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Vladimir Lisin has transferred his stakes in Russia’s biggest steelmaker and a rail freight operator to companies registered in Abu Dhabi, the latest example of a billionaire shifting assets to the oil-rich emirate.
The businessman, who’s worth about $23 billion according to the Bloomberg Billionaires Index, moved his stakes in Novolipetsk Steel PJSC and Freight One JSC from Cyprus to Abu Dhabi special purpose vehicles Serenity II Holdings and Nebula II Holdings, according to a person with knowledge of the matter, who asked not to be identified to discuss private information. A spokesperson for the steelmaker confirmed the information.
Much of Lisin’s fortune is derived from his 79.3% stake in Novolipetsk Steel, a publicly traded producer of the metal. He owned the shares through Fletcher Group Holdings, a Cyprus-based holding company, as of December 2022, according to the company’s website.
Russian tycoons have flocked to the United Arab Emirates following Vladimir Putin’s invasion of Ukraine, drawn by low taxes, international connectivity, and a relative openness to their wealth that stands in contrast to much of the rest of the world. Moscow-based coal producer SUEK and Zug, Switzerland-based fertilizer firm EuroChem, both founded by billionaire Andrey Melnichenko, opened local trading units in the Gulf oil exporter.
The UAE's momentum of initial public offerings will continue for a couple more years, as the country presses forward with measures to boost foreign investment and economic development that enhance its competitiveness, the chief executive of an Abu Dhabi-based securities broker has said.
The surge in IPOs has been the main catalyst supporting the performance of equity markets, and the listing of companies from diverse sectors such as utilities, logistics and health care has also added more depth, Ayman Hamed of International Securities told The National in an interview.
“If the spate of IPOs in the UAE continues the way it has … over the past few years, we will see more inflows coming in from foreign and regional institutions, and will also encourage more and more retail participation in the market,” he said.
Middle East IPOs raised more than $23 billion in 2022 from 48 listings, compared with $7.52 billion raised from 20 offerings in the previous year.
That was the highest share for the Gulf region after 2019, when Saudi Aramco went public in a $29 billion offering, the world’s largest.
Oil prices rose above $75 a barrel on Friday but were on course for a fourth consecutive quarter of losses amid concerns over sluggish global economic activity and fuel demand.
Benchmark Brent crude futures for September delivery rose 78 cents or 1.05% to stand at $75.29 at 0912 GMT. The less-traded front-month contract , which expires on Friday, was up 91 cents at $75.25.
The contract was on track for a 6% decline in the three months to the end of June, marking a fourth straight quarterly decline. Prices are at their lowest in 2 years.
U.S. West Texas Intermediate crude (WTI) rose 65 cents or 0.9% to $70.51. The contract is down 7% on a quarterly basis, its second consecutive quarterly drop.
Inflationary pressure and rising interest rates in key economies and a slower than expected recovery in Chinese manufacturing and consumption have weighed on markets in recent months.
But signs of strengthening U.S. economic activity and sharp declines in U.S. oil inventories last week offered support.
The group’s net oil export revenue rose to $888 billion in 2022, from $622 billion a year earlier, the statistical arm of the US Department of Energy has said.
“The increase in net export revenue in 2022 is mostly attributable to higher crude oil prices, and to a lesser degree to higher petroleum liquids production,” the EIA said.
Brent, the benchmark for two thirds of the world’s oil, surged to nearly $140 a barrel after Moscow’s military offensive against Ukraine began in February last year.
The international benchmark has since given all up of its gains and is now trading below $80 a barrel as Russian crude supply remains steady and economic slowdown concerns weigh on investor sentiment.
Saudi venture capital company Falak Investment Hub is seeking to grow its start-up funding base in line with the kingdom's ambitions to position itself as a hub for emerging technology companies, its chief executive has said.
The Riyadh-based company has helped businesses to raise more than 400 million Saudi riyals ($107 million), largely through a network of angel investors, Adwa Al Dakheel told The National in an interview.
This is on top of the 20 million riyals that Falak has invested to help accelerate the development of start-ups, which it also plans to boost by seeking the right partnerships, she said.
Falak, which has introduced more than 100 start-ups into the Saudi ecosystem since it started in 2018, is implementing a core strategy of increasing the know-how of angel investors so they can add more value when they invest in a company, Ms Al Dakheel said.
Unemployment among Saudi citizens increased to 8.5% in the first quarter of 2023, compared to 8% in the fourth quarter of 2022, the Saudi general authority for Statistics said on Thursday.
Julius Baer is expanding its crypto wealth management services in Dubai, marking the firm’s first major digital-assets push beyond the borders of its native Switzerland.
The Swiss private bank’s Middle Eastern subsidiary JBME will apply imminently for “a digital assets license variation” on top of its existing permissions with the Dubai Financial Services Authority, it said in a statement, which would allow the company to arrange and provide advice and custodial services on digital assets like Bitcoin, Ether and other cryptocurrencies.
Julius Baer views the United Arab Emirates as a “key geography,” the bank’s head of digital assets development Jonathan Hayes said in an interview, citing increased economic development in the region.
In Switzerland where the bulk of its crypto activity sits, Julius Baer recently began offering so-called lombard lending to select crypto clients, Hayes said, allowing customers to borrow against digital assets custodied with the bank. One of the first private banks to launch such a service for crypto, the bespoke offering is presently limited to those with diversified portfolios that also include traditional assets.
OPEC has canceled accreditation for reporters from three major news organizations to cover a conference in Vienna that will feature the head of BP Plc and the European Union’s top energy official.
“We are very concerned by the prospect of OPEC excluding certain journalists, including from Bloomberg, from next week’s seminar,” Bloomberg News said in a statement. “For the sake of market transparency, we strongly advocate for OPEC to allow journalists from relevant global news outlets to attend.”
Reuters and the Wall Street Journal have also had their accreditations withdrawn, according to people familiar with the situation. Reuters and the WSJ had no immediate comment.
The Organization of Petroleum Exporting Countries, which together with allies in the wider OPEC+ coalition sets oil production policy for 23 countries, is gathering for a seminar at the state-owned Hofburg palace in Vienna on July 5-6.
Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman earlier this month outlined one of the biggest reforms at OPEC in recent years and presented it as a reward for countries that invest in their oil industry.
The change clears the way for giving larger production quotas to OPEC Gulf members such as Saudi Arabia, the United Arab Emirates and Kuwait at the expense of African nations such as Nigeria and Angola.
Production quotas and baselines, from which production cuts are calculated, have been a sensitive subject within OPEC for decades as most producers want a higher quota so they can earn more from oil exports.
The shake-up is likely to become more extreme in the next few years as Middle Eastern state oil majors ramp up investments while production falls in African nations that have struggled to attract foreign investment.
Gulf producers, the holders of the little spare capacity in the global oil market, have long dominated OPEC.
Their power and influence has already increased in the last 15 years with their rising capacity, while African production has fallen as foreign investments have shrunk.
Saudi Arabia has been spending hundreds of millions of dollars snapping up international soccer stars in recent months, including legendary players like Cristiano Ronaldo and Karim Benzema, to boost the rosters of its Saudi Pro League. It's not the first time we've seen a country spend a lot of money to try to build up a domestic sports league, but it does have some key differences to previous attempts like we've seen in China, or in the US with Major League Soccer. For a start, the kingdom is spending a lot of money, opening up thorny questions about competition worldwide and Financial Fair Play rules in Europe, specifically. More importantly, it's also doing this at a governmental scale, with the kingdom's sovereign wealth fund and state-owned oil giant taking active roles. So what exactly is Saudi Arabia trying to accomplish and will it succeed? And what does this huge influx of money mean for soccer in the rest of the world? On this episode, we speak with Michael Caley and Mike Goodman, co-hosts of the Double Pivot Podcast, to discuss the big business of football and why turning a profit is not always the primary goal.
When Saudi Arabia needs to quickly convince the oil market that supply is tightening, putting upward pressure on prices, nothing beats reducing its crude exports into the US.
Riyadh has promised to slash oil production next month by 10%, a unilateral cut that would reduce output to just 9 million barrels a day, the lowest since 2011 — save for brief disruptions from Covid and the Yemeni attack on its facilities. Crucially, as important as the cut itself, is where it’s going to be felt: The signals point to the US and Europe.
Focusing on the US would telegraph the reduction clearly to traders. Fluctuations in American crude imports, and ultimately, oil stockpiles have an outsize impact because Washington publishes the data weekly. In other regions, traders only get official figures on a monthly basis, or sometimes not at all, as in China and India.
It’s a tactic that Saudi Arabia used to great effect six years ago when the kingdom targeted American buyers to rewrite the market’s narrative. "Exports to the US will drop measurably," Saudi Energy Minister Khalid Al-Falih said in May 2017 after an OPEC+ meeting. By July, Saudi oil shipments to America had fallen to a 30-year low. The price of West Texas Intermediate, an oil benchmark, rose 20% from the day Al-Falih spoke to the end of the year.
Peninsula Real Estate is facing delays to its planned Abu Dhabi initial public offering as it hasn’t secured regulatory approval yet, according to people familiar with the matter.
Peninsula had been targeting a $550 million listing in the first half of the year but the deal is now more likely to take place later in 2023, the people said, asking not to be identified as the information isn’t public. The firm is working through requests from the United Arab Emirates’s securities regulator, they said.
The UAE’s Securities and Commodities Authority has asked Peninsula to change its legal structure and become a real estate investment trust ahead of the IPO, the people said. Peninsula had originally planned to turn into a REIT after the listing, they said.
“Peninsula has constructed a high quality and diversified commercial real estate portfolio that centers on the robust market of the UAE,” a representative for the firm said. “Achieving the company’s goals includes taking advantage of the progressive regulations of the Securities and Commodities Authority to ensure adherence to global best practices.”
The SCA wasn’t immediately available for comment.
The real estate investment company has secured a number of investments ahead of the planned IPO, including from Abu Dhabi’s Yas Holding LLC and New York-based Fortinbras Enterprises. No value was provided for either of the deals.
Peninsula initially considered listing a real estate investment trust in London, but abandoned that plan in favor of an Abu Dhabi offering — attracted by initiatives including a dedicated IPO fund and by the strength of the local market. The firm also has a partnership with the Abu Dhabi Investment Office.
The company is working with Emirates NBD PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley on the share sale, Bloomberg reported last year.
Abu Dhabi's stock market ended lower on Monday ahead of Eid-Al-Adha, while the Egyptian bourse rebounded a day after it fell more than 2%.
Abu Dhabi's main share index (.FTFADGI) eased 0.3% and the Egyptian index (.EGX30) was up 2.2%.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Qatar and at least three days in other Gulf countries.
Abu Dhabi’s gross domestic product (GDP) grew by 3.9% year-on-year (YoY) in the first quarter of 2023, driven by the strong performance of non-oil economic activities, estimates released by the Statistics Centre – Abu Dhabi (SCAD) showed on Monday.
Non-oil GDP grew by 6.1% YoY during the first three months, driven by remarkable performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services sectors.
According to SCAD estimates, the non-oil GDP (at constant prices) exceeded the highest quarterly value of the past nine years, reaching AED 146 billion in the first quarter of 2023, compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion.
The outstanding growth took the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8% despite mounting challenges in the global landscape.
Switzerland’s Bank Syz hired former Goldman Sachs Group Inc. executive Gabriel Aractingi to spearhead the wealth manager’s push into the Middle East.
A veteran of private banking in the Middle East, Aractingi will join Syz as managing partner and head of its operations in the region. He will be based in Geneva and will focus on expanding the business in Saudi Arabia, the United Arab Emirates and Turkey, according to a statement.
The Middle East is emerging as one of the world’s key battle grounds for global wealth managers. Leading players from Goldman to Deutsche Bank AG have all earmarked the region, which is home to a growing number of ultra-rich families, royals and entrepreneurs, for future growth.
Co-founded by Eric Syz in 1996, Bank Syz now has about 23 billion Swiss francs ($25.6 billion) of assets under management. In recent years, the bank has made several hires including former UBS Group AG and Pictet & Co. executives and it recently opened an office in Uruguay.
Aractingi left Goldman Sachs earlier this year after two years with the Wall Street firm. He was previously head of UBS Group AG’s global family office for the Middle East and North Africa and was Morgan Stanley’s chief executive officer in Saudi Arabia.
Aston Martin Lagonda Global Holdings Plc is tying up with Lucid Group Inc. on electric vehicle technology, uniting the storied British carmaker and relative automotive newcomer both backed by Saudi Arabia’s sovereign wealth fund.
Aston Martin will issue new shares to Lucid and make cash payments totaling $232 million in exchange for battery-electric powertrain components, the companies said Monday. The UK manufacturer also extended a years-long cooperation with Mercedes-Benz Group AG, though it will no longer issue more stock to the German carmaker that already owns a roughly 9% stake.
The announcements sent Aston Martin shares soaring as much as 15%, their biggest intraday jump in over a month, while Lucid advanced as much as 9.1% in premarket US trading.
“The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin,” Chairman Lawrence Stroll said in a statement.
Stroll, 63, is three years into an effort to turn around the 110-year-old British manufacturer with a long history of financial trouble. Aston Martin has needed several capital raises since he rescued the company in early 2020, the most recent of which made China’s Zhejiang Geely Holding Group Co. and Saudi Arabia’s Public Investment Fund major shareholders.
The Public Investment Fund, or PIF, owns about 49% of Lucid and 18% of Aston Martin, according to data compiled by Bloomberg.
Global oil market fundamentals are expected to remain sound for the rest of the year, underpinned by healthy demand in developing countries, especially in China and India, Saudi Aramco CEO Amin Nasser said on Monday.
"Overall, we believe that oil market fundamentals remain generally sound for the rest of the year," Nasser told the Energy Asia conference, hosted by Malaysia's state oil firm Petronas.
"Despite the recession risks in several OECD countries, the economies of developing countries – especially China and India – are driving healthy oil demand growth of more than 2 million barrels per day this year," he said.
Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth, he added.
Brent crude futures are down about 14% since the start of the year as rising interest rates hit investor appetite while China's promising economic recovery has faltered after several months of softer-than-expected consumption, production and property market data.
Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting production cuts by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries.
A flurry in dealmaking by Saudi Arabia is attracting some of the biggest names in the legal sector to the Gulf state, as it seeks to compensate for a decline in M&A activity in Europe and the United States.
Kirkland & Ellis, the world’s largest law firm by revenue, said it was “actively considering” its options in Riyadh, which it described as “an important market for international business and one of the world’s fastest-growing economies”.
It would join US firms Latham and Watkins, Greenberg Traurig and Squire Patton Boggs in flocking to the world’s largest oil exporter, alongside Dentons and UK-based Clifford Chance and Herbert Smith Freehills.
The move comes after Saudi Arabia’s government changed its laws to allow foreign firms to apply for licences to set up shop locally, rather than relying on partnerships with existing groups in the Kingdom.
Most stock markets in the Middle East ended lower on Sunday ahead of Eid-Al-Adha, with the Egyptian bourse underperforming the region.
The benchmark index (.EGX30) was down 2.4% while the Omani market (.MSX30) bucked the trend to finish with a 0.3% gain.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Qatar and at least three days in other Gulf countries.
Stock markets in the United Arab Emirates (UAE) closed higher on Friday as investors appeared to shrug off a fall in oil prices amid concerns over weak global economic growth and more aggressive interest rates hikes.
U.S. Federal Reserve Chair Jerome Powell said on Thursday the central bank would move interest rates at a "careful pace" as policymakers edge towards a stopping point for their historic round of monetary policy tightening.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by the United Arab Emirates, Saudi Arabia and Qatar.
Meanwhile, crude oil prices, a major driver for Gulf economies, fell for a second day on Friday and were heading for a weekly decline, as Brent crude slipped 91 cents, or 1.2%, to $73.23 a barrel by 1110 GMT.
In Dubai, the benchmark index (.DFMGI) gained 0.4% on the back of a 1.9% rise in Dubai Electricity and Water Authority (DEWAA.DU) and a 1.1% lift in Emirates NBD Bank (ENBD.DU), Dubai's largest lender.
Blue-chip developer Emaar Properties (EMAR.DU) was up 0.8%.
The Dubai index posted a marginal weekly gain of 0.1%, as it extended gains to a third weekly session.
Abu Dhabi's index (.FTFADGI) rose 0.3%, its sixth positive session in a row, bolstered by a more than 1% hike in the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 3.1% jump in Alpha Dhabi Holding (ALPHADHABI.AD).
In a first for US sports, Qatar’s sovereign wealth fund has struck a deal to buy a stake in a company that owns a trio of franchises, including the National Basketball League’s Washington Wizards, according to a person familiar with the situation.
The Qatar Investment Authority plans to acquire 5% of Monumental Sports and Entertainment, according to the person, who asked not to be identified because negotiations were private. Sportico reported the deal earlier and said the transaction would value Monumental, which also owns the National Hockey League’s Washington Capitals and the Women’s National Basketball Association’s Washington Mystics, at about $4 billion.
NHL owners have already approved the transaction, but the NBA Board of Directors must vote on it, the website said. A spokesperson for Monumental declined to comment.
The investment by QIA underscores the ambitions of Gulf states to buy into the world’s most prestigious sports leagues. It’s seen as a potentially profitable investment that can offer autocratic governments an opportunity to launder their reputations through what’s known as sports-washing.
If you’re in the market for a new job, you’ll find the most competition in the Middle East and California’s tech hubs.
Doha, Dubai and San Francisco are among the places that had the highest number of candidates per LinkedIn job posting in February, according to a study from online resume builder Resume.io. To create its ranking, the company looked at 130 global cities and every US state and tracked how many applications were submitted to roles in the first week after they were advertised.
Qatar’s dominance on the list is likely related to hosting the World Cup last year. Since 2010, the country has spent more than $250 billion as part of the preparations — constructing almost 100 new hotels, expanding its port and airport and revamping its roads, among other things.
Though the tournament brought the country’s labor practices into focus, leading to widespread criticism over its treatment of migrant workers, Qatar is still a magnet for job seekers. The average job post there racked up 399 applicants in February, the Resume.io study shows. Qatar created a universal minimum wage in the midst of the World Cup worker furor and it doesn’t tax personal income, making it a relatively lucrative place to work.
Workers in Dubai and Abu Dhabi, which are also among the most competitive job markets, don’t pay income tax, either. Some positions driving the post-pandemic job market in the United Arab Emirates include specialized medical roles and freelance digital content work, according to LinkedIn data.
The German plastics firm told Adnoc Chief Executive Officer Sultan Al Jaber in a letter Thursday that the proposed valuation doesn’t provide ground for further talks, according to the people, who asked not to be identified discussing confidential information. It also raised the question of whether Adnoc would be the best owner for some of Covestro’s assets, they said.
Covestro could be open to discussing a deal if it were offered better terms, the people said. In a recent meeting with Covestro leadership, Al Jaber had proposed a potential bid in the mid-€50s per share, which would value the company at nearly €11 billion ($12 billion), people with knowledge of the matter have said.
A bid of roughly €55 per share would be almost 40% above Covestro’s recent trading price, in line with the premiums typically offered for listed German companies. Still, refusing a first offer isn’t unusual. Some research analysts have given the company a target price as high as €64, data compiled by Bloomberg show.
Major stock markets in the Gulf ended lower on Thursday as investors remained cautious amid falling oil prices and U.S. Federal Reserve Chair Jerome Powell's hawkish tone on rates.
Crude oil prices - a key catalyst for the Gulf's financial markets - dropped on Thursday with Brent crude down 2.4% at $75.21 a barrel at 1314 GMT.
In Qatar, the benchmark index (.QSI) slumped 1.3%, extending losses to a third straight session with most sectors in the red.
The index was dragged down by a 5% decline in Qatar Aluminum Manufacturing Company (QAMC.QA) and 2.4% drop in Estithmar Holding (IGRD.QA) .
Among the losers, the region's largest lender Qatar National Bank (QNBK.QA) and Masraf Al Rayan (MARK.QA) lost 2.5% and 1.3% respectively.
Dubai's benchmark index (.DFMGI) eased 0.2%, weighed down by a 3.5% decline in Mashreqbank (MASB.DU) and a 2% drop in low- cost flyer Air Arabia (AIRA.DU).
The emirate's largest lender Emirates NBD (ENBD.DU) lost 0.7%.
Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Alinma Bank (1150.SE) dropping 1.5% and Almarai Co (2280.SE) sliding 2.3%.
Elsewhere, First Milling Co (2283.SE), which rose as much as 30%, closed 17.5% higher in debut trade.
In Abu Dhabi, the index (.FTFADGI) continued its gains for a fifth consecutive session, ending 0.4% higher.
The conglomerate International Holding (IHC.AD) rose 0.5% and its subsidiary Alpha Dhabi Holding (ALPHADHABI.AD) jumped 10.5%, the sharpest intraday rise since November.
However, the United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD) dropped 1.5%.
Fed chair Powell in his remarks to lawmakers in Washington said the outlook for two further 25-basis-point (bps) rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30) snapped a three-session losing streak and rose marginally with Sidi Kerir Petrochemicals gaining 1.7% and Qalaa Holdings (CCAP.CA) surging 7.2%.
However, Commercial International Bank (COMI.CA) and E-Finance(EFIH.CA) lost 0.6% and 1.5% respectively.
Separately, the Central Bank of Egypt (CBE) is expected to leave its overnight interest rates unchanged on Thursday.
Abu Dhabi National Oil Company (ADNOC) and Abu Dhabi artificial intelligence company G42 are having early discussions about a possible flotation of their joint venture technology firm AIQ, two sources with knowledge of the matter told Reuters.
AIQ, which is 60% owned by ADNOC and 40% by G42, uses artificial intelligence and machine learning to optimise processes, improve planning and increase profitability for ADNOC and the wider oil and gas industry.
The company is being considered for a possible initial public offering at the end of the year, said the sources, declining to be named as the matter is not public.
AIQ's owners are in the process of discussing whether to position the deal as an international transaction, or market the offering exclusively to the domestic investors, they said.
Two top Turkish economic officials are visiting the United Arab Emirates in their first trip abroad since joining President Recep Tayyip Erdogan’s revamped cabinet last month, as the government looks for more foreign cash.
Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek are set to meet UAE’s President Sheikh Mohamed bin Zayed Al Nahyan in the capital Abu Dhabi, according to people familiar with the matter, who asked not to be named as they aren’t authorized to speak publicly.
The purpose of the visit is to discuss economic cooperation between the two countries, Turkey’s state Anadolu Agency reported.
As Turkey turns the page on years of unconventional policies, it needs the financial backing of key allies as its $900 billion economy comes under strain. On Thursday, the central bank is poised take the biggest step yet in a return to economic orthodoxy by raising interest rates for the first time in over two years.
The outreach to the UAE underscores the improvement in relations between two traditional foes that previously clashed over a range of issues.
On Dubai’s manmade island of Palm Jumeirah, soaring laser beams signal the latest outsized construction project getting started. At 71 stories high and with 76 penthouses, Como Residences will be the archipelago’s highest structure — with the cheapest unit priced at 21 million dirhams ($5.7 million).
A short drive down the city’s main highway, Emirati tycoon Khalaf Ahmad Al Habtoor is starting work on a housing complex that’ll add more than 1,700 homes in a single development. It’s a trend on show just about everywhere in the emirate — builders revving their engines in what’s expected to be the strongest construction cycle since 2017.
Long known for sharp booms and busts, Dubai had one of its most dramatic downturns in 2008, when a debt fueled real estate crash left some of its biggest developers teetering on the brink of bankruptcy. The Arab Spring sweeping the Middle East revived the market in 2011 as capital from Arab nations sought safety in Dubai. But the tides quickly turned in 2014 as a collapse in oil prices sent the residential property market on a seven-year downturn.
This time round developers are hedging their bets more, demanding upfront payments covering most of the property even before construction begins. The cash coming in from wealthy investors around the world is giving the emirate’s real estate market a big cushion and reducing the need for debt — but it also leaves buyers holding more of the risk.
Bahrain's state investment fund Mumtalakat is buying preference shares and warrants worth 400 million pounds ($510.48 million) in carmaker McLaren from Saudi Arabia's Public Investment Fund (PIF) and Ares Management (ARES.N), Sky News reported on Wednesday.
The transaction will not lead to any new money being injected into McLaren, the Sky News report said, adding that an announcement from Mumtalakat on the deal will come on Thursday.
The purchase will expand Mumtalakat's majority stake in McLaren group, which includes the British supercar maker as well as McLaren Racing.
In July 2021, global investment firm Ares Management and Saudi's PIF provided much of a 550 million-pound equity investment in the McLaren group.
Bahrain's sovereign wealth fund could not be reached for comment. Ares Management declined to comment, while McLaren and the PIF did not immediately respond.
Most Gulf stock markets were subdued in early trade on Thursday amid falling oil prices and following U.S. Federal Reserve Chair Jerome Powell's hawkish tone on rates.
Powell in his remarks to lawmakers in Washington on Wednesday said the outlook for two further 25-basis-point (bps) rate increases are "a pretty good guess" of where the central bank is heading if the economy continues in its current direction.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
In Qatar, the benchmark index (.QSI) slumped 1.1%, with most sectors trading in the red, with region's largest lender Qatar National Bank (QNBK.QA) dropping 2.1% and Masraf Al Rayan (MARK.QA) sliding 1.1%.
Dubai's benchmark stock index (.DFMGI) eased 0.1%, with Emaar Properties (EMAR.DU) falling 0.3% and National Central Cooling (TABR.DU) shedding 1%.
Saudi Arabia's benchmark stock index (.TASI) slipped 0.1%, dragged down by losses in finance and energy sectors, with National Shipping Company (4030.SE) dropping 2% and Jabal Omar (4250.SE) falling 0.8%.
The world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE) and oil company Saudi Aramco (2222.SE) lost 0.4% and 0.3% respectively.
Elsewhere, shares of First Milling Co (2283.SE) shot up as much as 30% to 78 riyals per share in its market debut from an offer price of 60 riyals per share.
Crude oil prices - a key catalyst for the Gulf's financial markets - dipped on Thursday with Brent crude down 0.4% at $76.780 a barrel at 0800 GMT.
In Abu Dhabi, the benchmark stock index (.FTFADGI) gained only marginally, helped by a 2.8% rise in Alpha Dhabi Holding (ALPHADHABI.AD) and 0.9% gain in Q Holding (QHOLDING.AD).
But the United Arab Emirates largest lender First Abu Dhabi Bank (FAB.AD) lost 0.7%.
Stock offerings in Saudi Arabia look set to pick up pace after slowing in the first half of the year, with two new deals for an oil driller backed by the kingdom’s sovereign wealth fund and an air cargo business being given regulatory approval.
Ades Holding, the oil and gas driller backed by the Public Investment Fund, and SAL Saudi Logistics, were both granted approval to sell 30% stakes to the public, the kingdom’s Capital Market Authority said Wednesday. The Ades deal could raise about $1 billion, making it one of the largest Saudi offerings of the year.
Typically one of the biggest and busiest listings markets in the Persian Gulf, Saudi Arabia has recently been more subdued after its stock market slumped last year. However, a 10% rally in the Tadawul All Share Index since the start of the year coupled with a number of debuts this week have shown that investor appetite for offerings is still strong.
Several other large share sales are also in the works though without a clear timeline yet, including a potential secondary offering of Saudi Aramco and a listing of its trading business.
Most stock markets in the Gulf gained on Wednesday as investors shrugged off fears of hawkish signals from U.S. Federal Reserve Chair Jerome Powell's congressional testimony.
Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Markets expect around a 78% chance of a hike to 5.25-5.5% next month, with that likely being the end of the entire tightening cycle.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark index (.TASI) inched up 0.3%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 1.3% and Company for Cooperative Insurance (8010.SE) climbing 3.9%.
Elsewhere, Morabaha Marina Financing Co (4082.SE), which rose as much as 20.5%, closed 2.3% higher in debut trade.
In Abu Dhabi, the index (.FTFADGI) advanced for a fourth consecutive session, up 0.3%, buoyed by a 2.1% rise in First Abu Dhabi Bank (FAB.AD), the largest lender in UAE.
Among the winners, Abu Dhabi Ship Building (ADSB.AD) gained 1.2% and Abu Dhabi National Energy (TAQA.AD) (TAQA) added 0.9%.
TAQA, the UAE's biggest power producer, said on Wednesday it plans to buy SWS Holding for 1.7 billion dirhams ($462.91 million).
Dubai's benchmark index (.DFMGI) snapped two-session losses, ending 0.2% higher. The index was helped by a 1.2% gain in Emaar Properties (EMAR.DU) and a 2.1% advance in low-cost flyer Air Arabia (AIRA.DU).
Dubai's largest lender Emirates NBD (ENBD.DU) added 0.7%.
In Qatar, the benchmark index (.QSI) lost for a second straight session, ending 0.2% lower. A 0.6% decline in Qatar National Bank (QNBK.QA), the region's largest lender, and a 1% drop in Qatar Islamic Bank (QISB.QA) weighed on the index.
The Qatari bourse remained under pressure and could test this month's lows, said George Pavel, general manager at Capex.com.
"The natural gas market's developments are also leaving the Qatari market without strong support."
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped for a third consecutive session, closing 1.2% lower, with all the sectors in the red.
Commercial International Bank (COMI.CA) and Abu Qir Fertilizers and Chemical Industries (ABUK.CA) slipped 0.7% and 2.8%, respectively. Eastern Co (EAST.CA) dropped 1.8%.
Separately, the Central Bank of Egypt is expected to leave its overnight interest rates unchanged on Thursday, a Reuters poll showed on Monday.
Middle Eastern state firms are becoming increasingly ambitious as they scour the globe for acquisitions, targeting everything from a top European plastics producer to major mining operations.
In just the last 24 hours, news of nearly $20 billion in potential deals has emerged. Abu Dhabi energy giant Adnoc made a preliminary approach for German chemical producer Covestro AG, Bloomberg News reported Tuesday, triggering a record jump in the stock. It’s considering an offer that could value the business at almost €11 billion ($12 billion) and rank as its biggest-ever overseas takeover.
Saudi Arabia’s sovereign fund is in advanced talks to buy a roughly $2.5 billion stake in Vale SA’s base metal unit, people with knowledge of the matter said. It’s part of a plan by the country to snap up minority stakes in a range of iron ore, copper, nickel and lithium assets globally.
Chinese electric vehicle brand Nio Inc. said Tuesday it’s sealed a $739 million investment from an arm of the Abu Dhabi government. Meanwhile, Abu Dhabi wealth fund ADQ made an aborted attempt in recent months to buy Lazard Ltd., according to people with knowledge of the matter.
Top Persian Gulf countries are keen to take advantage of the recent period of higher crude prices to acquire assets internationally and further diversify their economies. The spending spree has ranged from industrial and financial assets to natural resources and renewables to sports and entertainment.
Brevan Howard Asset Management co-founder Trifon Natsis has relocated to Abu Dhabi as part of the company’s plans to expand in the United Arab Emirates, which is fast becoming a major hub for hedge funds.
The Jersey, Channel Islands-based investment firm, best known for macro trading and a recent push into digital assets, has also moved portfolio manager Mitesh Gupta to its new outpost in the UAE capital, according to people with knowledge of the matter.
The firm is sounding out other employees from trading, risk, sales and marketing about moving to the region where it eventually plans to have about 100 people, the people said, asking not to be identified because the details are private.
A spokesman for Brevan Howard declined to comment.
The move follows efforts by Abu Dhabi, whose sovereign wealth funds oversee some $1.5 trillion, to draw in more international foreign money and financial firms. Ray Dalio is setting up a branch of his family office in Abu Dhabi Global Market, the emirate’s international financial free zone, which has wooed a cadre of big hedge funds, venture capital firms and crypto companies this past year. In May, Abu Dhabi said it plans to expand ADGM tenfold to make it one of the world’s largest financial districts.
The UAE is already home to a number of alternative investors. Izzy Englander’s Millennium Management has more than two dozen people working for him in Dubai, while Michael Gelband’s ExodusPoint, one of the largest multi-strategy hedge funds, is expanding in the city. Michael Platt’s private investment firm BlueCrest Capital Management is also building a presence.
Over the past year, the oil-rich emirate of Abu Dhabi has explored a string of ambitious acquisitions in the international banking sector in an attempt to become a global financial powerhouse. None have panned out so far.
The Abu Dhabi wealth fund ADQ held preliminary talks to acquire boutique investment bank Lazard Ltd. at the start of the year, according to people familiar with the matter. The discussions quickly fell apart over differences about the future independence of the 175-year old Wall Street firm, the people said, asking not to be identified because the discussions are private.
Around the same time, First Abu Dhabi Bank PJSC was said to weigh an offer of as much as $35 billion for Britain’s Standard Chartered Plc. It had tried to buy Egypt’s biggest investment bank in 2022. Neither of those deals materialized.
Royal Group, chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, considered a possible takeover of the UK arm of Silicon Valley Bank following its collapse, people familiar with the matter said in March. The unit was ultimately purchased by HSBC Holdings Plc for £1 ($1.3).
Abu Dhabi has succeeded in pulling off some niche deals in the financial industry, but there’s no sense that it is likely to stop looking for a big deal. The emirate manages about $1.5 trillion of sovereign wealth and is also home to funds such as the Abu Dhabi Investment Authority and Mubadala Investment Co. The expansion is being driven by the ambition of the ruling Al Nahyan family — and in particular Sheikh Tahnoon — to win more global heft for the emirate, as well as the need to find new avenues for its banking sector to grow.
With 50 listed companies and a market capitalisation expressed as part of the GDP at 65%, the Qatar Stock Exchange (QSE) has experienced significant growth in the last three years in terms of IPOs, reflecting the market’s increasing appeal to issuers and investors.
On Tuesday, the QSE launched a high-performing trading platform that aligns with the advanced financial market technologies utilised by the London Stock Exchange Group (LSEG). In an exclusive interview with Zawya, acting CEO Abdulaziz Nasser al-Emadi talks about QSE's road ahead, its IPO pipeline and the crucial role the stock exchange plays in developing Qatar’s economy.
How does the QSE’s current growth compare to that recorded over the last three years?
In total, the QSE has seen five new listings within the last three years, showcasing a positive trend in its expansion.
Between 2021 and 2023, the QSE welcomed new listings with a total market cap of about QAR 21 billion ($5.75 billion), including QLM Life & Medical Insurance, Beema, Dukhan Bank, Mekdam, and Al Faleh Group. These additions broadened the range of sectors represented on the exchange and contributed to its diversification.
Most stock markets in the Gulf fell in early trade on Wednesday as investors remained cautious ahead of U.S. Federal Reserve Chair Jerome Powell's congressional testimony.
Powell is scheduled to deliver congressional testimonies on monetary policy on Wednesday and Thursday. Markets expect around a 78% chance of a hike to 5.25-5.5% next month, with that likely to be the end of the monetary policy tightening cycle.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
In Qatar, the benchmark share index (.QSI) fell 0.4%, with most sectors trading in the red. Shares of Doha Bank (DOBK.QA) and Qatar International Islamic Bank (QIIB.QA) slid 2.9% and 1.1% respectively.
The region's largest lender Qatar National Bank (QNBK.QA) lost 0.8%.
Dubai's benchmark stock index (.DFMGI) eased 0.3%, weighed down by losses in finance, industry and utilities sectors, with Emaar Properties shares (EMAR.DU) falling 0.5% and Dubai Electricity and Water Authority (DEWAA.DU) down 0.8%.
Saudi Arabia's benchmark stock index (.TASI) slipped 0.1%, dragged down by losses in finance and health care sectors with Riyad Bank (1010.SE) falling 1.1% and Banque Saudi Fransi (1050.SE) 1.4% lower.
Shares in the world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE) lost 0.5%.
Still, shares of Morabaha Marina Financing Co shot up as much as 20% to 17.6 riyals in its market debut from an offer price of 14.6 riyals per share.
In Abu Dhabi, the benchmark stock index (.FTFADGI) was up 0.1%, helped by a 2.1% rise in Q Holding (QHOLDING.AD) and 1.6% gain in ADNOC Gas (ADNOCGAS.AD).
Separately, Abu Dhabi National Oil Company (ADNOC), the parent company of ADNOC Gas, has approached German plastics and chemicals maker Covestro with a takeover proposal valuing the company at more than 10 billion euros ($10.9 billion), Reuters reported on June 20.
As the deafening roar of an F35 fighter jet washes over the Paris air show, Tony Douglas allows himself a moment of nostalgia: he was formerly responsible for the UK government agency charged with buying the planes.
Now he is in charge of a different aviation proposition, leading the launch of a new commercial airline belonging to the Saudi Arabian state.
Riyadh Air, owned by the country’s Public Investment Fund, was first revealed in March alongside a provisional order for up to 72 Boeing 787 aeroplanes.
Now its full launch comes as the global aviation industry races to meet resurgent demand for air travel after the end of coronavirus pandemic lockdowns.
The carrier is this week showing its new purple livery – on a Boeing 787-9 Dreamliner – to the industry at the Paris air show, after making its debut last week in the Saudi capital, with which it shares its name.
It forms part of Saudi Arabia’s efforts to diversify its economy away from oil production under Mohammed bin Salman, the crown prince who has taken a central role in ruling the country – including allegedly approving the murder of regime critic Jamal Khashoggi, according to US intelligence agencies.
Gulf stock markets ended mixed on Tuesday as investors were cautious amid volatile oil prices and awaited more details on China's plans to shore up its sluggish economic recovery, with Dubai and Qatar ending lower and Saudi and Abu Dhabi closing higher.
China on Tuesday cut two benchmark lending rates by 10 basis points each. The rate cuts are the latest in a string of moves by Beijing to shore up a slowing recovery in the world's second-largest economy.
Dubai's benchmark index (.DFMGI) extended losses to a second straight session, ending 0.3% lower. The index was dragged down by losses in financial, utilities and industrial sectors with Emaar Properties (EMAR.DU) slumping 1.2% and Emirates Central Cooling Systems (EMPOWER.DU) dropping 0.6%.
The emirate's largest lender Emirates NBD (ENBD.DU) slipped 1%.
In Qatar, the benchmark index (.QSI) fell 0.2%, giving up the previous session's gains, weighed by a 1.2% decline in Qatar National Bank (QNBK.QA), the region's largest lender, and a 1.6% drop in Ezdan Holding (ERES.QA).
Saudi Arabia's benchmark index (.TASI) inched up 0.1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 0.7% and Company for Cooperative Insurance (8010.SE) climbing 2.3%.
Shares of Jamjoom Pharmaceuticals Factory (4015.SE) jumped as much as 30% to 78 riyals in its market debut from an offer price of 60 riyals.
In Abu Dhabi, the index (.FTFADGI) advanced for a third consecutive session, rising 0.1%, buoyed by a 1.1% gain in Alpha Dhabi (ALPHADHABI.AD) and a 1.8% rise in Burjeel (BURJEEL.AD).
"Oil prices remained volatile as Chinese economic recovery continues to fuel concerns among traders, affecting oil demand expectations," said Daniel Takieddine, CEO MENA at BDSwiss.
Crude prices - a key catalyst for the Gulf's financial markets - edged up on Tuesday with Brent crude up 0.9% at $76.78 a barrel at 1226 GMT.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, extending previous session losses with financial and materials sectors trading in the red.
Commercial International Bank (COMI.CA) and Misr Fertilizers Production (MFPC.CA) slipped 0.7% and 4%, respectively. Ezz Steel (ESRS.CA) slumped 4.7%.
Abu Dhabi National Oil Company (ADNOC) has approached Covestro AG (1COV.DE), a German plastics and chemicals maker with a market value of 7.8 billion euros ($8.5 billion), with an takeover offer, people familiar with the matter said on Tuesday.
Details of the proposed terms and how Covestro will respond to the approach could not immediately be learned. The sources requested anonymity because the matter is confidential.
ADNOC did not immediately respond to requests for comment while Germany's Covestro declined to comment.
Covestro, a maker of transparent polycarbonate plastics as well as chemicals for insulation and upholstery foams, in April issued an earnings guidance that reassured markets about its growth prospects and it also resumed a share buyback programme.
Earlier on Tuesday it confirmed its outlook for 2023.
PIF is in advanced discussions with the Brazilian miner about a deal for a roughly 10% holding in its base metals unit, according to the people, who asked not to be identified discussing confidential information. The stake could be valued at around $2.5 billion, they said.
The wealth fund is poised to beat out rival bidders including Japanese trading house Mitsui & Co. and the Qatar Investment Authority, the people said. It may take at least several weeks to hash out a formal agreement, the people said.
PIF may do the Vale deal through a joint venture it set up in January with Saudi Arabian state miner Maaden. The JV, established to take minority stakes in iron ore, copper, nickel and lithium businesses, is part of Saudi Arabia’s efforts to diversify its economy from oil and secure access to strategic minerals.
Deliberations are ongoing, and talks could fall apart or another buyer could emerge. Spokespeople for PIF and Maaden didn’t immediately provide comment or couldn’t be reached. Representatives for Mitsui, Vale and QIA declined to comment.
Shares of Vale were down 2% at 10:30 a.m. in Sao Paulo.
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