#UAE and #Turkey sign multibillion-dollar agreements | Financial Times

UAE and Turkey sign multibillion-dollar agreements | Financial Times

The United Arab Emirates said it had signed agreements estimated to be worth $50bn with Turkey as President Recep Tayyip Erdoğan tours the oil-rich Gulf in a bid to attract investment from the region and bolster his country’s ailing economy. 

The UAE’s state news agency said the Gulf state and Turkey forged a series of provisional agreements that included the establishment of a joint economic and trade commission, commitments to develop energy and natural resources projects, and an extradition pact. 

ADQ, one of Abu Dhabi’s state investment funds, also said it would provide up to $8.5bn through bonds to support reconstruction efforts after February’s earthquake that devastated a vast area of southern Turkey. The fund also said it would provide $3bn in export credit financing to Turkish companies to boost bilateral trade. 

It was not immediately clear how the estimated $50bn value of all the agreements was calculated. But the deals mark a deepening of ties between regional powers that have spent much of the past decade at loggerheads, often backing rival sides during the turmoil that erupted across the Middle East after the 2011 popular Arab uprisings. 

Erdoğan, who held talks with UAE President Sheikh Mohammed bin Zayed al-Nahyan, said the agreements would “elevate our relations to the level of strategic partnership”.

How #Dubai became ‘the new Geneva’ for Russian oil trade | Financial Times

How Dubai became ‘the new Geneva’ for Russian oil trade | Financial Times

For decades, the lakeside city of Geneva was home to many of the traders who sold Russia’s oil to consumers around the world. But since Switzerland joined the embargo imposed on Moscow following its invasion of Ukraine much of that trade has shifted to Dubai and other cities in the United Arab Emirates. 

Companies registered in the small Gulf state bought at least 39mn tonnes of Russian oil worth more than $17bn between January and April — around a third of the country’s exports declared to customs during that period — according to Russian customs documentation analysed by the Financial Times. 

Some of that oil ended up in the UAE, ship-tracking data shows, landing at storage terminals in places such as Fujairah. The rest — about 90 per cent — never touched Emirati soil, instead flowing from Russian ports directly to new buyers in Asia, Africa and South America as part of one of the biggest redirections of global energy flows in history. 

The energy trading industry in the UAE was already growing before Vladimir Putin’s invasion of Ukraine. But the conflict, and the western sanctions that followed it, have supercharged that growth. 

Out of the top 20 traders of Russian crude in the first four months of the year, eight were registered in the UAE, the customs data shows. In refined petroleum products, such as diesel and fuel oil, UAE dominance was even higher, with 10 of the 20 largest traders registered in the country.

#AbuDhabi's Masdar eyeing acquisition targets in US, Europe expansion | Reuters

Abu Dhabi's Masdar eyeing acquisition targets in US, Europe expansion | Reuters

Abu Dhabi state-owned renewable energy firm Masdar is in discussions with potential acquisition targets in the U.S. and is also looking to expand in Europe, Gulf Arab countries and elsewhere, its chief financial officer said on Wednesday.

"We plan to grow significantly in the North America market, in the U.S.," Niall Hannigan said, adding it "is very much a market where M&A is going to be absolutely critical."

Masdar is in active discussions and U.S. President Joe Biden's $430 billion Inflation Reduction Act "reinforced" its view of the U.S. market, he said.

Masdar is also looking to grow in Europe where its primary markets are southern Europe, the Balkans and eastern Europe, Hannigan said, adding it will continue to grow in the UK, Poland, Serbia, Montenegro and Greece, while the Gulf Arab countries including Saudi Arabia will also be "a huge area of growth." Central Asia, Asia-Pacific and Africa are also areas for future growth, he said.

Most Gulf markets in red on weak economic forecast; #Qatar gains | Reuters

Most Gulf markets in red on weak economic forecast; Qatar gains | Reuters

Most stock markets in the Gulf ended lower on Wednesday, following a droopy economic forecast about the region, with the Dubai index snapping eight sessions of gains.

Economic growth in five countries in the six-member Gulf Cooperation Council (GCC) is forecast to be even weaker than expected three months earlier on lower prices of oil, the region's main export, according to a Reuters poll of economists.

Only Bahrain's growth rate was upgraded to 3.0% from 2.7% in the previous poll. Average growth across the six GCC economies is forecast to be 1.5% this year, slightly more than half the 2.8% forecast in April.

Saudi Arabia's benchmark index (.TASI) eased 0.1%, weighed down by a 1.1% fall in Riyad Bank (1010.SE) and a 1.9% decrease in Banque Saudi Fransi (1050.SE).

Dubai's main share index (.DFMGI), which was trading at 8-year high, declined 0.9%.

Blue-chip developer Emaar Properties (EMAR.DU) retreated 1.6%, while Emirates Central Cooling Systems (EMPOWER.DU) finished 2.1% lower.

The Dubai bourse saw price corrections with traders moving to secure their gains after the main index recorded strong performances and new highs for the year, said George Pavel, general manager at Capex.com Middle East.

"In this regard, traders could monitor U.S. company earnings while regional banks could be the centre of attention."

In Abu Dhabi, the index (.FTFDAGI) lost 0.3%.

Global oil benchmark Brent hovered above $80, buoyed by China's pledge to reinvigorate economic growth and expectations that the U.S. Federal Reserve would stop raising interest rates soon.

The Qatari index (.QSI) bucked the trend to close 0.7% higher, as most of its constituents were in the positive territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was up 1.8%.


Outside the Gulf, Egypt's blue-chip index (.EGX30) declined 0.2%, with tobacco monopoly Eastern Co (EAST.CA) losing 1.1%.

CDPQ Weighs Boosting Stakes in Key #Dubai Assets including DP World's Port - Bloomberg

CDPQ Weighs Boosting Stakes in Key Dubai Assets including DP World's Port - Bloomberg

Caisse de Depot et Placement du Quebec is considering investing billions of dollars to increase its holdings in some of Dubai’s most prized shipping and logistic assets, people with knowledge of the matter said.

The Canadian pension fund is in talks to boost its stakes in the Middle East’s biggest port, Jebel Ali Port, the Jebel Ali Free Zone and National Industries Park industrial zones, the people said. All are controlled by state-owned DP World.

CDPQ, which manages some public pension funds and insurance plans independently from the government, is in talks with banks to raise financing for the deal, according to the people. Discussions are ongoing and no final decisions about how much to invest have been made, they said, asking not to be identified discussing confidential information.

Representatives for CDPQ and DP World declined to comment.

A deal would follow a multi-billion investment by CDPQ in Jebel Ali Port, Jebel Ali Free Zone and National Industries Park in June 2022. That transaction valued the assets at about $23 billion including debt and helped DP World improve its balance sheet by cutting leverage.

Dubai is the Middle East’s business and finance center. In recent years, it’s been deepening trade routes and working to attract global firms as it faces growing regional competition. Almost 80% of the city’s trade volume is handled through Jebel Ali Port, the 12th largest in the world, according to the Dubai Trade website.

DP World has been exploring the sale of equity stakes in certain assets as the emirate works to reduce the debt pile that helped finance the city’s growth. Dubai took DP World private in early 2020 to help the company better manage its borrowings.

Meanwhile, top global investors are pouring money into infrastructure deals, attracted by the stable, recurring returns such assets can generate.

#UAE's #AbuDhabi sees strong industrial sector growth amid diversification push | Reuters

UAE's Abu Dhabi sees strong industrial sector growth amid diversification push | Reuters

Abu Dhabi, the capital of major oil exporter United Arab Emirates, plans to double the contribution from its industrial sector to GDP, a senior government official said on Wednesday, amid growing regional competition to diversify from oil.

Last year, the industrial sector's contribution to Abu Dhabi's gross domestic product grew 9.7% year-on-year to 90.8 billion dirhams ($24.72 billion), according to government statistics shared with Reuters on Wednesday, or 16.4% of its non-oil GDP and just over 8% of total GDP.

Abu Dhabi, which constitutes about half the UAE's industrial sector, wants to increase this to 171 billion dirhams by 2031.

"Oil is important to us in Abu Dhabi," Rashed Al Blooshi, undersecretary at Abu Dhabi's Department of Economic Development, told Reuters.

"But investing in non-oil sectors will have a bigger impact on the GDP ... and we will sustain the growth."

Since 2021, the UAE has also established a strategy of negotiating bilateral trade agreements with a key aim to boost non-oil exports to global markets.

#UAE's Masdar Plans More Green Bonds After Debut $750 Million Sale - Bloomberg

UAE's Masdar Plans More Green Bonds After Debut $750 Million Sale - Bloomberg

The United Arab Emirates’ clean-energy producer Masdar expects to issue more green bonds next year after completing a $750 million debut sale.

The company, also known as Abu Dhabi Future Energy Co., is keen to develop and acquire projects, including in the US and Europe, Chief Financial Officer Niall Hannigan said in an interview on Wednesday. Masdar is seeking to become an investor in renewable projects totaling 100 gigawatts of capacity by the end of the decade.

The proceeds from the first-ever green bond issuance this week will be used to finance investments in clean energy projects in Uzbekistan and Azerbaijan, Hannigan said. Masdar plans to raise a total of $3 billion via bonds to fund acquisitions in the UAE and overseas, according to a statement earlier.

The UAE is pushing for more green projects — with plans for $54 billion of renewables over the next seven years — as part of a goal to reach net-zero emissions by the middle of the century. The country, which is still dominated by oil, is also hosting the key COP28 climate conference later this year.

Abu Dhabi National Energy Co., also known as Taqa, became a shareholder in Masdar in late 2022. It was agreed at the time that Masdar would take a 60% stake in all future renewable energy projects developed in Abu Dhabi.

How MBS’s #Saudi Wealth Fund Could Take US Yields Higher: Chart - Bloomberg

How MBS’s Saudi Wealth Fund Could Take US Yields Higher: Chart - Bloomberg

Saudi Arabia is making riskier bets with its oil wealth. The aim is to generate a higher return to offset possible declines in crude prices. The consequences? Domestically, higher risks mean potential losses for the kingdom, according to Bloomberg Economics. Globally, the re-allocation of Saudi wealth could result in higher US interest rates.

Private Equity Titans Tap Sovereign Wealth to Get Deals Done - Bloomberg

Private Equity Titans Tap Sovereign Wealth to Get Deals Done - Bloomberg

Deep-pocketed sovereign funds are deploying billions of dollars to get private equity takeovers across the line, helping grease the wheels of dealmaking in a year when other funding sources are drying up.

KKR & Co., EQT AB and Brookfield all turned to wealthy Persian Gulf countries to stump up a lot of the money for big-ticket deals in recent weeks. Sovereign wealth funds spent a record $17.2 billion on such co-investments in the first half, up 24% from the same period last year, according to data provider Global SWF.

While teaming up on deals isn’t unusual, the amount of equity these state-backed investors are providing has jumped as buyout firms find debt more expensive. The Abu Dhabi Investment Authority is contributing at least £1 billion ($1.3 billion) for EQT’s £4.5 billion takeover of veterinary drugmaker Dechra Pharmaceuticals Plc announced in June.

Middle East investors including sovereign funds Mubadala Investment Co. and ADQ are fronting about £1.2 billion for Brookfield’s £2.2 billion takeover of payments processor Network International Holdings Plc, according to an analysis of regulatory filings last month. KKR is also trying to rope in ADIA for its $25 billion bid for Telecom Italia SpA’s landline network, Bloomberg News reported last week.

“SWFs can often move very quickly, can be flexible and have large amounts of capital — they can be an extremely useful capital provider,” said Elizabeth Todd, a partner at law firm Ropes & Gray. “Where they find an asset they like, they do not feel limited to small minority investments with passive governance rights.”

#UAE: Hijri New Year holiday announced for financial markets

UAE: Hijri New Year holiday announced for financial markets

The Securities and Commodities Authority (SCA) has announced that the Abu Dhabi Securities Exchange and the Dubai Financial Market will close for the Hijri New Year holiday on Friday, 21st July. Trading will resume on Monday, 24th July.

The announcement follows Circular No. 07 of 2023 issued by the Federal Authority for Government Human Resources concerning the Hijri New Year 1445 holiday.

The Dubai Gold and Commodities Exchange, however, will remain open and will continue to operate under normal trading hours.

Most Gulf markets gain in early trade; #AbuDhabi eases | Reuters

Most Gulf markets gain in early trade; Abu Dhabi eases | Reuters

Most major stock markets in the Gulf rose in early trade on Wednesday, as U.S. data stoked hopes the world's biggest economy can avoid recession, although volatile energy prices limited gains.

Saudi Arabia's benchmark index (.TASI) edged 0.1%, helped by a 1.7% rise in Dr Sulaiman Al-Habib Medical Services (4013.SE), while, Dar Al Arkan Real Estate Development Co (4300.SE) advanced 1.5%.

The developer sold $600 million in Islamic bonds due February 2029 on Tuesday, a bank document showed.

Among other gainers, Saudi Advanced Industries (2120.SE) jumped about 4% after reporting a sharp rise in quarterly net profit.

In Qatar, the index (.QSI) climbed 0.7%, as most of the stocks on the index were in positive territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which rose 1.8%.

Dubai's main share index (.DFMGI) inched 0.1% higher, trading at its highest since late-2015.

However, in Abu Dhabi, the index (.FTFADGI) eased 0.2%.

Global oil prices retreated after opening higher at the start of Asian trade, as markets weighed U.S. demand concerns against China's pledge to support economic growth, tighter Russian supply and declining U.S. inventories.

On the other hand, ADNOC Gas (ADNOCGAS.AD) rose more than 3% in early trade after the energy firm signed 14-year agreement with Indian Oil Corp (IOC.NS) for export of up to 1.2 million metric tons per annum of liquefied natural gas (LNG).

Separately, Saudi refiner Saudi Aramco Total Refining and Petrochemical Co plans to shut its Al Jubail refinery for maintenance starting end-September or first-half October, Reuters reported on Wednesday, citing four sources with knowledge of the matter.