Top Kuwaiti Islamic Banks Eye Deal to Create $50 Billion Lender - Bloomberg
Two of Kuwait’s largest Islamic lenders are considering a merger that would create a regional banking behemoth with more than $50 billion in assets.
Boubyan Bank and Gulf Bank plan to conduct due diligence and valuation studies to consider the feasibility of a combination, according to a statement. Shares in both lenders jumped Wednesday morning in Kuwait.
Boubyan has assets of 8.89 billion Kuwaiti dinars ($29 billion), while Gulf Bank has 7.43 billion dinars. Their talks come amid a wave of banking consolidation across the Middle East, where lenders have sought to gain more scale to better compete with rivals.
Kuwait Finance House has been exploring the purchase of a significant stake in Saudi Investment Bank, Bloomberg News reported last month. One of the last major deals also involved KFH, which agreed in 2022 to acquire Bahrain’s Ahli United following four years of negotiations.
Meanwhile, National Bank of Bahrain BSC has hired Goldman Sachs Group Inc. as financial adviser as it weighs a potential merger with local rival BBK BSC.
Boubyan has a market capitalization of 2.47 billion Kuwaiti dinars, and counts National Bank of Kuwait SAKP as its biggest shareholder. Commercial Bank of Kuwait KPSC also owns part of the lender.
Gulf Bank has a valuation of 1.17 billion Kuwaiti dinars and Alghanim Trading Co. owns a third of the lender, according to data compiled by Bloomberg.
Wednesday 31 July 2024
Mideast Stocks: Most Gulf markets in red after killing of Hamas leader
Mideast Stocks: Most Gulf markets in red after killing of Hamas leader
Most stock markets in the Middle East ended lower on Wednesday as the killing of Hamas leader Ismail Haniyeh in Iran fuelled tensions in the region, with investors also focused on a U.S. interest rate decision by the Federal Reserve.
Haniyeh was assassinated in the early hours of the morning in Iran, the Palestinian militant group said on Wednesday, stoking fears of further escalation in a region shaken by Israel's war in Gaza and a worsening conflict in Lebanon.
The assassination, which came less than 24 hours after Israel claimed to have killed the Hezbollah commander it said was behind a deadly strike in the Israeli-occupied Golan Heights, appeared to set back chances of any imminent ceasefire agreement in Gaza.
Dubai's main share index dropped 0.4%, with blue-chip developer Emaar Properties falling 4.8%.
Most stock markets in the Middle East ended lower on Wednesday as the killing of Hamas leader Ismail Haniyeh in Iran fuelled tensions in the region, with investors also focused on a U.S. interest rate decision by the Federal Reserve.
Haniyeh was assassinated in the early hours of the morning in Iran, the Palestinian militant group said on Wednesday, stoking fears of further escalation in a region shaken by Israel's war in Gaza and a worsening conflict in Lebanon.
The assassination, which came less than 24 hours after Israel claimed to have killed the Hezbollah commander it said was behind a deadly strike in the Israeli-occupied Golan Heights, appeared to set back chances of any imminent ceasefire agreement in Gaza.
Dubai's main share index dropped 0.4%, with blue-chip developer Emaar Properties falling 4.8%.
In Abu Dhabi, the index retreated 0.6%.
The United Arab Emirates stock markets were affected by the geopolitical tensions, said Mazen Salhab, Chief Market Strategist MENA, at BDSwiss.
"Investors are looking forward to more earnings releases, which could support further gains, especially in the Dubai market if Emaar reports higher-than-expected results."
"Investors are looking forward to more earnings releases, which could support further gains, especially in the Dubai market if Emaar reports higher-than-expected results."
Saudi Arabia's benchmark index reversed early losses to close 0.4% higher, helped by a 0.7% rise in Al Rajhi Bank.
The Fed is expected to leave rates unchanged, but also to indicate that a reduction in borrowing costs could come as soon as September. It has kept its policy rate in the 5.25%-5.50% range for the past year.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark finished flat.
The Fed is expected to leave rates unchanged, but also to indicate that a reduction in borrowing costs could come as soon as September. It has kept its policy rate in the 5.25%-5.50% range for the past year.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark finished flat.
Outside the Gulf, Egypt's blue-chip index advanced 1.2%, led by a 1.3% gain in top lender Commercial International Bank.
Egypt will aim to keep the price of diesel - one of the country's most commonly used fuels - subsidised by raising other petrol prices, Prime Minister Mostafa Madbouly said in a televised round table with journalists on Tuesday.
#AbuDhabi's Borouge posts 33% jump in second quarter profit | Reuters
Abu Dhabi's Borouge posts 33% jump in second quarter profit | Reuters
Abu Dhabi petrochemicals firm Borouge (BOROUGE.AD), opens new tab on Wednesday reported a 33% jump in second-quarter net profit, beating estimates, on the back of higher production volumes and efficiencies.
Borouge reported income of $308 million in the three months to end-June. Revenues were up 6% to $1.5 billion.
That beat analysts' average expectation of $294.67 million profit for the quarter, according to LSEG.
Borouge is a joint venture between UAE state oil giant ADNOC and Borealis in which they hold a 54% and 36% stake, respectively. Borealis is a joint venture owned in which Austria's OMV (OMVV.VI), opens new tab owns 75% and ADNOC owns 25% by ADNOC.
Last week, Borouge said it planned to build a polyolefins complex in China with Wanhua Chemical (600309.SS), opens new tab through a consortium with ADNOC and Borealis to boost growth in its core Asia market.
ADNOC and OMV have been in talks for over a year about a merger of Borouge and Borealis, which would create a chemicals group with over $20 billion in annual sales.
In addition to Asia, Borouge's core markets are the Middle East and Africa. Asia Pacific accounted for about two thirds of sales, the same as a year prior, while the Middle East and Africa made up 28% of sales, up from 27% at the end of June 2023, it said.
Average sale prices were marginally lower in the quarter, as a small drop in polyethylene prices was offset by a marginal rise in polypropylene prices.
Borouge said it remains committed to a 2024 dividend of $1.3 billion.
Borouge said it has reached over 70% completion of Borouge 4 which would increase its production capacity by 28%. The project is expected to be completed by the end of next year and is seen adding $1.5-1.9 billion in annual revenue.
Abu Dhabi petrochemicals firm Borouge (BOROUGE.AD), opens new tab on Wednesday reported a 33% jump in second-quarter net profit, beating estimates, on the back of higher production volumes and efficiencies.
Borouge reported income of $308 million in the three months to end-June. Revenues were up 6% to $1.5 billion.
That beat analysts' average expectation of $294.67 million profit for the quarter, according to LSEG.
Borouge is a joint venture between UAE state oil giant ADNOC and Borealis in which they hold a 54% and 36% stake, respectively. Borealis is a joint venture owned in which Austria's OMV (OMVV.VI), opens new tab owns 75% and ADNOC owns 25% by ADNOC.
Last week, Borouge said it planned to build a polyolefins complex in China with Wanhua Chemical (600309.SS), opens new tab through a consortium with ADNOC and Borealis to boost growth in its core Asia market.
ADNOC and OMV have been in talks for over a year about a merger of Borouge and Borealis, which would create a chemicals group with over $20 billion in annual sales.
In addition to Asia, Borouge's core markets are the Middle East and Africa. Asia Pacific accounted for about two thirds of sales, the same as a year prior, while the Middle East and Africa made up 28% of sales, up from 27% at the end of June 2023, it said.
Average sale prices were marginally lower in the quarter, as a small drop in polyethylene prices was offset by a marginal rise in polypropylene prices.
Borouge said it remains committed to a 2024 dividend of $1.3 billion.
Borouge said it has reached over 70% completion of Borouge 4 which would increase its production capacity by 28%. The project is expected to be completed by the end of next year and is seen adding $1.5-1.9 billion in annual revenue.
Major Gulf markets ease amid tensions after killing of Hamas leader | Reuters
Major Gulf markets ease amid tensions after killing of Hamas leader | Reuters
Major stock markets in the Gulf eased in early trade on Wednesday, as the killing of Hamas leader Ismail Haniyeh in Iran fuelled tensions in the region.
Haniyeh was assassinated in the early hours of the morning in Iran, the Palestinian militant group said on Wednesday, drawing fears of wider escalation in a region shaken by Israel's war in Gaza and a worsening conflict in Lebanon.
The assassination, which came less than 24 hours after Israel claimed to have killed the Hezbollah commander it said was behind a deadly strike in the Israeli-occupied Golan Heights, appeared to set back chances of any imminent ceasefire agreement in Gaza.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.3%, hit by a 4% slide in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 0.6% decrease in Al Rajhi Bank (1120.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab falling 1.2%.
In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.5%, with conglomerate International Holding (IHC.AD), opens new tab losing 0.2%.
Oil futures rebounded from 7-week lows after the assassination, but prices stayed under pressure from concerns about weak Chinese demand.
The Qatari benchmark (.QSI), opens new tab was down 0.2%, weighed down by a 1.9% decline in Qatar Navigation (QNNC.QA), opens new tab retreating 1.9%.
On the other hand, telecoms firm Ooredoo (ORDS.QA), opens new tab added 0.8% after reporting a rise in second-quarter profit, which limited the declines in the benchmark.
Major stock markets in the Gulf eased in early trade on Wednesday, as the killing of Hamas leader Ismail Haniyeh in Iran fuelled tensions in the region.
Haniyeh was assassinated in the early hours of the morning in Iran, the Palestinian militant group said on Wednesday, drawing fears of wider escalation in a region shaken by Israel's war in Gaza and a worsening conflict in Lebanon.
The assassination, which came less than 24 hours after Israel claimed to have killed the Hezbollah commander it said was behind a deadly strike in the Israeli-occupied Golan Heights, appeared to set back chances of any imminent ceasefire agreement in Gaza.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.3%, hit by a 4% slide in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 0.6% decrease in Al Rajhi Bank (1120.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab falling 1.2%.
In Abu Dhabi, the index (.FTFADGI), opens new tab dropped 0.5%, with conglomerate International Holding (IHC.AD), opens new tab losing 0.2%.
Oil futures rebounded from 7-week lows after the assassination, but prices stayed under pressure from concerns about weak Chinese demand.
The Qatari benchmark (.QSI), opens new tab was down 0.2%, weighed down by a 1.9% decline in Qatar Navigation (QNNC.QA), opens new tab retreating 1.9%.
On the other hand, telecoms firm Ooredoo (ORDS.QA), opens new tab added 0.8% after reporting a rise in second-quarter profit, which limited the declines in the benchmark.
Turkey Stocks, Lira (TRY) Are Making a Comeback With Investors - Bloomberg
Turkey Stocks, Lira (TRY) Are Making a Comeback With Investors - Bloomberg
Just a few months ago, Amundi SA warned investors should stay clear of Turkish bonds. Now, it’s among their favorite trades.
The $2.3 trillion money manager believes Turkey is charting a path back to economic normalcy that will supercharge its markets. It’s part of a wider transformation that’s taken place since March as skeptical investors turn bullish on the tough reforms led by a team of technocrats under President Recep Tayyip Erdogan.
What started as a trickle of investor cash last year is now a torrent, and firms from Abrdn Plc to Vanguard Asset Services Ltd. are building up positions. Foreign ownership of Turkish stocks and bonds now stands at the highest level in five years, with more than $30 billion flowing in since May 2023, according to central bank data compiled by Bloomberg. It shows that money managers, who left when Erdogan enacted his controversial policy of cutting interest rates in the face of double-digit inflation, are quickly coming back.
Still, for all the enthusiasm over rallying markets, many are quick to point out that Turkey still has a long way to go. The country has one of the world’s highest inflation rates, and Erdogan’s track record of U-turns and surprise decisions hasn’t been forgotten. Foreign ownership of stocks and bonds is a fraction of what it used to be in 2012.
“It’s going to take some time. It isn’t going to be a Big Bang,” said Yerlan Syzdykov, who leads Amundi’s emerging-markets division. “The economic team is managing political and market pressures quite well, and we are happy to be positive across fixed income and equity.”
Turkey is now “the number one topic” for emerging-market investors, said Simon Quijano-Evans, the chief economist at Gemcorp Capital Management Ltd. Amundi, Europe’s largest asset manager, now counts Turkey as a top five holding among emerging-market local currency bonds, having also scooped up corporate debt and shares.
Bullish investors see a growing body of evidence that the economy is finding stability. The central bank announced this month that its returning a $5 billion deposit from Saudi Arabia, which indicated to analysts that Turkey’s is confident in its ability to restore foreign-exchange reserves. The news came just days after Moody’s Ratings raised the country’s credit score for the first time in more than a decade.
“We’ve been very impressed with policy in Turkey,” said Arif Joshi, who supervises about $9 billion as co-head of the emerging-market debt team at Lazard Asset Management in New York.
Three years ago, the situation couldn’t have been more different after the firing of central bank chief Naci Agbal, who raised interest rates to quell inflation. Subsequently Erdogan doubled down on policies that caused price growth to skyrocket. So when the Turkish president chose Mehmet Simsek as finance minister in June 2023, there were plenty of doubts that he’d face a different fate than his predecessors.
Instead, Simsek and a new team at the central bank embarked on a cycle of monetary tightening, hoisting the main rate to 50%. They loosened some controls on the lira and gradually pivoted back toward more orthodox policies. The key turning point, investors say, was Erdogan’s choice not to shake up key economic posts after his allies were defeated in local elections in March — a move that signaled commitment to his team.
Stocks and bonds have soared in the months since the late March election. Local-currency bonds have risen 6.3%, outstripping the 1.1% average of similar emerging- market debt. The Borsa Istanbul 100 stock index has returned 16% in dollar terms, making it one of the world’s best-performing indexes.
Meanwhile, the lira is showing early signs of stability, hovering around 33 to the dollar in the past few months. The currency has undergone a massive depreciation in recent years caused by inflation rates above 70%.
The influx of foreign capital into Turkish assets may be overdone, according to Bob Savage, head of markets and strategy at BNY. He says investors are ignoring pitfalls, such as geopolitical risks that could lead to a reversal of inflows.
“Turkey is at the crossroads of a mess,” Savage said in an interview. “You could see the Iranian-Israeli conflict getting worse. You could see the Russia-Ukraine conflict getting worse. And Iran being part of that story and Turkey being caught in the middle.”
Kieran Curtis, investment director at Abrdn in London, said he’s been increasing Turkish holdings even as longer-term political risks persist. “I trust the current finance and economy team, but there is always the chance that next time an election needs fighting, there will be a change,” he said. “Frankly, I don’t think anyone can take a long-term view on this.”
But for now, investors are praising Simsek for tackling inflation and building up in the country’s foreign exchange reserves, while still warning that the mission isn’t over yet.
“They've done a very good job of communicating what they are trying to accomplish,” said Jeff Grills, head of emerging markets debt at Aegon Asset Management. “They still haven't won. Inflation is still running very high, but the market has clearly given them the benefit of the doubt. So the challenge I think for Turkey from an investment standpoint is spreads have already priced in a victory on everything that they need to accomplish.”
Still in the view of Nick Eisinger, co-head of emerging markets active fixed income at Vanguard Asset Services Ltd., one of the attractions of investing in Turkey is how under-invested the market is. He’s flipped from being running short trades on the lira to holding small long positions, and owning 10-year bonds as the country’s economy and its foreign reserves strengthened.
“There's a lot of room for investors to get back into the market,” he said. “The next big thing really is going to be when inflation turns. Because when that happens, then I think you'll get another wave.”
Just a few months ago, Amundi SA warned investors should stay clear of Turkish bonds. Now, it’s among their favorite trades.
The $2.3 trillion money manager believes Turkey is charting a path back to economic normalcy that will supercharge its markets. It’s part of a wider transformation that’s taken place since March as skeptical investors turn bullish on the tough reforms led by a team of technocrats under President Recep Tayyip Erdogan.
What started as a trickle of investor cash last year is now a torrent, and firms from Abrdn Plc to Vanguard Asset Services Ltd. are building up positions. Foreign ownership of Turkish stocks and bonds now stands at the highest level in five years, with more than $30 billion flowing in since May 2023, according to central bank data compiled by Bloomberg. It shows that money managers, who left when Erdogan enacted his controversial policy of cutting interest rates in the face of double-digit inflation, are quickly coming back.
Still, for all the enthusiasm over rallying markets, many are quick to point out that Turkey still has a long way to go. The country has one of the world’s highest inflation rates, and Erdogan’s track record of U-turns and surprise decisions hasn’t been forgotten. Foreign ownership of stocks and bonds is a fraction of what it used to be in 2012.
“It’s going to take some time. It isn’t going to be a Big Bang,” said Yerlan Syzdykov, who leads Amundi’s emerging-markets division. “The economic team is managing political and market pressures quite well, and we are happy to be positive across fixed income and equity.”
Turkey is now “the number one topic” for emerging-market investors, said Simon Quijano-Evans, the chief economist at Gemcorp Capital Management Ltd. Amundi, Europe’s largest asset manager, now counts Turkey as a top five holding among emerging-market local currency bonds, having also scooped up corporate debt and shares.
Bullish investors see a growing body of evidence that the economy is finding stability. The central bank announced this month that its returning a $5 billion deposit from Saudi Arabia, which indicated to analysts that Turkey’s is confident in its ability to restore foreign-exchange reserves. The news came just days after Moody’s Ratings raised the country’s credit score for the first time in more than a decade.
“We’ve been very impressed with policy in Turkey,” said Arif Joshi, who supervises about $9 billion as co-head of the emerging-market debt team at Lazard Asset Management in New York.
Three years ago, the situation couldn’t have been more different after the firing of central bank chief Naci Agbal, who raised interest rates to quell inflation. Subsequently Erdogan doubled down on policies that caused price growth to skyrocket. So when the Turkish president chose Mehmet Simsek as finance minister in June 2023, there were plenty of doubts that he’d face a different fate than his predecessors.
Instead, Simsek and a new team at the central bank embarked on a cycle of monetary tightening, hoisting the main rate to 50%. They loosened some controls on the lira and gradually pivoted back toward more orthodox policies. The key turning point, investors say, was Erdogan’s choice not to shake up key economic posts after his allies were defeated in local elections in March — a move that signaled commitment to his team.
Stocks and bonds have soared in the months since the late March election. Local-currency bonds have risen 6.3%, outstripping the 1.1% average of similar emerging- market debt. The Borsa Istanbul 100 stock index has returned 16% in dollar terms, making it one of the world’s best-performing indexes.
Meanwhile, the lira is showing early signs of stability, hovering around 33 to the dollar in the past few months. The currency has undergone a massive depreciation in recent years caused by inflation rates above 70%.
The influx of foreign capital into Turkish assets may be overdone, according to Bob Savage, head of markets and strategy at BNY. He says investors are ignoring pitfalls, such as geopolitical risks that could lead to a reversal of inflows.
“Turkey is at the crossroads of a mess,” Savage said in an interview. “You could see the Iranian-Israeli conflict getting worse. You could see the Russia-Ukraine conflict getting worse. And Iran being part of that story and Turkey being caught in the middle.”
Kieran Curtis, investment director at Abrdn in London, said he’s been increasing Turkish holdings even as longer-term political risks persist. “I trust the current finance and economy team, but there is always the chance that next time an election needs fighting, there will be a change,” he said. “Frankly, I don’t think anyone can take a long-term view on this.”
But for now, investors are praising Simsek for tackling inflation and building up in the country’s foreign exchange reserves, while still warning that the mission isn’t over yet.
“They've done a very good job of communicating what they are trying to accomplish,” said Jeff Grills, head of emerging markets debt at Aegon Asset Management. “They still haven't won. Inflation is still running very high, but the market has clearly given them the benefit of the doubt. So the challenge I think for Turkey from an investment standpoint is spreads have already priced in a victory on everything that they need to accomplish.”
Still in the view of Nick Eisinger, co-head of emerging markets active fixed income at Vanguard Asset Services Ltd., one of the attractions of investing in Turkey is how under-invested the market is. He’s flipped from being running short trades on the lira to holding small long positions, and owning 10-year bonds as the country’s economy and its foreign reserves strengthened.
“There's a lot of room for investors to get back into the market,” he said. “The next big thing really is going to be when inflation turns. Because when that happens, then I think you'll get another wave.”
#Saudi Economy: GDP Contracts For Fourth Quarter on OPEC+ Oil Curbs - Bloomberg
Saudi Economy: GDP Contracts For Fourth Quarter on OPEC+ Oil Curbs - Bloomberg
Saudi Arabia’s gross domestic product contracted slightly for the fourth quarter in a row as OPEC+ production cuts continued to weigh on the economy of the world’s top oil exporter.
The kingdom’s economic output shrank 0.4% on an annual basis during the April-June period, according to preliminary data published by the General Authority for Statistics on Wednesday. That was primarily driven by an 8.5% contraction in the oil sector.
The reading was better than the 1.7% contraction recorded during the previous three-month period, as activity in non-oil economy grew by 4.4%, up from 3.4% previously.
Authorities have long focused on the expansion of Saudi Arabia’s non-oil economy that generates jobs for the bulk of the population. But growth is still critical to Crown Prince Mohammed bin Salman’s Vision 2030 plan that will require hundreds of billions of dollars in new investments.
Overall expansion will likely accelerate as last year’s decision to curb oil production gradually ceases to weigh on GDP growth. On a quarterly basis, economic output was unchanged at 1.4% during the second quarter.
“We expect this to be the last quarter of deeply negative hydrocarbon sector growth” with base effects starting to dissipate, Carla Slim, an economist with Standard Chartered Plc, said before the data release.
The Organization of Petroleum Exporting Countries and its allies have been withholding supplies for almost two years in a bid to prop up prices. Still, Brent crude averaged around $83.5 a barrel so far this year — lower than the price Saudi Arabia needs to balance its budget at $96 per barrel, according to the International Monetary Fund.
Bloomberg Economics estimates the break-even price at $109 per barrel, once domestic spending by the kingdom’s sovereign wealth fund is taken into account.
“Despite their label, Saudi non-oil sectors depend on oil prices,” according to Ziad Daoud, chief emerging-markets economist at Bloomberg Economics. “With high oil prices, authorities hire more people, raising government services, a non-oil activity.”
The IMF cut its estimate for Saudi GDP growth this year to 1.7% from 2.6% in April.
Saudi Arabia’s gross domestic product contracted slightly for the fourth quarter in a row as OPEC+ production cuts continued to weigh on the economy of the world’s top oil exporter.
The kingdom’s economic output shrank 0.4% on an annual basis during the April-June period, according to preliminary data published by the General Authority for Statistics on Wednesday. That was primarily driven by an 8.5% contraction in the oil sector.
The reading was better than the 1.7% contraction recorded during the previous three-month period, as activity in non-oil economy grew by 4.4%, up from 3.4% previously.
Authorities have long focused on the expansion of Saudi Arabia’s non-oil economy that generates jobs for the bulk of the population. But growth is still critical to Crown Prince Mohammed bin Salman’s Vision 2030 plan that will require hundreds of billions of dollars in new investments.
Overall expansion will likely accelerate as last year’s decision to curb oil production gradually ceases to weigh on GDP growth. On a quarterly basis, economic output was unchanged at 1.4% during the second quarter.
“We expect this to be the last quarter of deeply negative hydrocarbon sector growth” with base effects starting to dissipate, Carla Slim, an economist with Standard Chartered Plc, said before the data release.
The Organization of Petroleum Exporting Countries and its allies have been withholding supplies for almost two years in a bid to prop up prices. Still, Brent crude averaged around $83.5 a barrel so far this year — lower than the price Saudi Arabia needs to balance its budget at $96 per barrel, according to the International Monetary Fund.
Bloomberg Economics estimates the break-even price at $109 per barrel, once domestic spending by the kingdom’s sovereign wealth fund is taken into account.
“Despite their label, Saudi non-oil sectors depend on oil prices,” according to Ziad Daoud, chief emerging-markets economist at Bloomberg Economics. “With high oil prices, authorities hire more people, raising government services, a non-oil activity.”
The IMF cut its estimate for Saudi GDP growth this year to 1.7% from 2.6% in April.
Turkey keen to complete trade talks with Gulf council by end-2024, ministry says | Reuters
Turkey keen to complete trade talks with Gulf council by end-2024, ministry says | Reuters
Turkey wants to complete negotiations for a free trade agreement with the Gulf Cooperation Council by the end of the year, the Turkish trade ministry said on Wednesday, after Ankara hosted the first round of talks this week.
Ankara and the council agreed in March to hold the talks as Turkey bids to broaden economic ties with the region after diplomatic efforts in 2020 ended years of tensions with Gulf countries, namely Saudi Arabia and the United Arab Emirates.
The ministry said the parties discussed goods trade, rules of origin, contracting, tourism and health, and that service trade and steps to facilitate investments were also evaluated.
"The sides have agreed to continue the talks through online meetings and to meet in Riyadh in the second half of the year for a second round of negotiations. The negotiations are aimed to be completed by the end of the year," it said in a statement.
Ankara already has a trade pact, dubbed a comprehensive economic partnership agreement, with the UAE.
Since normalising ties with Gulf countries, Ankara has signed deals worth billions of dollars with regional powers, including Qatar, with which it enjoys strong ties.
Turkey's trade volume with the Gulf grouping stood at $31.5 billion in 2023, the ministry said, and the trade pact would help increase mutual investment and cooperation in various areas.
The Gulf council includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain.
Separately, the British Embassy in Ankara said on Tuesday that Britain wanted to resume trade talks with Turkey from later this year after negotiations were stalled due to the UK general election early in July.
Turkey wants to complete negotiations for a free trade agreement with the Gulf Cooperation Council by the end of the year, the Turkish trade ministry said on Wednesday, after Ankara hosted the first round of talks this week.
Ankara and the council agreed in March to hold the talks as Turkey bids to broaden economic ties with the region after diplomatic efforts in 2020 ended years of tensions with Gulf countries, namely Saudi Arabia and the United Arab Emirates.
The ministry said the parties discussed goods trade, rules of origin, contracting, tourism and health, and that service trade and steps to facilitate investments were also evaluated.
"The sides have agreed to continue the talks through online meetings and to meet in Riyadh in the second half of the year for a second round of negotiations. The negotiations are aimed to be completed by the end of the year," it said in a statement.
Ankara already has a trade pact, dubbed a comprehensive economic partnership agreement, with the UAE.
Since normalising ties with Gulf countries, Ankara has signed deals worth billions of dollars with regional powers, including Qatar, with which it enjoys strong ties.
Turkey's trade volume with the Gulf grouping stood at $31.5 billion in 2023, the ministry said, and the trade pact would help increase mutual investment and cooperation in various areas.
The Gulf council includes Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain.
Separately, the British Embassy in Ankara said on Tuesday that Britain wanted to resume trade talks with Turkey from later this year after negotiations were stalled due to the UK general election early in July.
Tuesday 30 July 2024
Gulf bourses mixed on weak oil, ahead of Fed rate decision | Reuters
Gulf bourses mixed on weak oil, ahead of Fed rate decision | Reuters
Stock markets in the Gulf ended mixed on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.
Crude prices - a catalyst for the Gulf's financial markets - hit their lowest levels since early June over concerns about Chinese demand and as the market shrugged off the risk of conflict escalating in the Middle East.
A raft of disappointing economic news out of China has shaken markets recently. China's manufacturing activity likely shrank for a third month in July, a Reuters poll showed on Monday.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab declining 4% and oil giant Saudi Aramco (2222.SE), opens new tab retreating 0.9%.
Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, weighed down by a 7.2% decline in Mashreqbank (MASB.DU), opens new tab and a 1.7% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
However, Dubai Financial Market (DFM.DU), opens new tab, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished flat.
Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
In Qatar, the index (.QSI), opens new tab dropped 0.2%, with telecom operator Ooredoo (ORDS.QA), opens new tab losing 1.1%, ahead of its earnings announcement.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%, led by a 1.7% rise in Talaat Mostafa Group (TMGH.CA), opens new tab.
The International Monetary Fund said on Monday it had completed a review allowing Egypt to draw $820 million, saying efforts to restore macroeconomic stability had started to yield results but urging more progress on reining in state-owned enterprises.
Stock markets in the Gulf ended mixed on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.
Crude prices - a catalyst for the Gulf's financial markets - hit their lowest levels since early June over concerns about Chinese demand and as the market shrugged off the risk of conflict escalating in the Middle East.
A raft of disappointing economic news out of China has shaken markets recently. China's manufacturing activity likely shrank for a third month in July, a Reuters poll showed on Monday.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab declining 4% and oil giant Saudi Aramco (2222.SE), opens new tab retreating 0.9%.
Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, weighed down by a 7.2% decline in Mashreqbank (MASB.DU), opens new tab and a 1.7% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
However, Dubai Financial Market (DFM.DU), opens new tab, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished flat.
Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
In Qatar, the index (.QSI), opens new tab dropped 0.2%, with telecom operator Ooredoo (ORDS.QA), opens new tab losing 1.1%, ahead of its earnings announcement.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%, led by a 1.7% rise in Talaat Mostafa Group (TMGH.CA), opens new tab.
The International Monetary Fund said on Monday it had completed a review allowing Egypt to draw $820 million, saying efforts to restore macroeconomic stability had started to yield results but urging more progress on reining in state-owned enterprises.
Mideast Stocks: Most stock markets ease on weak oil
Mideast Stocks: Most stock markets ease on weak oil
Most major stock markets in the Gulf eased in early trade on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.
Oil prices a catalyst for the Gulf's financial markets extended losses from the previous session amid concerns about demand in China, while the market shrugged off the risk of conflict escalating in the Middle East.
Saudi Arabia's benchmark index .TASI dropped 0.3%, with aluminium products manufacturer Al Taiseer Group 4143.SE losing 0.9% and Al Rajhi Bank 1120.SE down 0.4%.
Separately, the kingdom's Manara Minerals is looking at opportunities to invest in lithium production in Chile, mining minister Bandar Alkhorayaf said on Monday during a visit to the South American country.
Dubai's main share index .DFMGI lost 0.2%, hit by a 8.5% slide in Mashreqbank MASB.DU.
However, Dubai Financial Market DFM.DU, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.
In Abu Dhabi, the index .FTFADGI edged 0.1% higher.
Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark .QSI was down 0.2%, with telecom operator Ooredoo ORDS.QA retreating 1.2%.
Most major stock markets in the Gulf eased in early trade on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.
Oil prices a catalyst for the Gulf's financial markets extended losses from the previous session amid concerns about demand in China, while the market shrugged off the risk of conflict escalating in the Middle East.
Saudi Arabia's benchmark index .TASI dropped 0.3%, with aluminium products manufacturer Al Taiseer Group 4143.SE losing 0.9% and Al Rajhi Bank 1120.SE down 0.4%.
Separately, the kingdom's Manara Minerals is looking at opportunities to invest in lithium production in Chile, mining minister Bandar Alkhorayaf said on Monday during a visit to the South American country.
Dubai's main share index .DFMGI lost 0.2%, hit by a 8.5% slide in Mashreqbank MASB.DU.
However, Dubai Financial Market DFM.DU, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.
In Abu Dhabi, the index .FTFADGI edged 0.1% higher.
Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark .QSI was down 0.2%, with telecom operator Ooredoo ORDS.QA retreating 1.2%.
Will #UAE's retail investors get more from UAE companies going for IPOs? | Markets – Gulf News
Will UAE's retail investors get more from UAE companies going for IPOs? | Markets – Gulf News
The UAE’s IPO boom has played out like this - a company announces its decision to list on the DFM or ADX; opens for subscription; and then almost instantly hits over-subscription levels. Some of the listings of the last two years have set new highs for the levels of subscription they have drawn in.
A common thread running through all of them is the ever increasing levels of interest from retail investors, many of whom are first-timers when it comes to participating in IPOs here.
Another common element in all of these IPOS is that the percentage available for retail investors are nowhere near what the demand is. So, is it time for UAE companies thinking to go private started setting aside more for retail subscriptions? With blockbuster IPOs from the likes of LuLu Group and potentially Etihad Airways closing in on the horizon, that’s one big question everyone is asking.
Amer Halawi is the Head of Research at Al Ramz, the brokerage and investment firm listed on DFM, certainly hopes that change is coming. “We are in contact with CEOS and CFOS of companies that want to list - and everybody wants to understand the retail investor’s intention,” said Halawi. “Every prospective company wanting to list wants to engage more with retail investors and portfolio. And crack the retail investor code.
“Truth is, very few people know how to do it.”
Currently, retail investors get to have about 5-7 per cent of the stake that’s offered in the IPO, with a few going up to 10 per cent. The overwhelming emphasis among listing companies in the UAE is to mop up funds from institutional investors, and once that’s done, ensure they have their interest for the longer term. (On DFM, for instance, institutional funds drive 65 per cent of the volumes.) In other words, less of the volatility their stocks would be subject to when driven purely by retail investor buy-and-sell tactics.
“The weight of institutional funds in UAE capital market trade flows is increasing,” said Halawi. “So, while everybody is watching what the retail investor is doing, each of these companies are tracking the MSCI (Morgan Stanley Capital International) Indices and their weighting in them.
“At the same time, the split between institutional and retail investments in UAE stock market has moved from 20:80 historically to 35:65.” (The MSCI indices are a collection stocks from the developed, emerging and frontier markets as defined by MSCI. From the UAE, the likes of Emaar, FGB and some of the ADNOC listed subsidiaries figure on the index.)
Loans for stock investments
Another trend that continues to run hot in the UAE IPO space is retail investors gunning for loans to take part in the stock offers. (Irrespective of what their actual allocations might turn out to be. In most cases, the final allotments will be even less than the ‘minimum’ promised because of the sheer level of over-subscription.) Whatever the case may be, retail investors will continue to queue up for more loans - and banks will be only too willing to help them out. “There’s absolutely no evidence that’s going to slow down,’ said Halawi.
“The banking sector is doing phenomenally well in the UAE, and the system’s flush with liquidity. You get SMSs from the banks all the time to raise your credit card limit, take on loans, etc. There’s heavy competition from banks competing for a proportion of your salary.
“There is an appetite from everybody to give money to everybody else. That’s not going to dry up, and that’s plainly showing in the levels of over-subscription for IPOs. Where you have 50-60 times the size of IPOs over what the companies had set out to raise.”
Private companies to the fore?
The UAE stock markets is lining up for another inflection point. If the initial wave of IPOs since 2022 were driven by government owned enterprises going public, there are signs that private companies are ready to take over the baton. Spinneys, the Dubai based grocer, certainly made that point clear, and soon, Lulu will soon be basking in the IPO limelight.
“This is a trend which is here to stay, if I were to bet on it,” said Halawi. “The UAE stock market is maturing and the transition of private companies going public should pick up steam.
“As to whether tech companies will be a major part of this, this trend needs confirmation. Even now, it remains marginal in the make up of the UAE economy. If it changes, it will not be immediate.”
All eyes on aviation-linked floats
One sure blockbuster would be when Etihad Airways announces its IPO schedule. “Etihad coming to market would be significant milestones,” said Halawi. “That’s sizeable any which way one looks at it. This is where the UAE IPO pipeline seems to be headed for next.”
The UAE’s IPO boom has played out like this - a company announces its decision to list on the DFM or ADX; opens for subscription; and then almost instantly hits over-subscription levels. Some of the listings of the last two years have set new highs for the levels of subscription they have drawn in.
A common thread running through all of them is the ever increasing levels of interest from retail investors, many of whom are first-timers when it comes to participating in IPOs here.
Another common element in all of these IPOS is that the percentage available for retail investors are nowhere near what the demand is. So, is it time for UAE companies thinking to go private started setting aside more for retail subscriptions? With blockbuster IPOs from the likes of LuLu Group and potentially Etihad Airways closing in on the horizon, that’s one big question everyone is asking.
Amer Halawi is the Head of Research at Al Ramz, the brokerage and investment firm listed on DFM, certainly hopes that change is coming. “We are in contact with CEOS and CFOS of companies that want to list - and everybody wants to understand the retail investor’s intention,” said Halawi. “Every prospective company wanting to list wants to engage more with retail investors and portfolio. And crack the retail investor code.
“Truth is, very few people know how to do it.”
Currently, retail investors get to have about 5-7 per cent of the stake that’s offered in the IPO, with a few going up to 10 per cent. The overwhelming emphasis among listing companies in the UAE is to mop up funds from institutional investors, and once that’s done, ensure they have their interest for the longer term. (On DFM, for instance, institutional funds drive 65 per cent of the volumes.) In other words, less of the volatility their stocks would be subject to when driven purely by retail investor buy-and-sell tactics.
“The weight of institutional funds in UAE capital market trade flows is increasing,” said Halawi. “So, while everybody is watching what the retail investor is doing, each of these companies are tracking the MSCI (Morgan Stanley Capital International) Indices and their weighting in them.
“At the same time, the split between institutional and retail investments in UAE stock market has moved from 20:80 historically to 35:65.” (The MSCI indices are a collection stocks from the developed, emerging and frontier markets as defined by MSCI. From the UAE, the likes of Emaar, FGB and some of the ADNOC listed subsidiaries figure on the index.)
Loans for stock investments
Another trend that continues to run hot in the UAE IPO space is retail investors gunning for loans to take part in the stock offers. (Irrespective of what their actual allocations might turn out to be. In most cases, the final allotments will be even less than the ‘minimum’ promised because of the sheer level of over-subscription.) Whatever the case may be, retail investors will continue to queue up for more loans - and banks will be only too willing to help them out. “There’s absolutely no evidence that’s going to slow down,’ said Halawi.
“The banking sector is doing phenomenally well in the UAE, and the system’s flush with liquidity. You get SMSs from the banks all the time to raise your credit card limit, take on loans, etc. There’s heavy competition from banks competing for a proportion of your salary.
“There is an appetite from everybody to give money to everybody else. That’s not going to dry up, and that’s plainly showing in the levels of over-subscription for IPOs. Where you have 50-60 times the size of IPOs over what the companies had set out to raise.”
Private companies to the fore?
The UAE stock markets is lining up for another inflection point. If the initial wave of IPOs since 2022 were driven by government owned enterprises going public, there are signs that private companies are ready to take over the baton. Spinneys, the Dubai based grocer, certainly made that point clear, and soon, Lulu will soon be basking in the IPO limelight.
“This is a trend which is here to stay, if I were to bet on it,” said Halawi. “The UAE stock market is maturing and the transition of private companies going public should pick up steam.
“As to whether tech companies will be a major part of this, this trend needs confirmation. Even now, it remains marginal in the make up of the UAE economy. If it changes, it will not be immediate.”
All eyes on aviation-linked floats
One sure blockbuster would be when Etihad Airways announces its IPO schedule. “Etihad coming to market would be significant milestones,” said Halawi. “That’s sizeable any which way one looks at it. This is where the UAE IPO pipeline seems to be headed for next.”
Sunday 28 July 2024
#Saudi bourse gains on US inflation data; Egypt falls | Reuters
Saudi bourse gains on US inflation data; Egypt falls | Reuters
Saudi Arabia's stock market ended higher on Sunday, snapping a four-session losing streak, after U.S. economic data showed an improving inflation landscape, although the Egyptian bourse eased following a hike in domestic prices.
U.S. prices rose moderately in June, underscoring an improving inflation environment that potentially positions the Federal Reserve to begin cutting interest rates in September.
The Fed has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range since last July. It has hiked its policy rate by 525 basis points since 2022.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.2%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 3.5%, and Al Rajhi Bank (1120.SE), opens new tab increasing 2.8%.
In Qatar, the index (.QSI), opens new tab added 0.4%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab gaining 0.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab - which traded after a session's break - lost 0.2%, hit by a 1.5% fall in Talaat Mostafa Group (TMGH.CA), opens new tab.
Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan programme for the country.
Saudi Arabia's stock market ended higher on Sunday, snapping a four-session losing streak, after U.S. economic data showed an improving inflation landscape, although the Egyptian bourse eased following a hike in domestic prices.
U.S. prices rose moderately in June, underscoring an improving inflation environment that potentially positions the Federal Reserve to begin cutting interest rates in September.
The Fed has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range since last July. It has hiked its policy rate by 525 basis points since 2022.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.2%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 3.5%, and Al Rajhi Bank (1120.SE), opens new tab increasing 2.8%.
In Qatar, the index (.QSI), opens new tab added 0.4%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab gaining 0.8%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab - which traded after a session's break - lost 0.2%, hit by a 1.5% fall in Talaat Mostafa Group (TMGH.CA), opens new tab.
Egypt raised the prices of a wide range of fuel products on Thursday, the official gazette said, four days before the International Monetary Fund (IMF) conducts a third review of its expanded $8 billion loan programme for the country.
Saturday 27 July 2024
Oil falls 1.5%, ends week lower on China demand fears | Reuters
Oil falls 1.5%, ends week lower on China demand fears | Reuters
Oil futures fell about 1.5% on Friday, finishing the week lower on declining Chinese demand and hopes of a Gaza ceasefire agreement that could ease Middle East tensions and accompanying supply concerns.
Brent crude settled down $1.24, or 1.5%, at $81.13 a barrel. West Texas Intermediate crude ended $1.12, or 1.4%, lower at $77.16 a barrel.
For the week, Brent was trading down more than 1% while WTI fell beyond 3%.
"Yesterday’s better-than-expected U.S. GDP growth figures initially supported the crude market," said George Khoury, global head of education and research at CFI. "However, these gains were overshadowed by concerns about declining Chinese oil demand."
Data released last week showing that China's total fuel oil imports, opens new tab dropped 11% in the first half of 2024 have raised concern about the wider demand outlook in China.
"The Chinese demand situation is going down the tubes here and crude oil prices are going down with it," said Bob Yawger, director of energy futures at Mizuho in New York.
China's economy, opens new tab is threatening to enter a deflationary cycle, where prices will fall because of falling demand, Yawger said.
"And that is about the worst possible scenario for a country that is the largest importer of crude oil on the planet," he said.
Meanwhile, demand from the world's top oil consumer was also expected to ease as U.S. refiners are preparing to cut back production as the end of the summer driving season in early September nears.
The nation's second largest refiner, Valero Energy (VLO.N), opens new tab, said on Thursday its 14 refineries would run at 92% of combined capacity in the third quarter. Valero's refineries ran at 94% in the second quarter.
In the Middle East, hopes of a ceasefire in Gaza have been gaining momentum.
A ceasefire has been the subject of negotiations for months, but U.S. officials believe the parties are closer than ever to an agreement for a six-week ceasefire in exchange for the release by Hamas of female, sick, elderly and wounded hostages.
Baker Hughes' count of U.S. oil drilling rigs, an early indicator of future output, increased by five to 482 this week and by three in July, raising the number of rigs for the first month since March.
Oil futures fell about 1.5% on Friday, finishing the week lower on declining Chinese demand and hopes of a Gaza ceasefire agreement that could ease Middle East tensions and accompanying supply concerns.
Brent crude settled down $1.24, or 1.5%, at $81.13 a barrel. West Texas Intermediate crude ended $1.12, or 1.4%, lower at $77.16 a barrel.
For the week, Brent was trading down more than 1% while WTI fell beyond 3%.
"Yesterday’s better-than-expected U.S. GDP growth figures initially supported the crude market," said George Khoury, global head of education and research at CFI. "However, these gains were overshadowed by concerns about declining Chinese oil demand."
Data released last week showing that China's total fuel oil imports, opens new tab dropped 11% in the first half of 2024 have raised concern about the wider demand outlook in China.
"The Chinese demand situation is going down the tubes here and crude oil prices are going down with it," said Bob Yawger, director of energy futures at Mizuho in New York.
China's economy, opens new tab is threatening to enter a deflationary cycle, where prices will fall because of falling demand, Yawger said.
"And that is about the worst possible scenario for a country that is the largest importer of crude oil on the planet," he said.
Meanwhile, demand from the world's top oil consumer was also expected to ease as U.S. refiners are preparing to cut back production as the end of the summer driving season in early September nears.
The nation's second largest refiner, Valero Energy (VLO.N), opens new tab, said on Thursday its 14 refineries would run at 92% of combined capacity in the third quarter. Valero's refineries ran at 94% in the second quarter.
In the Middle East, hopes of a ceasefire in Gaza have been gaining momentum.
A ceasefire has been the subject of negotiations for months, but U.S. officials believe the parties are closer than ever to an agreement for a six-week ceasefire in exchange for the release by Hamas of female, sick, elderly and wounded hostages.
Baker Hughes' count of U.S. oil drilling rigs, an early indicator of future output, increased by five to 482 this week and by three in July, raising the number of rigs for the first month since March.
#UAE markets hit 4-month high on strong corporate earnings | Reuters
UAE markets hit 4-month high on strong corporate earnings | Reuters
Stock exchanges in the United Arab Emirates closed at a four-month high on Friday on the back of better-than-expected corporate earnings.
Dubai's main index (.DFMGI), opens new tab surged 1%, its biggest intraday rise since March 1, boosted by strong gains in heavyweight real estate and financial sector stocks. Real estate developer Emaar Properties (EMAR.DU), opens new tab rose 2.5%.
Lender Emirates NBD Bank (ENBD.DU), opens new tab gained 3.1% following a report that India will press ahead with the delayed sale of a majority stake in IDBI Bank (IDBI.NS), opens new tab after central bank clearance. Reuters reported one of the interested buyers include Emirates NBD.
Dubai's Mashreq Bank (MASB.DU), opens new tab surged 5.1% after the lender reported a 5% growth in quarterly net profit.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains for the third straight session.
Adnoc-owned green hydrogen producer Fertiglobe (FERTIGLB.AD), opens new tab rose 2%, while real estate firm Aldar Properties (ALDAR.AD), opens new tab gained 1.3%.
Easy Lease Motorcycle Rental (EASYLEASE.AD), opens new tab increased 1.5% after reporting a higher half-yearly net profit.
Stock exchanges in the United Arab Emirates closed at a four-month high on Friday on the back of better-than-expected corporate earnings.
Dubai's main index (.DFMGI), opens new tab surged 1%, its biggest intraday rise since March 1, boosted by strong gains in heavyweight real estate and financial sector stocks. Real estate developer Emaar Properties (EMAR.DU), opens new tab rose 2.5%.
Lender Emirates NBD Bank (ENBD.DU), opens new tab gained 3.1% following a report that India will press ahead with the delayed sale of a majority stake in IDBI Bank (IDBI.NS), opens new tab after central bank clearance. Reuters reported one of the interested buyers include Emirates NBD.
Dubai's Mashreq Bank (MASB.DU), opens new tab surged 5.1% after the lender reported a 5% growth in quarterly net profit.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains for the third straight session.
Adnoc-owned green hydrogen producer Fertiglobe (FERTIGLB.AD), opens new tab rose 2%, while real estate firm Aldar Properties (ALDAR.AD), opens new tab gained 1.3%.
Easy Lease Motorcycle Rental (EASYLEASE.AD), opens new tab increased 1.5% after reporting a higher half-yearly net profit.
Wednesday 24 July 2024
#AbuDhabi Islamic Bank posts 29% higher Q2 net profit, beats analysts
Abu Dhabi Islamic Bank posts 29% higher Q2 net profit, beats analysts
Abu Dhabi Islamic Bank, the largest Islamic bank in the emirate, posted a Q2 2024 post-tax net profit of 1.58 billion dirhams ($430.2 million), up 29% year-on-year (YoY)
The net profit exceeded analysts’ mean estimate of AED 1.32 billion, according to LSEG data.
Revenue for the quarter rose 27% YoY to AED 2.8 billion, while total operating income was up 27% to AED 2.83 billion, a statement on ADX said.
Meanwhile, provision for impairment rose 31% YoY to AED 293 million.
For H1 2024, the lender made a net profit post-tax of AED 3.03 billion, up 30% YoY.
“Our first-half 2024 results reflect sustained growth across all business lines, driven by robust financing activity, a diversified funding base, and a broadening revenue mix,” acting CEO Mohamed Abdelbary said.
Abu Dhabi Islamic Bank, the largest Islamic bank in the emirate, posted a Q2 2024 post-tax net profit of 1.58 billion dirhams ($430.2 million), up 29% year-on-year (YoY)
The net profit exceeded analysts’ mean estimate of AED 1.32 billion, according to LSEG data.
Revenue for the quarter rose 27% YoY to AED 2.8 billion, while total operating income was up 27% to AED 2.83 billion, a statement on ADX said.
Meanwhile, provision for impairment rose 31% YoY to AED 293 million.
For H1 2024, the lender made a net profit post-tax of AED 3.03 billion, up 30% YoY.
“Our first-half 2024 results reflect sustained growth across all business lines, driven by robust financing activity, a diversified funding base, and a broadening revenue mix,” acting CEO Mohamed Abdelbary said.
Mideast Stocks: Stock markets in Gulf end mixed, oil near six-week low
Mideast Stocks: Stock markets in Gulf end mixed, oil near six-week low
Stock markets in the Gulf ended mixed on Wednesday as corporate earnings failed to cheer investors amid a retreat in crude prices.
Oil prices - a catalyst for the Gulf's financial markets - traded around their lowest level in six weeks, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees.
Prices also suffered due to continued concern that the economic slowdown in China, the world's biggest crude importer, would weaken global oil demand.
Dubai's main share index gained 0.3%, led by an 11.8% surge in Dubai's Parkin, which oversees public parking operations in the Emirates, ahead of its earnings announcement on Friday. Among other gainers, Mashreqbank, which is scheduled to report its second-quarter earnings on Thursday, advanced 5.5%.
In Abu Dhabi, the index added 0.3%, with the country's biggest lender First Abu Dhabi Bank rising 0.3% ahead of its earnings announcement on Wednesday. Elsewhere, Abu Dhabi Islamic Bank closed 0.7% higher. Post trading hours, the lender reported quarterly net profit of 1.58 billion dirhams ($430 million), a 29% increase year-on-year.
Stock markets in the Gulf ended mixed on Wednesday as corporate earnings failed to cheer investors amid a retreat in crude prices.
Oil prices - a catalyst for the Gulf's financial markets - traded around their lowest level in six weeks, as the northern hemisphere gets deeper into summer with limited signs of the expected fuel consumption surge the period usually sees.
Prices also suffered due to continued concern that the economic slowdown in China, the world's biggest crude importer, would weaken global oil demand.
Dubai's main share index gained 0.3%, led by an 11.8% surge in Dubai's Parkin, which oversees public parking operations in the Emirates, ahead of its earnings announcement on Friday. Among other gainers, Mashreqbank, which is scheduled to report its second-quarter earnings on Thursday, advanced 5.5%.
In Abu Dhabi, the index added 0.3%, with the country's biggest lender First Abu Dhabi Bank rising 0.3% ahead of its earnings announcement on Wednesday. Elsewhere, Abu Dhabi Islamic Bank closed 0.7% higher. Post trading hours, the lender reported quarterly net profit of 1.58 billion dirhams ($430 million), a 29% increase year-on-year.
Saudi Arabia's benchmark index ended flat. Oil giant Saudi Aramco dropped 0.4%, while Saudi Telecom Company gained 0.6% after reporting quarterly net profit of 3.03 billion riyals ($808 million), up from 3.01 billion riyals a year earlier.
Outside the Gulf, Egypt's blue-chip index fell 0.4%, hit by a 2.6% decline in E-Finance For Digital and Financial Investments. Egyptian economic growth will be slightly slower this year than thought in April following a $8 billion agreement signed with the International Monetary Fund in March, a Reuters poll showed on Monday.
Outside the Gulf, Egypt's blue-chip index fell 0.4%, hit by a 2.6% decline in E-Finance For Digital and Financial Investments. Egyptian economic growth will be slightly slower this year than thought in April following a $8 billion agreement signed with the International Monetary Fund in March, a Reuters poll showed on Monday.
#SaudiArabia’s Wealth Fund (PIF) Taps Insider to Run Investment Strategy - Bloomberg
Saudi Arabia’s Wealth Fund (PIF) Taps Insider to Run Investment Strategy - Bloomberg
Saudi Arabia’s sovereign wealth fund tapped an insider who oversaw its financing activities to run its investment strategy and economic insights division as it hunts for cash to finance the kingdom’s ambitious economic transformation.
Fahad Al Saif will start in his new role immediately, according to a statement from the $925 billion Public Investment Fund on Tuesday. He will continue to lead the PIF’s global capital finance unit, overseeing government asset transfers and fundraising.
Prior to joining the wealth fund in 2020, Al Saif was chief executive officer of the Saudi National Debt Management Center and adviser to the finance minister. He also helped establish the kingdom’s sovereign borrowing program in 2016.
As the main entity tasked with driving Crown Prince Mohammed Bin Salman’s plan to diversify the Saudi economy, the PIF has been making aggressive bets at home and abroad on new industries and technologies.
The scale of those ambitions has put pressure on both it and the kingdom and the fund has turned to debt markets to help boost firepower. Total borrowing by the PIF has risen to $125 billion compared to $85 billion a year earlier, according to its latest financial statements.
Saudi Arabia’s sovereign wealth fund tapped an insider who oversaw its financing activities to run its investment strategy and economic insights division as it hunts for cash to finance the kingdom’s ambitious economic transformation.
Fahad Al Saif will start in his new role immediately, according to a statement from the $925 billion Public Investment Fund on Tuesday. He will continue to lead the PIF’s global capital finance unit, overseeing government asset transfers and fundraising.
Prior to joining the wealth fund in 2020, Al Saif was chief executive officer of the Saudi National Debt Management Center and adviser to the finance minister. He also helped establish the kingdom’s sovereign borrowing program in 2016.
As the main entity tasked with driving Crown Prince Mohammed Bin Salman’s plan to diversify the Saudi economy, the PIF has been making aggressive bets at home and abroad on new industries and technologies.
The scale of those ambitions has put pressure on both it and the kingdom and the fund has turned to debt markets to help boost firepower. Total borrowing by the PIF has risen to $125 billion compared to $85 billion a year earlier, according to its latest financial statements.
Major Gulf markets mixed; #Saudi extends losses | Reuters
Major Gulf markets mixed; Saudi extends losses | Reuters
Major stock markets in the Gulf were mixed in early trade on Wednesday as corporate earnings failed to cheer investors, while the Saudi index was on course to fall for a third consecutive session.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.2%, with Saudi National Bank (1180.SE), opens new tab, the country's top lender, losing 0.5%.
The kingdom's economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion of the Saudi economy in 2024.
On the other hand, Saudi Telecom Company (7010.SE), opens new tab gained 0.8%, after reporting quarterly net profit of 3.03 billion riyals ($807.76 million), up from 3.01 billion riyals a year earlier.
The telco also proposed a cash dividend of 0.40 riyal per share for the second quarter.
Al Jouf Cement (3091.SE), opens new tab rose 2.2%, as the firm signed a 104.2 million riyals contract to sell cement to Webuild S.p.A for Neom projects.
The Qatari benchmark (.QSI), opens new tab lost 0.1%, hit by a 0.3% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Separately, Qatar Airways has ordered 20 more Boeing (BA.N), opens new tab 777-9 planes, expanding its order book for the U.S. planemaker's 777X family of jets to almost 100, the companies said at the Farnborough Airshow on Tuesday.
Major stock markets in the Gulf were mixed in early trade on Wednesday as corporate earnings failed to cheer investors, while the Saudi index was on course to fall for a third consecutive session.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.2%, with Saudi National Bank (1180.SE), opens new tab, the country's top lender, losing 0.5%.
The kingdom's economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion of the Saudi economy in 2024.
On the other hand, Saudi Telecom Company (7010.SE), opens new tab gained 0.8%, after reporting quarterly net profit of 3.03 billion riyals ($807.76 million), up from 3.01 billion riyals a year earlier.
The telco also proposed a cash dividend of 0.40 riyal per share for the second quarter.
Al Jouf Cement (3091.SE), opens new tab rose 2.2%, as the firm signed a 104.2 million riyals contract to sell cement to Webuild S.p.A for Neom projects.
The cement manufacturer also rescheduled two bank facilities worth 528.5 million riyals from two different lenders.
Dubai's main share index (.DFMGI), opens new tab edged 0.1% higher, helped by a 5.5% jump in MashreqBank (MASB.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%, with Abu Dhabi Islamic Bank (ADIB.AD), opens new tab gaining 0.5% ahead of its earnings announcement.
The United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab - which is scheduled to report its second-quarter earnings - eased 0.3%.
The United Arab Emirates' biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab - which is scheduled to report its second-quarter earnings - eased 0.3%.
The Qatari benchmark (.QSI), opens new tab lost 0.1%, hit by a 0.3% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Separately, Qatar Airways has ordered 20 more Boeing (BA.N), opens new tab 777-9 planes, expanding its order book for the U.S. planemaker's 777X family of jets to almost 100, the companies said at the Farnborough Airshow on Tuesday.
Tuesday 23 July 2024
Mubadala-Backed Fortress Sees Assets Doubling to $100 Billion - Bloomberg
Mubadala-Backed Fortress Sees Assets Doubling to $100 Billion - Bloomberg
Fortress Investment Group, the firm backed by Abu Dhabi sovereign wealth fund Mubadala, said it expects to double assets under management to $100 billion as it pushes into private wealth and insurance.
“For us to compete with larger firms like Ares, Apollo and Sixth Street, we need to continue to grow assets, because if we don’t then we’ll be less relevant,” said co-Chief Executive Officer Drew McKnight. Fortress aims to be among the first in line to help companies with their capital needs, he said, providing junior debt, preferred equity and structured equity, among other things.
“Increasingly we hear from limited partners that they want to have fewer relationships,” McKnight said in an interview. “We feel like we’re in a pretty good spot.”
Buoyed by the allure of permanent capital, several alternative-asset managers, including Apollo Global Management Inc. and KKR & Co., have made a push to tap pools of insurance assets. Many have also built businesses to tap high-net-worth individuals who are increasingly interested in private markets.
McKnight was joined in the interview by co-CEO Joshua Pack, who said Fortress expects to reach the $100 billion threshold within five years — up from about $49 billion at the end of March — “based on conversations we’re having with limited partners and the demand we’ve seen.”
Fortress won’t let fundraising distract from its mission to deliver superior returns for investors, McKnight said.
“There’s a path where we can actually create a better product for our limited partners by having more access to capital and being more relevant,” he said.
Pack, who joined the firm in 2002, and McKnight, who followed three years later, both witnessed the alternative-asset manager’s transition from closely held firm, through its 2007 initial public offering, to its take-private a decade later by Masayoshi Son’s SoftBank Group Corp.
Last month, Fortress management and Mubadala completed the acquisition of 90% of the equity of Fortress that had been held by SoftBank. The co-CEOs are calling the firm’s latest incarnation “Fortress 4.0.”
It’s the first time that management has broadly owned a significant part of the firm, with more than 150 Fortress staffers holding a 32% stake. Co-Chairman Pete Briger and managing partners Pack, McKnight and Jack Neumark are the largest individual investors, and all wrote checks as part of the deal. Additional Fortress employees can become shareholders over time through an incentive program.
Unlike certain direct-lending rivals that have pursued bank partnerships to bolster origination pipelines, McKnight said the firm has ample flow.
While Mubadala is represented on Fortress’s board by Hani Barhoush and Antoun Ghanem, McKnight stressed that the Abu Dhabi firm has no preferred economics.
“They’re paying the same fees as everyone else when they invest in our funds,” McKnight said. “We are eyes-wide-open that they are invested with virtually all of our competitors, but we also think if we’re going to have capital partners, they’re about as strategic as it can be.”
Fortress, which counts North America, Western Europe, Japan and Australia as core geographies, plans to open an office in Abu Dhabi, Pack said. Investment professionals including intellectual-property head Eran Zur will spend time there, as will Harry Steel, a managing director within the firm’s capital-formation group.
The firm’s leaders haven’t ruled out another IPO down the road.
“Anything’s on the table,” Pack said, “but it is one step at a time, and we are focused on everything we want to do in the near-term.”
Fortress Investment Group, the firm backed by Abu Dhabi sovereign wealth fund Mubadala, said it expects to double assets under management to $100 billion as it pushes into private wealth and insurance.
“For us to compete with larger firms like Ares, Apollo and Sixth Street, we need to continue to grow assets, because if we don’t then we’ll be less relevant,” said co-Chief Executive Officer Drew McKnight. Fortress aims to be among the first in line to help companies with their capital needs, he said, providing junior debt, preferred equity and structured equity, among other things.
“Increasingly we hear from limited partners that they want to have fewer relationships,” McKnight said in an interview. “We feel like we’re in a pretty good spot.”
Buoyed by the allure of permanent capital, several alternative-asset managers, including Apollo Global Management Inc. and KKR & Co., have made a push to tap pools of insurance assets. Many have also built businesses to tap high-net-worth individuals who are increasingly interested in private markets.
McKnight was joined in the interview by co-CEO Joshua Pack, who said Fortress expects to reach the $100 billion threshold within five years — up from about $49 billion at the end of March — “based on conversations we’re having with limited partners and the demand we’ve seen.”
Fortress won’t let fundraising distract from its mission to deliver superior returns for investors, McKnight said.
“There’s a path where we can actually create a better product for our limited partners by having more access to capital and being more relevant,” he said.
Pack, who joined the firm in 2002, and McKnight, who followed three years later, both witnessed the alternative-asset manager’s transition from closely held firm, through its 2007 initial public offering, to its take-private a decade later by Masayoshi Son’s SoftBank Group Corp.
Last month, Fortress management and Mubadala completed the acquisition of 90% of the equity of Fortress that had been held by SoftBank. The co-CEOs are calling the firm’s latest incarnation “Fortress 4.0.”
It’s the first time that management has broadly owned a significant part of the firm, with more than 150 Fortress staffers holding a 32% stake. Co-Chairman Pete Briger and managing partners Pack, McKnight and Jack Neumark are the largest individual investors, and all wrote checks as part of the deal. Additional Fortress employees can become shareholders over time through an incentive program.
Unlike certain direct-lending rivals that have pursued bank partnerships to bolster origination pipelines, McKnight said the firm has ample flow.
While Mubadala is represented on Fortress’s board by Hani Barhoush and Antoun Ghanem, McKnight stressed that the Abu Dhabi firm has no preferred economics.
“They’re paying the same fees as everyone else when they invest in our funds,” McKnight said. “We are eyes-wide-open that they are invested with virtually all of our competitors, but we also think if we’re going to have capital partners, they’re about as strategic as it can be.”
Fortress, which counts North America, Western Europe, Japan and Australia as core geographies, plans to open an office in Abu Dhabi, Pack said. Investment professionals including intellectual-property head Eran Zur will spend time there, as will Harry Steel, a managing director within the firm’s capital-formation group.
The firm’s leaders haven’t ruled out another IPO down the road.
“Anything’s on the table,” Pack said, “but it is one step at a time, and we are focused on everything we want to do in the near-term.”
ADIA Weighs €1 Billion Investment in Nestle Ice Cream Venture - Bloomberg
ADIA Weighs €1 Billion Investment in Nestle Ice Cream Venture - Bloomberg
Abu Dhabi’s biggest sovereign wealth fund is considering investing at least €1 billion ($1.1 billion) in Nestle SA’s ice cream joint venture, which includes brands like Haagen-Dazs, according to people familiar with the matter.
The Abu Dhabi Investment Authority, which controls almost $1 trillion of assets, is working with advisers as it considers committing fresh capital to Nestle’s Froneri ice cream venture with buyout firm PAI Partners, the people said.
A deal would help PAI hold onto its Froneri stake for longer and could value the business at $10 billion or more, according to the people. PAI has been seeking new investors for a so-called continuation fund that would help it extend the lifespan of its investment in Froneri, Bloomberg News has reported.
No final agreements have been reached with ADIA and other investors could also emerge to back Froneri, the people said, asking not to be identified because the information is private. Representatives for ADIA, Nestle and PAI declined to comment.
Buyout firms increasingly have turned to continuation vehicles to deal with a backlog of investments as dealmaking has slowed over the past couple of years. PAI this year started exploring strategic options for Froneri, including a possible stock market listing.
Froneri competes with Unilever Plc’s ice cream unit. That business has drawn initial interest from buyout firms including Advent International, Blackstone Inc., Cinven and CVC Capital Partners Plc, Bloomberg News reported on Friday.
ADIA has emerged as one of the most active investors in the private equity industry in the last few years, providing capital to some of the sector’s largest deals. The wealth fund teamed up with investors including CVC on a potential transaction to take Hargreaves Lansdown Plc private for about £5.4 billion ($7 billion). It’s also among investors backing CVC in its bid for Deutsche Bahn AG’s logistics unit DB Schenker, which could be valued at about €15 billion or more.
PAI bought UK-based R&R Ice Cream in 2013 from Oaktree Capital Management and other investors. In 2016 it combined that business with part of Nestle’s ice cream empire to create Froneri.
Abu Dhabi’s biggest sovereign wealth fund is considering investing at least €1 billion ($1.1 billion) in Nestle SA’s ice cream joint venture, which includes brands like Haagen-Dazs, according to people familiar with the matter.
The Abu Dhabi Investment Authority, which controls almost $1 trillion of assets, is working with advisers as it considers committing fresh capital to Nestle’s Froneri ice cream venture with buyout firm PAI Partners, the people said.
A deal would help PAI hold onto its Froneri stake for longer and could value the business at $10 billion or more, according to the people. PAI has been seeking new investors for a so-called continuation fund that would help it extend the lifespan of its investment in Froneri, Bloomberg News has reported.
No final agreements have been reached with ADIA and other investors could also emerge to back Froneri, the people said, asking not to be identified because the information is private. Representatives for ADIA, Nestle and PAI declined to comment.
Buyout firms increasingly have turned to continuation vehicles to deal with a backlog of investments as dealmaking has slowed over the past couple of years. PAI this year started exploring strategic options for Froneri, including a possible stock market listing.
Froneri competes with Unilever Plc’s ice cream unit. That business has drawn initial interest from buyout firms including Advent International, Blackstone Inc., Cinven and CVC Capital Partners Plc, Bloomberg News reported on Friday.
ADIA has emerged as one of the most active investors in the private equity industry in the last few years, providing capital to some of the sector’s largest deals. The wealth fund teamed up with investors including CVC on a potential transaction to take Hargreaves Lansdown Plc private for about £5.4 billion ($7 billion). It’s also among investors backing CVC in its bid for Deutsche Bahn AG’s logistics unit DB Schenker, which could be valued at about €15 billion or more.
PAI bought UK-based R&R Ice Cream in 2013 from Oaktree Capital Management and other investors. In 2016 it combined that business with part of Nestle’s ice cream empire to create Froneri.
Most Gulf markets gain on positive earnings; #Saudi eases | Reuters
Most Gulf markets gain on positive earnings; Saudi eases | Reuters
Most stock markets in the Gulf ended higher on Tuesday, helped by positive corporate earnings, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
Dubai's main share index (.DFMGI), opens new tab advanced 0.9%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 0.9%, while Emirates Integrated Telecommunications (DU.DU), opens new tab closed 1.7% higher, following a sharp rise in second-quarter earnings.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, extending losses from the previous session, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 2.7%, and oil giant Saudi Aramco (2222.SE), opens new tab retreating 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - dipped as growing expectations of a ceasefire in the war in Gaza weighed on prices, more than offsetting news of a potential September interest-rate cut in the European Union that supported sentiment.
In Abu Dhabi, the index (.FTFDGI), opens new tab dropped 0.5%, ending a six-session winning streak.
The United Arab Emirates hopes to reactivate trade talks with the European Union by the end of the year, the UAE trade minister said on Monday, and is optimistic the talks would be bilateral.
The Qatari benchmark (.QSI), opens new tab added 0.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 0.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.7% higher, led by a 0.7% increase in top lender Commercial International Bank (COMI.CA), opens new tab.
On Sunday, the lender said second-quarter net profit rose by 96% year-on-year to 15.6 billion Egyptian pounds ($322.91 million).
Egypt reduced its external debt by $14 billion in the five months to end-May, the sharpest such decline in the country's history, a statement released on Monday by Egypt's press centre said.
Most stock markets in the Gulf ended higher on Tuesday, helped by positive corporate earnings, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
Dubai's main share index (.DFMGI), opens new tab advanced 0.9%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 0.9%, while Emirates Integrated Telecommunications (DU.DU), opens new tab closed 1.7% higher, following a sharp rise in second-quarter earnings.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, extending losses from the previous session, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 2.7%, and oil giant Saudi Aramco (2222.SE), opens new tab retreating 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - dipped as growing expectations of a ceasefire in the war in Gaza weighed on prices, more than offsetting news of a potential September interest-rate cut in the European Union that supported sentiment.
In Abu Dhabi, the index (.FTFDGI), opens new tab dropped 0.5%, ending a six-session winning streak.
The United Arab Emirates hopes to reactivate trade talks with the European Union by the end of the year, the UAE trade minister said on Monday, and is optimistic the talks would be bilateral.
The Qatari benchmark (.QSI), opens new tab added 0.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab gaining 0.3%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.7% higher, led by a 0.7% increase in top lender Commercial International Bank (COMI.CA), opens new tab.
On Sunday, the lender said second-quarter net profit rose by 96% year-on-year to 15.6 billion Egyptian pounds ($322.91 million).
Egypt reduced its external debt by $14 billion in the five months to end-May, the sharpest such decline in the country's history, a statement released on Monday by Egypt's press centre said.
Most major Gulf markets gain as investors eye earnings | Reuters
Most major Gulf markets gain as investors eye earnings | Reuters
Most major stock markets in the Gulf rose in early trade on Tuesday, helped by positive earnings, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 0.8%, while Emirates Integrated Telecommunications (DU.DU), opens new tab advanced 1.5%, following a sharp rise in second-quarter earnings.
In Abu Dhabi, the index (.FTFDGI), opens new tab added 0.1%.
The United Arab Emirates hopes to reactivate trade talks with the European Union by the end of the year, the UAE trade minister said on Monday, and is optimistic the talks would be bilateral.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 0.9% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab was down 1.2%.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.5%.
Crude prices - which hit a one-month low on Monday - steadied, as investors remained cautious amid expectations of plentiful supplies and weak demand, while brushing off the U.S. presidential campaign upheaval.
The kingdom's economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
Among other losers, telecoms firm Etihad Etisalat Co (7020.SE), opens new tab lost 0.6%, despite reporting a rise in quarterly net profit.
In Qatar, the index (.QSI), opens new tab added 0.1%, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Most major stock markets in the Gulf rose in early trade on Tuesday, helped by positive earnings, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
Dubai's main share index (.DFMGI), opens new tab gained 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 0.8%, while Emirates Integrated Telecommunications (DU.DU), opens new tab advanced 1.5%, following a sharp rise in second-quarter earnings.
In Abu Dhabi, the index (.FTFDGI), opens new tab added 0.1%.
The United Arab Emirates hopes to reactivate trade talks with the European Union by the end of the year, the UAE trade minister said on Monday, and is optimistic the talks would be bilateral.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 0.9% and the country's biggest lender Saudi National Bank (1180.SE), opens new tab was down 1.2%.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab eased 0.5%.
Crude prices - which hit a one-month low on Monday - steadied, as investors remained cautious amid expectations of plentiful supplies and weak demand, while brushing off the U.S. presidential campaign upheaval.
The kingdom's economic growth will likely be one of the slowest among the Gulf Cooperation Council countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
Among other losers, telecoms firm Etihad Etisalat Co (7020.SE), opens new tab lost 0.6%, despite reporting a rise in quarterly net profit.
In Qatar, the index (.QSI), opens new tab added 0.1%, helped by a 0.4% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.
Monday 22 July 2024
#SaudiArabia's growth this year marred by lower for longer oil output | Reuters
Saudi Arabia's growth this year marred by lower for longer oil output | Reuters
Saudi Arabia's economic growth will likely be one of the slowest among the Gulf Cooperation Council (GCC) countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, were expected to start raising production this year but in June said the reductions would continue well into 2025.
Despite the war in the Middle East, oil prices have struggled to stay above $80 per barrel, prompting the International Monetary Fund (IMF) to cut this year's growth forecast for Saudi Arabia, the largest economy in the region.
The latest Reuters poll of 24 economists taken July 8-22 showed Saudi Arabia's economy would expand 1.3% this year, down from 1.9% forecast in an April survey and substantially lower than the 3.0% predicted in January.
"Lower oil revenues are impacting non-oil growth. Saudi Arabia is in the process of an overhaul of Vision 2030 and adjusting investment spending...The impact on real GDP growth is clear – less investment means a more moderate growth outlook," said Ralf Wiegert, director of MENA economics at S&P Global Market Intelligence.
Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion in 2024.
But the Saudi growth forecast for 2025 was upped to 4.5% from 4.1%in April.
"Expected growth has been increased for 2025...The reason for that is a change in expected oil production, which we think will be increased earlier than previously projected – though not back to the level that prevailed until July 2023," added Wiegert.
The United Arab Emirates (UAE), also focused on diversifying its economy, was expected to expand faster than its neighbour this year - 3.7% - as it soon ramps up oil production and continues to focus on tourism, followed by 4.2% growth in 2025.
Saudi Arabia's economic growth will likely be one of the slowest among the Gulf Cooperation Council (GCC) countries this year, according to a Reuters poll of economists who lowered growth forecasts from three months ago due to extended oil output cuts.
The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, were expected to start raising production this year but in June said the reductions would continue well into 2025.
Despite the war in the Middle East, oil prices have struggled to stay above $80 per barrel, prompting the International Monetary Fund (IMF) to cut this year's growth forecast for Saudi Arabia, the largest economy in the region.
The latest Reuters poll of 24 economists taken July 8-22 showed Saudi Arabia's economy would expand 1.3% this year, down from 1.9% forecast in an April survey and substantially lower than the 3.0% predicted in January.
"Lower oil revenues are impacting non-oil growth. Saudi Arabia is in the process of an overhaul of Vision 2030 and adjusting investment spending...The impact on real GDP growth is clear – less investment means a more moderate growth outlook," said Ralf Wiegert, director of MENA economics at S&P Global Market Intelligence.
Economists said lower oil revenues were likely to constrain investments in non-oil sectors, affecting the overall expansion in 2024.
But the Saudi growth forecast for 2025 was upped to 4.5% from 4.1%in April.
"Expected growth has been increased for 2025...The reason for that is a change in expected oil production, which we think will be increased earlier than previously projected – though not back to the level that prevailed until July 2023," added Wiegert.
The United Arab Emirates (UAE), also focused on diversifying its economy, was expected to expand faster than its neighbour this year - 3.7% - as it soon ramps up oil production and continues to focus on tourism, followed by 4.2% growth in 2025.
Gulf bourses end mixed on earnings, US rate-cut hopes | Reuters
Gulf bourses end mixed on earnings, US rate-cut hopes | Reuters
Stock markets in the Gulf ended mixed on Monday ahead of more corporate earnings this week, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
The Fed is due to review policy next on July 30-31. Investors expect it to keep rates unchanged, but they will look for further evidence that a cut will happen at the September meeting.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.2%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 2.9% while ACWA Power Company (2082.SE), opens new tab was down 3.3%.
Oil prices - a catalyst for the Gulf's financial markets - dipped after Joe Biden announced he would not seek a second term as U.S. president, and while investors watched for more signs that U.S. interest rates could be cut as early as September.
In Qatar, the index (.QSI), opens new tab finished 0.6% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1% and Qatar International Islamic Bank (QIIB.QA), opens new tab increasing 2% following a rise in first-half net profit.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with MashreqBank (MASB.DU), opens new tab retreating 3.3%.
Separately, budget carrier flydubai's fleet expansion plans have been hit by delays to Boeing's (BA.N), opens new tab aircraft delivery schedule, the Dubai airline said on Monday.
flydubai, which has more than 125 Boeing 737 MAX jets on order to be delivered over the next decade, urged the U.S. manufacturer to "honour and renew its commitment" to meet its delivery obligations.
The Abu Dhabi index (.FTFADGI), opens new tab closed 0.4% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.7%, led by a 2.7% jump in top lender Commercial International Bank (COMI.CA), opens new tab after it posted a sharp rise in second-quarter net profit.
Stock markets in the Gulf ended mixed on Monday ahead of more corporate earnings this week, while investors watched for further signs that the U.S. Federal Reserve might start to cut interest rates as soon as September.
The Fed is due to review policy next on July 30-31. Investors expect it to keep rates unchanged, but they will look for further evidence that a cut will happen at the September meeting.
Monetary policy in the six-member Gulf Cooperation Council is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.2%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 2.9% while ACWA Power Company (2082.SE), opens new tab was down 3.3%.
Oil prices - a catalyst for the Gulf's financial markets - dipped after Joe Biden announced he would not seek a second term as U.S. president, and while investors watched for more signs that U.S. interest rates could be cut as early as September.
In Qatar, the index (.QSI), opens new tab finished 0.6% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1% and Qatar International Islamic Bank (QIIB.QA), opens new tab increasing 2% following a rise in first-half net profit.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, with MashreqBank (MASB.DU), opens new tab retreating 3.3%.
Separately, budget carrier flydubai's fleet expansion plans have been hit by delays to Boeing's (BA.N), opens new tab aircraft delivery schedule, the Dubai airline said on Monday.
flydubai, which has more than 125 Boeing 737 MAX jets on order to be delivered over the next decade, urged the U.S. manufacturer to "honour and renew its commitment" to meet its delivery obligations.
The Abu Dhabi index (.FTFADGI), opens new tab closed 0.4% higher.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.7%, led by a 2.7% jump in top lender Commercial International Bank (COMI.CA), opens new tab after it posted a sharp rise in second-quarter net profit.
Ray Dalio’s Exit Terms at Bridgewater Said to Delay #AbuDhabi Plans - Bloomberg
Ray Dalio’s Exit Terms at Bridgewater Said to Delay Abu Dhabi Plans - Bloomberg
An investment partnership between Ray Dalio’s family office and Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan has been delayed as Bridgewater Associates grapples with the legal terms of its billionaire founder’s exit from the firm.
One of the questions is whether Dalio, who built Bridgewater into a $160 billion behemoth, might use the company’s intellectual property if he proceeds with the tie-up, according to people with direct knowledge of the matter.
The 74-year-old signed a non-compete agreement upon departing the world’s largest hedge fund several years ago, the people said, requesting anonymity as the matter is private. Dalio’s planned venture with Sheikh Tahnoon, one of Bridgewater’s top clients, will put that contract under the microscope, they said.
“Bridgewater and Ray have both communicated that there have been no discussions or conflicts between Ray and Bridgewater on those topics, and that anything suggesting otherwise is completely false,” Dalio and Bridgewater said in a statement. “Bridgewater does not comment on its client partnerships, past or present.”
The American investor and Emirati royal were planning to launch the partnership in the middle of last year, according to people familiar with the matter. They’ve been looking to team up on an asset management arm based within Abu Dhabi’s international financial center for G42, the artificial intelligence firm set up by Sheikh Tahnoon, the people said.
Dalio could potentially manage some of the money for a fee, they said, though he has been providing informal advice in the interim.
Representatives for the Dalio Family Office didn’t respond to requests for comment. A G42 spokesperson confirmed that the firm and the DFO are exploring ways of cooperating, though they’ve yet to enter any formal business collaboration.
Dalio has been the face of Abu Dhabi’s recent success in drawing hedge fund luminaries and set up a branch of his personal investment firm in the emirate last year. That’s part of a broader collaboration with Sheikh Tahnoon — the money man for the world’s richest family. Abu Dhabi Investment Authority, now chaired by the royal, was one of Bridgewater’s top backers when Dalio started the firm half a century ago.
While a formal launch of the DFO-G42 partnership has stalled, several employees have moved between the two companies.
Among them is Ali Hegazi, who recently joined Dalio’s family office in Abu Dhabi as director of investment research and strategy following previous stints at G42 and ADIA, according to people familiar with the matter.
G42, which has ambitions to become an AI superpower in the Middle East, has faced scrutiny on some of its investments. Earlier this year, its chief executive pledged to turn away from China in favor of the US. A new investment vehicle in Abu Dhabi recently took over the management of the company’s China-focused fund, keeping the assets in the hands of Sheikh Tahnoon, Bloomberg News has reported.
Dalio and G42 have already teamed up in the environmental space, working on oceanic research as part of a project aimed at protecting Indonesia’s marine ecosystem.
An investment partnership between Ray Dalio’s family office and Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan has been delayed as Bridgewater Associates grapples with the legal terms of its billionaire founder’s exit from the firm.
One of the questions is whether Dalio, who built Bridgewater into a $160 billion behemoth, might use the company’s intellectual property if he proceeds with the tie-up, according to people with direct knowledge of the matter.
The 74-year-old signed a non-compete agreement upon departing the world’s largest hedge fund several years ago, the people said, requesting anonymity as the matter is private. Dalio’s planned venture with Sheikh Tahnoon, one of Bridgewater’s top clients, will put that contract under the microscope, they said.
“Bridgewater and Ray have both communicated that there have been no discussions or conflicts between Ray and Bridgewater on those topics, and that anything suggesting otherwise is completely false,” Dalio and Bridgewater said in a statement. “Bridgewater does not comment on its client partnerships, past or present.”
The American investor and Emirati royal were planning to launch the partnership in the middle of last year, according to people familiar with the matter. They’ve been looking to team up on an asset management arm based within Abu Dhabi’s international financial center for G42, the artificial intelligence firm set up by Sheikh Tahnoon, the people said.
Dalio could potentially manage some of the money for a fee, they said, though he has been providing informal advice in the interim.
Representatives for the Dalio Family Office didn’t respond to requests for comment. A G42 spokesperson confirmed that the firm and the DFO are exploring ways of cooperating, though they’ve yet to enter any formal business collaboration.
Dalio has been the face of Abu Dhabi’s recent success in drawing hedge fund luminaries and set up a branch of his personal investment firm in the emirate last year. That’s part of a broader collaboration with Sheikh Tahnoon — the money man for the world’s richest family. Abu Dhabi Investment Authority, now chaired by the royal, was one of Bridgewater’s top backers when Dalio started the firm half a century ago.
While a formal launch of the DFO-G42 partnership has stalled, several employees have moved between the two companies.
Among them is Ali Hegazi, who recently joined Dalio’s family office in Abu Dhabi as director of investment research and strategy following previous stints at G42 and ADIA, according to people familiar with the matter.
G42, which has ambitions to become an AI superpower in the Middle East, has faced scrutiny on some of its investments. Earlier this year, its chief executive pledged to turn away from China in favor of the US. A new investment vehicle in Abu Dhabi recently took over the management of the company’s China-focused fund, keeping the assets in the hands of Sheikh Tahnoon, Bloomberg News has reported.
Dalio and G42 have already teamed up in the environmental space, working on oceanic research as part of a project aimed at protecting Indonesia’s marine ecosystem.
Mideast IPO Appetite Strong, Will Continue to See Reasonable Supply: Nomura's #Fadlallah
Mideast IPO Appetite Strong, Will Continue to See Reasonable Supply: Nomura's Fadlallah
Nomura Asset Management Middle East CEO Tarek Fadlallah says IPOs in the Gulf region should continue to see good demand, in an interview with Joumanna Bercetche on Horizons: Middle East & Africa. (Source: Bloomberg)
Watch HSBC's Williams on Middle East, Asia Trade - Bloomberg
Watch HSBC's Williams on Middle East, Asia Trade - Bloomberg
Simon Williams, HSBC CEEMEA Chief Economist, discusses Middle East trade with Asia. He speaks with Joumanna Bercetche and Jennifer Zabasajja on Horizons: Middle East & Africa. (Source: Bloomberg)
Simon Williams, HSBC CEEMEA Chief Economist, discusses Middle East trade with Asia. He speaks with Joumanna Bercetche and Jennifer Zabasajja on Horizons: Middle East & Africa. (Source: Bloomberg)
Sovereign Funds Are Turning Bullish on Emerging Markets, Invesco Survey Shows - Bloomberg
Sovereign Funds Are Turning Bullish on Emerging Markets, Invesco Survey Shows - Bloomberg
Sovereign wealth funds and central banks that oversee $22 trillion in assets expect emerging-market assets to benefit from rising geopolitical tensions, an annual survey by Invesco Asset Management shows.
Two thirds of the respondents expect emerging-market returns to match or beat those from developed markets over the next three years, with non-western SWFs more keen on the relative outperformance, according to the survey conducted among 83 sovereign wealth funds and 57 central banks during the first quarter of 2024.
The idea is that tensions between the US and China favor developing countries as companies shift supply chains across locations and suppliers amid concerns over rising trade barriers between the world’s two largest economies.
Investors aren’t treating developing markets as a homogeneous bloc, with emerging Asian countries, excluding China, becoming a favorite. India in particular has become the top play thanks to its large domestic market and growing middle class, with 88% of respondents expressing interest in increasing exposure to the country’s debt, up from 66% in 2022.
Indonesia is also getting more interest with 47% looking to increase exposure to its debt, up from 27% in 2022, while China saw a decline to 35% from 71%, according to Invesco.
Over half of the survey’s participants invest in emerging-market debt, with more than two thirds of these holding both local and hard currency bonds, often through ETFs. Dollar-denominated government and corporate bonds from emerging issuers gained 3.4% this year, compared with a 1.3% loss on global aggregate debt and a 2.8% loss on US Treasuries, Bloomberg indexes show.
The survey also showed rising popularity of private credit among sovereign investors, with two-thirds of them planning to increase their allocation in the coming year. The interest can be attributed to factors such as the sector’s “strong performance” and its use as a diversification strategy compared with fixed-income.
Overall, fixed-income allocations remained steady at 28% while equity allocations increased to 32% this year from 30% a year ago, the survey showed. The optimism about steady or accelerating global growth over the next 18 months, and confidence in the US economy, is tempered by a range of risks including geopolitical tensions and sticky inflation.
The impact of geopolitics — including discussions over whether to confiscate currently frozen Russian reserves to help Ukraine — are pushing central banks toward gold, according to the survey. Nearly half of the respondents also said that rising US debt levels have increased the metal’s appeal.
Sovereign wealth funds and central banks that oversee $22 trillion in assets expect emerging-market assets to benefit from rising geopolitical tensions, an annual survey by Invesco Asset Management shows.
Two thirds of the respondents expect emerging-market returns to match or beat those from developed markets over the next three years, with non-western SWFs more keen on the relative outperformance, according to the survey conducted among 83 sovereign wealth funds and 57 central banks during the first quarter of 2024.
The idea is that tensions between the US and China favor developing countries as companies shift supply chains across locations and suppliers amid concerns over rising trade barriers between the world’s two largest economies.
Investors aren’t treating developing markets as a homogeneous bloc, with emerging Asian countries, excluding China, becoming a favorite. India in particular has become the top play thanks to its large domestic market and growing middle class, with 88% of respondents expressing interest in increasing exposure to the country’s debt, up from 66% in 2022.
Indonesia is also getting more interest with 47% looking to increase exposure to its debt, up from 27% in 2022, while China saw a decline to 35% from 71%, according to Invesco.
Over half of the survey’s participants invest in emerging-market debt, with more than two thirds of these holding both local and hard currency bonds, often through ETFs. Dollar-denominated government and corporate bonds from emerging issuers gained 3.4% this year, compared with a 1.3% loss on global aggregate debt and a 2.8% loss on US Treasuries, Bloomberg indexes show.
The survey also showed rising popularity of private credit among sovereign investors, with two-thirds of them planning to increase their allocation in the coming year. The interest can be attributed to factors such as the sector’s “strong performance” and its use as a diversification strategy compared with fixed-income.
Overall, fixed-income allocations remained steady at 28% while equity allocations increased to 32% this year from 30% a year ago, the survey showed. The optimism about steady or accelerating global growth over the next 18 months, and confidence in the US economy, is tempered by a range of risks including geopolitical tensions and sticky inflation.
The impact of geopolitics — including discussions over whether to confiscate currently frozen Russian reserves to help Ukraine — are pushing central banks toward gold, according to the survey. Nearly half of the respondents also said that rising US debt levels have increased the metal’s appeal.
BlackRock Boosts Mideast Presence, Relocates Strategist to #Dubai - Bloomberg
BlackRock Boosts Mideast Presence, Relocates Strategist to Dubai - Bloomberg
BlackRock Inc. is expanding its research division to the Middle East and relocating a senior strategist to Dubai as it seeks closer ties with clients in the region.
The asset management giant named Ben Powell as the chief strategist for Middle East and Asia Pacific of its so-called BlackRock Investment Institute, the unit that publishes research for its portfolio managers and clients about the global economy, geopolitics and financial markets.
Powell, a 23-year capital markets veteran, moves to Dubai from Singapore. He will focus on “building proprietary Middle East macroeconomic, markets and multi-asset class insights,” according to a statement. He’ll continue to oversee the unit’s activities in the APAC region.
“The Middle East presents a dynamic and exciting investment landscape, with a growing young population, evolving financial markets and innovative funds,” Powell said.
BlackRock, which oversees more than $100 billion in the Middle East and Africa, has been boosting its presence in the Gulf region. It’s agreed to set up a Riyadh-based investments team after getting as much as $5 billion from Saudi Arabia’s sovereign wealth fund. Last month, it also appointed a former Goldman Sachs Group Inc. executive to head its United Arab Emirates branch.
BlackRock Inc. is expanding its research division to the Middle East and relocating a senior strategist to Dubai as it seeks closer ties with clients in the region.
The asset management giant named Ben Powell as the chief strategist for Middle East and Asia Pacific of its so-called BlackRock Investment Institute, the unit that publishes research for its portfolio managers and clients about the global economy, geopolitics and financial markets.
Powell, a 23-year capital markets veteran, moves to Dubai from Singapore. He will focus on “building proprietary Middle East macroeconomic, markets and multi-asset class insights,” according to a statement. He’ll continue to oversee the unit’s activities in the APAC region.
“The Middle East presents a dynamic and exciting investment landscape, with a growing young population, evolving financial markets and innovative funds,” Powell said.
BlackRock, which oversees more than $100 billion in the Middle East and Africa, has been boosting its presence in the Gulf region. It’s agreed to set up a Riyadh-based investments team after getting as much as $5 billion from Saudi Arabia’s sovereign wealth fund. Last month, it also appointed a former Goldman Sachs Group Inc. executive to head its United Arab Emirates branch.
Doha Bank’s H1 2024 profit rises 10% to $119mln
Doha Bank’s H1 2024 profit rises 10% to $119mln
Doha Bank said its net profit for the first half of 2024 rose 10.3% year-on-year (YoY) to 432 million Qatari riyals ($118.5 million) on higher loans and advances.
Net loans and advances reached QAR 59 billion, up 5.7% YoY, the bank said in a filing on the Qatar Stock Exchange.
Customer deposits surged 17% to QAR 51.6 billion as of June 30, 2024, compared to QAR 44.1 billion last year.
Total assets stood at QAR 105.9 billion as of June 30, 2024, rising 13.8% from QAR 93.0 billion a year earlier.
Doha Bank said its net profit for the first half of 2024 rose 10.3% year-on-year (YoY) to 432 million Qatari riyals ($118.5 million) on higher loans and advances.
Net loans and advances reached QAR 59 billion, up 5.7% YoY, the bank said in a filing on the Qatar Stock Exchange.
Customer deposits surged 17% to QAR 51.6 billion as of June 30, 2024, compared to QAR 44.1 billion last year.
Total assets stood at QAR 105.9 billion as of June 30, 2024, rising 13.8% from QAR 93.0 billion a year earlier.
Major Gulf markets gain on earnings, US rate-cut hopes; #Dubai eases | Reuters
Major Gulf markets gain on earnings, US rate-cut hopes; Dubai eases | Reuters
Most major stock markets in the Gulf rose in early trade on Monday, helped by positive earnings, while investors watched for further signs that the U.S. Federal reserve might start to cut interest rates as soon as September.
The U.S. Federal Reserve is due to review policy next on July 30-31, when investors expect it to keep rates unchanged. But they will look for further evidence that a cut will happen at the September meeting.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, with Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab advancing 5.7%.
The kingdom's mining minister will visit Brazil and Chile over the coming two weeks, the ministry said on Sunday, as the world's leading oil exporter seeks to expand its international presence in mining.
In Qatar, the index (.QSI), opens new tab added 0.4%, with Qatar International Islamic Bank (QIIB.QA), opens new tab increasing 1.8%, following a rise in first-half net profit.
Elsewhere, Doha Bank (DOBK.QA), opens new tab added 0.3%, after reporting an increase in second-quarter net profit.
The Abu Dhabi index (.FTFADGI), opens new tab was up 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - inched higher, with scant sign of progress on a ceasefire deal in Gaza as Israeli forces battled Palestinian fighters in the southern city of Rafah on Sunday.
Dubai's main share index (.DFMGI), opens new tab, however, slipped 0.2%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 0.8%.
Most major stock markets in the Gulf rose in early trade on Monday, helped by positive earnings, while investors watched for further signs that the U.S. Federal reserve might start to cut interest rates as soon as September.
The U.S. Federal Reserve is due to review policy next on July 30-31, when investors expect it to keep rates unchanged. But they will look for further evidence that a cut will happen at the September meeting.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, with Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab advancing 5.7%.
The kingdom's mining minister will visit Brazil and Chile over the coming two weeks, the ministry said on Sunday, as the world's leading oil exporter seeks to expand its international presence in mining.
In Qatar, the index (.QSI), opens new tab added 0.4%, with Qatar International Islamic Bank (QIIB.QA), opens new tab increasing 1.8%, following a rise in first-half net profit.
Elsewhere, Doha Bank (DOBK.QA), opens new tab added 0.3%, after reporting an increase in second-quarter net profit.
The Abu Dhabi index (.FTFADGI), opens new tab was up 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - inched higher, with scant sign of progress on a ceasefire deal in Gaza as Israeli forces battled Palestinian fighters in the southern city of Rafah on Sunday.
Dubai's main share index (.DFMGI), opens new tab, however, slipped 0.2%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 0.8%.
Sunday 21 July 2024
Major Gulf markets gain as focus shifts to earnings | Reuters
Major Gulf markets gain as focus shifts to earnings | Reuters
Major stock markets in the Gulf ended higher on Sunday, boosting investor morale as earnings season in the region heated up, although a decline in oil prices weighed on sentiment.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, with aluminium product manufacturer Al Taiseer Group (4143.SE), opens new tab rising 0.3% and Al Rajhi Bank (1120.SE), opens new tab closing 0.7% higher.
Among other gainers, Saudi Arabian Amiantit (2160.SE), opens new tab advanced 5.2% after the pipe manufacturer swung to a quarterly profit of 5.1 million riyals ($1.36 million), from a loss of 10.1 million riyals a year earlier.
Elsewhere, Saudi Tadawul Group (1111.SE), opens new tab - the owner of the Saudi Exchange - gained 1.8%, following a sharp rise in quarterly profit.
On the other hand, Sahara International Petrochemical (2310.SE), opens new tab eased 0.7% after reporting a fall in quarterly net profit.
In Qatar, the index (.QSI), opens new tab added 0.3%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab putting on 1.1%.
However, Qatar International Islamic Bank (QIIB.QA), opens new tab retreated 1.3%, ahead of its earnings release.
Oil prices - a catalyst for the Gulf's financial markets - settled more than $2 per barrel lower on Friday at their lowest level since mid-June as investors eyed a possible ceasefire in Gaza, while a strengthened dollar drove values down further.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.5% higher, with top lender Commercial International Bank Egypt (COMI.CA), opens new tab rising 1%.
Egypt will halt load-shedding power cuts during the summer as of Sunday, after some natural gas shipments arrived, Prime Minister Mostafa Madbouly said on Wednesday, in a bid to end a crisis that inconvenienced a population of 106 million.
Major stock markets in the Gulf ended higher on Sunday, boosting investor morale as earnings season in the region heated up, although a decline in oil prices weighed on sentiment.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, with aluminium product manufacturer Al Taiseer Group (4143.SE), opens new tab rising 0.3% and Al Rajhi Bank (1120.SE), opens new tab closing 0.7% higher.
Among other gainers, Saudi Arabian Amiantit (2160.SE), opens new tab advanced 5.2% after the pipe manufacturer swung to a quarterly profit of 5.1 million riyals ($1.36 million), from a loss of 10.1 million riyals a year earlier.
Elsewhere, Saudi Tadawul Group (1111.SE), opens new tab - the owner of the Saudi Exchange - gained 1.8%, following a sharp rise in quarterly profit.
On the other hand, Sahara International Petrochemical (2310.SE), opens new tab eased 0.7% after reporting a fall in quarterly net profit.
In Qatar, the index (.QSI), opens new tab added 0.3%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab putting on 1.1%.
However, Qatar International Islamic Bank (QIIB.QA), opens new tab retreated 1.3%, ahead of its earnings release.
Oil prices - a catalyst for the Gulf's financial markets - settled more than $2 per barrel lower on Friday at their lowest level since mid-June as investors eyed a possible ceasefire in Gaza, while a strengthened dollar drove values down further.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.5% higher, with top lender Commercial International Bank Egypt (COMI.CA), opens new tab rising 1%.
Egypt will halt load-shedding power cuts during the summer as of Sunday, after some natural gas shipments arrived, Prime Minister Mostafa Madbouly said on Wednesday, in a bid to end a crisis that inconvenienced a population of 106 million.
Saturday 20 July 2024
#Saudi Wealth Fund Offers to Boost Its Stake in Selfridges to 50% - Bloomberg
Saudi Wealth Fund Offers to Boost Its Stake in Selfridges to 50% - Bloomberg
Saudi Arabia’s Public Investment Fund has made an offer that would boost its stake in Selfridges to 50%, according to documents seen by Bloomberg News, after the UK department store’s co-owner fell into insolvency.
PIF already owns a 10% share in the Selfridges properties and has offered to buy the remaining 40% stake for a cash price of £1 million ($1.3 million) from Signa’s flagship property unit, according to an insolvency report dated July 15 filed by the division of the troubled real estate and retail empire. The properties include sites in London’s Oxford Street and Manchester.
The Saudi wealth fund is undertaking due diligence with the help of advisers, according to the document. The other 50% of Selfridges is owned by the Thai retail conglomerate Central Group.
A representative for PIF declined to comment. A spokesperson for Signa Prime’s administrator also declined to comment on the report.
The potential deal comes as the sprawling group of companies founded by Rene Benko is slowly unwound after its key property units fell into insolvency processes at the end of 2023. The Austrian tycoon purchased the stake in Selfridges in 2022 in one of his most ambitious acquisitions, before syndicating a portion of the 50% share to the PIF.
PIF, which is a creditor to Signa, will reduce its claims against the group as part of the deal, according to the document. Bangkok Bank, which provided the senior loan for Selfridges’ Oxford Street site, would also waive certain claims against Signa Prime to the amount of about €733 million, it said.
Signa also previously had joint ownership of Selfridges’ operating business, which has been now taken over by Central Group.
The department store chain, founded in 1908 by Wisconsin-born Harry Gordon Selfridge, is best-known for its Oxford Street flagship store which for decades was synonymous with high-end London retail.
Saudi Arabia’s Public Investment Fund has made an offer that would boost its stake in Selfridges to 50%, according to documents seen by Bloomberg News, after the UK department store’s co-owner fell into insolvency.
PIF already owns a 10% share in the Selfridges properties and has offered to buy the remaining 40% stake for a cash price of £1 million ($1.3 million) from Signa’s flagship property unit, according to an insolvency report dated July 15 filed by the division of the troubled real estate and retail empire. The properties include sites in London’s Oxford Street and Manchester.
The Saudi wealth fund is undertaking due diligence with the help of advisers, according to the document. The other 50% of Selfridges is owned by the Thai retail conglomerate Central Group.
A representative for PIF declined to comment. A spokesperson for Signa Prime’s administrator also declined to comment on the report.
The potential deal comes as the sprawling group of companies founded by Rene Benko is slowly unwound after its key property units fell into insolvency processes at the end of 2023. The Austrian tycoon purchased the stake in Selfridges in 2022 in one of his most ambitious acquisitions, before syndicating a portion of the 50% share to the PIF.
PIF, which is a creditor to Signa, will reduce its claims against the group as part of the deal, according to the document. Bangkok Bank, which provided the senior loan for Selfridges’ Oxford Street site, would also waive certain claims against Signa Prime to the amount of about €733 million, it said.
Signa also previously had joint ownership of Selfridges’ operating business, which has been now taken over by Central Group.
The department store chain, founded in 1908 by Wisconsin-born Harry Gordon Selfridge, is best-known for its Oxford Street flagship store which for decades was synonymous with high-end London retail.
Friday 19 July 2024
#AbuDhabi’s Masdar Plans More Green Bonds After $1 Billion Deal - Bloomberg
Abu Dhabi’s Masdar Plans More Green Bonds After $1 Billion Deal - Bloomberg
Abu Dhabi’s main renewables energy company Masdar is planning to sell green bonds annually for the next few years to help fund a global expansion.
The company, also known as Abu Dhabi Future Energy Co. PJSC, raised $1 billion through its second dollar-denominated green bonds sale this week, after a debut issue for $750 million last year. Masdar is targeting stakes in 100 gigawatts of clean projects by 2030.
“Because we’ve got quite a sizable pipeline of projects, we expect to be a repeat issuer pretty much every single year — at least for the near future,” Chief Financial Officer Mazin Khan said in an interview Thursday.
The company sold $500 million each of five-year bonds at 4.875% and 10-year at 5.25%, Masdar said in a statement Friday. Future bond programs will be of a similar size or “hopefully larger,” said Khan.
Around $450 million of the funds from the sale have already been allocated to equity investments in renewable energy projects, he said.
Abu Dhabi government companies Taqa, Mubadala and oil producer Adnoc own Masdar.
Abu Dhabi’s main renewables energy company Masdar is planning to sell green bonds annually for the next few years to help fund a global expansion.
The company, also known as Abu Dhabi Future Energy Co. PJSC, raised $1 billion through its second dollar-denominated green bonds sale this week, after a debut issue for $750 million last year. Masdar is targeting stakes in 100 gigawatts of clean projects by 2030.
“Because we’ve got quite a sizable pipeline of projects, we expect to be a repeat issuer pretty much every single year — at least for the near future,” Chief Financial Officer Mazin Khan said in an interview Thursday.
The company sold $500 million each of five-year bonds at 4.875% and 10-year at 5.25%, Masdar said in a statement Friday. Future bond programs will be of a similar size or “hopefully larger,” said Khan.
Around $450 million of the funds from the sale have already been allocated to equity investments in renewable energy projects, he said.
Abu Dhabi government companies Taqa, Mubadala and oil producer Adnoc own Masdar.
#UAE markets close higher on strong corporate earnings | Reuters
UAE markets close higher on strong corporate earnings | Reuters
Stock exchanges in United Arab Emirates closed higher, as strong corporate earnings boosted investor sentiments.
Even though Dubai index was a little volatile in early session amid reports of IT outage disrupting airlines, banks and financial services across the globe.
Dubai's main market (.DFMGI), opens new tab settled 0.3% higher, extending gains to third straight session, elevated by a 1.9% jump in Emirates Central Cooling Systems Corporation (EMPOWER.DU), opens new tab, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab added 0.5%.
Among gainers, Ajman Bank (AJBNK.DU), opens new tab surged 3.3% after the firm reported 103% growth in second-quarter net profit to 108.1 million dirhams ($29.43 million).
Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab was up 0.3% as the lender reported a 13% rise in second-quarter net profit on Thursday.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged up 0.1%, hitting over 2-months high, supported by a 1.5% rise in UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab after the lender posted a 20% hike in second-quarter net profit to 2.32 billion dirhams ($631.67 million) on Thursday.
Among the gainers, Abu Dhabi's biggest developer Aldar Properties (ALDAR.AD), opens new tab increased 1.6% and biggest utility firm Abu Dhabi National Energy Company (TAQA.AD), opens new tab jumped 2.8%.
During the trading hours on Friday Abu Dhabi securities exchange (ADX) said that Global index provider FTSE Russell had identified a service disruption impacting all of its FTSE-managed indexes, including the ADX's indexes.
The Dubai index notched up 1.9%, its 7th weekly gain, while Abu Dhabi index extended gains to 5th week with 1% weekly rise- LSEG data.
However, oil prices - a key contributor to Gulf's economies - drifted lower as disappointing Chinese economic data and a lacklustre third plenum outcome has cast a shadow over the global mood.
Brent crude was down 0.3% to $84.88 a barrel by 1140 GMT.
Hong Kong Exchanges has added ADX And DFM As Recognised Stock Exchanges, allowing companies with primary listing on these two exchanges in UAE to apply for a secondary listing in Hong Kong.
Stock exchanges in United Arab Emirates closed higher, as strong corporate earnings boosted investor sentiments.
Even though Dubai index was a little volatile in early session amid reports of IT outage disrupting airlines, banks and financial services across the globe.
Dubai's main market (.DFMGI), opens new tab settled 0.3% higher, extending gains to third straight session, elevated by a 1.9% jump in Emirates Central Cooling Systems Corporation (EMPOWER.DU), opens new tab, while blue-chip developer Emaar Properties (EMAR.DU), opens new tab added 0.5%.
Among gainers, Ajman Bank (AJBNK.DU), opens new tab surged 3.3% after the firm reported 103% growth in second-quarter net profit to 108.1 million dirhams ($29.43 million).
Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab was up 0.3% as the lender reported a 13% rise in second-quarter net profit on Thursday.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged up 0.1%, hitting over 2-months high, supported by a 1.5% rise in UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab after the lender posted a 20% hike in second-quarter net profit to 2.32 billion dirhams ($631.67 million) on Thursday.
Among the gainers, Abu Dhabi's biggest developer Aldar Properties (ALDAR.AD), opens new tab increased 1.6% and biggest utility firm Abu Dhabi National Energy Company (TAQA.AD), opens new tab jumped 2.8%.
During the trading hours on Friday Abu Dhabi securities exchange (ADX) said that Global index provider FTSE Russell had identified a service disruption impacting all of its FTSE-managed indexes, including the ADX's indexes.
The Dubai index notched up 1.9%, its 7th weekly gain, while Abu Dhabi index extended gains to 5th week with 1% weekly rise- LSEG data.
However, oil prices - a key contributor to Gulf's economies - drifted lower as disappointing Chinese economic data and a lacklustre third plenum outcome has cast a shadow over the global mood.
Brent crude was down 0.3% to $84.88 a barrel by 1140 GMT.
Hong Kong Exchanges has added ADX And DFM As Recognised Stock Exchanges, allowing companies with primary listing on these two exchanges in UAE to apply for a secondary listing in Hong Kong.