Abu Dhabi Becomes ‘Daily Davos’ as Asset Managers Hunt for Cash - Bloomberg
Some of the world’s top alternative asset managers have been flooding the Middle East in search of cash — and they’re not stopping at state money, according to one family office executive in the region.
A number of these firms have widened the scope of potential investors to include family offices, according to Amine Bouchentouf, the chief investment officer of Atlas Holdings, an Abu Dhabi-based family office that invests in global alternative asset managers.
“Ten years ago we used to meet one good manager every four weeks,” Bouchentouf said in an interview. “Now we meet four great managers almost daily. It’s becoming like a daily Davos.”
Those names include billionaires such as Trian Fund Management’s Nelson Peltz, Brevan Howard Asset Management founder Alan Howard, Guggenheim Capital’s Alan Schwartz and TCI Fund’s Chris Hohn, according to Bouchentouf.
Guggenheim and Brevan Howard declined to comment. Trian and TCI didn’t respond to requests for comment.
Some alternative asset managers are increasing their fund sizes to cater to investors in the region, who have to write bigger checks for their investments to have an impact, said Bouchentouf, whose office opened in Abu Dhabi in 2009.
Wednesday, 20 December 2023
#SaudiArabia: Flynas Taps Goldman, Morgan Stanley for IPO - Bloomberg
Saudi Arabia: Flynas Taps Goldman, Morgan Stanley for IPO - Bloomberg
Saudi Arabia’s Flynas, backed by billionaire Prince Alwaleed Bin Talal, hired Goldman Sachs Group Inc., Morgan Stanley and Saudi Fransi Capital for a potential initial public offering in Riyadh.
The low-cost airline could go public as soon as next year, according to a statement from the company in response to questions from Bloomberg.
Goldman Sachs and Morgan Stanley declined to comment. Saudi Fransi didn’t respond to a request for comment.
Saudi Arabia’s sovereign wealth fund had been in talks to buy a stake in Flynas, Bloomberg News reported in April. The airline is partly owned by Prince Alwaleed’s Kingdom Holding Co., in which the Public Investment Fund bought a 17% stake last year.
The airline, which began operations as Nas Air in 2007, has been weighing a share sale since 2008. It hired Morgan Stanley, Citigroup Inc. and NCB Capital for a potential deal in 2018, Bloomberg News reported at the time.
Saudi Arabia’s Flynas, backed by billionaire Prince Alwaleed Bin Talal, hired Goldman Sachs Group Inc., Morgan Stanley and Saudi Fransi Capital for a potential initial public offering in Riyadh.
The low-cost airline could go public as soon as next year, according to a statement from the company in response to questions from Bloomberg.
Goldman Sachs and Morgan Stanley declined to comment. Saudi Fransi didn’t respond to a request for comment.
Saudi Arabia’s sovereign wealth fund had been in talks to buy a stake in Flynas, Bloomberg News reported in April. The airline is partly owned by Prince Alwaleed’s Kingdom Holding Co., in which the Public Investment Fund bought a 17% stake last year.
The airline, which began operations as Nas Air in 2007, has been weighing a share sale since 2008. It hired Morgan Stanley, Citigroup Inc. and NCB Capital for a potential deal in 2018, Bloomberg News reported at the time.
Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters
Major Gulf bourses end mixed on rate cut hopes, Red Sea tensions | Reuters
Major stock markets in the Gulf ended mixed on Wednesday on prospects of U.S. interest rate cuts in 2024, while worries about maritime trade disruptions in the Red Sea weighed on sentiment.
Dubai's main share index (.DFMGI) added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.1% and top lender Emirates NBD (ENBD.DU) finishing 0.9% higher.
The Qatari benchmark (.QSI) gained 0.6%, led by a 1.4% rise in Qatar Islamic Bank (QISB.QA).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%, hit by a 3.7% slide in Alpha Dhabi Holding (ALPHADHABI.AD).
Among other losers, satellite operator Yahsat (YAHSAT.AD) slipped 1.5%, while geographic data and analytics provider Bayanat (BAYANAT.AD) retreated 2.5%.
In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.
However, shares in Abu Dhabi healthcare platform PureHealth Holding (PUREHEALTH.AD) closed 76.1% above their listing price on debut, after raising almost $1 billion in an initial public offering (IPO) for 10% of the business.
Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Elm Co (7203.SE) losing 2.6%.
The Saudi stock market saw some downside risks as traders moved to secure their gains. The market has recorded strong gains for the past two months and remains on an uptrend overall, said George Khoury, Global Head of Education and Research at CFI.
"The volatility in oil prices and geopolitical risks could create fuel risks."
Oil prices - a catalyst for the Gulf's financial markets - continued their rise, gripped by worries about disruptions in the Red Sea after Yemen's Iran-aligned Houthi militants stepped up attacks on commercial ships.
Brent crude futures closed up more than 1% on Tuesday as some companies rerouted vessels, with longer voyages increasing the cost of transport and insurance.
Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1% lower, as most its constituents were in negative territory including Commercial International Bank (COMI.CA).
Egypt is nearing a deal with the International Monetary Fund (IMF) to expand its $3 billion rescue programme to around $6 billion, Bloomberg News reported on Wednesday, citing people familiar with the deliberations.
Major stock markets in the Gulf ended mixed on Wednesday on prospects of U.S. interest rate cuts in 2024, while worries about maritime trade disruptions in the Red Sea weighed on sentiment.
Dubai's main share index (.DFMGI) added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU) rising 2.1% and top lender Emirates NBD (ENBD.DU) finishing 0.9% higher.
The Qatari benchmark (.QSI) gained 0.6%, led by a 1.4% rise in Qatar Islamic Bank (QISB.QA).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%, hit by a 3.7% slide in Alpha Dhabi Holding (ALPHADHABI.AD).
Among other losers, satellite operator Yahsat (YAHSAT.AD) slipped 1.5%, while geographic data and analytics provider Bayanat (BAYANAT.AD) retreated 2.5%.
In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.
However, shares in Abu Dhabi healthcare platform PureHealth Holding (PUREHEALTH.AD) closed 76.1% above their listing price on debut, after raising almost $1 billion in an initial public offering (IPO) for 10% of the business.
Saudi Arabia's benchmark index (.TASI) fell 0.1%, with Elm Co (7203.SE) losing 2.6%.
The Saudi stock market saw some downside risks as traders moved to secure their gains. The market has recorded strong gains for the past two months and remains on an uptrend overall, said George Khoury, Global Head of Education and Research at CFI.
"The volatility in oil prices and geopolitical risks could create fuel risks."
Oil prices - a catalyst for the Gulf's financial markets - continued their rise, gripped by worries about disruptions in the Red Sea after Yemen's Iran-aligned Houthi militants stepped up attacks on commercial ships.
Brent crude futures closed up more than 1% on Tuesday as some companies rerouted vessels, with longer voyages increasing the cost of transport and insurance.
Outside the Gulf, Egypt's blue-chip index (.EGX30) concluded 1% lower, as most its constituents were in negative territory including Commercial International Bank (COMI.CA).
Egypt is nearing a deal with the International Monetary Fund (IMF) to expand its $3 billion rescue programme to around $6 billion, Bloomberg News reported on Wednesday, citing people familiar with the deliberations.
#SaudiArabia’s Transition from Fossil Fuels Attracts Foreign Investors - Bloomberg
Saudi Arabia’s Transition from Fossil Fuels Attracts Foreign Investors - Bloomberg
Throngs of consultants wearing Western attire have become a common sight in the lobbies of Riyadh’s plushest hotels as Crown Prince Mohammed Bin Salman embarks on a multi-trillion dollar plan to wean Saudi Arabia off oil. In recent months they’ve been joined by another cohort of besuited individuals: fund managers, keen to get an early foothold in the next big emerging-market growth story.
The kingdom, which only joined the MSCI Emerging Markets index in 2019, has historically attracted very little from the billions of dollars that stock investors allocate to global stock markets. Fund managers were put off by the lack of liquidity in the Tadawul All Share Index, which limits full foreigner ownership, and by the nation’s over-reliance on fossil fuels.
Now, with Russia sanctioned out of the benchmark index and China losing its allure due to an economic slowdown, some investors are starting to view Saudi Arabia in a new light, attracted by a steady stream of reforms designed to encourage more foreign investment and the vast sums being thrown at MBS’s Vision 2030 transition plan. The increased interest has helped the Tadawul rally more than 11% this year, more than double the return of the MSCI benchmark.
“Saudi Arabia now feels like China in the noughties,” said Fergus Argyle, who helped launch a new emerging-markets fund for EFG New Capital two years ago that has an 8% allocation to the Saudi stock index.
Argyle says Saudi Arabia is still “very underrepresented” in investor portfolios even after the Tadawul index attracted net foreign inflows of over $3 billion this year. That’s a fraction of the $24 billion that poured in when the index joined the MSCI benchmark four years ago, but analysts say the volume will grow as reforms get under way.
Throngs of consultants wearing Western attire have become a common sight in the lobbies of Riyadh’s plushest hotels as Crown Prince Mohammed Bin Salman embarks on a multi-trillion dollar plan to wean Saudi Arabia off oil. In recent months they’ve been joined by another cohort of besuited individuals: fund managers, keen to get an early foothold in the next big emerging-market growth story.
The kingdom, which only joined the MSCI Emerging Markets index in 2019, has historically attracted very little from the billions of dollars that stock investors allocate to global stock markets. Fund managers were put off by the lack of liquidity in the Tadawul All Share Index, which limits full foreigner ownership, and by the nation’s over-reliance on fossil fuels.
Now, with Russia sanctioned out of the benchmark index and China losing its allure due to an economic slowdown, some investors are starting to view Saudi Arabia in a new light, attracted by a steady stream of reforms designed to encourage more foreign investment and the vast sums being thrown at MBS’s Vision 2030 transition plan. The increased interest has helped the Tadawul rally more than 11% this year, more than double the return of the MSCI benchmark.
“Saudi Arabia now feels like China in the noughties,” said Fergus Argyle, who helped launch a new emerging-markets fund for EFG New Capital two years ago that has an 8% allocation to the Saudi stock index.
Argyle says Saudi Arabia is still “very underrepresented” in investor portfolios even after the Tadawul index attracted net foreign inflows of over $3 billion this year. That’s a fraction of the $24 billion that poured in when the index joined the MSCI benchmark four years ago, but analysts say the volume will grow as reforms get under way.
#AbuDhabi's PureHealth shares soar on ADX market debut
Abu Dhabi's PureHealth shares soar on ADX market debut
Shares of PureHealth surged on its debut on the Abu Dhabi Securities Exchange (ADX) on Wednesday, after an IPO that raised 3.62 billion UAE dirhams ($986 million), for 10% of the business.
Shares opened at AED5.50 and surged close to 74% to AED5.70 after the opening.
The largest healthcare platform in the Middle East had set the final price for its initial public offering (IPO) at 3.26 dirhams ($0.89), bringing the total proceeds to AED3.62 billion.
Shares of PureHealth surged on its debut on the Abu Dhabi Securities Exchange (ADX) on Wednesday, after an IPO that raised 3.62 billion UAE dirhams ($986 million), for 10% of the business.
Shares opened at AED5.50 and surged close to 74% to AED5.70 after the opening.
The largest healthcare platform in the Middle East had set the final price for its initial public offering (IPO) at 3.26 dirhams ($0.89), bringing the total proceeds to AED3.62 billion.
#Qatar lowers oil price assumption for 2024 budget to $60/bbl -QNA | Reuters
Qatar lowers oil price assumption for 2024 budget to $60/bbl -QNA | Reuters
Qatar approved its 2024 fiscal year budget on Wednesday with revenue estimated to decrease 11.4% next year on lower oil prices, state news agency QNA reported.
Total annual revenue is estimated at 202 billion riyals ($55.49 billion) and spending at 200.9 billion riyals, with a deficit of 6.2 billion riyals, which will be covered from the surpluses made in 2023, QNA quoted finance minister Ali bin Ahmed Al-Kuwari as saying.
Qatar is taking a more conservative approach, with an oil price assumption of $60 per barrel in 2024, instead of $65 per barrel in 2023, "by taking into account the estimates of international institutions", the minister said.
Qatar's revenue from oil and gas is estimated to decrease 14.5% in 2024 to 159 billion riyals, while non-oil revenue is expected to increase about 2.4% to 43 billion riyals, the statement said.
The Gulf Arab state, which hosted the soccer World Cup in 2022, is one of the world's largest exporters of natural gas and last year benefited from huge windfalls from soaring global oil and gas prices.
The U.S. Energy Information Administration (EIA) earlier this month lowered its 2024 price forecast for Brent crude by $10 a barrel. Brent would average $83 per barrel, the EIA forecast in a monthly report, versus an estimate published last month of $93 per barrel.
Goldman Sachs earlier this week trimmed its price expectation for Brent crude in 2024 by $10 per barrel to between $70 and $90, saying strong production from the United States would moderate any upside in oil prices.
($1 = 3.7517 riyals)
Qatar approved its 2024 fiscal year budget on Wednesday with revenue estimated to decrease 11.4% next year on lower oil prices, state news agency QNA reported.
Total annual revenue is estimated at 202 billion riyals ($55.49 billion) and spending at 200.9 billion riyals, with a deficit of 6.2 billion riyals, which will be covered from the surpluses made in 2023, QNA quoted finance minister Ali bin Ahmed Al-Kuwari as saying.
Qatar is taking a more conservative approach, with an oil price assumption of $60 per barrel in 2024, instead of $65 per barrel in 2023, "by taking into account the estimates of international institutions", the minister said.
Qatar's revenue from oil and gas is estimated to decrease 14.5% in 2024 to 159 billion riyals, while non-oil revenue is expected to increase about 2.4% to 43 billion riyals, the statement said.
The Gulf Arab state, which hosted the soccer World Cup in 2022, is one of the world's largest exporters of natural gas and last year benefited from huge windfalls from soaring global oil and gas prices.
The U.S. Energy Information Administration (EIA) earlier this month lowered its 2024 price forecast for Brent crude by $10 a barrel. Brent would average $83 per barrel, the EIA forecast in a monthly report, versus an estimate published last month of $93 per barrel.
Goldman Sachs earlier this week trimmed its price expectation for Brent crude in 2024 by $10 per barrel to between $70 and $90, saying strong production from the United States would moderate any upside in oil prices.
($1 = 3.7517 riyals)
Major Gulf bourses ease on volatile oil after Red Sea disruptions | Reuters
Major Gulf bourses ease on volatile oil after Red Sea disruptions | Reuters
Major stock markets in the Gulf fell in early trade on Wednesday as oil prices were gripped by worries about maritime trade disruptions in the Red Sea.
Oil - a catalyst for the Gulf's financial markets - was little changed as investors kept an eye on the situation in the Red Sea after the recent attacks by Iran-aligned Yemeni Houthi militants.
Brent crude futures rose more than 1% on Tuesday amid jitters over global trade disruptions and geopolitical tensions in the Middle East, following Houthi attacks on ships in the Red Sea.
Saudi Arabia's benchmark index (.TASI) dropped 0.2%, hit by a 0.8% fall in Al Rajhi Bank (1120.SE) and a 0.2% decline in oil behemoth Saudi Aramco (2222.SE).
Dubai's main share index (.DMFGI) eased 0.1%, with Emirates Central Cooling Systems Corp (EMPOWER.DU) losing 0.6%.
Washington on Tuesday launched a task force to safeguard Red Sea commerce as attacks by the Yemeni militants forced major shipping companies to reroute, stoking fears of sustained disruptions to global trade.
In Abu Dhabi, the index (.FTFADGI) lost 0.1%, with Alpha Dhabi Holding (ALPHADHABI.AD) retreating 2.3%.
Among other losers, satellite operator Yahsat (YAHSAT.AD) dropped 0.8%, while geographic data and analytics provider Bayanat (BAYANAT.AD) declined more than 1%.
In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.
The Qatari benchmark (.QSI) fell 0.4%.
A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen's Iran-aligned Houthis on the world's main East-West trade route.
Major stock markets in the Gulf fell in early trade on Wednesday as oil prices were gripped by worries about maritime trade disruptions in the Red Sea.
Oil - a catalyst for the Gulf's financial markets - was little changed as investors kept an eye on the situation in the Red Sea after the recent attacks by Iran-aligned Yemeni Houthi militants.
Brent crude futures rose more than 1% on Tuesday amid jitters over global trade disruptions and geopolitical tensions in the Middle East, following Houthi attacks on ships in the Red Sea.
Saudi Arabia's benchmark index (.TASI) dropped 0.2%, hit by a 0.8% fall in Al Rajhi Bank (1120.SE) and a 0.2% decline in oil behemoth Saudi Aramco (2222.SE).
Dubai's main share index (.DMFGI) eased 0.1%, with Emirates Central Cooling Systems Corp (EMPOWER.DU) losing 0.6%.
Washington on Tuesday launched a task force to safeguard Red Sea commerce as attacks by the Yemeni militants forced major shipping companies to reroute, stoking fears of sustained disruptions to global trade.
In Abu Dhabi, the index (.FTFADGI) lost 0.1%, with Alpha Dhabi Holding (ALPHADHABI.AD) retreating 2.3%.
Among other losers, satellite operator Yahsat (YAHSAT.AD) dropped 0.8%, while geographic data and analytics provider Bayanat (BAYANAT.AD) declined more than 1%.
In the previous session, Yahsat was down 2.2%, whereas Bayanat added 1.4% after the firms agreed an all-share merger to create the region's first AI-powered space technology company.
The Qatari benchmark (.QSI) fell 0.4%.
A number of container ships are anchored in the Red Sea and others have turned off tracking systems as traders adjust routes and prices in response to maritime attacks by Yemen's Iran-aligned Houthis on the world's main East-West trade route.