Supermarket Spinneys Close to Hiring Banks for Dubai IPO - Bloomberg
Spinneys Dubai LLC, a supermarket and grocery chain in the United Arab Emirates and Oman, is close to hiring local and international banks for a potential initial public offering.
The firm is set to mandate Bank of America Corp., Emirates NBD Capital and HSBC Holdings Plc to work on a potential listing, which could take place next year, according to people familiar with matter, who asked not to be identified as the information isn’t public. Rothschild & Co is advising on the planned IPO, they said.
More banks may be added to the syndicate at a later stage, the people said. Representatives for Spinneys, Rothschild, BofA, ENBD and HSBC either didn’t respond to requests for comment or declined to comment
Spinneys has stores in more than 65 locations across the UAE, according to its company website.
UAE has seen a surge in listings since late 2021 on the back of higher oil prices and a government privatization drive. State-owned entities have dominated IPO activity with money exchange firm Al Ansari Financial Services a notable exception this year.
Advanced Inhalation Rituals, the owner of shisha brand Al Fakher, SEE Holding and Dubizzle Group, which operates classifieds websites popular with expatriates, are among the private companies looking to list in the UAE, Bloomberg News has reported.
Rival grocer Lulu Group International is also considering an initial public offering in 2024.
Wednesday, 1 November 2023
#Dubai Homes Worth $844 Million in New Project Sell Out in Hours - Bloomberg
Dubai Homes Worth $844 Million in New Project Sell Out in Hours - Bloomberg
About 800 homes in a Dubai residential development sold out within hours, indicating continued strength in the emirate’s property market and generating $844 million for the firms backing the project.
The joint venture between Dubai Holding and Aldar Properties PJSC, Abu Dhabi’s biggest developer, sold out two phases in the “Haven” project on launch day, according to a statement on Wednesday. The firms sold 786 single-family homes and townhouses, with prices starting at 2.5 million dirhams ($680,648).
The companies had initially planned to make 468 homes available for sale, but added 318 additional properties — set to be sold at a later stage — due to “remarkable demand.” Construction of the first phase of the development is due to begin in in the second quarter of 2024 with handovers expected three years later.
High demand for the project is an early indicator that conflict in the wider region hasn’t yet impacted sentiment. Dubai’s property market has broken a decade-long record for total home sales and seen rents jump to unprecedented levels. Average residential prices climbed 19.6% in the year through September, CBRE Group Inc. said in a report last month, while rents surged 20.6%.
About 800 homes in a Dubai residential development sold out within hours, indicating continued strength in the emirate’s property market and generating $844 million for the firms backing the project.
The joint venture between Dubai Holding and Aldar Properties PJSC, Abu Dhabi’s biggest developer, sold out two phases in the “Haven” project on launch day, according to a statement on Wednesday. The firms sold 786 single-family homes and townhouses, with prices starting at 2.5 million dirhams ($680,648).
The companies had initially planned to make 468 homes available for sale, but added 318 additional properties — set to be sold at a later stage — due to “remarkable demand.” Construction of the first phase of the development is due to begin in in the second quarter of 2024 with handovers expected three years later.
High demand for the project is an early indicator that conflict in the wider region hasn’t yet impacted sentiment. Dubai’s property market has broken a decade-long record for total home sales and seen rents jump to unprecedented levels. Average residential prices climbed 19.6% in the year through September, CBRE Group Inc. said in a report last month, while rents surged 20.6%.
Most Gulf markets gain ahead of Federal Reserve rate decision | Reuters
Most Gulf markets gain ahead of Federal Reserve rate decision | Reuters
Most stock markets in the Gulf rose on Wednesday as markets waited for a policy decision by the U.S. Federal Reserve, although the conflict in the Middle East remains in focus.
Economists widely expect the Fed to leave benchmark borrowing rates unchanged in the range of 5.25% to 5.5% when it announces its decision at 1800 GMT.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index (.TASI) rose 1.2%, with Etihad Atheeb Telecommunications Co (7040.SE) jumping 4.3%, extending gains from the previous session when it reported a sharp rise in quarterly profit.
Arabian Pipes Co (2200.SE) surged 10%, the top gainer on the index after also reporting a jump in third-quarter earnings.
Dubai's main share index (.DFMGI) closed 0.4% higher, led by a 1.8% rise in top lender Emirates NBD Bank (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) was up 0.9%.
The United Arab Emirates' gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth.
Non-oil growth surged 5.9% in the first six months of the year, Abdulla bin Touq Al Marri said at a business conference in Dubai.
The Qatari benchmark (.QSI) closed 0.6% higher, with petrochemical maker Industries Qatar (IQCD.QA) up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose more than 1% ahead of the Fed's decision, with the market also keeping a close eye on the Israel-Hamas conflict, as geopolitical risks offset record oil production in the U.S.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.5% with most of its stocks in negative territory, including tobacco monopoly Eastern Co (EAST.CA), which retreated 4%.
Most stock markets in the Gulf rose on Wednesday as markets waited for a policy decision by the U.S. Federal Reserve, although the conflict in the Middle East remains in focus.
Economists widely expect the Fed to leave benchmark borrowing rates unchanged in the range of 5.25% to 5.5% when it announces its decision at 1800 GMT.
Most Gulf Cooperation Council countries, including the UAE, peg their currencies to the U.S. dollar and follow the Fed's policy moves closely.
Saudi Arabia's benchmark index (.TASI) rose 1.2%, with Etihad Atheeb Telecommunications Co (7040.SE) jumping 4.3%, extending gains from the previous session when it reported a sharp rise in quarterly profit.
Arabian Pipes Co (2200.SE) surged 10%, the top gainer on the index after also reporting a jump in third-quarter earnings.
Dubai's main share index (.DFMGI) closed 0.4% higher, led by a 1.8% rise in top lender Emirates NBD Bank (ENBD.DU).
In Abu Dhabi, the index (.FTFADGI) was up 0.9%.
The United Arab Emirates' gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth.
Non-oil growth surged 5.9% in the first six months of the year, Abdulla bin Touq Al Marri said at a business conference in Dubai.
The Qatari benchmark (.QSI) closed 0.6% higher, with petrochemical maker Industries Qatar (IQCD.QA) up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose more than 1% ahead of the Fed's decision, with the market also keeping a close eye on the Israel-Hamas conflict, as geopolitical risks offset record oil production in the U.S.
Outside the Gulf, Egypt's blue-chip index (.EGX30) fell 0.5% with most of its stocks in negative territory, including tobacco monopoly Eastern Co (EAST.CA), which retreated 4%.
#UAE: Tecom Group posts 20% higher profits in 9M-23
UAE: Tecom Group posts 20% higher profits in 9M-23
Tecom Group logged net profits valued at AED 767.54 million in the first nine months (9M) of 2023, an annual surge of 20% from AED 639.06 million.
Revenues stood at AED 1.58 billion during January-September 2023, up 7% year-on-year (YoY) AED 1.47 billion, according to the income statements.
Basic and diluted earnings per share (EPS) attributable to the shareholders increased to AED 0.15 in 9M-23 from AED 0.13 a year earlier.
Total assets amounted to AED 14.66 billion in 9M-23, versus AED 14.55 billion as of 31 December 2022.
Tecom Group logged net profits valued at AED 767.54 million in the first nine months (9M) of 2023, an annual surge of 20% from AED 639.06 million.
Revenues stood at AED 1.58 billion during January-September 2023, up 7% year-on-year (YoY) AED 1.47 billion, according to the income statements.
Basic and diluted earnings per share (EPS) attributable to the shareholders increased to AED 0.15 in 9M-23 from AED 0.13 a year earlier.
Total assets amounted to AED 14.66 billion in 9M-23, versus AED 14.55 billion as of 31 December 2022.
#UAE's GDP grew 3.7% in first half of 2023, supported by non-oil sector | Reuters
UAE's GDP grew 3.7% in first half of 2023, supported by non-oil sector | Reuters
The United Arab Emirates' gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth.
Non-oil growth surged 5.9% in the first six months of the year, Abdulla bin Touq Al Marri said, speaking at a business conference in Dubai.
“The UAE's economic growth is a testament to our resilience, diversification and commitment to openness, and international cooperation,” he said, adding the country was becoming less reliant on oil and more dependent on knowledge-based industries.
The non-oil sector accounts for more than 70% of the country’s GDP.
The Gulf states, largely dependent on hydrocarbons for revenue, all have plans under way to diversify their economies and sources of income, and pull in foreign investment.
The United Arab Emirates' gross domestic product grew 3.7% in the first half of the year, the economy minister said on Wednesday, as non-oil sector growth vastly outperformed overall growth.
Non-oil growth surged 5.9% in the first six months of the year, Abdulla bin Touq Al Marri said, speaking at a business conference in Dubai.
“The UAE's economic growth is a testament to our resilience, diversification and commitment to openness, and international cooperation,” he said, adding the country was becoming less reliant on oil and more dependent on knowledge-based industries.
The non-oil sector accounts for more than 70% of the country’s GDP.
The Gulf states, largely dependent on hydrocarbons for revenue, all have plans under way to diversify their economies and sources of income, and pull in foreign investment.
#Dubai Can’t Build Hotels Fast Enough - Bloomberg
Dubai Can’t Build Hotels Fast Enough - Bloomberg
I often hear people ask, is Dubai building too many hotels?
It’s a sensible question for a city that just a few years ago had an oversupply problem so bad that the government created a commission to manage it and basically ordered builders to stop building.
But look at how Dubai’s hotel business is doing: many cities would like to have their hotel rooms as full. Dubai welcomed more than 11 million overnight visitors this year through August, with average occupancy at 75.5%, according to the Dubai tourism department.
Some of the latest figures from CoStar show that even as thousands of more hotel rooms are being built, the number of people who want to book them is growing faster. The number of hotel rooms in Dubai is up 27% compared with 2019, but the demand for those rooms is up 33%. In Riyadh, the numbers are even more stark: supply is up 20% and demand is up 32%.
All that supply, however, is part of the reason why room rates are falling—down 6% year over year in Dubai.
I often hear people ask, is Dubai building too many hotels?
It’s a sensible question for a city that just a few years ago had an oversupply problem so bad that the government created a commission to manage it and basically ordered builders to stop building.
But look at how Dubai’s hotel business is doing: many cities would like to have their hotel rooms as full. Dubai welcomed more than 11 million overnight visitors this year through August, with average occupancy at 75.5%, according to the Dubai tourism department.
Some of the latest figures from CoStar show that even as thousands of more hotel rooms are being built, the number of people who want to book them is growing faster. The number of hotel rooms in Dubai is up 27% compared with 2019, but the demand for those rooms is up 33%. In Riyadh, the numbers are even more stark: supply is up 20% and demand is up 32%.
All that supply, however, is part of the reason why room rates are falling—down 6% year over year in Dubai.
Spain Considers Stake in Telefonica After #Saudi Deal, In Protectionist Move - Bloomberg
Spain Considers Stake in Telefonica After Saudi Deal, In Protectionist Move - Bloomberg
Spain is considering whether to shield its “most strategic” company from foreign takeovers in what could be the government’s most significant protectionist move in more than a decade.
In an announcement Tuesday, the government’s corporate holding firm said it would undertake an “exploratory analysis” of a potential stake acquisition in Madrid-based telecom Telefonica SA. The statement came a day after it was reported that Spain was weighing a 5% stake in the carrier, and nearly two months after state-controlled Saudi Arabia Telecom announced plans to buy 9.9% of Telefonica SA.
Should Spain pursue the acquisition, it would limit the power of Saudi Arabia Telecom within the company.
The potential measure would mark a major shift for the Spanish government, which traditionally has been wary of intervening in the private sector. Even as many European countries have sought to move critical supply chains closer to home and ensure control over strategic industries in the wake of pandemic-related volatility and Russia’s invasion of Ukraine, Spain stands out in not having blocked major deals nor engaged in significant corporate rescues in recent years.
European leaders have been most uneasy about Chinese investment in the EU, but the growing presence of Middle Eastern money within the bloc is also starting to attract more scrutiny. In recent years, Gulf states have encouraged government-backed firms to diversify their holdings via international deals in sectors such as sports, healthcare and renewable energies.
Even though Spain and Saudi Arabia have long-standing diplomatic and trade relationships – Spain is a major arms supplier to the Gulf state – news of the Saudi Arabia Telecom investment prompted a backlash in Madrid from politicians across the political spectrum.
Spain is considering whether to shield its “most strategic” company from foreign takeovers in what could be the government’s most significant protectionist move in more than a decade.
In an announcement Tuesday, the government’s corporate holding firm said it would undertake an “exploratory analysis” of a potential stake acquisition in Madrid-based telecom Telefonica SA. The statement came a day after it was reported that Spain was weighing a 5% stake in the carrier, and nearly two months after state-controlled Saudi Arabia Telecom announced plans to buy 9.9% of Telefonica SA.
Should Spain pursue the acquisition, it would limit the power of Saudi Arabia Telecom within the company.
The potential measure would mark a major shift for the Spanish government, which traditionally has been wary of intervening in the private sector. Even as many European countries have sought to move critical supply chains closer to home and ensure control over strategic industries in the wake of pandemic-related volatility and Russia’s invasion of Ukraine, Spain stands out in not having blocked major deals nor engaged in significant corporate rescues in recent years.
European leaders have been most uneasy about Chinese investment in the EU, but the growing presence of Middle Eastern money within the bloc is also starting to attract more scrutiny. In recent years, Gulf states have encouraged government-backed firms to diversify their holdings via international deals in sectors such as sports, healthcare and renewable energies.
Even though Spain and Saudi Arabia have long-standing diplomatic and trade relationships – Spain is a major arms supplier to the Gulf state – news of the Saudi Arabia Telecom investment prompted a backlash in Madrid from politicians across the political spectrum.
#Saudi Aramco VC Fund Backs AI-Powered Cybersecurity Startup - Bloomberg
Saudi Aramco VC Fund Backs AI-Powered Cybersecurity Startup - Bloomberg
Saudi Aramco’s venture capital arm has invested in SpiderSilk, a United Arab Emirates-based startup that offers AI-powered cybersecurity services.
Aramco’s $500 million venture fund, Wa’ed Ventures, took the lead in a $9 million round that included Riyadh-based Saudi Technology Ventures and Dubai’s Global Ventures.
The new capital is intended to support SpiderSilk’s technology offerings in Saudi Arabia, the company said in a statement. SpiderSilk has worked with Lenovo Group Ltd., Panasonic Holdings Corp. and parts of Samsung Group, according to its website.
The startup is in the process of moving its headquarters to Saudi Arabia by next year as required of foreign companies working with government entities.
Saudi Aramco also signed a collaborative agreement with SpiderSilk as it aims to boost its cybersecurity services.
Saudi Aramco’s venture capital arm has invested in SpiderSilk, a United Arab Emirates-based startup that offers AI-powered cybersecurity services.
Aramco’s $500 million venture fund, Wa’ed Ventures, took the lead in a $9 million round that included Riyadh-based Saudi Technology Ventures and Dubai’s Global Ventures.
The new capital is intended to support SpiderSilk’s technology offerings in Saudi Arabia, the company said in a statement. SpiderSilk has worked with Lenovo Group Ltd., Panasonic Holdings Corp. and parts of Samsung Group, according to its website.
The startup is in the process of moving its headquarters to Saudi Arabia by next year as required of foreign companies working with government entities.
Saudi Aramco also signed a collaborative agreement with SpiderSilk as it aims to boost its cybersecurity services.
#SaudiArabia’s Tabby Valued at $1.5 Billion in Pre-IPO Fundraise - Bloomberg
Saudi Arabia’s Tabby Valued at $1.5 Billion in Pre-IPO Fundraise - Bloomberg
Saudi Arabia-based Tabby raised $200 million in a funding round that values the buy-now-pay-later firm at over $1.5 billion ahead of a planned listing in the kingdom.
The Series D round was led by Wellington Management, with participation from Bluepool Capital and existing investors Saudi venture capital firm STV, Mubadala Investment Capital, PayPal Ventures and Arbor Ventures, Tabby said in a statement. The fundraise makes Tabby one of the Gulf region’s first fintech unicorns and more than doubles the firm’s valuation from $660 million as of January.
“We are building and broadening out our consumer and merchant offering,” Chief Executive Officer Hosam Arab said in an interview with Bloomberg News. “We are investing heavily in widening the product options available for our consumers, largely around financial services.”
Firms like Tabby allow customers to purchase goods and pay for them in installments. Regionally, it operates in Saudi Arabia, the United Arab Emirates and Kuwait, and competes with firms including Tamara. Tabby has 10 million registered users and works with over 30,000 brands.
Tabby, which was founded in Dubai, set up its headquarters in the kingdom ahead of its plans to go public on the Saudi stock exchange, Saudi Arabia’s Ministry of Investment said in September.
Saudi Arabia-based Tabby raised $200 million in a funding round that values the buy-now-pay-later firm at over $1.5 billion ahead of a planned listing in the kingdom.
The Series D round was led by Wellington Management, with participation from Bluepool Capital and existing investors Saudi venture capital firm STV, Mubadala Investment Capital, PayPal Ventures and Arbor Ventures, Tabby said in a statement. The fundraise makes Tabby one of the Gulf region’s first fintech unicorns and more than doubles the firm’s valuation from $660 million as of January.
“We are building and broadening out our consumer and merchant offering,” Chief Executive Officer Hosam Arab said in an interview with Bloomberg News. “We are investing heavily in widening the product options available for our consumers, largely around financial services.”
Firms like Tabby allow customers to purchase goods and pay for them in installments. Regionally, it operates in Saudi Arabia, the United Arab Emirates and Kuwait, and competes with firms including Tamara. Tabby has 10 million registered users and works with over 30,000 brands.
Tabby, which was founded in Dubai, set up its headquarters in the kingdom ahead of its plans to go public on the Saudi stock exchange, Saudi Arabia’s Ministry of Investment said in September.
SAL #Saudi Logistics Services shares jump 30% in Riyadh market debut | Reuters
SAL Saudi Logistics Services shares jump 30% in Riyadh market debut | Reuters
Cargo business SAL Saudi Logistics Services Co's shares jumped 30% on their Riyadh market debut on Wednesday after raising $678 million from its initial public offering, in the kingdom's second biggest deal this year.
The shares rose as much as 137.80 riyals ($36.73) in early trade on the Saudi Exchange, against an IPO price at the top of the indicative range at 106 riyals a share.
Oil and gas driller ADES Holding Co (2382.SE) in September raised $1.2 billion from its initial public offering in the biggest deal this year.
Cargo business SAL Saudi Logistics Services Co's shares jumped 30% on their Riyadh market debut on Wednesday after raising $678 million from its initial public offering, in the kingdom's second biggest deal this year.
The shares rose as much as 137.80 riyals ($36.73) in early trade on the Saudi Exchange, against an IPO price at the top of the indicative range at 106 riyals a share.
Oil and gas driller ADES Holding Co (2382.SE) in September raised $1.2 billion from its initial public offering in the biggest deal this year.
Most major Gulf markets fall ahead of Fed decision | Reuters
Most major Gulf markets fall ahead of Fed decision | Reuters
Most major Gulf markets fell in early trade on Wednesday ahead of a policy decision from the Federal Reserve later, while the Israel-Hamas conflict also weighed on investor sentiment.
Israel said its fighter jets killed a Hamas commander in a strike on a densely populated refugee camp in Gaza, an attack that also killed at least 50 Palestinians as fighting intensified in the enclave where food, fuel and supplies are running scarce.
At least 8,525 Palestinians, including 3,542 children, were killed in Israeli strikes on Gaza since Oct. 7 , the health ministry in Hamas-controlled Gaza said on Tuesday.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 0.6% fall in oil giant Saudi Aramco (2222.SE) and a 0.6% decrease in Al Rajhi Bank (1120.SE).
However, Cargo business SAL Saudi Logistics Services Co (4263.SE) rose up to 30% to 137.80 riyals ($36.73) in its trading debut, from its initial public offering price of 106 riyals.
On the Saudi stock exchange, newly listed stocks are allowed to rise or fall up to 30% on their first three days of trading.
Separately, Saudi central bank net foreign assets rose by $12.8 billion in September from previous month, central bank data showed on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.3%, hit by a 1.2% fall in top lender Emirates NBD (ENBD.DU) and a 0.6% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Abu Dhabi, index (.FTFADGI) eased 0.1%, with Emirates Telecommunications Group (EAND.AD) losing 0.4%, despite reporting a rise in quarterly profit.
The Qatari index (.QSI), however, added 0.4%, helped by a 1.4% rise in petrochemical maker Industries Qatar (IQCD.QA).
Most major Gulf markets fell in early trade on Wednesday ahead of a policy decision from the Federal Reserve later, while the Israel-Hamas conflict also weighed on investor sentiment.
Israel said its fighter jets killed a Hamas commander in a strike on a densely populated refugee camp in Gaza, an attack that also killed at least 50 Palestinians as fighting intensified in the enclave where food, fuel and supplies are running scarce.
At least 8,525 Palestinians, including 3,542 children, were killed in Israeli strikes on Gaza since Oct. 7 , the health ministry in Hamas-controlled Gaza said on Tuesday.
Saudi Arabia's benchmark index (.TASI) fell 0.3%, hit by a 0.6% fall in oil giant Saudi Aramco (2222.SE) and a 0.6% decrease in Al Rajhi Bank (1120.SE).
However, Cargo business SAL Saudi Logistics Services Co (4263.SE) rose up to 30% to 137.80 riyals ($36.73) in its trading debut, from its initial public offering price of 106 riyals.
On the Saudi stock exchange, newly listed stocks are allowed to rise or fall up to 30% on their first three days of trading.
Separately, Saudi central bank net foreign assets rose by $12.8 billion in September from previous month, central bank data showed on Tuesday.
Dubai's main share index (.DFMGI) dropped 0.3%, hit by a 1.2% fall in top lender Emirates NBD (ENBD.DU) and a 0.6% decrease in blue-chip developer Emaar Properties (EMAR.DU).
The Abu Dhabi, index (.FTFADGI) eased 0.1%, with Emirates Telecommunications Group (EAND.AD) losing 0.4%, despite reporting a rise in quarterly profit.
The Qatari index (.QSI), however, added 0.4%, helped by a 1.4% rise in petrochemical maker Industries Qatar (IQCD.QA).