Dubai-Based Mashreqbank Plans Digital Expansion Into Saudi Arabia, Pakistan - Bloomberg
Dubai-based Mashreqbank PSC is pushing ahead with plans to increase its digital reach in some of the region’s most populous countries, with a major focus on Saudi Arabia.
The lender has applied for banking licenses in Saudi Arabia, Oman and Pakistan, and is seeking to expand in Egypt, Chief Executive Officer Ahmed Abdelaal said in an interview.
“We are pretty much focused on Saudi. We have applied for a banking license and we are going through the process right now,” he said. “We just got a positive nod also from the Central Bank of Oman to establish a business over there.”
Discussions are advanced, Abdelaal said, declining to give a timeline for when he expects to receive approval. In those countries, Mashreq will provide services “purely on a digital” basis, he said. In Egypt, the lender plans to scale up its online platforms Neo and NeoBiz by second half of the year, and plans to launch a digital bank in Pakistan in the next 12 to 18 months.
Like other lenders in the region, Mashreq is focusing on its digital business to attract a younger client base. In some countries such as Egypt, many customers are only able to access banking services via online platforms.
Wednesday, 7 June 2023
IMF says #SaudiArabia growth to slow to 2.1% in 2023 on oil production cuts | Reuters
IMF says Saudi Arabia growth to slow to 2.1% in 2023 on oil production cuts | Reuters
The International Monetary Fund (IMF) expects growth in Saudi Arabia to slow to 2.1% in 2023 on the back of OPEC+ production cuts announced in April, it said in a statement on Wednesday, lower than its latest forecast released in May.
The Fund had forecast Saudi GDP growth at 3.1% last month. The Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom's first budget surplus in almost 10 years.
On Sunday, Saudi Arabia's energy ministry announced the country would make a further voluntary cut of 1 million barrels per day to its oil output in July, but the impact on prices has been muted as global worries and an uncertain demand outlook weigh.
The IMF, in its latest Article IV mission concluding statement, said that while April's cuts would reduce overall growth to 2.1%, non-oil growth is expected to remain robust.
"...non-oil growth is expected to average 5% in 2023 and remain above potential as strong consumption spending and accelerated project implementation boost demand," the statement said.
The IMF also said that Saudi Arabia's fiscal balance would swing to a deficit in 2023 on lower oil revenue. It did not provide an updated figure for its projected deficit, but its May report stated a deficit of 1.1% of GDP in 2023.
"Potential additional dividends from Aramco could improve the fiscal position", the IMF statement said.
The Saudi government has forecast a second consecutive budget surplus for this year, albeit narrower than in 2022.
The International Monetary Fund (IMF) expects growth in Saudi Arabia to slow to 2.1% in 2023 on the back of OPEC+ production cuts announced in April, it said in a statement on Wednesday, lower than its latest forecast released in May.
The Fund had forecast Saudi GDP growth at 3.1% last month. The Saudi economy grew 8.7% last year, as high oil prices boosted revenue and led to the kingdom's first budget surplus in almost 10 years.
On Sunday, Saudi Arabia's energy ministry announced the country would make a further voluntary cut of 1 million barrels per day to its oil output in July, but the impact on prices has been muted as global worries and an uncertain demand outlook weigh.
The IMF, in its latest Article IV mission concluding statement, said that while April's cuts would reduce overall growth to 2.1%, non-oil growth is expected to remain robust.
"...non-oil growth is expected to average 5% in 2023 and remain above potential as strong consumption spending and accelerated project implementation boost demand," the statement said.
The IMF also said that Saudi Arabia's fiscal balance would swing to a deficit in 2023 on lower oil revenue. It did not provide an updated figure for its projected deficit, but its May report stated a deficit of 1.1% of GDP in 2023.
"Potential additional dividends from Aramco could improve the fiscal position", the IMF statement said.
The Saudi government has forecast a second consecutive budget surplus for this year, albeit narrower than in 2022.
Most Gulf markets gain on Fed rate pause hope; oil, Chinese data weigh | Reuters
Most Gulf markets gain on Fed rate pause hope; oil, Chinese data weigh | Reuters
Most stock markets in the Gulf settled higher on Wednesday ahead of a widely expected pause in interest rate hike by the U.S. Federal Reserve, while volatile energy prices and weak Chinese data limited gains.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, gaining for a fourth straight session, with the country's biggest lender Saudi National Bank (1180.SE) climbing 2.3%.
However, oil behemoth Saudi Aramco (2222.SE) lost 0.5%.
The kingdom's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s to low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half of the year.
Dubai's main share index (.DFMGI) added 0.3%, supported by a 1.7% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) inched 0.2% higher.
The Abu Dhabi bourse was volatile, echoing the price movements in oil markets. In this regard, the uncertainty in energy markets could weigh on expectations while the main index continues to trade below this year's low, said Daniel Takieddine, CEO MENA at BDSwiss.
"The market could recover if oil prices rebound significantly."
Prices of oil, which fuels the Gulf's economy, edged higher as Saudi Arabia's surprise weekend pledge to deepen output cuts outweighed weak Chinese export data and rising U.S. fuel stocks.
The Qatari benchmark (.QSI) finished 0.4% higher, with Commercial Bank (COMB.QA) advancing 1.5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 0.8%.
The Egyptian stock market was weighed by changing global sentiment today but remained on an uptrend over a longer time frame, said Takieddine.
"However, the market continued to see support from local investors that dominated trading volumes."
Most stock markets in the Gulf settled higher on Wednesday ahead of a widely expected pause in interest rate hike by the U.S. Federal Reserve, while volatile energy prices and weak Chinese data limited gains.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark index (.TASI) rose 0.5%, gaining for a fourth straight session, with the country's biggest lender Saudi National Bank (1180.SE) climbing 2.3%.
However, oil behemoth Saudi Aramco (2222.SE) lost 0.5%.
The kingdom's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s to low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half of the year.
Dubai's main share index (.DFMGI) added 0.3%, supported by a 1.7% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) inched 0.2% higher.
The Abu Dhabi bourse was volatile, echoing the price movements in oil markets. In this regard, the uncertainty in energy markets could weigh on expectations while the main index continues to trade below this year's low, said Daniel Takieddine, CEO MENA at BDSwiss.
"The market could recover if oil prices rebound significantly."
Prices of oil, which fuels the Gulf's economy, edged higher as Saudi Arabia's surprise weekend pledge to deepen output cuts outweighed weak Chinese export data and rising U.S. fuel stocks.
The Qatari benchmark (.QSI) finished 0.4% higher, with Commercial Bank (COMB.QA) advancing 1.5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) retreated 0.8%.
The Egyptian stock market was weighed by changing global sentiment today but remained on an uptrend over a longer time frame, said Takieddine.
"However, the market continued to see support from local investors that dominated trading volumes."
South Africa Revives Gupta Brothers Extradition Bid After #UAE Talks - Bloomberg
South Africa Revives Gupta Brothers Extradition Bid After UAE Talks - Bloomberg
South Africa’s Justice Ministry said it will renew its attempt to extradite Atul and Rajesh Gupta from the United Arab Emirates, after holding talks with the emirate’s authorities.
A joint task team will meet June 15 to examine the requests for extradition afresh, the ministry said in a statement on Wednesday.
The Gupta brothers are wanted in South Africa on charges of money laundering and fraud. A judicial inquiry into corruption detailed close links between the brothers and former President Jacob Zuma during his nine-year rule — an era known as state capture, when the government estimates that more than 500 billion rand ($26 billion) was stolen from its coffers. Zuma and the Guptas have denied wrongdoing.
The Guptas were arrested in the UAE in June 2022 after Interpol placed them on its most-wanted list. Two months ago, the UAE announced it had denied the South African authorities’ petition to extradite them and canceled their arrests, after finding the request failed to meet the emirate’s “strict standards for legal documentation.”
Wednesday’s announcement comes after South African Justice Minister Ronald Lamola met his UAE counterpart, Abdullah Sultan Awad Al Nuaimi, on June 5 to discuss “enhancing the partnership in mutual legal assistance and extradition matters” for the benefit of both nations, the ministry said.
The South African government has spent millions of rands on efforts to bring the Gupta brothers to justice. The only lawsuit in which the two men have been charged was recently thrown out of court, after the judge labeled the state’s case against them and their co-accused as “lackadaisical.” An appeal is currently under way.
South Africa’s Justice Ministry said it will renew its attempt to extradite Atul and Rajesh Gupta from the United Arab Emirates, after holding talks with the emirate’s authorities.
A joint task team will meet June 15 to examine the requests for extradition afresh, the ministry said in a statement on Wednesday.
The Gupta brothers are wanted in South Africa on charges of money laundering and fraud. A judicial inquiry into corruption detailed close links between the brothers and former President Jacob Zuma during his nine-year rule — an era known as state capture, when the government estimates that more than 500 billion rand ($26 billion) was stolen from its coffers. Zuma and the Guptas have denied wrongdoing.
The Guptas were arrested in the UAE in June 2022 after Interpol placed them on its most-wanted list. Two months ago, the UAE announced it had denied the South African authorities’ petition to extradite them and canceled their arrests, after finding the request failed to meet the emirate’s “strict standards for legal documentation.”
Wednesday’s announcement comes after South African Justice Minister Ronald Lamola met his UAE counterpart, Abdullah Sultan Awad Al Nuaimi, on June 5 to discuss “enhancing the partnership in mutual legal assistance and extradition matters” for the benefit of both nations, the ministry said.
The South African government has spent millions of rands on efforts to bring the Gupta brothers to justice. The only lawsuit in which the two men have been charged was recently thrown out of court, after the judge labeled the state’s case against them and their co-accused as “lackadaisical.” An appeal is currently under way.
#SaudiArabia's AviLease gets $1.1 billion loan | Reuters
Saudi Arabia's AviLease gets $1.1 billion loan | Reuters
AviLease, a jet lessor owned by Saudi Arabia's Public Investment Fund (PIF), said on Wednesday it has secured a $1.1 billion unsecured five-year loan for general corporate use, including buying more planes.
Bloomberg News reported on Monday that AviLease was in advanced talks to buy Standard Chartered's aviation finance business, a deal that could be valued at about $3.75 billion.
The two-part loan has an $850 million tranche and a $250 million shariah-compliant tranche. It was 3.3 times oversubscribed, AviLease said.
Citibank, Riyad Bank, First Abu Dhabi Bank, Gulf International Bank and Saudi Awwal Bank were mandated lead arrangers.
They were joined by Banque Saudi Fransi, Saudi Investment Bank, Abu Dhabi Commercial Bank and HSBC on the conventional tranche and Dubai Islamic Bank, Alrajhi Bank, Bank AlJazira and Saudi National Bank on the shariah-compliant tranche.
Citi was financial adviser to AviLease and Allen & Overy its counsel. The lenders were advised by Clifford Chance.
AviLease, a jet lessor owned by Saudi Arabia's Public Investment Fund (PIF), said on Wednesday it has secured a $1.1 billion unsecured five-year loan for general corporate use, including buying more planes.
Bloomberg News reported on Monday that AviLease was in advanced talks to buy Standard Chartered's aviation finance business, a deal that could be valued at about $3.75 billion.
The two-part loan has an $850 million tranche and a $250 million shariah-compliant tranche. It was 3.3 times oversubscribed, AviLease said.
Citibank, Riyad Bank, First Abu Dhabi Bank, Gulf International Bank and Saudi Awwal Bank were mandated lead arrangers.
They were joined by Banque Saudi Fransi, Saudi Investment Bank, Abu Dhabi Commercial Bank and HSBC on the conventional tranche and Dubai Islamic Bank, Alrajhi Bank, Bank AlJazira and Saudi National Bank on the shariah-compliant tranche.
Citi was financial adviser to AviLease and Allen & Overy its counsel. The lenders were advised by Clifford Chance.
How the PGA Tour, LIV Merger Happened With Help From #Saudi Wealth Manager - Bloomberg video
How the PGA Tour, LIV Merger Happened With Help From Saudi Wealth Manager - Bloomberg
PGA Tour and LIV Golf have been at each other’s throats in public for years. But in recent weeks, leaders of the rival golf circuits had been hard at work in secret on a detente.
Yasir Al Rumayyan, the golf-crazy chairman of Saudi Arabia’s Public Investment Fund that is LIV’s biggest backer, jetted around the world for several rounds of discussions with top officials from the PGA Tour about a possible combination, according to people familiar with the matter. On Tuesday, his efforts paid off: PGA Tour and LIV announced that they would merge, ending their pitched battle with a shocking truce.
The transaction will create a global golf superpower and bring to an end all outstanding litigation between the two sides. This account of how the deal came together is based on details from multiple people familiar with the discussions, all of whom asked not to be identified discussing private information.
PGA board members Ed Herlihy and Jimmy Dunne initially met with Rumayyan and his associates in London at the end of April, where they talked extensively for the first time about a potential tie-up. A couple of weeks later, the discussions moved to Venice, where Herlihy introduced PGA Tour Commissioner Jay Monahan to Rumayyan. The pair hadn’t previously met in person, one of the people said.
After a final round of meetings at the Four Seasons Hotel and at offices in San Francisco, the deal was signed over the US Memorial Day weekend late last month, one of the people said. It came amid a nearly yearlong legal battle between the two entities that threatened the future of the professional golf industry globally and raised geopolitical concerns.
PGA Tour and LIV Golf have been at each other’s throats in public for years. But in recent weeks, leaders of the rival golf circuits had been hard at work in secret on a detente.
Yasir Al Rumayyan, the golf-crazy chairman of Saudi Arabia’s Public Investment Fund that is LIV’s biggest backer, jetted around the world for several rounds of discussions with top officials from the PGA Tour about a possible combination, according to people familiar with the matter. On Tuesday, his efforts paid off: PGA Tour and LIV announced that they would merge, ending their pitched battle with a shocking truce.
The transaction will create a global golf superpower and bring to an end all outstanding litigation between the two sides. This account of how the deal came together is based on details from multiple people familiar with the discussions, all of whom asked not to be identified discussing private information.
PGA board members Ed Herlihy and Jimmy Dunne initially met with Rumayyan and his associates in London at the end of April, where they talked extensively for the first time about a potential tie-up. A couple of weeks later, the discussions moved to Venice, where Herlihy introduced PGA Tour Commissioner Jay Monahan to Rumayyan. The pair hadn’t previously met in person, one of the people said.
After a final round of meetings at the Four Seasons Hotel and at offices in San Francisco, the deal was signed over the US Memorial Day weekend late last month, one of the people said. It came amid a nearly yearlong legal battle between the two entities that threatened the future of the professional golf industry globally and raised geopolitical concerns.
Commercial Bank of #Dubai gives price guidance for $500mln green bonds
Commercial Bank of Dubai gives price guidance for $500mln green bonds
Commercial Bank of Dubai is expected to raise $500 million through a debut sale of green bonds, for which initial price guidance was around 175 basis points over U.S. Treasuries, a bank document showed on Wednesday.
The five-year bonds are expected to price later on Wednesday, the document on the debt sale from one of the arranging banks showed.
Commercial Bank of Dubai is expected to raise $500 million through a debut sale of green bonds, for which initial price guidance was around 175 basis points over U.S. Treasuries, a bank document showed on Wednesday.
The five-year bonds are expected to price later on Wednesday, the document on the debt sale from one of the arranging banks showed.
#Qatar Investment Authority wants to fully acquire Telecom Egypt’s stake in Vodafone Egypt via subsidiary: sources
Qatar Investment Authority wants to fully acquire Telecom Egypt’s stake in Vodafone Egypt via subsidiary: sources
Sources in the mobile market revealed that the Qatar Investment Authority aims to acquire the entire stake of Telecom Egypt in Vodafone Egypt.
Sources close to the negotiations told Daily News Egypt that the negotiations, which have now been renewed, revolve around the sold share, and the Qatari sovereign fund wants to acquire the entire government stake in Vodafone Egypt, amounting to 45%, while the government wants to sell only part of the share, which has been a contentious point since the start. The negotiations have been going on for several months, according to sources.
The sources said that the Qatari Sovereign Fund may use one of the specialized subsidiaries to implement the deal, to be followed by the acquisition of the remaining stake of the South African Vodacom Company.
According to the expected scenarios disclosed by the sources to Daily News Egypt, the deal may be implemented in two phases. The first phase will aim to obtain all or part of Telecom Egypt’s stake in Vodafone Egypt, which allows them to be present with representatives on the company’s board of directors to be a window to learn about the nature of the market in Egypt and the nature of the competition is close, and then enter into negotiations with Vodacom to acquire its share.
The sources expect the deal to be closed before 30 June, given the Egyptian government’s efforts to provide investments worth $2bn.
Sources in the mobile market revealed that the Qatar Investment Authority aims to acquire the entire stake of Telecom Egypt in Vodafone Egypt.
Sources close to the negotiations told Daily News Egypt that the negotiations, which have now been renewed, revolve around the sold share, and the Qatari sovereign fund wants to acquire the entire government stake in Vodafone Egypt, amounting to 45%, while the government wants to sell only part of the share, which has been a contentious point since the start. The negotiations have been going on for several months, according to sources.
The sources said that the Qatari Sovereign Fund may use one of the specialized subsidiaries to implement the deal, to be followed by the acquisition of the remaining stake of the South African Vodacom Company.
According to the expected scenarios disclosed by the sources to Daily News Egypt, the deal may be implemented in two phases. The first phase will aim to obtain all or part of Telecom Egypt’s stake in Vodafone Egypt, which allows them to be present with representatives on the company’s board of directors to be a window to learn about the nature of the market in Egypt and the nature of the competition is close, and then enter into negotiations with Vodacom to acquire its share.
The sources expect the deal to be closed before 30 June, given the Egyptian government’s efforts to provide investments worth $2bn.
#Saudi, #Qatar bourses rise in early trade, oil weighs on other markets | Reuters
Saudi, Qatar bourses rise in early trade, oil weighs on other markets | Reuters
Stock markets in Saudi Arabia and Qatar rose in early trade on Wednesday ahead of a widely expected interest rate hike pause by the U.S. Federal Reserve, although other major markets were subdued on falling oil prices.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, on course to extend gains for a fourth straight session, with Alinma Bank SJSC (1150.SE) rising 2.6% and telecoms firm Etihad Etisalat Company SJSC (7020.SE) jumping 3.1%.
However, oil behemoth Saudi Aramco (2222.SE) lost 0.5%.
The kingdom's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s to low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half of the year.
In Qatar, the benchmark (.QSI) added 0.3%, with Ooredoo QPSC (ORDS.QA) advancing 1.9% and Qatar Electricity and Water Company QPSC (QEWC.QA) trading 2% higher.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1.5% fall in utility firm Dubai Electricity and Water Authority PJSC (DEWAA.DU) losing 1.5%.
The Abu Dhabi index (.FTFADGI) was down 0.1%.
Oil - a key catalyst for the Gulf's financial markets - extended losses as concerns over global economic headwinds deepened, erasing the gains booked after top crude exporter Saudi Arabia's surprise weekend pledge to deepen output cuts.
Stock markets in Saudi Arabia and Qatar rose in early trade on Wednesday ahead of a widely expected interest rate hike pause by the U.S. Federal Reserve, although other major markets were subdued on falling oil prices.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, on course to extend gains for a fourth straight session, with Alinma Bank SJSC (1150.SE) rising 2.6% and telecoms firm Etihad Etisalat Company SJSC (7020.SE) jumping 3.1%.
However, oil behemoth Saudi Aramco (2222.SE) lost 0.5%.
The kingdom's pledge to deepen output cuts is unlikely to underpin a sustainable price increase into the high $80s to low $90s, Citi said in a note on Tuesday, even as other brokerages signalled a bigger deficit in the second half of the year.
In Qatar, the benchmark (.QSI) added 0.3%, with Ooredoo QPSC (ORDS.QA) advancing 1.9% and Qatar Electricity and Water Company QPSC (QEWC.QA) trading 2% higher.
Dubai's main share index (.DFMGI) eased 0.1%, hit by a 1.5% fall in utility firm Dubai Electricity and Water Authority PJSC (DEWAA.DU) losing 1.5%.
The Abu Dhabi index (.FTFADGI) was down 0.1%.
Oil - a key catalyst for the Gulf's financial markets - extended losses as concerns over global economic headwinds deepened, erasing the gains booked after top crude exporter Saudi Arabia's surprise weekend pledge to deepen output cuts.