Abu Dhabi's Masdar in US 'for the long term'
Abu Dhabi's Masdar is aiming to “grow beyond tenfold” in the US within the next three to seven years, the head of its Americas affiliate said on Tuesday.
Speaking during a panel session at the 2024 SelectUSA Investor Summit, Masdar Americas president and chief executive Philip Haddad said the clean energy company was looking to achieve this growth by investing in development and operating platforms.
Masdar in March agreed to acquire the US clean renewable energy power producer Terra-Gen – one of the largest independent renewable energy producers in the US – from Energy Capital Partners.
Masdar hopes to complete the deal by the end of this year.
“We're here for the long term … and it's a very exciting time in our industry to be in the US especially,” Mr Haddad said.
Masdar made its first investment in the US energy market in 2019. The Abu Dhabi-based company says the US will play an integral role as Masdar looks to build a global renewable energy portfolio of at least 100 gigawatt capacity by 2030.
“Our biggest source of growth will be in the US,” Mr Haddad added.
The company also acquired a 50 per cent stake in California's Big Beau project last year.
Masdar's US portfolio consists of four utility-scale wind projects in Texas and New Mexico, as well as five solar projects in California. The Big Beau project is one of two that features battery energy storage systems, the company says.
Mr Haddad highlighted several factors he said made the US a favourable environment for the company, including clean energy credits from President Joe Biden's Inflation Reduction Act, as well as the US energy transition and the country's talent pool.
Mr Haddad also noted “micro challenges” for the company in the US including permitting, grid enhancement and supply-chain issues.
The Masdar Americas chief executive was part of a large UAE contingent to descend upon the Investor Summit, an annual event looking to attract foreign direct investment into the US.
Dr Thani Al Zeyoudi, Minister of State for Foreign Trade, led a group of 35 Emirate businesses, the largest delegation the UAE has sent to the event.
In a statement, the UAE embassy in Washington said the visit underscores the Emirates' commitment to strengthening economic ties with the US, where it has already invested more than $1 trillion.
The delegation was also led by Martina Strong, US ambassador to the UAE.
Wednesday 26 June 2024
PIF unit #Saudi Global Ports, China’s SANY sign $1.87bln investment deal
PIF unit Saudi Global Ports, China’s SANY sign $1.87bln investment deal
The Saudi Global Ports Company (SGP), a unit of the sovereign-backed Public Investment Fund (PIF) of Saudi Arabia, and China’s SANY, a heavy equipment manufacturer, have signed a deal worth 7 billion riyals ($1.865 billion), which will cover investments in sustainable operations at the kingdom’s ports.
The deal will include SANY supplying 80 electric trucks to the King Abdulaziz Port in Dammam, the largest such contract signed by the company, according to a statement by Saudi’s General Ports Authority (Mawani).
Omar bin Talal Hariri, President of Maani, said the deal contributes to the development and modernisation of King Abdulaziz Port in Dammam to be a flexible and sustainable logistical centre.
This authority further stated the move is a part of the kingdom’s strategy to position itself as a major global logistics hub, connecting three continents, in line with its National Transport and Logistics Strategy.
The Saudi Global Ports Company (SGP), a unit of the sovereign-backed Public Investment Fund (PIF) of Saudi Arabia, and China’s SANY, a heavy equipment manufacturer, have signed a deal worth 7 billion riyals ($1.865 billion), which will cover investments in sustainable operations at the kingdom’s ports.
The deal will include SANY supplying 80 electric trucks to the King Abdulaziz Port in Dammam, the largest such contract signed by the company, according to a statement by Saudi’s General Ports Authority (Mawani).
Omar bin Talal Hariri, President of Maani, said the deal contributes to the development and modernisation of King Abdulaziz Port in Dammam to be a flexible and sustainable logistical centre.
This authority further stated the move is a part of the kingdom’s strategy to position itself as a major global logistics hub, connecting three continents, in line with its National Transport and Logistics Strategy.
Most Gulf shares gain in early trade as oil steadies | Reuters
Most Gulf shares gain in early trade as oil steadies | Reuters
Most stock markets in the Gulf rose in early trading on Wednesday, as oil prices steadied, while investors braced for a key U.S. inflation reading later this week.
Oil prices, the main driver of the Gulf's financial markets, rose 0.3% on the possibility of an inventory drawdown and geopolitical risks in the Middle East, with Brent trading at $85.2 per barrel by 0813 GMT.
Most stock markets in the Gulf rose in early trading on Wednesday, as oil prices steadied, while investors braced for a key U.S. inflation reading later this week.
Oil prices, the main driver of the Gulf's financial markets, rose 0.3% on the possibility of an inventory drawdown and geopolitical risks in the Middle East, with Brent trading at $85.2 per barrel by 0813 GMT.
The Qatari benchmark index (.QSI), opens new tab was up 0.1%, helped by gains in utilities, finance and real estate sectors, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.8% and Qatar Electricity and Water (QEWC.QA), opens new tab adding 1%.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, supported by a 1.5% gain in real estate investment company Eshraq Investment (ESHRAQ.AD), opens new tab and a 0.7% rise in First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, supported by a 1.5% gain in real estate investment company Eshraq Investment (ESHRAQ.AD), opens new tab and a 0.7% rise in First Abu Dhabi Bank(FAB.AD), opens new tab, the UAE's largest lender.
Dubai's benchmark stock index (.DFMGI), opens new tab bounced back after two sessions of losses and rose 0.2% with most sectors in the green. Toll-road operator Salik Co (SALIK.DU), opens new tab gained 1.2% and National Central Cooling (TABR.DU), opens new tab advanced 2.7%.
Meanwhile, the UAE has sold bonds worth $1.5 billion at a yield of 60 basis points over U.S. Treasuries after demand exceeded $5.75 billion, an arranging bank document showed on Tuesday.
Meanwhile, the UAE has sold bonds worth $1.5 billion at a yield of 60 basis points over U.S. Treasuries after demand exceeded $5.75 billion, an arranging bank document showed on Tuesday.
Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.2%, pressured by losses in IT, finance, utilities and materials sectors. ADES Holding (2382.SE), opens new tab slipped 2.4% and Riyad Bank (1010.SE), opens new tab dropped 1.4%.
Investors are awaiting the U.S. personal consumption expenditures (PCE) price index - the Federal Reserve's favoured gauge of inflation - due on Friday, which could provide further clues on the Fed's rate cut trajectory.
Most Gulf currencies are pegged to the dollar and any change to the U.S. monetary policy is usually followed by the central banks of Saudi Arabia, the UAE and Qatar.
Most Gulf currencies are pegged to the dollar and any change to the U.S. monetary policy is usually followed by the central banks of Saudi Arabia, the UAE and Qatar.
Tuesday 25 June 2024
#Qatar extends gains in 16-day rally while most Gulf shares dip | Reuters
Qatar extends gains in 16-day rally while most Gulf shares dip | Reuters
Most equities in the Gulf slipped on Tuesday ahead of a key U.S. inflation print later this week, with Abu Dhabi shares falling after two days in the green while the Qatar index continued its upward momentum.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down 0.2% after two straight sessions of gains, pressured by a 0.9% drop in conglomerate International Holding Co (IHC.AD), opens new tab and a 1.2% decline in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab.
RAK White Cement (RAKWCT.AD), opens new tab advanced 3.6% after the Aditya Birla Group-owned UltraTech Middle East Investment acquired a 25% stake in the cements maker and raised its ownership to 54.4%.
Dubai's benchmark stock index (.DFMGI), opens new tab was slightly down with blue-chip developer Emaar Properties (EMAR.DU), opens new tab sliding 1.1% and Mashreqbank (MASB.DU), opens new tab dropping 1%, while Dubai Islamic Bank (DISB.DU), opens new tab and tolls operator Salik Company (SALIK.DU), opens new tab gained 1.2% each.
The Qatari benchmark index (.QSI), opens new tab advanced 0.6%, extending its gains to a sixteenth session, the longest rally in nearly 18 years.
"The surge, driven by robust domestic buying, follows a period of decline that saw stock prices reaching multi-year lows," said Hani Abuagla, senior market analyst at XTB MENA.
"The rebound in natural gas prices and improvements in the non-oil private sector activity have boosted the market sentiment."
Qatar National Bank, the region's largest lender, gained 1.1% and Industries Qatar (IQCD.QA), opens new tab added 0.5%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors. United International Transportation Company (4260.SE), opens new tab advanced 4.3% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.
Among other gainers, Methanol Chemicals (2001.SE), opens new tab climbed 5.2%. The chemicals producer, Methanol has signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.
Investors await U.S. personal consumption expenditures (PCE) price index due on Friday for clues on the Federal Reserve's interest rate policy.
Most equities in the Gulf slipped on Tuesday ahead of a key U.S. inflation print later this week, with Abu Dhabi shares falling after two days in the green while the Qatar index continued its upward momentum.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down 0.2% after two straight sessions of gains, pressured by a 0.9% drop in conglomerate International Holding Co (IHC.AD), opens new tab and a 1.2% decline in Abu Dhabi Islamic Bank (ADIB.AD), opens new tab.
RAK White Cement (RAKWCT.AD), opens new tab advanced 3.6% after the Aditya Birla Group-owned UltraTech Middle East Investment acquired a 25% stake in the cements maker and raised its ownership to 54.4%.
Dubai's benchmark stock index (.DFMGI), opens new tab was slightly down with blue-chip developer Emaar Properties (EMAR.DU), opens new tab sliding 1.1% and Mashreqbank (MASB.DU), opens new tab dropping 1%, while Dubai Islamic Bank (DISB.DU), opens new tab and tolls operator Salik Company (SALIK.DU), opens new tab gained 1.2% each.
The Qatari benchmark index (.QSI), opens new tab advanced 0.6%, extending its gains to a sixteenth session, the longest rally in nearly 18 years.
"The surge, driven by robust domestic buying, follows a period of decline that saw stock prices reaching multi-year lows," said Hani Abuagla, senior market analyst at XTB MENA.
"The rebound in natural gas prices and improvements in the non-oil private sector activity have boosted the market sentiment."
Qatar National Bank, the region's largest lender, gained 1.1% and Industries Qatar (IQCD.QA), opens new tab added 0.5%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3%, supported by gains in most sectors. United International Transportation Company (4260.SE), opens new tab advanced 4.3% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.
Among other gainers, Methanol Chemicals (2001.SE), opens new tab climbed 5.2%. The chemicals producer, Methanol has signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.
Investors await U.S. personal consumption expenditures (PCE) price index due on Friday for clues on the Federal Reserve's interest rate policy.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 1.3% with all of its constituents posting gains. GB Corp (GBCO.CA), opens new tab surged 15.8% and Talaat Mostafa Group (TMGH.CA), opens new tab climbed 4.3%.
Meanwhile, Egypt and the European Union are set to sign a 1 billion euro ($1.07 billion) agreement for macro financial assistance, the Egyptian Ministry of International Cooperation said.
Meanwhile, Egypt and the European Union are set to sign a 1 billion euro ($1.07 billion) agreement for macro financial assistance, the Egyptian Ministry of International Cooperation said.
#UAE to Follow Gulf Neighbors With First Eurobond Since September - Bloomberg
UAE to Follow Gulf Neighbors With First Eurobond Since September - Bloomberg
The United Arab Emirates is selling its first eurobonds since September, offering investors 10-year dollar debt.
The final terms, including the size and yield, will probably be announced later on Tuesday, according to a person familiar with the matter.
The oil-rich UAE has one of the highest credit ratings of any sovereign. It’s rated Aa2 by Moody’s Investors Service, the same as the UK and South Korea.
This will be only the country’s fourth eurobond as a federal entity. Though, Abu Dhabi, the capital, sold $5 billion of debt in April. The 10-year portion of that deal was priced with a yield of 5.04% and a spread of 45 basis points over comparable US Treasuries. It currently trades around 4.8%.
The UAE government has enjoyed a boom in the past few years thanks to high oil and natural-gas revenues. It’s one of the world’s richest countries and among just a few to mange over $1 trillion in sovereign-wealth funds.
While it doesn’t need to raise money from the bond market, the new deal could be aimed at improving liquidity in the debt curve, according to Zeina Rizk, co-head of fixed income at Amwal Capital Partners in Dubai. Investors are often more likely to trade a country’s bonds if it has plenty of maturities outstanding.
“It might just be to remain in the market, to keep the curve liquid,” Rizk said. “There is a lot of technical demand.”
Gulf nations have been particularly active in the international bond market this year, taking advantage of high demand. Saudi Arabia has sold $17 billion of debt, the most of any emerging market. Qatar and Bahrain have also tapped the market.
Credit Agricole SA, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Charted Plc are the main banks arranging the UAE’s bond.
The United Arab Emirates is selling its first eurobonds since September, offering investors 10-year dollar debt.
The final terms, including the size and yield, will probably be announced later on Tuesday, according to a person familiar with the matter.
The oil-rich UAE has one of the highest credit ratings of any sovereign. It’s rated Aa2 by Moody’s Investors Service, the same as the UK and South Korea.
This will be only the country’s fourth eurobond as a federal entity. Though, Abu Dhabi, the capital, sold $5 billion of debt in April. The 10-year portion of that deal was priced with a yield of 5.04% and a spread of 45 basis points over comparable US Treasuries. It currently trades around 4.8%.
The UAE government has enjoyed a boom in the past few years thanks to high oil and natural-gas revenues. It’s one of the world’s richest countries and among just a few to mange over $1 trillion in sovereign-wealth funds.
While it doesn’t need to raise money from the bond market, the new deal could be aimed at improving liquidity in the debt curve, according to Zeina Rizk, co-head of fixed income at Amwal Capital Partners in Dubai. Investors are often more likely to trade a country’s bonds if it has plenty of maturities outstanding.
“It might just be to remain in the market, to keep the curve liquid,” Rizk said. “There is a lot of technical demand.”
Gulf nations have been particularly active in the international bond market this year, taking advantage of high demand. Saudi Arabia has sold $17 billion of debt, the most of any emerging market. Qatar and Bahrain have also tapped the market.
Credit Agricole SA, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Charted Plc are the main banks arranging the UAE’s bond.
#SaudiArabia Set to Become World’s Biggest Construction Market - Bloomberg
Saudi Arabia Set to Become World’s Biggest Construction Market - Bloomberg
Saudi Arabia is set to become the world’s largest construction market as the kingdom pours vast amounts of money into projects aimed at overhauling and diversifying the economy, according to real estate consultancy group Knight Frank.
The country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels, the London-based firm said in a research report published Monday.
Much of that is likely to come from residential property and so-called giga projects, alongside other developments that form part of Crown Prince Mohammed bin Salman’s mission to transform the oil-dependent economy. The plan, known as Vision 2030, will need to cater for a growing population to succeed, as well as an expected influx of foreign tourists.
“We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.
Since the Vision 2030 initiative was introduced eight years ago, Saudi Arabia has launched projects with a value of more than $1.25 trillion, according to Knight Frank’s research.
While most are not yet delivered and some have been downsized, the kingdom is working on overdrive as the 2030 deadline edges ever closer.
In 2023 alone, more than $140 billion of construction contract awards were granted, according to Knight Frank. The majority of those were in Riyadh, where Saudi Arabia aims to grow its population to 10 million by 2030.
The capital city has become a major focal point as the kingdom prepares to host the World Expo in 2030 — and possibly the World Cup in 2034.
Saudi Arabia is set to become the world’s largest construction market as the kingdom pours vast amounts of money into projects aimed at overhauling and diversifying the economy, according to real estate consultancy group Knight Frank.
The country’s total construction output value is forecast to reach $181.5 billion by the end of 2028, up almost 30% from 2023 levels, the London-based firm said in a research report published Monday.
Much of that is likely to come from residential property and so-called giga projects, alongside other developments that form part of Crown Prince Mohammed bin Salman’s mission to transform the oil-dependent economy. The plan, known as Vision 2030, will need to cater for a growing population to succeed, as well as an expected influx of foreign tourists.
“We are currently witnessing a historical transformation unfolding in Saudi Arabia with construction projects standing out in their design scale and value,” said Mohamed Nabil, regional partner and head of project and development services for the Middle East and North Africa at Knight Frank.
Since the Vision 2030 initiative was introduced eight years ago, Saudi Arabia has launched projects with a value of more than $1.25 trillion, according to Knight Frank’s research.
While most are not yet delivered and some have been downsized, the kingdom is working on overdrive as the 2030 deadline edges ever closer.
In 2023 alone, more than $140 billion of construction contract awards were granted, according to Knight Frank. The majority of those were in Riyadh, where Saudi Arabia aims to grow its population to 10 million by 2030.
The capital city has become a major focal point as the kingdom prepares to host the World Expo in 2030 — and possibly the World Cup in 2034.
Most Gulf bourses up in early trade; US inflation data eyed | Reuters
Most Gulf bourses up in early trade; US inflation data eyed | Reuters
Equities in the Gulf were up in early trading on Tuesday, ahead of a key U.S. inflation print later this week, while the Qatar index continued its upward momentum.
The Qatari benchmark index (.QSI), opens new tab advanced 0.7%, extending its rally to a sixteenth session, lifted by gains in sectors such as energy, materials and finance stocks.
Qatar Islamic Bank (QISB.QA), opens new tab rose 1.6% and Qatar Gas Transport (QGTS.QA), opens new tab added 1.3%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.2%, after oscillating between gains and losses in early trade.
Equities in the Gulf were up in early trading on Tuesday, ahead of a key U.S. inflation print later this week, while the Qatar index continued its upward momentum.
The Qatari benchmark index (.QSI), opens new tab advanced 0.7%, extending its rally to a sixteenth session, lifted by gains in sectors such as energy, materials and finance stocks.
Qatar Islamic Bank (QISB.QA), opens new tab rose 1.6% and Qatar Gas Transport (QGTS.QA), opens new tab added 1.3%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.2%, after oscillating between gains and losses in early trade.
Saudi National Bank, the kingdom's largest lender, slipped 1.4% while United International Transportation Company (4260.SE), opens new tab, also known as Bugdet Saudi, advanced 4.2% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.
Among other gainers, Methanol Chemicals (2001.SE), opens new tab rose 4.6% after the methanol derivatives producer signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, aided by a 1.4% gain in Abu Dhabi Commercial Bank (ADCB.AD), opens new tab and a 3.3% rise in Alef Education(ALEFEDT.AD), opens new tab.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was up 0.2%, aided by a 1.4% gain in Abu Dhabi Commercial Bank (ADCB.AD), opens new tab and a 3.3% rise in Alef Education(ALEFEDT.AD), opens new tab.
ADNOC Drilling (ADNOCDRILL.AD), opens new tab gained 0.7% after the driller confirmed a new enhanced dividend policy that will see at least $4.8 billion distributed to shareholders between 2024 and 2028.
Dubai's benchmark stock index (.DFMGI), opens new tab was little changed, with tolls operator Salik Company (SALIK.DU), opens new tab gaining 1.2% and Dubai Islamic Bank (DISB.DU), opens new tab rising 0.9%, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab slid 0.9%.
In the U.S., the personal consumption expenditures (PCE) price index is due on Friday. Softer data would likely reinforce market bets of a Federal Reserve rate cut as early as September, with futures currently pricing in a 65% chance.
In the U.S., the personal consumption expenditures (PCE) price index is due on Friday. Softer data would likely reinforce market bets of a Federal Reserve rate cut as early as September, with futures currently pricing in a 65% chance.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Monday 24 June 2024
Jain Global Raises $5.3 Billion, Secures Cash From #AbuDhabi - Bloomberg
Bobby Jain Raises $5.3 Billion in Biggest Hedge Fund Debut Since 2018 - Bloomberg
Bobby Jain has gathered $5.3 billion in commitments for his new multistrategy hedge fund, marking the biggest fundraising haul since ExodusPoint Capital Management’s record debut.
The firm won backing from sovereign wealth giant Abu Dhabi Investment Authority, and has lined up bank wealth platforms including Morgan Stanley, Goldman Sachs Group Inc. and HSBC Holdings Plc, according to people familiar with the matter. Jain Global will start trading July 1.
The firm also has endowments, foundations, family offices and pensions as investors.
Representatives for Jain Global, ADIA, Goldman Sachs and Morgan Stanley declined to comment. HSBC didn’t reply to a request for comment.
Bobby Jain has gathered $5.3 billion in commitments for his new multistrategy hedge fund, marking the biggest fundraising haul since ExodusPoint Capital Management’s record debut.
The firm won backing from sovereign wealth giant Abu Dhabi Investment Authority, and has lined up bank wealth platforms including Morgan Stanley, Goldman Sachs Group Inc. and HSBC Holdings Plc, according to people familiar with the matter. Jain Global will start trading July 1.
The firm also has endowments, foundations, family offices and pensions as investors.
Representatives for Jain Global, ADIA, Goldman Sachs and Morgan Stanley declined to comment. HSBC didn’t reply to a request for comment.
#Kuwait Finance House Said to Weigh Bid for Stake in #Saudi Lender - Bloomberg
Kuwait Finance House Said to Weigh Bid for Stake in Saudi Lender - Bloomberg
Kuwait Finance House KSCP has been exploring the purchase of a significant stake in Saudi Investment Bank as dealmaking activity heats up in the Middle East, according to people familiar with the matter.
The Kuwaiti lender has been studying a potential investment to help bolster its regional presence, the people said, asking not to be identified as the information is private. Shares of Saudi Investment Bank are little changed in Riyadh trading this year, giving the company a market value of about $4.3 billion.
Banking consolidation has picked up across the Middle East as lenders have sought to gain more scale in order to better compete with rivals. One of the last major deals also involved KFH, which agreed in 2022 to acquire Bahrain’s Ahli United Bank following nearly four years of negotiations.
Deliberations are ongoing and there’s no certainty they will result in a deal, the people said. Spokespeople for KFH and the Saudi Investment Bank didn’t respond to requests for comment.
Saudi Investment Bank previously counted JPMorgan Chase & Co. as one of its biggest shareholders until the US bank sold off its stake in 2018.
Kuwait Finance House KSCP has been exploring the purchase of a significant stake in Saudi Investment Bank as dealmaking activity heats up in the Middle East, according to people familiar with the matter.
The Kuwaiti lender has been studying a potential investment to help bolster its regional presence, the people said, asking not to be identified as the information is private. Shares of Saudi Investment Bank are little changed in Riyadh trading this year, giving the company a market value of about $4.3 billion.
Banking consolidation has picked up across the Middle East as lenders have sought to gain more scale in order to better compete with rivals. One of the last major deals also involved KFH, which agreed in 2022 to acquire Bahrain’s Ahli United Bank following nearly four years of negotiations.
Deliberations are ongoing and there’s no certainty they will result in a deal, the people said. Spokespeople for KFH and the Saudi Investment Bank didn’t respond to requests for comment.
Saudi Investment Bank previously counted JPMorgan Chase & Co. as one of its biggest shareholders until the US bank sold off its stake in 2018.
#Saudi milling company Arabian Mills plans to list 30% stake in IPO, CMA says | Reuters
Saudi milling company Arabian Mills plans to list 30% stake in IPO, CMA says | Reuters
Saudi Arabia's Arabian Mills for Food Products is planning to list 15.4 million shares equal to a 30% stake on its local bourse, according to a statement by the Saudi capital markets authority (CMA) on Monday.
Saudi regulator CMA said it had approved the firm's public listing application, adding Arabian Mills would publish the IPO prospectus "within sufficient time prior to the start of the subscription period."
CMA did not provide a timeline for the listing.
Arabian Mills, previously known as Second Milling Company (MC2), has a wheat milling capacity of around 4,920 tons per day through his three branches in Riyadh, Jazan and Hail.
Arabian Mills was part of a wider privatisation programme under Saudi Arabia's Vision 2030 aimed at weaning the economy off oil.
It was sold for 2.13 billion riyals ($568 million) in 2021 by the Saudi Grains Organization to a consortium comprising Abdulaziz Al-Ajlan and Bros Sons Company for Trading and Real Estate Investment, Al-Rajhi International Investment Company, Nadec and Olam International Company.
Arabian Mills would add to a string of IPOs in the Gulf country and follow the listing in March of Modern Mills - previously known as MC3 - when the company raised $314.6 million by selling a 30% stake.
Saudi Arabian milling firm MC4 is also looking to go public this year, according to a report.
Saudi Arabia's Arabian Mills for Food Products is planning to list 15.4 million shares equal to a 30% stake on its local bourse, according to a statement by the Saudi capital markets authority (CMA) on Monday.
Saudi regulator CMA said it had approved the firm's public listing application, adding Arabian Mills would publish the IPO prospectus "within sufficient time prior to the start of the subscription period."
CMA did not provide a timeline for the listing.
Arabian Mills, previously known as Second Milling Company (MC2), has a wheat milling capacity of around 4,920 tons per day through his three branches in Riyadh, Jazan and Hail.
Arabian Mills was part of a wider privatisation programme under Saudi Arabia's Vision 2030 aimed at weaning the economy off oil.
It was sold for 2.13 billion riyals ($568 million) in 2021 by the Saudi Grains Organization to a consortium comprising Abdulaziz Al-Ajlan and Bros Sons Company for Trading and Real Estate Investment, Al-Rajhi International Investment Company, Nadec and Olam International Company.
Arabian Mills would add to a string of IPOs in the Gulf country and follow the listing in March of Modern Mills - previously known as MC3 - when the company raised $314.6 million by selling a 30% stake.
Saudi Arabian milling firm MC4 is also looking to go public this year, according to a report.
Most Gulf shares drop, #Qatar extends rally to 15th session
Most Gulf shares drop, Qatar extends rally to 15th session
Most stock markets in the Gulf ended lower on Monday as investors awaited a crucial U.S. inflation reading and comments from Federal Reserve officials this week.
Dubai's benchmark stock index .DFMGI retreated after the previous session's gains, slipping 0.3%. Business park operator Tecom Group TECOM.DU dropped 2.2%, and Dubai Islamic Bank DISB.DU slid 1.7%.
Spinneys 1961 Holding SPINNEYS.DU climbed 3.6% after the grocery retailer opened a store in Saudi Arabia and expected to open 12 more by 2028.
Saudi Arabia's benchmark stock index .TASI was down 0.3% after the previous session's gains, with most sectors in the red. ACWA Power 2082.SE declined 3.6% and Dr Sulaiman Al Habib Medical Services 4013.SE slipped 3.1%.
The Abu Dhabi benchmark index .FTFADGI was up 0.1%, with Multiply Group MULTIPLY.AD rising 4.1% and First Abu Dhabi BankFAB.AD, the UAE's largest lender, climbing 1.4%.
Among other gainers, ADNOC Distribution ADNOCDIST.AD and ADNOC Logistics ADNOCLS.AD added 0.6% and 1.2%, respectively.
Their owner, energy giant Abu Dhabi National Oil Co (ADNOC), and German chemicals firm Covestro 1COV.DE have entered into concrete negotiations on a potential takeover deal worth 11.7 billion euros.
The Qatari benchmark index .QSI was up 0.6%, extending its gains for a fifteenth session, the longest rally in a year.
Qatar National Bank QNBK.QA, the region's largest lender, added 0.8% and Qatari telecoms group Ooredo ORDS.QA advanced 1.4%.
Nvidia NVDA.O has signed a deal to deploy its artificial intelligence technology at data centres owned by Ooredoo in five Middle Eastern countries.
In the U.S., the personal consumption expenditures (PCE) price index was due on Friday. A low result would likely reinforce market bets on a Fed rate cut as early as September, which futures currently price as a 65% prospect.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index .EGX30 snapped a five-session winning streak to fall 0.6%, with most sectors posting losses.
Telecom Egypt ETEL.CA slid 6.6% and El Sewedy Electric SWDY.CA dropped 1.2%. GB Corp GBCO.CA and Misr Fertilizers Production MFPC.CA climbed 6.5% and 3.4%, respectively.
The World Bank announced on Monday $700 million of budget support for Egypt, part of a 3-year, $6 billion programme that the bank pledged earlier this year.
Most stock markets in the Gulf ended lower on Monday as investors awaited a crucial U.S. inflation reading and comments from Federal Reserve officials this week.
Dubai's benchmark stock index .DFMGI retreated after the previous session's gains, slipping 0.3%. Business park operator Tecom Group TECOM.DU dropped 2.2%, and Dubai Islamic Bank DISB.DU slid 1.7%.
Spinneys 1961 Holding SPINNEYS.DU climbed 3.6% after the grocery retailer opened a store in Saudi Arabia and expected to open 12 more by 2028.
Saudi Arabia's benchmark stock index .TASI was down 0.3% after the previous session's gains, with most sectors in the red. ACWA Power 2082.SE declined 3.6% and Dr Sulaiman Al Habib Medical Services 4013.SE slipped 3.1%.
The Abu Dhabi benchmark index .FTFADGI was up 0.1%, with Multiply Group MULTIPLY.AD rising 4.1% and First Abu Dhabi BankFAB.AD, the UAE's largest lender, climbing 1.4%.
Among other gainers, ADNOC Distribution ADNOCDIST.AD and ADNOC Logistics ADNOCLS.AD added 0.6% and 1.2%, respectively.
Their owner, energy giant Abu Dhabi National Oil Co (ADNOC), and German chemicals firm Covestro 1COV.DE have entered into concrete negotiations on a potential takeover deal worth 11.7 billion euros.
The Qatari benchmark index .QSI was up 0.6%, extending its gains for a fifteenth session, the longest rally in a year.
Qatar National Bank QNBK.QA, the region's largest lender, added 0.8% and Qatari telecoms group Ooredo ORDS.QA advanced 1.4%.
Nvidia NVDA.O has signed a deal to deploy its artificial intelligence technology at data centres owned by Ooredoo in five Middle Eastern countries.
In the U.S., the personal consumption expenditures (PCE) price index was due on Friday. A low result would likely reinforce market bets on a Fed rate cut as early as September, which futures currently price as a 65% prospect.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index .EGX30 snapped a five-session winning streak to fall 0.6%, with most sectors posting losses.
Telecom Egypt ETEL.CA slid 6.6% and El Sewedy Electric SWDY.CA dropped 1.2%. GB Corp GBCO.CA and Misr Fertilizers Production MFPC.CA climbed 6.5% and 3.4%, respectively.
The World Bank announced on Monday $700 million of budget support for Egypt, part of a 3-year, $6 billion programme that the bank pledged earlier this year.
China Lures $2.3 Billion of Middle East Sovereign Money in 2023, HKMA Chief Says - Bloomberg
China Lures $2.3 Billion of Middle East Sovereign Money in 2023, HKMA Chief Says - Bloomberg
About $2.3 billion of Middle East sovereign wealth fund capital flowed into the greater China market last year, Hong Kong Monetary Authority’s Kenneth Hui said at a conference on Monday.
The number was up from about $100 million in 2022, external executive director of HKMA Hui said, citing data from Global SWF. Multiple financial institutions and regulators have made trips to the gulf region to engage with the market, which traditionally was served by Europe before, he added.
“This money is important because they often create good demonstrative effect to their local industry and the general public” to tap the Chinese and Hong Kong market, Hui said. “This is the kind of money that we want to see coming in, not just for its own sake, but also for the wider impact.”
Hong Kong has been trying to woo Saudi Arabia and other Middle Eastern countries for new funding to revive its stock market. The city saw a collapse in initial public offerings last year, dented by volatile markets and strains between China and the US. IPO proceeds in 2023 were the lowest in more than two decades.
About $2.3 billion of Middle East sovereign wealth fund capital flowed into the greater China market last year, Hong Kong Monetary Authority’s Kenneth Hui said at a conference on Monday.
The number was up from about $100 million in 2022, external executive director of HKMA Hui said, citing data from Global SWF. Multiple financial institutions and regulators have made trips to the gulf region to engage with the market, which traditionally was served by Europe before, he added.
“This money is important because they often create good demonstrative effect to their local industry and the general public” to tap the Chinese and Hong Kong market, Hui said. “This is the kind of money that we want to see coming in, not just for its own sake, but also for the wider impact.”
Hong Kong has been trying to woo Saudi Arabia and other Middle Eastern countries for new funding to revive its stock market. The city saw a collapse in initial public offerings last year, dented by volatile markets and strains between China and the US. IPO proceeds in 2023 were the lowest in more than two decades.
GIP, Snam Said to Mull Exit From $21 Billion Adnoc Gas Pipe Unit - Bloomberg
GIP, Snam Said to Mull Exit From $21 Billion Adnoc Gas Pipe Unit - Bloomberg
Global Infrastructure Partners and Italy’s Snam SpA are considering a potential sale of their stakes in Abu Dhabi National Oil Co.’s gas pipeline unit, according to people familiar with the matter.
GIP, the biggest foreign shareholder in Adnoc Gas Pipeline Assets LLC, is working with advisers as it prepares to gauge interest in the holding, the people said. Snam, an Italian gas network operator that owns about 6%, has also been weighing an exit, according to the people.
Abu Dhabi investment firm Lunate has reached out to some of Adnoc Gas Pipeline’s key owners to express interest in buying their stakes, the people said. Some of the investors are still deliberating whether to sell their holdings or keep them for longer, the people said, asking not to be identified discussing private information.
GIP led a group of foreign buyers that agreed in 2020 to invest in the pipeline network at a valuation of nearly $21 billion including debt. The consortium — which also included Brookfield Asset Management, Singapore sovereign wealth fund GIC Pte, Ontario Teachers’ Pension Plan and South Korea’s NH Investment & Securities Co. — bought a 49% stake for about $10.1 billion.
Under the terms of that agreement, the international partners gained an interest in the pipeline assets through a new subsidiary, Adnoc Gas Pipeline, for 20 years with guaranteed minimum returns. Abu Dhabi has also added some local funds into the ownership structure.
Lunate was set up by an arm of Sheikh Tahnoon bin Zayed Al Nahyan’s listed conglomerate, International Holding Co., and is backed by investors including Abu Dhabi wealth fund ADQ. The firm, which manages about $105 billion, agreed earlier this year to buy a 40% stake in Adnoc’s oil pipeline network from BlackRock Inc. and KKR & Co.
Deliberations are ongoing, and there’s no certainty they will result in a transaction, the people said. Representatives for Adnoc, GIP, Lunate and Snam declined to comment.
Global Infrastructure Partners and Italy’s Snam SpA are considering a potential sale of their stakes in Abu Dhabi National Oil Co.’s gas pipeline unit, according to people familiar with the matter.
GIP, the biggest foreign shareholder in Adnoc Gas Pipeline Assets LLC, is working with advisers as it prepares to gauge interest in the holding, the people said. Snam, an Italian gas network operator that owns about 6%, has also been weighing an exit, according to the people.
Abu Dhabi investment firm Lunate has reached out to some of Adnoc Gas Pipeline’s key owners to express interest in buying their stakes, the people said. Some of the investors are still deliberating whether to sell their holdings or keep them for longer, the people said, asking not to be identified discussing private information.
GIP led a group of foreign buyers that agreed in 2020 to invest in the pipeline network at a valuation of nearly $21 billion including debt. The consortium — which also included Brookfield Asset Management, Singapore sovereign wealth fund GIC Pte, Ontario Teachers’ Pension Plan and South Korea’s NH Investment & Securities Co. — bought a 49% stake for about $10.1 billion.
Under the terms of that agreement, the international partners gained an interest in the pipeline assets through a new subsidiary, Adnoc Gas Pipeline, for 20 years with guaranteed minimum returns. Abu Dhabi has also added some local funds into the ownership structure.
Lunate was set up by an arm of Sheikh Tahnoon bin Zayed Al Nahyan’s listed conglomerate, International Holding Co., and is backed by investors including Abu Dhabi wealth fund ADQ. The firm, which manages about $105 billion, agreed earlier this year to buy a 40% stake in Adnoc’s oil pipeline network from BlackRock Inc. and KKR & Co.
Deliberations are ongoing, and there’s no certainty they will result in a transaction, the people said. Representatives for Adnoc, GIP, Lunate and Snam declined to comment.
Adnoc nears €14.4bn takeover of Covestro
Adnoc nears €14.4bn takeover of Covestro
The Abu Dhabi National Oil Company is nearing a €14.4bn agreement to take over the German chemicals group Covestro, setting up the Gulf state-owned energy producer to expand its overseas holdings.
The Abu Dhabi National Oil Company is nearing a €14.4bn agreement to take over the German chemicals group Covestro, setting up the Gulf state-owned energy producer to expand its overseas holdings.
Covestro has agreed to enter “concrete negotiations” after the UAE’s Adnoc boosted its proposal to €62 per share. Adnoc had previously offered €60 per share.
The news sent Covestro’s share price 6 per cent higher to €54.52 by early afternoon in Frankfurt on Monday in what would be the largest acquisition in Europe this year and the biggest all-cash deal in the chemicals sector.
The deal would also represent the first successful takeover of a German Dax 40 company by a Gulf state-owned group.
The two sides have agreed to conduct confirmatory due diligence, and Covestro said in a statement that it would cancel its capital markets day scheduled for Thursday.
The two sides have been in talks since the Gulf sovereign wealth fund made an initial informal offer in September 2023.
Sunday 23 June 2024
Nvidia to launch in Middle East amid U.S. curbs on AI exports to region, Ooredoo CEO says | Reuters
Nvidia to launch in Middle East amid U.S. curbs on AI exports to region, Ooredoo CEO says | Reuters
Nvidia has signed a deal to deploy its artificial intelligence technology at data centres owned by Qatari telecoms group Ooredoo in five Middle Eastern countries, Ooredoo's CEO told Reuters.
The agreement marks Nvidia's first large-scale launch in a region to which Washington has curbed the export of sophisticated U.S. chips to stop Chinese firms from using Middle Eastern countries as a back door to access the newest AI technology.
It will make Ooredoo the first company in the region able to give clients of its data centers in Qatar, Algeria, Tunisia, Oman, Kuwait and the Maldives direct access to Nvidia's AI and graphics processing technology, Ooredoo said in a statement.
It will make Ooredoo the first company in the region able to give clients of its data centers in Qatar, Algeria, Tunisia, Oman, Kuwait and the Maldives direct access to Nvidia's AI and graphics processing technology, Ooredoo said in a statement.
Providing the technology will allow Ooredoo to better help its customers deploy generative AI applications, Nvidia's senior vice president of telecom Ronnie Vasishta said.
"Our b2b clients, thanks to this agreement, will have access to services that probably their competitors (won't) for another 18 to 24 months," Ooredoo's CEO Aziz Aluthman Fakhroo told Reuters in an interview.
"Our b2b clients, thanks to this agreement, will have access to services that probably their competitors (won't) for another 18 to 24 months," Ooredoo's CEO Aziz Aluthman Fakhroo told Reuters in an interview.
The companies did not disclose the value of the deal, which was signed on the sidelines of the TM Forum in Copenhagen on June 19.
Ooredoo also would not disclose exactly what type of Nvidia technology it will be installing in its data centres, saying that it depends on availability and customer demand.
Washington allows the export of some Nvidia technology to the Middle East, but curbs exports of the company's most sophisticated chips.
Washington allows the export of some Nvidia technology to the Middle East, but curbs exports of the company's most sophisticated chips.
Ooredoo is investing $1 billion to boost its regional data centre capacity by 20-25 additional megawatts on top of the 40 megawatts it currently has, and plans to almost triple that by the end of the decade, Fakhroo said.
The company has carved out its data centers into a separate company following a similar move last year to create the Middle East's largest tower company in a deal with Kuwait's Zain and Dubai's TASC Towers Holding.
#AbuDhabi’s Masdar seeks European acquisitions
Abu Dhabi’s Masdar seeks European acquisitions
Abu Dhabi’s state-backed green energy group Masdar is on the hunt for more European acquisitions after buying Greece’s biggest renewables company last week, as financial strains in the sector drive down valuations and create room for deals.
Mohamed Jameel Al Ramahi, chief executive, told the Financial Times the deal for Terna Energy at a €3.2bn valuation was just the start of a further expansion into central and eastern Europe.
“The reality is we are not just acquiring this platform and portfolio,” he said. “We are going to be pumping more capital into Greece and into Europe.”
“This is a strategic deal for us where we reinforce our presence in Greece but, more importantly, in eastern Europe,” he added, citing the company’s presence in Serbia, Montenegro and Poland, as well as its “strong pipeline” in the region.
After a decade of rapid growth, the renewables industry has come under pressure from higher interest rates, particularly in Europe where several companies have scaled back or cancelled plans.
Saturday 22 June 2024
#Dubai Real Estate’s Resilience May Signal End of Boom-Bust Cycle - Bloomberg
Dubai Real Estate’s Resilience May Signal End of Boom-Bust Cycle - Bloomberg
Dubai’s red-hot real estate market is defying predictions of a slowdown, in a sign that the Middle Eastern business hub might be breaking free from its boom-and-bust cycles.
“Prices are continuing to rise and the transient nature of Dubai seems to be well and truly over,” Taimur Khan, the head of research at global property advisory firm CBRE Group Inc., said. “Whether new or long-standing residents, most are buying for occupancy now and as a result we’re seeing prices remain resilient.”
Many analysts had anticipated the surge in property prices and rents — that had made Dubai one of the hottest property markets globally — to moderate or even drop by early 2024. Those predictions haven’t materialized despite continuing tensions from the Israel-Hamas war, rising cost of living and the city’s fading appeal for wealthy Russians.
Instead, home values have risen for 15 consecutive quarters and are up 20% for the year ending May, according to Cushman & Wakefield Core. Rents have climbed for 13 straight quarters, although at a slightly slower clip than the previous year.
“Demand is coming from everywhere even though the Russian buyers have declined in the market,” said Prathyusha Gurrapu, the head of research and advisory at the real estate consultancy firm. “Prices at most areas have now surpassed their 2014 peaks and are still growing as buyers keep coming from Europe, India and other South Asian countries,” she said.
Dubai had a record 274 billion dirhams ($74.6 billion) worth of property changing hands in 2023, according to property consultant Knight Frank LLP. In the first three months of this year, the city has already recorded 89.2 billion dirhams in transactions.
City-wide prices have surged 60% since the end of 2020 while rents have soared a whopping 83%, Cushman & Wakefield Core’s calculations show. That recovery was underpinned by an influx of wealthy investors — including Russians — seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government’s handling of the pandemic and its liberal visa policies also attracted more foreign buyers.
Dubai’s red-hot real estate market is defying predictions of a slowdown, in a sign that the Middle Eastern business hub might be breaking free from its boom-and-bust cycles.
“Prices are continuing to rise and the transient nature of Dubai seems to be well and truly over,” Taimur Khan, the head of research at global property advisory firm CBRE Group Inc., said. “Whether new or long-standing residents, most are buying for occupancy now and as a result we’re seeing prices remain resilient.”
Many analysts had anticipated the surge in property prices and rents — that had made Dubai one of the hottest property markets globally — to moderate or even drop by early 2024. Those predictions haven’t materialized despite continuing tensions from the Israel-Hamas war, rising cost of living and the city’s fading appeal for wealthy Russians.
Instead, home values have risen for 15 consecutive quarters and are up 20% for the year ending May, according to Cushman & Wakefield Core. Rents have climbed for 13 straight quarters, although at a slightly slower clip than the previous year.
“Demand is coming from everywhere even though the Russian buyers have declined in the market,” said Prathyusha Gurrapu, the head of research and advisory at the real estate consultancy firm. “Prices at most areas have now surpassed their 2014 peaks and are still growing as buyers keep coming from Europe, India and other South Asian countries,” she said.
Dubai had a record 274 billion dirhams ($74.6 billion) worth of property changing hands in 2023, according to property consultant Knight Frank LLP. In the first three months of this year, the city has already recorded 89.2 billion dirhams in transactions.
City-wide prices have surged 60% since the end of 2020 while rents have soared a whopping 83%, Cushman & Wakefield Core’s calculations show. That recovery was underpinned by an influx of wealthy investors — including Russians — seeking to shield their assets, crypto millionaires and rich Indians seeking second homes. The government’s handling of the pandemic and its liberal visa policies also attracted more foreign buyers.
Friday 21 June 2024
#Dubai stocks log third weekly gain as #UAE's shares end higher | Reuters
Dubai stocks log third weekly gain as UAE's shares end higher | Reuters
Stock markets in the United Arab Emirates ended higher on Friday, supported by a broad-based gains, with the Dubai index posting its third weekly gain.
Dubai's benchmark stock index (.DFMGI), opens new tab rebounded after the previous session of losses to end 0.6% higher, with almost all of its constituents posting gains.
Emirates Central Cooling Systems (EMPOWER.DU), opens new tab advanced 2.7% and the blue-chip developer Emaar Properties (EMAR.DU), opens new tab and its unit Emaar Development (EMAARDEV.DU), opens new tab gained 0.9% and 2.2% respectively.
For the week, the index was up for a third week in a row.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab gained 0.7%, snapping its previous session of losses. For the week, the index was up 0.9%.
Investment company Q Holding (QHOLDING.AD), opens new tab rose 1.4% and its owner International Holding Co (IHC.AD), opens new tab climbed 2.3%, the highest intraday gain in nearly six months.
The conglomerate IHC shareholders approved a share buyback programme of up to 5 billion dirhams on Thursday.
Stock markets in the United Arab Emirates ended higher on Friday, supported by a broad-based gains, with the Dubai index posting its third weekly gain.
Dubai's benchmark stock index (.DFMGI), opens new tab rebounded after the previous session of losses to end 0.6% higher, with almost all of its constituents posting gains.
Emirates Central Cooling Systems (EMPOWER.DU), opens new tab advanced 2.7% and the blue-chip developer Emaar Properties (EMAR.DU), opens new tab and its unit Emaar Development (EMAARDEV.DU), opens new tab gained 0.9% and 2.2% respectively.
For the week, the index was up for a third week in a row.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab gained 0.7%, snapping its previous session of losses. For the week, the index was up 0.9%.
Investment company Q Holding (QHOLDING.AD), opens new tab rose 1.4% and its owner International Holding Co (IHC.AD), opens new tab climbed 2.3%, the highest intraday gain in nearly six months.
The conglomerate IHC shareholders approved a share buyback programme of up to 5 billion dirhams on Thursday.
Oil prices set for second week of gains on signs demand improving | Reuters
Oil prices set for second week of gains on signs demand improving | Reuters
Crude oil futures were little changed on Friday but were set to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the U.S., the world's biggest oil consumer.
Brent futures for August settlement dipped 18 cents to $85.53 a barrel by 0656 GMT, after rising 0.8% in the previous session.
U.S. West Texas Intermediate crude futures for August delivery were down 14 cents to $81.15 per barrel. The July contract expired on Thursday at $82.17, up 0.7%.
Prices have risen about 5% since the beginning of the month to their highest in over seven weeks.
Prices have risen about 5% since the beginning of the month to their highest in over seven weeks.
"The seasonal demand increase, as shown by the latest EIA data, renewed confrontation between Israel and Hezbollah, and the hurricane season could sustain price strength into the summer," Citi analysts said in a note.
U.S. government data released on Thursday showed total product supplied, a proxy for the country's oil demand, rose by 1.9 million barrels per day (bpd) in the week ending June 14 to 21.1 million bpd.
Thursday 20 June 2024
#UAE renewables company Masdar to buy Greece's Terna Energy | Reuters
UAE renewables company Masdar to buy Greece's Terna Energy | Reuters
"As one of Europe's biggest renewable energy transactions in 2024, this investment reflects the UAE's clear commitment to Greece and Europe's clean energy development," said Sultan Al Jaber, Masdar's chairman and president of the COP28 climate summit hosted by the UAE last year.
Rothschild & Co was financial adviser to Masdar and Simmons & Simmons, Bernitsas Law and Latham & Watkins were legal advisers for the deal and financing.
United Arab Emirates renewable energy company Masdar said on Thursday it has reached an agreement to buy an initial 67% stake in Greece's Terna Energy (TENr.AT), opens new tab and intends to make a mandatory offer to buy the rest.
Masdar has signed a definitive agreement with Greek conglomerate GEK Terna (HRMr.AT), opens new tab and other shareholders to buy the 67% stake in Terna Energy at 20 euros ($21.45) per share.
The acquisition price gives the Greek renewables company an equity valuation of 2.4 billion euros and an enterprise value of 3.2 billion euros, the two companies said.
GEK Terna owned 37.93% of Terna Energy as of June 4, according to LSEG data.
The transaction is subject to regulatory approvals and other conditions. Once completed, "Masdar will launch an all-cash mandatory tender offer to acquire all the remaining shares of TERNA ENERGY with the intention of reaching 100%," the statement said.
GEK Terna owned 37.93% of Terna Energy as of June 4, according to LSEG data.
The transaction is subject to regulatory approvals and other conditions. Once completed, "Masdar will launch an all-cash mandatory tender offer to acquire all the remaining shares of TERNA ENERGY with the intention of reaching 100%," the statement said.
Masdar is expanding in several parts of Europe, as well is in Asia, the United States and elsewhere, as it seeks to grow its capacity to 100 gigawatts of renewable energy by 2030.
Masdar is owned by state-controlled energy and utilities firm TAQA, Abu Dhabi sovereign wealth fund Mubadala and Abu Dhabi National Oil Company, which hold stakes of 43%, 33% and 24%, respectively.
Masdar is owned by state-controlled energy and utilities firm TAQA, Abu Dhabi sovereign wealth fund Mubadala and Abu Dhabi National Oil Company, which hold stakes of 43%, 33% and 24%, respectively.
"As one of Europe's biggest renewable energy transactions in 2024, this investment reflects the UAE's clear commitment to Greece and Europe's clean energy development," said Sultan Al Jaber, Masdar's chairman and president of the COP28 climate summit hosted by the UAE last year.
Rothschild & Co was financial adviser to Masdar and Simmons & Simmons, Bernitsas Law and Latham & Watkins were legal advisers for the deal and financing.
Reed Smith and Potamitis Vekris were legal advisers to GEK Terna Group and Morgan Stanley was financial adviser to Terna Energy.
Gulf shares end mixed; US Fed officials comments in focus | Reuters
Gulf shares end mixed; US Fed officials comments in focus | Reuters
Major stock markets in the Gulf were mixed on Thursday amid steady oil prices, while investors awaited commentary from U.S. Federal Reserve officials to firm up bets on interest rate cuts this year.
Oil prices, a catalyst for the Gulf's financial markets, rose 0.4% on geopolitical developments in the Middle East ahead of U.S. inventory data, with Brent trading at $85.41 a barrel by 1200 GMT.
The Qatari benchmark index (.QSI), opens new tab was up 0.2%, extending its gains for the thirteenth session, the longest rally in nearly a year.
Maritime and logistics firm Qatar Navigation (QNNC.QA), opens new tab climbed 5.8%, while petrochemicals and fertilizers conglomerate Industries Qatar (IQCD.QA), opens new tab advanced 1.4%.
Meanwhile, energy giant QatarEnergy and Exxon Mobil(XOM.N), opens new tab, owners of a $10-billion LNG project that has stalled with the bankruptcy of its main contractor, are asking a court to immediately oust Zachry Industrial from the project.
Dubai's benchmark stock index (.DFMGI), opens new tab fell marginally after three straight sessions of gains, with business park operator Tecom Group (TECOM.DU), opens new tab down 3.2% and Dubai Islamic Bank (DISB.DU), opens new tab up 2%.
Investors are waiting for comments from U.S. central bank officials to get fresh cues as to when the Fed would start its policy easing cycle. Traders currently see a 66% chance of an interest rate cut by the Fed in September.
Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Markets in Saudi Arabia, Oman and Egypt are closed for a holiday break.
Major stock markets in the Gulf were mixed on Thursday amid steady oil prices, while investors awaited commentary from U.S. Federal Reserve officials to firm up bets on interest rate cuts this year.
Oil prices, a catalyst for the Gulf's financial markets, rose 0.4% on geopolitical developments in the Middle East ahead of U.S. inventory data, with Brent trading at $85.41 a barrel by 1200 GMT.
The Qatari benchmark index (.QSI), opens new tab was up 0.2%, extending its gains for the thirteenth session, the longest rally in nearly a year.
Maritime and logistics firm Qatar Navigation (QNNC.QA), opens new tab climbed 5.8%, while petrochemicals and fertilizers conglomerate Industries Qatar (IQCD.QA), opens new tab advanced 1.4%.
Meanwhile, energy giant QatarEnergy and Exxon Mobil(XOM.N), opens new tab, owners of a $10-billion LNG project that has stalled with the bankruptcy of its main contractor, are asking a court to immediately oust Zachry Industrial from the project.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab slipped 0.2%, dragged down by a 1.3% drop in conglomerate International Holding Co (IHC.AD), opens new tab and a 2.6% fall in Alef Education (ALEFEDT.AD), opens new tab.
First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, and Abu Dhabi Islamic Bank (ADIB.AD), opens new tab, gained 2.4% and 2.6%, respectively.
First Abu Dhabi Bank (FAB.AD), opens new tab, the UAE's largest lender, and Abu Dhabi Islamic Bank (ADIB.AD), opens new tab, gained 2.4% and 2.6%, respectively.
Dubai's benchmark stock index (.DFMGI), opens new tab fell marginally after three straight sessions of gains, with business park operator Tecom Group (TECOM.DU), opens new tab down 3.2% and Dubai Islamic Bank (DISB.DU), opens new tab up 2%.
Investors are waiting for comments from U.S. central bank officials to get fresh cues as to when the Fed would start its policy easing cycle. Traders currently see a 66% chance of an interest rate cut by the Fed in September.
Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Markets in Saudi Arabia, Oman and Egypt are closed for a holiday break.
#AbuDhabi’s Biggest Fund Hires Ex-JD Executive in China - Bloomberg
Abu Dhabi’s Biggest Fund Hires Ex-JD Executive in China - Bloomberg
Abu Dhabi’s biggest wealth fund hired the finance chief of a JD.com Inc. unit to help oversee its investments in China, at a time the United Arab Emirates is increasing its bets on emerging markets.
Former Jingdong Industrials Inc. Chief Financial Officer Hugo Hu has joined Abu Dhabi Investment Authority as China chief in its private equities unit, a spokesperson with the fund said in response to a query from Bloomberg News. A JD.com representative declined to comment.
Hu joined the JD Group, a leading Chinese e-commerce platform, in 2021 first as head of the strategic investment unit before he assumed duties as Jingdong Industrials’ CFO in December 2022. Before JD, he worked for Warburg Pincus for about a decade.
Companies and funds in the UAE, of which Abu Dhabi is a part, have been forging close links with China and India, bolstering their investments and trade ties by inking agreements worth billions of dollars. The Gulf country recently joined the BRICS grouping of major emerging markets, which includes both those Asian nations.
Mubadala Investment Co., one of Abu Dhabi’s three main wealth funds, said at the beginning of 2024 that it was seeking to double its exposure to Asia as it was underweight in China.
ADIA has assets of about $1 trillion, according to Global SWF, and is chaired by UAE royal Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon oversees a sprawling empire that includes artificial intelligence firm G42.
G42’s $10 billion tech fund 42X had hired Hugo Hu’s predecessor at JD Group, Jason Hu, to lead its Shanghai office, Bloomberg News has previously reported — though the firm has since said it’s paring back its presence in China amid scrutiny from US officials. It is unclear whether the two Hus are related.
Meanwhile, Hugo Hu’s departure from Jingdong Industrials came as JD.com Inc.’s subsidiary is seeking to list in Hong Kong.
Abu Dhabi’s biggest wealth fund hired the finance chief of a JD.com Inc. unit to help oversee its investments in China, at a time the United Arab Emirates is increasing its bets on emerging markets.
Former Jingdong Industrials Inc. Chief Financial Officer Hugo Hu has joined Abu Dhabi Investment Authority as China chief in its private equities unit, a spokesperson with the fund said in response to a query from Bloomberg News. A JD.com representative declined to comment.
Hu joined the JD Group, a leading Chinese e-commerce platform, in 2021 first as head of the strategic investment unit before he assumed duties as Jingdong Industrials’ CFO in December 2022. Before JD, he worked for Warburg Pincus for about a decade.
Companies and funds in the UAE, of which Abu Dhabi is a part, have been forging close links with China and India, bolstering their investments and trade ties by inking agreements worth billions of dollars. The Gulf country recently joined the BRICS grouping of major emerging markets, which includes both those Asian nations.
Mubadala Investment Co., one of Abu Dhabi’s three main wealth funds, said at the beginning of 2024 that it was seeking to double its exposure to Asia as it was underweight in China.
ADIA has assets of about $1 trillion, according to Global SWF, and is chaired by UAE royal Sheikh Tahnoon bin Zayed Al Nahyan. Sheikh Tahnoon oversees a sprawling empire that includes artificial intelligence firm G42.
G42’s $10 billion tech fund 42X had hired Hugo Hu’s predecessor at JD Group, Jason Hu, to lead its Shanghai office, Bloomberg News has previously reported — though the firm has since said it’s paring back its presence in China amid scrutiny from US officials. It is unclear whether the two Hus are related.
Meanwhile, Hugo Hu’s departure from Jingdong Industrials came as JD.com Inc.’s subsidiary is seeking to list in Hong Kong.
Wednesday 19 June 2024
#Saudi Wants Family Offices to Help Build Americas Investment - Bloomberg
Saudi Wants Family Offices to Help Build Americas Investment - Bloomberg
Before 2020, Saudi Arabian investment in Brazil was so small that it didn’t even appear in the central bank’s database for relevant foreign inflows.
That figure jumped sevenfold to $4 billion through 2023, and should keep growing, said Abdulrahman Bakir, managing director of the Americas for the Saudi Investment Ministry.
Key to increasing the two-way flows of money between Brazil and Saudi Arabia — as well as with the rest of Latin America — is connecting institutional investors, private companies and especially family offices, which are multiplying globally and becoming a bigger source of capital, Bakir said.
Last year, the ministry hosted a delegation of 100 Saudi officials, executives, investors and members of family offices to tour seven countries in Latin America over 10 days which led to $3.5 billion of potential investments through memorandums of understanding.
“Think about it as an umbrella of investors,” Bakir said last week in an interview on the sidelines of the Future Investment Initiative Institute event in Rio de Janeiro. “The sovereign wealth fund, private companies, public companies and family offices. We’re trying to really emphasize a lot now in family offices.”
There’s a plan to connect the top 20 family offices from both countries in “upcoming engagements” this year, he said.
Since taking the Washington-based role, Bakir said he’s pitched his boss, Investment Minister Khalid Al-Falih, on expanding their focus to include Latin America and received support.
“The US relationship is very important. It’s been there for ages,” he said. “Frankly, you don’t need me or anyone, no one can really shake the US because it’s the strongest ally for Saudi. But what about South America?”
That’s led to bilateral roundtables from Sao Paulo to Riyadh and even one at the Milken Institute event in Los Angeles in 2022. Fifty Brazilian companies attended the FII event in Riyadh that year compared with five a year earlier. UBS Group AG hosted a Brazil-Saudi dinner at Davos last year, Bakir said.
Major Saudi capital allocations to Brazil include $400 million of direct investments from sovereign wealth fund PIF in funds overseen by Patria, a large alternative-asset manager, according to data provided by Bakir. Manara Minerals bought a stake in miner Vale SA’s base metals unit for $2.6 billion and state-owned SALIC has stakes in Brazilian food producers Minerva and BRF.
Food, medical devices, pharmaceuticals, cosmetics, tourism, mining and petrochemicals are among industries in Brazil that are attractive for Saudi investors, he said. Saudi Arabia is also working to lure more Brazilian companies to set up production facilities and offices there.
Some of the hurdles in the new relationship include regulatory issues, bureaucracy and finding more efficient ways to connect the private sector in both countries.
“Latam is one of the few regions where you have more opportunities than capital,” Bakir said. “In the Middle East, it’s the opposite. So if you come at the sweet spot your returns can be much, much higher.”
Before 2020, Saudi Arabian investment in Brazil was so small that it didn’t even appear in the central bank’s database for relevant foreign inflows.
That figure jumped sevenfold to $4 billion through 2023, and should keep growing, said Abdulrahman Bakir, managing director of the Americas for the Saudi Investment Ministry.
Key to increasing the two-way flows of money between Brazil and Saudi Arabia — as well as with the rest of Latin America — is connecting institutional investors, private companies and especially family offices, which are multiplying globally and becoming a bigger source of capital, Bakir said.
Last year, the ministry hosted a delegation of 100 Saudi officials, executives, investors and members of family offices to tour seven countries in Latin America over 10 days which led to $3.5 billion of potential investments through memorandums of understanding.
“Think about it as an umbrella of investors,” Bakir said last week in an interview on the sidelines of the Future Investment Initiative Institute event in Rio de Janeiro. “The sovereign wealth fund, private companies, public companies and family offices. We’re trying to really emphasize a lot now in family offices.”
There’s a plan to connect the top 20 family offices from both countries in “upcoming engagements” this year, he said.
Since taking the Washington-based role, Bakir said he’s pitched his boss, Investment Minister Khalid Al-Falih, on expanding their focus to include Latin America and received support.
“The US relationship is very important. It’s been there for ages,” he said. “Frankly, you don’t need me or anyone, no one can really shake the US because it’s the strongest ally for Saudi. But what about South America?”
That’s led to bilateral roundtables from Sao Paulo to Riyadh and even one at the Milken Institute event in Los Angeles in 2022. Fifty Brazilian companies attended the FII event in Riyadh that year compared with five a year earlier. UBS Group AG hosted a Brazil-Saudi dinner at Davos last year, Bakir said.
Major Saudi capital allocations to Brazil include $400 million of direct investments from sovereign wealth fund PIF in funds overseen by Patria, a large alternative-asset manager, according to data provided by Bakir. Manara Minerals bought a stake in miner Vale SA’s base metals unit for $2.6 billion and state-owned SALIC has stakes in Brazilian food producers Minerva and BRF.
Food, medical devices, pharmaceuticals, cosmetics, tourism, mining and petrochemicals are among industries in Brazil that are attractive for Saudi investors, he said. Saudi Arabia is also working to lure more Brazilian companies to set up production facilities and offices there.
Some of the hurdles in the new relationship include regulatory issues, bureaucracy and finding more efficient ways to connect the private sector in both countries.
“Latam is one of the few regions where you have more opportunities than capital,” Bakir said. “In the Middle East, it’s the opposite. So if you come at the sweet spot your returns can be much, much higher.”
#AbuDhabi Gets Brian Sheth’s Haveli to Join Rush of Firms Setting Up Offices - Bloomberg
Abu Dhabi Gets Brian Sheth’s Haveli to Join Rush of Firms Setting Up Offices - Bloomberg
Abu Dhabi is set to invest in software strategies run by Brian Sheth, whose private equity firm will open an office in the emirate as part of the agreement.
Abu Dhabi Catalyst Partners — a $1.65 billion joint venture between Mubadala Capital and Alpha Wave Global — will commit money to technology-focused Haveli Investment, according to a statement on Wednesday. In return, the Austin-based firm will set up a base in Abu Dhabi Global Market — its first outside of North America.
A cadre of big hedge funds, venture capital firms and crypto companies have set up in the city’s financial center in the past year. That’s part of 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 around $1.5 trillion.
Sheth founded Haveli more than a year after leaving Vista Equity Partners in 2020, soon after his co-founder Robert Smith admitted to tax evasion. Its office in Abu Dhabi will include software and gaming investment and operating professionals.
The firms didn’t disclose financial details.
“We look forward to working closely with the Haveli team and to seeing them build a leading team of enterprise software investment and operating professionals in Abu Dhabi,” Fatima Al Noaimi, the co-head of Mubadala Capital Solutions, which includes ADCP, said in the statement.
A key part of ADCP’s mandate is to encourage firms to set up in Abu Dhabi’s financial center in return for investments. It has invested in 29 companies since 2019, Bloomberg News reported in February.
Haveli, which entered into a strategic partnership with asset management giant Apollo Global Management Inc. in 2022, sees the emirate as an “ideal base” to tap the software and gaming industries in the region.
The firm is looking forward to “leveraging our dedicated team in Abu Dhabi to build enduring relationships with quality investors in the region,” Sheth, who’s also chief investment officer of Haveli, said in the statement.
Abu Dhabi Catalyst Partners — a $1.65 billion joint venture between Mubadala Capital and Alpha Wave Global — will commit money to technology-focused Haveli Investment, according to a statement on Wednesday. In return, the Austin-based firm will set up a base in Abu Dhabi Global Market — its first outside of North America.
A cadre of big hedge funds, venture capital firms and crypto companies have set up in the city’s financial center in the past year. That’s part of 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 around $1.5 trillion.
Sheth founded Haveli more than a year after leaving Vista Equity Partners in 2020, soon after his co-founder Robert Smith admitted to tax evasion. Its office in Abu Dhabi will include software and gaming investment and operating professionals.
The firms didn’t disclose financial details.
“We look forward to working closely with the Haveli team and to seeing them build a leading team of enterprise software investment and operating professionals in Abu Dhabi,” Fatima Al Noaimi, the co-head of Mubadala Capital Solutions, which includes ADCP, said in the statement.
A key part of ADCP’s mandate is to encourage firms to set up in Abu Dhabi’s financial center in return for investments. It has invested in 29 companies since 2019, Bloomberg News reported in February.
Haveli, which entered into a strategic partnership with asset management giant Apollo Global Management Inc. in 2022, sees the emirate as an “ideal base” to tap the software and gaming industries in the region.
The firm is looking forward to “leveraging our dedicated team in Abu Dhabi to build enduring relationships with quality investors in the region,” Sheth, who’s also chief investment officer of Haveli, said in the statement.
#SaudiArabia Dethrones China as Top Emerging-Market Borrower - Bloomberg
Saudi Arabia Dethrones China as Top Emerging-Market Borrower - Bloomberg
Saudi Arabia has displaced China as the most prolific issuer of international debt among emerging markets, breaking Beijing’s 12-year run at the top.
Data for new-bond sales by both governments and corporates this year reveal the kingdom is borrowing at a record pace as global debt investors begin to back Crown Prince’s Mohammed bin Salman’s Vision 2030 plan. Chinese borrowers, on the other hand, are witnessing a buying frenzy in local-currency bonds and have slowed international issuance to one of the slowest paces in recent years.
Overtaking China is meaningful for Saudi Arabia — which has 1/16th of the Asian nation’s the gross domestic product and the drive to become a global business hub by the end of the decade. The latest data suggest improving sentiment as Riyadh seeks funding for projects to diversify the economy from oil and position it as a link between Asia and Europe. Meanwhile, the rest of emerging markets are also witnessing a blockbuster year for bond issuance, amid falling borrowing costs and a hunt for juicy yields.
“Sentiment for Saudi bonds is very healthy,” said Apostolos Bantis, the Zurich-based managing director of fixed-income advisory at Union Bancaire Privee Ubp SA. “It’s not a surprise that the Kingdom has become the largest EM bond issuer given its large funding needs for large infrastructure projects.”
Saudi Arabia has displaced China as the most prolific issuer of international debt among emerging markets, breaking Beijing’s 12-year run at the top.
Data for new-bond sales by both governments and corporates this year reveal the kingdom is borrowing at a record pace as global debt investors begin to back Crown Prince’s Mohammed bin Salman’s Vision 2030 plan. Chinese borrowers, on the other hand, are witnessing a buying frenzy in local-currency bonds and have slowed international issuance to one of the slowest paces in recent years.
Overtaking China is meaningful for Saudi Arabia — which has 1/16th of the Asian nation’s the gross domestic product and the drive to become a global business hub by the end of the decade. The latest data suggest improving sentiment as Riyadh seeks funding for projects to diversify the economy from oil and position it as a link between Asia and Europe. Meanwhile, the rest of emerging markets are also witnessing a blockbuster year for bond issuance, amid falling borrowing costs and a hunt for juicy yields.
“Sentiment for Saudi bonds is very healthy,” said Apostolos Bantis, the Zurich-based managing director of fixed-income advisory at Union Bancaire Privee Ubp SA. “It’s not a surprise that the Kingdom has become the largest EM bond issuer given its large funding needs for large infrastructure projects.”
Major Gulf markets gain in quiet trade | Reuters
Major Gulf markets gain in quiet trade | Reuters
Stock markets in the UAE closed higher on Wednesday in holiday-thinned trade after the UAE central bank projected 3.9% GDP growth for 2024 and 6.2% for 2025, while Qatar was also boosted by a global rally.
MSCI's All-World index (.MIWD00000PUS), opens new tab was up 0.2% at 805.13, having traded at an all-time high of 805.43.
Dubai's main share index (.DFMGI), opens new tab edged up 0.1%, led by a 0.8% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 0.9 growth in Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab rose 0.4% as its top lender First Abu Dhabi Bank (FAB.AD), opens new tab gained 0.7% and Abu Dhabi Islamic Bank (ADIB.CA), opens new tab jumped 4.2%.
ADIB and DIFC innovation hub forged a strategic partnership to drive fintech growth in the region by implementing cutting-edge fintech solutions to accelerate innovation.
The benchmark stock index (.QSI), opens new tab in Qatar rose 0.2%, as almost all the sectors in the index were up.
Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender, gained 0.1% while Qatar Navigation was up 5.5%.
Markets in Saudi Arabia and Egypt are closed for a long one-week holiday break.
Stock markets in the UAE closed higher on Wednesday in holiday-thinned trade after the UAE central bank projected 3.9% GDP growth for 2024 and 6.2% for 2025, while Qatar was also boosted by a global rally.
MSCI's All-World index (.MIWD00000PUS), opens new tab was up 0.2% at 805.13, having traded at an all-time high of 805.43.
Dubai's main share index (.DFMGI), opens new tab edged up 0.1%, led by a 0.8% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 0.9 growth in Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab rose 0.4% as its top lender First Abu Dhabi Bank (FAB.AD), opens new tab gained 0.7% and Abu Dhabi Islamic Bank (ADIB.CA), opens new tab jumped 4.2%.
ADIB and DIFC innovation hub forged a strategic partnership to drive fintech growth in the region by implementing cutting-edge fintech solutions to accelerate innovation.
The benchmark stock index (.QSI), opens new tab in Qatar rose 0.2%, as almost all the sectors in the index were up.
Qatar National Bank (QNBK.QA), opens new tab, the Gulf's biggest lender, gained 0.1% while Qatar Navigation was up 5.5%.
Markets in Saudi Arabia and Egypt are closed for a long one-week holiday break.
#Saudi Consumption — Not Production — Is Key to Peak Oil - Bloomberg
Saudi Consumption — Not Production — Is Key to Peak Oil - Bloomberg
The Shoaiba power plant, a sprawling complex of giant boilers and towering chimneys, is the improbable ground zero of the forces reshaping the energy market. Located in Saudi Arabia, it’s the world’s largest oil-fired electricity generator. At its peak, it gulps about 200,000 barrels a day, more than enough to meet the daily consumption of a small European nation like Portugal1.
If global oil demand is to peak within the next five years, as the International Energy Agency just predicted, it will require more than mass adoption of electric vehicles. Ironically, Riyadh will have to slash its own use of its homemade power source, making the Shoaiba and similar power plants the stuff of yesteryear.
The staggering amount of oil the Saudis consume – 3.7 million barrels a day, the world’s fourth most, behind only the US, China and India — means the kingdom would play a key role in shaping demand to 2030, potentially accelerating peak consumption – or delaying it2.
In its latest projection, released last week, the IEA forecast that Saudi oil demand would see the second-steepest decline in absolute terms between now and the end of the decade, falling by more than 500,000 barrels a day. Only the US, thanks to work-from-home and more efficient gasoline and diesel vehicles, in addition to EVs, would see an even larger drop3.
The Shoaiba power plant, a sprawling complex of giant boilers and towering chimneys, is the improbable ground zero of the forces reshaping the energy market. Located in Saudi Arabia, it’s the world’s largest oil-fired electricity generator. At its peak, it gulps about 200,000 barrels a day, more than enough to meet the daily consumption of a small European nation like Portugal1.
If global oil demand is to peak within the next five years, as the International Energy Agency just predicted, it will require more than mass adoption of electric vehicles. Ironically, Riyadh will have to slash its own use of its homemade power source, making the Shoaiba and similar power plants the stuff of yesteryear.
The staggering amount of oil the Saudis consume – 3.7 million barrels a day, the world’s fourth most, behind only the US, China and India — means the kingdom would play a key role in shaping demand to 2030, potentially accelerating peak consumption – or delaying it2.
In its latest projection, released last week, the IEA forecast that Saudi oil demand would see the second-steepest decline in absolute terms between now and the end of the decade, falling by more than 500,000 barrels a day. Only the US, thanks to work-from-home and more efficient gasoline and diesel vehicles, in addition to EVs, would see an even larger drop3.
Tuesday 18 June 2024
Brookfield-Led Group Buys Stake in #Dubai School Operator GEMS Education - Bloomberg
Brookfield-Led Group Buys Stake in Dubai School Operator GEMS Education - Bloomberg
A consortium led by Brookfield Asset Management Ltd. is investing in GEMS Education, a Dubai-based family business founded by Indian immigrants who turned a single school into one of the world’s largest private education providers.
Financial details weren’t disclosed, but Bloomberg News has previously reported that the Canadian firm was looking to invest about $2 billion. That would make the transaction one of the largest private equity deals in a closely held business in the Gulf.
The company’s existing minority shareholders, including the Malaysian sovereign wealth fund Khazanah Nasional Bhd., will exit as part of this transaction. The move will also allow CVC Capital Partners to exit a majority of its GEMS stake, five years after it bought into the firm in a deal that marked its first private equity foray in the Gulf.
CVC remains “fully committed to investing further in this attractive region,” Ozgur Onder, head of the company’s Middle East operations, said in a statement.
Besides Brookfield, other investors include Dubai-based Gulf Islamic Investments, Marathon Asset Management and the State Oil Fund of the Republic of Azerbaijan, according to a statement. The deal is expected to close in the third quarter, subject to conditions.
A consortium led by Brookfield Asset Management Ltd. is investing in GEMS Education, a Dubai-based family business founded by Indian immigrants who turned a single school into one of the world’s largest private education providers.
Financial details weren’t disclosed, but Bloomberg News has previously reported that the Canadian firm was looking to invest about $2 billion. That would make the transaction one of the largest private equity deals in a closely held business in the Gulf.
The company’s existing minority shareholders, including the Malaysian sovereign wealth fund Khazanah Nasional Bhd., will exit as part of this transaction. The move will also allow CVC Capital Partners to exit a majority of its GEMS stake, five years after it bought into the firm in a deal that marked its first private equity foray in the Gulf.
CVC remains “fully committed to investing further in this attractive region,” Ozgur Onder, head of the company’s Middle East operations, said in a statement.
Besides Brookfield, other investors include Dubai-based Gulf Islamic Investments, Marathon Asset Management and the State Oil Fund of the Republic of Azerbaijan, according to a statement. The deal is expected to close in the third quarter, subject to conditions.
Fisher Sells Stake of Up to $3 Billion to Advent, #AbuDhabi Fund - Bloomberg
Fisher Sells Stake of Up to $3 Billion to Advent, Abu Dhabi Fund - Bloomberg
Private equity firm Advent International and a unit of the Abu Dhabi Investment Authority are buying a minority stake in billionaire Ken Fisher’s Fisher Investments worth as much as $3 billion.
The transaction, in which the acquirers will invest at least $2.5 billion, values closely held Fisher at $12.75 billion, the money-management firm said Sunday in a statement. The deal is part of Ken Fisher’s estate planning, according to the company, and will let Fisher Investments continue to operate independently.
“While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI’s long-term private independence and culture should anything untoward happen to me,” Fisher, 73, said in the statement.
Bloomberg News and the Journal reported in January that Advent had held talks to acquire Fisher, both citing people with knowledge of the matter. At that time, Fisher issued a statement saying, “Fisher Investments is not being bought by Advent International, or anyone else — plain and simple.” Advent issued a similar denial of the January reports.
Private equity firm Advent International and a unit of the Abu Dhabi Investment Authority are buying a minority stake in billionaire Ken Fisher’s Fisher Investments worth as much as $3 billion.
The transaction, in which the acquirers will invest at least $2.5 billion, values closely held Fisher at $12.75 billion, the money-management firm said Sunday in a statement. The deal is part of Ken Fisher’s estate planning, according to the company, and will let Fisher Investments continue to operate independently.
“While my health is excellent, this transaction with an atypically long holding period for a private equity transaction will ensure FI’s long-term private independence and culture should anything untoward happen to me,” Fisher, 73, said in the statement.
Bloomberg News and the Journal reported in January that Advent had held talks to acquire Fisher, both citing people with knowledge of the matter. At that time, Fisher issued a statement saying, “Fisher Investments is not being bought by Advent International, or anyone else — plain and simple.” Advent issued a similar denial of the January reports.
Kazakhtelecom to sell mobile asset to Qatari firm for $1.1 bln | Reuters
Kazakhtelecom to sell mobile asset to Qatari firm for $1.1 bln | Reuters
Kazakhtelecom (KZTK.KZ), opens new tab will sell MT-S, one of its two mobile communications subsidiaries, to Qatar's Power International Holding for $1.1 billion, the Kazakh government said on Tuesday.
Zhaslan Madiyev, Kazakhstan's digital development minister, said the new investor would also commit to expanding the MT-S network.
Shareholders in state-controlled Kazakhtelecom approved the sale this month, but the firm had not disclosed the sale price.
Kazakhtelecom controls more than 60% of Kazakhstan's mobile communications market through subsidiaries MT-S and KCell.
Kazakhtelecom controls more than 60% of Kazakhstan's mobile communications market through subsidiaries MT-S and KCell.
Monday 17 June 2024
Mubadala Favors Selling Fintech Wefox to Ardonagh Against Founders’ Wishes - Bloomberg
Mubadala Favors Selling Fintech Wefox to Ardonagh Against Founders’ Wishes - Bloomberg
Mubadala Investment Co. has proposed selling troubled insurance tech startup Wefox Holding AG to UK insurance broker Ardonagh Group Ltd. in a deal opposed by the German firm’s founders.
The Abu Dhabi sovereign wealth fund has told Wefox shareholders it expects an offer from Ardonagh that would give the German firm an enterprise value of as much as €550 million ($595 million), according to a presentation from Mubadala that was seen by Bloomberg. Wefox was valued at $4.5 billion in a Mubadala-led funding round two years ago.
The Berlin-based company lost more than €100 million last year and is now facing as much as €70 million in fresh capital needs through the end of the current year, according to the Mubadala presentation, which was addressed to the company’s key shareholders including Chrysalis Investments and Target Global.
Mubadala, which has $300 billion in assets under management, has become increasingly assertive in some of the startups it funded when low rates helped fuel a boom in venture capital investments. At Turkish grocery delivery business Getir, where it is also the biggest investor, Mubadala pushed for changes to the board and a revamp of its strategy earlier this year.
Wefox’s founders and some early investors oppose the deal as it would put them at risk of losing their entire investment, according to people familiar with the situation. Instead of a sale, they’re proposing a new funding round by existing investors, the people said, asking not to be identified because the talks are private.
Chrysalis and Target support the alternative deal put forward by the Wefox founders, the people said. Chrysalis is working on a term sheet for a €50 million financing round, in which it would participate with €15 million, according to a separate presentation seen by Bloomberg.
Representatives for Mubadala, Wefox, Ardonagh, Target and Chrysalis declined to comment.
Mubadala Investment Co. has proposed selling troubled insurance tech startup Wefox Holding AG to UK insurance broker Ardonagh Group Ltd. in a deal opposed by the German firm’s founders.
The Abu Dhabi sovereign wealth fund has told Wefox shareholders it expects an offer from Ardonagh that would give the German firm an enterprise value of as much as €550 million ($595 million), according to a presentation from Mubadala that was seen by Bloomberg. Wefox was valued at $4.5 billion in a Mubadala-led funding round two years ago.
The Berlin-based company lost more than €100 million last year and is now facing as much as €70 million in fresh capital needs through the end of the current year, according to the Mubadala presentation, which was addressed to the company’s key shareholders including Chrysalis Investments and Target Global.
Mubadala, which has $300 billion in assets under management, has become increasingly assertive in some of the startups it funded when low rates helped fuel a boom in venture capital investments. At Turkish grocery delivery business Getir, where it is also the biggest investor, Mubadala pushed for changes to the board and a revamp of its strategy earlier this year.
Wefox’s founders and some early investors oppose the deal as it would put them at risk of losing their entire investment, according to people familiar with the situation. Instead of a sale, they’re proposing a new funding round by existing investors, the people said, asking not to be identified because the talks are private.
Chrysalis and Target support the alternative deal put forward by the Wefox founders, the people said. Chrysalis is working on a term sheet for a €50 million financing round, in which it would participate with €15 million, according to a separate presentation seen by Bloomberg.
Representatives for Mubadala, Wefox, Ardonagh, Target and Chrysalis declined to comment.
How #SaudiArabia won back Biden
How Saudi Arabia won back Biden
“There will be consequences”.
“There will be consequences”.
It was the warning a fuming Joe Biden hurled at Saudi Arabia during a CNN interview in the autumn of 2022, a week after the kingdom announced deep cuts to its oil production.
The US president feared the move risked pushing up crude prices amid the turmoil triggered by Russia’s war in Ukraine. American officials, blindsided by the Saudi decision, considered it a slap in the face to an administration concerned about domestic gasoline prices in the run-up to midterm elections.
For Biden it was personal. The production cut announced by Opec+, the Saudi-led oil cartel, came just three months after he had expended significant political capital by travelling to the kingdom for talks with Crown Prince Mohammed bin Salman, whom the president had previously refused to engage with.
Behind the scenes, harsh words were exchanged. Some in the administration thought the Saudis, who insisted their decision had been based on market dynamics, had deliberately screwed them. It became a make-or-break moment after months of efforts to repair ties between the two. Biden threatened another “review” of the relationship.
Yet the “consequences” Biden threatened never materialised and what could have been a rupture instead became merely a setback in attempts by both sides to rebuild the relationship.
In the months since, relations between the US and Saudi Arabia have blossomed, with the kingdom transitioning from pariah to what administration officials describe as one of Washington’s most important global partners.
Sunday 16 June 2024
RwandAir says #Qatar Airways close to acquiring stake, FT reports | Reuters
RwandAir says Qatar Airways close to acquiring stake, FT reports | Reuters
RwandAir expects Qatar Airways to finalise its purchase of a major stake in the central African country's carrier as early as next month, chief executive Yvonne Makolo told the Financial Times.
"It's been going on for a while, we have been discussing it for almost five years. So, now, we're really at the tail-end of it," Makolo said.
For the past five years, Qatar and Rwanda have been working on a deal which would give the Gulf nation's airline a 49% stake of RwandAir for an undisclosed sum, the FT report added.
Qatar Airways and RwandAir did not immediately respond to requests for comment outside regular business hours.
Qatar Airways and RwandAir did not immediately respond to requests for comment outside regular business hours.
Earlier this year, Qatar Airways CEO Badr Mohammed Al Meer said that Qatar Airways will soon announce an investment in an airline in southern Africa.
Qatar Airways in 2019 took a 60% stake in a new $1.3 billion international airport being built in Rwanda and has code share agreements with several airlines in Africa including RwandAir.
#SaudiArabia inflation remains at 1.6% in May | Reuters
Saudi Arabia inflation remains at 1.6% in May | Reuters
Saudi Arabia's annual inflation rate remained at 1.6% for the third month running in May, government data showed on Sunday, with higher housing rents still the main driver.
Housing rents rose 10.5% from a year earlier underpinned by a 14.3% rise in apartment rents, according to the General Authority for Statistics.
Overall, prices in the subcategory of housing, water, electricity, gas and other fuels rose 8.7% from the previous year.
Food and beverage prices rose 1.4% year on year, while prices for hotels and restaurants rose by 2.5% driven by a 1.9% increase in the price of food services.
Food and beverage prices rose 1.4% year on year, while prices for hotels and restaurants rose by 2.5% driven by a 1.9% increase in the price of food services.
Prices of clothing and footwear fell 4% from the previous year, and vehicle purchase prices dropped 4.1% to bring overall transportation costs down by 2.4%.
On a monthly basis, prices rose 0.2% in May from April.
On a monthly basis, prices rose 0.2% in May from April.
At below 2% year to date, inflation has remained relatively subdued in Saudi Arabia compared with global levels, with government policies helping limit the impact of international price increases.
Saturday 15 June 2024
#Saudi s Woo Billionaires in Rio as Wealth Fund Taps Latin America - Bloomberg
Saudis Woo Billionaires in Rio as Wealth Fund Taps Latin America - Bloomberg
Under the banner “Invest in Dignity,” the Kingdom of Saudi Arabia let the world know it’s ready to do business in Latin America, hosting a three-day summit on Brazil’s most famous beach.
At the iconic Copacabana Palace hotel, President Luiz Inacio Lula da Silva and Yasir Al-Rumayyan, gatekeeper to nearly $1 trillion of Saudi Arabia’s sovereign money, traded compliments. Billionaires Marcelo Claure, David Velez and Marcos Bulgheroni, as well as former Trump administration officials like Mike Pompeo, later took the stage, along with the CEOs of Brazilian commodities giants Vale SA and Petrobras. A samba group moved through the crowds.
“Brazil and Saudi Arabia are part of the global south,” Lula told attendees on Wednesday. “We can’t go through another century only depending on the north.”
Organized by the Future Investment Initiative Institute, a nonprofit linked to the sovereign wealth fund of Saudi Arabia, the conference in Rio de Janeiro is part of the kingdom’s push to raise its profile and diversify its oil-dependent economy by tapping into resource-rich Latin America. For Brazil’s political and business leaders, it was a rare chance to mingle with the entourage around the Public Investment Fund’s Al-Rumayyan and the billions of dollars that are doled out each year.
No major new accords were announced, but those in attendance got a taste of Brazil’s natural beauty and political turbulence.
Under the banner “Invest in Dignity,” the Kingdom of Saudi Arabia let the world know it’s ready to do business in Latin America, hosting a three-day summit on Brazil’s most famous beach.
At the iconic Copacabana Palace hotel, President Luiz Inacio Lula da Silva and Yasir Al-Rumayyan, gatekeeper to nearly $1 trillion of Saudi Arabia’s sovereign money, traded compliments. Billionaires Marcelo Claure, David Velez and Marcos Bulgheroni, as well as former Trump administration officials like Mike Pompeo, later took the stage, along with the CEOs of Brazilian commodities giants Vale SA and Petrobras. A samba group moved through the crowds.
“Brazil and Saudi Arabia are part of the global south,” Lula told attendees on Wednesday. “We can’t go through another century only depending on the north.”
Organized by the Future Investment Initiative Institute, a nonprofit linked to the sovereign wealth fund of Saudi Arabia, the conference in Rio de Janeiro is part of the kingdom’s push to raise its profile and diversify its oil-dependent economy by tapping into resource-rich Latin America. For Brazil’s political and business leaders, it was a rare chance to mingle with the entourage around the Public Investment Fund’s Al-Rumayyan and the billions of dollars that are doled out each year.
No major new accords were announced, but those in attendance got a taste of Brazil’s natural beauty and political turbulence.
War, Money, Oil and the Shaping of Aramco’s Giant Share Sale - Bloomberg
War, Money, Oil and the Shaping of Aramco’s Giant Share Sale - Bloomberg
As the boss of the world’s biggest oil company flew around the world in early June to drum up investor interest in one of the biggest share sales in recent years, he could breathe a sigh of relief.
Five years after Aramco’s $29.4 billion listing had been marred by temper tantrums and U-turns that left it almost entirely reliant on local investors, Amin Nasser and a coterie of top Wall Street bankers had finally delivered the international deal Crown Prince Mohammed bin Salman always wanted.
A large chunk of this month’s $11.2 billion share sale was allocated to foreign investors, leading one person involved in the process to describe it as the deal the IPO was supposed to be. Its success could create a template for future Aramco sell downs, which now seem likely as the Crown Prince — who’s known as MBS — seeks cash to help fund his multitrillion-dollar Vision 2030 economic transformation project.
“We’re seeing an ‘all of the above’ attempt to raise investment capital for the Vision 2030 gigaprojects,” said Jim Krane, a fellow at Rice University’s Baker Institute for Public Policy in Houston. “Since the hoped-for FDI flows haven’t fully materialized, the Saudi government has turned to its tried-and-true backstop: Aramco.”
This account of the share sale, which Bloomberg News first reported in January, is based on interviews with dozens of people directly involved in the offering, who asked not to be identified discussing private meetings and conversations. Representatives for Aramco and the Saudi government did not respond to requests for comment.
As the boss of the world’s biggest oil company flew around the world in early June to drum up investor interest in one of the biggest share sales in recent years, he could breathe a sigh of relief.
Five years after Aramco’s $29.4 billion listing had been marred by temper tantrums and U-turns that left it almost entirely reliant on local investors, Amin Nasser and a coterie of top Wall Street bankers had finally delivered the international deal Crown Prince Mohammed bin Salman always wanted.
A large chunk of this month’s $11.2 billion share sale was allocated to foreign investors, leading one person involved in the process to describe it as the deal the IPO was supposed to be. Its success could create a template for future Aramco sell downs, which now seem likely as the Crown Prince — who’s known as MBS — seeks cash to help fund his multitrillion-dollar Vision 2030 economic transformation project.
“We’re seeing an ‘all of the above’ attempt to raise investment capital for the Vision 2030 gigaprojects,” said Jim Krane, a fellow at Rice University’s Baker Institute for Public Policy in Houston. “Since the hoped-for FDI flows haven’t fully materialized, the Saudi government has turned to its tried-and-true backstop: Aramco.”
This account of the share sale, which Bloomberg News first reported in January, is based on interviews with dozens of people directly involved in the offering, who asked not to be identified discussing private meetings and conversations. Representatives for Aramco and the Saudi government did not respond to requests for comment.
Friday 14 June 2024
Ardian, #Saudi Fund Offer to Buy 38% of Heathrow for £3.3 Billion - Bloomberg
Ardian, Saudi Fund Offer to Buy 38% of Heathrow for £3.3 Billion - Bloomberg
Private equity firm Ardian and Saudi Arabia’s wealth fund have offered to buy 37.6% of Heathrow Airport for £3.26 billion ($4.26 billion), in a revised deal that increases their commitment to the London hub after other shareholders joined Ferrovial SE in selling.
The revised deal has been accepted by Spain’s Ferrovial, the largest current shareholder in Heathrow, according to a statement Friday. Paris-based Ardian will take a 22.6% stake, while the Saudi Public Investment Fund will own 15%. Ferrovial will remain as a shareholder with 5.25%, according to the statement.
The new agreement would address so-called “tag along rights” which gave other shareholders the right to join Ferrovial after the original deal was reached in November. At the time, the Spanish infrastructure firm said it was selling its 25% stake to Ardian and PIF. The Saudi fund was set to buy 10% of Heathrow’s parent, while Ardian would take a 15% stake.
Other shareholders subsequently exercised their rights to sell a portion of their shares.
Private equity firm Ardian and Saudi Arabia’s wealth fund have offered to buy 37.6% of Heathrow Airport for £3.26 billion ($4.26 billion), in a revised deal that increases their commitment to the London hub after other shareholders joined Ferrovial SE in selling.
The revised deal has been accepted by Spain’s Ferrovial, the largest current shareholder in Heathrow, according to a statement Friday. Paris-based Ardian will take a 22.6% stake, while the Saudi Public Investment Fund will own 15%. Ferrovial will remain as a shareholder with 5.25%, according to the statement.
The new agreement would address so-called “tag along rights” which gave other shareholders the right to join Ferrovial after the original deal was reached in November. At the time, the Spanish infrastructure firm said it was selling its 25% stake to Ardian and PIF. The Saudi fund was set to buy 10% of Heathrow’s parent, while Ardian would take a 15% stake.
Other shareholders subsequently exercised their rights to sell a portion of their shares.
#UAE bourses end mixed ahead of Eid break | Reuters
UAE bourses end mixed ahead of Eid break | Reuters
Stock markets in the United Arab Emirates closed lower on Friday in thin trade ahead of Eid-Al-Adha holidays.
In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.5%, with the country's largest lender First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab falling 0.2%, while conglomerate International Holding Company (IHC.AD), opens new tab slipped 1.6%, in its biggest decline since March 2023.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Egypt and at least three days in UAE and other Gulf countries.
Dubai's main share index (.DFMGI), opens new tab closed up 0.1%, as both blue-chip developer Emaar Properties (EMAR.DU), opens new tab and lender Emirates NBD Bank (ENBD.DU), opens new tab gained 0.3%.
Abu Dhabi index was down 0.3% on a weekly basis while Dubai index closed flat this week.
Stock markets in the United Arab Emirates closed lower on Friday in thin trade ahead of Eid-Al-Adha holidays.
In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.5%, with the country's largest lender First Abu Dhabi Bank (FAB) (FAB.AD), opens new tab falling 0.2%, while conglomerate International Holding Company (IHC.AD), opens new tab slipped 1.6%, in its biggest decline since March 2023.
Many investors prefer to cash in holdings ahead of the Eid holiday, which lasts for a week in Saudi Arabia, Egypt and at least three days in UAE and other Gulf countries.
Dubai's main share index (.DFMGI), opens new tab closed up 0.1%, as both blue-chip developer Emaar Properties (EMAR.DU), opens new tab and lender Emirates NBD Bank (ENBD.DU), opens new tab gained 0.3%.
Abu Dhabi index was down 0.3% on a weekly basis while Dubai index closed flat this week.
China approves first ETFs tracking #Saudi equities, fund managers say | Reuters
China approves first ETFs tracking Saudi equities, fund managers say | Reuters
China approved its first exchange-traded funds (ETFs) investing in Saudi Arabia equities on Friday, fund managers told Reuters, as Beijing expands ties with the Middle East amid rising tensions with the West.
The products, managed by China's Huatai-Pinebridge Investments and Southern Asset Management separately, will track Hong Kong-listed CSOP Saudi Arabia ETF (2830.HK), opens new tab, which debuted in November by Hong Kong-based CSOP Asset Management, according to the two fund managers.
"The approval will further deepen the cooperation between Saudi and China in capital markets," said Ding Chen, chief executive officer at CSOP.
"The approval will further deepen the cooperation between Saudi and China in capital markets," said Ding Chen, chief executive officer at CSOP.
The CSOP Saudi Arabia ETF, which tracks the performance of the FTSE Saudi Arabia Index, is down roughly 5% so far this year, compared with a 3% gain in China's stock benchmark CSI 300 (.CSI300), opens new tab.
Reuters reported in August that China and Saudi Arabia's stock exchanges were talking about allowing exchange-traded funds (ETFs) to list on each other's bourses, as the countries look to deepen financial ties amid warming diplomatic relations.
Through the ETF, investors in China will be able to trade Saudi stocks including the oil giant Saudi Aramco <2222.SE)> and Saudi National Bank (1180.SE), opens new tab.
Through the ETF, investors in China will be able to trade Saudi stocks including the oil giant Saudi Aramco <2222.SE)> and Saudi National Bank (1180.SE), opens new tab.
Beijing, frustrated by what it sees as Washington's weaponisation of economic policies, has sought to expand ties with countries in Europe, the Middle East and Africa. Its diplomatic push to court others include U.S. ally Saudi Arabia.
Earlier this week, China's securities regulator told Reuters that it welcomes foreign financial institutions and investors, including those from the Middle East, to expand investment in China.
The statement was made in response to a Reuters request seeking comment on news that Qatar's sovereign wealth fund had agreed to buy a 10% stake in China Asset Management Co (ChinaAMC), the country's second biggest mutual fund company.
The statement was made in response to a Reuters request seeking comment on news that Qatar's sovereign wealth fund had agreed to buy a 10% stake in China Asset Management Co (ChinaAMC), the country's second biggest mutual fund company.
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