#AbuDhabi index edges higher on Yahsat and Bayanat merger, #Dubai falls | Reuters

Abu Dhabi index edges higher on Yahsat and Bayanat merger, Dubai falls | Reuters

The Abu Dhabi index closed higher on Friday, after shareholders of satellite solutions provider Al Yah Satellite Communications (YAHSAT.AD), opens new tab and Bayanat Ai (BAYANAT.AD), opens new tab approved the merger to Create SPACE42, a global AI-powered space technology firm.

The merger was initially proposed by the respective Boards of Directors on Dec. 18, and is expected to become effective by mid-2024.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged 0.009% up, supported by a 2.1% jump in each of Yahsat and Bayanat Ai shares.

While gains in the index were stemmed by a last minute decline in IHC-owned stocks with Abu Dhabi's biggest developer Aldar Properties (ALDAR.AD), opens new tab losing 0.6% and Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab dipping 0.3%.

The Abu Dhabi stock market stabilized to a certain extent, buoyed by the gains in banking sector, said George Pavel, General Manager at Capex.com Middle East, who added "rebounding oil prices could help local stocks rebound"

However, its weekly performance was negative and could remain exposed to downside risks as a results of geopolitical tensions, Pavel added.

Oil prices - a key catalyst for Gulf's financial markets - gained on Friday after a top U.S. official expressed optimism over economic growth and as supply concerns lingered due to conflicts in the Middle East.

Brent crude was up 0.64%, or $0.57, to $89.59 a barrel by 1133 GMT.

Meanwhile, Dubai's main index (.DFMGI), opens new tab declined 0.5%, hitting 3-month lower, weighed down by a 2.6% decrease in toll gate operator Salik Company (SALIK.DU), opens new tab and 5.6% in drop in Dubai Investments (DINV.DU), opens new tab.

However, Dubai's biggest lender Emirates NBD Bank (ENBD.DU), opens new tab extended gains on Friday with a 1.2% hike after the lender reported a 12% jump in first-quarter net profit to 6.7 billion dirham ($1.82 billion) on Thursday.

Abu Dhabi and Dubai indexes recorded 0.9% and 0.6% weekly losses, respectively, according to LSEG data.

Oil-Backed Loans: #Dubai Firm Pledged $13 Billion for 20 Years of South Sudan Oil - Bloomberg

Oil-Backed Loans: Dubai Firm Pledged $13 Billion for 20 Years of South Sudan Oil - Bloomberg

A little-known company run by a distant relative of the Abu Dhabi royal family agreed to lend 12 billion euros ($12.9 billion) to South Sudan in exchange for repayment in oil, making it one of the largest ever oil-for-cash deals and the latest such intervention in a struggling African country.

According to an unpublished report by a United Nations Security Council-appointed panel of investigators reviewed by Bloomberg, the Dubai-based Hamad Bin Khalifa Department of Projects, or HBK DOP, and South Sudan’s then-finance minister Bak Barnaba Chol appear to have agreed to the terms of the loan in documents signed between December and February.

The deal amounts to almost double the GDP of South Sudan, which has been ravaged by famine and conflict, and 70% of the funds are earmarked for infrastructure, according to the documents seen by the investigators. But a loan of this size — about five times the country’s current external debt — also would likely tie up most of South Sudan’s oil revenues for many years, the unpublished report says.

For HBK DOP, which was founded by Sheikh Hamad Bin Khalifa Al Nahyan, a distant member of Abu Dhabi’s royal Al-Nahyan family, the loan may lock in access to oil at a discounted price for up to two decades. Under the agreement, South Sudan will receive $10 less per barrel of oil when compared with an international benchmark price.

ADCB Q1 net before tax jumps 26% to $660mln

ADCB Q1 net before tax jumps 26% to $660mln

ADCB has continued its growth momentum into 2024, delivering a first quarter (Q1) net profit before tax of AED2.431 billion ($660 million), an increase of 26% year on year. Net profit after tax was AED2.139 billion, with a return on average tangible equity of 14.1%.

This strong earnings growth was broad-based and primarily driven by solid loan growth in the Corporate and Investment Banking and Retail Banking businesses, an ADCB release said.

The Corporate and Investment Banking Group (CIBG) continued to enhance its UAE and regional market share. CIBG net loans grew 7% during the quarter and 28% year on year. The business is pursuing a strategy to build banking relationships across key regional economic corridors, and is making good progress on the opening of a branch in Saudi Arabia following formal approval in January 2024. CIBG is achieving a market-leading fee-to-income ratio by enhancing its sophisticated product suite and building on its strong track record in structuring complex transactions, loan syndications and capital markets advisory business.

Most Gulf markets in red on earnings, geopolitical concerns | Reuters

Most Gulf markets in red on earnings, geopolitical concerns | Reuters

Most stock markets in the Gulf were in red on Thursday, as investors sifted through the latest corporate earnings, while geopolitical strife in the region weighed on sentiment.

Israel stepped up airstrikes on Rafah overnight, killing at least six Palestinians, medics said on Thursday, after saying it would evacuate civilians from the Gaza border city and storm it despite allies' warnings this could cause mass casualties.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.8%, hit by a 6.9% fall in ACWA Power Company (2082.SE), opens new tab and a 1.4% decline in Al Rajhi Bank (1120.SE), opens new tab.

Dubai's main share index (.DFMGI), opens new tab added 0.1%, helped by a 1.9% rise in top lender Emirates NBD (ENBD.DU), opens new tab following better-than-expected first-quarter results.

Emirates NBD reported net profit of 6.7 billion dirhams ($1.82 billion) for the first three months of the year, compared to 6 billion dirhams last year, outperforming analysts' estimate of 4.5 billion dirhams as per LSEG data.

The Dubai bourse experienced another volatile trading session, hovering around the same level throughout the week, as some uncertainty remained, said Daniel Takieddine, CEO MENA at BDSwiss.

"Sectors' performances were mixed, except for the financial sector led by Emirates NBD."

In Abu Dhabi, the index (.FTFADGI), opens new tab was flat slightly into the negative territory.

Crude prices — a catalyst for the Gulf's financial markets — held steady after slower economic growth in the first quarter added to signs of retreating fuel demand in the United States, while investors also remained concerned about the risks of wider conflict in the Middle East.

The Qatari benchmark (.QSI), opens new tab was down 0.3%, with Qatar Electricity and Water Co (QEWC.QA), opens new tab losing 2.9%, extending losses from the previous session on weak first-quarter earnings.

On the other hand, Dairy firm Baladna (BLDN.QA), opens new tab - which is not part of the index - jumped more than 3% after signing a $3.5 billion contract to build a powdered milk farm in the country's southern region of Adrar.

The company also reported a sharp rise in first-quarter earnings.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab retreated 3.2%, falling for a third consecutive session.

#Saudi fund PIF's managed assets hit $749 bln in 2023, says SPA | Reuters

Saudi fund PIF's managed assets hit $749 bln in 2023, says SPA | Reuters

Saudi Arabian sovereign wealth fund PIF's managed assets reached 2.81 trillion riyals ($749.2 billion) in 2023, state news agency SPA reported on Thursday.

The kingdom's non-oil government revenue reached 457 billion riyals last year and non-oil activities accounted for 50% of real gross domestic product (GDP), SPA added.

Major Gulf markets edge higher on corporate earnings | Reuters

Major Gulf markets edge higher on corporate earnings | Reuters

Major stock markets in the Gulf inched up in early trade on Thursday as investors shifted focus to corporate earnings, while geopolitical tensions limited gains.

Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.1%, helped by a 1% rise in the country's biggest lender Saudi National Bank (1180.SE), opens new tab and a 0.8% increase in Banque Saudi Fransi (BSF) (1050.SE), opens new tab.

BSF reported quarterly net profit 1.15 billion riyals ($306.6 million), compared to 1.08 billion riyals year ago.

Separately, Saudi Arabia's Fakeeh Care Group, one of the kingdom's largest private hospital groups, said on Wednesday it planned to proceed with an initial public offering (IPO) through the sale of a 21.47% stake in existing and new shares.

Dubai's main share index (.DFMGI), opens new tab gained 0.2%, led by a 1.9% rise in Emirates NBD Bank (ENBD.DU), opens new tab after the lender reported better-than-expected first-quarter results.

NBD reported net profit of 6.7 billion dirhams ($1.82 billion) for the first three months of the year, compared to 6 billion dirhams last year, outperforming analysts' estimate of 4.5 billion dirhams as per LSEG data.

In Abu Dhabi, the index (.FTFADGI), opens new tab was flat in choppy trade.

Most Gulf bourses were in red in recent sessions, amid simmering tension between Israel and Iran, and as Israel intensified its assault on Gaza.

The Qatari benchmark (.QSI), opens new tab was up 0.4%, with Qatar Islamic Bank (QISB.QA), opens new tab advancing 1.6%.

Dairy firm Baladna (BLDN.QA), opens new tab - which is not part of the index - jumped more than 3% after signing a $3.5 billion contract to build a powdered milk farm in the country's southern region of Adrar.

The company also reported a sharp rise in first-quarter earnings.

#UAE: How to Get a Meeting With Sheikh Tahnoon, Abu Dhabi's $1.5 Trillion Man - Bloomberg

UAE: How to Get a Meeting With Sheikh Tahnoon, Abu Dhabi's $1.5 Trillion Man - Bloomberg

Abu Dhabi’s Sheikh Tahnoon bin Zayed Al Nahyan is one of the most sought‑after people in the Middle East. Money managers and financiers flying into the United Arab Emirates from Hong Kong, London or New York yearn for even a 10-minute meet-and-greet. A lucky few might get to be guests aboard his superyacht, Maryah, where he likes to play chess as the sun glistens on the Persian Gulf. Slim and sporty in his trademark sunglasses, the scion of the world’s richest family oversees state assets and private funds that add up to more than $1.5 trillion. The opportunity to invest even a sliver of that wealth could yield plump fees and returns.

Getting to Sheikh Tahnoon is the rub. Any place in the world where valuable prizes can be won, the right introduction works wonders. In old Chicago ward politics, the line was “We don’t want nobody nobody sent.” In Silicon Valley, the path to wealth runs through the Stanford University admissions committee and venture capital incubator cliques. But the concentration of state and financial power in the UAE makes everything more personal. The sheikh, who’s in his mid-50s, isn’t only his family’s moneyman; he’s one of the deputy rulers of the Abu Dhabi emirate, a brother of the UAE’s president and the son of the country’s founding father. He’s also the national security adviser. In other words, not the sort of person whose front desk you call to ask for an appointment.

One well-trod path to Sheikh Tahnoon and the money he controls runs through Al Maryah Island. The skyscraper-­studded community hosts Abu Dhabi’s international financial center, which Sheikh Tahnoon dreamed up two decades ago with guidance from the late US property tycoon Sam Zell. After meeting bankers in the Four Seasons hotel lobby, financiers may be directed to one of the companies the sheikh chairs: the UAE’s largest lender, First Abu Dhabi Bank PJSC; his private investment firm, Royal Group; or the artificial intelligence company G42.

#UAE economy grew 3.3% in first nine months of 2023-statistics centre | Reuters

UAE economy grew 3.3% in first nine months of 2023-statistics centre | Reuters

The United Arab Emirates (UAE) economy grew 3.3% in the first nine months of 2023, preliminary GDP data from the Federal Competitiveness and Statistics Centre showed on Thursday.

Non-oil GDP surged 5.9% in the same period, representing about 74% of the overall GDP contribution as the Gulf state, one of the world's top oil exporters, accelerates plans to diversify its economy away from hydrocarbons and draw foreign investment.

Sectors including financial services, construction, and transport and storage recorded strong growth in the nine months to September last year, the figures showed.

Growth in 2023 was expected to slow sharply from 2022 across the Gulf region as oil production cuts for OPEC+ members, lower crude prices, and global economic headwinds weighed on the oil sector.

#Dubai's Emirates NBD posts better-than-expected 12% rise in Q1 profit | Reuters

Dubai's Emirates NBD posts better-than-expected 12% rise in Q1 profit | Reuters

Emirates NBD (ENBD.DU), opens new tab, Dubai's biggest bank by assets, reported on Thursday a 12% rise in first-quarter net profit, driven by regional growth, higher transaction volumes, a low-cost funding base and significant impaired loan recoveries.

Net profit for the first three months of the year came in at 6.7 billion dirhams ($1.82 billion), up from 6 billion dirhams in the same period of 2023, outperforming the average analyst estimate of 4.5 billion dirhams, according to LSEG data.

Emirates NBD's total assets rose to just over 900 billion dirhams at the end of the first quarter, up 15% year-on-year, while loans grew by 5% in the same period and deposits increased by 13%.

At the same time, credit quality improved.

"Non-performing, or bad, loans, ratio improved to 4.4% on continued strong recoveries, writebacks, write-offs and repayments in a healthy operating environment," the bank said.

The non-performing loan ratio was 5.6% at the end of March 2023.

Banks in the United Arab Emirates, where Emirates NBD is among the largest, have benefited from the Gulf region's growth prospects amid an uncertain global economic environment as regional governments boost investment into developing non-oil sectors and diversifying income sources.

The lender has expanded its regional presence in Saudi Arabia to take advantage of the opportunities in the Arab world's largest economy, doubling the number of branches there to 18 in the last year, and registering loan growth of 19% in the first quarter.

#Saudi Arabian healthcare group Fakeeh Care Group announces IPO | Reuters

Saudi Arabian healthcare group Fakeeh Care Group announces IPO | Reuters

Saudi Arabia's Fakeeh Care Group, one of the largest private hospital groups in the kingdom, said on Wednesday it planned to proceed with an initial public offering (IPO) through the sale of a 21.47% stake in existing and new shares.

The family-owned business, with hospitals in Jeddah and Riyadh, plans to offer 30 million new shares and 19.8 million existing shares to investors, it said in a statement.

It did not say how much it hoped to raise, nor give a potential valuation for the company.

Riyadh has been encouraging more family-owned companies to list in a bid to deepen its capital markets as part of reforms aimed at reducing the country's reliance on oil revenue.

The plan is the second announced in the kingdom on Wednesday as the IPO market picks up steam following a short hiatus earlier this month when markets closed for the Eid holiday.

Saudi Arabian water and waste water infrastructure company Miahona also announced share sale plans on Wednesday.

Saudi Exchange, the largest and most liquid stock market in the Arab world, has seen a surge in listings from the healthcare sector in the last three years, including hospitals group Dr Sulaiman Al Habib, pharmaceutical group Al Nahdi Medical Co, and generic drugmaker Jamjoom Pharmaceuticals Factory Co.

Most Gulf markets in red as Israel intensifies strikes on Gaza | Reuters

Most Gulf markets in red as Israel intensifies strikes on Gaza | Reuters

Most stock markets in the Gulf ended lower on Wednesday as Israel intensified strikes across Gaza and the army ordered fresh evacuations in the north of the enclave.

Israel has procured tens of thousands of tents for Palestinian civilians it intends to evacuate from Rafah in the coming weeks ahead of a promised assault on the city it sees as the last bastion of militant group Hamas in the Gaza Strip, Israeli sources said on Wednesday.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1%, hit by a 3.4% fall in ACWA Power (2082.SE), opens new tab and a 1.2% decrease in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.

Saudi Arabia's economy will grow at a slower pace this year than previously predicted as oil prices drop from recent peaks, according to a Reuters poll which also showed the United Arab Emirates (UAE) expanding at the fastest clip in the region.

The Saudi stock market extended its decline for another trading session. Geopolitical tensions and declining oil prices continue to weigh on the market, said George Khoury Global Head of Education and Research at CFI.

Meanwhile, the kingdom's monarch Salman bin Abdulaziz has been admitted to a hospital in Jeddah for a routine check up for a few hours, state television reported on Wednesday.

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

Oil prices were down slightly, with Brent at $88.02 on a surprise fall in U.S. crude stocks and a drop in business activity in the world's largest oil consumer.

The Qatari benchmark (.QSI), opens new tab dropped 0.5%, weighed down by a 1% decline in Qatar Islamic Bank (QISB.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab retreated 3.2%, as most of its constituents were in negative territory including top lender Commercial International Bank (COMI.CA), opens new tab.

Egypt's economy will grow slower than previously expected this year after it signed an $8 billion financial support package with the IMF that came with conditions, but growth will accelerate next year, a Reuters poll forecast on Tuesday.

#AbuDhabi Raises $5 Billion With First Eurobond in Three Years - Bloomberg

Abu Dhabi Raises $5 Billion With First Eurobond in Three Years - Bloomberg

Abu Dhabi sold its first eurobonds since 2021, raising $5 billion in one of the biggest deals from emerging markets this year.

The oil-rich sheikhdom, the capital of the United Arab Emirates, issued tranches five, 10 and 30 years. The final yields were significantly tighter than the guidance from when the sale started on Tuesday morning, suggesting there was plenty of demand from investors.

Emerging market governments have sold almost $100 billion of dollar- and euro-denominated bonds in 2024, setting it up to be one of the busiest years on record, according to data compiled by Bloomberg.

A recent shift in global interest-rate expectations — with traders now expecting fewer cuts from the US Federal Reserve this year as progress on slowing inflation stalls — has pushed borrowing costs higher for dollar issuers.

Still, Abu Dhabi is rated AA by S&P Global Ratings, the same as the UK, France and Qatar, allowing it to come to the market without much of an impact on its borrowing costs.

The five-year portion of $1.75 billion was priced 35 basis points over US Treasuries, giving it a yield of 4.97%. The initial guidance was 70 basis points. The longest tranche, also $1.75 billion, had a spread of 90 basis points and a yield of 5.62%.

Investcorp Sets Up $1 Billion Mideast Fund Backed by China’s CIC - Bloomberg

Investcorp Sets Up $1 Billion Mideast Fund Backed by China’s CIC - Bloomberg

The Middle East’s biggest alternative asset manager is setting up a $1 billion investment vehicle backed by Beijing’s sovereign wealth fund to invest in companies across the Persian Gulf and China.

Investcorp Holdings’ new Golden Horizon Fund will be anchored by China Investment Corp., as well as other investors from the Middle East, according to a statement Wednesday.

The new vehicle will also include Investcorp’s Pre-IPO Growth Fund, which was launched in 2021 and had targeted raising $500 million. It will invest in firms across sectors including consumer, health care and logistics.

CIC is among the world’s largest sovereign investors and manages about $1.3 trillion in assets. The fund’s partnership with Investcorp will enable it to look for opportunities in the Middle East, Bloomberg has previously reported, and is the latest sign of growing trade ties between Gulf oil exporters and the world’s second biggest economy.

“Investcorp is perfectly placed to facilitate cross border cooperation and investments,” Investcorp’s Co-Chief Executive Officer Hazem Ben-Gacem said.

Investcorp has assets under management of about $50 billion, according to its website. It is expanding in Asia and reportedly partnered with the private equity arm of the Fung brothers’ family office in 2022 to set up a $500 million fund to invest in mid-cap companies across China’s Greater Bay Area.

Gulf States Learn the Power and Limits of Petrodollar Persuasion - Bloomberg

Gulf States Learn the Power and Limits of Petrodollar Persuasion - Bloomberg

To understand the scale of Gulf nations’ wealth, just consider this: If the United Arab Emirates sold its stash of foreign holdings, it could make every one of its roughly 1 million citizens a millionaire. Qataris would enjoy the same windfall. Saudi Arabia, with its larger population, wouldn’t hit a million dollars per citizen, but the share allotted to each one would still be close to the average annual income in the US—a hefty sum.

Of course, that leaves out the large share of those countries’ populations who aren’t citizens—not to mention that these states have no intention of simply dividing up and distributing their hoards. That’s not what the money is for: It’s for securing the future. The Gulf is awash in oil revenue. The value of daily crude exports in 2022 and 2023 topped $1 billion, leaving enough after paying for imports to fuel massive savings. But the world is transitioning away from oil and gas, and these nations need to diversify.

So they’re building up portfolios that have made them major forces on the global investment scene, with holdings that include American tech companies, English football clubs, Egyptian real estate, African mines and Turkish bank deposits. Four of the world’s top 10 sovereign wealth funds are from the region, those belonging to Kuwait, Qatar, Saudi Arabia and the UAE. The Gulf is close to becoming the only region with three separate wealth funds exceeding $1 trillion each. Asset managers, private equity partners and venture capitalists from New York, Silicon Valley and London pack the business-class cabins of Emirates and Etihad Airways A380s to pitch their services and ideas.

Money isn’t just an economic tool; it’s also a political weapon. The Gulf nations are using their petrodollar wealth to wield influence on the world stage—placing investments to further strategic goals. Turning hydrocarbons into geopolitical muscle isn’t new: The oil embargo in 1973, when Arab states stopped selling oil to countries supporting Israel, leading to a fourfold increase in the price of crude, is only the most famous example.

#Saudi water infrastructure company Miahona plans to list 30% stake in local IPO | Reuters

Saudi water infrastructure company Miahona plans to list 30% stake in local IPO | Reuters

Saudi Arabian water and waste water infrastructure company Miahona plans to offer a 30% stake in an initial public offering (IPO) on the Riyadh bourse, it said on Wednesday.

Miahona is fully owned by development and investment holding company Vision Invest and says it has operations covering the whole water sector cycle from extraction and supply to collection and recycling.

The firm's decision to list adds to an IPO boom in Gulf markets over the last two years driven by high oil prices and foreign institutional investor interest, bucking a global dealmaking slump caused in part by high interest rates.

The public-private partnership (PPP) intends to offering 48,277,663 ordinary shares currently held by Vision Invest, Miahona said in a stock exchange filing.

The bookbuilding process is expected to run from April 28 to May 2, after which the final offer price will be set. Saudi Fransi Capital is lead manager and joint financial adviser, joint bookrunner and co-underwriter along with EFG Hermes Saudi Arabia (KSA).

Major Gulf markets subdued on geopolitical worries | Reuters

Major Gulf markets subdued on geopolitical worries | Reuters

Major stock markets in the Gulf were subdued in early trade on Wednesday as Israel intensified strikes across Gaza and the army ordered fresh evacuations in the north of the enclave.

Strikes by air and shelling from tanks on the ground were also reported in central and southern areas of the Gaza Strip in what residents said late on Tuesday were almost 24 hours of non-stop bombardments.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, hit by a 0.5% fall in AL Rajhi Bank (1120.SE), opens new tab and a 1.4% decrease in Riyad Bank (1010.SE), opens new tab.

The kingdom's economy will grow this year at a slower pace than predicted as oil prices drop from recent peaks, according to a Reuters poll that also showed the United Arab Emirates (UAE) expanding at the fastest clip in the region.

Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with toll operator Salik Company (SALIK.DU), opens new tab losing 2%, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab was down 0.8%.

Separately, supermarket chain Spinneys' franchisee in the United Arab Emirates and Oman is seeking to raise as much as $375 million from the sale of a 25% stake in an initial public offering, it disclosed on Tuesday.

In Abu Dhabi, the index (.FTFADGI), opens new tab was flat.

Oil prices extended gains after industry data showed a surprise drop in U.S. crude stocks last week, a positive sign for demand, though markets were also keeping a close eye on hostilities in the Middle East.

The Qatari benchmark (.QSI), opens new tab edged 0.1% higher.

Gulf markets subdued on geopolitical strife | Reuters

Gulf markets subdued on geopolitical strife | Reuters

Most stock markets in the Gulf were subdued on Tuesday amid tensions in the region as Lebanon's Hezbollah launched deepest attack into Israel since Gaza war.

Iran-backed Hezbollah group said on Tuesday it had launched a drone attack against Israeli military bases north of the city of Acre.

The Israeli military said it had no knowledge of any of its facilities being hit by Hezbollah, but had said earlier it intercepted two "aerial targets" off Israel's northern coast.

Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to close 0.2% lower, with oil giant Saudi Aramco (2222.SE), opens new tab losing 0.2%.

Crude prices - which fuels the Gulf economy - slipped after a short-lived boost from stronger economic data out of Europe as the market weighed the potential fallout from any fresh U.S. sanctions on Iran's oil exports.

Dubai's main share index (.DFMGI), opens new tab finished flat.

The Dubai stock market continued to see downside risks although it stabilised to a certain extent, said Milad Azar Market analyst at XTB MENA.

"A resurgence in geopolitical risks could further weigh on the market."
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.3%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab declining 1.7%.

Banks and finance companies in the United Arab Emirates may defer personal and car loan instalments for six months to help deal with the repercussions of last week's storm, the UAE central bank said on Monday.

The Qatari benchmark (.QSI), opens new tab, bucking the trend, gained 0.5%.
Investors this week are waiting for the release of U.S. gross domestic product figures and March personal consumption expenditure data - the Fed's preferred inflation gauge - to assess the trajectory of monetary policy.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue chip index (.EGX30), opens new tab retreated 4.9%, as most of its constituents were in negative territory including Commercial International Bank (COMI.CA), opens new tab, which was down 4.5%.

#SaudiArabia's 2024 economic growth forecast cut; #UAE leads GCC | Reuters

Saudi Arabia's 2024 economic growth forecast cut; UAE leads GCC | Reuters

Saudi Arabia's economy will grow at a slower pace this year than previously predicted as oil prices drop from recent peaks, according to a Reuters poll which also showed the United Arab Emirates (UAE) expanding at the fastest clip in the region.

After growing 8.7% in 2022, Saudi Arabia's economy - the Gulf Cooperation Council's (GCC) largest - contracted 0.9% last year as crude oil prices dropped from a March 2022 peak of $139 per barrel to average around $82 in 2023.

With oil prices not expected to rise significantly this year economists now predict weaker growth for Saudi Arabia's oil-dependent economy.

The April 3-19 poll forecast the economy would expand 1.9% in 2024, a downgrade from 3.0% in a January poll.

"The slower expansion in the Saudi economy this year will be down to ongoing oil production curbs ... due to be maintained through Q2 at least. When looking at the non-oil sector, we hold a more bullish outlook," said Daniel Richards, MENA economist at Emirates NBD.

#UAE and #Oman sign deals worth $35bln on state visit

UAE and Oman sign deals worth $35bln on state visit

Emirati and Omani companies have signed deals worth 129 billion dirhams ($35.12 billion) in sectors including energy and transport during the Omani ruler's visit to the United Arab Emirates this week.

The UAE investment ministry announced the deals on Tuesday, a day after Oman's Sultan Haitham bin Tariq arrived for a two-day state visit and met with UAE President Sheikh Mohammed bin Zayed Al Nahyan.

The agreements were dominated by a 117 billion dirham industrial and energy "megaproject" grouping wind, solar projects and green metals production.

Abu Dhabi National Energy Co. (TAQA), Abu Dhabi Future Energy Company (Masdar), Emirates Global Aluminium (EGA), Emirates Steel Arkan (ESA), OQ Alternative Energy and Oman Electrical Transmission Co were among the companies involved, the ministry statement said.

It did not disclose further details.

Abu Dhabi's sovereign wealth fund ADQ also signed an agreement to set up a 660 million dirham technology-focused fund with the Oman Investment Authority, while the UAE and Oman signed a 11 billion dirham agreement to connect the countries by rail.

“The agreements represent a major milestone in our bilateral ties, as they pave the way for us to leverage our collective strength to realise our shared vision of advancement and prosperity," UAE Minister of Investment Mohamed Hassan Alsuwaidi said.

($1 = 3.6726 UAE dirham)

Spinneys supermarket franchisee kicks off $375 million #Dubai IPO | Reuters

Spinneys supermarket franchisee kicks off $375 million Dubai IPO | Reuters

Supermarket chain Spinneys' franchisee in the United Arab Emirates and Oman is seeking to raise as much as $375 million from the sale of a 25% stake in an initial public offering, it disclosed on Tuesday.

The indicative price range was set between 1.42 dirhams and 1.53 dirhams, implying a market capitalisation of between 5.11-5.51 billion dirhams ($1.39-1.50 billion), it said in a statement.

Spinneys 1961 Holding will offer 900 million shares, or 25% of its issued share capital, on the Dubai Financial Market.

#AbuDhabi Returns to Eurobond Markets as Lower Rates Grow Remote - Bloomberg

Abu Dhabi Returns to Eurobond Markets as Lower Rates Grow Remote - Bloomberg

Abu Dhabi is selling its first eurobonds in about three years, as expectations fade that US interest rates will fall soon.

The oil-rich sheikhdom, which is part of the United Arab Emirates, is offering a dollar deal with tranches of five, 10 and 30 years, according to a person familiar with the matter. The final terms, including the size and yields, may be announced later on Tuesday.

Abu Dhabi, rated at the third-highest investment grade by the three major agencies, is tapping markets as the odds of imminent rate cuts recede. Emerging-market bond sales had a record start to the year as expectations built for monetary easing by the Federal Reserve.

With a $3 billion bond falling due in September, the emirate is following the likes of Saudi Arabia in borrowing abroad this year.

Though Abu Dhabi’s strong finances suggest it “doesn’t need the money,” the offering allows it to maintain a presence in the market in anticipation that borrowing costs could stay elevated at a time when geopolitical risks are sharply on the rise, according to Mehdi Popotte, senior portfolio manager at Arqaam Capital.

Shell, TotalEnergies in Talks for Stakes in Adnoc LNG Plant - Bloomberg

Shell, TotalEnergies in Talks for Stakes in Adnoc LNG Plant - Bloomberg

Shell Plc and TotalEnergies SE are among several global energy companies in talks to buy stakes in Abu Dhabi National Oil Co.’s next liquefied natural gas export project in the United Arab Emirates.

The two oil majors, as well as Japanese trading house Mitsui & Co., are looking for equity in the Ruwais facility, as well as contracts to purchase LNG from it, according to people with knowledge of the matter. A final investment decision on the project could happen as soon as next month, said the people who asked not to be named as the information is private.

Adnoc doesn’t require investment from the energy companies to move the project forward, and may decide not to sell equity, the people said.

Adnoc and Shell declined to comment. Mitsui said in an emailed response that no decision had been made at this time. Total didn’t immediately respond to requests for comment.

Gas is taking an increasingly bigger role in the Middle East as countries see robust demand for the fuel that may play a bridging role in the transition to cleaner energy sources. The UAE is boosting capacity and Saudi Arabia is seeking projects overseas. Qatar, one of the world’s biggest LNG suppliers along with the US and Australia, is also spending billions of dollars expanding production.

Major Gulf markets gain as geopolitical concerns ease | Reuters

Major Gulf markets gain as geopolitical concerns ease | Reuters

Major stock markets in the Gulf rose in early trade on Tuesday, on course to recover some losses as fears of wider geopolitical strife eased.

Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an Iranian missile and drone attack on Israel days before.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, with Saudi Aramco (2222.SE), opens new tab advancing 0.5%, after the oil giant said it is in talks to acquire a 10% stake in China's Hengli Petrochemical (600346.SS), opens new tab.

The deal would further bolster Aramco's growing downstream presence in China.

Dubai's main share index (.DFMMGI), opens new tab rose 0.5%, led by a 1% gain in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.

Meanwhile, banks and finance companies in the United Arab Emirates may defer personal and car loan installments for six months to help deal with the repercussions of last week's storm, the UAE central bank said on Monday.

The UAE last week suffered the heaviest rains in 75 years, causing widespread flooding which trapped residents in traffic, offices and homes and left many people counting the costs of damage to vehicles and property.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.2%.

Oil prices - a catalyst for the Gulf's financial market - edged higher, after falling in the previous session, as investors continued to assess the risk from geopolitical concerns in the Middle East.

The Qatari benchmark (.QSI), opens new tab added 0.5%, on track to snap three sessions of losses, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.1%.

#Iraq, #Turkey, #Qatar, #UAE sign preliminary deal to cooperate on Development Road project | Reuters

Iraq, Turkey, Qatar, UAE sign preliminary deal to cooperate on Development Road project | Reuters

Iraq's prime minister and Turkey's president on Monday witnessed the signing of preliminary agreement between Iraq, Turkey, Qatar and UAE to cooperate on the Development Road project, a statement from the prime minister's office said.

Iraq launched the $17 billion project last year to link a major commodities port on its southern coast by rail and road to the border with Turkey.

#UAE-based AI firm G42 announces collaboration with U.S. group Qualcomm | Reuters

UAE-based AI firm G42 announces collaboration with U.S. group Qualcomm | Reuters

United Arab Emirates-based artificial intelligence firm G42 said it had agreed a collaboration with U.S. group Qualcomm under which its subsidiary Core42 would feature Qualcomm's Cloud AI 100 products in its Condor AI platform, a G42 statement said.

#Saudi PIF Merges Mobile Tower Firms to Create Regional Giant - Bloomberg

Saudi PIF Merges Mobile Tower Firms to Create Regional Giant - Bloomberg

Saudi Arabia’s sovereign wealth fund agreed to buy a majority stake in Saudi Telecom Co.’s tower unit for 8.7 billion riyals ($2.3 billion) and plans to merge it with other local assets to create a new mobile tower giant.

The Public Investment Fund will own 54% of the new venture while STC, as Saudi Telecom is known, will hold 43%, according to a filing on the Saudi stock exchange. The entity will combine towers unit Tawal with Golden Lattice Investment Co., which the PIF bought from Zain Saudi last year, and manage a portfolio of about 30,000 towers across five countries.

The PIF has considered similar moves in the past to create a new cellular towers company, with the goal of potentially listing it on the local stock exchange, Bloomberg has reported. The sovereign wealth fund is looking at lining up equity offerings in its portfolio companies as it hunts for new sources of cash to help pay for Crown Prince Mohammed bin Salman’s economic transformation, known as Vision 2030.

STC, which is majority owned by the PIF, will inject about 533 million riyals in the new entity’s capital to maintain ownership and will use proceeds from the sale of its towers unit Tawal to support expansion locally and abroad. STC spun out its more than 15,000 towers into Tawal in 2019.

Tawal was valued at 21.94 billion riyals and GLIC had an enterprise value of 3 billion riyals.

Prince Saud Bin Fahad bin Abdulaziz and Sultan Holding Co. will each hold 1.48% of the new towers entity.

The transactions are expected to be completed in the second half of the year.

UK Launches #Saudi Investment Drive as Sunak Eyes MBS’s Vision 2030 - Bloomberg

UK Launches Saudi Investment Drive as Sunak Eyes MBS’s Vision 2030 - Bloomberg

The UK and Saudi Arabia will hold a trade expo in Riyadh next month as Rishi Sunak launches an investment drive aimed at taking advantage of Crown Prince Mohammed bin Salman’s Vision 2030 project.

A delegation of more than 300 British business executives will join Deputy Prime Minister Oliver Dowden at the Saudi Great Futures event on May 14-15, according to a statement from Dowden’s office.

The event will mark the start of a year-long campaign to showcase UK firms to Saudi investors with a focus on sectors that support the country’s Vision 2030, which was established by bin Salman eight years ago to diversify the economy away from oil.

British officials have sought to bolster the UK-Saudi relationship with a particular focus on artificial intelligence in recent months, inviting officials from Riyadh to take part in a global AI summit hosted by Sunak in November last year.

May’s trade expo will focus on research collaboration and emerging technologies, as well as finance, green tech, sustainable construction and cultural projects, according to the statement.

Trade between the UK and Saudi Arabia has increased to £16.5 billion ($20.4 billion) in 2022 from £12.1 billion in 2018, according to the statement. That’s the year that Washington Post journalist Jamal Khashoggi was killed at the Saudi consulate in Turkey, sparking condemnation from countries including the UK.

Sunak invited bin Salman, widely known as MBS, to visit the UK last year, though a trip has yet to be agreed. The UK premier met the crown prince in Riyadh in October.

“Our two nations work closely on security and energy. We look forward to strengthening those connections in new areas that feed the Vision 2030 agenda,” Dowden said in remarks sent by his office.

#Saudi Aramco in talks to buy 10% of China's Hengli Petrochemical | Reuters

Saudi Aramco in talks to buy 10% of China's Hengli Petrochemical | Reuters

Saudi oil giant Aramco said on Monday it is in talks to acquire a 10% stake in China's Hengli Petrochemical (600346.SS), opens new tab, a deal which would further bolster Aramco's growing downstream presence in China.

Aramco (2222.SE), opens new tab is in talks with parent Hengli Group Co and signed a memorandum of understanding over the proposed transaction, which is subject to due diligence and regulatory approvals, Aramco said in a statement.

The potential deal "aligns with Aramco's strategy to expand its downstream presence in key high-value markets, advance its liquids-to-chemicals program, and secure long-term crude oil supply agreements," it said.

An agreement would be the latest in a string of Aramco deals with Chinese refiners.
In January, Chinese privately-controlled refiner Rongsheng Petrochemical (002493.SZ), opens new tab, and Aramco announced they were in talks to take a 50% stake in each other's refineries in China and Saudi Arabia.

Mideast Stocks: Most Gulf markets in red on geopolitical concerns

Mideast Stocks: Most Gulf markets in red on geopolitical concerns

Most stock markets in the Gulf closed lower on Monday as geopolitical strife in the region remained an area of concern, while uncertainties surrounding the U.S. Federal Reserve's monetary policy path added to the worries.

Explosions echoed over an Iranian city on Friday in what sources said was an Israeli attack. But Tehran played down the incident and indicated it had no plans to retaliate - a response that appeared geared towards averting region-wide war.

Iran's Supreme Leader Ali Khamenei thanked the country's armed forces for their attack on Israel, saying the country had demonstrated its power regardless of how many targets were hit, Iran's official news agency reported on Sunday.

Saudi Arabia's benchmark index eased 0.1%, hit by a 0.6% fall in Al Rajhi Bank and a 3.5% fall in SABIC Agri-Nutrient. Chicago Federal Reserve President Austan Goolsbee said on Friday progress on bringing down inflation had "stalled" this year, becoming the latest U.S. central banker to drop an earlier focus on the coming need for interest-rate cuts.

Dubai's main share index dropped 0.2%, with top lender Emirates NBD losing 1.8%.

In Abu Dhabi, the index declined 0.6%. The Abu Dhabi stock market remained under pressure, hitting a new low for the year, said Joseph Dahrieh, managing principal at Tickmill. "The market could remain exposed to the volatility and uncertainty in oil markets, where prices could continue to slide."

Global benchmark Brent slipped, although it remained above $86 a barrel as traders turned their focus back to inflation, as tensions in the Middle East have so far left actual oil supplies unperturbed.

The Qatari benchmark declined 1.3%, as most of its constituency was in negative territory, including Qatar National Bank, which was down 2.1%.

Outside the Gulf, Egypt's blue-chip index retreated 1.7%, with Talaat Mostafa Holding dropping 2.6%.

Gulf markets subdued on geopolitical tensions, US rate cut concerns | Reuters

Gulf markets subdued on geopolitical tensions, US rate cut concerns | Reuters

Most stock markets in the Gulf were subdued on Sunday amid geopolitical strife and uncertainties surrounding U.S. Federal Reserve policy.

In its first ever direct attack on Israel, Iran sent a barrage of more than 300 missiles and drones on April 13 in what it said was retaliation for Israel's suspected deadly strike on its embassy compound in Damascus on April 1.

Iran's Supreme Leader Ali Khamenei thanked the country's armed forces for their attack on Israel, saying the country had demonstrated its power regardless of how many targets were hit, Iran's official news agency reported on Sunday.

Elsewhere Chicago Federal Reserve President Austan Goolsbee said on Friday progress on bringing down inflation had "stalled" this year, becoming the latest U.S. central banker to drop an earlier focus on the coming need for interest rate cuts.

Among individual Middle East markets, Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 2.6% rise in ACWA Power (2082.SE), opens new tab.

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected, as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook.

The Qatari benchmark (.QSI), opens new tab dropped 0.4%, hit by a 1.6% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab and a 1% drop in Qatar Islamic Bank (QISB.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1%, after falling more than 4% in the previous sessions, led by a 1.4% rise in top lender Commercial International Bank (COMI.CA), opens new tab.

Equities have struggled recently following a five-month rally that started in November. Brad Bernstein, managing director at UBS Private Wealth Management, explains.

Meanwhile, the Central Bank of Egypt's net foreign assets (NFAs) deficit fell in March to its lowest in more than two years, apparently helped by a giant sale of property development rights and a reform of the currency, data posted on the CBE website showed.

#Dubai Floods Expose Weakness to Climate Change After #UAE Heavy Rains - Bloomberg

Dubai Floods Expose Weakness to Climate Change After UAE Heavy Rains - Bloomberg

The heavy rains that flooded Dubai this week halted air traffic, damaged buildings and streets — and left climate experts and common citizens asking whether one of the world’s hottest and driest cities should be better prepared for extreme storms.

Weather forecasters knew days in advance that a major storm was heading for the United Arab Emirates and authorities issued warnings asking citizens to stay home. Yet its largest city Dubai was still brought to a halt this week, with one of the worst rain events in decades flooding streets, homes and highways.

“Stormwater management systems were historically deemed an ‘unnecessary cost’ due to the limited rainfall” in the UAE, said Karim Elgendy, an associate fellow at the Environment and Society Centre at Chatham House. “As the variability of rainfall increases across the region and as the likelihood of such events rises, the economic case for such systems becomes stronger.”

Human-caused climate change is making extreme weather events like heat and rain more intense, frequent and harder to predict. The Middle East is forecast to face higher temperatures and a decline in overall rainfall, according to long-term scientific projections. But these very arid places will also experience storms that drop unprecedented rain, according to researchers. That’s forcing governments to consider whether to adapt to rare but destructive events — and how.

Representatives for the UAE government didn’t immediately reply to a written request for comment.

US seeks alliance with #AbuDhabi #UAE on artificial intelligence

US seeks alliance with Abu Dhabi on artificial intelligence

The Biden administration is proactively encouraging US tech groups to seek artificial intelligence deals and partnerships in the United Arab Emirates, seeking to cultivate an alliance that would provide it with an edge over China in developing the revolutionary technology. 

This week, Microsoft announced a $1.5bn investment in G42, an Abu Dhabi-based AI group chaired by powerful Emirati royal Sheikh Tahnoon Bin Zayed al-Nahyan, representing the tech giant’s latest huge bet on AI. 

According to people familiar with the discussions, the deal was finalised following a series of meetings over the past year brokered by the US government between investors and companies from the UAE and American tech companies including Microsoft, Google and OpenAI. 

The talks are part of Washington’s efforts to achieve supremacy over Beijing in the development of artificial intelligence and other sensitive technologies. 

Commerce secretary Gina Raimondo has been closely involved, a person briefed on the negotiations said, as the highest levels of the US government worked to develop closer ties between American tech groups and Abu Dhabi.

Oil settles slightly higher as Iran plays down reported Israeli attack | Reuters

Oil settles slightly higher as Iran plays down reported Israeli attack | Reuters

Oil settled slightly higher on Friday, but posted a weekly decline, after Iran played down a reported Israeli attack on its soil, a sign that an escalation of hostilities in the Middle East might be avoided.

Brent futures settled up 18 cents, or 0.21%, at $87.29 a barrel.

The front month U.S. West Texas Intermediate (WTI) crude contract for May ended 41 cents higher, or 0.5%, to $83.14 a barrel. The more active June contract closed 12 cents higher at $82.22 a barrel.

Both benchmarks spiked more than $3 a barrel earlier in the session after explosions were heard in the Iranian city of Isfahan in what sources described as an Israeli attack. However, the gains were capped after Tehran played down the incident and said it did not plan to retaliate.

"It was nothing but a big show, and so the markets deflated as quickly as they spiked," said Tim Snyder, economist at Matador Economics.

#UAE markets decline over #Israel's attack on #Iran | Reuters

UAE markets decline over Israel's attack on Iran | Reuters

Stock markets in the United Arab Emirates declined on Friday as investors turned risk-averse after Israel launched an attack against Iran.

Israel launched an attack on Iranian soil on Friday, sources said, in the latest tit-for-tat exchange between the two arch foes that threatened to drag the region deeper into conflict.

Dubai's main index (.DFMGI), opens new tab dropped 0.8%, as most of the stocks were trading in negative territory, led by a 1.1% decrease in the blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 1.2% loss in top lender Emirates NBD Bank (ENBD.DU), opens new tab.

Losses in the index were capped by a 2% jump in Dubai telecom operator Emirates Integrated Telecommunications (DU.DU), opens new tab and a 1% rise in foreign currency exchange firm Al Ansari Financial Services (ALANSARI.DU), opens new tab.

Dubai's stock market ended the week on a negative note, primarily influenced by a risk-off mood driven by geopolitical tensions, market analyst Ayham Sallah said.

"The market may continue to face downward pressure if geopolitical unrest persists, compounded by a hawkish shift in U.S. monetary policy expectations."

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.6% lower, hitting more than a 2-year low, weighed down by a 2.4% decline in IHC-owned investment firm Multiply Group (MULTIPLY.AD), opens new tab and a 3.3% slump in Emirates Telecom Group (known as E&) (EAND.AD), opens new tab.

The Dubai and Abu Dhabi indexes recorded 1.6% and 1.2% weekly losses respectively according to LSEG data.

Meanwhile, oil prices - a key catalyst for the Gulf's financial market - drifted lower after rising in the morning after the risk of major escalation of hostilities appeared to ease.

Oil steadied on Friday after prices spiked earlier on reports that Israel had attacked Iran.

Tehran played down the incident and indicated it had no plans for retaliation - a response that appeared gauged towards averting region-wide war.

Spanish government signals openness to TAQA's bid for Naturgy | Reuters

Spanish government signals openness to TAQA's bid for Naturgy | Reuters

Spain on Friday signalled it was open to a potential takeover bid of energy firm Naturgy (NTGY.MC), opens new tab by Abu Dhabi's TAQA (TAQA.AD), opens new tab, saying that while the government will defend its strategic interests that did not imply it would block the deal.

TAQA confirmed on Wednesday it is in discussions with the three largest shareholders of Naturgy about a possible bid for the largest natural gas firm in Spain.

Given Naturgy's strategic role in the country's energy system, the government by law must have a say on such a deal.

"I have spoken of the need to be vigilant and guarantee energy security in defence of Spain's strategic interests," Energy Minister Teresa Ribera said when asked about the potential deal at a press conference. "This does not mean vetoing any company or investor."

Spain has already shown it has the mechanisms at hand to protect its interests when it approved Australian fund IFM's partial takeover bid for Naturgy in 2021, Ribera said. The government imposed conditions to protect jobs, investment and the supply of gas and electricity.

IMF revises down Mideast growth outlook on war, trade disruptions | Reuters

IMF revises down Mideast growth outlook on war, trade disruptions | Reuters

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook. That would be an improvement from 1.9% growth in 2023.

The downward revision was driven by conflicts in Sudan, the West Bank and Gaza, as well as oil production cuts by Gulf countries weighing on activity.

"Assuming these factors ease in 2025, growth is forecast to strengthen to 4.2%," the IMF said.

"Uncertainty is high and medium-term growth is forecast to remain below pre-pandemic historical averages."

Within MENA, oil exporters are seen faring better, with the IMF projecting 2.9% growth this year, up 1 percentage point from last year.

Groups From Middle East, China Look to Build World’s Tallest Tower in Thailand - Bloomberg

Groups From Middle East, China Look to Build World’s Tallest Tower in Thailand - Bloomberg

A group of investors led by a Dubai-based real estate developer is in talks to build a mixed-use tower in Thailand that may vie for the mantle of the world’s tallest building.

Thai Prime Minister Srettha Thavisin met with a group of Middle Eastern and Chinese companies including Emaar Group, Broad Group and Vatone Group and discussed plans to “build the world’s tallest building in Thailand,” he said in a post on X on Friday.

Emaar is best known for building the world’s tallest tower Burj Khalifa in Dubai. Mohamed Alabbar, who founded Emaar, said the Thai project won’t be developed by the publicly traded company but by a group of investors that includes him in a personal capacity. The talks are in early stages for “a super tall tower,” he said.

The project in Thailand will include a large department store, offices, a financial hub, a hotel, and an entertainment center, said Srettha, a former property tycoon who has backed the idea of building “entertainment complexes” that also house casinos.

“It will create considerable investment value and attract tourists,” Srettha wrote in the post, adding that the investors will study the prospects and propose an investment plan later. “Promoting investments from the private sector is a key factor to stimulate the country’s economy and generate income for the people.”

IMF forecast: #Saudi economy to record second highest global growth rate in 2025

IMF forecast: Saudi economy to record second highest global growth rate in 2025

The International Monetary Fund (IMF) has raised its growth forecast for the performance of Saudi Arabia’s economy by about 0.5 percent to six percent for the year 2025, up from 5.5 percent predicted in January 2024.

The IMF is raising the Saudi economy’s growth rate forecast for the year 2025 for the second time in a row during this year. This makes the Saudi economy recording the second highest expected growth rate in 2025, coming next to the Indian economy, which is expected to achieve a growth rate of 6.5 percent.

In its ‘World Economic Outlook’ report released this month, the IMF stated that the baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. The report highlighted that the global recovery is steady but slow and differs by region.

In the last report, the IMF’s experts raised their expectations for the growth rate of the Kingdom’s economy for the year 2025 from 5.5 percent to 6 percent, despite its stability in the expectations of the growth rate of the global economy at the level of 3.2 percent.

It is noteworthy that the forecast of the IMF experts in January 2024 was that the Kingdom’s economy would grow from 4.5 percent to 5.5 percent in 2025. This change in the Fund’s expectations were made in accordance with the data it recently issued in its report.

This is a clear reference to the optimistic outlook on the performance and strength of the Saudi economy and the positive growth it achieves despite the risks, challenges and global conditions that most economies are witnessing. The IMF report showed that the Saudi economy is witnessing a distinguished performance in its diversification, in addition to the growth of non-oil revenues, reaching unprecedented levels.

Exclusive: #UAE giant eyes majority stake in Vedanta's Zambian mines in expansion drive | Reuters

Exclusive: UAE giant eyes majority stake in Vedanta's Zambian mines in expansion drive | Reuters

The mining investment arm of Abu Dhabi's most valuable company has offered to buy a majority stake in Vedanta Resources' Zambian copper assets, two sources familiar with the matter told Reuters, in its drive to build an African copper mining empire.

The unit of International Holding Company (IHC.AD), opens new tab recently made an offer of more than $1 billion to buy a 51% stake in Konkola Copper Mines (KCM) from Indian billionaire Anil Agarwal-owned Vedanta (VDAN.NS), opens new tab, the sources said.

The unit - International Resources Holding (IRH) - is racing to broaden its burgeoning copper mining business in Zambia after buying a 51% stake in Mopani Copper Mines in a deal worth $1.1 billion. IRH said last month it planned to bid for a stake owned by EMR Capital in Lubambe Copper Mine, which is also for sale.

The deals spree is part of a push by oil-rich United Arab Emirates (UAE) and Saudi Arabia to secure critical metal supplies from Africa, a move that could also help them participate in the transition to green energy.

Mideast Stocks: Gulf markets end mixed as investors assess Fed, geopolitical tensions

Mideast Stocks: Gulf markets end mixed as investors assess Fed, geopolitical tensions

Stock markets in the Gulf ended mixed on Thursday as investors assessed the latest Federal Reserve commentary and ongoing geopolitical tensions.

Saudi Arabia's benchmark index gained 0.3%, with ACWA Power rising 3.6%, while the Saudi Arabian Mining Company advanced 3% after the bourse launched single options contracts on the stock. The Saudi stock market stabilized after two sessions of losses.

The banking sector and others saw mixed performances, said Daniel Takieddine CEO MENA at BDSwiss. "While sliding oil prices could create some risks, the Saudi market could find support from solid corporate and economic fundamentals," he said.

Oil prices - a catalyst for the Gulf's financial markets - fell to a three-week low, extending losses on hopes of easing tensions in the key producing region of the Middle East, while investors turned their focus to a bleaker demand picture.

Dubai's main share index rebounded 0.8%, ending four sessions of losses, led by a 1.7% gain in toll operator Salik Co. In Abu Dhabi, the index finished 0.2% higher.

The Qatari benchmark fell 0.2%, hit by a 1.1% fall in the Gulf's biggest lender Qatar National Bank. Top U.S. central bank officials including Federal Reserve Chair Jerome Powell backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer and further, dashing investor hopes for meaningful reductions in borrowing costs this year.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index declined 4.5%, as almost all its constituents were in negative territory including top lender Commercial International Bank, which was down 2.6%. Egypt's foreign debt climbed by $3.5 billion in the fourth quarter of 2023 to $168.0 billion, data on the planning ministry website showed.

Finance Minister Mohamed Maait projected on Tuesday that GDP would grow 2.8% in the fiscal year to end-June and by 4.2% next year. The IMF has forecast GPD growth of 3.0% in calendar 2024.

#Dubai Investments shareholders approve 12.5% dividend

Dubai Investments shareholders approve 12.5% dividend

Dubai Investments, a leading diversified investment Company listed on the Dubai Financial Market (DFM), has announced the distribution of 12.5% cash dividend to the shareholders for the financial year ending December 31, 2023.

The company’s 28th Annual General Meeting (AGM) highlighted the group's journey, underscoring its resilience and adaptability in navigating the dynamic economic landscape.

The group had reported profit attributable to the shareholders of the company of AED1.13 billion ($310 million) for the year ended December 31, 2023 as compared to AED1,608.57 million in the previous year.

Binance Gets #Dubai VASP License After CZ Deal (BNB) - Bloomberg

Binance Gets Dubai VASP License After CZ Deal (BNB) - Bloomberg

Binance Holdings Ltd. received its long-sought full crypto license in Dubai after co-founder Changpeng “CZ” Zhao agreed to give up voting control in the local entity, according to people with knowledge of the matter.

The world’s biggest digital-asset exchange got a Virtual Asset Service Provider permit in the emirate, Chief Executive Officer Richard Teng confirmed in a Bloomberg Television interview on Thursday.

The license is a much-needed win for Binance, which suffered a string of regulatory hits over the past two years that culminated in its agreement to pay $4.3 billion in US penalties in November. Zhao was forced to resign as chief executive officer as part of that deal and is expected to be sentenced this month after pleading guilty to anti-money laundering and sanctions charges.

Binance FZE, the local unit in Dubai, has held so-called Operational MVP licenses for broker-dealer and exchange services since mid-2023, the Virtual Assets Regulatory Authority’s register shows. Operational MVP is an interim stage before getting a full VASP license.

One of the final steps VARA required before granting a VASP license was Zhao ceding voting control of the Dubai entity, called Binance FZE, the people said, asking not to be named discussing private deliberations. Officials wanted to ensure that Dubai didn’t diverge from the agreement Binance reached with US authorities, under which Zhao was forced to relinquish his CEO position, they said.

Major Gulf markets rebound after recent losses | Reuters

Major Gulf markets rebound after recent losses | Reuters

Major stock markets in the Gulf rose in early trade on Thursday as investors assessed the Federal Reserve commentary and ongoing geopolitical tensions.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, on course to end two sessions of losses, led by a 4.1% rise in Saudi Arabian Mining Company (1211.SE), opens new tab after the bourse launched single stock options contracts on the stock.

Elsewhere, Allianz Saudi Fransi Cooperative Insurance (8040.SE), opens new tab edged 0.3% higher after Abu Dhabi National Insurance CO (ADNIC.AD), opens new tab acquired 51% in the insurer for $133.1 million.

The Qatari benchmark (.QSI), opens new tab added 0.3%, with Qatar Navigation (QNNC.QA), opens new tab rising 1.8% and petrochemical maker Industries Qatar (IQCD.QA), opens new tab increasing 0.4%.

Oil prices - a catalyst for the Gulf's financial markets - were little changed after a 3% drop in the previous session as the market remained concerned about demand this year and on signs that a wider conflict in the key Middle East producing region could be avoided.

In Abu Dhabi, the index (.FTFADGI), opens new tab edged 0.1% higher.

Top U.S. central bank officials including Federal Reserve Chair Jerome Powell backed away on Tuesday from providing any guidance on when interest rates may be cut, saying instead that monetary policy needs to be restrictive for longer and further, dashing investor hopes for meaningful reductions in borrowing costs this year.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Dubai's main share index (.DFMGI), opens new tab advanced 1%, after four consecutive sessions of losses, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.2%.

Separately, cryptocurrency exchange Binance said on Thursday it had secured a licence from Dubai's regulator Virtual Assets Regulatory Authority that will allow the platform to target retail clients in addition to qualified and institutional ones.

#Saudi’s Neom Hunts for More Cash, Plans Bond Sale for $1.5 Trillion Desert City - Bloomberg

Saudi’s Neom Hunts for More Cash, Plans Bond Sale for $1.5 Trillion Desert City - Bloomberg

Saudi Arabia’s Neom is planning its debut riyal bond sale for later this year as it looks for more sources of funding for the $1.5 trillion worth of construction projects it’s planned for the futuristic city, according to people familiar with the matter.

Neom has appointed banks including HSBC Holdings Plc and the securities units of Al Rajhi Bank and Saudi National Bank to advise on the sale of Islamic bonds, or sukuk, the people said. The debt would be denominated in the local currency and could raise as much as 5 billion riyals ($1.3 billion), they said, asking not to be identified as the information is private.

The sukuk sale could come as early as the second half of this year, the people said. A final decision on the timing and offering size will depend on market conditions, they added.

Representatives for Neom, HSBC and Saudi National Bank declined to comment, while a spokesperson for Al Rajhi Bank did not respond to a request for comment.

The city, located in the kingdom’s northwestern desert, is a brainchild of Crown Prince Mohammed bin Salman. The development’s signature project is The Line, a pair of mirror-clad skyscrapers that the kingdom hopes will ultimately stretch 170 kilometers and house all of a city’s normal functions. Neom’s plans also include an industrial area, ports and tourism developments.