Dubai rises on higher oil prices; FAB drags on Abu Dhabi | Reuters
Stock markets in Dubai rose on Friday as upbeat demand growth forecasts from OPEC and the International Energy Agency (IEA) lifted oil prices, while lender FAB weighed on Abu Dhabi's index.
The IEA warned that global inventories could fall sharply over the rest of 2023, after the Organization of Petroleum Exporting Countries on Thursday said it expects global oil demand to rise by 2.25 million bpd in 2024, compared with growth of 2.44 million bpd this year.
Brent crude was up 57 cents, or 0.7%, at $86.96 a barrel at 1206 GMT.
In Dubai, the main share index (.DFMGI) added 0.4% after falling for four consecutive sessions. Emirates NBD Bank (ENBD.DU), Dubai's largest lender, rose more than 3% while toll operator Salik Company (SALIK.DU) was up 2% after reporting second quarter earnings.
Emaar Properties (EMAR.DU), Dubai's largest listed real estate firm, was also up more than 0.7% the day after reporting second-quarter earnings.
The Index fell 0.5% over the course of the week.
In Abu Dhabi, the benchmark index (.FTFADGI) dropped 0.3%, for a third negative session in a row, pressured by a 1.1% fall for the country's largest lender First Abu Dhabi Bank (FAB.AD) and a 1.6% drop in Alpha Dhabi Holding (ALPHADHABI.AD).
The index was up 1% on the week.
Dubai's Shuaa seeks to double assets to $10bn in next five years
Shuaa Capital, an investment banking and asset management company, aims to double its assets under management to $10 billion in the next five years and is evaluating several investment deals across the broader GCC, its chief executive has said.
The company is looking at potential investment opportunities, particularly in Saudi Arabia and the UAE, the Arab world’s two largest economies, including deals in the real estate and hospitality sectors, Fawad Khan told The National in an interview.
The Dubai listed-investment manager is also looking at divestment options, including public listings, as well as partial exits through strategic investors, for its portfolio companies as it continues to evolve and reshape its asset base.
“We have a target when we look at our assets under management (AUMs) of building them back in the next five years to about 10 billion,” Mr Khan said.
“Significant growth” will come from the company’s assets managed under its umbrella of Incorporated Cell Company (ICC) fund structure, he said.
UAE’s economy to continue its robust performance in 2023: OPEC monthly report
The Organisation of the Petroleum Exporting Countries (OPEC) forecast that the UAE’s economy will continue its robust performance in 2023, after recording a growth of 7.9 percent year-on-year in 2022.
According to OPEC's Monthly Oil Market Report for August, this robust performance will be delivered through constant contributions from the non-oil sector, especially from tourism, leisure and real estate.
The report revealed that the country's Global Purchasing Managers’ Index (PMI) was almost unchanged in July, standing at 56, following 56.9 in June and compared to a level of 55.5 in May. This suggests that the expansionary trend will be maintained.
Meanwhile, the UAE's real estate market remains on an upward trajectory, the report further showed, with H1'23 seeing a substantial surge in overall property transactions. This played a role in driving up residential property prices in Dubai by 16.9 percent YoY as of June, as reported by REIDIN.
Finally, the Central Bank of the UAE (CBUAE) mirrored the 25 bp increase in interest rates implemented by the US Federal Reserve in July, putting the key-policy rate at 5.4 percent and resulting in a total rise of 525 bp in just over a year. The short-term interest rate is now approaching its highest level since before the global financial crisis.
Olam Group expects agricultural unit's Singapore-Saudi dual IPO by 2024 first half | Reuters
Singapore's Olam Group (OLAG.SI) said on Friday it is targeting the IPO of its agricultural unit by the first half of 2024, and the commodity trader reported an 88.8% fall in first-half profit on lower crop yield from its almond orchards in Australia.
The company said in May it did not expect the dual listing of Olam Agri in Singapore and Saudi Arabia to be completed in the first half of this year as initially planned.
The company previously said it plans to list its Olam Food Ingredients unit as part of a business overhaul. The listing will take place after Olam Agri's IPO, the company reiterated on Friday.
Olam Agri, that trades grains and animal feed, edible oils, rice and cotton, posted first-half earnings before interest and tax (EBIT) that fell 9%.
Olam Group, one of the world's biggest agricultural commodity traders, reported a profit attributable of S$48 million ($35.6 million) for the six months ended June 30, compared with S$429.1 million a year earlier.
