TCI joins hedge fund race to open #UAE office

TCI joins hedge fund race to open UAE office

Sir Christopher Hohn’s activist hedge fund TCI has opened an office in Abu Dhabi, joining a wave of groups betting that the United Arab Emirates will help power the industry’s growth. 

The fund, which manages $60bn, said it will use the office to forge ties with local investors and expand its assets under management. Bronwyn Owen, the group’s head of investors relations, is relocating from New York to run the office. 

The UAE has in recent years become a hedge fund hotspot, drawing the likes of Izzy Englander’s Millennium, Steve Cohen’s Point 72, quant investing firm AQR and macro fund Brevan Howard. 

Industry executives say that having an office in the region has become increasingly important to winning local business and building ties with major sovereign wealth funds. 

“The Middle East is a vital market for the investment management industry, both from a talent and asset growth perspective, as well as a critical partner in global efforts to reduce carbon emissions and climate change,” Hohn said on Thursday.

#UAE Tightens Scrutiny on Russian Firms Amid Pressure From US - Bloomberg

UAE Tightens Scrutiny on Russian Firms Amid Pressure From US - Bloomberg

Russian firms based in the United Arab Emirates are coming under greater scrutiny from local banks as the Gulf state faces increased US pressure to tackle sanctions evasion and ramps up efforts to get off a global organization’s watch list.

The UAE attracted a flood of Russian money in the first year after President Vladimir Putin ordered troops into Ukraine, with firms finding banking quick and easy to navigate. That process has gradually grown more arduous, with rejections increasingly common, because the UAE is showing less appetite for sanctions-related risk and pushing to get off the so-called gray list, according to more than half a dozen business owners and consultants interviewed by Bloomberg, who asked not to be identified as such information isn’t public.

Money transfers — whether for companies repatriating funds to Russia or moving cash to a third country — have also been subject to greater oversight and now take more time, the people said. Some banks are demanding more documentation, and at times blocking funds, while seeking justification for the transfer or questioning the origin of the money, they said.

In the initial aftermath of Russia’s invasion of Ukraine, UAE officials hewed to policies that attracted a surge of inflows from high net worth individuals. In recent months, officials have looked to close perceived gaps in sanctions compliance, the people said, as the UAE seeks to be removed from a list of jurisdictions subject to more oversight maintained by the Financial Action Task Force, a group that aims to combat global money laundering.

In the meantime, the US, UK and European Union have ramped up pressure on Emirati officials to tackle illicit flows and close channels used by Moscow to skirt trade sanctions and finance the Kremlin’s war machine. This month, the Biden administration targeted several UAE-based shipping firms, part of a crackdown on non-compliance with its oil price cap.

#UAE’s Federal Wealth Fund Names Al Mehairi CEO - Bloomberg

UAE’s Federal Wealth Fund Names Al Mehairi CEO - Bloomberg

The United Arab Emirates’ federal wealth fund has appointed Mohamed Hamad Al Mehairi as its new chief executive, replacing Mubarak Rashed Al Mansoori who led the $90 billion entity for just over 15 years.

Al Mehairi was previously executive director of strategic assets at the Emirates Investment Authority. He’s also worked at the $276 billion Abu Dhabi wealth fund, Mubadala Investment Co., and state energy firm Adnoc.

Hassa Balouma, who sits on the board of several EIA portfolio companies, was elevated to the position of executive director, according to two people familiar with the matter, who requested anonymity as the matter is private. That positions her as one of the most senior women at a sovereign wealth fund in the Persian Gulf.

Representatives at EIA didn’t respond to calls and messages seeking comment.

Established in 2007, EIA is the smallest of the UAE’s multiple wealth funds. Its largest holding is a 60% stake in Emirates Telecom, a $46 billion giant that’s Vodafone Group Plc’s biggest shareholder and has been pursuing an ambitious global expansion strategy.

The fund also holds a stake in Du, which is the UAE’s other telecoms firm. In recent years, the fund has invested in a string of local listings including in the landmark IPO of Dubai’s main utility.

Sheikh Mansour bin Zayed, a brother to UAE President Sheikh Mohammed bin Zayed, is chairman of the EIA. Other wealth funds in the Gulf country include Abu Dhabi Investment Authority, which is among the world’s largest, and ADQ.

Oil slips 2% on growing angst over delayed OPEC+ meeting | Reuters

Oil slips 2% on growing angst over delayed OPEC+ meeting | Reuters

Oil prices dipped about 2% on Thursday, extending losses after the postponement of an OPEC+ meeting stoked expectations that the group might not deepen output cuts next year.

Brent crude futures were down $1.40, or about 1.7%, at $80.56 a barrel by 1434 GMT after falling as much as 4% on Wednesday.

U.S. West Texas Intermediate crude slid $1.37, also about 1.4%, to $75.73 after dropping as much as 5% in the previous session.

In a surprise move on Wednesday, the Organization of the Petroleum Exporting Countries and allies including Russia delayed to Nov. 30 a ministerial meeting at which they were expected to discuss oil output cuts.

Producers were struggling to agree on output levels ahead of the meeting originally set for Nov. 26, OPEC+ sources said, suggesting that the disagreement was largely linked to a trio of African nations.

Major Gulf bourses dip on falling oil prices | Reuters

Major Gulf bourses dip on falling oil prices | Reuters

Major stock markets in the Gulf dropped on Thursday on falling oil prices after the postponing of an OPEC+ meeting stoked speculation the group might not deepen output cuts next year.

Oil prices - a catalyst for the Gulf's financial markets - slipped on Thursday after the Organization of the Petroleum Exporting Countries and allies including Russia in a surprise move on Wednesday delayed a ministerial meeting to Nov. 30.

Producers were struggling to agree on output levels ahead of the meeting originally set for Nov. 26, OPEC+ sources said.

Brent futures were down 0.9% at $81.925 a barrel by 1300 GMT, after falling as much as 4% on Wednesday.

Dubai's benchmark index (.DFMGI) fell 0.3%, contrasting with the previous session's gain, weighed down by a 2.3% decline in Emirates Central Cooling Systems Corp (EMPOWER.DU) and a 0.9% drop in Dubai Islamic Bank (DISB.DU).

Saudi Arabia's benchmark index (.TASI) was down for a second straight session and ended 0.2% lower, with most sectors in the red.

Saudi Arabian Mining (1211.SE) slid 2.2% and oil major Saudi Aramco (2222.SE) lost 0.2%.

The Qatari index (.QSI) fell 0.1%, dragged down by losses in industry, energy and materials sectors, with Industries Qatar (IQCD.QA) slipping 1% and Qatar Gas Transport Nakilat Co (QGTS.QA) dropping 1.2%.

In Abu Dhabi, the benchmark index (.FTFADGI) ended flat, with ADNOC Gas (ADNOCGAS.AD) dropping 2.4% while the UAE's largest lender First Abu Dhabi Bank (FAB.AD) gained 0.8%.

Outside the Gulf, Egypt's blue-chip index (.EGX30) extended its rally to a third session and ended 2% higher, with almost all sectors in the green.

Commercial International Bank (COMI.CA) surged 5.1% and EFG Holding (HRHO.CA) rose 3.3%.

Can an Oil Exec Lead COP28 to a Successful Outcome? - Bloomberg podcast

Can an Oil Exec Lead COP28 to a Successful Outcome? - Bloomberg

When COP28 kicks off in Dubai on Nov. 30, it will mark the next stage of a prolonged referendum on this year’s conference president. Sultan Al Jaber, chief executive of Abu Dhabi National Oil Co. (Adnoc), has been criticized for blurring the lines between his day job and his conference role, and the delayed release of a COP28 agenda invited one constant question: What kind of climate conference could an oil boss possibly host?

“When I was in the UAE, I got told a couple of times, ‘Look, over here, things happen at the last minute,’” says Akshat Rathi on this week’s Zero. Rathi, who profiled Al Jaber in April, is more optimistic about the conference now than he was at the time. “It feels like there will be an agreement,” he tells Bloomberg Green Executive Editor (and Zero guest host) Aaron Rutkoff. Still, “we know by nature of COPs that agreement is never going to be enough.”

Potential points of consensus — known as “landing zones” in COP parlance — include tripling renewable energy capacity and doubling energy efficiency. On the flip side, arguments will play out around climate finance, as well as the difference between “orderly decline,” “phase out” and “phase down” when it comes to fossil fuels. This year’s conference also comes at a tough moment geopolitically, with two ongoing conflicts and uncertainty about where the next gathering will take place. It’s a lot for a COP president to wrangle.

#Qatar Energy is beneficiary of $570 mln ruling against Endesa - sources | Reuters

QatarEnergy is beneficiary of $570 mln ruling against Endesa - sources | Reuters

QatarEnergy is the company to which Spanish power utility Endesa (ELE.MC) will have to pay $570 million following an arbitration ruling over a liquefied natural gas (LNG) contract dispute, three people familiar with the matter told Reuters on Wednesday.

The Spanish firm said on Monday it would have to pay the sum to an unidentified LNG producer following a ruling by the International Court of Arbitration of the International Chamber of Commerce in a dispute over a retroactive price adjustment.

The opposing party was seeking around $1.28 billion, Endesa said in its financial report in October.

State-owned QatarEnergy didn't immediately reply to a request for comment outside of usual office hours.

An Endesa spokesperson declined to comment. Earlier on Wednesday, Endesa Chief Executive Jose Bogas said the other party in the dispute was from Qatar, Nigeria or Algeria.

#UAE Green Bond Sales Surge Before COP28 - Bloomberg

UAE Green Bond Sales Surge Before COP28 - Bloomberg

A record amount of green debt has been raised this year by issuers in the United Arab Emirates and Saudi Arabia ahead of a major global climate conference starting next week in Dubai.

Issuance in the Gulf States has reached $14.6 billion year-to-date, according to data compiled by Bloomberg, with the majority coming from borrowers in the UAE. Another big chunk of the amount is a $5.5 billion multi-tranche bond by Saudi Arabia’s Public Investment Fund in February.

The jump in sales comes as the largely oil-dependent nations in the Gulf Cooperation Council burnish their green credentials ahead of the COP28 climate summit, starting at the end of November. While the amount raised pales in comparison to issuance in Europe, it’s more than double what was sold in the region in 2022.

“With COP28 happening in the UAE this year a lot of issuers have accelerated or initiated ESG financing frameworks, given the increased focus in the region on energy transition agenda,” said Khaled Darwish, HSBC Bank Middle East Limited’s head of debt capital markets for Central Eastern Europe, the Middle East and Africa.

Major Gulf markets fall along with oil prices | Reuters

Major Gulf markets fall along with oil prices | Reuters

Major stock markets in the Gulf fell in early trade on Thursday on falling oil prices after OPEC+ postponed a ministerial meeting, leading to speculation that producers might cut output less than earlier anticipated.

Brent futures were down $1.02, or 1.2%, at $80.94 a barrel by 0625 GMT, after falling as much as 4% on Wednesday.

In a surprise move, the Organization of the Petroleum Exporting Countries and allies including Russia delayed to Nov. 30 a ministerial meeting where they were expected to discuss oil output cuts.

Producers were struggling to agree on output levels and hence possible reductions ahead of the meeting originally set for Nov. 26, OPEC+ sources said.

Saudi Arabia's benchmark index (.TASI) fell 0.1%, on course to extend losses from the previous session, hit by a 0.2% drop in oil giant Saudi Aramco (2222.SE).

U.S. Secretary of State Antony Blinken and Saudi Foreign Minister Prince Faisal bin Farhan Al Saud reaffirmed their commitment to preventing a spread of the Israel-Palestinian conflict on Wednesday, the State Department said.

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

Trading worldwide was expected to be subdued due to the closure of U.S. markets for the Thanksgiving holiday.

Dubai's main share index (.DFMGI) dropped 0.3%, weighed down by a 2.3% fall in Emirates Central Cooling Systems (EMPOWER.DU) and a 0.5% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

However, the losses were cushioned as confidence grew that interest rates globally will head lower next year.

The Qatari benchmark (.QSI) retreated 0.3%, with petrochemical maker Industries Qatar (IQCD.QA) losing 1.2%.