Saudi Wealth Fund Takes $15.6 Billion Hit From SoftBank and Tech - Bloomberg
Saudi Arabia’s sovereign wealth fund reported a $15.6 billion comprehensive loss for 2022 after the value of its investments in SoftBank Vision Fund plunged and other tech ventures were hit by a market downturn.
The Public Investment Fund, or PIF, made income of $25.4 billion the year before, according to an annual financial report published Sunday.
The PIF, which is chaired by Crown Prince Mohammed bin Salman, significantly increased the proportion of its assets dedicated to Saudi stocks last year, from 24% to 32%. It also reduced from 20% to 10% the portion put toward International Strategic Assets, a portfolio which includes English football club Newcastle United FC and a Blackstone Group LP fund investing in US infrastructure.
The growth in local-stock investments was largely propelled by a transfer of 4% of energy giant Saudi Aramco to the PIF in February 2022. That stake is worth around $80 billion.
The PIF is a key part of the government’s push to diversify from oil. The crown prince is using it to invest tens of billions of dollars in everything from tourism to electric-vehicle and sports projects in the kingdom.
Sunday, 6 August 2023
#Dubai property developer Damac to buy London office space for first time | Financial Times
Dubai property developer Damac to buy London office space for first time | Financial Times
Dubai-based property developer Damac plans to buy London office space for the first time in a bet the struggling market will bounce back.
Dubai-based property developer Damac plans to buy London office space for the first time in a bet the struggling market will bounce back.
The luxury group, known for developing Donald Trump’s golf course in Dubai, aims to snap up the offices at bargain prices and turn them into plush places to work that meet ESG standards.
“London is still a cosmopolitan city,” Damac chair Hussain Sajwani told the Financial Times.
“Demand is there if you find the right asset, the right price, fix it, change the tenant mix, make it more friendly environmentally and push it to a higher end.”
Sajwani did not disclose how much he was planning to spend overall, but said he would look at property on a case-by-case basis with the intention of paying £100mn or £500mn per office, depending on location.
The company will target prime areas, including Mayfair, Victoria and Canary Wharf and favours locations where planning permits are easier to secure.
#Qatar stock market ends higher, #Saudi extends losses | Reuters
Qatar stock market ends higher, Saudi extends losses | Reuters
Qatar stock market closed higher on Sunday in response to rising oil prices amid supply cuts by top producers, while the Saudi index ended lower on weaker corporate earnings.
Oil prices - a key catalyst for the Gulf's financial markets - rose on Friday and notched a sixth straight week of gains as investors were optimistic that healthy demand and supply cuts will keep prices buoyant.
Saudi Arabia on Thursday extended a voluntary oil production cut of 1 million barrels per day to the end of September. Russia has also elected to reduce its oil exports by 300,000 barrels per day next month.
The Qatari Stock index (.QSI) advanced 0.2%, ending two sessions of losses, with Baladna (BLDN.QA) climbing 3% and Qatar Fuel (QFLS.QA) gaining 1%.
The index heavyweight Islamic banks Qatar Islamic Bank (QISB.QA) and Qatar International Islamic Bank (QIIB.QA) added 2.2% and 1.1% respectively.
Saudi Arabia's benchmark index (.TASI) continued its losses for a seventh consecutive session, ending 0.2% lower, with Savola Group (2050.SE) dropping 5.5% and Halwani Brothers (6001.SE) plunging 8.9%.
The food products distributor Halwani reported higher losses in second quarter compared to a year earlier.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.4%, snapping three-session losses with all sectors in the green.
The index was lifted by a 11.3% jump in Misr El Gadida Housing (HELI.CA) and a 4.2% rise in El Sewedy Electric (SWDY.CA).
Qatar stock market closed higher on Sunday in response to rising oil prices amid supply cuts by top producers, while the Saudi index ended lower on weaker corporate earnings.
Oil prices - a key catalyst for the Gulf's financial markets - rose on Friday and notched a sixth straight week of gains as investors were optimistic that healthy demand and supply cuts will keep prices buoyant.
Saudi Arabia on Thursday extended a voluntary oil production cut of 1 million barrels per day to the end of September. Russia has also elected to reduce its oil exports by 300,000 barrels per day next month.
The Qatari Stock index (.QSI) advanced 0.2%, ending two sessions of losses, with Baladna (BLDN.QA) climbing 3% and Qatar Fuel (QFLS.QA) gaining 1%.
The index heavyweight Islamic banks Qatar Islamic Bank (QISB.QA) and Qatar International Islamic Bank (QIIB.QA) added 2.2% and 1.1% respectively.
Saudi Arabia's benchmark index (.TASI) continued its losses for a seventh consecutive session, ending 0.2% lower, with Savola Group (2050.SE) dropping 5.5% and Halwani Brothers (6001.SE) plunging 8.9%.
The food products distributor Halwani reported higher losses in second quarter compared to a year earlier.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 1.4%, snapping three-session losses with all sectors in the green.
The index was lifted by a 11.3% jump in Misr El Gadida Housing (HELI.CA) and a 4.2% rise in El Sewedy Electric (SWDY.CA).
#Saudi Arabian Public Investment Fund says assets surpasses 2.23 trillion riyals in 2022 | Reuters
Saudi Arabian Public Investment Fund says assets surpasses 2.23 trillion riyals in 2022 | Reuters
Saudi Arabia's Public Investment Fund on Sunday released its annual report for 2022, which said its assets under management (AUM) surpassed 2.23 trillion riyals ($594.43 billion).
The kingdom's sovereign wealth fund reported an AUM of 1.98 trillion riyals for 2021.
The PIF said it generated a total shareholders' return of 8% and established 25 companies in 2022, and locally deployed 120 billion riyals in that year in strategic sectors.
The PIF said 23% of its AUM were international investments, while 68% were local investments and the remainder were treasury.
The fund said 17% of its assets were externally managed, while 83% were internally managed.
PIF is the chosen vehicle of Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, to drive an economic agenda aimed at cutting reliance on oil.
PIF said the ongoing expansion of its three subsidiary offices in London, New York and Hong Kong would support the fund's continued growth and "positioning PIF as the partner of choice for global investors".
Its sources of funding come from retained earnings from investments, capital injections from the government, government assets transferred to the fund and loans and debt instruments.
The fund raised $5.5 billion in February from a green bond sale, following its inaugural green bond that raised $3 billion in October.
In addition, it obtained a $17 billion loan in November from a group of 25 banks that will partly refinance a loan it took out in 2018.
The crown prince in February last year announced the transfer of 4% of shares in Saudi Aramco, worth $80 billion, to the PIF.
In April, there was a second transfer of 4% in Aramco shares, valued also around $80 billion, to PIF's subsidiary Sanabil Investments.
($1 = 3.7515 riyals)
Saudi Arabia's Public Investment Fund on Sunday released its annual report for 2022, which said its assets under management (AUM) surpassed 2.23 trillion riyals ($594.43 billion).
The kingdom's sovereign wealth fund reported an AUM of 1.98 trillion riyals for 2021.
The PIF said it generated a total shareholders' return of 8% and established 25 companies in 2022, and locally deployed 120 billion riyals in that year in strategic sectors.
The PIF said 23% of its AUM were international investments, while 68% were local investments and the remainder were treasury.
The fund said 17% of its assets were externally managed, while 83% were internally managed.
PIF is the chosen vehicle of Crown Prince Mohammed bin Salman, the kingdom's de facto ruler, to drive an economic agenda aimed at cutting reliance on oil.
PIF said the ongoing expansion of its three subsidiary offices in London, New York and Hong Kong would support the fund's continued growth and "positioning PIF as the partner of choice for global investors".
Its sources of funding come from retained earnings from investments, capital injections from the government, government assets transferred to the fund and loans and debt instruments.
The fund raised $5.5 billion in February from a green bond sale, following its inaugural green bond that raised $3 billion in October.
In addition, it obtained a $17 billion loan in November from a group of 25 banks that will partly refinance a loan it took out in 2018.
The crown prince in February last year announced the transfer of 4% of shares in Saudi Aramco, worth $80 billion, to the PIF.
In April, there was a second transfer of 4% in Aramco shares, valued also around $80 billion, to PIF's subsidiary Sanabil Investments.
($1 = 3.7515 riyals)