#Saudi Efforts to Ease Liquidity Crunch Paying Off, SABB CEO Says - Bloomberg video

Saudi Efforts to Ease Liquidity Crunch Paying Off, SABB CEO Says - Bloomberg

Saudi Arabia’s efforts to ease a recent liquidity crunch in the financial system are working and have calmed markets, according to the head of one of the kingdom’s largest lenders.

The Saudi Central Bank managed the shortage of liquidity “very well” after deposit growth slowed and interest rates rose sharply, Tony Cripps, chief executive officer of Saudi British Bank, said in an interview with Bloomberg TV on Monday. “I think liquidity is just fine.”

The central bank stepped up the use of a mechanism to pump money into the financial system as it sought to tackle a liquidity crunch that pushed borrowing costs for lenders to the highest in decades, Bloomberg reported in December.

The intervention relied on open market operations — transactions that allow the central bank to provide or drain short-term liquidity in exchange for securities from lenders, people with knowledge of the matter said at the time.

Since the measures, “the market has calmed down and Saibor rates have normalized as slightly higher than historic levels,” Cripps said, adding that liquidity at Saudi British Bank is “very strong.”

The outlook for the kingdom’s banks this year is “strong” but the sector may grow “slightly slower” than in 2022, Cripps said. He expects demand to continue at the corporate and institutional levels for infrastructure projects.

#Qatar Tests Investor Appetite for Potential Dollar Eurobond Sale - Bloomberg

Qatar Tests Investor Appetite for Potential Dollar Eurobond Sale - Bloomberg

Qatar may sell dollar bonds after testing investor appetite from London to Asia for a potential deal, according to people with knowledge of the matter.

The Gulf state is holding a non-deal roadshow from Monday to gauge market interest and may arrange a Eurobond deal after that, the people said, asking not to be identified because the talks are private.

The government may offer Islamic or conventional notes, or could decide not to proceed with a sale because it doesn’t need the funds urgently, they said. A spokesperson for Qatar’s ministry of finance didn’t immediately respond to a request for comment.

Qatar, one of the world’s largest liquefied natural gas exporters, is anticipating a budget surplus of 29 billion riyals ($7.9 billion) this fiscal year at an oil price assumption of $65 per barrel. The country, which hosted the 2022 FIFA World Cup, is benefiting from a rising demand for LNG from Europe since Russia’s invasion of Ukraine.

The nation has about $11 billion in debt maturing this year, including $3 billion of bonds coming due in April, according to data compiled by Bloomberg.

Regional debt sales have resumed, spurred on by lower funding costs and reduced volatility. Egypt, one of the region’s most indebted countries, met investors last week before a potential debut sale of Islamic bonds known as sukuk, Bloomberg reported.

#Dubai in Talks to Attract 50 Hedge Funds to the Mideast Finance Hub - Bloomberg

Dubai in Talks to Attract 50 Hedge Funds to the Mideast Finance Hub - Bloomberg

Dubai’s financial center is in talks with more than 50 hedge funds about setting up in the Middle East business hub after attracting industry heavyweights such as Millennium Management and ExodusPoint Capital Management.

“One space that has been growing very fast is the hedge fund sector,” Essa Kazim, governor of the Dubai International Financial Centre, said at a briefing on Monday. “The backlog for that industry is big and it’s growing and it’s one of the sources of our growth actually.”

The roughly 50 hedge funds looking to obtain a DIFC license jointly manage over $1 trillion worth of assets, according to Salmaan Jaffery, the hub’s chief business development officer. The DIFC, as the business hub is known, continues “to not only authorize them, but we continue to engage them globally,” he said, declining to name the funds and how many currently operate within the center.

Dubai is emerging as a favored destination for hedge fund traders who are drawn by its ease of doing business, tax-free status and its allure as a global travel hub. It is also a more friendly time zone for portfolio managers who have global investments spanning North America to Asia.

Bank of #Israel stays aggressive on inflation with half-point rate hike | Reuters

Bank of Israel stays aggressive on inflation with half-point rate hike | Reuters

The Bank of Israel on Monday raised its benchmark interest rate (ILINR=ECI) by another half a percentage point, the eighth straight meeting it has increased rates, citing inflation running above 5% and concerns over wages and fiscal spending.

The central bank lifted its key rate to 4.25% - its highest level since late 2008 - from 3.75%. In April, policymakers began raising the rate from 0.1% and have been aggressive during a front-loading process.

"The Israeli economy is recording strong economic activity, accompanied by a tight labour market and an increase in the inflation environment," the Bank of Israel said, noting that the shekel remains volatile.

Most analysts believe the tightening cycle is close to over since officials last month said the terminal rate would be 4% or a bit above. The central bank, however, did not address this or change its usual phrasing on the possibility of future rate hikes.

Gulf bourses mixed as #Saudi stocks fall, #Dubai gains | Reuters

Gulf bourses mixed as Saudi stocks fall, Dubai gains | Reuters

Saudi Arabia's stock market was the worst performer among Gulf bourses that were mixed on Monday amid worries of rate hikes by the U.S. Federal Reserve.

Two Fed policymakers on Friday signaled that interest rates would need to go higher after a flurry of U.S. data suggested the world's largest economy is holding up far better than expected.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely.

The benchmark index (.TASI) in Saudi Arabia dropped 1.2%, dragged down by losses in most sectors.

Shares of the world's largest Islamic bank by assets, Al Rajhi Bank (1120.SE), fell 1.3% and Riyad Bank (1010.SE) was down 2.1%.

However, shares of Etihad Etisalat Co (7020.SE) jumped 5.7%, its best intraday gain since June, after the telecom operator reported a 54.6% increase in full-year net profit.

Dubai's benchmark index (.DFMGI) inched up 0.1%, lifted by gains in banking, real estate and industry sectors.

Lender Emirates NBD (ENBD.DU) rose 1.5% and shares of toll-road operator Salik Co (SALIK.DU) increased 0.7%.

In Abu Dhabi, the index (.FTFADGI) fell marginally, dragged down by a 1.6% loss in Abu Dhabi National Oil Company for Distribution (ADNOCDIST.AD) and a 1.3% decline in Aldar Properties (ALDAR.AD).

The Qatari stock index (.QSI) ended flat.

Among gainers, Baladna (BLDN.QA), the country's largest dairy and beverage company, rose 2.7% after it signed a manufacturing agreement with cheese and snack giant The Bel Group.

Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 3%, extending losses for the third session, with almost all its constituent stocks in the red.

Commercial International Bank (COMI.CA) and electronic payments company Fawry (FWRY.CA) dropped 3.6% and 4.8%, respectively.

The Egyptian stock market saw more price corrections after nearing its peak and trading volumes declined, Daniel Takieddine, CEO MENA at BDSwiss, said.

"Lower forecasts for the country's economic growth could also impact sentiment."

#Dubai government redeems $750mln Islamic bond

Dubai government redeems $750mln Islamic bond

The emirate of Dubai's Public Debt Management Office has redeemed $750 million worth of Islamic bonds, or sukuk, issued on Jan. 30, 2013, Dubai media office wrote on Twitter on Monday.

The government has also paid back early an additional $300 million of sukuk due to mature in November 2026, the media office said.

#Oman’s Abraj Energy Services opens IPO

Oman’s Abraj Energy Services opens IPO

Oman’s Abraj Energy Services, a subsidiary of global integrated energy group OQ, has opened its initial public offering, putting up 49 percent (377,398,000 shares) of the issued capital of the company for sale.

The offering allocated for the first category runs from February 20 until March 2, whereas the subscription in the second category runs from February 20 until March 1, reported Oman News Agency (ONA).

The shares of Abraj Energy Services are put for sale in an IPO as part of the divestment plan announced by Oman Investment Authority (OIA) to exit some governmental investments to provide investment opportunities for Omani and foreign investments to achieve the objectives of Oman Vision 2040.

This step aims to promote the private sector’s participation in various economic sectors at the national level. The IPO will also enhance economic diversification policies and attract investors from Oman and abroad.

#Saudi: Mobily’s profits leap 54.5% in 2022

Saudi: Mobily’s profits leap 54.5% in 2022

Etihad Etisalat Company (Mobily) registered SAR 1.65 billion in net profit after Zakat and tax in 2022, a hike of 54.57% from SAR 1.07 billion in 2021.

Revenues increased by 5.63% year-on-year (YoY) to SAR 15.66 billion in the January-December 2022 period, compared to SAR 14.83 billion, according to the annual financial results.

The earnings per share (EPS) stood at SAR 2.15 as of 31 December 2022, versus SAR 1.39 in 2021.

Who Is Sheikh Jassim? Little-Known Qatari Is Face of Attempt to Buy Man United - Bloomberg

Who Is Sheikh Jassim? Little-Known Qatari Is Face of Attempt to Buy Man United - Bloomberg

Sheikh Jassim Bin Hamad J.J. Al Thani didn’t even have a Wikipedia entry until late Friday night, around an hour after he issued a press release announcing his multi-billion-pound bid for Manchester United.

The third son of Qatar’s former prime minister Hamad bin Jassim bin Jaber Al Thani, the royal family member has become the face of what some see as the leading bid for the renowned football club, and has hired Bank of America Corp. as one of the advisers.

On Friday evening, Sheikh Jassim fired the first shot in what could become one of the year’s most high-profile bidding wars, potentially culminating in a record price paid for a sports asset. Jim Ratcliffe, one of Britain’s richest people with a fortune also made from natural resources, is bidding for a majority stake in Manchester United, with hedge fund Elliott Investment Management LP also emerging as willing to provide financing.

#SaudiArabia Says OPEC Flexible and Can Adjust Oil/Crude Policy If Needed - Bloomberg

Saudi Arabia Says OPEC Flexible and Can Adjust Oil/Crude Policy If Needed - Bloomberg

OPEC remains flexible and can alter its oil-production strategy if market conditions change, according to Saudi Arabia’s energy minister.

“We are flexible enough to adjust OPEC decisions if needed,” Prince Abdulaziz bin Salman said at a conference in the kingdom on Monday. He reiterated that the group’s policies are determined by technical studies of market balances and that politics are excluded.

Last week, the minister said OPEC+ — a 23-nation alliance between the Organization of the Petroleum Exporting Countries and partners such as Russia — will stick to its current production quotas for the rest of 2023.

Mideast Stocks: Most major Gulf markets in red on Fed worries

Mideast Stocks: Most major Gulf markets in red on Fed worries

Most major stock markets in the Gulf fell in early trade on Monday, amid concerns that the U.S. Federal Reserve would continue with aggressive rate hikes to tame inflation.

On Friday, two Fed policymakers signalled that interest rates would need to go higher after a run of strong economic news, despite the central bank raising rates by 450 basis points in 11 months.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

Saudi Arabia's benchmark index dropped 0.3%, on course to extend losses for a second session, hit by a 1.4% fall in Riyad Bank.

However, the index's losses were limited by a 6.1% jump in Etihad Etisalat Co, which reported a sharp rise in annual profits on Monday.

The telecom firm also announced cash dividend of 1.15 riyals ($0.3066) per share for the year 2022.

In Qatar, the index lost 0.2%, with the Gulf's biggest lender Qatar National Bank declining 1.4%.

On the other hand, Baladna, the country's largest dairy and beverage company, advanced 4.3% after it signed a manufacturing agreement with cheese and snack giant The Bel Group.

Dubai's main share index eased 0.2%, weighed down by a 0.9% drop in blue-chip developer Emaar Properties .

The Abu Dhabi index, however, bucked the trend to edge 0.1% higher.

Oil prices - a key catalyst for the Gulf's financial markets - rose amid optimism over China's demand recovery, concerns that underinvestment will crimp future oil supply and as major producers keep output limits in place.