Abu Dhabi Royal Sheikh Tahnoon's Firm Shorts US Stocks on Global Recession Fears - Bloomberg
An investment firm controlled by a top Abu Dhabi royal has built a short position worth billions of dollars in US stocks, people familiar with the matter said, in a bet that growing fears over a recession will pressure markets.
Royal Group turned more negative on equities at the start of the year and has shifted more of its portfolio into short-term US Treasuries, the people said, asking not to be identified because the matter is private. The firm, chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, is also investing more in commodities and crypto, they said.
The conglomerate, which helps to manage one of the world’s biggest family fortunes through a vast network of subsidiaries, planned to plow as much as $10 billion into US and European stocks and other assets hammered by fears of a global slowdown, Bloomberg reported in October.
The company took profits on some of its investments in US markets late last year and has been revising its buy list of stocks there, the people said. The group will look to boost its exposure to the US once valuations improve and the Federal Reserve signals it’s gearing up to cut interest rate cuts, they said.
Wednesday, 10 May 2023
Middle East maintains IPO momentum into 2023, EY says, despite slowdown | Reuters
Middle East maintains IPO momentum into 2023, EY says, despite slowdown | Reuters
Middle East companies raised nearly 16% of the total proceeds from initial public offerings (IPOs) globally in the first quarter, as the region's momentum from a blockbuster 2022 continued, consulting firm EY said on Wednesday.
Companies in the region raised $3.4 billion in the first quarter from 10 IPOs. That included a $2.5 billion listing by ADNOC Gas, a unit of Abu Dhabi's state oil giant, which was the quarter's largest IPO globally.
"MENA IPOs continue to go against global trends in these uncertain economic times, building on the momentum from last year," Brad Watson, EY's Middle East and North Africa (MENA) strategy and transactions leader, said in a statement.
Middle East companies last year raised some $21.9 billion through IPOs, Dealogic data shows, more than half the total for the Europe, Middle East and Africa region.
MENA saw a 33% drop in the number of IPOs and a 14% fall in value in the first quarter from the year-prior period.
Middle East companies raised nearly 16% of the total proceeds from initial public offerings (IPOs) globally in the first quarter, as the region's momentum from a blockbuster 2022 continued, consulting firm EY said on Wednesday.
Companies in the region raised $3.4 billion in the first quarter from 10 IPOs. That included a $2.5 billion listing by ADNOC Gas, a unit of Abu Dhabi's state oil giant, which was the quarter's largest IPO globally.
"MENA IPOs continue to go against global trends in these uncertain economic times, building on the momentum from last year," Brad Watson, EY's Middle East and North Africa (MENA) strategy and transactions leader, said in a statement.
Middle East companies last year raised some $21.9 billion through IPOs, Dealogic data shows, more than half the total for the Europe, Middle East and Africa region.
MENA saw a 33% drop in the number of IPOs and a 14% fall in value in the first quarter from the year-prior period.
Gulf stock markets end mixed; Egypt gains | Reuters
Gulf stock markets end mixed; Egypt gains | Reuters
Gulf stock markets showed no clear direction on Wednesday after a mixed set of corporate earnings, while Egypt's blue-chip index was the stand out with a 1% gain.
Key U.S. consumer price data which showed that prices rose at a slightly slower-than-expected pace last month, was published after the Gulf markets closed.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Saudi Electricity Company (5110.SE) plunging 6.1%, its biggest intraday fall in nearly a year, following a steep in quarterly profit.
The Saudi stock market was seeing some volatility among mixed company earnings and retreating oil prices, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, the main index remained near its high for this year and could extend gains after some price corrections."
Oil prices - a key catalyst for the Gulf's financial markets - fell, ending a three-day rally, as an unexpected rise in U.S. oil inventories sparked demand concerns.
Dubai's main share index (.DFMGI) added 0.1%, helped by a 1.2% rise in Dubai Electricity and Water Authority (DEWAA.DU) gaining 1.2%.
On Monday, the utility company reported first-quarter net profit of 743.8 million dirhams ($202.58 million), up from 734.8 million dirhams year ago.
In Abu Dhabi, the stock index (.FTFADGI) gained 0.4%.
The Qatari benchmark (.QSI) declined 0.2%, weighed down by a 2% slide in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatari stock market index continued to see some resistance near March's peak price as traders looked to take profits, said Takieddine.
At the same time, natural gas prices remain stagnant to a certain extent and could provide some support if they return to the upside, he said.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, with Abu Qir Fertilizers and Chemical Industries (ABUK.CA) advancing 4.2%.
Egypt's annual urban consumer inflation in April slowed to 30.6% from 32.7% in March, data from the state statistics agency CAPMAS showed on Wednesday, a bigger drop than analysts had expected.
Inflation had steadily crept up over the last year after a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and continuing delays in getting imports into the country.
Gulf stock markets showed no clear direction on Wednesday after a mixed set of corporate earnings, while Egypt's blue-chip index was the stand out with a 1% gain.
Key U.S. consumer price data which showed that prices rose at a slightly slower-than-expected pace last month, was published after the Gulf markets closed.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, with Saudi Electricity Company (5110.SE) plunging 6.1%, its biggest intraday fall in nearly a year, following a steep in quarterly profit.
The Saudi stock market was seeing some volatility among mixed company earnings and retreating oil prices, said Daniel Takieddine, CEO MENA at BDSwiss.
"However, the main index remained near its high for this year and could extend gains after some price corrections."
Oil prices - a key catalyst for the Gulf's financial markets - fell, ending a three-day rally, as an unexpected rise in U.S. oil inventories sparked demand concerns.
Dubai's main share index (.DFMGI) added 0.1%, helped by a 1.2% rise in Dubai Electricity and Water Authority (DEWAA.DU) gaining 1.2%.
On Monday, the utility company reported first-quarter net profit of 743.8 million dirhams ($202.58 million), up from 734.8 million dirhams year ago.
In Abu Dhabi, the stock index (.FTFADGI) gained 0.4%.
The Qatari benchmark (.QSI) declined 0.2%, weighed down by a 2% slide in the Gulf's biggest lender Qatar National Bank (QNBK.QA).
The Qatari stock market index continued to see some resistance near March's peak price as traders looked to take profits, said Takieddine.
At the same time, natural gas prices remain stagnant to a certain extent and could provide some support if they return to the upside, he said.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 1%, with Abu Qir Fertilizers and Chemical Industries (ABUK.CA) advancing 4.2%.
Egypt's annual urban consumer inflation in April slowed to 30.6% from 32.7% in March, data from the state statistics agency CAPMAS showed on Wednesday, a bigger drop than analysts had expected.
Inflation had steadily crept up over the last year after a series of currency devaluations starting in March 2022, a prolonged shortage of foreign currency and continuing delays in getting imports into the country.
BlackRock Seeks $1 Billion for New Fund With Middle East Backing - Bloomberg
BlackRock Seeks $1 Billion for New Fund With Middle East Backing - Bloomberg
BlackRock Inc. is seeking to raise an initial $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, people familiar with the matter said.
Saudi Arabia’s Public Investment Fund and the kingdom’s state-backed Hassana Investment Co. are in talks to contribute money, the people said. Abu Dhabi wealth fund Mubadala Investment Co. and other international investors are also considering backing the new vehicle, according to the people, who asked not to be identified as the matter is private.
While the first close of the fund may raise about $1 billion, the pool of capital could eventually increase to several billion dollars, according to the people. BlackRock is considering domiciling the fund in Abu Dhabi Global Market, the emirate’s international financial free zone, with operations run out of Riyadh, the people said.
Discussions are ongoing, and no final decisions have been made on the fund’s size or investment partners, the people said. Representatives for PIF didn’t respond to a request for comment. Representatives for BlackRock, Hassana and Mubadala declined to comment.
BlackRock Inc. is seeking to raise an initial $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, people familiar with the matter said.
Saudi Arabia’s Public Investment Fund and the kingdom’s state-backed Hassana Investment Co. are in talks to contribute money, the people said. Abu Dhabi wealth fund Mubadala Investment Co. and other international investors are also considering backing the new vehicle, according to the people, who asked not to be identified as the matter is private.
While the first close of the fund may raise about $1 billion, the pool of capital could eventually increase to several billion dollars, according to the people. BlackRock is considering domiciling the fund in Abu Dhabi Global Market, the emirate’s international financial free zone, with operations run out of Riyadh, the people said.
Discussions are ongoing, and no final decisions have been made on the fund’s size or investment partners, the people said. Representatives for PIF didn’t respond to a request for comment. Representatives for BlackRock, Hassana and Mubadala declined to comment.
SoftBank nears deal to sell Fortress to Mubadala for up to $3bn | Financial Times
SoftBank nears deal to sell Fortress to Mubadala for up to $3bn | Financial Times
Months of protracted talks to sell SoftBank Group-owned asset manager Fortress Investment Group to Abu Dhabi sovereign wealth fund Mubadala have reached a late stage, with the parties close to a deal for as much as $3bn.
A sale, which would transform Mubadala into one of the largest credit investors in the world by adding Fortress’s close to $50bn in assets under management, could be announced later this month, said three people briefed on the matter. Some cautioned that talks could still falter, while the price could be below $3bn.
SoftBank acquired control of Fortress for $3.3bn in 2017 as its founder Masayoshi Son worked to build an asset management arm using its Vision funds. Son and other SoftBank executives had hoped Fortress would provide expertise in raising private funds as it sought to transform its business.
In August, SoftBank said it would consider selling Fortress, beginning a process of asset sales and other cash-raising exercises as the debt-laden Japanese technology conglomerate pursues what Son described as “defence mode”.
Adnoc to Sell 15% Stake in Logistics Unit in #AbuDhabi IPO - Bloomberg
Adnoc to Sell 15% Stake in Logistics Unit in Abu Dhabi IPO - Bloomberg
Abu Dhabi’s main energy company will sell a 15% stake in its maritime logistics unit in an initial public offering, kicking off the second listing of one of its businesses this year.
Abu Dhabi National Oil Co. will offer about 1.11 billion shares in Adnoc Logistics & Services, it said in a statement on Wednesday. The company will announce the price range and start taking investor orders on May 16, with final pricing slated for May 25. Shares are expected to begin trading June 1.
The sale comes months after state-owned Adnoc raised $2.5 billion in the listing of its gas business, which is the world’s second-biggest IPO of the year so far. The company has also sold stakes in some other portfolio businesses over the past two years — including in its drilling unit, chemicals firm Borouge and fertilizer company Fertiglobe.
Those share sales came amid a rush of listings in the Persian Gulf, which has remained a relatively busy market amid a global slump. Still, oil prices have come off their highs reached last year in the wake of Russia’s invasion of Ukraine. Fears of a recession and bank failures in the US have recently put pressure on the commodity, which strongly influences Gulf stock markets.
About $3.5 billion has been raised so far in 2023 through listings in the Middle East — the bulk of it in Abu Dhabi, data compiled by Bloomberg show. That’s down sharply from the $11.4 billion fetched by this time last year, as markets like Saudi Arabia have remained quiet and there haven’t been any privatizations in Dubai, which helped boost volumes in 2022.
Abu Dhabi’s main energy company will sell a 15% stake in its maritime logistics unit in an initial public offering, kicking off the second listing of one of its businesses this year.
Abu Dhabi National Oil Co. will offer about 1.11 billion shares in Adnoc Logistics & Services, it said in a statement on Wednesday. The company will announce the price range and start taking investor orders on May 16, with final pricing slated for May 25. Shares are expected to begin trading June 1.
The sale comes months after state-owned Adnoc raised $2.5 billion in the listing of its gas business, which is the world’s second-biggest IPO of the year so far. The company has also sold stakes in some other portfolio businesses over the past two years — including in its drilling unit, chemicals firm Borouge and fertilizer company Fertiglobe.
Those share sales came amid a rush of listings in the Persian Gulf, which has remained a relatively busy market amid a global slump. Still, oil prices have come off their highs reached last year in the wake of Russia’s invasion of Ukraine. Fears of a recession and bank failures in the US have recently put pressure on the commodity, which strongly influences Gulf stock markets.
About $3.5 billion has been raised so far in 2023 through listings in the Middle East — the bulk of it in Abu Dhabi, data compiled by Bloomberg show. That’s down sharply from the $11.4 billion fetched by this time last year, as markets like Saudi Arabia have remained quiet and there haven’t been any privatizations in Dubai, which helped boost volumes in 2022.
Major Gulf markets slip ahead of US inflation data | Reuters
Major Gulf markets slip ahead of US inflation data | Reuters
Major stock markets in the Gulf fell in early trade on Wednesday tracking Asian shares lower ahead of U.S. inflation data, which could provide potential cues into the U.S. Federal Reserve's rate trajectory.
Most Gulf Cooperation Council countries 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.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) had fallen on Tuesday and inched down a further 0.4% on Wednesday.
Saudi Arabia's benchmark index (.TASI) eased 0.2%, with Saudi Electricity Co SJSC (5110.SE) declining 5.1% as the utility firm reported a fall in quarterly profit.
Separately, Saudi Arabia, which pledged to cut production by 500,000 bpd from May, has informed buyers in Asia that it will supply full crude oil volumes requested for June.
Some Chinese refiners may have asked for less supply, sources said, which would help the world's top oil exporter meet its lower output target.
Dubai's main share index (.DFMGI) dropped 0.5%, with blue-chip developer Emaar Properties PJSC (EMAR.DU) losing 1.2% and Emirates Central Cooling Systems Corporation PJSC (EMPOWER.DU) falling 1.8%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari index (.QSI) fell 0.3%, with Qatar National Bank QPSC (QNBK.QA) retreating 1.2%
Oil prices - a key catalyst for the Gulf's financial markets - fell, ending a three-day rally, as an unexpected rise in U.S. oil inventories sparked demand concerns and investors awaited U.S. inflation data to gauge the next rate decision in the top oil consuming nation.
Major stock markets in the Gulf fell in early trade on Wednesday tracking Asian shares lower ahead of U.S. inflation data, which could provide potential cues into the U.S. Federal Reserve's rate trajectory.
Most Gulf Cooperation Council countries 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.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) had fallen on Tuesday and inched down a further 0.4% on Wednesday.
Saudi Arabia's benchmark index (.TASI) eased 0.2%, with Saudi Electricity Co SJSC (5110.SE) declining 5.1% as the utility firm reported a fall in quarterly profit.
Separately, Saudi Arabia, which pledged to cut production by 500,000 bpd from May, has informed buyers in Asia that it will supply full crude oil volumes requested for June.
Some Chinese refiners may have asked for less supply, sources said, which would help the world's top oil exporter meet its lower output target.
Dubai's main share index (.DFMGI) dropped 0.5%, with blue-chip developer Emaar Properties PJSC (EMAR.DU) losing 1.2% and Emirates Central Cooling Systems Corporation PJSC (EMPOWER.DU) falling 1.8%.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari index (.QSI) fell 0.3%, with Qatar National Bank QPSC (QNBK.QA) retreating 1.2%
Oil prices - a key catalyst for the Gulf's financial markets - fell, ending a three-day rally, as an unexpected rise in U.S. oil inventories sparked demand concerns and investors awaited U.S. inflation data to gauge the next rate decision in the top oil consuming nation.
China’s local governments look to Middle Eastern funds for investment | Financial Times
China’s local governments look to Middle Eastern funds for investment | Financial Times
Chinese local governments are wooing Middle Eastern and Asian sovereign wealth funds as they struggle to raise money at home to stimulate economic development after the pandemic.
Chinese local governments are wooing Middle Eastern and Asian sovereign wealth funds as they struggle to raise money at home to stimulate economic development after the pandemic.
Local government officials have held high-level meetings with the Qatar Investment Authority, subsidiaries of Saudi Arabia’s Public Investment Fund and the Abu Dhabi Investment Authority, according to wealth fund officials, business executives and Chinese local government officials briefed on and involved in the discussions.
Other Asian state investors, including Singapore’s GIC, have also fielded approaches about opportunities.
The meetings underscore the deepening economic and diplomatic ties between China and the Middle East, a region that has traditionally been a US sphere of influence. They also come as global investors attempt to secure Middle Eastern cash, with Gulf nations flush with petrodollars after last year’s oil boom.