm builds up its global energy portfolio.

The Qatari company first entered offshore exploration in Canada in 2021 with a 40% stake in ExxonMobil's licence for EL 1165A off the coast of Newfoundland and Labrador.

The latest farm-in agreement announced on Wednesday gives QatarEnergy a 28% interest in licence EL 1167, with ExxonMobil Canada holding 50% and Cenovus Energy (CVE.TO) 22%, as well as 40% in licence EL 1162, with ExxonMobil Canada holding 60%.

Gulf markets extend gains on rising oil prices | Reuters

Gulf markets extend gains on rising oil prices | Reuters

Most major Gulf markets extended gains on Wednesday, mirroring a rise in global peers after sentiment was lifted by receding fears of a global banking crisis and rising oil prices.

Oil prices — a key catalyst for gulf's financial markets — rose for a third session on Wednesday as a halt to some exports from Iraqi Kurdistan raised concerns of tightening supply and as reduced banking worries aided sentiment.

Brent crude climbed 42 cents, or 0.5%, to $79.07 a barrel by 0802 GMT.

Saudi Arabia's benchmark stock index (.TASI) edged up 0.1%, after trading flat in its two previous sessions, as the index was supported by gains in most sectors, led by healthcare and financials. Dr Sulaiman Al-Habib Medical Services (4013.SE) added 2.3% and Al-Rajhi Bank rose 0.4%.

Among other stocks, grocery retailer Bindawood Holding Company (4161.SE) was up 3.7% after reporting a surge in its fourth-quarter net profit to 64.9 million riyals ($17.28 million), compared with a net profit of 13.2 million riyals ($3.52 million) a year earlier.

Dubai's main share index (.DFMGI) was up 0.7%, in its second positive day in a row, supported by financial and real estate stocks. Emirates NBD Bank (ENBD.DU), Dubai's largest lender, gained 0.8%, and blue-chip developer Emaar Properties (EMAR.DU) inched up 0.5%.

In Abu Dhabi, the benchmark index (.FTFADGI) rose 0.3%, boosted by a 1.2% climb in UAE's largest lender First Abu Dhabi Bank (FAB.AD) and 0.7% lift in Abu Dhabi Ports (ADPORTS.AD).

Celularity (CELU.O) on Tuesday announced an agreement with logistics firm AD PORTS for exclusive product distribution in various territories in GCC and Egypt.

Separately, Reuters on Tuesday reported through sources that Uber Technologies' Middle East subsidiary Careem is in advanced talks with Emirates Telecommunications Group (EAND.AD) to invest in its expansion into services beyond ride-hailing.

Emirates Telecommunications Group was down 0.3%.

The benchmark stock index (.QSI) in Qatar advanced 0.5%, in its second-day of gains on boost from financial and industrial stocks. Sharia-compliant lender Masraf Al Rayan continued its surge for a third day to open nearly up 6%, while chemical makers Industries Qatar(IQCD.QA) jumped more than 3%.

#UAE’s MoE imposes fines worth $6.15mln on 29 DNFBP firms

UAE’s MoE imposes fines worth $6.15mln on 29 DNFBP firms

The UAE Ministry of Economy (MoE) has imposed fines worth AED22.6 million ($6.15 million) on 29 companies operating in the UAE’s designated non-financial business or professions (DNFBP) sector.

The fines were for failure to comply with the anti-money laundering and combating the financing of terrorism (AML/CFT) legislation. The initiative falls in line with the Ministry’s efforts to ensure the sector’s full compliance with the provisions stipulated by Federal Decree-Law No 20 of 2018 on anti-money laundering and combating the financing of terrorism and illegal organisations and its executive regulations and related laws.

Adherence to the law is necessary to ensure the country’s full compliance with the international standards issued by the Financial Action Task Force (FATF).

Mideast Stocks: Most Gulf stocks end higher as oil prices firm; #Saudi retreats

Mideast Stocks: Most Gulf stocks end higher as oil prices firm; Saudi retreats

Most Gulf stock indexes closed higher on Tuesday, as fears of a banking contagion eased, while rise in oil prices amid supply disruption risks and strong demand recovery in China also lifted sentiment.

Oil prices - a key catalyst for Gulf's financial markets - extended gains from the previous session amid supply disruption risks from Iraqi Kurdistan and hopes that turmoil in banking is being contained, with Brent crude futures gained 61 cents, 0.8%, to $78.73 a barrel by 1006 GMT.

"Improving sentiment has benefited GCC stock markets where performances were in the red lately as receding concerns over the US and European banking sectors have brought some relief for investors," said Ahmed Negm, head of market research MENA at XS.com.

The Qatari benchmark index climbed more than 2%, as 19 of the 20 constituent stocks ended higher. Sharia-compliant lender Masraf Al Rayan jumped over 6%, its biggest gain in more than 3 years, while chemical makers Industries Qatar was up 2.9%.

Dubai's main share index added 1.7%, after three days of losses, boosted by strong gains in banking and property stocks, with lender Dubai Islamic Bank rising 4.9% and blue-chip developer Emaar Properties increasing 4.8%.

Abu Dhabi's share index also rose 0.4% after three consecutive sessions of declines, led by a 0.9% rise in UAE's largest lender First Abu Dhabi Bank and a 3.4% jump in Aldar Properties.

Saudi Arabia's benchmark index closed flat, as gains in healthcare sectors were offset by losses in financials, with Dr. Sulaiman Al-Habib Medical Services gaining 3.8% but Al rajhi Bank falling 1.5%.

Outside the Gulf, Egypt's blue-chip index slipped for a second day to close 0.3% lower, with index heavyweight Commercial International Bank Egypt falling 3.9% and EFG Hermes dipping 1.7%.

Middle East on ‘radar’ of global investors as it enjoys IPO boom | Financial Times

Middle East on ‘radar’ of global investors as it enjoys IPO boom | Financial Times

Shares in Presight AI, a data analytics company, soared on Monday, their first day of trading on the Abu Dhabi bourse after a $496mn initial public offering that was 136 times oversubscribed. 

The demand is no one-off. It comes two weeks after Adnoc Gas raised $2.5bn in the emirate’s biggest listing. They are among the latest in a fast-flowing pipeline of offerings in the Middle East that contrasts sharply with Europe’s moribund market. 

The 51 IPOs across the Middle East and north Africa last year was a record, according to EY. They raised $22bn, a 179 per cent increase on 2021, the advisory firm said, adding that this year’s market looked “healthy”. 

Miguel Azevedo, Citigroup’s chair of investment banking for the Middle East and Africa, said the region had “come on to the radar screen”.

#Bahrain’s Economic Growth Hits Fastest in Almost a Decade - Bloomberg

Bahrain’s Economic Growth Hits Fastest in Almost a Decade - Bloomberg

Bahrain’s economy grew at the fastest pace since 2013 last year, fueled by an acceleration in non-oil growth, according to preliminary government data.

Overall economic output grew nearly 5%, driven by 6.2% growth in the non-oil sector, higher than anticipated by the government’s recovery plan launched in 2021 in response to the coronavirus pandemic. Hotels and restaurants led growth in the non-oil sector, followed by government services and then real estate.

The oil economy shrunk 1.4% last year according to the finance ministry, as a result of a decline in production. Higher oil prices have helped neighboring Saudi Arabia become one of the world’s fastest growing economies.

This year, the Gulf state’s economy is seen growing nearly 3%, in line with estimates from the International Monetary Fund, with no growth seen in oil GDP.

BP, ADNOC offer to buy 50% of Israel's NewMed Energy | Reuters

BP, ADNOC offer to buy 50% of Israel's NewMed Energy | Reuters

BP (BP.L) and Abu Dhabi's state oil giant on Tuesday offered to acquire 50% of Israeli offshore natural gas producer NewMed Energy (NWMDp.TA) for around $2 billion, making their entry into Israel's growing energy sector.

The offer would involve acquiring NewMed's free floating shares and taking the company private. BP shares gained 2% by 0810 GMT while NewMed shares were up around 30%.

Abu Dhabi National Oil Co (ADNOC) and BP said they intend to form a new joint venture as part of the deal that will be "focused on gas development in international areas of mutual interest including the East Mediterranean."

NewMed is the largest stakeholder in the giant Leviathan offshore field, operated by Chevron (CVX.N), which produces 12 billion cubic metres (bcm) of gas that are supplied to Israel, Egypt and Jordan.

NewMed and its partners plan to nearly double Leviathan's production to 21 to 24 bcm by 2027 are also exploring plans for a liquefied natural gas (LNG) terminal to further boost exports, Chief Executive Officer Yossi Abu told Reuters.

Real GDP growth projected to expand by 4.3% in 2024: #UAE Central Bank

Real GDP growth projected to expand by 4.3% in 2024: UAE Central Bank

The Central Bank of the United Arab Emirates has projected the country's annual real GDP growth to expand by 4.3 percent in 2024.

"After three quarters of high growth, the UAE’s economy maintained a solid footing in Q4 2022, reflecting a strong performance of both the oil and the non-oil sectors," the apex bank revealed in its 4th Quarterly Economic Review.

For the whole year, growth is estimated at 7.6%. In 2023, the CBUAE maintains its forecast unchanged at 3.9%. While oil production is expected to moderate in line with the OPEC+ agreements, the non-oil sector is expected to continue to support aggregate output, even if at a more modest pace.

“Oil production averaged 3.1 million barrels per day in Q4 and the UAE hydrocarbon GDP is estimated to have grown by 10% Y-o-Y, in line with the OPEC+ agreements (10.1% for 2022).”

In the meantime, and following the robust growth in the previous quarter, the non-oil sector is estimated to have grown at a similar pace in Q4 2022. The CBUAE estimates non-oil GDP growth for 2022 at 6.6%, according to the review.

The bank highlighted the main drivers of this strong performance to be the real estate and construction sectors and a dynamic manufacturing sector, such as refineries and aluminum production.

“In addition, the FIFA World Cup in Qatar and other global events that took place in the region boosted travel and tourism to the UAE. For 2023 and 2024.”

For 2023 and 2024, the CBUAE projects the real non-oil GDP to expand by 4.2% and 4.6% respectively, in line with global growth trends.

Mideast Stocks: Gulf stocks rise as sentiment improves amid easing banking fears

Mideast Stocks: Gulf stocks rise as sentiment improves amid easing banking fears

Most Gulf stock indexes rose in early trading on Tuesday, led by the gains in banking shares as worries of banking contagion eased and demand recovery in China improved investors' sentiment.

Oil prices - a major driver for Gulf economies - retreated on Tuesday after rallying in the previous session, with Brent crude futures falling 19 cents to $77.93 a barrel by 0651 GMT.

The prices are likely to draw support from indications of demand recovery as China's crude imports are expected to rise 6.2% to 540 million tonnes in 2023, according to an annual forecast by a research unit of China National Petroleum Corp on Monday.

Saudi Arabia's benchmark stock index added 0.6%, led by banking stocks, with Riyad Bank advancing 1.2% and Bank AlJazira gaining 0.7%.

State oil giant and index heavyweight Saudi Aramco was also up 0.5%.

Dubai's main share index advanced 1.1%, snapping a three-day losing streak, lifted by solid gains in banking and property stocks.

Emirates NBD Bank, Dubai's largest lender, climbed 1.6%, while blue-chip developer Emaar Properties was up 1.5%.

In Abu Dhabi, the benchmark index edged up 0.3% after three consecutive sessions of declines, led by a 1.7% boost in UAE's largest lender First Abu Dhabi Bank and a 2.5% jump in Abu Dhabi Commercial Bank .

The benchmark stock index in Qatar also gained 0.8%, with all the constituent stocks trading higher, led by financial and energy shares.

Masraf Al Rayan, the sharia-compliant lender, added 2.1%, while Qatar Gas Transport Nakilat was up 2.9%.

Al Ansari Owners Raise $210 Million in #Dubai’s First IPO of 2023 - Bloomberg

Al Ansari Owners Raise $210 Million in Dubai’s First IPO of 2023 - Bloomberg

The owners of remittance and money exchange firm Al Ansari Financial Services raised 773 million dirhams ($210 million) after pricing shares at the top of the range.

Al Ansari Holding LLC sold 750 million shares for 1.03 dirhams each, valuing the company at $2.1 billion, according to a statement on Monday. Its shares will start trading on April 6.

The IPO — Dubai’s first this year — attracted total demand of more than 12.7 billion dirhams, including a 200 million-dirham commitment from cornerstone investor National Bonds Corp. Excluding the cornerstone tranche, the IPO was oversubscribed about 22 times.

Al Ansari had received enough orders for all of the shares on offer within an hour of books opening on March 16 even as markets were roiled by the collapse of several mid-sized US lenders and concerns over Credit Suisse Group AG.

#Saudi Aramco's Deal Will Cement China's Oil Demand and Push Its Peak Higher - Bloomberg

Saudi Aramco's Deal Will Cement China's Oil Demand and Push Its Peak Higher - Bloomberg

Every year, state-owned giant China National Oil Corp. publishes an estimate of when the country’s oil demand might peak. Over the last few years, the date hasn’t changed much — give or take, around 2030 — but the apex just keeps moving higher.

In 2018, CNPC said Chinese consumption would climax at about 690 million metric tons. In 2019, it revised its forecast to 705 million tons; in 2020, to 740 million; and in 2021 to 780 million. Translated into barrels a day using a typical conversion factor, the 2018-to-2021 increase equates to 1.8 million more barrels a day, or nearly as much as the current daily oil consumption of Germany.

For all the jibber-jabber about slowing Chinese demand — whether due to climate change policies or restrained economic growth — the Middle Kingdom is gulping more and more crude. And the trend is set to continue, at least for a few more years, thanks to new deals with Saudi Arabia.

The Saudis have attempted to crack open China’s oil-refining industry for decades, trying to buy stakes as a beachhead to supply more oil into the People’s Republic. It’s a well-worn strategy: The Saudis did the same in other big petroleum markets, investing in refiners from Japan to the US to South Korea. In exchange for their equity, the Saudis locked in sales of their oil. It’s a money-for-crude investment that guarantees the Saudis steady demand for their oil.

Mideast Stocks: Gulf markets mostly subdued despite rising oil prices

Mideast Stocks: Gulf markets mostly subdued despite rising oil prices

Gulf stock markets were mostly subdued on Monday, with banking shares taking the biggest hit across the markets as investors in the region were cautious despite some gains in oil prices and an easing of global banking stability fears.

Sentiment among investors remained pessimistic as concerns around the banking sector’s woes remain in investors’ minds, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA.

Oil prices - a key catalyst for Gulf financial markets - rose on Monday after a halt to oil exports from Iraqi Kurdistan via Turkey and moves to contain a potential banking crisis, with Brent crude futures gaining $1.16, or 1.6%, at $76.15 a barrel by 1210 GMT.

Abu Dhabi's share index dropped 0.8%, in its third day in the red, dragged down by a 0.3% decline in UAE's largest lender First Abu Dhabi Bank.

Dubai's main share index declined 0.7%, extending losses to a second consecutive session, led by drops in its financial stocks, with Emirates NBD Bank, UAE's largest lender, decreasing 1.9% and Dubai Islamic Bank tumbling 2.1%.

The Qatari benchmark index also fell 0.3%, ending a four day rally, weighed down by a 1.2% dive in Qatar National Bank, the Gulf's biggest bank by assets, and a 0.8% retreat in chemical makers Industries Qatar.

Saudi Arabia's benchmark index closed flat, as heavy losses in material sectors were capped by gains in healthcare stocks, with Dr. Sulaiman Al-Habib Medical Services gaining 3.8% but Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, to close 8.3% lower. Index heavyweight Saudi Aramco also fell 0.2%. Aramco said on Monday it has raised its multi-billion dollar investment in China by finalising and upgrading a planned joint venture in northeast China and acquiring an expanded stake in a privately controlled petrochemical group.

Outside the Gulf, Egypt's blue-chip index, closed 0.2% lower, with index heavyweight Commercial International Bank Egypt shedding 0.4% and EFG Hermes Holdings losing 2.9%. The country's lone cigarette maker, Eastern Company , however, surged 7.4% after on Sunday it revised the price of some products.

#Oman's OQ seeks bookrunners for gas pipelines IPO, sources say | Reuters

Oman's OQ seeks bookrunners for gas pipelines IPO, sources say | Reuters

Oman's OQ Gas Network, the pipelines business of the sultanate's state oil giant OQ, has invited banks to pitch for bookrunner roles in its planned initial public offering (IPO), two sources close to the matter told Reuters

OQ Gas Network is preparing for a public share sale that could take place as early as June, the sources said on condition of anonymity because the matter was not public.

One of the sources said OQ could raise more than $500 million from the deal.

Bank of America (BAC.N) and Bank Muscat (BKMB.OM) were selected last year for top roles on the deal, the sources said.

OQ declined to comment when contacted by Reuters on Monday.

Reuters reported last May that Oman's state energy company was considering an IPO of its gas pipeline network.

The planned IPO follows this month's flotation of OQ's oil drilling business, Abraj Energy Services, which raised $244 million from selling a 49% stake.

OQ Gas Network is Oman's exclusive gas transportation system operator, which supplies natural gas to the country's power plants, freezones, industrial clusters, LNG complexes and other customers.

Companies from the Middle East raised $21.9 billion through IPOs in 2022, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.

#Saudi Aramco Takes $3.6 Billion Stake in China Oil Refinery Rongsheng - Bloomberg

Saudi Aramco Takes $3.6 Billion Stake in China Oil Refinery Rongsheng - Bloomberg

Saudi Aramco, the world’s biggest oil producer, has agreed to buy a 10% stake in a giant oil complex in China for 24.6 billion yuan ($3.6 billion), in a deal that will significantly expand its refining presence in China.

Aramco will also supply 480,000 barrels of crude oil per day to Rongsheng Petrochemical Co’s refinery in the eastern province of Zhejiang over a 20-year period, according to a statement from the Chinese company. Aramco will provide a credit of $800 million to Rongsheng for the purchase, that statement said. Aramco Overseas Company, a subsidiary of Aramco, will acquire the shares.

Rongsheng owns a 51% equity interest in Zhejiang Petroleum and Chemical Co., which in turn owns and operates the largest integrated refining and chemicals complex in China, with a capacity to process 800,000 barrels per day of crude oil and to produce 4.2 million metric tons of ethylene per year.

“This announcement demonstrates Aramco’s long-term commitment to China and belief in the fundamentals of the Chinese petrochemicals sector,” Mohammed Y. Al Qahtani, Aramco Executive Vice President of Downstream, said in a separate statement.

The deal comes a day after Saudi Aramco and its Chinese partners agreed to build a refining and petrochemical complex in China’s northeast, accelerating a development that was paused during the pandemic.

#AbuDhabi's Presight AI soars on market debut | Reuters

Abu Dhabi's Presight AI soars on market debut | Reuters

Shares in Abu Dhabi big data analytics company Presight AI climbed as much as 176% on their stock market debut after raising 1.82 billion dirhams ($495.6 million) in an initial public offering (IPO) for almost a third of the business.

Presight's shares rose as high as 3.70 dirhams on the Abu Dhabi Securities Exchange before retreating a little to 3.40 dirhams. The shares were priced at 1.34 dirhams for the IPO.

The company is majority owned by G42, controlled by Sheikh Tahnoon bin Zayed al-Nahyan. Sheikh Tahnoon is the UAE's national security adviser and has acted as a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.

Sheikh Tahnoon's financial interests include conglomerate International Holding Company (IHC.AD), which was a cornerstone investor in the Presight IPO.

He was also recently named chair of Abu Dhabi Investment Authority, the emirate's largest sovereign wealth fund, and was already chair of smaller wealth fund ADQ.

#UAE exchange house Al Ansari raises $210.5 million in IPO | Reuters

UAE exchange house Al Ansari raises $210.5 million in IPO | Reuters

UAE-based exchange house Al Ansari Financial Services (IPO-ALAE.DU) said on Monday it has raised 773 million dirhams ($210.5 million) at the high-end of the indicative range in an initial public offering (IPO).

The shares were priced at 1.03 dirhams apiece, Al Ansari said in a statement, adding that about 10% of the company - equivalent to 750 million shares - will list on the Dubai Financial Market on April 6.

Al Ansari Holding will hold the remaining 90%.

The UAE retail offer was oversubscribed by around 44 times, the company said.

#Qatar to introduce options, futures in new derivatives exchange - regulator | Reuters

Qatar to introduce options, futures in new derivatives exchange - regulator | Reuters

Qatar's bourse plans to introduce a new derivatives market that will allow investors to trade options and futures on local stocks and its equity index, the country's financial regulator said on Monday.

The Qatar Financial Centre Regulatory Authority (QFCRA) issued a new regulatory framework for listed derivatives after a three-month consultation with investors and market participants.

The exchange also plans to set up an entity that will provide clearing and settlement services for trades in options and derivative contracts, QFCRA said in the statement.

The technology for the central clearing counterparty will be powered by technology from the London Stock Exchange Group, the statement said.

"The launch of the derivatives exchange will be an important milestone in the development of the Qatar capital markets and Qatar's ambition to move to developed market status," Qatar stock exchange's acting chief executive Abdulaziz Al Emadi was quoted as saying.

#Saudi banks likely to remain profitable in 2023 – A&M

Saudi banks likely to remain profitable in 2023 – A&M

Saudi Arabia’s banks are likely to remain on a profitable path in 2023 with continued credit growth, and higher interest rates resulting in migration of current and savings accounts towards term deposits.

The Saudi Central Bank (SAMA) will also continue extending tenors for its support packages and other facilities to avoid a credit crunch, according to Alvarez & Marsal’s (A&M) 2022 Saudi Arabia Banking Pulse 2022.

Higher credit demand, better asset yield and operating efficiencies drove the top Saudi lenders’ profitability in 2022 amidst rising benchmark interest rates, the bank said, with the aggregate net income increasing by 28.4% year on year (YoY) to SAR 62.7 billion ($16.7 billion).

Banks saw high credit growth during the year, with deposits inching up further on strong economic momentum and investments, pushing the loan-to-deposit ratio to 96.7%.

This can largely be attributed to demand for personal loans and real estate activities, the report said, adding that the banks’ credit growth stood at 14.4% YoY, while deposits grew by 8.3% YoY.

The growth of loans and advances (L&A) significantly outpaced that of deposits, with the total growth for the top 10 banks growing at 14.4% YoY, whereas aggregate customer deposits increased by 8.3%.

Mideast Stocks: Gulf equities open mixed amid rising oil prices

Mideast Stocks: Gulf equities open mixed amid rising oil prices

Major Gulf markets opened mixed on Monday, mirroring gains in oil prices as investors pin their hopes on modest interest rate hikes amid governments' efforts to soothe fears over the global banking system.

Most Gulf currencies are pegged to the U.S. dollar, with Saudi Arabia, the United Arab Emirates and Qatar usually mirroring monetary policy changes in the United States.

Oil prices - a key catalyst for Gulf financial markets - rose on Monday, with Brent crude futures jumping 77 cents, or 1.03%, to $75.76 a barrel, as of 0731 GMT.

Saudi Arabia's benchmark stock index rose 0.5%, its third positive day in a row, boosted by gains in almost all sectors, led by financial and real estate stocks.

Saudi National Bank, the country's largest lender by assets, jumped 1.9% as it appointed Chief Executive Saeed Mohammed Al Ghamdi as the bank's chairman, replacing Abdul Wahed Al Khudairy.

The board also appointed Talal Ahmed Al Khereiji as acting CEO, with all changes effective March 27.

However, Sabic Agri-Nutrients, which was trading ex-dividend, recorded its sharpest intraday decline in over three years, falling more than 8%.

The Qatari Stock index edged up 0.1%, extending gains to a fourth consecutive session, as most banking stocks were trading in the positive territory.

Lender Masraf Al Rayan and index heavyweights Qatar Commercial Bank advanced 1.4% and 0.8%, respectively.

Dubai's benchmark stock index fell 0.8%, extending losses to a second consecutive session, led by a 1.2% decline in Emirates NBD Bank, UAE's largest lender, and a 0.8% dip in Dubai Islamic Bank.

Abu Dhabi's benchmark index also opened down 0.5%, its third day in the red, dragged by a 0.3% drop in conglomerate International holding Company and a 1.3% decline in Adnoc Gas.

Abu Dhabi-based data analytics company Presight AI climbed as much as 176% after raising 1.82 billion dirhams ($495.6 million) in an initial public offering.

#Israel, #UAE sign free trade pact into effect | Reuters

Israel, UAE sign free trade pact into effect | Reuters

Israel and the United Arab Emirates on Sunday signed a free trade pact into effect, reducing or removing tariffs on about 96% of goods traded between the nations, Israel's Foreign Ministry said.

The countries first reached the agreement last May, promising to boost bilateral trade after they normalized ties in 2020 in a U.S.-brokered deal.

The deal will also allow Israeli companies to gain access to government tenders in the UAE, the ministry said.

Israeli Foreign Minister Eli Cohen, who on Sunday gave a final signature for the tariff arrangement within the trade pact, said it would "strengthen the connection" with the UAE and that Israel was working to normalize ties with more Arab countries.

#Qatar leads Gulf bourses higher on hopes of Fed rate pause | Reuters

Qatar leads Gulf bourses higher on hopes of Fed rate pause | Reuters

Qatar's stock market closed higher on Sunday, outperforming other bourses in the Gulf region, as expectations of a pause in rate hikes by the U.S. Federal Reserve lifted investor sentiment.

The Fed raised its main interest rate by a quarter point on Wednesday, but signaled it would consider a pause in light of banking system stresses.

Most Gulf central banks lifted their rates by a quarter percentage point on Wednesday, mirroring the Fed's rate hike as their currencies are largely pegged to the dollar.

The Qatari Stock index (.QSI) climbed 1.2%, extending its rally to a third straight session. The index recorded an advance in all sectors, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) rising 3.1% and Qatar Islamic Bank (QISB.QA) adding 2.7%.

Among other gainers, Ooredoo (ORDS.QA) and Qatar Fuel (QFLS.QA) rose 2.7% and 1.7% respectively.

Saudi Arabia's benchmark index (.TASI) rose 0.1%, supported by gains in materials and communications sectors stocks.

Shares in Mobile Telecommunications (7030.SE) shot up 9.8%, its sharpest intraday rise since October 2020, after the telecom services provider reported a more than 157% jump in full- year net profit.

Steel pipes maker Arabian Pipes (2200.SE) soared 9.5%, its highest daily rise since Nov. 10, 2021, after it posted a full- year net profit of 8.9 million riyals, compared with a loss of 60.1 million a year earlier.

Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 2.3%, extending its previous session gains.

The index was lifted up by a 15.1% jump in Sidi Kerir (SKPC.CA) and a 7% rise in Fawry Banking (FWRY.CA).

Among other gainers, Alexandria Mineral Oils (AMOC.CA) and Eastern Co (EAST.CA) jumped 9.8% and 3.9% respectively.

Eastern, a manufacturer of tobacco products, announced on Sunday a revision in prices of its products.

Profit of four largest #UAE banks to grow in 2023 amid lower provisions and higher interest

Profit of four largest UAE banks to grow in 2023 amid lower provisions and higher interest

Profitability of the four largest banks in the UAE will continue to grow this year amid rising interest rates and the reversal of pandemic-related provisions charges as the Arab world’s second-largest economy continues to maintain strong growth momentum, Moody’s Investors Service has said.

The improving operating environment also supported the profitability of the lenders — First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank — which account for about 77 per cent of banking assets in the UAE, Moody's said in its latest report on the country's banking sector.

The combined reported net profit of the four lenders climbed to $9 billion at the end of last year — up from $8 billion recorded in 2021 and $8.3 billion in 2019. The bottom line growth will continue in 2023, albeit at a slower pace, the rating agency said.

“The combined bottom line profitability of the four banks exceeded pre-pandemic levels in 2022, reflecting strong growth in interest income and normalised provisioning charges,” Nitish Bhojnagarwala, Moody’s vice president and senior credit officer, and analysts Azhar Bouzidi and Badis Shubailat said in the report.

#AbuDhabi's ADNOC gears up for June listing of marine & logistics unit - sources | Reuters

Abu Dhabi's ADNOC gears up for June listing of marine & logistics unit - sources | Reuters

State oil giant Abu Dhabi National Oil Co (ADNOC) plans to float its marine and logistics subsidiary in the coming months, two sources said, the second initial public offering of one of its businesses this year.

ADNOC, which raised $2.5 billion from listing its gas business in March, is gearing up for a June listing of ADNOC Logistics & Services (ADNOC L&S), said the sources, declining to be named as the matter is not public.

HSBC (HSBA.L) was appointed as joint global coordinator on the syndicate this week, one of the sources said, joining Citigroup (C.N), JPMorgan (JPM.N), and First Abu Dhabi Bank (FAB.AD), which were selected at the end of last year.

ADNOC, which supplies nearly 3% of global oil demand, declined to comment on the listing plans. HSBC did not immediately respond to a request for comment.

ADNOC L&S delivers crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi to its international customers. It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.

Russia-Linked Gold Miner Polymetal May List in #AbuDhabi - Bloomberg

Russia-Linked Gold Miner Polymetal May List in Abu Dhabi - Bloomberg

Polymetal International Plc may list in Abu Dhabi, becoming the first company with majority Russian operations to trade in the Middle East, as the gold miner re-domiciles from Jersey to Kazakhstan.

Polymetal is in advanced talks with the Abu Dhabi Securities Exchange as keeping its London listing after re-domiciling is proving difficult, according to people familiar with the situation, who asked not to be identified as the matter is private. “We are studying the listing at ADX, but no decision is yet taken,” a spokesman for Polymetal said by email.

The United Arab Emirates is benefiting from Russian money and trade flows since the invasion of Ukraine, leading to Western concerns that it may be helping to ease the impact of sanctions on Moscow. Polymetal is not sanctioned.

Other companies with Russian roots are also looking at listings in the UAE, although they haven’t taken steps toward doing so, two other people said, without naming any of them.

UBS Seeks Mideast Dealmaking Revival With Credit Suisse Takeover - Bloomberg

UBS Seeks Mideast Dealmaking Revival With Credit Suisse Takeover - Bloomberg

UBS Group AG may use its takeover of Credit Suisse Group AG as an opportunity to rebuild its investment banking business in the Middle East after recently shuttering its regional dealmaking and advisory operations, according to people familiar with the matter.

In what would be a U-turn for the Swiss bank, UBS executives have been exploring ways to revive the bank’s deal business in Dubai after it effectively closed its on-the-ground dealmaking operations in 2022, the people said, asking not to be identified because the matter is private.

Senior executives at UBS are keen to take advantage of heightened deal activity in the region and want to leverage the lender’s private banking relationships with wealthy royals and family-owned businesses to win deals, the people said. Discussions are in the early stages and it’s not clear if they will result in an agreement, the people said.

Credit Suisse has about 40 investment bankers in the United Arab Emirates, Qatar and Saudi Arabia. Representatives for UBS and Credit Suisse declined to comment.

UBS currently covers deals in the Middle East and North Africa region by flying bankers and specialists from jurisdictions such as the US and UK into the region. The Swiss lender still has a local presence through other divisions, including its global trading and wealth units, where it has continued to hire.

#UAE equities extend losses on ex-dividend stocks, bearish mood | Reuters

UAE equities extend losses on ex-dividend stocks, bearish mood | Reuters

Stock markets in the United Arab Emirates extended their losses on Friday, pulled lower by a slew of stocks trading ex-dividend, while falling oil prices and global banking stability concerns also weighed on investor sentiment.

UAE stock markets remained under pressure in line with major global markets, as interest rate hikes and worries over the banking sector crisis and global economic growth rattled local and international investors, said Daniel Takieddine, CEO MENA at BDSwiss.

Oil prices - a key catalyst for financial markets in the Gulf - fell sharply on Friday amid declining European banking shares and oversupply concerns, with Brent crude falling $2.50, or 3.3%, to $73.41 a barrel by 1031 GMT.

Meanwhile, The Central Bank of the United Arab Emirates On Thursday raised its base interest rate by 25 basis points to 4.9%, matching the U.S. Federal Reserve's hike, as most Gulf Cooperation Council countries (GCC), including the United Arab Emirates, have their currencies pegged to the dollar and generally follow the Fed's policy moves.

In Dubai, the main share index (.DFMGI) closed 0.4% lower, dragged down by a more than 5% decline in lender Dubai Islamic Bank (DISB.DU), its biggest intraday fall in over 10 months, as it traded ex-dividend.

The index, however, logged a marginal gain of 0.1% this week after falling for two straight weeks.

Abu Dhabi's index (.FTFADGI) fell 0.5%, in its second consecutive session of losses, pressured by a 2.2% decrease in its largest lender First Abu Dhabi Bank (FAB.AD).

The real estate developer Aldar Properties (ALDAR.AD) and ADNOC Distribution (ADNOCDIST.AD), which were trading ex-dividend lost 3.4% and 3.7% respectively.

The index dropped 1.5% on weekly basis, extending the decline for a second consecutive week.

Musk denies report on SpaceX's plans for new funding from #Saudi, #UAE | Reuters

Musk denies report on SpaceX's plans for new funding from Saudi, UAE | Reuters

Elon Musk, the billionaire founder of SpaceX, on Friday denied a media report from earlier this week that said investors from Saudi Arabia and the United Arab Emirates were planning to invest in a multi-billion dollar funding round in the company.

A unit of Saudi Arabia's investment fund and an Abu Dhabi-based company are planning to invest in a multi-billion dollar funding round for SpaceX, the Information had reported on Wednesday, citing people familiar with the discussions.

Musk tweeted "not true" responding to the report.

The funding round is expected to value the rocket maker at about $140 billion, the report added.

SpaceX raised $2 billion in 2022 and $2.6 billion in 2020, according to venture capital firm Space Capital.

European, Middle Eastern & African Stocks - Bloomberg #UAE mid-session

European, Middle Eastern & African Stocks - Bloomberg

Most Gulf markets end lower as oil prices drop; Egypt up | Reuters

Most Gulf markets end lower as oil prices drop; Egypt up | Reuters

Most Gulf stock markets ended lower on Thursday, as oil prices declined after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world's largest economy.

Crude prices — a key catalyst for the Gulf's financial markets — slid 0.6% on Thursday with Brent crude down to $76.21 at 1145 GMT.

Powell said on Wednesday that banking industry stress could trigger a credit crunch, with "significant" implications for an economy that U.S. central bank officials projected would slow even more this year than previously thought.

Dubai's benchmark index (.DFMGI) fell 0.9% after rising for two sessions, weighed down by losses in industrial and financial sectors with real estate developer Emaar Properties (EMAR.DU) losing 2.1% and the emirate's largest lender, Emirates NBD (ENBD.DU), falling 0.4%.

The low-cost flyer Air Arabia (AIRA.DU) lost 7.1% in its steepest intraday decline since Nov. 28, 2021 as it was trading ex-dividend.

In Abu Dhabi, the index (.FTFADGI) fell 0.6%, after gaining in the previous session, dragged down by a 1.7% drop in blue-chip property developer Aldar Properties (ALDAR.AD) and a 2% decline in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD).

First Abu Dhabi Bank (FAB.AD), the largest lender in the United Arab Emirates, slumped 2% and Multiply Group (MULTIPLY.AD) lost 2.6%.

Abu Dhabi-based investment company Multiply shareholders on Thursday approved that no dividend would be distributed for 2022.

"With interest rates expected to go higher this year, the tighter monetary policy could have a stronger impact on stock markets and on oil demand in the US and Europe," said Farah Mourad, Senior Market Analyst of XTB MENA.

"However, improvements in the Chinese economy and changes in monetary policy could alleviate these pressures". The benchmark index (.TASI) in Saudi Arabia ended 0.9% higher, extending previous session's gains. The index was lifted by gains in almost all sectors with world's largest Islamic bank Al Rajhi Bank (1120.SE) surging 1.2% and oil giant Saudi Aramco (2222.SE) climbing 1.4%.

The Qatari index (.QSI) edged up 0.3%, extending its three-session rally with finance and industry sectors witnessing gains, while the energy and materials were in the red.

The region's largest lender, Qatar National Bank (QNBK.QA), added 0.7% and conglomerate Industries Qatar (IQCD.QA) gained 0.9%.

Qatar Gas Transport (QGTS.QA) and Mesaieed Petro (MPHC.QA) lost 0.7% and 0.8%, respectively.

Outside the Gulf, Egypt's blue-chip index (.EGX30) surged 2.4%, after declining in the previous session, with all sectors in the positive territory.

Commercial International Bank (COMI.CA) and Egypt Kuwait Holding (EKHO.CA) climbed 2.3% and 10%, respectively.

Meanwhile, the World Bank said on Wednesday it had approved a new $7 billion partnership agreement with Egypt for 2023-2027.

Credit Suisse Losses Turn Middle East Investors Cautious on Bank Deals - Bloomberg

Credit Suisse Losses Turn Middle East Investors Cautious on Bank Deals - Bloomberg

Middle Eastern investors are becoming more cautious of making fresh investments in global banks after emerging as some of the hardest hit by the Credit Suisse Group AG crisis.

Sovereign wealth funds and other investors in the region have been spooked by the market turmoil that wiped $1 billion from Saudi National Bank’s stake in the Swiss lender and are likely to be more wary on deals involving foreign financial firms, bankers and lawyers with knowledge of the matter said. The crisis is accelerating a pivot toward other sectors such as healthcare and technology, bankers said, asking not to be identified discussing matters that aren’t public.

The most recent losses on Credit Suisse are a stark reminder of a series of investments made by Gulf investors during the 2008 financial crisis - many of which ended in financial loss or legal battles. Flush with cash after oil’s recent surge, Middle Eastern investors had resumed exploring deals for foreign lenders. Any change in that strategy would be a blow to the global financial sector, potentially depriving Western institutions of much needed petrodollars.

“There have been some legacy issues in the Gulf around investments from the 2008 financial crisis and the Saudi National Bank experience with Credit Suisse will make them more nervous around the risks during this sensitive time,” said Ayham Kamel, head of Middle East and North Africa at political risk consultant Eurasia Group. “The Credit Suisse situation might also present some questions for Gulf sovereigns around ability to drive restructuring plans in some institutions.”

#Ramadan Kareem to all celebrants

 

Image by pikisuperstar on Freepik

#Saudi, #UAE investors plan to invest in SpaceX - The Information | Reuters

Saudi, UAE investors plan to invest in SpaceX - The Information | Reuters

A unit of Saudi Arabia's investment fund and an Abu Dhabi-based company are planning to invest in a multi-billion dollar funding round for Elon Musk-led SpaceX, The Information reported on Wednesday, citing people familiar with the discussions.

The funding round is expected to value the rocket maker at about $140 billion, the report added.

SpaceX raised $2 billion in 2022 and $2.6 billion in 2020, according to venture capital firm Space Capital.

The company and Morgan Stanley's representatives have told investors that Saudi Arabia's Water and Electricity Holding Company, part of the country's sovereign wealth fund, and United Arab Emirates' Alpha Dhabi are part of the funding round, according to the report.

SpaceX, Saudi Arabia's Public Investment Fund and Alpha Dhabi did not immediately respond to a Reuters request for comment.

Australia grants interim nod to Qantas-Emirates transport alliance | Reuters

Australia grants interim nod to Qantas-Emirates transport alliance | Reuters

The Australian competition regulator said on Thursday it gave an interim permit for Qantas Airways Ltd (QAN.AX) and Emirates to continue their passenger and cargo transport alliance, while it assessed their application for final authorisation.

Qantas and Emirates' existing five-year authorisation is due to expire at the end of March. The parties are seeking another five-year extension to the alliance, the Australian Competition and Consumer Commission (ACCC) said in a statement.

Under the current authorisation, Qantas and Emirates coordinate their operations across their networks, covering routes between Australia and the United Kingdom or Europe, New Zealand, Asia, the Middle East and North Africa.

"The ACCC may review the interim authorisation at any time and its interim authorisation decision should not be taken to be indicative of whether or not final authorisation will be granted," the regulator's Commissioner Anna Brakey said.