Middle East’s First SPAC ADC to Merge With United Printing & Publishing - Bloomberg
The first blank-check company to list in the Middle East inked a deal with Abu Dhabi-based United Printing & Publishing, a company that prints identification cards.
The transaction with ADC Acquisition Corp. will provide United Printing & Publishing with 1.1 billion dirhams ($300 million) of new cash from the blank-check firm as well as a 734 million-dirham private investment in public equity that the company plans to raise. The deal implies an enterprise value of 600 million dirham for the printing company.
Backed by Abu Dhabi’s wealth fund ADQ and Chimera Investments, ADC became the first special purpose acquisition company to list in the Middle East in May 2022. The move came after abysmal returns and tightening regulatory oversight caused SPAC issuance to crater in the US last year.
“As the region’s first SPAC merger process, this transaction marks a notable achievement for ADC,” Seif Fikry, chief executive officer of ADC, said in a statement. “We are confident that UPP represents an attractive platform, with strong and stable revenue.”
Tuesday, 19 September 2023
Oil prices ease after hitting 10-month highs as investors take profits | Reuters
Oil prices ease after hitting 10-month highs as investors take profits | Reuters
Oil prices rose to 10-month highs on Tuesday before easing, as investors took profits following three sessions of gains that followed extended production cuts from Saudi Arabia and Russia.
Global benchmark Brent crude futures settled 9 cents lower at $94.34 a barrel. Earlier, it hit a session peak of $95.96 a barrel, their highest since November.
U.S. West Texas Intermediate crude futures dropped 28 cents to $91.20 after earlier reaching $93.74 a barrel, also the highest since November.
Oil prices rose to 10-month highs on Tuesday before easing, as investors took profits following three sessions of gains that followed extended production cuts from Saudi Arabia and Russia.
Global benchmark Brent crude futures settled 9 cents lower at $94.34 a barrel. Earlier, it hit a session peak of $95.96 a barrel, their highest since November.
U.S. West Texas Intermediate crude futures dropped 28 cents to $91.20 after earlier reaching $93.74 a barrel, also the highest since November.
Most Gulf markets in black ahead of Fed's decision | Reuters
Most Gulf markets in black ahead of Fed's decision | Reuters
Most stock markets in the Gulf ended higher on Tuesday ahead of an interest rate decision by the Federal Reserve, while the Egyptian bourse finished at record high.
The U.S. Fed is expected to leave borrowing costs on hold at 5.25% to 5.5% on Wednesday. Traders will be on the lookout for clues about how long the Fed is likely to hold rates around current levels.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, ending two sessions of losses, with Alinma Bank (1150.SE) gaining 1.9% and Saudi Arabian Mining Company (1211.SE) jumping 4.9%.
The United States and Saudi Arabia are in talks to secure metals in Africa needed to help them with their energy transitions, the Wall Street Journal reported last week, citing people with knowledge of the talks.
Dubai's main share index (.DFMGI) gained 0.7%, led by a 2.9% rise in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) edged 0.1% higher.
George Khoury, global head of education and research at CFI, said the Abu Dhabi stock bourse continued to record some volatility and is seeing selling pressure in a number of sectors.
"However, the main index could continue to find support in the strong performance in oil markets and could stabilize."
Oil prices - which fuels the Gulf economy - continued to push higher, with the international benchmark Brent crude price moving past $95 to its highest since November 2022.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1%, closing at a record high, with Commercial International Bank (COMI.CA) rising 1%.
Egypt's central bank is expected to keep its overnight interest rates steady at a policy meeting on Thursday, despite inflation hitting successive all-time highs in each of the last three months, a Reuters poll showed on Monday.
Most stock markets in the Gulf ended higher on Tuesday ahead of an interest rate decision by the Federal Reserve, while the Egyptian bourse finished at record high.
The U.S. Fed is expected to leave borrowing costs on hold at 5.25% to 5.5% on Wednesday. Traders will be on the lookout for clues about how long the Fed is likely to hold rates around current levels.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed policy because most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, ending two sessions of losses, with Alinma Bank (1150.SE) gaining 1.9% and Saudi Arabian Mining Company (1211.SE) jumping 4.9%.
The United States and Saudi Arabia are in talks to secure metals in Africa needed to help them with their energy transitions, the Wall Street Journal reported last week, citing people with knowledge of the talks.
Dubai's main share index (.DFMGI) gained 0.7%, led by a 2.9% rise in top lender Emirates NBD (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) edged 0.1% higher.
George Khoury, global head of education and research at CFI, said the Abu Dhabi stock bourse continued to record some volatility and is seeing selling pressure in a number of sectors.
"However, the main index could continue to find support in the strong performance in oil markets and could stabilize."
Oil prices - which fuels the Gulf economy - continued to push higher, with the international benchmark Brent crude price moving past $95 to its highest since November 2022.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1%, closing at a record high, with Commercial International Bank (COMI.CA) rising 1%.
Egypt's central bank is expected to keep its overnight interest rates steady at a policy meeting on Thursday, despite inflation hitting successive all-time highs in each of the last three months, a Reuters poll showed on Monday.
GCC economic growth forecast for 2023 lowered to 1.4% on oil output cuts
GCC economic growth forecast for 2023 lowered to 1.4% on oil output cuts
The GCC countries are forecast to record economic growth of 1.4% in 2023, down 0.5 percentage points from the last quarter, following the implementation of crude output cuts, the Institute of Chartered Accountants England and Wales (ICAEW) said in its latest Economic Insight report.
On the other hand, GDP growth in the wider Middle East is expected to slow to 1.7% in 2023. However, optimism prevails as the region’s non-oil activity remains robust.
Businesses have reported growth in their customer base and employment, but the positive performance faces challenges due to the impending impact of high-interest rates on consumption and private investment.
Growth in the region’s non-energy sector is witnessing significant resilience, primarily fueled by the tourism-related sectors, with data showing double-digit expansion in transport, storage, accommodation and food services.
The tourism sector is experiencing rapid growth, with Dubai recording a 20% jump in tourist numbers to 8.6 million in Q1 2023.
Saudi Arabia is also witnessing substantial growth, with a 225% surge since Q1 2022. The kingdom is expecting 30 million international tourists next year.
The GCC countries are forecast to record economic growth of 1.4% in 2023, down 0.5 percentage points from the last quarter, following the implementation of crude output cuts, the Institute of Chartered Accountants England and Wales (ICAEW) said in its latest Economic Insight report.
On the other hand, GDP growth in the wider Middle East is expected to slow to 1.7% in 2023. However, optimism prevails as the region’s non-oil activity remains robust.
Businesses have reported growth in their customer base and employment, but the positive performance faces challenges due to the impending impact of high-interest rates on consumption and private investment.
Growth in the region’s non-energy sector is witnessing significant resilience, primarily fueled by the tourism-related sectors, with data showing double-digit expansion in transport, storage, accommodation and food services.
The tourism sector is experiencing rapid growth, with Dubai recording a 20% jump in tourist numbers to 8.6 million in Q1 2023.
Saudi Arabia is also witnessing substantial growth, with a 225% surge since Q1 2022. The kingdom is expecting 30 million international tourists next year.
Most Gulf markets track oil prices higher; #AbuDhabi flat | Reuters
Most Gulf markets track oil prices higher; Abu Dhabi flat | Reuters
Most major stock markets in the Gulf rose in early trade on Tuesday, tracking higher oil prices, although the Abu Dhabi index bucked the trend to trade flat.
Oil prices - a key catalyst for the Gulf's financial markets - rose for a fourth consecutive session as weak U.S. shale output spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, and was on course to end two sessions of losses, helped by a 1.1% increase in petrochemical maker Saudi Basic Industries Corp (2010.SE) and a 0.4% rise in Al Rajhi Bank (1120.SE).
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman on Monday defended OPEC+ cuts to oil supply, saying international energy markets need light-handed regulation to limit volatility.
Oil giant Saudi Aramco (2222.SE) was up 0.3%.
Separately, the kingdom is in early talks with U.S. electric automaker Tesla (TSLA.O) to set up a manufacturing facility in the kingdom, the Wall Street Journal reported on Monday, citing sources familiar with the matter.
Dubai's main share index (.DFMGI) added 0.3%, with top lender Emirates NBD (ENBD.DU) advancing 1.5% and blue-chip developer Emaar Properties (EMAR.DU) rising 0.6%.
In Qatar, the index (.QSI) rose 0.5%, as most of the stocks were in positive territory, including petrochemical firm Industries Qatar (IQCD.QA), which was up 1%.
The Abu Dhabi index (.FTFADGI), however bucked the trend to trade flat at 9,821.
Most major stock markets in the Gulf rose in early trade on Tuesday, tracking higher oil prices, although the Abu Dhabi index bucked the trend to trade flat.
Oil prices - a key catalyst for the Gulf's financial markets - rose for a fourth consecutive session as weak U.S. shale output spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
Saudi Arabia's benchmark index (.TASI) gained 0.3%, and was on course to end two sessions of losses, helped by a 1.1% increase in petrochemical maker Saudi Basic Industries Corp (2010.SE) and a 0.4% rise in Al Rajhi Bank (1120.SE).
Saudi Arabian Energy Minister Prince Abdulaziz bin Salman on Monday defended OPEC+ cuts to oil supply, saying international energy markets need light-handed regulation to limit volatility.
Oil giant Saudi Aramco (2222.SE) was up 0.3%.
Separately, the kingdom is in early talks with U.S. electric automaker Tesla (TSLA.O) to set up a manufacturing facility in the kingdom, the Wall Street Journal reported on Monday, citing sources familiar with the matter.
Dubai's main share index (.DFMGI) added 0.3%, with top lender Emirates NBD (ENBD.DU) advancing 1.5% and blue-chip developer Emaar Properties (EMAR.DU) rising 0.6%.
In Qatar, the index (.QSI) rose 0.5%, as most of the stocks were in positive territory, including petrochemical firm Industries Qatar (IQCD.QA), which was up 1%.
The Abu Dhabi index (.FTFADGI), however bucked the trend to trade flat at 9,821.