#SaudiArabia launches mining fund in effort to reduce oil dependency | Financial Times

Saudi Arabia launches mining fund in effort to reduce oil dependency | Financial Times

Saudi Arabia has launched a mining fund that plans to invest up to $15bn of capital in overseas assets according to people familiar with the details, as the country works to reduce its dependence on fossil fuels. 

The venture, 51 per cent owned by Saudi state-owned miner Ma’aden, with the remainder owned by the country’s Public Investment Fund, will take non-operating minority stakes in mining projects internationally, the two companies said on Wednesday. 

That will help Saudi Arabia, which is the world’s second-largest oil producer, to secure resources such as iron ore, copper, nickel and lithium for domestic mineral processing and other industrial activities like steelmaking. 

The companies said that the fund’s initial capital would be $50mn and the two shareholders would provide just over $3bn “if additional funding is required”, according to a joint statement.

Gulf stocks skid ahead of U.S. inflation data; Egypt up | Reuters

Gulf stocks skid ahead of U.S. inflation data; Egypt up | Reuters

Gulf stock markets fell on Wednesday, with banking shares taking the biggest hit across the markets, as investors eagerly await Thursday's U.S. inflation data that is likely to shape the size of the Fed's next interest rate hike.

Farah Mourad, senior market analyst of XTB MENA, said GCC stock markets were seeing some uncertainty as global growth expectations came under pressure with volatile energy prices.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy decisions because most regional currencies are pegged to the U.S. dollar, exposing them to direct impacts from any Fed monetary tightening.

Saudi Arabia's benchmark index (.TASI) eased 0.2%, pressured by financial stocks, with lenders Saudi National Bank (1180.SE) and Banque Saudi Fransi falling 1.2% and 2.1%, respectively.

Abu Dhabi's share index (.FTFADGI) declined 0.7%, dragged down by a 2.2% fall in UAE's largest lender First Abu Dhabi Bank (FAB.AD).

Dubai's main share index (.DFMGI) lost 0.5%, led by a decline in its financial stocks as lenders Dubai Islamic Bank (DISB.DU) and Emirates NBD Bank (ENBD.DU) tumbled 2.5% and 1.5%, respectively.

The benchmark Qatari index (.QSI) slipped 1.3%, as Qatar National Bank (QNBK.QA), the Gulf's biggest bank by assets, declined more than 3%.

QNB reported after market close on Wednesday a 9% rise in annual net profit after adjusting for hyperinflation related to its business in Turkey.

Outside the Gulf, Egypt's blue-chip index (.EGX30), closed 0.4% higher, after a sharp decline in the previous session.

Mourad attributed the rebound in reaction to yesterday's strong decline as traders saw an opportunity to buy.

"Main index remains exposed to new losses as trading volumes decrease, with pound remained under pressure"

Egypt's pound weakened by more than 13% to a new low below 32 to the U.S. dollar on Wednesday as the central bank moved to a more flexible exchange rate under the terms of an IMF financial support package.

Has FTX’s Collapse Changed the United Arab Emirates Crypto Ambitions? - Bloomberg

Has FTX’s Collapse Changed the United Arab Emirates Crypto Ambitions? - Bloomberg

The United Arab Emirates has spent a lot of time — and considerable resources — positioning itself as a crypto-friendly hub. Its efforts have attracted some of the top names in crypto to the region. Changpeng Zhao (known as CZ), the CEO of the world’s largest crypto exchange Binance, has a residence in Dubai. It’s also where Su Zhu and Kyle Davies fled to after the collapse of their crypto hedge fund, Three Arrows Capital.

Sam Bankman-Fried traveled to Dubai for meetings with investors just weeks before the collapse of FTX. And FTX was one of the first firms granted a license by Dubai’s regulator for virtual assets. Around 4% of FTX’s global customers are based in the UAE, according to court filings in the firm’s bankruptcy case. That makes it one of the top 10 jurisdictions impacted by the FTX fallout.

Bloomberg reporters Suvashree Ghosh and Ben Bartenstein join the episode to discuss United Arab Emirates’ crypto ambitions.

#Saudi’s PIF and Maaden Set Up New Company to Invest in Global Mining Assets - Bloomberg

Saudi’s PIF and Maaden Set Up New Company to Invest in Global Mining Assets - Bloomberg

Saudi Arabia will establish a firm to invest in mining assets internationally, as the kingdom seeks to diversify its economy from oil and secure access to strategic minerals.

The sovereign wealth fund and state miner Maaden signed a pact to form a company that will be funded with as much as 11.95 billion riyals ($3.2 billion), according to a statement on Wednesday.

Maaden’s shares rose 2.1% by 11:48 a.m. in Riyadh to 74.8 riyals, extending its jump this year to 16% and giving it a market value of $49 billion.

The new firm will invest in iron ore, copper, nickel and lithium, as a non-operating partner with minority equity positions. It will also try to sign supply agreements with the companies and mines it invests in.

Adnoc Gas begins operations, stays on track for ADX listing

Adnoc Gas begins operations, stays on track for ADX listing

The new entity will be primarily focusing on world-scale gas processing, operations and marketing of its gas business and maximise value and create new opportunities for Adnoc, its partners and the UAE.

Abu Dhabi National Oil Company (Adnoc) has announced the formation of its new flagship company Adnoc Gas to consolidate its energy business in line with the directive of the board of directors.

The new company, which is effective from January 1, 2023, combines the operations, maintenance and marketing of the Adnoc Gas Processing and Adnoc LNG businesses into one global and market-leading consolidated business.

With the beginning of its operations, the new company remains on track for an initial public offering (IPO) to list its shares on the Abu Dhabi Securities Exchange (ADX) during the course of this year.

#Qatar National Bank annual profit up 9% in 2022 | Reuters

Qatar National Bank annual profit up 9% in 2022 | Reuters

Qatar National Bank (QNB) (QNBK.QA), the Gulf's biggest bank by assets, reported on Wednesday a 9% rise in annual net profit after adjusting for hyperinflation related to its business in Turkey.

Net profit for 2022 was 14.3 billion riyals ($3.91 billion) from 13.2 billion riyals in 2021. Full-year net profit before the impact of hyperinflation was 16.1 billion riyals, QNB said.

"Since the 2nd quarter of 2022, QNB's Turkey operations has been subject to hyperinflationary accounting requirements as per International Financial Reporting Standards," the lender said.

The non-cash adjustment, named "net monetary loss arising from hyperinflation", was 1.7 billion riyals in 2022.

The bank's profit for the quarter ended Dec. 31 was roughly 3.3 billion riyals, according to Reuters calculations. Net profit in the same quarter a year earlier was 2.95 billion riyals.

Mideast Stocks: Gulf mostly gain as Ma'aden boost #Saudi shares

Mideast Stocks: Gulf mostly gain as Ma'aden boost Saudi shares

Gulf stocks were mostly firm on Wednesday in early trade, with blue-chip Saudi Arabian Mining (Ma'aden) jumping after forming a joint venture with the kingdom's sovereign wealth fund PIF to invest in mining assets globally.

Also shares in the region mirrored gains in global equity markets, as investors awaited U.S. inflation data for cues on the Federal Reserve's interest rate stance.

Japan's Nikkei gained 1%, while Australia's S&P/ASX 200 index rose 0.90%.

Saudi Arabia's benchmark index rose 0.3%, bolstered by a 3.9% jump in Saudi Arabian Mining Company after it agreed to a joint venture. The miner will own 51%, while PIF will own 49% in the venture.

Ma'aden also agreed on acquiring a 9.9% stake in minerals exploration and development firm Ivanhoe Electric (IE) and forming a joint venture to explore and develop mining projects in Saudi Arabia.

Abu Dhabi's share index gained 0.3%, led by a 1.5% increase in state-owned port operator Abu Dhabi Ports Company and a 0.9% hike in UAE's largest lender First Abu Dhabi Bank.

Separately, state-owned Abu Dhabi National Oil Co (ADNOC) established a new global gas processing, operations and marketing company, ADNOC Gas, and intends to offer a minority stake in ADNOC gas through an IPO on Abu Dhabi Securities Exchange in 2023.

Dubai's main share index also rose 0.3%, supported by industrial and real sector stocks as blue-chip developer Emaar properties rose 0.7%, while toll operator Salik Company was up 0.8%.

The benchmark Qatari index opened 0.2% higher, as Gulf's largest lender Qatar National Bank added 0.4% ahead of its full year earnings later in the day, while Qatar Navigation (also know as Milaha) climbed 1.3%.