Investment focus for Abu Dhabi wealth fund Mubadala will shift to Asia -CEO | Reuters
The investment focus for Abu Dhabi's sovereign wealth fund Mubadala (MUBDEV.UL) will increasingly shift towards Asia, though the United States will remain a key market, the fund's Chief Executive said on Thursday.
"The U.S. will remain I think an unbelievably attractive market and a key market for us," Khaldoon Al Mubarak said at the 2023 Milken Institute Middle East and Africa Summit.
However, he said its main investment flows were changing, with less emphasis on the United States and Europe.
"The growth is in the east today," Al Mubarak said, specifically citing India and Southeast Asia.
"It's in big economies with big populations that are growing, and we didn't have as much of a focus on that in the last 10 years. We have a lot more focus today. And we're building up that capability."
Media reports said that U.S. national security officials were scrutinising Mubadala's $3 billion takeover of New York-based Fortress Investment Group, and Bloomberg last month reported that Middle Eastern wealth funds are facing greater US scrutiny as part of a pushback on entities potentially having closer ties to China.
Thursday 7 December 2023
Turkey Stocks, Bonds: Foreigners Turn Net Buyers - Bloomberg
Turkey Stocks, Bonds: Foreigners Turn Net Buyers - Bloomberg
Capital flows from foreigners into Turkish stocks and bonds are set to turn positive in 2023 for the first time in six years, thanks to favorable sentiment following Turkey’s pivot in June toward higher interest rates and a more orthodox monetary policy.
Foreign investors bought a net $528.6 million in Turkish equities and bonds last week, taking cumulative inflows this year to $1.1 billion, according to central bank data. The last year foreigners were net buyers of Turkish assets was in 2017.
Since Turkey’s President Recep Tayyip Erdogan appointed two former Wall Street bankers to manage the country’s economy in early June, foreigners bought a net $2.7 billion in Turkish stocks and bonds. The benchmark Borsa Istanbul 100 Index has risen 71% in lira terms and 18% in US dollar terms since presidential elections in May, while Turkish eurobonds and lira bonds have started rallying since then.
Both Treasury and Finance Minister Mehmet Simsek and the Central Bank Governor Hafize Gaye Erkan have advocated gradual changes to unorthodox policies. Overseas investors appear to be more optimistic and may be ready to give a chance to Turkish assets again after years of unconventional policies sent foreign ownership to record low levels.
Capital flows turned negative back in 2018, when Erdogan appointed his son-in-law Berat Albayrak as economy czar. Investors saw that move as paving the way for the president to exert heavier influence over the economy’s administration. For much of the intervening period, Erdogan championed unconventional policies that prioritized growth at the expense of price stability, prompting an exodus of foreign investors.
Capital flows from foreigners into Turkish stocks and bonds are set to turn positive in 2023 for the first time in six years, thanks to favorable sentiment following Turkey’s pivot in June toward higher interest rates and a more orthodox monetary policy.
Foreign investors bought a net $528.6 million in Turkish equities and bonds last week, taking cumulative inflows this year to $1.1 billion, according to central bank data. The last year foreigners were net buyers of Turkish assets was in 2017.
Since Turkey’s President Recep Tayyip Erdogan appointed two former Wall Street bankers to manage the country’s economy in early June, foreigners bought a net $2.7 billion in Turkish stocks and bonds. The benchmark Borsa Istanbul 100 Index has risen 71% in lira terms and 18% in US dollar terms since presidential elections in May, while Turkish eurobonds and lira bonds have started rallying since then.
Both Treasury and Finance Minister Mehmet Simsek and the Central Bank Governor Hafize Gaye Erkan have advocated gradual changes to unorthodox policies. Overseas investors appear to be more optimistic and may be ready to give a chance to Turkish assets again after years of unconventional policies sent foreign ownership to record low levels.
Capital flows turned negative back in 2018, when Erdogan appointed his son-in-law Berat Albayrak as economy czar. Investors saw that move as paving the way for the president to exert heavier influence over the economy’s administration. For much of the intervening period, Erdogan championed unconventional policies that prioritized growth at the expense of price stability, prompting an exodus of foreign investors.
Most Gulf bourses fall on weak oil, #Saudi edges higher | Reuters
Most Gulf bourses fall on weak oil, Saudi edges higher | Reuters
Most stock markets in the Gulf ended lower on Thursday on weak oil prices, although the Saudi index bucked the trend to close higher.
Oil prices - a catalyst for the Gulf's financial markets - reclaimed some ground after falling nearly 4% overnight to their lowest settlements since June, but investors remained concerned about sluggish demand in the United States and China.
Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.4% fall in top lender Emirates NBD (ENBD.DU) and a 2.4% decline in Emirates Central Cooling Systems Corp (EMPOWER.DU).
The Dubai stock market continued to record price corrections as traders remained cautious after a period of stagnation. However, the market could find some support after Dubai Taxi Co (DTC.DU) started trading, said George Khoury, Global Head of Education and Research at CFI.
"Additionally, the non-oil sector in the United Arab Emirates remains on a strong path and could help support sentiment."
Dubai Taxi Co finished 19.5% higher at 2.21 dirhams er share from the initial public offering price of 1.85 dirham.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari benchmark (.QSI) lost 0.2%, falling for a fifth consecutive session, with Qatar International Islamic Bank (QIIB.QA) dropping 2.1%.
The index posted a weekly loss of 1.9%, its worst week since Oct. 27.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) gaining 1.5%.
The Saudi stock market was more stable than its regional counterparts and was able to stay near the levels reached after its latest rebound, said Khoury.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged 0.1% lower.
Egyptian inflation is expected to slow for a second month in November on base effects and moderating food price rises, a Reuters poll showed on Wednesday.
The state statistics agency CAPMAS and the central bank are scheduled to release November inflation data on Sunday.
Most stock markets in the Gulf ended lower on Thursday on weak oil prices, although the Saudi index bucked the trend to close higher.
Oil prices - a catalyst for the Gulf's financial markets - reclaimed some ground after falling nearly 4% overnight to their lowest settlements since June, but investors remained concerned about sluggish demand in the United States and China.
Dubai's main share index (.DFMGI) fell 0.3%, hit by a 1.4% fall in top lender Emirates NBD (ENBD.DU) and a 2.4% decline in Emirates Central Cooling Systems Corp (EMPOWER.DU).
The Dubai stock market continued to record price corrections as traders remained cautious after a period of stagnation. However, the market could find some support after Dubai Taxi Co (DTC.DU) started trading, said George Khoury, Global Head of Education and Research at CFI.
"Additionally, the non-oil sector in the United Arab Emirates remains on a strong path and could help support sentiment."
Dubai Taxi Co finished 19.5% higher at 2.21 dirhams er share from the initial public offering price of 1.85 dirham.
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The Qatari benchmark (.QSI) lost 0.2%, falling for a fifth consecutive session, with Qatar International Islamic Bank (QIIB.QA) dropping 2.1%.
The index posted a weekly loss of 1.9%, its worst week since Oct. 27.
Saudi Arabia's benchmark index (.TASI) gained 0.5%, with Al Rajhi Bank (1120.SE) gaining 1.5%.
The Saudi stock market was more stable than its regional counterparts and was able to stay near the levels reached after its latest rebound, said Khoury.
Outside the Gulf, Egypt's blue-chip index (.EGX30) edged 0.1% lower.
Egyptian inflation is expected to slow for a second month in November on base effects and moderating food price rises, a Reuters poll showed on Wednesday.
The state statistics agency CAPMAS and the central bank are scheduled to release November inflation data on Sunday.
#Qatar approached to take stake in Patrick Drahi’s auction house Sotheby’s
Qatar approached to take stake in Patrick Drahi’s auction house Sotheby’s
Bankers have sounded out potential buyers for a minority stake in Sotheby’s as its owner Patrick Drahi comes under pressure to sell assets at his indebted telecoms group Altice.
Those approached included European billionaires and the Qatar Investment Authority, said two people with knowledge of the contacts. The QIA held unfruitful talks with Drahi a year ago about buying a Sotheby’s stake via a potential capital increase, another person directly in the know said.
However, people close to Drahi said the Franco-Israeli billionaire was reluctant to offload Sotheby’s, which he has owned since 2019 through his personal holding company. The bankers’ approaches were informal and a deal was not imminent, they cautioned.
“Sotheby’s is a unique asset that has regularly attracted interest from investors interested in taking a minority stake,” said one of the people.
The Hamas attacks on Israel may also have complicated a potential sale to Qatar, a second person familiar with his thinking said. Drahi is a prominent figure in Israel, where he owns a television news channel and a telecoms operator, and Qatar has hosted Hamas’s political office since 2012 while pouring hundreds of millions of dollars of aid into Gaza.
Mubadala Sees US as Top Market Even After Increased Scrutiny - Bloomberg
Mubadala Sees US as Top Market Even After Increased Scrutiny - Bloomberg
Mubadala Investment Co. still sees the United States as a top investment destination, a top executive said, despite concerns over greater scrutiny from the Biden administration.
Abu Dhabi’s most active sovereign wealth fund has about $100 billion invested in the US, which translates to 42% of the firm’s portfolio, according to Waleed Al Muhairi, Mubadala’s deputy group chief executive officer. That makes the US Mubadala’s largest market, and Al Muhairi doesn’t see that changing in the next five years.
“Right now, from where I sit, the United States still represents the best risk-reward,” Al Muhairi said at the Milken Institute’s Middle East and Africa Summit in Abu Dhabi. “For us, the United States is still the best destination for capital.”
The Committee on Foreign Investment in the United States is reviewing several multibillion dollar deals by Middle Eastern wealth funds this year as part of a broader pushback on entities perceived to have close ties with Beijing, Bloomberg News reported last month. The scrutiny is particularly acute for Abu Dhabi because decisions on national security, foreign policy and international investments are made by the same few royals, people familiar with the matter said last month.
Mubadala Investment Co. still sees the United States as a top investment destination, a top executive said, despite concerns over greater scrutiny from the Biden administration.
Abu Dhabi’s most active sovereign wealth fund has about $100 billion invested in the US, which translates to 42% of the firm’s portfolio, according to Waleed Al Muhairi, Mubadala’s deputy group chief executive officer. That makes the US Mubadala’s largest market, and Al Muhairi doesn’t see that changing in the next five years.
“Right now, from where I sit, the United States still represents the best risk-reward,” Al Muhairi said at the Milken Institute’s Middle East and Africa Summit in Abu Dhabi. “For us, the United States is still the best destination for capital.”
The Committee on Foreign Investment in the United States is reviewing several multibillion dollar deals by Middle Eastern wealth funds this year as part of a broader pushback on entities perceived to have close ties with Beijing, Bloomberg News reported last month. The scrutiny is particularly acute for Abu Dhabi because decisions on national security, foreign policy and international investments are made by the same few royals, people familiar with the matter said last month.
#Dubai Taxi Jumps in Trading Debut After $315 Million IPO - Bloomberg
Dubai Taxi Jumps in Trading Debut After $315 Million IPO - Bloomberg
Dubai Taxi Co. gained as much as 19% in its debut after a $315 million initial public offering which was the city’s first privatization in over a year.
Shares in Dubai Taxi opened at 2.2 dirhams on Thursday, according to data from the Dubai stock exchange website. The stock was offered at 1.85 dirhams, which was at the top of a marketed range. The share sale was hugely oversubscribed, drawing orders worth over $41 billion, as investors’ appetite for listings in the Persian Gulf remains unwavering.
The region has been one of the few busy IPO spots globally, with deal activity subdued in other markets due to aggressive interest rate hikes and market volatility. High oil prices, strong local investor demand and government drives to list state-owed companies have instead propelled a flurry of IPOs in the Gulf, partly driven by large pools of capital seeking investment opportunities.
Dubai Taxi is part of a busy year-end for Middle Eastern IPOs, with a crypto-related firm jumping 35% on its Abu Dhabi debut on Tuesday, while health-care platform PureHealth Holding is seeking to raise $1 billion in a listing in the United Arab Emirates’ capital.
Dubai is the Gulf’s best performing market this year, with the benchmark index up almost 20% so far, partly driven by a jump in property-related shares.
Dubai Taxi Co. gained as much as 19% in its debut after a $315 million initial public offering which was the city’s first privatization in over a year.
Shares in Dubai Taxi opened at 2.2 dirhams on Thursday, according to data from the Dubai stock exchange website. The stock was offered at 1.85 dirhams, which was at the top of a marketed range. The share sale was hugely oversubscribed, drawing orders worth over $41 billion, as investors’ appetite for listings in the Persian Gulf remains unwavering.
The region has been one of the few busy IPO spots globally, with deal activity subdued in other markets due to aggressive interest rate hikes and market volatility. High oil prices, strong local investor demand and government drives to list state-owed companies have instead propelled a flurry of IPOs in the Gulf, partly driven by large pools of capital seeking investment opportunities.
Dubai Taxi is part of a busy year-end for Middle Eastern IPOs, with a crypto-related firm jumping 35% on its Abu Dhabi debut on Tuesday, while health-care platform PureHealth Holding is seeking to raise $1 billion in a listing in the United Arab Emirates’ capital.
Dubai is the Gulf’s best performing market this year, with the benchmark index up almost 20% so far, partly driven by a jump in property-related shares.
#UAE planning to develop a national investment strategy -minister | Reuters
UAE planning to develop a national investment strategy -minister | Reuters
The United Arab Emirates is working on developing a national investment strategy, its recently appointed investment minister, Mohamed Al Suwaidi, said on Thursday.
The UAE said in July it would set up a new federal ministry of investment - appointing Suwaidi to lead it - to develop the Gulf state's investment strategy globally and domestically as it contends with growing economic competition from neighbours.
"We have been spending the last few months putting together a strategy for the UAE," Suwaidi said, speaking at the Milken Institute's Middle East and Africa Summit in Abu Dhabi.
The UAE is a federation of seven emirates, dominated by capital Abu Dhabi and regional trade and tourism hub Dubai, with each having their own individual investment strategies.
Suwaidi, who is also the chief executive of one of Abu Dhabi's biggest sovereign funds, ADQ, said the new ministry's role would not be that of a regulator or a policymaker. It would instead advocate for UAE companies to tap new markets globally and grow opportunities for foreign investment.
The United Arab Emirates is working on developing a national investment strategy, its recently appointed investment minister, Mohamed Al Suwaidi, said on Thursday.
The UAE said in July it would set up a new federal ministry of investment - appointing Suwaidi to lead it - to develop the Gulf state's investment strategy globally and domestically as it contends with growing economic competition from neighbours.
"We have been spending the last few months putting together a strategy for the UAE," Suwaidi said, speaking at the Milken Institute's Middle East and Africa Summit in Abu Dhabi.
The UAE is a federation of seven emirates, dominated by capital Abu Dhabi and regional trade and tourism hub Dubai, with each having their own individual investment strategies.
Suwaidi, who is also the chief executive of one of Abu Dhabi's biggest sovereign funds, ADQ, said the new ministry's role would not be that of a regulator or a policymaker. It would instead advocate for UAE companies to tap new markets globally and grow opportunities for foreign investment.
#Saudi Q3 GDP shrinks 4.4% y/y, in line with earlier estimates | Reuters
Saudi Q3 GDP shrinks 4.4% y/y, in line with earlier estimates | Reuters
Saudi Arabia's real gross domestic product (GDP) contracted by 4.4% in the third quarter, government data showed on Thursday, as oil activity plummeted 17% compared with a year earlier following crude output cuts under OPEC+ agreements.
The kingdom has extended a voluntary production cut of 1 million barrels per day until the end of the year which it says is a preemptive move to stabilise the market.
Despite the sharp contraction, the government still expects 2023 GDP growth to come in at 0.03%, according to the 2024 budget released on Wednesday. Growth for 2024 is seen at 4.4%, the budget statement said.
The General Authority for Statistics said Q3 non-oil activity increased by 3.5% year-on-year with government activities growing by 1.9%.
Earlier official estimates had indicated Q3 GDP would shrink 4.5%.
Saudi Arabia's economic growth surged last year amid a huge windfall from high oil prices which averaged about $100 per barrel, resulting in the highest GDP growth among G20 nations and the country's first budget surplus in almost a decade.
Saudi Arabia's real gross domestic product (GDP) contracted by 4.4% in the third quarter, government data showed on Thursday, as oil activity plummeted 17% compared with a year earlier following crude output cuts under OPEC+ agreements.
The kingdom has extended a voluntary production cut of 1 million barrels per day until the end of the year which it says is a preemptive move to stabilise the market.
Despite the sharp contraction, the government still expects 2023 GDP growth to come in at 0.03%, according to the 2024 budget released on Wednesday. Growth for 2024 is seen at 4.4%, the budget statement said.
The General Authority for Statistics said Q3 non-oil activity increased by 3.5% year-on-year with government activities growing by 1.9%.
Earlier official estimates had indicated Q3 GDP would shrink 4.5%.
Saudi Arabia's economic growth surged last year amid a huge windfall from high oil prices which averaged about $100 per barrel, resulting in the highest GDP growth among G20 nations and the country's first budget surplus in almost a decade.
Major Gulf markets fall on weak oil prices | Reuters
Major Gulf markets fall on weak oil prices | Reuters
Major stock markets in the Gulf dropped in early trade on Thursday on weak oil prices with the Qatari index on course to fall for a fifth session.
Oil prices, a catalyst for Gulf markets, reclaimed some ground after falling nearly 4% overnight to their lowest settlements since June, but investors remained concerned about sluggish demand and economic slowdowns in the U.S. and China.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, hit by a 1.5% fall in Saudi Arabian Mining Co (1211.SE) and a 0.2% decrease in oil giant Saudi Aramco (2222.SE).
The kingdom's real gross domestic product (GDP) contracted by 4.4% in the third quarter, government data showed on Thursday, as oil activity plummeted 17% compared with a year earlier following crude output cuts under OPEC+ agreements.
Meanwhile, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman met to discuss further oil price cooperation on Wednesday as members of OPEC+, which may strengthen the market's confidence in the impact of output cuts.
Dubai's main share index (.DFMGI) lost 0.6%, weighed down by a 1.2% decline in top lender Emirates NBD (ENBD.DU) and a 0.8% decrease in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) was down 0.4%.
The Qatari benchmark (.QSI) retreated 1%, on course to fall for a fifth session, as all its constituents were in negative territory including Qatar Islamic Bank (QISB.QA), which was down 1%.
Major stock markets in the Gulf dropped in early trade on Thursday on weak oil prices with the Qatari index on course to fall for a fifth session.
Oil prices, a catalyst for Gulf markets, reclaimed some ground after falling nearly 4% overnight to their lowest settlements since June, but investors remained concerned about sluggish demand and economic slowdowns in the U.S. and China.
Saudi Arabia's benchmark index (.TASI) eased 0.1%, hit by a 1.5% fall in Saudi Arabian Mining Co (1211.SE) and a 0.2% decrease in oil giant Saudi Aramco (2222.SE).
The kingdom's real gross domestic product (GDP) contracted by 4.4% in the third quarter, government data showed on Thursday, as oil activity plummeted 17% compared with a year earlier following crude output cuts under OPEC+ agreements.
Meanwhile, Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman met to discuss further oil price cooperation on Wednesday as members of OPEC+, which may strengthen the market's confidence in the impact of output cuts.
Dubai's main share index (.DFMGI) lost 0.6%, weighed down by a 1.2% decline in top lender Emirates NBD (ENBD.DU) and a 0.8% decrease in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) was down 0.4%.
The Qatari benchmark (.QSI) retreated 1%, on course to fall for a fifth session, as all its constituents were in negative territory including Qatar Islamic Bank (QISB.QA), which was down 1%.