Saudi: Fourth Milling’s IPO registers $27.25bln order book; final offer price unveiled
Fourth Milling Company has completed the institutional bookbuilding process, setting the final offer price for its initial public offering (IPO) on the Saudi Exchange (Tadawul) at SAR 5.30 per share.
The IPO implied a market cap of SAR 2.86 billion ($763.20 million) at listing after the price range was set between SAR 5 and SAR 5.30.
The institutional bookbuilding process generated an order book of around SAR 102.20 billion ($27.26 billion) and was 119 oversubscribed. Meanwhile, the total offering size hit SAR 858.6 million ($228.96 million)
Fourth Milling plans to list 162 million offer shares, representing 30% of the company’s total issued share capital.
Following the transaction, the current shareholder, Gulf Milling Industrial Company will own 70% of the Company’s share capital.
Khalid Al Maktary, CEO of Fourth Milling, said: “This exceptional demand, will pave the way for a successful IPO and deliver another step on MC4’s growth journey. Our commitment to quality, innovation and sustainable growth positions us for continued success.”
Riyad Capital has been appointed as the financial advisor, lead manager, bookrunner, and underwriter for the IPO. Riyad Bank and Arab National Bank (ANB) have been appointed as receiving agents.
Monday, 30 September 2024
#SaudiArabia expects 2024 deficit to widen to 3% of GDP | Reuters
Saudi Arabia expects 2024 deficit to widen to 3% of GDP | Reuters
Saudi Arabia estimates its 2024 fiscal deficit will widen to almost 3% of GDP, according to a government statement on Monday, as it increases spending to boost growth and meet the objectives of its Vision 2030 economic transformation plan.
The kingdom expects to post a fiscal deficit of 118 billion riyals ($32 billion) this year, equal to 2.9% of GDP, a preliminary budget statement showed, wider than the 79 billion riyals projected in the 2024 budget statement in December.
Despite lower oil prices and voluntary oil production cuts, Saudi Arabia, the world's top oil exporter, has continued to increase spending. It expects to post a deficit of 2.3% of GDP in 2025.
"We have more revenues than what was expected...the spending is where the increase happened," said Naif al-Ghaith, Riyad Bank's chief economist.
Saudi Arabia is in the midst of a massive economic overhaul known as Vision 2030 aimed at ending its reliance on oil which requires hundreds of billions to develop new economic sectors and more sustainable revenue streams.
The Arab world's biggest economy needs oil prices at almost $100 barrel to balance its budget, the International Monetary Fund (IMF) estimates.
On Monday, the government forecast real GDP to return to growth of 0.8% this year from last year's contraction. GDP growth is projected to sharply accelerate to 4.6% in 2025, in part due to increased oil production.
Total revenue is expected to be 1.24 trillion riyals and government spending is estimated at 1.36 trillion riyals in 2024. In December, revenue this year was budgeted at 1.17 trillion riyals and spending at 1.25 trillion riyals.
The government projects revenues at 1.18 trillion riyals and expenditures at 1.29 trillion riyals in 2025, with spending likely to equate to about 30% of GDP over the next three years.
In Monday's statement, the government estimated growth in non-oil activities of 3.7% in 2024 from an average of almost 6% over the last three years.
Saudi Arabia estimates its 2024 fiscal deficit will widen to almost 3% of GDP, according to a government statement on Monday, as it increases spending to boost growth and meet the objectives of its Vision 2030 economic transformation plan.
The kingdom expects to post a fiscal deficit of 118 billion riyals ($32 billion) this year, equal to 2.9% of GDP, a preliminary budget statement showed, wider than the 79 billion riyals projected in the 2024 budget statement in December.
Despite lower oil prices and voluntary oil production cuts, Saudi Arabia, the world's top oil exporter, has continued to increase spending. It expects to post a deficit of 2.3% of GDP in 2025.
"We have more revenues than what was expected...the spending is where the increase happened," said Naif al-Ghaith, Riyad Bank's chief economist.
Saudi Arabia is in the midst of a massive economic overhaul known as Vision 2030 aimed at ending its reliance on oil which requires hundreds of billions to develop new economic sectors and more sustainable revenue streams.
The Arab world's biggest economy needs oil prices at almost $100 barrel to balance its budget, the International Monetary Fund (IMF) estimates.
On Monday, the government forecast real GDP to return to growth of 0.8% this year from last year's contraction. GDP growth is projected to sharply accelerate to 4.6% in 2025, in part due to increased oil production.
Total revenue is expected to be 1.24 trillion riyals and government spending is estimated at 1.36 trillion riyals in 2024. In December, revenue this year was budgeted at 1.17 trillion riyals and spending at 1.25 trillion riyals.
The government projects revenues at 1.18 trillion riyals and expenditures at 1.29 trillion riyals in 2025, with spending likely to equate to about 30% of GDP over the next three years.
In Monday's statement, the government estimated growth in non-oil activities of 3.7% in 2024 from an average of almost 6% over the last three years.
#UAE's Adnoc nears $13 billion deal to buy Germany's Covestro, WSJ reports | Reuters
UAE's Adnoc nears $13 billion deal to buy Germany's Covestro, WSJ reports | Reuters
United Arab Emirates's Abu Dhabi National Oil Co is likely to announce a $13 billion-plus deal for Germany's Covestro (1COV.DE), opens new tab as soon as this week unless an unexpected snag emerges, the Wall Street Journal reported on Monday, citing people familiar with the matter.
United Arab Emirates's Abu Dhabi National Oil Co is likely to announce a $13 billion-plus deal for Germany's Covestro (1COV.DE), opens new tab as soon as this week unless an unexpected snag emerges, the Wall Street Journal reported on Monday, citing people familiar with the matter.
Most Gulf markets end lower on rising tensions in the region | Reuters
Most Gulf markets end lower on rising tensions in the region | Reuters
Most stock markets in the Gulf ended lower on Monday as geopolitical tensions in the region simmered, with the Saudi index extending losses from the previous session when it snapped a 7-day winning streak
It has not ruled out a ground invasion and its troops have been training for it.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 0.3% and Al Rajhi Bank (1120.SE), opens new tab was down 1%.
The kingdom drew net inflows of 11.7 billion riyals ($3.12 billion) in foreign direct investment (FDI) in the second quarter, down 7.5% from a year earlier, government data showed on Monday.
Dubai's main share index (.DFMGI), opens new tab finished 0.4% lower, hit by a 2.2% slide in top lender Emirates NBD (ENBD.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab declined 0.5%.
The Qatari benchmark (.QSI), opens new tab gained 0.3%, helped by a 1.7% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - declined and were on track to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears that Israeli strikes in Lebanon and Yemen could escalate conflict in the Middle East.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with Talaat Mostafa Holding (TMGH.CA), opens new tab advancing 2.6%.
Hezbollah fighters are primed to confront any Israeli ground invasion of Lebanon, the group's deputy leader Naim Qassem said on Monday in his first public speech since Israeli airstrikes killed its veteran chief Hassan Nasrallah last week.
Israel says it will do whatever it takes to return its citizens to evacuated communities on its northern border safely.
Israel says it will do whatever it takes to return its citizens to evacuated communities on its northern border safely.
It has not ruled out a ground invasion and its troops have been training for it.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.4%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab losing 0.3% and Al Rajhi Bank (1120.SE), opens new tab was down 1%.
The kingdom drew net inflows of 11.7 billion riyals ($3.12 billion) in foreign direct investment (FDI) in the second quarter, down 7.5% from a year earlier, government data showed on Monday.
Dubai's main share index (.DFMGI), opens new tab finished 0.4% lower, hit by a 2.2% slide in top lender Emirates NBD (ENBD.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab declined 0.5%.
The Qatari benchmark (.QSI), opens new tab gained 0.3%, helped by a 1.7% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - declined and were on track to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears that Israeli strikes in Lebanon and Yemen could escalate conflict in the Middle East.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.4%, with Talaat Mostafa Holding (TMGH.CA), opens new tab advancing 2.6%.
#AbuDhabi's ADNH to list 40% stake of catering unit on local bourse | Reuters
Abu Dhabi's ADNH to list 40% stake of catering unit on local bourse | Reuters
Abu Dhabi National Hotels (ADNH) (ADNH.AD), opens new tab is selling a 40% stake in its catering business through an initial public offering on the local bourse, the business said on Monday, as it looks to tap into the region's economic growth.
ADNH Catering, which provides food, cleaning, support services and manpower supply, operates in the United Arab Emirates (UAE) with over 18,000 staff and via a joint venture in Saudi Arabia, where it employs almost 1,000 people.
The Gulf has seen a flurry of IPOs in recent years as governments in countries such as Saudi Arabia and the UAE try to diversify their economies with ambitious reform plans that include deepening capital markets to attract investment.
Abu Dhabi, which generates most of the Gulf state's oil wealth, has attracted a slew of financial firms in recent years and has been investing heavily in tourism, with a target of 39.3 million tourists by 2030 from nearly 24 million in 2023. It also plans to boost hotel room availability to 52,000 by 2030 from 34,000 last year.
"I think it's part of our long-term strategy... and clearly that tourism and travel aspect is high on the agenda," CEO Clive Cowley said when asked about Abu Dhabi's growth efforts to become a tourism and travel hub.
However, Cowley told Reuters the company was planning to also expand in other segments like healthcare and education, adding Saudi Arabia was a "very exciting market" and growth opportunity.
Roadshows with investors will take place next week, he said.
ADNH Catering said in a statement the offer price for the IPO will be determined through a book-building process running from Oct. 7 to 15, with a listing expected as early as next month.
All the 900 million shares on offer will be sold by parent company Abu Dhabi National Hotels, which owns hotels such as the Ritz Carlton and Park Hyatt in Abu Dhabi, as well as the JW Marriott and the Sofitel in Dubai's Marina and Jumeirah Beach, respectively.
Abu Dhabi National Hotels (ADNH) (ADNH.AD), opens new tab is selling a 40% stake in its catering business through an initial public offering on the local bourse, the business said on Monday, as it looks to tap into the region's economic growth.
ADNH Catering, which provides food, cleaning, support services and manpower supply, operates in the United Arab Emirates (UAE) with over 18,000 staff and via a joint venture in Saudi Arabia, where it employs almost 1,000 people.
The Gulf has seen a flurry of IPOs in recent years as governments in countries such as Saudi Arabia and the UAE try to diversify their economies with ambitious reform plans that include deepening capital markets to attract investment.
Abu Dhabi, which generates most of the Gulf state's oil wealth, has attracted a slew of financial firms in recent years and has been investing heavily in tourism, with a target of 39.3 million tourists by 2030 from nearly 24 million in 2023. It also plans to boost hotel room availability to 52,000 by 2030 from 34,000 last year.
"I think it's part of our long-term strategy... and clearly that tourism and travel aspect is high on the agenda," CEO Clive Cowley said when asked about Abu Dhabi's growth efforts to become a tourism and travel hub.
However, Cowley told Reuters the company was planning to also expand in other segments like healthcare and education, adding Saudi Arabia was a "very exciting market" and growth opportunity.
Roadshows with investors will take place next week, he said.
ADNH Catering said in a statement the offer price for the IPO will be determined through a book-building process running from Oct. 7 to 15, with a listing expected as early as next month.
All the 900 million shares on offer will be sold by parent company Abu Dhabi National Hotels, which owns hotels such as the Ritz Carlton and Park Hyatt in Abu Dhabi, as well as the JW Marriott and the Sofitel in Dubai's Marina and Jumeirah Beach, respectively.
Oil prices set to fall for third month despite Middle East conflict | Reuters
Oil prices set to fall for third month despite Middle East conflict | Reuters
Oil prices were steady on Monday and on track to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears that Israeli strikes in Lebanon and Yemen could escalate conflict in the Middle East.
Brent crude futures for November delivery, expiring on Monday, lost 10 cents to $71.88 a barrel as of 0933 GMT. The more active December contract rose 6 cents to $71.60. U.S. West Texas Intermediate (WTI) futures lost 10 cents to $68.08 a barrel.
Both benchmarks had earlier gained more than $1.
Brent was on track to lose almost 9% month-on-month, which would be its biggest decline since November 2022. WTI was set to decline more than 7% since the end of August.
On Monday prices had been supported by the possibility that Iran, a key producer and member of the Organization of the Petroleum Exporting Countries, may be directly drawn into a widening Middle East conflict.
Since last week Israel has escalated attacks, conducting strikes which have killed Hezbollah and Hamas leaders in Lebanon and hit Houthi targets in Yemen. The three groups are backed by Iran.
"We suspect that some oil market participants will look past this escalation given that there still has not been a major physical supply disruption and Iran has not demonstrated any appetite to enter this nearly year-long conflict," said Helima Croft of RBC Capital Markets.
Oil prices also had a muted response to Beijing's announcement last week of fiscal stimulus measures in the world's second-biggest economy and top oil importer.
Traders question whether the measures would be enough to boost China's weaker-than-expected demand so far this year.
Data on Monday was not encouraging for demand, showing China's manufacturing activity shrank for a fifth straight month and the services sector slowed sharply in September.
Oil prices were steady on Monday and on track to fall for the third month in a row as a strong supply outlook and questions around demand outweighed fears that Israeli strikes in Lebanon and Yemen could escalate conflict in the Middle East.
Brent crude futures for November delivery, expiring on Monday, lost 10 cents to $71.88 a barrel as of 0933 GMT. The more active December contract rose 6 cents to $71.60. U.S. West Texas Intermediate (WTI) futures lost 10 cents to $68.08 a barrel.
Both benchmarks had earlier gained more than $1.
Brent was on track to lose almost 9% month-on-month, which would be its biggest decline since November 2022. WTI was set to decline more than 7% since the end of August.
On Monday prices had been supported by the possibility that Iran, a key producer and member of the Organization of the Petroleum Exporting Countries, may be directly drawn into a widening Middle East conflict.
Since last week Israel has escalated attacks, conducting strikes which have killed Hezbollah and Hamas leaders in Lebanon and hit Houthi targets in Yemen. The three groups are backed by Iran.
"We suspect that some oil market participants will look past this escalation given that there still has not been a major physical supply disruption and Iran has not demonstrated any appetite to enter this nearly year-long conflict," said Helima Croft of RBC Capital Markets.
Oil prices also had a muted response to Beijing's announcement last week of fiscal stimulus measures in the world's second-biggest economy and top oil importer.
Traders question whether the measures would be enough to boost China's weaker-than-expected demand so far this year.
Data on Monday was not encouraging for demand, showing China's manufacturing activity shrank for a fifth straight month and the services sector slowed sharply in September.
#SaudiArabia FDI stalls at $5.2 bln in second quarter despite reform drive | Reuters
Saudi Arabian FDI stalls at $5.2 bln in second quarter despite reform drive | Reuters
Foreign direct investment (FDI) into Saudi Arabia stalled in the second quarter at around the same level as a year ago, government data showed on Monday, highlighting the kingdom's need for further reforms to meet its ambitious targets.
Saudi Arabia drew 19.44 billion riyals ($5.18 billion) in FDI, which was little changed from 19.43 billion riyals in Q2 last year, the General Authority of Statistics data showed. Overall, Saudi Arabia recorded net FDI inflows of 11.7 billion riyals in the second quarter, down 7.5% from a year earlier.
Foreign investment is a key element of Saudi Arabia's Vision 2030 plan, spearheaded by Crown Prince Mohammed bin Salman, to boost non-oil growth, expand the private sector and create jobs.
The kingdom has set a goal of attracting $100 billion in FDI by 2030. But halfway through Vision 2030, FDI numbers indicate that it could struggle to meet that target.
Although FDI volumes in Q2 rose 14.5% from the first quarter of 2024, total inflows in the first half were similar to the first six months of last year at 36.41 billion riyals, versus 36.35 billion riyals.
Saudi Arabia last year adopted a new methodology for calculating and publishing FDI data, which led to a significant upwards revision in total figures for 2022.
And the government has said it would update existing investment laws, opens new tab to boost transparency and promote equal treatment of local and foreign investors.
Despite speeding up government efforts, FDI inflows still lag regional peers such as the United Arab Emirates.
"Reforms to enhance Saudi Arabia's attractiveness for foreign investment are progressing," the International Monetary Fund said in a recent country report.
This recognised the record high number of foreign investment licenses and increasing licenses for firms to establish regional headquarters in the country.
"Enhancing private sector development will require providing more clarity to investors and removing remaining bottlenecks identified, including those in the regulatory and business environment," the IMF said.
Foreign direct investment (FDI) into Saudi Arabia stalled in the second quarter at around the same level as a year ago, government data showed on Monday, highlighting the kingdom's need for further reforms to meet its ambitious targets.
Saudi Arabia drew 19.44 billion riyals ($5.18 billion) in FDI, which was little changed from 19.43 billion riyals in Q2 last year, the General Authority of Statistics data showed. Overall, Saudi Arabia recorded net FDI inflows of 11.7 billion riyals in the second quarter, down 7.5% from a year earlier.
Foreign investment is a key element of Saudi Arabia's Vision 2030 plan, spearheaded by Crown Prince Mohammed bin Salman, to boost non-oil growth, expand the private sector and create jobs.
The kingdom has set a goal of attracting $100 billion in FDI by 2030. But halfway through Vision 2030, FDI numbers indicate that it could struggle to meet that target.
Although FDI volumes in Q2 rose 14.5% from the first quarter of 2024, total inflows in the first half were similar to the first six months of last year at 36.41 billion riyals, versus 36.35 billion riyals.
Saudi Arabia last year adopted a new methodology for calculating and publishing FDI data, which led to a significant upwards revision in total figures for 2022.
And the government has said it would update existing investment laws, opens new tab to boost transparency and promote equal treatment of local and foreign investors.
Despite speeding up government efforts, FDI inflows still lag regional peers such as the United Arab Emirates.
"Reforms to enhance Saudi Arabia's attractiveness for foreign investment are progressing," the International Monetary Fund said in a recent country report.
This recognised the record high number of foreign investment licenses and increasing licenses for firms to establish regional headquarters in the country.
"Enhancing private sector development will require providing more clarity to investors and removing remaining bottlenecks identified, including those in the regulatory and business environment," the IMF said.
Sunday, 29 September 2024
Bourses in Gulf end mixed on geopolitical tensions | Reuters
Bourses in Gulf end mixed on geopolitical tensions | Reuters
Stock markets in the Gulf put in a mixed performance on Sunday as geopolitical tensions in the region escalated, with the Saudi index snapping a seven-day winning streak.
Israel struck more targets in Lebanon on Sunday, pressing Hezbollah with new attacks after killing the Iran-backed group's leader, Sayyed Hassan Nasrallah, and a string of its other top commanders.
Concerns have grown about the prospect of a wider conflict. Israel has mobilised reserve brigades and says it is ready for all options, including a ground operation in Lebanon.
Hezbollah has said it will cease fire only when Israel's offensive in Gaza ends.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.8%, snapping seven sessions of gains and weighed down by a 1.3% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
Among other losers, oil behemoth Saudi Aramco (2222.SE), opens new tab retreated 1.3%.
Oil prices - a catalyst for the Gulf's financial markets - fell last week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will go ahead with plans to increase production by 180,000 barrels per day each month starting from December, Reuters reported on Friday, citing two OPEC+ sources.
In Qatar, the index (.QSI), opens new tab ended the session unchanged.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, with Talaat Mostafa Holding (TMGH.CA), opens new tab up 1.6%.
President Abdel Fattah al-Sisi told Lebanese Prime Minister Najib Mikati that Egypt rejects any violation of Lebanon's sovereignty, a presidency statement said on Saturday.
Stock markets in the Gulf put in a mixed performance on Sunday as geopolitical tensions in the region escalated, with the Saudi index snapping a seven-day winning streak.
Israel struck more targets in Lebanon on Sunday, pressing Hezbollah with new attacks after killing the Iran-backed group's leader, Sayyed Hassan Nasrallah, and a string of its other top commanders.
Concerns have grown about the prospect of a wider conflict. Israel has mobilised reserve brigades and says it is ready for all options, including a ground operation in Lebanon.
Hezbollah has said it will cease fire only when Israel's offensive in Gaza ends.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.8%, snapping seven sessions of gains and weighed down by a 1.3% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
Among other losers, oil behemoth Saudi Aramco (2222.SE), opens new tab retreated 1.3%.
Oil prices - a catalyst for the Gulf's financial markets - fell last week as investors weighed expectations for higher global supply against fresh stimulus from top crude importer China.
Meanwhile, the Organization of the Petroleum Exporting Countries and its allies, together known as OPEC+, will go ahead with plans to increase production by 180,000 barrels per day each month starting from December, Reuters reported on Friday, citing two OPEC+ sources.
In Qatar, the index (.QSI), opens new tab ended the session unchanged.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, with Talaat Mostafa Holding (TMGH.CA), opens new tab up 1.6%.
President Abdel Fattah al-Sisi told Lebanese Prime Minister Najib Mikati that Egypt rejects any violation of Lebanon's sovereignty, a presidency statement said on Saturday.
Friday, 27 September 2024
Paul Taubman’s PJT Eyes #SaudiArabia Growth After deNovo Deal - Bloomberg
Paul Taubman’s PJT Eyes Saudi Arabia Growth After deNovo Deal - Bloomberg
Wall Street advisory firm PJT Partners plans to increase its headcount in Saudi Arabia following the acquisition of Dubai-based deNovo Partners, founder Paul Taubman told Bloomberg TV in an interview.
DeNovo earlier this year secured a license to operate in the kingdom, joining prominent boutique firms including Moelis & Co. and Rothschild & Co. to formally enter a market that increasingly plays a major role in global finance.
The combined PJT-deNovo entity would “absolutely” move staff to Riyadh, Taubman said. “That will follow that license and we will, in a very patient way, continue to build out our capabilities.”
Saudi Arabia has increasingly become a draw for Wall Street’s top banks looking to advise the kingdom’s sovereign wealth fund on its overseas acquisitions or one of many domestic companies considering a share sale on the local bourse.
Lazard Inc. recently received a so-called regional headquarters license from the Saudi Ministry of Investment, the latest Wall Street firm to comply with Saudi Arabia’s rules for foreign firms to set up their Middle Eastern base in the kingdom, Bloomberg reported earlier this month.
PJT last week announced it was taking over deNovo, a deal that reunited ex-Morgan Stanley dealmaker Taubman with former colleague May Nasrallah who set up her own boutique in 2010.
Taubman said the initial focus, before they move ahead with the Saudi expansion, was to integrate the two businesses. PJT and deNovo had previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
Nasrallah said the transaction meant there was a “a lot more engine behind” their efforts in targeting clients including wealth funds, multinationals, regional government organizations and corporates looking to grow outside the Middle East.
“As their ambitions grow and globalize, we globalize with them,” she said.
Wall Street advisory firm PJT Partners plans to increase its headcount in Saudi Arabia following the acquisition of Dubai-based deNovo Partners, founder Paul Taubman told Bloomberg TV in an interview.
DeNovo earlier this year secured a license to operate in the kingdom, joining prominent boutique firms including Moelis & Co. and Rothschild & Co. to formally enter a market that increasingly plays a major role in global finance.
The combined PJT-deNovo entity would “absolutely” move staff to Riyadh, Taubman said. “That will follow that license and we will, in a very patient way, continue to build out our capabilities.”
Saudi Arabia has increasingly become a draw for Wall Street’s top banks looking to advise the kingdom’s sovereign wealth fund on its overseas acquisitions or one of many domestic companies considering a share sale on the local bourse.
Lazard Inc. recently received a so-called regional headquarters license from the Saudi Ministry of Investment, the latest Wall Street firm to comply with Saudi Arabia’s rules for foreign firms to set up their Middle Eastern base in the kingdom, Bloomberg reported earlier this month.
PJT last week announced it was taking over deNovo, a deal that reunited ex-Morgan Stanley dealmaker Taubman with former colleague May Nasrallah who set up her own boutique in 2010.
Taubman said the initial focus, before they move ahead with the Saudi expansion, was to integrate the two businesses. PJT and deNovo had previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
Nasrallah said the transaction meant there was a “a lot more engine behind” their efforts in targeting clients including wealth funds, multinationals, regional government organizations and corporates looking to grow outside the Middle East.
“As their ambitions grow and globalize, we globalize with them,” she said.
#Dubai Stocks Confront Regional Risks After Rally to 10-Year High - Bloomberg
Dubai Stocks Confront Regional Risks After Rally to 10-Year High - Bloomberg
A rally that’s propelled Dubai stocks into the ranks of the best global performers looks set to cool as geopolitical risks increase and bargain valuations become harder to find.
The Dubai Financial Market General Index has advanced 12% this quarter to the highest since 2014. Its gains are among the 10 biggest across more than 90 equity benchmarks worldwide tracked by Bloomberg.
Stocks tied to the strength of Dubai’s economy and population growth — like Emirates NBD Bank PJSC, toll gate operator Salik Co PJSC and utilities provider Dubai Electricity & Water Authority PJSC — have led the advance.
Positive earnings news and a lower sensitivity to changes in oil prices than Gulf peers have helped drive the surge in Dubai. Its equity market benefits more from tourism and demand for real estate than neighbors like Abu Dhabi and Riyadh. But after the strong run in stocks, investors may turn wary about testing whether valuations can rise further.
“Increasing property prices and tourist arrivals, as well as physical distance from the region’s conflict hot spots have driven Dubai equities higher,” said Hasnain Malik, emerging market equity strategist at Tellimer in Dubai. Still, Dubai stocks may now be “more sensitive to any setbacks than further good news.”
Although the macro backdrop remains healthy, “risk reward in stocks is clearly no longer so attractive,” given the now more demanding share-price valuations, Malik said.
HSBC Holdings Plc strategists are among those advising greater caution toward the region’s equities. John Lomax and his team cut their overweight positions on Saudi Arabia and the United Arab Emirates to neutral.
“We love the structural story, but a combination of heightened geopolitical risk and low oil prices is creating near-term headwinds,” they wrote in a note.
Stocks in Dubai and neighboring exchanges have generally rallied in the past three months, even as concerns over the threat of a broader Middle Eastern conflict grew.
The market in Abu Dhabi, the UAE’s capital, has advanced 5% — the best quarter since March 2022. In Saudi Arabia, the Tadawul All Share Index has climbed about 6% in the best quarter of this year so far. Dubai has outperformed its Gulf peers since the start of July.
Divye Arora, the head of portfolio management at Daman Investment Psc in Dubai, doesn’t view valuations as too stretched yet. “With bonds yields going down, major Dubai names continue to offer attractive dividend yields of more than 5% in 2025,” he said.
The index trades at 8.6 times forward earnings, after bouncing off 2020 lows, but still below the average of 9.2 times over the past decade.
Arora sees further upside in the likes of Salik, Dubai Taxi Co., Tecom Group PJSC, Emaar Properties PJSC, Emaar Development PJSC and Emirates Central Cooling Systems Corporation, he said.
A rally that’s propelled Dubai stocks into the ranks of the best global performers looks set to cool as geopolitical risks increase and bargain valuations become harder to find.
The Dubai Financial Market General Index has advanced 12% this quarter to the highest since 2014. Its gains are among the 10 biggest across more than 90 equity benchmarks worldwide tracked by Bloomberg.
Stocks tied to the strength of Dubai’s economy and population growth — like Emirates NBD Bank PJSC, toll gate operator Salik Co PJSC and utilities provider Dubai Electricity & Water Authority PJSC — have led the advance.
Positive earnings news and a lower sensitivity to changes in oil prices than Gulf peers have helped drive the surge in Dubai. Its equity market benefits more from tourism and demand for real estate than neighbors like Abu Dhabi and Riyadh. But after the strong run in stocks, investors may turn wary about testing whether valuations can rise further.
“Increasing property prices and tourist arrivals, as well as physical distance from the region’s conflict hot spots have driven Dubai equities higher,” said Hasnain Malik, emerging market equity strategist at Tellimer in Dubai. Still, Dubai stocks may now be “more sensitive to any setbacks than further good news.”
Although the macro backdrop remains healthy, “risk reward in stocks is clearly no longer so attractive,” given the now more demanding share-price valuations, Malik said.
HSBC Holdings Plc strategists are among those advising greater caution toward the region’s equities. John Lomax and his team cut their overweight positions on Saudi Arabia and the United Arab Emirates to neutral.
“We love the structural story, but a combination of heightened geopolitical risk and low oil prices is creating near-term headwinds,” they wrote in a note.
Stocks in Dubai and neighboring exchanges have generally rallied in the past three months, even as concerns over the threat of a broader Middle Eastern conflict grew.
The market in Abu Dhabi, the UAE’s capital, has advanced 5% — the best quarter since March 2022. In Saudi Arabia, the Tadawul All Share Index has climbed about 6% in the best quarter of this year so far. Dubai has outperformed its Gulf peers since the start of July.
Divye Arora, the head of portfolio management at Daman Investment Psc in Dubai, doesn’t view valuations as too stretched yet. “With bonds yields going down, major Dubai names continue to offer attractive dividend yields of more than 5% in 2025,” he said.
The index trades at 8.6 times forward earnings, after bouncing off 2020 lows, but still below the average of 9.2 times over the past decade.
Arora sees further upside in the likes of Salik, Dubai Taxi Co., Tecom Group PJSC, Emaar Properties PJSC, Emaar Development PJSC and Emirates Central Cooling Systems Corporation, he said.
#UAE's Masdar eyes Iberian renewables champion after recent deals | Reuters
UAE's Masdar eyes Iberian renewables champion after recent deals | Reuters
United Arab Emirates' renewable energy company Masdar will seek to further grow its presence in the Iberian market after clinching two deals in the region in recent months, an executive in the company told Reuters.
Masdar clinched this week its second large renewables deal in Spain in two months, buying Saeta Yield from Canada's Brookfield (BAM.TO), opens new tab in a $1.4 billion deal.
In July, it agreed to take a minority stake in a 2-gigawatt solar portfolio controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab.
"The fact that we've done two deals in a matter of a couple of months tells you that we are very keen on the Spanish market," M&A chief Faisal Tahir Bhatti said.
"We're well on our way to building up our own champion."
Saeta's 745 megawatts of mostly wind assets, 1.6 GW of projects under development in Spain and Portugal, and 90-strong staff offer a strong platform to grow in Iberia and beyond, he said.
With a 100-GW renewable capacity target by 2030, Masdar has so far invested in roughly 20 GW of renewable projects valued $30 billion around the world, excluding the recent deals.
Masdar and other deep-pocketed investors from the Gulf and other regions have intensified dealmaking in a sector hit by high interest rates and rising debt costs, with energy giants like Iberdrola (IBE.MC), opens new tab and Enel happy to sell minority stakes in wind and solar parks to maximise returns and curb debt.
Masdar - which is controlled by UAE's utility TAQA, oil company ADNOC and the sovereign wealth fund Mubadala Investment Company - will now focus on developing its Spanish platforms.
Masdar is in talks with Endesa to develop up to 5 GW of capacity tied to the July deal, he said, while the Saeta pipeline should be connected to the grid by 2030.
Masdar will look at potential new opportunities with current partners, such as Endesa and Iberdrola, but is also open to new partnerships, under the right conditions and with a "very selective" approach.
United Arab Emirates' renewable energy company Masdar will seek to further grow its presence in the Iberian market after clinching two deals in the region in recent months, an executive in the company told Reuters.
Masdar clinched this week its second large renewables deal in Spain in two months, buying Saeta Yield from Canada's Brookfield (BAM.TO), opens new tab in a $1.4 billion deal.
In July, it agreed to take a minority stake in a 2-gigawatt solar portfolio controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab.
"The fact that we've done two deals in a matter of a couple of months tells you that we are very keen on the Spanish market," M&A chief Faisal Tahir Bhatti said.
"We're well on our way to building up our own champion."
Saeta's 745 megawatts of mostly wind assets, 1.6 GW of projects under development in Spain and Portugal, and 90-strong staff offer a strong platform to grow in Iberia and beyond, he said.
With a 100-GW renewable capacity target by 2030, Masdar has so far invested in roughly 20 GW of renewable projects valued $30 billion around the world, excluding the recent deals.
Masdar and other deep-pocketed investors from the Gulf and other regions have intensified dealmaking in a sector hit by high interest rates and rising debt costs, with energy giants like Iberdrola (IBE.MC), opens new tab and Enel happy to sell minority stakes in wind and solar parks to maximise returns and curb debt.
Masdar - which is controlled by UAE's utility TAQA, oil company ADNOC and the sovereign wealth fund Mubadala Investment Company - will now focus on developing its Spanish platforms.
Masdar is in talks with Endesa to develop up to 5 GW of capacity tied to the July deal, he said, while the Saeta pipeline should be connected to the grid by 2030.
Masdar will look at potential new opportunities with current partners, such as Endesa and Iberdrola, but is also open to new partnerships, under the right conditions and with a "very selective" approach.
#UAE stocks end lower on weak oil, regional tensions | Reuters
UAE stocks end lower on weak oil, regional tensions | Reuters
Stock markets in the United Arab Emirates fell on Friday despite China's big stimulus steps as weak oil prices and ongoing regional geopolitical tensions continued to weigh on investor sentiment.
Oil prices, which fuel the region's growth, headed for significant weekly losses on a report that Saudi Arabia was preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output.
Brent futures edged up 0.2% to $71.74 a barrel at 1121 GMT but are down 3.7% for the week.
Abu Dhabi's index (.FTFADGI), opens new tab fell 0.5%, with its largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab losing over 1.1% and Telecoms firm e& , shedding nearly 1%.
The main share index (.DFMGI) retreated 0.1% after three consecutive sessions of gains. Dubai's largest lender, Emirates NBD Bank (ENBD.DU), opens new tab, lost nearly 0.7% while tollgate operator Salik Co (SALIK.DU), opens new tab was down nearly 1%.
Investment firm Amanat Holding (AMANT.DU), opens new tab also fell nearly 0.9% as shares traded ex-dividend.
Despite the downturn in UAE equities, the positive momentum remains healthy, and further gains are possible considering the favourable conditions, George Pavel General Manager at Capex.com Middle East said.
Stock markets in the United Arab Emirates fell on Friday despite China's big stimulus steps as weak oil prices and ongoing regional geopolitical tensions continued to weigh on investor sentiment.
Oil prices, which fuel the region's growth, headed for significant weekly losses on a report that Saudi Arabia was preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output.
Brent futures edged up 0.2% to $71.74 a barrel at 1121 GMT but are down 3.7% for the week.
Abu Dhabi's index (.FTFADGI), opens new tab fell 0.5%, with its largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab losing over 1.1% and Telecoms firm e& , shedding nearly 1%.
The main share index (.DFMGI) retreated 0.1% after three consecutive sessions of gains. Dubai's largest lender, Emirates NBD Bank (ENBD.DU), opens new tab, lost nearly 0.7% while tollgate operator Salik Co (SALIK.DU), opens new tab was down nearly 1%.
Investment firm Amanat Holding (AMANT.DU), opens new tab also fell nearly 0.9% as shares traded ex-dividend.
Despite the downturn in UAE equities, the positive momentum remains healthy, and further gains are possible considering the favourable conditions, George Pavel General Manager at Capex.com Middle East said.
Thursday, 26 September 2024
#SaudiArabia's MC4 to raise $229 mln after IPO priced at top of range | Reuters
Saudi Arabia's MC4 to raise $229 mln after IPO priced at top of range | Reuters
Saudi Arabia's Fourth Milling Company (MC4) said on Thursday it is set to raise $229 million from an initial public offering (IPO) on its local stock exchange.
MC4, which is offering 162 million shares equal to a 30% stake, said in a statement the IPO was priced at the top of its indicative range at 5.3 riyals per share, giving the company a market capitalization of 763.2 million riyals at listing.
The tranche for institutional investors was 119 times oversubscribed, MC4 said, adding that after the IPO its owner Gulf Milling Industrial will retain a 70% stake.
The firm's flotation adds to a string of listings in Saudi Arabia and the wider Gulf in recent years as countries in the region seek to deepen capital markets and attract investment.
MC4 was one of firms which were part of a wider privatisation programme under Saudi Arabia's Vision 2030 strategy aimed at diversifying the oil-dominated economy.
Modern Mills - previously known as MC3, made its market debut in March after raising $314.6 million by selling a 30% stake, while Arabian Mills, previously known as MC2, earlier this month priced its IPO at the top of the range.
Saudi Arabia's Fourth Milling Company (MC4) said on Thursday it is set to raise $229 million from an initial public offering (IPO) on its local stock exchange.
MC4, which is offering 162 million shares equal to a 30% stake, said in a statement the IPO was priced at the top of its indicative range at 5.3 riyals per share, giving the company a market capitalization of 763.2 million riyals at listing.
The tranche for institutional investors was 119 times oversubscribed, MC4 said, adding that after the IPO its owner Gulf Milling Industrial will retain a 70% stake.
MC4, which is involved in the production of flour, other wheat derivatives and animal feed products, did not provide a date for trading in its shares to start on the Saudi bourse.
The firm's flotation adds to a string of listings in Saudi Arabia and the wider Gulf in recent years as countries in the region seek to deepen capital markets and attract investment.
MC4 was one of firms which were part of a wider privatisation programme under Saudi Arabia's Vision 2030 strategy aimed at diversifying the oil-dominated economy.
Modern Mills - previously known as MC3, made its market debut in March after raising $314.6 million by selling a 30% stake, while Arabian Mills, previously known as MC2, earlier this month priced its IPO at the top of the range.
Gulf markets end mixed on China stimulus, regional tensions | Reuters
Gulf markets end mixed on China stimulus, regional tensions | Reuters
Stock markets in the Gulf ended mixed on Thursday helped by news of aggressive economic stimulus from China, while geopolitical tensions in the region weighed on sentiment.
China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target.
Driving the optimism was an official readout from a meeting of China's politburo that said the country would deploy "necessary fiscal spending" to meet this year's economic growth target of roughly 5%.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with ACWA Power Company (2082.SE), opens new tab advancing 4.8%.
On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.5%.
Oil prices - a catalyst for the Gulf's financial markets - slipped, reversing earlier gains, on a media report that Saudi Arabia, the world's top crude exporter, will give up its price target in preparation for raising output.
Dubai's main share index (.DFMGI), opens new tab advanced 0.8%, led by a 4.3% rise in Parkin Company (PARKIN.DU), opens new tab.
The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector's performance, the state news agency (WAM) reported on Wednesday.
In Abu Dhabi, the index (.FTFDGI), opens new tab closed flat.
Israel rejected proposals on Thursday for a ceasefire with Hezbollah and conducted a military exercise simulating manoeuvres in Lebanon, defying allies including the United States which had called for an immediate halt in fighting.
On Wednesday, Israel's army chief made the most explicit public comment yet on the possibility of a ground assault on Lebanon, telling troops near the border to be prepared to cross.
The Qatari benchmark (.QSI), opens new tab was up 0.4%, with Qatar National Bank (QNBK.QA), opens new tab gaining 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.1% higher.
Stock markets in the Gulf ended mixed on Thursday helped by news of aggressive economic stimulus from China, while geopolitical tensions in the region weighed on sentiment.
China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target.
Driving the optimism was an official readout from a meeting of China's politburo that said the country would deploy "necessary fiscal spending" to meet this year's economic growth target of roughly 5%.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with ACWA Power Company (2082.SE), opens new tab advancing 4.8%.
On the other hand, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.5%.
Oil prices - a catalyst for the Gulf's financial markets - slipped, reversing earlier gains, on a media report that Saudi Arabia, the world's top crude exporter, will give up its price target in preparation for raising output.
Dubai's main share index (.DFMGI), opens new tab advanced 0.8%, led by a 4.3% rise in Parkin Company (PARKIN.DU), opens new tab.
The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector's performance, the state news agency (WAM) reported on Wednesday.
In Abu Dhabi, the index (.FTFDGI), opens new tab closed flat.
Israel rejected proposals on Thursday for a ceasefire with Hezbollah and conducted a military exercise simulating manoeuvres in Lebanon, defying allies including the United States which had called for an immediate halt in fighting.
On Wednesday, Israel's army chief made the most explicit public comment yet on the possibility of a ground assault on Lebanon, telling troops near the border to be prepared to cross.
The Qatari benchmark (.QSI), opens new tab was up 0.4%, with Qatar National Bank (QNBK.QA), opens new tab gaining 0.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.1% higher.
#Dubai Hedge Funds: New Platform Seeks to Fast-Track Boom in DIFC - Bloomberg
Dubai Hedge Funds: New Platform Seeks to Fast-Track Boom in DIFC - Bloomberg
Capricorn Fund Managers Ltd. is starting a regulatory hosting platform in Dubai that seeks to help hedge funds and investment companies quickly start operations in the city’s financial hub.
The London-based firm will allow investment managers to carry out regulated activities under its license at the Dubai International Financial Centre, according to a statement.
“Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai,” said Salmaan Jaffery, chief business development officer of the DIFC.
Regulatory hosting platforms offer services that enable firms to cut costs. They also help with many of the administrative aspects of business, leaving investment managers free to focus on making money.
Dubai has emerged as a magnet for hedge funds over the past few years. Industry giants from Millennium Management to Balyasny Asset Management have all expanded operations in the Gulf city, drawn by a slew of incentives, a favorable timezone and a low tax regime.
The influx has pushed the hedge fund industry’s headcount in Dubai to over 1,000, and its financial freezone has seen employee numbers surge by two-thirds since 2019 to nearly 44,000. The DIFC now houses more than 400 wealth and asset management firms, including more than 60 hedge funds.
Capricorn Fund Managers is part of the Capricorn Group, a family-owned business that has been involved in alternative investments since 1994 and investment management since 2003.
Capricorn Fund Managers Ltd. is starting a regulatory hosting platform in Dubai that seeks to help hedge funds and investment companies quickly start operations in the city’s financial hub.
The London-based firm will allow investment managers to carry out regulated activities under its license at the Dubai International Financial Centre, according to a statement.
“Through Capricorn’s hosting solution, we are adding a new route for managers to get licensed and operational in Dubai,” said Salmaan Jaffery, chief business development officer of the DIFC.
Regulatory hosting platforms offer services that enable firms to cut costs. They also help with many of the administrative aspects of business, leaving investment managers free to focus on making money.
Dubai has emerged as a magnet for hedge funds over the past few years. Industry giants from Millennium Management to Balyasny Asset Management have all expanded operations in the Gulf city, drawn by a slew of incentives, a favorable timezone and a low tax regime.
The influx has pushed the hedge fund industry’s headcount in Dubai to over 1,000, and its financial freezone has seen employee numbers surge by two-thirds since 2019 to nearly 44,000. The DIFC now houses more than 400 wealth and asset management firms, including more than 60 hedge funds.
Capricorn Fund Managers is part of the Capricorn Group, a family-owned business that has been involved in alternative investments since 1994 and investment management since 2003.
#Dubai Adopts Stricter Rules Around Marketing Crypto Investments - Bloomberg
Dubai Adopts Stricter Rules Around Marketing Crypto Investments - Bloomberg
Dubai’s crypto regulator updated its marketing guidelines for virtual assets, with the new rules requiring firms to include a disclaimer clarifying the risks of such investments.
As of Oct. 1, companies looking to market virtual assets in the United Arab Emirates will have to include a “prominent” disclaimer stating that “virtual assets may lose their value in full or in part, and are subject to extreme volatility,” the Virtual Assets Regulatory Authority said Thursday.
“We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market,” said VARA Chief Executive Officer Matthew White, referring to virtual asset service providers.
The UAE’s efforts mirror steps countries from Belgium to Singapore have taken in recent years to rein in crypto marketing. The UK last year banned so-called “refer a friend” bonuses that are popular in the industry. In Belgium, ads must now include a punchy disclaimer: “The only guarantee in crypto is risk.”
Firms offering incentives for virtual assets or related products in the UAE will have to receive a compliance confirmation from VARA, among other rules, such as the bonus not being used to “divert or mislead” investors from properly assessing the risk of the investment.
Dubai’s crypto regulator updated its marketing guidelines for virtual assets, with the new rules requiring firms to include a disclaimer clarifying the risks of such investments.
As of Oct. 1, companies looking to market virtual assets in the United Arab Emirates will have to include a “prominent” disclaimer stating that “virtual assets may lose their value in full or in part, and are subject to extreme volatility,” the Virtual Assets Regulatory Authority said Thursday.
“We believe that by providing clear and actionable guidance, we can help VASPs deliver their services responsibly, while fostering greater trust and transparency in the market,” said VARA Chief Executive Officer Matthew White, referring to virtual asset service providers.
The UAE’s efforts mirror steps countries from Belgium to Singapore have taken in recent years to rein in crypto marketing. The UK last year banned so-called “refer a friend” bonuses that are popular in the industry. In Belgium, ads must now include a punchy disclaimer: “The only guarantee in crypto is risk.”
Firms offering incentives for virtual assets or related products in the UAE will have to receive a compliance confirmation from VARA, among other rules, such as the bonus not being used to “divert or mislead” investors from properly assessing the risk of the investment.
New Zealand, #UnitedArabEmirates reach trade pact | Reuters #UAE
New Zealand, United Arab Emirates reach trade pact | Reuters
New Zealand on Thursday reached a trade deal with the United Arab Emirates, which it said would unlock economic opportunities for exporters and boost supply chains with one of its most important trading partners in the Middle East.
The trade deal will remove duties on 98.5% of New Zealand's exports with that proportion expected to rise to 99% within three years, Trade Minister Todd McClay said in a statement.
"This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years," McClay said.
Two-way trade between the countries was valued at NZ$1.3 billion ($813.5 million) in the year to June 2024.
The agreement was concluded in over four months following the beginning of talks in May, making this New Zealand's fastest-ever trade agreement negotiation, McClay said.
Australia and the UAE concluded a similar trade deal earlier this month.
New Zealand on Thursday reached a trade deal with the United Arab Emirates, which it said would unlock economic opportunities for exporters and boost supply chains with one of its most important trading partners in the Middle East.
The trade deal will remove duties on 98.5% of New Zealand's exports with that proportion expected to rise to 99% within three years, Trade Minister Todd McClay said in a statement.
"This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years," McClay said.
Two-way trade between the countries was valued at NZ$1.3 billion ($813.5 million) in the year to June 2024.
The agreement was concluded in over four months following the beginning of talks in May, making this New Zealand's fastest-ever trade agreement negotiation, McClay said.
Australia and the UAE concluded a similar trade deal earlier this month.
#SaudiArabia to drop $100 crude target to win back market share, FT reports | Reuters
Saudi Arabia to drop $100 crude target to win back market share, FT reports | Reuters
Saudi Arabia is preparing to abandon its unofficial $100 a barrel oil price target as it gets ready to raise output to win back market share, even if it means lower prices, the Financial Times reported on Thursday.
The Organization of the Petroleum Exporting Countries (OPEC), which is de facto led by Riyadh, has been cutting oil output to support prices along with allies including Russia, who are together known as OPEC+.
However, prices are down nearly 5% so far this year, amid increasing supply from other producers, especially the United States, as well as weak demand growth in China.
Earlier this month, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.
The FT, citing people familiar with Saudi thinking, reported that Saudi Arabia is committed to the group raising production as planned on Dec. 1, even if that means a longer period of low oil prices.
Global crude benchmark Brent was down about 1.7% to $72.25 at 1031 GMT following the FT report.
The Saudi government's communications office did not immediately return a request for comment.
Saudi Arabia is preparing to abandon its unofficial $100 a barrel oil price target as it gets ready to raise output to win back market share, even if it means lower prices, the Financial Times reported on Thursday.
The Organization of the Petroleum Exporting Countries (OPEC), which is de facto led by Riyadh, has been cutting oil output to support prices along with allies including Russia, who are together known as OPEC+.
However, prices are down nearly 5% so far this year, amid increasing supply from other producers, especially the United States, as well as weak demand growth in China.
Earlier this month, OPEC+ agreed to delay a planned oil output increase for October and November after crude prices hit their lowest in nine months, saying it could further pause or reverse the hikes if needed.
The FT, citing people familiar with Saudi thinking, reported that Saudi Arabia is committed to the group raising production as planned on Dec. 1, even if that means a longer period of low oil prices.
Global crude benchmark Brent was down about 1.7% to $72.25 at 1031 GMT following the FT report.
The Saudi government's communications office did not immediately return a request for comment.
Wednesday, 25 September 2024
#Saudi Aramco tightens price guidance for 5- and 10-year bonds, says IFR | Reuters
Saudi Aramco tightens price guidance for 5- and 10-year bonds, says IFR | Reuters
Saudi Aramco (2223.SE), opens new tab, the state-owned oil company, has tightened the price guidance for its 5- and 10-year dollar bonds, according to a report by IFR on Wednesday.
The bond issuance could potentially raise up to $3 billion, Reuters reported on Tuesday.
The price guidance for the 5-year bonds has been tightened to a range of 90 to 95 basis points over U.S. Treasuries and for the 10-year portion to a range of 105 to 110 bps over the same benchmark, said IFR.
Saudi Aramco (2223.SE), opens new tab, the state-owned oil company, has tightened the price guidance for its 5- and 10-year dollar bonds, according to a report by IFR on Wednesday.
The bond issuance could potentially raise up to $3 billion, Reuters reported on Tuesday.
The price guidance for the 5-year bonds has been tightened to a range of 90 to 95 basis points over U.S. Treasuries and for the 10-year portion to a range of 105 to 110 bps over the same benchmark, said IFR.
Investec Opens #Dubai Office With Eye on South African, UK Expats - Bloomberg
Investec Opens Dubai Office With Eye on South African, UK Expats - Bloomberg
Investec Ltd., a bank that focuses on wealthy clients in South Africa and the UK, is opening an office in Dubai with an eye on its growing expatriate community.
The lender, which also has operations in the US, Europe and elsewhere, announced its Dubai expansion on Wednesday.
“We are seeing a lot of South Africans considering Dubai as an option to either work or permanently live,” Investec Bank Chief Executive Officer Cumesh Moodliar told Bloomberg in an interview. “Building off on that, we’ve seen family offices being quite active in that region as well as key financial institutions.”
The South African Business Council puts the number of South African-affiliated companies with the Dubai Chamber of Commerce at more than 2,400, according to South African Consul-General Tsepo Lebona. Investec also says that as many as 5,000 of its UK target-market expat clients live in Dubai.
The bank is counting on a Dubai presence to connect it with the many family offices based in the region, who Darryn Solomon, the senior executive officer for Investec in Dubai, said were handling anywhere between $700 billion and $1 trillion in wealth on behalf of their clients. Solomon said between 150,000 and 200,000 South Africans live in the United Arab Emirates.
Investec is also confident that it will be able to help guide Dubai-based investors interested in post-election opportunities in South Africa.
Business confidence has increased noticeably since President Cyril Ramaphosa formed a broad governing coalition following May 29 elections in which his African National Congress lost its parliamentary majority for the first time since 1994.
“The positive sentiment will start translating into greater and high levels of activity into South Africa,” Moodliar said. “We think that government is going to be strongly considering — particularly from an infrastructure and basic utilities perspective — the need for public-private partnerships. And our corporate and institutional business, and our energy and infrastructure businesses, are very well placed to play into that segment.”
Investec’s move follows international expansion by other South African lenders, with Absa Group Ltd. opening a non-banking unit in China and Standard Bank Group Ltd. targeting an office in Egypt by the end of the year.
Investec Ltd., a bank that focuses on wealthy clients in South Africa and the UK, is opening an office in Dubai with an eye on its growing expatriate community.
The lender, which also has operations in the US, Europe and elsewhere, announced its Dubai expansion on Wednesday.
“We are seeing a lot of South Africans considering Dubai as an option to either work or permanently live,” Investec Bank Chief Executive Officer Cumesh Moodliar told Bloomberg in an interview. “Building off on that, we’ve seen family offices being quite active in that region as well as key financial institutions.”
The South African Business Council puts the number of South African-affiliated companies with the Dubai Chamber of Commerce at more than 2,400, according to South African Consul-General Tsepo Lebona. Investec also says that as many as 5,000 of its UK target-market expat clients live in Dubai.
The bank is counting on a Dubai presence to connect it with the many family offices based in the region, who Darryn Solomon, the senior executive officer for Investec in Dubai, said were handling anywhere between $700 billion and $1 trillion in wealth on behalf of their clients. Solomon said between 150,000 and 200,000 South Africans live in the United Arab Emirates.
Investec is also confident that it will be able to help guide Dubai-based investors interested in post-election opportunities in South Africa.
Business confidence has increased noticeably since President Cyril Ramaphosa formed a broad governing coalition following May 29 elections in which his African National Congress lost its parliamentary majority for the first time since 1994.
“The positive sentiment will start translating into greater and high levels of activity into South Africa,” Moodliar said. “We think that government is going to be strongly considering — particularly from an infrastructure and basic utilities perspective — the need for public-private partnerships. And our corporate and institutional business, and our energy and infrastructure businesses, are very well placed to play into that segment.”
Investec’s move follows international expansion by other South African lenders, with Absa Group Ltd. opening a non-banking unit in China and Standard Bank Group Ltd. targeting an office in Egypt by the end of the year.
#AbuDhabi’s Aldar Plans $408 Million Hotels Push to Woo Rich Tourists - Bloomberg
Abu Dhabi’s Aldar Plans $408 Million Hotels Push to Woo Rich Tourists - Bloomberg
Abu Dhabi’s largest property developer will spend 1.5 billion dirhams ($408.4 million) to upgrade hotels it owns across the United Arab Emirates to capitalize on the growing demand for luxury tourism.
Aldar Properties PJSC will refurbish some existing properties within its hotel portfolio while expanding others, the company said in an emailed statement on Wednesday.
It’ll also bring Hilton Worldwide Holdings Inc.’s Waldorf Astoria and InterContinental Hotels Group Plc’s Vignette Collection to manage hotels in the city for the first time.
Abu Dhabi has a $10 billion plan to boost tourism and cultural activity in the emirate, which includes a Guggenheim museum that’s set to be about 12 times the size of its New York counterpart. It’s also opened a new airport, theme parks including Sea World and has been constructing luxury homes and resorts to cater to tourists and residents.
Abu Dhabi aims to increase the number of visitors to over 39 million by 2030 from 24 million in 2023 as it intensifies its competition with neighboring Dubai for rich tourists.
Aldar, which is partly owned by the Abu Dhabi government, is also planning to renovate a couple of hotels in Ras Al Khaimah, where Wynn Resorts Ltd. is planning the UAE’s first gaming resort.
Abu Dhabi’s largest property developer will spend 1.5 billion dirhams ($408.4 million) to upgrade hotels it owns across the United Arab Emirates to capitalize on the growing demand for luxury tourism.
Aldar Properties PJSC will refurbish some existing properties within its hotel portfolio while expanding others, the company said in an emailed statement on Wednesday.
It’ll also bring Hilton Worldwide Holdings Inc.’s Waldorf Astoria and InterContinental Hotels Group Plc’s Vignette Collection to manage hotels in the city for the first time.
Abu Dhabi has a $10 billion plan to boost tourism and cultural activity in the emirate, which includes a Guggenheim museum that’s set to be about 12 times the size of its New York counterpart. It’s also opened a new airport, theme parks including Sea World and has been constructing luxury homes and resorts to cater to tourists and residents.
Abu Dhabi aims to increase the number of visitors to over 39 million by 2030 from 24 million in 2023 as it intensifies its competition with neighboring Dubai for rich tourists.
Aldar, which is partly owned by the Abu Dhabi government, is also planning to renovate a couple of hotels in Ras Al Khaimah, where Wynn Resorts Ltd. is planning the UAE’s first gaming resort.
#UAE c.bank sees 4% GDP growth in 2024, state news agency reports | Reuters
UAE c.bank sees 4% GDP growth in 2024, state news agency reports | Reuters
The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector's performance, the state news agency (WAM) reported on Wednesday.
The central bank also saw 2025 GDP growth at 6% in 2025, WAM added.
The United Arab Emirates central bank raised its forecast for 2024 GDP growth to 4% from a previous forecast of 3.9%, citing improvement in the oil sector's performance, the state news agency (WAM) reported on Wednesday.
The central bank also saw 2025 GDP growth at 6% in 2025, WAM added.
Shareholder to decide on IPO, Etihad Airways CEO says | Reuters
Shareholder to decide on IPO, Etihad Airways CEO says | Reuters
A decision on an IPO is for the shareholder ADQ to make, the CEO of Abu Dhabi's Etihad Airways, Antonoaldo Neves, said on Wednesday.
The airline has been working hard to be ready for an IPO should its shareholder ADQ decide to list the shares, he added.
A decision on an IPO is for the shareholder ADQ to make, the CEO of Abu Dhabi's Etihad Airways, Antonoaldo Neves, said on Wednesday.
The airline has been working hard to be ready for an IPO should its shareholder ADQ decide to list the shares, he added.
Most Gulf markets extend gains on rate cuts; regional tensions weigh | Reuters
Most Gulf markets extend gains on rate cuts; regional tensions weigh | Reuters
Most stock markets in the Gulf ended higher on Wednesday, building on gains led by interest rate cuts last week enacted by regional central banks, although geopolitical tensions weighed on investor sentiment.
Last week, most Gulf central banks cut their key interest rates after the U.S. Federal Reserve decreased rates by half a percentage point citing "greater confidence" on inflation.
The Fed projected a further half-point rate cut by the year-end, a full point next year and a half-point trim in 2026.
Monetary policy in the Gulf Cooperation Council often aligns with 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 0.6%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 3.2%.
Among other gainers, oil giant Saudi Aramco (2222.SE), opens new tab was up 0.7%.
Dubai's main share index (.DFMGI), opens new tab advanced 0.6%, led by a 2.2% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.6% higher, driven by a 0.5% rise in telecoms group e& (EAND.AD), opens new tab after the EU Commission approved the firm's bid for parts of Czech telecom company PPF under certain conditions.
The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.
The Qatari benchmark (.QSI), opens new tab concluded 0.5% higher, with Qatar National Bank (QNBK.QA), opens new tab gaining 1.3%.
An Israeli airstrike on Beirut killed a senior Hezbollah commander on Tuesday as cross-border rocket attacks by both sides increased fears of a full-fledged war in the Middle East.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 1.2% higher, buoyed by a 2.5% increase in Talaat Mostafa Holding (TMGH.CA), opens new tab.
Most stock markets in the Gulf ended higher on Wednesday, building on gains led by interest rate cuts last week enacted by regional central banks, although geopolitical tensions weighed on investor sentiment.
Last week, most Gulf central banks cut their key interest rates after the U.S. Federal Reserve decreased rates by half a percentage point citing "greater confidence" on inflation.
The Fed projected a further half-point rate cut by the year-end, a full point next year and a half-point trim in 2026.
Monetary policy in the Gulf Cooperation Council often aligns with 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 0.6%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 3.2%.
Among other gainers, oil giant Saudi Aramco (2222.SE), opens new tab was up 0.7%.
Dubai's main share index (.DFMGI), opens new tab advanced 0.6%, led by a 2.2% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.6% higher, driven by a 0.5% rise in telecoms group e& (EAND.AD), opens new tab after the EU Commission approved the firm's bid for parts of Czech telecom company PPF under certain conditions.
The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.
The Qatari benchmark (.QSI), opens new tab concluded 0.5% higher, with Qatar National Bank (QNBK.QA), opens new tab gaining 1.3%.
An Israeli airstrike on Beirut killed a senior Hezbollah commander on Tuesday as cross-border rocket attacks by both sides increased fears of a full-fledged war in the Middle East.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 1.2% higher, buoyed by a 2.5% increase in Talaat Mostafa Holding (TMGH.CA), opens new tab.
Tuesday, 24 September 2024
#Qatar’s Ooredoo wades into Gulf’s AI data centre rivalry
Qatar’s Ooredoo wades into Gulf’s AI data centre rivalry
Qatari telecoms company Ooredoo is borrowing QR2bn ($550mn) to expand its regional network of data centres, as the gas-rich Gulf nation seeks to capitalise on the information highway running through the Middle East.
Qatari telecoms company Ooredoo is borrowing QR2bn ($550mn) to expand its regional network of data centres, as the gas-rich Gulf nation seeks to capitalise on the information highway running through the Middle East.
Ooredoo is majority-owned by the Qatari government but listed and independently managed. Its data centre subsidiary, Mena Digital Hub, has obtained the 10-year financing facility from three Qatari banks and aims to overhaul and expand its data centres to meet demand for artificial intelligence applications.
Fossil fuel exporting Gulf nations are betting heavily on AI to diversify their hydrocarbon-dependent economies. They believe they can provide the cheap power needed to run the energy-hungry computing warehouses that crunch vast quantities of data for AI uses.
Analysts expect Saudi Arabia, the Gulf region’s largest economy, and the tech-focused United Arab Emirates to become the biggest markets for data centres and AI.
But Ooredoo also has big ambitions, aiming to build 120MW of data centre capacity in the next five years. That’s equivalent to about half of the region’s 237MW market today, according to data from international real estate firm Cushman & Wakefield, which projects that figure will more than double to 537MW by 2029.
In June, Ooredoo struck a partnership with US semiconductor maker Nvidia, which produces chips that can be used in data centres to handle AI’s intense computing demand.
In the Gulf “there’s space for probably three to four major players”, Ooredoo’s chief executive Aziz Aluthman Fakhroo told the Financial Times. “We hope to be one of those.”
Hedge Funds, Golden Visas and the #UAE’s Commercial Real Estate Boom - Bloomberg
Hedge Funds, Golden Visas and the UAE’s Commercial Real Estate Boom - Bloomberg
Global financial centers are grappling with an anemic commercial real estate market. In Manhattan, 16% of office space lies empty — a level last seen three decades ago, while in San Francisco, the rate is twice as high. Vacancies in the City of London are sitting at a two-decade high of 11.8%.
But Dubai and Abu Dhabi have emerged as the bright spots. An influx of hedge funds has solidified a recovery built on government reforms and the emirates have begun to orchestrate moves that indicate the extent of the boom, as my colleague Zainab Fattah highlighted.
“The level of demand is pretty unprecedented at this moment, and that has been a significant driver,” Taimur Khan, head of research in the Middle East for real estate services firm CBRE, told Joumanna Bercetche on Bloomberg TV’s Horizons Middle East & Africa show.
To address that, Dubai — long the regional business hub — is spending over a quarter of a billion dollars on three new office towers, and there’s talk of further expanding its financial center. DIFC 2.0, if you will. This is in an area where a building recently sold at a $1.5 billion valuation, roads are routinely packed with cars — and good luck finding a table at Zuma.
Neighboring Abu Dhabi, the capital of the United Arab Emirates — some call it the capital of capital — is taking it one step further. A bevy of hedge funds have made a beeline for the city, drawn by a string of incentives and $1.5 trillion in sovereign wealth capital. The influx includes Brevan Howard and has led to a shortage of space. Authorities are now kitting out a whole new island to house firms, a move that will create one of the largest financial districts globally.
“We talk about financial centers and the fact that demand is originating from the likes of the hedge funds, financial institutions, global banks,” CBRE’s Khan said. “The reality is when you look outside the main financial free-zone and even onshore jurisdictions, we’re seeing a lot of firms expanding headcount significantly to service UAE and the wider region.”
One common theme with the rest of the world, Khan said, is the rush to quality. “In many global cities, we’re seeing commercial real estate on a headline level is not performing well, but LEED Gold or Platinum buildings are not only achieving a higher level of occupancy, they are also achieving a lot higher rent than the wider market.’’
“This goes to show the quality of the real estate is driving occupancy — that is true here and in a number of other key cities.”
Global financial centers are grappling with an anemic commercial real estate market. In Manhattan, 16% of office space lies empty — a level last seen three decades ago, while in San Francisco, the rate is twice as high. Vacancies in the City of London are sitting at a two-decade high of 11.8%.
But Dubai and Abu Dhabi have emerged as the bright spots. An influx of hedge funds has solidified a recovery built on government reforms and the emirates have begun to orchestrate moves that indicate the extent of the boom, as my colleague Zainab Fattah highlighted.
“The level of demand is pretty unprecedented at this moment, and that has been a significant driver,” Taimur Khan, head of research in the Middle East for real estate services firm CBRE, told Joumanna Bercetche on Bloomberg TV’s Horizons Middle East & Africa show.
To address that, Dubai — long the regional business hub — is spending over a quarter of a billion dollars on three new office towers, and there’s talk of further expanding its financial center. DIFC 2.0, if you will. This is in an area where a building recently sold at a $1.5 billion valuation, roads are routinely packed with cars — and good luck finding a table at Zuma.
Neighboring Abu Dhabi, the capital of the United Arab Emirates — some call it the capital of capital — is taking it one step further. A bevy of hedge funds have made a beeline for the city, drawn by a string of incentives and $1.5 trillion in sovereign wealth capital. The influx includes Brevan Howard and has led to a shortage of space. Authorities are now kitting out a whole new island to house firms, a move that will create one of the largest financial districts globally.
“We talk about financial centers and the fact that demand is originating from the likes of the hedge funds, financial institutions, global banks,” CBRE’s Khan said. “The reality is when you look outside the main financial free-zone and even onshore jurisdictions, we’re seeing a lot of firms expanding headcount significantly to service UAE and the wider region.”
One common theme with the rest of the world, Khan said, is the rush to quality. “In many global cities, we’re seeing commercial real estate on a headline level is not performing well, but LEED Gold or Platinum buildings are not only achieving a higher level of occupancy, they are also achieving a lot higher rent than the wider market.’’
“This goes to show the quality of the real estate is driving occupancy — that is true here and in a number of other key cities.”
#Dubai: Hedge Funds Now Employ More Than 1,000 People in DIFC - Bloomberg
Dubai: Hedge Funds Now Employ More Than 1,000 People in DIFC - Bloomberg
An influx of some of the world’s biggest hedge funds, from Millennium Management to Balyasny Asset Management, has pushed the industry’s headcount in Dubai to over 1,000, burnishing the city’s credentials as an emerging hub for the sector.
While that’s still a fraction of the numbers employed in the biggest financial centers — hedge funds in North America and Europe have close to 100,000 staff — the headcount has been ticking up in Dubai, according to data from the city’s financial freezone.
It’s not just hedge funds. The Dubai International Financial Centre has seen employee numbers surge by two-thirds since 2019 to nearly 44,000. The financial hub expects a record number of firms to set up this year too, and is building three new office towers to meet the anticipated demand.
The United Arab Emirates, of which Dubai is a part, has emerged as a magnet for hedge funds over the past few years. Izzy Englander’s Millennium, Michael Platt’s BlueCrest Capital Management, and Balyasny have all expanded operations to Dubai, drawn by a slew of incentives, a favorable timezone and a low tax regime.
The $68.8 billion Millennium has, in particular, been aggressively ramping up operations since securing a license in 2020, employing close to 100 people. Meantime, Balyasny aims to double its 12-person workforce in Dubai, Bloomberg has reported.
Schonfeld Strategic Advisors, meanwhile, has more than 30 people based in Dubai and will move to a new office with space for 80 people in the Index Tower in November, a person with knowledge of the matter said.
Multistrategy hedge funds moving to a region has an outsize impact on the number of people employed by the industry, given they have teams of traders investing for them. While such firms account for just 8% of assets, Goldman Sachs Group Inc. estimates that they account for a quarter of total headcount in hedge funds.
Neighboring Abu Dhabi, which has the added attraction of being one of few cities globally to manage $1.5 trillion in sovereign wealth, has also managed to draw in big names. Brevan Howard Asset Management now manages more money from that emirate than anywhere else, Bloomberg News has reported.
An influx of some of the world’s biggest hedge funds, from Millennium Management to Balyasny Asset Management, has pushed the industry’s headcount in Dubai to over 1,000, burnishing the city’s credentials as an emerging hub for the sector.
While that’s still a fraction of the numbers employed in the biggest financial centers — hedge funds in North America and Europe have close to 100,000 staff — the headcount has been ticking up in Dubai, according to data from the city’s financial freezone.
It’s not just hedge funds. The Dubai International Financial Centre has seen employee numbers surge by two-thirds since 2019 to nearly 44,000. The financial hub expects a record number of firms to set up this year too, and is building three new office towers to meet the anticipated demand.
The United Arab Emirates, of which Dubai is a part, has emerged as a magnet for hedge funds over the past few years. Izzy Englander’s Millennium, Michael Platt’s BlueCrest Capital Management, and Balyasny have all expanded operations to Dubai, drawn by a slew of incentives, a favorable timezone and a low tax regime.
The $68.8 billion Millennium has, in particular, been aggressively ramping up operations since securing a license in 2020, employing close to 100 people. Meantime, Balyasny aims to double its 12-person workforce in Dubai, Bloomberg has reported.
Schonfeld Strategic Advisors, meanwhile, has more than 30 people based in Dubai and will move to a new office with space for 80 people in the Index Tower in November, a person with knowledge of the matter said.
Multistrategy hedge funds moving to a region has an outsize impact on the number of people employed by the industry, given they have teams of traders investing for them. While such firms account for just 8% of assets, Goldman Sachs Group Inc. estimates that they account for a quarter of total headcount in hedge funds.
Neighboring Abu Dhabi, which has the added attraction of being one of few cities globally to manage $1.5 trillion in sovereign wealth, has also managed to draw in big names. Brevan Howard Asset Management now manages more money from that emirate than anywhere else, Bloomberg News has reported.
Most Gulf markets track oil, Asian shares higher | Reuters
Most Gulf markets track oil, Asian shares higher | Reuters
Most stock markets in the Gulf ended higher on Tuesday in line with oil prices and Asian shares buoyed by broad stimulus measures from China, although geopolitical tensions in the region limited gains.
Oil prices - a catalyst for the Gulf's financial markets - jumped more than 2% on news of monetary stimulus from top importer China and concerns that conflict in the Middle East could hit regional supply. At the same time, another hurricane threatened supply in the United States, the world's biggest crude producer.
People's Bank of China Governor Pan Gongsheng announced plans to lower borrowing costs, inject more funds into the economy, and ease households' mortgage repayment burden. Pan also said China would roll out structural monetary policy tools for the first time to help stabilise capital markets.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.1%, led by a 0.5% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 6.6% increase in ACWA Power Company (2082.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.3%.
Aramco is planning to raise up to $3 billion in five and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday.
Dubai's main share index (.DFMGI), opens new tab added 0.6%, with toll operator Salik Co (SALIK.DU), opens new tab closing 3.3% higher.
In Abu Dhabi, the index (.FTFADGI), opens new tab inched 0.1% higher.
The Abu Dhabi bourse saw limited activity with low volatility. While rising oil prices are favorable, apprehensions about geopolitical tensions are limiting the potential for higher gains, said Joseph Dahrieh, Managing Principal at Tickmill.
Israel carried out a new wave of airstrikes on Hezbollah targets in Lebanon and said it would keep up pressure on the armed group as its Iran-backed foe fired rockets into Israel on Tuesday, amid growing fears of all-out war in the Middle East.
The Qatari benchmark (.QSI), opens new tab gained 0.5%, with Qatar Islamic Bank (QISB.QA), opens new tab rising 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.5%, with top lender Commercial International Bank (COMI.CA), opens new tab losing 0.6%.
Most stock markets in the Gulf ended higher on Tuesday in line with oil prices and Asian shares buoyed by broad stimulus measures from China, although geopolitical tensions in the region limited gains.
Oil prices - a catalyst for the Gulf's financial markets - jumped more than 2% on news of monetary stimulus from top importer China and concerns that conflict in the Middle East could hit regional supply. At the same time, another hurricane threatened supply in the United States, the world's biggest crude producer.
People's Bank of China Governor Pan Gongsheng announced plans to lower borrowing costs, inject more funds into the economy, and ease households' mortgage repayment burden. Pan also said China would roll out structural monetary policy tools for the first time to help stabilise capital markets.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.1%, led by a 0.5% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 6.6% increase in ACWA Power Company (2082.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab gained 0.3%.
Aramco is planning to raise up to $3 billion in five and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday.
Dubai's main share index (.DFMGI), opens new tab added 0.6%, with toll operator Salik Co (SALIK.DU), opens new tab closing 3.3% higher.
In Abu Dhabi, the index (.FTFADGI), opens new tab inched 0.1% higher.
The Abu Dhabi bourse saw limited activity with low volatility. While rising oil prices are favorable, apprehensions about geopolitical tensions are limiting the potential for higher gains, said Joseph Dahrieh, Managing Principal at Tickmill.
Israel carried out a new wave of airstrikes on Hezbollah targets in Lebanon and said it would keep up pressure on the armed group as its Iran-backed foe fired rockets into Israel on Tuesday, amid growing fears of all-out war in the Middle East.
The Qatari benchmark (.QSI), opens new tab gained 0.5%, with Qatar Islamic Bank (QISB.QA), opens new tab rising 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.5%, with top lender Commercial International Bank (COMI.CA), opens new tab losing 0.6%.
#UAE's Masdar buys Brookfield's Saeta Yield in $1.4 bln deal | Reuters
UAE's Masdar buys Brookfield's Saeta Yield in $1.4 bln deal | Reuters
United Arab Emirates' renewable energy company Masdar said on Tuesday it has reached an agreement to buy green energy firm Saeta Yield from Canada's Brookfield's (BAM.TO), opens new tab in a deal valuing the company at $1.4 billion.
Under the deal, Masdar is acquiring 745 megawatts (MW) of mostly wind assets and 1.6 gigawatts of projects under development in Spain and Portugal, marking one of the largest such deals in the Iberian region.
This is Masdar's second big green energy deal in recent months in Spain, one of Europe's largest wind and solar markets. It follows the agreement to buy a minority stake in 48 solar plants controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab for 817 million euros.
Higher interest rates brought about a "normalisation" of asset prices, Masdar's CFO told Reuters after the deal with Endesa, adding that the company was seeking more opportunities in the region.
The agreement with Brookfield includes 538 MW of wind assets in Spain and 144 MW of wind assets in Portugal, with the remaining being solar power assets in Spain. Some solar thermal plants controlled by Saeta are not part of the sale process and will remain under Brookfield's control.
Closing of the deal is expected around the end of the year.
"Saeta is the perfect complement to Masdar's portfolio in Europe, especially after the recent partnership with Endesa," Masdar CEO Mohamed Jameel Al Ramahi said.
Spain and Portugal's abundant solar and wind resources have drawn both domestic and foreign firms eager to leverage growing demand for renewable energy.
Controlled by UAE's power and water firm TAQA, its national oil company ADNOC and sovereign wealth fund Mubadala Investment Company, Masdar aims to grow its capacity to 100 GW of renewable energy by 2030.
Brookfield acquired and delisted Saeta, founded by Spanish construction company ACS, in 2018 for 1 billion euros.
United Arab Emirates' renewable energy company Masdar said on Tuesday it has reached an agreement to buy green energy firm Saeta Yield from Canada's Brookfield's (BAM.TO), opens new tab in a deal valuing the company at $1.4 billion.
Under the deal, Masdar is acquiring 745 megawatts (MW) of mostly wind assets and 1.6 gigawatts of projects under development in Spain and Portugal, marking one of the largest such deals in the Iberian region.
This is Masdar's second big green energy deal in recent months in Spain, one of Europe's largest wind and solar markets. It follows the agreement to buy a minority stake in 48 solar plants controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab for 817 million euros.
Higher interest rates brought about a "normalisation" of asset prices, Masdar's CFO told Reuters after the deal with Endesa, adding that the company was seeking more opportunities in the region.
The agreement with Brookfield includes 538 MW of wind assets in Spain and 144 MW of wind assets in Portugal, with the remaining being solar power assets in Spain. Some solar thermal plants controlled by Saeta are not part of the sale process and will remain under Brookfield's control.
Closing of the deal is expected around the end of the year.
"Saeta is the perfect complement to Masdar's portfolio in Europe, especially after the recent partnership with Endesa," Masdar CEO Mohamed Jameel Al Ramahi said.
Spain and Portugal's abundant solar and wind resources have drawn both domestic and foreign firms eager to leverage growing demand for renewable energy.
Controlled by UAE's power and water firm TAQA, its national oil company ADNOC and sovereign wealth fund Mubadala Investment Company, Masdar aims to grow its capacity to 100 GW of renewable energy by 2030.
Brookfield acquired and delisted Saeta, founded by Spanish construction company ACS, in 2018 for 1 billion euros.
EU clears deal by #UAE's e& for PPF in first foreign subsidy probe | Reuters
EU clears deal by UAE's e& for PPF in first foreign subsidy probe | Reuters
The EU Commission on Tuesday said it approved UAE telecoms group e&'s EAND.AD bid for parts of Czech telecoms company PPF under certain conditions, as it concluded its first probe under new bloc-wide regulation aimed at reigning in unfair competition from overseas.
The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.
WHY IT'S IMPORTANT
The examination of the acquisition is the first by the European Commission under the bloc's Foreign Subsidies Regulation which allows the watchdog to crack down on unfair foreign state support to their companies.
The EU Commission on Tuesday said it approved UAE telecoms group e&'s EAND.AD bid for parts of Czech telecoms company PPF under certain conditions, as it concluded its first probe under new bloc-wide regulation aimed at reigning in unfair competition from overseas.
The deal will see e& acquire the sole control of PPF Telecom excluding its local business in the Czech Republic.
WHY IT'S IMPORTANT
The examination of the acquisition is the first by the European Commission under the bloc's Foreign Subsidies Regulation which allows the watchdog to crack down on unfair foreign state support to their companies.
KEY QUOTE
"The foreign subsidies received by e& did not lead to actual or potential negative effects on competition in the acquisition process", the Commission said, adding: "e& was the sole bidder for the target and had sufficient own resources to perform the acquisition, which reflected the target's market value, so that foreign subsidies did not alter the outcome of the acquisition process."
"The foreign subsidies received by e& did not lead to actual or potential negative effects on competition in the acquisition process", the Commission said, adding: "e& was the sole bidder for the target and had sufficient own resources to perform the acquisition, which reflected the target's market value, so that foreign subsidies did not alter the outcome of the acquisition process."
#Saudi Aramco to raise up to $3 bln in two-tranche dollar Islamic bonds, sources say | Reuters
Saudi Aramco to raise up to $3 bln in two-tranche dollar Islamic bonds, sources say | Reuters
Saudi Aramco (2223.SE), opens new tab is planning to raise up to $3 billion in five and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday.
The sources could not be named as the information on the deal size had not yet been made public. Aramco, mostly owned by the Saudi Arabian government, did not immediately respond to a request for comment.
Banks will hold investor calls starting on Tuesday, according to the term sheet.
Aramco, the world's top oil exporter, has long been a cash cow for Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan.
In July, Aramco raised $6 billion from its first bond issuance in three years.
Aramco expects to pay out $124.3 billion in dividends for 2024, most of which goes to the government, which directly owns nearly 81.5% of the company. Its sovereign wealth fund, the Public Investment Fund, owns another 16%.
Saudi Arabia has been pumping around 9 million barrels per day of oil, about 25% below its capacity.
Al Rajhi Capital, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, KFH Capital and Standard Chartered are active bookrunners.
Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, Natixis, Sharjah Islamic Bank and SMBC Nikko are passive bookrunners.
Saudi Aramco (2223.SE), opens new tab is planning to raise up to $3 billion in five and 10-year U.S. dollar-denominated sukuk, or Islamic bonds, according to two sources with direct knowledge of the matter and a term sheet reviewed by Reuters on Tuesday.
The sources could not be named as the information on the deal size had not yet been made public. Aramco, mostly owned by the Saudi Arabian government, did not immediately respond to a request for comment.
Banks will hold investor calls starting on Tuesday, according to the term sheet.
Aramco, the world's top oil exporter, has long been a cash cow for Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan.
In July, Aramco raised $6 billion from its first bond issuance in three years.
Aramco expects to pay out $124.3 billion in dividends for 2024, most of which goes to the government, which directly owns nearly 81.5% of the company. Its sovereign wealth fund, the Public Investment Fund, owns another 16%.
Saudi Arabia has been pumping around 9 million barrels per day of oil, about 25% below its capacity.
Al Rajhi Capital, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, KFH Capital and Standard Chartered are active bookrunners.
Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, Natixis, Sharjah Islamic Bank and SMBC Nikko are passive bookrunners.
#UAE president meets Joe Biden in push for more US AI technology
UAE president meets Joe Biden in push for more US AI technology
The United Arab Emirates’ leader met US President Joe Biden in Washington on Monday to advance artificial intelligence co-operation as the Gulf nation tries to secure easier access to US-made technology.
The United Arab Emirates’ leader met US President Joe Biden in Washington on Monday to advance artificial intelligence co-operation as the Gulf nation tries to secure easier access to US-made technology.
The meeting comes during Sheikh Mohamed bin Zayed al-Nahyan’s first official trip to the US in seven years and underscores his determination to win White House support in his efforts to transform the UAE into an AI leader.
As well as discussing technology and trade, Biden said the UAE would now have “major defense partner” status along with India, to foster greater security ties through measures such as joint military training and exercises.
The UAE is one of the US’s most important allies in the Middle East, but relations have been strained at times in recent years. Talks for a formal security pact with Washington have stalled, and Abu Dhabi was infuriated by what it saw as a lukewarm US response to attacks on the UAE’s capital by Houthi rebels from Yemen in 2022.
Yet AI has brought new energy to the relationship. Oil-rich Abu Dhabi has made AI central to its plan to wean itself off fossil fuel exports and has taken a strategic decision to work with US companies producing cutting-edge technology.
“AI and new changes in cloud computing, etc, are going to change the way the world looks,” Anwar Gargash, Sheikh Mohamed’s diplomatic adviser, said in Dubai last week. “We cannot let this sort of wave of technological breakthroughs pass by us.
“If we believe that hydrocarbon is on the way out, slowly but surely, then we have to replace the revenue stream through something else,” he added.
Monday, 23 September 2024
Singapore Exchange Targets #Dubai Expansion to Follow Hedge Funds - Bloomberg
Singapore Exchange Targets Dubai Expansion to Follow Hedge Funds - Bloomberg
Singapore Exchange Ltd. is looking at expanding into Dubai, drawn by the surge of hedge funds that have settled in the United Arab Emirates.
An influx of the firm’s clients settling in the emirate is strengthening the case for opening a new office, complementing its operations in nine other countries, Lee Beng Hong, head of wholesale markets and platforms at SGX, said in an interview in London.
“Given the success we’ve had in the Middle East, it’s the right time for us to grow our presence there,” Lee said. “We are actively looking at that.”
A wave of fund managers have flocked to Dubai in recent months, drawn by a slew of government incentives, a favorable timezone and a low tax regime. Millennium Management, BlueCrest and Balyasny Asset Management are among those that have expanded operations in the city.
While SGX’s strategy in the Middle East is at an early stage, the initial plan is to move a Qatar-based employee to Dubai before adding more people, Lee said. He didn’t disclose the number of people that the firm is planning to hire.
“We go where our clients go,” Lee said. “The plan is to have more people, we don’t want to have small offices because that means employees are less connected to the functions that are building and designing our products.”
Currency trading has been a particular bright spot for SGX this year, with four consecutive months of record volumes through August and average daily volumes of around $111 billion. The firm has benefited from rising interest in the trading of Asian currencies, especially as the impact of the Japanese yen carry trade blow-up rippled across the region.
Singapore Exchange Ltd. is looking at expanding into Dubai, drawn by the surge of hedge funds that have settled in the United Arab Emirates.
An influx of the firm’s clients settling in the emirate is strengthening the case for opening a new office, complementing its operations in nine other countries, Lee Beng Hong, head of wholesale markets and platforms at SGX, said in an interview in London.
“Given the success we’ve had in the Middle East, it’s the right time for us to grow our presence there,” Lee said. “We are actively looking at that.”
A wave of fund managers have flocked to Dubai in recent months, drawn by a slew of government incentives, a favorable timezone and a low tax regime. Millennium Management, BlueCrest and Balyasny Asset Management are among those that have expanded operations in the city.
While SGX’s strategy in the Middle East is at an early stage, the initial plan is to move a Qatar-based employee to Dubai before adding more people, Lee said. He didn’t disclose the number of people that the firm is planning to hire.
“We go where our clients go,” Lee said. “The plan is to have more people, we don’t want to have small offices because that means employees are less connected to the functions that are building and designing our products.”
Currency trading has been a particular bright spot for SGX this year, with four consecutive months of record volumes through August and average daily volumes of around $111 billion. The firm has benefited from rising interest in the trading of Asian currencies, especially as the impact of the Japanese yen carry trade blow-up rippled across the region.
#SaudiArabia: BlackRock (BLK) Deal Showcases Rise of PIF's New Star - Bloomberg
Saudi Arabia: BlackRock (BLK) Deal Showcases Rise of PIF's New Star - Bloomberg
When BlackRock Inc. landed a $5 billion investment pledge from Riyadh in April, pictured smiling alongside Larry Fink and Public Investment Fund Governor Yasir Al Rumayyan was an executive seen as a rising force within the sovereign investor.
That man, Yazeed Al Humied, is one of the fund’s two deputy governors and runs its Middle East and North Africa unit. While this was regarded as the less glamorous arm of the PIF for years, the $925 billion fund’s growing domestic focus means that Al Humied is now increasingly being courted by the titans of investing.
He was the executive handpicked to deliver a blunt message to firms eyeing business and big checks from Riyadh. Foreign outfits should set up “not just their reception desks but their kitchens” in Saudi Arabia if they want to continue raising money from the PIF, Al Humied told attendees at a summit last year.
He’s now being sought out by international firms looking to set up Saudi entities and raise money for domestic investments, according to people familiar with the matter, who declined to be identified discussing confidential information.
Since such agreements are mostly routed through the fund’s local investments arm, Al Humied’s leading the charge for a more aggressive PIF that, like other Gulf funds, is increasingly asking big money managers to offer concessions in return for cash.
In one sign that he’s been groomed for a higher profile role, Al Humied is among many senior executives who have been offered training similar to what was made available to Al Rumayyan, according to one of the people. This includes language coaching and tips on how to interact with executives at the top echelons of world finance, the person said.
Representatives for the fund declined to comment.
When BlackRock Inc. landed a $5 billion investment pledge from Riyadh in April, pictured smiling alongside Larry Fink and Public Investment Fund Governor Yasir Al Rumayyan was an executive seen as a rising force within the sovereign investor.
That man, Yazeed Al Humied, is one of the fund’s two deputy governors and runs its Middle East and North Africa unit. While this was regarded as the less glamorous arm of the PIF for years, the $925 billion fund’s growing domestic focus means that Al Humied is now increasingly being courted by the titans of investing.
He was the executive handpicked to deliver a blunt message to firms eyeing business and big checks from Riyadh. Foreign outfits should set up “not just their reception desks but their kitchens” in Saudi Arabia if they want to continue raising money from the PIF, Al Humied told attendees at a summit last year.
He’s now being sought out by international firms looking to set up Saudi entities and raise money for domestic investments, according to people familiar with the matter, who declined to be identified discussing confidential information.
Since such agreements are mostly routed through the fund’s local investments arm, Al Humied’s leading the charge for a more aggressive PIF that, like other Gulf funds, is increasingly asking big money managers to offer concessions in return for cash.
In one sign that he’s been groomed for a higher profile role, Al Humied is among many senior executives who have been offered training similar to what was made available to Al Rumayyan, according to one of the people. This includes language coaching and tips on how to interact with executives at the top echelons of world finance, the person said.
Representatives for the fund declined to comment.
General Atlantic plans #AbuDhabi office by year-end, sources say | Reuters
General Atlantic plans Abu Dhabi office by year-end, sources say | Reuters
General Atlantic plans to open an Abu Dhabi office by the end of the year and move a dealmaker from London as an inaugural member of the new team, two sources familiar with the matter said.
The New York-based private equity firm, which manages funds totalling $83 billion, has received preliminary approval for a license to operate out of the Abu Dhabi Global Market (ADGM), the sources told Reuters.
Final approval is expected by the end of 2024, they said.
Details of General Atlantic's license application are available on the ADGM's online public register. Representatives for General Atlantic declined to comment.
General Atlantic will join other global asset managers and hedge funds which have set up in the UAE capital's financial centre, lured by opportunities to deepen relationships with its sovereign wealth funds as other funding for buyouts dries up.
Abu Dhabi, which generates most of the Gulf state's oil wealth, is home to some of the world's biggest funds including Abu Dhabi Investment Authority (ADIA) and state investor Mubadala, which together manage more than $1 trillion in assets.
General Atlantic is being backed by asset manager Mubadala Capital, the sources said.
General Atlantic plans to open an Abu Dhabi office by the end of the year and move a dealmaker from London as an inaugural member of the new team, two sources familiar with the matter said.
The New York-based private equity firm, which manages funds totalling $83 billion, has received preliminary approval for a license to operate out of the Abu Dhabi Global Market (ADGM), the sources told Reuters.
Final approval is expected by the end of 2024, they said.
Details of General Atlantic's license application are available on the ADGM's online public register. Representatives for General Atlantic declined to comment.
General Atlantic will join other global asset managers and hedge funds which have set up in the UAE capital's financial centre, lured by opportunities to deepen relationships with its sovereign wealth funds as other funding for buyouts dries up.
Abu Dhabi, which generates most of the Gulf state's oil wealth, is home to some of the world's biggest funds including Abu Dhabi Investment Authority (ADIA) and state investor Mubadala, which together manage more than $1 trillion in assets.
General Atlantic is being backed by asset manager Mubadala Capital, the sources said.
Most Gulf markets in red on rising tensions in the region | Reuters
Most Gulf markets in red on rising tensions in the region | Reuters
Most stock markets in the Gulf ended lower on Monday amid rising tensions in the region, with the Dubai index snapping two sessions of gains.
The Qatari benchmark index (.QSI), opens new tab finished flat.
In Abu Dhabi, the index (.FTFADGI), opens new tab edged 0.2% higher, supported by a 0.7% rise in conglomerate International Holding (IHC.AD), opens new tab.
The Abu Dhabi stock market was under pressure, while uncertainty limited its potential for gains, said George Khoury Global Head of Education and Research at CFI.
"Additionally, oil prices can continue to weigh on the market with crude remaining near this year's low."
Oil prices - a catalyst for the Gulf's financial markets - rose slightly in choppy trade after last week's cut to U.S. interest rates and a dip in U.S. crude supply in the aftermath of Hurricane Francine countered weaker demand from top oil importer China.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.1%, with Talaat Mostafa Group (TMGH.CA), opens new tab losing 0.9%.
The Israeli military launched its most widespread wave of airstrikes against Iran-backed Hezbollah, targeting Lebanon's south, eastern Bekaa Valley and northern region near Syria simultaneously after nearly a year of conflict.
Another round of attacks was expected. Israeli aircraft are preparing to attack Hezbollah strategic weapons stashed in houses in Lebanon's Bekaa valley, the Israeli military spokesperson said, calling on civilians to evacuate immediately.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1.5% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1.5% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
The Qatari benchmark index (.QSI), opens new tab finished flat.
In Abu Dhabi, the index (.FTFADGI), opens new tab edged 0.2% higher, supported by a 0.7% rise in conglomerate International Holding (IHC.AD), opens new tab.
The Abu Dhabi stock market was under pressure, while uncertainty limited its potential for gains, said George Khoury Global Head of Education and Research at CFI.
"Additionally, oil prices can continue to weigh on the market with crude remaining near this year's low."
Oil prices - a catalyst for the Gulf's financial markets - rose slightly in choppy trade after last week's cut to U.S. interest rates and a dip in U.S. crude supply in the aftermath of Hurricane Francine countered weaker demand from top oil importer China.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down 0.1%, with Talaat Mostafa Group (TMGH.CA), opens new tab losing 0.9%.
Sunday, 22 September 2024
The #UAE’s growth plan to boost ranks of Emiratis
The UAE’s growth plan to boost ranks of Emiratis
Emirati student Shaima lives in Abu Dhabi with her four siblings and parents. But she says her seven-person household is small — her father grew up alongside 11 brothers and sisters in the days when the region’s families were legendarily large.
Emirati student Shaima lives in Abu Dhabi with her four siblings and parents. But she says her seven-person household is small — her father grew up alongside 11 brothers and sisters in the days when the region’s families were legendarily large.
The generational downsizing in the 21-year-old’s family reflects a dramatic social shift across the United Arab Emirates: Emirati women bear about half the number of children their grandmothers did in 1970, with the fertility rate down from 6.7 per woman in 1970 to 3.7 by 2017, according to official data.
In a country that lures millions of migrant workers to power an economy that has grown at breakneck speed since the 1960s, the trend has prompted many Emiratis to worry that they belong to a dwindling minority in their own country — and spurred authorities to offer more support designed to encourage large families.
“Us Emiratis are a minority in our own country,” said Shaima, who called the trend “upsetting”. Expatriates form 93.5 per cent of the UAE population of about 9.5mn, according to the UN.
“Why is demographics a sensitive issue?” said William Guéraiche, associate professor at the University of Wollongong in Dubai. “Because this imbalance will grow between the Emiratis and foreigners, and Emiratis feel more and more under siege, rightly or not. But this is the general perception, and the authorities have to deal with that.”
The Emirati fertility rate, which government figures put at 3.2 in 2021, has halved in the past two decades, according to Luca Maria Pesando, associate professor of social research and public policy at NYU Abu Dhabi. He described the drop as “very fast for a demographic transition”.
MGM Resorts chief confirms applying for a gaming license in #AbuDhabi #UAE
MGM Resorts chief confirms applying for a gaming license in Abu Dhabi
MGM Resorts chief Bill Hornbuckle has confirmed the casino operator has applied for a gaming license in the UAE, while speaking at the Skift Global Forum 2024 on Thursday.
“Yes, we have [applied]. We’ve done it in Abu Dhabi,” Hornbuckle said, according to Skift. “The way it will work is the federal government in Abu Dhabi will approve it, we’ve applied for it and hopefully we’ll win the license there.”
Hornbuckle added: “I hope and believe this year we’ll understand more about Abu Dhabi and the federal mandate and go from there.”
The most recent comments made by the MGM President and CEO follow on from his statement in February on the FY 2023 earnings call, where he stressed Abu Dhabi was their top choice for a potential gaming license.
MGM Resorts chief Bill Hornbuckle has confirmed the casino operator has applied for a gaming license in the UAE, while speaking at the Skift Global Forum 2024 on Thursday.
“Yes, we have [applied]. We’ve done it in Abu Dhabi,” Hornbuckle said, according to Skift. “The way it will work is the federal government in Abu Dhabi will approve it, we’ve applied for it and hopefully we’ll win the license there.”
Hornbuckle added: “I hope and believe this year we’ll understand more about Abu Dhabi and the federal mandate and go from there.”
The most recent comments made by the MGM President and CEO follow on from his statement in February on the FY 2023 earnings call, where he stressed Abu Dhabi was their top choice for a potential gaming license.
#Oman's OQEP to offer 25% stake in IPO, state news agency reports | Reuters
Oman's OQEP to offer 25% stake in IPO, state news agency reports | Reuters
Oman's OQEP exploration and production will offer 25% of its total issued share capital on Sept. 30, in what would be the Gulf region's biggest initial public offering (IPO) so far this year, a statement by OQEP said.
The IPO plans are part of a privatisation programme by the state-owned energy group OQ which is helping Oman to diversify its economy and cut its debt.
Valued at up to 3.120 billion rial ($8.13 billion), OQEP's offering is expected to raise up to $2.03 billion at the top of the price range, the company said.
The offering, which comprises a total of 2 billion shares, will be priced between 370 baisas (Bzs) and 390 Bzs per share, with the final price set through a bookbuilding exercise.
OQEP shares are expected to commence trading on Muscat Stock Exchange on or around Oct. 28, the company said.
Oman, a small non-OPEC oil producer, is following neighbouring Saudi Arabia and the United Arab Emirates (UAE) in pushing state-led listing programmes, including energy assets.
Oman's OQEP exploration and production will offer 25% of its total issued share capital on Sept. 30, in what would be the Gulf region's biggest initial public offering (IPO) so far this year, a statement by OQEP said.
The IPO plans are part of a privatisation programme by the state-owned energy group OQ which is helping Oman to diversify its economy and cut its debt.
Valued at up to 3.120 billion rial ($8.13 billion), OQEP's offering is expected to raise up to $2.03 billion at the top of the price range, the company said.
The offering, which comprises a total of 2 billion shares, will be priced between 370 baisas (Bzs) and 390 Bzs per share, with the final price set through a bookbuilding exercise.
OQEP shares are expected to commence trading on Muscat Stock Exchange on or around Oct. 28, the company said.
Oman, a small non-OPEC oil producer, is following neighbouring Saudi Arabia and the United Arab Emirates (UAE) in pushing state-led listing programmes, including energy assets.
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