Gulf stock markets end mixed amid China growth uncertainties | Reuters
Stock markets in the Gulf ended mixed on Monday as investors remained cautious amid volatile oil prices and hopes for more economic stimulus from China, with Saudi and Dubai ending lower and Qatar and Abu Dhabi closing higher.
Crude prices - a key catalyst for the Gulf's financial markets - fell with Brent crude down 0.2%, to $76.44 a barrel by 0944 GMT.
Saudi Arabia's benchmark index (.TASI) slumped 0.8%, dragged down by losses in all sectors with the world's largest Islamic bank by assets Al Rajhi Bank (1120.SE) dropping 1.4% and oil major Saudi Aramco (2222.SE) shedding 0.6%.
Among the losers, Dr Sulaiman Al-Habib Medical Services(4013.SE) and Mouwasat Medical (4002.SE) lost 1.5% and 7% respectively.
"GCC stock markets were mostly under pressure with energy volatility and price corrections affecting expectations", said Farah Mourad, Senior Market Analyst of XTB MENA.
"Traders awaiting details about an economic stimulus for the Chinese economy".
The world's top crude importer China is widely expected to cut key lending benchmarks on Tuesday to boost its economic growth, which has seen a rocky post-pandemic recovery.
Dubai's benchmark index (.DFMGI) snapped its two-week winning streak and ended 0.1% lower. The index was weighed down by losses in utilities and financial sectors with Emaar Properties(EMAR.DU) falling 0.9% and Dubai Electricity and Water Authority(DEWAA.DU) dropping 1.1%.
In Qatar, the benchmark index (.QSI) rose 0.2%, recouping its losses across two consecutive sessions, with most sectors trading in the green.
The index was supported by a 4.9% surge in Ooredoo QPSC (ORDS.QA) and 1.8% rise in Qatar Navigation(QNNC.QA).
In Abu Dhabi, the index (.FTFADGI) continued its gains for a second consecutive session, trading 0.1% higher. The index was helped by a 3.9% gain in Abu Dhabi National Energy Company (TAQA.AD) (TAQA) and a 2.3% rise in Burjeel(BURJEEL.AD).
The United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD), gained 0.5%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) slipped 0.2%, ending four-session gains with financial and communication sectors trading in the red.
Commercial International Bank (COMI.CA) and EFG Hermes (HRHO.CA) slipped 1.1% and 2.1 respectively. Telecom Egypt (ETEL.CA) lost 1.7%.
Qatar Wealth Fund Taps Credit Suisse Banker Hussam Qasim for Investment Role - Bloomberg
Qatar Investment Authority is set to hire Hussam Qasim from Credit Suisse Group AG for its domestic investment team as the $450 billion sovereign wealth fund prepares for an increase in inflows.
Qasim will join in the coming months, according to people familiar with the matter, who didn’t want to be identified because the information isn’t public. He was previously a director for investment banking and capital markets for Credit Suisse in the Middle East and North Africa.
Representatives for the QIA and Credit Suisse declined to comment.
The Qatari fund is planning to target more investment in new frontiers and sectors like technology and health care, as high demand for its natural resources and the end of a $300 billion World Cup splurge bring the promise of extra cash to burn, its chief executive officer said in a recent interview. Those inflows will likely be diverted into the US and Asia in areas such as climate change, digitization and infrastructure.
Qasim also worked at UBS Group AG and Morgan Stanley, according to his LinkedIn profile.
The QIA was set up in 2005 to manage Qatar’s assets and to help the Gulf state diversify its economy. Its domestic investment team oversees local entities that could be consolidated or listed in the future.
The fund now employs about 550 people. It last year appointed a former Morgan Stanley managing director as head of capital markets and a former JPMorgan Chase & Co. executive as chief financial officer.
Saudi SCOPA and Airbus agree to produce helicopters in the kingdom -SCOPA CEO | Reuters
Saudi defence company SCOPA Industries and Airbus (AIR.PA) have signed an agreement to jointly produce civil and military helicopters in the kingdom, SCOPA CEO Fawaz Alakeel told Saudi state TV on Monday.
The deal was announced on the sidelines of a Saudi-French investment forum being held during a visit by Saudi Arabia's Crown Prince Mohammed bin Salman to France that started last week.
Alakeel said the first helicopters produced at joint SCOPA and Airbus factories in Saudi Arabia would be seen with 24 months of next February's World Defense Show, where he said the "foundation stone" for the project would be laid.
He added that SCOPA expects to manufacture more than 100 helicopters and create 8500 jobs in the kingdom. Without giving further details he said the company expects investments worth more than 25 billion riyals ($6.67 billion) over 20 years.
Saudi and French companies have signed 24 agreements at the forum, Saudi state TV reported without further details.
Qatari companies partner with Iraq on $9.5 billion worth of projects | Reuters
Three Qatari companies and Iraq's National Investment Commission have agreed to develop $9.5 billion worth of projects in Iraq, including the construction of a pair of power plants that will generate a total of 2,400 megawatts, according to statements issued on Sunday.
UCC Holding and the investment commission on Thursday signed a 25-year public-private partnership linked to the two power plants, which will cost $2.5 billion to build, a statement issued by UCC Holding said.
The power plants will help reduce Iraq's reliance on neighbouring Iran for its energy needs.
Iraq imports electricity and gas from Iran, which in total makes up between a third and 40% of its power supply, especially crucial in the sweltering summer months when temperatures can top 50 degrees Celsius (122°F) and power consumption peaks.
Dubai chases long-term growth as property booms, seeks to blunt debt risk | Reuters
The approach pursued by the glitzy Gulf city-state is a reboot of a flamboyant economic model that for decades focused on property investment, tourism and inflows of foreign capital.
Property is booming once more -- helped by Russian demand amid war in Ukraine and laxer residency rules -- and analysts this time see more guardrails in place against any repeat of the problems that subdued Dubai after the 2008 global credit crunch.
Home to the world's tallest tower and man-made islands, Dubai is chasing lofty new goals: A 10-year economic plan known as D33 aims to double the economy's size and make Dubai one of the top four global financial centres in a decade.
It also wants to increase the length of its public beaches to 105 km from 21 km by 2040 and revive the dusty Palm Jebel Ali island abandoned in the wake of the 2008 financial crisis.
Tourist numbers in 2023 are almost back to levels of 2019, and last year Dubai was the world's fourth busiest ultra-prime property market, with 219 home sales over $10 million, according to Knight Frank research.
Dubai's Amanat says considering IPO of healthcare platform | Reuters
Dubai-listed Amanat Holdings (AMANT.DU) is considering monetisation options for its healthcare platform, including a possible regional initial public offering (IPO) in the near-term, the company said in a bourse statement on Monday.
Responding to recent media reports, Amanat, a healthcare and education investment company, said it is considering the appointment of external advisers and would update markets once the process was completed.
Amanat, which is listed on the Dubai Financial Market, announced the launch of Amanat Healthcare in April.
Saudi Wealth Fund Launches New Firm to Attract Pharma Investors - Bloomberg
Saudi Arabia’s Public Investment Fund is creating a new entity to attract pharmaceutical and biotech companies to invest in drug manufacturing as the kingdom seeks to accelerate a shift away from reliance on oil sales.
The Pharmaceutical Investment Company aims to partner with local and international firms to develop pharmaceutical products including insulins, vaccines, plasma therapeutics, monoclonal antibodies and cell and gene therapies among others, the PIF said in a statement Sunday. The statement didn’t disclose any financial details of proposed investments.
Lifera, as the new entity is known, will “enable the private sector to scale up, ensuring easier access for patients, whilst securing supply of life-saving medicines that can meet local, regional and global demand,” said Yazeed Al-Humeid the PIF’s deputy governor.
Under the leadership of the country’s de facto ruler, Crown Prince Mohammed bin Salman, the PIF has become one of the world’s largest sovereign wealth fund with assets of about $700 billion. He has turned the once sleepy domestic-focused holding company into the main driver of his multi-trillion-dollar ambition to transform the kingdom’s economy into one less dependent on oil revenue and catapult it into the ranks of the top 15 economies by 2030.
The PIF, which has established 79 companies across 13 sectors since 2017, says its main aim is to act as a catalyst for fast development, innovation and job creation but many critics see it as crowding out the private sector and stifling entrepreneurship. In addition to its overseas investments in golf and e-gaming, it’s also launched local firms including a boutique hotel chain, a coffee company and a vaping business.
Most Gulf markets drop as China slowdown jitters weigh | Reuters
Most stock markets in the Gulf fell in early trade on Monday, tracking oil prices lower, as concerns over China's faltering economic growth outweighed support from OPEC+ production cuts.
Crude prices — a key catalyst for the Gulf's financial markets — slid 1.2% on Monday with Brent crude down at $75.73 a barrel by 0730 GMT.
Several major banks have cut their 2023 gross domestic product growth forecasts for China after May data last week showed the post-COVID recovery in the world's second-largest economy was faltering.
Tepid data added to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.
Saudi Arabia's benchmark stock index (.TASI) was down 0.3%, dented by losses in most sectors with Jabal Omar (4250.SE) falling 1.4% and oil giant Saudi Aramco (2222.SE) shedding 0.5%.
Al Rajhi Bank (1120.SE), the world's largest Islamic bank by assets, lost 0.7%.
Dubai's benchmark stock index (.DFMGI) dropped 0.1% in early trade, weighed down by finance and utilities sectors, with Dubai Electricity and Water Authority (DEWAA.DU) slipping 1.1% and the Emaar Properties (EMAR.DU) slipping nearly 1%.
Commercial Bank of Dubai (CBD.DU) and Emirates Integrated Telecommunications (DU.DU) slid 5.2% and 1.5%, respectively.
In Abu Dhabi, the benchmark stock index (.FTFADGI) dipped 0.2%, dragged down by a 1% loss in Alpha Dhabi Holding (ALPHADHABI.AD) and 0.3% decline in First Abu Dhabi Bank(FAB.AD), largest lender in the United Arab Emirates.
Among the losers, Multiply Group (MULTIPLY.AD) and Easy Lease(EASYLEASE.AD) lost 1.6% and 1.5%, respectively.
In Qatar, the benchmark (.QSI) added 0.2%, with Qatar Gas Transport(QGTS.QA) (Nakilat) gaining 1.1% and Ahli Bank QPSC (AABQ.QA) trading 1% higher.
Earlier this month, OPEC+ had agreed on a new oil output deal. The group's biggest producer - Saudi Arabia - also pledged to make a deep cut to its output in July.
Saudi Arabia is the only member of OPEC+ with sufficient spare capacity and storage to be able to easily reduce and increase output. It was able to respond rapidly to excess supply that weakened the market in the early stages of the pandemic in 2020 when the group of producers implemented record output cuts.
