GCC's asset management market to hit $500bn in onshore assets by 2026
Assets under management in the GCC are projected to expand above the global average to hit about $500 billion in onshore assets by 2026, from $400 billion at the end of 2022, a report has shown.
More than 70 per cent of regional private wealth is in offshore accounts, which are typically favoured by high-net-worth individuals (HNWIs) and family offices, but this trend is shifting, according to estimates by Strategy& Middle East, a unit of global consultancy PwC.
“This projected growth underscores the potential of the GCC asset management industry amidst global economic challenges,” said Jorge Camarate, partner at Strategy& Middle East and leader of the company’s financial services practice.
“Despite the region's preference for offshore investing, increasing product sophistication and supportive regulatory initiatives are making onshore investment more appealing.”
The GCC asset management industry's projected growth comes at a time of global macroeconomic headwinds.
Rising interest rates, tighter liquidity, the fallout from high-profile bank failures and increased competition for environmental, social and governance-related investments are among the factors pushing the industry to adapt quickly.
Assets under management in the Middle East increased by $100 billion to $1.3 trillion in 2022 despite global economic challenges, management consultancy Boston Consulting Group said in a report in June.
Tuesday 29 August 2023
Gulf stock markets end mixed as China boost lingers, oil volatile | Reuters
Gulf stock markets end mixed as China boost lingers, oil volatile | Reuters
Stock markets in the Gulf ended mixed on Tuesday with China's efforts to shore up its battered markets supporting sentiment, while volatile energy markets weighed.
Beijing introduced a slew of measures over the weekend to bolster the market, such as halving stock-trading stamp duty, loosening margin loan rules and putting the brakes on new listings.
This has offered some respite to equity markets, rattled this month by fresh strain in China's property market and renewed selling in the U.S. Treasury market.
In Abu Dhabi, the index (.FTFADGI) added 0.1%, helped by a 0.1% increase in conglomerate International Holding (IHC.AD).
Insurer Centene (CNC.N) said on Monday it will sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion, including debt, as the U.S. health insurer refocuses on its core business.
PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company also owning a stake. Both ADQ and IHC are chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and brother of UAE ruler Sheikh Mohammed bin Zayed.
The Qatari benchmark (.QSI) gained 0.3%, with Qatar Islamic Bank (QISB.QA) advancing 0.9% and petrochemicals maker Industries Qatar (IQCD.QA) finishing 0.6% higher.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.2% lower, weighed down by a 1.3% fall in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - crept up as supply concerns from a hurricane hurtling towards the U.S. Gulf Coast limited bearish sentiment about the possibility of another interest rate hike by the Federal Reserve undercutting demand.
Dubai's main share index (.DFMGI) retreated 0.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.2%, with Madinet Masr (MASR.CA) rising 0.6%.
Egypt hopes its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.
Stock markets in the Gulf ended mixed on Tuesday with China's efforts to shore up its battered markets supporting sentiment, while volatile energy markets weighed.
Beijing introduced a slew of measures over the weekend to bolster the market, such as halving stock-trading stamp duty, loosening margin loan rules and putting the brakes on new listings.
This has offered some respite to equity markets, rattled this month by fresh strain in China's property market and renewed selling in the U.S. Treasury market.
In Abu Dhabi, the index (.FTFADGI) added 0.1%, helped by a 0.1% increase in conglomerate International Holding (IHC.AD).
Insurer Centene (CNC.N) said on Monday it will sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion, including debt, as the U.S. health insurer refocuses on its core business.
PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company also owning a stake. Both ADQ and IHC are chaired by Sheikh Tahnoun bin Zayed Al Nahyan, the national security adviser and brother of UAE ruler Sheikh Mohammed bin Zayed.
The Qatari benchmark (.QSI) gained 0.3%, with Qatar Islamic Bank (QISB.QA) advancing 0.9% and petrochemicals maker Industries Qatar (IQCD.QA) finishing 0.6% higher.
Saudi Arabia's benchmark index (.TASI) gave up early gains to close 0.2% lower, weighed down by a 1.3% fall in oil giant Saudi Aramco (2222.SE).
Oil prices - a key catalyst for the Gulf's financial markets - crept up as supply concerns from a hurricane hurtling towards the U.S. Gulf Coast limited bearish sentiment about the possibility of another interest rate hike by the Federal Reserve undercutting demand.
Dubai's main share index (.DFMGI) retreated 0.4%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) gained 0.2%, with Madinet Masr (MASR.CA) rising 0.6%.
Egypt hopes its imminent inclusion in the BRICS bloc of developing nations will help ease its shortage of foreign currency and attract new investment, but analysts say it may take time before any benefits appear.
PureHealth buys UK hospital operator Circle in $1.2bn deal | Financial Times
PureHealth buys UK hospital operator Circle in $1.2bn deal | Financial Times
PureHealth has agreed to acquire Circle Health Group of the UK from US company Centene in a deal worth $1.2bn as the United Arab Emirates’ largest healthcare provider extends its international expansion ambitions.
PureHealth is owned by a consortium that includes Abu Dhabi state holding company ADQ and Alpha Dhabi, a listed company that is part of the conglomerate International Holding Company (IHC). They are controlled by the UAE’s powerful national security adviser, Sheikh Tahnoon bin Zayed al-Nahyan, who also chairs the emirate’s main sovereign wealth fund, the Abu Dhabi Investment Authority.
Circle operates the largest network of private hospitals in the UK with more than 50 sites across the country and about 8,200 employees. It has revenues of about $1.3bn.
“We are confident that it [the acquisition] will position us for continued growth and success,” said Hamad Al Ameri, chief executive of Alpha Dhabi.
#SaudiArabia’s Fuel Subsidies at $7,000 Per Person is Highest in G-20 - Bloomberg
Saudi Arabia’s Fuel Subsidies at $7,000 Per Person is Highest in G-20 - Bloomberg
Saudi Arabia’s total spending on fuel subsidies soared over the past two years, hitting the highest among the Group of 20 economies on a per capita basis.
The country spent almost $7,000 per person, equivalent to about 27% of economic output, across both explicit and implicit energy subsidies, according to a paper published by the International Monetary Fund.
Fossil fuel subsidies soared globally since 2020 to $7 trillion last year as governments took measures to protect consumers and businesses from a spike in prices following Russia’s invasion of Ukraine, according to the IMF paper. It estimated that cutting fossil fuel subsidies could help reduce carbon dioxide emissions, deaths from air pollution and boost government revenues.
“Fossil fuels in most countries are priced incorrectly,” Simon Black, Antung A. Liu, Ian Parry and Nate Vernon wrote in the IMF working paper. “Unfortunately, current prices are routinely set at levels that do not adequately reflect environmental damages and, in some cases, not even supply costs.”
Saudi Arabia’s total spending on fuel subsidies soared over the past two years, hitting the highest among the Group of 20 economies on a per capita basis.
The country spent almost $7,000 per person, equivalent to about 27% of economic output, across both explicit and implicit energy subsidies, according to a paper published by the International Monetary Fund.
Fossil fuel subsidies soared globally since 2020 to $7 trillion last year as governments took measures to protect consumers and businesses from a spike in prices following Russia’s invasion of Ukraine, according to the IMF paper. It estimated that cutting fossil fuel subsidies could help reduce carbon dioxide emissions, deaths from air pollution and boost government revenues.
“Fossil fuels in most countries are priced incorrectly,” Simon Black, Antung A. Liu, Ian Parry and Nate Vernon wrote in the IMF working paper. “Unfortunately, current prices are routinely set at levels that do not adequately reflect environmental damages and, in some cases, not even supply costs.”
#SaudiArabia Foreign Reserves Plunge by Most Since Pandemic to 2009 Low - Bloomberg
Saudi Arabia Foreign Reserves Plunge by Most Since Pandemic to 2009 Low - Bloomberg
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Saudi Arabia’s foreign reserves dropped by over $16 billion last month, in the sharpest decline since oil prices turned negative during the depths of the pandemic and the kingdom used its savings to invest in US stocks.
Net foreign assets fell to 1.53 trillion riyals ($407 billion) after increases in May and June, according to the central bank’s monthly report published on Monday. That’s taken them to the lowest since late 2009, and came as the kingdom slashed oil production in a bid to prop up prices.
“The net foreign asset position should improve in September, especially when the first performance-linked dividend distribution” arrives from Aramco, said Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC.
The kingdom’s effort this year to support crude prices with output curbs has left it with far smaller receipts from oil sales abroad. After earning a windfall of nearly $326 billion in 2022, Saudi Arabia is at risk of running a budget deficit again following its first surplus in almost a decade.
The country has been shifting its investment strategy over the past few years away from keeping most of its foreign assets with the central bank as it builds up hundreds of billions of dollars in sovereign funds including the Public Investment Fund and the National Development Fund.
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Saudi Arabia’s foreign reserves dropped by over $16 billion last month, in the sharpest decline since oil prices turned negative during the depths of the pandemic and the kingdom used its savings to invest in US stocks.
Net foreign assets fell to 1.53 trillion riyals ($407 billion) after increases in May and June, according to the central bank’s monthly report published on Monday. That’s taken them to the lowest since late 2009, and came as the kingdom slashed oil production in a bid to prop up prices.
“The net foreign asset position should improve in September, especially when the first performance-linked dividend distribution” arrives from Aramco, said Monica Malik, chief economist at Abu Dhabi Commercial Bank PJSC.
The kingdom’s effort this year to support crude prices with output curbs has left it with far smaller receipts from oil sales abroad. After earning a windfall of nearly $326 billion in 2022, Saudi Arabia is at risk of running a budget deficit again following its first surplus in almost a decade.
The country has been shifting its investment strategy over the past few years away from keeping most of its foreign assets with the central bank as it builds up hundreds of billions of dollars in sovereign funds including the Public Investment Fund and the National Development Fund.
Major Gulf markets edge higher; oil slips | Reuters
Major Gulf markets edge higher; oil slips | Reuters
Major stock markets in the Gulf edged higher in early trade on Tuesday ahead of U.S. labour and manufacturing data due later in the week, while volatile energy prices limited gains.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.4%, as did Japan's Nikkei (.N225).
Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by a 2.8% jump in Jabal Omar Development Co (4250.SE) after the company obtained a licence from the Ministry of Tourism to operate the first tower of Jabal Omar Jumeirah Hotels.
On the other hand, oil giant Saudi Aramco (2222.SE) dropped 0.7%.
Oil prices - a key catalyst for the Gulf's financial markets - slipped as worries that further possible U.S. interest rate hikes could pull down demand outweighed concerns that a tropical storm off the U.S. Gulf Coast may impact supply.
Dubai's main share index (.DFMGI) gained 0.1%, with toll operator Salik Co (SALIK.DU) putting on 0.9%.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Separately, insurer Centene (CNC.N) said on Monday it would sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion including debt, as the U.S. health insurer refocuses on its core business.
PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company (IHC) (IHC.AD) also holding a stake. Shares of IHC were flat.
The Qatari benchmark (.QSI) was up 0.1%, with Qatar Islamic Bank (QISB.QA) gaining 0.5%.
Major stock markets in the Gulf edged higher in early trade on Tuesday ahead of U.S. labour and manufacturing data due later in the week, while volatile energy prices limited gains.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.4%, as did Japan's Nikkei (.N225).
Saudi Arabia's benchmark index (.TASI) added 0.1%, helped by a 2.8% jump in Jabal Omar Development Co (4250.SE) after the company obtained a licence from the Ministry of Tourism to operate the first tower of Jabal Omar Jumeirah Hotels.
On the other hand, oil giant Saudi Aramco (2222.SE) dropped 0.7%.
Oil prices - a key catalyst for the Gulf's financial markets - slipped as worries that further possible U.S. interest rate hikes could pull down demand outweighed concerns that a tropical storm off the U.S. Gulf Coast may impact supply.
Dubai's main share index (.DFMGI) gained 0.1%, with toll operator Salik Co (SALIK.DU) putting on 0.9%.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Separately, insurer Centene (CNC.N) said on Monday it would sell British hospital operator Circle Health Group to United Arab Emirates-based PureHealth for about $1.2 billion including debt, as the U.S. health insurer refocuses on its core business.
PureHealth is majority-owned by Abu Dhabi investment fund ADQ, with International Holding Company (IHC) (IHC.AD) also holding a stake. Shares of IHC were flat.
The Qatari benchmark (.QSI) was up 0.1%, with Qatar Islamic Bank (QISB.QA) gaining 0.5%.