First Abu Dhabi Bank drags Abu Dhabi on weaker earnings | Reuters
Abu Dhabi stocks closed more than 2% lower to hit a three-month low on Friday after its largest lender by assets, First Abu Dhabi Bank, reported weaker than expected earnings.
The Abu Dhabi index (.FTFADGI) slid 2.7%, its biggest intraday loss since mid may, dragged down by a 4.8% drop in First Abu Dhabi Bank (FAB.AD).
On Thursday, the lender posted 2.5 billion dirhams ($680.66 million) net profit in the fourth-quarter, a 26% decline from last year that missed analyst estimates of 2.95 billion dirhams.
The lender also slashed its annual cash dividend by 26% to 52 fils a share from 2021.
Among other losers, state-controlled integrated utility firm Abu Dhabi National Energy Company (also known as TAQA) (TAQA.AD) tumbled 8.2%, while investment firm Multiply Group (MULTIPLY.AD) plunged 6.7%.
The Abu Dhabi index continued its decline under the pressure of the lower performance of First Abu Dhabi Bank, said Daniel Takieddine, CEO MENA at BDSwiss.
According to Daniel, a modest performance in oil markets is also leaving equities without much support.
Dubai's benchmark index (.DFMGI) settled 0.8% lower, weighed down by heavy losses in utilities and index heavyweight real estate stocks.
Shares of Emirates Central Cooling Systems Corporation (EMPOWER.DU) declined 4.6%, its worst day since debut in the market, while blue-chip developer Emaar Properties (EMAR.DU) lost 1.6%.
Hindenburg Report: Adani's Abu Dhabi Backer Says Decisions Based on Facts - Bloomberg
Abu Dhabi-based International Holding Co., which has invested almost $2 billion in companies owned by billionaire Gautam Adani, said its business decisions are based on facts after a scathing report on the Indian tycoon’s business empire by US short seller Hindenburg Research.
“Our business decisions are purely based on an analysis of objective facts,” said Ahmad Ibrahim, a spokesman for IHC, in a statement to Bloomberg. That’s “aided by the use of business intelligence and our analytics tools, which help us to achieve the maximum benefits for our shareholders under the corporate governance regulation.”
More than $50 billion of market value has been wiped of Adani’s corporate empire after Hindenburg issued a report on Jan. 24 detailing wide-ranging allegations of corporate malpractice following a two-year investigation into the tycoon’s companies. Adani has said it’s exploring legal action after what it called the “maliciously mischievous, unresearched” report by the short seller.
PIF: How Giant Saudi Arabian Fund Is Building a Post-Oil Future: QuickTake - Bloomberg
In a world where deep-pocketed investors are becoming harder to find, Saudi Arabia’s $600 billion sovereign wealth fund is spreading around the oil-rich kingdom’s largesse as never before. The Public Investment Fund has snapped up sports teams and electric carmakers and funded new cities in the desert as it seeks to amass $2 trillion in assets by 2030. Whether all these investments earn a big return is beside the point. The fund’s ultimate goal is to diversify the kingdom’s oil-reliant economy and project Saudi influence around the world.
1. How has the fund’s purpose changed?
What was once a sleepy government holding company is now a vehicle for the global ambitions of the country’s de facto ruler, Crown Prince Mohammed Bin Salman, under a plan known as Vision 2030. Its main purpose is to stimulate inward investment, access new technologies, develop local industries and address widespread underemployment in the kingdom. One focus is tourism: In a country that until recently was largely closed off to foreign holidaymakers and entertainment was a taboo, PIF is investing in luxury resorts, cinemas and entertainment complexes to lure more tourists, and to stop Saudis seeking fun abroad. It also does deals just to make money. The fund is expanding its team in New York to manage a growing portfolio of US stocks.
2. What does the PIF invest in?
It’s gradually reducing its legacy holdings in local businesses such as Saudi National Bank and Saudi Telecom Co. to free up money for other investments. Those include national projects like Neom, a $500-billion city-state that would run entirely on renewable power and export green energy. Since 2016, when it committed $45 billion to SoftBank Group Corp.’s technology-focused Vision Fund, PIF’s foreign interests have also mushroomed. An investment in electric carmaker Lucid Motors Inc. has increased in value to almost $10 billion and the company is opening a factory in Saudi Arabia. The fund has stakes in video game makers Activision Blizzard Inc. and Electronic Arts Inc. and the digital services and retail businesses of Asia’s richest man, Mukesh Ambani.
3. What makes the PIF unusual?
While traditional sovereign funds invest excess national wealth to generate profits in the future, PIF was repurposed as a global investor while the Saudi budget was in deficit. As a result, it’s also turned to borrowing in order to hit its growth targets, which will require it to spend prolifically on development projects at home. It’s already tapped global banks for multi-billion-dollar loans. In 2022, it raised $3 billion from its debut green bond sale. While it may seem incongruous for a petrodollar-backed fund to be raising money from climate-conscious investors, the PIF is the main backer of most of the kingdom’s renewable energy investments. Through Neom, it’s funding one of the world’s largest projects to produce hydrogen fuel without creating any harmful emissions.
Wizz Air Abu Dhabi to ‘accelerate’ expansion as passengers rise six-fold in 2022
Low-cost carrier Wizz Air Abu Dhabi, a joint venture between state-owned ADQ and Wizz Air Holdings, said on Friday that it will accelerate and expand operations further this year after a “record-breaking” 2022.
The airline, which now flies to a total of 36 destinations to 25 countries from Abu Dhabi, saw its passenger numbers rising by six-fold to more than 1.2 million last year. It also doubled its fleet size from four to eight state-of-the-art brand-new A321-neo aircraft.
“[The airline] is ready to accelerate and expand operations further in 2023,” Wizz Air said in a statement, adding that the airline is now the second-largest carrier in Abu Dhabi by seat capacity.
“Wizz Air Abu Dhabi is looking forward to future growth, in line with the UAE Tourism Strategy 2031, and further strengthen the position of the UAE as one of the best destinations in the world for tourism.”
The budget carrier launched operations in December 2019. It has recently expanded its network into Central Asia and other major destinations including the Maldives and across the Gulf region.
