Aldar Sees International Demand for Its First Dubai Houses - Bloomberg
Aldar Properties PJSC, Abu Dhabi’s biggest developer, is starting sales of its first housing development in neighboring Dubai as strong demand in the Middle East’s business and tourism hub provides a lucrative opportunity for developers.
The firm is planning three projects in Dubai with a total development value of 20 billion dirhams ($5.4 billion). Its joint venture with Dubai Holding will kick off sales at Haven, a development of 2,400 homes, on Tuesday, Aldar’s acting chief finance and sustainability officer Faisal Falaknaz said in a call with reporters on Monday.
Dubai’s property market has broken a decade-long record for total home sales and seen rents jump to unprecedented levels. The rebound from a seven-year slump has been fueled by an influx of newcomers, from crypto millionaires and bankers relocating from Asia, to wealthy Russians seeking to shield assets. The government has also relaxed visa laws and introduced visas for job seekers and freelancers.
“The demand over the past week has been astounding,” Falaknaz said. “We’re getting a lot of queries internationally.”
The homes at Haven, which have prices starting at 2.5 million dirhams, will be sold in phases based on demand, he said. Amenities will include a central park, pools and play areas for children along with a community center built in the shape of a tree house, according to marketing materials.
Aldar said separately on Monday that its attributable profit for the third quarter reached 794.2 million dirhams, a 43% increase from a year earlier. The company has a backlog of 29.1 billion dirhams in development revenue that’ll be booked over the next two to three years. Falaknaz said the company’s next project in Dubai will start next year.
Monday 30 October 2023
#Dubai residential rents jump 27.2% in Q3
Dubai residential rents jump 27.2% in Q3
Dubai’s residential rents jumped 27.2 per cent in the third quarter of 2023 compared to the same period last year, and 2.1 per cent since the previous quarter.
Villa rentals rose 38.7 per cent annually but witnessed an insignificant change when compared to the previous quarter, ValuStrat’s Q3 report said.
Average annual rents for three-bedroom villas stood at Dh312,000, four-beds at Dh383,000, and five-bedroom villas at Dh492,000. Apartment asking rents grew 19.1 per cent YoY and 3.6 per cent QoQ. Average asking rents per annum for studio apartments were Dh51,000, for one-bedroom at Dh 75,000, two-bedroom at Dh111,000, and three-bedroom apartments were Dh170,000. Residential occupancy in Dubai was estimated at 88.9 per cent during the third quarter.
According to a CBRE Group report, average residential prices in Dubai rose by 19.6 per cent in the year to September 2023, where over this period, average apartment and villa prices increased by 19.7 per cent and 18.9 per cent, respectively. "Although demand remains relatively elevated, we continue to see further moderation in the rental market. The rate of rental growth has softened throughout the year, where in the year to September 2023, average residential rents in Dubai increased by 20.6 per cent, down from the 21.7 per cent growth registered a month earlier."
In terms of supply, in the year to date, 27,095 residential units are estimated to have been delivered, with 46.4 per cent of this supply being located in Meydan One, Downtown Dubai and Business Bay. A further 34,651 units are expected to be handed over the remainder of the year, the CBRE report said.
Dubai’s residential rents jumped 27.2 per cent in the third quarter of 2023 compared to the same period last year, and 2.1 per cent since the previous quarter.
Villa rentals rose 38.7 per cent annually but witnessed an insignificant change when compared to the previous quarter, ValuStrat’s Q3 report said.
Average annual rents for three-bedroom villas stood at Dh312,000, four-beds at Dh383,000, and five-bedroom villas at Dh492,000. Apartment asking rents grew 19.1 per cent YoY and 3.6 per cent QoQ. Average asking rents per annum for studio apartments were Dh51,000, for one-bedroom at Dh 75,000, two-bedroom at Dh111,000, and three-bedroom apartments were Dh170,000. Residential occupancy in Dubai was estimated at 88.9 per cent during the third quarter.
According to a CBRE Group report, average residential prices in Dubai rose by 19.6 per cent in the year to September 2023, where over this period, average apartment and villa prices increased by 19.7 per cent and 18.9 per cent, respectively. "Although demand remains relatively elevated, we continue to see further moderation in the rental market. The rate of rental growth has softened throughout the year, where in the year to September 2023, average residential rents in Dubai increased by 20.6 per cent, down from the 21.7 per cent growth registered a month earlier."
In terms of supply, in the year to date, 27,095 residential units are estimated to have been delivered, with 46.4 per cent of this supply being located in Meydan One, Downtown Dubai and Business Bay. A further 34,651 units are expected to be handed over the remainder of the year, the CBRE report said.
Most Gulf markets end higher ahead of US Fed rate meeting | Reuters
Most Gulf markets end higher ahead of US Fed rate meeting | Reuters
Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war.
The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc (AAPL.O) on its calendar.
The Fed is widely expected to keep interest rates unchanged, possibly setting the course for stocks and bonds the rest for the year.
The Bank of England and the Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with digital solutions provider Elm Company (7203.SE) advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
The Saudi stock market extended its rebound, thanks to company earnings, said Hani Abuagla, senior market analyst at XTB MENA.
"However, it could come under pressure as caution could dominate ahead of the Federal Reserve meeting."
The Qatari benchmark (.QSI) finished 1.7% higher, rebounding from its lowest in over three years, with all but one stock closing in positive territory, including Commercial Bank (COMB.QA), which jumped 4.5%. Telecoms firm Ooredoo (ORDS.QA) leapt 4.7%.
Dubai's main share index (.DFMGI) climbed 1.4%, with toll operator Salik (SALIK.DU) surging 5.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.5%.
Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave that have increased international pressure for civilians to be protected.
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1.5% higher, led by an 11.6% surge in tobacco monopoly Eastern Company (EAST.CA).
Most stock markets in the Gulf closed higher on Monday as investors were focused on the outlook for interest rates ahead of this week's U.S. Federal Reserve policy meeting, overlooking the potential impact of the Israel-Gaza war.
The Federal Reserve meeting, which concludes on Wednesday, is likely to dominate a busy week that has U.S. employment data and earnings from tech heavyweight like Apple Inc (AAPL.O) on its calendar.
The Fed is widely expected to keep interest rates unchanged, possibly setting the course for stocks and bonds the rest for the year.
The Bank of England and the Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with digital solutions provider Elm Company (7203.SE) advancing 2.3%, a day after reporting a sharp rise in quarterly profit.
The Saudi stock market extended its rebound, thanks to company earnings, said Hani Abuagla, senior market analyst at XTB MENA.
"However, it could come under pressure as caution could dominate ahead of the Federal Reserve meeting."
The Qatari benchmark (.QSI) finished 1.7% higher, rebounding from its lowest in over three years, with all but one stock closing in positive territory, including Commercial Bank (COMB.QA), which jumped 4.5%. Telecoms firm Ooredoo (ORDS.QA) leapt 4.7%.
Dubai's main share index (.DFMGI) climbed 1.4%, with toll operator Salik (SALIK.DU) surging 5.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.5%.
Israeli troops and tanks attacked Gaza's main northern city from the east and west on Monday, three days after it began ground operations in the Palestinian enclave that have increased international pressure for civilians to be protected.
Outside the Gulf, Egypt's blue-chip index (.EGX30) closed 1.5% higher, led by an 11.6% surge in tobacco monopoly Eastern Company (EAST.CA).
How #SaudiArabia’s PIF Wealth Fund and MBS Aim to Build a Post-Oil Future - Bloomberg
How Saudi Arabia’s PIF Wealth Fund and MBS Aim to Build a Post-Oil Future - Bloomberg
Saudi Arabia is in a race to build a post-oil future, and its sovereign wealth fund is spreading around the oil-rich kingdom’s largess as never before. The Public Investment Fund, better known as the PIF, has emerged as the main vehicle for the expansive ambitions of Crown Prince Mohammed bin Salman, the de-facto leader, who is reshaping the country with his own brand of state capitalism. The drive includes big bets in global sports including golf and soccer, which fits with a strategy to promote tourism, improve Saudi Arabia’s image abroad and enhance the quality of life for citizens who’ve only recently been freed from some of the country’s most onerous religious restrictions. The size of the fund and the scope of its spending spree – assets are nearly $800 billion – has made the PIF both a force for modernizing Saudi Arabia and a tool for so-called soft power on the global stage.
1. What is the PIF?
Saudi Arabia is in a race to build a post-oil future, and its sovereign wealth fund is spreading around the oil-rich kingdom’s largess as never before. The Public Investment Fund, better known as the PIF, has emerged as the main vehicle for the expansive ambitions of Crown Prince Mohammed bin Salman, the de-facto leader, who is reshaping the country with his own brand of state capitalism. The drive includes big bets in global sports including golf and soccer, which fits with a strategy to promote tourism, improve Saudi Arabia’s image abroad and enhance the quality of life for citizens who’ve only recently been freed from some of the country’s most onerous religious restrictions. The size of the fund and the scope of its spending spree – assets are nearly $800 billion – has made the PIF both a force for modernizing Saudi Arabia and a tool for so-called soft power on the global stage.
1. What is the PIF?
Set up in 1971 as oil revenue was pouring in, the PIF provided development loans and held the state’s passive interest in publicly traded companies. Then, in March 2015, the fund was “reborn,” according to its website, and placed under Prince Mohammed, its chairman. Soon after, the prince, who is known as MBS, expanded his authority and embarked on an effort to remake the traditional Muslim country of 36 million people. Saudi watchers say the PIF operates like a family office, enabling MBS to direct the state’s funds more like a venture-capital firm, bypassing a slow-moving bureaucracy.
#Qatar Stock Exchange to shift to shortened settlement cycle T+2 from January 2
Qatar Stock Exchange to shift to shortened settlement cycle T+2 from January 2
The Qatar Stock Exchange (QSE) will shift to a shortened settlement period 'T+2' from the present 'T+3", effective from January 2, 2024, a move that will help investors receive their cash faster and substantially reduce the operational and counterparty risks.
"During the period from now until the implementation of the shortening process, both QSE and Edaa will make necessary updates to the rules and procedures related to the settlement reduction process," QSE confirmed the date in a communique.
The endeavour is to follow the best international practices in the global financial markets in order to provide the best ways and functions to enhance the efficiency of Qatar’s securities market, it said.
The settlement cycle has remained at trade date plus three business days (T+3) in Qatar, where the global fund managers have been eyeing the fastest growing economy due to its strong macro fundamentals, especially after Qatar unveiled plans to enhance its liquefied natural gas production to 126mn tonnes per annum by 2027, which offered indirect benefits to the private sector as well.
#Dubai Taxi IPO: RTA Seeks About $300 Million - Bloomberg
Dubai Taxi IPO: RTA Seeks About $300 Million - Bloomberg
Dubai Taxi Corp., a unit of the emirate’s transport authority, is seeking to raise about $300 million from a share sale next month in what’s set to be city’s first privatization of the year, according to people with knowledge of the matter.
As part of the initial public offering, the taxi operator plans to pay a fourth-quarter dividend of at least 71 million dirhams ($19 million) in April, according to an investor presentation seen by Bloomberg. After that, Dubai Taxi will pay at least 85% of its annual net profit in two dividend payments from the 2024 fiscal year, the presentation shows.
Dubai’s Roads & Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital on the offering that will list in Dubai, Bloomberg News has previously reported.
A representative for the RTA didn’t respond to a request for comment.
The RTA is monetizing more of its assets after its owner, the Dubai government, raised $1 billion from an IPO of the city’s road-toll operator, Salik Co., in 2022. An IPO of Dubai Parking is expected to follow the taxi business listing.
The Middle East has been in the midst of an IPO boom since late 2021, buoyed by high oil prices and government privatization drives. But activity in Dubai, in particular, has slowed from a blockbuster 2022 after a decline in some regional stock markets in the first half.
Dubai Taxi Corp., a unit of the emirate’s transport authority, is seeking to raise about $300 million from a share sale next month in what’s set to be city’s first privatization of the year, according to people with knowledge of the matter.
As part of the initial public offering, the taxi operator plans to pay a fourth-quarter dividend of at least 71 million dirhams ($19 million) in April, according to an investor presentation seen by Bloomberg. After that, Dubai Taxi will pay at least 85% of its annual net profit in two dividend payments from the 2024 fiscal year, the presentation shows.
Dubai’s Roads & Transport Authority is working with Bank of America Corp., Citigroup Inc., and Emirates NBD Capital on the offering that will list in Dubai, Bloomberg News has previously reported.
A representative for the RTA didn’t respond to a request for comment.
The RTA is monetizing more of its assets after its owner, the Dubai government, raised $1 billion from an IPO of the city’s road-toll operator, Salik Co., in 2022. An IPO of Dubai Parking is expected to follow the taxi business listing.
The Middle East has been in the midst of an IPO boom since late 2021, buoyed by high oil prices and government privatization drives. But activity in Dubai, in particular, has slowed from a blockbuster 2022 after a decline in some regional stock markets in the first half.
Major Gulf bourses gain ahead of US Fed rate meeting | Reuters
Major Gulf bourses gain ahead of US Fed rate meeting | Reuters
Major stock markets in the Gulf rose in early trade on Monday ahead of this week's U.S. Federal Reserve policy meeting, overlooking for now fears of a wider conflict in the region as Israeli troops press ahead with a ground assault in Gaza.
The Federal Reserve meeting which concludes on Wednesday is likely to dominate a busy week, which also offers U.S. employment data and earnings from tech heavyweight Apple Inc (AAPL.O), possibly setting the course for stocks and bonds the rest of the year.
The Fed is widely expected to keep interest rates unchanged. The Bank of England and Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 1%, with oil giant Saudi Aramco (2222.SE) rising 0.6% and Bupa Arabia For Cooperative Insurance (8210.SE) up 8.4%.
Riyadh Cables (4142.SE) also jumped 3% after third-quarter earnings exceeded market expectations.
Dubai's main share index (.DFMGI) rose 0.8%, led by a 2.7% gain for top lender Emirates NBD (ENBD.DU) and a 1.6% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.6%.
Emirati agribusiness Al Dahra is in talks to acquire more agricultural land in Egypt, two sources with direct knowledge of the matter said, in a deal that could reduce Cairo's dependence on imports of staple crops but also reignite water use concerns.
The Qatari benchmark (.QSI) was 2.4% higher with almost all its constituent stocks in positive territory, including a 4.2% gain for Commercial Bank (COMB.QA).
Israel's military said it had struck more than 600 militant targets over the past few days as it continued to expand ground operations in the Gaza Strip, where Palestinian civilians are in dire need of fuel, food and clean water as the conflict enters its fourth week.
Major stock markets in the Gulf rose in early trade on Monday ahead of this week's U.S. Federal Reserve policy meeting, overlooking for now fears of a wider conflict in the region as Israeli troops press ahead with a ground assault in Gaza.
The Federal Reserve meeting which concludes on Wednesday is likely to dominate a busy week, which also offers U.S. employment data and earnings from tech heavyweight Apple Inc (AAPL.O), possibly setting the course for stocks and bonds the rest of the year.
The Fed is widely expected to keep interest rates unchanged. The Bank of England and Bank of Japan will also announce policy decisions in the coming days.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI) gained 1%, with oil giant Saudi Aramco (2222.SE) rising 0.6% and Bupa Arabia For Cooperative Insurance (8210.SE) up 8.4%.
Riyadh Cables (4142.SE) also jumped 3% after third-quarter earnings exceeded market expectations.
Dubai's main share index (.DFMGI) rose 0.8%, led by a 2.7% gain for top lender Emirates NBD (ENBD.DU) and a 1.6% rise in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) added 0.6%.
Emirati agribusiness Al Dahra is in talks to acquire more agricultural land in Egypt, two sources with direct knowledge of the matter said, in a deal that could reduce Cairo's dependence on imports of staple crops but also reignite water use concerns.
The Qatari benchmark (.QSI) was 2.4% higher with almost all its constituent stocks in positive territory, including a 4.2% gain for Commercial Bank (COMB.QA).
Israel's military said it had struck more than 600 militant targets over the past few days as it continued to expand ground operations in the Gaza Strip, where Palestinian civilians are in dire need of fuel, food and clean water as the conflict enters its fourth week.
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