Banks drag #Saudi down, #Qatar hits 3-month high | Reuters

Banks drag Saudi down, Qatar hits 3-month high | Reuters

The Saudi index closed lower on Sunday, with the financial sector leading the losses, while the Qatari index hit a three-month high having risen consistently through the month.

Saudi Arabia's benchmark stock index (.TASI), opens new tab, which recorded its first monthly gain after three months of consecutive losses, dropped 0.4%.

The losses in the index were driven by Saudi Arabia's two biggest lenders, with Al Rajhi Banking And Investment Corporation (1120.SE), opens new tab declining 1.8% and Saudi National Bank (1180.SE), opens new tab dipping 1.2%.

However, Saudi Arabia's state oil company Aramco (2222.SE), opens new tab gained 0.7% after the company signed contracts for the second phase of the expansion of its Jafurah gas field and the third phase of expanding its main gas network.

Al Taiseer Group Talco Industrial (4143.SE), opens new tab, which listed on June 13 on the main Saudi market, and Modern Mills Company (2284.SE), opens new tab, were the biggest gainer on the index, with 9.9% gains each.

The Saudi index advanced 1.8% in June, but declined 5.6% in second quarter as a whole, according to LSEG data.

The Qatari benchmark index (.QSI), opens new tab edged up 0.1%, despite a majority of stocks being in the red, helped by gains in industrial and financial sector stocks.

The Gulf's largest lender Qatar National Bank (QNBK.QA), opens new tab gained 0.3% and petrochemicals producer Industries Qatar (IQCD.QA), opens new tab added 0.6%.

The Qatari index, which rose in all 18 sessions this month, posted a gain of 6.9% in June, its highest monthly gain this year, according to LSEG data. On Sunday it hit an intraday high of 9,998.36, the highest intraday level since 10,007.4 seen on March 28.

Gulf Oil Giant Adnoc With $150 Billion Turns Into Top Dealmaker - Bloomberg

Gulf Oil Giant Adnoc With $150 Billion Turns Into Top Dealmaker - Bloomberg

For years, Abu Dhabi’s main oil producer was known as a sleepy state company content to churn out crude from its vast oil fields. But that stodgy reputation is getting a dramatic makeover as it uses a $150 billion budget to become one of the world’s most active energy dealmakers.

Abu Dhabi National Oil Co. this week took a big step in its global push by suggesting it could raise an offer for German chemicals maker Covestro AG to about $12.5 billion. It’s already strung together a number of smaller deals, but a Covestro purchase would be the biggest international acquisition by a Gulf company and announce Adnoc’s ability to pay top dollar to match its outsized goals.

The Gulf company’s ambitions were fired up about eighteen months ago at a board meeting inside Adnoc’s glass-clad skyscraper overlooking the blue Gulf waters along Abu Dhabi’s corniche. There UAE President Sheikh Mohammed bin Zayed Al Nahyan boosted the company’s budget by nearly a fifth to increase oil and gas production capacity and to snap up assets in chemicals, gas and clean energy across the globe.

Since then the flow of bankers from around the world to Adnoc’s doorstep has surged, with some even proposing what would have been an audacious move for oil major BP Plc, according to people familiar with the matter. While the BP idea never advanced, Adnoc continues to be among the most aggressive companies in searching for energy deals, according to the people.

#Saudi developer Dar Global eyes $300 million investment in US expansion | Reuters

Saudi developer Dar Global eyes $300 million investment in US expansion | Reuters

Saudi property developer Dar Global (DARD.L), opens new tab plans to invest $300 million in New York, Miami and Los Angeles in the coming months as it seeks partners to develop luxury homes the United States.

London-listed Dar Global hopes to announce its latest development in the United States before the year-end, said Ziad El Chaar, Dar Global's chief executive officer. 

He said Dar Global has been meeting with top real estate developers, but declined to identify the firms with whom it might partner.

"We are really focusing on closing the first project in the United States before the end of the year," El Chaar said in an interview from Dubai. He said Dar Global is ready to raise debt in and outside the United States to help finance its U.S. projects, and that its $300 million investment will be in the form of equity.

Dar Global, the international arm of Saudi Arabia's Dar Al Arkan Real Estate Development Company (4300.SE), opens new tab, hopes to sell at least half of the homes in its U.S. developments to non-U.S. buyers, El Chaar said.

Dar Al Arkan in November 2022 signed an agreement with the Trump Organization, the company of former U.S. President Donald Trump, to use the Trump brand for its $4 billion project in the Gulf state of Oman that includes a golf course, hotel and villas.

Trump enjoyed close ties with Gulf states during his tenure as president, including Saudi Arabia which has invested $2 billion with a firm of Jared Kushner, Trump's son-in-law and former aide, incorporated after Trump left office.

El Chaar said while it will be an "honor" for Dar Global to partner with the Trump Organization or the Kushner Companies, Kushner's family real estate firm, in its U.S. expansion, he did not think they have the "right product" as they are too focused on the U.S. market, as opposed to the international buyer targeted by Dar Global.

Aramco close to agreeing 10% stake in Renault, Geely thermal engines JV, sources say | Reuters

Aramco close to agreeing 10% stake in Renault, Geely thermal engines JV, sources say | Reuters

Saudi Aramco (2223.SE), opens new tab is set to take a 10% stake in a thermal engine joint venture between Renault (RENA.PA), opens new tab and China's Geely (0175.HK), opens new tab called Horse Powertrain, said two sources familiar with the matter, beefing up a business supplying legacy automakers as electric-vehicle sales slow.

The agreement to take a 10% stake in the Horse Powertrain business, first reported by Bloomberg, is lower than the stake of around 20% which was cited by sources at the beginning of discussions.

The transaction would value Horse Powertrain at around 7.4 billion euros ($7.92 billion), said one of the sources.

The sources declined to be identified because discussions were confidential and still ongoing.

Both Horse and Aramco declined to comment, while Geely did not immediately respond to a request for comment after business hours.

The Saudi oil group signed a letter of intent in March 2023 with a view to possibly becoming a minority shareholder in the JV, which was formally established on May 31.

Horse Powertrain supplies gasoline engines, hybrid systems and gear boxes for thermal vehicles.

Fitch affirms #UAE’s rating at 'AA-', outlook stable

Fitch affirms UAE’s rating at 'AA-', outlook stable

Fitch has affirmed ‘AA-’ rating for the UAE with a stable outlook, based on the Emirate’s strong external asset position and a high GDP per capita.

Abu Dhabi’s sovereign net foreign assets, which accounted for 122% of the UAE GDP in 2023, have further elevated the country’s position, which is among the highest of Fitch-rated sovereigns.

Fitch projects the consolidated budget for the UAE to remain in surplus in 2024 at 4.1% of GDP after 7.8% in 2023, with surpluses in Dubai and Abu Dhabi, which received a ‘AA’ rating a day earlier, along with budget deficits in Ras Al Khaimah and Sharjah.

“We forecast consolidated UAE government debt at 24% of GDP at end-2024, well below the ‘AA’ category median of 49%,” Fitch noted, saying it will be broadly stable in 2025 and 2026.

“Individual emirates have varied debt profiles, with Sharjah standing out with a higher debt burden,” Fitch added, with Dubai having repaid 29 billion UAE dirhams ($7.9 billion), or 1.5% of the UAE GDP, in market and private debt in 2023, and Emirates NBD Bank PJSC’s loans to the Dubai government fell as well.

According to Fitch, the UAE’s strengths are balanced by weak governance indicators relative to rating peers, the country’s high dependence on hydrocarbon income and the significant leverage of GREs.

Despite a moderate government debt/GDP ratio, Fitch said it views the UAE as characterised by high leverage in its economy. “We estimate overall contingent liabilities from GREs [government-related entities] of the emirates and the FG [federal government] at about 62% of UAE 2023 GDP and gross non-bank private external debt stands at 46% of GDP,” it said.

Fitch further forecasts overall GDP growth to slow to 3.1% in 2024 and pick up to 4.9% in 2025 after 3.6% in 2023.

“We expect non-oil growth of 4.3% and hydrocarbon GDP to contract by 0.4% in 2024 as average oil production in 2024 will contract despite the loosening of OPEC+ quotas in 2H24. We project non-oil growth to slow to 3.4% in 2025 but remain relatively robust despite global headwinds, supported by government and GRE spending, a robust real estate sector, dynamic past population growth and GCC demand. The hydrocarbon sector will expand by 9.5% in 2025 due to higher OPEC+ production caps,” Fitch said.

Security risks also remain on a geopolitical level with tensions between Iran and Israel and the US that Fitch said were a risk to the region, in particular to Abu Dhabi’s hydrocarbon infrastructure and to Dubai as a trade, tourism and financial hub.

Major Gulf markets gain on firm oil prices, Egypt outperforms | Reuters

Major Gulf markets gain on firm oil prices, Egypt outperforms | Reuters

Major Gulf indexes closed higher on Thursday, as oil prices gained on worries that a potential expansion of the Gaza war might disrupt Middle East supplies.

Oil price - a key catalyst for Gulf's financial markets - was up 0.63% to $85.79 a barrel by 1200 GMT.

Saudi Arabia's benchmark stock index (.TASI), opens new tab, which recorded its first monthly gain after three months of consecutive losses, advanced 0.6%, helped by a 10% surge in Al Taiseer Group TALCO Industrial (4143.SE), opens new tab and a 2.2% increase in biggest lender Saudi National Bank (1180.SE), opens new tab.

Amid the gainers, renewable energy utility firm Acwa Power (2082.SE), opens new tab jumped 2.9% after the firm signed three power purchase agreements with Saudi Power Procurement Company for large-scale solar plants with a total capacity of 5.5 gigawatts, the firm said in a filing. The agreements are worth 12.3 billion riyals ($3.28 billion).

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.4% higher, snapping two sessions of losses, with Abu Dhabi biggest real estate developer Aldar Properties (ALDAR.AD), opens new tab rising 1.7% and IHC-owned investment firm Multiply Group (MULTIPLY.AD), opens new tab rising 1.5%.

The Qatari benchmark index (.QSI), opens new tab rose 0.9%, extending gains to the 18th session in a row, supported by a rise in energy and financial sector stocks with Gulf's largest lender Qatar National Bank (QNBK.QA), opens new tab increasing 0.4% and Qatar Gas Transport (QGTS.QA), opens new tab hiking 3.7%.

The Qatari index has risen in all sessions this month, posting its highest monthly gain this year, according to LSEG data.

Dubai's main index (.DFMGI), opens new tab ended 0.1% higher with blue-chip developer Emaar Properties (EMAR.DU), opens new tab climbing 1.6% and Emirates Central Cooling Systems Corporation (EMPOWER.DU), opens new tab rising 0.7%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose for a third consecutive session and gained 1% with Commercial International Bank (COMI.CA), opens new tab adding 1.9% and EFG Holding (HRHO.CA), opens new tab jumping 4.6%.

Egypt's market remains on a positive trend as it continues to see resistance near last month's highs, said Joseph Dahrieh, managing principal at Tickmill, but "at the same time, the ongoing energy crisis could continue to exert pressure on economic and industrial activity and could weigh on the stock market if it exacerbates".

Fitch affirms #AbuDhabi’s rating at ‘AA’, with a stable outlook

Fitch affirms Abu Dhabi’s rating at ‘AA’, with a stable outlook

Fitch Ratings has affirmed Abu Dhabi’s rating at ‘AA’ with a stable outlook, reflecting the emirate’s strong fiscal position and high GDP per capita.

Abu Dhabi’s government debt, which stood at 15% of projected 2024 GDP in June, was among the lowest of Fitch-rated sovereigns, with sovereign net foreign assets (SNFA) among the highest, at 225% of GDP at end-2023 ($672 billion), up significantly from end-2022 due to strong global stock markets.

“We forecast Abu Dhabi will run fiscal surpluses of 5.4% of GDP in 2024 and 3.6% in 2025, after our estimate of 11% of GDP in 2023,” Fitch said.

Oil production is also forecast to rise, in line with OPEC+’s June agreement to reach 3.375 million barrels per day by December 2025, which Fitch said was still well below Abu Dhabi’s stated production capacity of 4.85 million barrels per day. This will also partly offset lower Brent oil prices, which Fitch projects to average $70 per barrel in 2025 and $65 in 2026.

Spending is projected to remain contained within a target band of 260 billion to 300 billion UAE dirhams ($68 billion to $81.67 billion), with the majority of Abu Dhabi’s capital spending undertaken by state-owned enterprises.

Constraints have been raised from “a high dependence on hydrocarbons, a relatively weak but improving economic policy framework and low governance indicators compared with peers,” Fitch said.

Saint-Gobain agrees to buy #Dubai-based FOSROC for around $1bln

Saint-Gobain agrees to buy Dubai-based FOSROC for around $1bln

France's Saint-Gobain has entered into an agreement to buy Dubai-based construction chemicals company FOSROC for around 960 million euros ($1.03 billion) to drive its international expansion, it said on Thursday.

The transaction, which will be fully financed with cash, is expected to close by the first half of 2025, the French construction materials group said.

Saint-Gobain has been on the hunt for acquisitions outside of Europe as it seeks to grow its worldwide presence in construction chemicals.

Since 2021, the Paris-based multinational has bought 35 companies, including Chryso and GCP that operate in the sector.

The deal to buy FOSROC, based in the United Arab Emirates, will allow the group to expand in high-growth markets such as India and the Middle East, CEO Benoit Bazin said in a statement.

Saint-Gobain expects to realise synergies of $54 million in the third year after the deal is completed.

#SaudiArabia leads Gulf bourses higher, #Dubai falls | Reuters

Saudi Arabia leads Gulf bourses higher, Dubai falls | Reuters

Major Gulf bourses rose in early trading on Thursday, with Saudi Arabia leading the gains buoyed by surge in shares of top utility firm Acwa Power Company (2082.SE), opens new tab, while the Dubai index declined.

Saudi Arabia's benchmark stock index (.TASI), opens new tab advanced 0.7%, helped by a nearly 5% surge in Acwa Power and a 0.9% increase in biggest Islamic lender Al Rajhi Banking and Investment Corporation (1120.SE), opens new tab.

Acwa Power signed three power purchase agreements with Saudi Power Procurement Company for large-scale solar plants with a total capacity of 5.5 gigawatts, the firm said in a filing. The agreements are worth 12.3 billion riyals ($3.28 billion).

Abu Dhabi's benchmark index (.FTFADGI), opens new tab rose 0.3%, snapping two sessions of losses, lifted by a 0.6% gain in UAE's largest listed firm International Holding Company (IHC.AD), opens new tab and a 1.5% rise in IHC-owned investment firm Multiply Group (MULTIPLY.AD), opens new tab.

Oil price - a key catalyst for Gulf's financial markets - edged higher on Thursday on worries that a potential expansion of the Gaza war might disrupt Middle East supplies.

Brent crude was up 0.3% to $85.51 a barrel by 0804 GMT.

The Qatari benchmark index (.QSI), opens new tab was up 0.3%, extending gains to the 18th session in a row, with Gulf's largest lender Qatar National Bank (QNBK.QA), opens new tab up 0.1% and petrochemical maker Industries Qatar (IQCD.QA), opens new tab rising 0.2%.

The Qatari index has risen in all sessions this month, posting its highest monthly gain this year, according to LSEG data.

Dubai's main index (.DFMGI), opens new tab edged down 0.04%, pressured by a 0.7% drop in Emirates Central Cooling Systems Corporation (EMPOWER.DU), opens new tab and 0.3% decline in top lender Emirates NBD Bank (ENBD.DU), opens new tab.

Mubadala Loses Wefox Boardroom Battle as Sale Plan Rejected - Bloomberg

Mubadala Loses Wefox Boardroom Battle as Sale Plan Rejected - Bloomberg

Wefox Holding AG is replacing Chief Executive Officer Mark Hartigan after the German insurance tech startup’s board rejected a proposal by its largest stakeholder, Mubadala Investment Co., that he backed to sell the company.

Hartigan, who took the position in March to restructure the cash-strapped company, will be replaced by the end of the year, according to people familiar with the plan, who asked not to be identified because the information is private.

The board also approved a convertible loan agreement prepared by investors Chrysalis Investments and Target Global for about €25 million ($27 million) and will seek to raise more money, the people said. Wefox is in talks to sell e-bike insurer Assona, which it expects will raise at least €50 million, they said.

Wefox, Mubadala, Chrysalis and Target declined to comment. Hartigan did not immediately respond to a request for comment.

The setback for Mubadala comes as the $300 billion Abu Dhabi wealth fund becomes more aggressive at unprofitable startups it invested in when low interest rates fueled a boom in venture capital. This week, Mubadala agreed to take a controlling stake in Turkish food delivery firm Getir and will replace its CEO as part of a deal to raise money for the company.

Wefox, which operates in eight countries and has more than 2 million customers, is running out of cash as funding requirements for the insurance business strain its finances. Mubadala had proposed selling the struggling company to UK insurance broker Ardonagh Group Ltd.

Mubadala hasn’t committed to the financing round and continues to evaluate its options, the people said.

Hartigan, who previously was an executive at Zurich Insurance Group AG and headed LV=, was brought on at Wefox last year as non-executive chairman. He replaced co-founder Julian Teicke as CEO in March as Wefox’s financial situation worsened.

The Berlin-based company lost more than €100 million last year and faces as much as €70 million in fresh capital needs through the end of 2024, according to a Mubadala presentation from this month that was seen by Bloomberg News.

Wefox’s founders and some of the company’s early backers opposed a sale to Ardonagh, which gave the startup an enterprise value of as much as €550 million, because it put them at risk of losing their entire investment, Bloomberg reported previously. Wefox was valued at $4.5 billion in a Mubadala-led funding round two years ago.

An extraordinary meeting of Wefox’s shareholders is scheduled for Friday.

#Qatar Airways looking to buy up to 20% stake in Virgin Australia, AFR reports | Reuters

Qatar Airways looking to buy up to 20% stake in Virgin Australia, AFR reports | Reuters

Qatar Airways is in talks to buy up to a 20% stake in Bain Capital-owned Virgin Australia, the Australian Financial Review (AFR) reported on Wednesday, as carriers fight for more market share in the country against dominant airline Qantas (QAN.AX), opens new tab.

U.S. private equity firm Bain Capital had aimed for a A$1 billion ($665.5 million) listing of Virgin on the Australian Securities Exchange but the plan was delayed, Reuters reported last year.

Government-owned Qatar Airways could announce its plans regarding the stake buy as early as next week, the AFR reported.

Bain Capital and Qatar Airways declined to comment.

Qatar Airways has shared a tumultuous relationship with Australia in the recent past after its attempt to increase its air presence in Australia was blocked by the Labor government.

Major Gulf bourses end mixed; Egypt extends gain | Reuters

Major Gulf bourses end mixed; Egypt extends gain | Reuters

Major stock markets in the Gulf were mixed on Wednesday amid higher oil prices, with Dubai shares rising after two days in the red, and the Saudi index retreating, while investors braced for a key U.S. inflation reading later this week.

Oil prices, the main driver of the Gulf's financial markets, edged up 0.4%, with Brent trading at $85.37 per barrel by 1300 GMT.

Dubai's benchmark stock index (.DFMGI), opens new tab bounced back after two straight sessions of losses, with most sectors in the green. The blue-chip developer Emaar Properties (EMAR.DU), opens new tab advanced 2.2% and tolls operator Salik Company (SALIK.DU), opens new tab gained 2.1%.

Meanwhile, the United Arab Emirates 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.

The Qatari benchmark index (.QSI), opens new tab advanced 0.6%, extending its gains to a 17th session, the longest rally in nearly 18 years.

Qatar National Bank (QNBK.QA), opens new tab gained 0.5% and Industries Qatar (IQCD.QA), opens new tab climbed 2%. However, Mesaieed Petrochemical (MPHC.QA), opens new tab and Qatar Fuel (QFLS.QA), opens new tab slipped 1.9% and 1% respectively.

Mesaieed and Qatar Fuel's major shareholder. energy giant QatarEnergy, on Tuesday reported a 32% drop in full-year net profit.

Saudi Arabia's benchmark stock index (.TASI), opens new tab retreated after a previous session of gains, falling 0.6%. Al Rajhi Bank (1120.SE), opens new tab dropped 1.1% and ACWA Power (2082.SE), opens new tab declined 3.3%.

However, Rasan Information Technology (8313.SE), opens new tab, Miahona (2084.SE), opens new tab and Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab, which were all listed in early- to mid-June, advanced 5.9%, 8.9% and 2.3% respectively.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was down 0.4%, pressured by a 0.4% drop in conglomerate International Holding Co (IHC.AD), opens new tab and a 1.5% decline in Alpha Dhabi (ALPHADHABI.AD), opens new tab. However, MENA's largest producer of nitrogen fertilizers, Fertiglobe (FERTIGLB.AD), opens new tab, advanced 1.2%.

Mitsui & Co (8031.T), opens new tab has begun building an ammonia plant in the UAE with partners including Fertiglobe, TA'ZIZ, and South Korea's GS Energy, it said on Tuesday.

Investors are awaiting the U.S. personal consumption expenditures (PCE) price index, due on Friday, which could provide further clues on the Federal Reserve's rate cut trajectory.

Most Gulf currencies are pegged to the dollar and any change to U.S. monetary policy is usually followed by the central banks of Saudi Arabia, the UAE and Qatar.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up for a second consecutive session and rose 0.9%. Commercial International Bank (COMI.CA), opens new tab gained 1.6% and EFG Holding (HRHO.CA), opens new tab added 2%.

#AbuDhabi's Masdar in US 'for the long term'

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.

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.

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.

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.

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.

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.

#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 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.

#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.

#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.

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.

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.

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.

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.

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.

#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.

#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.

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.

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.

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.

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. 

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.

European, Middle Eastern & African Stocks - Bloomberg #Kuwait #SaudiArabia #Qatar close

European, Middle Eastern & African Stocks - Bloomberg

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.

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.

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.

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.

#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 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.

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.

"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.

#UAE renewables company Masdar to buy Greece's Terna Energy | Reuters

UAE renewables company Masdar to buy Greece's Terna Energy | Reuters

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.

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.

"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.

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.

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.

#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.”

#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.