Most Gulf markets rise on potential US rate hike pause, debt deal progress | Reuters

Most Gulf markets rise on potential US rate hike pause, debt deal progress | Reuters

Most stock markets in the Gulf ended higher on Thursday as a potential pause in U.S. interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism, although lower oil prices capped gains.

U.S. Federal Reserve officials on Wednesday suggested interest rates could be kept on hold this month. Meanwhile, the U.S. House of Representatives passed a bill to suspend the $31.4 trillion debt ceiling, improving the chance of averting a disastrous default.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror monetary policy changes in the United States.

Saudi Arabia's benchmark index (.TASI) gave up early gains to finish flat.

The Saudi stock market could remain exposed to additional price corrections with oil prices recording some volatility and an uncertain trend, said Daniel Takieddine, CEO MENA at BDSwiss.

"The main index remains below this year's peak and could see some volatility in this regard."

Oil - a key catalyst for the Gulf's financial markets - edged lower as data showed rising inventories in the world's biggest oil consumer, the United States.

Dubai's main share index (.DFMGI) added 1.4%, with toll-operator Salik Co (SALIK.DU) gaining 1.4%.

In Qatar, the index (.QSI) ended 0.5% higher, with Qatar Islamic Bank (QISB.QA) rising 1.1% and lender Masraf Al Rayan (MARK.QA) climbing 2%.

In Abu Dhabi, the index (.FTFADGI) was down 0.4%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 0.2% higher.

According to Takkiendine, the Egyptian stock market remained on a potential uptrend with global sentiment improving.

"Global traders could thus help push the market to the upside if conditions remain appropriate."

Qatari LNG Shipments to Europe Drop in 2023 as Gas Prices Slump - Bloomberg

Qatari LNG Shipments to Europe Drop in 2023 as Gas Prices Slump - Bloomberg

Qatar is sending less of its liquefied natural gas to Europe, where slumping prices have reduced its attractiveness as a destination for the super-chilled fuel.

Less than 18% of Qatar’s LNG output has sailed to Europe so far this year, down from 25% in 2022, according to ship-tracking data compiled by Bloomberg. It marks a change from last year, when gas prices soared on Moscow’s invasion of Ukraine and sent European leaders on a worldwide search to replace supplies from Russia.

Qatar is sending a smaller share of its LNG to Europe

Low gas prices have reduced Europe's attractiveness as an LNG destination

Source: Bloomberg

At the time, Energy Minister and CEO of QatarEnergy Saad Al-Kaabi said the company would keep supplying buyers in Europe, even though its long-term contracts had the option to divert as much as 15% of its cargoes to destinations with better prices.

European gas prices have since tumbled to less than €25 ($27) a megawatt hour, a fraction of last year’s record, and the self-imposed ban on diversions from Europe no longer stands, Kaabi said at a press conference in Doha on Thursday.

“The data that made us make certain promises or direct certain quantities to specific markets no longer exist,” said Kaabi. “Prices have dropped and quantities are available. There is no problem in the market that existed previously.”

#Oman's Hydrom signs 3 deals to develop green hydrogen projects with investments of over $20 bln | Reuters

Oman's Hydrom signs 3 deals to develop green hydrogen projects with investments of over $20 bln | Reuters

Oman's Hydrom has signed three deals to develop green hydrogen projects involving investments of over $20 billion, Oman's state news agency reported on Thursday.

The projects are a collaboration with BP Oman, Amnah consortium and Oman Green Energy Alliances.

OPEC+ unlikely to deepen oil supply cuts at June 4 meeting, sources say | Reuters

OPEC+ unlikely to deepen oil supply cuts at June 4 meeting, sources say | Reuters

OPEC and its allies are unlikely to deepen supply cuts at their ministerial meeting on Sunday despite a fall in oil prices toward $70 per barrel, four sources from the alliance told Reuters.

OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies led by Russia, pumps around 40% of the world's crude and supplies around 60% of the oil export market, meaning its policy decisions can have a major price impact.

As the economic outlook worsened, several members of OPEC+ in April pledged voluntary cuts starting from May and to continue to the end of the year.

This was in addition to a 2 million barrels per day (bpd) cut agreed in early October to output targets versus an August 2022 production baseline. It brought total output cuts to 3.66 million bpd, or about 4% of global consumption.

#SaudiArabia's PIF to acquire 30% of supermarket chain Tamimi Markets | Reuters

Saudi Arabia's PIF to acquire 30% of supermarket chain Tamimi Markets | Reuters

Saudi Arabia's Public Investment Fund (PIF) plans to acquire a 30% stake in local supermarket chain Tamimi Markets Company, the kingdom's sovereign wealth fund said on Thursday.

PIF, which has more than $620 billion in assets under management, said it signed a share subscription agreement to invest in Tamimi Markets.

It said the transaction, which will involve a capital increase and subscription for new shares, aligns with the fund's strategy to enable the private sector and create Saudi national champions.

"This investment aims to enable Tamimi Markets to realise its full potential, transforming it from one of the leading national grocery chains to a major regional chain," PIF said in an emailed statement.

"It aims to support the company’s ambitious plans through expansion of its operations and commercial opportunities, including acceleration of regional growth and a potential initial public offering," it added.

#UAE begins corporate tax roll-out, with free zones exempted | Reuters

UAE begins corporate tax roll-out, with free zones exempted | Reuters

The UAE began rolling out a 9% business tax on Thursday, with exemptions for the many free zones which power its economy, as the formerly tax-free oil producer seeks to boost non-oil revenue and remain a regional commercial hub.

The business tax follows a 5% value added tax (VAT) introduced in 2018, gradually eroding the United Arab Emirates' tax-free status that helped it carve out a role as an international trade and tourism hub and magnet for the ultra-rich.

The Ministry of Finance, in new regulations on Thursday, said qualifying entities in the UAE's more than 30 free zones - which export tens of billions of dollars of goods to neighbouring states - will be subject to a 0% rate, even when dealing with the mainland on certain strategic activities such as manufacturing, goods processing and logistics services.

"The regime has been designed to ensure strategic sectors will thrive in the free zones. Some level of migration may happen but the overall objective is ensuring the UAE remains attractive," Shabana Begum, MoF's executive director for tax policy told media, when asked whether the tax exemptions would encourage companies to relocate to free zones.

Winklevoss Twins’ Gemini Exchange to Seek Crypto License in #UAE - Bloomberg

Winklevoss Twins’ Gemini Exchange to Seek Crypto License in UAE - Bloomberg

Billionaire twins Tyler and Cameron Winklevoss’ Gemini crypto exchange plans to apply for a digital-asset license in the United Arab Emirates.

“Our application is our first step towards providing customers in the UAE and beyond with a safe, secure, and easy-to-use platform to engage with crypto,” Gemini said in a Twitter post on Thursday, adding the move is “another step towards making Gemini a truly global company.”

Gemini recently established a non-US crypto derivatives platform and in April unveiled plans to pursue growth in Asia. It’s one of a number of American digital-asset businesses that have been the target of legal action by the Securities and Exchange Commission. The regulatory heat has put the onus on searching for opportunities outside the US.

The exchange is also embroiled in an ongoing bankruptcy spat over failed crypto lender Genesis Global Capital. More than 200,000 users of Gemini’s Earn program have funds locked up in Genesis’s estate due to a service arrangement between the two companies.

#Dubai Luxury Real Estate Sales Are Driving the Global Market Rebound - Bloomberg

Dubai Luxury Real Estate Sales Are Driving the Global Market Rebound - Bloomberg

Dubai is driving a rebound in luxury real estate sales.

There were 88 homes sold for more than $10 million in the city during the first quarter, compared with 67 in Hong Kong and 58 in New York, according to a report from the real estate company Knight Frank, which tracks purchases in 12 markets. That pushed the global total to 417 properties, the most since the second quarter of 2022.

Dubai’s market has surged amid an influx of foreign wealth. It now accounts for about 17% of global luxury real estate sales, up from 2% in 2019, according to Knight Frank. London ranked second in the 12 months through March at 14%. Overall, the global market picked up after a few months of slowing activity due to higher interest rates and geopolitical risks, according to the report.

“The role of Dubai in supporting the global super-prime market cannot be overstated,” said Liam Bailey, the company’s global head of research. “Dubai’s sales boom has helped propel prime prices higher since the beginning of 2020, well ahead of the numbers seen in comparable markets.”

Electric Carmaker Lucid Raising About $3B With New Money From #Saudi Owners - Bloomberg

Electric Carmaker Lucid Raising About $3B With New Money From Saudi Owners - Bloomberg

Lucid Group Inc. is raising about $3 billion in a common stock offering with the majority of the money coming from the electric vehicle maker’s Saudi owners after a more than 60% stock slump in the last year. The shares plunged more than 7% in extended trading.

The company announced the raise along with a corresponding investment by its owners — Saudi Arabia’s Public Investment Fund — in a statement, confirming an earlier Bloomberg News report. PIF, the kingdom’s largest sovereign wealth fund, is purchasing $1.8 billion of the stock in a private placement.

A Lucid Air electric vehicle

Photographer: Angel Garcia/Bloomberg

The fund already owns about 60% of Newark, California-based Lucid, according to data compiled by Bloomberg. Bank of America Corp. is acting as the sole book-running manager for the public offering.

“Lucid intends to use the net proceeds from the public offering, as well as from the private placement by its majority stockholder, for general corporate purposes,” the company said.

#Dubai Revives Palm Jebel Ali Project After 14 Years Amid Real Estate Rebound - Bloomberg

Dubai Revives Palm Jebel Ali Project After 14 Years Amid Real Estate Rebound - Bloomberg

Dubai’s ruler approved a new development plan for the largest of the city’s famous palm-shaped artificial islands, reviving a project that was halted amid the global credit crisis of 2008 and left hundreds of buyers in limbo.

The new master plan for Palm Jebel Ali will include 80 hotels and resorts, and add 110 kilometers (68.351 miles) to the emirate’s coastline, according to the Dubai Media Office. The project, which hopes to house as many as 35,000 families, so is likely to feature luxury mansions and apartments. Roughly a third of its public facilities will be powered by renewable energy.

The project’s revival comes amid a rebound in the emirate’s property market, which has benefitted from an influx of newcomers that’s helped end a seven-year slump and sent real estate prices and rents soaring. Still, the announcement is likely to highlight the plight of hundreds of investors who bought homes on Palm Jebel Ali that never got built.

State-owned developer Nakheel PJSC first unveiled Palm Jebel Ali Fronds and The Palm Jebel Ali Water Homes in 2003. The project, about 50 kilometers from downtown Dubai, has 17 palm leaves and was meant to host marinas, a theme park, beach-side villas and a thousand homes on stilts that spelled out a poem by Dubai ruler Sheikh Mohammed bin Rashid Al Maktoum, according to reports at the time.

#SaudiArabia's Milling Company 3 plans 2024 IPO -sources | Reuters

Saudi Arabia's Milling Company 3 plans 2024 IPO -sources | Reuters

Saudi Arabia's Milling Company 3 (MC3) is planning an initial public offering (IPO) next year and has invited banks to pitch for roles in the deal, two sources familiar with the matter said.

MC3, which operates flour mills in the region of Khamis Mushait, Aljouf and Aljamoom, has appointed Moelis & Co as an adviser, said the sources, declining to be named because the matter was not public.

MC3 and Moelis did not immediately respond to a request for comment.

The company is targeting an offering in the first quarter of 2024, one of the sources said.

MC3 was one of several flour milling privatisations in Saudi Arabia. It was sold to a consortium of Al Ghurair Investment, Al Rajhi Holding Group and Masafi for 750 million riyals ($200 million) by the Saudi Grains Organization in 2020.

#AbuDhabi's ADNOC Logistics & Services trades 44.8% over IPO price in debut | Reuters

Abu Dhabi's ADNOC Logistics & Services trades 44.8% over IPO price in debut | Reuters

Shares in Abu Dhabi's ADNOC Logistics & Services climbed 44.8% above their listing price on its market debut on Thursday, after raising $769 million in an initial public offering for 19% of the business.

Shares traded at 2.91 dirhams as the Abu Dhabi market opened against an IPO price at the top of the indicative range at 2.01 dirhams per share.

ADNOC L&S exports crude oil, refined products, dry bulk and liquefied natural gas from Abu Dhabi.

It was created in 2016 following a merger between Abu Dhabi National Tanker Co, Petroleum Services Co and Abu Dhabi Petroleum Ports Operating Co.

Mideast Stocks: Gulf markets gain on potential US rate hike pause, debt bill optimism

Mideast Stocks: Gulf markets gain on potential US rate hike pause, debt bill optimism

Major stock markets in the Gulf rose in early trade on Thursday, as a potential pause in U.S. interest rate hikes and the debt ceiling bill passing a crucial vote renewed optimism.

U.S. Federal Reserve officials on Wednesday pointed towards a potential rate hike "skip" in June, which reversed market expectations of an imminent hike that could slow economic growth and weaken oil demand.

Most Gulf currencies are pegged to the U.S. dollar, while Saudi Arabia, the United Arab Emirates and Qatar usually mirror monetary policy changes in the United States.

Additionally, the U.S. House of Representatives' passage of a bill suspending the government's $31.4 trillion debt ceiling improved the chances of averting a disastrous government default.

Saudi Arabia's benchmark index gained 0.4%, led by a 1.8% rise in Al Rajhi Bank Banking and Investment Corp and a 0.6% increase in oil giant Saudi Aramco.

Separately, Lucid Group Inc said it plans to raise about $3 billion through a stock offering, nearly two-thirds of which will come from Saudi Arabia's Public Investment Fund (PIF), sending shares of the luxury electric vehicle maker down 9% after market hours.

Dubai's main share index added 0.1%, helped by a 0.7% rise in toll operator Salik Company PJSC .

Meanwhile, Dubai's ruler on Wednesday announced a new plan for the Palm Jebel Ali, a man-made palm-shaped island that has been dormant since 2009 following a real estate crash, and is double the size of the functioning Palm Jumeirah.

In Abu Dhabi, the index was up 0.2%.

The Qatari benchmark added jumped 1.4%, with almost all the stocks in positive territory including Qatar Islamic Bank QPSC, which advanced 1.7%.