#Saudi bourse gains on rising oil prices; Egypt falls | Reuters

Saudi bourse gains on rising oil prices; Egypt falls | Reuters

Saudi Arabia's stock market ended higher on Sunday in response to Friday's rise in oil prices, while the Egyptian index was in the red on profit-taking.

Oil prices - a key catalyst for the Gulf's financial markets - rose over 2% on Friday after energy firms posted positive earnings and U.S. data showed crude output was declining while fuel demand was growing.

EIA data this week showed U.S. crude oil and gasoline inventories fell more than expected last week as demand for the motor fuel picked up ahead of the peak summer driving season.

Saudi Arabia's benchmark index (.TASI) added 0.3%, with Retal Urban Development Co (4322.SE) advancing 2.9% and Dr Sulaiman Al-Habib Medical Services (4013.SE) closing 2.8% higher.

Elsewhere, oil giant Saudi Aramco (2223.SE) added 0.8%.

In Qatar, the index (.QSI) added 0.4%, with petrochemical maker Industries Qatar (IQCD.QA) rising 1.5%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.7%, with El Sewedy Electric (SWDY.CA) sliding about 3%.

Egypt is strongly considering approving the currencies of its commodity trade partners, including China, India and Russia to try to lessen the need for dollars, Supply Minister Ali Moselhy told reporters on Saturday.

Emirates Steel Arkan considering options after report on Thyssenkrupp stake bid

Emirates Steel Arkan considering options after report on Thyssenkrupp stake bid

Emirates Steel Arkan, the largest public steel and building materials business in the UAE, said it continuously evaluates options to expand its business after a media report earlier this week said the Abu Dhabi state-backed group is pursuing a potential investment in Germany’s Thyssenkrupp’s steel unit.

Emirates Steel Arkan is emerging as the most serious contender to buy a stake in the Thyssenkrupp business and could make a formal bid in the coming months, Bloomberg reported on Wednesday, citing sources.

“We are aware of the media reports that have been published in the last 48 hours,” Saeed Al Remeithi, group chief executive of Emirates Steel Arkan, said in a statement on Friday to the Abu Dhabi Securities Exchange, where its shares are traded.

“However, the relevant discussions are at a very preliminary stage and no terms in respect of any potential transaction have been reached. Any material information relating to a transaction will be announced in compliance with applicable regulations and disclosure requirements.”

#Saudi's PIF intends to create 1.8mln jobs: Al-Rumayyan

Saudi's PIF intends to create 1.8mln jobs: Al-Rumayyan

Yasir Al-Rumayyan, governor of the Public Investment Fund (PIF), said that the total volume of the PIF’s assets under management amounted to more than SR2 trillion.

“The PIF has been instrumental in creating more than 500,000 direct and indirect jobs, and it intends to create 1.8 million direct and indirect jobs,” he said in remarks on the occasion of the 7th anniversary of the launch of the Saudi Vision 2030.

Al-Rumayyan said that the Saudi sovereign wealth fund has established a total of 71 companies since 2019 in many strategic and vital sectors. “The PIF intends to inject up to SR1 trillion into new projects locally, and it is also moving steadily to consolidate its position as the most preferred investment partner globally,” he said.

The PIF chief also unveiled the fund’s ambitious plans. “Today we are beginning a new phase of achievements in which the fund confirms its commitment and continuity in achieving its goals by the end of 2025, including contributing to the non-oil gross domestic product (GDP) by about SR1.2 trillion and that the size of its assets exceed SR4 trillion.”

Al-Rumayyan pointed out that the PIF occupies an advanced and influential rank among the sovereign wealth funds in the world. “The fund will continue its efforts to diversify the economy, support local content, develop innovative opportunities for the future, and contribute to creating an attractive environment for investments,” he added.

#Kuwait banking sector records highest growth in total assets

Kuwait banking sector records highest growth in total assets

With banks looking to navigate through pandemic driven difficulties toward economic recovery and stability, KPMG published the eighth edition of its GCC listed banks’ results. Titled ‘Cautious optimism,’ the report offers a thorough analysis of the financial results and key performance indicators (KPIs) of leading listed commercial banks in the region, in comparison with the previous year, to highlight the main financial trends in the GCC countries.

Bhavesh Gandhi, Partner and Head of Financial Services, KPMG in Kuwait, said, “There are promising indicators of steady financial growth in Kuwait. Our results point out double-digit y-o-y growth in total assets and net profit by average in Kuwait, which is optimistic considering banking sector in the country is fresh off the COVID-19 crisis. It is expected that banks will press forward aggressively in certain aspects, such as digital transformation, but the collective disposition for growth will remain cautious.” Compared to 2021, Kuwait’s banking sector witnessed the highest y-o-y growth in terms of total assets (by average) in the region, climbing by 21.4 percent. Kuwait’s banking sector’s net profit (by average) also had the most significant growth rate in the region, increasing by 36.3 percent to reach 412.9 percent for the year 2022. Kuwait’s banking sector’s y-o-y growth with regard to coverage ratios on stage 3 loans was also the highest, rising by 7.1 percent compared to 2021. Albeit marginal, Kuwait’s banking sector’s returns on equity and assets grew by 0.8 percent and 0.1 percent, respectively.

In terms of average capital adequacy ratio, the banks in Kuwait had a healthy percentage of 17.3 percent, compared to the 18.3 percent in 2021, and well above the 12 percent limit required by the Central Bank of Kuwait. However, the banks in Kuwait saw an increase in the cost-to-income ratio which went up by 4 percent to reach 46.6 percent, compared to the 42.9 percent in 2021.

The following salient findings emerged from the financial results’ analysis for the year-ended 31 December 2022 for the GCC region as a whole:

Mideast Stocks: #UAE stocks close higher on strong corporate earnings

Mideast Stocks: UAE stocks close higher on strong corporate earnings

Stock markets in the United Arab Emirates closed higher on Friday, as a slew of strong corporate earnings lifted market sentiments despite lingering worries over an economic slowdown.

Dubai's benchmark index advanced 0.8%, lifted by strong gains in banking sector stocks with most sectors trading in positive territory.

Islamic lender Dubai Islamic Bank rose 3%. Top lender Emirates NBD Bank gained 1.4% after reporting 120% growth in first-quarter net profit to 6.01 billion dirhams ($1.64 billion) on Thursday.

Among other shares, stock exchange operator Dubai Financial Market finished 0.7% higher after the firm posted a 30% year-on-year surge in first-quarter net profit to 35.6 million dirhams ($9.70 million). Strong earnings could help the Dubai main index extend gains beyond current levels, said Farah Mourad, Senior Market Analyst of XTB MENA.

However, the market could see some concerns next week with traders monitoring important central bank meetings on the global stage, added Farah Mourad. In Abu Dhabi, the index settled 0.4% higher, boosted by a 3.7% increase in investment firm Multiply Group ahead of reporting first-quarter earnings later in the day.

Among the winners, Abu Dhabi Ports Company surged 4.3% after company's unit KEZAD Group signed lease agreements with Al Ghurair Foods for over 1 billion dirhams Mega Projects Across 1 Million SQM. Abu Dhabi index and Dubai index finished the month with 3.8% and 4.1% gains respectively.

Etihad Airways plans to triple passengers, double fleet amid strategy shift | Reuters

Etihad Airways plans to triple passengers, double fleet amid strategy shift | Reuters

Abu Dhabi-based Etihad Airways aims to triple the number of passengers it carriers to 30 million and nearly double its fleet to 150 planes by the end of the decade, the airline's chief told Reuters in an interview in New Delhi on Thursday.

Etihad's plans come amid a shift in its strategy to focus on medium to long-haul destinations, moving away from operating ultra long-haul flights where competition is intense and profitability challenging, CEO Antonoaldo Neves said.

"Etihad has India as a priority," Neves said, adding that the country is among its top three markets. He declined to name the other two.

The idea is to connect places like China, Southeast Asia, India and GCC (Gulf Cooperation Council) countries to Europe and the East Coast of the United States, Neves said.

Oil heads for another monthly decline as weak U.S. data weighs | Reuters

Oil heads for another monthly decline as weak U.S. data weighs | Reuters

Oil prices were heading for another monthly decline on Friday after disappointing U.S. economic data and uncertainty over further interest rate hikes weighed on the demand outlook.

Brent crude futures for June were up 42 cents, or 0.5%, at $78.79 a barrel by 0946 GMT while the more actively traded July contract was down 1 cent at $78.21. Brent is set for its fourth straight monthly fall.

Brent prices retraced earlier losses after data showed the euro zone returned to growth in the first quarter, albeit only modestly and more slowly than expected.

U.S. West Texas Intermediate (WTI) crude lost 15 cents, or 0.2%, to trade at $74.61 a barrel and is set for its sixth straight monthly decline.

#SaudiArabia’s Wealth Fund PIF Eyes Flynas Stake to Bolster Tourism - Bloomberg

Saudi Arabia’s Wealth Fund PIF Eyes Flynas Stake to Bolster Tourism - Bloomberg

Saudi Arabia’s sovereign wealth fund is in talks to buy a stake in Flynas, a low-cost carrier that’s a key pillar of the kingdom’s attempts to bolster its tourism sector, according to people familiar with the matter.

Goldman Sachs Group is advising shareholders on the potential sale to the Public Investment Fund, the people said, asking not to be identified as the information isn’t public. The airline is partly owned by Prince Alwaleed Bin Talal’s Kingdom Holding Co., in which PIF bought a 17% stake last year.

Flynas had also been planning a potential listing, the people said, though this might be delayed if the stake sale to PIF goes ahead. The carrier has been weighing an IPO since 2008 and in 2018 hired Morgan Stanley, Citigroup Inc. and NCB Capital for a potential deal, Bloomberg News reported.

Wynn Set to Spend $3.9 Billion on First Mideast ‘Gaming’ Resort - Bloomberg

Wynn Set to Spend $3.9 Billion on First Mideast ‘Gaming’ Resort - Bloomberg

Wynn Resorts Ltd. increased the number of rooms in its planned resort off the coast of the United Arab Emirates by 50%, and said it will spend almost $4 billion on the project that’s set to be the first to include “gaming” in the Middle East.

The beach-front Wynn Al Marjan Island will be one of the world’s largest gaming facilities with 1,500 rooms and villas, and is being built in Ras Al Khaimah — an emirate about 45 minutes from Dubai. The opening, originally slated for 2026, will be delayed by a year, Wynn said in statement on Thursday.

While the government of Ras Al Khaimah hasn’t clarified what “gaming areas” refer to, there’s been speculation that the Wynn resort may signal an end to the ban on gambling, which is prohibited under Islam. The emirate’s Tourism Development Authority last year set up a unit to regulate so-called “integrated resorts,” which will include gaming facilities.

Other Middle Eastern countries such as Lebanon and Egypt have casinos that operate around the clock and offer an array of gambling machines, table games and other popular live games. Malaysia, a predominantly Muslim nation, also allows the pastime.

Wynn started construction and foundation work earlier this year on Al Marjan Island, which has 7.8 kilometers (4.85 miles) of beaches and 23 kilometers of waterfront. The resort will be the firm’s first project in the Middle East and North Africa region.

“The iconic silhouette of Wynn Al Marjan Island will transform and accelerate the emirate’s rise as a major global tourist destination, while also creating substantial value to its economy through tourism and job creation,” the company said. “The project will pave the way for the accelerated growth of allied business sectors.”

Gulf markets close mixed on economic worries; Egypt gains | Reuters

Gulf markets close mixed on economic worries; Egypt gains | Reuters

Most stock markets in the Gulf ended mixed on Thursday amid concerns around recession in the United States, with the Saudi index snapping six sessions of gains.

Saudi Arabia's benchmark index (.TASI) dropped 0.3% with Al Rajhi Bank (1120.SE) losing 1.6%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

U.S. economic growth slowed more than expected in the first quarter, despite an increase in consumer spending, and activity is set to moderate further as the effects of higher interest rates spread.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to monetary tightening in the world's largest economy.

In Abu Dhabi, the index (.FTFADGI) finished 0.8% higher.

The Abu Dhabi bourse was driven by gains in the banking sector as positive earnings improved sentiment, hinting at a solid local economy, said Ahmed Negm, Head of Market Research MENA at XS.com.

"The surge has countered the effects of declining oil prices. The main index could find some resistance if crude prices continue to retreat."

Oil prices - a key catalyst for the Gulf's financial markets - steadied after the previous day's price drop reversed the supportive impact of a surprise cut to OPEC production targets this month.

Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 2%, on broad-based gains with top lender Commercial International Bank Egypt (COMI.CA) putting on 1.9%.

According to Negm, the Egyptian stock market rebounded with local investors boosting trading volumes. The banking sector could be a driver in gains for the broader market.

"Banks could see more accommodating conditions as the country might need to continue raising interest rates to fight inflation. At the same time, retreating fears over U.S. banking woes could improve investors' appetite for risk."

Emirates Islamic reports record net profit of $163.6mln for Q1 2023

Emirates Islamic reports record net profit of $163.6mln for Q1 2023

Emirates Islamic delivered a record net profit of Dh601 million for the first three months of 2023 as total income grew 74 per cent, the bank said in a statement on Thursday.

Total income rose 74 per cent year-on-year, driven by rising core revenues as a result of improved financing and deposit mix with higher profit rates coupled with higher non funded income.

Operating profit showed an impressive growth of 103 per cent y-o-y, while net profit margin improved to 4.72 per cent.

Total assets stood at Dh77.9 billion, an increase of 4 per cent from end 2022.

Customer deposits, at Dh57.3 billion, increased 2 per cent from end 2022 with Current Account and Savings Account (CASA) balances at 75 per cent of total deposits.

#Saudi Al Rajhi Bank's Q1 2023 net profit flat at $1.10bln; misses estimate

Saudi Al Rajhi Bank's Q1 2023 net profit flat at $1.10bln; misses estimate

Al Rajhi Bank, Saudi Arabia's second-biggest lender, reported a Q1-2023 net profit of 4.14 billion riyals ($1.10 billion), flat year- on-year (YoY), as total operating expenses, including impairment charges, fell.

The result came in slightly below the mean forecast of SAR4.37 billion penciled in by analysts, according to data provider Refintiv.

Impairment charges for financing fell 38% YoY to SAR359 million from SAR 578 million, the lender said in a statement on Riyadh's Tadawul exchange on Thursday.

Financing and investment brought in SAR577 billion, 19% higher on year.

Doha Bank reports net profit of $57.41mln in Q1

Doha Bank reports net profit of $57.41mln in Q1

Doha Bank has reported a net profit of QR209mn in the first three months of this year, according to information posted on the Qatar Stock Exchange website.

Net interest income reached QR492mn, an increase of 2% compared to the fourth quarter of 2022, said Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani.

Net operating income stood at QR638mn with a marginal increase of 1% quarter-on-quarter, and has been able to manage its cost efficiently as reflected in a 2.2% year-on-year decline in total cost.

Total assets amounted to QR96.6bn at the end of March 31, 2023. Net loans and advances were QR56.6bn in the review period.

The investment portfolio was valued at QR25bn. Customer deposits stood at QR48.6bn as on March 31, 2023.

Advisory firm Ankura sets up Mid-East restructuring practice | Reuters

Advisory firm Ankura sets up Mid-East restructuring practice | Reuters

Advisory and forensic accounting firm Ankura Consulting said on Thursday it has launched a turnaround and restructuring practice for the Middle East out of its Dubai office, as it expects large deal flow in the region amid growing economic uncertainty.

Several advisory firms have recently set up or expanded restructuring operations in the region, where companies face higher borrowing costs after interest rates rose at a rapid clip amid global concerns about inflation.

Ankura's new practice will be led by Karim Labban, based in Ankura's Riyadh office that opened last year, and Geraint Thomas, based in Dubai, the firm said in a statement. Both have the title of senior managing director.

Labban was previously a turnaround and restructuring partner at Deloitte and Thomas was executive director for restructuring and turnaround at Abu Dhabi sovereign investor ADQ, according to their LinkedIn profiles.

"On the one side you have turnaround and restructuring work that is coming out of the volatility," Thomas told Reuters.

First #AbuDhabi Bank Beats Estimates as Economy Boosts Earnings - Bloomberg

First Abu Dhabi Bank Beats Estimates as Economy Boosts Earnings - Bloomberg

Two of the United Arab Emirates’ biggest banks posted a first-quarter profit that beat estimates as rising interest rates and the country’s resilient economy helped to boost business.

Profit at First Abu Dhabi Bank PJSC’s was 3.93 billion dirhams ($1.07 billion), slightly higher than the 3.21 billion dirhams analysts had expected. The number was down from a year earlier because that period included a one-time gain from the sale of a stake in its payments business. Excluding that, profit jumped 70% year-on-year, it said in a statement Thursday.

Net interest income jumped 41% and the lender said that all of its business segments grew over the period. It also attracted 80 billion dirhams of deposits during the quarter, but impairments jumped 74% to 798 million dirhams.

FAB, as the bank is known, earlier this year said it had explored a bid for Standard Chartered Plc but that it was no longer looking an offer. In the statement, Chief Executive Officer Hana Al Rostamani said the lender is looking to “shape the future of banking in the UAE and the broader region.”

Shortly afterwards, Dubai’s Emirates NBD PJSC said its first-quarter profit more than doubled to 6 billion dirhams, exceeding analysts’ expectations of 4.84 billion dirhams. Its net interest income jumped 69% to 7.2 billion dirhams, while impairments fell 66% to 500 million dirhams.

Major Gulf bourses mixed in early trade on economic worries | Reuters

Major Gulf bourses mixed in early trade on economic worries | Reuters

Major stock markets in the Gulf were mixed in early trade on Thursday as recession fears grew in United States.

U.S. consumer confidence dropped to a nine-month low in April as worries mounted, heightening the risk of the economy falling into recession this year.

Saudi Arabia's benchmark index (.TASI) dropped 0.3%, on course to snap a six days of gains, with Al Rajhi Bank (1120.SE) losing 1.7%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

Investors are also worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to monetary tightening in the world's largest economy.

In Abu Dhabi, the index (.FTFADGI) gained 0.5%.

Oil prices - a key catalyst for the Gulf's financial markets - rose slightly, finding some support after heavy losses in the previous two sessions driven by fears of a U.S. recession and an increase in Russian oil exports which dulled the impact of OPEC production cuts.

Dubai's main share index (.DFMGI) added 0.4%, with its top lender Emirates NBD (ENBD.DU) rising 1.9%.

Separately, the United Arab Emirates is selling 1.1 billion dirhams ($299.6 million) of Islamic bonds denominated for the first time in the local currency, state news agency WAM said, a move aimed at deepening the country's Islamic finance markets.

The Qatari index (.QSI) eased 0.1%, with Doha Bank (DOBK.QA) declining about 4% after posting a decline in first-quarter profit.

OPEC+ Gains Validation as Demand Woes Erase Post-Cut Rally - Bloomberg

OPEC+ Gains Validation as Demand Woes Erase Post-Cut Rally - Bloomberg

It’s starting to look like OPEC+ was right again.

Saudi Arabia and its partners provoked a backlash from the White House and beyond earlier this month when they shocked global oil markets with new output reductions. But with Brent crude sinking below $80 a barrel Wednesday — wiping out the price gains since the announcement — the group’s contention that the cuts were needed to prevent an oversupply is gaining justification.

“There is no doubt in my mind that the reasoning behind the early April announcement about cuts in May was appropriate,” said Ed Morse, head of commodities research at Citigroup Inc. “Those who were predicting over $100 oil did not understand how weak markets were looking.”

It’s reminiscent of the previous round of OPEC+ cutbacks in October — a decision that initially drew condemnation but came to appear prescient as the demand weakened and prices fell.

Mideast Stocks: Gulf markets put in mixed performance on recession fears

Mideast Stocks: Gulf markets put in mixed performance on recession fears

Stock markets in the Gulf put in a mixed performance on Wednesday amid expectations of slowing economic growth and fears of a recession in the United States.

Saudi Arabia's benchmark index was among the risers, adding 0.4% for a sixth session of gains, with Al Rajhi Bank closing 1.3% higher and Dr Sulaiman Al-Habib Medical Services up 1.7%. U.S. Consumer confidence fell to a nine-month low in April, a survey showed on Tuesday, intensifying concerns of a potential recession.

Investors are worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth and dent energy demand in the United States, Britain and the European Union. Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to monetary tightening in the world's largest economy.

In Abu Dhabi, the index rose 0.3%, with Fadi Reyad, Chief Market Analyst at CAPEX.com MENA, noting a positive trend was maintained as oil prices remained relatively stable. "The market was led by rebounds in some of its largest stocks and could continue to see a positive performance with investors' sentiment moving to the bright side after the end of Ramadan," he said.

Dubai's main share index fell 0.5%, weighed down by a 2.5% drop in blue-chip developer Emaar Properties.

The Qatari benchmark, which traded after a three session break, rose 1.4%. Outside the Gulf, Egypt's blue-chip index fell 0.4%, with top lender Commercial International Bank down more than 2%.

According to Reyad, the Egyptian bourse saw a more pronounced decline after failing to break above this year's high. "The market could come under pressure as international investors could accelerate their selling trend if global conditions continue to deteriorate, in particular, if concerns around U.S. banks' health increase."

Gulf economies to grow at much slower pace in 2023 on lower oil revenues - Reuters poll | Reuters

Gulf economies to grow at much slower pace in 2023 on lower oil revenues - Reuters poll | Reuters

Gulf Cooperation Council (GCC) economies will grow at a much slower pace in 2023 than last year as expectations for muted gains in crude prices and oil production cuts take a toll on revenues, a Reuters poll found.

Oil prices have spiked nearly 20% since they hit this year's low of about $70 a barrel on March 20, largely driven by the Organization of Petroleum Exporting Countries (OPEC+) decision to reduce oil output by about 1.16 million barrels per day and China's reopening.

But further gains will largely be subdued over the coming months on slower global demand - not good news for the bloc which is heavily dependent on oil.

Saudi Arabia, the world's largest oil producer, will expand 3.2% this year, less than half 2022's decade-high pace of 8.7%, according to the April 6-25 Reuters poll of 16 economists.

The growth rate was expected to be the same next year.

UK Convicts Couriers Who Smuggled £100 Million of Cash to #Dubai - Bloomberg

UK Convicts Couriers Who Smuggled £100 Million of Cash to Dubai - Bloomberg

A network of couriers who jointly smuggled more than £100 million ($124 million) of criminal cash in suitcases from the UK to Dubai was found guilty following a trial of one of the largest money laundering scams ever recorded.

In total 11 couriers have been convicted alongside the ringleader, the National Crime Agency said Wednesday. In less than a year, the couriers flew more than 80 flights, carrying cases full of drug money. The group communicated on a Whatsapp group called Sunshine and Lollipops.

The couriers were given business class flights to take advantage of a larger luggage allowance and check-in closer to the departure time, investigators said. Around £500,000 was crammed into suitcases that were then packed with coffee granules or sprayed with air freshener to disguise the scent from sniffer dogs.

British police have targeted London to Dubai laundering routes, concerned that criminal cash becomes much harder to trace once it’s taken out of the country. The United Arab Emirates has been in the spotlight over dirty money flows and last March, the global financial crimes watchdog placed the country on a gray list for failing to do enough to uncover illicit funds.

“These couriers were important cogs in a large money laundering wheel,” Ian Truby, the NCA’s senior investigating officer, said in a statement. “The crime group they belonged to was responsible for smuggling eye-watering amounts of criminal cash out of the UK.

Police arrested Emirati Abdullah Mohammed Ali Bin Beyat Alfalasi at an apartment belonging to his wife in London’s upmarket Mayfair district in 2021. Alfalasi offered a “money laundering service” to criminal organizations in both the UK and other European countries, prosecutors said. He was jailed for nine years and seven months.

Burj Khalifa Supplier Emirates Steel Arkan Weighs Thyssenkrupp Steel Deal - Bloomberg

Burj Khalifa Supplier Emirates Steel Arkan Weighs Thyssenkrupp Steel Deal - Bloomberg

Emirates Steel Arkan is pursuing a potential investment in Thyssenkrupp AG’s massive steel unit, with negotiations set to enter crunch time just as the German conglomerate’s incoming boss takes the reins, people with knowledge of the matter said.

The Abu Dhabi state-backed group is emerging as the most serious contender to buy a stake in the Thyssenkrupp business and could make a formal bid in the coming months, the people said, asking not to be identified because the information is private.

One option being discussed envisions Emirates Steel Arkan taking a minority stake in Thyssenkrupp Steel as part of a business partnership, some of the people said. The Middle Eastern company would produce energy-intensive products in the United Arab Emirates using renewable power before shipping them to Germany, where Thyssenkrupp could shape them into finished products for the automotive industry, according to those people.

Thyssenkrupp rose as much as 5.7% in Frankfurt, the steepest intraday gain in more than a week. The shares are up around 12% this year, valuing the company at about $4.4 billion.

#UAE Ministry of Finance to issue dirham-denominated Islamic Treasury Sukuk | Banking – Gulf News

UAE Ministry of Finance to issue dirham-denominated Islamic Treasury Sukuk | Banking – Gulf News

The UAE Ministry of Finance is launching a dirham-denominated Islamic Treasury Sukuk (T-Sukuk), with a benchmark auction size of Dh1.1 billion. The T-Sukuk will initially be issued in 2/3/5-year tenures and followed by a 10-year sukuk at a later date.

“The Ministry of Finance cooperates with all its partners - foremostly the Central Bank of the UAE - to attract investments and deploy them in Islamic economy channels," said Mohamed Bin Hadi Al Hussaini, Minister of State for Financial Affairs.

"The T-Sukuk are Sharia-compliant financial certificates, and they will be traded to reflect the local return on investment, support economic diversification and financial inclusion, as well as contribute to achieving comprehensive and sustainable economic and social development goals.”

Octopus Energy, #AbuDhabi energy firm invest in UK-Morocco power cable project | Reuters

Octopus Energy, Abu Dhabi energy firm invest in UK-Morocco power cable project | Reuters

Abu Dhabi National Energy Company PJSC (TAQA) (TAQA.AD) and Britain's Octopus Energy Group have invested 30 million pounds ($37.36 million0 into a subsea power cable project, which aims to connect Morocco and the UK, project company Xlinks said on Wednesday.

TAQA invested 25 million pounds, and Octopus 5 million in the development funding round, Xlinks said.

The company is planning to lay the world's longest high-voltage direct current (HVDC) subsea cables running more than 3,800 km (2,361 miles) below sea between the UK and Morocco, passing Portugal, Spain and France.

Major Gulf markets mixed in early trade | Reuters

Major Gulf markets mixed in early trade | Reuters

Major stock markets in the Gulf were mixed in early trade on Wednesday amid rising recession fears in the United States, with the Saudi index on course to end five-day winning streak.

U.S. Consumer confidence fell to a nine-month low in April, a survey showed, intensifying concerns of a potential recession. Asian markets remained subdued.

Saudi Arabia's benchmark index (.TASI) dropped 0.3%, on course snap a five-session gains, hit by a 1.1% drop in oil giant Saudi Aramco (2222.SE).

Dubai's main share index (.DFMGI) retreated 0.6%, weighed down by a 3.2% slide in Emaar Properties PJSC (EMAR.DU).

The United Arab Emirates needs time to demonstrate the effectiveness and enforcement of policies introduced against financial crime before it can be removed from a global watchdog's 'grey' list, the economy minister told Reuters.

In Abu Dhabi, the index (.FTFADGI) gained 0.2%.

Oil - a key catalyst for the Gulf's financial markets - rose after plunging more than 2% in the previous session as reports of falling U.S. crude oil and fuel inventories refocused investors on robust demand in the world's top oil consumer.

U.S. crude oil stocks fell by about 6.1 million barrels in the week ended April 21, according to market sources citing American Petroleum Institute (API) figures on Tuesday. Analysts had expected crude inventories to fall by about 1.5 million barrels.

The Qatari index (.QSI) - which traded after a three session break - advanced 1.3% and was on track to snap a seven-day losing streak, with Qatar Islamic Bank QPSC (QISB.QA) rising 2.2%.

Oil dips 2% on economic woes and stronger dollar | Reuters

Oil dips 2% on economic woes and stronger dollar | Reuters

Oil dropped 2% on Tuesday after two sessions of gains as deepening concerns of an economic slowdown and a stronger dollar outweighed hopes of higher Chinese demand and lower U.S. crude stocks.

Brent crude fell by $1.96, or 2.4%, to settle at $80.77 a barrel. U.S. West Texas Intermediate crude dropped $1.69, or 2.2%, to settle at $77.07. On Monday, both contracts rose by more than 1%.

U.S. consumer confidence dropped to a nine-month low in April, feeding worries about a recession the day after regional lender First Republic (FRC.N) reported a flight in deposits of more than $100 billion, stoking fears of a potential banking crisis.

#Saudi shares advance after Eid while #AbuDhabi dips on oil uncertainty | Reuters

Saudi shares advance after Eid while Abu Dhabi dips on oil uncertainty | Reuters

Saudi Arabia's stock market ended higher on Tuesday after a five session break for the Muslim festival of Eid al-Fitr, while the Abu Dhabi index, which resumed trading on Monday, closed lower.

Saudi Arabia's benchmark index (.TASI) advanced 0.9%, buoyed by a 3.9% jump in oil giant Saudi Aramco (2222.SE).

However, Sahara International Petrochemical Co (2310.SE) dropped 1.8% after a sharp decline in its quarterly profit.

In Abu Dhabi, the index (.FTFADGI) slipped 0.1%, hit by a 3.1% slide in Multiply Group (MULTIPLY.AD).

The holding company, which counts state-linked International Holding Co (IHC.AD) as a major shareholder, on Monday submitted a binding offer to acquire a majority stake in Media 247.

Farah Mourad, Senior Market Analyst of XTB MENA, said movement on the Abu Dhabi stock market was being held back by uncertainty over the direction of oil prices.

"However, the market could see some support as it awaits another initial public offering. The listing could drive liquidity and attract new investors, helping move a market that was little changed during the last few trading sessions."

Oil, a key catalyst for Gulf financial markets, slipped after two sessions of gains as uncertainty about the global economic outlook and a firmer dollar countered investor optimism about demand in China and expectations of a drop in U.S. crude inventories.

Dubai's main share index (.DFMGI) added 0.2%, helped by a 3.5% jump in toll operator Salik Co (SALIK.DU).

#UAE Says Escape From Gray Listing Hinges on Policy Effectiveness - Bloomberg video

UAE Says Escape From Gray Listing Hinges on Policy Effectiveness - Bloomberg

The United Arab Emirates needs more time to show it’s done enough to be removed from a global financial crimes watchdog’s “gray list,” a senior government official said, as the Gulf country remains under scrutiny as a haven for dubious money dealings.

A major issue left to tackle to escape the designation is “the effectiveness of the implementation,” Abdullah bin Touq Al Marri, the UAE’s minister of economy, said in an interview with Bloomberg Television on Tuesday.

“We provided a lot of our policies, a lot of our regulations, but effectiveness means that you need to enforce fines and so forth,” he said. “That will only come through time.”

Point72 Alum Scores in Bidding War for £2 Billion Payments Firm - Bloomberg

Point72 Alum Scores in Bidding War for £2 Billion Payments Firm - Bloomberg

Former Point72 Asset Management trader David Rosen has emerged as one of the biggest winners from the bidding war for Middle East credit card processor Network International Holdings Plc.

Rosen’s hedge fund Rubric Capital Management revealed in mid-March it was one of Network’s top holders with a 5% interest. News of takeover approaches came out weeks later, driving the London-listed firm’s market value up to £2.1 billion ($2.6 billion) as a buyout consortium backed by CVC Capital Partners started battling it out with Canadian giant Brookfield Asset Management Ltd.

That was a boon for New York-based Rubric, which had a position in Network for years before the public disclosure, according to people with knowledge of the matter. Shares of Network, which closed at 248 pence on the day Rubric crossed the disclosure threshold, have since jumped about 60% through this past Friday’s close as they approached the potential Brookfield bid of 400 pence per share.

Rubric sold amid the rally, offloading its position at prices ranging from 300 pence to 399 pence and had exited its investment by the end of last week, according to a series of regulatory filings.

Vodafone’s Top Backer E& Discusses Board Changes and Ups Stake - Bloomberg

Vodafone’s Top Backer E& Discusses Board Changes and Ups Stake - Bloomberg

Vodafone Group Plc’s biggest shareholder, Emirates Telecommunications Group Co., has opened talks with the troubled British telecom group to push for changes on its board.

The investor, also known as e&, began discussions with Vodafone on April 12 about the non-executive directors in order to engage “on a variety of topics,” it said in a regulatory filing late Monday. The Abu Dhabi-based company, which is majority owned by the United Arab Emirates’s sovereign wealth fund, now owns 14.6% of Vodafone, up from 14%.

Vodafone’s shares, which have been steadily declining for years, have dropped about 25% since e& announced its initial holding in May. The telecom company in December ousted Chief Executive Officer Nick Read — who struggled to appease investors with moves to streamline the business and sell assets — and the board hasn’t yet named a replacement to lead Vodafone’s turnaround.

Vodafone rose 2% to 91.51 pence at 10:30 a.m. in London trading on Tuesday.

#AbuDhabi Royal-Led Firm Ethmar to List After Capital Raise - Bloomberg

Abu Dhabi Royal-Led Firm Ethmar to List After Capital Raise - Bloomberg

Ethmar International Holding, which is led by a son of the United Arab Emirates’s ruler, is set to go public in Abu Dhabi after it raises as much as 700 million dirhams ($191 million).

EIH, an investment vehicle with dozens of subsidiaries, plans to offer investors a 13% to 15% stake through a capital raise of 600 million dirhams to 700 million dirhams, according to an investor presentation seen by Bloomberg News. It will then list on the Abu Dhabi stock exchange on May 1.

The firm, which holds more than 25 subsidiaries spanning real estate, energy, technology, health care, sports and investments, is chaired by Sheikh Hamdan bin Mohammed bin Zayed Al Nahyan, whose father is Sheikh Mohammed bin Zayed, known as MBZ.

The company, which would be valued at more than 4 billion dirhams, is planning a range of acquisitions, according to the presentation. These include one of the top three financial services companies in the UAE, one of the largest tourism firms in Abu Dhabi, an engineering and construction company and one of the largest pharmacy chains in the capital.

#Qatar's large fiscal, current-account surpluses expected to limit borrowing: EIU

Qatar's large fiscal, current-account surpluses expected to limit borrowing: EIU

Qatar's sovereign credit strengths are large fiscal and current-account surpluses, which are expected to limit borrowing, EIU said in its latest update.

Public debt has fallen sharply, to an estimated 44.4% of GDP at end-2022. High energy prices and a comfortable trade position are supporting external liquidity, and the balance-of-payments position is sound, EIU noted.

The riyal's peg to the dollar will continue to be backed by healthy foreign reserves and the huge assets of the Qatar Investment Authority (the sovereign wealth fund), the assets of which are estimated to be worth $475bn, EIU said.

The negative net foreign asset position of Qatar's banks remains large, but has shrunk over the past 12 months. The currency peg also limits overall risk.

The sector is well regulated and strong prudential indicators insulate banks from a deterioration in asset quality. The non-performing loan ratio is low, but higher interest rates pose a modest risk.

Mideast Stocks: #Saudi bourse rises as it reopens after Eid; #Dubai eases

Mideast Stocks: Saudi bourse rises as it reopens after Eid; Dubai eases

Major stock markets in the Gulf were little changed in early trade on Tuesday, with the Saudi index - which reopened after a five session break for the Muslim festival of Eid Al Fitr - on course to gain for a fifth session.

Saudi Arabia's benchmark index gained 0.3%, with Retal Urban Development Co rising 0.7% and oil giant Saudi Aramco putting on 1.2%.

Dubai's main share index eased 0.1%, hit by a 1.2% slide in Emirates Central Cooling Systems Corporation .

In Abu Dhabi, the index added 0.1%, with Abu Dhabi Ports Co advancing 2.5% after the group's Maqta Gateway acquired TTEK Inc for $26.7 million.

Oil prices - a key catalyst for the Gulf's financial markets - held steady as investors weighed strong holiday travel in China that could boost fuel demand against the prospect of rising interest rates elsewhere, slowing economic growth.

A weaker U.S. dollar can help global demand for oil by making it cheaper for holders of foreign currencies in other countries.

** Qatar was closed for a public holdiday

#Israel's sovereign wealth fund gets full-time manager | Reuters

Israel's sovereign wealth fund gets full-time manager | Reuters

The Bank of Israel on Monday named Lena Krupalnik, a veteran institutional investment manager, to oversee the country's sovereign wealth fund which was set up in 2014 following the discovery of huge natural gas deposits.

After a four-year delay due to political turmoil and a slower than expected revenue stream, the fund began operating last June once taxes on profits from natural gas and other resources had passed a 1 billion shekel ($273.6 million) required minimum.

It was managed temporarily by the central bank's head of markets.

The fund so far has accumulated 2.3 billion shekels ($629 million), the central bank said. It is forecast to grow to as much as $12 billion in the next decade and ultimately reach around $50 billion.

Israel discovered huge deposits of natural gas in the east Mediterranean a decade ago and major production began in 2013.

The wealth fund, aimed at preventing the Israeli shekel from overheating from the sudden expansion in national wealth, was set up in 2014 and was supposed to begin operating in 2018.

Mideast Stocks: #UAE bourses end higher on hope of Fed rate hike pause

Mideast Stocks: UAE bourses end higher on hope of Fed rate hike pause

Stock markets in the United Arab Emirates (UAE) ended higher on Monday on the expectation that the U.S. Federal Reserve is nearing the end of its monetary policy tightening cycle.

Investors were betting that the Fed would only raise rates one more time in its rate-hiking campaign. Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to the direct impact of monetary tightening in the world's largest economy.

Dubai's benchmark index ended its two sessions' losses, trading 0.8% higher helped by gains in all sectors. Cooling services provider Emirates Central Cooling surged 3% and tolls operator Salik gained 1.8%.

In Abu Dhabi, the index inched up 0.2%, snapping two sessions of losses, lifted by a 2.9% climb in Adnoc Gas and a gain of 2.2% in Abu Dhabi Islamic Bank. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, added 0.5%.

European, Middle Eastern & African Stocks - Bloomberg #UAE close, other #GCC markets remain closed for #Eid

European, Middle Eastern & African Stocks - Bloomberg

$34 Million for Sand? #Dubai Island Sale Sets Record for Vacant Land - Bloomberg

$34 Million for Sand? Dubai Island Sale Sets Record for Vacant Land - Bloomberg

This isn’t a spectacular mansion. It’s not a luxury penthouse or a designer apartment.

It’s a bunch of sand on an artificial island in Dubai, and it just sold on April 19 for 125 million dirhams ($34 million), setting a record in a market that continues to benefit from an influx of foreign wealth.

The 24,500-square-foot empty parcel is on the sought-after Jumeirah Bay Island, a seahorse-shaped piece of land accessible by bridge from the Dubai mainland. That works out to more than 5,000 dirhams per square foot, which the brokerage on the deal, Knight Frank, identified as a new high.

“It’s 125 million for sand,” says Andrew Cummings, head of prime residential at Knight Frank in Dubai. “Everything that’s been making the press has predominantly been spectacular villas, it’s been incredible penthouses and all this stuff. But this is just a massive record breaker for a land plot.”

World Bank debars former #Abraaj executive over fraud

World Bank debars former Abraaj executive over fraud

The World Bank has debarred a former Abraaj Group executive for two years over fraud related to a fund of the defunct private equity firm that was focused on investing in Turkey.

The Washington-based lender said Selcuk Yorgancioglu had been sanctioned over his ties to the Abraaj Turkey Fund I Project (ATFI).

As a result, Mr Yorgancioglu and any of the businesses he controls will not be eligible to participate in projects and operations financed by World Bank institutions during the two-year period.

The suspension is part of a settlement agreement that was negotiated with Mr Yorgancioglu, 55, “under which he admits responsibility for the underlying sanctionable practice and agrees to meet specified integrity compliance conditions for release from debarment”, the lender said.

It said the settlement demonstrated how the agreement and World Bank sanctions could be used to promote better business practices by people and companies engaged in private sector development projects.

Mr Yorgancioglu, who was appointed as co-chief executive in March 2018 for the restructuring process of Abraaj, declined to comment when reached by The National on Friday.

#UAE-based Network International confirms takeover offer from Canada’s Brookfield

UAE-based Network International confirms takeover offer from Canada’s Brookfield

UAE-based payments provider Network International has received a $2.7 billion takeover proposal from Brookfield Asset Management, following an offer from CVC Capital and Francisco Partners on Monday.

The London listed firm stated that it has received a highly preliminary, non-binding proposal regarding a possible cash offer of 400 pence per Network share for the entire issued and to be issued share capital of Network.

Private equity firms CVC Capital and Francisco Partners on Monday offered 387 pence per share and have until May 11 to either make a firm offer for the company or walk away.

Last year, Canada-based Brookfield bought a 60% share in the First Abu Dhabi Bank's (FAB) payments processing business, Magnati.

"The Board of Network is currently evaluating the Brookfield Proposal with its financial advisers and a further statement will be made in due course. There can be no certainty that an offer will be made by Brookfield, nor as to the terms on which any offer might be made," Network International said in a statement.

Dubai-based lender Emirates NBD holds 6% in Network International. The payments provider operates in more than 50 countries, serves more than 150,000 merchants and 200 financial institutions, whilst managing 18 million payment credentials, according to its website.

Oil rises but post weekly loss as economic uncertainty weighs | Reuters

Oil rises but post weekly loss as economic uncertainty weighs | Reuters

Oil prices edged higher on Friday on strong economic data in the euro zone and Britain, but futures fell for the week as interest rate and demand uncertainty weighed.

Brent futures settled up 56 cents at $81.66 per barrel. U.S. West Texas Intermediate crude (WTI) rose 50 cents to $77.87 per barrel.

Brent posted a weekly loss of 5.4%, while WTI fell 5.6%.

Both crude benchmarks slid by more than 2% on Thursday - to their lowest since the unexpected announcement in early April of production cuts by some OPEC countries - on recession fears and swelling U.S. gasoline inventories.

Middle East markets expected to ride out global uncertainty

Middle East markets expected to ride out global uncertainty

Observers are optimistic that the Middle Eastern markets, which had a stellar year in 2022, will yield equally promising results in 2023, based on the larger inflow of investments and companies moving into the region.

In 2022, GCC markets had a 21 per cent share of the global IPO volume, as compared to only 2 per cent in 2021, with expectations that big names will be going public this year, following in the footsteps of Emirati companies ADNOC Gas and Al Ansari Exchange, which were repeatedly over-subscribed, reflecting high demand on investments in the region.

Since the beginning of 2023, the investment world has witnessed multiple shocks, leading to markets in an almost constant state of turbulence.

Market stakeholders, including brokers, traders and companies, have centered their primary focus on central banks, especially the Federal Bank, awaiting to see if interest rates are going to rise, and if so, if they will keep increasing. The banking crisis caught everyone by surprise, and the focus of observers shifted from expecting the rise of interest rates to anticipating rate cuts since the crisis started showing ripple effects in Europe with the collapse of Credit Suisse.

Oil dips on recession fears, slower demand | Reuters

Oil dips on recession fears, slower demand | Reuters

Oil prices eased for the third straight day on Friday and looked set for a hefty weekly loss as softening U.S. economic data and a rise in U.S. gasoline inventories raised concerns about a recession and slower global oil demand.

Brent futures for June delivery were down by 30 cents, or 0.4%, at $80.80 a barrel at 0630 GMT. West Texas Intermediate crude (WTI) for June delivery fell 31 cents, or 0.4%, to $77.06 a barrel.

Both benchmarks slid by more than 2% to their lowest level since late March on Thursday amid fears of a recession, and were on track for a weekly drop of about 6%.

"Market sentiment remained bearish after the weak U.S. economic data, along with expectations of interest rate hikes, fuelling worries over a recession that could dent oil demand," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities.

"WTI is expected to trade in the $75-$80 range for the next week as investors try to figure out if U.S. gasoline demand will increase toward the summer driving season, and if China's oil demand will really pick up in the second half of the year," Kikukawa said.

#Eid Mubarak to all celebrants

 

#Saudi Telecom to Buy United Group Towers for €1.2 Billion - Bloomberg

Saudi Telecom to Buy United Group Towers for €1.2 Billion - Bloomberg

Saudi Telecom Co. agreed to buy a portfolio of tower assets from United Group for €1.22 billion ($1.3 billion) as the carrier expands in Europe.

The state-backed firm’s Tawal infrastructure arm will pay cash for a portfolio of more than 4,800 towers in Bulgaria, Croatia and Slovenia, according to a statement Thursday. Bloomberg News reported earlier that it was nearing an agreement to buy the assets from United Group, which is backed by buyout firm BC Partners.

Tawal, which is making its first foray into Europe through the acquisition, already owns more than 16,000 towers. Middle Eastern telecom operators flush with cash have recently started stepping up their overseas investments, with Emirates Telecommunications Group Co. emerging as the biggest shareholder in Vodafone Group Plc with a roughly $4 billion stake.

“We are delighted to have successfully crystallized the value of our tower assets in a deal that enables us to delever and navigate global macroeconomic pressures,” United Group Chief Executive Officer Victoriya Boklag said in the statement.

Acquisitions of digital infrastructure assets have been heating up in Europe. Vodafone and Deutsche Telekom AG both agreed to sell multibillion-dollar stakes in their tower businesses to investment firms last year, while Brookfield Asset Management Ltd. reached a deal this month to acquire data center operator Data4.

After news of the United Group divestment, the company’s euro bonds due 2026 rose the most since they were first issued. They gained 6 cents on the euro to 85 cents, according to CBBT pricing compiled by Bloomberg, and the company’s other bonds also advanced.

Goldman Sachs Group Inc. advised United Group on the transaction, which is expected to close in the second half of 2023.

What Are #SaudiArabia’s Investments? Sanabil Reveals Tiger Global, Founders Fund - Bloomberg

What Are Saudi Arabia’s Investments? Sanabil Reveals Tiger Global, Founders Fund - Bloomberg

Saudi Arabia’s portfolio of venture investments includes Tiger Global Management and Peter Thiel’s Founders Fund, recent updates to its website show.

The firms are among the roughly 50 venture capital and growth funds that Saudi Arabia’s Sanabil Investments, the venture arm of its $620 billion Public Investment Fund, has begun publishing online. It’s rare for limited partners — the investors in VC funds — to make their positions public.

The disclosure began earlier this month with about 40 firms including Andreessen Horowitz, Coatue Management, ICONIQ Capital and KKR & Co., which was first reported by The Information.

Tiger Global and Founders Fund were added in the following weeks, along with Haun Ventures and Viking Global Investors, based on a historical analysis of the fund’s website. The Sanabil website also now links to Sequoia Capital.

Kuwaiti shares up ahead of #Eid break; #Qatar falls | Reuters

Kuwaiti shares up ahead of Eid break; Qatar falls | Reuters

Kuwait's stock market (.BKP) rose on Thursday as most Gulf bourses were closed for Eid-al-fitr, while the Qatari index (.QSI) retreated.

In Bahrain, the index (.BAX) concluded 0.1% higher.

Mohammed Alardhi: the fighter pilot on taking the controls at Investcorp | Financial Times

Mohammed Alardhi: the fighter pilot on taking the controls at Investcorp | Financial Times

If you have flown a ground-hugging fighter jet at 450 knots, where the consequences of a mistake are starkly binary, most other decisions must seem mundane. 

But Mohammed Alardhi, who realised his dream of becoming a pilot and rose to be chief of the Omani Air Force, sees a link between his teenage self’s need for speed and his current role as executive chair of Investcorp, the fast-growing Bahrain-based investment manager. 

“The pushing of the envelope — that’s still what I try to do,” the 61-year-old says. “I don’t think it’s adventurous, because you don’t want to be adventurous in investing, but taking calculated risks, I guess, is something that is there and calculated risk is what also happened [when I was] 17, 18 years old in the air force.” 

Alardhi has sat at the controls of Investcorp since 2015, elevated from the board when the group’s hyperconnected, dealmaking founder Nemir Kirdar, friend of presidents, prime ministers and royals, stepped aside. But Alardhi is not alone in the cockpit. Investcorp has a separate non-executive chair of the board and two co-chief executives, who divide day-to-day oversight of global operations between them.

Singapore's CBC, #AbuDhabi's Mubadala raise $315 mln for Hasten Biopharmaceutic | Reuters

Singapore's CBC, Abu Dhabi's Mubadala raise $315 mln for Hasten Biopharmaceutic | Reuters

Singapore-based healthcare investment firm CBC Group said on Thursday that it and Abu Dhabi sovereign wealth fund, Mubadala Investment Co completed a $315 million fundraising round for Hasten Biopharmaceutic Co Ltd.

The proceeds will be used to fund future acquisitions and business development of pipeline assets, CBC said.

Most Gulf markets in red ahead of #Eid break, interest rate hike worries | Reuters

Most Gulf markets in red ahead of Eid break, interest rate hike worries | Reuters

Most stock markets in the Gulf ended lower on Wednesday in thin trade ahead of Eid al-Fitr holidays and weighed by concerns around interest rate hikes, with the Dubai index leading the losses.

The U.S. Federal Reserve is likely to have one more interest rate rise in store, Atlanta Fed President Raphael Bostic said on Tuesday, as the central bank continues to battle inflation.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Dubai's main share index (.DFMGI) declined 1.2%, dragged down by a 5.2% slide in Dubai Electricity and Water Authority (DEWAA.DU) as the stock traded ex-dividend.

In Abu Dhabi, the index (.FTFADGI) ended flat.

Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for at least three days in most Gulf countries.

The Qatari index (.QSI) fell 0.1%, declining for a sixth consecutive session, with Qatar Islamic Bank (QISB.QA) losing 2.3%.

The Qatari bourse maintained its downtrend with uncertainties around the developments in natural gas markets affecting confidence, said Ahmed Negm, head of market research MENA at XS.com.

"Investors were also concerned about the global economic developments and the resilient inflation levels in Europe. Tighter monetary policies could affect demand for energy products and the local economy."

Outside the Gulf, Egypt's blue chip index (.EGX30) finished 0.1% lower, as profit-taking continues.

According to Negm, international investors continue to drive selling pressures with these investors in particular taking a more cautious approach following global developments and local risks.

** Saudi was close for Eid

Billionaire Ray Dalio Set to Open Branch of Family Office in #AbuDhabi - Bloomberg

Billionaire Ray Dalio Set to Open Branch of Family Office in Abu Dhabi - Bloomberg

Ray Dalio is setting up a branch of his family office in Abu Dhabi, part of the hedge fund billionaire’s deeper push into the Middle East.

The Bridgewater Associates founder has cultivated a close relationship with the United Arab Emirates leadership over several decades and the new setup in the country’s capital builds upon the Dalio Family Office’s existing hubs in the US and Singapore, according to people familiar with the matter.

The new office will be located in Abu Dhabi Global Market, the international financial free zone in the emirate, which has wooed a cadre of big hedge funds, venture capital firms and crypto companies this past year.

Plans are underway to bring in a team of experienced investment professionals to lead the arm of the family office, said the people, who requested anonymity as the matter is private.

Mubadala-backed M42 buys Bridgepoint's dialysis firm Diaverum | Reuters

Mubadala-backed M42 buys Bridgepoint's dialysis firm Diaverum | Reuters

Abu Dhabi's M42, a newly created healthcare joint venture between state fund Mubadala Investment Company and artificial intelligence firm G42, is buying Bridgepoint Group's European dialysis clinic chain Diaverum.

The deal, which is expected to close this year subject to regulatory approvals, values the Sweden-based firm at about $2-$2.5 billion, a person familiar with the matter told Reuters.

It will make M42 the largest healthcare company in the Middle East, it said in a statement.

Diaverum, founded in 1991, is a multinational firm that provides renal care and operates 440 clinics in 23 countries.

Gulf investors have been eyeing opportunities in Europe and elsewhere amid global volatility, supported by proceeds from oil sales after prices last year reached their highest levels since 2008.

Mubadala and G42 said on Monday they were combining their healthcare assets into M42, which will own a large portfolio including Imperial College London Diabetes Centre, Danat Al Emarat, and HealthPoint Hospital.

Mubadala does not disclose financials related to transactions, a spokesperson said on Wednesday.

#Dubai Islamic Bank posts 12% rise in Q1 profit, beats estimate

Dubai Islamic Bank posts 12% rise in Q1 profit, beats estimate

Dubai Islamic Bank, the UAE’s largest Islamic lender, posted a 12% jump year-on-year (YoY) in its Q1 2023 net profit to 1.5 billion dirhams ($408 million), driven by higher revenues and lower impairments.

The earnings beat Refinitiv’s mean analysts’ estimate of AED 1.43 billion.

Net financing and sukuk investments came in at AED 240 billion, up 1% year-to-date with nearly AED 21 billion in new underwriting during Q1 2023 vs AED 15 billion in Q1 2022, the Dubai Financial Market-listed lender said in a statement on Wednesday.

Impairment charges fell to AED 496 million, down 24% YoY.

Net operating revenues rose 12% YoY to reach AED 2.75 billion.

Taqa raises $1.5bn from dual tranche bond to fund expansion

Taqa raises $1.5bn from dual tranche bond to fund expansion

Abu Dhabi National Energy Company, better known as Taqa, has raised an aggregate $1.5 billion through dual tranche bond issuances, including its first green bond as it continues to invest in expansion and diversify its sources of funding.

Taqa, among the largest integrated utilities in the Europe, Middle East and Africa region, raised $1 billion from its debut green bond, net proceeds of which will be used for financing, refinance and investment in green projects, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.

The 10-year senior unsecured bond maturing in April 2033, carries a coupon of 4.696 per cent.

The five-year tranche of $500 million, maturing in January 2029, was issued as conventional bonds at a coupon rate of 4.375 per cent. Taqa plans to use the proceeds of the deal for general corporate purposes, it said.

The aggregate order book of both convention and green bond issuances reached almost $15 billion, as the deal was about 10 times oversubscribed.

Russia's Gazprom sets up Middle East unit | Reuters

Russia's Gazprom sets up Middle East unit | Reuters

Russian natural gas giant Gazprom (GAZP.MM) is setting up a Middle East unit, the company said in a regulatory disclosure on Tuesday.

It did not reveal details.

Several Russian companies are shifting their business away from Europe, which introduced sanctions against Moscow over its actions in Ukraine.

Dubai, the Gulf's financial and business centre, has emerged as a refuge for Russian wealth.

#UAE property developer DAMAC sells $400 mln Islamic bond | Reuters

UAE property developer DAMAC sells $400 mln Islamic bond | Reuters

Dubai-based real estate developer DAMAC on Tuesday sold a three-year $400 million Islamic bond, or sukuk, less than initially expected, with a yield of 7.75%, a bank document showed.

The issue followed a series of investor calls and meetings that kicked off last week for a benchmark-sized sale, understood to be at least $500 million.

The company, rated BB- by S&P, priced tighter than guidance of around 7.875% released earlier as order books hit over $1.15 billion, a document from a mandated bank showed.

Amazon’s Mideast Rival Noon Cuts 10% of Jobs to Pare Costs - Bloomberg

Amazon’s Mideast Rival Noon Cuts 10% of Jobs to Pare Costs - Bloomberg

Noon, the Middle East’s answer to Amazon.com Inc., cut about 10% of its roughly 3,400-strong workforce to increase efficiency and reduce costs, according to its founder Mohamed Alabbar.

The layoffs at the Dubai-based e-commerce firm included roles in marketing and advertising, as well as in other departments, Alabbar said in an interview.

“We’ve been cutting costs and reducing staff for the past year and a half,” said Alabbar, who owns 50% of Noon, while Saudi Arabia’s sovereign wealth fund owns the other half. “We started before the big tech companies did but we’re done now.”

National Bank of #Kuwait Q1 2023 net profit up 15%

National Bank of Kuwait Q1 2023 net profit up 15%

National Bank of Kuwait (NBK), the Gulf country's largest lender, posted a net profit of 134 million dinars ($437 million) in Q1 2023, up 15% year-on-year (YoY) due to higher net interest income, that was partly offset by higher operating expenses and higher impairment charges.

The result was in line with analysts' average estimate, according to Refinitiv data.

In a regulatory statement on the Kuwait stock exchange on Tuesday, NBK said operating revenue was KWD277.9 million versus KWD234.6 million in the year-ago period.