Abu Dhabi's IHC to focus on domestic acquisitions as global economy slows | Reuters
Abu Dhabi conglomerate International Holding Company (IHC.AD) said on Thursday it was refocusing on domestic acquisitions as global economic challenges hamper its efforts to expand abroad and net profit fell slightly in the second quarter.
IHC, which rose from relative obscurity to become the United Arab Emirates' largest publicly traded company worth more than $235.98 billion, said the approach aims to safeguard investments during uncertain times.
"In response to the prevailing slower economic backdrop, IHC's strategy inclines towards more domestic business acquisitions, leveraging the UAE's stable economic environment, investor-friendly government policies, strategic location, tax incentives, and diverse property market," it said in a statement.
Profit fell to 6.12 billion dirhams in the quarter ended June 30 from 6.81 billion dirhams in the year-earlier period.
IHC is part of a business empire overseen by its chair, Sheikh Tahnoon bin Zayed al-Nahyan, who is also the UAE's national security adviser and a foreign policy troubleshooter for his brother, President Sheikh Mohammed bin Zayed al-Nahyan.
Thursday 3 August 2023
#Dubai Welcomes Hedge Fund Digital Nomads With Low Taxes - Bloomberg
Dubai Welcomes Hedge Fund Digital Nomads With Low Taxes - Bloomberg
First came the tacky influencers, broadcasting raucous yacht parties to their followers caught in pandemic lockdowns. Then came Russian wealth, from cash to crypto, looking for a home unbothered by pesky sanctions after the invasion of Ukraine.
Now Dubai’s latest well-heeled digital-nomad demographic is the wealthy Western hedge-funder, judging by a recent flow of talent from the likes of Millennium Management and ExodusPoint Capital Management, as the emirate and its neighbor Abu Dhabi court the rich and powerful with tax-free status, lighter regulation and an Asia-friendly time zone.
This may feel like “deja vu” for some — and perhaps out of whack with the hedge fund industry’s stagnant growth, poor performance and worsening environment for raising money last year — but there’s a good chance the Gulf is going to become a test case in the race for rich talent in a world dominated by geopolitics and war. It will also likely raise the hackles of tax authorities across the West at a time of stretched budgets.
Times have changed since Dubai’s last big push at being a global financial center, which turned out to basically be a speculative debt-fueled real-estate bubble built on sand. When I visited the emirate during the financial crisis days of 2009, I was struck by how many foreign investors had lost a small fortune flipping property. When the bubble burst, its less freewheeling neighbor, Abu Dhabi, tightened its grip with a bailout.
First came the tacky influencers, broadcasting raucous yacht parties to their followers caught in pandemic lockdowns. Then came Russian wealth, from cash to crypto, looking for a home unbothered by pesky sanctions after the invasion of Ukraine.
Now Dubai’s latest well-heeled digital-nomad demographic is the wealthy Western hedge-funder, judging by a recent flow of talent from the likes of Millennium Management and ExodusPoint Capital Management, as the emirate and its neighbor Abu Dhabi court the rich and powerful with tax-free status, lighter regulation and an Asia-friendly time zone.
This may feel like “deja vu” for some — and perhaps out of whack with the hedge fund industry’s stagnant growth, poor performance and worsening environment for raising money last year — but there’s a good chance the Gulf is going to become a test case in the race for rich talent in a world dominated by geopolitics and war. It will also likely raise the hackles of tax authorities across the West at a time of stretched budgets.
Times have changed since Dubai’s last big push at being a global financial center, which turned out to basically be a speculative debt-fueled real-estate bubble built on sand. When I visited the emirate during the financial crisis days of 2009, I was struck by how many foreign investors had lost a small fortune flipping property. When the bubble burst, its less freewheeling neighbor, Abu Dhabi, tightened its grip with a bailout.
Wellington Set to Hire Morgan Stanley Banker for #Dubai Expansion - Bloomberg
Wellington Set to Hire Morgan Stanley Banker for Dubai Expansion - Bloomberg
Wellington Management, which handles more than $1.1 trillion of client assets, is opening an office in Dubai, joining a raft of international financial firms expanding to the Middle Eastern business hub.
The Boston-based firm is set to appoint Waleed Al-Rezooqi from Morgan Stanley to lead its operations in the city and help the money manager build out its regional presence, according to people familiar with the matter who asked not to be named as the information is private.
Al-Rezooqi is an executive director at Morgan Stanley and has worked at the Wall Street firm for almost six years, according to LinkedIn. He previously worked at HSBC Holdings Plc and Natixis SA in the region, his profile shows.
A representative for Morgan Stanley declined to comment. Al-Rezooqi didn’t respond to calls to his mobile phone and messages on LinkedIn.
Wellington has been managing assets for clients in the Middle East and North Africa for 29 years and decided to expand into the region “to get close to our clients and support their local needs,” the company said, declining to comment on Al-Rezooqi.
Wellington, which is known for serving institutional clients and sub-advising active mutual funds, is the latest money manager to open to Dubai. Most of the world’s top investment banks, asset managers and, more recently, hedge funds have established their regional headquarters in the Dubai International Financial Centre, a free-zone with its own English-language common law court system.
Wellington recently cut about 5% of its staff as the industry adjusts to volatile markets after a tough 2022. The cuts are across different roles and locations at the firm, which has about 3,400 employees globally.
Wellington Management, which handles more than $1.1 trillion of client assets, is opening an office in Dubai, joining a raft of international financial firms expanding to the Middle Eastern business hub.
The Boston-based firm is set to appoint Waleed Al-Rezooqi from Morgan Stanley to lead its operations in the city and help the money manager build out its regional presence, according to people familiar with the matter who asked not to be named as the information is private.
Al-Rezooqi is an executive director at Morgan Stanley and has worked at the Wall Street firm for almost six years, according to LinkedIn. He previously worked at HSBC Holdings Plc and Natixis SA in the region, his profile shows.
A representative for Morgan Stanley declined to comment. Al-Rezooqi didn’t respond to calls to his mobile phone and messages on LinkedIn.
Wellington has been managing assets for clients in the Middle East and North Africa for 29 years and decided to expand into the region “to get close to our clients and support their local needs,” the company said, declining to comment on Al-Rezooqi.
Wellington, which is known for serving institutional clients and sub-advising active mutual funds, is the latest money manager to open to Dubai. Most of the world’s top investment banks, asset managers and, more recently, hedge funds have established their regional headquarters in the Dubai International Financial Centre, a free-zone with its own English-language common law court system.
Wellington recently cut about 5% of its staff as the industry adjusts to volatile markets after a tough 2022. The cuts are across different roles and locations at the firm, which has about 3,400 employees globally.
Saudis Extend 1 Million-Barrel Oil Cut, Say Can Be Deepened - Bloomberg
Saudis Extend 1 Million-Barrel Oil Cut, Say Can Be Deepened - Bloomberg
Saudi Arabia extended its unilateral oil production cut by another month, and said it could be prolonged further or even deepened.
The leader of the Organization of Petroleum Exporting Countries will prolong the cutback of 1 million barrels a day — launched last month — into September, according to a statement on state Saudi Press Agency. That will hold output at about 9 million barrels a day, the lowest level in several years. Crude futures jumped.
The measure — which comes on top of supply curbs Riyadh was already making with others in the OPEC+ producers group — is intended to “to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.”
Oil prices have recovered recently, reaching a three-month high above $85 a barrel earlier this week in London, as the post-pandemic recovery in fuel demand, combined with output curbs by OPEC+ countries, begins to tighten world crude markets.
But with the economic outlook still clouded by lackluster data from China and fears of recession in the US, Riyadh is showing no signs of relaxing its grip. Besides, the kingdom may need prices of as much as $100 a barrel to cover government spending, according to Bloomberg Economics. Brent futures surged as much as 1.7% after the Saudi announcement on Thursday.
Saudi Arabia extended its unilateral oil production cut by another month, and said it could be prolonged further or even deepened.
The leader of the Organization of Petroleum Exporting Countries will prolong the cutback of 1 million barrels a day — launched last month — into September, according to a statement on state Saudi Press Agency. That will hold output at about 9 million barrels a day, the lowest level in several years. Crude futures jumped.
The measure — which comes on top of supply curbs Riyadh was already making with others in the OPEC+ producers group — is intended to “to reinforce the precautionary efforts made by OPEC+ countries with the aim of supporting the stability and balance of oil markets.”
Oil prices have recovered recently, reaching a three-month high above $85 a barrel earlier this week in London, as the post-pandemic recovery in fuel demand, combined with output curbs by OPEC+ countries, begins to tighten world crude markets.
But with the economic outlook still clouded by lackluster data from China and fears of recession in the US, Riyadh is showing no signs of relaxing its grip. Besides, the kingdom may need prices of as much as $100 a barrel to cover government spending, according to Bloomberg Economics. Brent futures surged as much as 1.7% after the Saudi announcement on Thursday.
Most Gulf markets fall on continued profit-taking | Reuters
Most Gulf markets fall on continued profit-taking | Reuters
Most stock markets in the Gulf ended lower on Thursday as traders continued to book profits following recent gains, with the Saudi index posting its first weekly loss in five.
Saudi Arabia's benchmark index (.TASI) dropped 0.9%, extending losses to a fifth session after it hit a nine-month high last week, weighed down by a 4.8% fall in Banque Saudi Fransi (1050.SE).
The index also posted its first weekly loss in five, falling 4% - its biggest weekly loss since mid-March.
The Saudi stock market was recording a volatile trading session as traders considered the strong local fundamentals on the one hand and changing sentiment globally on the other, said Ahmed Negm, Head of Market Research MENA at XS.com.
"The main index has accumulated losses this week after a strong rebound and could stabilize later on."
Dubai's main share index (.DFMGI) dropped 0.8%, retreating from an eight-year high hit in the previous session, dragged down by a 3.2% decline in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) 0.4%, with Emirates Telecommunications Group (EAND.AD) losing 1.4%.
The company's CEO Hatem Dowidar told CNBC Arabia on Wednesday his company was seeking to increase its stake in Vodafone to 20%.
Its ownership as of April stood at 14.61%, according to an SEC filing.
The Qatari benchmark (.QSI) slid 1.7%, extending losses from the previous session when it snapped a fifteen-day winning streak, as almost all the stocks on the index were in negative territory.
Qatar Islamic Bank (QISB.QA) retreated 6.2%, while Qatar Gas Transport (QGTS.QA) finished 3.4% lower.
The Qatari index recorded a weekly loss of 0.9%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was flat.
A contraction in Egypt's non-oil private sector eased in July to its slowest in almost two years, even as expectations for improvement anytime soon remained low, the S&P Global Egypt Purchasing Managers' Index (PMI) showed on Thursday.
Most stock markets in the Gulf ended lower on Thursday as traders continued to book profits following recent gains, with the Saudi index posting its first weekly loss in five.
Saudi Arabia's benchmark index (.TASI) dropped 0.9%, extending losses to a fifth session after it hit a nine-month high last week, weighed down by a 4.8% fall in Banque Saudi Fransi (1050.SE).
The index also posted its first weekly loss in five, falling 4% - its biggest weekly loss since mid-March.
The Saudi stock market was recording a volatile trading session as traders considered the strong local fundamentals on the one hand and changing sentiment globally on the other, said Ahmed Negm, Head of Market Research MENA at XS.com.
"The main index has accumulated losses this week after a strong rebound and could stabilize later on."
Dubai's main share index (.DFMGI) dropped 0.8%, retreating from an eight-year high hit in the previous session, dragged down by a 3.2% decline in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) 0.4%, with Emirates Telecommunications Group (EAND.AD) losing 1.4%.
The company's CEO Hatem Dowidar told CNBC Arabia on Wednesday his company was seeking to increase its stake in Vodafone to 20%.
Its ownership as of April stood at 14.61%, according to an SEC filing.
The Qatari benchmark (.QSI) slid 1.7%, extending losses from the previous session when it snapped a fifteen-day winning streak, as almost all the stocks on the index were in negative territory.
Qatar Islamic Bank (QISB.QA) retreated 6.2%, while Qatar Gas Transport (QGTS.QA) finished 3.4% lower.
The Qatari index recorded a weekly loss of 0.9%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) was flat.
A contraction in Egypt's non-oil private sector eased in July to its slowest in almost two years, even as expectations for improvement anytime soon remained low, the S&P Global Egypt Purchasing Managers' Index (PMI) showed on Thursday.
Business activity in #SaudiArabia and #UAE improves in July on continued growth momentum
Business activity in Saudi Arabia and UAE improves in July on continued growth momentum
Business activity in the non-oil private sector economies of Saudi Arabia and the UAE remained firmly in expansion territory, continuing the cycle of improvement in July amid robust economic momentum in the Arab world's largest economies.
The headline Riyad Bank Saudi Arabia purchasing managers' index reading reached 57.7 in July, lower than 59.6 recorded in June. It, however, stayed well above the neutral 50-point mark that separates growth from contraction.
The latest reading was also higher than the long-run survey average and signalled strong underlying business conditions in the kingdom.
The strong performance by the non-oil private sector companies in July reflects “favourable domestic economic conditions” that drove the sharp upturn in business activity, albeit at a slower pace than in June.
Business activity in the non-oil private sector economies of Saudi Arabia and the UAE remained firmly in expansion territory, continuing the cycle of improvement in July amid robust economic momentum in the Arab world's largest economies.
The headline Riyad Bank Saudi Arabia purchasing managers' index reading reached 57.7 in July, lower than 59.6 recorded in June. It, however, stayed well above the neutral 50-point mark that separates growth from contraction.
The latest reading was also higher than the long-run survey average and signalled strong underlying business conditions in the kingdom.
The strong performance by the non-oil private sector companies in July reflects “favourable domestic economic conditions” that drove the sharp upturn in business activity, albeit at a slower pace than in June.
Nomura to hire over 40 private bankers in Asia, Middle East - senior exec | Reuters
Nomura to hire over 40 private bankers in Asia, Middle East - senior exec | Reuters
Nomura Holdings (8604.T) plans to hire more than 40 private bankers in Asia and the Middle East in two years to tap an expanding pool of rich families and entrepreneurs in the regions, its international wealth management chief told Reuters.
Enhancing wealth management is part of Nomura's goal of increasing revenue less vulnerable to market swings, as Japan's top investment bank has had occasional major financial hits in its attempts to expand globally.
"The plan for us is to grow to about 135 relationship managers in the next two years, which will help us double our business," Ravi Raju, who heads Nomura's wealth management business ex-Japan, said in an interview.
The business currently employs 91 private bankers in Singapore, Hong Kong and Dubai to serve affluent clients in Greater China, Southeast Asia and the Middle East, he said.
Nomura has repositioned the business to be part of the wholesale division to provide high net-worth individuals with a broad range of investment products and services in everything from equity to structured products - similar to what it offers to institutional clients.
Nomura Holdings (8604.T) plans to hire more than 40 private bankers in Asia and the Middle East in two years to tap an expanding pool of rich families and entrepreneurs in the regions, its international wealth management chief told Reuters.
Enhancing wealth management is part of Nomura's goal of increasing revenue less vulnerable to market swings, as Japan's top investment bank has had occasional major financial hits in its attempts to expand globally.
"The plan for us is to grow to about 135 relationship managers in the next two years, which will help us double our business," Ravi Raju, who heads Nomura's wealth management business ex-Japan, said in an interview.
The business currently employs 91 private bankers in Singapore, Hong Kong and Dubai to serve affluent clients in Greater China, Southeast Asia and the Middle East, he said.
Nomura has repositioned the business to be part of the wholesale division to provide high net-worth individuals with a broad range of investment products and services in everything from equity to structured products - similar to what it offers to institutional clients.
Lower sales weigh on #UAE non-oil business activity in July-PMI | Reuters
Lower sales weigh on UAE non-oil business activity in July-PMI | Reuters
Non-oil business activity in the United Arab Emirates eased in July as new orders slowed from a four-year high the previous month, a survey showed on Thursday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index slowed to 56.0 in July, from 56.9 in June, but remained firmly above the 50 mark, which signals growth in activity.
The slowdown was attributed in part to an easing of growth in new orders, although demand remained strong, with the sub-index falling to 57.4 in July from 61.0 the previous month, which was the fastest rate of expansion since June 2019.
Non-oil business activity in the United Arab Emirates eased in July as new orders slowed from a four-year high the previous month, a survey showed on Thursday.
The seasonally adjusted S&P Global UAE Purchasing Managers' Index slowed to 56.0 in July, from 56.9 in June, but remained firmly above the 50 mark, which signals growth in activity.
The slowdown was attributed in part to an easing of growth in new orders, although demand remained strong, with the sub-index falling to 57.4 in July from 61.0 the previous month, which was the fastest rate of expansion since June 2019.
Major Gulf equities track oil, Asian shares lower | Reuters
Major Gulf equities track oil, Asian shares lower | Reuters
Major stock markets in the Gulf fell in early trade on Thursday, tracking oil prices and Asian shares lower, with the Saudi index on course to post its first weekly loss in five weeks.
Prices of oil - a key catalyst for the Gulf's financial markets - were little changed after a two-day decline, including a sharp drop on Wednesday, as a U.S. government credit downgrade weighed on sentiment, though concerns around supply tightness provided some support.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.4%, after a 2.3% drop a day earlier as rating agency Fitch cut the U.S. government's credit rating.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, on course to extend losses for a fifth session after it hit a nine-month high on July 26, weighed down by a 3.6% decline in Saudi Awwal Bank (1060.SE).
Non-oil business activity in Saudi Arabia eased in July, after output surged to multi-year highs the previous month, a survey showed on Thursday, as new order growth slowed.
On the flip side, Saudi Steel Pipes Co (1320.SE) surged about 10%, becoming the top gainer on the index, after it recorded 645% jump in second-quarter net profit.
In Abu Dhabi, the index (.FTFADGI) eased 0.2%.
Dubai's main share index (.DFMGI) declined 0.8%, ending its fourth positive session, with blue-chip developer Emaar Properties (EMAR.DU) losing 1.3%, while top lender Emirates NBD Bank (ENBD.DU) was down 1.5%.
Non-oil business activity in the United Arab Emirates eased in July as new orders slowed from a four-year high the previous month, a survey showed on Thursday.
The Qatari index (.QSI) dropped 1.5%, as almost all its constituent stocks were trading in the negative territory.
Sharia lender Qatar Islamic bank (QISB.QA) fell 4.6% and Qatar National Bank (QNBK.QA), Gulf's largest lender, gave up 1.4%.
Major stock markets in the Gulf fell in early trade on Thursday, tracking oil prices and Asian shares lower, with the Saudi index on course to post its first weekly loss in five weeks.
Prices of oil - a key catalyst for the Gulf's financial markets - were little changed after a two-day decline, including a sharp drop on Wednesday, as a U.S. government credit downgrade weighed on sentiment, though concerns around supply tightness provided some support.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) fell 0.4%, after a 2.3% drop a day earlier as rating agency Fitch cut the U.S. government's credit rating.
Saudi Arabia's benchmark index (.TASI) fell 0.2%, on course to extend losses for a fifth session after it hit a nine-month high on July 26, weighed down by a 3.6% decline in Saudi Awwal Bank (1060.SE).
Non-oil business activity in Saudi Arabia eased in July, after output surged to multi-year highs the previous month, a survey showed on Thursday, as new order growth slowed.
On the flip side, Saudi Steel Pipes Co (1320.SE) surged about 10%, becoming the top gainer on the index, after it recorded 645% jump in second-quarter net profit.
In Abu Dhabi, the index (.FTFADGI) eased 0.2%.
Dubai's main share index (.DFMGI) declined 0.8%, ending its fourth positive session, with blue-chip developer Emaar Properties (EMAR.DU) losing 1.3%, while top lender Emirates NBD Bank (ENBD.DU) was down 1.5%.
Non-oil business activity in the United Arab Emirates eased in July as new orders slowed from a four-year high the previous month, a survey showed on Thursday.
The Qatari index (.QSI) dropped 1.5%, as almost all its constituent stocks were trading in the negative territory.
Sharia lender Qatar Islamic bank (QISB.QA) fell 4.6% and Qatar National Bank (QNBK.QA), Gulf's largest lender, gave up 1.4%.
SABIC's quarterly profit drops 85% on lower sales prices | Reuters
SABIC's quarterly profit drops 85% on lower sales prices | Reuters
Saudi Basic Industries Corp (SABIC) (2010.SE), one of the world's biggest petrochemical companies, said on Thursday its second-quarter net profit slumped 85% on lower average sales prices.
The company posted net income of 1.18 billion riyals ($314.6 million) in the three months to June 30, compared with 7.93 billion riyals a year earlier.
"The global economy is continuously slowing down as a result of tightening monetary policies to confront inflation, leading to weaker demand and a decrease in the average selling prices of the company's products as well as lower quantities sold," SABIC said in its earnings release.
SABIC's earnings are closely related to oil prices and global economic growth as its products - plastics, fertilisers and metals - are used extensively in construction, agriculture and industry, and in making consumer goods.
The company said it remains disciplined in managing its capital expenditures, estimating a $3.3 billion to $3.8 billion spend in 2023.
Despite current market challenges, the company said it aims to maintain a stable to growing dividend. The board in June approved a cash dividend distribution of 1.80 riyals per share for the first half of 2023.
Saudi Basic Industries Corp (SABIC) (2010.SE), one of the world's biggest petrochemical companies, said on Thursday its second-quarter net profit slumped 85% on lower average sales prices.
The company posted net income of 1.18 billion riyals ($314.6 million) in the three months to June 30, compared with 7.93 billion riyals a year earlier.
"The global economy is continuously slowing down as a result of tightening monetary policies to confront inflation, leading to weaker demand and a decrease in the average selling prices of the company's products as well as lower quantities sold," SABIC said in its earnings release.
SABIC's earnings are closely related to oil prices and global economic growth as its products - plastics, fertilisers and metals - are used extensively in construction, agriculture and industry, and in making consumer goods.
The company said it remains disciplined in managing its capital expenditures, estimating a $3.3 billion to $3.8 billion spend in 2023.
Despite current market challenges, the company said it aims to maintain a stable to growing dividend. The board in June approved a cash dividend distribution of 1.80 riyals per share for the first half of 2023.