Mideast Stocks: Gulf markets end mixed on Fed pause bets, volatile energy prices

Mideast Stocks: Gulf markets end mixed on Fed pause bets, volatile energy prices

Stock markets in the Gulf ended mixed on Thursday after soft U.S. economic data raised bets that the Federal Reserve would pause interest rate hikes next month, while volatile energy prices weighed on investor sentiment.

A slew of U.S. economic indicators generally surprised to the downside, adding to bets that the Fed is done tightening and rate cuts next year could amount to more than 100 basis points. Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.

Dubai's main share index gained 0.4%, helped by a 1.7% rise in Emirates Central Cooling Systems Co. In Abu Dhabi, the index finished 0.7% higher, buoyed by a 2.1% rise in conglomerate International Holding.

The Qatari benchmark declined 1.5%, as most of the stocks on the index were in negative territory including Qatar Islamic Bank, which was down 2.8%. 

Oil prices - a key catalyst for the Gulf's financial markets - rose, boosted by a large drawdown in U.S. crude inventories and production cuts by OPEC+, but a slowdown in China's manufacturing activity limited gains. China's manufacturing activity shrank again in August, an official factory survey showed on Thursday, fuelling concerns about weakness in the world's second-biggest economy.

Saudi Arabia's benchmark index fell 0.7%, weighed down by a 1.9% drop in Dr Sulaiman Al-Habib Medical Services and a 1.3% decrease in petrochemical maker Saudi Basic Industries Corp.

Outside the Gulf, Egypt's blue-chip index was up 0.3%, trading at all-time high, with Commercial International Bank closing 2% higher.

#Dubai Real Estate: Russians Are Top Emaar Property Buyers as Demand Stays Strong - Bloomberg

Dubai Real Estate: Russians Are Top Emaar Property Buyers as Demand Stays Strong - Bloomberg

Russians are the top buyers of properties from Dubai’s biggest developer, a sign that demand from investors seeking safe havens remains strong more than a year after Moscow’s invasion of Ukraine.

Emaar Properties PJSC didn’t provide the exact percentage of Russian buyers in a first-half investor presentation, but showed them as the largest segment of the market in a pie chart. Their appetite for property in the emirate have helped to push prices to record levels.

Sara Boutros, an analyst at CI Capital, estimates that Russians accounted for about 12% of buyers in Emaar developments this year, compared with second place in 2022 and ninth in 2020. Emaar has the biggest share of Dubai’s property market with around 30% of all home sales ahead of construction and acts as a proxy for the city’s wider real estate sector.

“We expect Russian flows to remain strong for the rest of the year,” she said. “That’s mainly due to the attractiveness of the luxury segment in Dubai where rental yields are very high and investment costs are low.”

#UAE leads first-half Mena M&A deal activity driven by sovereign funds

UAE leads first-half Mena M&A deal activity driven by sovereign funds

The UAE, the Arab world’s second-largest economy, dominated mergers and acquisitions activity in the Middle East and North Africa region, leading in both volume and value of transactions in the first six months of the year.

Government policies and efforts to boost the ease of doing business drove deal flow and foreign direct investment into the country, consultancy EY said in its first-half Mena M&A report.

Overall deal activity across the entire region, however, slowed due to the continued rise in interest rates amid global economic headwinds during the six-month period.

The number of deals fell 14 per cent year on year to 318 at the end of the first-half of this year, while the deal volume for the Gulf states reached 254.

“Deal making got off to a slow start in 2023 with rising interest rates, persistent inflation and economic uncertainty weighing heavily on M&A activity,” said Brad Watson, EY Mena strategy and transactions leader.

Emirates Global Aluminium's first-half profit slides 66% | Reuters

Emirates Global Aluminium's first-half profit slides 66% | Reuters

Emirates Global Aluminium's (EGA) first-half net profit slumped by 66% as metal prices corrected after reaching record highs in 2022, it said on Thursday.

One of the world's largest aluminium producers, EGA posted net profit of 2 billion dirhams ($544.62 million) for the first six months of the year, down from 5.9 billion dirhams a year earlier.

The United Arab Emirates company said that the average realised London Metal Exchange (LME) price for its aluminium was $2,359 a tonne in the first half, compared with $3,063 in the same period last year.

EGA's core earnings margin was 27%, continuing to lead industry peers, it said.

"At EGA we aim to achieve performance that is competitive for our sector throughout the economic cycle," said Chief Executive Abdulnasser Bin Kalban.

"In the first half of 2023 that is what we did - delivering solid financial results even as market conditions moderated from the significant volatility of recent years."

Aluminium prices reached a record high of $4,073.5 on the LME in March last year as the global economy recovered from the pandemic, but they have dropped this year as China has stepped up production.

EGA, which is jointly owned by Abu Dhabi state investor Mubadala and Investment Corp of Dubai, was formed in 2013 through a merger of state-owned Dubai Aluminium and Abu Dhabi's Emirates Aluminium.

The company has smelters in Abu Dhabi and Dubai and a bauxite mine in Guinea.

Most Gulf markets rise on Fed pause bets; #Saudi retreats | Reuters

Most Gulf markets rise on Fed pause bets; Saudi retreats | Reuters

Most major stock markets in the Gulf rose on Thursday after soft U.S. economic data raised bets that the Federal Reserve would pause interest rate hikes next month, although volatile energy prices weighed on investor sentiment.

A slew of U.S. economic indicators generally surprised to the downside, adding to bets that the Fed is done tightening and rate cuts next year could amount to more than 100 basis points.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.

Dubai's main share index (.DFMGI) gained 0.4%, led by a 0.7% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1% increase in budget airliner Air Arabia (AIRA.DU).

In Qatar, the main share index (.QSI) gained 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) up 2.7%.

The Abu Dhabi index (.FTFADGI) added 0.4%.

Saudi Arabia's benchmark stock index (.TASI) slipped 0.2%, weighed down by a 1.2% fall in oil giant Saudi Aramco (2222.SE).

Oil prices, which fuel the Gulf economy, eased after data showed China's manufacturing activity shrank for the fifth straight month, and as investors cautiously awaited a U.S. personal consumption expenditure report later in the day for clues on the interest rate outlook.

Separately, Saudi Arabia's Lumi, one of the largest auto rental firms in the kingdom, said on Wednesday that it could raise up to 1.089 billion riyals ($290.34 million) after a price range was set for its initial public offering.

Alabbar says Emaar could raise dividends while Noon has no immediate IPO plans

Alabbar says Emaar could raise dividends while Noon has no immediate IPO plans

UAE businessman Mohamed Alabbar, founder of Emaar Properties, has said the property developer could raise dividends this year, while confirming that Noon, the online retailer he co-founded, has no immediate plans for an initial public offering.

“Investors will submit a proposal to Emaar Properties' board of directors to discuss increasing dividends for shareholders in 2023, in line with the company's commitment to shareholder rights,” Mr Alabbar told state news agency Wam.

Emaar Properties, Dubai's largest listed developer, reported a 15 per cent surge in its first-half profit as Dubai's property market continues to boom amid economic growth in the country.

Net profit for the six months to the end of June climbed to Dh4.9 billion ($1.3 billion), the company said earlier this month.

Mr Alabbar expects Emaar Properties to “continue to achieve favourable financial results in the upcoming quarters, supported by a strong sales track record, indicating sustained growth”, Wam reported.

The company's board is also developing long-term plans for the next 15 to 20 years covering new projects, countries targeted for expansion, projected future risks, as well as investments in human capital, he said.

Mideast Stocks: #Saudi bourse gains on Fed pause bets, stronger oil; #Dubai extends losses

Mideast Stocks: Saudi bourse gains on Fed pause bets, stronger oil; Dubai extends losses

Saudi Arabia's stock market ended higher on Wednesday following a rise in oil prices and on easing interest rate concerns in the United States, while the Dubai bourse extended losses after it hit eight-year high on Monday.

Data on Tuesday showed U.S. job openings dropped to the lowest in nearly 2-1/2 years in July, signalling easing labour market pressures. With the Federal Reserve highlighting that its interest rate path will be heavily dependent on data, traders are tweaking their bets based on the latest indicators.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index advanced 1.2%, snapping two sessions of losses, with oil giant Saudi Aramco finishing 2.2% higher.

Oil prices - which fuels the Gulf economy - extended gains after industry data showed a large draw in crude inventories in the U.S., the world's biggest fuel consumer, and as a hurricane in the Gulf of Mexico kept investors on edge.

Dubai's main share index extend losses from the previous session to close 0.4% lower after it hit its highest since Aug. 2015. In Qatar, the index eased 0.2%, weighed down by a 0.9% fall in petrochemical maker Industries Qatar.

The Qatari stock market continued to trade sideways overall but remained exposed to another decline, said George Pavel, General Manager at Capex.com Middle East.

"The market could find some support if natural gas prices recover more strongly."

Outside the Gulf, Egypt's blue-chip index climbed 1%, hitting an all-time high, buoyed by a 3.3% jump in Commercial International Bank Egypt.

The Egyptian bourse continued to see more gains, supported by local investors and strong trading volumes, said Pavel.

#SaudiArabia Expected to Prolong Oil Cut Again, Survey Shows - Bloomberg

Saudi Arabia Expected to Prolong Oil Cut Again, Survey Shows - Bloomberg

Saudi Arabia is expected to extend a 1 million-barrel oil supply cut into October, as it seeks to shore up prices against a faltering economic backdrop.

While global crude markets are tightening as demand climbs toward record levels, this summer’s price rally has stalled on mounting concern over economic growth in China. The pullback poses risks for Riyadh, which has seen its foreign reserves slump to the lowest since 2009.

The Saudis introduced the additional supply curb in July — on top of cutbacks it’s already made with partners in the OPEC+ alliance — and has been reviewing its extension on a monthly basis.

Twenty of 25 traders and analysts surveyed by Bloomberg forecast that the kingdom will continue the measure for at least another month. Several delegates from the Organization of Petroleum Exporting Countries and its allies privately predicted the same outcome.

#UAE non-oil foreign trade hits all-time high of $337.6bln in H1 2023

UAE non-oil foreign trade hits all-time high of $337.6bln in H1 2023

The UAE’s non-oil foreign trade reached a record AED1.239 trillion in H1 2023, representing a growth of 14.4 percent compared to the same period in 2022 – and 3 percent more than H2 2022.

The figures, just released by the Ministry of Economy, underline the continued upward trajectory of the nation’s foreign trade, which has achieved quarter-on-quarter growth since 2020.

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, stated that the UAE has recorded a new remarkable economic achievement, with non-oil foreign trade recording exceptional growth rates by exceeding AED 1.239 trillion in the first half of 2023.

“The UAE’s non-oil export continues to set unprecedented records as it rose 22 percent with the top 10 global trading partners in 2023. The bilateral trade with Türkiye recorded one of the highest growth rates in the first half of 2023, with 87.4 percent growth compared to the same period in 2022.”

#SaudiArabia’s Lumi sets IPO price range, looks to raise up to $290mln

Saudi Arabia’s Lumi sets IPO price range, looks to raise up to $290mln

Saudi Arabian auto rental firm Lumi, one of the largest in the kingdom, on Wednesday set its IPO price range between 62 Saudi riyals ($16.5) and SAR 66 per share as it goes ahead with plans to list on the local Tadawul exchange.

This implies a market capitalisation of SAR 3.6 billion at the top of the range, the Riyadh-based auto rental firm said in a statement.

The final offer price will be announced at the end of the book-building period early next month.

The firm, which is offering 16,500,000 shares, or 30% of its issued share capital, expects to raise between SAR 1.02 billion and SAR 1.08 billion.

The selling shareholder in the public offering is Tadawul-listed Seera Group, a Saudi travel company formerly known as Al Tayyar Travel Group, which wholly owns Lumi.

KIA's London Office Manages $250 Billion in Assets, Chairman Saad Al-Barrak Said - Bloomberg

KIA's London Office Manages $250 Billion in Assets, Chairman Saad Al-Barrak Said - Bloomberg

The London arm of Kuwait Investment Authority, which manages the country’s sovereign wealth fund, has $250 billion of assets under management, KIA Chairman Saad Al-Barrak said.

The Kuwait Investment Office’s AUM grew from $27 billion in 2003 to $250 billion this year, Al-Barrak, who’s also minister of state for economic affairs and investment, said in London on Tuesday during an event marking the KIO’s 70th anniversary. The KIA doesn’t usually disclose the value of its assets.

The Kuwait Investment Board was established in London in 1953, eight years before OPEC-member Kuwait gained independence, to invest surplus oil revenue and help diversify the economy. The board was later replaced by the Kuwait Investment Office, and in 1982 the KIA was set up as its parent entity. The KIA manages the Future Generations Fund, estimated at over $700 billion, as well as the General Reserve Fund, or treasury.

The KIO mainly invests directly, predominantly in public equities and fixed income but also in alternatives like real estate and private equity. The London office has been a prolific investor, and participated in the US listing of private equity firm TPG Inc. Kuwaiti investments in the UK rose to $42 billion from $9 billion two decades ago, Al-Barrak also said.

#SaudiArabia PIF-Backed AviLease Aims to Double Fleet After StanChart Deal - Bloomberg

Saudi Arabia PIF-Backed AviLease Aims to Double Fleet After StanChart Deal - Bloomberg

Saudi Arabian jet lessor AviLease is seeking to double its fleet by 2030, supported by its owner, the kingdom’s wealth fund, which plans to pump in billions of dollars of capital over the next few years.

The firm will manage 167 jets following the acquisition of Standard Chartered Plc’s aviation finance business this week and wants to grow that to 300 over the next seven years, Chief Executive Officer Ted O’Byrne said in an interview with Bloomberg TV on Wednesday.

“The degree of growth that we are expecting in Saudi Arabia over the next 10 years is quite exceptional,” he said.

“We’re talking about tripling passenger traffic, more than doubling cargo traffic. So in that context the PIF has committed additional equity to the balance sheet,” he said, referring to the Public Investment Fund.

Major Gulf markets mixed on Fed pause bets, stronger oil | Reuters

Major Gulf markets mixed on Fed pause bets, stronger oil | Reuters

Major stock markets in the Gulf were mixed in early trade on Wednesday, with the Saudi index on course to snap two sessions of losses, as weak U.S. labour data bolstered bets that the Federal Reserve was likely done with its interest rate hikes.

Data on Tuesday showed U.S. job openings dropped to the lowest in nearly 2-1/2 years in July, signalling easing labour market pressures.

With the Fed highlighting that its interest rate path will be heavily dependent on data, traders are tweaking their bets based on the latest indicators.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.3%, on track to end two sessions of losses, helped by a 0.7% rise in the kingdom's biggest lender Saudi National Bank (1180.SE).

In Qatar, the index (.QSI) gained 0.2%, with Qatar National Bank (QNBK.QA), the Gulf's largest lender, increasing 0.7% and Qatar Islamic Bank (QISB.QA) up 0.5%.

Oil prices - which fuel the Gulf economy - extended gains after industry data showed a large draw in crude inventories in the U.S., the world's biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.

Dubai's main share index (.DFMGI) fell 0.3%, weighed down by a 0.9% fall in top lender Emirates NBD (ENBD.DU).

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

GCC's asset management market to hit $500bn in onshore assets by 2026

GCC's asset management market to hit $500bn in onshore assets by 2026

Assets under management in the GCC are projected to expand above the global average to hit about $500 billion in onshore assets by 2026, from $400 billion at the end of 2022, a report has shown.

More than 70 per cent of regional private wealth is in offshore accounts, which are typically favoured by high-net-worth individuals (HNWIs) and family offices, but this trend is shifting, according to estimates by Strategy& Middle East, a unit of global consultancy PwC.

“This projected growth underscores the potential of the GCC asset management industry amidst global economic challenges,” said Jorge Camarate, partner at Strategy& Middle East and leader of the company’s financial services practice.

“Despite the region's preference for offshore investing, increasing product sophistication and supportive regulatory initiatives are making onshore investment more appealing.”

The GCC asset management industry's projected growth comes at a time of global macroeconomic headwinds.

Rising interest rates, tighter liquidity, the fallout from high-profile bank failures and increased competition for environmental, social and governance-related investments are among the factors pushing the industry to adapt quickly.

Assets under management in the Middle East increased by $100 billion to $1.3 trillion in 2022 despite global economic challenges, management consultancy Boston Consulting Group said in a report in June.

Gulf stock markets end mixed as China boost lingers, oil volatile | Reuters

Gulf stock markets end mixed as China boost lingers, oil volatile | Reuters

Stock markets in the Gulf ended mixed on Tuesday with China's efforts to shore up its battered markets supporting sentiment, while volatile energy markets weighed.

Beijing introduced a slew of measures over the weekend to bolster the market, such as halving stock-trading stamp duty, loosening margin loan rules and putting the brakes on new listings.

This has offered some respite to equity markets, rattled this month by fresh strain in China's property market and renewed selling in the U.S. Treasury market.

In Abu Dhabi, the index (.FTFADGI) added 0.1%, helped by a 0.1% increase in conglomerate International Holding (IHC.AD).

Insurer Centene (CNC.N) said on Monday it will sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion, including debt, as the U.S. health insurer refocuses on its core business.

PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company also owning a stake. Both ADQ and IHC are chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and brother of UAE ruler Sheikh Mohammed bin Zayed.

The Qatari benchmark (.QSI) gained 0.3%, with Qatar Islamic Bank (QISB.QA) advancing 0.9% and petrochemicals maker Industries Qatar (IQCD.QA) finishing 0.6% higher.

Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.2% lower, weighed down by a 1.3% fall in oil giant Saudi Aramco (2222.SE).

Oil prices - a key catalyst for the Gulf's financial markets - crept up as supply concerns from a hurricane hurtling towards the U.S. Gulf Coast limited bearish sentiment about the possibility of another interest rate hike by the Federal Reserve undercutting demand.

Dubai's main share index (.DFMGI) retreated 0.4%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.2%, with Madinet Masr (MASR.CA) rising 0.6%.

Egypt hopes its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.

PureHealth buys UK hospital operator Circle in $1.2bn deal | Financial Times

PureHealth buys UK hospital operator Circle in $1.2bn deal | Financial Times

PureHealth has agreed to acquire Circle Health Group of the UK from US company Centene in a deal worth $1.2bn as the United Arab Emirates’ largest healthcare provider extends its international expansion ambitions. 

PureHealth is owned by a consortium that includes Abu Dhabi state holding company ADQ and Alpha Dhabi, a listed company that is part of the conglomerate International Holding Company (IHC). They are controlled by the UAE’s powerful national security adviser, Sheikh Tahnoon bin Zayed al-Nahyan, who also chairs the emirate’s main sovereign wealth fund, the Abu Dhabi Investment Authority. 

Circle operates the largest network of private hospitals in the UK with more than 50 sites across the country and about 8,200 employees. It has revenues of about $1.3bn. 

“We are confident that it [the acquisition] will position us for continued growth and success,” said Hamad Al Ameri, chief executive of Alpha Dhabi.

#SaudiArabia’s Fuel Subsidies at $7,000 Per Person is Highest in G-20 - Bloomberg

Saudi Arabia’s Fuel Subsidies at $7,000 Per Person is Highest in G-20 - Bloomberg

Saudi Arabia’s total spending on fuel subsidies soared over the past two years, hitting the highest among the Group of 20 economies on a per capita basis.

The country spent almost $7,000 per person, equivalent to about 27% of economic output, across both explicit and implicit energy subsidies, according to a paper published by the International Monetary Fund.

Fossil fuel subsidies soared globally since 2020 to $7 trillion last year as governments took measures to protect consumers and businesses from a spike in prices following Russia’s invasion of Ukraine, according to the IMF paper. It estimated that cutting fossil fuel subsidies could help reduce carbon dioxide emissions, deaths from air pollution and boost government revenues.

“Fossil fuels in most countries are priced incorrectly,” Simon Black, Antung A. Liu, Ian Parry and Nate Vernon wrote in the IMF working paper. “Unfortunately, current prices are routinely set at levels that do not adequately reflect environmental damages and, in some cases, not even supply costs.”

#SaudiArabia Foreign Reserves Plunge by Most Since Pandemic to 2009 Low - Bloomberg

Saudi Arabia Foreign Reserves Plunge by Most Since Pandemic to 2009 Low - Bloomberg

Saudi Arabia’s foreign reserves dropped by over $16 billion last month, in the sharpest decline since oil prices turned negative during the depths of the pandemic and the kingdom used its savings to invest in US stocks.

Net foreign assets fell to 1.53 trillion riyals ($407 billion) after increases in May and June, according to the central bank’s monthly report published on Monday. That’s taken them to the lowest since late 2009, and came as the kingdom slashed oil production in a bid to prop up prices.

“The net foreign asset position should improve in September, especially when the first performance-linked dividend distribution” arrives from Aramco, said Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC.

The kingdom’s effort this year to support crude prices with output curbs has left it with far smaller receipts from oil sales abroad. After earning a windfall of nearly $326 billion in 2022, Saudi Arabia is at risk of running a budget deficit again following its first surplus in almost a decade.

The country has been shifting its investment strategy over the past few years away from keeping most of its foreign assets with the central bank as it builds up hundreds of billions of dollars in sovereign funds including the Public Investment Fund and the National Development Fund.

Major Gulf markets edge higher; oil slips | Reuters

Major Gulf markets edge higher; oil slips | Reuters

Major stock markets in the Gulf edged higher in early trade on Tuesday ahead of U.S. labour and manufacturing data due later in the week, while volatile energy prices limited gains.

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.4%, as did Japan's Nikkei (.N225).

Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by a 2.8% jump in Jabal Omar Development Co (4250.SE) after the company obtained a licence from the Ministry of Tourism to operate the first tower of Jabal Omar Jumeirah Hotels.

On the other hand, oil giant Saudi Aramco (2222.SE) dropped 0.7%.

Oil prices - a key catalyst for the Gulf's financial markets - slipped as worries that further possible U.S. interest rate hikes could pull down demand outweighed concerns that a tropical storm off the U.S. Gulf Coast may impact supply.

Dubai's main share index (.DFMGI) gained 0.1%, with toll operator Salik Co (SALIK.DU) putting on 0.9%.

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

Separately, insurer Centene (CNC.N) said on Monday it would sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion including debt, as the U.S. health insurer refocuses on its core business.

PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company (IHC) (IHC.AD) also holding a stake. Shares of IHC were flat.

The Qatari benchmark (.QSI) was up 0.1%, with Qatar Islamic Bank (QISB.QA) gaining 0.5%.

#SaudiArabia Fund PIF’s AviLease to Buy StanChart’s Jet Lessor for $3.6 Billion - Bloomberg

Saudi Arabia Fund PIF’s AviLease to Buy StanChart’s Jet Lessor for $3.6 Billion - Bloomberg

Standard Chartered Plc agreed to sell its aviation finance business to a unit of Saudi Arabia’s sovereign wealth fund for $3.6 billion and inked a separate deal to offload a portfolio of loans as part of efforts to boost returns.

AviLease, a jet lessor owned by Saudi Arabia’s Public Investment Fund, will acquire a portfolio of 100 narrowbody aircraft and become servicer for another 22 jets, according to a statement. The combined platform will own and manage 167 planes.

Separately, Apollo Global Management Inc.-backed PK Airfinance agreed to buy the majority of a $920 million portfolio of secured aviation loans from Standard Chartered. Affiliates of Apollo will buy the rest of the aviation loans.

Both deals are expected to close before the end of the year.

Standard Chartered had earmarked its aviation business for sale earlier this year and hired advisers for the process.

Dublin-based Standard Chartered Aviation Finance owns and manages more than 120 aircraft and offers services including jet fuel hedging and re-marketing of aircraft. It also includes a debt-financing business to finance the purchase of airplanes.

AviLease, founded last year, is among a number of companies the Saudi sovereign wealth fund has bankrolled as it pushes deeper into sectors from sports to tourism through a series of high-profile acquisitions.

“This acquisition will propel AviLease and will in turn support Saudi Arabia’s aviation ecosystem,” AviLease Chairman Fahad Al Saif said in the statement.

The deal is part of a push by the country to become a global trade, logistics and tourism hub, and help diversify its economy away from a reliance on oil sales. The kingdom has launched a new national airline and plans to develop one of the world’s biggest airports in its capital, Riyadh.

Major Gulf bourses fall on Fed chair's hawkish tone | Reuters

Major Gulf bourses fall on Fed chair's hawkish tone | Reuters

Most stock markets in the Gulf ended lower on Monday as a slightly hawkish outlook from U.S. Federal Reserve chair Jerome Powell weighed on investor sentiment.

Powell on Friday reiterated the central bank would make all efforts to tackle inflation.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

In Abu Dhabi, the index (.FTFADGI) fell for a second consecutive session, ending 0.2% lower, weighed down by a 1.3% drop in Abu Dhabi Islamic Bank (ADIB.AD) and a 0.7% decline in the UAE's largest lender, First Abu Dhabi Bank (FAB.AD).

The Qatari index (.QSI) fell 0.5%, snapping its winning streak from the two previous sessions, with most sectors in the red.

Qatar National Bank (QNBK.QA), the region's largest lender, dropped 0.9% and Commercial Bank (COMB.QA) lost 1.3%.

Saudi Arabia's benchmark index (.TASI) was down 0.1%, also after rising in the previous two sessions. The index was dragged down by a 2.2% decline in Dr Sulaiman Al-Habib Medical Services (4013.SE) and a 0.7% fall in oil giant Saudi Aramco (2222.SE).

The world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE), and Banque Saudi Fransi (1050.SE) slipped 0.3% and 0.9% respectively.

Dubai's benchmark index (.DFMGI) ended flat with industry and utilities seeing broad losses but financial and communication sectors recording some gains.

Dubai road-toll operator Salik (SALIK.DU) lost 1.2% and National Central Cooling (TABR.DU) dropped 2.1%.

The emirate's largest lender Emirates NBD (ENBD.DU) added 1.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 0.4%, adding to gains in the previous two sessions, with Commercial International Bank (COMI.CA) and Palm Hills (PHDC.CA) rising 1.4% and 4.3% respectively.

#SaudiArabia PIF, Shareholders to Offer 30% Stake in Oil Driller Ades IPO - Bloomberg

Saudi Arabia PIF, Shareholders to Offer 30% Stake in Oil Driller Ades IPO - Bloomberg

Saudi Arabia’s Ades International Holding is set to list in Riyadh, a deal that’s set to be the kingdom’s largest initial public offering this year.

The Public Investment Fund, ADES Investments Holding Ltd. and Zamil Group Investment Ltd. plan to sell shares in the listing, according to a statement on Monday. The offering could raise about $1 billion, Bloomberg has reported.

The IPO will consist of 338.7 million shares, or a 30% stake in the company, which will include the issuance of 237.1 million new shares through a capital increase. A book-building process will run from Sept. 10 until Sept. 14 and the final offer price will be announced on Sept. 18, it said.

The PIF teamed up with the major owners of Ades to take the business private in 2021, in a deal valuing the company at about $516 million. Ades, which provides oil-and-gas drilling and production services in the Middle East and North Africa, has since grown through acquisitions.

The company had initially planned to go public in the first half of the year but decided to hold off for a suitable time, Bloomberg reported in May.

Major Gulf markets mixed as Fed rate bets offset higher oil prices | Reuters

Major Gulf markets mixed as Fed rate bets offset higher oil prices | Reuters

Gulf stock markets put in a mixed performance early on Monday as a boost from higher oil prices was offset by concerns that the U.S. Federal Reserve could hike interest rates again.

Federal Reserve chair Jerome Powell, speaking on Friday, reiterated the central bank may have to raise rates further to cool still-too-high inflation but promised to move "carefully".

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Oil prices ticked higher after China took steps to support its flagging economy, though investors remained worried about the pace of growth and any further U.S. rate hikes dampening demand, with Brent crude futures 0.3% higher at $84.73 a barrel by 0815 GMT.

Saudi Arabia's benchmark stock index (.TASI) inched up 0.1% to extend gains to a third session in a row with financials and material stocks leading a broader rise across most sectors. Saudi Arabia's second-largest lender by assets Al Rajhi Bank (1120.SE) was 0.3% higher and food retailer Savola Group (2050.SE) was up 1.8%.

Oil and gas driller ADES Holding, backed by Saudi Arabia's sovereign wealth fund announced plans to proceed with an initial public offering (IPO) on the Saudi Exchange.

Dubai's main share index (.DFMGI) gained 0.2%, supported by higher financial and property stocks as Emirates NBD Bank (ENBD.DU) rose nearly 0.6% and blue-chip developer Emaar Properties (EMAR.DU) added 0.8%.

In Abu Dhabi, the benchmark index (.FTFADGI) eased 0.2%, under pressure from a 0.7% drop in First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, and a 1.3% fall in Emirates Telecommunications Group (EAND.AD).

Qatar's benchmark (.QSI) also fell 0.2% after two sessions of gains, with most of its individual stocks in negative territory. Telecoms operator Ooredoo (ORDS.QA) fell nearly 2% and Qatar National Bank (QNBK.QA), the Gulf's largest lender, was down 0.2%.

#Dubai's DP World to invest $510 million in India's Gujarat state | Reuters

Dubai's DP World to invest $510 million in India's Gujarat state | Reuters

Dubai-owned ports giant DP World [RIC:RIC:DPWRD.UL] will invest around $510 million to build a new container terminal at the Kandla port in the Indian state of Gujarat, its group chairman said on Friday.

"It will enable the delivery of trade opportunities by connecting northern, western and central India with global markets," Sultan Ahmed Bin Sulayem, who is also DP World's CEO, said after the signing of an agreement between the Deendayal Port Authority and DP World officials.

The Indian government earlier this year approved a plan by Hindustan Infralog Private Limited, a joint venture between DP World and the state-owned National Investment and Infrastructure Fund, to develop the terminal on a Build-Operate-Transfer (BOT) basis.

DP world, which operates in 73 countries, last week reported a nearly 10% fall in first-half profit to $651 million despite a 13.9% year-on-year rise in revenue to more than $9 billion.

‘Super aggressive’ Riyadh Air to focus expansion on #Saudi market | Financial Times

‘Super aggressive’ Riyadh Air to focus expansion on Saudi market | Financial Times

Saudi Arabia’s newest airline, Riyadh Air, plans to focus on the niche market for flights to and from the kingdom rather than competing with its Gulf neighbours’ vast hubs, its chief executive has said, in an explanation of its “super aggressive” growth plans. 

Tony Douglas was speaking after the airline in March announced its first aircraft order, for at least 39 Boeing 787 wide-body jets, with options for 33 more. Riyadh Air is also in talks with manufacturers for a fleet of narrow-body jets, which Douglas said should allow Riyadh Air to serve more than 100 destinations by the end of the decade. 

However, Douglas, a former chief executive of Abu Dhabi’s Etihad airline, said Riyadh Air would not use the aircraft to take on directly Qatar Airways or Dubai’s Emirates, the region’s top two carriers. Both airlines, as well as Etihad, have grown by offering connecting flights through their huge home airports to and from destinations in other parts of the world. 

Douglas said Riyadh Air would instead focus on carrying passengers going to and from Saudi Arabia, which has been wooing tourists and investors.

#UAE shares end lower ahead of Powell's speech | Reuters

UAE shares end lower ahead of Powell's speech | Reuters

Stock markets in the United Arab Emirates closed lower on Friday ahead of remarks from the U.S. Federal Reserve Chair at a central bankers' conference in Jackson Hole.

Fed Chair Jerome Powell is scheduled to speak at 1405 GMT and investors will be looking for clarity on whether the central bank intends to hold interest rates higher for longer.

Most Gulf Cooperation Council countries (GCC), including the UAE, have their currencies pegged to the dollar and generally follow the Fed's policy moves.

Dubai's benchmark index (.DFMGI) ended 0.2% lower, snapping a six-session winning streak, dragged down by a 1.4% drop in Emaar Properties (EMAR.DU) and a 1.6% fall in Emirates Central Cooling (EMPOWER.DU).

National Central Cooling (TABR.DU) fell 3.2%, making it the biggest loser on the benchmark, while Emirate's largest lender Emirates NBD (ENBD.DU) eased 0.3%.

However, the index was up 1.2% for the week after two consecutive weekly losses.

In Abu Dhabi, the index (.FTFADGI) fell 0.1% on Friday and was down 0.4% for the week.

State oil giant Abu Dhabi National Oil Company's drilling unit ADNOC Drilling (ADNOCDRILL.AD) and gas unit ADNOC Gas (ADNOCGAS.AD) slipped 2.6% and 1.4%, respectively.

Abu Dhabi Commercial Bank, the UAE's third-biggest lender, lost 0.7%.

Washington’s Top Middle Eastern Allies Move Closer to China - Bloomberg

Washington’s Top Middle Eastern Allies Move Closer to China - Bloomberg

Some of the US’s top Middle Eastern allies — including the world’s biggest oil exporter — are moving closer into the orbit of China and Russia, further complicating geopolitics upended by Russia’s invasion of Ukraine.

Saudi Arabia, the United Arab Emirates and Egypt are set to join the BRICS grouping of major emerging markets, after being invited Thursday during a summit in South Africa. They’re likely to become members at the start of next year, along with Iran, Argentina and Ethiopia.

The move is part of a push by leaders of the BRICS nations — Brazil, Russia, India, China and South Africa — to increase the group’s influence and counter US power over the global economy and trade, including through the role of the US dollar.

It also signals the determination of Saudi Arabia, the UAE and Egypt to bolster their status as midsized powers while avoiding taking sides in a world increasingly split between Washington and Beijing.

The UAE said the invitation reflects its “keenness to champion the value of multilateralism.”

#Saudi auto rental firm Lumi to float 30% in IPO | Reuters

Saudi auto rental firm Lumi to float 30% in IPO | Reuters

Saudi Arabia's Lumi, one of the largest auto rental firms in the kingdom, on Thursday announced plans to proceed with an initial public offering on the Saudi Exchange.

Riyadh-based Lumi said it expects to issue 16.5 million existing shares, resulting in a free float of 30%.

Sources told Reuters in April that Lumi had hired Saudi Fransi Capital (1050.SE) as financial advisor and bookrunner and EFG Hermes (HRHO.CA) as bookrunner to arrange the sale of 30% of its shares.

Lumi confirmed those appointments and said Riyad Bank, Banque Saudi Fransi and Saudi National Bank have been appointed as receiving banks.

The share sale is set to be a litmus test for the Gulf IPO market after a slow summer period.

Issuers from the Middle East and North Africa raised more than $5 billion in the first half of this year, consultancy EY said in a report earlier this month, with the bulk coming from Saudi Arabia and the United Arab Emirates.

Most Gulf markets in black ahead of Powell's speech | Reuters

Most Gulf markets in black ahead of Powell's speech | Reuters

Most stock markets in the Gulf ended higher on Thursday, with the Saudi index snapping three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.

A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.3%, with oil giant Saudi Aramco (2222.SE) gaining 0.4% and Saudi National Bank (1180.SE) finishing 1% higher.

The Saudi stock market stabilized to a certain extent and traded sideways this week although uncertainty gripped energy markets, said Hani Abuagla, senior market analyst at XTB MENA.

"The main index could be exposed to new price corrections next week if oil prices decline again."

Prices of oil — a catalyst for the Gulf's financial markets — steadied after earlier declines caused by disappointing economic data from key economies, with investors awaiting Powell's speech for clues.

Dubai's main share index (.DFMGI) added 0.2%, helped by a 1.6% rise in Emirates Central Cooling Systems Corp (EMPOWER.DU).

In Abu Dhabi, the index (.FTFADGI) gained 0.4%.

The Qatari benchmark (.QSI) closed 0.3% higher, with petrochemical maker Industries Qatar (IQCD.QA) advancing 1.8%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 0.4%.

The Egyptian bourse continued to find resistance near this year's peak. Decreasing trading volumes could create downside risks in the next trading sessions, said Abuagla.

#SaudiArabia eyes world stage after BRICS invitation | Reuters

Saudi Arabia eyes world stage after BRICS invitation | Reuters

Oil power Saudi Arabia's entry to the BRICS group of nations highlights its ambitious drive to become a heavyweight on the global stage, creating a counter to its decades-old alliance with the United States, once seen as ironclad.

The kingdom anticipates more cooperation with BRICS nations, its foreign minister said on Thursday, after the group invited Saudi Arabia, United Arab Emirates, Iran, Egypt and Argentina to join.

"We look forward to develop this cooperation to create new developmental and economic opportunities and elevate our relationship to the aspired level," Prince Faisal bin Farhan told a BRICS summit.

Saudi Arabia, one of the most powerful and influential Arab states, and its neighbour the UAE, have increasingly pursued their own paths after concerns that the U.S. is less committed to the strategic region's security.

Covestro investors press company to enter talks with ADNOC | Reuters

Covestro investors press company to enter talks with ADNOC | Reuters

Germany's Covestro (1COV.DE) should engage in formal takeover talks with Abu Dhabi National Oil Co (ADNOC) in the interest of its shareholders, two top-15 investors of the plastics and chemicals maker told Reuters.

ADNOC, which is trying to diversify and develop its downstream and renewable energy operations, made a non-binding offer for Covestro of 55 euros per share in June, which was rejected, according to press reports.

Earlier this month, ADNOC verbally signalled to Covestro, which has not officially commented on the takeover approach, that it could raise its informal offer to 60 euros per share conditional on the German company entering formal talks, Reuters reported.

Arne Rautenberg, fund manager at Union Investment, said management should take the next step to enter formal discussions within days to avoid further speculation and market uncertainty.

Watch Emirates NBD's Bell on #Dubai's Economy, Oil Outlook - Bloomberg video

Watch Emirates NBD's Bell on Dubai's Economy, Oil Outlook - Bloomberg

Edward Bell, Senior Director of Market Economics at Emirates NBD, discusses his regional outlook. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)

#UAE's four largest banks post profit rise on interest income boost and economic momentum

UAE's four largest banks post profit rise on interest income boost and economic momentum

Profits of the four largest banks in the UAE grew sharply in the first half of this year, boosted by rising interest rates and the strong growth momentum in the Arab world’s second-largest economy, Moody’s Investors Service has said.

The four largest banks – First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank reported a combined net profit of $7.4 billion, up from $4.4 billion for the same period of 2022, the rating agency said in a report on Wednesday.

The combined net interest income of the lenders, which accounted for 77 per cent of total banking assets in the UAE as of March 2023, jumped 37 per cent annually.

“Interest income growth outweighed funding cost growth, as low-cost current and savings accounts remained a big contributor to the banks' funding, driving net interest margins (NIM) up to 2.4 per cent for the first half of 2023, from 1.9 per cent a year earlier,” Moody’s analysts, led by Francesca Paolino, said.

Major Gulf markets rise ahead of Powell's speech | Reuters

Major Gulf markets rise ahead of Powell's speech | Reuters

Major stock markets in the Gulf rose in early trade on Thursday, with the Saudi index on course to snap three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.

A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, and was on course to snap a three-day losing streak, with Bupa Arabia for Cooperative Insurance Co (8210.SE) advancing 3.3%.

Dubai's main share index (.DFMGI) gained 0.2%, with top lender Emirates NBD (ENBD.DU) gaining 1.2% and a 0.9% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

In Abu Dhabi, the index (.FTFDGI) added 0.3%.

Separately, the BRICS group of nations has decided to invite six countries including Iran, Saudi Arabia and the United Arab Emirates to become new members of the bloc, South African President Cyril Ramaphosa said on Thursday.

UAE's President Mohammed bin Zayed said he appreciated the inclusion of his country as a member of BRICS, and described it as an "important group."

The Qatari benchmark (.QSI) added 0.4%, with most stocks on the index rising, including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was up 1%.

Qatar Investment Authority will invest $1 billion for a 1% stake in India's Reliance Retail Ventures, the retail arm of Reliance Industries (RELI.NS), nearly doubling its valuation to $100 billion from its last funding round in 2020.

BRICS Asks #SaudiArabia, #Iran, #UAE, Egypt, Argentina, Ethiopia to Join Bloc - Bloomberg

BRICS Asks Saudi Arabia, Iran, UAE, Egypt, Argentina, Ethiopia to Join Bloc - Bloomberg

Major emerging market nations invited top oil exporter Saudi Arabia, Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates to join their bloc in a push to expand its global influence.

Leaders from Brazil, Russia, India, China and South Africa agreed to expand their BRICS group from Jan. 1 at a summit being held this week in Johannesburg, South African President Cyril Ramaphosa said on Thursday. It will be the first expansion since 2010.

“We have consensus on the first phase of this expansion process and other phases will follow,” Ramaphosa said, sitting alongside other leaders from the group.

The inclusion of Saudi Arabia, the world’s largest oil exporter, along with Iran, the UAE and Brazil, would mean the group brings together several of the largest energy producers with the developing world’s largest consumers, giving it outsized economic clout. With most of the world’s energy trade taking place in dollars, the expansion also enhances the bloc’s ability to push more trade to alternative currencies.

An expanded BRICS would also mean more say for the group in world affairs and may lead to a different type of global economy, according to Bloomberg Economics. That’s because in comparison to the Group of Seven, the BRICS are less market-oriented.

#Kuwait's economic recovery faces 'substantial' risks - IMF | Reuters

Kuwait's economic recovery faces 'substantial' risks - IMF | Reuters

Kuwait's economic recovery is ongoing but risks to the oil producer's outlook "remain substantial" and gridlock between the government and parliament continues to delay reforms, the International Monetary Fund said on Wednesday.

The IMF's executive board, in an assessment following "Article IV" consultations with the Kuwaiti government, said real gross domestic product (GDP) is seen slowing to just 0.1% this year after 8.2% growth in 2022, mainly due to oil production cuts.

Kuwait is part of OPEC+, a producer group comprising the Saudi-led Organization of the Petroleum Exporting Countries and Russia-led allies, which has been cutting crude output since November to prop up prices.

The IMF in May had forecast real GDP to slow to 0.9%. Despite the expected stagnation, the IMF on Wednesday forecast real non-oil GDP growth at 3.8% this year from 4% in 2022.

"Given Kuwait's large fiscal and external buffers, it can undertake needed reforms from a position of strength. However, political gridlock between the government and Parliament could continue to delay reforms," the IMF said.

#Qatar Wealth Fund Invests $1 Billion in Mukesh Ambani’s Reliance Retail Ventures - Bloomberg

Qatar Wealth Fund Invests $1 Billion in Mukesh Ambani’s Reliance Retail Ventures - Bloomberg

Qatar’s sovereign wealth fund invested 82.78 billion rupees ($1 billion) into India’s biggest brick-and-mortar retailer as Asia’s richest man Mukesh Ambani looks to rapidly expand its operations and take on global competitors including Amazon.com Inc. and Walmart Inc.

The Qatar Investment Authority’s purchase translates into a stake of 0.99% in Ambani’s Reliance Retail Ventures Ltd. “on a fully-diluted basis,” the Mumbai-based firm said in a statement on Wednesday, adding that it values the company at $100 billion.

The deal comes as Ambani’s conglomerate is also considering a public listing for Reliance Retail and has started buying back shares in the unit and giving them to their employees as stock options. The subsidiary headed by Ambani’s daughter, Isha, has undertaken a swath of acquisitions as it challenges global rivals who are trying hard to establish a toe hold in India’s highly competitive retail sector dominated by mom-and-pop stores.

Isha Ambani called the QIA’s investment “a strong endorsement” of India’s economy and Reliance’s retail business.

Most Gulf markets in red on economic worries | Reuters

Most Gulf markets in red on economic worries | Reuters

Most stock markets in the Gulf ended lower on Wednesday as gloomy global manufacturing data grabbed attention ahead of an annual meeting of central bankers at Jackson Hole in the United States.

Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday gave a steer on the health of economies across the world.

Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.1% lower, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 0.9%.

Separately, the kingdom's Jadwa Investment has acquired a 35% equity stake in Kuwait's Gissah Perfumes Company, which is slated for a listing in Riyadh, the companies said in a joint statement on Wednesday.

In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - were slightly lower with Brent crude futures dropping 0.75% to $83.75 per barrel.

The Qatari index (.QSI) dropped 1.2%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.2%.

Markets are also looking for hints on the outlook for interest rates when Federal Reserve officials and policymakers from the European Central Bank (ECB), the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, on Thursday.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Dubai's main share index (.DFMGI), however, bucked the trend to finish 0.8% higher.

Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.5%.

#SaudiArabia’s Jadwa Buys 35% of Kuwait’s Gissah Perfumes Ahead of IPO - Bloomberg

Saudi Arabia’s Jadwa Buys 35% of Kuwait’s Gissah Perfumes Ahead of IPO - Bloomberg

Saudi private equity firm Jadwa Investment bought a 35% stake in Gissah Perfumes Co. ahead of the fragrance company’s planned initial public offering.

The investment, through Jadwa’s Retail Opportunities Fund, will enable Gissah to further solidify its market position and enhance business performance, Gissah Chief Executive Officer Bashar Al-Ameer said in a statement.

The firm, founded in Kuwait, plans to relocate to Saudi Arabia ahead of an IPO on the kingdom’s main market. It currently operates from 80 stores in 25 cities across Saudi Arabia, Kuwait, the United Arab Emirates and Bahrain.

Jadwa, which manages total client assets of about $20 billion, plans to invest about $532 million in new private equity deals and list stakes in three of its portfolio companies by 2025, Bloomberg News reported in December. It offloaded a 30% holding in Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, later that month.

Watch Shuaa AM's Chandrasekaran on Gulf Markets - Bloomberg video

Watch Shuaa AM's Chandrasekaran on Gulf Markets - Bloomberg

Aarthi Chandrasekaran, Director, Investments at Shuaa Asset Management discusses her fixed income outlook and why it would be a game-changer if Saudi Arabia and the UAE were to join the BRICS group. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)

Major Gulf markets mixed ahead of Jackson Hole meet | Reuters

Major Gulf markets mixed ahead of Jackson Hole meet | Reuters

Major stock markets in the Gulf were mixed in early trade on Wednesday ahead of an annual meeting of central bankers, with the Qatari index falling for a third session.

Markets await hints on the outlook for interest rates when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for an annual meeting later this week.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, helped by a 1.3% rise in petrochemical maker Saudi Basic Industries Corp (2010.SE).

Dubai's main share index (.DFMGI) gained 0.8%, led by a 1.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1.8% increase in top lender Emirates NBD (ENBD.DU).

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

Separately, Abu Dhabi's sovereign wealth fund, one of the world's largest, will double its investment in an Australian real estate private credit vehicle, the fund's manager said on Tuesday, as traditional lenders grow wary about the sector.

The Qatari benchmark (.QSI) declined 0.2%, on course to fall for a third session, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 2%.

On the other hand, IT services firm Meeza (MEZA.QA) jumped as much as 17.1% in debut trade from its initial public offering of 2.17 riyals ($0.5954).

BRICS Memmership Expansion Gets Interesting If Saudis Join, Jim O’Neill Says - Bloomberg

BRICS Memmership Expansion Gets Interesting If Saudis Join, Jim O’Neill Says - Bloomberg

Adding countries to the BRICS bloc will matter economically if Saudi Arabia is one of them but otherwise it’s hard to see the point, said Jim O’Neill, a prominent economist and veteran of Goldman Sachs Group Inc.

Saudi Arabia joining would be a “pretty big deal,” he told Bloomberg Television on Monday, noting that the nation’s traditionally close links with the US and its role as the world’s largest swing oil producer would add heft to the club.

Expansion of BRICS membership is top of the agenda for the summit being hosted this week by South Africa in the commercial capital of Johannesburg.

Most Gulf markets track oil prices lower; Egypt jumps | Reuters

Most Gulf markets track oil prices lower; Egypt jumps | Reuters

Most stock markets in the Gulf ended lower on Tuesday on falling oil prices, while the approaching Jackson Hole Symposium also weighed on investor sentiment.

Oil prices - which fuels the Gulf economy - were little changed as investors remained downbeat on China's economic malaise hobbling demand from the world's top crude importer, limiting the impact of supply cuts.

Saudi Arabia's benchmark index (.TASI) dropped 0.3%, extending losses from the previous session, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1%, while oil giant Saudi Aramco (2222.SE) was down 0.2%.

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

The Qatari benchmark (.QSI) gave up early gains to finish 0.1% lower, weighed down by a 1% fall in Commercial Bank (COMB.QA) and a 0.3% decrease in petrochemical maker Industries Qatar (IQCD.QA).

Dubai's main share index (.DFMGI) gained 0.4%, helped by a 1.4% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Dubai stock market remained stable with traders being cautious ahead of the Federal Reserve's event this week. Traders could monitor speeches from the Fed's governors for clues on monetary policy, said Ahmed Negm, Head of Market Research MENA at XS.com.

Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.7%, as most of the stocks on the index were in positive territory including tobacco monopoly Easter Company (EAST.CA), which jumped 8.5% after receiving several offers from foreign investors to buy up to 15.3% of the shares.

Egypt promised the International Monetary Fund it would roll back the state's involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December.

Egypt's petroleum ministry on Tuesday announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.

Mubadala’s Oil Refinery Acelen See Bonds in Distressed Territory - Bloomberg

Mubadala’s Oil Refinery Acelen See Bonds in Distressed Territory - Bloomberg

The new fuel policy implemented by state-run Petroleo Brasileiro SA is causing trouble for a Mubadala Capital-owned oil refinery, handing bondholders one of the worst returns in Latin America.

Mubadala’s Acelen, which operates the refinery in northeast Brazil, saw its notes fall into distressed territory at around 63 cents on the dollar, down 26 cents since February. The outlook for debt due in 2031 was cut to negative earlier this month by Moody’s Investors Service, which flagged growing risks to the firm’s cash generation.

The market’s increasing unease over the Mataripe refinery’s future says less about the company itself than it does about the fallout from Petrobras’ fuel policy. The government-controlled energy company has been selling gas and diesel in Brazil at a discount to international prices under President Luiz Inacio Lula da Silva, who began questioning why domestic prices were so high after taking office.

While the company raised fuel prices last week to reduce the gap with international levels, it has been selling fuels below international levels for much of this year.

Acelen says their refinery is at a disadvantage: On one hand, Petrobras, the dominant supplier in the country, is selling them crude at high prices. And on the other hand, they’re unable to compete with rival refineries that are putting out cheap gas and diesel to comply with the fuel policy. The allegations were made in a complaint to Brazil’s antitrust agency Cade in May.

#Dubai Real Estate: Dubai’s Property Boom Is Starting to Lure Chinese Buyers Back - Bloomberg

Dubai Real Estate: Dubai’s Property Boom Is Starting to Lure Chinese Buyers Back - Bloomberg

Chinese investors are gradually returning to Dubai’s real estate market, joining Russian and other international buyers who have already pushed property prices in the emirate to record levels.

At the city’s largest developer, Emaar Properties PJSC, buyers from the Asian nation doubled to 8% of the total during the first half of 2023 from 4% through 2022, according to a report by CI Capital, which cited an analyst call with the firm’s management. While those levels are still below the peak of 13% to 14%, Chinese demand could become a key factor in helping to shore up demand in the emirate’s property market.

Russians were the biggest buyers of Emaar developments during the first quarter and demand remains strong, according to the report’s author Sara Boutros. CI Capital estimates that Emaar sales are likely to reach 33 to 34 billion dirhams ($9.3 billion) this year, a 10% increase from 2022.

“Emaar’s nationality mix is important because the company acts as a proxy for the wider real estate market in Dubai,” she said, adding that the developer has the biggest market share with around 30% of all home sales ahead of construction.

Dubai’s property market has been booming, bucking the trend in many parts of the world, where home values have dropped amid surging interest rates and a darkening growth outlook. The recovery, which capped seven years of price declines, started after the pandemic and was fueled by an influx of newcomers — from crypto millionaires and bankers relocating from Asia to wealthy Russians seeking to shield assets.