Qatar Selling First Eurobond in Four Years and Debut Green Deal - Bloomberg
Qatar is selling its first dollar bonds in four years and its debut green deal, as one of the world’s largest liquefied natural gas exporters seeks to tap into a booming global market for sustainable debt.
The government is selling green bonds with maturities of five and 10 years, according to people familiar with the matter. Initial spread guidance is 70 basis points over US Treasuries for the short tranche and 80 basis points for the longer one.
The final terms, including the pricing and size, will probably be announced later on Tuesday.
Green bonds from the Middle East have gained traction in the past few years, with investors piling into sales from the likes of Saudi Arabia’s wealth fund, Abu Dhabi’s main property company and the government of Sharjah.
Qatar is yet to announce a timeline for zeroing out its carbon emissions and is one of the world’s highest per capita emitters of planet-warming gases. Like other nations in the Gulf, it uses plenty of energy on air conditioning and to desalinate water.
Yet it is spending billions of dollars to ramp up solar power. It also argues that gas is a fuel that will help with global climate goals because it’s cleaner than oil or coal, though the industry is associated with methane leaks.
Qatar is one of the richest countries in the world and has a rating of AA or its equivalent — the third-highest possible — from all three major ratings companies.
It last came to the eurobond market in April 2020, raising $10 billion after attracting $45 billion of orders from investors.
The main banks arranging the latest deal are Crédit Agricole AS, HSBC Holdings Plc, JPMorgan Chase & Co. and Qatar National Bank.
Tuesday 21 May 2024
#Dubai Airport Sees Record Passengers After Adding Destinations - Bloomberg
Dubai Airport Sees Record Passengers After Adding Destinations - Bloomberg
Dubai International Airport predicted a record number of passengers for this year, surpassing its busiest inflow in 2018, as the emirate attracts more visitors and the hub’s main carriers, Emirates and Flydubai, expand their networks.
Passenger numbers will rise to 91 million in 2024, beating the previous record of 89.1 million set in 2018, the airport operator said in a statement on Tuesday. Dubai International said it saw a record 23 million guests passing through its terminals in the first quarter, with India remaining the top destination, followed by Saudi Arabia, the UK, and Pakistan.
The growth was “thanks in part to the proliferation of cities being added to our network by our home base carriers Emirates and Flydubai, in recent months,” Dubai Airports Chief Executive Officer Paul Griffiths said in the statement.
In order to accommodate its growth plans, Dubai’s government is proceeding with a $35 billion expansion of its second hub, Al Maktoum International Airport, in anticipation of a spike in visitors. The airfield already exists but caters mainly to cargo and some low-cost services for the time being.
Dubai International Airport predicted a record number of passengers for this year, surpassing its busiest inflow in 2018, as the emirate attracts more visitors and the hub’s main carriers, Emirates and Flydubai, expand their networks.
Passenger numbers will rise to 91 million in 2024, beating the previous record of 89.1 million set in 2018, the airport operator said in a statement on Tuesday. Dubai International said it saw a record 23 million guests passing through its terminals in the first quarter, with India remaining the top destination, followed by Saudi Arabia, the UK, and Pakistan.
The growth was “thanks in part to the proliferation of cities being added to our network by our home base carriers Emirates and Flydubai, in recent months,” Dubai Airports Chief Executive Officer Paul Griffiths said in the statement.
In order to accommodate its growth plans, Dubai’s government is proceeding with a $35 billion expansion of its second hub, Al Maktoum International Airport, in anticipation of a spike in visitors. The airfield already exists but caters mainly to cargo and some low-cost services for the time being.
Exclusive: Emirati bank FAB in advanced talks to buy Turkey's Yapi Kredi, sources say | Reuters
Exclusive: Emirati bank FAB in advanced talks to buy Turkey's Yapi Kredi, sources say | Reuters
First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab is in advanced talks to acquire Turkish conglomerate Koc Group's (KCHOL.IS), opens new tab 61.2% stake in Istanbul-based lender Yapi Kredi (YKBNK.IS), opens new tab for about $8 billion, according to three sources close to the matter.
Final details of the potential deal for Turkey's fourth-biggest private bank are being hammered out after several months of negotiations, the sources said on condition of anonymity because the talks are confidential.
Shares in Yapi Kredi soared 10% after the news emerged, while Koc Holding jumped more than 9%, both touching record highs. FAB shares slipped slightly.
One of the sources said that Turkish conglomerate Koc had sought about $8.5 billion for its shares in Yapi Kredi and that FAB had offered about $7.5 billion.
FAB, the United Arab Emirates' largest bank by assets, declined to comment.
In a statement to the Istanbul bourse, Koc Holding referenced the Reuters report and said it was holding preliminary talks on the sale of Yapi Kredi shares, adding it can always negotiate "to evaluate possible alternatives" in its portfolio.
First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab is in advanced talks to acquire Turkish conglomerate Koc Group's (KCHOL.IS), opens new tab 61.2% stake in Istanbul-based lender Yapi Kredi (YKBNK.IS), opens new tab for about $8 billion, according to three sources close to the matter.
Final details of the potential deal for Turkey's fourth-biggest private bank are being hammered out after several months of negotiations, the sources said on condition of anonymity because the talks are confidential.
Shares in Yapi Kredi soared 10% after the news emerged, while Koc Holding jumped more than 9%, both touching record highs. FAB shares slipped slightly.
One of the sources said that Turkish conglomerate Koc had sought about $8.5 billion for its shares in Yapi Kredi and that FAB had offered about $7.5 billion.
FAB, the United Arab Emirates' largest bank by assets, declined to comment.
In a statement to the Istanbul bourse, Koc Holding referenced the Reuters report and said it was holding preliminary talks on the sale of Yapi Kredi shares, adding it can always negotiate "to evaluate possible alternatives" in its portfolio.
Most Gulf bourses muted on doubts over US rate moves | Reuters
Most Gulf bourses muted on doubts over US rate moves | Reuters
Most stock markets in the Gulf were subdued in early trading on Tuesday after comments from U.S. Federal Reserve officials cast doubt over the timing of potential U.S. interest rate cuts this year.
Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, dragged down by losses in finance, healthcare and energy.
Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, shed 0.8%, and Aldrees Petroleum (4200.SE), opens new tab dropped 2.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab sliding 1.8% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab slipping 1.9%.
The Qatari benchmark index (.QSI), opens new tab fell 0.2%, pressured by a 1.2% drop in United Development Co (UDCD.QA), opens new tab and a 0.8% loss in Commercial Bank (COMB.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.6%, lifted by gains in finance, real estate and industry, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 2.7% and tolls operator Salik Company (SALIK.DU), opens new tab adding 1.8%.
Several U.S. Fed officials on Monday signalled continued caution on interest rate policy and inflation, putting a dent in risk sentiment.
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.
Most stock markets in the Gulf were subdued in early trading on Tuesday after comments from U.S. Federal Reserve officials cast doubt over the timing of potential U.S. interest rate cuts this year.
Saudi Arabia's benchmark stock index (.TASI), opens new tab eased 0.1%, dragged down by losses in finance, healthcare and energy.
Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, shed 0.8%, and Aldrees Petroleum (4200.SE), opens new tab dropped 2.6%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with Abu Dhabi Commercial Bank (ADCB.AD), opens new tab sliding 1.8% and conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab slipping 1.9%.
The Qatari benchmark index (.QSI), opens new tab fell 0.2%, pressured by a 1.2% drop in United Development Co (UDCD.QA), opens new tab and a 0.8% loss in Commercial Bank (COMB.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab was up 0.6%, lifted by gains in finance, real estate and industry, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 2.7% and tolls operator Salik Company (SALIK.DU), opens new tab adding 1.8%.
Several U.S. Fed officials on Monday signalled continued caution on interest rate policy and inflation, putting a dent in risk sentiment.
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.
Monday 20 May 2024
Mideast Stocks: Gulf markets drop as political uncertainty rises
Mideast Stocks: Gulf markets drop as political uncertainty rises
Most stock markets in the Gulf slipped on Monday amid political uncertainty in the region after Iran's president died in a helicopter crash and Saudi Arabia's crown prince postponed a trip to Japan, citing issues with the king's health.
Saudi Arabia's benchmark stock index dropped 0.6% with most of its constituents posting losses, led by IT, real estate and finance stocks. Saudi National Bank, the kingdom's largest lender, slipped 2% and Saudi Basic Industries, one of the world's biggest petrochemical companies, declined 2.3%.
The Qatari benchmark index eased 0.3%, pressured by a 1.2% drop in Qatar National Bank, the region's largest lender and a 0.5% loss in Industries Qatar. Meanwhile, Qatar recorded a budget surplus of 2 billion riyals ($548.9 million) in the first quarter of 2024, down from 19.7 billion riyals a year earlier, the finance ministry said on Sunday.
In Abu Dhabi, the benchmark index fell marginally with conglomerate International Holding Company shedding 0.4%, while emirate's largest developer, Aldar Properties climbed 3.5%.
Among other gainers, ADNOC Distribution and ADNOC Logistics rose 1.7% and 3.8%, respectively, after their parent company, oil major Abu Dhabi National Oil Company (ADNOC) said it had acquired an 11.7% stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas and entered a supply agreement.
Dubai's benchmark index was little changed as gains in real estate, communications and industry offset losses in utilities, consumer discretionary and finance stocks. The blue-chip developer Emaar Properties advanced 2.3%, while National Central Cooling and Emirates NBD , the emirate's largest lender, dropped 5.4% and 0.9%, respectively.
Outside the Gulf, Egypt's blue-chip index was down 0.3% after two straight sessions of gains with Eastern Company dropping 4.8% and El Sewedy Electric falling 2.9%.
Saudi Arabia's benchmark stock index dropped 0.6% with most of its constituents posting losses, led by IT, real estate and finance stocks. Saudi National Bank, the kingdom's largest lender, slipped 2% and Saudi Basic Industries, one of the world's biggest petrochemical companies, declined 2.3%.
The Qatari benchmark index eased 0.3%, pressured by a 1.2% drop in Qatar National Bank, the region's largest lender and a 0.5% loss in Industries Qatar. Meanwhile, Qatar recorded a budget surplus of 2 billion riyals ($548.9 million) in the first quarter of 2024, down from 19.7 billion riyals a year earlier, the finance ministry said on Sunday.
In Abu Dhabi, the benchmark index fell marginally with conglomerate International Holding Company shedding 0.4%, while emirate's largest developer, Aldar Properties climbed 3.5%.
Among other gainers, ADNOC Distribution and ADNOC Logistics rose 1.7% and 3.8%, respectively, after their parent company, oil major Abu Dhabi National Oil Company (ADNOC) said it had acquired an 11.7% stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas and entered a supply agreement.
Dubai's benchmark index was little changed as gains in real estate, communications and industry offset losses in utilities, consumer discretionary and finance stocks. The blue-chip developer Emaar Properties advanced 2.3%, while National Central Cooling and Emirates NBD , the emirate's largest lender, dropped 5.4% and 0.9%, respectively.
Outside the Gulf, Egypt's blue-chip index was down 0.3% after two straight sessions of gains with Eastern Company dropping 4.8% and El Sewedy Electric falling 2.9%.
#AbuDhabi Reports 211% Surge in AUM on Influx of Money Managers - Bloomberg
Abu Dhabi Reports 211% Surge in AUM on Influx of Money Managers - Bloomberg
Abu Dhabi reported a surge in assets under management within its financial center as money managers rushed to the emirate, bolstering its image as an influential financial hub.
Total assets under management rose 211% during the first quarter from the same three-month period the year before, according to Abu Dhabi Global Market.
As many as 107 asset and fund managers including new entrants Rajiv Jain’s GQG Partners and fund administrator giant SS&C Technologies Holdings now operate from the emirate. An additional 52 entities are looking to join the fray.
Abu Dhabi is aggressively tapping into a broader shift in wealth to the capital of the United Arab Emirates, which is home to the world’s richest family and boasts sovereign wealth funds that manage more than $1 trillion. Hedge fund billionaire Ray Dalio, Czech tycoon Radovan Vitek, Egyptian magnate Nassef Sawiris and the richest man in crypto Changpeng “CZ” Zhao are among the high net worth individuals who have set up firms in the city.
Brevan Howard Asset Management, for instance, now manages more money from Abu Dhabi than it does anywhere else on the planet.
Others in the region are also trying to lure financial giants, banking on the trillions of dollars in capital that the Gulf sovereign wealth funds have, as well as the lack of income tax and a favorable time zone. Izzy Englander’s Millennium Management set up in Dubai recently and now has a staff of more than 70, while Balyasny Asset Management aims to double its 12-person workforce in the emirate.
Abu Dhabi also reported a 30% increase in operational entities to 1,950 during the first quarter, taking the headcount to 25,000. Several new firms including Vizier Asset Management Co., I Squared Capital Ltd. and Blantyre Capital have been granted in-principle approval by ADGM.
“This year holds the promise of even greater growth for ADGM and its ecosystem,” Chairman Ahmed Jasim Al Zaabi said in the statement.
Abu Dhabi reported a surge in assets under management within its financial center as money managers rushed to the emirate, bolstering its image as an influential financial hub.
Total assets under management rose 211% during the first quarter from the same three-month period the year before, according to Abu Dhabi Global Market.
As many as 107 asset and fund managers including new entrants Rajiv Jain’s GQG Partners and fund administrator giant SS&C Technologies Holdings now operate from the emirate. An additional 52 entities are looking to join the fray.
Abu Dhabi is aggressively tapping into a broader shift in wealth to the capital of the United Arab Emirates, which is home to the world’s richest family and boasts sovereign wealth funds that manage more than $1 trillion. Hedge fund billionaire Ray Dalio, Czech tycoon Radovan Vitek, Egyptian magnate Nassef Sawiris and the richest man in crypto Changpeng “CZ” Zhao are among the high net worth individuals who have set up firms in the city.
Brevan Howard Asset Management, for instance, now manages more money from Abu Dhabi than it does anywhere else on the planet.
Others in the region are also trying to lure financial giants, banking on the trillions of dollars in capital that the Gulf sovereign wealth funds have, as well as the lack of income tax and a favorable time zone. Izzy Englander’s Millennium Management set up in Dubai recently and now has a staff of more than 70, while Balyasny Asset Management aims to double its 12-person workforce in the emirate.
Abu Dhabi also reported a 30% increase in operational entities to 1,950 during the first quarter, taking the headcount to 25,000. Several new firms including Vizier Asset Management Co., I Squared Capital Ltd. and Blantyre Capital have been granted in-principle approval by ADGM.
“This year holds the promise of even greater growth for ADGM and its ecosystem,” Chairman Ahmed Jasim Al Zaabi said in the statement.
Saudia Group agrees deal with Airbus for 105 aircraft | Reuters
Saudia Group agrees deal with Airbus for 105 aircraft | Reuters
Saudia Group, owner of the Saudia airline and budget carrier flyadeal, has signed a deal with Airbus (AIR.PA), opens new tab for 105 confirmed aircraft, a senior executive announced in Riyadh on Monday.
The first planes are due for delivery in the first quarter of 2026, Ibrahim Alomar, director general of Saudia Group told the Future Aviation Forum in the Saudi capital.
The deal is the largest in Saudi aviation history, he said, without specifying the value of the agreement, which is expected to be billions of dollars.
Saudia Group, owner of the Saudia airline and budget carrier flyadeal, has signed a deal with Airbus (AIR.PA), opens new tab for 105 confirmed aircraft, a senior executive announced in Riyadh on Monday.
The first planes are due for delivery in the first quarter of 2026, Ibrahim Alomar, director general of Saudia Group told the Future Aviation Forum in the Saudi capital.
The deal is the largest in Saudi aviation history, he said, without specifying the value of the agreement, which is expected to be billions of dollars.
Most Gulf bourses muted in early trade | Reuters
Most Gulf bourses muted in early trade | Reuters
Gulf stock markets were mostly subdued in early trading on Monday amid political uncertainty in the region after Iran's president died in a helicopter crash and Saudi Arabia's crown prince canceled a trip to Japan, citing issues with the king's health.
Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.6% with most of its constituents posting losses, led by IT, finance and healthcare stocks.
ACWA Power (2082.SE), opens new tab slid 1.1%, and Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, dropped 1.7%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with conglomerate International Holding (IHC.AD), opens new tab shedding 0.3% and Abu Dhabi Ports (ADPORTS.AD), opens new tab sliding 1.3%.
The Qatari benchmark index (.QSI), opens new tab fell 0.1%, pressured by a 1.1% drop in United Development Co (UDCD.QA), opens new tab and a 0.6% loss in Industries Qatar (IQCD.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1%, lifted by gains in communications, real estate and industry sectors with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.1%, and Dubai Islamic Bank (DISB.DU), opens new tab adding 1.4%.
Emirates NBD(ENBD.DU), opens new tab, the emirate's largest lender, however lost 0.6%.
Gulf stock markets were mostly subdued in early trading on Monday amid political uncertainty in the region after Iran's president died in a helicopter crash and Saudi Arabia's crown prince canceled a trip to Japan, citing issues with the king's health.
Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.6% with most of its constituents posting losses, led by IT, finance and healthcare stocks.
ACWA Power (2082.SE), opens new tab slid 1.1%, and Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, dropped 1.7%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.1% with conglomerate International Holding (IHC.AD), opens new tab shedding 0.3% and Abu Dhabi Ports (ADPORTS.AD), opens new tab sliding 1.3%.
The Qatari benchmark index (.QSI), opens new tab fell 0.1%, pressured by a 1.1% drop in United Development Co (UDCD.QA), opens new tab and a 0.6% loss in Industries Qatar (IQCD.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1%, lifted by gains in communications, real estate and industry sectors with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.1%, and Dubai Islamic Bank (DISB.DU), opens new tab adding 1.4%.
Emirates NBD(ENBD.DU), opens new tab, the emirate's largest lender, however lost 0.6%.
Sunday 19 May 2024
Most Gulf markets rise while #Saudi bourse holds steady | Reuters
Most Gulf markets rise while Saudi bourse holds steady | Reuters
Most Gulf stock markets rose on Sunday against a backdrop of rising oil prices on improving economic indicators from China and the United States.
Oil prices, a catalyst for the Gulf's financial markets, rose, opens new tab about 1% on Friday as stronger Chinese data added to recent U.S. indicators feeding optimism over global oil demand.
The Qatari benchmark index (.QSI), opens new tab was up 0.1%, supported by gains in most sectors, with Qatar Gas Transport (QGTS.QA), opens new tab rising 1.2% and Qatar Navigation (QNNC.QA), opens new tab up 2.2%.
Meanwhile, the International Monetary Fund said on Friday that Qatar's average economic growth was expected to be lifted to about 4.5% by a significant expansion of liquefied natural gas (LNG) production.
Saudi Arabia's benchmark index (.TASI), opens new tab was little changed, with ACWA Power (2082.SE), opens new tab rising 3.4% and Saudi Aramco (2222.SE), opens new tab up 0.5%. State-owned oil giant Aramco said on Friday that it had signed preliminary agreements with U.S. companies for developing lower-carbon energy solutions.
However, Saudi National Bank (1180.SE), opens new tab and developer Makkah Construction (4100.SE), opens new tab slipped by 1.5% and 8% respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced for a second straight session to end 4.5% higher, with most of its constituents posting gains, led by industry and materials stocks.
Misr Fertilizers Production (MFPC.CA), opens new tab climbed 17.8% and El Sewedy Electric (SWDY.CA), opens new tab jumped by 20% after Egypt’s Financial Regulatory Authority (FRA) said on Sunday that Electra Investment Holding had submitted an offer to acquire up to a 24.5% stake in El Sewedy at $1.05 per share.
Most Gulf stock markets rose on Sunday against a backdrop of rising oil prices on improving economic indicators from China and the United States.
Oil prices, a catalyst for the Gulf's financial markets, rose, opens new tab about 1% on Friday as stronger Chinese data added to recent U.S. indicators feeding optimism over global oil demand.
The Qatari benchmark index (.QSI), opens new tab was up 0.1%, supported by gains in most sectors, with Qatar Gas Transport (QGTS.QA), opens new tab rising 1.2% and Qatar Navigation (QNNC.QA), opens new tab up 2.2%.
Meanwhile, the International Monetary Fund said on Friday that Qatar's average economic growth was expected to be lifted to about 4.5% by a significant expansion of liquefied natural gas (LNG) production.
Saudi Arabia's benchmark index (.TASI), opens new tab was little changed, with ACWA Power (2082.SE), opens new tab rising 3.4% and Saudi Aramco (2222.SE), opens new tab up 0.5%. State-owned oil giant Aramco said on Friday that it had signed preliminary agreements with U.S. companies for developing lower-carbon energy solutions.
However, Saudi National Bank (1180.SE), opens new tab and developer Makkah Construction (4100.SE), opens new tab slipped by 1.5% and 8% respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced for a second straight session to end 4.5% higher, with most of its constituents posting gains, led by industry and materials stocks.
Misr Fertilizers Production (MFPC.CA), opens new tab climbed 17.8% and El Sewedy Electric (SWDY.CA), opens new tab jumped by 20% after Egypt’s Financial Regulatory Authority (FRA) said on Sunday that Electra Investment Holding had submitted an offer to acquire up to a 24.5% stake in El Sewedy at $1.05 per share.
Mubadala Unit Mamoura Took $315 Million Credit Hit on Loans to Signa - Bloomberg
Mubadala Unit Mamoura Took $315 Million Credit Hit on Loans to Signa - Bloomberg
A unit of Abu Dhabi’s Mubadala Investment Co. said it anticipated a roughly $315 million credit hit related to loans issued to the now-insolvent Signa real estate conglomerate.
The writedowns were disclosed by Mamoura Diversified Global Holding, which issues debt on behalf of the wealth fund. The publication offers fresh insight into the size of Mubadala’s investments with the Austrian group, which filed for insolvency at the end of last year.
For its total loan investments in Signa Prime and Signa Development, Mamoura recognized expected credit losses of 1.16 billion dirhams ($315 million), according to an annual report published Friday.
Mubadala earlier filed claims for €713 million from Signa and its founder Rene Benko at the International Chamber of Commerce.
Signa is among the most prominent victims of recent turmoil on real estate markets. It owned stakes in high-profile property such as New York’s Chrysler Building and the Selfridges department store in London.
Other investors have also been forced to write-down their Signa investments. The billionaire Peugeot family, which held shares in both Signa Prime and Signa Development, reported net losses of €272 million on its holdings.
A unit of Abu Dhabi’s Mubadala Investment Co. said it anticipated a roughly $315 million credit hit related to loans issued to the now-insolvent Signa real estate conglomerate.
The writedowns were disclosed by Mamoura Diversified Global Holding, which issues debt on behalf of the wealth fund. The publication offers fresh insight into the size of Mubadala’s investments with the Austrian group, which filed for insolvency at the end of last year.
For its total loan investments in Signa Prime and Signa Development, Mamoura recognized expected credit losses of 1.16 billion dirhams ($315 million), according to an annual report published Friday.
Mubadala earlier filed claims for €713 million from Signa and its founder Rene Benko at the International Chamber of Commerce.
Signa is among the most prominent victims of recent turmoil on real estate markets. It owned stakes in high-profile property such as New York’s Chrysler Building and the Selfridges department store in London.
Other investors have also been forced to write-down their Signa investments. The billionaire Peugeot family, which held shares in both Signa Prime and Signa Development, reported net losses of €272 million on its holdings.
Genting Chairman Says Open to Casino Resort Development in #UAE - Bloomberg
Genting Chairman Says Open to Casino Resort Development in UAE - Bloomberg
Genting Group Chairman Lim Kok Thay said the conglomerate is open to pursuing the development of integrated casino resorts in the United Arab Emirates, which is looking into legalizing gambling.
An international tender for a casino-only development in the Middle East region is unlikely, Lim told shareholders at a Genting Singapore Ltd. annual meeting on April 18. Minutes of the meeting were published in a stock exchange filing on Friday.
“The Company would be happy to work on an IR development in the Middle East, leveraging the Company’s experience in non-gaming offerings,” the minutes cited Lim as saying in response to a question about expansion strategy into markets such as Thailand and the UAE. In the minutes, “Company” is defined as Genting Singapore.
Genting’s possible interest comes after the UAE established a federal body last year to regulate the gaming industry. The introduction of casinos would be a step change for the UAE where Islamic, or Shariah law, is the main basis for legislation. Gambling is prohibited under Islam and is illegal in the country, where offenders can be fined or sentenced to two years in prison, or both.
The emirates of Abu Dhabi and Ras Al Khaimah had emerged as frontrunners in introducing casinos ahead of their neighbor Dubai, after the glitzier city-state put immediate plans to allow gambling on hold, Bloomberg reported in November, citing people familiar with the matter.
Sites under consideration for Abu Dhabi included Yas Island — home to the Yas Marina Formula One Circuit and Ferrari World and Warner Bros. theme parks — and a plot near the city’s port among sites under consideration, the people said then.
In Ras Al Khaimah, Las Vegas-based Wynn Resorts Ltd. started work last year on $3.9 billion integrated resort that’s due to open in 2027. While Wynn has said the project will include “gaming,” the government of Ras Al Khaimah didn’t clarify then what such gaming areas referred to.
The UAE’s casino market could surpass that of Singapore in terms of revenue, according to a May 14 report by Bloomberg Intelligence analysts Angela HanLee and Lea El-Hage.
Genting Group Chairman Lim Kok Thay said the conglomerate is open to pursuing the development of integrated casino resorts in the United Arab Emirates, which is looking into legalizing gambling.
An international tender for a casino-only development in the Middle East region is unlikely, Lim told shareholders at a Genting Singapore Ltd. annual meeting on April 18. Minutes of the meeting were published in a stock exchange filing on Friday.
“The Company would be happy to work on an IR development in the Middle East, leveraging the Company’s experience in non-gaming offerings,” the minutes cited Lim as saying in response to a question about expansion strategy into markets such as Thailand and the UAE. In the minutes, “Company” is defined as Genting Singapore.
Genting’s possible interest comes after the UAE established a federal body last year to regulate the gaming industry. The introduction of casinos would be a step change for the UAE where Islamic, or Shariah law, is the main basis for legislation. Gambling is prohibited under Islam and is illegal in the country, where offenders can be fined or sentenced to two years in prison, or both.
The emirates of Abu Dhabi and Ras Al Khaimah had emerged as frontrunners in introducing casinos ahead of their neighbor Dubai, after the glitzier city-state put immediate plans to allow gambling on hold, Bloomberg reported in November, citing people familiar with the matter.
Sites under consideration for Abu Dhabi included Yas Island — home to the Yas Marina Formula One Circuit and Ferrari World and Warner Bros. theme parks — and a plot near the city’s port among sites under consideration, the people said then.
In Ras Al Khaimah, Las Vegas-based Wynn Resorts Ltd. started work last year on $3.9 billion integrated resort that’s due to open in 2027. While Wynn has said the project will include “gaming,” the government of Ras Al Khaimah didn’t clarify then what such gaming areas referred to.
The UAE’s casino market could surpass that of Singapore in terms of revenue, according to a May 14 report by Bloomberg Intelligence analysts Angela HanLee and Lea El-Hage.
Saturday 18 May 2024
Mideast Stocks: #UAE stock markets mixed amid uncertainty over Fed policy
Mideast Stocks: UAE stock markets mixed amid uncertainty over Fed policy
Stock markets in the United Arab Emirates were mixed on Friday amid uncertainty over the U.S. Federal Reserve's monetary policy. Data on Wednesday showed cooling U.S. consumer price inflation, prompting markets to price in at least two interest rate cuts this year. However, the optimism soon fizzled out as a latest report showed the U.S. labour market remains tight, while central bankers remain cautious about inflation.
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. In Dubai, the main share index fell 0.4%, extending declines to a fourth session in a row, mostly dragged down by property and utility stocks. Blue-chip developer Emaar Properties dropped 1.4%, while Emirates Central Cooling Systems was down 2.6%.
Dubai stock market continued its negative trajectory and could remain exposed to some downside risks although it could stabilise after a series of price corrections, George Khoury global head of research at CFI, said. Abu Dhabi's benchmark index closed flat, with the emirate's largest lender First Abu Dhabi Bank easing 0.5%. Conglomerate International Holding Co was up 0.4%.
Both Dubai and Abu Dhabi indexes posted weekly losses of 2.5% and 0.5%, respectively.
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. In Dubai, the main share index fell 0.4%, extending declines to a fourth session in a row, mostly dragged down by property and utility stocks. Blue-chip developer Emaar Properties dropped 1.4%, while Emirates Central Cooling Systems was down 2.6%.
Dubai stock market continued its negative trajectory and could remain exposed to some downside risks although it could stabilise after a series of price corrections, George Khoury global head of research at CFI, said. Abu Dhabi's benchmark index closed flat, with the emirate's largest lender First Abu Dhabi Bank easing 0.5%. Conglomerate International Holding Co was up 0.4%.
Both Dubai and Abu Dhabi indexes posted weekly losses of 2.5% and 0.5%, respectively.
Friday 17 May 2024
#AbuDhabi fund Mubadala's asset under management rise to $302 bln | Reuters
Abu Dhabi fund Mubadala's asset under management rise to $302 bln | Reuters
Abu Dhabi sovereign wealth fund Mubadala's assets under management rose 9.5% last year to 1.11 trillion dirhams ($302.2 billion), it reported on Friday.
Mubadala Investment Company is the second-biggest state fund in Abu Dhabi, the capital of the United Arab Emirates (UAE), behind Abu Dhabi Investment Authority (ADIA).
"Mubadala built on its role as a global investor through opportunistic capital deployment in North America, Asia and Europe in sectors key to regional growth," the state fund said in a statement.
"Investments to accelerate the transformation of the UAE economy through AI-enabled innovation in sectors such as healthcare and space technology remained central to Mubadala’s strategy."
The wealth fund also reported proceeds of 99 billion dirhams last year, about 6.6% lower year on year, which it said included "divestments of certain legacy assets and capital recycling into priority investment areas". The company reported proceeds of 106 billion dirhams in 2022.
It deployed 89 billion dirhams in sectors including technology, digital infrastructure, life sciences, renewable energy and private credit.
Its portfolio mix remained broadly similar year on year, Mubadala said, with 38% direct and indirect in private equity, 25% in public markets and 16% in real estate and infrastructure.
Abu Dhabi sovereign wealth fund Mubadala's assets under management rose 9.5% last year to 1.11 trillion dirhams ($302.2 billion), it reported on Friday.
Mubadala Investment Company is the second-biggest state fund in Abu Dhabi, the capital of the United Arab Emirates (UAE), behind Abu Dhabi Investment Authority (ADIA).
"Mubadala built on its role as a global investor through opportunistic capital deployment in North America, Asia and Europe in sectors key to regional growth," the state fund said in a statement.
"Investments to accelerate the transformation of the UAE economy through AI-enabled innovation in sectors such as healthcare and space technology remained central to Mubadala’s strategy."
The wealth fund also reported proceeds of 99 billion dirhams last year, about 6.6% lower year on year, which it said included "divestments of certain legacy assets and capital recycling into priority investment areas". The company reported proceeds of 106 billion dirhams in 2022.
It deployed 89 billion dirhams in sectors including technology, digital infrastructure, life sciences, renewable energy and private credit.
Its portfolio mix remained broadly similar year on year, Mubadala said, with 38% direct and indirect in private equity, 25% in public markets and 16% in real estate and infrastructure.
Moody's affirms #Kuwait's rating at 'A1' on strong fiscal buffers
Moody's affirms Kuwait's rating at 'A1' on strong fiscal buffers
Ratings agency Moody's has affirmed Kuwait's credit rating at "A1" with a stable outlook on strong balance sheet and fiscal buffers.
The rating affirmation reflects Kuwait's macroeconomic and external stability. However, the lack of progress in reforms would reduce the vulnerability of the economy and government finances to oil market volatility and long-term carbon transition risks.
The rating agency confirmed that progress in economic and fiscal diversification away from hydrocarbons is not currently factored into its baseline assumptions, which may reduce Kuwait's exposure to oil price fluctuations and long-term carbon transition.
The recent dissolution of parliament and temporary suspension of related constitutional articles aimed at overcoming institutional constraints has the potential to accelerate reforms, Moody's said.
By contrast, increasing global momentum towards carbon transition that significantly lowers the demand for and price of oil would likely weigh on Kuwait's credit metrics and weaken the credit profile without fiscal and economic reforms.
Ratings agency Moody's has affirmed Kuwait's credit rating at "A1" with a stable outlook on strong balance sheet and fiscal buffers.
The rating affirmation reflects Kuwait's macroeconomic and external stability. However, the lack of progress in reforms would reduce the vulnerability of the economy and government finances to oil market volatility and long-term carbon transition risks.
The rating agency confirmed that progress in economic and fiscal diversification away from hydrocarbons is not currently factored into its baseline assumptions, which may reduce Kuwait's exposure to oil price fluctuations and long-term carbon transition.
The recent dissolution of parliament and temporary suspension of related constitutional articles aimed at overcoming institutional constraints has the potential to accelerate reforms, Moody's said.
By contrast, increasing global momentum towards carbon transition that significantly lowers the demand for and price of oil would likely weigh on Kuwait's credit metrics and weaken the credit profile without fiscal and economic reforms.
Thursday 16 May 2024
#Saudi aluminium producer Talco to list 30% on local stock exchange
Saudi aluminium producer Talco to list 30% on local stock exchange
Saudi Arabia aluminium producer Al Taiseer Group Talco Industrial Company (Talco) has announced plans to list 30% stake, or 12 million shares, on the local stock exchange (Tadawul) at a nominal value of SAR 10 ($2.67).
The IPO price will be determined after the book-building period, which will run from May 20 to 23, 2024.
The retail tranche will take place from May 28 to 29.
The Capital Market Authority, the market regulator, approved the company’s IPO in December 2023.
Saudi Arabia aluminium producer Al Taiseer Group Talco Industrial Company (Talco) has announced plans to list 30% stake, or 12 million shares, on the local stock exchange (Tadawul) at a nominal value of SAR 10 ($2.67).
The IPO price will be determined after the book-building period, which will run from May 20 to 23, 2024.
The retail tranche will take place from May 28 to 29.
The Capital Market Authority, the market regulator, approved the company’s IPO in December 2023.
Mideast Stocks: Most Gulf markets rise on US rate cut optimism; #Dubai slips
Mideast Stocks: Most Gulf markets rise on US rate cut optimism; Dubai slips
Most stock markets in the Gulf ended higher on Thursday, amid rising hopes for interest rate cuts by the U.S. Federal Reserve, while the Dubai index fell for a third straight session. Milder-than-expected U.S. Consumer Price Index data for April fueled optimism that inflation was easing, prompting investors to raise bets that the Fed will cut its policy rate in September and December.
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.
Saudi Arabia's benchmark stock index bounced back after two straight sessions of losses and advanced 0.8%, with ACWA Power rising 6.2% and Saudi National Bank, the kingdom's largest lender, adding 1.7%. Among other gainers, MBC Group climbed 4.7% after the Middle East's largest private media firm reported a quarterly profit.
The Qatari benchmark index was up 0.8%, lifted by gains in most sectors with Qatar Navigation rising 4% and Qatar National Bank, the region's largest lender, climbing 1.5%.
In Abu Dhabi, the benchmark index rose 0.2%, supported by a 2.2% gain in conglomerate Alpha Dhabi and a 1.7% increase in Abu Dhabi Islamic Bank . Among other gainers, Agility Global surged 7% after the multi-business operator and investor reported a more than 300% surge in its first-quarter net profit.
Dubai's benchmark index fell 0.2% to 4,086, its lowest level in nearly four months, pressured by losses in real estate and industry stocks. The low-cost flyer Air Arabia slipped 1.6%, and the blue-chip developer Emaar Properties and its unit Emaar Development dropped 2.7% and 2.2% respectively.
Outside the Gulf, Egypt's blue-chip index was up 3.3%, with all constituents posting gains, led by materials, industry, and healthcare sectors. El Sewedy Electric jumped 8.9% and E-Finance for Digital surged 9.6% after the state-controlled payments firm posted a 64% increase in its first-quarter net profit. Meanwhile, Egypt received $14 billion from the United Arab Emirates on Wednesday as a second payment for the development of the Ras al-Hikma peninsula, a cabinet statement said.
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.
Saudi Arabia's benchmark stock index bounced back after two straight sessions of losses and advanced 0.8%, with ACWA Power rising 6.2% and Saudi National Bank, the kingdom's largest lender, adding 1.7%. Among other gainers, MBC Group climbed 4.7% after the Middle East's largest private media firm reported a quarterly profit.
The Qatari benchmark index was up 0.8%, lifted by gains in most sectors with Qatar Navigation rising 4% and Qatar National Bank, the region's largest lender, climbing 1.5%.
In Abu Dhabi, the benchmark index rose 0.2%, supported by a 2.2% gain in conglomerate Alpha Dhabi and a 1.7% increase in Abu Dhabi Islamic Bank . Among other gainers, Agility Global surged 7% after the multi-business operator and investor reported a more than 300% surge in its first-quarter net profit.
Dubai's benchmark index fell 0.2% to 4,086, its lowest level in nearly four months, pressured by losses in real estate and industry stocks. The low-cost flyer Air Arabia slipped 1.6%, and the blue-chip developer Emaar Properties and its unit Emaar Development dropped 2.7% and 2.2% respectively.
Outside the Gulf, Egypt's blue-chip index was up 3.3%, with all constituents posting gains, led by materials, industry, and healthcare sectors. El Sewedy Electric jumped 8.9% and E-Finance for Digital surged 9.6% after the state-controlled payments firm posted a 64% increase in its first-quarter net profit. Meanwhile, Egypt received $14 billion from the United Arab Emirates on Wednesday as a second payment for the development of the Ras al-Hikma peninsula, a cabinet statement said.
#Saudi Wealth Fund PIF Slashes Reported Holdings of US Stocks, 13F Shows - Bloomberg
Saudi Wealth Fund PIF Slashes Reported Holdings of US Stocks, 13F Shows - Bloomberg
Saudi Arabia’s sovereign wealth fund slashed the number of US stocks it reported owning at the end of the first quarter, roughly halving its direct holdings in those equities.
The Riyadh-based Public Investment Fund held US-traded stocks with a market value of about $18 billion as of March 31, down from $35 billion at year-end, according to an analysis of a Form 13F filed Wednesday with the US Securities and Exchange Commission.
The report shows the Saudi fund no longer holds numerous tech stocks, including stakes of $600 million or more in each of Amazon.com Inc., Microsoft Corp. and Salesforce Inc. The wealth fund replaced its direct holdings in these and other tech stocks with call options on a lesser number of shares, a move that allows it to maintain some exposure to the companies with less capital at risk.
The Saudi report also dropped entire stakes in US financial and travel companies that it held at year-end. These included a $602 million stake in BlackRock Inc., a $942 million investment in Carnival Corp. and a $757 million position in Booking Holdings Inc.
The PIF is funded through a mixture of borrowing, cash and asset transfers from the government, along with retained earnings from its investments. Institutional investors such as sovereign wealth funds that oversee $100 million or more of equities traded on a US exchange are required to disclose their holdings at the end of each quarter through a Form 13F.
Saudi Arabia’s sovereign wealth fund slashed the number of US stocks it reported owning at the end of the first quarter, roughly halving its direct holdings in those equities.
The Riyadh-based Public Investment Fund held US-traded stocks with a market value of about $18 billion as of March 31, down from $35 billion at year-end, according to an analysis of a Form 13F filed Wednesday with the US Securities and Exchange Commission.
The report shows the Saudi fund no longer holds numerous tech stocks, including stakes of $600 million or more in each of Amazon.com Inc., Microsoft Corp. and Salesforce Inc. The wealth fund replaced its direct holdings in these and other tech stocks with call options on a lesser number of shares, a move that allows it to maintain some exposure to the companies with less capital at risk.
The Saudi report also dropped entire stakes in US financial and travel companies that it held at year-end. These included a $602 million stake in BlackRock Inc., a $942 million investment in Carnival Corp. and a $757 million position in Booking Holdings Inc.
The PIF is funded through a mixture of borrowing, cash and asset transfers from the government, along with retained earnings from its investments. Institutional investors such as sovereign wealth funds that oversee $100 million or more of equities traded on a US exchange are required to disclose their holdings at the end of each quarter through a Form 13F.
#AbuDhabi's Lunate launches ETF tracking Japan equities | Reuters
Abu Dhabi's Lunate launches ETF tracking Japan equities | Reuters
Abu Dhabi investor Lunate Capital is launching an exchange-traded fund (ETF) tracking Japanese equities that will be listed on the Abu Dhabi securities exchange (ADX), the firm said in a statement on Thursday.
Lunate said the Chimera S&P Japan UCITS ETF, its third ETF so far this year, will list on May 29 and give investors access to the top 30 most liquid Japanese stocks listed on the Tokyo Stock Exchange including Toyota (7203.T), opens new tab and Sony (6758.T), opens new tab.
Lunate, which manages $105 billion of assets, is part of a business empire steered by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates' (UAE) national security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.
The firm's investments, which include the acquisition announced last month of a 40% stake in the entity that leases ADNOC's oil pipelines, shed a light on how Abu Dhabi is creating a new national champion in alternative investments.
Abu Dhabi investor Lunate Capital is launching an exchange-traded fund (ETF) tracking Japanese equities that will be listed on the Abu Dhabi securities exchange (ADX), the firm said in a statement on Thursday.
Lunate said the Chimera S&P Japan UCITS ETF, its third ETF so far this year, will list on May 29 and give investors access to the top 30 most liquid Japanese stocks listed on the Tokyo Stock Exchange including Toyota (7203.T), opens new tab and Sony (6758.T), opens new tab.
Lunate, which manages $105 billion of assets, is part of a business empire steered by Sheikh Tahnoun bin Zayed Al Nahyan, the United Arab Emirates' (UAE) national security adviser and brother of UAE President Sheikh Mohammed bin Zayed Al Nahyan.
The firm's investments, which include the acquisition announced last month of a 40% stake in the entity that leases ADNOC's oil pipelines, shed a light on how Abu Dhabi is creating a new national champion in alternative investments.
Gulf markets join global rally as US rate cut hopes rise | Reuters
Gulf markets join global rally as US rate cut hopes rise | Reuters
Most stock markets in the Gulf tracked global equities higher in early trading on Thursday, after a smaller-than-expected rise in U.S inflation bolstered investors' hopes for interest rate cuts by the Federal Reserve.
Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.4% with most of its constituents posting gains, led by utilities, communication and industry stocks.
ACWA Power (2082.SE), opens new tab was up 2.3%, and MBC Group climbed 4% after the Middle East's largest private media firm reported a quarterly profit.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.2%, lifted by gains in consumer staples, utilities and finance sectors with Mashreqbank (MASB.DU), opens new tab rising 2.1%, and Emirates Central Cooling (EMPOWER.DU), opens new tab adding 1.4%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was up 0.1% with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab gaining 2.2% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbing 3.7%.
The Qatari benchmark index (.QSI), opens new tab rose 0.3%, helped by a 6.1% gain in United Development Co (UDCD.QA), opens new tab and a 1.8% rise in Barwa Real Estate Co (BRES.QA), opens new tab.
Milder-than-expected U.S. Consumer Price Index data for April fuelled optimism that inflation was easing, prompting investors to raise bets that the Fed will cut its policy rate in September and December.
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.
Most stock markets in the Gulf tracked global equities higher in early trading on Thursday, after a smaller-than-expected rise in U.S inflation bolstered investors' hopes for interest rate cuts by the Federal Reserve.
Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.4% with most of its constituents posting gains, led by utilities, communication and industry stocks.
ACWA Power (2082.SE), opens new tab was up 2.3%, and MBC Group climbed 4% after the Middle East's largest private media firm reported a quarterly profit.
Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.2%, lifted by gains in consumer staples, utilities and finance sectors with Mashreqbank (MASB.DU), opens new tab rising 2.1%, and Emirates Central Cooling (EMPOWER.DU), opens new tab adding 1.4%.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was up 0.1% with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab gaining 2.2% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab climbing 3.7%.
The Qatari benchmark index (.QSI), opens new tab rose 0.3%, helped by a 6.1% gain in United Development Co (UDCD.QA), opens new tab and a 1.8% rise in Barwa Real Estate Co (BRES.QA), opens new tab.
Milder-than-expected U.S. Consumer Price Index data for April fuelled optimism that inflation was easing, prompting investors to raise bets that the Fed will cut its policy rate in September and December.
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.
Wednesday 15 May 2024
#SaudiArabia’s Hassana Backs TPG Climate Funds with $1.5 Billion - Bloomberg
Saudi Arabia’s Hassana Backs TPG Climate Funds with $1.5 Billion - Bloomberg
Saudi Arabia’s main pension fund is set to back TPG’s climate vehicle under a $1.5 billion partnership, marking the latest instance of an oil-rich Gulf state supporting efforts aimed at reducing carbon emissions.
Hassana Investment Co., which manages over $320 billion for Saudi Arabia’s General Organisation for Social Insurance, is set to make “a substantial anchor commitment” to TPG Rise Climate’s new Transition Infrastructure fund, according to a joint statement Wednesday. The remainder of Hassana’s commitment will be allocated to the TPG Rise Climate II fund.
Hassana has become an increasingly prominent global investor since Saudi Arabia merged two of its pension and insurance funds in 2021. It signed a memorandum of understanding with BlackRock in 2022 to promote and develop an infrastructure strategy.
“Large and sophisticated investors like Hassana are essential to meeting the growing capital demands of the new climate economy,” said Jim Coulter, TPG Founding Partner and Managing Partner of TPG Rise Climate.
TPG Rise Climate is the dedicated climate investing strategy of the US firm’s $19 billion global impact investing platform, TPG Rise. The Hassana deal comes months after the United Arab Emirates announced a plan to put $30 billion into a new climate fund to back projects to reduce emissions.
Saudi Arabia’s main pension fund is set to back TPG’s climate vehicle under a $1.5 billion partnership, marking the latest instance of an oil-rich Gulf state supporting efforts aimed at reducing carbon emissions.
Hassana Investment Co., which manages over $320 billion for Saudi Arabia’s General Organisation for Social Insurance, is set to make “a substantial anchor commitment” to TPG Rise Climate’s new Transition Infrastructure fund, according to a joint statement Wednesday. The remainder of Hassana’s commitment will be allocated to the TPG Rise Climate II fund.
Hassana has become an increasingly prominent global investor since Saudi Arabia merged two of its pension and insurance funds in 2021. It signed a memorandum of understanding with BlackRock in 2022 to promote and develop an infrastructure strategy.
“Large and sophisticated investors like Hassana are essential to meeting the growing capital demands of the new climate economy,” said Jim Coulter, TPG Founding Partner and Managing Partner of TPG Rise Climate.
TPG Rise Climate is the dedicated climate investing strategy of the US firm’s $19 billion global impact investing platform, TPG Rise. The Hassana deal comes months after the United Arab Emirates announced a plan to put $30 billion into a new climate fund to back projects to reduce emissions.
Egypt Gets $14 Billion Boost From #UAE as Landmark Deal Pays Out - Bloomberg
Egypt Gets $14 Billion Boost From UAE as Landmark Deal Pays Out - Bloomberg
Egypt received a further $14 billion from its landmark investment deal with the United Arab Emirates, providing another surge of dollar liquidity about two months after a currency flotation.
The transfer, announced Wednesday by Egypt’s cabinet, was the second tranche of the $35 billion pact signed in February that was billed as the North African nation’s biggest-ever inward investment.
The UAE deal marked a turnaround in fortunes for the most populous Middle Eastern nation after a grinding two-year economic crisis and a chronic foreign-exchange shortage. It allowed authorities to oversee a long-awaited devaluation of the currency that in turn unlocked more financing from the International Monetary Fund, European Union and others — taking the total secured by Egypt to $57 billion.
Egypt received initial transfers of $15 billion within two weeks of inking the UAE deal, with a third of that sum coming from existing Emirati deposits in the Egyptian central bank.
Authorities have begun procedures to exchange another UAE deposit of $6 billion into Egyptian pounds, Prime Minister Mostafa Madbouly said Wednesday.
Egypt received a further $14 billion from its landmark investment deal with the United Arab Emirates, providing another surge of dollar liquidity about two months after a currency flotation.
The transfer, announced Wednesday by Egypt’s cabinet, was the second tranche of the $35 billion pact signed in February that was billed as the North African nation’s biggest-ever inward investment.
The UAE deal marked a turnaround in fortunes for the most populous Middle Eastern nation after a grinding two-year economic crisis and a chronic foreign-exchange shortage. It allowed authorities to oversee a long-awaited devaluation of the currency that in turn unlocked more financing from the International Monetary Fund, European Union and others — taking the total secured by Egypt to $57 billion.
Egypt received initial transfers of $15 billion within two weeks of inking the UAE deal, with a third of that sum coming from existing Emirati deposits in the Egyptian central bank.
Authorities have begun procedures to exchange another UAE deposit of $6 billion into Egyptian pounds, Prime Minister Mostafa Madbouly said Wednesday.
Mideast Stocks: Gulf markets slip on weaker earnings; #Dubai hits four-month low
Mideast Stocks: Gulf markets slip on weaker earnings; Dubai hits four-month low
Most stock markets in the Gulf dropped on Wednesday, led by the Dubai index, on weaker corporate results, while lower oil prices also dampened investor sentiment.
Dubai's benchmark index dropped 1.1% to 4,093, its lowest level in nearly four months, with all constituents posting losses, led by consumer staples, industry and real estate stocks. The tolls operator Salik Company slipped 2.3%, and Emaar Properties fell 1% after the blue-chip developer posted a 9% drop in its first-quarter net profit.
In Abu Dhabi, the benchmark index retreated 0.4%, with conglomerate Alpha Dhabi dropping 2.2% and First Abu Dhabi Bank, the UAE's largest lender, shedding 1%. Among other losers, Abu Dhabi National Energy Co slid 1.4% after the state-owned power and water utility posted an 81.8% decline in its first-quarter net profit.
The Qatari benchmark index was down 0.2%, pressured by a 1% drop in Qatar National Bank, the region's largest lender, and a 0.7% loss in Industries Qatar.
Saudi Arabia's benchmark stock index dropped 0.2% to 12,103, its lowest level in over there months, with most sectors in the red. Saudi National Bank, the kingdom's largest lender, fell 1.1% and oil giant Saudi Aramco slipped 1.7%. Saudi Research And Media Group dropped 4.2% after the integrated media firm posted a 28% decrease in its quarterly net profit.
Oil prices, a catalyst for the Gulf's financial markets, dipped 0.3% as the International Energy Agency trimmed its forecast for 2024 oil demand growth.
Outside the Gulf, Egypt's blue-chip index eased 0.1%, with most sectors in the negative territory. Talaat Mostafa Group fell 1.3% and Egypt Kuwait Holding dropped 3.1% after the investment firm posted a dip in quarterly net profit.
Dubai's benchmark index dropped 1.1% to 4,093, its lowest level in nearly four months, with all constituents posting losses, led by consumer staples, industry and real estate stocks. The tolls operator Salik Company slipped 2.3%, and Emaar Properties fell 1% after the blue-chip developer posted a 9% drop in its first-quarter net profit.
In Abu Dhabi, the benchmark index retreated 0.4%, with conglomerate Alpha Dhabi dropping 2.2% and First Abu Dhabi Bank, the UAE's largest lender, shedding 1%. Among other losers, Abu Dhabi National Energy Co slid 1.4% after the state-owned power and water utility posted an 81.8% decline in its first-quarter net profit.
The Qatari benchmark index was down 0.2%, pressured by a 1% drop in Qatar National Bank, the region's largest lender, and a 0.7% loss in Industries Qatar.
Saudi Arabia's benchmark stock index dropped 0.2% to 12,103, its lowest level in over there months, with most sectors in the red. Saudi National Bank, the kingdom's largest lender, fell 1.1% and oil giant Saudi Aramco slipped 1.7%. Saudi Research And Media Group dropped 4.2% after the integrated media firm posted a 28% decrease in its quarterly net profit.
Oil prices, a catalyst for the Gulf's financial markets, dipped 0.3% as the International Energy Agency trimmed its forecast for 2024 oil demand growth.
Outside the Gulf, Egypt's blue-chip index eased 0.1%, with most sectors in the negative territory. Talaat Mostafa Group fell 1.3% and Egypt Kuwait Holding dropped 3.1% after the investment firm posted a dip in quarterly net profit.
#SaudiArabia inflation unchanged at 1.6% in April | Reuters
Saudi Arabia inflation unchanged at 1.6% in April | Reuters
Saudi Arabia's annual inflation rate held at 1.6% in April, the same as the previous month, government data showed on Wednesday, underpinned once again by an increase in housing rents.
Prices in the subcategory of housing, water, electricity, gas and other fuels rose by 8.7% from a year earlier, according to the General Authority for Statistics, with housing rents surging by 10.4% year on year.
Food and beverage prices rose 0.8% year on year while prices for restaurants and hotels increased 2%.
But prices for vehicles declined almost 3% in April from the previous year, bringing down overall transport costs by 1.6%, while clothing and footwear prices fell by 4.2%.
On a month-on-month basis, prices increased 0.3% in April from March, with housing rents and prices the main driver.
Inflation has remained relatively low in Saudi Arabia compared with global levels, and below 2% year to date, with government policies helping limit the impact of international price increases.
Saudi Arabia's annual inflation rate held at 1.6% in April, the same as the previous month, government data showed on Wednesday, underpinned once again by an increase in housing rents.
Prices in the subcategory of housing, water, electricity, gas and other fuels rose by 8.7% from a year earlier, according to the General Authority for Statistics, with housing rents surging by 10.4% year on year.
Food and beverage prices rose 0.8% year on year while prices for restaurants and hotels increased 2%.
But prices for vehicles declined almost 3% in April from the previous year, bringing down overall transport costs by 1.6%, while clothing and footwear prices fell by 4.2%.
On a month-on-month basis, prices increased 0.3% in April from March, with housing rents and prices the main driver.
Inflation has remained relatively low in Saudi Arabia compared with global levels, and below 2% year to date, with government policies helping limit the impact of international price increases.
Most Gulf bourses muted on caution ahead of US inflation print | Reuters
Most Gulf bourses muted on caution ahead of US inflation print | Reuters
Most stock markets in the Gulf were subdued in early trading on Wednesday, as caution prevailed ahead of the U.S. inflation data for clues on the Federal Reserve's interest rate cut strategy.
Dubai's benchmark stock index (.DFMGI), opens new tab eased 0.2% weighed down by losses in industry, utilities and communication sectors, with tolls operator Salik Company (SALIK.DU), opens new tab sliding 1.2% and National Central Cooling (TABR.DU), opens new tab dropping 2.4%.
Abu Dhabi's benchmark stock index (.FTFADGI), opens new tab was down 0.1% with First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, shedding 0.7% and Fertiglobe (FERTIGLB.AD), opens new tab sliding 2.2%.
MENA's largest nitrogen fertilizer maker, Fertiglobe posted a 14% drop in its first-quarter net profit on Tuesday.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed in early trading, with ACWA Power (2082.SE), opens new tab gaining 4.6%, while oil giant Saudi Aramco (2222.SE), opens new tab slipped 1.7% and Saudi Electricity (5110.SE), opens new tab dropped 5%.
The Qatari benchmark index (.QSI), opens new tab rose 0.3%, helped by a 3.1% gain in Qatar Gas Transport (QGTS.QA), opens new tab and a 1.7% rise in Masraf Al Rayan (MARK.QA), opens new tab.
Investors are awaiting the U.S. Consumer Price Index data due later in the day for clues to when the Fed will consider cutting interest rates.
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.
Most stock markets in the Gulf were subdued in early trading on Wednesday, as caution prevailed ahead of the U.S. inflation data for clues on the Federal Reserve's interest rate cut strategy.
Dubai's benchmark stock index (.DFMGI), opens new tab eased 0.2% weighed down by losses in industry, utilities and communication sectors, with tolls operator Salik Company (SALIK.DU), opens new tab sliding 1.2% and National Central Cooling (TABR.DU), opens new tab dropping 2.4%.
Abu Dhabi's benchmark stock index (.FTFADGI), opens new tab was down 0.1% with First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, shedding 0.7% and Fertiglobe (FERTIGLB.AD), opens new tab sliding 2.2%.
MENA's largest nitrogen fertilizer maker, Fertiglobe posted a 14% drop in its first-quarter net profit on Tuesday.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed in early trading, with ACWA Power (2082.SE), opens new tab gaining 4.6%, while oil giant Saudi Aramco (2222.SE), opens new tab slipped 1.7% and Saudi Electricity (5110.SE), opens new tab dropped 5%.
The Qatari benchmark index (.QSI), opens new tab rose 0.3%, helped by a 3.1% gain in Qatar Gas Transport (QGTS.QA), opens new tab and a 1.7% rise in Masraf Al Rayan (MARK.QA), opens new tab.
Investors are awaiting the U.S. Consumer Price Index data due later in the day for clues to when the Fed will consider cutting interest rates.
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.
Tuesday 14 May 2024
OPEC+ Reopens Fraught Debate on Members’ Oil Production Capacity - Bloomberg
OPEC+ Reopens Fraught Debate on Members’ Oil Production Capacity - Bloomberg
OPEC+ is once again grappling with the thorny question of how much oil its members are actually capable of pumping, an issue that poses risks for the group’s efforts to stabilize world markets.
After a fierce debate on the matter last year — ultimately leading to the exit of Angola — the alliance led by Saudi Arabia commissioned an external review of its members capabilities, to be concluded by the end of June. Several major exporters are seeking to have their levels upgraded, with a view to securing the right to pump more crude in 2025.
The United Arab Emirates, Kazakhstan, Iraq, Kuwait and Algeria are among countries whose potential to pump more next year is under scrutiny, according to people familiar with the discussions who asked not to be identified because the information isn’t public. Some have pushed for an upward revision, causing tough talks with the outside consultants that are judging the matter, they said.
The Organization of Petroleum Exporting Countries and its partners have been restraining oil output in a bid to stave off a surplus and shore up crude prices. JPMorgan Chase & Co. warns that the group — which already holds considerable idle capacity — could struggle to manage markets next year, when demand growth is set to slow and rival supplies to climb.
The 22-nation alliance is widely expected to prolong its current curbs into the second half of this year when it gathers on June 1. It may also use the gathering to discuss the capacity review, according to UBS Group AG.
Whether that debate could impinge on the decision at the meeting, as it has done in the past, is unclear.
OPEC+ is once again grappling with the thorny question of how much oil its members are actually capable of pumping, an issue that poses risks for the group’s efforts to stabilize world markets.
After a fierce debate on the matter last year — ultimately leading to the exit of Angola — the alliance led by Saudi Arabia commissioned an external review of its members capabilities, to be concluded by the end of June. Several major exporters are seeking to have their levels upgraded, with a view to securing the right to pump more crude in 2025.
The United Arab Emirates, Kazakhstan, Iraq, Kuwait and Algeria are among countries whose potential to pump more next year is under scrutiny, according to people familiar with the discussions who asked not to be identified because the information isn’t public. Some have pushed for an upward revision, causing tough talks with the outside consultants that are judging the matter, they said.
The Organization of Petroleum Exporting Countries and its partners have been restraining oil output in a bid to stave off a surplus and shore up crude prices. JPMorgan Chase & Co. warns that the group — which already holds considerable idle capacity — could struggle to manage markets next year, when demand growth is set to slow and rival supplies to climb.
The 22-nation alliance is widely expected to prolong its current curbs into the second half of this year when it gathers on June 1. It may also use the gathering to discuss the capacity review, according to UBS Group AG.
Whether that debate could impinge on the decision at the meeting, as it has done in the past, is unclear.
Gulf markets drop on weaker earnings; US inflation data in focus | Reuters
Gulf markets drop on weaker earnings; US inflation data in focus | Reuters
Stock markets in the Gulf slipped on Monday, led by the Saudi index, on weaker corporate results, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of this year.
Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.1% to 12,121, its lowest level in over there months, with all constituents posting losses, led by healthcare, IT and real estate stocks.
Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, fell 1.4% and Rabigh Refining and Petrochemical (2380.SE), opens new tab known as Petro Rabigh, declined 4.2%.
Petro Rabigh, the hydrocarbon and petrochemicals producer, reported its quarterly loss widened to 1.37 billion riyals from 964 million riyals a year earlier.
Among other fallers, Emaar Economic City(4220.SE), opens new tab dropped 5.2% after the developer's first-quarter loss widened.
Dubai's benchmark index (.DFMGI), opens new tab dropped 0.9% with most sectors in the red. The blue-chip developer Emaar Properties (EMAR.DU), opens new tab slid 2.2 and Air Arabia (AIRA.DU), opens new tab declined 5.2%.
The low-cost flyer Air Arabia posted a 22% decline in its quarterly profit on Monday.
The Qatari benchmark index (.QSI), opens new tab was down after four consecutive sessions of gains and fell 0.2%, dragged down by a 1.3% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 1.2% dip in Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab fell 0.4% with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab dropping 1.2% and First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, slipping 1.3%.
Among other losers, Fertiglobe(FERTIGLB.AD), opens new tab slid 1.5% after the MENA's largest nitrogen fertilizer maker, posted a 14% decrease in its first-quarter net profit.
"The market continued to trend toward its lows of the year and could remain exposed to the downside", said Joseph Dahrieh, Managing Principal at Tickmill.
Meanwhile, investors are awaiting the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.2%, with most sectors in negative territory. Eastern Company(EAST.CA), opens new tab fell 2.2% and E-finance for Digital (EFIH.CA), opens new tab shed 2.3%.
However, Fawry for Banking Technology (FWRY.CA), opens new tab climbed 4% after the e-payment provider reported a 134.8% surge in its quarterly net profit.
Stock markets in the Gulf slipped on Monday, led by the Saudi index, on weaker corporate results, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of this year.
Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.1% to 12,121, its lowest level in over there months, with all constituents posting losses, led by healthcare, IT and real estate stocks.
Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, fell 1.4% and Rabigh Refining and Petrochemical (2380.SE), opens new tab known as Petro Rabigh, declined 4.2%.
Petro Rabigh, the hydrocarbon and petrochemicals producer, reported its quarterly loss widened to 1.37 billion riyals from 964 million riyals a year earlier.
Among other fallers, Emaar Economic City(4220.SE), opens new tab dropped 5.2% after the developer's first-quarter loss widened.
Dubai's benchmark index (.DFMGI), opens new tab dropped 0.9% with most sectors in the red. The blue-chip developer Emaar Properties (EMAR.DU), opens new tab slid 2.2 and Air Arabia (AIRA.DU), opens new tab declined 5.2%.
The low-cost flyer Air Arabia posted a 22% decline in its quarterly profit on Monday.
The Qatari benchmark index (.QSI), opens new tab was down after four consecutive sessions of gains and fell 0.2%, dragged down by a 1.3% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 1.2% dip in Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab fell 0.4% with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab dropping 1.2% and First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, slipping 1.3%.
Among other losers, Fertiglobe(FERTIGLB.AD), opens new tab slid 1.5% after the MENA's largest nitrogen fertilizer maker, posted a 14% decrease in its first-quarter net profit.
"The market continued to trend toward its lows of the year and could remain exposed to the downside", said Joseph Dahrieh, Managing Principal at Tickmill.
Meanwhile, investors are awaiting the U.S. Consumer Price Index data due on Wednesday for clues to when the Federal Reserve will consider cutting interest rates.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.2%, with most sectors in negative territory. Eastern Company(EAST.CA), opens new tab fell 2.2% and E-finance for Digital (EFIH.CA), opens new tab shed 2.3%.
However, Fawry for Banking Technology (FWRY.CA), opens new tab climbed 4% after the e-payment provider reported a 134.8% surge in its quarterly net profit.
Emirates Group's airport, travel unit dnata looking at M&A deals | Reuters
Emirates Group's airport, travel unit dnata looking at M&A deals | Reuters
Emirates Group's dnata, which provides airport and travel services in over 30 countries, is looking at merger and acquisition (M&A) opportunities across several businesses and geographies, including South America, its CEO said on Tuesday.
"We are probably, at any time, talking to 40 different companies" and "plenty" of deals are "at the end of the pipeline", Chief Executive Steve Allen told Reuters, noting the company focuses on small to medium size acquisitions.
South America is "a huge growth market opportunity" he said, mentioning countries such as Brazil. He added that globally there was significant scope for consolidation in airport ground handling.
Founded in 1959, dnata is a sister company to Emirates airline. Its operations include supplying airlines with catering and handling baggage and cargo. It also owns companies that sell holiday packages and provide retail and corporate travel booking services.
Emirates Group's dnata, which provides airport and travel services in over 30 countries, is looking at merger and acquisition (M&A) opportunities across several businesses and geographies, including South America, its CEO said on Tuesday.
"We are probably, at any time, talking to 40 different companies" and "plenty" of deals are "at the end of the pipeline", Chief Executive Steve Allen told Reuters, noting the company focuses on small to medium size acquisitions.
South America is "a huge growth market opportunity" he said, mentioning countries such as Brazil. He added that globally there was significant scope for consolidation in airport ground handling.
Founded in 1959, dnata is a sister company to Emirates airline. Its operations include supplying airlines with catering and handling baggage and cargo. It also owns companies that sell holiday packages and provide retail and corporate travel booking services.
#Saudi Economic ‘Overheating’ Fears Emerge as Constraint on Plans - Bloomberg
Saudi Economic ‘Overheating’ Fears Emerge as Constraint on Plans - Bloomberg
Saudi Arabia wants to avoid sending the economy into overdrive as it channels investments with the goal of pivoting the nation away from oil dependency.
Finance Minister Mohammed Al-Jadaan said Tuesday that while his country’s massive investments are helping to grow the non-oil economy, the kingdom needs to be careful about “overheating” — which could cause inflation to quicken — and “leakages.”
“If you don’t allow your economy to catch up with your projects, basically what will happen is you’ll import a lot more,” Al-Jadaan said at the Qatar Economic Forum. As a result, Saudi Arabia could lack the factories and other capacity needed to support its plans, according to Al-Jadaan.
“So giving it more time is actually wise,” he said.
The economic makeover, known as Vision 2030, has been hitting some snags eight years after being unveiled by Crown Prince Mohammed bin Salman. Al-Jadaan has previously acknowledged that there may be delays or acceleration for some projects.
Under the crown prince’s blueprint, Saudi Arabia is pumping hundreds of billions of dollars into everything from electric vehicles to semiconductors and sports.
Saudi Arabia wants to avoid sending the economy into overdrive as it channels investments with the goal of pivoting the nation away from oil dependency.
Finance Minister Mohammed Al-Jadaan said Tuesday that while his country’s massive investments are helping to grow the non-oil economy, the kingdom needs to be careful about “overheating” — which could cause inflation to quicken — and “leakages.”
“If you don’t allow your economy to catch up with your projects, basically what will happen is you’ll import a lot more,” Al-Jadaan said at the Qatar Economic Forum. As a result, Saudi Arabia could lack the factories and other capacity needed to support its plans, according to Al-Jadaan.
“So giving it more time is actually wise,” he said.
The economic makeover, known as Vision 2030, has been hitting some snags eight years after being unveiled by Crown Prince Mohammed bin Salman. Al-Jadaan has previously acknowledged that there may be delays or acceleration for some projects.
Under the crown prince’s blueprint, Saudi Arabia is pumping hundreds of billions of dollars into everything from electric vehicles to semiconductors and sports.
Goldman Looks to Entice Wealthy Clients to Plow Cash in Gulf - Bloomberg
Goldman Looks to Entice Wealthy Clients to Plow Cash in Gulf - Bloomberg
Goldman Sachs Group Inc. is planning to launch several investment strategies that will allow the firm and its wealthy clients to deploy capital in the Gulf’s public markets.
Companies based in the Middle East currently comprise about 7% of the widely-tracked MSCI Emerging Markets Index and the bank’s research suggests that could grow to as much as to 10%, Marc Nachmann, Goldman’s global head of asset and wealth management, said during the Qatar Economic Forum. That should help draw more international investors to deploy their funds into the Gulf, he said.
“International investors are going to have to pay more attention to the region,” Nachmann said.
For years, asset management executives have traveled to the Middle East to raise billions from the region’s sovereign wealth funds. Nachmann’s comments show that dynamic is quickly changing as countries across the Gulf look to raise funds for their own domestic initiatives.
In the wide-ranging interview, Nachmann said the bank is expanding its private credit business after recently inking partnerships with players like Abu Dhabi’s Mubadala Investment Co. That tie-up will have both companies focused on direct lending across Asia.
He added that the risk-reward in direct lending is “unusually good” at the moment and that loan-to-value ratios in the space are attractive. He also said Goldman is comfortable with credit risk despite the higher interest rate environment.
The government of the State of Qatar is the underwriter of the Qatar Economic Forum, Powered by Bloomberg.
Goldman Sachs Group Inc. is planning to launch several investment strategies that will allow the firm and its wealthy clients to deploy capital in the Gulf’s public markets.
Companies based in the Middle East currently comprise about 7% of the widely-tracked MSCI Emerging Markets Index and the bank’s research suggests that could grow to as much as to 10%, Marc Nachmann, Goldman’s global head of asset and wealth management, said during the Qatar Economic Forum. That should help draw more international investors to deploy their funds into the Gulf, he said.
“International investors are going to have to pay more attention to the region,” Nachmann said.
For years, asset management executives have traveled to the Middle East to raise billions from the region’s sovereign wealth funds. Nachmann’s comments show that dynamic is quickly changing as countries across the Gulf look to raise funds for their own domestic initiatives.
In the wide-ranging interview, Nachmann said the bank is expanding its private credit business after recently inking partnerships with players like Abu Dhabi’s Mubadala Investment Co. That tie-up will have both companies focused on direct lending across Asia.
He added that the risk-reward in direct lending is “unusually good” at the moment and that loan-to-value ratios in the space are attractive. He also said Goldman is comfortable with credit risk despite the higher interest rate environment.
The government of the State of Qatar is the underwriter of the Qatar Economic Forum, Powered by Bloomberg.
#Saudi Mega Projects Seek Partners in Bid to Hit Crown Prince MBS's Goals - Bloomberg
Saudi Mega Projects Seek Partners in Bid to Hit Crown Prince MBS's Goals - Bloomberg
Top officials from Saudi Arabia’s mega projects gathered in Riyadh to share progress updates and seek partners to help deliver a key pillar of Crown Prince Mohammed bin Salman’s plan to transform the economy.
Executives from The Line, New Murabba and Diriyah Company — complex developments ranging from a futuristic mega city on the Red Sea to an urban development housing a cube-shaped skyscraper set to be the tallest in the Saudi capital — discussed challenges with supply chains, costs and finding skilled workers as they underscored the urgent need for experienced partners to assist in completing projects.
Many touted construction achievements, some that had not yet been shared widely with the public, but made clear they would have to overcome major obstacles if they are to meet deadlines set under the crown prince’s Vision 2030 agenda.
“I think our biggest problem with these projects is time,” said Oussama Kabbani, group chief development offer for Roshn Real Estate Co., one of Saudi Arabia’s largest residential developers that’s backed by the sovereign wealth fund. “Make no mistake we made commitments to His Royal Highness that we will be a showcase of the 2030 Vision. The challenge now is how much we can achieve from our promise.”
Representatives from developments worth $880 billion gathered at Monday’s event, which was hosted by the Middle East business intelligence source known as MEED. They presented to potential investors and contractors at a time when the kingdom is struggling to lure foreign direct investment and has delayed or accelerated some projects based on funding needs and other considerations.
Top officials from Saudi Arabia’s mega projects gathered in Riyadh to share progress updates and seek partners to help deliver a key pillar of Crown Prince Mohammed bin Salman’s plan to transform the economy.
Executives from The Line, New Murabba and Diriyah Company — complex developments ranging from a futuristic mega city on the Red Sea to an urban development housing a cube-shaped skyscraper set to be the tallest in the Saudi capital — discussed challenges with supply chains, costs and finding skilled workers as they underscored the urgent need for experienced partners to assist in completing projects.
Many touted construction achievements, some that had not yet been shared widely with the public, but made clear they would have to overcome major obstacles if they are to meet deadlines set under the crown prince’s Vision 2030 agenda.
“I think our biggest problem with these projects is time,” said Oussama Kabbani, group chief development offer for Roshn Real Estate Co., one of Saudi Arabia’s largest residential developers that’s backed by the sovereign wealth fund. “Make no mistake we made commitments to His Royal Highness that we will be a showcase of the 2030 Vision. The challenge now is how much we can achieve from our promise.”
Representatives from developments worth $880 billion gathered at Monday’s event, which was hosted by the Middle East business intelligence source known as MEED. They presented to potential investors and contractors at a time when the kingdom is struggling to lure foreign direct investment and has delayed or accelerated some projects based on funding needs and other considerations.
#Dubai’s Property Finder Raises $90 Million Debt From Francisco Partners - Bloomberg
Dubai’s Property Finder Raises $90 Million Debt From Francisco Partners - Bloomberg
Dubai-based Property Finder raised $90 million in debt from Francisco Partners to help finance the buyout of its first institutional investor, signaling continued foreign interest in the United Arab Emirates’ thriving real estate market.
The online real estate platform bought back the stake held by BECO Capital, a regional venture capital firm that previously invested in ride-hailing app Careem — now owned by Uber — and failed logistics startup Fetchr. Property Finder said the deal allows BECO to exit “with a strong return on its investment.” It didn’t give details.
“We’ve seen tremendous growth in the real estate market across the entire UAE, not just Dubai,” said Michael Lahyani, chief executive officer and founder of Property Finder. The company is valued at about $1 billion, joining the relatively small but growing roster of Middle Eastern unicorns, Lahyani said.
Dubai’s real estate market has boomed in the aftermath of Covid, largely due to the government’s efforts to make it easier for the world’s wealthy to set up presence in the emirate. Its growth stood in contrast to other major markets globally.
Property Finder’s Lahyani said the domestic market is heading toward a soft landing with prices looking to stabilize.
“A real estate market that grows at 50% is not going to be sustainable for the long run and everybody knows that,” Lahyani said. “What we’re seeing right now is a transition from a hyper growth market to a market that is going to continue to grow but in a more sustainable way,” he said.
Started in 2007 to capitalize on Dubai’s booming real estate sector, Property Finder secured an investment from General Atlantic in 2018. It competes with other classified platforms such as Dubizzle and Bayut, whose parent company is backed by Affinity Partners, the investment firm of Donald Trump’s son-in-law Jared Kushner.
Property Finder has expanded its operations across the region, including Qatar, Bahrain and Egypt. Now it’s focused on increasing its market share in Saudi Arabia and Turkey.
JPMorgan & Chase Co. and White & Case acted as advisers to Property Finder on the debt deal, which is Francisco Partners’ first investment of this kind in the UAE.
Dubai-based Property Finder raised $90 million in debt from Francisco Partners to help finance the buyout of its first institutional investor, signaling continued foreign interest in the United Arab Emirates’ thriving real estate market.
The online real estate platform bought back the stake held by BECO Capital, a regional venture capital firm that previously invested in ride-hailing app Careem — now owned by Uber — and failed logistics startup Fetchr. Property Finder said the deal allows BECO to exit “with a strong return on its investment.” It didn’t give details.
“We’ve seen tremendous growth in the real estate market across the entire UAE, not just Dubai,” said Michael Lahyani, chief executive officer and founder of Property Finder. The company is valued at about $1 billion, joining the relatively small but growing roster of Middle Eastern unicorns, Lahyani said.
Dubai’s real estate market has boomed in the aftermath of Covid, largely due to the government’s efforts to make it easier for the world’s wealthy to set up presence in the emirate. Its growth stood in contrast to other major markets globally.
Property Finder’s Lahyani said the domestic market is heading toward a soft landing with prices looking to stabilize.
“A real estate market that grows at 50% is not going to be sustainable for the long run and everybody knows that,” Lahyani said. “What we’re seeing right now is a transition from a hyper growth market to a market that is going to continue to grow but in a more sustainable way,” he said.
Started in 2007 to capitalize on Dubai’s booming real estate sector, Property Finder secured an investment from General Atlantic in 2018. It competes with other classified platforms such as Dubizzle and Bayut, whose parent company is backed by Affinity Partners, the investment firm of Donald Trump’s son-in-law Jared Kushner.
Property Finder has expanded its operations across the region, including Qatar, Bahrain and Egypt. Now it’s focused on increasing its market share in Saudi Arabia and Turkey.
JPMorgan & Chase Co. and White & Case acted as advisers to Property Finder on the debt deal, which is Francisco Partners’ first investment of this kind in the UAE.
Biggest #SaudiArabia IPO of the Year Draws $91 Billion in Orders - Bloomberg
Biggest Saudi Arabia IPO of the Year Draws $91 Billion in Orders - Bloomberg
Investors put in $91 billion of orders for the initial public offering of a Saudi hospital group that’s set to be the kingdom’s biggest listing of the year.
Dr. Soliman Abdul Kader Fakeeh Hospital’s Riyadh IPO was covered 119 times by institutional investors, according to a statement on Tuesday. The company and the founding family are set to raise 2.86 billion riyals ($763.4 million) in the listing.
The final price was set at 57.5 riyals, the top end of a marketed range, implying a total market capitalization of 13.3 billion riyals. The offering had sold out shortly after books opened earlier this month.
Fakeeh Care Group is among four Saudi companies that have announced their intentions to go public in the last few weeks. The kingdom’s stock exchange expects the burst of activity to continue, with more than 10 companies waiting in the wings, its chief executive officer said last week.
Abu Dhabi Investment Authority and Olayan Saudi Investment Co. were cornerstone investors in Fakeeh Care Group’s IPO, agreeing to subscribe for 1.04 million shares and 1.96 million shares, respectively. It’s the first time the Abu Dhabi wealth fund is participating in a Saudi IPO as a cornerstone investor.
Fakeeh Care Group was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centers. It plans to expand to seven hospitals with 1,675 beds and nine medical centers by 2028 to capitalize on the kingdom’s growing population, which is expected to hit about 40 million by 2030. The company plans to use the proceeds from the sale of new shares to finance its growth strategy.
The retail offering opens on May 21 for two days. HSBC Holdings Plc is acting as sole financial adviser and joint bookrunner together with anb capital and EFG Hermes. Moelis & Co. is advising the selling shareholders.
Investors put in $91 billion of orders for the initial public offering of a Saudi hospital group that’s set to be the kingdom’s biggest listing of the year.
Dr. Soliman Abdul Kader Fakeeh Hospital’s Riyadh IPO was covered 119 times by institutional investors, according to a statement on Tuesday. The company and the founding family are set to raise 2.86 billion riyals ($763.4 million) in the listing.
The final price was set at 57.5 riyals, the top end of a marketed range, implying a total market capitalization of 13.3 billion riyals. The offering had sold out shortly after books opened earlier this month.
Fakeeh Care Group is among four Saudi companies that have announced their intentions to go public in the last few weeks. The kingdom’s stock exchange expects the burst of activity to continue, with more than 10 companies waiting in the wings, its chief executive officer said last week.
Abu Dhabi Investment Authority and Olayan Saudi Investment Co. were cornerstone investors in Fakeeh Care Group’s IPO, agreeing to subscribe for 1.04 million shares and 1.96 million shares, respectively. It’s the first time the Abu Dhabi wealth fund is participating in a Saudi IPO as a cornerstone investor.
Fakeeh Care Group was founded in 1978 in Jeddah, and now has 835 beds across four hospitals and five medical centers. It plans to expand to seven hospitals with 1,675 beds and nine medical centers by 2028 to capitalize on the kingdom’s growing population, which is expected to hit about 40 million by 2030. The company plans to use the proceeds from the sale of new shares to finance its growth strategy.
The retail offering opens on May 21 for two days. HSBC Holdings Plc is acting as sole financial adviser and joint bookrunner together with anb capital and EFG Hermes. Moelis & Co. is advising the selling shareholders.
Most Gulf bourses muted in early trade | Reuters
Most Gulf bourses muted in early trade | Reuters
Most stock markets in the Gulf were subdued in early trading on Tuesday, as investors were cautious ahead of the U.S. inflation data for clues on the Federal Reserve's interest rate cut strategy.
Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.4%, dragged down by industry and real estate sectors, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab sliding 1.1% and Air Arabia (AIRA.DU), opens new tab dropping 3.4%.
The low-cost flyer Air Arabia reported a 22% decline in its quarterly profit on Monday.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.2%, with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab falling 1.6% and First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, dropping 1%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed in early trading, with Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, gaining 1.1% and Elm Company (7203.SE), opens new tab adding 1.7%. Emaar Economic City(4220.SE), opens new tab, however, dropped 4.7%, after the developer's quarterly loss widened.
The Qatari benchmark index (.QSI), opens new tab edged up 0.2%, helped by a 0.7% gain in Masraf Al Rayan (MARK.QA), opens new tab and a 0.4% rise in Qatar National Bank(QNBK.QA), opens new tab, the region's biggest lender.
Investors are watching the U.S. Consumer Price Index data due on Wednesday for clues to when the Fed will consider cutting interest rates.
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.
Most stock markets in the Gulf were subdued in early trading on Tuesday, as investors were cautious ahead of the U.S. inflation data for clues on the Federal Reserve's interest rate cut strategy.
Dubai's benchmark stock index (.DFMGI), opens new tab slipped 0.4%, dragged down by industry and real estate sectors, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab sliding 1.1% and Air Arabia (AIRA.DU), opens new tab dropping 3.4%.
The low-cost flyer Air Arabia reported a 22% decline in its quarterly profit on Monday.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab was down 0.2%, with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab falling 1.6% and First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender, dropping 1%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was little changed in early trading, with Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, gaining 1.1% and Elm Company (7203.SE), opens new tab adding 1.7%. Emaar Economic City(4220.SE), opens new tab, however, dropped 4.7%, after the developer's quarterly loss widened.
The Qatari benchmark index (.QSI), opens new tab edged up 0.2%, helped by a 0.7% gain in Masraf Al Rayan (MARK.QA), opens new tab and a 0.4% rise in Qatar National Bank(QNBK.QA), opens new tab, the region's biggest lender.
Investors are watching the U.S. Consumer Price Index data due on Wednesday for clues to when the Fed will consider cutting interest rates.
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.
Monday 13 May 2024
Gulf markets end mixed ahead of US inflation data | Reuters
Gulf markets end mixed ahead of US inflation data | Reuters
Most stock markets in the Gulf put in a mixed performance on Monday amid rising oil prices, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of the year.
Oil prices, a catalyst for the Gulf's financial markets, were up 0.6% with Brent settling at $83.3 a barrel by 1300 GMT.
Saudi Arabia's benchmark stock index (.TASI), opens new tab bounced back after two straight sessions of losses and rose 0.4%, supported by a 5.7% increase in ACWA Power (2082.SE), opens new tab and a 0.6% gain in Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender.
Among other gainers, Riyadh Cables Group (4142.SE), opens new tab climbed 5% after the cable maker posted a 35.3% rise in its quarterly net profit.
The Qatari benchmark index (.QSI), opens new tab was up for a fourth consecutive session and ended 0.3% higher, lifted by gains in industry, finance and materials sectors.
Qatar Islamic Bank (QISB.QA), opens new tab advanced 1.4% and Industries Qatar(IQCD.QA), opens new tab gained 0.8%, while Qatar National Bank(QNBK.QA), opens new tab, the region's largest lender, added 0.3%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab was little changed with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab dropping 1.3% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab adding 4.3%.
ADNOC Drilling, the energy giant ADNOC's drilling unit, reported a 26% rise in its first quarter net profit and announced a new dividend policy to increase payout by at least 10% annually for five years.
Dubai's benchmark index (.DFMGI), opens new tab ended flat with Emirates Central Cooling Systems (EMPOWER.DU), opens new tab and Ajman Bank (AJBNK.DU), opens new tab sliding 4.4% and 4.1%, respectively. However, the blue-chip developer Emaar Properties (EMAR.DU), opens new tab rose 1.5% and Aramex (ARMX.DU), opens new tab climbed 3.6%.
The logistics firm Aramex on Friday reported a 95% increase in quarterly net profit.
The crucial U.S. core consumer price index is due on Wednesday, with hotter-than-expected data ruling out any rate-cut hopes from the Fed.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.9%, aided by gains in materials, industry, real estate and finance sectors, with Talaat Mostafa Group (TMGH.CA), opens new tab rising 3.2% and Commercial International Bank (COMI.CA), opens new tab advancing 2%.
COMI, Egypt's biggest private lender, posted a 97% surge in its first-quarter net income.
Most stock markets in the Gulf put in a mixed performance on Monday amid rising oil prices, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of the year.
Oil prices, a catalyst for the Gulf's financial markets, were up 0.6% with Brent settling at $83.3 a barrel by 1300 GMT.
Saudi Arabia's benchmark stock index (.TASI), opens new tab bounced back after two straight sessions of losses and rose 0.4%, supported by a 5.7% increase in ACWA Power (2082.SE), opens new tab and a 0.6% gain in Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender.
Among other gainers, Riyadh Cables Group (4142.SE), opens new tab climbed 5% after the cable maker posted a 35.3% rise in its quarterly net profit.
The Qatari benchmark index (.QSI), opens new tab was up for a fourth consecutive session and ended 0.3% higher, lifted by gains in industry, finance and materials sectors.
Qatar Islamic Bank (QISB.QA), opens new tab advanced 1.4% and Industries Qatar(IQCD.QA), opens new tab gained 0.8%, while Qatar National Bank(QNBK.QA), opens new tab, the region's largest lender, added 0.3%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab was little changed with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab dropping 1.3% and ADNOC Drilling (ADNOCDRILL.AD), opens new tab adding 4.3%.
ADNOC Drilling, the energy giant ADNOC's drilling unit, reported a 26% rise in its first quarter net profit and announced a new dividend policy to increase payout by at least 10% annually for five years.
Dubai's benchmark index (.DFMGI), opens new tab ended flat with Emirates Central Cooling Systems (EMPOWER.DU), opens new tab and Ajman Bank (AJBNK.DU), opens new tab sliding 4.4% and 4.1%, respectively. However, the blue-chip developer Emaar Properties (EMAR.DU), opens new tab rose 1.5% and Aramex (ARMX.DU), opens new tab climbed 3.6%.
The logistics firm Aramex on Friday reported a 95% increase in quarterly net profit.
The crucial U.S. core consumer price index is due on Wednesday, with hotter-than-expected data ruling out any rate-cut hopes from the Fed.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.9%, aided by gains in materials, industry, real estate and finance sectors, with Talaat Mostafa Group (TMGH.CA), opens new tab rising 3.2% and Commercial International Bank (COMI.CA), opens new tab advancing 2%.
COMI, Egypt's biggest private lender, posted a 97% surge in its first-quarter net income.
#Dubai's Emirates airline posts record full-year profit | Reuters
Dubai's Emirates airline posts record full-year profit | Reuters
Dubai's Emirates airline on Monday reported full-year profit up more than 60% at 17.23 billion dirhams ($4.69 billion), comfortably beating the previous year's 10.6 billion dirhams.
The airline carried 51.9 million passengers in the year to March 31, with seat capacity up 21.4%.
"The business outlook is positive, with projections of strong, sustained demand for international air transport and travel," Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said in a statement.
"As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations and volatile environments."
The state-owned airline will pay its staff a bonus equivalent to 20 weeks' salary, according to an internal staff email seen by Reuters.
Parent Emirates Group also reported record annual profit, up 71% at 18.7 billion dirhams, and said it would pay its owner, Dubai's sovereign wealth fund, a dividend of 4 billion dirhams.
Dubai's Emirates airline on Monday reported full-year profit up more than 60% at 17.23 billion dirhams ($4.69 billion), comfortably beating the previous year's 10.6 billion dirhams.
The airline carried 51.9 million passengers in the year to March 31, with seat capacity up 21.4%.
"The business outlook is positive, with projections of strong, sustained demand for international air transport and travel," Chairman and Chief Executive Sheikh Ahmed bin Saeed Al Maktoum said in a statement.
"As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations and volatile environments."
The state-owned airline will pay its staff a bonus equivalent to 20 weeks' salary, according to an internal staff email seen by Reuters.
Parent Emirates Group also reported record annual profit, up 71% at 18.7 billion dirhams, and said it would pay its owner, Dubai's sovereign wealth fund, a dividend of 4 billion dirhams.
#Dubai’s Drake & Scull International closes subscription
Dubai’s Drake & Scull International closes subscription
Dubai-based contractor Drake & Scull International (DSI) has closed the subscription for new capital, with proceeds exceeding 450 million UAE dirhams ($122.5 million), allowing the company to cover the minimum amount of targeted capital, a statement read.
The subscription process, for the period of April 25 and May 10 at a discounted rate of 25 fils per share, exceeded one and a half times the minimum required to complete the restructuring process, it said.
DSI stated the capital increase will finance new projects and potential acquisitions. Additionally, the company said it intends to use the net proceeds to enhance working capital and capital expenditures and support operations.
DSI’s new capital will amount to AED 2.88 billion, distributed over 2.88 billion shares. The company’s shares will resume trading on the Dubai Financial Market within the next few days after completing the procedures required by the regulatory and supervisory authorities.
Engineer Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International PJSC, said the success of the IPO will enable the company to regain its position in the markets of UAE, GCC and other regions around the world.
The subscription process took place through Emirates NBD and the Commercial Bank of Dubai in Abu Dhabi.
Dubai-based contractor Drake & Scull International (DSI) has closed the subscription for new capital, with proceeds exceeding 450 million UAE dirhams ($122.5 million), allowing the company to cover the minimum amount of targeted capital, a statement read.
The subscription process, for the period of April 25 and May 10 at a discounted rate of 25 fils per share, exceeded one and a half times the minimum required to complete the restructuring process, it said.
DSI stated the capital increase will finance new projects and potential acquisitions. Additionally, the company said it intends to use the net proceeds to enhance working capital and capital expenditures and support operations.
DSI’s new capital will amount to AED 2.88 billion, distributed over 2.88 billion shares. The company’s shares will resume trading on the Dubai Financial Market within the next few days after completing the procedures required by the regulatory and supervisory authorities.
Engineer Shafiq Abdelhamid, Chairman of the Board of Drake & Scull International PJSC, said the success of the IPO will enable the company to regain its position in the markets of UAE, GCC and other regions around the world.
The subscription process took place through Emirates NBD and the Commercial Bank of Dubai in Abu Dhabi.
Mideast Stocks: Most Gulf bourses up in early trade
Mideast Stocks: Most Gulf bourses up in early trade
Most stock markets in the Gulf were up on Monday in early trading, amid steady oil prices, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of this year.
Oil prices, a catalyst for the Gulf's financial markets, were steady with Brent inching up 0.1% at $82.87 a barrel by 0810 GMT.
In Abu Dhabi, the benchmark stock index was up 0.2%, with First Abu Dhabi Bank, the UAE's largest lender, rising 0.8% and ADNOC Drilling gaining 3.3%.
ADNOC Drilling, the energy giant ADNOC's drilling unit, reported a 26% rise in its first quarter net profit and announced a new dividend policy to increase payout by at least 10% annually for five years.
The Qatari benchmark index edged up 0.3%, helped by a 1% gain in Qatar Navigation and a 1.1% rise in Qatar Islamic Bank.
Dubai's benchmark stock index was little changed with Emirates NBD, the emirate's largest lender, sliding 0.9% while Aramex advanced 2.4%.
The logistics firm Aramex reported on Friday a 95% increase in quarterly net profit.
Saudi Arabia's benchmark stock index eased 0.3%, with most of the constituents posting losses, led by real estate, healthcare and finance stocks.
Alinma Bank fell 1.7% and Dr Sulaiman Al Habib Medical Services slipped 2%. ADES Holding however, rose 3.2% after the oil and gas driller reported a 124.6% increase in its first-quarter net profit.
The crucial U.S. core consumer price index is due on Wednesday, with hotter-than-expected data hurting rate-cut hopes.
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.
Most stock markets in the Gulf were up on Monday in early trading, amid steady oil prices, while investors awaited U.S. inflation data to gauge the Federal Reserve's policy path for the rest of this year.
Oil prices, a catalyst for the Gulf's financial markets, were steady with Brent inching up 0.1% at $82.87 a barrel by 0810 GMT.
In Abu Dhabi, the benchmark stock index was up 0.2%, with First Abu Dhabi Bank, the UAE's largest lender, rising 0.8% and ADNOC Drilling gaining 3.3%.
ADNOC Drilling, the energy giant ADNOC's drilling unit, reported a 26% rise in its first quarter net profit and announced a new dividend policy to increase payout by at least 10% annually for five years.
The Qatari benchmark index edged up 0.3%, helped by a 1% gain in Qatar Navigation and a 1.1% rise in Qatar Islamic Bank.
Dubai's benchmark stock index was little changed with Emirates NBD, the emirate's largest lender, sliding 0.9% while Aramex advanced 2.4%.
The logistics firm Aramex reported on Friday a 95% increase in quarterly net profit.
Saudi Arabia's benchmark stock index eased 0.3%, with most of the constituents posting losses, led by real estate, healthcare and finance stocks.
Alinma Bank fell 1.7% and Dr Sulaiman Al Habib Medical Services slipped 2%. ADES Holding however, rose 3.2% after the oil and gas driller reported a 124.6% increase in its first-quarter net profit.
The crucial U.S. core consumer price index is due on Wednesday, with hotter-than-expected data hurting rate-cut hopes.
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.
Sunday 12 May 2024
Consulting firms’ grip on #Saudi economy sparks local misgivings
Consulting firms’ grip on Saudi economy sparks local misgivings
In 2022 Saudi Arabia’s energy minister gave a rare public display of distaste for the role of management consultants who had become virtually indispensable to his own ministry.
In 2022 Saudi Arabia’s energy minister gave a rare public display of distaste for the role of management consultants who had become virtually indispensable to his own ministry.
“The institution has no cadre to keep it sustainable,” complained Prince Abdulaziz bin Salman, half-brother of Crown Prince Mohammed bin Salman, during a talk in Riyadh in November 2022. “No future outlook safeguarded by people who take it from start to finish.”
For most of its history, the energy ministry’s operations and planning have relied on a mix of employees seconded from state oil company Saudi Aramco and embedded consulting firms.
But some officials fear Saudi ministries have become over-reliant on western consultancies, from the Big Four of Deloitte, EY, KPMG and PwC to more specialist strategy consulting firms, as disgruntlement grows about the outsiders’ ever-growing role in running the country.
“I’ll be in a lot of meetings where Minister X or Deputy Minister X is presenting a strategy,” said one Saudi professional who has worked both in the government and at a top consulting firm. “And the first thing that they’ll say is: ‘Ahlan wa sahlan, welcome, and I would like to let you know that consulting firm Y prepared this presentation’ . . . They don’t even take ownership of it.”
Riyadh’s use of consultants has expanded since the crown prince’s 2016 launch of an ambitious programme to steer the Middle East’s biggest economy away from its dependence on oil revenues.
To meet demanding deadlines and tackle novel challenges, from creating a Red Sea tourist destination to establishing high-tech industries, ministries enlisted even more help from foreign consulting firms including McKinsey, Boston Consulting Group and PwC’s Strategy&.
Most Gulf bourses rise; Egypt drops | Reuters
Most Gulf bourses rise; Egypt drops | Reuters
Most stock markets in the Gulf ended higher on Sunday, amid rising oil prices, while the Saudi index slid after some weak corporate earnings.
Oil prices, a catalyst for the Gulf's financial markets, rose on Friday on stronger Chinese economic data and the ongoing Middle East conflict, with Brent settling at $84.24 a barrel.
The Qatari benchmark index (.QSI), opens new tab was up 0.1%, supported by a gain of 0.7% in Industries Qatar (IQCD.QA), opens new tab and a 0.8% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab slipped for a second straight session and ended 0.6% lower, weighed down by losses in almost all sectors.
ACWA (2082.SE), opens new tab slid 4.7%, after the private utility firm reported on Thursday a 54% decrease in its first quarter net profit sequentially. However, its quarterly profit inched up 9.8% year on year.
Among other fallers, Mobile Telecommunication Company Saudi Arabia (7030.SE), opens new tab known as Zain KSA, fell 1.5% after it posted a 94.1% decline in its quarterly net profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 3.3%, with most of its constituents posting losses, led by real estate, materials and healthcare stocks.
Talaat Mostafa Group (TMGH.CA), opens new tab slipped 6.3% and Abu Qir Fertilizers (ABUK.CA), opens new tab lost 5.2%. However, Abu Dhabi Islamic Bank Egypt (ADIB.CA), opens new tab gained 2.4% after it reported 110% surge in its quarterly net profit.
Most stock markets in the Gulf ended higher on Sunday, amid rising oil prices, while the Saudi index slid after some weak corporate earnings.
Oil prices, a catalyst for the Gulf's financial markets, rose on Friday on stronger Chinese economic data and the ongoing Middle East conflict, with Brent settling at $84.24 a barrel.
The Qatari benchmark index (.QSI), opens new tab was up 0.1%, supported by a gain of 0.7% in Industries Qatar (IQCD.QA), opens new tab and a 0.8% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab slipped for a second straight session and ended 0.6% lower, weighed down by losses in almost all sectors.
ACWA (2082.SE), opens new tab slid 4.7%, after the private utility firm reported on Thursday a 54% decrease in its first quarter net profit sequentially. However, its quarterly profit inched up 9.8% year on year.
Among other fallers, Mobile Telecommunication Company Saudi Arabia (7030.SE), opens new tab known as Zain KSA, fell 1.5% after it posted a 94.1% decline in its quarterly net profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 3.3%, with most of its constituents posting losses, led by real estate, materials and healthcare stocks.
Talaat Mostafa Group (TMGH.CA), opens new tab slipped 6.3% and Abu Qir Fertilizers (ABUK.CA), opens new tab lost 5.2%. However, Abu Dhabi Islamic Bank Egypt (ADIB.CA), opens new tab gained 2.4% after it reported 110% surge in its quarterly net profit.
#Dubai: Property prices rise for 15th consecutive quarter, affordable segment leads
Dubai: Property prices rise for 15th consecutive quarter, affordable segment leads
Property prices in Dubai rose for the 15th consecutive quarter during the January-March 2024 period, mainly driven by affordable and mid-market communities.
Analysts say that Discovery Gardens, Sports City and Dubailand apartments saw the highest increase in prices as demand from residents and foreign investors continued to keep the prices higher.
The city is seeing villa owners renovating older units and reselling at notably higher prices to keep up with the demand.
“There are no signs of capital values slowing down yet, with city-wide sales prices rising for the 15th consecutive quarter. City-wide sales prices are up by 20 per cent year-on-year and 66 per cent higher than the first quarter of 2020 (pre-Covid19),” said Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core.
Gurrapu also added that the price rise for apartments is moderate, particularly in the prime sub-markets including Palm Jumeirah, City Walk, Downtown Dubai and Dubai Marina, where sales price increases have moderated to below 20 per cent year-on-year.
Property rallies that started after the Covid-19 pandemic continued in 2024, as prices are still much more affordable than most cities around the world, attracting a large number of investors.
Property prices in Dubai rose for the 15th consecutive quarter during the January-March 2024 period, mainly driven by affordable and mid-market communities.
Analysts say that Discovery Gardens, Sports City and Dubailand apartments saw the highest increase in prices as demand from residents and foreign investors continued to keep the prices higher.
The city is seeing villa owners renovating older units and reselling at notably higher prices to keep up with the demand.
“There are no signs of capital values slowing down yet, with city-wide sales prices rising for the 15th consecutive quarter. City-wide sales prices are up by 20 per cent year-on-year and 66 per cent higher than the first quarter of 2020 (pre-Covid19),” said Prathyusha Gurrapu, director and head of research and consultancy at Cushman & Wakefield Core.
Gurrapu also added that the price rise for apartments is moderate, particularly in the prime sub-markets including Palm Jumeirah, City Walk, Downtown Dubai and Dubai Marina, where sales price increases have moderated to below 20 per cent year-on-year.
Property rallies that started after the Covid-19 pandemic continued in 2024, as prices are still much more affordable than most cities around the world, attracting a large number of investors.
#Saudi Fintech Firm Rasan, Holders Seek Up to $224 Million in IPO - Bloomberg
Saudi Fintech Firm Rasan, Holders Seek Up to $224 Million in IPO - Bloomberg
Rasan Information Technology Co. and its shareholders are looking to raise as much as 841 million riyals ($224 million) in one of the first initial public offerings by a fintech firm in Saudi Arabia.
The price range was set at 35 riyals to 37 riyals per share, according to a statement on Sunday. Rasan is selling 5.3 million new shares in the Riyadh IPO, while its shareholders are offering 17.4 million shares. The operator of insurance platform Tameeni will be valued at as much as 841 million riyals in the offering. Bookbuilding for institutional investors will run until May 16.
Rasan is the fourth company to launch an IPO in Saudi Arabia in recent weeks. The kingdom’s stock exchange expects the burst of activity to continue, with more than 10 companies waiting in the wings, its chief executive officer said on Thursday.
The offerings have been well received by investors, showing continued appetite for share sales in what’s been a busy IPO market over the past few years. Hospital group Dr. Soliman Abdul Kader Fakeeh Hospital’s offering — shaping up to be the kingdom’s biggest IPO of 2024 — was sold out in less than an hour. Water treatment firm Miahona’s offer was covered 170 times by institutional investors.
The kingdom’s technology sector, however, hasn’t seen too many listings. Food delivery firm Jahez’s heavily oversubscribed offering in late 2021 was an exception.
Apart from Rasan, buy-now-pay-later company Tabby and online cosmetics retailer Nice One are the technology firms eying IPOs, Bloomberg News has reported. Like some of its Gulf peers, Saudi Arabia is trying to diversify its stock exchange beyond banks and industrial companies that have typically dominated it.
Founded in 2016, Rasan is the kingdom’s largest insurance aggregator, operating platforms such as Tameeni and Treza. It had revenues of 256 million riyals in 2023 and income of 46 million riyals.
Saudi Fransi Capital and Morgan Stanley are acting as joint financial advisers, bookrunners and underwriters for the IPO.
Rasan Information Technology Co. and its shareholders are looking to raise as much as 841 million riyals ($224 million) in one of the first initial public offerings by a fintech firm in Saudi Arabia.
The price range was set at 35 riyals to 37 riyals per share, according to a statement on Sunday. Rasan is selling 5.3 million new shares in the Riyadh IPO, while its shareholders are offering 17.4 million shares. The operator of insurance platform Tameeni will be valued at as much as 841 million riyals in the offering. Bookbuilding for institutional investors will run until May 16.
Rasan is the fourth company to launch an IPO in Saudi Arabia in recent weeks. The kingdom’s stock exchange expects the burst of activity to continue, with more than 10 companies waiting in the wings, its chief executive officer said on Thursday.
The offerings have been well received by investors, showing continued appetite for share sales in what’s been a busy IPO market over the past few years. Hospital group Dr. Soliman Abdul Kader Fakeeh Hospital’s offering — shaping up to be the kingdom’s biggest IPO of 2024 — was sold out in less than an hour. Water treatment firm Miahona’s offer was covered 170 times by institutional investors.
The kingdom’s technology sector, however, hasn’t seen too many listings. Food delivery firm Jahez’s heavily oversubscribed offering in late 2021 was an exception.
Apart from Rasan, buy-now-pay-later company Tabby and online cosmetics retailer Nice One are the technology firms eying IPOs, Bloomberg News has reported. Like some of its Gulf peers, Saudi Arabia is trying to diversify its stock exchange beyond banks and industrial companies that have typically dominated it.
Founded in 2016, Rasan is the kingdom’s largest insurance aggregator, operating platforms such as Tameeni and Treza. It had revenues of 256 million riyals in 2023 and income of 46 million riyals.
Saudi Fransi Capital and Morgan Stanley are acting as joint financial advisers, bookrunners and underwriters for the IPO.
Friday 10 May 2024
Arab bourses' market cap hit $4.36trln at end of April 2024: Arab Monetary Fund
Arab bourses' market cap hit $4.36trln at end of April 2024: Arab Monetary Fund
The market cap of Arab stock exchanges exceeded $4.361 trillion at the end of April 2024, according to the Arab Monetary Fund (AMF).
The monthly bulletin data of the AMF said that the market value of the Abu Dhabi Securities Exchange reached $754.7 billion, while that of the Dubai Financial Market was valued at $193.4 billion, and the market value of the Saudi Stock Exchange was $2.87 trillion.
The market value of the Qatar Stock Exchange was $155.4 billion, the Kuwait Stock Exchange was about $135.6 billion, the Casablanca Stock Exchange was $68.9 billion, the Muscat Stock Exchange was $63.2 billion, and the Egyptian Stock Exchange was $34.9 billion.
The market value of the Amman Stock Exchange was $23.4 billion, the Bahrain Stock Exchange was $21.2 billion, the Beirut Stock Exchange was $17.2 billion, the Tunis Stock Exchange was $8.1 billion, the Damascus Stock Exchange was $5.9 billion, and the Palestine Stock Exchange was $4.3 billion.
The market cap of Arab stock exchanges exceeded $4.361 trillion at the end of April 2024, according to the Arab Monetary Fund (AMF).
The monthly bulletin data of the AMF said that the market value of the Abu Dhabi Securities Exchange reached $754.7 billion, while that of the Dubai Financial Market was valued at $193.4 billion, and the market value of the Saudi Stock Exchange was $2.87 trillion.
The market value of the Qatar Stock Exchange was $155.4 billion, the Kuwait Stock Exchange was about $135.6 billion, the Casablanca Stock Exchange was $68.9 billion, the Muscat Stock Exchange was $63.2 billion, and the Egyptian Stock Exchange was $34.9 billion.
The market value of the Amman Stock Exchange was $23.4 billion, the Bahrain Stock Exchange was $21.2 billion, the Beirut Stock Exchange was $17.2 billion, the Tunis Stock Exchange was $8.1 billion, the Damascus Stock Exchange was $5.9 billion, and the Palestine Stock Exchange was $4.3 billion.
Mideast Stocks: #UAE markets fall on escalating conflict in the region
Mideast Stocks: UAE markets fall on escalating conflict in the region
Stock markets in United Arab Emirates closed lower on Friday, as investors turned cautious after the latest round of negotiations between Israel and Hamas failed to achieve the ceasefire and fighting escalated in the southern most city of Gaza.
Israeli tanks captured the main road dividing the eastern and western halves of Rafah on Friday, effectively encircling the entire eastern side of the city in the southern Gaza Strip.
Abu Dhabi's benchmark index dropped 0.3%, extending losses to second session, after Abu Dhabi's largest listed firm International Holding Company shed 0.6% and real estate giant Aldar Properties dropped 1.6%.
Dubai's main index edged 0.2% down, pressured by losses in real estate sector, as blue-chip developer Emaar Properties slipped 0.9%, while its construction arm Emaar Development decreased 1.4%. Among the losers, foreign currency exchange firm Al Ansari Financial Services slumped 1.9% after the firm reported 26% decline in its first-quarter net profit to 98.7 million dirhams ($26.88 million)
However, Dubai index recorded 0.7% weekly gains, ending five week of losing streak, while Abu Dhabi posted 0.6% increase after three week of losses, according to LSEG data.
Oil prices - a key catalyst for the Gulf's financial market- drifted 0.6% higher to %84.39 a barrel after data this week signalled growing demand in the U.S. and China, the world's two largest crude users.
Israeli tanks captured the main road dividing the eastern and western halves of Rafah on Friday, effectively encircling the entire eastern side of the city in the southern Gaza Strip.
Abu Dhabi's benchmark index dropped 0.3%, extending losses to second session, after Abu Dhabi's largest listed firm International Holding Company shed 0.6% and real estate giant Aldar Properties dropped 1.6%.
Dubai's main index edged 0.2% down, pressured by losses in real estate sector, as blue-chip developer Emaar Properties slipped 0.9%, while its construction arm Emaar Development decreased 1.4%. Among the losers, foreign currency exchange firm Al Ansari Financial Services slumped 1.9% after the firm reported 26% decline in its first-quarter net profit to 98.7 million dirhams ($26.88 million)
However, Dubai index recorded 0.7% weekly gains, ending five week of losing streak, while Abu Dhabi posted 0.6% increase after three week of losses, according to LSEG data.
Oil prices - a key catalyst for the Gulf's financial market- drifted 0.6% higher to %84.39 a barrel after data this week signalled growing demand in the U.S. and China, the world's two largest crude users.
Mubadala Capital's $3 bln Fortress bid clears key US regulatory hurdle, FT reports | Reuters
Mubadala Capital's $3 bln Fortress bid clears key US regulatory hurdle, FT reports | Reuters
Abu Dhabi sovereign investor Mubadala Capital's $3 billion bid for New York-based Fortress Investment Group has cleared, opens new tab a significant U.S. regulatory hurdle after the parties agreed to important concessions, the Financial Times reported on Friday.
The Committee on Foreign Investment in the United States (CFIUS) approved Fortress' sale of a majority equity interest to Mubadala, the newspaper said, citing three people familiar with the matter.
The approval comes as Mubadala agreed to let Fortress commit to keeping technology and data in the U.S after it earlier pledged to waive day to day control over the investment group, the report said, adding that the concession comes amid Washington's increased focus on protecting US intellectual property.
CFIUS and Mubadala did not immediately respond to a Reuters request for comment, while Fortress declined to comment on the report.
Abu Dhabi's Mubadala in May 2023, said it would buy a majority stake in Fortress Investment from SoftBank Group Corp (9984.T), opens new tab.
After the deal is completed, Fortress' management will own a 30% stake, with Mubadala holding the rest.
Abu Dhabi sovereign investor Mubadala Capital's $3 billion bid for New York-based Fortress Investment Group has cleared, opens new tab a significant U.S. regulatory hurdle after the parties agreed to important concessions, the Financial Times reported on Friday.
The Committee on Foreign Investment in the United States (CFIUS) approved Fortress' sale of a majority equity interest to Mubadala, the newspaper said, citing three people familiar with the matter.
The approval comes as Mubadala agreed to let Fortress commit to keeping technology and data in the U.S after it earlier pledged to waive day to day control over the investment group, the report said, adding that the concession comes amid Washington's increased focus on protecting US intellectual property.
CFIUS and Mubadala did not immediately respond to a Reuters request for comment, while Fortress declined to comment on the report.
Abu Dhabi's Mubadala in May 2023, said it would buy a majority stake in Fortress Investment from SoftBank Group Corp (9984.T), opens new tab.
After the deal is completed, Fortress' management will own a 30% stake, with Mubadala holding the rest.
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