Standard Chartered optimistic about growth of Gulf economies, CEO says
Standard Chartered is optimistic about economic growth and the strength of the financial system in the Gulf economies and it does not see the banking sector problems in the US and Switzerland spilling over into wider global economic activity, its chief executive has said.
“In this part of the world, liquidity is very, very flush, capital is available and economic growth is good,” Bill Winters told delegates at the Dubai FinTech Summit on Monday.
Despite challenges, economic activity in the Gulf, including the biggest Arab economy Saudi Arabia, has been “outstanding”, with strong flow of talent and capital resources from East to West.
The London-listed bank — whose underlying profit before tax in the Middle East rose 4 per cent to $819 million in 2022 — sees the role that Dubai has carved out through the Dubai International Financial Centre as “very, very important”, as it has become a hub not only for the Gulf, but also for Africa and increasingly South Asia.
Monday 8 May 2023
Banque Havilland faces £10mn fine from UK watchdog over #Qatar scheme | Financial Times
Banque Havilland faces £10mn fine from UK watchdog over Qatar scheme | Financial Times
The UK’s financial regulator has provisionally fined Banque Havilland £10mn and plans to ban its former London chief executive and two other ex-employees for their role in a 2017 plan to devalue Qatar’s currency after the Gulf state was embargoed by its neighbours.
The UK’s financial regulator has provisionally fined Banque Havilland £10mn and plans to ban its former London chief executive and two other ex-employees for their role in a 2017 plan to devalue Qatar’s currency after the Gulf state was embargoed by its neighbours.
The Financial Conduct Authority said on Friday that the Luxembourg-based bank “acted without integrity” by disseminating a document with manipulative trading strategies. These aimed to create a false impression around the market in Qatar’s bonds, breaking the riyal’s peg to the US dollar and “thereby harming the economy of Qatar”, according to the FCA.
The FCA found that tactics included trying to weaken Qatar’s financial position in the run-up to the 2022 World Cup, which the Gulf state hosted and for which it had committed $200bn in infrastructure spending.
Banque Havilland intended to present the document to representatives of countries seeking to put economic pressure on Qatar, including the United Arab Emirates, to market its services, according to the regulatory findings. A copy of the bank’s document was provided to a representative of an Abu Dhabi sovereign wealth fund, the FCA added.
Along with bans from financial services, the FCA plans on fining Edmund Rowland, the former chief executive of the London branch, £352,000; David Weller, a former senior manager, £54,000; and Vladimir Bolelyy, a former employee, £14,200.
Everyone’s Heading to #SaudiArabia - Bloomberg
Saudi Arabia Banker Pay Surges, Turkey Lira (TRY/USD) Volatility, Egypt Crisis - Bloomberg
Whether it’s investment bankers, global sports stars or luxury tourists, Saudi Arabia is starting to show some progress in changing its reputation and attracting people to the kingdom that for years has been largely closed off to visitors.
Football legend Lionel Messi's recent trip to Saudi Arabia in his role as a tourism ambassador for the country came amid reports he's in talks to earn $400 million a year to play for a local club. It's part of efforts to raise the country's profile as a tourism destination, which hopes to become one of the world's most visited destinations by 2030, and promote sports among the local population.
To host the hoped-for influx of visitors, a luxury development on the Red Sea is set to start opening its door on the first hotels later this year. If all goes well, the company behind the project, Red Sea Global, will then look to list on the local stock exchange, perhaps as early as 2026. That will give investors and analysts a chance to see how successful Saudi Arabia's vast tourism spending has been in creating profitable businesses.
Whether it’s investment bankers, global sports stars or luxury tourists, Saudi Arabia is starting to show some progress in changing its reputation and attracting people to the kingdom that for years has been largely closed off to visitors.
Football legend Lionel Messi's recent trip to Saudi Arabia in his role as a tourism ambassador for the country came amid reports he's in talks to earn $400 million a year to play for a local club. It's part of efforts to raise the country's profile as a tourism destination, which hopes to become one of the world's most visited destinations by 2030, and promote sports among the local population.
To host the hoped-for influx of visitors, a luxury development on the Red Sea is set to start opening its door on the first hotels later this year. If all goes well, the company behind the project, Red Sea Global, will then look to list on the local stock exchange, perhaps as early as 2026. That will give investors and analysts a chance to see how successful Saudi Arabia's vast tourism spending has been in creating profitable businesses.
Atlantis #Dubai Plans 4 New Hotels to Cash In on Travel Boom - Bloomberg
Atlantis Dubai Plans 4 New Hotels to Cash In on Travel Boom - Bloomberg
Dubai’s Atlantis is looking to build as many as four additional hotels across the world, hoping to cash in on a leisure travel boom that’s so far proved resistant to concerns over inflation and a darkening economic outlook.
“We’re very interested in growth and looking at a lot of different markets and opportunities,” Timothy Kelly, Managing Director of Atlantis Dubai said in a recent interview. “We’re hoping this year to earmark a couple of deals,” he said, adding that the company is looking at Southeast Asia, the Middle East and North America.
The comments come amid a sustained rebound in leisure travel that’s boosted prices for everything from plane tickets to hotels and rental cars. Results from Booking Holdings Inc. and Expedia Group Inc. to Royal Caribbean Cruises and TUI AG point to consumers’ willingness to continue spending on services and experiences even if they’re paring back on physical goods.
Atlantis Hotels, owned by Dubai’s sovereign wealth fund, operates two large properties in the emirate and one in Hainan, China. Its hotels include the recently opened $1.5 billion Atlantis The Royal, where the top suite can go for $100,000 a night.
Dubai’s Atlantis is looking to build as many as four additional hotels across the world, hoping to cash in on a leisure travel boom that’s so far proved resistant to concerns over inflation and a darkening economic outlook.
“We’re very interested in growth and looking at a lot of different markets and opportunities,” Timothy Kelly, Managing Director of Atlantis Dubai said in a recent interview. “We’re hoping this year to earmark a couple of deals,” he said, adding that the company is looking at Southeast Asia, the Middle East and North America.
The comments come amid a sustained rebound in leisure travel that’s boosted prices for everything from plane tickets to hotels and rental cars. Results from Booking Holdings Inc. and Expedia Group Inc. to Royal Caribbean Cruises and TUI AG point to consumers’ willingness to continue spending on services and experiences even if they’re paring back on physical goods.
Atlantis Hotels, owned by Dubai’s sovereign wealth fund, operates two large properties in the emirate and one in Hainan, China. Its hotels include the recently opened $1.5 billion Atlantis The Royal, where the top suite can go for $100,000 a night.
#Dubai DEWA’s consolidated profit rises 10% to $208mln in Q1 2023
Dubai DEWA’s consolidated profit rises 10% to $208mln in Q1 2023
Utility provider Dubai Electricity and Water Authority (DEWA) reported a consolidated net profit of 763 million UAE dirhams ($207.78 million), up 10.4% year-on-year (yoy), in the first quarter of 2023.
The first-quarter consolidated revenue rose 7.3% year-on-year to AED 5.44 billion, fuelled by higher demand for electricity, water, and cooling services, the company said in a regulatory statement on the Dubai Financial Market (DFM) on Monday.
Quarterly revenue growth for electricity, water and cooling services rose by 7.2%, 7.0% and 4.6%, respectively.
“Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting the robust growth of Dubai,” Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said, reiterating optimism on the company’s operating and financial performance for 2023 and beyond.
DEWA plans to have a gross installed capacity of 20 GW and 730 MIGD of desalinated water by the end of 2030, the statement added.
In April, DEWA said shareholders approved the payment of total dividends of 4.77 billion dirhams with a record date of April 20, 2023.
Utility provider Dubai Electricity and Water Authority (DEWA) reported a consolidated net profit of 763 million UAE dirhams ($207.78 million), up 10.4% year-on-year (yoy), in the first quarter of 2023.
The first-quarter consolidated revenue rose 7.3% year-on-year to AED 5.44 billion, fuelled by higher demand for electricity, water, and cooling services, the company said in a regulatory statement on the Dubai Financial Market (DFM) on Monday.
Quarterly revenue growth for electricity, water and cooling services rose by 7.2%, 7.0% and 4.6%, respectively.
“Our reported results for the first quarter of 2023 have exceeded our expectations, reflecting the robust growth of Dubai,” Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, said, reiterating optimism on the company’s operating and financial performance for 2023 and beyond.
DEWA plans to have a gross installed capacity of 20 GW and 730 MIGD of desalinated water by the end of 2030, the statement added.
In April, DEWA said shareholders approved the payment of total dividends of 4.77 billion dirhams with a record date of April 20, 2023.
Gulf markets end mixed on economic concerns | Reuters
Gulf markets end mixed on economic concerns | Reuters
Stock markets in the Gulf ended mixed on Monday as traders fretted over global and local economic developments and a string of weak corporate earnings weighed on sentiment.
In Abu Dhabi, the index (.FTFADGI) eased 0.2%, hit by a 2.4% slide in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi stock market came under pressure as traders were still considering whether to lock in gains after April's modest rebound, Fadi Reyad, Chief Market Analyst at CAPEX.com, said.
"While limited catalysts left the market without clear support, a strong rebound in oil prices could help limit losses and even reverse the market's direction."
Oil prices - a catalyst for the Gulf's financial markets - rose almost 3% on Monday as U.S. recession fears eased and some traders took the view that a crude price slide was overdone after three straight weekly declines for the first time since November.
Saudi Arabia's benchmark index (.TASI) reversed early losses to finish flat.
Dubai's main share index (.DFMGI) also ended flat.
In Qatar, the index (.QSI) added 0.4%, with Commercial Bank (COMB.QA) climbing 3.2%.
However, the index's gains were limited by a 0.8% fall in petrochemical maker Industries Qatar (IQCD.QA) after it reported a sharp decline in quarterly net profit.
Elsewhere, Qatar Aluminum Manufacturing Company (QAMC.QA) retreated 2.6% on weak first-quarter earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 2.4%, ending five sessions of losses, as most of the stocks on the index were in positive territory including Abu Qir Fertilizers and Chemicals (ABUK.CA), which closed 9.4% higher.
Stock markets in the Gulf ended mixed on Monday as traders fretted over global and local economic developments and a string of weak corporate earnings weighed on sentiment.
In Abu Dhabi, the index (.FTFADGI) eased 0.2%, hit by a 2.4% slide in Alpha Dhabi Holding (ALPHADHABI.AD).
The Abu Dhabi stock market came under pressure as traders were still considering whether to lock in gains after April's modest rebound, Fadi Reyad, Chief Market Analyst at CAPEX.com, said.
"While limited catalysts left the market without clear support, a strong rebound in oil prices could help limit losses and even reverse the market's direction."
Oil prices - a catalyst for the Gulf's financial markets - rose almost 3% on Monday as U.S. recession fears eased and some traders took the view that a crude price slide was overdone after three straight weekly declines for the first time since November.
Saudi Arabia's benchmark index (.TASI) reversed early losses to finish flat.
Dubai's main share index (.DFMGI) also ended flat.
In Qatar, the index (.QSI) added 0.4%, with Commercial Bank (COMB.QA) climbing 3.2%.
However, the index's gains were limited by a 0.8% fall in petrochemical maker Industries Qatar (IQCD.QA) after it reported a sharp decline in quarterly net profit.
Elsewhere, Qatar Aluminum Manufacturing Company (QAMC.QA) retreated 2.6% on weak first-quarter earnings.
Outside the Gulf, Egypt's blue-chip index (.EGX30) rebounded 2.4%, ending five sessions of losses, as most of the stocks on the index were in positive territory including Abu Qir Fertilizers and Chemicals (ABUK.CA), which closed 9.4% higher.
Coinbase considers #UAE a potential international hub | Reuters
Coinbase considers UAE a potential international hub | Reuters
Coinbase Inc (COIN.O) Chief Executive Brian Armstrong on Monday said that the United Arab Emirates could serve as a hub for the Middle East as well as for parts of Africa and Asia.
The CEO of the U.S.-based cryptocurrency exchange added that he met officials from the Abu Dhabi Global Market (ADGM) and the Virtual Assets Regulatory Authority (VARA), the regulators in Abu Dhabi and Dubai respectively.
Coinbase Inc (COIN.O) Chief Executive Brian Armstrong on Monday said that the United Arab Emirates could serve as a hub for the Middle East as well as for parts of Africa and Asia.
The CEO of the U.S.-based cryptocurrency exchange added that he met officials from the Abu Dhabi Global Market (ADGM) and the Virtual Assets Regulatory Authority (VARA), the regulators in Abu Dhabi and Dubai respectively.
#SaudiArabia's Red Sea Developer Weighs IPO/REIT as Soon as 2026 - Bloomberg
Saudi Arabia's Red Sea Developer Weighs IPO/REIT as Soon as 2026 - Bloomberg
The company behind a major tourism destination on Saudi Arabia’s Red Sea coast, a cornerstone of the kingdom’s push to attract tourists and diversify its economy, is considering a possible public market offering as soon as 2026.
“There will be some kind of public market event, whether it’s an initial public offering, whether it’s an establishment of a REIT, those are things that we’re currently studying,” John Pagano, chief executive of Red Sea Global, said in an interview in Dubai.
The firm is in early talks with banks and stakeholders, Pagano said, without disclosing details on advisers, banks or valuation. An offering is likely by 2026 or 2027 once the hotels have been operational for about two years, with a track record of occupancy, cash flow and profitability. The main focus now is to establish a revenue stream that helps underpin value, he said.
“If you look at real estate markets around the world, the idea of public real estate companies has disappeared to a large extent,” Pagano said. “Everybody’s converted into REITs, in large part because of tax efficiency, but also because it gives you access to a broader universe of investors.”
The company behind a major tourism destination on Saudi Arabia’s Red Sea coast, a cornerstone of the kingdom’s push to attract tourists and diversify its economy, is considering a possible public market offering as soon as 2026.
“There will be some kind of public market event, whether it’s an initial public offering, whether it’s an establishment of a REIT, those are things that we’re currently studying,” John Pagano, chief executive of Red Sea Global, said in an interview in Dubai.
The firm is in early talks with banks and stakeholders, Pagano said, without disclosing details on advisers, banks or valuation. An offering is likely by 2026 or 2027 once the hotels have been operational for about two years, with a track record of occupancy, cash flow and profitability. The main focus now is to establish a revenue stream that helps underpin value, he said.
“If you look at real estate markets around the world, the idea of public real estate companies has disappeared to a large extent,” Pagano said. “Everybody’s converted into REITs, in large part because of tax efficiency, but also because it gives you access to a broader universe of investors.”
#AbuDhabi's ADGM financial centre to expand by ten times | Reuters
Abu Dhabi's ADGM financial centre to expand by ten times | Reuters
Abu Dhabi's ADGM financial freezone will expand its area of jurisdiction by ten times, it said on Monday, part of the United Arab Emirates push to make its financial sector a major contributor to the economy as it diversifies.
The expansion of the Abu Dhabi Global Market (ADGM) financial free zone, the international financial centre of the UAE capital Abu Dhabi, comes amid intense competition in the Gulf as the UAE vies with rapidly-opening Saudi Arabia to become the go-to destination for economic activity in a region pivoting away from oil.
ADGM said the addition of al-Reem Island to its current location on al-Maryah Island would create one of the largest concentrated financial districts in the world, with an area of 1,438 hectares.
Founded in October 2015, ADGM has 5,500 business licences operating within it, it said.
By 2031 Abu Dhabi wants to increase its non-oil exports by 143% to 178.8 billion dirhams ($49 billion), Abu Dhabi Department of Economic Development Chairman Ahmed Jasim Al Zaabi told a conference on Monday.
Non-oil sectors made up half of Abu Dhabi's 2022 real GDP, which was more than 1 trillion dirhams, he said.
Abu Dhabi's ADGM financial freezone will expand its area of jurisdiction by ten times, it said on Monday, part of the United Arab Emirates push to make its financial sector a major contributor to the economy as it diversifies.
The expansion of the Abu Dhabi Global Market (ADGM) financial free zone, the international financial centre of the UAE capital Abu Dhabi, comes amid intense competition in the Gulf as the UAE vies with rapidly-opening Saudi Arabia to become the go-to destination for economic activity in a region pivoting away from oil.
ADGM said the addition of al-Reem Island to its current location on al-Maryah Island would create one of the largest concentrated financial districts in the world, with an area of 1,438 hectares.
Founded in October 2015, ADGM has 5,500 business licences operating within it, it said.
By 2031 Abu Dhabi wants to increase its non-oil exports by 143% to 178.8 billion dirhams ($49 billion), Abu Dhabi Department of Economic Development Chairman Ahmed Jasim Al Zaabi told a conference on Monday.
Non-oil sectors made up half of Abu Dhabi's 2022 real GDP, which was more than 1 trillion dirhams, he said.
#Qatar leads major Gulf markets lower on weak earnings | Reuters
Qatar leads major Gulf markets lower on weak earnings | Reuters
Major stock markets in the Gulf fell in early trade on Monday, with the Qatari bourse leading the losses following a slew of disappointing corporate earnings.
The Qatari index (.QSI) slipped 0.6%, with petrochemical maker Industries Qatar (IQCD.QA) sliding 4% after reporting a sharp decline in quarterly net profit.
Among other losers, Mesaieed Petrochemical (MPHC.QA) lost 2.4%, after reporting a quarterly net profit of 268.6 million riyals ($73.79 million), down from 442.9 million riyals year ago.
Qatar Aluminium Manufacturing Co (QAMC.QA) retreated 3% after reporting a steep decline in first-quarter profit.
Saudi Arabia's benchmark index (.TASI) lost 0.2%, with Dr Sulaiman Al-Habib Medical Services dropping 1.6%, while Saudi National Bank (1180.SE) retreated 0.7%.
Dubai's main share index (.DFMGI) eased 0.1%, with Emirates Central Cooling Systems (EMPOWER.DU) declining 1.8%, on course to extend losses from the previous session when it reported a drop in first-quarter profit.
In Abu Dhabi, the index (.FTFADGI) was down in a choppy trade.
Separately, Emirates Nuclear Energy Corporation (ENEC), the body responsible for developing the United Arab Emirates' nuclear energy sector, has signed three agreements with Chinese nuclear energy organisations as it looks to boost low-carbon nuclear power.
The memorandums of understanding cover cooperation in nuclear energy operations, in high temperature gas-cooled reactors, and in nuclear fuel supply and investment, ENEC said on Sunday.
Major stock markets in the Gulf fell in early trade on Monday, with the Qatari bourse leading the losses following a slew of disappointing corporate earnings.
The Qatari index (.QSI) slipped 0.6%, with petrochemical maker Industries Qatar (IQCD.QA) sliding 4% after reporting a sharp decline in quarterly net profit.
Among other losers, Mesaieed Petrochemical (MPHC.QA) lost 2.4%, after reporting a quarterly net profit of 268.6 million riyals ($73.79 million), down from 442.9 million riyals year ago.
Qatar Aluminium Manufacturing Co (QAMC.QA) retreated 3% after reporting a steep decline in first-quarter profit.
Saudi Arabia's benchmark index (.TASI) lost 0.2%, with Dr Sulaiman Al-Habib Medical Services dropping 1.6%, while Saudi National Bank (1180.SE) retreated 0.7%.
Dubai's main share index (.DFMGI) eased 0.1%, with Emirates Central Cooling Systems (EMPOWER.DU) declining 1.8%, on course to extend losses from the previous session when it reported a drop in first-quarter profit.
In Abu Dhabi, the index (.FTFADGI) was down in a choppy trade.
Separately, Emirates Nuclear Energy Corporation (ENEC), the body responsible for developing the United Arab Emirates' nuclear energy sector, has signed three agreements with Chinese nuclear energy organisations as it looks to boost low-carbon nuclear power.
The memorandums of understanding cover cooperation in nuclear energy operations, in high temperature gas-cooled reactors, and in nuclear fuel supply and investment, ENEC said on Sunday.