Egyptian bourse registers biggest annual gain since 2016 | Reuters

Egyptian bourse registers biggest annual gain since 2016 | Reuters

Most stock markets in the Middle East ended higher on Sunday, with the Egyptian index chalking up its biggest annual gain since 2016, helped by investors hedging against high inflation and a weak domestic currency.

Egypt's blue-chip index (.EGX30) advanced 0.8%, extending its 2023 gains to a 70.5%.

Top lender Commercial International Bank (COMI.CA) was up 75% over the year while tobacco monopoly Eastern Company (EAST.CA) concluded the year 98.5% higher than at the start of 2023.

Annual inflation in Egypt had been working its way higher for two years, hitting a record 38% in September.

In the past few months an already weakened currency has plunged to about 50 pounds to the US dollar on the black market compared with the official rate of 30.85 pounds.

Saudi Arabia's benchmark index (.TASI) rose 0.3%, up 14.2% over the year, on expectations of interest rate cuts in 2024.

Oil giant Saudi Aramco (2222.SE) added 13.1% for its biggest annual gain since listing in December 2019 despite receding oil prices.

Markets expect the Federal Reserve to start cutting US interest rates in March, according to the CME FedWatch tool, a shift from assumptions last month.

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

However, the Saudi index gains were capped by weak oil prices.

Oil prices, which fuel the Gulf economies, dropped more than 10% in 2023, ending a two-year winning streak, as geopolitical concerns, production cuts and central bank measures to rein in inflation triggered big price fluctuations.

A Reuters survey of 34 economists and analysts forecast that Brent crude will average $82.56 in 2024, down from November's $84.43 consensus, on expectations that weak global growth will cap demand. Continuing geopolitical tensions, however, could provide price support.

The benchmark index (.QSI) in Qatar, the world's top exporter of liquefied natural gas (LNG), advanced 2.3% but was up only 1.4% annual for the year.

US natural gas futures fell nearly 44% in 2023 for their biggest annual percentage fall since 2006, pressured by record production, ample inventories and relatively mild weather.

Elsewhere, the Bahrain bourse (.BAX) registered a 4% annual gain while the Oman market (.MSX30) was down more than 7% for the year.

BRICS to Grow as #Saudi, #Iran, #UAE, Egypt, Ethiopia Join Ranks - Bloomberg

BRICS to Grow as Saudi, Iran, UAE, Egypt, Ethiopia Join Ranks - Bloomberg

Membership of the BRICS group of emerging-market nations is set to double, with Saudi Arabia, Iran, the United Arab Emirates, Ethiopia and Egypt to join its ranks on Jan. 1, South Africa’s envoy to the bloc said.

Current members Brazil, Russia, India, China and South Africa in August invited six other nations to become part of their group, pairing some of the planet’s largest energy producers with some of the biggest consumers among developing countries. Only Argentina declined the invitation after President Javier Milei, who took office this month, reversed his predecessor’s membership bid.

The five invitees sent senior-level representatives to a BRICS sherpa meeting in Durban, South Africa, earlier this month and they fully participated in the gathering, “a clear indication that they have accepted the invitation” to join, Anil Sooklal, Pretoria’s ambassador to the bloc, said in an interview Friday.

The new members will also send officials to a sherpa meeting in Moscow on Jan. 30, he said.

“BRIC” was coined in 2001 by economist Jim O’Neill, then at Goldman Sachs Group Inc., to draw attention to strong economic growth rates in Brazil, Russia, India and China. The term was intended as an optimistic scenario for investors amid market pessimism following the terrorist attacks in the US on Sept. 11 that year. The group held its first leaders’ summit in 2009 and invited South Africa to join a year later, adding another continent and the letter “S.”

About 30 countries want to establish ties with the bloc, Russian Foreign Affairs Minister Sergey Lavrov was cited by news agency Tass as saying this week.

Nigeria, Africa’s most populous nation, will seek to become a member of BRICS within the next two years, Minister of Foreign Affairs Yusuf Tuggar said in November.

Except for India, the BRICS have underperformed their emerging-market peers over the last five years, according to Bloomberg Intelligence. US-led sanctions have put Russia off limits for many foreign investors, and some sectors in China — especially technology companies — have also been sanctioned or face potential investment bans.

#Saudi Stocks Eye Bull Market as Rates Optimism Offsets Lower Oil - Bloomberg

Saudi Stocks Eye Bull Market as Rates Optimism Offsets Lower Oil - Bloomberg

Saudi stocks were set to enter a bull market as optimism about lower interest rates outweighed sliding oil prices, which are still the country’s main source of income.

The Tadawul All Share Index rose as much as 0.4% on Sunday, taking gains since the March lows to just over 20%. A fourth-quarter rally was largely driven by growing optimism that the Federal Reserve will shift to cutting interest rates in 2024. Central banks in the Gulf, like Saudi Arabia’s, largely follow the US monetary regulator’s decisions in order to protect their currency pegs to the dollar.

A fund manager survey from Saudi brokerage SNB Capital showed investors adopted a positive outlook in the fourth quarter and bearish views decreased to a record low — a sign sentiment has shifted from early October, when the index erased its 2023 gains on the back of the Israel-Hamas war. Survey participants continued to expect that oil prices, interest rates and inflation will be the main market drivers.

Crude prices slid in the fourth quarter as surging production from the US and elsewhere countered efforts by the OPEC+ alliance to shore up the market through output cuts. The outlook for demand is also fragile, with the International Energy Agency forecasting that growth will slow sharply next year.

But even as oil giant Saudi Aramco dropped nearly 6% in the last three months of 2023, it’s still the biggest contributor to the Tadawul’s gain this year. Al Rajhi Bank and utility firm ACWA Power Co. were also among the top gainers.

#UAE markets gain on rate cut bets | Reuters

UAE markets gain on rate cut bets | Reuters

UAE stock markets closed higher on the last trading day of 2023, with the Dubai index rising for a third year on expectations for interest rate cuts in 2024.

Dubai's benchmark index (.DFMGI) gained 0.3% on Friday, lifted by a 1.3% rise in toll operator Salik Company (SALIK.DU), while top lender Emirates NBD Bank increased 0.9%.

The Dubai index, which hit its highest in nearly eight years in early October, finished the year 21.8% higher.

It was supported by gains in heavyweight real estate and banking sectors in 2023, as blue-chip developer Emaar Properties (EMAR.DU) ended the year up 35.2% and Emirates NBD 33.1% higher.

The Dubai market gained strongly during the first half of the year, but steadied and then retreated in reaction to the flare-up in geopolitical tensions in the region, said Abdelhadi Laabi, chief marketing officer at KAMA Capital. However, "the market was able to recover a significant part of its losses, returning to an uptrend".

Abu Dhabi's main index (.FTFADGI) edged up 0.1% in a volatile session on Friday, supported by a 4.8% surge in state-run utility Abu Dhabi National Energy Company (TAQA.AD) and a 2.2% jump in conglomerate International Holding Company (IHC) (IHC.AD).

The Abu Dhabi index fell 6.2% for the year, breaking a two-year winning streak, with the first quarter seeing the highest losses for nine years, according to LSEG data.

IHC, the UAE's most valuable listed firm, fell 2.6%, its first annual loss in five years, while top lender First Abu Dhabi Bank dropped (FAB.AD) 18.4%, extending losses to second year.

"The Abu Dhabi stock market was more volatile than its (Dubai) counterpart and was affected by the uncertainty and rapid changes in the oil markets' conditions," Abdelhadi said.

Expectations for softer U.S. monetary policy could fuel risk appetite, lower financing costs and boost UAE stocks in 2024, Abdelhadi added.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the U.S. Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Oil prices - a key contributor to Gulf economies - ended 2023 about 10% lower after two years of gains, as geopolitical concerns, production cuts and central bank measures to rein in inflation triggered big fluctuations in prices.

On Friday, Brent crude was up 0.7% to $77.67 a barrel at 1203 GMT.

Norwegian Pension Fund KLP Blacklists #Saudi Aramco, Other Gulf Companies - Bloomberg

Norwegian Pension Fund KLP Blacklists Saudi Aramco, Other Gulf Companies - Bloomberg

Norway’s largest pensions’ manager divested $15 million from Gulf companies on concerns they may facilitate human rights violations, and decided to exclude Saudi Aramco because of climate risks.

KLP, which oversees $70 billion, blacklisted a dozen companies listed in Saudi Arabia, Qatar, the United Arab Emirates and Kuwait from its investment universe. The divestments mostly reflect an “unacceptable” risk of contributing to human rights abuses, KLP said, with Aramco targeted separately for its negative impact on the environment.

The excluded firms included companies in the real estate sector, where KLP says migrant workers from Africa and Asia have faced discrimination and human rights violations. The pension fund also targeted the telecommunications sector, where it cited the development of artificial intelligence as reinforcing the risk of surveillance and censorship in the region.

“Gulf states remain characterized by authoritarian systems of government that restrict freedom of expression and political rights, including of critics and human rights activists,” said Kiran Aziz, KLP’s head of responsible investment, in a statement.

The stocks which were blacklisted were mixed on Thursday, with some trading higher along with emerging-market peers, while others slipped. Aramco edged lower, tracking an overnight drop in oil. Foreign investors generally have a smaller exposure to Gulf markets — which comprise just over 7% of the MSCI Emerging Markets Index — due to smaller free floats and more recent inclusions to the benchmark.

#UAE's e& ends talks to hike stake in #Saudi telco Mobily | Reuters

UAE's e& ends talks to hike stake in Saudi telco Mobily | Reuters

The United Arab Emirates telecoms group e& (EAND.AD) said on Friday it had ended talks to raise its stake in Saudi Arabia's Etihad Etisalat (Mobily) (7020.SE) to 50% and one share (7020.SE).

"Emirates Telecommunications Group Co e& has terminated discussions regarding a possible increase in its shareholding in Mobily," e& said in a company filing on the Abu Dhabi exchange.

"Following a period of engagement, a way forward to conclude the potential transaction could not be determined. Hence, e& has now decided not to pursue the financial transaction."

Formerly called Etisalat, e& is Mobily's biggest shareholder with a 27.99% stake. In March last year, e& made the offer to raise its stake and suggested a price of 47 riyals ($12.53) per share.

E& said it will continue to focus on supporting Mobily as its major shareholder and remains positive about the company's future within the rapidly growing Saudi market.

#UAE's #AbuDhabi sees non-oil GDP growth of 7.7% in Q3 2023 -statement | Reuters

UAE's Abu Dhabi sees non-oil GDP growth of 7.7% in Q3 2023 -statement | Reuters

United Arab Emirates' capital Abu Dhabi posted third-quarter non-oil gross domestic product (GDP) growth of 7.7%, the government media office reported on Friday citing the emirate's statistics agency.

The emirate registered overall economic growth of 1% in Q3 year on year, according to preliminary estimates released by the Statistics Centre-Abu Dhabi (SCAD) to reach 290.5 billion dirhams ($79.11 billion).

Abu Dhabi registered 2.8% growth in real GDP over the first nine months of 2023 compared to the same period a year prior and 8.6% growth in non-oil activities.

Lower production and oil prices this year have weighed on overall growth but Gulf states have all stepped up efforts to diversify their economies and income sources away from hydrocarbons to plan for more sustainable growth in the long term.

Abu Dhabi holds the vast majority of the OPEC member's oil reserves but has accelerated the development of sectors such as manufacturing and tourism.

Non-oil activities account for more than 50% of the emirate's overall economy, with manufacturing contributing 17% to non-oil GDP in Q3 and 9% to its overall GDP.

Foreign investment into Abu Dhabi grew by 9.7% in 2022, according to SCAD data, to reach more than 831 billion dirhams.

#UAE leads Gulf real estate deals in 2023

UAE leads Gulf real estate deals in 2023

An economic report has highlighted the UAE topped Gulf Cooperation Council (GCC) countries, acquiring the highest share of the total value of real estate deals conducted during the first ten months of 2023, surpassing the expectations for the entire year of 2022.

The report, issued today by Kamco Invest company indicated that the value of real estate deals in the GCC countries reached $171.6 billion from January to October 2023, marking a growth of 21.1 percent annually as compared to $141.7 billion in the same period of 2022.

The report highlighted that Dubai accounted for 52.1 percent of the total value of real estate deals executed across all GCC countries. The value of real estate deals in Dubai surged by almost 57 percent annually during the first ten months of 2023, driven significantly by the rise in prices of leading developers and increased demand for luxury properties under construction for both single-family and multi-family homes valued at over AED5 million.

Additionally, the report pointed out that the value of real estate deals in Abu Dhabi jumped by 56 percent during the first nine months of 2023. This contributed to the performance of the UAE markets in enhancing the overall value of real estate deals for the GCC countries during the first ten months of the current year, surpassing the estimates for the entire 2022, which stood at $165.8 billion.

Furthermore, according to Kamco Invest's report, real estate stock indices in the UAE and Saudi Arabia continued their strong performance, witnessing significant gains during the first 11 months of the current year.

As per the Gulf real estate total yield index released by Refinitiv, the sector's performance rose by 19.2 percent, surpassing the Morgan Stanley Gulf Index. This growth was propelled by the strong performance of real estate development indices in Dubai by 32.9 percent, Abu Dhabi by around 29 percent, and Saudi Arabia by 21.4 percent.

#Saudi’s Maaden announces discovery of significant new gold reserves

Saudi’s Maaden announces discovery of significant new gold reserves

Saudi Arabian Mining Company (Maaden) has found a significant gold resource potential extending a 100 km stretch from the existing Mansourah Massarah gold mine.

This is the first discovery under the company’s extensive exploration programme launched in 2022.

Encouraging drill results from multiple sites on Uruq South, along a 100km stretch south of Mansourah Massarah, have uncovered similar geological characteristics and chemistry to the Mansourah Massarah deposit, the Saudi-listed mining company said in a statement on Thursday.

These results include high-grade drill intercepts found 400 meters away from and under Mansourah Massarah, with several high-grade intercepts.

In addition, Maaden has continued the expansion of its exploration footprint at the Jabal Ghadarah and Bir Tawilah, prospects 25km north of Mansourah Massarah.

In combination, these positive drilling results have identified a potential 125 km strike with significant potential to become a major world-class gold belt in Saudi Arabia.

Most Gulf bourses gain on US rate cut bets | Reuters

Most Gulf bourses gain on US rate cut bets | Reuters

Most stock markets in the Gulf gained on Thursday, tracking global shares higher on optimism that the U.S. Federal Reserve could begin cutting interest rates early next year.

The MSCI world equity index (.MIWD00000PUS), which tracks shares in 47 countries, gained 0.2%, with European shares steady and just shy of a 23-month high hit two weeks ago.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.4%, led by a 1.5% rise in ELm Co (7203.SE), while Saudi Arabian Mining Company (Maaden) (1211.SE) finished 2.2% higher.

Maaden said on Thursday it had discovered multiple gold deposits south of its existing Mansourah Massarah gold mine, indicating the potential to expand gold mining in the area.

However, oil giant Saudi Aramco (2222.SE) lost 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - fell around 1% as concerns eased about shipping disruptions along the Red Sea route.

Dubai's main share index (.DFMGI) added 0.3%, helped by a 0.9% increase in blue-chip developer Emaar Properties (EMAR.DU).

The Dubai stock market continued to record gains albeit in small increments. The market could benefit from the improving sentiment among investors with expectations leaning toward interest rate cuts, said Hani Abuagla, Senior Market Analyst at XTB MENA.

"Strong local fundamentals could also help attract investors to the market and secure positive performances."

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

The Qatari benchmark (.QSI) climbed 0.6%, rising for a 10th consecutive session, driven by a 1.5% gain in the Gulf's biggest lender Qatar National Bank (QNBK.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) increased 1.4%, with top lender Commercial International Bank (COMI.CA) gaining 1.4%.

Mideast Stocks: Most Gulf bourses rise on US rate cut bets

Mideast Stocks: Most Gulf bourses rise on US rate cut bets

Most major stock markets in the Gulf rose in early trade on Thursday, tracking an overnight rally in U.S. stocks on optimism that the U.S. Federal Reserve could begin cutting interest rates early next year.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index gained 0.5%, with Elm Co rising 1.3% and auto rental firm Lumi putting on 1.2%.

Oil giant Saudi Aramco, however, eased 0.3%.

Oil prices - a catalyst for the Gulf's financial markets - steadied after falling sharply in the previous session, as concerns eased about shipping disruptions along the Red Sea route even as tensions in the Middle East continued to rise.

Dubai's main share index added 0.4%, with sharia-compliant lender Dubai Islamic Bank rising 0.9%.

The Abu Dhabi index was up 0.3%.

In Qatar, the benchmark index dropped 0.6%, on course to snap a nine-session winning streak, and most of the stocks were in negative territory.

Foreign direct investment in #Oman nears $59bln

Foreign direct investment in Oman nears $59bln

Foreign direct investment (FDI) in the Sultanate of Oman reached OMR22.96 billion by the end of the third quarter of 2023, according to preliminary data issued by the National Centre for Statistics and Information (NCSI).

The oil and gas extraction sector received 76.9 percent of total foreign investment, with a total value of OMR17.67 billion.

The FDI in the converting industries sector reached OMR1.40 billion by the end of the third quarter of 2023. The financial brokerage activity received FDI worth OMR1.53 billion, while the FDI in real estate, leasing and commercial activities reached OMR1.03 billion, according to the NCSI data.

Further, FDI in various other sectors were, electricity and water (OMR466.3 million), transport, storage and communication (OMR361.9 million), trade (OMR216 million), hotel and restaurants (OMR111.4 million), construction (OMR82.1 million) and other activities (OMR78.9 million).

The NCSI data further reveals that foreign direct investment from the United Kingdom reached OMR11.52 billion, constituting 50.1 percent of the total foreign direct investment.

The FDI from the United States of America was OMR3.88 billion, the United Arab Emirates OMR1.27 billion, the State of Kuwait OMR922.30 million and the Kingdom of Bahrain OMR732.6 million. The foreign direct investment from the People’s Democratic Republic of China reached OMR594.50 million, Qatar OMR 442.30 million, the Kingdom of the Netherlands OMR374.7 million, the Swiss Confederation OMR288.30 million, the Republic of India OMR277.80 million and other countries OMR2.65 billion.

#UAE Financial markets to close for New Year on Monday

UAE Financial markets to close for New Year on Monday

The Securities and Commodities Authority (SCA) announced today that financial markets in the United Arab Emirates will be closed on Monday, 1st January, 2024, in observance of the New Year holiday.

Trading activities will resume on Tuesday, 2nd January, 2024, as per the SCA's usual business hours.

This decision aligns with the Federal Authority for Government Human Resources' circular on the New Year holiday for 2024 in the federal government. The SCA worked in coordination with the Abu Dhabi Securities Exchange, the Dubai Financial Market, and the Dubai Gold and Commodities Exchange to ensure a unified approach across all markets.

Most Gulf bourses gain on US rate cut bets | Reuters

Most Gulf bourses gain on US rate cut bets | Reuters

Most stock markets in the Gulf ended higher on Wednesday on optimism that the U.S. Federal Reserve will start cutting interest rates early next year, although geopolitical tensions limited gains.

The rate cut expectations were boosted by U.S. data released on Friday that showed that by some key measures inflation was now at or below the central bank's 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by a 6.3% jump in Etihad Atheeb Telecommunication (7040.SE).

Dubai's main share index (.DFMGI) added 0.2%, with blue-chip developer Emaar Properties (EMAR.DU) rising 1.3%.

The Dubai bourse recorded limited price developments and continued to move sideways during the last few days. The market could continue to stagnate for the remaining trading sessions of the year, Ahmed Negm, Head of Market Research MENA at XS.com.

"However, it could benefit from the improving sentiment on a global scale."

In Qatar, the index (.QSI) advanced 0.6%, rising for a ninth session, led by a 1.5% gain in the Gulf's biggest lender Qatar National Bank (QNBK.QA).

The Abu Dhabi index (.FTFADGI) finished 0.1% higher.

Israel's war against Hamas will last for months, Israel's military chief said on Tuesday, while the United Nations voiced alarm over an escalation of Israeli attacks that killed more than 100 Palestinians over two days in part of the Gaza Strip.

Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.5%, with most of its constituents gaining, including tobacco monopoly Eastern Company (EAST.CA), which was up 3.7%.

Two large direct deals on Eshraq Investments, National Bank of Fujairah worth over $28mln at ADX

Two large direct deals on Eshraq Investments, National Bank of Fujairah worth over $28mln at ADX

The Abu Dhabi Securities Exchange (ADX) today saw two large direct deals executed on the stocks of Eshraq Investments and National Bank of Fujairah (NBF).

The two large direct deals were executed on 102.3 million shares worth AED104.3 million.

According to ADX data, the first trade was executed on NBF on 15.2 million shares worth AED68.7 million at a price of AED4.5 per share.

The second trade was executed on Eshraq Investments on 87.07 million shares worth AED35.6 million at a price of AED0.409 per share.

Large direct deals are trades that are executed outside the order book and do not affect the closing price of the relevant company's stock or the price index. They also do not affect the highest and lowest prices that were executed during the session and during the last 52 weeks.

Most major Gulf markets gain on US rate cut bets | Reuters

Most major Gulf markets gain on US rate cut bets | Reuters

Most major Gulf stock markets rose in early trade on Wednesday on optimism that the US Federal Reserve could begin cutting rates as early as March, although geopolitical tensions in the region limited gains.

The rate cut expectations were boosted by US data released on Friday showed that by some key measures inflation was now at or below the central bank's 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Etihad Atheeb Telecommunication (7040.SE) rising 2.9% and oil company Saudi Aramco (2222.SE) adding 0.5%.

Separately, Saudi Arabia's cabinet on Tuesday announced its approval of contracting regulations for firms that do not have regional headquarters in the Kingdom, Saudi state news agency SPA reported.

The decision comes just days before Saudi Arabia's January 2024 deadline for companies to move their regional headquarters to the kingdom or risk losing hundreds of billions of dollars in lucrative government contracts.

The Qatari index (.QSI) added 0.1%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA) putting on 1.1%.

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

Trading volumes were mostly low because of the absence of many foreign investors for Christmas and New Year holidays.

Dubai's main share index (.DFMGI) eased 0.2%, with top bank Emirates NBD (ENBD.DU) down 0.6%.

#Saudi cabinet approves contracting rules for firms not based there | Reuters

Saudi cabinet approves contracting rules for firms not based there | Reuters

Saudi Arabia's cabinet on Tuesday announced its approval of contracting regulations for firms that do not have regional headquarters in the Kingdom, Saudi state news agency SPA reported.

The decision comes just days before Saudi Arabia's January 2024 deadline for companies to move their regional headquarters to the kingdom or risk losing hundreds of billions of dollars in lucrative government contracts.

The statement on the cabinet meeting did not disclose the regulations. It is not clear if they permit the government to award contracts to foreign companies that do not have regional headquarters in Saudi Arabia.

Saudi officials did not immediately respond to requests for comment outside regular business hours.

Finance Minister Mohammed Al Jadaan told Reuters in October that the deadline for a move would be enforced, even as foreign firms struggled to meet the deadline amid unclear regulations.

The ultimatum, part of efforts by Crown Prince Mohammed bin Salman to wean the economy off oil and draw foreign business into the kingdom, puts Riyadh in competition with its neighbour the United Arab Emirates, the traditional financial hub of the region.

#Dubai Real Estate Markets Braces for 2024 slowdown - Bloomberg

Dubai Real Estate Markets Braces for 2024 slowdown - Bloomberg

Just nine months after buying their first property in Dubai, Dina Habib and Karim Yusuf are already planning their next move within the city.

The Egyptian couple, who spent eight years renting in the emirate, are selling their two-bedroom apartment in the Jumeirah Village Circle district on the edge of Dubai for a 26% premium over the 1.7 million dirhams ($460,000) they paid for the property in March.

Habib is hoping to secure a larger property for her family of three for the same price or less.

“For many years, we’ve paid someone else’s mortgage because we were scared to buy in a market that went up and down,” said the 39-year-old researcher. “Now, we think the market may have peaked and so we’re planning to sell and buy a house with a garden next year when prices hopefully fall a bit.”

Habib and Yusuf are among hundreds of thousands of homeowners attempting to navigate Dubai’s red-hot housing market, which has outperformed most others around the world this year. They join tenants, property analysts and developers in trying to predict whether the market is finally starting to turn as a slew of new properties are delivered and global economic uncertainty catches up with the emirate.

So far, the boom has been underpinned by an influx of wealthy investors such as Russians seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government’s handling of the pandemic and its liberal visa policies also attracted more foreign buyers.

#Saudi: WSM plans to trade 20% of shares on Nomu

Saudi: WSM plans to trade 20% of shares on Nomu

WSM Digitalization and Transformation Company intends to float 390,000 ordinary shares, representing 20% of its total shares, on the Parallel Market (Nomu) of the Saudi Exchange (Tadawul).

KASB Capital Company is acting as the financial advisor and lead manager for the potential transaction, according to a bourse filing.

The offering period will take place from 25 January to 1 February 2024, while the price of the final offering will be announced following the book-building period.

Tadawul greenlighted WSM’s request to trade on Nomu in January 2023, while the Capital Market Authority (CMA) granted its approval on 25 September this year.

Most Gulf markets in black on US rate cut bets | Reuters

Most Gulf markets in black on US rate cut bets | Reuters

Most stock markets in the Gulf ended higher on Tuesday as cooling U.S. inflation supported the view that the Federal Reserve could cut borrowing costs next year.

The market expectations grew after U.S. data released on Friday showed that by some key measures inflation was now at or below the central bank's 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the Federal Reserve, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) gained 0.5%, led by a 3.5% jump in Etihad Atheeb Telecommunication (7040.SE) and a 1.9% rise in Alinma Bank (1150.SE).

Dubai's main share index (.DFMGI) added 0.3%, helped by a 1.3% increase in blue-chip developer Emaar Properties (EMAR.DU).

The Dubai stock market continued to see limited movement and could remain in an uncertain direction for the remaining trading sessions this year, said George Khoury, Global Head of Education and Research at CFI.

"However, the market could benefit from the expectations of improving monetary policy conditions in the coming months."

In Abu Dhabi, the index (.FTFADGI) reversed early losses to close 0.3% higher.

The Qatari benchmark (.QSI) inched 0.1% higher, rising for an eighth consecutive session, with Qatar Islamic Bank (QISB.QA) gaining 2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 1%, weighed down by a 1.5% fall in Commercial International Bank (COMI.CA).

Separately, a drone was downed near the Egyptian Red Sea resort city of Dahab on Tuesday, in the second such incident in a month, Reuters reported citing two security sources.

Oil steadies as investors eye Middle East tensions and US rate cut | Reuters

Oil steadies as investors eye Middle East tensions and US rate cut | Reuters

Oil steadied on Tuesday, finding support from geopolitical tensions in the Middle East and investor optimism that the U.S. Federal Reserve would soon start cutting interest rates, boosting global economic growth and fuel demand.

While hopes of rate cuts and conflict in the Red Sea have led to a rebound in crude prices, Maersk's announcement of a restart of shipping routes through the waterway has alleviated supply concerns to a certain extent, said CMC Market analyst Leon Li.

Brent crude futures slipped 7 cents, or 0.1%, to $79.00 a barrel by 1030 GMT while U.S. West Texas Intermediate crude fell 28 cents, or 0.4%, to $73.28.

"The lack of oil supply disruptions is offsetting the support to prices from ongoing geopolitical tensions in the Middle East," said UBS analyst Giovanni Staunovo, adding that trade was thin and in a narrow range typical of holiday periods.

Volume is light because some markets are closed for public holidays.

Major Gulf bourses mixed in early trade | Reuters

Major Gulf bourses mixed in early trade | Reuters

Major stock markets in the Gulf were mixed in early trade on Tuesday on optimism that the U.S. Federal Reserve would cut interest rates while geopolitical tensions in the Middle East weighed on investor sentiment.

Saudi Arabia's benchmark index (.TASI) gained 0.8%, led by a 2.5% increase in Al Rajhi Bank (1120.SE) and a 2.6% increase in Alinma Bank (1150.SE).

Market expectations that the Fed would cut interest rates next year grew after U.S. data released on Friday showed that by some key measures inflation was now at or below the central bank's 2% target.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the Federal Reserve, as most regional currencies are pegged to the dollar.

Dubai's main share index (.DFMGI) added 0.2%, helped by a 0.4% increase in blue-chip developer Emaar Properties (EMAR.DU).

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

Israeli Prime Minister Benjamin Netanyahu has vowed to keep fighting in Gaza until Hamas is destroyed, defying global calls for a ceasefire amid concerns the conflict could spread with U.S. and Iran-aligned forces again attacking each other.

Meanwhile, shipping firms had suspended the passage of vessels through the Red Sea that connects with the Suez Canal, which handles about 12% of world trade, and imposed surcharges for re-routing ships.

The Qatari benchmark (.QSI) retreated 0.5%, on course to snap seven sessions of gains, dragged down by a 0.9% fall in petrochemical maker Industries Qatar (IQCD.QA).

Most Gulf markets gain as US inflation moderates | Reuters

Most Gulf markets gain as US inflation moderates | Reuters

Most stock markets in the Gulf rose on Monday with cooler-than-expected U.S. inflation data supporting the view that the Federal Reserve could cut borrowing costs in the new year.

Last week's Commerce Department report showed U.S. prices fell in November for the first time in more than 3-1/2 years, pushing the annual increase in inflation further below 3%.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the Federal Reserve, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) advanced 1.1%, buoyed by a 2.6% rise in Al Rajhi Bank (1120.SE) and a 1.8% gain for auto rental firm Lumi (4262.SE).

Dubai's main share index (.DFMGI) eased 0.1%, hit by a 0.9% fall in blue-chip developer Emaar Properties (EMAR.DU).

The Dubai stock market was constrained within the trading levels of recent days, noted Daniel Takieddine, CEO MENA at BDSwiss.

"The market could be exposed to some price correction risks after a small rebound," he said.

The Qatari benchmark (.QSI) closed 0.5% higher, rising for a seventh session, with Qatar Islamic Bank (QISB.QA) gaining 1% and sharia-compliant lender Masraf Al Rayan (MARK.QA) up 2%.

"The market could turn to price corrections if traders move to secure their gains," Takieddine said. "Uncertainty regarding developments in energy markets could also remain a source of risk."

Outside the Gulf, Egypt's blue-chip index (.EGX30) rose 1.6%, led by a 3.6% increase in top lender Commercial International Bank (COMI.CA).

Most major Gulf markets gain in early trade | Reuters

Most major Gulf markets gain in early trade | Reuters

Most major stock markets in the Gulf edged higher in early trade on Monday with cooler-than-expected U.S. inflation data supporting the view that the Federal Reserve could cut borrowing costs in the new year.

Trading volumes were mostly low because of the absence of many foreign investors for Christmas and New Year holidays.

The Commerce Department report showed U.S. prices fell in November for the first time in more than 3-1/2 years, pushing the annual increase in inflation further below 3%.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index (.TASI) rose 0.2%, supported by a 1.2% gain in auto rental firm Lumi (4262.SE) and a 0.6% increase in Al Rajhi Bank (1120.SE).

Dubai's main share index (.DFMGI) eased 0.3%, hit by a 0.9% decline in top lender Emirates NBD (ENBD.DU) and a 0.5% decrease in blue-chip developer Emaar Properties (EMAR.DU).

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

The Qatari benchmark (.QSI) rose 0.4%, on course to gain for seventh session, led by a 2% rise in sharia-compliant lender Masraf Al Rayan (MARK.QA).

Most Gulf bourses gain on rate cut bets; Egypt dips | Reuters

Most Gulf bourses gain on rate cut bets; Egypt dips | Reuters

Most stock markets in the Gulf ended higher on Sunday as cooler-than-expected U.S. inflation data supported the view that the Federal Reserve could cut borrowing costs early in 2024.

The U.S. Commerce Department report showed prices fell in November for the first time in more than 3-1/2 years.

The Fed signaled at its Dec. 13 meeting that it had reached the end of its tightening cycle and opened the door to interest rate cuts in the coming year.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.

The Qatari index (.QSI) rose for a sixth straight session, ending 1.1% higher, with all sectors in positive territory.

Qatar Islamic Bank (QISB.QA) climbed 3.3% and Commercial Bank (COMB.QA) surged 1.9%.

Saudi Arabia's benchmark index (.TASI) rose 0.6%, following two consecutive sessions of losses, aided by gains in all sectors, with Etihad Atheeb Telecommunication Co (7040.SE) advancing 3.7% and Lumi Renta (4262.SE) surging 3.1%.

The world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE), gained 1.3%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) was down for the fourth consecutive session and ended 2% lower, hit by a 3.2% loss in Commercial International Bank (COMI.CA) and a 5.1% drop in E-Finance (EFIH.CA).

KPMG #Dubai partners raised concerns about Freshfields review

KPMG Dubai partners raised concerns about Freshfields review

KPMG partners in Dubai raised concerns about the cost and transparency of a $1.5mn review by lawyers at Freshfields that followed allegations of misconduct at the Big Four firm. 

The review was announced in July 2022 after the FT reported allegations of nepotism by KPMG’s then-boss in the United Arab Emirates, Nader Haffar, whose tenure had been extended by five years after a snap vote with no opponents. Freshfields also advised on a fresh leadership election as part of the mandate. 

Board members complained they were being kept in the dark about the “magic circle” law firm’s investigation, according to new information disclosed to the Financial Times. One person with knowledge of the matter said board members did not receive a copy of any Freshfields report. 

They were also told that the law firm had been “swayed” on matters where its view had differed to that of KPMG’s local governance review committee, which commissioned Freshfields and ran the process, according to the information disclosed. 

The board members also questioned why Freshfields was being paid so much and why KPMG had bypassed the normal procedure for procurement worth more than $500,000, which insiders said required executive committee approval after obtaining at least three quotes. 

KPMG’s UAE and Oman business, called KPMG Lower Gulf, never published Freshfields’ recommendations. 

KPMG International and KPMG Lower Gulf declined to say whether Freshfields produced a written report or to comment on any of the governance issues raised in this article.

#AbuDhabi's IRH to invest $1.1 bln in Zambia's Mopani Copper Mines | Reuters

Abu Dhabi's IRH to invest $1.1 bln in Zambia's Mopani Copper Mines | Reuters

The United Arab Emirates' International Resources Holdings (IRH) will invest $1.1 billion in Zambia's Mopani Copper Mines in return for 51% ownership of the business, the state-owned ZCCM Investments Holdings (ZCCM-IH) (ZCCM.LZ) said on Friday.

Last month, Zambia picked IRH, a unit of Abu Dhabi's most valuable listed company, International Holdings Company (IHC), as the strategic equity partner in Mopani, which was coveted by several investors looking for copper assets.

Zambia had been seeking a new investor for Mopani since it took control of the assets from Glencore in 2021 after agreeing to pay the Swiss commodities company $1.5 billion in a deal funded by debt.

IRH's $1.1 billion investment would be used to fund Mopani's production expansion plan, provide working capital and pay off part of the $1.5 billion debt owed to previous owner Glencore (GLEN.L), ZCCM-IH said in a statement.

#Saudi-backed fund hit as #UAE oil storage Spac runs into trouble

Saudi-backed fund hit as UAE oil storage Spac runs into trouble

A Saudi Arabia-backed investment fund is liquidating the holding company of a United Arab Emirates oil storage company that has been plagued by financial reporting issues since going public in New York. 

Brooge Energy Limited listed its shares on Nasdaq in 2019 through a merger with a special acquisition company that gave it a market valuation of more than $1bn. 

The operator of oil storage facilities in the emirate of Fujairah had the backing of powerful Middle East investors including Sheikh Mohammed bin Khalifa bin Zayed Al Nahyan, the son of the previous president of the UAE, and claimed in its prospectus to have signed big contracts with unnamed international trading companies. 

But Brooge subsequently had two Big Four auditors resign, restated tens of millions of dollars of improperly booked revenue from a related party and became subject to an examination of its financial statements from the US Securities and Exchange Commission. 

Last month, an investment fund managed by Bahrain’s Asma Capital placed Brooge’s majority shareholder BPGIC Holdings into liquidation over unpaid debts. Asma is backed by Gulf sovereign entities such as Saudi Arabia’s Public Investment Fund, the Islamic Development Bank and Bahrain’s finance ministry. 

BPGIC Holdings borrowed $75mn from Asma’s fund in 2019, but never paid any interest on the debt, according to Cayman Island court filings related to its insolvency, racking up more than $30mn of unpaid interest.

#Dubai up on rate cut bets, #AbuDhabi falls | Reuters

Dubai up on rate cut bets, Abu Dhabi falls | Reuters

Dubai stocks closed higher on Friday ahead of U.S. inflation data that is expected to validate bets on rate cuts in 2024, while Abu Dhabi shares fell.

Oil prices - a key catalyst to the Gulf's financial markets - rose on Friday as persistent tensions in the Red Sea deepened energy supply concerns.

More maritime carriers are avoiding the Red Sea due to attacks on vessels carried out by the Houthi militant group, which say they are responding to Israel's war in Gaza.

Brent crude were up 0.81% at $80.03 a barrel by 1118 GMT

Monetary policy in the six-member Gulf Cooperation Council (GCC), including the United Arab Emirates, is usually guided by Fed policy decisions because most regional currencies are pegged to the dollar.

Dubai's main index (.DGMGI) gained 0.4%, supported by a 1.9% hike in toll operator Salik Company (SALIK.DU), while Dubai's biggest lender Emirates NBD Bank added 1.2%.

Among the winner, real estate developer Union Properties (UPRO.DU) rose 1.8% after the firm's board approved a deal with a national bank to settle company and its subsidiaries' debt.

The Dubai index recorded a 0.6% weekly gain, according to LSEG data.

Meanwhile, Abu Dhabi's benchmark index edged 0.04% down, pressured by a 4.8% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD).

However, Emirates Stallions Group (ESG.AD) surged 14.9%, its highest intraday gain since late July, after the firm acquired a majority stake in United International Group.

Most Gulf markets in red as Wall Street rally stalls; #Qatar gains | Reuters

Most Gulf markets in red as Wall Street rally stalls; Qatar gains | Reuters

Most stock markets in the Gulf ended lower on Thursday after Wall Street snapped a long winning streak that had been driven by rate-cut expectations and the U.S. Federal Reserve's dovish tilt.

U.S. stocks closed lower on Wednesday after an abrupt mid-afternoon nosedive ended Wall Street's impressive rally.

Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to the direct impact of monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index (.TASI) dropped 0.7%, weighed down by a 3.1% decline in auto rental firm Lumi (4262.SE) and a 0.3% decrease in oil behemoth Saudi Aramco (2222.SE).

However, the Saudi index posted a fourth weekly gain, adding 0.7%.

Dubai's main share index (.DFMGI) fell 0.2%, hit by a 1.7% fall in top lender Emirates NBD (ENBD.DU).

The Dubai stock market continued to see some downside risks and some resistance near the top of its trading range for the last few weeks, said Hani Abuagla, senior market analyst at XTB MENA.

"Geopolitical tensions in the region and changing expectations regarding monetary policy could affect the market’s performance over the coming trading sessions."

Fighting in the Gaza Strip escalated on Thursday, with what residents described as some of the most intense Israeli bombardment of the war, even as the two sides held what Washington called "very serious discussions" on a new truce.

The Qatari benchmark (.QSI) added 0.8%, led by a 1.7% increase in Qatar Islamic Bank (QISB.QA).

Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 2.1%, as most of the stocks on the index were in positive territory, including Commercial International Bank (COMI.CA), which was up 2.3%.

#UAE central bank expects oil GDP to grow by 8.1% in 2024, non-oil growth to slow to 4.7% - WAM | Reuters

UAE central bank expects oil GDP to grow by 8.1% in 2024, non-oil growth to slow to 4.7% - WAM | Reuters

The United Arab Emirates central bank said it expects the country's oil GDP to grow by 8.1% in 2024, with non-oil GDP to grow by 4.7% in 2024 compared to 5.9% in 2023, state news agency WAM reported on Thursday.

The central bank sees the country's GDP to grow by 3.1% in 2023 compared to 5.7% in 2024.

#Saudi Unicorn Tabby Gets $700 Million Credit Line From JPMorgan - Bloomberg

Saudi Unicorn Tabby Gets $700 Million Credit Line From JPMorgan - Bloomberg

Saudi Arabia-based Tabby, one of the Middle East’s first fintech unicorns, bolstered its balance sheet with an asset-backed credit line of as much as $700 million from JPMorgan Chase & Co., before a planned listing in the kingdom.

The buy-now-pay-later firm also increased a recent funding round to $250 million after adding Saudi Arabia’s Hassana Investment Co. as an investor. It was also joined by US-based Soros Capital Management and Saudi Venture Capital.

That round had valued the company at more than $1.5 billion, drawing in investors such as STV, Mubadala Investment Capital and PayPal Ventures.

The debt facility will help the firm keep up with growing demand, “and mirrors the rapid growth and evolution of the fintech landscape in our markets,” Tabby said in a statement.

In a recent interview, Chief Executive Officer Hosam Arab said revenue had grown threefold over the past year. “Therefore it was quite important for us to secure sources of capital that can scale as this business continues to scale,” he said.

Tabby, which was founded in Dubai, set up its headquarters in the kingdom before its plans to go public on the Saudi stock exchange, Saudi Arabia’s Ministry of Investment said in September.

Mideast IPO Boom to Stretch Into 2024 as Investor Appetite Grows - Bloomberg

Mideast IPO Boom to Stretch Into 2024 as Investor Appetite Grows - Bloomberg

It’s been another dismal year for initial public offerings globally, but the Middle East has shone as a hive of listing activity which is expected to stretch into 2024.

Over the past two years, the energy-rich region has emerged as a busy IPO market, as governments intent on weaning their economies off reliance on oil have sold stakes in state-owned firms while crude prices have been high. Russia’s exclusion from the MSCI Emerging Markets index after its invasion of Ukraine last year, and China’s slowdown in economic growth, have prompted investors to look at the Persian Gulf.

While listings in the region have raised less than half the amount they did last year, at $10.5 billion it’s still set to be the third-best year since 2007 for IPO proceeds, data compiled by Bloomberg show. The Gulf accounts for about 45% of total IPO volumes in Europe, the Middle East and Africa this year, compared with 51% in 2022.

Bankers aren’t expecting the IPO flow in the Middle East and North Africa to slow anytime soon, as the tailwinds of strong growth, government reforms and investor demand remain.

“The outlook is very strong for MENA IPOs in 2024,” said Christian Cabanne, Bank of America Corp.’s head of equity capital markets in Central and Eastern Europe, the Middle East and Africa. “Maybe the difference between 2023 and 2024 is that in 2024 we expect to see more private companies come to market, including in the United Arab Emirates.”

Covestro in 'open-ended' talks with ADNOC -spokesperson | Reuters

Covestro in 'open-ended' talks with ADNOC -spokesperson | Reuters

Covestro is in open-ended talks with Abu Dhabi National Oil Co (ADNOC), a spokesperson for the German plastics and chemicals maker said on Thursday, following a report that the oil giant is preparing to up its takeover bid for the company.

"We are in open-ended discussions with ADNOC. Open-ended refers to both the content and the timeframe," the spokesperson said.

The statement follows ADNOC submitting a preliminary offer of around 60 euros per share for Covestro AG, which would boost it non-binding bid to about 11.3 billion euros ($12.37 billion), people with knowledge of the situation said, speaking on condition of anonymity.

The non-binding offer includes job guarantees and 8 billion euros of investments, one of the people said.

Bloomberg first reported the news of ADNOC having submitted a preliminary bid of about 60 euros per share.

Major Gulf markets retreat after Wall Street rally stalls | Reuters

Major Gulf markets retreat after Wall Street rally stalls | Reuters

Major stock markets in the Gulf fell in early trade on Thursday after Wall Street snapped a long winning streak that had been driven by rate-cut expectations and the Federal Reserve's dovish tilt.

Most Gulf Cooperation Council countries, including the UAE, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to the direct impact of monetary tightening in the world's largest economy.

Saudi Arabia's benchmark stock index (.TASI) dropped 0.8%, dragged down by a 2.4% fall in auto rental firm Lumi (4262.SE) and a 0.6% decline in oil behemoth Saudi Aramco (2222.SE).

Oil prices - a catalyst for the Gulf's financial markets -fell and were on track to snap a three-day winning streak, as concerns over low demand following a surprise U.S. crude inventory build outweighed jitters over global trade disruptions due to tensions in the Middle East.

Dubai's main share index (.FTFADGI) eased 0.2%, with Emaar Properties (EMAR.DU) down 0.9%.

In Abu Dhabi, the benchmark stock index (.FTFADGI) fell 0.2%.

The Qatari benchmark (.QSI) fell 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) losing 0.8% and telecoms firm Ooredoo (ORDS.QA) down 1.3%.

#AbuDhabi Becomes ‘Daily Davos’ as Asset Managers Hunt for Cash - Bloomberg

Abu Dhabi Becomes ‘Daily Davos’ as Asset Managers Hunt for Cash - Bloomberg

Some of the world’s top alternative asset managers have been flooding the Middle East in search of cash — and they’re not stopping at state money, according to one family office executive in the region.

A number of these firms have widened the scope of potential investors to include family offices, according to Amine Bouchentouf, the chief investment officer of Atlas Holdings, an Abu Dhabi-based family office that invests in global alternative asset managers.

“Ten years ago we used to meet one good manager every four weeks,” Bouchentouf said in an interview. “Now we meet four great managers almost daily. It’s becoming like a daily Davos.”

Those names include billionaires such as Trian Fund Management’s Nelson Peltz, Brevan Howard Asset Management founder Alan Howard, Guggenheim Capital’s Alan Schwartz and TCI Fund’s Chris Hohn, according to Bouchentouf.

Guggenheim and Brevan Howard declined to comment. Trian and TCI didn’t respond to requests for comment.

Some alternative asset managers are increasing their fund sizes to cater to investors in the region, who have to write bigger checks for their investments to have an impact, said Bouchentouf, whose office opened in Abu Dhabi in 2009.

#SaudiArabia: Flynas Taps Goldman, Morgan Stanley for IPO - Bloomberg

Saudi Arabia: Flynas Taps Goldman, Morgan Stanley for IPO - Bloomberg

Saudi Arabia’s Flynas, backed by billionaire Prince Alwaleed Bin Talal, hired Goldman Sachs Group Inc., Morgan Stanley and Saudi Fransi Capital for a potential initial public offering in Riyadh.

The low-cost airline could go public as soon as next year, according to a statement from the company in response to questions from Bloomberg.

Goldman Sachs and Morgan Stanley declined to comment. Saudi Fransi didn’t respond to a request for comment.

Saudi Arabia’s sovereign wealth fund had been in talks to buy a stake in Flynas, Bloomberg News reported in April. The airline is partly owned by Prince Alwaleed’s Kingdom Holding Co., in which the Public Investment Fund bought a 17% stake last year.

The airline, which began operations as Nas Air in 2007, has been weighing a share sale since 2008. It hired Morgan Stanley, Citigroup Inc. and NCB Capital for a potential deal in 2018, Bloomberg News reported at the time.

Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters

Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters

Major stock markets in the Gulf ended mixed on Wednesday on prospects of U.S. interest rate cuts in 2024, while worries about maritime trade disruptions in the Red Sea weighed on sentiment.

Dubai's main share index (.DFMGI) added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.1% and top lender Emirates NBD (ENBD.DU) finishing 0.9% higher.

The Qatari benchmark (.QSI) gained 0.6%, led by a 1.4% rise in Qatar Islamic Bank (QISB.QA).

In Abu Dhabi, the index (.FTFADGI) eased 0.1%, hit by a 3.7% slide in Alpha Dhabi Holding (ALPHADHABI.AD).

Among other losers, satellite operator Yahsat (YAHSAT.AD) slipped 1.5%, while geographic data and analytics provider Bayanat (BAYANAT.AD) retreated 2.5%.

In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.

However, shares in Abu Dhabi healthcare platform PureHealth Holding (PUREHEALTH.AD) closed 76.1% above their listing price on debut, after raising almost $1 billion in an initial public offering (IPO) for 10% of the business.

Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Elm Co (7203.SE) losing 2.6%.

The Saudi stock market saw some downside risks as traders moved to secure their gains. The market has recorded strong gains for the past two months and remains on an uptrend overall, said George Khoury, Global Head of Education and Research at CFI.

"The volatility in oil prices and geopolitical risks could create fuel risks."

Oil prices - a catalyst for the Gulf's financial markets - continued their rise, gripped by worries about disruptions in the Red Sea after Yemen's Iran-aligned Houthi militants stepped up attacks on commercial ships.

Brent crude futures closed up more than 1% on Tuesday as some companies rerouted vessels, with longer voyages increasing the cost of transport and insurance.

Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1% lower, as most its constituents were in negative territory including Commercial International Bank (COMI.CA).

Egypt is nearing a deal with the International Monetary Fund (IMF) to expand its $3 billion rescue programme to around $6 billion, Bloomberg News reported on Wednesday, citing people familiar with the deliberations.

#SaudiArabia’s Transition from Fossil Fuels Attracts Foreign Investors - Bloomberg

Saudi Arabia’s Transition from Fossil Fuels Attracts Foreign Investors - Bloomberg

Throngs of consultants wearing Western attire have become a common sight in the lobbies of Riyadh’s plushest hotels as Crown Prince Mohammed Bin Salman embarks on a multi-trillion dollar plan to wean Saudi Arabia off oil. In recent months they’ve been joined by another cohort of besuited individuals: fund managers, keen to get an early foothold in the next big emerging-market growth story.

The kingdom, which only joined the MSCI Emerging Markets index in 2019, has historically attracted very little from the billions of dollars that stock investors allocate to global stock markets. Fund managers were put off by the lack of liquidity in the Tadawul All Share Index, which limits full foreigner ownership, and by the nation’s over-reliance on fossil fuels.

Now, with Russia sanctioned out of the benchmark index and China losing its allure due to an economic slowdown, some investors are starting to view Saudi Arabia in a new light, attracted by a steady stream of reforms designed to encourage more foreign investment and the vast sums being thrown at MBS’s Vision 2030 transition plan. The increased interest has helped the Tadawul rally more than 11% this year, more than double the return of the MSCI benchmark.

“Saudi Arabia now feels like China in the noughties,” said Fergus Argyle, who helped launch a new emerging-markets fund for EFG New Capital two years ago that has an 8% allocation to the Saudi stock index.

Argyle says Saudi Arabia is still “very underrepresented” in investor portfolios even after the Tadawul index attracted net foreign inflows of over $3 billion this year. That’s a fraction of the $24 billion that poured in when the index joined the MSCI benchmark four years ago, but analysts say the volume will grow as reforms get under way.

#AbuDhabi's PureHealth shares soar on ADX market debut

Abu Dhabi's PureHealth shares soar on ADX market debut

Shares of PureHealth surged on its debut on the Abu Dhabi Securities Exchange (ADX) on Wednesday, after an IPO that raised 3.62 billion UAE dirhams ($986 million), for 10% of the business.

Shares opened at AED5.50 and surged close to 74% to AED5.70 after the opening.

The largest healthcare platform in the Middle East had set the final price for its initial public offering (IPO) at 3.26 dirhams ($0.89), bringing the total proceeds to AED3.62 billion.

#Qatar lowers oil price assumption for 2024 budget to $60/bbl -QNA | Reuters

Qatar lowers oil price assumption for 2024 budget to $60/bbl -QNA | Reuters

Qatar approved its 2024 fiscal year budget on Wednesday with revenue estimated to decrease 11.4% next year on lower oil prices, state news agency QNA reported.

Total annual revenue is estimated at 202 billion riyals ($55.49 billion) and spending at 200.9 billion riyals, with a deficit of 6.2 billion riyals, which will be covered from the surpluses made in 2023, QNA quoted finance minister Ali bin Ahmed Al-Kuwari as saying.

Qatar is taking a more conservative approach, with an oil price assumption of $60 per barrel in 2024, instead of $65 per barrel in 2023, "by taking into account the estimates of international institutions", the minister said.

Qatar's revenue from oil and gas is estimated to decrease 14.5% in 2024 to 159 billion riyals, while non-oil revenue is expected to increase about 2.4% to 43 billion riyals, the statement said.

The Gulf Arab state, which hosted the soccer World Cup in 2022, is one of the world's largest exporters of natural gas and last year benefited from huge windfalls from soaring global oil and gas prices.

The U.S. Energy Information Administration (EIA) earlier this month lowered its 2024 price forecast for Brent crude by $10 a barrel. Brent would average $83 per barrel, the EIA forecast in a monthly report, versus an estimate published last month of $93 per barrel.

Goldman Sachs earlier this week trimmed its price expectation for Brent crude in 2024 by $10 per barrel to between $70 and $90, saying strong production from the United States would moderate any upside in oil prices.

($1 = 3.7517 riyals)

Major Gulf bourses ease on volatile oil after Red Sea disruptions | Reuters

Major Gulf bourses ease on volatile oil after Red Sea disruptions | Reuters

Major stock markets in the Gulf fell in early trade on Wednesday as oil prices were gripped by worries about maritime trade disruptions in the Red Sea.

Oil - a catalyst for the Gulf's financial markets - was little changed as investors kept an eye on the situation in the Red Sea after the recent attacks by Iran-aligned Yemeni Houthi militants.

Brent crude futures rose more than 1% on Tuesday amid jitters over global trade disruptions and geopolitical tensions in the Middle East, following Houthi attacks on ships in the Red Sea.

Saudi Arabia's benchmark index (.TASI) dropped 0.2%, hit by a 0.8% fall in Al Rajhi Bank (1120.SE) and a 0.2% decline in oil behemoth Saudi Aramco (2222.SE).

Dubai's main share index (.DMFGI) eased 0.1%, with Emirates Central Cooling Systems Corp (EMPOWER.DU) losing 0.6%.

Washington on Tuesday launched a task force to safeguard Red Sea commerce as attacks by the Yemeni militants forced major shipping companies to reroute, stoking fears of sustained disruptions to global trade.

In Abu Dhabi, the index (.FTFADGI) lost 0.1%, with Alpha Dhabi Holding (ALPHADHABI.AD) retreating 2.3%.

Among other losers, satellite operator Yahsat (YAHSAT.AD) dropped 0.8%, while geographic data and analytics provider Bayanat (BAYANAT.AD) declined more than 1%.

In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.

The Qatari benchmark (.QSI) fell 0.4%.

A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen's Iran-aligned Houthis on the world's main East-West trade route.

Spain to buy 10% share in Telefónica in response to #Saudi stakebuilding

Spain to buy 10% share in Telefónica in response to Saudi stakebuilding

Spain is to buy a stake of up to 10 per cent in Telefónica in a bold response to a move by Saudi Arabia’s STC Group to acquire 9.9 per cent of the telecommunications company. 

Spain’s decision raises the intensity of a battle for influence at Telefónica, a national champion with businesses in security and defence. It has been targeted by STC — majority-owned by Riyadh’s sovereign wealth fund — as the Saudi group seeks to expand its investments in Europe. 

The Spanish cabinet issued the order for the stake to be acquired with the aim of giving Telefónica “shareholding stability”, according to a filing made by the government holding company that will buy the shares. The stake would be worth about €2.1bn at today’s valuation.

Nadia Calviño, Spain’s outgoing deputy prime minister, said on Tuesday that the move was “in line with other large European countries, such as France and Germany, which have and are increasing their shareholdings in big and strategic telecommunications operators”. She did not comment on STC. 

Spain’s move came more than three months after STC shocked the Spanish establishment by announcing that it had spent €2.1bn in acquiring a 4.9 per cent stake in Telefónica and derivatives that gave it an economic interest in a further 5 per cent.

Most Gulf markets gain as oil steadies; Egypt falls | Reuters

Most Gulf markets gain as oil steadies; Egypt falls | Reuters

Most stock markets in the Gulf reversed early losses to close higher on Tuesday as oil prices steadied, although the gains were limited following cautious comments from the U.S. Federal Reserve officials.

Oil - a catalyst for the Gulf's financial markets - steadied as investors considered the potential impact of maritime trade disruptions in the Red Sea after attacks by Yemen's Iran-aligned Houthi militants.

The United States on Tuesday announced the creation of a multinational operation to safeguard Red Sea commerce. The United Kingdom, Bahrain, Canada, France, Italy, Netherlands, Norway, Seychelles and Spain are among the nations involved.

Saudi Arabia's benchmark index (.TASI) added 0.3%, helped by a 1.6% rise in the shares of auto rental firm Lumi (4262.SE).

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

Dubai's main share index (.DFMGI) finished 0.2% higher, pushed by a 1.1% gain in blue-chip developer Emaar Properties' (EMAR.DU) stock.

Investor expectations for U.S. interest rate cuts took a step backwards after Fed officials, including Chicago Fed President Austan Goolsbee and Federal Reserve Bank of New York President John Williams, said they did not see rate cuts coming any time soon.

The Qatari benchmark (.QSI), which traded after a two-session break, ended 2.2% higher, with most of its constituents in positive territory, including Qatar Islamic Bank (QISB.QA), which was up 3.3%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 1%, weighed down by a 2.5% fall in Commercial International Bank (COMI.CA).

Abdel Fattah al-Sisi swept on Monday to a third term as Egypt's president in an election where he faced no serious challengers, calling the vote a rejection of the "inhumane war" in neighbouring Gaza.

** Kuwait bourse was closed