Kuwait's economic recovery faces 'substantial' risks - IMF | Reuters
Kuwait's economic recovery is ongoing but risks to the oil producer's outlook "remain substantial" and gridlock between the government and parliament continues to delay reforms, the International Monetary Fund said on Wednesday.
The IMF's executive board, in an assessment following "Article IV" consultations with the Kuwaiti government, said real gross domestic product (GDP) is seen slowing to just 0.1% this year after 8.2% growth in 2022, mainly due to oil production cuts.
Kuwait is part of OPEC+, a producer group comprising the Saudi-led Organization of the Petroleum Exporting Countries and Russia-led allies, which has been cutting crude output since November to prop up prices.
The IMF in May had forecast real GDP to slow to 0.9%. Despite the expected stagnation, the IMF on Wednesday forecast real non-oil GDP growth at 3.8% this year from 4% in 2022.
"Given Kuwait's large fiscal and external buffers, it can undertake needed reforms from a position of strength. However, political gridlock between the government and Parliament could continue to delay reforms," the IMF said.
Wednesday, 23 August 2023
#Qatar Wealth Fund Invests $1 Billion in Mukesh Ambani’s Reliance Retail Ventures - Bloomberg
Qatar Wealth Fund Invests $1 Billion in Mukesh Ambani’s Reliance Retail Ventures - Bloomberg
Qatar’s sovereign wealth fund invested 82.78 billion rupees ($1 billion) into India’s biggest brick-and-mortar retailer as Asia’s richest man Mukesh Ambani looks to rapidly expand its operations and take on global competitors including Amazon.com Inc. and Walmart Inc.
The Qatar Investment Authority’s purchase translates into a stake of 0.99% in Ambani’s Reliance Retail Ventures Ltd. “on a fully-diluted basis,” the Mumbai-based firm said in a statement on Wednesday, adding that it values the company at $100 billion.
The deal comes as Ambani’s conglomerate is also considering a public listing for Reliance Retail and has started buying back shares in the unit and giving them to their employees as stock options. The subsidiary headed by Ambani’s daughter, Isha, has undertaken a swath of acquisitions as it challenges global rivals who are trying hard to establish a toe hold in India’s highly competitive retail sector dominated by mom-and-pop stores.
Isha Ambani called the QIA’s investment “a strong endorsement” of India’s economy and Reliance’s retail business.
Qatar’s sovereign wealth fund invested 82.78 billion rupees ($1 billion) into India’s biggest brick-and-mortar retailer as Asia’s richest man Mukesh Ambani looks to rapidly expand its operations and take on global competitors including Amazon.com Inc. and Walmart Inc.
The Qatar Investment Authority’s purchase translates into a stake of 0.99% in Ambani’s Reliance Retail Ventures Ltd. “on a fully-diluted basis,” the Mumbai-based firm said in a statement on Wednesday, adding that it values the company at $100 billion.
The deal comes as Ambani’s conglomerate is also considering a public listing for Reliance Retail and has started buying back shares in the unit and giving them to their employees as stock options. The subsidiary headed by Ambani’s daughter, Isha, has undertaken a swath of acquisitions as it challenges global rivals who are trying hard to establish a toe hold in India’s highly competitive retail sector dominated by mom-and-pop stores.
Isha Ambani called the QIA’s investment “a strong endorsement” of India’s economy and Reliance’s retail business.
Most Gulf markets in red on economic worries | Reuters
Most Gulf markets in red on economic worries | Reuters
Most stock markets in the Gulf ended lower on Wednesday as gloomy global manufacturing data grabbed attention ahead of an annual meeting of central bankers at Jackson Hole in the United States.
Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday gave a steer on the health of economies across the world.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.1% lower, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 0.9%.
Separately, the kingdom's Jadwa Investment has acquired a 35% equity stake in Kuwait's Gissah Perfumes Company, which is slated for a listing in Riyadh, the companies said in a joint statement on Wednesday.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.
Oil prices - a catalyst for the Gulf's financial markets - were slightly lower with Brent crude futures dropping 0.75% to $83.75 per barrel.
The Qatari index (.QSI) dropped 1.2%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.2%.
Markets are also looking for hints on the outlook for interest rates when Federal Reserve officials and policymakers from the European Central Bank (ECB), the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, on Thursday.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Dubai's main share index (.DFMGI), however, bucked the trend to finish 0.8% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.5%.
Most stock markets in the Gulf ended lower on Wednesday as gloomy global manufacturing data grabbed attention ahead of an annual meeting of central bankers at Jackson Hole in the United States.
Manufacturing data from a host of purchasing managers' index (PMI) surveys on Wednesday gave a steer on the health of economies across the world.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.1% lower, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 0.9%.
Separately, the kingdom's Jadwa Investment has acquired a 35% equity stake in Kuwait's Gissah Perfumes Company, which is slated for a listing in Riyadh, the companies said in a joint statement on Wednesday.
In Abu Dhabi, the index (.FTFADGI) dropped 0.4%.
Oil prices - a catalyst for the Gulf's financial markets - were slightly lower with Brent crude futures dropping 0.75% to $83.75 per barrel.
The Qatari index (.QSI) dropped 1.2%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 1.2%.
Markets are also looking for hints on the outlook for interest rates when Federal Reserve officials and policymakers from the European Central Bank (ECB), the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, on Thursday.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate moves, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Dubai's main share index (.DFMGI), however, bucked the trend to finish 0.8% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30) lost 0.5%.
#SaudiArabia’s Jadwa Buys 35% of Kuwait’s Gissah Perfumes Ahead of IPO - Bloomberg
Saudi Arabia’s Jadwa Buys 35% of Kuwait’s Gissah Perfumes Ahead of IPO - Bloomberg
Saudi private equity firm Jadwa Investment bought a 35% stake in Gissah Perfumes Co. ahead of the fragrance company’s planned initial public offering.
The investment, through Jadwa’s Retail Opportunities Fund, will enable Gissah to further solidify its market position and enhance business performance, Gissah Chief Executive Officer Bashar Al-Ameer said in a statement.
The firm, founded in Kuwait, plans to relocate to Saudi Arabia ahead of an IPO on the kingdom’s main market. It currently operates from 80 stores in 25 cities across Saudi Arabia, Kuwait, the United Arab Emirates and Bahrain.
Jadwa, which manages total client assets of about $20 billion, plans to invest about $532 million in new private equity deals and list stakes in three of its portfolio companies by 2025, Bloomberg News reported in December. It offloaded a 30% holding in Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, later that month.
Saudi private equity firm Jadwa Investment bought a 35% stake in Gissah Perfumes Co. ahead of the fragrance company’s planned initial public offering.
The investment, through Jadwa’s Retail Opportunities Fund, will enable Gissah to further solidify its market position and enhance business performance, Gissah Chief Executive Officer Bashar Al-Ameer said in a statement.
The firm, founded in Kuwait, plans to relocate to Saudi Arabia ahead of an IPO on the kingdom’s main market. It currently operates from 80 stores in 25 cities across Saudi Arabia, Kuwait, the United Arab Emirates and Bahrain.
Jadwa, which manages total client assets of about $20 billion, plans to invest about $532 million in new private equity deals and list stakes in three of its portfolio companies by 2025, Bloomberg News reported in December. It offloaded a 30% holding in Saudi Aramco Base Oil Co., a refining unit of the state-owned oil producer, later that month.
Watch Shuaa AM's Chandrasekaran on Gulf Markets - Bloomberg video
Watch Shuaa AM's Chandrasekaran on Gulf Markets - Bloomberg
Aarthi Chandrasekaran, Director, Investments at Shuaa Asset Management discusses her fixed income outlook and why it would be a game-changer if Saudi Arabia and the UAE were to join the BRICS group. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
Aarthi Chandrasekaran, Director, Investments at Shuaa Asset Management discusses her fixed income outlook and why it would be a game-changer if Saudi Arabia and the UAE were to join the BRICS group. She speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
Major Gulf markets mixed ahead of Jackson Hole meet | Reuters
Major Gulf markets mixed ahead of Jackson Hole meet | Reuters
Major stock markets in the Gulf were mixed in early trade on Wednesday ahead of an annual meeting of central bankers, with the Qatari index falling for a third session.
Markets await hints on the outlook for interest rates when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for an annual meeting later this week.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, helped by a 1.3% rise in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Dubai's main share index (.DFMGI) gained 0.8%, led by a 1.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1.8% increase in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
Separately, Abu Dhabi's sovereign wealth fund, one of the world's largest, will double its investment in an Australian real estate private credit vehicle, the fund's manager said on Tuesday, as traditional lenders grow wary about the sector.
The Qatari benchmark (.QSI) declined 0.2%, on course to fall for a third session, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 2%.
On the other hand, IT services firm Meeza (MEZA.QA) jumped as much as 17.1% in debut trade from its initial public offering of 2.17 riyals ($0.5954).
Major stock markets in the Gulf were mixed in early trade on Wednesday ahead of an annual meeting of central bankers, with the Qatari index falling for a third session.
Markets await hints on the outlook for interest rates when Federal Reserve officials and policy makers from the European Central Bank, the Bank of England and the Bank of Japan head to Jackson Hole, Wyoming, for an annual meeting later this week.
Oil and gas exporting countries in the Gulf tend to follow the Fed's rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, helped by a 1.3% rise in petrochemical maker Saudi Basic Industries Corp (2010.SE).
Dubai's main share index (.DFMGI) gained 0.8%, led by a 1.9% rise in blue-chip developer Emaar Properties (EMAR.DU) and a 1.8% increase in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
Separately, Abu Dhabi's sovereign wealth fund, one of the world's largest, will double its investment in an Australian real estate private credit vehicle, the fund's manager said on Tuesday, as traditional lenders grow wary about the sector.
The Qatari benchmark (.QSI) declined 0.2%, on course to fall for a third session, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar (IQCD.QA), which was down 2%.
On the other hand, IT services firm Meeza (MEZA.QA) jumped as much as 17.1% in debut trade from its initial public offering of 2.17 riyals ($0.5954).