Mubadala Seeks Co-Investors for Fortress As It Faces US Security Review - Bloomberg
Mubadala Investment Co. is testing US investor interest in taking a stake in Fortress Investment Group as it aims to obtain regulatory sign-off on a deal to obtain most of SoftBank Group’s ownership, according to people with knowledge of the matter.
The Abu Dhabi sovereign fund is talking to investors including some US pension funds in an effort to reduce its expected 70% stake in Fortress, according to the people, who asked not to be named discussing confidential negotiations.
Mubadala is also looking to secure commitments to the next private equity fund managed by Mubadala Capital, its $20 billion asset management subsidiary.
The Committee on Foreign Investment in the US is reviewing Mubadala’s planned takeover of Fortress amid concerns over the United Arab Emirates’ ties to China. Paring Mubadala’s stake could help it address foreign ownership concerns.
Tuesday, 25 July 2023
#SaudiArabia Veers From Russia With Biggest IMF Downgrade - Bloomberg
Saudi Arabia Veers From Russia With Biggest IMF Downgrade - Bloomberg
OPEC+ allies Saudi Arabia and Russia are at the opposite extremes of the International Monetary Fund’s latest global outlook despite joint efforts to cut crude output.
The kingdom is getting the steepest growth downgrade among major economies from the IMF at a time when the Kremlin’s wartime budget stimulus helps offset its oil curbs. Saudi Arabia, the fastest-growing economy in the Group of 20 last year, is on track to expand just 1.9% in 2023, a downward revision of 1.2 percentage points from the fund’s earlier estimate.
By contrast, the IMF improved its view of Russia by 0.8 percentage point and now expects the economy to add 1.5%, after what it said was a “large fiscal stimulus” in the first half.
For Saudi Arabia, the downgrade “reflects production cuts announced in April and June in line with an agreement through OPEC+,” the IMF said in its World Economic Outlook published Tuesday.
OPEC+ allies Saudi Arabia and Russia are at the opposite extremes of the International Monetary Fund’s latest global outlook despite joint efforts to cut crude output.
The kingdom is getting the steepest growth downgrade among major economies from the IMF at a time when the Kremlin’s wartime budget stimulus helps offset its oil curbs. Saudi Arabia, the fastest-growing economy in the Group of 20 last year, is on track to expand just 1.9% in 2023, a downward revision of 1.2 percentage points from the fund’s earlier estimate.
By contrast, the IMF improved its view of Russia by 0.8 percentage point and now expects the economy to add 1.5%, after what it said was a “large fiscal stimulus” in the first half.
For Saudi Arabia, the downgrade “reflects production cuts announced in April and June in line with an agreement through OPEC+,” the IMF said in its World Economic Outlook published Tuesday.
Most Gulf markets gain on oil, earnings; #AbuDhabi slips | Reuters
Most Gulf markets gain on oil, earnings; Abu Dhabi slips | Reuters
Most stock markets in the Gulf ended higher on Tuesday on the back of rising oil prices and corporate earnings, although gains were limited as focus shifted to the Federal Reserve's monetary policy decision due on Wednesday.
Oil prices - a key catalyst for the Gulf's financial markets - were steady. They hovered near three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy lifted sentiment, while weaker Western economic data weighed.
Saudi Arabia's benchmark index (.TASI) gained 0.7%, led by a 8.5% surge in Alinma Bank (1150.SE) after it reported a sharp rise in quarterly earnings.
The lender, which saw its biggest intraday gain in over three years, posted second-quarter net profit of 1.23 billion riyals ($327.97 million), up from 925.1 million riyals year ago.
Dubai's main share index (.DFMGI) finished 0.5% higher, driven by a 1.8% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 4.1% increase in Gulf Navigation (GNAV.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.2%.
The Abu Dhabi stock market saw limited price movements with caution taking hold ahead of the Federal Reserve meeting, said Farah Mourad, Senior Market Analyst of XTB MENA.
"Volatility in oil prices has also impacted the market's performance and could weigh on expectations. The main index could continue to see risks after a series of gains."
Most Gulf Cooperation Council countries, including the UAE, Saudi Arabia and Qatar, have their currencies pegged to the U.S. dollar and generally follow the Fed's policy moves, exposing the region to a direct impact from any monetary policy moves there.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%. Most of the stocks on the index were in negative territory including Eastern Company (EAST.CA), which was down 1.9%.
According to Mourad, declining trading volume continued to weigh on the Egyptian bourse which saw some volatility over the last few days.
Most stock markets in the Gulf ended higher on Tuesday on the back of rising oil prices and corporate earnings, although gains were limited as focus shifted to the Federal Reserve's monetary policy decision due on Wednesday.
Oil prices - a key catalyst for the Gulf's financial markets - were steady. They hovered near three-month highs as signs of tighter supplies and pledges by Chinese authorities to shore up the world's second-biggest economy lifted sentiment, while weaker Western economic data weighed.
Saudi Arabia's benchmark index (.TASI) gained 0.7%, led by a 8.5% surge in Alinma Bank (1150.SE) after it reported a sharp rise in quarterly earnings.
The lender, which saw its biggest intraday gain in over three years, posted second-quarter net profit of 1.23 billion riyals ($327.97 million), up from 925.1 million riyals year ago.
Dubai's main share index (.DFMGI) finished 0.5% higher, driven by a 1.8% rise in sharia-compliant lender Dubai Islamic Bank (DISB.DU) and a 4.1% increase in Gulf Navigation (GNAV.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.2%.
The Abu Dhabi stock market saw limited price movements with caution taking hold ahead of the Federal Reserve meeting, said Farah Mourad, Senior Market Analyst of XTB MENA.
"Volatility in oil prices has also impacted the market's performance and could weigh on expectations. The main index could continue to see risks after a series of gains."
Most Gulf Cooperation Council countries, including the UAE, Saudi Arabia and Qatar, have their currencies pegged to the U.S. dollar and generally follow the Fed's policy moves, exposing the region to a direct impact from any monetary policy moves there.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.4%. Most of the stocks on the index were in negative territory including Eastern Company (EAST.CA), which was down 1.9%.
According to Mourad, declining trading volume continued to weigh on the Egyptian bourse which saw some volatility over the last few days.
Expat Go-to Website Dubizzle Taps Citigroup, HSBC for IPO - Bloomberg
Expat Go-to Website Dubizzle Taps Citigroup, HSBC for IPO - Bloomberg
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Dubizzle Group, which operates classifieds websites popular with expatriates in the United Arab Emirates, is working with Citigroup Inc. and HSBC Holdings Plc on its potential initial public offering, according to people familiar with the matter.
The company, formerly known as Emerging Markets Property Group, hasn’t decided on a venue for the listing but it’s likely to be a regional stock market, the people said, asking not to be identified as the information isn’t public. A deal could happen as soon as next year, they said.
Details of the offering such as its size and timeline are still being discussed and may change, the people said. More banks may be added to the deal at a later date, they said.
Representatives for Dubizzle, Citigroup and HSBC declined to comment.
An IPO by Dubizzle would test investor appetite for startups in the Middle East where listings have been dominated by companies in sectors with high dividend yields. Globally, tech companies have struggled to raise funds and seen valuations plunge as high inflation and rising interest rates dented appetite for loss-making, high-growth firms.
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Dubizzle Group, which operates classifieds websites popular with expatriates in the United Arab Emirates, is working with Citigroup Inc. and HSBC Holdings Plc on its potential initial public offering, according to people familiar with the matter.
The company, formerly known as Emerging Markets Property Group, hasn’t decided on a venue for the listing but it’s likely to be a regional stock market, the people said, asking not to be identified as the information isn’t public. A deal could happen as soon as next year, they said.
Details of the offering such as its size and timeline are still being discussed and may change, the people said. More banks may be added to the deal at a later date, they said.
Representatives for Dubizzle, Citigroup and HSBC declined to comment.
An IPO by Dubizzle would test investor appetite for startups in the Middle East where listings have been dominated by companies in sectors with high dividend yields. Globally, tech companies have struggled to raise funds and seen valuations plunge as high inflation and rising interest rates dented appetite for loss-making, high-growth firms.
Crypto exchange Rain to target #UAE asset managers after winning licence | Reuters
Crypto exchange Rain to target UAE asset managers after winning licence | Reuters
Middle Eastern crypto exchange Rain said on Tuesday its Abu Dhabi unit obtained a license to operate a virtual assets brokerage and custody service for clients in the United Arab Emirates.
The Bahrain-headquartered Rain, backed by Coinbase, said its entity based in the Abu Dhabi Global Market financial freezone will now offer institutional clients and some retail clients in the UAE the ability to buy, sell and store virtual assets.
Rain will also be able to open a bank account in the UAE, and allow clients in the country to fund their own accounts when using the local payment network, co-founder Yehia Badawy said in an interview on Tuesday.
Local asset managers have been hesitant to work with crypto firms without a domestic licence, he continued, adding they will now feel more comfortable after it obtained regulatory approval.
Middle Eastern crypto exchange Rain said on Tuesday its Abu Dhabi unit obtained a license to operate a virtual assets brokerage and custody service for clients in the United Arab Emirates.
The Bahrain-headquartered Rain, backed by Coinbase, said its entity based in the Abu Dhabi Global Market financial freezone will now offer institutional clients and some retail clients in the UAE the ability to buy, sell and store virtual assets.
Rain will also be able to open a bank account in the UAE, and allow clients in the country to fund their own accounts when using the local payment network, co-founder Yehia Badawy said in an interview on Tuesday.
Local asset managers have been hesitant to work with crypto firms without a domestic licence, he continued, adding they will now feel more comfortable after it obtained regulatory approval.
#Saudi National Bank Q2 net profit up 9%, beating estimate | Reuters
Saudi National Bank Q2 net profit up 9%, beating estimate | Reuters
Saudi National Bank (SNB) (1180.SE) on Tuesday reported a 9.3% jump in net profit for the second quarter compared with the prior-year period, on higher operating income and a fall in provisions for bad loans.
The kingdom's biggest lender by assets made a net profit of 5 billion riyals ($1.33 billion) in the second quarter, beating a mean analysts' estimate of 4.9 billion riyals according to Refinitiv data.
"Growth in net income attributable to equity holders of the Bank...(was) driven by higher operating income along with lower operating expenses, including net impairment charge for expected credit losses," a company statement to the Saudi stock exchange said.
Provisions for credit losses fell 87% year-on-year in the quarter to 76 million riyals, supporting a 14% decrease in total operating expenses to 2.7 billion riyals, the statement said, while total operating income grew 2%.
SNB, which saw a 70% fall in the carrying value of its investment in Swiss lender Credit Suisse in the first quarter, has previously said there would be no impact of the decline in equity on its income statement.
Net profit in the first six months of 2023 was up 10.4% over the same period a year ago, with operating income almost 5% higher year-on-year.
Loans and advances grew 7.7% in the first half, while deposits grew 1.6%; however customer deposits are up 6% year to date from the end of December, the bank said.
Saudi National Bank (SNB) (1180.SE) on Tuesday reported a 9.3% jump in net profit for the second quarter compared with the prior-year period, on higher operating income and a fall in provisions for bad loans.
The kingdom's biggest lender by assets made a net profit of 5 billion riyals ($1.33 billion) in the second quarter, beating a mean analysts' estimate of 4.9 billion riyals according to Refinitiv data.
"Growth in net income attributable to equity holders of the Bank...(was) driven by higher operating income along with lower operating expenses, including net impairment charge for expected credit losses," a company statement to the Saudi stock exchange said.
Provisions for credit losses fell 87% year-on-year in the quarter to 76 million riyals, supporting a 14% decrease in total operating expenses to 2.7 billion riyals, the statement said, while total operating income grew 2%.
SNB, which saw a 70% fall in the carrying value of its investment in Swiss lender Credit Suisse in the first quarter, has previously said there would be no impact of the decline in equity on its income statement.
Net profit in the first six months of 2023 was up 10.4% over the same period a year ago, with operating income almost 5% higher year-on-year.
Loans and advances grew 7.7% in the first half, while deposits grew 1.6%; however customer deposits are up 6% year to date from the end of December, the bank said.
#SaudiArabia Oil Revenue Drops to Lowest Since 2021 as Prices Falter - Bloomberg
Saudi Arabia Oil Revenue Drops to Lowest Since 2021 as Prices Falter - Bloomberg
Saudi Arabia’s receipts from oil sales abroad declined by more than a third to the lowest since September 2021, amid a spluttering recovery in energy markets.
The kingdom’s oil exports dropped to just over $19 billion during May, according to data from the General Authority for Statistics that includes both crude and refined products. The share of oil sales in total exports fell to 74% from nearly 81% a year ago.
Saudi Arabia, the world’s largest oil exporter, saw a significant windfall from higher crude prices and production in 2022. This year, the kingdom said it would prolong production cuts it started earlier in 2023, trying to boost prices by keeping a lid on supply amid persisting fears over the global economy.
Crude oil prices have gained in recent weeks due to the effect of the cuts, but are restrained by concerns that higher interest rates could throttle economic activity in the US and Europe. Brent prices averaged about $75 per barrel in May, and traded at $82.61 on Tuesday.
In the non-oil sector, the focus of Crown Prince Mohammed bin Salman’s plans to transform the economy, exports dropped by nearly 9% year-on-year to 25 billion riyals ($6.7 billion) in May.
Saudi Arabia’s receipts from oil sales abroad declined by more than a third to the lowest since September 2021, amid a spluttering recovery in energy markets.
The kingdom’s oil exports dropped to just over $19 billion during May, according to data from the General Authority for Statistics that includes both crude and refined products. The share of oil sales in total exports fell to 74% from nearly 81% a year ago.
Saudi Arabia, the world’s largest oil exporter, saw a significant windfall from higher crude prices and production in 2022. This year, the kingdom said it would prolong production cuts it started earlier in 2023, trying to boost prices by keeping a lid on supply amid persisting fears over the global economy.
Crude oil prices have gained in recent weeks due to the effect of the cuts, but are restrained by concerns that higher interest rates could throttle economic activity in the US and Europe. Brent prices averaged about $75 per barrel in May, and traded at $82.61 on Tuesday.
In the non-oil sector, the focus of Crown Prince Mohammed bin Salman’s plans to transform the economy, exports dropped by nearly 9% year-on-year to 25 billion riyals ($6.7 billion) in May.
Most Gulf markets gain on oil, corporate earnings | Reuters
Most Gulf markets gain on oil, corporate earnings | Reuters
Most major stock markets in the Gulf rose in early trade on Tuesday in response to higher oil prices and strong earnings, although the Abu Dhabi index bucked the trend.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, led by a 5.8% jump in Alinma Bank (1150.SE) following a rise in quarterly net profit.
The lender - which hit its highest level since Nov. 9 - reported second-quarter net profit of 1.23 billion riyals ($327.94 million), up from 925.1 million riyals year ago.
Oil prices - a key catalyst for the Gulf financial markets - edged higher for a third straight session, as signs of tighter supplies and pledges by Chinese authorities to shore up the economy lifted sentiment.
In China, the world's second-largest economy and second-biggest oil consumer, leaders pledged to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand.
Dubai's benchmark index (.DFMGI) added 0.2%, with top lender Emirates NBD (ENBD.DU) gaining 1.5%.
In Qatar, the index (.QSI) advanced 0.9%, as most of the stocks were in positive territory including Commercial Bank (COMB.QA), which was up 2.8%.
Qatari telecoms company Ooredoo (ORDS.QA), Kuwait's Zain Group (ZAIN.KW) and Dubai-based TASC Towers Holding have entered into exclusive talks to create the Middle East and North Africa's largest tower company, they said in a joint statement on Monday.
Ooredoo climbed 1.7%, although Zain Group eased 0.2%.
In Abu Dhabi, the index (.FTFADGI) fell 0.1%, hit by a 0.1% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
However, Sharjah Islamic Bank (SIB.AD) leapt 4.9%, hitting its highest level since June 2008, after the bank posted a 36.7% jump in half-yearly net profit.
Most major stock markets in the Gulf rose in early trade on Tuesday in response to higher oil prices and strong earnings, although the Abu Dhabi index bucked the trend.
Saudi Arabia's benchmark index (.TASI) gained 0.6%, led by a 5.8% jump in Alinma Bank (1150.SE) following a rise in quarterly net profit.
The lender - which hit its highest level since Nov. 9 - reported second-quarter net profit of 1.23 billion riyals ($327.94 million), up from 925.1 million riyals year ago.
Oil prices - a key catalyst for the Gulf financial markets - edged higher for a third straight session, as signs of tighter supplies and pledges by Chinese authorities to shore up the economy lifted sentiment.
In China, the world's second-largest economy and second-biggest oil consumer, leaders pledged to step up policy support for the economy amid a tortuous post-COVID recovery, focusing on boosting domestic demand.
Dubai's benchmark index (.DFMGI) added 0.2%, with top lender Emirates NBD (ENBD.DU) gaining 1.5%.
In Qatar, the index (.QSI) advanced 0.9%, as most of the stocks were in positive territory including Commercial Bank (COMB.QA), which was up 2.8%.
Qatari telecoms company Ooredoo (ORDS.QA), Kuwait's Zain Group (ZAIN.KW) and Dubai-based TASC Towers Holding have entered into exclusive talks to create the Middle East and North Africa's largest tower company, they said in a joint statement on Monday.
Ooredoo climbed 1.7%, although Zain Group eased 0.2%.
In Abu Dhabi, the index (.FTFADGI) fell 0.1%, hit by a 0.1% fall in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
However, Sharjah Islamic Bank (SIB.AD) leapt 4.9%, hitting its highest level since June 2008, after the bank posted a 36.7% jump in half-yearly net profit.
US security officials scrutinise #AbuDhabi’s $3bn Fortress takeover | Financial Times
US security officials scrutinise Abu Dhabi’s $3bn Fortress takeover | Financial Times
US national security officials are scrutinising an Abu Dhabi sovereign wealth fund’s planned $3bn takeover of New York-based Fortress Investment Group amid concerns in Washington over the United Arab Emirates’ ties to China, people close to the situation told the Financial Times.
The review by the Committee on Foreign Investment in the United States, an inter-governmental agency that vets whether deals can harm national security, is in its early stages and a decision is not expected for several months, the people added.
Abu Dhabi’s Mubadala agreed to buy a majority stake in Fortress, which manages about $46bn in assets and specialises in distressed debt investing, in May from Japan’s SoftBank Group. Mubadala, which is run by chief executive Khaldoon al-Mubarak, said it intended to close the deal in the first quarter of 2024, subject to regulatory approvals.
Mubadala and Fortress declined to comment. The US Treasury, which oversees the Cfius process, said it did not comment on transactions that it “may or not be reviewing” but added that it was “committed to taking all necessary actions within its authority to safeguard US national security”.
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