Thursday 20 July 2023
Watch #UAE Econ. Minister: Aim To Grow GDP To AED 3T By 2030 - Bloomberg video
Watch UAE Econ. Minister: Aim To Grow GDP To AED 3T By 2030 - Bloomberg
The UAE plans to increase the size of its economy by the end of the decade. Separately, the Gulf nation has pledged to ramp up financial help for Turkey with deals worth $51 billion. The agreements include buying more than $8 billion of bonds, as well as investments in fields from nuclear energy to clean hydrogen, petrochemicals, space exploration and defense. It comes after Turkey's president visited the Emirates, as part of a three-day Gulf tour. In this exclusive interview, the UAE Economy Minister Abdulla Bin Touq Al Marri speaks with Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
#UAE's top bank FAB Q2 profit up 61%, beating estimates | Reuters
UAE's top bank FAB Q2 profit up 61%, beating estimates | Reuters
First Abu Dhabi Bank (FAB.AD), the UAE's biggest lender by assets, on Thursday said its second-quarter profit rose 61% from a year prior, as interest and non-interest income rose.
The bank posted a net profit of 4.2 billion dirhams ($1.14 billion) in the quarter, it said in a statement.
That beat analysts' average estimate of about 3.69 billion dirhams profit in the second quarter, according to Refinitiv data.
Operating income in the second quarter was up 37% from a year earlier to 6.8 billion dirhams, the statement said.
Net impairment charges were at 676 million dirhams, down 15% from the first quarter.
"Despite the persistence of macroeconomic headwinds on a global scale, FAB is very well positioned to deliver solid results and unlock its full potential as a regional banking powerhouse," Lars Kramer, who was appointed FAB's chief financial officer in January, said in the statement.
First Abu Dhabi Bank (FAB.AD), the UAE's biggest lender by assets, on Thursday said its second-quarter profit rose 61% from a year prior, as interest and non-interest income rose.
The bank posted a net profit of 4.2 billion dirhams ($1.14 billion) in the quarter, it said in a statement.
That beat analysts' average estimate of about 3.69 billion dirhams profit in the second quarter, according to Refinitiv data.
Operating income in the second quarter was up 37% from a year earlier to 6.8 billion dirhams, the statement said.
Net impairment charges were at 676 million dirhams, down 15% from the first quarter.
"Despite the persistence of macroeconomic headwinds on a global scale, FAB is very well positioned to deliver solid results and unlock its full potential as a regional banking powerhouse," Lars Kramer, who was appointed FAB's chief financial officer in January, said in the statement.
Most Gulf markets in red; #Qatar extends gains | Reuters
Most Gulf markets in red; Qatar extends gains | Reuters
Most stock markets in the Gulf were subdued on Thursday, extending losses from the previous session after a weak economic forecast for the region.
Economic growth in five countries in the six-member Gulf Cooperation Council (GCC) is forecast to be 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.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%, hit by a 1.5% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD) ahead of an earnings announcement.
Dubai's main share index (.DFMGI) finished flat towards negative territory a day after snapping eight sessions of gains.
Saudi Arabia's benchmark index (.TASI) was flat.
However, the Qatari benchmark (.QSI) bucked the trend to close 0.7% higher, with Qatar Islamic Bank (QISB.QA) gaing 0.7%.
The Qatari stock market extended its gains supported by a strong banking sector, said Ahmed Negm, Head of Market Research MENA at XS.com.
"The main index could also maintain its gains if natural gas prices continue to improve."
** Markets in Kuwait, Oman and Egypt were closed for a public holiday
Most stock markets in the Gulf were subdued on Thursday, extending losses from the previous session after a weak economic forecast for the region.
Economic growth in five countries in the six-member Gulf Cooperation Council (GCC) is forecast to be 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.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%, hit by a 1.5% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD) ahead of an earnings announcement.
Dubai's main share index (.DFMGI) finished flat towards negative territory a day after snapping eight sessions of gains.
Saudi Arabia's benchmark index (.TASI) was flat.
However, the Qatari benchmark (.QSI) bucked the trend to close 0.7% higher, with Qatar Islamic Bank (QISB.QA) gaing 0.7%.
The Qatari stock market extended its gains supported by a strong banking sector, said Ahmed Negm, Head of Market Research MENA at XS.com.
"The main index could also maintain its gains if natural gas prices continue to improve."
** Markets in Kuwait, Oman and Egypt were closed for a public holiday
Turkey Dollar Bonds Surge on #UAE Plan to Wire Billions Via Sukuk - Bloomberg
Turkey Dollar Bonds Surge on UAE Plan to Wire Billions Via Sukuk - Bloomberg
Turkey’s dollar bonds rallied the most in emerging markets on Thursday after the United Arab Emirates pledged to buy as many as $8.5 billion sukuk from Ankara, in a move that may ease the government’s funding pressures.
The country’s longest-maturity notes maturing in 2047 rose more than 7 cents on the dollar to 71.1, bringing their yields below 8.7%, the lowest level since May. The rate on the security due 2033 dropped to 8.34%. Turkey’s sovereign-risk premium narrowed 19 basis points to 405 basis points, according to indicative quotes from JPMorgan Chase & Co.
Turkey and the UAE signed deals potentially worth $51 billion during President Recep Tayyip Erdogan’s visit to Abu Dhabi. The agreements envisaged Abu Dhabi Developmental Holding Co. PJSC, better known as ADQ, buying Islamic bonds from Turkey to fund reconstruction efforts following devastating earthquakes in February.
Credit default swaps also narrowed after the announcement of the deals as the inflows were seen boosting the country’s foreign reserves. The cost to protect against default risk in the next five years narrowed 14 basis points to 442 basis points.
But the lira failed to sustain the initial positive reaction to the news, as investors focused on the central bank’s rate decision Thursday. The currency fell 0.5% against the dollar for the worst performance among emerging-market peers.
The monetary authority is expected to raise its policy rate to 18.5% from 15%, according to the median estimate in Bloomberg poll.
Turkey’s dollar bonds rallied the most in emerging markets on Thursday after the United Arab Emirates pledged to buy as many as $8.5 billion sukuk from Ankara, in a move that may ease the government’s funding pressures.
The country’s longest-maturity notes maturing in 2047 rose more than 7 cents on the dollar to 71.1, bringing their yields below 8.7%, the lowest level since May. The rate on the security due 2033 dropped to 8.34%. Turkey’s sovereign-risk premium narrowed 19 basis points to 405 basis points, according to indicative quotes from JPMorgan Chase & Co.
Turkey and the UAE signed deals potentially worth $51 billion during President Recep Tayyip Erdogan’s visit to Abu Dhabi. The agreements envisaged Abu Dhabi Developmental Holding Co. PJSC, better known as ADQ, buying Islamic bonds from Turkey to fund reconstruction efforts following devastating earthquakes in February.
Credit default swaps also narrowed after the announcement of the deals as the inflows were seen boosting the country’s foreign reserves. The cost to protect against default risk in the next five years narrowed 14 basis points to 442 basis points.
But the lira failed to sustain the initial positive reaction to the news, as investors focused on the central bank’s rate decision Thursday. The currency fell 0.5% against the dollar for the worst performance among emerging-market peers.
The monetary authority is expected to raise its policy rate to 18.5% from 15%, according to the median estimate in Bloomberg poll.
#AbuDhabi Commercial Bank Q2 net profit up 23%, beats estimate
Abu Dhabi Commercial Bank Q2 net profit up 23%, beats estimate
Abu Dhabi Commercial Bank (ADCB), the UAE's third-biggest lender, posted a Q2 2023 net profit of 1.93 billion dirhams ($526 million), 23% higher year-on-year (YoY) .
The net profit topped analysts' mean estimate of AED 1.80 billion, according to data provider Refinitiv.
Net interest income rose 14% to AED2.93 billion on loan growth and higher benchmark rates, the lender said in a regulatory disclosure on the Abu Dhabi Securities Exchange on Thursday.
Impairment charges were 14% higher YoY at AED748 million.
Net credit was AED 272 billion, 12% high YoY with new credit totalling AED38 billion in the first half of the year.
For H1 2023, the lender's net profit rose 25% YoY to AED3.81 billion.
Abu Dhabi Commercial Bank (ADCB), the UAE's third-biggest lender, posted a Q2 2023 net profit of 1.93 billion dirhams ($526 million), 23% higher year-on-year (YoY) .
The net profit topped analysts' mean estimate of AED 1.80 billion, according to data provider Refinitiv.
Net interest income rose 14% to AED2.93 billion on loan growth and higher benchmark rates, the lender said in a regulatory disclosure on the Abu Dhabi Securities Exchange on Thursday.
Impairment charges were 14% higher YoY at AED748 million.
Net credit was AED 272 billion, 12% high YoY with new credit totalling AED38 billion in the first half of the year.
For H1 2023, the lender's net profit rose 25% YoY to AED3.81 billion.
#Dubai's RTA invites banks to pitch for taxi business IPO- sources
Dubai's RTA invites banks to pitch for taxi business IPO- sources
Dubai's Roads and Transport Authority (RTA) has invited investment banks to pitch for roles in the planned initial public offering of its taxi business, two sources with knowledge of the matter told Reuters.
The RTA is targeting a potential public share sale of Dubai Taxi Corporation around December or January, said the sources, declining to be named as the matter is not public.
The RTA did not immediately respond to a request for comment from Reuters.
The RTA has appointed Rothschild & Co to advise on a strategic review of its assets, which include its taxi and public parking businesses, Reuters reported on July 7, citing sources familiar with the matter.
It is also looking at options for its Nol card, which passengers use to pay for public transport, and is expected to appoint Dubai lender Emirates NBD for the potential IPOs, two sources said, according to the July 7 report.
The RTA last year raised $1 billion and drew orders of $50 billion for a 24.9% stake in a public share sale of its toll-road business Salik.
Dubai raised nearly $8.5 billion from five IPOs last year, fuelled by a government privatisation plan to list 10 state-linked companies to boost stock market activity.
Companies in the region raised $21.9 billion through IPOs last year, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
Dubai's Roads and Transport Authority (RTA) has invited investment banks to pitch for roles in the planned initial public offering of its taxi business, two sources with knowledge of the matter told Reuters.
The RTA is targeting a potential public share sale of Dubai Taxi Corporation around December or January, said the sources, declining to be named as the matter is not public.
The RTA did not immediately respond to a request for comment from Reuters.
The RTA has appointed Rothschild & Co to advise on a strategic review of its assets, which include its taxi and public parking businesses, Reuters reported on July 7, citing sources familiar with the matter.
It is also looking at options for its Nol card, which passengers use to pay for public transport, and is expected to appoint Dubai lender Emirates NBD for the potential IPOs, two sources said, according to the July 7 report.
The RTA last year raised $1 billion and drew orders of $50 billion for a 24.9% stake in a public share sale of its toll-road business Salik.
Dubai raised nearly $8.5 billion from five IPOs last year, fuelled by a government privatisation plan to list 10 state-linked companies to boost stock market activity.
Companies in the region raised $21.9 billion through IPOs last year, more than half the total for the wider Europe, Middle East and Africa region, Dealogic data shows.
#AbuDhabi Edtech Firm Alef Education Considers #UAE IPO - Bloomberg
Abu Dhabi Edtech Firm Alef Education Considers UAE IPO - Bloomberg
Alef Education, an Abu Dhabi-based edtech firm, is considering an initial public offering in the United Arab Emirates as the number of student enrollments surges, according to people familiar with the matter.
The company, founded in 2015, has held preliminary talks with advisers about the potential listing and an offering could take place as soon as next year, the people said, asking not to be identified as the information isn’t public.
Discussions are at an early stage and Alef Education may decide not to proceed with a listing, the people said. A representative for the company didn’t immediately respond to a request for comment.
Parents in the UAE are among the world’s biggest spenders when it comes to educating their children. Dubai’s emergence as a post-Covid haven has drawn newcomers to the emirate, where private schools are mandatory for expatriate children.
Alef Education joins a number of private companies considering IPOs in the UAE, after a listings boom driven mostly by government-owned firms. Governments in the UAE and in Saudi Arabia have been looking to sell stakes in assets to expand their capital markets and attract new investors.
In 2022, surging oil prices and equity inflows helped the Persian Gulf have its second-best year on record for IPOs, with over $23 billion raised, data compiled by Bloomberg show. Activity has slowed this year with just $5.1 billion raised so far via listings. Dubai’s privatization drive went quiet earlier this year and Saudi Arabia also had a slow start.
Alef Education serves the kindergarten to 12th grade sector with its technology and services, which include a learning platform, curriculum design, professional development for teachers and artificial intelligence, according to its website. It currently serves schools in the UAE, the US, Morocco and Indonesia.
In November, Dubai private school operator Taaleem Holdings PJSC went public with a 750 million dirham ($204 million) IPO. Its shares languished below the offering price until last month, when they surged almost 50%. Shares are now trading 25% above their listing price after the company reported a 34% rise in profit.
Alef Education, an Abu Dhabi-based edtech firm, is considering an initial public offering in the United Arab Emirates as the number of student enrollments surges, according to people familiar with the matter.
The company, founded in 2015, has held preliminary talks with advisers about the potential listing and an offering could take place as soon as next year, the people said, asking not to be identified as the information isn’t public.
Discussions are at an early stage and Alef Education may decide not to proceed with a listing, the people said. A representative for the company didn’t immediately respond to a request for comment.
Parents in the UAE are among the world’s biggest spenders when it comes to educating their children. Dubai’s emergence as a post-Covid haven has drawn newcomers to the emirate, where private schools are mandatory for expatriate children.
Alef Education joins a number of private companies considering IPOs in the UAE, after a listings boom driven mostly by government-owned firms. Governments in the UAE and in Saudi Arabia have been looking to sell stakes in assets to expand their capital markets and attract new investors.
In 2022, surging oil prices and equity inflows helped the Persian Gulf have its second-best year on record for IPOs, with over $23 billion raised, data compiled by Bloomberg show. Activity has slowed this year with just $5.1 billion raised so far via listings. Dubai’s privatization drive went quiet earlier this year and Saudi Arabia also had a slow start.
Alef Education serves the kindergarten to 12th grade sector with its technology and services, which include a learning platform, curriculum design, professional development for teachers and artificial intelligence, according to its website. It currently serves schools in the UAE, the US, Morocco and Indonesia.
In November, Dubai private school operator Taaleem Holdings PJSC went public with a 750 million dirham ($204 million) IPO. Its shares languished below the offering price until last month, when they surged almost 50%. Shares are now trading 25% above their listing price after the company reported a 34% rise in profit.
#UAE to Grow Economy 7%, Cross $800 Billion by 2030: Abdulla bin Touq Al Marri - Bloomberg
UAE to Grow Economy 7%, Cross $800 Billion by 2030: Abdulla bin Touq Al Marri - Bloomberg
The United Arab Emirates is looking to accelerate economic growth as it seeks to double its gross domestic product to over $800 billion by the end of the decade.
“The focus is to grow by 7%,” Abdulla bin Touq Al Marri, the country’s economy minister, said in an interview with Bloomberg Television Thursday. “We need to double our economy” so it reaches 3 trillion dirhams ($817 billion) in output by the end of 2030, he said.
The oil-rich country saw its economy expand almost 8% in 2022, thanks in part to higher crude prices and production. This year, the International Monetary Fund projects GDP growth will slow to 3.5%.
The Gulf country is seeking bilateral trade deals and partnerships to achieve its goals and is confident it has the policies in place to navigate any potential challenges such as slower Chinese growth or disruptions to the global financial system, according to the minister.
The United Arab Emirates is looking to accelerate economic growth as it seeks to double its gross domestic product to over $800 billion by the end of the decade.
“The focus is to grow by 7%,” Abdulla bin Touq Al Marri, the country’s economy minister, said in an interview with Bloomberg Television Thursday. “We need to double our economy” so it reaches 3 trillion dirhams ($817 billion) in output by the end of 2030, he said.
The oil-rich country saw its economy expand almost 8% in 2022, thanks in part to higher crude prices and production. This year, the International Monetary Fund projects GDP growth will slow to 3.5%.
The Gulf country is seeking bilateral trade deals and partnerships to achieve its goals and is confident it has the policies in place to navigate any potential challenges such as slower Chinese growth or disruptions to the global financial system, according to the minister.
Most Gulf markets ease on weak economic forecast; #Qatar rises | Reuters
Most Gulf markets ease on weak economic forecast; Qatar rises | Reuters
Most major stock markets in the Gulf fell in early trade on Thursday extending losses from the previous session after a weak economic forecast about the region.
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%, hit by a 0.4% fall in oil giant Saudi Aramco (2222.SE), while Advanced Petrochemical Co (2330.SE) declined 0.9% after reporting a fall in quarterly profit.
Oil prices - a key catalyst for the Gulf's financial markets - were little changed as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.
Dubai's main share index (.DFMGI) fell 0.1%, on course to extend losses from the previous session when it snapped eight sessions of gains, weighed down by a 0.7% decrease in Dubai Electricity and Water Authority (DEWAA.DU).
In Abu Dhabi, the index (.FTFADGI) lost 0.3%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.6% ahead of its earnings announcement.
Separately, the United Arab Emirates and Turkey inked on Wednesday several deals estimated to be worth $50.7 billion during a visit by President Tayyip Erdogan to Abu Dhabi as he toured wealthy Gulf Arab nations for investment and funds.
The Qatari benchmark (.QSI), however, bucked the trend to trade 0.6% higher.
Most major stock markets in the Gulf fell in early trade on Thursday extending losses from the previous session after a weak economic forecast about the region.
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%, hit by a 0.4% fall in oil giant Saudi Aramco (2222.SE), while Advanced Petrochemical Co (2330.SE) declined 0.9% after reporting a fall in quarterly profit.
Oil prices - a key catalyst for the Gulf's financial markets - were little changed as a lower-than-expected drop in U.S. crude inventories and a potentially weaker demand outlook kept investors cautious.
Dubai's main share index (.DFMGI) fell 0.1%, on course to extend losses from the previous session when it snapped eight sessions of gains, weighed down by a 0.7% decrease in Dubai Electricity and Water Authority (DEWAA.DU).
In Abu Dhabi, the index (.FTFADGI) lost 0.3%, with the country's largest lender First Abu Dhabi Bank (FAB.AD) falling 0.6% ahead of its earnings announcement.
Separately, the United Arab Emirates and Turkey inked on Wednesday several deals estimated to be worth $50.7 billion during a visit by President Tayyip Erdogan to Abu Dhabi as he toured wealthy Gulf Arab nations for investment and funds.
The Qatari benchmark (.QSI), however, bucked the trend to trade 0.6% higher.
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