Dubai Property Market Rebound Lifts Sales and Rents to Record - Bloomberg
A spectacular turnaround in Dubai’s property market last year saw the Middle East’s financial hub break a decade-long record for total home sales and lifted rents to unprecedented levels.
The city registered 90,881 residential transactions in 2022, according to real estate adviser CBRE Group Inc. — beating the previous record of 81,182 deals in 2009. Ejari contracts, or home rental agreements, increased 11% in 2022 compared with a year earlier, reflecting a growth in the city’s residents.
“It’s been an incredible year,” CBRE’s head of research Taimur Khan said in an interview. “This is the highest number of transactions ever, partly because the supply of new homes is increasing, and because the take up has been strong.”
Most Gulf markets retreat on profit-taking, Fed rate outlook | Reuters
Most major Gulf stock markets retreated on Tuesday as investors moved to secure recent gains, mirroring global equity markets as they awaited the Federal Reserve's plans for rate hikes to gauge the impact on the economy and fuel demand.
Federal Reserve policymakers say fresh inflation data out later this week will help them decide whether they can slow the pace of interest rate hikes at their upcoming meeting, to just a quarter point increase instead of the larger jumps they used for most of 2022.
Oil prices, a key catalyst for the Gulf's financial markets, were stable on Tuesday, with Brent futures for March were up 15 cents, or 0.19%, to $79.80 a barrel by 1036 GMT.
Daniel Takieddine, CEO MENA at BDSwiss, said GCC stock markets were experiencing increased pressures before the Federal Reserve chair's speech and as energy prices recorded more volatility.
Saudi Arabia's benchmark index (.TASI) slipped 0.1%, pressured by a 0.8% decline in Al Rajhi Bank (1120.SE) and a 1.2% slump in its largest lender Saudi National Bank (1180.SE).
Dubai's main share index (.DFMGI) retreated 0.3%, hit by a more than 1% decline in blue-chip developer Emaar Properties (EMAR.DU) and 0.7% decrease in Sharia-compliant lender Dubai Islamic Bank (DISB.DU).
The benchmark Qatari index (.QSI) also fell 0.1%, pressured by a 1.2% decline in its largest lender Qatar National Bank (QNBK.QA).
Abu Dhabi's share index (.FTFADGI) gained 0.3%, ending four consecutive sessions losses, led by a 3.4% surge in Telecoms firm e& , formerly known as Emirates Telecommunications and nearly 2% jump in Borouge (BOROUGE.AD) after securing two new contracts worth 55 million dirhams ($14.98 million).
Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 3.6%, its biggest decline in more than 6 months, ending a seven-day winning streak, as almost all its constituent stocks moved in negative territory including Commercial International Bank (COMI.CA), which was down 6.2%.
According Takieddine, the market was seeing lower volumes as pressures continued to pile up on the national currency and inflation was higher than expected.
Man United, Liverpool or Tottenham Hotspur May Be Buyout Targets for Qatar Fund - Bloomberg
Manchester United, Liverpool FC or Tottenham Hotspur are among England’s top Premier League clubs being targeted by Qatar, the Middle Eastern nation buoyed from hosting the most expensive World Cup ever.
Qatar Sports Investments chairman Nasser Al-Khelaifi recently held conversations with Tottenham Hotspur chairman Daniel Levy over the possible purchase of a stake in the London-based club, according to a person with knowledge of the meeting. QSI is also considering both a full takeover or a stake in rivals including Manchester United or Liverpool FC, added the person, who asked not to be named because the discussions are private.
A spokesperson for QSI declined to comment. A Tottenham spokesman denied a meeting took place regarding the sale of equity in the club. A Manchester United spokesperson declined to comment. A Liverpool spokesperson did not respond to a request to comment. QSI’s deliberations are ongoing and may not lead to a deal.
Commodity Trader Olam Group Plans to List Agribusiness Unit in Saudi Arabia - Bloomberg
Olam Group, one of Asia’s biggest agricultural commodity traders, will pursue a primary listing for its agribusiness unit in Singapore and a potential concurrent listing in Saudi Arabia as early as the first half of 2023.
The proposed initial public offering of Olam Agri in Saudi Arabia would be the first listing of a global company in the country, Olam said in a statement. Saudi Arabia and the broader Gulf region are growing markets for the commodities that Olam Agri supplies, Group Chief Executive Officer Sunny Verghese said.
The plan follows the sale of a 35% stake in Olam Agri to state-owned Saudi Agricultural & Livestock Investment Co., a subsidiary of the oil-rich country’s Public Investment Fund. The deal valued the business at about $3.5 billion.
After World Cup, Qatar sets sight on reviving its stock market | Reuters
Qatar's stock market is set to welcome its first initial public offering (IPO) in almost three years in a test of new regulations that Doha has introduced, hoping to compete with more active exchanges in the region.
IT services firm MEEZA could raise up to 911 million riyals ($249 million) when it launches its IPO on Jan. 15 through the sale of 50% of its shares under a new bookbuilding process in Doha which allows companies to offer a price range to test investor appetite and determine pricing.
Qatar, the world's top LNG exporter and recent host of the FIFA World Cup 2022, is turning its attention to diversifying its economy away from gas.
That strategy includes building its equities market by opening it up to a wider investor base and introducing more listings.
"Now that the World Cup has been successfully hosted, we can see the focus is shifting to other diversification areas," said Osama Ali, HSBC's head of global banking in Qatar.
Saudi Arabia Kickstarts Multi-Tranche Dollar Bond Offering - Bloomberg
Saudi Arabia started the sale of a three-part dollar bond, its first Eurobond this year, as the kingdom seeks to take advantage of cooling inflation that’s raised hopes of an easier rate hike trajectory.
The world’s largest crude exporter has opened books for the issue with initial price guidance of about 140 basis points over U.S. Treasuries on a five-year tranche, around 170 basis points for a 10.5-year security and about 210 basis points for a 30-year bond, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it.
The Federal Reserve may lean toward smaller interest-rate increases after wage growth cooled in December, another step down in its aggressive campaign of monetary tightening. Even before the kingdom’s offering, Gulf financial institution First Abu Dhabi Bank PJSC was able to chop the pricing on a dollar bond sale Monday, as it joined a global issuance blitz spurred by lower funding costs and reduced volatility.
Even so, debt sales so far this year from Gulf issuers are down about 27% to $772 million from the year-earlier period as borrowing costs are still elevated. Average spreads on dollar company bonds have eased back to about 130 basis points from an October peak, according to a Bloomberg index, yet that’s still well up on the 90 basis points issuers were able to lock in just a year ago.
Saudi Arabia expects to run a surplus of 16 billion riyals ($4.3 billion) in 2023, nearly double a previous estimate of 9 billion riyals, it said last month. The Kingdom last sold $5 billion in bonds and Islamic securities in October.
Investcorp to Invest $1 Billion in Saudi Arabian Real Estate - Bloomberg
Investcorp Holdings, one of the largest asset managers in the Middle East, plans to invest as much as $1 billion in Saudi real estate over the next five years to tap an anticipated property boom in the kingdom.
The Bahrain-based investor, which manages over $40 billion in assets, has already acquired a logistics warehouse in Dammam in the east of the kingdom, and has identified a further $100 million in potential deals, it said in a statement.
Saudi Arabia is seeking to attract foreign funds into its property and logistics sectors as part of plans to become a regional business and trade hub. These ambitions are part of Crown Prince Mohammed bin Salman’s broader strategy to diversify the Saudi economy away from oil income.
Investcorp, backed by Abu Dhabi’s Mubadala Investment Co., has already invested about $4 billion in warehousing and logistics facilities in countries such as the US, UK and India.
The company “likes the logistics sector a lot,” but will look at all types of real estate in Saudi Arabia, said Babak Sultani, head of private wealth real estate. Any investments will be financed by Investcorp and then syndicated to clients, he said.
Investcorp delisted from the Bahrain stock exchange in 2021 after almost four decades, in a move it said would give it the agility to expand faster. Mubadala in 2017 acquired a 20% stake in Investcorp, which previously backed companies including Tiffany & Co. and Gucci Ltd.
Gulf markets slightly weaker as oil prices slip | Reuters
Gulf stock markets opened slightly in the red on Tuesday as oil prices fell.
Oil prices, a key catalyst for the Gulf's financial markets, edged lower on expectations that further interest rate hikes in the United States, the world's biggest oil consumer, will slow economic growth and limit fuel demand.
Brent futures for March fell 33 cents to $79.32 a barrel, a 0.4% drop, by 0719 GMT.
Abu Dhabi's share index (.FTFADGI) slipped 0.3%, extending losses to the fifth session in a row, pressured by a 0.6% decline in conglomerate International Holding Company (IHC.AD), while its unit Multiply Group (MULTIPLY.AD) was down 1.1%.
Dubai's main share index (.DFMGI) eased 0.1%, as Sharia-compliant lender Dubai Islamic Bank (DISB.DU) dropped 1.1% and Business park operator TECOM Group (TECOM.DU) fell 0.9%.
Saudi Arabia's benchmark index (.TASI) also retreated 0.1%, dragged down by a 1.3% decline in Saudi British Bank (1060.SE) and a 0.3% drop in Al Rajhi Bank (1120.SE).
National Company For Learning And Education (4291.SE), however, jumped 2.4% after posting a 43% jump in first quarter net profit.
Separately, Singapore commodity trader Olam Group (OLAG.SI) on Tuesday said it plans to conduct an initial public offering for majority-owned Olam Agri Holdings as early as the first half of this year, listing the unit domestically and concurrently in Saudi Arabia.
The benchmark Qatari index (.QSI) also fell 0.1%, pressured by a 1.2% decline in its largest lender Qatar National Bank (QNBK.QA).
