Dubai Shuaa Capital's Q4 2022 net profit more than doubles
Dubai-based investment bank Shuaa Capital's fourth-quarter 2022 net profit more than doubled to AED 9.2 million ($2.5 million).
However, for the full year of 2022, the investment bank swung to a net loss of AED135.2 million from a net profit of AED24.2 million in the previous year.
In a statement on Wednesday to the Dubai Financial Market (DFM), Shuaa said the FY net loss was due to the one-off charges taken in the first half of the year which it attributed to amortiSation of intangible assets and other non-cash items.
Revenue for the quarter came at AED50.8 million, 38% lower than a year earlier.
Wednesday 15 February 2023
Most Middle Eastern bourses gain; #AbuDhabi falls | Reuters
Most Middle Eastern bourses gain; Abu Dhabi falls | Reuters
Most stock markets in the Middle East ended higher on Wednesday, with the Egyptian index extending gains and the Abu Dhabi bourse retreating after a drop in oil prices.
Saudi Arabia's benchmark index (.TASI) climbed 0.7%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) leaping 5.2% and Riyad Bank (1010.SE) closing 2.7% higher.
Dubai's main share index (.TASI) added 0.1%, helped by a 3.9% jump in Emaar Development (EMAARDEV.DU) a day after it reported a rise in annual net profit.
Emaar Development, the real estate arm of blue-chip developer Emaar Properties (EMAR.DU), posted a net profit of 3.81 billion dirhams ($1.04 billion), up from 3.24 billion dirhams year ago.
Egypt's blue-chip index (.EGX30) gained 0.5%, trading close to an about 5-year high.
Egyptians and Arabs were net buyers of the stocks during the session and non-Arab foreigners were the net sellers, according to data on the exchange website.
Last week, Egyptian Prime Minister Moustafa Madbouly confirmed that Egypt plans to sell government stakes in 32 companies starting in the first quarter of this year until the end of the first quarter of 2024.
In Abu Dhabi, the index (.FTFADGI) lost 0.3%, driven down by a 0.3% decrease in conglomerate International Holding (IHC.AD).
The Abu Dhabi stock bourse remained volatile, while uncertainty increased regarding the developments in oil markets, said Ahmed Negm, head of market research MENA at XS.com.
Oil - a key catalyst for the Gulf's financial markets - dropped for a second day as an industry report pointed to ample supplies in the United States and expectations of further interest rate hikes sparked concern over fuel demand and the economic outlook.
The Qatari index (.QSI), which traded after a session's break, advanced 0.6%, buoyed by a 5.3% jump in Qatar Islamic Bank (QISB.QA).
However, Qatar National Bank (QNBK.QA), the Gulf's biggest lender, dropped 1.5% as the stock traded ex-dividend.
According to Nejm, the Qatari market stabilized to a certain extent while natural gas prices stopped dropping during the last few days, but remained exposed to the downside.
Most stock markets in the Middle East ended higher on Wednesday, with the Egyptian index extending gains and the Abu Dhabi bourse retreating after a drop in oil prices.
Saudi Arabia's benchmark index (.TASI) climbed 0.7%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) leaping 5.2% and Riyad Bank (1010.SE) closing 2.7% higher.
Dubai's main share index (.TASI) added 0.1%, helped by a 3.9% jump in Emaar Development (EMAARDEV.DU) a day after it reported a rise in annual net profit.
Emaar Development, the real estate arm of blue-chip developer Emaar Properties (EMAR.DU), posted a net profit of 3.81 billion dirhams ($1.04 billion), up from 3.24 billion dirhams year ago.
Egypt's blue-chip index (.EGX30) gained 0.5%, trading close to an about 5-year high.
Egyptians and Arabs were net buyers of the stocks during the session and non-Arab foreigners were the net sellers, according to data on the exchange website.
Last week, Egyptian Prime Minister Moustafa Madbouly confirmed that Egypt plans to sell government stakes in 32 companies starting in the first quarter of this year until the end of the first quarter of 2024.
In Abu Dhabi, the index (.FTFADGI) lost 0.3%, driven down by a 0.3% decrease in conglomerate International Holding (IHC.AD).
The Abu Dhabi stock bourse remained volatile, while uncertainty increased regarding the developments in oil markets, said Ahmed Negm, head of market research MENA at XS.com.
Oil - a key catalyst for the Gulf's financial markets - dropped for a second day as an industry report pointed to ample supplies in the United States and expectations of further interest rate hikes sparked concern over fuel demand and the economic outlook.
The Qatari index (.QSI), which traded after a session's break, advanced 0.6%, buoyed by a 5.3% jump in Qatar Islamic Bank (QISB.QA).
However, Qatar National Bank (QNBK.QA), the Gulf's biggest lender, dropped 1.5% as the stock traded ex-dividend.
According to Nejm, the Qatari market stabilized to a certain extent while natural gas prices stopped dropping during the last few days, but remained exposed to the downside.
#UAE’s Chimera becomes shareholder in EFG Hermes; 2 transactions unveiled
UAE’s Chimera becomes shareholder in EFG Hermes; 2 transactions unveiled
Chimera Investments, an Abu Dhabi-based private investment firm, became a shareholder in Egyptian Financial Group Hermes Holding (EFG Hermes) after buying 30.57 million shares in the latter for EGP 590.63 million.
Chimera currently owns a 2.62% shareholding in the EGX-listed entity at an average price of EGP 19.32 per share, according to a recent bourse disclosure.
Furthermore, RA MENA Holdings Ltd. cut its 9.71% stake in EFG Hermes to 3.17% through the sale of 76.34 million shares. The bargain was concluded at a value of EGP 1.47 billion, which represented an average amount of EGP 19.32 per share.
Meanwhile, Jayess Holdings Limited acquired a 5.25% equity ownership in the EGX-listed firm after purchasing 61.27 million shares for EGP 1.18 billion, equivalent to EGP 19.32 per share.
Beltone Securities Brokerage was the broker for Chimera’s purchase deal, while EFG Hermes led the other two transactions.
It is worth mentioning the three agreements were executed on 13 February 2023.
In the first nine months (9M) of 2022, EFG Hermes reported consolidated net profits after tax worth EGP 1.31 billion million, an annual rise from EGP 1.12 billion.
Chimera Investments, an Abu Dhabi-based private investment firm, became a shareholder in Egyptian Financial Group Hermes Holding (EFG Hermes) after buying 30.57 million shares in the latter for EGP 590.63 million.
Chimera currently owns a 2.62% shareholding in the EGX-listed entity at an average price of EGP 19.32 per share, according to a recent bourse disclosure.
Furthermore, RA MENA Holdings Ltd. cut its 9.71% stake in EFG Hermes to 3.17% through the sale of 76.34 million shares. The bargain was concluded at a value of EGP 1.47 billion, which represented an average amount of EGP 19.32 per share.
Meanwhile, Jayess Holdings Limited acquired a 5.25% equity ownership in the EGX-listed firm after purchasing 61.27 million shares for EGP 1.18 billion, equivalent to EGP 19.32 per share.
Beltone Securities Brokerage was the broker for Chimera’s purchase deal, while EFG Hermes led the other two transactions.
It is worth mentioning the three agreements were executed on 13 February 2023.
In the first nine months (9M) of 2022, EFG Hermes reported consolidated net profits after tax worth EGP 1.31 billion million, an annual rise from EGP 1.12 billion.
#Sharjah starts selling debut sustainable bonds - IFR
Sharjah starts selling debut sustainable bonds - IFR
The government of Sharjah, one of the seven United Arab Emirates, has begun taking orders for a sale of nine-year sustainable bonds denominated in U.S. dollars, fixed income news service IFR said on Wednesday.
Initial price guidance was around 310 basis points over U.S. Treasuries maturing in February 2033, IFR said.
HSBC is the global coordinator. Abu Dhabi Commercial Bank, Citi, Gulf International Bank, Intesa Sanpaolo, Invest Bank and SMBC Nikko are joint lead managers and bookrunners.
The bonds - Sharjah's debut sustainable issue - are expected to price later on Wednesday. They are expected to be of benchmark size, which typically means at least $500 million.
Sharjah needs about $4.7 billion in financing this year for a $2.3 billion budgeted deficit and $2.4 billion in maturing bank loans, Justin Alexander, director of Khalij Economics and Gulf analyst for GlobalSource Partners, said in a research note.
"The issuance will be benchmark size but probably not too large given that the proceeds are supposed to be hypothecated to "sustainable" uses including renewable energy, affordable housing and access to healthcare and education -- the latter two points could potentially be used (to) cover a range of normal recurrent spending," Alexander wrote.
The government of Sharjah, one of the seven United Arab Emirates, has begun taking orders for a sale of nine-year sustainable bonds denominated in U.S. dollars, fixed income news service IFR said on Wednesday.
Initial price guidance was around 310 basis points over U.S. Treasuries maturing in February 2033, IFR said.
HSBC is the global coordinator. Abu Dhabi Commercial Bank, Citi, Gulf International Bank, Intesa Sanpaolo, Invest Bank and SMBC Nikko are joint lead managers and bookrunners.
The bonds - Sharjah's debut sustainable issue - are expected to price later on Wednesday. They are expected to be of benchmark size, which typically means at least $500 million.
Sharjah needs about $4.7 billion in financing this year for a $2.3 billion budgeted deficit and $2.4 billion in maturing bank loans, Justin Alexander, director of Khalij Economics and Gulf analyst for GlobalSource Partners, said in a research note.
"The issuance will be benchmark size but probably not too large given that the proceeds are supposed to be hypothecated to "sustainable" uses including renewable energy, affordable housing and access to healthcare and education -- the latter two points could potentially be used (to) cover a range of normal recurrent spending," Alexander wrote.
#Sharjah #UAE oil power farms the desert in quest for food security | Reuters
UAE oil power farms the desert in quest for food security | Reuters
Against the desert sands of Sharjah, eight green circles stand out as the United Arab Emirates cultivates wheat to improve food security in an arid country that imports some 90% of its food.
The government launched the 400-hectare farm in Mleiha in 2022, using desalinated water for irrigation, as the disruption of war and pandemic heightened concern over the UAE's lack of arable land.
"What pushed wheat farming were the problems with the supply chains in the last couple of years due to the COVID pandemic and the Ukraine-Russia war," Khalifa Alteneiji, chairman of Sharjah's Department of Agriculture and Livestock, told Reuters.
The UAE, a federation of seven emirates, imported 1.7 million metric tonnes of wheat in 2022 with Sharjah accounting for 330,000 tonnes, government figures show.
The Mleiha farm's contribution is expected to be some 1,600 tonnes per year, a step towards the Gulf oil producer's greater ambitions to increase farming.
Against the desert sands of Sharjah, eight green circles stand out as the United Arab Emirates cultivates wheat to improve food security in an arid country that imports some 90% of its food.
The government launched the 400-hectare farm in Mleiha in 2022, using desalinated water for irrigation, as the disruption of war and pandemic heightened concern over the UAE's lack of arable land.
"What pushed wheat farming were the problems with the supply chains in the last couple of years due to the COVID pandemic and the Ukraine-Russia war," Khalifa Alteneiji, chairman of Sharjah's Department of Agriculture and Livestock, told Reuters.
The UAE, a federation of seven emirates, imported 1.7 million metric tonnes of wheat in 2022 with Sharjah accounting for 330,000 tonnes, government figures show.
The Mleiha farm's contribution is expected to be some 1,600 tonnes per year, a step towards the Gulf oil producer's greater ambitions to increase farming.
Brevan Howard Picks #AbuDhabi as Middle East Regional Hub - Bloomberg
Brevan Howard Picks Abu Dhabi as Middle East Regional Hub - Bloomberg
Brevan Howard Asset Management opened an office in Abu Dhabi and plans to relocate several senior executives to lead its expansion in the Middle East.
The global macro investment firm is leasing space for more than 100 people, according to a statement from the Abu Dhabi media office. The new Middle East regional hub will comprise of teams including portfolio management, research, trading, risk, operations, and technology.
“This regional expansion will not only contribute to the commercial growth of the firm through access to regional institutions and talent, but also enhance our global lens from an investment perspective,” Chief Executive Officer Aron Landy said.
Brevan Howard’s move follows efforts by Abu Dhabi, whose sovereign wealth funds oversee more than $1.2 trillion, to draw in more foreign money and financial firms. A growing number of hedge fund traders also want to be based there, attracted in part by its lack of income tax. Bloomberg News reported Brevan Howard’s proposed Abu Dhabi plan earlier this month.
Brevan Howard Asset Management opened an office in Abu Dhabi and plans to relocate several senior executives to lead its expansion in the Middle East.
The global macro investment firm is leasing space for more than 100 people, according to a statement from the Abu Dhabi media office. The new Middle East regional hub will comprise of teams including portfolio management, research, trading, risk, operations, and technology.
“This regional expansion will not only contribute to the commercial growth of the firm through access to regional institutions and talent, but also enhance our global lens from an investment perspective,” Chief Executive Officer Aron Landy said.
Brevan Howard’s move follows efforts by Abu Dhabi, whose sovereign wealth funds oversee more than $1.2 trillion, to draw in more foreign money and financial firms. A growing number of hedge fund traders also want to be based there, attracted in part by its lack of income tax. Bloomberg News reported Brevan Howard’s proposed Abu Dhabi plan earlier this month.
#SaudiArabia Rental Prices Drive Inflation to Highest Since Mid-2021 - Bloomberg
Saudi Arabia Rental Prices Drive Inflation to Highest Since Mid-2021 - Bloomberg
A nearly 20% leap in Saudi apartment rental prices drove inflation in January to its highest level since mid-2021.
Price growth climbed an annual 3.4% from 3.3% in December, according to the Saudi General Authority for Statistics. Housing costs, which make up roughly a quarter of the consumer basket, grew 7.7%, because of steeper increases in rents for apartments.
Saudi Arabia is seeking to draw in global companies, expatriate workers and their families as part of plans to transform itself into a regional hub for business rivaling the commercial hub of Dubai.
The Saudi government sees inflation averaging 2.1% in 2023, according to the state budget published last year. Authorities have taken measures to contain price growth, including setting a cap on domestic gasoline costs last July.
A nearly 20% leap in Saudi apartment rental prices drove inflation in January to its highest level since mid-2021.
Price growth climbed an annual 3.4% from 3.3% in December, according to the Saudi General Authority for Statistics. Housing costs, which make up roughly a quarter of the consumer basket, grew 7.7%, because of steeper increases in rents for apartments.
Saudi Arabia is seeking to draw in global companies, expatriate workers and their families as part of plans to transform itself into a regional hub for business rivaling the commercial hub of Dubai.
The Saudi government sees inflation averaging 2.1% in 2023, according to the state budget published last year. Authorities have taken measures to contain price growth, including setting a cap on domestic gasoline costs last July.
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 Wednesday as investors parsed corporate earnings for clues, with Abu Dhabi shares snapping its previous session gains.
In Abu Dhabi, the benchmark stock index (.FTFADGI) dropped 0.6%, dragged down by a 1.8% loss in Alpha Dhabi (ALPHADHABI.AD) and a 1.5% fall in Al Dar Properties, while the largest lender by assets, First Abu Dhabi Bank, fell 1.1%.
Among the losers, Fertiglobe and conglomerate International Holding Company dropped 2.3% and 0.3% respectively.
The later reported a 175% jump in 2022 net profit boosted by a 76.5% increase in revenue.
Dubai's benchmark stock index (.DFMGI) opened in the red, trading 0.3% lower, weighed down by losses in almost all sectors, with largest lender Emirates NBD and utilities provider DEWA falling 0.8% and 0.4% respectively.
Dubai's blue chip developer Emaar Properties slid 2.4% although it reported on Tuesday an 80% rise in full year net profit, but an 11% drop in revenue.
Saudi Arabia's benchmark stock index (.TASI) edged up 0.1%, helped by gains in finance and health care sectors with Dr. Sulaiman Al-Habib Medical Services rising 2.1% and the world's largest Islamic bank by assets Al Rajhi Bank gaining 0.5%.
However, luxury real estate developer Retal Urban and Saudi Basic Industries fell 0.9% and 0.8% respectively.
The Qatari Stock index (.QSI) inched up 0.2%, supported by gains in financials sector stocks, with Qatar Islamic Bank jumping 3.3% and Qatar Commercial Bank surging 3.7%.
However, the region's largest lender Qatar National Bank and petrochemicals and fertilisers producer Industries Qatar dropped 3.1% and 1.6% respectively.
Major Stock markets in the Gulf were mixed in early trade on Wednesday as investors parsed corporate earnings for clues, with Abu Dhabi shares snapping its previous session gains.
In Abu Dhabi, the benchmark stock index (.FTFADGI) dropped 0.6%, dragged down by a 1.8% loss in Alpha Dhabi (ALPHADHABI.AD) and a 1.5% fall in Al Dar Properties, while the largest lender by assets, First Abu Dhabi Bank, fell 1.1%.
Among the losers, Fertiglobe and conglomerate International Holding Company dropped 2.3% and 0.3% respectively.
The later reported a 175% jump in 2022 net profit boosted by a 76.5% increase in revenue.
Dubai's benchmark stock index (.DFMGI) opened in the red, trading 0.3% lower, weighed down by losses in almost all sectors, with largest lender Emirates NBD and utilities provider DEWA falling 0.8% and 0.4% respectively.
Dubai's blue chip developer Emaar Properties slid 2.4% although it reported on Tuesday an 80% rise in full year net profit, but an 11% drop in revenue.
Saudi Arabia's benchmark stock index (.TASI) edged up 0.1%, helped by gains in finance and health care sectors with Dr. Sulaiman Al-Habib Medical Services rising 2.1% and the world's largest Islamic bank by assets Al Rajhi Bank gaining 0.5%.
However, luxury real estate developer Retal Urban and Saudi Basic Industries fell 0.9% and 0.8% respectively.
The Qatari Stock index (.QSI) inched up 0.2%, supported by gains in financials sector stocks, with Qatar Islamic Bank jumping 3.3% and Qatar Commercial Bank surging 3.7%.
However, the region's largest lender Qatar National Bank and petrochemicals and fertilisers producer Industries Qatar dropped 3.1% and 1.6% respectively.
#SaudiArabia’s SNB Capital Sees 2023 as M&A Year After IPO Boom - Bloomberg
Saudi Arabia’s SNB Capital Sees 2023 as M&A Year After IPO Boom - Bloomberg
Mergers and acquisitions activity in Saudi Arabia is set to pick up this year as the kingdom’s sovereign wealth fund accelerates investments and private sector firms look to buy-up rivals, according to a top banker at the securities arm of the country’s biggest lender.
“We see 2023 as an M&A year,” said Zaid Ghoul, SNB Capital’s head of investment banking. “We think there’s a lot of M&A in the pipeline and expect a lot of that to be driven by the PIF, and also consolidation in the insurance and cement industries.”
SNB Capital has been building up its dealmaking capabilities and named Philippe Chabrier de Lassauniere as head of M&A last year in anticipation of a pick-up in work on deals, said Ghoul.
“This is why we launched M&A advisory as a separate unit last year and have hired a team of bankers to develop that pipeline and execute transactions,” said Ghoul.
Mergers and acquisitions activity in Saudi Arabia is set to pick up this year as the kingdom’s sovereign wealth fund accelerates investments and private sector firms look to buy-up rivals, according to a top banker at the securities arm of the country’s biggest lender.
“We see 2023 as an M&A year,” said Zaid Ghoul, SNB Capital’s head of investment banking. “We think there’s a lot of M&A in the pipeline and expect a lot of that to be driven by the PIF, and also consolidation in the insurance and cement industries.”
SNB Capital has been building up its dealmaking capabilities and named Philippe Chabrier de Lassauniere as head of M&A last year in anticipation of a pick-up in work on deals, said Ghoul.
“This is why we launched M&A advisory as a separate unit last year and have hired a team of bankers to develop that pipeline and execute transactions,” said Ghoul.
#Saudi Wealth Fund PIF Invests $1.3 Billion in Construction Companies - Bloomberg
Saudi Wealth Fund PIF Invests $1.3 Billion in Construction Companies - Bloomberg
Saudi Arabia’s sovereign wealth fund bought stakes worth as much as $1.3 billion in four local construction companies as part of efforts to scale-up capacity in the sector and improve supply chains.
The $600-billion Public Investment Fund acquired minority stakes in Nesma & Partners Contracting Co., El Seif Engineering Contracting Co., AlBawani Holding Co. and Almabani General Contractors Co. by subscribing to new shares during capital increases, according to a statement. The PIF had hired Rothschild and GIB Capital as advisers and was looking to take stakes of about 30% in each company, Bloomberg reported last year.
The investment “will support local capacity expansion across the sector and stimulate private sector participation and investment to meet current and future demand,” said Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF.
The construction industry was plagued by crisis due to mis-management and the government withholding payments following the 2014 crash in oil prices. Government officials say the payment situation has since improved as it looks to embark on a massive infrastructure spending spree.
Saudi Arabia’s sovereign wealth fund bought stakes worth as much as $1.3 billion in four local construction companies as part of efforts to scale-up capacity in the sector and improve supply chains.
The $600-billion Public Investment Fund acquired minority stakes in Nesma & Partners Contracting Co., El Seif Engineering Contracting Co., AlBawani Holding Co. and Almabani General Contractors Co. by subscribing to new shares during capital increases, according to a statement. The PIF had hired Rothschild and GIB Capital as advisers and was looking to take stakes of about 30% in each company, Bloomberg reported last year.
The investment “will support local capacity expansion across the sector and stimulate private sector participation and investment to meet current and future demand,” said Yazeed Al-Humied, deputy governor and head of MENA Investments at PIF.
The construction industry was plagued by crisis due to mis-management and the government withholding payments following the 2014 crash in oil prices. Government officials say the payment situation has since improved as it looks to embark on a massive infrastructure spending spree.
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