Soft power: #SaudiArabia flexes muscles with launch of new Gulf airline Riyadh Air | Airline industry | The Guardian

Soft power: Saudi Arabia flexes muscles with launch of new Gulf airline Riyadh Air | Airline industry | The Guardian

As the deafening roar of an F35 fighter jet washes over the Paris air show, Tony Douglas allows himself a moment of nostalgia: he was formerly responsible for the UK government agency charged with buying the planes.

Now he is in charge of a different aviation proposition, leading the launch of a new commercial airline belonging to the Saudi Arabian state.

Riyadh Air, owned by the country’s Public Investment Fund, was first revealed in March alongside a provisional order for up to 72 Boeing 787 aeroplanes.

Now its full launch comes as the global aviation industry races to meet resurgent demand for air travel after the end of coronavirus pandemic lockdowns.

The carrier is this week showing its new purple livery – on a Boeing 787-9 Dreamliner – to the industry at the Paris air show, after making its debut last week in the Saudi capital, with which it shares its name.

It forms part of Saudi Arabia’s efforts to diversify its economy away from oil production under Mohammed bin Salman, the crown prince who has taken a central role in ruling the country – including allegedly approving the murder of regime critic Jamal Khashoggi, according to US intelligence agencies.

Gulf bourses end mixed on China growth concerns | Reuters

Gulf bourses end mixed on China growth concerns | Reuters

Gulf stock markets ended mixed on Tuesday as investors were cautious amid volatile oil prices and awaited more details on China's plans to shore up its sluggish economic recovery, with Dubai and Qatar ending lower and Saudi and Abu Dhabi closing higher.

China on Tuesday cut two benchmark lending rates by 10 basis points each. The rate cuts are the latest in a string of moves by Beijing to shore up a slowing recovery in the world's second-largest economy.

Dubai's benchmark index (.DFMGI) extended losses to a second straight session, ending 0.3% lower. The index was dragged down by losses in financial, utilities and industrial sectors with Emaar Properties (EMAR.DU) slumping 1.2% and Emirates Central Cooling Systems (EMPOWER.DU) dropping 0.6%.

The emirate's largest lender Emirates NBD (ENBD.DU) slipped 1%.

In Qatar, the benchmark index (.QSI) fell 0.2%, giving up the previous session's gains, weighed by a 1.2% decline in Qatar National Bank (QNBK.QA), the region's largest lender, and a 1.6% drop in Ezdan Holding (ERES.QA).

Saudi Arabia's benchmark index (.TASI) inched up 0.1%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) rising 0.7% and Company for Cooperative Insurance (8010.SE) climbing 2.3%.

Shares of Jamjoom Pharmaceuticals Factory (4015.SE) jumped as much as 30% to 78 riyals in its market debut from an offer price of 60 riyals.

In Abu Dhabi, the index (.FTFADGI) advanced for a third consecutive session, rising 0.1%, buoyed by a 1.1% gain in Alpha Dhabi (ALPHADHABI.AD) and a 1.8% rise in Burjeel (BURJEEL.AD).

"Oil prices remained volatile as Chinese economic recovery continues to fuel concerns among traders, affecting oil demand expectations," said Daniel Takieddine, CEO MENA at BDSwiss.

Crude prices - a key catalyst for the Gulf's financial markets - edged up on Tuesday with Brent crude up 0.9% at $76.78 a barrel at 1226 GMT.

Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%, extending previous session losses with financial and materials sectors trading in the red.

Commercial International Bank (COMI.CA) and Misr Fertilizers Production (MFPC.CA) slipped 0.7% and 4%, respectively. Ezz Steel (ESRS.CA) slumped 4.7%.

#AbuDhabi's ADNOC approaches Germany's Covestro with acquisition offer-sources | Reuters

Abu Dhabi's ADNOC approaches Germany's Covestro with acquisition offer-sources | Reuters

Abu Dhabi National Oil Company (ADNOC) has approached Covestro AG (1COV.DE), a German plastics and chemicals maker with a market value of 7.8 billion euros ($8.5 billion), with an takeover offer, people familiar with the matter said on Tuesday.

Details of the proposed terms and how Covestro will respond to the approach could not immediately be learned. The sources requested anonymity because the matter is confidential.

ADNOC did not immediately respond to requests for comment while Germany's Covestro declined to comment.

Covestro, a maker of transparent polycarbonate plastics as well as chemicals for insulation and upholstery foams, in April issued an earnings guidance that reassured markets about its growth prospects and it also resumed a share buyback programme.

Earlier on Tuesday it confirmed its outlook for 2023.

Shares in Covestro were up 10% at 1245 GMT.

#SaudiArabia’s PIF Leads Bidding for $2.5 Billion Vale Base Metals Stake - Bloomberg

Saudi Arabia’s PIF Leads Bidding for $2.5 Billion Vale Base Metals Stake - Bloomberg

PIF is in advanced discussions with the Brazilian miner about a deal for a roughly 10% holding in its base metals unit, according to the people, who asked not to be identified discussing confidential information. The stake could be valued at around $2.5 billion, they said.

The wealth fund is poised to beat out rival bidders including Japanese trading house Mitsui & Co. and the Qatar Investment Authority, the people said. It may take at least several weeks to hash out a formal agreement, the people said.

PIF may do the Vale deal through a joint venture it set up in January with Saudi Arabian state miner Maaden. The JV, established to take minority stakes in iron ore, copper, nickel and lithium businesses, is part of Saudi Arabia’s efforts to diversify its economy from oil and secure access to strategic minerals.

Deliberations are ongoing, and talks could fall apart or another buyer could emerge. Spokespeople for PIF and Maaden didn’t immediately provide comment or couldn’t be reached. Representatives for Mitsui, Vale and QIA declined to comment.

Shares of Vale were down 2% at 10:30 a.m. in Sao Paulo.

Jamjoom Pharmaceuticals Soars in Debut After #SaudiArabia’s Biggest IPO of 2023 - Bloomberg

Jamjoom Pharmaceuticals Soars in Debut After Saudi Arabia’s Biggest IPO of 2023 - Bloomberg

Jamjoom Pharmaceuticals Factory Co. rose by the maximum allowed in its trading debut after the generic drugmaker pulled off the largest initial public offering in Saudi Arabia this year.

The stock gained as much as 30% by 10:10 a.m. in Riyadh.

In May, the company’s owners raised 1.26 billion riyals ($336 million) after the shares were priced at the top end of the range at 60 riyals each. The listing, the largest in the kingdom since Saudi Aramco Base Oil Co. raised $1.3 billion in December, has served as a gauge of investor appetite as Saudi Arabia’s IPO market slowly comes back to life.

Saudi companies were cautious in the first half of the year as concerns about higher interest rates and a potential global economic slowdown weighed on sentiment. That’s a stark contrast to 2022, when firms in the kingdom raised the most through IPOs since 2019, when Saudi Aramco had the world’s largest ever listing.

Jamjoom Pharma secured two so-called cornerstone investors for its IPO, which is rare in Saudi Arabia. Together, Saudi Economic and Development Holding Co. and Al Faisaliah Group subscribed for almost a quarter of the offering. These type of investors can help shore up support for a deal in a volatile market and remove some of the risk because there are fewer shares to sell in the open market.

JPMorgan Chase & Co. and Saudi Fransi Capital were the financial advisers, bookrunners and underwriters for Jamjoom Pharma, while Al Rajhi Capital was an underwriter.

#Bahrain's Investcorp seeks to raise up to $600 mln from investment vehicle IPO | Reuters

Bahrain's Investcorp seeks to raise up to $600 mln from investment vehicle IPO | Reuters

Middle East alternative asset manager Investcorp Holding is seeking to raise up to $600 million from the listing of an investment vehicle in Abu Dhabi this year, two sources with knowledge of the matter told Reuters.

Bahrain-based Investcorp is making preparations for a potential public share sale of Investcorp Capital, registered in the Abu Dhabi Global Market, the international financial centre in the capital of the United Arab Emirates.

The vehicle, which will operate as an independent company, will hold Investcorp's private market co-investments across assets including credit, real estate and private equity, said the sources, declining to be named as the matter is not public.

Investcorp is working with Goldman Sachs (GS.N), First Abu Dhabi Bank (FAB) (FAB.AD), Emirates NBD (ENBD.DU) and HSBC (HSBA.L) on the plan, the people said. Moelis & Co (MC.N) is acting as financial adviser, they said.

Bloomberg in March reported Investcorp was putting together a plan to list the vehicle.

Sports deals cement Yasir Al-Rumayyan’s reputation at #Saudi wealth fund | Financial Times

Sports deals cement Yasir Al-Rumayyan’s reputation at Saudi wealth fund | Financial Times

A few months before Newcastle United clinched a return to Europe’s top football competition the Champions League after two decades on the sidelines, Yasir al-Rumayyan flew the team to his Riyadh residence for a December pep talk. 

It had been just over a year since the club’s acquisition by Saudi Arabia’s Public Investment Fund, and the 53-year-old PIF chief and Newcastle chair rallied the players with a speech before they bonded over a game of simulated golf. 

While Newcastle was experiencing a turnaround in its fortunes, Rumayyan’s other big sports venture, the upstart LIV golf tour, was flailing as it struggled to attract sponsors and battled with the US PGA in the law courts. The foray into golf, a personal obsession of Rumayyan’s, did not seem promising. 

This month’s announcement that LIV and the PGA were joining forces, with Rumayyan as chair, took many observers by surprise. While the plan still faces obstacles, including scrutiny from US lawmakers, it has elevated Rumayyan’s reputation as one of the world’s most influential sovereign wealth fund heads.

#AbuDhabi’s ADQ wealth fund held talks to acquire Lazard | Financial Times

Abu Dhabi’s ADQ wealth fund held talks to acquire Lazard | Financial Times

Abu Dhabi’s sovereign wealth fund ADQ held detailed talks to take Wall Street investment bank Lazard private, in a move that underlined the oil-rich emirate’s ambitions to acquire a western financial services company. 

The talks were held this year between Lazard, led by outgoing chief executive Ken Jacobs, and ADQ, led by Sheikh Tahnoon bin Zayed al-Nahyan, the fund’s chair and Abu Dhabi’s powerful national security adviser, said people with direct knowledge of the matter. 

Negotiations fell apart after both sides walked away from a deal. Lazard, which is best known for its advisory business in Paris, New York and London, had been focused on maintaining operating independence, one person added. 

Lazard said: “As you’d expect, we talk to people all the time but we don’t comment on speculation.” ADQ declined to comment.

#Qatar strikes second big LNG supply deal with China | Reuters

Qatar strikes second big LNG supply deal with China | Reuters

Qatar on Tuesday secured its second large gas supply deal with a Chinese state-controlled company in less than a year, putting Asia clearly ahead in the race to secure gas supplies from Doha's massive production expansion project.

China National Petroleum Corporation (CNPC) and QatarEnergy signed a 27-year agreement, under which China will purchase 4 million metric tons of LNG a year from the Gulf Arab state.

CNPC will also take an equity stake in the eastern expansion of Qatar's North Field liquefied natural gas (LNG) project, QatarEnergy chief Saad al-Kaabi said at the signing.

The stake is the equivalent of 5% of one LNG train with the capacity of 8 million tons a year.

"Today we are signing two agreements that will further enhance our strong relations with one of the most important gas markets in the world and key market for Qatari energy products," Kaabi said.

Major Gulf bourses fall in early trade, #Qatar rises | Reuters

Major Gulf bourses fall in early trade, Qatar rises | Reuters

Most stock markets in the Gulf fell on Tuesday, as caution set in a day ahead of U.S. Federal Reserve Chair Jerome Powell's congressional testimony.

Powell is scheduled to deliver congressional testimony on monetary policy on Wednesday and Thursday. Traders are pricing in a nearly 75% chance of a 25-basis points rate hike by the Fed at its July meeting after a pause in June.

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 stock index (.TASI) declined 0.4%, with all sectors trading in negative territory. Riyad Bank (1010.SE) fell 1.1% and Banque Saudi Fransi (1050.SE) slid 1.8%. Al Rajhi Bank (1120.SE), the world's largest Islamic bank by assets, lost 1%.

Dubai's benchmark stock index (.DFMGI) dropped 0.3%, weighed down by losses in the finance and utilities sectors. Emaar Properties (EMAR.DU) fell 1.5% and Dubai Islamic Bank (DISB.DU) shed 0.7%. The emirate's largest lender, Emirates NBD (ENBD.DU), slipped 1.3%.

In Abu Dhabi, the benchmark stock index (.FTFADGI) lost 0.3%, weighed down by a 1.3% loss in Abu Dhabi Islamic Bank (ADIB.AD) and 2% drop in Abu Dhabi Ship Building (ADSB.AD). The United Arab Emirates' biggest lender, First Abu Dhabi Bank (FAB.AD), slipped 1%.

In Qatar, the benchmark stock index (.QSI) rose 0.4%, with all sectors trading in positive territory. Qatar Islamic Bank (QISB.QA) and Qatar International Islamic Bank (QIIB.QA) gained 1.7% and 0.4%, respectively.