Aramco Share Sale Ranks Among World’s Largest Since Its Own IPO - Bloomberg

Aramco Share Sale Ranks Among World’s Largest Since Its Own IPO - Bloomberg

Saudi Arabia’s offer of a sliver of Aramco that will raise as much as $12 billion ranks among the largest share sales globally since the kingdom listed the oil giant five years ago.

At the top end of the indicated price range, the deal would be the sixth-largest share sale since the firm raised $30 billion in its 2019 initial public offering. It’s also set to be the fourth biggest follow-on offering in that period.

The kingdom could raise an additional $1.2 billion if it exercises an option to sell more shares as part of the offering.

Proceeds will help fund initiatives to diversify the economy away from oil as Crown Prince Mohammed bin Salman pushes into artificial intelligence, sports, tourism and projects such as Neom.

That’s crucial at a time when crude oil prices are below levels the government needs to balance its budget. The kingdom’s also lagged behind a target of attracting more than $100 billion a year in foreign direct investment.

The latest deal has been in the works for year. MBS, as the crown prince is known, said in 2021 that the government would look to sell more Aramco shares in the future. Those plans gained momentum a year ago, when the kingdom began working with advisers to study the feasibility of a follow-on offering in Riyadh.

Mideast Stocks: #AbuDhabi index jumps ahead of OPEC+ meeting

Mideast Stocks: Abu Dhabi index jumps ahead of OPEC+ meeting

Stock markets in the United Arab Emirates closed higher on Friday, with the Abu Dhabi index leading gains ahead of an OPEC+ meeting two days later.

OPEC+ is working on a complex deal to be agreed at its meeting on Sunday that will allow the group to extend some of its deep oil production cuts into 2025, three sources familiar with OPEC+ discussions said on Thursday.

Abu Dhabi's benchmark index advanced 1.3%, rebounding to a second session after hitting a 28-month low on May 29, boosted by a 1.9% surge in UAE's largest listed firm International Holding Company, and a 3.9% jump in Emirates Telecommunication Group. Abu Dhabi index notched up 0.3% after two weeks of losses, and logged 2.3% of monthly decline, according to LSEG data. However, Brent crude - the key contributor to the Gulf's economy - was trading 0.04% lower at $81.83 a barrel by 1156 GMT.

Among the gainers, Abu Dhabi's flagship shipping firm Abu Dhabi Ports Company gained 1.8% after the firm signed an MoU with Madagascar's Economic Development Board to explore the development of economic cities & free zones, ports, marina and cruise port facilities.

Dubai's main index settled 0.2% higher, lifted by industrial and real estate gains, rebounding for the second session after touching a nearly 6-month low. Among the winners, toll gate operator Salik Company increased 3.1% and business park operator Tecom Group rose 1.5%.

Dubai index recorded 4.3% losses, its highest monthly decline since Oct. last year, while it fell 0.9% on a weekly basis, according to LSEG data. Stock markets in the UAE rebounded to a certain extent after a long period of price corrections, said Joseph Dahrieh, Managing Principal at Tickmill.

According to Joseph, "Both markets could remain exposed to downside risks while investors continue to monitor geopolitical risks, oil markets, and changing expectations regarding monetary policy in the US".

Ex-Banker Leading Adnoc’s M&A Push Says Deal Spree Will Continue - Bloomberg

Ex-Banker Leading Adnoc’s M&A Push Says Deal Spree Will Continue - Bloomberg

Abu Dhabi National Oil Co., the state oil giant that underpins the United Arab Emirates’s booming economy, has become one of the energy industry’s busiest dealmakers as it looks to go global.

But in recent months stalled deals prompted speculation that Adnoc had lost momentum. Not so, says Klaus Froehlich, the former Morgan Stanley banker spearheading most of Adnoc’s international expansion plans.

While the company will always be disciplined, it’s “full throttle ahead” with its expansion and is pursuing a “healthy deal pipeline,” Froehlich, Adnoc’s chief investment officer, said in a rare interview earlier this month.

“Adnoc is executing on its plan and creating a portfolio of businesses across key verticals in gas, LNG, chemicals as well as renewables and little by little, the puzzle is now coming together,” he said.

Adnoc Chief Executive Officer Sultan Al Jaber has transformed the country’s top oil producer in the last few years. He has brought billions of dollars into the firm by selling shares in some of its key units and got international investors such as Brookfield Asset Management and KKR & Co to put money in the company’s infrastructure. Al Jaber is also the main architect behind Adnoc’s international expansion plan.

The energy giant has announced a series of acquisitions as part of a plan to invest $150 billion by 2027 to expand its footprint at home and spread its international reach.

#UAE's non-oil output will remain robust, continue to support economic growth in 2024: World Bank

UAE's non-oil output will remain robust, continue to support economic growth in 2024: World Bank

The real gross domestic product (GDP) growth of the UAE is projected to accelerate to 3.9 percent in 2024, fuelled by OPEC+'s announced significant oil production hike in the second half of 2024 and a recovery in global economic activity, according to the Spring 2024 Gulf Economic Update (GEU) issued by the World Bank.

The oil output growth is projected to reach 5.8 percent in 2024. Non-oil output will remain robust and continue to support economic growth in 2024, expanding at 3.2 percent, driven by strong performance in the tourism, real estate, construction, transportation, and manufacturing sectors.

The report stated that the UAE continued its strategic spending growth, supported development initiatives, and highlighted its commitment to sustainable, green, and digital growth.

It explained that the UAE maintained a strong current account surplus of 9.1 percent of GDP, supported by rising non-oil exports in tourism and commercial services, enhanced new investments, and trade agreements with key Asian and African markets.

#SaudiArabia sets new test for international interest with $13.1 bln Aramco sale | Reuters

Saudi Arabia sets new test for international interest with $13.1 bln Aramco sale | Reuters

Saudi Arabia and its bankers will on Sunday morning start taking orders for as much as $13.1 billion worth of shares in its energy giant Aramco (2222.SE), opens new tab, in a major test of international investor interest in its market.

In a long-anticipated announcement on Thursday, the kingdom and Aramco detailed plans to sell up to a 0.7% in the state-controlled oil company, with 10% of the offering reserved for retail investors, based on demand. Order-taking will run through June 6 and the deal will price on June 7.

The offering - codenamed Project Bond according to sources - has been trailed for months as a key step in diversifying the company's investor base since its record-breaking initial public offering (IPO) in 2019, as well as for its potential to further fuel the kingdom's massive economic diversification programme.

It also marks a test of interest in Saudi markets after lukewarm interest from international investors in the 2019 flotation amid concerns about a high valuation, Saudi government control and the energy transition away from hydrocarbons.

International investors have been similarly reticent about the kingdom's mega-projects, from beach resorts to new cities.

Investors buying into Aramco will need to weigh environmental concerns against its rich payouts.

"Since the IPO, higher expectations on dividend payout and oil price have outweighed lower expectations on output," said Hasnain Malik, head of equity research, at Dubai-based Tellimer.

#Saudi fund invests in China effort to create rival to OpenAI

Saudi fund invests in China effort to create rival to OpenAI

A Saudi Arabian fund has backed China’s most prominent generative artificial intelligence start-up, becoming the only foreign investor in the country’s efforts to create a homegrown rival to OpenAI. 

Prosperity7, part of the state-owned oil group Aramco’s venture capital arm, has participated in a roughly $400mn investment round in AI start-up Zhipu AI, said two people familiar with the matter. The deal values the Chinese group at about $3bn. 

Previously, China’s fledgling generative AI sector has been forced by US restrictions to rely on domestic funding, making Prosperity7’s investment the first high-profile example of a foreign backer throwing its weight behind one of the leading four generative AI start-ups. 

Zhipu and its closest rivals — Moonshot AI, MiniMax and 01.ai — have been dependent on support from government funds and large, local cloud providers. 

Prosperity7, which manages a $3bn fund, was a minority investor in Zhipu’s round, according to two people. Prosperity7 and Zhipu did not respond to a request for comment. 

The investment demonstrates Saudi willingness to support an ecosystem that could guard against US dominance in AI. “The Saudis don’t want Silicon Valley dominating this industry,” said one person close to the fund.

#SaudiArabia to sell $12bn worth of Aramco shares

Saudi Arabia to sell $12bn worth of Aramco shares

Saudi Arabia is selling roughly $12bn worth of shares in its national oil company Saudi Aramco, as the kingdom seeks further capital for its sovereign wealth fund. 

The Saudi government will sell at least 1.545bn shares, or 0.64 per cent, of the world’s largest oil company at a price between SR26.7 and SR29. 

The Saudi kingdom also has the option to sell up to an additional 154.5mn shares at the final price. If the option is exercised in full, it would net the kingdom an additional $1bn. 

Amin Nasser, the chief executive of Saudi Aramco, said the timing of the sale had been decided by the government, but that the offering was an opportunity for the company to broaden its international investor base. He declined to name any anchor investors in the offering, saying the process would begin on June 2 and end on June 6. 

“This transaction provides an opportunity for current and new investors to build a sizeable position in Saudi Aramco at a price where we believe the company offers attractive value and growth to our shareholders,” he said, adding that Aramco had paid out $98bn in dividends in 2023 and expects to pay out $124bn this year.

Most Gulf bourses rise; #Saudi hits 5-month low | Reuters

Most Gulf bourses rise; Saudi hits 5-month low | Reuters

Most stock markets in the Gulf reversed early losses to end higher on Thursday, ahead of key U.S. inflation data this week, while the Saudi index hit more than a five-month low.

The Qatari benchmark index (.QSI), opens new tab rose 0.4% after dropping to its lowest in nearly four years at yesterday's close. The index was lifted by a 4.2% increase in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 4% gain in Gulf International Services (GISS.QA), opens new tab.

However, for the month, the index was down 4.2%, its third straight monthly loss.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab bounced back after eight straight sessions of losses to end 0.5% higher. First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, climbed 1.2% and ADNOC Logistics (ADNOCLS.AD), opens new tab rose 1.8%.

The energy major ADNOC's logistics unit, ADNOC CLS, and Hanwha Ocean signed a letter of intent on Thursday to construct at least three liquefied natural gas (LNG) carriers.

Dubai's benchmark index (.DFMGI), opens new tab was up 0.3%, after two consecutive sessions of losses.

The blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 1.9% and Emirates NBD (ENBD.DU), opens new tab, the emirates' largest lender, rose 1.6%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.7% to 11,503, its lowest in more than 5 months with all of its constituents posting losses. For the month, it was down 7.2%, its biggest monthly decline since September 2022.

Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, slipped 3% and ACWA Power (2082.SE), opens new tab slumped 10%, the steepest percentage fall in more than two years.

Meanwhile, investors are awaiting U.S. inflation data on Friday to gauge the scale of interest rate cuts this year, with markets currently pricing just one rate cut from the Federal Reserve by the end of 2024.

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

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a fourth straight session, dipping 0.6%, but was up 10.1% for the month, its biggest monthly advance since January.

Among individual stocks, Talaat Mostafa Group (TMGH.CA), opens new tab dropped 4.7% and Misr Fertilizers Production (MFPC.CA), opens new tab declined 8.3%. Eastern Company (EAST.CA), opens new tab, however, surged 7.4% after the Egypt's largest cigarette manufacturer posted a 27% surge in its third-quarter net profit.

#SaudiArabia IPOs: Investors Rush In With $176 Billion in Orders - Bloomberg

Saudi Arabia IPOs: Investors Rush In With $176 Billion in Orders - Bloomberg

Four Saudi Arabian companies have drawn a combined 659 billion riyals ($176 billion) in orders for their initial public offerings, as fund managers flocked to share sales that have offered near-guaranteed returns over the last two years.

The demand for new IPOs — that’s exceeded orders for Saudi Aramco’s record issue in 2019 — is also weighing on the kingdom’s stock market. The Tadawul All Share Index is trailing its emerging-market peers for the first time since the pandemic and has fallen almost 8% from its March peak — partly because of investors who’re holding on to cash to invest in the offerings.

Institutional investors put 341 billion riyals of orders for the 2.86 billion-riyal IPO of Dr. Soliman Abdul Kader Fakeeh Hospital Co. earlier this month, data compiled by Bloomberg show. Saudi Manpower Solutions Co. drew orders worth 115 billion riyals, or 128 times more than the shares made available to fund managers.

Rasan Information Technology Co., one of the first fintech firms to go public in Riyadh, received orders of 108.6 billion riyals for its 841 million riyal IPO, while water treatment firm Miahona’s listing was covered 170 times by investors, with 94.4 billion riyals in orders.

The #UAE’s rising influence in Africa

The UAE’s rising influence in Africa

When Sheikh Mohammed bin Zayed al-Nahyan, president of the United Arab Emirates, jetted several hundred friends into a private airport in the Eastern Cape province to celebrate Eid last year, it showed both the promise and pitfalls in dealing with a new cash-rich player in Africa. 

Ahead of a stay at his private resort in one of South Africa’s poorest regions, the UAE ruler was reported to have donated R20mn ($1mn) to upgrade the runway at the backwater airport, which the authorities made an international port of entry for the occasion. 

But despite the mutual display of goodwill, South Africa had failed to convince the UAE to turn over the Gupta brothers, accused by South African authorities of looting the state. The Guptas had fled to the Emirates in 2018 but around two weeks before Sheikh Mohammed was touring the Eastern Cape, a Dubai court refused to extradite two of the brothers citing incorrect paperwork, a ruling South Africa’s justice minister described as “shocking”. 

The fact that South Africa nevertheless rolled out the red carpet for Sheikh Mohammed and his entourage is a sign of just how influential the UAE has become there and across the continent — and an illustration of the complexities this new alignment can sometimes bring. 

As China pares back loans to Africa, the oil-rich Gulf state has become an increasingly important source of foreign investment. In 2022 and 2023, the UAE pledged $97bn in new African investments across renewable energy, ports, mining, real estate, communications, agriculture and manufacturing — three times more than China, according to fDi Markets, an FT-owned company tracking cross-border greenfield projects.

Gold worth tens of billions smuggled to the #UAE each year, report says | Reuters

Gold worth tens of billions smuggled to the UAE each year, report says | Reuters

Gold smuggling out of Africa, mainly to the United Arab Emirates, has surged over the last decade, with hundreds of tonnes of gold worth tens of billions of dollars illegally leaving the continent every year, according to a report published on Thursday.

Analysis by Swissaid, an organisation that focuses on development aid and advocacy, found that a total of 435 tonnes of gold, mostly mined by small-scale miners and worth more than $30 billion, was smuggled out of Africa in 2022.

Swissaid said the UAE was the main destination for Africa’s smuggled gold and took in 405 tonnes in 2022. Over the previous decade, UAE accepted more than 2,500 tonnes of smuggled gold with a total value of over $115 billion, the organisation said.

Asked to comment on the findings, a UAE official said that the country had taken significant steps to address concerns about gold smuggling and implemented new regulations on gold and other precious metals.

#SaudiArabia may announce landmark Aramco share offering Thurs - sources | Reuters

Saudi Arabia may announce landmark Aramco share offering Thurs - sources | Reuters

Saudi Arabia may announce a landmark secondary share offering in oil giant Aramco later on Thursday, pending final approval, people with knowledge of the matter said.

Final approval would come from Crown Prince Mohammed bin Salman. The share offering is expected to be launched on Sunday, the sources said.

The offering is the culmination of a years-long effort to sell another chunk in one of the world's most valuable companies after its record-setting IPO in 2019 that raised $29.4 billion.

Sources told Reuters last week the offering could happen as soon as June, with one adding it could raise around $10 billion.

Since then, Aramco has continued to be a cash cow for the Saudi government as it finances a mammoth economic drive to end its "oil addiction", as the crown prince once called it.

The company bolstered dividends to almost $98 billion in 2023 from the $75 billion it had been paying annually, despite profit having dropped by nearly a quarter. It expects an outlay of $124.3 billion this year.

Aramco has also invested in refineries and petrochemical projects in China and elsewhere, expanded its retail and trading businesses, and sharpened its focus on gas, making its first foray into liquefied natural gas abroad last year.

Banks including Citi (C.N), opens new tab, Goldman Sachs (GS.N), opens new tab, and HSBC (HSBA.L), opens new tab are managing the sale, Reuters has previously reported.

Most Gulf bourses join global fall in early trade | Reuters

Most Gulf bourses join global fall in early trade | Reuters

Most stock markets in the Gulf tracked global peers lower in early trading on Thursday, amid uncertainty over interest rate cuts by the Federal Reserve this year following an unexpected improvement in U.S. consumer confidence.

The U.S. Treasury yields touched multi-week highs on Tuesday, after lacklustre debt auctions and stronger-than-expected economic data dimmed hopes for U.S. rate cuts this year.

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

The Qatari benchmark index (.QSI), opens new tab slid 0.8%, pressured by a 1.8% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 1.3% loss in Industries Qatar (IQCD.QA), opens new tab.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 0.9%, with most of its constituents posting losses, led by the utilities, healthcare and communication stocks. ACWA Power (2082.SE), opens new tab slumped 9.5% and Middle East Pharmaceutical (4016.SE), opens new tab dropped 1.4%.

Dubai's benchmark stock index (.DFMGI), opens new tab was little changed with Tecom Group (TECOM.DU), opens new tab slipping 1.1%, while Emirates Central Cooling (EMPOWER.DU), opens new tab advanced 1.4%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab rising 2.8% and ADNOC Logistics (ADNOCLS.AD), opens new tab gaining 1.5%.

The energy major ADNOC's logistics unit, ADNOC CLS, and Hanwha Ocean signed a letter of intent on Thursday to construct at least three liquified natural gas (LNG) carriers.

#UAE, South Korea Look to Buck Protectionist Wave With Trade Deal - Bloomberg

UAE, South Korea Look to Buck Protectionist Wave With Trade Deal - Bloomberg

The United Arab Emirates reached an agreement with South Korea to bolster bilateral commerce, adding Asia’s fourth-largest economy to a growing roster of nations to close trade deals with the wealthy Gulf state.

Signed during UAE President Sheikh Mohammed bin Zayed’s visit to South Korea this week, the pact — known as a Comprehensive Economic Partnership Agreement — is part of the Arab country’s effort to grow its non-oil foreign trade to over $1 trillion by the end of the decade

It’s already inked similar agreements with India, Indonesia, Turkey and Ukraine, among others. The latest deal will aim to alleviate or remove tariffs on such products as energy and health care, according to a statement published on Wednesday.

The accord stands out amid a rising tide of protectionism and tensions among the world’s biggest economies. The Biden administration announced this month it’s reimposing tariffs on hundreds of goods imported from China and has moved to quadruple US duties on Chinese electric vehicles.

Mideast Stocks: #Qatar hits 4-year low as Gulf bourses drop

Mideast Stocks: Qatar hits 4-year low as Gulf bourses drop

Most Gulf stock markets slipped on Wednesday, led by Qatar, amid uncertainty over interest rate cuts by the U.S. Fed following an unexpected improvement in consumer confidence.

The Qatari benchmark index retreated 1% after the previous day's gains, falling to 9,279, its lowest level in nearly four years, with almost all sectors in the red. Qatar Islamic Bank, the country's largest Islamic lender, slipped 1.9% and Industries Qatar lost 1.4%.

The Abu Dhabi benchmark index extended its losing streak to an eighth session and fell 0.4% to 8,711, its lowest level in more than two years. The conglomerate Alpha Dhabi Holding declined 3.6% to 10.6 dirham per share, its lowest level since listing in June 2021. Among other losers, Aldar Properties, the emirate's largest developer, and Abu Dhabi Commercial Bank fell 2.7% and 1.9% respectively.

Dubai's benchmark index was down 0.7%, with developer Emaar Properties sliding 3.1% and Dubai Islamic Bank dropping 1.1%. However, beleaguered contractor Drake & Scull International surged 24% to close at 0.310 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.

Saudi Arabia's benchmark stock index bounced back after four straight sessions of losses to end 0.3% higher.

Saudi National Bank, the kingdom's largest lender, jumped 5.8% and Riyad Bank added 3.5%. U.S. Treasury yields touched multi-week highs on Tuesday, after lacklustre debt auctions and stronger-than-expected economic data dimmed hopes for U.S. rate cuts this year.

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

Outside the Gulf, Egypt's blue-chip index was down for a third straight session and fell 0.4%, pressured by a 3.2% drop in E-Finance for Digital and a 2.2% fall in EFG Holding. However, GB Corp climbed 3.5% after the automaker posted 482% surge in its first-quarter net profit.

Lenovo to Issue $2 Billion of Convertible Bonds to #SaudiArabia Fund - Bloomberg

Lenovo to Issue $2 Billion of Convertible Bonds to Saudi Arabia Fund - Bloomberg

Lenovo Group Ltd. plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom.

Lenovo said it will issue bonds to Alat, an investment firm wholly-owned by the Public Investment Fund, at an initial conversion price of HK$10.42 per share. That’s a roughly 12% discount to Lenovo shares’ closing price the previous day, near a nine-year-high for the stock. Lenovo’s shares were down around 2% Wednesday.

As part of the agreement, the Beijing-based maker of PCs and artificial intelligence servers plans to build a research and development center in Riyadh and expand production capacity in the region. Upon maturity, the converted notes would represent about 12% of Lenovo’s current capital, or near 11% of the enlarged capital when the conversion happens.

Lenovo remains the only major global PC brand that uses in-house production capacity, making it an attractive choice for Alat, said UOB Kay Hian analyst Johnny Yum in a note to investors. At the same time, the CB issuance gives Lenovo strategic investors that can help it extend its footprint in rapidly expanding markets in Middle East and Africa, he said. “The high income Middle Eastern countries are also putting huge investments into the buildout of AI infrastructures,” he said.

#SaudiArabia: Wall Street, PE Firms On Edge Over PIF's Domestic Shift - Bloomberg

Saudi Arabia: Wall Street, PE Firms On Edge Over PIF's Domestic Shift - Bloomberg

As Saudi Arabia ratchets up efforts to reshape itself, the government’s looked to the Public Investment Fund to lead the way. But an increased focus on domestic projects like the $1.5 trillion Neom has global asset managers fretting that it will have less cash to spend abroad.

While the fund plans to ramp up annual spending to as much as $70 billion, executives at three alternative investment firms have privately expressed concerns that the PIF will channel more money into local mega-projects. That could lead to a pivot away from passive investments in global private equity, infrastructure and hedge funds, people familiar with the matter said.

It's a stark shift from recent years, when wealth funds from the Middle East were eager to deploy billions of dollars with some of the world’s largest investors. The $925 billion PIF has been an especially prolific backer to the likes of BlackRock Inc. and Brookfield Asset Management.

Officials in the kingdom had looked to draw foreign investment to help pay for at least a portion of Crown Prince Mohammed bin Salman’s Vision 2030 agenda, but that money hasn’t rolled in as expected. That’s led to additional pressure on the PIF, which is the main entity tasked with driving the multi-trillion-dollar economic diversification plan.

#Dubai's sovereign wealth fund ICD posts 68% jump in 2023 profit | Reuters

Dubai's sovereign wealth fund ICD posts 68% jump in 2023 profit | Reuters

The Investment Corporation of Dubai, the government's main investment arm, reported a 68% increase in 2023 net profit on Wednesday buoyed by its transportation, banking and financial services assets.

ICD, which owns the Emirates airline and holdings in companies such as Dubai lender Emirates NBD (ENBD.DU), opens new tab, Emaar Properties and the Emirates National Oil Company, posted a record high net profit of 60.8 billion dirhams ($16.56 billion).

About 10.4 billion dirhams was attributable to non-controlling interests.
Strong regional economic momentum and increased competitiveness of ICD's businesses led to "higher margins and performance of our portfolio companies operating in the Transportation, Banking and Financial Services, and other segments," Managing Director Mohammed Ibrahim Al Shaibani was quoted as saying in the statement.

Revenue rose 16% to 310.2 billion dirhams, while assets grew by 12% to a new record high of 1.322 trillion dirhams.

Gulf bourses dip in early trade; US inflation in focus | Reuters

Gulf bourses dip in early trade; US inflation in focus | Reuters

Stock markets in the Gulf were subdued in early trading on Wednesday amid uncertainty over interest rate cuts by the Federal Reserve this year, following an unexpected improvement in U.S. consumer confidence.

The core personal consumption expenditures price index, the Fed's preferred measure of inflation, is due on Friday, and will be closely watched for clues on the U.S. central bank's policy path.

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

The Qatari benchmark index (.QSI), opens new tab slid 0.8%, pressured by a 1.7% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 3.1% loss in United Development (UDCD.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab fell 0.4%, weighed down by losses in most sectors. Emaar Properties (EMAR.DU), opens new tab slipped 1.8% and Emirates Central Cooling (EMPOWER.DU), opens new tab dropped 2%.

However, beleaguered contractor Drake & Scull International (DSI.DU), opens new tab surged 21.6% to 0.303 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged 0.1% lower with Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 3.5% and Aldar Properties (ALDAR.AD), opens new tab, the emirate's biggest developer, sliding 1.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, with most of its constituents posting losses, led by the utilities, IT and industry stocks.

ACWA Power (2082.SE), opens new tab slipped 2.3% and Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, dropped 1.2%.

#AbuDhabi hits 2-year low as Gulf bourses drop; #Qatar gains | Reuters

Abu Dhabi hits 2-year low as Gulf bourses drop; Qatar gains | Reuters

Most stock markets in the Gulf slipped on Tuesday amid rising geopolitical tensions in the region, while investors also awaited key U.S. inflation data later in the week.

Israeli tanks advanced to the centre of Rafah for the first time on Tuesday, as part of ground offensive in the southern Gaza city that has stirred global condemnation for its continued civilian toll.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was down for a fourth straight day, falling 1.5% to 11,660, its lowest level in five months. ACWA Power (2082.SE), opens new tab slid 4.7% and Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, declined 2.1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab dropped 1% to 8,742, its lowest level in more than two years. The conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declined 6% to close at 11.0 dirham per share, its lowest level since listing in June 2021.

Among other losers, First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, fell 2.2% to 11.58 dirham apiece, the lowest in three and half years.

Dubai's benchmark index (.DFMGI), opens new tab retreated 1% after the previous day's gains, with most sectors in the red. Tolls operator Salik Company (SALIK.DU), opens new tab slid 2.2% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, slipped 1.6%.

"GCC markets were mostly under pressure due to geopolitical tensions and uncertainty around oil prices, with coming inflation data from the U.S. also impacting market sentiment", said Hani Abuagla, Senior Market Analyst at XTB MENA.

The Qatari benchmark index (.QSI), opens new tab bounced back after four straight sessions of losses to end 0.5% higher, supported by gains in finance, industry, materials and utilities.

Qatar Islamic Bank (QISB.QA), opens new tab, the country's largest Islamic lender, climbed 3.2% and Qatar Navigation (QNNC.QA), opens new tab rose 1.1%.

The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday will also be closely watched for clues on the U.S. central bank's interest rate outlook. Markets are currently fully pricing in one 25 basis-point Fed rate cut this year.

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

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab eased 0.3%, pressured by a 1.9% drop in Talaat Mostafa Group (TMGH.CA), opens new tab and a 15.4% slump in Qalaa Holding (CCAP.CA), opens new tab. However, Palm Hills Development(PHDC.CA), opens new tab climbed 3.6%.

The developer, Palm, posted a 300% surge in its first-quarter net profit.

#SaudiArabia Taps Debt Markets With Three-Part Dollar Sukuk - Bloomberg

Saudi Arabia Taps Debt Markets With Three-Part Dollar Sukuk - Bloomberg

Saudi Arabia is looking to raise money through the sale of dollar-denominated sukuk as it seeks to plug a hole in its finances and fund spending on Crown Prince Mohammed bin Salman’s economic diversification drive.

The kingdom mandated banks for a three-part offering of three-, six- and 10-year notes, according to a person familiar with the matter, who asked not to be identified because they’re not authorized to speak about it. The bonds may yield between 85 basis points and 110 basis points more than comparable US Treasuries, the person said.

Saudi Arabia is tapping the debt market as it works to find alternative sources of funding to help cover an expected fiscal shortfall of about $21 billion this year. The country has said total funding activities for the year may reach around $37 billion, with capital that’s raised helping to accelerate projects and programs of the so-called Vision 2030 agenda.

The latest offering follows a $12 billion sovereign debt sale by Saudi Arabia in January. The kingdom’s record year for international bond issuance came in 2017, when it sold $21.5 billion, according to data compiled by Bloomberg.

Citigroup Inc., Goldman Sachs Group Inc. and BNP Paribas SA are bookrunners and global coordinators. Moody’s Ratings has Saudi Arabia at A1, the fifth-highest level of investment grade, with a positive outlook.

Demand for Gulf Cooperation Council sovereign bonds remains strong, after recent deals involving Abu Dhabi and Qatar, according to Apostolos Bantis, managing director of fixed income advisory at Union Bancaire Privee Ubp SA. He expects that Saudi Arabia will raise at least $10 billion of fresh funds this time.

“The geopolitically turbulent environment in the wider Middle East region has not affected bond investor’s sentiment for high quality paper in the Gulf region,” Bantis added. Despite rising debt levels and small fiscal deficits, the Kingdom’s credit profile should remain stable, supported by ongoing high oil prices, he said.

#UAE's Alef Education sets IPO price range; set to raise up to $515mln

UAE's Alef Education sets IPO price range; set to raise up to $515mln

Alef Education, which is floating 20% of its share capital in an initial public offering (IPO), has set the offer price range between 1.30 ($0.35) UAE dirhams and AED 1.35 per share, potentially raising as much as AED 1.89 billion ($515 million) at the top of the price range.

The range implies a market capitalisation at listing of between AED 9.10 billion ($2.48 billion) and AED 9.45 billion ($2.57 billion), the Abu Dhabi-based edtech firm said.

The final offer price will be determined after the book-building process, followed by the listing on the ADX around 12 June.

The IPO subscription period starts on Tuesday and runs until 4 June for individual investors (first tranche) and until 5 June for professional investors (second tranche).

All the 1.4 billion shares to be offered are held by Tech Nova Investment – Sole Proprietorship L.L.C and Kryptonite Investments L.L.C.

Alef expects to distribute a minimum dividend of AED 135 million with respect to each of its financial years ending 31 December 2024 and 2025 to all shareholders, other than the selling shareholders, implying a dividend yield of approximately 7.42% at the bottom of the price range.

Alef Education is indirectly owned by Abu Dhabi Capital Group, a private institutional investment group.

Major Gulf bourses muted in early trade; U.S. inflation eyed | Reuters

Major Gulf bourses muted in early trade; U.S. inflation eyed | Reuters

Major stock markets in the Gulf were subdued in early trading on Tuesday amid volatile oil prices, while investors looked forward to inflation data later this week for clues on the path of U.S. interest rate cuts.

Oil prices, a catalyst for the Gulf's financial markets, flitted between gains and losses as markets waited for an OPEC+ meeting on June 2. Brent edged up to $83.18 a barrel by 0800 GMT.

The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched by investors for clues on the U.S. central bank's monetary easing plan.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell 0.4%, after declining for the last five sessions. Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab slid 2.6% and Aldar Properties (ALDAR.AD), opens new tab, the emirate's biggest developer, fell 2.3%.

Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, weighed down by losses in most sectors. ACWA Power (2082.SE), opens new tab slipped 1.4% and Mouwasat Medical (4002.SE), opens new tab dropped 3.8%.

The Qatari benchmark index (.QSI), opens new tab slid 0.1%, pressured by a 1.4% drop in Qatar Fuel Co (QFLS.QA), opens new tab and a 1.1% loss in Commercial Bank (COMB.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.1%, helped by gains in most sectors. Blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 1% and tolls operator Salik Company (SALIK.DU), opens new tab added 1.3%. However, Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, and Ajman Bank (AJBNK.DU), opens new tab lost 0.6% and 1.7% respectively.

#Saudi’s Fakeeh Care Group retail IPO tranche raises $1.1bln, oversubscribed 14.5x

Saudi’s Fakeeh Care Group retail IPO tranche raises $1.1bln, oversubscribed 14.5x

Saudi hospital group Dr. Soliman Abdul Kader Fakeeh Hospital and its subsidiaries (Fakeeh Care Group) said that the retail tranche of its initial public offering (IPO) was oversubscribed 14.5 times, reaching SAR 4.15 billion ($1.11 billion).

A minimum of three shares were allocated to each investor, the company said in a statement on Monday.

The total number of shares offered to retail subscribers was 4.98 million, with the retail tranche running from May 21 to 22.

The remaining shares will be allocated pro-rata at an average allocation factor of 1.4075%.

Fakeeh Care Group announced the sale of a 21.5% stake in an IPO, or 49.8 million shares, at a final offer price of SAR 57.50 ($29.46) per share, raising up to SAR 2.9 billion ($763 million).

The institutional book-building resulted in subscription coverage of nearly 119x the total offered shares.

Following its listing on the Saudi Exchange’s (Tadawul) main market, the company is expected to have a free float of 21.47%.

#Dubai contractor Drake & Scull to resume trading on Wednesday

Dubai contractor Drake & Scull to resume trading on Wednesday

Dubai-listed contractor Drake & Scull (DSI) will resume trading on the Dubai Financial Market (DFM) on Wednesday following a suspension for restructuring of more than five years and losses dating back to 2015.

Last week saw a false start as the company’s planned return was delayed pending approvals. DSI proposes to return to trading at a reference share price of AED 0.25 ($0.07) following approvals from the DFM and the UAE's regulator, the Securities and Commodities Authority (SCA).

The company said in a disclosure to DFM that it has raised AED 454 million in a recent capital increase subscription but was carrying accumulated losses of AED 5.5 billion as of 31 March 2024.

However, the disclosure said it had agreed with creditors to write off 90% of claims amounting to AED 3.4 billion, to be registered as a gain in financial statements once written off.

The company said it had also agreed to offset remaining claims of AED 378 million by issuing a mandatory convertible sukuk (MCS) maturing in five years, which it said will have a positive impact on balance sheets.

Mideast Stocks: #Qatar index hits 7-month low as most Gulf bourses slip; #Dubai gains

Mideast Stocks: Qatar index hits 7-month low as most Gulf bourses slip; Dubai gains

Stock markets in the Gulf slipped on Monday as investors turned cautious ahead of the U.S. inflation data this week, while the Dubai index halted a three-session losing streak. The Federal Reserve's preferred measure of inflation, core personal consumption expenditures, due on Friday, will be closely watched for clues on the U.S. central bank's interest rate cut path.

Most Gulf currencies are pegged to the dollar, and any Fed action on rates is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

The Qatari benchmark index was down for a fourth day, falling 0.7% to 9,332, its lowest level in seven months, with most constituents posting losses. Qatar National Bank, the region's largest lender, dropped 1.5% and Qatar Navigation fell 1.9%.

Saudi Arabia's benchmark stock index slipped for a third consecutive session to end 0.2% lower, with almost all sectors in the red. Riyad Bank lost 2.7% and Etihad Etisalat dropped 2%. The

Abu Dhabi benchmark index fell marginally, with conglomerate Alpha Dhabi Holding losing 1% and National Marine Dredging dropping 1.7%. Among other losers, energy major ADNOC's three units ADNOC Distribution, ADNOC Drilling, and ADNOC Logistics fell 1.1%, 1.5% and 2.2%, respectively.

Meanwhile, energy giant ADNOC announced an increase in its local manufacturing target for critical industrial products in its procurement pipeline to 90 billion dirhams ($24.5 billion) by 2030 from the previous target of 70 billion dirhams ($19 billion) by 2027 as part of its in-country value (ICV) program.

Dubai's benchmark index bounced back after three straight sessions of losses to end 0.4% higher, supported by gains in consumer staples, communications and finance. Dubai Islamic Bank advanced 3.1% and Parkin Company rose 1.9%.

Oil prices, a catalyst for the Gulf's financial markets, were up 0.9% as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.84 a barrel by 1340 GMT.

Outside the Gulf, Egypt's blue-chip index eased 0.9%, pressured by a 2.5% drop in Talaat Mostafa Group and a 5.6% fall in Sidi Kerir Petrochemicals.

#AbuDhabi conglomerate embarks on flurry of mining deals

Abu Dhabi conglomerate embarks on flurry of mining deals

The mining business owned by $240bn Abu Dhabi conglomerate IHC has embarked on a flurry of deals in Africa, after breaking into the market last year with its acquisition of a major Zambian copper mine. 

IHC chief executive Syed Basar Shueb, told the Financial Times that its IRH subsidiary had signed joint venture agreements for iron ore mining in two places in Angola — Kassala Kitungo and Munenga — and that it was in advanced talks to mine nickel in Burundi as well as various metals in Tanzania and Kenya. 

IHC expected to make about $1bn of mining acquisitions this year, Shueb told the FT. 

The Abu Dhabi group’s foray into the mining industry comes as BHP’s £34bn approach for rival Anglo American highlights the race to secure access to minerals such as copper, iron ore and lithium that are critical to the transition to cleaner energy. 

Asked who IRH was bidding against for mining assets, Shueb said the “majority of the time you’re competing with Chinese. There’s no other countries.”

Watch Horizons Middle East & Africa 05/27/2024 - Bloomberg

Watch Horizons Middle East & Africa 05/27/2024 - Bloomberg

#UAE’s top 10 banks see net income rise 9.3% to $5.7bln in Q1

UAE’s top 10 banks see net income rise 9.3% to $5.7bln in Q1

The UAE’s top 10 banks saw their profitability grow in the first quarter of 2024 with net income of AED 20.8 billion ($5.7 billion), up 9.3% on the previous quarter with deposits up 5.1%.

Alvarez & Marsal’s UAE Banking Pulse said loans and advances had already reached the highest level post-COVID-19 pandemic, up 3.4% quarter-on-quarter (QoQ).

A&M said interest rates are likely to be at peak and the cycle reversion is expected to begin in the second half of the year.

The net income growth comes on the back of non-core income growth, lower operational costs, and declining impairment charges of 47.9% QoQ.

With no change in the benchmark interest rates during the quarter, net interest income (NII) declined marginally by 1.1% QoQ, during the quarter, A&M said, however, non-core income grew by 18.9%, growing the total operating income by 4.8%.

Banks analysed for the report are First Abu Dhabi Bank (FAB), Emirates NBD (ENBD), Abu Dhabi Commercial Bank, Dubai Islamic Bank, Mashreq Bank, Abu Dhabi Islamic Bank, Commercial Bank of Dubai, National Bank of Fujairah, National Bank of Ras Al-Khaimah and Sharjah Islamic Bank.

Asad Ahmed, A&M managing director and head of Middle East financial services, said asset quality remains sensitive to the continued high interest rate environment, with the rate reversal expected to start in the autumn of 2024, with a gradual impact expected on net interest margins.

“Barring any regional issues, the sector has reason to remain optimistic as we anticipate continued steady growth in the UAE banking sector,” he said.

#SaudiArabia’s SABIC transfers ownership of $3.3bln Hadeed unit to PIF

Saudi Arabia’s SABIC transfers ownership of $3.3bln Hadeed unit to PIF

Petrochemical giant Saudi Basic Industries Corporation (SABIC) has secured all the necessary regulatory approvals for the Saudi Iron and Steel Company’s (Hadeed) acquisition by the Public Investment Fund (PIF).

The company has fulfilled all transaction-related conditions and completed the transfer of Hadeed’s full ownership to PIF, the company said in a statement to the Saudi stock exchange on Sunday.

However, the final price will be set once the completion account mechanism is concluded, which is likely in the second half of 2024, the statement noted.

In September 2023, SABIC agreed to sell its subsidiary Hadeed to the PIF, the Kingdom’s sovereign wealth fund, for an enterprise value of 12.5 billion Saudi riyals ($3.33 billion).

Gulf bourses mixed in early trading | Reuters

Gulf bourses mixed in early trading | Reuters

Stock markets in the Gulf were mixed in early trading on Monday amid steady oil prices, while investors awaited further cues on the U.S. Federal Reserve's interest rate outlook.

Oil prices, a catalyst for the Gulf's financial markets, were steady as markets awaited an OPEC+ meeting on June 2, with Brent trading at $82.32 a barrel at 0740 GMT.

Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.4%, helped by gains in the consumer staples, finance and industry sectors. Commercial Bank of Dubai (CBD.DU), opens new tab climbed 8.8% and Parkin Company (PARKIN.DU), opens new tab added 1.1%.

Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors, with Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, rising 1.4% and Dr Sulaiman Al Habib Medical (4013.SE), opens new tab adding 1.1%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was little changed, with conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and crypto mining firm Phoenix Group (PHX.AD), opens new tab gaining 0.7% and 2.3% respectively, while Abu Dhabi Commercial Bank (ADCB.AD), opens new tab, the UAE's third-biggest lender, dropped 2.3%.

The Qatari benchmark index (.QSI), opens new tab fell 0.5%, pressured by a 1.6% drop in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 1.1% fall in United Development Co (UDCD.QA), opens new tab.

Friday's U.S. personal consumption expenditures reading will be crucial for investors, giving them an idea of whether the Federal Reserve will be in a position to lower borrowing costs.

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

Fitch affirms #Oman's credit rating at BB+, with stable outlook

Fitch affirms Oman's credit rating at BB+, with stable outlook

Fitch issued its credit rating report on the Sultanate of Oman, in which it affirmed the credit rating at “BB+” with a stable outlook. This was due to the decline in public debt as a percentage of GDP and the positive impact of the measures on public finances.

Fitch expects the Sultanate of Oman to achieve a fiscal surplus of 2.2 per cent of GDP in 2024 and 0.9 per cent in 2025, assuming that the average oil price reaches about US$80 per barrel in 2024 and about US$70 per barrel in 2025. The agency expects the oil price break-even point in the Sultanate of Oman to reach 65-70 US dollars per barrel.

The agency said that it expects public debt as a percentage of GDP to decrease from 36.5 per cent at the end of 2023 to 32.4 per cent in 2024, and 31.9 per cent in 2025, indicating that the Sultanate of Oman will continue to repay some debts before their due date, benefiting from additional revenues resulting from high oil prices. The agency expects the government to repay about US$2.9 billion of its foreign debt in the first half of 2024.

The agency indicated that it expects GDP to grow from 1.3 per cent. f the non-oil sector by 2.7 per in 2023 to 1.8 per cent in 2024. This growth is attributed to increased domestic consumption, foreign investment growth, and tourism sector improvement. The agency expects the non-oil sector to grow to 2.8 per cent in 2025.

Fitch explained in its report that the Sultanate of Oman's credit rating may rise if financial control measures continue, public debt declines as a percentage of gross domestic product, and non-oil revenues grow.

Emirates NBD, JP Morgan Chase working on planned Alec IPO

Emirates NBD, JP Morgan Chase working on planned Alec IPO

Investment Corporation of Dubai (ICD) has picked top banks including Emirates NBD Capital and JPMorgan Chase & Company to work on the planned initial public offering of its key unit - Alec Engineering and Contracting reported Bloomberg, citing people familiar with the matter.

Moelis & Co. is also advising state-backed ICD on the share sale that could take place as early as in the second half of this year, the people said, asking not to be identified as the information isn’t public.

Details including size and timing are still under discussion and could change, they stated.

A major construction company with related businesses operating in the GCC and a presence in Africa, Alec has consistently evolved and grown over the last 20 years to become a trusted partner for the execution of complex and iconic construction projects.

#Qatar index hits 7-month low as Gulf bourses dip; Egypt gains | Reuters

Qatar index hits 7-month low as Gulf bourses dip; Egypt gains | Reuters

Major stock markets in the Gulf fell on Sunday, led by the Qatar index amid receding expectations for U.S. interest rate cuts following resilient economic data and hawkish comments from the Fed's last policy meeting.

The Qatari benchmark index (.QSI), opens new tab was down for a third day, falling 1.7% to 9,396, its lowest level in nearly seven months, with all constituents posting losses.

Industries Qatar (IQCD.QA), opens new tab dropped 1.3% and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, slipped 2.2%.

Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.2% to close at 11,851, its lowest in about four months with almost all sectors in the red.

Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, slipped 1.4% and Saudi Aramco (2222.SE), opens new tab lost 1.7%. Saudi Arabia, the oil major's owner, is planning a multi-billion-dollar share sale in Aramco as soon as June.

However, ADES Holding (2382.SE), opens new tab gained 1.8% after the oil and gas driller was awarded a 2.42 billion riyals ($645 million) contract by Kuwait Oil Co.

Robust economic data from the U.S. on Thursday showed an acceleration in business activity in May, and hawkish U.S. Federal Reserve minutes released on Wednesday led traders to dial back their bets on rate cuts this year.

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

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 1.2%, aided by gains in most sectors with Eastern Company (EAST.CA), opens new tab climbing 2.9% and Madinet Masr (MASR.CA), opens new tab rising 4.3%.

The developer posted a 286% surge in its first-quarter net profit.

Meanwhile, Egypt's central bank kept its overnight interest rates steady on Thursday, saying that while economic growth had slowed, rising non-food inflation had offset a steady decline in food inflation.

#UAE Set to Hit Oil Capacity Target Year Earlier Than It Forecast - Bloomberg

UAE Set to Hit Oil Capacity Target Year Earlier Than It Forecast - Bloomberg

The United Arab Emirates is on course to achieve its full oil capacity target more than a year earlier than expected.

Abu Dhabi National Oil Co. is likely to reach its 5 million barrel-a-day goal by the end of next year or early 2026, ahead of the 2027 goal the company had set, according to people with knowledge of the operations. The higher capacity will be a potential source of tension as the Organization of Petroleum Exporting Countries and its allies deliberates new production quotas later this year.

OPEC and its partners have been restricting output for years to shore up the market and raise prices. The UAE — which said this month that it had raised capacity from last year’s level — has been eager to use some of its spare volumes. The country has occasionally clashed with OPEC’s de-facto leader Saudi Arabia on the issue, risking a split among the group three years ago, before a compromise was found.

Abu Dhabi is currently producing at about two-thirds of its capability. Its economy is arguably among the most diversified in the Gulf and it faces less pressure to keep oil prices high, though crude remains key to the emirate. OPEC+ is scheduled to review members’ existing capacity levels later this year, and use that to set output baseline levels — the starting point from which cuts are calculated — for 2025.

#Qatar Energy Signs 15-Year Urea Supply Deal With Koch Fertilizer - Bloomberg

QatarEnergy Signs 15-Year Urea Supply Deal With Koch Fertilizer - Bloomberg

QatarEnergy signed a long-term urea supply deal with Koch Fertilizer LLC, a US-based fertilizer producer and supplier.

The 15-year agreement, starting in July 2024, is for the supply of as much as 0.74 million tons of urea per annum to Koch Fertilizer, QatarEnergy said in an emailed statement on Sunday. Under this agreement, urea of Qatari origin will be supplied into the agricultural sectors of the US and other international markets.

#SaudiArabia plans Aramco share sale as soon as June, sources say

Saudi Arabia plans Aramco share sale as soon as June, sources say

Saudi Arabia is planning a multi-billion-dollar share sale in energy giant Aramco as soon as June in what would be one of the region's biggest stock deals, two people familiar with the matter said.

The offering could raise around $10 billion, one of the people said. The preparations are ongoing and the details could still change, the sources said, who were speaking on condition of anonymity because the matter is private.

The shares will be listed in Riyadh and it will be a fully marketed offering rather than an accelerated sale over a few days, they added.

The government's communication office and Aramco did not immediately respond to a request for comment.

Banks including Citigroup, Goldman Sachs and HSBC had previously been lined up to manage the sale, Reuters has reported.

Saudi Arabia has embarked on an economic transition known as Vision 2030, which puts an expanded private sector and non-oil growth at the center of its future development.

The Saudi government remains overwhelmingly Aramco's biggest shareholder, with a 90% stake, and heavily relies on its payouts.

Aramco expects to pay $31 billion in dividends, the company said earlier this month, despite reporting lower earnings for the first quarter amid lower oil prices and volumes sold.

Since its initial public offering in 2019, the world's biggest IPO, Aramco shares have risen from an IPO price of 32 riyals to a high of 38.64 riyals a year ago. Its shares closed at 29.95 riyals on Thursday.

Moody's raises #SaudiArabia's local and foreign currency rating to 'Aa1' | Reuters

Moody's raises Saudi Arabia's local and foreign currency rating to 'Aa1' | Reuters

Credit rating agency Moody's raised Saudi Arabia's local and foreign currency rating to 'Aa1' from 'Aa2' on Friday, citing increased predictability of the government's decision-making processes affecting the private sector.

For the world's largest crude exporter, non-oil economic growth is a top priority and the government has accelerated policies to drive investment into tourism and expand the private sector.

The change in rating reflects, "increased predictability of policies and decision-making processes affecting non-government issuers given institutional improvements," the ratings agency said in a statement.

The "zero-notch gap" between rating for the foreign currency and the local currency is aided by the central bank's very large foreign-exchange reserve and reflects very low transfer and convertibility risks, Moody's added.

It, however, attributed reliance on a single revenue source for both the private and the government sector and challenging regional geopolitical dynamics for the "three-notch gap" between the local-currency rating and the 'A1' sovereign rating.

Fellow rating agency S&P Global in March affirmed Saudi Arabia's sovereign rating and outlook betting on social and economic reforms to improve the country's prospects.

#UAE markets track oil prices lower | Reuters

UAE markets track oil prices lower | Reuters

Stocks in the United Arab Emirates declined on Friday, pressured by losses in crude prices as strong U.S. and German economic data sparked concerns that sticky inflation could prolong higher interest rates and curb fuel demand.

Oil prices - a key catalyst for Gulf's financial markets - drifted lower on Friday with Brent crude easing 0.74% to $80.76 a barrel by 1032 GMT.

Data on Thursday showed U.S. jobless claims dropped while S&P Global's Flash PMI survey showed business activity expanded faster than economists forecast in May.

Most Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and they generally follow the Fed's policy moves.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab dropped 0.6%, hitting their lowest level in over 27-months, dragged down by a 6.9% drop in state-run utility firm Abu Dhabi Nation Energy Company (TAQA.AD), opens new tab, while Abu Dhabi healthcare platform Pure Health Holding (PUREHEALTH.AD), opens new tab shed 5.8%.

Meanwhile, crypto mining firm Phoenix Group (PHX.AD), opens new tab gained 4.8%, recovering from six straight sessions of losses that took it below the listing price.

However, Palms Sports (PALMS.AD), opens new tab jumped 2.6% after the firm acquired an 80% Stake In Yas Physiotherapy Center.

Dubai's main index (.DFMGI), opens new tab settled 0.3% lower, and 1.4% down for the week, to its lowest level since late December last year as market heavyweight Emaar Properties (EMAR.DU), opens new tab and Emirates NBD Bank (ENBD.DU), opens new tab lost 1.6% each.

Abu Dhabi's index logged 2.3% losses, its steepest weekly decline since mid-October last year.

#Saudi Arabian Crown Prince Juggles Ambition With Regional Reality - Bloomberg

Saudi Arabian Crown Prince Juggles Ambition With Regional Reality - Bloomberg

Crown Prince Mohammed bin Salman faces a complicated balancing act as he consolidates power in Saudi Arabia.

Interest in his stewardship of the world’s biggest oil exporter has intensified since the royal court announced this week that 88-year-old King Salman was being treated for lung inflammation at his palace in Jeddah. Yet MBS, as he is known, has effectively been running Saudi Arabia since his father made him his heir in 2017.

Now he’s expected to focus on tightening control domestically. The preference at this stage is likely to be to co-opt possible opponents rather than deploy the iron fist his regime used before to crush dissent within the royal family, the once-powerful religious establishment, and even abroad in the case of slain Washington Post columnist Jamal Khashoggi.

A key plank of administration is his Vision 2030 agenda to transform the Saudi economy by investing in everything from tourism to electric vehicles and semiconductors. But that won’t be easy.

#AbuDhabi’s IHC Eyes Buyback as Stock Cools After 43,000% Jump - Bloomberg

Abu Dhabi’s IHC Eyes Buyback as Stock Cools After 43,000% Jump - Bloomberg

International Holding Co., the sprawling conglomerate chaired by one of Abu Dhabi’s most powerful royals, has planned its 5 billion dirham ($1.4 billion) buyback program to revive its share price as the 43,000% rally in its stock cools.

There’s “significant value in the future” of IHC and a stock buyback will help enhance the company’s earnings per share, Chief Executive Officer Syed Basar Shueb said in an interview. It’s also an “opportunity” for shareholders who want to sell their stock, he added.

Emirati nationals own nearly 90% of IHC. Its second-biggest shareholder is Royal Group, a company led by the UAE’s national security adviser, Sheikh Tahnoon Bin Zayed Al Nahyan — who is also IHC’s chairman. The biggest individual shareholder, Pal Group of Companies LLC, is a subsidiary of Royal Group. Together, they own about 60% of IHC. Its low free float means that despite its size, IHC is not part of the widely-tracked MSCI Emerging Markets Index.

It announced the buyback program earlier this month, planning for a total of as much as 5 billion dirhams to be executed over a one-year period, pending approval from shareholders and regulators.

“This is our strategy for rewarding our shareholders who have probably not seen the share price growth in the past year,” the CEO said. “It should help boosting the price.”

#SaudiArabia: Goldman (GS) Is First Wall Street Bank to Get Saudi HQ License - Bloomberg

Saudi Arabia: Goldman (GS) Is First Wall Street Bank to Get Saudi HQ License - Bloomberg

Goldman Sachs Group Inc. has become the first Wall Street bank to take a step toward complying with Saudi Arabia’s ultimatum for foreign firms to set up their Middle Eastern base there.

The investment bank received a license recently from the kingdom’s Ministry of Investment to set up its regional headquarters in Riyadh, according to people familiar with the matter. It wasn’t immediately clear how many staffers will move to Saudi Arabia and how much of Goldman’s regional operations will ultimately be based in the kingdom.

A spokesperson for Goldman declined to comment.

Saudi Arabia announced new regulations for state contracts in 2021, saying it wanted to limit “economic leakage” — a term used by the government for state spending that can benefit firms that don’t have a substantial presence in the country.

Under the rules that came into force this year, firms must have a regional base in Saudi Arabia with at least 15 employees, including executives overseeing other countries or risk losing business with the kingdom’s vast network of government entities.

Mideast Stocks: #AbuDhabi index hits 2-year low as Gulf bourses slip on hawkish Fed minutes

Mideast Stocks: Abu Dhabi index hits 2-year low as Gulf bourses slip on hawkish Fed minutes

Stock markets in the Gulf declined on Thursday, led by the Qatar index, after more hawkish-than-expected minutes of the U.S. Federal Reserve's latest policy meeting dampened investor sentiment.

Fed officials at their April 30-May 1 meeting indicated they still had faith that price pressures would ease at least slowly, but the minutes also reflected a discussion of possible tightening should risks to inflation materialise.

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

The Qatari benchmark index dropped 1.5%, with all constituents posting losses, led by materials, real estate, energy and finance stocks. Shares of Qatar National Bank, the region's largest lender, lost 1.7% and Industries Qatar fell 1.6%.

Saudi Arabia's benchmark stock index retreated 1.3%, with almost all sectors in the red. Al Rajhi Bank, the world's biggest Islamic lender, lost 1.4% and Saudi Telecom, the kingdom's largest telecom operator, declined 2.5%.

The Abu Dhabi benchmark index was down for a fourth straight day, falling 0.9% to 8,890, its lowest level in more than two years. Multiply Group slid 6% and conglomerate Alpha Dhabi Holding declined 8.2% to close at 11.68 dirham per share, its lowest level since listing in June 2021.

Alpha Dhabi said on Wednesday it ended discussion to acquire a majority stake in the UAE-based water and waste water project developer Metito Holdings. Among other losers, shares of crypto mining firm Phoenix Group dropped 6.7% to 1.68 dirham apiece, the lowest since listing in 2023.

Dubai's benchmark index was down 0.8%, pressured by a 1.1% dip in bule-chip developer Emaar Properties and 1.9% fall in Emirates NBD, the emirate's largest lender.

Outside the Gulf, Egypt's blue-chip index eased 0.1% with Misr Fertilizers falling 7.1%. Eastern Company, however, advanced 5.3%. Philip Morris International said on Wednesday it had acquired a 14.7% indirect minority stake in Egypt's largest cigarette manufacturer Eastern Co. Among other gainers, EFG Holding rose 3.3% after Egypt's biggest investment bank reported 110% surge in its quarterly net profit.

#UAE economy grew 4.3% in fourth quarter of 2023 | Reuters

UAE economy grew 4.3% in fourth quarter of 2023 | Reuters

The United Arab Emirates' (UAE) economy grew 4.3% year-on-year in the fourth quarter of 2023, preliminary government data showed, with non-oil economic growth vastly outperforming overall GDP.

Non-oil GDP surged 6.7% in the same period, according to data from the Federal Competitiveness and Statistics Centre.

Financial and insurance activities, transportation and storage, real estate and construction sectors were among the top growth sectors.

The Gulf state has also intensified investments into sectors such as renewable energy and advanced technology.

One of the world's top oil exporters, the UAE has accelerated plans to diversify its economy away from hydrocarbons and draw foreign investment, with non-oil GDP now representing over 70% of the overall growth contribution.

Real GDP growth is estimated at 3.6% in 2023, according to Reuters calculations, with non-oil GDP growth at 6.2% amid a decline in oil activity last year on lower production and prices, which weighed on all regional oil and gas producers.

Most Gulf bourses drop on hawkish Fed minutes | Reuters

Most Gulf bourses drop on hawkish Fed minutes | Reuters

Most stock markets in the Gulf slipped in early trading on Thursday on more hawkish-than-expected minutes of the U.S. Federal Reserve's latest policy meeting, while muted oil prices also weighed on sentiment.

Fed officials at their April 30-May 1 session indicated they still had faith that price pressures would ease, if only slowly, but the meeting minutes also reflected a discussion of possible tightening.

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

The Qatari benchmark index (.QSI), opens new tab was down 0.7%, pressured by a 1.1% drop in Industries Qatar (IQCD.QA), opens new tab and a 1.4% loss in Qatar Navigation (QNNC.QA), opens new tab.

Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.6%, weighed down by losses in almost all sectors. The blue-chip developer Emaar Properties (EMAR.DU), opens new tab fell 1.2% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, shed 0.6%.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab fell 0.6% with Aldar Properties (ALDAR.AD), opens new tab sliding 1% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 4.7%.

ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbed 3.2%. Parent energy major ADNOC said on Thursday it raised $935 million from an additional 5.5% sale of shares in ADNOC Drilling to institutional investors.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 0.5%, with Banque Saudi Fransi (1050.SE), opens new tab dropping 3.7% and Saudi Arabian Mining (1211.SE), opens new tab falling 1.4%. Riyadh Cables (4142.SE), opens new tab and Makkah Construction (4100.SE), opens new tab, however, advanced 6.3% and 2.5%, respectively.

Oil prices, a catalyst for the Gulf's financial markets, eased for a fourth straight session, with Brent down 0.2% at $81.76 a barrel by 0805 GMT.