Saudi Arabia has been spending hundreds of millions of dollars snapping up international soccer stars in recent months, including legendary players like Cristiano Ronaldo and Karim Benzema, to boost the rosters of its Saudi Pro League. It's not the first time we've seen a country spend a lot of money to try to build up a domestic sports league, but it does have some key differences to previous attempts like we've seen in China, or in the US with Major League Soccer. For a start, the kingdom is spending a lot of money, opening up thorny questions about competition worldwide and Financial Fair Play rules in Europe, specifically. More importantly, it's also doing this at a governmental scale, with the kingdom's sovereign wealth fund and state-owned oil giant taking active roles. So what exactly is Saudi Arabia trying to accomplish and will it succeed? And what does this huge influx of money mean for soccer in the rest of the world? On this episode, we speak with Michael Caley and Mike Goodman, co-hosts of the Double Pivot Podcast, to discuss the big business of football and why turning a profit is not always the primary goal.
Monday 26 June 2023
Why #SaudiArabia Is Investing Hundreds of Millions of Dollars in Soccer - Bloomberg podcast
Why Saudi Arabia Is Investing Hundreds of Millions of Dollars in Soccer - Bloomberg
Saudi Arabia has been spending hundreds of millions of dollars snapping up international soccer stars in recent months, including legendary players like Cristiano Ronaldo and Karim Benzema, to boost the rosters of its Saudi Pro League. It's not the first time we've seen a country spend a lot of money to try to build up a domestic sports league, but it does have some key differences to previous attempts like we've seen in China, or in the US with Major League Soccer. For a start, the kingdom is spending a lot of money, opening up thorny questions about competition worldwide and Financial Fair Play rules in Europe, specifically. More importantly, it's also doing this at a governmental scale, with the kingdom's sovereign wealth fund and state-owned oil giant taking active roles. So what exactly is Saudi Arabia trying to accomplish and will it succeed? And what does this huge influx of money mean for soccer in the rest of the world? On this episode, we speak with Michael Caley and Mike Goodman, co-hosts of the Double Pivot Podcast, to discuss the big business of football and why turning a profit is not always the primary goal.
Saudi Arabia has been spending hundreds of millions of dollars snapping up international soccer stars in recent months, including legendary players like Cristiano Ronaldo and Karim Benzema, to boost the rosters of its Saudi Pro League. It's not the first time we've seen a country spend a lot of money to try to build up a domestic sports league, but it does have some key differences to previous attempts like we've seen in China, or in the US with Major League Soccer. For a start, the kingdom is spending a lot of money, opening up thorny questions about competition worldwide and Financial Fair Play rules in Europe, specifically. More importantly, it's also doing this at a governmental scale, with the kingdom's sovereign wealth fund and state-owned oil giant taking active roles. So what exactly is Saudi Arabia trying to accomplish and will it succeed? And what does this huge influx of money mean for soccer in the rest of the world? On this episode, we speak with Michael Caley and Mike Goodman, co-hosts of the Double Pivot Podcast, to discuss the big business of football and why turning a profit is not always the primary goal.
Gas Price Alert: Saudis Are Tightening the Screws on US Oil Shipments - Bloomberg
Gas Price Alert: Saudis Are Tightening the Screws on US Oil Shipments - Bloomberg
When Saudi Arabia needs to quickly convince the oil market that supply is tightening, putting upward pressure on prices, nothing beats reducing its crude exports into the US.
Riyadh has promised to slash oil production next month by 10%, a unilateral cut that would reduce output to just 9 million barrels a day, the lowest since 2011 — save for brief disruptions from Covid and the Yemeni attack on its facilities. Crucially, as important as the cut itself, is where it’s going to be felt: The signals point to the US and Europe.
Focusing on the US would telegraph the reduction clearly to traders. Fluctuations in American crude imports, and ultimately, oil stockpiles have an outsize impact because Washington publishes the data weekly. In other regions, traders only get official figures on a monthly basis, or sometimes not at all, as in China and India.
It’s a tactic that Saudi Arabia used to great effect six years ago when the kingdom targeted American buyers to rewrite the market’s narrative. "Exports to the US will drop measurably," Saudi Energy Minister Khalid Al-Falih said in May 2017 after an OPEC+ meeting. By July, Saudi oil shipments to America had fallen to a 30-year low. The price of West Texas Intermediate, an oil benchmark, rose 20% from the day Al-Falih spoke to the end of the year.
When Saudi Arabia needs to quickly convince the oil market that supply is tightening, putting upward pressure on prices, nothing beats reducing its crude exports into the US.
Riyadh has promised to slash oil production next month by 10%, a unilateral cut that would reduce output to just 9 million barrels a day, the lowest since 2011 — save for brief disruptions from Covid and the Yemeni attack on its facilities. Crucially, as important as the cut itself, is where it’s going to be felt: The signals point to the US and Europe.
Focusing on the US would telegraph the reduction clearly to traders. Fluctuations in American crude imports, and ultimately, oil stockpiles have an outsize impact because Washington publishes the data weekly. In other regions, traders only get official figures on a monthly basis, or sometimes not at all, as in China and India.
It’s a tactic that Saudi Arabia used to great effect six years ago when the kingdom targeted American buyers to rewrite the market’s narrative. "Exports to the US will drop measurably," Saudi Energy Minister Khalid Al-Falih said in May 2017 after an OPEC+ meeting. By July, Saudi oil shipments to America had fallen to a 30-year low. The price of West Texas Intermediate, an oil benchmark, rose 20% from the day Al-Falih spoke to the end of the year.
Peninsula’s $550 Million #AbuDhabi IPO Faces Regulatory Delay - Bloomberg
Peninsula’s $550 Million Abu Dhabi IPO Faces Regulatory Delay - Bloomberg
Peninsula Real Estate is facing delays to its planned Abu Dhabi initial public offering as it hasn’t secured regulatory approval yet, according to people familiar with the matter.
Peninsula had been targeting a $550 million listing in the first half of the year but the deal is now more likely to take place later in 2023, the people said, asking not to be identified as the information isn’t public. The firm is working through requests from the United Arab Emirates’s securities regulator, they said.
The UAE’s Securities and Commodities Authority has asked Peninsula to change its legal structure and become a real estate investment trust ahead of the IPO, the people said. Peninsula had originally planned to turn into a REIT after the listing, they said.
“Peninsula has constructed a high quality and diversified commercial real estate portfolio that centers on the robust market of the UAE,” a representative for the firm said. “Achieving the company’s goals includes taking advantage of the progressive regulations of the Securities and Commodities Authority to ensure adherence to global best practices.”
The SCA wasn’t immediately available for comment.
The real estate investment company has secured a number of investments ahead of the planned IPO, including from Abu Dhabi’s Yas Holding LLC and New York-based Fortinbras Enterprises. No value was provided for either of the deals.
Peninsula initially considered listing a real estate investment trust in London, but abandoned that plan in favor of an Abu Dhabi offering — attracted by initiatives including a dedicated IPO fund and by the strength of the local market. The firm also has a partnership with the Abu Dhabi Investment Office.
The company is working with Emirates NBD PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley on the share sale, Bloomberg reported last year.
Peninsula Real Estate is facing delays to its planned Abu Dhabi initial public offering as it hasn’t secured regulatory approval yet, according to people familiar with the matter.
Peninsula had been targeting a $550 million listing in the first half of the year but the deal is now more likely to take place later in 2023, the people said, asking not to be identified as the information isn’t public. The firm is working through requests from the United Arab Emirates’s securities regulator, they said.
The UAE’s Securities and Commodities Authority has asked Peninsula to change its legal structure and become a real estate investment trust ahead of the IPO, the people said. Peninsula had originally planned to turn into a REIT after the listing, they said.
“Peninsula has constructed a high quality and diversified commercial real estate portfolio that centers on the robust market of the UAE,” a representative for the firm said. “Achieving the company’s goals includes taking advantage of the progressive regulations of the Securities and Commodities Authority to ensure adherence to global best practices.”
The SCA wasn’t immediately available for comment.
The real estate investment company has secured a number of investments ahead of the planned IPO, including from Abu Dhabi’s Yas Holding LLC and New York-based Fortinbras Enterprises. No value was provided for either of the deals.
Peninsula initially considered listing a real estate investment trust in London, but abandoned that plan in favor of an Abu Dhabi offering — attracted by initiatives including a dedicated IPO fund and by the strength of the local market. The firm also has a partnership with the Abu Dhabi Investment Office.
The company is working with Emirates NBD PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc and Morgan Stanley on the share sale, Bloomberg reported last year.
#AbuDhabi bourse falls ahead of Eid break; Egypt rebounds | Reuters
Abu Dhabi bourse falls ahead of Eid break; Egypt rebounds | Reuters
Abu Dhabi's stock market ended lower on Monday ahead of Eid-Al-Adha, while the Egyptian bourse rebounded a day after it fell more than 2%.
Abu Dhabi's main share index (.FTFADGI) eased 0.3% and the Egyptian index (.EGX30) was up 2.2%.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Qatar and at least three days in other Gulf countries.
Abu Dhabi's stock market ended lower on Monday ahead of Eid-Al-Adha, while the Egyptian bourse rebounded a day after it fell more than 2%.
Abu Dhabi's main share index (.FTFADGI) eased 0.3% and the Egyptian index (.EGX30) was up 2.2%.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Qatar and at least three days in other Gulf countries.
Construction boom drives #AbuDhabi’s non-oil GDP to 9-year high in Q1 2023
Construction boom drives Abu Dhabi’s non-oil GDP to 9-year high in Q1 2023
Abu Dhabi’s gross domestic product (GDP) grew by 3.9% year-on-year (YoY) in the first quarter of 2023, driven by the strong performance of non-oil economic activities, estimates released by the Statistics Centre – Abu Dhabi (SCAD) showed on Monday.
Non-oil GDP grew by 6.1% YoY during the first three months, driven by remarkable performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services sectors.
According to SCAD estimates, the non-oil GDP (at constant prices) exceeded the highest quarterly value of the past nine years, reaching AED 146 billion in the first quarter of 2023, compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion.
The outstanding growth took the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8% despite mounting challenges in the global landscape.
Abu Dhabi’s gross domestic product (GDP) grew by 3.9% year-on-year (YoY) in the first quarter of 2023, driven by the strong performance of non-oil economic activities, estimates released by the Statistics Centre – Abu Dhabi (SCAD) showed on Monday.
Non-oil GDP grew by 6.1% YoY during the first three months, driven by remarkable performances in construction, wholesale and retail trade, transportation and storage, and financial and insurance services sectors.
According to SCAD estimates, the non-oil GDP (at constant prices) exceeded the highest quarterly value of the past nine years, reaching AED 146 billion in the first quarter of 2023, compared to AED 137.7 billion in the first quarter of 2022, as the total GDP reached AED 276.6 billion.
The outstanding growth took the contribution of non-oil activities to the total GDP to its highest level in eight years at 52.8% despite mounting challenges in the global landscape.
Switzerland’s Syz Taps Former Goldman Banker for Mideast Push - Bloomberg
Switzerland’s Syz Taps Former Goldman Banker for Mideast Push - Bloomberg
Switzerland’s Bank Syz hired former Goldman Sachs Group Inc. executive Gabriel Aractingi to spearhead the wealth manager’s push into the Middle East.
A veteran of private banking in the Middle East, Aractingi will join Syz as managing partner and head of its operations in the region. He will be based in Geneva and will focus on expanding the business in Saudi Arabia, the United Arab Emirates and Turkey, according to a statement.
The Middle East is emerging as one of the world’s key battle grounds for global wealth managers. Leading players from Goldman to Deutsche Bank AG have all earmarked the region, which is home to a growing number of ultra-rich families, royals and entrepreneurs, for future growth.
Co-founded by Eric Syz in 1996, Bank Syz now has about 23 billion Swiss francs ($25.6 billion) of assets under management. In recent years, the bank has made several hires including former UBS Group AG and Pictet & Co. executives and it recently opened an office in Uruguay.
Aractingi left Goldman Sachs earlier this year after two years with the Wall Street firm. He was previously head of UBS Group AG’s global family office for the Middle East and North Africa and was Morgan Stanley’s chief executive officer in Saudi Arabia.
Switzerland’s Bank Syz hired former Goldman Sachs Group Inc. executive Gabriel Aractingi to spearhead the wealth manager’s push into the Middle East.
A veteran of private banking in the Middle East, Aractingi will join Syz as managing partner and head of its operations in the region. He will be based in Geneva and will focus on expanding the business in Saudi Arabia, the United Arab Emirates and Turkey, according to a statement.
The Middle East is emerging as one of the world’s key battle grounds for global wealth managers. Leading players from Goldman to Deutsche Bank AG have all earmarked the region, which is home to a growing number of ultra-rich families, royals and entrepreneurs, for future growth.
Co-founded by Eric Syz in 1996, Bank Syz now has about 23 billion Swiss francs ($25.6 billion) of assets under management. In recent years, the bank has made several hires including former UBS Group AG and Pictet & Co. executives and it recently opened an office in Uruguay.
Aractingi left Goldman Sachs earlier this year after two years with the Wall Street firm. He was previously head of UBS Group AG’s global family office for the Middle East and North Africa and was Morgan Stanley’s chief executive officer in Saudi Arabia.
Aston Martin Joins With Lucid in #Saudi-Backed EV Partnership - Bloomberg
Aston Martin Joins With Lucid in Saudi-Backed EV Partnership - Bloomberg
Aston Martin Lagonda Global Holdings Plc is tying up with Lucid Group Inc. on electric vehicle technology, uniting the storied British carmaker and relative automotive newcomer both backed by Saudi Arabia’s sovereign wealth fund.
Aston Martin will issue new shares to Lucid and make cash payments totaling $232 million in exchange for battery-electric powertrain components, the companies said Monday. The UK manufacturer also extended a years-long cooperation with Mercedes-Benz Group AG, though it will no longer issue more stock to the German carmaker that already owns a roughly 9% stake.
The announcements sent Aston Martin shares soaring as much as 15%, their biggest intraday jump in over a month, while Lucid advanced as much as 9.1% in premarket US trading.
“The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin,” Chairman Lawrence Stroll said in a statement.
Stroll, 63, is three years into an effort to turn around the 110-year-old British manufacturer with a long history of financial trouble. Aston Martin has needed several capital raises since he rescued the company in early 2020, the most recent of which made China’s Zhejiang Geely Holding Group Co. and Saudi Arabia’s Public Investment Fund major shareholders.
The Public Investment Fund, or PIF, owns about 49% of Lucid and 18% of Aston Martin, according to data compiled by Bloomberg.
Aston Martin Lagonda Global Holdings Plc is tying up with Lucid Group Inc. on electric vehicle technology, uniting the storied British carmaker and relative automotive newcomer both backed by Saudi Arabia’s sovereign wealth fund.
Aston Martin will issue new shares to Lucid and make cash payments totaling $232 million in exchange for battery-electric powertrain components, the companies said Monday. The UK manufacturer also extended a years-long cooperation with Mercedes-Benz Group AG, though it will no longer issue more stock to the German carmaker that already owns a roughly 9% stake.
The announcements sent Aston Martin shares soaring as much as 15%, their biggest intraday jump in over a month, while Lucid advanced as much as 9.1% in premarket US trading.
“The proposed supply agreement with Lucid is a game changer for the future EV-led growth of Aston Martin,” Chairman Lawrence Stroll said in a statement.
Stroll, 63, is three years into an effort to turn around the 110-year-old British manufacturer with a long history of financial trouble. Aston Martin has needed several capital raises since he rescued the company in early 2020, the most recent of which made China’s Zhejiang Geely Holding Group Co. and Saudi Arabia’s Public Investment Fund major shareholders.
The Public Investment Fund, or PIF, owns about 49% of Lucid and 18% of Aston Martin, according to data compiled by Bloomberg.
Global oil market fundamentals sound for rest of 2023 - Aramco CEO says | Reuters
Global oil market fundamentals sound for rest of 2023 - Aramco CEO says | Reuters
Global oil market fundamentals are expected to remain sound for the rest of the year, underpinned by healthy demand in developing countries, especially in China and India, Saudi Aramco CEO Amin Nasser said on Monday.
"Overall, we believe that oil market fundamentals remain generally sound for the rest of the year," Nasser told the Energy Asia conference, hosted by Malaysia's state oil firm Petronas.
"Despite the recession risks in several OECD countries, the economies of developing countries – especially China and India – are driving healthy oil demand growth of more than 2 million barrels per day this year," he said.
Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth, he added.
Brent crude futures are down about 14% since the start of the year as rising interest rates hit investor appetite while China's promising economic recovery has faltered after several months of softer-than-expected consumption, production and property market data.
Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting production cuts by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries.
Global oil market fundamentals are expected to remain sound for the rest of the year, underpinned by healthy demand in developing countries, especially in China and India, Saudi Aramco CEO Amin Nasser said on Monday.
"Overall, we believe that oil market fundamentals remain generally sound for the rest of the year," Nasser told the Energy Asia conference, hosted by Malaysia's state oil firm Petronas.
"Despite the recession risks in several OECD countries, the economies of developing countries – especially China and India – are driving healthy oil demand growth of more than 2 million barrels per day this year," he said.
Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth, he added.
Brent crude futures are down about 14% since the start of the year as rising interest rates hit investor appetite while China's promising economic recovery has faltered after several months of softer-than-expected consumption, production and property market data.
Crude oil supplies from Russia and Iran have also held up despite Western sanctions, offsetting production cuts by Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries.