#SaudiArabia’s Wealth Fund PIF Eyes Flynas Stake to Bolster Tourism - Bloomberg

Saudi Arabia’s Wealth Fund PIF Eyes Flynas Stake to Bolster Tourism - Bloomberg

Saudi Arabia’s sovereign wealth fund is in talks to buy a stake in Flynas, a low-cost carrier that’s a key pillar of the kingdom’s attempts to bolster its tourism sector, according to people familiar with the matter.

Goldman Sachs Group is advising shareholders on the potential sale to the Public Investment Fund, the people said, asking not to be identified as the information isn’t public. The airline is partly owned by Prince Alwaleed Bin Talal’s Kingdom Holding Co., in which PIF bought a 17% stake last year.

Flynas had also been planning a potential listing, the people said, though this might be delayed if the stake sale to PIF goes ahead. The carrier has been weighing an IPO since 2008 and in 2018 hired Morgan Stanley, Citigroup Inc. and NCB Capital for a potential deal, Bloomberg News reported.

Wynn Set to Spend $3.9 Billion on First Mideast ‘Gaming’ Resort - Bloomberg

Wynn Set to Spend $3.9 Billion on First Mideast ‘Gaming’ Resort - Bloomberg

Wynn Resorts Ltd. increased the number of rooms in its planned resort off the coast of the United Arab Emirates by 50%, and said it will spend almost $4 billion on the project that’s set to be the first to include “gaming” in the Middle East.

The beach-front Wynn Al Marjan Island will be one of the world’s largest gaming facilities with 1,500 rooms and villas, and is being built in Ras Al Khaimah — an emirate about 45 minutes from Dubai. The opening, originally slated for 2026, will be delayed by a year, Wynn said in statement on Thursday.

While the government of Ras Al Khaimah hasn’t clarified what “gaming areas” refer to, there’s been speculation that the Wynn resort may signal an end to the ban on gambling, which is prohibited under Islam. The emirate’s Tourism Development Authority last year set up a unit to regulate so-called “integrated resorts,” which will include gaming facilities.

Other Middle Eastern countries such as Lebanon and Egypt have casinos that operate around the clock and offer an array of gambling machines, table games and other popular live games. Malaysia, a predominantly Muslim nation, also allows the pastime.

Wynn started construction and foundation work earlier this year on Al Marjan Island, which has 7.8 kilometers (4.85 miles) of beaches and 23 kilometers of waterfront. The resort will be the firm’s first project in the Middle East and North Africa region.

“The iconic silhouette of Wynn Al Marjan Island will transform and accelerate the emirate’s rise as a major global tourist destination, while also creating substantial value to its economy through tourism and job creation,” the company said. “The project will pave the way for the accelerated growth of allied business sectors.”

Gulf markets close mixed on economic worries; Egypt gains | Reuters

Gulf markets close mixed on economic worries; Egypt gains | Reuters

Most stock markets in the Gulf ended mixed on Thursday amid concerns around recession in the United States, with the Saudi index snapping six sessions of gains.

Saudi Arabia's benchmark index (.TASI) dropped 0.3% with Al Rajhi Bank (1120.SE) losing 1.6%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

U.S. economic growth slowed more than expected in the first quarter, despite an increase in consumer spending, and activity is set to moderate further as the effects of higher interest rates spread.

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

In Abu Dhabi, the index (.FTFADGI) finished 0.8% higher.

The Abu Dhabi bourse was driven by gains in the banking sector as positive earnings improved sentiment, hinting at a solid local economy, said Ahmed Negm, Head of Market Research MENA at XS.com.

"The surge has countered the effects of declining oil prices. The main index could find some resistance if crude prices continue to retreat."

Oil prices - a key catalyst for the Gulf's financial markets - steadied after the previous day's price drop reversed the supportive impact of a surprise cut to OPEC production targets this month.

Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 2%, on broad-based gains with top lender Commercial International Bank Egypt (COMI.CA) putting on 1.9%.

According to Negm, the Egyptian stock market rebounded with local investors boosting trading volumes. The banking sector could be a driver in gains for the broader market.

"Banks could see more accommodating conditions as the country might need to continue raising interest rates to fight inflation. At the same time, retreating fears over U.S. banking woes could improve investors' appetite for risk."

Emirates Islamic reports record net profit of $163.6mln for Q1 2023

Emirates Islamic reports record net profit of $163.6mln for Q1 2023

Emirates Islamic delivered a record net profit of Dh601 million for the first three months of 2023 as total income grew 74 per cent, the bank said in a statement on Thursday.

Total income rose 74 per cent year-on-year, driven by rising core revenues as a result of improved financing and deposit mix with higher profit rates coupled with higher non funded income.

Operating profit showed an impressive growth of 103 per cent y-o-y, while net profit margin improved to 4.72 per cent.

Total assets stood at Dh77.9 billion, an increase of 4 per cent from end 2022.

Customer deposits, at Dh57.3 billion, increased 2 per cent from end 2022 with Current Account and Savings Account (CASA) balances at 75 per cent of total deposits.

#Saudi Al Rajhi Bank's Q1 2023 net profit flat at $1.10bln; misses estimate

Saudi Al Rajhi Bank's Q1 2023 net profit flat at $1.10bln; misses estimate

Al Rajhi Bank, Saudi Arabia's second-biggest lender, reported a Q1-2023 net profit of 4.14 billion riyals ($1.10 billion), flat year- on-year (YoY), as total operating expenses, including impairment charges, fell.

The result came in slightly below the mean forecast of SAR4.37 billion penciled in by analysts, according to data provider Refintiv.

Impairment charges for financing fell 38% YoY to SAR359 million from SAR 578 million, the lender said in a statement on Riyadh's Tadawul exchange on Thursday.

Financing and investment brought in SAR577 billion, 19% higher on year.

Doha Bank reports net profit of $57.41mln in Q1

Doha Bank reports net profit of $57.41mln in Q1

Doha Bank has reported a net profit of QR209mn in the first three months of this year, according to information posted on the Qatar Stock Exchange website.

Net interest income reached QR492mn, an increase of 2% compared to the fourth quarter of 2022, said Doha Bank chairman Sheikh Fahad bin Mohamed bin Jabor al-Thani.

Net operating income stood at QR638mn with a marginal increase of 1% quarter-on-quarter, and has been able to manage its cost efficiently as reflected in a 2.2% year-on-year decline in total cost.

Total assets amounted to QR96.6bn at the end of March 31, 2023. Net loans and advances were QR56.6bn in the review period.

The investment portfolio was valued at QR25bn. Customer deposits stood at QR48.6bn as on March 31, 2023.

Advisory firm Ankura sets up Mid-East restructuring practice | Reuters

Advisory firm Ankura sets up Mid-East restructuring practice | Reuters

Advisory and forensic accounting firm Ankura Consulting said on Thursday it has launched a turnaround and restructuring practice for the Middle East out of its Dubai office, as it expects large deal flow in the region amid growing economic uncertainty.

Several advisory firms have recently set up or expanded restructuring operations in the region, where companies face higher borrowing costs after interest rates rose at a rapid clip amid global concerns about inflation.

Ankura's new practice will be led by Karim Labban, based in Ankura's Riyadh office that opened last year, and Geraint Thomas, based in Dubai, the firm said in a statement. Both have the title of senior managing director.

Labban was previously a turnaround and restructuring partner at Deloitte and Thomas was executive director for restructuring and turnaround at Abu Dhabi sovereign investor ADQ, according to their LinkedIn profiles.

"On the one side you have turnaround and restructuring work that is coming out of the volatility," Thomas told Reuters.

First #AbuDhabi Bank Beats Estimates as Economy Boosts Earnings - Bloomberg

First Abu Dhabi Bank Beats Estimates as Economy Boosts Earnings - Bloomberg

Two of the United Arab Emirates’ biggest banks posted a first-quarter profit that beat estimates as rising interest rates and the country’s resilient economy helped to boost business.

Profit at First Abu Dhabi Bank PJSC’s was 3.93 billion dirhams ($1.07 billion), slightly higher than the 3.21 billion dirhams analysts had expected. The number was down from a year earlier because that period included a one-time gain from the sale of a stake in its payments business. Excluding that, profit jumped 70% year-on-year, it said in a statement Thursday.

Net interest income jumped 41% and the lender said that all of its business segments grew over the period. It also attracted 80 billion dirhams of deposits during the quarter, but impairments jumped 74% to 798 million dirhams.

FAB, as the bank is known, earlier this year said it had explored a bid for Standard Chartered Plc but that it was no longer looking an offer. In the statement, Chief Executive Officer Hana Al Rostamani said the lender is looking to “shape the future of banking in the UAE and the broader region.”

Shortly afterwards, Dubai’s Emirates NBD PJSC said its first-quarter profit more than doubled to 6 billion dirhams, exceeding analysts’ expectations of 4.84 billion dirhams. Its net interest income jumped 69% to 7.2 billion dirhams, while impairments fell 66% to 500 million dirhams.

Major Gulf bourses mixed in early trade on economic worries | Reuters

Major Gulf bourses mixed in early trade on economic worries | Reuters

Major stock markets in the Gulf were mixed in early trade on Thursday as recession fears grew in United States.

U.S. consumer confidence dropped to a nine-month low in April as worries mounted, heightening the risk of the economy falling into recession this year.

Saudi Arabia's benchmark index (.TASI) dropped 0.3%, on course to snap a six days of gains, with Al Rajhi Bank (1120.SE) losing 1.7%. The bank reported profits that were lower than last quarter although higher than the same period a year ago.

Investors are also worried that further potential interest rate hikes by inflation-fighting central banks could slow economic growth.

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

In Abu Dhabi, the index (.FTFADGI) gained 0.5%.

Oil prices - a key catalyst for the Gulf's financial markets - rose slightly, finding some support after heavy losses in the previous two sessions driven by fears of a U.S. recession and an increase in Russian oil exports which dulled the impact of OPEC production cuts.

Dubai's main share index (.DFMGI) added 0.4%, with its top lender Emirates NBD (ENBD.DU) rising 1.9%.

Separately, the United Arab Emirates is selling 1.1 billion dirhams ($299.6 million) of Islamic bonds denominated for the first time in the local currency, state news agency WAM said, a move aimed at deepening the country's Islamic finance markets.

The Qatari index (.QSI) eased 0.1%, with Doha Bank (DOBK.QA) declining about 4% after posting a decline in first-quarter profit.