OPEC+ Leans Toward Proceeding With Output Hike, Delegates Say - Bloomberg
OPEC+ is leaning toward reviving oil production as planned in October, according to delegates involved in the discussions.
Led by Saudi Arabia and Russia, the Organization of Petroleum Exporting Countries and its allies are due to add 180,000 barrels a day as they gradually restore output that’s been halted since 2022. For now, there aren’t any signs of postponement, several officials said, asking not to be identified because the talks are private.
OPEC+ has warned repeatedly that it could “pause or reverse” the hikes if necessary, and with prices eroded by China’s faltering economy, analysts from Citigroup Inc. to Rystad Energy predicted a delay.
Crude futures have retreated sharply during the past two months, trading below $80 a barrel Friday.
Yet a political crisis in OPEC member Libya, which has halved its output, may have given the alliance the space to move forward. Tripoli’s woes have boosted the market, offsetting concerns about China and plentiful new supplies from the US, Guyana and Brazil.
Friday, 30 August 2024
#UAE stocks mixed in quiet trade; #AbuDhabi ends losing streak | Reuters
UAE stocks mixed in quiet trade; Abu Dhabi ends losing streak | Reuters
Stock markets in the United Arab Emirates were mixed in quiet trade on Friday, as investor sentiments were subdued amid regional tensions and declining oil prices, although Abu Dhabi rebounded after four consecutive sessions of decline.
In Dubai, the main share index (.DFMGI), opens new tab fell 0.2%, with financial and property stocks leading the losses.
Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab dropped more than 1% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab was down 0.2%.
On a monthly basis, the benchmark settled 1.3% higher in August, making it the third month in a row it has gained, with July being the best month so far this year when it was up 5.9%.
Dubai's stock market showed volatility after it reached an important resistance level. Despite this, both its weekly and monthly performances remain positive, said Hani Abuagla Senior Market Analyst at XTB MENA.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab gained 0.6%, after four consecutive sessions of decline, bolstered by a 1.8% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), opens new tab.
The index ended 0.6% down in August after two months of gains.
Additionally, the UAE financial markets saw changes in the MSCI index, with Parkin (PARKIN.DU), opens new tab and Spinneys (SPINNEYS.DU), opens new tab being added to the small-cap index, and ADNOC Drilling (ADNOCDRILL.AD), opens new tab joining the global benchmark indices.
Stock markets in the United Arab Emirates were mixed in quiet trade on Friday, as investor sentiments were subdued amid regional tensions and declining oil prices, although Abu Dhabi rebounded after four consecutive sessions of decline.
In Dubai, the main share index (.DFMGI), opens new tab fell 0.2%, with financial and property stocks leading the losses.
Dubai's largest lender Emirates NBD Bank (ENBD.DU), opens new tab dropped more than 1% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab was down 0.2%.
On a monthly basis, the benchmark settled 1.3% higher in August, making it the third month in a row it has gained, with July being the best month so far this year when it was up 5.9%.
Dubai's stock market showed volatility after it reached an important resistance level. Despite this, both its weekly and monthly performances remain positive, said Hani Abuagla Senior Market Analyst at XTB MENA.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab gained 0.6%, after four consecutive sessions of decline, bolstered by a 1.8% rise in the country's largest lender First Abu Dhabi Bank (FAB.AD), opens new tab.
The index ended 0.6% down in August after two months of gains.
Additionally, the UAE financial markets saw changes in the MSCI index, with Parkin (PARKIN.DU), opens new tab and Spinneys (SPINNEYS.DU), opens new tab being added to the small-cap index, and ADNOC Drilling (ADNOCDRILL.AD), opens new tab joining the global benchmark indices.
Thursday, 29 August 2024
Delivery Hero plans IPO of Middle East unit, shares rise
Delivery Hero plans IPO of Middle East unit, shares rise
Delivery Hero is preparing an initial public offering (IPO) of its lucrative Emirati subsidiary Talabat on the Dubai stock exchange, the German food delivery company said, boosting its shares on Thursday.
Delivery Hero's shares opened 7% higher, but pared gains to trade up 3% at 0839 GMT. The shares have fallen around 85% from their January 2021 highs as investors shunned food delivery stocks after a pandemic frenzy.
"We think it's a good time for us to be having regional investors participate in this business," interim finance chief Marie-Anne Popp told Reuters, without providing details on how the company intends to use proceeds from the IPO.
The Berlin-based firm could use the cash to reduce its 4 billion euro ($4.4 billion) debt, Barclays analysts said.
Delivery Hero plans to list its fastest-growing unit on the Dubai Financial Market in the fourth quarter by selling existing shares in Talabat while retaining a majority stake.
"We see news of the IPO of Talabat as being the main driver of a positive response," Jefferies analysts said in a note.
If the IPO is successful, it would help to improve Delivery Hero's balance sheet after the sale of its Asian subsidiary foodpanda, they said, adding it would also shine a light on a quality asset that is now somewhat lost in the group's corporate structure.
Delivery Hero's sales in the Middle East and North Africa (MENA) region jumped 31% to 874 million euros in the second quarter, growing faster than other regions, according to a statement that came shortly after the IPO announcement.
Last year, Talabat's gross merchandise value (GMV), a metric for delivery firms measuring the total value of all goods sold, hit 5 billion euros.
Talabat serves customers across the Middle East region in countries such as Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
Delivery Hero is preparing an initial public offering (IPO) of its lucrative Emirati subsidiary Talabat on the Dubai stock exchange, the German food delivery company said, boosting its shares on Thursday.
Delivery Hero's shares opened 7% higher, but pared gains to trade up 3% at 0839 GMT. The shares have fallen around 85% from their January 2021 highs as investors shunned food delivery stocks after a pandemic frenzy.
"We think it's a good time for us to be having regional investors participate in this business," interim finance chief Marie-Anne Popp told Reuters, without providing details on how the company intends to use proceeds from the IPO.
The Berlin-based firm could use the cash to reduce its 4 billion euro ($4.4 billion) debt, Barclays analysts said.
Delivery Hero plans to list its fastest-growing unit on the Dubai Financial Market in the fourth quarter by selling existing shares in Talabat while retaining a majority stake.
"We see news of the IPO of Talabat as being the main driver of a positive response," Jefferies analysts said in a note.
If the IPO is successful, it would help to improve Delivery Hero's balance sheet after the sale of its Asian subsidiary foodpanda, they said, adding it would also shine a light on a quality asset that is now somewhat lost in the group's corporate structure.
Delivery Hero's sales in the Middle East and North Africa (MENA) region jumped 31% to 874 million euros in the second quarter, growing faster than other regions, according to a statement that came shortly after the IPO announcement.
Last year, Talabat's gross merchandise value (GMV), a metric for delivery firms measuring the total value of all goods sold, hit 5 billion euros.
Talabat serves customers across the Middle East region in countries such as Bahrain, Egypt, Iraq, Jordan, Kuwait, Oman, Qatar, Saudi Arabia and United Arab Emirates.
Shenzhen and #Dubai pledge to increase cross-border ETF investing
Shenzhen and Dubai pledge to increase cross-border ETF investing
The Shenzhen Stock Exchange and Dubai Financial Market have signed a memorandum of understanding to promote cross-border investing in China and the United Arab Emirates, including in the area of exchange traded funds.
The Shenzhen Stock Exchange and Dubai Financial Market have signed a memorandum of understanding to promote cross-border investing in China and the United Arab Emirates, including in the area of exchange traded funds.
The cities’ exchanges will also collaborate on dual-listings, shared displays of indices and fixed-income offerings, and helping investors tap the secondary markets of both nations, according to their announcement.
The bourses will jointly host roadshows and seminars, and conduct research and training to bolster their respective capital markets and enhance trading opportunities for listed companies. They will also work jointly on market and product development and regulation, and environmental, social and governance practices.
Hamed Ali, chief executive of DFM and Nasdaq Dubai, said the MOU was “a pivotal step in strengthening our cross-border ties, driving global investment opportunities and enhancing market accessibility”.
Most Gulf markets gain on US rate cut hopes | Reuters
Most Gulf markets gain on US rate cut hopes | Reuters
Most stock markets in the Gulf ended higher on Thursday supported by expectations for the U.S. central bank to start cutting interest rates next month, although rising geopolitical tensions weighed on sentiment.
Data on Thursday showed the world's largest economy grew a little faster than expected in the second quarter, adding to growing expectations that the United States could avoid recession, or go through just a mild one.
Separately, a Labor Department report showed initial claims for unemployment benefits for the week ending Aug. 24 stood at 231,000, marginally lower than estimates of 232,000 as per economists polled by Reuters.
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Federal Reserve'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 aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 1% and Al Rajhi Bank (1120.SE), opens new tab increasing 1.6%.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, with toll operator Salik (SALIK.DU), opens new tab advancing 5.2%.
In Qatar, the benchmark (.QSI), opens new tab closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.2%.
The Abu Dhabi index (.FTFADGI), opens new tab retreated 0.6%, weighed down by a 0.3% fall in top lender First Abu Dhabi Bank (FAB.AD), opens new tab.
In the Middle East, fighting continued in the Gaza Strip between Israel and Hamas militants, with no signs yet of a concrete breakthrough in ceasefire talks in Cairo.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.2%, helped by a 3.9% rise in Talaat Mostafa Holding (TMGH.CA), opens new tab.
Meanwhile, lending to the government by Egypt's central bank continued to climb in the last fiscal year, according to the central bank's newly released annual budget, even as inflation has slid from an all-time peak in September.
Most stock markets in the Gulf ended higher on Thursday supported by expectations for the U.S. central bank to start cutting interest rates next month, although rising geopolitical tensions weighed on sentiment.
Data on Thursday showed the world's largest economy grew a little faster than expected in the second quarter, adding to growing expectations that the United States could avoid recession, or go through just a mild one.
Separately, a Labor Department report showed initial claims for unemployment benefits for the week ending Aug. 24 stood at 231,000, marginally lower than estimates of 232,000 as per economists polled by Reuters.
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Federal Reserve'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 aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 1% and Al Rajhi Bank (1120.SE), opens new tab increasing 1.6%.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, with toll operator Salik (SALIK.DU), opens new tab advancing 5.2%.
In Qatar, the benchmark (.QSI), opens new tab closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.2%.
The Abu Dhabi index (.FTFADGI), opens new tab retreated 0.6%, weighed down by a 0.3% fall in top lender First Abu Dhabi Bank (FAB.AD), opens new tab.
In the Middle East, fighting continued in the Gaza Strip between Israel and Hamas militants, with no signs yet of a concrete breakthrough in ceasefire talks in Cairo.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.2%, helped by a 3.9% rise in Talaat Mostafa Holding (TMGH.CA), opens new tab.
Meanwhile, lending to the government by Egypt's central bank continued to climb in the last fiscal year, according to the central bank's newly released annual budget, even as inflation has slid from an all-time peak in September.
#Dubai Real Estate: Binghatti Says Rich Turks, Egyptians Fueling Property Boom - Bloomberg
Dubai Real Estate: Binghatti Says Rich Turks, Egyptians Fueling Property Boom - Bloomberg
The Dubai developer building what’s set to be the world’s tallest residential tower is betting on an influx of rich buyers fleeing currency instability in Turkey and Egypt to help drive demand.
Binghatti Properties is planning around 12,000 homes across the city over the next two years, Muhammad Binghatti, the chairman of the privately-owned developer said in an interview. That’s over and above the 9,000 homes it’s already building, and the $1 billion it’s set to spend on construction in the next 18 months.
“Many of our investors want to put some of their wealth outside their countries to protect themselves against currency fluctuations,” Binghatti said. “They’ve stood by and watched the capital gains in Dubai over the past few years, which they missed out on.”
The firm has seen a 20% increase in the number of Turkish and Egyptian buyers from last year, making them among the top international buyers of Binghatti properties, he said.
The Turkish lira has surrendered 95% of its value since 2012 driven by unorthodox monetary policies. The Egyptian pound has plunged 68% since early 2022 as policymakers resorted to four devaluations to combat an economic crisis.
The Dubai developer building what’s set to be the world’s tallest residential tower is betting on an influx of rich buyers fleeing currency instability in Turkey and Egypt to help drive demand.
Binghatti Properties is planning around 12,000 homes across the city over the next two years, Muhammad Binghatti, the chairman of the privately-owned developer said in an interview. That’s over and above the 9,000 homes it’s already building, and the $1 billion it’s set to spend on construction in the next 18 months.
“Many of our investors want to put some of their wealth outside their countries to protect themselves against currency fluctuations,” Binghatti said. “They’ve stood by and watched the capital gains in Dubai over the past few years, which they missed out on.”
The firm has seen a 20% increase in the number of Turkish and Egyptian buyers from last year, making them among the top international buyers of Binghatti properties, he said.
The Turkish lira has surrendered 95% of its value since 2012 driven by unorthodox monetary policies. The Egyptian pound has plunged 68% since early 2022 as policymakers resorted to four devaluations to combat an economic crisis.
NMDC Group unit's $877mln IPO opens in #AbuDhabi on Friday
NMDC Group unit's $877mln IPO opens in Abu Dhabi on Friday
UAE construction and dredging services firm NMDC Group, which is backed by International Holding Company’s Alpha Dhabi Holding, has secured approvals to proceed with its subsidiary’s $877 million initial public offering (IPO).
The Abu Dhabi Securities Exchange (ADX) and the Securities and Commodities Authority (SCA) have given the go-ahead for the offering of 1.150 billion shares in NMDC Energy at AED 2.8 ($0.76) per share, the group confirmed on Wednesday.
The shares will be up for subscription from Friday, August 30 for individual investors in the UAE. The subscription will remain open until September 4 for qualified and professional investors.
The new share sale is expected to outpace the proceeds raised by Alef Education Holding. The EdTech's $515 million IPO is so far the biggest in the UAE this year.
NMDC Energy is a key subsidiary of NMDC Group, which is backed by IHC unit Alpha Dhabi Holding.
The NMDC subsidiary’s portfolio includes manufacturing facilities in Abu Dhabi, covering 1.3 million square metres. It has a backlog valued at around AED 54 billion, spanning various sectors and regions, as of June this year.
It provides integrated solutions in the energy sector, including engineering, procurement and construction services.
UAE construction and dredging services firm NMDC Group, which is backed by International Holding Company’s Alpha Dhabi Holding, has secured approvals to proceed with its subsidiary’s $877 million initial public offering (IPO).
The Abu Dhabi Securities Exchange (ADX) and the Securities and Commodities Authority (SCA) have given the go-ahead for the offering of 1.150 billion shares in NMDC Energy at AED 2.8 ($0.76) per share, the group confirmed on Wednesday.
The shares will be up for subscription from Friday, August 30 for individual investors in the UAE. The subscription will remain open until September 4 for qualified and professional investors.
The new share sale is expected to outpace the proceeds raised by Alef Education Holding. The EdTech's $515 million IPO is so far the biggest in the UAE this year.
NMDC Energy is a key subsidiary of NMDC Group, which is backed by IHC unit Alpha Dhabi Holding.
The NMDC subsidiary’s portfolio includes manufacturing facilities in Abu Dhabi, covering 1.3 million square metres. It has a backlog valued at around AED 54 billion, spanning various sectors and regions, as of June this year.
It provides integrated solutions in the energy sector, including engineering, procurement and construction services.
Wednesday, 28 August 2024
#AbuDhabi's Adnoc Finishes Due Diligence on €12 Billion Covestro Deal - Bloomberg
Abu Dhabi's Adnoc Finishes Due Diligence on €12 Billion Covestro Deal - Bloomberg
Abu Dhabi National Oil Co. has largely completed due diligence on its planned bid for German chemical company Covestro AG, paving the way for the state-owned energy firm’s biggest-ever deal, people familiar with the matter said.
Adnoc could move forward with an €11.7 billion ($13 billion) offer for Covestro as soon as September, the people said. It has finished site visits to major Covestro plants as part of its in-depth confirmatory due diligence and hasn’t discovered any red flags, according to the people.
The Middle Eastern company still needs final signoff from senior officials for the planned bid of €62 per share, which may take several more weeks, the people said, asking not to be identified because the information is private. Shares of Covestro jumped as much as 5.7% in Frankfurt trading Wednesday to touch €56.90, the highest intraday level since January 2022.
Representatives for Adnoc and Covestro declined to comment.
After more than a year of negotiations, Covestro in June agreed to exchange information with Adnoc to help it firm up the prospective bid. Adnoc said at the time that a potential bid of €62 per share was its final offer, indicating it wouldn’t be raising any further after already bumping several times from its first proposal of €55 per share.
Backed by tens of billions of dollars of oil money, Adnoc has been scouring the world for deals. Chemicals are a big part of that push, as the company sees demand for products used to make goods such as plastics continuing to rise over the coming decades, while the energy transition is likely to slow oil demand.
Abu Dhabi National Oil Co. has largely completed due diligence on its planned bid for German chemical company Covestro AG, paving the way for the state-owned energy firm’s biggest-ever deal, people familiar with the matter said.
Adnoc could move forward with an €11.7 billion ($13 billion) offer for Covestro as soon as September, the people said. It has finished site visits to major Covestro plants as part of its in-depth confirmatory due diligence and hasn’t discovered any red flags, according to the people.
The Middle Eastern company still needs final signoff from senior officials for the planned bid of €62 per share, which may take several more weeks, the people said, asking not to be identified because the information is private. Shares of Covestro jumped as much as 5.7% in Frankfurt trading Wednesday to touch €56.90, the highest intraday level since January 2022.
Representatives for Adnoc and Covestro declined to comment.
After more than a year of negotiations, Covestro in June agreed to exchange information with Adnoc to help it firm up the prospective bid. Adnoc said at the time that a potential bid of €62 per share was its final offer, indicating it wouldn’t be raising any further after already bumping several times from its first proposal of €55 per share.
Backed by tens of billions of dollars of oil money, Adnoc has been scouring the world for deals. Chemicals are a big part of that push, as the company sees demand for products used to make goods such as plastics continuing to rise over the coming decades, while the energy transition is likely to slow oil demand.
#Qatar in talks on possible purchase of Rosneft stake in German refinery, report says | Reuters
Qatar in talks on possible purchase of Rosneft stake in German refinery, report says | Reuters
Qatar is in talks with the German government over possibly buying Russian energy group Rosneft's (ROSN.MM), opens new tab stake in Germany's PCK Schwedt refinery, which Berlin placed under trusteeship following Russia's invasion of Ukraine, Business Insider news website reported on Wednesday.
Berlin has put Rosneft's German assets under a trusteeship in 2022, still conceding some control to the Russian group over a sale of the assets. A Rosneft lawsuit to challenge Berlin's grasp over the assets failed in court last year. The current trusteeship term is set to expire on Sept. 10.
The German economy ministry told Reuters it would "make a timely decision" on further steps by then.
Relations between Russia and the West collapsed after the full scale invasion of Ukraine in February 2022 and Germany has taken steps to shore up its energy security after concluding it had previously relied too heavily on Moscow.
Rosneft has a 54.17% stake in PCK Schwedt, which has traditionally supplied 90% of the fuel used in Germany's capital, Berlin.
In March, the German government said Rosneft started the sale of its German assets and wants to conclude the process by September.
Russian media has put the valuation of Rosneft's assets in Germany at around $7 billion.
The refinery is also co-owned by Shell (SHEL.L), opens new tab and Eni (ENI.MI), opens new tab. In December, Shell announced the sale of its 37.5% stake in the refinery to Britain's Prax Group.
Qatar Investment Authority and Qatar's international media office did not have an immediate comment.
Rosneft did not immediate reply to a request for comment.
Qatar is in talks with the German government over possibly buying Russian energy group Rosneft's (ROSN.MM), opens new tab stake in Germany's PCK Schwedt refinery, which Berlin placed under trusteeship following Russia's invasion of Ukraine, Business Insider news website reported on Wednesday.
Berlin has put Rosneft's German assets under a trusteeship in 2022, still conceding some control to the Russian group over a sale of the assets. A Rosneft lawsuit to challenge Berlin's grasp over the assets failed in court last year. The current trusteeship term is set to expire on Sept. 10.
The German economy ministry told Reuters it would "make a timely decision" on further steps by then.
Relations between Russia and the West collapsed after the full scale invasion of Ukraine in February 2022 and Germany has taken steps to shore up its energy security after concluding it had previously relied too heavily on Moscow.
Rosneft has a 54.17% stake in PCK Schwedt, which has traditionally supplied 90% of the fuel used in Germany's capital, Berlin.
In March, the German government said Rosneft started the sale of its German assets and wants to conclude the process by September.
Russian media has put the valuation of Rosneft's assets in Germany at around $7 billion.
The refinery is also co-owned by Shell (SHEL.L), opens new tab and Eni (ENI.MI), opens new tab. In December, Shell announced the sale of its 37.5% stake in the refinery to Britain's Prax Group.
Qatar Investment Authority and Qatar's international media office did not have an immediate comment.
Rosneft did not immediate reply to a request for comment.
#Saudi: Tadawul closes Wednesday’s trading session down
Saudi: Tadawul closes Wednesday’s trading session down
The main All Share Index (TASI) of the Saudi Exchange (Tadawul) declined by 0.53% and closed Wednesday’s trading session lower at 12,117.15 points.
The trading value reached SAR 6.85 billion through the exchange of 248.07 million shares.
Red Sea International Company advanced the gainers with 9.90%, while Jabal Omar Development Company headed the decliners with 3.54%.
Besides being the most active stock with 15.56 million shares exchanged, Saudi Arabian Oil Company (Aramco)recorded the highest turnover valued at SAR 431.84 million.
Likewise, the Nomu-Parallel Market Capped Index (NomuC) went down by 0.64% to 26,221.39 points.
Mohammed Hadi Al Rasheed and Partners Company topped the risers with 12.52%, while Naas Petrol Factory Company led the fallers with 26.53%.
The main All Share Index (TASI) of the Saudi Exchange (Tadawul) declined by 0.53% and closed Wednesday’s trading session lower at 12,117.15 points.
The trading value reached SAR 6.85 billion through the exchange of 248.07 million shares.
Red Sea International Company advanced the gainers with 9.90%, while Jabal Omar Development Company headed the decliners with 3.54%.
Besides being the most active stock with 15.56 million shares exchanged, Saudi Arabian Oil Company (Aramco)recorded the highest turnover valued at SAR 431.84 million.
Likewise, the Nomu-Parallel Market Capped Index (NomuC) went down by 0.64% to 26,221.39 points.
Mohammed Hadi Al Rasheed and Partners Company topped the risers with 12.52%, while Naas Petrol Factory Company led the fallers with 26.53%.
#UAE stock markets close Wednesday in red
UAE stock markets close Wednesday in red
The main index of Dubai Financial Market (DFM) lost 19.02 points (0.43%) on Wednesday and ended the trading session at 4,324.20 points.
A total of 297.93 million shares were exchanged during the session at a value of AED 454.67 million.
Emaar Properties recorded the highest turnover of AED 79.48 million, while GFH Financial Group was the most active stock with 64.16 million shares.
Dubai National Insurance and Reinsurance topped the risers with 10%, whereas National International Holding (NIH) headed the decliners with 9.58%.
Likewise, the benchmark index of the Abu Dhabi Securities Exchange (ADX) retreated by 0.483% to 9,288.93 points.
The turnover reached AED 949.58 million through the exchange of 213.43 million shares, while the market cap value hit AED 2.81 trillion.
International Holding Company (IHC) posted the highest turnover of AED 180.41 million, while ADNOC Drilling dominated the trading volume with 23.80 million shares.
Al Dhafra Insurance Company led the risers with 13.70%, whereas RAPCO Investment led the fallers with 3.82%.
The main index of Dubai Financial Market (DFM) lost 19.02 points (0.43%) on Wednesday and ended the trading session at 4,324.20 points.
A total of 297.93 million shares were exchanged during the session at a value of AED 454.67 million.
Emaar Properties recorded the highest turnover of AED 79.48 million, while GFH Financial Group was the most active stock with 64.16 million shares.
Dubai National Insurance and Reinsurance topped the risers with 10%, whereas National International Holding (NIH) headed the decliners with 9.58%.
Likewise, the benchmark index of the Abu Dhabi Securities Exchange (ADX) retreated by 0.483% to 9,288.93 points.
The turnover reached AED 949.58 million through the exchange of 213.43 million shares, while the market cap value hit AED 2.81 trillion.
International Holding Company (IHC) posted the highest turnover of AED 180.41 million, while ADNOC Drilling dominated the trading volume with 23.80 million shares.
Al Dhafra Insurance Company led the risers with 13.70%, whereas RAPCO Investment led the fallers with 3.82%.
#Saudi’s Sovereign Wealth Fund Refinances $15 Billion Loan - Bloomberg
Saudi’s Sovereign Wealth Fund Refinances $15 Billion Loan - Bloomberg
Saudi Arabia’s sovereign wealth fund has signed a $15 billion revolving credit facility with a group of banks, replacing a previous funding agreement it reached in 2021.
The Public Investment Fund, chaired by Crown Prince Mohammed bin Salman, said the loan has a tenor of three years, with an option to extend by up to two more years. The financing will be provided by a group of European, US, Middle East and Asian banks, according to a statement Wednesday.
The PIF, as the fund is known, has spent much of the year hunting for new sources of cash as it looks to push ahead with a massive investment plan intended to help diversify the Saudi economy away from a reliance on oil sales. It’s already tapped bond investors twice this year, raising a total of $7 billion, and it’s also looked to accelerate debt sales and equity offerings in its portfolio companies.
The effort to obtain more cash comes as the fund is aiming to boost annual investment to $70 billion annually from this year, up from $40 billion to $50 billion a year.
Even though the fund plans to ramp up annual spending, executives at alternative investment firms have privately expressed concerns that the PIF will channel more money into local mega-projects, Bloomberg previously reported. That could lead to a pivot away from passive investments in global private equity, infrastructure and hedge funds, people familiar with the matter said.
With the Saudi budget in deficit for much of the last decade, there’s less scope to fund the PIF with transfers of excess oil revenue. As a result, the investor has said it will also rely on asset transfers from the government, retained earnings from its investments, and borrowing.
Earlier this year, the fund received an additional 8% stake in Saudi Aramco - worth more than $160 billion - which PIF Governor Yasir Al Rumayyan also chairs, to help bolster its financial position and credit rating. That helped boost the fund’s assets to almost $1 trillion.
Saudi Arabia’s sovereign wealth fund has signed a $15 billion revolving credit facility with a group of banks, replacing a previous funding agreement it reached in 2021.
The Public Investment Fund, chaired by Crown Prince Mohammed bin Salman, said the loan has a tenor of three years, with an option to extend by up to two more years. The financing will be provided by a group of European, US, Middle East and Asian banks, according to a statement Wednesday.
The PIF, as the fund is known, has spent much of the year hunting for new sources of cash as it looks to push ahead with a massive investment plan intended to help diversify the Saudi economy away from a reliance on oil sales. It’s already tapped bond investors twice this year, raising a total of $7 billion, and it’s also looked to accelerate debt sales and equity offerings in its portfolio companies.
The effort to obtain more cash comes as the fund is aiming to boost annual investment to $70 billion annually from this year, up from $40 billion to $50 billion a year.
Even though the fund plans to ramp up annual spending, executives at alternative investment firms have privately expressed concerns that the PIF will channel more money into local mega-projects, Bloomberg previously reported. That could lead to a pivot away from passive investments in global private equity, infrastructure and hedge funds, people familiar with the matter said.
With the Saudi budget in deficit for much of the last decade, there’s less scope to fund the PIF with transfers of excess oil revenue. As a result, the investor has said it will also rely on asset transfers from the government, retained earnings from its investments, and borrowing.
Earlier this year, the fund received an additional 8% stake in Saudi Aramco - worth more than $160 billion - which PIF Governor Yasir Al Rumayyan also chairs, to help bolster its financial position and credit rating. That helped boost the fund’s assets to almost $1 trillion.
#Saudi PIF Is Among Investors Who Lost Money on Pluralsight Deal - Bloomberg
Saudi PIF Is Among Investors Who Lost Money on Pluralsight Deal - Bloomberg
Saudi Arabia’s sovereign wealth fund is one of the co-investors that lost money on Vista Equity Partners’ acquisition of Pluralsight Inc., according to people with knowledge of the matter.
A handful of Vista’s big clients — including the Public Investment Fund — directly joined the acquisition and contributed equity, the people said, asking not to be named discussing a private transaction. The exact size of PIF’s loss could not immediately be determined.
Vista acquired the educational-software company in 2021 and lost about $4 billion on the transaction along with its co-investors following a debt restructuring that wrapped up last week, Bloomberg News has reported.
The PIF didn’t respond to a request for comment. Vista and Pluralsight declined to comment.
The wipeout has created a painful situation for the limited partners that acquired the company directly with Vista. AustralianSuper, the country’s largest pension, is writing off A$1.1 billion ($750 million) on Pluralsight.
Typically, sovereign wealth funds, pensions and other large money managers diversify their exposure by investing in a private equity fund, which then buys a group of companies. But co-investing, when the money managers invest directly in an individual company alongside a private equity firm, provides a way to cut back on fees and put large sums to work quickly.
Gulf sovereign funds have increasingly been looking to get co-investment rights on deals as they seek better returns and want to boost their reputations as world-class asset managers. But if such investments sour, it leaves the limited partners — alongside the private equity firms — open to losses.
By late 2023, Pluralsight had started to stumble under pressure because of higher interest rates, increased competition and softening demand for its services, Bloomberg reported. Negotiations with the firm’s debt holders led Vista to give up the keys to the company to a group of private credit lenders led by Blue Owl Capital Inc.
Saudi Arabia’s sovereign wealth fund is one of the co-investors that lost money on Vista Equity Partners’ acquisition of Pluralsight Inc., according to people with knowledge of the matter.
A handful of Vista’s big clients — including the Public Investment Fund — directly joined the acquisition and contributed equity, the people said, asking not to be named discussing a private transaction. The exact size of PIF’s loss could not immediately be determined.
Vista acquired the educational-software company in 2021 and lost about $4 billion on the transaction along with its co-investors following a debt restructuring that wrapped up last week, Bloomberg News has reported.
The PIF didn’t respond to a request for comment. Vista and Pluralsight declined to comment.
The wipeout has created a painful situation for the limited partners that acquired the company directly with Vista. AustralianSuper, the country’s largest pension, is writing off A$1.1 billion ($750 million) on Pluralsight.
Typically, sovereign wealth funds, pensions and other large money managers diversify their exposure by investing in a private equity fund, which then buys a group of companies. But co-investing, when the money managers invest directly in an individual company alongside a private equity firm, provides a way to cut back on fees and put large sums to work quickly.
Gulf sovereign funds have increasingly been looking to get co-investment rights on deals as they seek better returns and want to boost their reputations as world-class asset managers. But if such investments sour, it leaves the limited partners — alongside the private equity firms — open to losses.
By late 2023, Pluralsight had started to stumble under pressure because of higher interest rates, increased competition and softening demand for its services, Bloomberg reported. Negotiations with the firm’s debt holders led Vista to give up the keys to the company to a group of private credit lenders led by Blue Owl Capital Inc.
#Saudi’s 2024 inflation forecast revised down to 1.7%
Saudi’s 2024 inflation forecast revised down to 1.7%
Saudi Arabia’s inflation this year is expected to be lower than previously anticipated, as the non-oil growth momentum continues.
In its latest report, Jadwa Investment said it has lowered its inflation forecast for full year 2024 to 1.7%, versus 2% previously.
“We still expect higher inflation rates in H2 than in H1. However, we expect this rise to be lower than we previously anticipated,” the report said.
Saudi’s consumer price growth reached 1.6% in the first half of 2024, with housing costs a major driving factor.
During the second half of the year, Jadwa anticipates prices in food and beverages to see a gradual rebound, in line with global trends.
There will also be marginal pressure from shipping prices, although the rental sector is expected to remain tight for the rest of the year, given the high interest rate environment and influx of expatriates, according to Jadwa.
However, if interest rates do fall before the end of the year, rental demand in the kingdom could ease, as lower rates are likely to drive Saudi nationals back to the mortgage market.
Overall, the rental market in Saudi will still remain strong due to “solid non-oil growth”.
Other non-oil sectors in Saudi Arabia, such as transport, hotels and services in general are also likely to see an increase in demand for the rest of the year.
Saudi Arabia’s inflation this year is expected to be lower than previously anticipated, as the non-oil growth momentum continues.
In its latest report, Jadwa Investment said it has lowered its inflation forecast for full year 2024 to 1.7%, versus 2% previously.
“We still expect higher inflation rates in H2 than in H1. However, we expect this rise to be lower than we previously anticipated,” the report said.
Saudi’s consumer price growth reached 1.6% in the first half of 2024, with housing costs a major driving factor.
During the second half of the year, Jadwa anticipates prices in food and beverages to see a gradual rebound, in line with global trends.
There will also be marginal pressure from shipping prices, although the rental sector is expected to remain tight for the rest of the year, given the high interest rate environment and influx of expatriates, according to Jadwa.
However, if interest rates do fall before the end of the year, rental demand in the kingdom could ease, as lower rates are likely to drive Saudi nationals back to the mortgage market.
Overall, the rental market in Saudi will still remain strong due to “solid non-oil growth”.
Other non-oil sectors in Saudi Arabia, such as transport, hotels and services in general are also likely to see an increase in demand for the rest of the year.
Salik revises revenue growth up to 7-8% following launch of two new toll gates
Salik revises revenue growth up to 7-8% following launch of two new toll gates
Dubai-listed road toll operator Salik expects its revenue to grow 7-8% in 2024 following the launch of two new toll gates valued at AED 2.734 billion ($646 million) in November.
Salik revised its revenue growth upwards from 4-6% with EBITDA margin of 67-68% expected, revised upwards from 65-66%.
The two new gates, Business Bay and Al Safa South, are expected to be operational by the end of November and are designed to enhance traffic flow and reduce congestion in alignment with Roads and Transport Authority (RTA) strategy, Salik said in a filing to Dubai Financial Market (DFM).
Once they are operational, the number of gates operated by Salik will rise from eight to 10.
The Business Bay gate, which accounts for AED 2.265 billion of the valuation, will be the first Salik gate on Al Khail Road rather than the main arterial road passing through Dubai, will be located at Business Bay crossing.
The Al Safa South Gate, which will account for AED 469 million, will be on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street.
Under its concession agreement with the RTA, Salik has the exclusive rights to construct, operate, and maintain the toll gates until end of June 2071.
Salik CEO Ibrahim Sultan Al Haddad said an agreement has been reached with the RTA on a repayment plan for the two new gates over a period of six years, starting from the end of November 2024, with an annual instalment of AED 455.7 million in two equal instalments.
Dubai-listed road toll operator Salik expects its revenue to grow 7-8% in 2024 following the launch of two new toll gates valued at AED 2.734 billion ($646 million) in November.
Salik revised its revenue growth upwards from 4-6% with EBITDA margin of 67-68% expected, revised upwards from 65-66%.
The two new gates, Business Bay and Al Safa South, are expected to be operational by the end of November and are designed to enhance traffic flow and reduce congestion in alignment with Roads and Transport Authority (RTA) strategy, Salik said in a filing to Dubai Financial Market (DFM).
Once they are operational, the number of gates operated by Salik will rise from eight to 10.
The Business Bay gate, which accounts for AED 2.265 billion of the valuation, will be the first Salik gate on Al Khail Road rather than the main arterial road passing through Dubai, will be located at Business Bay crossing.
The Al Safa South Gate, which will account for AED 469 million, will be on Sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street.
Under its concession agreement with the RTA, Salik has the exclusive rights to construct, operate, and maintain the toll gates until end of June 2071.
Salik CEO Ibrahim Sultan Al Haddad said an agreement has been reached with the RTA on a repayment plan for the two new gates over a period of six years, starting from the end of November 2024, with an annual instalment of AED 455.7 million in two equal instalments.
Tuesday, 27 August 2024
Most Gulf markets ease on regional tensions | Reuters
Most Gulf markets ease on regional tensions | Reuters
Most stock markets in the Gulf ended lower on Tuesday on rising tensions in the Middle East, although looming U.S. interest rate cuts limited losses.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
The escalation comes with little hope of an end in sight to the war as diplomacy by mediators Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, hit by a 1.8% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 0.7% decrease in Al Rajhi Bank (1120.SE), opens new tab.
The Qatari benchmark (.QSI), opens new tab fell 0.3%, weighed down by a 1.1% slide in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.2%.
Dubai's main share index (.DFMGI), opens new tab, however, rose 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab gaining 1.1%.
San Francisco Federal Reserve Bank President Mary Daly on Monday said "the time is upon us" to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.
Traders see a 70% chance of a 25-basis-point (bp) rate cut and about 30% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab rising 2.7%.
The IMF has softened several conditions of its $8 billion financial support package to Egypt, including allowing Cairo more time to implement reforms, it said in a review.
Most stock markets in the Gulf ended lower on Tuesday on rising tensions in the Middle East, although looming U.S. interest rate cuts limited losses.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
The escalation comes with little hope of an end in sight to the war as diplomacy by mediators Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.6%, hit by a 1.8% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 0.7% decrease in Al Rajhi Bank (1120.SE), opens new tab.
The Qatari benchmark (.QSI), opens new tab fell 0.3%, weighed down by a 1.1% slide in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab lost 0.2%.
Dubai's main share index (.DFMGI), opens new tab, however, rose 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab gaining 1.1%.
San Francisco Federal Reserve Bank President Mary Daly on Monday said "the time is upon us" to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.
Traders see a 70% chance of a 25-basis-point (bp) rate cut and about 30% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab rising 2.7%.
The IMF has softened several conditions of its $8 billion financial support package to Egypt, including allowing Cairo more time to implement reforms, it said in a review.
Most Gulf markets slip on regional tensions; #Dubai gains | Reuters
Most Gulf markets slip on regional tensions; Dubai gains | Reuters
Most major stock markets in the Gulf fell in early trade on Tuesday on rising tensions in the Middle East, although looming U.S. interest rate cuts limited losses.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
The escalation comes with little hope of an end in sight to the war as diplomacy by mediators, Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, hit by a 0.6% fall in Al Rajhi Bank (1120.SE), opens new tab and a 0.8% decrease in top lender Saudi National Bank (1180.SE), opens new tab.
In Qatar, the index (.QSI), opens new tab lost 0.1%, a day after gaining 1.2%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 0.8%.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
The Abu Dhabi index (.FTFADGI), opens new tab eased 0.1%.
Bucking the trend, Dubai's main share index (.DFMGI), opens new tab rose 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab adding 1.1%.
San Francisco Federal Reserve Bank President Mary Daly on Monday said "the time is upon us" to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.
Traders see a 70% chance of a 25-basis-point (bp) rate cut and about 30% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Most major stock markets in the Gulf fell in early trade on Tuesday on rising tensions in the Middle East, although looming U.S. interest rate cuts limited losses.
Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.
The escalation comes with little hope of an end in sight to the war as diplomacy by mediators, Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.2%, hit by a 0.6% fall in Al Rajhi Bank (1120.SE), opens new tab and a 0.8% decrease in top lender Saudi National Bank (1180.SE), opens new tab.
In Qatar, the index (.QSI), opens new tab lost 0.1%, a day after gaining 1.2%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 0.8%.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
The Abu Dhabi index (.FTFADGI), opens new tab eased 0.1%.
Bucking the trend, Dubai's main share index (.DFMGI), opens new tab rose 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab adding 1.1%.
San Francisco Federal Reserve Bank President Mary Daly on Monday said "the time is upon us" to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.
Traders see a 70% chance of a 25-basis-point (bp) rate cut and about 30% probability of a bigger 50-bp reduction, according to the CME FedWatch tool.
Monday, 26 August 2024
#AbuDhabi Builds Guggenheim Bigger Than New York's Amid Push to Lure Rich Expats - Bloomberg
Abu Dhabi Builds Guggenheim Bigger Than New York's Amid Push to Lure Rich Expats - Bloomberg
The massive translucent cones sliding down the sides of the Guggenheim museum in Abu Dhabi are finally visible to passersby whizzing through the city’s highway. It’s set to be about 12 times the size of its New York counterpart.
Nearby, soaring metal structures resembling falcon wings sit atop the roof of the new Zayed National Museum, just miles from an upcoming natural history museum and a branch of the Louvre that opened in 2017.
All around, there are growing signs of a massive construction boom that’s changing the face of this once sleepy, oil-rich emirate, which holds about 6% of the world’s crude reserves under its sands and controls $1.5 trillion in sovereign wealth.
Sprawling theme parks, five-star hotels, luxury homes, sports complexes and high-end office towers are rising at breakneck speed as the city’s rulers spend billions to diversify the economy and cater to global financial giants like Brevan Howard Asset Management and Greg Coffey’s Kirkoswald Asset Management, who’ve set up here.
The Guggenheim is part of a more than $10 billion push to boost tourism and cultural activity in the emirate, the capital of the United Arab Emirates. Meantime, Abu Dhabi is also pouring billions more into building sprawling residential developments to attract rich expatriates to live and work here. Wealthy buyers from the UK, India, Spain and beyond are snapping up seaside villas costing millions.
There are challenges to the desert city’s big ambitions. The Middle East is heating up at one of the world’s fastest rates and while the UAE is among countries that have pledged to reduce emissions, there are concerns parts of the Gulf could become too hot for people over coming decades. The region can also be volatile — the Israel-Hamas war, now in its 11th month, still threatens to spill over into a wider conflict.
Still, the UAE’s rulers, who are already using their oil wealth to wield more international power, want a city that showcases this heft.
“Abu Dhabi is trying to position itself as a global hub, not just a regional hub,” said Sultan Sooud Al Qassemi, an Emirati columnist, art collector and member of the ruling family of the emirate of Sharjah. “It’s building the physical infrastructure that goes with its global ambition as the capital of a country that’s punching above its weight not just economically, but also politically and culturally.”
Attempts to create international hubs in the Middle East have had mixed results. Doha spent hundreds of billions of dollars to prepare for the football World Cup and aimed to transform itself into a regional tourism hotspot, but is now grappling with an oversupply of hotel rooms. Saudi Arabia planned to build the new city of Neom for more than $500 billion, but has pared back some goals amid funding limitations.
Dubai, meanwhile, built all the trappings of a global metropolis over a few decades and is widely regarded as a success story. Still, an influx of expatriates since the pandemic has taken its toll on the city's infrastructure. Roads around the financial center are routinely packed and waiting lists for schools run long. The emirate's vulnerability to climate change was also on on display in April amid unusually heavy rains that brought it to a standstill. (Abu Dhabi is a network of islands and that helped drain some of the floods, but it also experienced significant water logging.)
The UAE is a federation of seven sheikhdoms that includes both Dubai and Abu Dhabi, and was formed in 1971. Oil was discovered in the capital in the late 1950s, helping transform the country — then, a backwater populated by just over 100,000 people — beyond recognition.
In the decades that followed, it was Dubai that emerged as the regional hub, with its open-for-business approach attracting the most influential names in finance. Abu Dhabi took a more staid approach for years, though that’s now changing. Its quest for new residents also coincides with Riyadh’s increasingly aggressive expansion push, setting the stage for a three-way tussle for talent.
Unlike Saudi Arabia, which is pressuring firms to set up regional headquarters in the kingdom or risk losing business, Abu Dhabi is taking a different approach. Officials are quietly orchestrating a package of perks they hope will help propel the city up the ranks of the world’s biggest financial centers. A horde of firms have already rushed in, leading to a shortage of office space.
Abu Dhabi first started building on Saadiyat and Yas islands in 2005. Work on some projects stalled in the aftermath of the global credit crisis and the problems worsened during the 2014 oil crash. After the pandemic, property prices rebounded from a lengthy stagnation as international banks, hedge funds and traders arrived in the UAE to capitalize on low taxes and easy residency.
Zero income tax helped lure wealthy families seeking to avoid rising taxes in Europe, and the country has widened the pool of residents eligible for 10-year residency. A survey by real-estate agency BetterHomes shows that British nationals were the biggest purchasers of Abu Dhabi residential property in the first half of 2024, followed by buyers from the UAE, India, Spain, Turkey and the US.
Still, expats without citizenship rights make up more than 80% of the UAE’s population, which could add a layer of uncertainty.
“People and capital are fickle and they can move on to the next shiny thing,” said Sarah Moser, a professor at McGill University and director of the New Cities Lab. “Just because you build it, it doesn’t necessarily mean people will come forever. They may come for the first years or decades, but people are very mobile and without offering citizenship people and capital can move.”
“A hundred years in the future, I wonder what’s going to remain of all of this,” Moser said.
Those potential challenges haven’t stopped buyers. Demand is surging and prices for villas on Saadiyat island — favored by wealthy investors looking for beachside penthouses — rose nearly 15% in the first quarter from a year earlier and rents climbed 6.4% in the same period, according to CBRE Group Inc. Meanwhile, occupancy in Abu Dhabi’s financial center has reached 95%.
Developers are rushing to capitalize on the demand. Nestled among mangroves, Abu Dhabi’s Jubail Island is bustling with cranes and workers. They’re constructing a $4 billion community that spans 2,800 hectares and will house about 10,000 people in low-density villages. It will include schools, clinics, gyms and other facilities. Water-front mansions can sell for as much as $18 million.
On nearby Ramhan Island, a developer owned by royal family members is building 1,800 mansions and 900 homes. A luxury Ritz Carlton resort is being built on stilts, Maldives style.
A hill that’s 50 meters high is being mounted at the center of Hudayriyat Island, where luxury homes will be perched in a cascading formation resembling the Greek island Santorini. Some will be open for sale to foreign buyers, something that is restricted in many parts of Abu Dhabi.
“Dubai was the showier emirate,” Moser said. “But that changed in recent years and now Abu Dhabi has a completely different strategy. It’s all about attracting international investment and diversifying the economy.”
Developers are expected to complete construction of 8,660 homes in Abu Dhabi this year. They’re also expected to hand over 56,000 square meters of office space mostly in Masdar Square, a low carbon city build in Abu Dhabi, during the same period.
Still, as Abu Dhabi expands its infrastructure, the demand for energy to cool buildings in one of the world’s hottest regions will grow more acute and stands in direct conflict with the government’s sustainability commitments. The UAE, which is one of the world’s highest emitters of greenhouse gasses on a per capita basis, hosted COP28, the United Nations Climate Conference last year. That momentum will prove critical as the planet continues to warm, with countries in the Gulf heating up about twice as fast as the global average.
Sustainable building design will become vital amid the need to reduce energy use in a region where up to 70% of electricity goes to cooling homes.
Abu Dhabi's strategy of expanding the population could carry risks because it depends on the availability of cheap oil for the energy needed to cool homes and offices in an ever heating world, Moser said.
As the real-estate market rebounds, projects that were put on hold during the financial crisis are being revived. The Guggenheim is finally taking shape nearly 20 years after architect Frank Gehry first unveiled the design. Abu Dhabi is also building hospitals and schools to service the new residential communities. Gordonstoun, the Scottish boarding school where King Charles was educated, is planning to open its first campus in the Persian Gulf on Abu Dhabi's Jubail Island in 2026.
The central idea is to make the city attractive to people from all parts of the world. Saadiyat Island now has a complex encompassing a mosque, a church and a synagogue.
“Where else would you walk out of a Louvre and into a Guggenheim in few minutes,” Al Qassimi said.
The massive translucent cones sliding down the sides of the Guggenheim museum in Abu Dhabi are finally visible to passersby whizzing through the city’s highway. It’s set to be about 12 times the size of its New York counterpart.
Nearby, soaring metal structures resembling falcon wings sit atop the roof of the new Zayed National Museum, just miles from an upcoming natural history museum and a branch of the Louvre that opened in 2017.
All around, there are growing signs of a massive construction boom that’s changing the face of this once sleepy, oil-rich emirate, which holds about 6% of the world’s crude reserves under its sands and controls $1.5 trillion in sovereign wealth.
Sprawling theme parks, five-star hotels, luxury homes, sports complexes and high-end office towers are rising at breakneck speed as the city’s rulers spend billions to diversify the economy and cater to global financial giants like Brevan Howard Asset Management and Greg Coffey’s Kirkoswald Asset Management, who’ve set up here.
The Guggenheim is part of a more than $10 billion push to boost tourism and cultural activity in the emirate, the capital of the United Arab Emirates. Meantime, Abu Dhabi is also pouring billions more into building sprawling residential developments to attract rich expatriates to live and work here. Wealthy buyers from the UK, India, Spain and beyond are snapping up seaside villas costing millions.
There are challenges to the desert city’s big ambitions. The Middle East is heating up at one of the world’s fastest rates and while the UAE is among countries that have pledged to reduce emissions, there are concerns parts of the Gulf could become too hot for people over coming decades. The region can also be volatile — the Israel-Hamas war, now in its 11th month, still threatens to spill over into a wider conflict.
Still, the UAE’s rulers, who are already using their oil wealth to wield more international power, want a city that showcases this heft.
“Abu Dhabi is trying to position itself as a global hub, not just a regional hub,” said Sultan Sooud Al Qassemi, an Emirati columnist, art collector and member of the ruling family of the emirate of Sharjah. “It’s building the physical infrastructure that goes with its global ambition as the capital of a country that’s punching above its weight not just economically, but also politically and culturally.”
Attempts to create international hubs in the Middle East have had mixed results. Doha spent hundreds of billions of dollars to prepare for the football World Cup and aimed to transform itself into a regional tourism hotspot, but is now grappling with an oversupply of hotel rooms. Saudi Arabia planned to build the new city of Neom for more than $500 billion, but has pared back some goals amid funding limitations.
Dubai, meanwhile, built all the trappings of a global metropolis over a few decades and is widely regarded as a success story. Still, an influx of expatriates since the pandemic has taken its toll on the city's infrastructure. Roads around the financial center are routinely packed and waiting lists for schools run long. The emirate's vulnerability to climate change was also on on display in April amid unusually heavy rains that brought it to a standstill. (Abu Dhabi is a network of islands and that helped drain some of the floods, but it also experienced significant water logging.)
The UAE is a federation of seven sheikhdoms that includes both Dubai and Abu Dhabi, and was formed in 1971. Oil was discovered in the capital in the late 1950s, helping transform the country — then, a backwater populated by just over 100,000 people — beyond recognition.
In the decades that followed, it was Dubai that emerged as the regional hub, with its open-for-business approach attracting the most influential names in finance. Abu Dhabi took a more staid approach for years, though that’s now changing. Its quest for new residents also coincides with Riyadh’s increasingly aggressive expansion push, setting the stage for a three-way tussle for talent.
Unlike Saudi Arabia, which is pressuring firms to set up regional headquarters in the kingdom or risk losing business, Abu Dhabi is taking a different approach. Officials are quietly orchestrating a package of perks they hope will help propel the city up the ranks of the world’s biggest financial centers. A horde of firms have already rushed in, leading to a shortage of office space.
Abu Dhabi first started building on Saadiyat and Yas islands in 2005. Work on some projects stalled in the aftermath of the global credit crisis and the problems worsened during the 2014 oil crash. After the pandemic, property prices rebounded from a lengthy stagnation as international banks, hedge funds and traders arrived in the UAE to capitalize on low taxes and easy residency.
Zero income tax helped lure wealthy families seeking to avoid rising taxes in Europe, and the country has widened the pool of residents eligible for 10-year residency. A survey by real-estate agency BetterHomes shows that British nationals were the biggest purchasers of Abu Dhabi residential property in the first half of 2024, followed by buyers from the UAE, India, Spain, Turkey and the US.
Still, expats without citizenship rights make up more than 80% of the UAE’s population, which could add a layer of uncertainty.
“People and capital are fickle and they can move on to the next shiny thing,” said Sarah Moser, a professor at McGill University and director of the New Cities Lab. “Just because you build it, it doesn’t necessarily mean people will come forever. They may come for the first years or decades, but people are very mobile and without offering citizenship people and capital can move.”
“A hundred years in the future, I wonder what’s going to remain of all of this,” Moser said.
Those potential challenges haven’t stopped buyers. Demand is surging and prices for villas on Saadiyat island — favored by wealthy investors looking for beachside penthouses — rose nearly 15% in the first quarter from a year earlier and rents climbed 6.4% in the same period, according to CBRE Group Inc. Meanwhile, occupancy in Abu Dhabi’s financial center has reached 95%.
Developers are rushing to capitalize on the demand. Nestled among mangroves, Abu Dhabi’s Jubail Island is bustling with cranes and workers. They’re constructing a $4 billion community that spans 2,800 hectares and will house about 10,000 people in low-density villages. It will include schools, clinics, gyms and other facilities. Water-front mansions can sell for as much as $18 million.
On nearby Ramhan Island, a developer owned by royal family members is building 1,800 mansions and 900 homes. A luxury Ritz Carlton resort is being built on stilts, Maldives style.
A hill that’s 50 meters high is being mounted at the center of Hudayriyat Island, where luxury homes will be perched in a cascading formation resembling the Greek island Santorini. Some will be open for sale to foreign buyers, something that is restricted in many parts of Abu Dhabi.
“Dubai was the showier emirate,” Moser said. “But that changed in recent years and now Abu Dhabi has a completely different strategy. It’s all about attracting international investment and diversifying the economy.”
Developers are expected to complete construction of 8,660 homes in Abu Dhabi this year. They’re also expected to hand over 56,000 square meters of office space mostly in Masdar Square, a low carbon city build in Abu Dhabi, during the same period.
Still, as Abu Dhabi expands its infrastructure, the demand for energy to cool buildings in one of the world’s hottest regions will grow more acute and stands in direct conflict with the government’s sustainability commitments. The UAE, which is one of the world’s highest emitters of greenhouse gasses on a per capita basis, hosted COP28, the United Nations Climate Conference last year. That momentum will prove critical as the planet continues to warm, with countries in the Gulf heating up about twice as fast as the global average.
Sustainable building design will become vital amid the need to reduce energy use in a region where up to 70% of electricity goes to cooling homes.
Abu Dhabi's strategy of expanding the population could carry risks because it depends on the availability of cheap oil for the energy needed to cool homes and offices in an ever heating world, Moser said.
As the real-estate market rebounds, projects that were put on hold during the financial crisis are being revived. The Guggenheim is finally taking shape nearly 20 years after architect Frank Gehry first unveiled the design. Abu Dhabi is also building hospitals and schools to service the new residential communities. Gordonstoun, the Scottish boarding school where King Charles was educated, is planning to open its first campus in the Persian Gulf on Abu Dhabi's Jubail Island in 2026.
The central idea is to make the city attractive to people from all parts of the world. Saadiyat Island now has a complex encompassing a mosque, a church and a synagogue.
“Where else would you walk out of a Louvre and into a Guggenheim in few minutes,” Al Qassimi said.
#Saudi Perfume Maker’s $188 Million IPO Sells Out In Hours - Bloomberg
Saudi Perfume Maker’s $188 Million IPO Sells Out In Hours - Bloomberg
Saudi Arabia-based perfume maker Al Majed for Oud Co. received more orders for its initial public offering than shares available in just a few hours after books opened on the deal on Sunday.
The company is selling a 30% stake — 7.5 million shares — and seeks to raise as much as $188 million. Institutional investors fully covered the order book throughout the 90 riyals to 94 riyals ($24 to $25) price range, according to people familiar with the matter, who asked not to be identified as the information is private.
The offer period and bookbuilding for institutional investors will run until Aug. 29, while retail investors will be able to submit offers on Sept. 15. Al Majed for Oud hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.
Saudi Arabia’s equity capital markets have been busy this year, with a number of IPOs and oil giant Saudi Aramco’s $12 billion secondary offering — the biggest share sale of the year globally.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud, another Saudi maker of the perfume, may also eventually come to the Riyadh bourse. The company hired Emirates NBD Capital and SNB Capital earlier this year for a potential share sale, Bloomberg has reported.
Meanwhile, Saudi flour milling company Arabian Mills for Food Products Co. last week said it plans to offer more than 15 million shares on the local stock exchange. It hasn’t yet provided a price range.
Saudi Arabia-based perfume maker Al Majed for Oud Co. received more orders for its initial public offering than shares available in just a few hours after books opened on the deal on Sunday.
The company is selling a 30% stake — 7.5 million shares — and seeks to raise as much as $188 million. Institutional investors fully covered the order book throughout the 90 riyals to 94 riyals ($24 to $25) price range, according to people familiar with the matter, who asked not to be identified as the information is private.
The offer period and bookbuilding for institutional investors will run until Aug. 29, while retail investors will be able to submit offers on Sept. 15. Al Majed for Oud hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.
Saudi Arabia’s equity capital markets have been busy this year, with a number of IPOs and oil giant Saudi Aramco’s $12 billion secondary offering — the biggest share sale of the year globally.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud, another Saudi maker of the perfume, may also eventually come to the Riyadh bourse. The company hired Emirates NBD Capital and SNB Capital earlier this year for a potential share sale, Bloomberg has reported.
Meanwhile, Saudi flour milling company Arabian Mills for Food Products Co. last week said it plans to offer more than 15 million shares on the local stock exchange. It hasn’t yet provided a price range.
#Dubai Luxury Real Estate's 'Value Proposition'; #AbuDhabi's Construction Boom - Bloomberg
Dubai Luxury Real Estate's 'Value Proposition'; Abu Dhabi's Construction Boom - Bloomberg
An influx of millionaires since 2020 has transformed Dubai into one of the world’s hottest markets for prime real estate. But despite a steep increase in prices — 17.4% last year by one estimate — the emirate offers more value for money than most global cities.
“The market is still relatively competitively priced by global standards, at $850 per square foot, offers a comparatively low cost of living, a relatively easy visa process, and warmer climate which continues to attract international and domestic buyers,” Savills said in a report.
Cushman & Wakefield Core says more than 300 homes worth $5.4 million or more changed hands in the second quarter, a 12% increase. That’s after the city recorded 431 transactions worth at least $10 million last year, more than anywhere else, according to Knight Frank.
The United Arab Emirates is expected to attract more millionaires than anywhere in the world this year too and home values have continued to rise. Prices in the city increased 3% in the first half, according to Savills, against the backdrop of falling values in cities like London, Los Angeles, Miami and New York.
“If you look at what you are getting versus what you are paying, $1 million in Dubai gets you at least 1,000 square feet on average in three of the most prime residential areas as opposed to a city like Monte Carlo where you will get 172 square feet on average,” Muhammad BinGhatti, chairman of Binghatti Holding told my colleague Joumanna Bercetche on Bloomberg TV.
“I think the international buyer is noticing that day by day,” he said. “That’s bringing in the ultra-high net worth individuals.”
To be sure, Cushman & Wakefield Core said there had been a slowdown in off-plan prime real estate transactions in the first half, but attributed this to lower inventory at the top end of the market. Secondary sales remained steady.
To capitalize, Binghatti is among firms tying up with luxury brands on expensive apartments — such branded developments, by some estimates, account for a fifth of the market. The firm recently announced a Mercedes-branded tower, where apartments will cost up to $10 million; a tie-up with Bugatti on a project that will include elevators to transport cars to penthouses; and a partnership with jeweler Jacob & Co. on a 500-meter (1,640-feet) tower that’s set to become the world’s tallest residential building.
Meanwhile, others are resuming work on long-dormant projects. The scions of a billionaire developer are seeking to revive World Islands with beach-front mansions starting from $13.6 million. The Palm Jebel Ali project was restarted last year and drew hundreds of buyers who queued in the heat for for $5 million homes.
Still, Cushman & Wakefield Core cautioned the market as a whole is exhibiting signs of moderation and transaction volumes are plateauing. But across the city, prices continued their upward trajectory for the 16th consecutive quarter, with a 21% year-on-year increase. Since 2020, values are now up more than 60%.
“I think it’s the value proposition,” BinGhatti said, pointing to the relatively low prices in Dubai across the spectrum.
An influx of millionaires since 2020 has transformed Dubai into one of the world’s hottest markets for prime real estate. But despite a steep increase in prices — 17.4% last year by one estimate — the emirate offers more value for money than most global cities.
“The market is still relatively competitively priced by global standards, at $850 per square foot, offers a comparatively low cost of living, a relatively easy visa process, and warmer climate which continues to attract international and domestic buyers,” Savills said in a report.
Cushman & Wakefield Core says more than 300 homes worth $5.4 million or more changed hands in the second quarter, a 12% increase. That’s after the city recorded 431 transactions worth at least $10 million last year, more than anywhere else, according to Knight Frank.
The United Arab Emirates is expected to attract more millionaires than anywhere in the world this year too and home values have continued to rise. Prices in the city increased 3% in the first half, according to Savills, against the backdrop of falling values in cities like London, Los Angeles, Miami and New York.
“If you look at what you are getting versus what you are paying, $1 million in Dubai gets you at least 1,000 square feet on average in three of the most prime residential areas as opposed to a city like Monte Carlo where you will get 172 square feet on average,” Muhammad BinGhatti, chairman of Binghatti Holding told my colleague Joumanna Bercetche on Bloomberg TV.
“I think the international buyer is noticing that day by day,” he said. “That’s bringing in the ultra-high net worth individuals.”
To be sure, Cushman & Wakefield Core said there had been a slowdown in off-plan prime real estate transactions in the first half, but attributed this to lower inventory at the top end of the market. Secondary sales remained steady.
To capitalize, Binghatti is among firms tying up with luxury brands on expensive apartments — such branded developments, by some estimates, account for a fifth of the market. The firm recently announced a Mercedes-branded tower, where apartments will cost up to $10 million; a tie-up with Bugatti on a project that will include elevators to transport cars to penthouses; and a partnership with jeweler Jacob & Co. on a 500-meter (1,640-feet) tower that’s set to become the world’s tallest residential building.
Meanwhile, others are resuming work on long-dormant projects. The scions of a billionaire developer are seeking to revive World Islands with beach-front mansions starting from $13.6 million. The Palm Jebel Ali project was restarted last year and drew hundreds of buyers who queued in the heat for for $5 million homes.
Still, Cushman & Wakefield Core cautioned the market as a whole is exhibiting signs of moderation and transaction volumes are plateauing. But across the city, prices continued their upward trajectory for the 16th consecutive quarter, with a 21% year-on-year increase. Since 2020, values are now up more than 60%.
“I think it’s the value proposition,” BinGhatti said, pointing to the relatively low prices in Dubai across the spectrum.
#Qatar strikes another 15-year LNG supply deal with #Kuwait | Reuters
Qatar strikes another 15-year LNG supply deal with Kuwait | Reuters
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
The chief executives of state-owned QatarEnergy and Kuwait Petroleum Corporation (KPC) signed the long-term sales and purchase agreement for LNG in Kuwait. Deliveries will start in January 2025, KPC CEO Sheikh Nawaf al-Sabah said.
Reuters reported last week that QatarEnergy and KPC were in talks for the deal.
Kuwait, an OPEC member and a major oil producer, has been boosting its reliance on imported gas to meet power demand, especially in the summer when consumption by air conditioning systems rises sharply. KPC also aims to ramp up its own gas output as part of a strategy that targets higher oil production capacity too.
Last week, Kuwait faced a second round of scheduled power outages this summer due to a lapse in local gas supply, despite officials indicating there would be no more cuts after the first round in June. Summer temperatures regularly soar above 50 degrees Celsius (122 degrees Fahrenheit).
The deal will play "a pivotal role in electricity generation in Kuwait," Sheikh Nawaf said.
He declined to disclose the deal's value, saying it was confidential.
Qatar this year announced a further expansion of its North Field project that will cement it as one of the world's top LNG exporters. The project will boost the North Field's LNG output to 142 mtpa from 77 mtpa by 2030.
The LNG from the new supply deal for Kuwait could be partly from the North Field expansion project and partly from Qatar's existing output, said QatarEnergy CEO Saad al-Kaabi, who is also Qatar's state minister for energy. It will be delivered to Kuwait's Al Zour port.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
The chief executives of state-owned QatarEnergy and Kuwait Petroleum Corporation (KPC) signed the long-term sales and purchase agreement for LNG in Kuwait. Deliveries will start in January 2025, KPC CEO Sheikh Nawaf al-Sabah said.
Reuters reported last week that QatarEnergy and KPC were in talks for the deal.
Kuwait, an OPEC member and a major oil producer, has been boosting its reliance on imported gas to meet power demand, especially in the summer when consumption by air conditioning systems rises sharply. KPC also aims to ramp up its own gas output as part of a strategy that targets higher oil production capacity too.
Last week, Kuwait faced a second round of scheduled power outages this summer due to a lapse in local gas supply, despite officials indicating there would be no more cuts after the first round in June. Summer temperatures regularly soar above 50 degrees Celsius (122 degrees Fahrenheit).
The deal will play "a pivotal role in electricity generation in Kuwait," Sheikh Nawaf said.
He declined to disclose the deal's value, saying it was confidential.
Qatar this year announced a further expansion of its North Field project that will cement it as one of the world's top LNG exporters. The project will boost the North Field's LNG output to 142 mtpa from 77 mtpa by 2030.
The LNG from the new supply deal for Kuwait could be partly from the North Field expansion project and partly from Qatar's existing output, said QatarEnergy CEO Saad al-Kaabi, who is also Qatar's state minister for energy. It will be delivered to Kuwait's Al Zour port.
Most Gulf markets gain on Fed rate-cut hopes | Reuters
Most Gulf markets gain on Fed rate-cut hopes | Reuters
Most stock markets in the Gulf ended higher on Monday after Federal Reserve Chair Jerome Powell signalled the U.S. central bank will most likely cut interest rates in September.
Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence inflation was within reach of the Fed's 2% target.
U.S. personal consumption and core inflation data are due on Friday. Analysts are expecting the data to be benign enough to allow for rate cuts next month.
Fed fund futures are fully priced for a quarter-point cut at the Sept. 18 meeting, and imply a 38% chance of an outsized move of 50 basis points. The market also has 103 basis points of easing priced in for this year and another 122 basis points in 2025. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab advanced 1.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab closing 2% higher.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
Dubai's main share index (.DFMGI), opens new tab gained 0.8%, led by a 1.6% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab finished flat.
Oil prices - a catalyst for the Gulf's financial markets - rose nearly 3% on reports of a near total production stoppage in Libya, adding to earlier gains on concerns that escalating conflict in the Middle East could disrupt regional oil supplies.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.2%, helped by a 6.4% gain in EFG Holding (HRHO.CA), opens new tab.
Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence inflation was within reach of the Fed's 2% target.
U.S. personal consumption and core inflation data are due on Friday. Analysts are expecting the data to be benign enough to allow for rate cuts next month.
Fed fund futures are fully priced for a quarter-point cut at the Sept. 18 meeting, and imply a 38% chance of an outsized move of 50 basis points. The market also has 103 basis points of easing priced in for this year and another 122 basis points in 2025. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab advanced 1.2%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab closing 2% higher.
Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.
Dubai's main share index (.DFMGI), opens new tab gained 0.8%, led by a 1.6% rise in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab finished flat.
Oil prices - a catalyst for the Gulf's financial markets - rose nearly 3% on reports of a near total production stoppage in Libya, adding to earlier gains on concerns that escalating conflict in the Middle East could disrupt regional oil supplies.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.2%, helped by a 6.4% gain in EFG Holding (HRHO.CA), opens new tab.
Sunday, 25 August 2024
#Kuwait picks new finance and trade ministers in cabinet shuffle | Reuters
Kuwait picks new finance and trade ministers in cabinet shuffle | Reuters
Kuwait has named Nora Suleiman Al-Fassam and Khalifa Abdullah Ajeel as its new finance and trade ministers respectively, as part of a cabinet shuffle, according to a decree issued by the country's Emir on Sunday.
Al-Fassam, who was also appointed minister of state for economic and investment affairs, is a banker with extensive experience in corporate finance and investment banking. She most recently served as chief strategy officer at Kuwait's Sharia-compliant Boubyan Bank.
Ajeel headed Kuwait's State Bureau of Financial Control and was a member of the board of commissioners at the Capital Markets Authority.
Kuwait retained Mahmoud Bushehri as minister of electricity, despite a recent power crisis that led the Gulf state to impose scheduled outages in parts of the country due to a disruption in gas supplies.
During the summer, temperatures in Kuwait typically exceed 50 degrees Celsius (122 degrees Fahrenheit), leading to increased power consumption amid demand for cooling.
Kuwait has named Nora Suleiman Al-Fassam and Khalifa Abdullah Ajeel as its new finance and trade ministers respectively, as part of a cabinet shuffle, according to a decree issued by the country's Emir on Sunday.
Al-Fassam, who was also appointed minister of state for economic and investment affairs, is a banker with extensive experience in corporate finance and investment banking. She most recently served as chief strategy officer at Kuwait's Sharia-compliant Boubyan Bank.
Ajeel headed Kuwait's State Bureau of Financial Control and was a member of the board of commissioners at the Capital Markets Authority.
Kuwait retained Mahmoud Bushehri as minister of electricity, despite a recent power crisis that led the Gulf state to impose scheduled outages in parts of the country due to a disruption in gas supplies.
During the summer, temperatures in Kuwait typically exceed 50 degrees Celsius (122 degrees Fahrenheit), leading to increased power consumption amid demand for cooling.
#Saudi Telecom Jumps Most Since 2008 After Dividend Boost - Bloomberg
Saudi Telecom Jumps Most Since 2008 After Dividend Boost - Bloomberg
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Shares in Saudi Arabia’s top telecom company rose the most in almost 16 years after the company announced plans to boost quarterly dividends and said it may consider handing over more money to investors via special payments.
Saudi Telecom Co. jumped 9.9% on the Saudi stock exchange on Sunday to 43.70 riyals ($11.65) a share, its biggest move on a closing basis since October 2008.
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Shares in Saudi Arabia’s top telecom company rose the most in almost 16 years after the company announced plans to boost quarterly dividends and said it may consider handing over more money to investors via special payments.
Saudi Telecom Co. jumped 9.9% on the Saudi stock exchange on Sunday to 43.70 riyals ($11.65) a share, its biggest move on a closing basis since October 2008.
#Saudi bourse gains after Fed signals lower rates; #Qatar falls | Reuters
Saudi bourse gains after Fed signals lower rates; Qatar falls | Reuters
Saudi Arabia's stock market rose on Sunday after Friday's speech by U.S. Federal Reserve Chair Jerome Powell confirmed the United States would soon begin interest rate cuts.
Traders are also pricing in about 106 bps of cuts by the end of the year.
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, 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 0.6%, with Saudi Telecom Company (7010.SE), opens new tab jumping 9.9%, after the telecoms company announced a 0.55 riyal per share quarterly dividend for the next three years starting from fourth-quarter.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.7%.
Oil prices on Friday jumped more than 2%, rebounding after losses earlier in the week on swelling U.S. crude stocks and a weakening demand outlook in China.
The Qatari benchmark (.QSI), opens new tab eased 0.2%, hit by a 0.7% fall in Qatar Islamic Bank (QISB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.2%, with Commercial International Bank Egypt (COMI.CA), opens new tab down 1.1%.
Federal Reserve Chair Jerome Powell on Friday endorsed an imminent start to interest rate cuts, saying further cooling in the job market would be unwelcome and expressing confidence that inflation is within reach of the U.S. central bank's 2% target.
Traders increased bets for a bigger rate cut in September following Powell's speech, with the fed funds futures now pricing in a 37% chance of a 50 basis point cut next month, up from about 25% late on Thursday.
Traders increased bets for a bigger rate cut in September following Powell's speech, with the fed funds futures now pricing in a 37% chance of a 50 basis point cut next month, up from about 25% late on Thursday.
Traders are also pricing in about 106 bps of cuts by the end of the year.
Monetary policy in the six-member Gulf Cooperation Council (GCC), including the UAE, 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 0.6%, with Saudi Telecom Company (7010.SE), opens new tab jumping 9.9%, after the telecoms company announced a 0.55 riyal per share quarterly dividend for the next three years starting from fourth-quarter.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.7%.
Oil prices on Friday jumped more than 2%, rebounding after losses earlier in the week on swelling U.S. crude stocks and a weakening demand outlook in China.
The Qatari benchmark (.QSI), opens new tab eased 0.2%, hit by a 0.7% fall in Qatar Islamic Bank (QISB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.2%, with Commercial International Bank Egypt (COMI.CA), opens new tab down 1.1%.
#Saudi Perfume Maker Aims to Raise Up to $188 Million In IPO - Bloomberg
Saudi Perfume Maker Aims to Raise Up to $188 Million In IPO - Bloomberg
Saudi Arabia-based perfume maker Al Majed for Oud Company plans to raise up to $188 million in an initial public offering on the kingdom’s main stock exchange.
The company will sell a 30% stake, or 7.5 million shares, to investors at a price range of 90 riyals to 94 riyals ($24 to $25), according to a statement. The offer period and bookbuilding for institutional investors will run from Aug. 25 to Aug. 29. Retail investors will be able to submit offers on Sept. 15.
Al Majed for Oud hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.
Saudi Arabia’s equity capital markets have been busy this year, with a number of IPOs having occurred and oil giant Saudi Aramco’s $12 billion secondary offering ranking as the biggest equity sale of the year globally.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud, another Saudi maker of the perfume, may also eventually come to the Saudi market. The company hired Emirates NBD Capital and SNB Capital earlier this year for a potential share sale, Bloomberg has reported.
In other consumer markets, Saudi flour milling company Arabian Mills for Food Products Co. last week said it plans to offer more than 15 million shares on the local stock exchange. It hasn’t yet provided a price range.
Saudi Arabia-based perfume maker Al Majed for Oud Company plans to raise up to $188 million in an initial public offering on the kingdom’s main stock exchange.
The company will sell a 30% stake, or 7.5 million shares, to investors at a price range of 90 riyals to 94 riyals ($24 to $25), according to a statement. The offer period and bookbuilding for institutional investors will run from Aug. 25 to Aug. 29. Retail investors will be able to submit offers on Sept. 15.
Al Majed for Oud hired BSF Capital, the investment banking arm of Banque Saudi Fransi, for the offering.
Saudi Arabia’s equity capital markets have been busy this year, with a number of IPOs having occurred and oil giant Saudi Aramco’s $12 billion secondary offering ranking as the biggest equity sale of the year globally.
Oud perfume is a traditional Middle Eastern fragrance derived from the resin of the aquilaria tree native to Southeast Asia. Given only a small percentage of the trees produce the resin, it’s one of the rarest natural resources in the world.
Arabian Oud, another Saudi maker of the perfume, may also eventually come to the Saudi market. The company hired Emirates NBD Capital and SNB Capital earlier this year for a potential share sale, Bloomberg has reported.
In other consumer markets, Saudi flour milling company Arabian Mills for Food Products Co. last week said it plans to offer more than 15 million shares on the local stock exchange. It hasn’t yet provided a price range.
#Saudi Telecom Jumps Most Since 2014 After Boosting Its Dividend - Bloomberg
Saudi Telecom Jumps Most Since 2014 After Boosting Its Dividend - Bloomberg
Shares in Saudi Arabia’s top telecom company rose the most in almost a decade after the company announced plans to boost quarterly dividends and said it may consider handing over more money to investors via special payments.
Saudi Telecom Co. jumped more than 9.9% at the start of trading on the Saudi stock exchange on Sunday, its biggest intraday move since 2014.
The stock climbed after STC, as the company is known, said it will pay a dividend of 0.55 riyals (15 US cents) per share every quarter for the next three years, starting in the final three months of 2024. That raises the annual cash dividend program by 37.5% and is reflective of the company’s “solid financial position.”
Saudi Telecom also said it may consider paying special dividends after assessing its financial position, future outlook, strategic investments, and capital expenditure needs.
STC is pursuing expansion plans as it looks to boost its business beyond Saudi Arabia’s borders. It agreed in April to sell a majority stake in towers unit Tawal to the kingdom’s sovereign wealth fund for $2.3 billion, in part to fund its growth strategy, and has had a keen eye on global acquisitions.
It purchased a stake in Spain’s Telefonica for $2.25 billion in 2023 and is reported to have recently sought approval from the Spanish government to raise its position further. The company also pursued a bid for Altice’s Portugal unit, but those talks recently fell apart, according to the Portuguese news site Eco.
STC in July reported second-quarter profit that topped estimates, though sales trailed expectations. The company has seen “steady growth” as domestic demand continues to be propped up by energy prices, according to Bloomberg Intelligence analyst John Davies. He sees mid-single digit revenue growth over the course of 2024.
Shares in Saudi Arabia’s top telecom company rose the most in almost a decade after the company announced plans to boost quarterly dividends and said it may consider handing over more money to investors via special payments.
Saudi Telecom Co. jumped more than 9.9% at the start of trading on the Saudi stock exchange on Sunday, its biggest intraday move since 2014.
The stock climbed after STC, as the company is known, said it will pay a dividend of 0.55 riyals (15 US cents) per share every quarter for the next three years, starting in the final three months of 2024. That raises the annual cash dividend program by 37.5% and is reflective of the company’s “solid financial position.”
Saudi Telecom also said it may consider paying special dividends after assessing its financial position, future outlook, strategic investments, and capital expenditure needs.
STC is pursuing expansion plans as it looks to boost its business beyond Saudi Arabia’s borders. It agreed in April to sell a majority stake in towers unit Tawal to the kingdom’s sovereign wealth fund for $2.3 billion, in part to fund its growth strategy, and has had a keen eye on global acquisitions.
It purchased a stake in Spain’s Telefonica for $2.25 billion in 2023 and is reported to have recently sought approval from the Spanish government to raise its position further. The company also pursued a bid for Altice’s Portugal unit, but those talks recently fell apart, according to the Portuguese news site Eco.
STC in July reported second-quarter profit that topped estimates, though sales trailed expectations. The company has seen “steady growth” as domestic demand continues to be propped up by energy prices, according to Bloomberg Intelligence analyst John Davies. He sees mid-single digit revenue growth over the course of 2024.
Friday, 23 August 2024
#Kuwait’s rating at AA-, stable outlook: Fitch
Kuwait’s rating at AA-, stable outlook: Fitch
In its recent assessment, Fitch Ratings has highlighted the robustness of Kuwait’s banking sector, noting that banks in the country are well-capitalized, well-funded, and exhibit strong risk management practices, reports Al-Seyassah daily.
Fitch anticipates a modest credit growth of 3 percent to 4 percent in 2024, influenced by higher interest rates and limited real GDP growth. However, the agency maintains a stable outlook for Kuwait’s rating at “AA-”, acknowledging the sector’s resilience while noting constraints related to oil dependency and the large public sector. Fitch’s analysis underscores that while Kuwaiti banks are positioned well with adequate capital and strong practices, overcoming political and institutional barriers is essential for accelerating credit growth and realizing the sector’s full potential.
The agency views the recent uptick in banking mergers and acquisitions as a positive development for the sector, as it promotes business model diversification and enhances financial stability. Fitch’s report comes amid ongoing discussions about significant mergers within the Kuwaiti banking industry. Notably, the Boubiyan Bank, the nation’s second-largest Islamic bank, and Gulf Bank, the fifth-largest, are exploring a potential merger. If realized, this merger could create a formidable Islamic bank with assets totaling 16 billion dinars (approximately $53 billion) and a 15 percent market share in terms of consolidated assets.
However, Fitch does not anticipate the merger’s completion before 2025. The landscape of banking mergers in Kuwait has been active, with Burgan Bank announcing its acquisition of a 100 percent stake in Bahrain’s United Gulf Bank in June. This move is part of Burgan Bank’s strategy to optimize capital and concentrate on GCC markets. Previous attempts at consolidation, such as the planned merger between Gulf Bank and Al Ahli Bank of Kuwait in 2023, were canceled.
Meanwhile, Kuwait Finance House (KFH) expanded its regional footprint by acquiring Bahrain-based Ahli United Bank in 2022, extending its presence to Bahrain, Egypt, and the UK, though KFH-Bahrain was sold to Al Salam Bank in May 2024. Boubiyan Bank also diversified by acquiring a majority stake in the Bank of London and the Middle East in 2020. Despite these strategic moves, the Kuwaiti banking sector faces challenges. Political deadlock, institutional constraints, and delayed reforms– such as the stalled public debt and mortgage laws –are impeding growth.
In its recent assessment, Fitch Ratings has highlighted the robustness of Kuwait’s banking sector, noting that banks in the country are well-capitalized, well-funded, and exhibit strong risk management practices, reports Al-Seyassah daily.
Fitch anticipates a modest credit growth of 3 percent to 4 percent in 2024, influenced by higher interest rates and limited real GDP growth. However, the agency maintains a stable outlook for Kuwait’s rating at “AA-”, acknowledging the sector’s resilience while noting constraints related to oil dependency and the large public sector. Fitch’s analysis underscores that while Kuwaiti banks are positioned well with adequate capital and strong practices, overcoming political and institutional barriers is essential for accelerating credit growth and realizing the sector’s full potential.
The agency views the recent uptick in banking mergers and acquisitions as a positive development for the sector, as it promotes business model diversification and enhances financial stability. Fitch’s report comes amid ongoing discussions about significant mergers within the Kuwaiti banking industry. Notably, the Boubiyan Bank, the nation’s second-largest Islamic bank, and Gulf Bank, the fifth-largest, are exploring a potential merger. If realized, this merger could create a formidable Islamic bank with assets totaling 16 billion dinars (approximately $53 billion) and a 15 percent market share in terms of consolidated assets.
However, Fitch does not anticipate the merger’s completion before 2025. The landscape of banking mergers in Kuwait has been active, with Burgan Bank announcing its acquisition of a 100 percent stake in Bahrain’s United Gulf Bank in June. This move is part of Burgan Bank’s strategy to optimize capital and concentrate on GCC markets. Previous attempts at consolidation, such as the planned merger between Gulf Bank and Al Ahli Bank of Kuwait in 2023, were canceled.
Meanwhile, Kuwait Finance House (KFH) expanded its regional footprint by acquiring Bahrain-based Ahli United Bank in 2022, extending its presence to Bahrain, Egypt, and the UK, though KFH-Bahrain was sold to Al Salam Bank in May 2024. Boubiyan Bank also diversified by acquiring a majority stake in the Bank of London and the Middle East in 2020. Despite these strategic moves, the Kuwaiti banking sector faces challenges. Political deadlock, institutional constraints, and delayed reforms– such as the stalled public debt and mortgage laws –are impeding growth.
Bank of Singapore sees Middle East accounting for a fifth of assets over 3 to 5 years | Reuters
Bank of Singapore sees Middle East accounting for a fifth of assets over 3 to 5 years | Reuters
Bank of Singapore aims to grow its business in the Middle East with the region contributing up to 20% of its overall revenue and private banking assets over the next three to five years from around 10% currently, its top executive said.
One of Asia's biggest private banks, Bank of Singapore has grown its assets under management (AUM) to $116 billion as at end-September 2023 from about $20 billion in 2010, as per the latest financials available for the unlisted firm.
The private bank's Singapore and Hong Kong hubs currently make up the majority of its AUM.
"UAE and in particular Dubai have become key destinations for global millionaires post-COVID," Ranjit Khanna, the head of private banking for Europe and the Middle East and chief executive for Dubai hub at Bank of Singapore, told Reuters.
"This really has been spurred on the back of people looking for alternatives, really positive federal government strategies to attract wealthy to these parts of the world, ease of doing business, positive infrastructure, golden visa regime."
A growing number of wealth managers in Asia are expanding or setting up offices in Dubai, capitalising on warming diplomatic ties between China and the Middle East and betting on a surge in demand from clients for geographical diversification.
"I personally believe the next decade, in the context of wealth management, belongs to Asia and the Middle East to a great extent," Khanna said.
Global net wealth, comprising financial wealth, liabilities and real assets, rose 4.3% last year from 0.2% a year ago, with the Middle East and Africa posting 7.8% jump, according to Boston Consulting Group's Global Wealth Report 2024, opens new tab.
The United Arab Emirates (UAE) posted the biggest percentage growth as a booking centre at 8.9% in terms of cross-border wealth on inflow from Saudi Arabia and other prosperous Middle East markets, the report showed.
The growth also came with UAE's increased role as a cross-border hub for Asia and Africa, partly driven by building closer ties with China and attracting significant international investment in the luxury real estate market, BCG added.
Bank of Singapore would evaluate making Dubai one of its booking centres in the future, Khanna said. Its current booking centres are Singapore and Hong Kong.
Bank of Singapore, part of Singapore's second-largest lender Oversea-Chinese Banking Corporation (OCBC.SI), opens new tab (OCBC), is also looking to grow its presence in the Middle East by tapping on OCBC's presence in Southeast Asia, China and Britain.
OCBC's wealth AUM, including that of Bank of Singapore, rose 2% to a record S$279 billion ($213.5 billion) in the second quarter.
Besides tapping on the growing wealth from global South Asians, people in the oil rich Gulf states, and Europeans into Dubai, Bank of Singapore saw opportunity and rising interests from rich Chinese clients, Khanna said.
"I'm certainly seeing an increasing flow of mainland Chinese clients coming into Dubai and the region broadly," he said.
($1 = 1.3070 Singapore dollars)
Bank of Singapore aims to grow its business in the Middle East with the region contributing up to 20% of its overall revenue and private banking assets over the next three to five years from around 10% currently, its top executive said.
One of Asia's biggest private banks, Bank of Singapore has grown its assets under management (AUM) to $116 billion as at end-September 2023 from about $20 billion in 2010, as per the latest financials available for the unlisted firm.
The private bank's Singapore and Hong Kong hubs currently make up the majority of its AUM.
"UAE and in particular Dubai have become key destinations for global millionaires post-COVID," Ranjit Khanna, the head of private banking for Europe and the Middle East and chief executive for Dubai hub at Bank of Singapore, told Reuters.
"This really has been spurred on the back of people looking for alternatives, really positive federal government strategies to attract wealthy to these parts of the world, ease of doing business, positive infrastructure, golden visa regime."
A growing number of wealth managers in Asia are expanding or setting up offices in Dubai, capitalising on warming diplomatic ties between China and the Middle East and betting on a surge in demand from clients for geographical diversification.
"I personally believe the next decade, in the context of wealth management, belongs to Asia and the Middle East to a great extent," Khanna said.
Global net wealth, comprising financial wealth, liabilities and real assets, rose 4.3% last year from 0.2% a year ago, with the Middle East and Africa posting 7.8% jump, according to Boston Consulting Group's Global Wealth Report 2024, opens new tab.
The United Arab Emirates (UAE) posted the biggest percentage growth as a booking centre at 8.9% in terms of cross-border wealth on inflow from Saudi Arabia and other prosperous Middle East markets, the report showed.
The growth also came with UAE's increased role as a cross-border hub for Asia and Africa, partly driven by building closer ties with China and attracting significant international investment in the luxury real estate market, BCG added.
Bank of Singapore would evaluate making Dubai one of its booking centres in the future, Khanna said. Its current booking centres are Singapore and Hong Kong.
Bank of Singapore, part of Singapore's second-largest lender Oversea-Chinese Banking Corporation (OCBC.SI), opens new tab (OCBC), is also looking to grow its presence in the Middle East by tapping on OCBC's presence in Southeast Asia, China and Britain.
OCBC's wealth AUM, including that of Bank of Singapore, rose 2% to a record S$279 billion ($213.5 billion) in the second quarter.
Besides tapping on the growing wealth from global South Asians, people in the oil rich Gulf states, and Europeans into Dubai, Bank of Singapore saw opportunity and rising interests from rich Chinese clients, Khanna said.
"I'm certainly seeing an increasing flow of mainland Chinese clients coming into Dubai and the region broadly," he said.
($1 = 1.3070 Singapore dollars)
Thursday, 22 August 2024
Most Gulf markets gain on hopes of early US Fed rate cut | Reuters
Most Gulf markets gain on hopes of early US Fed rate cut | Reuters
Most stock markets in the Gulf ended higher on Thursday, after U.S. Federal Reserve minutes signalled interest-rate cuts were set to begin in a few weeks' time.
The Fed appears to be very much on track for an interest-rate cut in September after a "vast majority" of officials said such an action was likely, according to the minutes of the U.S. central bank's July 30-31 meeting.
U.S. PMI and initial jobless claims figures are due later in the day.
Interest rate futures markets have fully priced in a 25-basis-point cut from the Fed next month, with a 1/3 chance of a 50-bp cut. They project 222 bps of U.S. easing by the end of 2025, against 163 bps for Europe. FEDWATCH
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 edged 0.1% higher, helped by a 1.7% increase in Middle East Pharmaceutical Industries (4016.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab finished 0.3% higher, with top lender Emirates NBD (ENBD.DU), opens new tab advancing 2.1%.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.3%.
The Qatari benchmark (.QSI), opens new tab was flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, with Commercial International Bank (COMI.CA), opens new tab rising 2.1%.
Egypt plans to return oil and gas production to normal levels by 2025, in cooperation with foreign partners, Prime Minister Mostafa Madbouly said in a press conference on Thursday.
Most stock markets in the Gulf ended higher on Thursday, after U.S. Federal Reserve minutes signalled interest-rate cuts were set to begin in a few weeks' time.
The Fed appears to be very much on track for an interest-rate cut in September after a "vast majority" of officials said such an action was likely, according to the minutes of the U.S. central bank's July 30-31 meeting.
U.S. PMI and initial jobless claims figures are due later in the day.
Interest rate futures markets have fully priced in a 25-basis-point cut from the Fed next month, with a 1/3 chance of a 50-bp cut. They project 222 bps of U.S. easing by the end of 2025, against 163 bps for Europe. FEDWATCH
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 edged 0.1% higher, helped by a 1.7% increase in Middle East Pharmaceutical Industries (4016.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab finished 0.3% higher, with top lender Emirates NBD (ENBD.DU), opens new tab advancing 2.1%.
In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.3%.
The Qatari benchmark (.QSI), opens new tab was flat.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, with Commercial International Bank (COMI.CA), opens new tab rising 2.1%.
Egypt plans to return oil and gas production to normal levels by 2025, in cooperation with foreign partners, Prime Minister Mostafa Madbouly said in a press conference on Thursday.
#SaudiArabia’s Sales From Oil Exports Drop to Three-Year Low - Bloomberg
Saudi Arabia’s Sales From Oil Exports Drop to Three-Year Low - Bloomberg
Saudi Arabia’s revenue from oil exports has slumped to the lowest level in three years, caused by a drop in prices and the kingdom’s decision to curb production.
Sales from shipments of crude oil and refined products fell to $17.7 billion in June, according to the country’s main statistics body. That’s down more than 9% year-on-year and about 12% from May.
Oil revenue remains crucial to Saudi Arabia, the de facto leader of the OPEC cartel and the world’s biggest exporter of crude. Those funds back Crown Prince Mohammed bin Salman’s drive to transform the economy with huge investments in everything from electric vehicles to semiconductors and football.
His push has been hindered by a fall in petrodollar inflows since 2022, when Russia’s invasion of Ukraine sent crude soaring to above $120 a barrel. At the time — at least for a few months — Saudi Arabia was earning $1 billion from oil exports every day.
Brent’s now trading around $76, down 6.2% this year, largely due to concerns about economic slowdowns in the US and China.
The kingdom’s had to scale back or delay some of its biggest projects, including parts of a sprawling new desert city known as Neom. It’s failed to lift prices with its strategy of cutting output.
OPEC+, which includes members of the Organization of Petroleum Exporting Countries and others such as Russia, is meant to start increasing production in the fourth quarter. BP Plc says the group will be “nervous” about that plan because of the pressure prices remain under.
Saudi Arabia’s revenue from oil exports has slumped to the lowest level in three years, caused by a drop in prices and the kingdom’s decision to curb production.
Sales from shipments of crude oil and refined products fell to $17.7 billion in June, according to the country’s main statistics body. That’s down more than 9% year-on-year and about 12% from May.
Oil revenue remains crucial to Saudi Arabia, the de facto leader of the OPEC cartel and the world’s biggest exporter of crude. Those funds back Crown Prince Mohammed bin Salman’s drive to transform the economy with huge investments in everything from electric vehicles to semiconductors and football.
His push has been hindered by a fall in petrodollar inflows since 2022, when Russia’s invasion of Ukraine sent crude soaring to above $120 a barrel. At the time — at least for a few months — Saudi Arabia was earning $1 billion from oil exports every day.
Brent’s now trading around $76, down 6.2% this year, largely due to concerns about economic slowdowns in the US and China.
The kingdom’s had to scale back or delay some of its biggest projects, including parts of a sprawling new desert city known as Neom. It’s failed to lift prices with its strategy of cutting output.
OPEC+, which includes members of the Organization of Petroleum Exporting Countries and others such as Russia, is meant to start increasing production in the fourth quarter. BP Plc says the group will be “nervous” about that plan because of the pressure prices remain under.
Gulf shares mixed in early trade, Powell's speech awaited | Reuters
Gulf shares mixed in early trade, Powell's speech awaited | Reuters
Stock markets in the Gulf were mixed in early trading on Thursday after the minutes from the most recent meeting of the U.S Federal Reserve cemented expectations for a September rate cut.
The Fed's minutes showed policymakers in the U.S. were ready to start cutting interest rates as soon as September.
Interest-rate futures have fully priced in a 25-basis-point U.S. rate cut next month, with a one-in-three chance of a 50-bp cut. FEDWATCH
The U.S central bank's Chair Jerome Powell's impending speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
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 Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, with Multiply Group (MULTIPLY.AD), opens new tab rising 3.7% and ADNOC Gas (ADNOCGAS.AD), opens new tab advancing 1.3%, while Phoenix Group (PHX.AD), opens new tab slipped 1.7%.
The cryptomining and blockchain conglomerate Phoenix said on Wednesday it had partnered with cryptocurrency firm Tether to launch a stablecoin pegged to the UAE dirham.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3% in early trading, with most of its constituents posting gains. Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, rose 0.4% and Dr Sulaiman Al Habib Medical (4013.SE), opens new tab advanced 1.4%.
Dubai's benchmark stock index (.DFMGI), opens new tab fell 0.1%. The tolls operator Salik (SALIK.DU), opens new tab dropped 1.8% and Commercial Bank of Dubai(CBD.DU), opens new tab slipped 5.5%.
Tecom Group(TECOM.DU), opens new tab, however, gained 1.8% after business park operator said it completed acquisition of new commercial and industrial assets as part of an 1.7 billion dirhams strategic plan.
The Qatari benchmark index (.QSI), opens new tab was down 0.1%, pressured by losses in finance, real estate and materials sectors with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, sliding 0.5% and Mesaieed Petrochemical (MPHC.QA), opens new tab dropping 0.5%.
Stock markets in the Gulf were mixed in early trading on Thursday after the minutes from the most recent meeting of the U.S Federal Reserve cemented expectations for a September rate cut.
The Fed's minutes showed policymakers in the U.S. were ready to start cutting interest rates as soon as September.
Interest-rate futures have fully priced in a 25-basis-point U.S. rate cut next month, with a one-in-three chance of a 50-bp cut. FEDWATCH
The U.S central bank's Chair Jerome Powell's impending speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
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 Abu Dhabi benchmark index (.FTFADGI), opens new tab edged up 0.1%, with Multiply Group (MULTIPLY.AD), opens new tab rising 3.7% and ADNOC Gas (ADNOCGAS.AD), opens new tab advancing 1.3%, while Phoenix Group (PHX.AD), opens new tab slipped 1.7%.
The cryptomining and blockchain conglomerate Phoenix said on Wednesday it had partnered with cryptocurrency firm Tether to launch a stablecoin pegged to the UAE dirham.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was up 0.3% in early trading, with most of its constituents posting gains. Saudi National Bank(1180.SE), opens new tab, the kingdom's largest lender, rose 0.4% and Dr Sulaiman Al Habib Medical (4013.SE), opens new tab advanced 1.4%.
Dubai's benchmark stock index (.DFMGI), opens new tab fell 0.1%. The tolls operator Salik (SALIK.DU), opens new tab dropped 1.8% and Commercial Bank of Dubai(CBD.DU), opens new tab slipped 5.5%.
Tecom Group(TECOM.DU), opens new tab, however, gained 1.8% after business park operator said it completed acquisition of new commercial and industrial assets as part of an 1.7 billion dirhams strategic plan.
The Qatari benchmark index (.QSI), opens new tab was down 0.1%, pressured by losses in finance, real estate and materials sectors with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, sliding 0.5% and Mesaieed Petrochemical (MPHC.QA), opens new tab dropping 0.5%.
Wednesday, 21 August 2024
#Saudi's Arabian Mills to sell 30% stake in IPO
Saudi's Arabian Mills to sell 30% stake in IPO
Arabian Mills for Food Products Company (Arabian Mills) intends to sell 30% of the company’s capital, or 15.39 million shares, through an initial public offering on the Saudi Exchange's (Tadawul) main market.
The shares being sold are owned by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company – Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).
The IPO bookbuilding process will run from September 1 to 15, with the final price announcement on September 11.
The retail IPO will run from September 18 to 19.
Following the completion of the offering, the current shareholders shall collectively own 70% of the company’s share capital.
The final IPO price will be determined at the end of the book-building period.
The company has appointed HSBC Saudi Arabia as financial advisor, global coordinator, bookrunner, underwriter, and lead manager.
Alrajhi Bank, Saudi Awwal Bank and Banque Saudi Fransi have been appointed as receiving agents for retail investors.
The Riyadh-based company has consistently grown its market share in both volume and value across both its flour and feed products. It has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes.
Arabian Mills is the second largest in terms of market share in the Saudi flour market, with 28.4% and 25.3% in terms of volume and value, respectively, in 2023.
The company is a leader in the bran segment, with a market share of 32.6% last year.
Arabian Mills for Food Products Company (Arabian Mills) intends to sell 30% of the company’s capital, or 15.39 million shares, through an initial public offering on the Saudi Exchange's (Tadawul) main market.
The shares being sold are owned by Abdulaziz Al-Ajlan Sons for Trading and Real Estate Investment Company – Ajlan & Bros, Sulaiman Abdulaziz Al-Rajhi International Company, and the National Agricultural Development Company (NADEC).
The IPO bookbuilding process will run from September 1 to 15, with the final price announcement on September 11.
The retail IPO will run from September 18 to 19.
Following the completion of the offering, the current shareholders shall collectively own 70% of the company’s share capital.
The final IPO price will be determined at the end of the book-building period.
The company has appointed HSBC Saudi Arabia as financial advisor, global coordinator, bookrunner, underwriter, and lead manager.
Alrajhi Bank, Saudi Awwal Bank and Banque Saudi Fransi have been appointed as receiving agents for retail investors.
The Riyadh-based company has consistently grown its market share in both volume and value across both its flour and feed products. It has a daily flour production capacity of 4,920 tonnes and a daily feed milling capacity of 600 tonnes.
Arabian Mills is the second largest in terms of market share in the Saudi flour market, with 28.4% and 25.3% in terms of volume and value, respectively, in 2023.
The company is a leader in the bran segment, with a market share of 32.6% last year.
Most stock markets in Gulf gain ahead of US job data, Fed minutes | Reuters
Most stock markets in Gulf gain ahead of US job data, Fed minutes | Reuters
Most stock markets in the Gulf ended higher on Wednesday as investors awaited U.S. economic data and speeches from policymakers that are expected to make the case for rate cuts.
Preliminary revisions to U.S. labour data are due later in the day and a large downward revision is expected, which would support cutting interest rates. U.S. and global purchasing managers' index surveys are due on Thursday.
Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
Interest-rate futures have priced in a 25 basis point U.S. rate cut next month, with a one-third chance of a 50 bp reduction. Almost 100 bps in cuts are priced in for this year, and another 100 bps next year. FEDWATCH
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 gained 0.7%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab advancing 4.9% and Al Rajhi Bank (1120.SE), opens new tab closing 3% higher.
On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab retreated 1.6%.
Dubai's main share index (.DFMGI), opens new tab finished 0.9% higher, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 3.9% and sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab up 2.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, hit by a 1.8% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - steadied, with benchmark Brent holding above $77 a barrel, after steady selloffs driven by expectations of reduced Chinese demand and diminishing concerns of the Middle East conflict disrupting supply.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed flat.
Most stock markets in the Gulf ended higher on Wednesday as investors awaited U.S. economic data and speeches from policymakers that are expected to make the case for rate cuts.
Preliminary revisions to U.S. labour data are due later in the day and a large downward revision is expected, which would support cutting interest rates. U.S. and global purchasing managers' index surveys are due on Thursday.
Federal Reserve Chair Jerome Powell's speech at the Jackson Hole economic symposium on Friday will be parsed for any hints on the likely size of a rate cut next month.
Interest-rate futures have priced in a 25 basis point U.S. rate cut next month, with a one-third chance of a 50 bp reduction. Almost 100 bps in cuts are priced in for this year, and another 100 bps next year. FEDWATCH
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 gained 0.7%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab advancing 4.9% and Al Rajhi Bank (1120.SE), opens new tab closing 3% higher.
On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab retreated 1.6%.
Dubai's main share index (.DFMGI), opens new tab finished 0.9% higher, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 3.9% and sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab up 2.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, hit by a 1.8% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - steadied, with benchmark Brent holding above $77 a barrel, after steady selloffs driven by expectations of reduced Chinese demand and diminishing concerns of the Middle East conflict disrupting supply.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed flat.