Saudi auto rental firm Lumi to float 30% in IPO | Reuters
Saudi Arabia's Lumi, one of the largest auto rental firms in the kingdom, on Thursday announced plans to proceed with an initial public offering on the Saudi Exchange.
Riyadh-based Lumi said it expects to issue 16.5 million existing shares, resulting in a free float of 30%.
Sources told Reuters in April that Lumi had hired Saudi Fransi Capital (1050.SE) as financial advisor and bookrunner and EFG Hermes (HRHO.CA) as bookrunner to arrange the sale of 30% of its shares.
Lumi confirmed those appointments and said Riyad Bank, Banque Saudi Fransi and Saudi National Bank have been appointed as receiving banks.
The share sale is set to be a litmus test for the Gulf IPO market after a slow summer period.
Issuers from the Middle East and North Africa raised more than $5 billion in the first half of this year, consultancy EY said in a report earlier this month, with the bulk coming from Saudi Arabia and the United Arab Emirates.
Thursday, 24 August 2023
Most Gulf markets in black ahead of Powell's speech | Reuters
Most Gulf markets in black ahead of Powell's speech | Reuters
Most stock markets in the Gulf ended higher on Thursday, with the Saudi index snapping three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.
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.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with oil giant Saudi Aramco (2222.SE) gaining 0.4% and Saudi National Bank (1180.SE) finishing 1% higher.
The Saudi stock market stabilized to a certain extent and traded sideways this week although uncertainty gripped energy markets, said Hani Abuagla, senior market analyst at XTB MENA.
"The main index could be exposed to new price corrections next week if oil prices decline again."
Prices of oil — a catalyst for the Gulf's financial markets — steadied after earlier declines caused by disappointing economic data from key economies, with investors awaiting Powell's speech for clues.
Dubai's main share index (.DFMGI) added 0.2%, helped by a 1.6% rise in Emirates Central Cooling Systems Corp (EMPOWER.DU).
In Abu Dhabi, the index (.FTFADGI) gained 0.4%.
The Qatari benchmark (.QSI) closed 0.3% higher, with petrochemical maker Industries Qatar (IQCD.QA) advancing 1.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 0.4%.
The Egyptian bourse continued to find resistance near this year's peak. Decreasing trading volumes could create downside risks in the next trading sessions, said Abuagla.
Most stock markets in the Gulf ended higher on Thursday, with the Saudi index snapping three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.
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.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, with oil giant Saudi Aramco (2222.SE) gaining 0.4% and Saudi National Bank (1180.SE) finishing 1% higher.
The Saudi stock market stabilized to a certain extent and traded sideways this week although uncertainty gripped energy markets, said Hani Abuagla, senior market analyst at XTB MENA.
"The main index could be exposed to new price corrections next week if oil prices decline again."
Prices of oil — a catalyst for the Gulf's financial markets — steadied after earlier declines caused by disappointing economic data from key economies, with investors awaiting Powell's speech for clues.
Dubai's main share index (.DFMGI) added 0.2%, helped by a 1.6% rise in Emirates Central Cooling Systems Corp (EMPOWER.DU).
In Abu Dhabi, the index (.FTFADGI) gained 0.4%.
The Qatari benchmark (.QSI) closed 0.3% higher, with petrochemical maker Industries Qatar (IQCD.QA) advancing 1.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) climbed 0.4%.
The Egyptian bourse continued to find resistance near this year's peak. Decreasing trading volumes could create downside risks in the next trading sessions, said Abuagla.
#SaudiArabia eyes world stage after BRICS invitation | Reuters
Saudi Arabia eyes world stage after BRICS invitation | Reuters
Oil power Saudi Arabia's entry to the BRICS group of nations highlights its ambitious drive to become a heavyweight on the global stage, creating a counter to its decades-old alliance with the United States, once seen as ironclad.
The kingdom anticipates more cooperation with BRICS nations, its foreign minister said on Thursday, after the group invited Saudi Arabia, United Arab Emirates, Iran, Egypt and Argentina to join.
"We look forward to develop this cooperation to create new developmental and economic opportunities and elevate our relationship to the aspired level," Prince Faisal bin Farhan told a BRICS summit.
Saudi Arabia, one of the most powerful and influential Arab states, and its neighbour the UAE, have increasingly pursued their own paths after concerns that the U.S. is less committed to the strategic region's security.
Oil power Saudi Arabia's entry to the BRICS group of nations highlights its ambitious drive to become a heavyweight on the global stage, creating a counter to its decades-old alliance with the United States, once seen as ironclad.
The kingdom anticipates more cooperation with BRICS nations, its foreign minister said on Thursday, after the group invited Saudi Arabia, United Arab Emirates, Iran, Egypt and Argentina to join.
"We look forward to develop this cooperation to create new developmental and economic opportunities and elevate our relationship to the aspired level," Prince Faisal bin Farhan told a BRICS summit.
Saudi Arabia, one of the most powerful and influential Arab states, and its neighbour the UAE, have increasingly pursued their own paths after concerns that the U.S. is less committed to the strategic region's security.
Covestro investors press company to enter talks with ADNOC | Reuters
Covestro investors press company to enter talks with ADNOC | Reuters
Germany's Covestro (1COV.DE) should engage in formal takeover talks with Abu Dhabi National Oil Co (ADNOC) in the interest of its shareholders, two top-15 investors of the plastics and chemicals maker told Reuters.
ADNOC, which is trying to diversify and develop its downstream and renewable energy operations, made a non-binding offer for Covestro of 55 euros per share in June, which was rejected, according to press reports.
Earlier this month, ADNOC verbally signalled to Covestro, which has not officially commented on the takeover approach, that it could raise its informal offer to 60 euros per share conditional on the German company entering formal talks, Reuters reported.
Arne Rautenberg, fund manager at Union Investment, said management should take the next step to enter formal discussions within days to avoid further speculation and market uncertainty.
Germany's Covestro (1COV.DE) should engage in formal takeover talks with Abu Dhabi National Oil Co (ADNOC) in the interest of its shareholders, two top-15 investors of the plastics and chemicals maker told Reuters.
ADNOC, which is trying to diversify and develop its downstream and renewable energy operations, made a non-binding offer for Covestro of 55 euros per share in June, which was rejected, according to press reports.
Earlier this month, ADNOC verbally signalled to Covestro, which has not officially commented on the takeover approach, that it could raise its informal offer to 60 euros per share conditional on the German company entering formal talks, Reuters reported.
Arne Rautenberg, fund manager at Union Investment, said management should take the next step to enter formal discussions within days to avoid further speculation and market uncertainty.
Watch Emirates NBD's Bell on #Dubai's Economy, Oil Outlook - Bloomberg video
Watch Emirates NBD's Bell on Dubai's Economy, Oil Outlook - Bloomberg
Edward Bell, Senior Director of Market Economics at Emirates NBD, discusses his regional outlook. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
Edward Bell, Senior Director of Market Economics at Emirates NBD, discusses his regional outlook. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East and Africa". (Source: Bloomberg)
#UAE's four largest banks post profit rise on interest income boost and economic momentum
UAE's four largest banks post profit rise on interest income boost and economic momentum
Profits of the four largest banks in the UAE grew sharply in the first half of this year, boosted by rising interest rates and the strong growth momentum in the Arab world’s second-largest economy, Moody’s Investors Service has said.
The four largest banks – First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank reported a combined net profit of $7.4 billion, up from $4.4 billion for the same period of 2022, the rating agency said in a report on Wednesday.
The combined net interest income of the lenders, which accounted for 77 per cent of total banking assets in the UAE as of March 2023, jumped 37 per cent annually.
“Interest income growth outweighed funding cost growth, as low-cost current and savings accounts remained a big contributor to the banks' funding, driving net interest margins (NIM) up to 2.4 per cent for the first half of 2023, from 1.9 per cent a year earlier,” Moody’s analysts, led by Francesca Paolino, said.
Profits of the four largest banks in the UAE grew sharply in the first half of this year, boosted by rising interest rates and the strong growth momentum in the Arab world’s second-largest economy, Moody’s Investors Service has said.
The four largest banks – First Abu Dhabi Bank, Emirates NBD, Abu Dhabi Commercial Bank and Dubai Islamic Bank reported a combined net profit of $7.4 billion, up from $4.4 billion for the same period of 2022, the rating agency said in a report on Wednesday.
The combined net interest income of the lenders, which accounted for 77 per cent of total banking assets in the UAE as of March 2023, jumped 37 per cent annually.
“Interest income growth outweighed funding cost growth, as low-cost current and savings accounts remained a big contributor to the banks' funding, driving net interest margins (NIM) up to 2.4 per cent for the first half of 2023, from 1.9 per cent a year earlier,” Moody’s analysts, led by Francesca Paolino, said.
Major Gulf markets rise ahead of Powell's speech | Reuters
Major Gulf markets rise ahead of Powell's speech | Reuters
Major stock markets in the Gulf rose in early trade on Thursday, with the Saudi index on course to snap three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.
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.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, and was on course to snap a three-day losing streak, with Bupa Arabia for Cooperative Insurance Co (8210.SE) advancing 3.3%.
Dubai's main share index (.DFMGI) gained 0.2%, with top lender Emirates NBD (ENBD.DU) gaining 1.2% and a 0.9% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFDGI) added 0.3%.
Separately, the BRICS group of nations has decided to invite six countries including Iran, Saudi Arabia and the United Arab Emirates to become new members of the bloc, South African President Cyril Ramaphosa said on Thursday.
UAE's President Mohammed bin Zayed said he appreciated the inclusion of his country as a member of BRICS, and described it as an "important group."
The Qatari benchmark (.QSI) added 0.4%, with most stocks on the index rising, including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was up 1%.
Qatar Investment Authority will invest $1 billion for a 1% stake in India's Reliance Retail Ventures, the retail arm of Reliance Industries (RELI.NS), nearly doubling its valuation to $100 billion from its last funding round in 2020.
Major stock markets in the Gulf rose in early trade on Thursday, with the Saudi index on course to snap three sessions of losses, ahead of a gathering of global central bankers in Jackson Hole.
A round of soft manufacturing surveys had revived hopes central banks were done with policy tightening, though that might change depending on Federal Reserve Chair Jerome Powell's speech at the annual summit in Wyoming on Friday.
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.
Saudi Arabia's benchmark index (.TASI) gained 0.4%, and was on course to snap a three-day losing streak, with Bupa Arabia for Cooperative Insurance Co (8210.SE) advancing 3.3%.
Dubai's main share index (.DFMGI) gained 0.2%, with top lender Emirates NBD (ENBD.DU) gaining 1.2% and a 0.9% increase in sharia-compliant lender Dubai Islamic Bank (DISB.DU).
In Abu Dhabi, the index (.FTFDGI) added 0.3%.
Separately, the BRICS group of nations has decided to invite six countries including Iran, Saudi Arabia and the United Arab Emirates to become new members of the bloc, South African President Cyril Ramaphosa said on Thursday.
UAE's President Mohammed bin Zayed said he appreciated the inclusion of his country as a member of BRICS, and described it as an "important group."
The Qatari benchmark (.QSI) added 0.4%, with most stocks on the index rising, including the Gulf's biggest lender Qatar National Bank (QNBK.QA), which was up 1%.
Qatar Investment Authority will invest $1 billion for a 1% stake in India's Reliance Retail Ventures, the retail arm of Reliance Industries (RELI.NS), nearly doubling its valuation to $100 billion from its last funding round in 2020.
BRICS Asks #SaudiArabia, #Iran, #UAE, Egypt, Argentina, Ethiopia to Join Bloc - Bloomberg
BRICS Asks Saudi Arabia, Iran, UAE, Egypt, Argentina, Ethiopia to Join Bloc - Bloomberg
Major emerging market nations invited top oil exporter Saudi Arabia, Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates to join their bloc in a push to expand its global influence.
Leaders from Brazil, Russia, India, China and South Africa agreed to expand their BRICS group from Jan. 1 at a summit being held this week in Johannesburg, South African President Cyril Ramaphosa said on Thursday. It will be the first expansion since 2010.
“We have consensus on the first phase of this expansion process and other phases will follow,” Ramaphosa said, sitting alongside other leaders from the group.
The inclusion of Saudi Arabia, the world’s largest oil exporter, along with Iran, the UAE and Brazil, would mean the group brings together several of the largest energy producers with the developing world’s largest consumers, giving it outsized economic clout. With most of the world’s energy trade taking place in dollars, the expansion also enhances the bloc’s ability to push more trade to alternative currencies.
An expanded BRICS would also mean more say for the group in world affairs and may lead to a different type of global economy, according to Bloomberg Economics. That’s because in comparison to the Group of Seven, the BRICS are less market-oriented.
Major emerging market nations invited top oil exporter Saudi Arabia, Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates to join their bloc in a push to expand its global influence.
Leaders from Brazil, Russia, India, China and South Africa agreed to expand their BRICS group from Jan. 1 at a summit being held this week in Johannesburg, South African President Cyril Ramaphosa said on Thursday. It will be the first expansion since 2010.
“We have consensus on the first phase of this expansion process and other phases will follow,” Ramaphosa said, sitting alongside other leaders from the group.
The inclusion of Saudi Arabia, the world’s largest oil exporter, along with Iran, the UAE and Brazil, would mean the group brings together several of the largest energy producers with the developing world’s largest consumers, giving it outsized economic clout. With most of the world’s energy trade taking place in dollars, the expansion also enhances the bloc’s ability to push more trade to alternative currencies.
An expanded BRICS would also mean more say for the group in world affairs and may lead to a different type of global economy, according to Bloomberg Economics. That’s because in comparison to the Group of Seven, the BRICS are less market-oriented.
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