Most Gulf markets fall on lower oil prices; US debt ceiling vote in focus | Reuters

Most Gulf markets fall on lower oil prices; US debt ceiling vote in focus | Reuters

Most stock markets in the Gulf ended lower on Wednesday pressured by a decline in oil prices and a weaker-than-expected Chinese economic data, ahead of a crucial vote in Washington on the U.S. debt ceiling.

The U.S. House of Representatives is due to vote on Wednesday on a bill to lift the government's debt ceiling, a critical step to avoid a potential economically destabilizing default that could come early next week without congressional action.

Saudi Arabia's benchmark index (.TASI) fell more than 1%, with Al Rajhi Bank (1120.SE) and Riyad Bank (1010.SE) sliding 1.3% and 2.8%, respectively.

The Saudi stock market recorded losses with traders considering the impact of the weaker-than-expected Chinese manufacturing activity on the local economy, said Ahmed Negm, Head of Market Research MENA at XS.com.

"The main index could remain exposed to developments in energy markets."

China's manufacturing activity contracted faster than expected in May on weakening demand, with the official manufacturing purchasing managers' index (PMI) down to 48.8 from 49.2 in April. The outcome lagged a forecast of 49.4.

In Abu Dhabi, the index (.FTFADGI) closed 0.8% lower.

Separately, the United Arab Emirates said on Wednesday it was no longer taking part in operations by a U.S.-led task force protecting Gulf shipping, which has been subjected to renewed tanker seizures by Iranian naval forces in recent weeks.

The Qatari benchmark (.QSI) slid 1.8%, underperforming the region, with most stocks on the index trading in the red including petrochemical maker Industries Qatar (IQCD.QA), which shed 4.4%.

Oil prices - a key catalyst for the Gulf's financials - fell over 2% on a stronger U.S. dollar and as weak data from top oil importer China raised demand fears.

Mixed signals by major OPEC+ producers on whether or not the group will decide to further cut oil production also sparked the recent volatility in oil prices.

Dubai's main share index (.DFMGI), however, bucked the trend to finish 0.3% higher.

Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.2%, with top lender Commercial International Bank (COMI.CA) falling 0.4%.

#Dubai Buy Now, Pay Later (BNPL) Firm Tabby Raises Debt to $350 Million - Bloomberg

Dubai Buy Now, Pay Later (BNPL) Firm Tabby Raises Debt to $350 Million - Bloomberg

Dubai-based Tabby increased its debt facility to $350 million as the buy now, pay later startup pushes ahead with growth plans.

The financing round was led by San Francisco-based Partners for Growth, New York-based Atalaya Capital Management and CoVenture, a Miami-based multi-strategy asset-management firm. The additional financing will allow Tabby to serve more customers, retailers and purchases, it said in a statement.

Tabby’s last funding round in January valued the company at $660 million. It has over 4 million active users in Saudi Arabia, the United Arab Emirates and Kuwait and has partnered with more than 15,000 businesses.

In an interview at the time, Tabby Chief Executive Officer Hosam Arab said although concerns over higher interest rates and a looming recession were impacting buy now, pay later companies in developed markets, Gulf-based consumers were less indebted and better-able to repay debts.

Russian Steel Tycoon Vladimir Lisin Joins Business Elite Opening in #AbuDhabi - Bloomberg

Russian Steel Tycoon Vladimir Lisin Joins Business Elite Opening in Abu Dhabi - Bloomberg

Russian steel tycoon Vladimir Lisin has become the latest high-profile businessman to set up in Abu Dhabi with a series of new offices and special purpose vehicles.

The billionaire chairman of Russia’s biggest steelmaker, Novolipetsk Steel PJSC, helped to register multiple offices in the oil-rich emirate this month and created two SPVs — Serenity II Holdings and Nebula II Holdings — in Abu Dhabi Global Market, according to the business hub’s registry.

The new firms add to four entities he set up in the financial free zone earlier this year. SPVs have become the preferred method for wealthy individuals to set up family offices and private assets in ADGM, although it’s not immediately clear what Lisin’s entities will do. Lisin isn’t sanctioned by the US, United Kingdom or European Union.

A representative for Lisin declined to comment. A representative for ADGM declined to comment on registered entities within its jurisdiction and referred questions to the company.

#UAE central bank issues AML/CTF guidance for dealing with virtual assets | Reuters

UAE central bank issues AML/CTF guidance for dealing with virtual assets | Reuters

The UAE Central Bank has issued new anti-money laundering and counter-terrorism financing guidance for financial institutions when dealing with virtual assets, such as cryptocurrencies and non-fungible tokens, it said on Wednesday.

The new guidance discusses the risks arising from dealing with virtual assets and virtual asset service providers, including on due diligence for licensed financial institutions when dealing with these customers and counterparties, the statement said.

The guidance, which will come into effect within a month, applies to banks, finance companies, exchange houses, payment service providers, registered hawala providers and insurance companies, agents and brokers.

The bank said the guidance takes Financial Action Task Force (FATF) standards into account.

The FATF in March 2022 included the UAE on a list of jurisdictions subject to increased monitoring, known as its "grey" list. The UAE responded by saying it was committed to working closely with FATF to improve.

#Dubai's road authority weighs possible IPO of taxi business -sources | Reuters

Dubai's road authority weighs possible IPO of taxi business -sources | Reuters

Dubai's transport regulator is in the early stages of exploring strategic options for its assets, including a possible initial public offering of its taxi business, two sources familiar with the matter told Reuters.

The emirate's Roads and Transport Authority (RTA) plans to invite investment banks to pitch for advisory work which may include a possible assessment for Dubai Taxi Corporation, said the sources, who sought anonymity as the matter is not public.

However, no final decisions have been made in the deliberations, still at very early stages, with any transaction subject to market conditions, one of the sources said.

The RTA did not immediately respond to a Reuters request for comment on Wednesday.

Last year, the RTA raised $1 billion and drew orders of $50 billion from selling a 24.9% stake in the public-share sale of its toll-road business Salik (SALIK.DU).

Most Gulf markets fall on lower oil prices; #Dubai gains | Reuters

Most Gulf markets fall on lower oil prices; Dubai gains | Reuters

Most major Gulf stock markets fell in early trading on Wednesday, as lower oil prices and weaker-than-expected Chinese economic data soured sentiment, while Dubai edged up.

Oil, which fuels the region's growth, was trading on the back foot as worries of slowing demand from top oil importer China after weak manufacturing data outweighed some positive progress on the U.S. debt ceiling bill.

Brent crude futures for August delivery fell 15 cents to $73.56 a barrel by 0656 GMT.

Saudi Arabia's benchmark stock index (.TASI) fell 0.8%, with almost all of its constituent stocks trading in the red. Banking stocks lead the losses.

Saudi National Bank (1180.SE), Kingdom's largest lender by assets, and Riyad Bank (1010.SE) slipped 1.9% and 2.1% respectively.

State oil giant and index heavyweight Saudi Aramco (2222.SE) was down 0.5%.

In Abu Dhabi, the benchmark index (.FTFADGI) retreated 0.2% and was poised to register a 3.3% monthly decline, dragged by a more than 2% slide in telecoms firm e& , formerly known as Emirates Telecommunications Group, and a 2.9% decline in Multiply Group (MULTIPLY.AD).

First Abu Dhabi Bank (FAB.AD) was up 0.6%. UAE's largest lender is set to raise $600 million from an offering of five-year green bonds, a bank document showed on Tuesday.

The Qatari benchmark stock index (.QSI) dropped 0.1%, extending losses to a seventh consecutive session, as losses in industrial stocks offset gains in financials. Chemical maker Industries Qatar (IQCD.QA) fell more than 1.5%, while Qatar National Bank (QNBK.QA), the Gulf's largest lender, was up 0.6%.

Dubai's main share index (.DFMGI) gained 0.3%, its fourth straight positive day, led by gains in financial property stocks. Dubai Islamic Bank (DISB.DU) climbed over 1%, while blue-chip developer Emaar Properties (EMAR.DU) was up 0.8%.

Elsewhere, Dubai's transport regulator is in the early stages of exploring strategic options for its assets, including a possible initial public offering of its taxi business, two sources familiar with the matter told Reuters.

Dubai, the region's financial hub, saw five IPOs rake in nearly $8.5 billion in proceeds last year, fuelled by a government privatisation plan to list 10 state-linked firms to boost stock market activity.