Airbus Nears Smaller Emirates Deal - Bloomberg
Airbus SE is set to bring home a last-minute sale at the Dubai Airshow with Emirates, which is close to purchasing more of its A350-900 aircraft, according to people familiar with the discussions, in a compromise order after the airline said the larger variant of the widebody didn’t meet its expectations.
The Dubai-based carrier will take perhaps a dozen of the A350-900 model, said the people, asking not to be identified because the deal hasn’t been signed. They cautioned that an agreement could still fall through, and the outlines of a deal or the timing may change following a roller-coaster negotiation that has played out publicly during the expo.
Airbus said it doesn’t comment on speculation, while Emirates declined to comment.
Emirates already has 50 of the A350-900 on order. It had previously targeted an accord for as many as 50 of the larger A350-1000 model, but those hopes were dashed over the course of this week. The mood at the Airbus chalet turned gloomy after the airline’s president, Tim Clark, called the A350-1000 “defective” because of what he said are overly frequent maintenance cycles on the engines.
Airbus’s flagship aircraft is powered exclusively by Rolls-Royce Holdings Plc engines, and Clark said on Tuesday that the hot climate in the Middle East and high utilization of planes are less forgiving on modern engines like those powering the A350-1000.
Wednesday 15 November 2023
#Dubai Real Estate: Record Home Prices May Start to Fall by End of 2024: S&P - Bloomberg
Dubai Real Estate: Record Home Prices May Start to Fall by End of 2024: S&P - Bloomberg
Dubai’s record property prices are expected to start easing by the end of next year and slightly reverse by 5% to 10% in the next 12 to 18 months, according to S&P Global Ratings.
“We do think the risk of a cyclical slowdown and potentially a mild reversal are increasing over the next 12 to 18 months,” Tatjana Lescova, S&P’s associate director of corporate ratings, said at an event on Wednesday. “All the global economic uncertainty could affect the demand in Dubai.”
Although prices are expected to increase a further 15% to 18% this year and then by another 5% to 7% next year when the market gradually slows down, according to S&P.
Dubai’s property market recently broke a decade-long record for home sales, while rental rates have jumped to unprecedented levels. The rebound from a seven-year slump has been fueled by an influx of wealthy investors such as Russians seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government has also relaxed visa laws and introduced permits for job seekers and freelancers.
Dubai’s record property prices are expected to start easing by the end of next year and slightly reverse by 5% to 10% in the next 12 to 18 months, according to S&P Global Ratings.
“We do think the risk of a cyclical slowdown and potentially a mild reversal are increasing over the next 12 to 18 months,” Tatjana Lescova, S&P’s associate director of corporate ratings, said at an event on Wednesday. “All the global economic uncertainty could affect the demand in Dubai.”
Although prices are expected to increase a further 15% to 18% this year and then by another 5% to 7% next year when the market gradually slows down, according to S&P.
Dubai’s property market recently broke a decade-long record for home sales, while rental rates have jumped to unprecedented levels. The rebound from a seven-year slump has been fueled by an influx of wealthy investors such as Russians seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government has also relaxed visa laws and introduced permits for job seekers and freelancers.
#AbuDhabi’s ADQ, Chimera Set to Commit Billions More to New Fund - Bloomberg
Abu Dhabi’s ADQ, Chimera Set to Commit Billions More to New Fund - Bloomberg
Backers of a new $50 billion Abu Dhabi fund, part of Sheikh Tahnoon bin Zayed Al Nahyan’s empire, are considering committing additional capital to the entity to double its portfolio over time, people familiar with the matter said.
Chimera Investment LLC and Abu Dhabi wealth fund ADQ are in talks to commit more capital to Lunate and boost its assets under management to $100 billion over time, the people said, declining to be identified discussing confidential information. Lunate will also look to raise new funds from outside investors, they said.
Talks are ongoing and no final decisions have been made, the people said. ADQ and Lunate declined to comment. Representatives for Chimera and its parent firm, International Holding Co., weren’t available for comment.
Lunate is the latest player in Abu Dhabi, an emirate that’s used energy riches to become a major force in the investing landscape. The city is home to wealth funds Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, which oversee well over a trillion dollars in assets in total.
Sheikh Tahnoon, a brother of the United Arab Emirates’ ruler and the country’s national security adviser, presides over many of these entities — including ADIA and ADQ — as well as International Holding.
Owned by Chimera and Lunate’s senior management, the new fund was unveiled in September to invest across private equity, venture capital, private credit, real assets, public equities and public credit. At the time, Lunate had said its team would comprise of more than 150 employees — including about 80 investment professionals — and that it expects to start operations later this year.
Backers of a new $50 billion Abu Dhabi fund, part of Sheikh Tahnoon bin Zayed Al Nahyan’s empire, are considering committing additional capital to the entity to double its portfolio over time, people familiar with the matter said.
Chimera Investment LLC and Abu Dhabi wealth fund ADQ are in talks to commit more capital to Lunate and boost its assets under management to $100 billion over time, the people said, declining to be identified discussing confidential information. Lunate will also look to raise new funds from outside investors, they said.
Talks are ongoing and no final decisions have been made, the people said. ADQ and Lunate declined to comment. Representatives for Chimera and its parent firm, International Holding Co., weren’t available for comment.
Lunate is the latest player in Abu Dhabi, an emirate that’s used energy riches to become a major force in the investing landscape. The city is home to wealth funds Abu Dhabi Investment Authority, Mubadala Investment Co. and ADQ, which oversee well over a trillion dollars in assets in total.
Sheikh Tahnoon, a brother of the United Arab Emirates’ ruler and the country’s national security adviser, presides over many of these entities — including ADIA and ADQ — as well as International Holding.
Owned by Chimera and Lunate’s senior management, the new fund was unveiled in September to invest across private equity, venture capital, private credit, real assets, public equities and public credit. At the time, Lunate had said its team would comprise of more than 150 employees — including about 80 investment professionals — and that it expects to start operations later this year.
#Kuwait Agility's Q3 net profit more than doubles to $91mln
Kuwait Agility's Q3 net profit more than doubles to $91mln
Kuwait-based global logistics and supply chain services provider Agility has reported its Q3 2023 net profit attributable to shareholders at 28 million Kuwait dinars ($91million), more than double the KWD 12.6 million in the year-ago period.
The profit for the period was favourably affected by a one-off gain as a result of closing an interest rate hedge, the company, listed both on the Dubai Financial Market and the Boursa Kuwait, said in a statement on Wednesday.
Net revenue for Q3 was KWD 212.8 million, 46% higher on year.
For the first nine months of 2023, Agility’s net profit was KWD 57.5 million, an increase of 39%. Revenue grew 92% versus the same period in 2022.
Agility Vice Chairman Tarek Sultan said: “The results from our operating businesses continue to be positive, and a testament to the global growth strategy pursued by the company. As always, we will look for opportunities to drive returns and unlock value for shareholders. In terms of our investments segment, global equity markets paused and reversed in the third quarter of the year, and we can see that reflected in our results. Agility takes a long-term view of its investments.”
Kuwait-based global logistics and supply chain services provider Agility has reported its Q3 2023 net profit attributable to shareholders at 28 million Kuwait dinars ($91million), more than double the KWD 12.6 million in the year-ago period.
The profit for the period was favourably affected by a one-off gain as a result of closing an interest rate hedge, the company, listed both on the Dubai Financial Market and the Boursa Kuwait, said in a statement on Wednesday.
Net revenue for Q3 was KWD 212.8 million, 46% higher on year.
For the first nine months of 2023, Agility’s net profit was KWD 57.5 million, an increase of 39%. Revenue grew 92% versus the same period in 2022.
Agility Vice Chairman Tarek Sultan said: “The results from our operating businesses continue to be positive, and a testament to the global growth strategy pursued by the company. As always, we will look for opportunities to drive returns and unlock value for shareholders. In terms of our investments segment, global equity markets paused and reversed in the third quarter of the year, and we can see that reflected in our results. Agility takes a long-term view of its investments.”
#Saudi aircraft maintenance company Saudia Technic targets IPO before 2030 | Reuters
Saudi aircraft maintenance company Saudia Technic targets IPO before 2030 | Reuters
Saudi Arabia's Saudia Technic, the aircraft maintenance subsidiary of state-owned Saudia Group, is targeting a public share sale before the end of the decade, its CEO told Reuters at the Dubai Airshow.
The company is planning an initial public offering (IPO) in either 2028 or 2029, Fahd Cynndy said on Tuesday on the sidelines of the major aviation industry event, without disclosing which exchange it would float on.
The company has no immediate plans to tap debt markets, he added.
"We have institutional investors that have committed a significant amount for the capability building .... It covers our business plan up until the IPO target," Cynndy said.
Saudi Arabia has seen a flurry of IPOs in recent years as several state-backed companies have listed shares or are pursuing listings, as part of broader plans to deepen capital markets, grow the private sector, and attract investment.
Saudi Arabia's Saudia Technic, the aircraft maintenance subsidiary of state-owned Saudia Group, is targeting a public share sale before the end of the decade, its CEO told Reuters at the Dubai Airshow.
The company is planning an initial public offering (IPO) in either 2028 or 2029, Fahd Cynndy said on Tuesday on the sidelines of the major aviation industry event, without disclosing which exchange it would float on.
The company has no immediate plans to tap debt markets, he added.
"We have institutional investors that have committed a significant amount for the capability building .... It covers our business plan up until the IPO target," Cynndy said.
Saudi Arabia has seen a flurry of IPOs in recent years as several state-backed companies have listed shares or are pursuing listings, as part of broader plans to deepen capital markets, grow the private sector, and attract investment.
Foreign Flows Are Resuming to #Saudi Stocks After October Exodus - Bloomberg
Foreign Flows Are Resuming to Saudi Stocks After October Exodus - Bloomberg
Foreign investors are snapping up Saudi stocks after last month’s rush for the exit, as investors weigh attractive equity valuations against the impact of the Israel-Hamas war in the Middle East.
Net inflows have extended for a second week after October saw the largest monthly net redemptions of 2023, according to data from the stock exchange. International traders have bought 12.7 billion riyals ($3.4 billion) of Saudi stocks so far in November, after they sold 26 billion riyals the month prior, resulting in net outflows.
“Valuations in Saudi Arabia are not terribly stretched,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital. “If market perception of geopolitical risk reduces markedly, we may see more inflows into the regional markets.”
Foreign investors are snapping up Saudi stocks after last month’s rush for the exit, as investors weigh attractive equity valuations against the impact of the Israel-Hamas war in the Middle East.
Net inflows have extended for a second week after October saw the largest monthly net redemptions of 2023, according to data from the stock exchange. International traders have bought 12.7 billion riyals ($3.4 billion) of Saudi stocks so far in November, after they sold 26 billion riyals the month prior, resulting in net outflows.
“Valuations in Saudi Arabia are not terribly stretched,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital. “If market perception of geopolitical risk reduces markedly, we may see more inflows into the regional markets.”
#Saudi inflation continues to ease in October to 1.6% | Reuters
Saudi inflation continues to ease in October to 1.6% | Reuters
Saudi Arabia's annual inflation rate eased to 1.6% in October, from 1.7% the previous month, government data showed on Wednesday, with housing rents once again the main driver.
Prices of housing, water, electricity, gas, and other fuels rose 7.8% in October, pushed higher by an increase in overall housing rents of 9.3% of which rents for apartments rose almost 15%, the General Authority for Statistics reported.
Prices for food and beverages, which had been the main driver of inflationary pressures for much of 2022, rose 0.8% in October, although restaurants and hotel prices rose almost 2% due to an increase in catering services prices.
Inflation has been slowly easing in Saudi Arabia this year has remained relatively contained compared to global inflation levels, in part due to government policies to manage price hikes.
The government has forecast inflation at 2.6% for 2023 before easing to 2.2% in 2024.
Saudi Arabia's annual inflation rate eased to 1.6% in October, from 1.7% the previous month, government data showed on Wednesday, with housing rents once again the main driver.
Prices of housing, water, electricity, gas, and other fuels rose 7.8% in October, pushed higher by an increase in overall housing rents of 9.3% of which rents for apartments rose almost 15%, the General Authority for Statistics reported.
Prices for food and beverages, which had been the main driver of inflationary pressures for much of 2022, rose 0.8% in October, although restaurants and hotel prices rose almost 2% due to an increase in catering services prices.
Inflation has been slowly easing in Saudi Arabia this year has remained relatively contained compared to global inflation levels, in part due to government policies to manage price hikes.
The government has forecast inflation at 2.6% for 2023 before easing to 2.2% in 2024.
Most major Gulf markets track Asian shares higher | Reuters
Most major Gulf markets track Asian shares higher | Reuters
Most major stock markets in the Gulf rose in early trade on Wednesday, tracking Asian shares higher in anticipation of stimulus in China and an end to rate hikes in the United States.
U.S. headline consumer prices were flat in October, against expectations of a 0.1% rise, data showed on Tuesday. Core CPI, at 0.2%, also came in below a forecast of 0.3%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI) rose 0.8%, with Elm Co (7203.SE) gaining 2% and Al Rajhi Bank (1120.SE) rising 2.2%.
Saudi Aramco (2222.SE) retreated 1.2%, as the firm traded ex-dividend.
The kingdom's annual inflation rate eased to 1.6% in October, from 1.7% the previous month, government data showed on Wednesday, with residential rents once again the main driver.
The Qatari benchmark (.QSI) advanced 1.3%, with almost all sectors rising including petrochemical maker Industries Qatar (IQCD.QA), which was up 2.1%.
In Abu Dhabi, the index (.FTFADGI) added 0.1%.
Oil prices - often a catalyst for Gulf financial markets - rose as China's factory output and retail sales beat expectations, a day after the International Energy Agency (IEA) raised its oil demand growth forecast for this year.
Dubai's main share index (.DFMGI), however, eased 0.1%, hit by a 2.6% decline in diversified investment group Dubai Investments (DINV.DU).
Separately, Dubai's main airport recorded 22.9 million passengers in the third quarter, the highest quarterly traffic since 2019, operator Dubai Airports said on Wednesday, and is on track to surpass pre-pandemic numbers for the full year.
Most major stock markets in the Gulf rose in early trade on Wednesday, tracking Asian shares higher in anticipation of stimulus in China and an end to rate hikes in the United States.
U.S. headline consumer prices were flat in October, against expectations of a 0.1% rise, data showed on Tuesday. Core CPI, at 0.2%, also came in below a forecast of 0.3%.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the U.S. Federal Reserve, as most regional currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI) rose 0.8%, with Elm Co (7203.SE) gaining 2% and Al Rajhi Bank (1120.SE) rising 2.2%.
Saudi Aramco (2222.SE) retreated 1.2%, as the firm traded ex-dividend.
The kingdom's annual inflation rate eased to 1.6% in October, from 1.7% the previous month, government data showed on Wednesday, with residential rents once again the main driver.
The Qatari benchmark (.QSI) advanced 1.3%, with almost all sectors rising including petrochemical maker Industries Qatar (IQCD.QA), which was up 2.1%.
In Abu Dhabi, the index (.FTFADGI) added 0.1%.
Oil prices - often a catalyst for Gulf financial markets - rose as China's factory output and retail sales beat expectations, a day after the International Energy Agency (IEA) raised its oil demand growth forecast for this year.
Dubai's main share index (.DFMGI), however, eased 0.1%, hit by a 2.6% decline in diversified investment group Dubai Investments (DINV.DU).
Separately, Dubai's main airport recorded 22.9 million passengers in the third quarter, the highest quarterly traffic since 2019, operator Dubai Airports said on Wednesday, and is on track to surpass pre-pandemic numbers for the full year.