Emaar Shares Push Dubai Stocks to 2015 High as Economic Outlook Lifts Mood - Bloomberg
Dubai’s main stock index soared to the highest level since August 2015, extending year-to-date gains and supported by a jump in property-related shares.
The Dubai Financial Market General Index advanced 2.3% by the close on Monday after trading resumed following a four-day break, outperforming a rally in emerging-market stocks. Shares of Emaar Properties PJSC and Emaar Development PJSC were the biggest contributors to the gain along with Emirates NBD Bank PJSC, the city’s biggest bank.
The stock market in Dubai has benefited from both the recent spate of new listings “and a significant re-rating of the real estate names,” said Dahlia Sabaayon, senior investment analyst at Al Dhabi Capital. “Real estate data continues to deliver strong momentum, helping names like Emaar Development, which has also benefited from the reinstatement of its dividend.”
Home to the Burj Khalifa, the world’s tallest building that was constructed by Emaar, Dubai relies heavily on its real estate sector, which makes up more than a third of its consumer price index.
Having emerged from the global pandemic as an investment haven and a magnet for wealth and tourism, Dubai’s economy is set to grow 3% this year after an estimated 5% in 2022 and 6.2% the year prior, according to S&P Global Ratings.
Dubai’s real estate market has bucked the trend of falling prices amid surging interest rates seen elsewhere. S&P Global Ratings last month upgraded Emaar Properties a notch higher on “strong demand and improved pricing” in the sector.
UAE Plans to Invest $54 Billion in Renewables in Net Zero Push - Bloomberg
The United Arab Emirates plans to invest as much as $54 billion on renewables over the next seven years as part of efforts to reach net zero emissions by 2050.
The nation is targeting a threefold increase in the share of energy produced from renewable sources over the period and will focus on hydrogen as a source for clean power, UAE Prime Minister and Dubai Ruler Sheikh Mohammed bin Rashid said in a tweet.
The plans come as the UAE is set to host the COP28 climate summit later this year. Like many oil-producing nations, the push toward a cleaner energy system is currently outweighed by the importance of fossil fuels in the economy. Still, the UAE was the first Middle Eastern state to announce a goal to reach net zero by the middle of the century.
As part of the moves unveiled on Monday, Sheikh Mohammed appointed Mohamed Hassan Alsuwaidi as investment minister. Alsuwaidi is currently the chief executive officer at Abu Dhabi wealth fund ADQ and deputy chairman of renewables company Masdar.
The government also approved a decision to establish a council for financial stability to monitor risk, help deal with potential financial crises and draw precautionary measures to protect the country’s economic and financial system.
UAE to set up investment ministry, PM says | Reuters
The United Arab Emirates (UAE) will set up a new federal ministry of investment to develop the Gulf state's investment strategy both globally and domestically as it contends with growing economic competition from neighbours.
The Gulf states, largely dependent on hydrocarbons for revenue, all have plans underway to diversify their economies and sources of income.
The UAE is considered among the most advanced, having developed sectors such as financial services and tourism ahead of its neighbours, as well as implementing key social and business reforms to attract foreign investment.
Sheikh Mohammed bin Rashid al-Maktoum, UAE prime minister and ruler of Dubai - the Gulf state's tourism and commercial hub - announced the plans on Twitter after a cabinet meeting, adding that Mohammed Hassan Al Suwaidi will become the investment minister.
No further details were given.
Saudi Arabia and Russia deepen oil cuts, sending prices higher | Reuters
Saudi Arabia and Russia, the world's biggest oil exporters, deepened oil cuts on Monday, sending prices higher despite concerns over a global economic slowdown and possible further interest rate hikes from the U.S. Federal Reserve.
Saudi Arabia said it would extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, adding that the cut could be extended beyond that month.
Shortly after the Saudi announcement, Russian Deputy Prime Minister Alexander Novak said Moscow would cut its oil exports by 500,000 barrels per day in August.
The cuts amount to 1.5% of global supply and bring the total pledged by OPEC+ to 5.16 million bpd.
OPEC+ already has in place cuts of 3.66 million bpd, amounting to 3.6% of global demand, including 2 million bpd agreed last year and voluntary cuts of 1.66 million bpd agreed in April and extended to December 2024.
Dubai leads most Gulf markets higher; Qatar falls | Reuters
Most stock markets in the Gulf ended higher on Monday amid rising oil prices, with the Dubai index outperforming the region, while the Qatari index bucked the trend to close lower.
Prices of oil, a key catalyst for the Gulf's financial markets, rose after top exporters Saudi Arabia and Russia announced supply cuts for August, overshadowing concerns over a global economic slowdown and the potential for further U.S. interest rate hikes.
Saudi Arabia, the de-facto leader of OPEC, had pledged earlier this month to make a deep cut to its output in July, on top of the broader OPEC+ deal to limit supply into 2024 as the group sought to boost flagging oil prices.
Dubai's main share index (.DFMGI) — which traded after a four-session break — advanced 2.3%, buoyed by a 3.6% jump in blue-chip developer Emaar Properties (EMAR.DU) and a 3% rise in top lender Emirates NBD (ENBD.DU).
The Dubai stock market restarted trading with a strong performance as traders return with a positive sentiment, said George Pavel, general manager at Capex.com Middle East.
"The main index extended its uptrend after a short period of stagnation supported by the rise of multiple sectors thanks to the solid local economy."
Saudi Arabia's benchmark index (.TASI) rose 0.5%, driven by a 2.8% gain in Banque Saudi Fransi (1050.SE) and a 2.4% increase in Etihad Etisalat Co (7020.SE) ahead of trading ex-dividend.
In Abu Dhabi, the index (.FTFADGI) added 0.1%.
The Qatari index (.QSI) fell 0.2%, hit by a 1.5% fall in Qatar Islamic Bank (QISB.QA).
The Qatari bourse was under pressure after a small rebound, said Pavel. Natural gas prices, which are still near multi-month lows, could continue to weigh on the market.
Mubadala-Backed Abu Dhabi Commercial Bank Bulks Up With Ex-Citi, Natixis Hires - Bloomberg
Abu Dhabi Commercial Bank PJSC has hired former Citigroup Inc. and Natixis SA bankers to key positions in recent months, joining peers who’ve added staff amid an uptick in dealmaking activity across the oil-rich Middle East.
Abu Dhabi’s second-largest lender, backed by sovereign wealth fund Mubadala Investment Co., appointed Sami Tabbarah as head of investment banking in May. Tabbarah previously spent more than three decades at Citi, according to his LinkedIn profile.
ADCB has also hired Ehsun Zaidi, who spent over a decade at Natixis and five years at JP Morgan Chase & Co. in the United Arab Emirates, according to people familiar with the matter. And Levente Sidlovits is joining from Dubai rival Emirates NBD Bank PJSC as head of portfolio strategy management, the people said, asking not to be named because the information isn’t public.
A representative for ADCB declined to comment.
While global investment banks have been shedding jobs amid a chill in dealmaking activity, the Mideast has been more resilient, prompting regional players to add staff. Shuaa Capital PSC hired former Credit Suisse Managing Director Wafik Ben Mansour in May to lead its investment bank franchise.
ADCB is one of the top bond and loan arrangers in the Gulf, vying with regional and international banks for a bigger share of the market. In Turkey, ADCB and ENBD have been increasing loans to local counterparts, filling a gap left by Western lenders who’ve retreated from the country over regulatory concerns.
ADCB is involved in a rare domestic blank-check deal, Bloomberg News has reported. The lender has also advised on a number of recent IPOs including Adnoc Gas, Al Ansari and Adnoc L&S.
Investcorp to invest $100 million in communications firm SEC Newgate | Reuters
Middle East alternative asset manager Investcorp said on Monday it had agreed to invest around $100 million for a majority stake in communications and advocacy group SEC Newgate.
The deal values Milan-based SEC Newgate, which has around 1,200 employees and operates in 22 countries, over $250 million, according to the statement.
"Investcorp's investment will help SEC Newgate accelerate its development strategy, with a focus on expansion in EMEA and the APAC region through both organic growth and M&A", the Bahrain-based investment firm said.
Saudi Arabia says will extend voluntary cut of 1 million bpd to August | Reuters
Saudi Arabia will extend its voluntary oil output cut of one million barrels per day (bpd) for another month to include August, the state news agency SPA said on Monday.
"The kingdom's production for the month of August 2023 will be approximately 9 million barrels per day," the SPA quoted an official source from the Ministry of Energy as saying.
The source added that the voluntary cut could be extended beyond August.
The cut is in addition to the voluntary cut previously announced by Saudi Arabia in April alongside other OPEC+ producers, which extends until December 2024.
Saudi Arabia, the de-facto leader of OPEC, had pledged earlier this month to make a deep cut to its output in July, on top of a broader OPEC+ deal to limit supply into 2024 as the group sought to boost flagging oil prices.
OPEC+, which groups the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, pumps around 40% of the world's crude.
Dubai leads Gulf markets higher; Abu Dhabi falls as oil slips | Reuters
Most major stock markets in the Gulf rose in early trade on Monday, with the Dubai index outperforming the region, although the Abu Dhabi index bucked the trend.
Dubai's main share index (.DFMGI) - which traded after a four-session break - gained 1.3%, driven by a 3% jump in blue-chip developer Emaar Properties (EMAR.DU) and a 1.7% increase in Emirates NBD Bank (ENBD.DU).
Saudi Arabia's benchmark index (.TASI) added 0.2%, helped by a 0.8% rise in Dr Sulaiman Al-Habib Medical Services (4013.SE).
Among other gainers, Etihad Etisalat Company (7020.SE) advanced 2.4% a day before trading ex-dividend.
In Qatar, the index (.QSI) rose 0.2%, with petrochemical maker Industries Qatar (IQCD.QA) putting on 0.8% and Qatar Gas Transport Nakilat Co (QGTS.QA) climbing 1%.
In Abu Dhabi, the economy of which is mostly reliant on oil, the index (.FTFADGI) traded 0.1% lower as the commodity slipped.
Oil - a key catalyst for the Gulf's financial market - fell as concerns about a global economic slowdown and possible further interest rate hikes from the U.S. Federal Reserve weighed on prices, offsetting forecasts of tighter supplies and OPEC+ output cuts.
