#SaudiArabia Heathrow Deal Adds to European Portfolio - Bloomberg

MBS: Saudi Arabia Heathrow Deal Adds to European Portfolio - Bloomberg

Saudi Arabia’s powerful sovereign wealth fund is set to add a crucial transport hub to the growing list of European assets linked to the oil-rich kingdom and its de facto ruler, Crown Prince Mohammed Bin Salman.

The investments are a sign of how Saudi Arabia is becoming an increasingly active dealmaking force outside the United States, which has typically been the focus of the kingdom’s attention. Below is a list of some of Saudi Arabia’s most significant European investments:

Heathrow Airport
The Public Investment Fund this week said it will acquire a 10% stake in London’s Heathrow Airport in a deal that also involved France’s Ardian. The two investors will take a combined 25% stake in the airport worth £2.4 billion ($3 billion). PIF, as the wealth fund is known, said it aims to be a “long-term partner” for the airport, which already counts sovereign funds from Qatar and Singapore as investors. It comes as Saudi Arabia embarks on a plan to spend hundreds of billions of dollars on boosting its own tourism and travel infrastructure to attract more international visitors.

Telefonica
Government-controlled Saudi Telecom Co. said in September it’s seeking to buy a 10% stake in Spain’s Telefonica SA in a deal valued at around $2.25 billion. STC, as the firm 64% owned by the country’s wealth fund is known, said at the time it was making a ‘friendly’ approach and was supportive of Telefonica’s management. Yet the deal sparked a backlash in Spain, with the government saying it was considering taking its own stake in the business to shield its “most strategic” company from foreign takeovers and limit the influence of international investors.

Aston Martin
PIF holds a 21% stake in British luxury carmaker Aston Martin Lagonda Global Holdings Plc. The Saudi fund built its stake as part of a wider investment in global carmakers that includes a 60% stake in US electric vehicle maker Lucid Group Inc. The deals are part of the PIF’s wider strategy to develop a domestic auto industry on the west coast of the kingdom.

Newcastle FC
In one of PIF’s first big sporting acquisitions, it was the major backer of a more than £300 million deal to acquire English Premier League football club Newcastle United FC in 2021. The deal was in limbo for some time as the UK Premier League sought assurances the PIF, which is chaired by Prince Mohammed, was independent from the state. Once complete, the acquisition showcased Saudi Arabia’s sporting ambitions, and paved the way for the kingdom to spend nearly $1 billion this year on international players to join its Saudi Pro League.

Vantage Towers
The PIF was one of the backers, alongside KKR & Co. and Global Infrastructure Partners, for a deal to buy a stake in Vodafone Group Plc’s towers unit in November 2022. The deal valued Vantage Towers AG at €16.2 billion ($17.8 billion).

Teesside
Saudi Basic Industries Corporation., the chemicals firm controlled by oil producer Saudi Aramco, is investing nearly £1 billion in its facility in the northeast of England as part of an upgrade of its UK operations to lower emissions. The deal, announced in 2021, was greeted by Britain’s then Prime Minister Boris Johnson as a key deal to safeguard jobs and position the area as a hub for emissions reductions.

#Dubai Taxi Gets $41 Billion in Orders for $315 Million IPO - Bloomberg

Dubai Taxi Gets $41 Billion in Orders for $315 Million IPO - Bloomberg

Dubai Taxi Co. received over 150 billion dirhams ($41 billion) in investor orders for its $315 million initial public offering, a record for the city, in a sign the Persian Gulf continues to be a bright spot for listings.

The IPO, which is Dubai’s first privatization in over a year, was 130 times covered, according to a statement on Wednesday. The company said it was the highest oversubscription level ever for a Dubai IPO. The institutional investor tranche was almost 135 times oversubscribed.

The emirate’s government sold 624.75 million shares, or a 25% stake, at 1.85 dirhams each, which is at the top of a marketed range, it said. The pricing values Dubai Taxi at 4.62 billion dirhams, and shares will start trading on Dec. 7.

The overwhelming level of demand for Dubai Taxi’s IPO underscores the chasm between the Gulf’s booming listings market and the gloomy sentiment globally, where share sales have been hobbled for the past two years by high interest rates and market volatility.

The energy-rich region has instead become a hotspot for IPOs thanks to elevated oil prices, strong local investor demand and government efforts to list state-owed companies.

Dubai is the Gulf’s best performing market this year, with the benchmark index up 20% so far on the back of a jump in property-related shares.

Most Gulf markets drop ahead of OPEC+ meeting; #AbuDhabi gains | Reuters

Most Gulf markets drop ahead of OPEC+ meeting; Abu Dhabi gains | Reuters

Most stock markets in the Gulf were subdued on Wednesday amid volatile oil prices, as investors remained cautious ahead of a crucial OPEC+ meeting to decide output policy in the coming months.

Oil prices - a key catalyst for the Gulf's financial markets - rose 1.2% on Wednesday with Brent trading at $82.69 a barrel by 1340 GMT, as supply disruption caused by a storm in the Black Sea and lower U.S. inventories drove buying.

The OPEC+ group comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies is scheduled to meet online on Thursday to decide oil output levels for 2024, according to a draft agenda seen by Reuters on Monday.

The Qatari index (.QSI) was down for a sixth consecutive session and ended 0.2% lower, weighed down by a 1.3% drop in Commercial Bank (COMB.QA) and 1.8% decline in Dukhan Bank(DUBK.QA).

Dubai's benchmark index (.DFMGI) fell 0.2%, snapping three consecutive sessions of gains, with most sectors in the red.

Emirates Central Cooling Systems Corp (EMPOWER.DU) declined 1.8% and Emirate's largest lender Emirates NBD (ENBD.DU) lost 0.7%.

Saudi Arabia's benchmark index (.TASI) gained marginally, with Etihad Atheeb Telecom (7040.SE) rising 1.3% and Saudi Pharmaceutical Industries and Medical Appliances Corporation (2070.SE) surging 8.3%.

However, Lumi Rental (4262.SE) and Elm Company (7203.SE) dropped 3.2% and 1.2%, respectively.

In Abu Dhabi, the benchmark index (.FTFADGI) was up for a second consecutive session, ending 0.1% higher, helped by a 2.5% surge in conglomerate Alpha Dhabi (ALPHADHABI.AD) and 1.9% gain in Abu Dhabi National Oil Co for Distribution (ADNOCDIST.AD).

Outside the Gulf, Egypt's blue-chip index (.EGX30) fell for a second consecutive session and ended 1.4% lower, with all sectors in the red.

Commercial International Bank (COMI.CA) declined 2.7% and Misr Fertilizer (MFPC.CA) slumped 3.6%.

Fertilizers and petrochemicals maker MOPCO reported a decrease in third-quarter consolidated net profit.

#Dubai Firm’s Africa Ambitions Raises Carbon Colonialism Concerns - Bloomberg

Dubai Firm’s Africa Ambitions Raises Carbon Colonialism Concerns - Bloomberg

While a new UN market for the international trading of carbon credits begins to take shape, Blue Carbon, a firm backed by an Emirati royal family, has been on the hunt. This summer, it sought to gain rights to 10% of Liberia’s landmass to generate carbon credits, and it’s been discussing similar deals with several countries across the continent, including Zimbabwe, Zambia and Tanzania.

Blue Carbon’s recent spree is seen by some as a harbinger of a new era of mega-deals as the UN market for country-to-country offset trading begins to get off the ground. Finalizing the rules governing that will be central to discussions at this year’s UN climate talks starting Thursday in Dubai.

The Liberia deal and the prospect of others like it are giving rise to concerns of “carbon colonialism” – whereby foreign entities gain control over forest land on the continent to offset the emissions from rich, polluting countries, with very little benefit to local communities.

“There’s a risk of a land grab, a risk of land dispossession because richer countries want to lock land up for climate mitigation,” said Kate Dooley, an expert on forest carbon accounting and governance at the University of Melbourne.

Blue Carbon’s rights would be “limited to project implementation” and the company wouldn’t own the land, it said in an emailed response to questions. The company said it will respect the consent of local communities, and that the project land area is expected to narrow after feasibility and eligibility assessments.

#Dubai Is Bucking a Global Slowdown in Luxury Real Estate Sales - Bloomberg

Dubai, London Luxury Real Estate Sales: Homes Selling for More Than $10 Million - Bloomberg

Not even the super wealthy are immune to a slowing real estate market.

A total of 362 homes sold for more than $10 million across 12 global markets between July and September, down 2.4% from the same period last year, according to real estate company Knight Frank.

In London, 51 so-called super-prime homes sold in the third quarter, down from 63 last year. In Singapore, there were 13 ultra-luxury sales, down from 34. New York also saw a drop.

Dubai, meanwhile, bucked the slowdown with 89 sales over $10 million, an increase from 58 in the third quarter of 2022. Geneva and Hong Kong also posted increases.

First Asia ETF Tracking #Saudi Arabian Stocks Debuts in Hong Kong - Bloomberg

First Asia ETF Tracking Saudi Arabian Stocks Debuts in Hong Kong - Bloomberg

The first exchange-traded fund tracking Saudi Arabian shares debuted today in Hong Kong, marking the largest of its type to trade in the city this year and underscoring efforts by the Middle Eastern country and the Asian financial hub to build closer ties.

The CSOP Saudi Arabia ETF, domiciled in Hong Kong, is Asia’s first to focus on shares listed in Riyadh. It has more than $1 billion in assets and counts Saudi Arabia’s sovereign fund as a top investor.

Hong Kong last month announced steps to boost investor activity to counter a slump in average trading volume. While a 14% slide puts the Hang Seng Index on course for a fourth consecutive year of losses, the volume of shares traded in Riyadh has risen and a 6% gain in its main equities gauge in 2023 is outperforming emerging market peers.

“The Saudi market is expected to more than double by 2030. There is a lot of interest in this market,” said Rebecca Sin, an analyst at Bloomberg Intelligence in Hong Kong. Apart from having oil giant Saudi Aramco as the second-biggest holding, the fund is “very financial heavy,” a group favored by Hong Kong investors, she added.

#Saudi's Kingdom Holding buys $450 mln stake in Citigroup from Alwaleed | Reuters

Saudi's Kingdom Holding buys $450 mln stake in Citigroup from Alwaleed | Reuters

Saudi Arabian Prince Alwaleed Bin Talal's investment company Kingdom Holding (4280.SE) said on Wednesday it raised its ownership in Citigroup (C.N) to 2.2% after acquiring from the prince a stake in the bank worth about $450 million.

The company previously owned 1.6% of the Wall Street lender, it told the Saudi bourse in a filing, adding that the deal supported Kingdom Holding's strategic plans, but did not elaborate.

Saudi Arabia’s self-styled Warren Buffett, Prince Alwaleed has made hundreds of millions of dollars by investing with almost complete autonomy in companies from Uber to social network Twitter, now known as X.

Alwaleed rose to international prominence after making a big successful bet on Citigroup in the 1990s when the bank struggled with Latin American loan losses and the U.S. real estate market collapse. He was also an early investor in Apple.

#SaudiArabia to Buy Stake in Heathrow in Ownership Reshuffle - Bloomberg

Saudi Arabia to Buy Stake in Heathrow in Ownership Reshuffle - Bloomberg

Saudi Arabia’s Public Investment Fund will buy a 10% stake in London Heathrow Airport as part of a shareholder reshuffle, becoming a partial owner in one of Europe’s busiest airports alongside the Qatar Investment Authority.

The fund is buying the stake as Spain’s Ferrovial sells down its 25% holding. The remaining 15% held by the infrastructure firm will go to Ardian, a Paris-based private equity firm, according to a statement late Tuesday. For Ferrovial, the deal represents a £2.37 billion ($3 billion) windfall for a holding it had previously valued at zero.

The Public Investment Fund, better known as the PIF, has become a major investing force around the world as Saudi Crown Prince Mohammed bin Salman, Saudi Arabia’s de-facto leader, reshapes the oil-rich country with his own brand of state capitalism. The fund, part of a consortium that bought Vodafone Group Plc’s towers unit in 2022, aims to reach $2 trillion in assets by 2030. That would make PIF the world’s biggest wealth fund, a title now held by Norway’s oil fund.

Ferrovial, whose airport interests span the UK, Turkey and a stake in one terminal at New York’s John F. Kennedy, said earlier this month it would consider a sale of its holding in London Heathrow. Air traffic has rebounded after being decimated during the Covid-19 pandemic, helping Heathrow to narrow its losses over the first nine months of this year.

Most Gulf markets fall on caution ahead of OPEC+ meeting; #Saudi gains | Reuters

Most Gulf markets fall on caution ahead of OPEC+ meeting; Saudi gains | Reuters

Most Gulf stock markets dropped in early trade on Wednesday amid volatile oil prices, as investors remained cautious ahead of a crucial OPEC+ meeting to decide output policy in the coming months.

Oil prices - a key catalyst for the Gulf's financial markets - fell slightly with Brent trading at $81.59 a barrel by 0740 GMT, after it gained about 2% on Tuesday.

OPEC+ is due to hold an online ministerial meeting on Thursday to discuss 2024 production targets, after delaying the meeting from Nov. 26.

In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.5%, weighed down by a 1.4% drop in Multiply(MULTIPLY.AD) and 1.2% decline in National Marine Dredging (NMDC.AD).

Dubai's benchmark stock index (.DFMGI) fell 0.1% in early trade, with most sectors in the red.

Emirates Central Cooling Systems Corp (EMPOWER.DU) declined 1.8% and Aramex (ARMX.DU) dropped 3.8%.

The Qatari benchmark index (.QSI) was down 0.1% with most sectors in the red, dragged down by 0.6% drop in Qatar Commercial Bank (COMB.QA) and 0.7% decline in Dukhan Bank (DUBK.QA).

Saudi Arabia's benchmark stock index (.TASI) edged up 0.1%, helped by gains in most sectors with Etihad Atheeb Telecommunication (7040.SE) surging 2.9% and Arabian Pipes (2200.SE) climbing 2.2%.