Saudi Arabia: After Goldman (GS), Lazard (LAZ) to Set Up Mideast HQ in Riyadh - Bloomberg
Lazard Inc. became 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, months after larger rival Goldman Sachs Group Inc. secured a similar license.
The New York-based firm has received a so-called regional headquarters license from the Saudi Ministry of Investment, according to people familiar with the matter, who asked not to be identified as the information is private.
A Lazard spokesperson declined to comment.
The move is the latest sign that Wall Street banks are heeding the Saudi government’s warning that it would stop working with firms unless they established a regional HQ in the country.
Goldman Sachs became the first major financial institution to get the license in May, while Tokyo-headquartered Mizuho Financial Group Inc. followed suit in June, Bloomberg News reported earlier.
The Mideast has become a hotspot for investment bankers, driven by sovereign wealth fund deals and a booming market for new share sales. Lazard was financial adviser to ADES Holding Co. on its listing, the country’s largest IPO last year, and has been building up a team of bankers based in Riyadh.
It hired Wassim Al-Khatib as chief executive officer of its advisory business for Middle East and North Africa in January 2023. That appointment came months after the firm named Saudi stock exchange chairperson Sarah Al-Suhaimi as the chair of the unit.
Competitors including Rothschild & Co. and Moelis & Co. have also opened offices in Riyadh to tap into one of the region’s busiest markets, though they haven’t yet secured HQ licenses.
Saudi Arabia announced new regulations for state contracts in 2021, saying it wanted to limit “economic leakage” — a term used by the government for state spending that can benefit firms that don’t have a substantial presence in the country.
Under the rules that came into force this year, firms must have a regional base in Saudi Arabia with at least 15 employees, including executives overseeing other countries or risk losing business with the kingdom’s vast network of government entities.
Thursday 19 September 2024
#UAE President Looks to Put Economics Before Geopolitics in Washington Trip - Bloomberg
UAE President Looks to Put Economics Before Geopolitics in Washington Trip - Bloomberg
United Arab Emirates President Sheikh Mohammed bin Zayed will prioritize talks on economic ties ahead of geopolitics during his first trip to Washington as the country’s ruler.
The leader widely known as MBZ will next week hold discussions with President Joe Biden and Vice President Kamala Harris, the Democratic nominee contesting November’s election. His trip will include meetings with key leaders on Capitol Hill as well as executives of large US-based firms.
“Sometimes people like to talk about some tensions in the relationship but the big story is that this is our most important strategic” alliance, Anwar Gargash, diplomatic advisor to the UAE’s president, said in a briefing with journalists in Dubai on Thursday.
The trip to Washington is in line with what the energy-rich nation has been trying to achieve since stepping back from the recent civil war in Yemen, which includes focusing on economic ties, he said.
“A lot of the things that the UAE is doing today is with the perspective that the economy comes first,” Gargash said.
Still, the UAE can’t ignore the upheaval caused by the war between Israel and Hamas in Gaza, which is approaching its first anniversary, he said. That conflict is now spreading to Lebanon, where Israel has stepped up hostilities against Hezbollah, another militant group.
Both Hezbollah and Hamas are backed by Iran and considered terrorist organizations by the US.
Abu Dhabi has been involved in efforts to secure a cease-fire without being one of the chief mediators. The Gulf country has focused on humanitarian aid efforts inside Gaza and by its borders, spending hundreds of millions of dollars.
While MBZ and Biden will likely discuss the developing situation in Middle East, the UAE’s main goal is to bring up partnerships in artificial intelligence and in technology, Gargash said.
Earlier this year, Microsoft Corp. invested $1.5 billion in the UAE’s top AI firm, G42, after the Abu Dhabi-based company worked out an unusual deal with the US government to end any cooperation with China. The firms are establishing two centers in the Gulf state focused on developing best practices and industry standards for the responsible use of the industry.
When it comes to technology, “we have the finances,” Gargash said. “A lot of these AI projects and others need large pools of finance.”
United Arab Emirates President Sheikh Mohammed bin Zayed will prioritize talks on economic ties ahead of geopolitics during his first trip to Washington as the country’s ruler.
The leader widely known as MBZ will next week hold discussions with President Joe Biden and Vice President Kamala Harris, the Democratic nominee contesting November’s election. His trip will include meetings with key leaders on Capitol Hill as well as executives of large US-based firms.
“Sometimes people like to talk about some tensions in the relationship but the big story is that this is our most important strategic” alliance, Anwar Gargash, diplomatic advisor to the UAE’s president, said in a briefing with journalists in Dubai on Thursday.
The trip to Washington is in line with what the energy-rich nation has been trying to achieve since stepping back from the recent civil war in Yemen, which includes focusing on economic ties, he said.
“A lot of the things that the UAE is doing today is with the perspective that the economy comes first,” Gargash said.
Still, the UAE can’t ignore the upheaval caused by the war between Israel and Hamas in Gaza, which is approaching its first anniversary, he said. That conflict is now spreading to Lebanon, where Israel has stepped up hostilities against Hezbollah, another militant group.
Both Hezbollah and Hamas are backed by Iran and considered terrorist organizations by the US.
Abu Dhabi has been involved in efforts to secure a cease-fire without being one of the chief mediators. The Gulf country has focused on humanitarian aid efforts inside Gaza and by its borders, spending hundreds of millions of dollars.
While MBZ and Biden will likely discuss the developing situation in Middle East, the UAE’s main goal is to bring up partnerships in artificial intelligence and in technology, Gargash said.
Earlier this year, Microsoft Corp. invested $1.5 billion in the UAE’s top AI firm, G42, after the Abu Dhabi-based company worked out an unusual deal with the US government to end any cooperation with China. The firms are establishing two centers in the Gulf state focused on developing best practices and industry standards for the responsible use of the industry.
When it comes to technology, “we have the finances,” Gargash said. “A lot of these AI projects and others need large pools of finance.”
#SaudiArabia Targets Control of Alba to Bolster Metals Ambitions - Bloomberg
Saudi Arabia Targets Control of Alba to Bolster Metals Ambitions - Bloomberg
Saudi Arabia aims to gain control of Bahrain’s aluminum smelter, furthering its plan for mining and metals to become a “third pillar” of the kingdom’s economy.
State-controlled Saudi Arabian Mining Co., known as Maaden, announced a series of deals this week involving Aluminium Bahrain B.S.C., or Alba. When those deals close, the Saudi company “hopes to be a majority shareholder in Alba,” Maaden Chief Executive Officer Bob Wilt said in an interview in Riyadh.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman has put metals at the center of his Vision 2030, with Maaden tasked with growing the domestic industry. Maaden is targeting Alba as part of a bet that aluminum will prove crucial to both the energy transition and the oil-rich kingdom’s plans to diversify its economy.
“I’m very bullish on aluminum,” Wilt said. “The energy transition doesn’t happen without aluminum, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
The deals announced over the past few days include Maaden acquiring a 21% stake in Alba from Saudi Basic Industries Corp. for over $1 billion. Maaden is also set to be issued new shares in Alba in exchange for its Saudi aluminum assets under a proposed merger agreement with the Bahrain firm. Maaden’s final stake in Alba will depend on due diligence, Wilt said.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminum production, the CEO said.
As part of Saudi’s metals and mining drive, Maaden has also partnered with the kingdom’s powerful sovereign wealth fund to create Manara Minerals, an investment vehicle to buy up overseas assets. Manara’s first deal was snapping up a 10% stake in Vale SA’s base metals business.
After that “the phones started ringing and everybody’s interested” in Saudi Arabia’s metals plans, said Wilt, who is also acting CEO of Manara. “The world sees that Saudi Arabia is serious about making investments globally in mining assets and resources.”
For its next deal, Manara’s priority is getting more access to copper, Wilt said.
Manara was among the suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, people familiar told Bloomberg in April. The firm is also in talks to acquire a stake in a Pakistan copper and gold mining project, Bloomberg reported the same month.
Saudi Arabia aims to gain control of Bahrain’s aluminum smelter, furthering its plan for mining and metals to become a “third pillar” of the kingdom’s economy.
State-controlled Saudi Arabian Mining Co., known as Maaden, announced a series of deals this week involving Aluminium Bahrain B.S.C., or Alba. When those deals close, the Saudi company “hopes to be a majority shareholder in Alba,” Maaden Chief Executive Officer Bob Wilt said in an interview in Riyadh.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman has put metals at the center of his Vision 2030, with Maaden tasked with growing the domestic industry. Maaden is targeting Alba as part of a bet that aluminum will prove crucial to both the energy transition and the oil-rich kingdom’s plans to diversify its economy.
“I’m very bullish on aluminum,” Wilt said. “The energy transition doesn’t happen without aluminum, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
The deals announced over the past few days include Maaden acquiring a 21% stake in Alba from Saudi Basic Industries Corp. for over $1 billion. Maaden is also set to be issued new shares in Alba in exchange for its Saudi aluminum assets under a proposed merger agreement with the Bahrain firm. Maaden’s final stake in Alba will depend on due diligence, Wilt said.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminum production, the CEO said.
As part of Saudi’s metals and mining drive, Maaden has also partnered with the kingdom’s powerful sovereign wealth fund to create Manara Minerals, an investment vehicle to buy up overseas assets. Manara’s first deal was snapping up a 10% stake in Vale SA’s base metals business.
After that “the phones started ringing and everybody’s interested” in Saudi Arabia’s metals plans, said Wilt, who is also acting CEO of Manara. “The world sees that Saudi Arabia is serious about making investments globally in mining assets and resources.”
For its next deal, Manara’s priority is getting more access to copper, Wilt said.
Manara was among the suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, people familiar told Bloomberg in April. The firm is also in talks to acquire a stake in a Pakistan copper and gold mining project, Bloomberg reported the same month.
Most Gulf markets in black after central banks cut rates mirroring Fed | Reuters
Most Gulf markets in black after central banks cut rates mirroring Fed | Reuters
Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the U.S. Federal Reserve.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.3%, boosted by a 2% jump in Al Rajhi Bank (1120.SE), opens new tab.
The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.
Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose after the Fed's rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand
Dubai's main share index (.DFMGI), opens new tab added 0.7%, led by a 1.2% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.8% higher.
The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab concluded 0.6% higher, as most of its constituents were in positive territory including Qatar National Bank (QNBK.QA), opens new tab, which was up 2%.
Qatar's central bank cut key interest rates by 55 basis points on Wednesday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2%, with Commercial International Bank Egypt (COMI.CA), opens new tab increasing 1.8%.
Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the U.S. Federal Reserve.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.3%, boosted by a 2% jump in Al Rajhi Bank (1120.SE), opens new tab.
The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.
Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose after the Fed's rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand
Dubai's main share index (.DFMGI), opens new tab added 0.7%, led by a 1.2% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.8% higher.
The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab concluded 0.6% higher, as most of its constituents were in positive territory including Qatar National Bank (QNBK.QA), opens new tab, which was up 2%.
Qatar's central bank cut key interest rates by 55 basis points on Wednesday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2%, with Commercial International Bank Egypt (COMI.CA), opens new tab increasing 1.8%.
Wednesday 18 September 2024
EU to Seek Trade Pact with #UAE as Talks with Gulf Region Stall - Bloomberg
EU to Seek Trade Pact with UAE as Talks with Gulf Region Stall - Bloomberg
The European Union is considering working toward a trade deal with the United Arab Emirates as the 27-member bloc seeks to cooperate more with the Gulf states on issues including energy and security.
The European Commission, the EU’s executive arm, considers bilateral deals with individual countries in the area more feasible after efforts to clinch a region-to-region accord with the Gulf Cooperation Council — which includes the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait — have stalled, according to people familiar with the plans.
Leaders from the EU and the GCC will meet in Brussels on Oct. 16 to step up cooperation on issues affecting regional security and stability and to discuss challenges to the global economy.
“It’s an important moment for the relationship between Europe and the Gulf countries,” the EU’s foreign policy chief, Josep Borrell, said in Dubai this week. “We have been talking quite a long time about the trade relationship between the EU and the Gulf and this can be considered region-to-region or it can be considered through bilateral agreements.”
Borrell added that due to the difficulties of reaching a broad agreement that includes all the GCC nations, the members may be interested in pursuing bilateral accords.
In spite of the renewed interest, a deal between the EU and the UAE would face challenges, namely finding an arrangement that wouldn’t alienate other countries in the Gulf region, according to a UAE official, who spoke on the condition of anonymity.
There have been various attempts to reach a trade agreement with the GCC since the talks started in 1990, but all the efforts failed to bear fruit. Against this backdrop, the commission has proposed to its member states to explore bilateral deals, primarily with the UAE, said the people.
The commission and member states, however, are concerned about upsetting other nations such as Saudi Arabia, which prefer to strike a regional deal, said the people.
The bloc sees bilateral trade deals as a stepping stone toward a regional agreement down the road if the conditions are met, the people said. And for those nations who would not seek the ambition of a trade deal, the EU is ready to explore strategic partnership agreements to improve relations on topics such as climate, security, digital or innovation.
The leaders at the summit will also discuss the clean transition and cooperation on energy, security, migration, among other topics, said the people. They’ll also likely broach human rights, the fight against money laundering, sanction circumvention and Russia’s invasion of Ukraine.
The European Union is considering working toward a trade deal with the United Arab Emirates as the 27-member bloc seeks to cooperate more with the Gulf states on issues including energy and security.
The European Commission, the EU’s executive arm, considers bilateral deals with individual countries in the area more feasible after efforts to clinch a region-to-region accord with the Gulf Cooperation Council — which includes the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait — have stalled, according to people familiar with the plans.
Leaders from the EU and the GCC will meet in Brussels on Oct. 16 to step up cooperation on issues affecting regional security and stability and to discuss challenges to the global economy.
“It’s an important moment for the relationship between Europe and the Gulf countries,” the EU’s foreign policy chief, Josep Borrell, said in Dubai this week. “We have been talking quite a long time about the trade relationship between the EU and the Gulf and this can be considered region-to-region or it can be considered through bilateral agreements.”
Borrell added that due to the difficulties of reaching a broad agreement that includes all the GCC nations, the members may be interested in pursuing bilateral accords.
In spite of the renewed interest, a deal between the EU and the UAE would face challenges, namely finding an arrangement that wouldn’t alienate other countries in the Gulf region, according to a UAE official, who spoke on the condition of anonymity.
There have been various attempts to reach a trade agreement with the GCC since the talks started in 1990, but all the efforts failed to bear fruit. Against this backdrop, the commission has proposed to its member states to explore bilateral deals, primarily with the UAE, said the people.
The commission and member states, however, are concerned about upsetting other nations such as Saudi Arabia, which prefer to strike a regional deal, said the people.
The bloc sees bilateral trade deals as a stepping stone toward a regional agreement down the road if the conditions are met, the people said. And for those nations who would not seek the ambition of a trade deal, the EU is ready to explore strategic partnership agreements to improve relations on topics such as climate, security, digital or innovation.
The leaders at the summit will also discuss the clean transition and cooperation on energy, security, migration, among other topics, said the people. They’ll also likely broach human rights, the fight against money laundering, sanction circumvention and Russia’s invasion of Ukraine.
Gulf markets end mixed ahead of Fed's rate decision | Reuters
Gulf markets end mixed ahead of Fed's rate decision | Reuters
Most stock markets in the Gulf were mixed on Wednesday as some caution crept in over the size of an expected U.S. interest-rate cut in the Federal Reserve's monetary policy announcement later in the day.
A 50-basis-point rate cut, as expected by investors, will be key in further driving global risk appetite. However, economists favouring a 25-bps cut argue that the current state of the U.S. economy doesn't warrant a bigger move.
Market expectations on the size of a U.S. rate cut have been volatile of late, with only a 14% chance of a 50-bps cut priced in as of exactly a week ago, according to CME's FedWatch Tool.
The Fed will detail its September rate verdict at 1800 GMT.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 4.3% increase in Saudi Awwal Bank (1060.SE), opens new tab.
The Saudi market is seeing the start of Arabian Mills' initial public offering, following the successful IPO of Al Majed Oud, said Joseph Dahrieh, Managing Principal at Tickmill.
"The strong IPO activity is expected to boost liquidity, attract investors, and help diversify the market, potentially stimulating economic growth and encouraging more listings."
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower.
Oil - a catalyst for the Gulf's financial markets - fell after two sessions of gains after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.S. interest rate cut.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab 0.6%, with Ezz Steel Co (ESRS.CA), opens new tab advancing 9.1%.
Most stock markets in the Gulf were mixed on Wednesday as some caution crept in over the size of an expected U.S. interest-rate cut in the Federal Reserve's monetary policy announcement later in the day.
A 50-basis-point rate cut, as expected by investors, will be key in further driving global risk appetite. However, economists favouring a 25-bps cut argue that the current state of the U.S. economy doesn't warrant a bigger move.
Market expectations on the size of a U.S. rate cut have been volatile of late, with only a 14% chance of a 50-bps cut priced in as of exactly a week ago, according to CME's FedWatch Tool.
The Fed will detail its September rate verdict at 1800 GMT.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 4.3% increase in Saudi Awwal Bank (1060.SE), opens new tab.
The Saudi market is seeing the start of Arabian Mills' initial public offering, following the successful IPO of Al Majed Oud, said Joseph Dahrieh, Managing Principal at Tickmill.
"The strong IPO activity is expected to boost liquidity, attract investors, and help diversify the market, potentially stimulating economic growth and encouraging more listings."
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower.
Oil - a catalyst for the Gulf's financial markets - fell after two sessions of gains after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.S. interest rate cut.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab 0.6%, with Ezz Steel Co (ESRS.CA), opens new tab advancing 9.1%.
Paul Taubman’s PJT Buys DeNovo to Cash In on Mideast Deals Boom - Bloomberg
Paul Taubman’s PJT Buys DeNovo to Cash In on Mideast Deals Boom - Bloomberg
PJT Partners agreed to acquire Dubai-based advisory firm deNovo Partners, giving Paul Taubman’s investment bank a greater foothold in the Middle East amid a surge in regional dealmaking activity.
The deal brings together two Morgan Stanley alumni: Taubman set up PJT about a decade ago after 30 years at the firm. Meantime, deNovo was founded in 2010 by May Nasrallah, who worked at the Wall Street Bank for 15 years and is regarded as one of the Middle East’s most seasoned dealmakers.
She will continue leading the Middle East franchise, overseeing key regional clients and join PJT’s senior team.
The firms didn’t disclose financial details of the deal, which is subject to regulatory approvals and expected to close in October, according to a statement.
The move will allow New York-based PJT to expand its global footprint, working both with clients in the Middle East and those based elsewhere with business interests in the region, said Taubman, who is the firm’s chairman and chief executive officer.
The deal marks just the second acquisition for the US firm, which was spun off from Blackstone. PJT has been enjoying bumper revenue for its work helping struggling firms restructure in recent months. The investment bank has said it expects its restructuring activity to remain high and approach last year’s record.
PJT and deNovo have previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
The combination comes amid a surge in investment banking activity in the Gulf. There’s been a flurry of outbound deals and initial public offerings in recent years, especially in Saudi Arabia and the United Arab Emirates, where governments are spending billions to diversify their economies and deepen capital markets.
In the first half of this year alone, Middle Eastern sovereign wealth funds accounted for more than half the value of all deals done by global state-backed investors, according to consultancy Global SWF.
Global advisory firms including Rothschild & Co. and Moelis & Co. have been adding staff or opening offices in Abu Dhabi or Riyadh to grab a slice of that growing market. Their expansion coincides with the arrival of hedge funds, private equity firms and asset managers in the UAE, attracted by the ease of doing business and the presence of deep-pocketed sovereign funds.
Nasrallah was previously the head of Morgan Stanley’s investment bank in the region and helped establish its Dubai office.
She later set up deNovo, and through the years built it into one of most prominent independent advisory firms in the Gulf. The boutique now has a team of about 20 bankers, predominantly based in Dubai’s financial center, and recently acquired a license to operate in Saudi Arabia’s capital Riyadh.
The firm has already advised on several high-profile deals this year — a multi-billion agreement involving one of the world’s largest school operators, GEMS Education, and an investment by T.J. Maxx’s owner in Dubai’s Brands for Less.
PJT Partners agreed to acquire Dubai-based advisory firm deNovo Partners, giving Paul Taubman’s investment bank a greater foothold in the Middle East amid a surge in regional dealmaking activity.
The deal brings together two Morgan Stanley alumni: Taubman set up PJT about a decade ago after 30 years at the firm. Meantime, deNovo was founded in 2010 by May Nasrallah, who worked at the Wall Street Bank for 15 years and is regarded as one of the Middle East’s most seasoned dealmakers.
She will continue leading the Middle East franchise, overseeing key regional clients and join PJT’s senior team.
The firms didn’t disclose financial details of the deal, which is subject to regulatory approvals and expected to close in October, according to a statement.
The move will allow New York-based PJT to expand its global footprint, working both with clients in the Middle East and those based elsewhere with business interests in the region, said Taubman, who is the firm’s chairman and chief executive officer.
The deal marks just the second acquisition for the US firm, which was spun off from Blackstone. PJT has been enjoying bumper revenue for its work helping struggling firms restructure in recent months. The investment bank has said it expects its restructuring activity to remain high and approach last year’s record.
PJT and deNovo have previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
The combination comes amid a surge in investment banking activity in the Gulf. There’s been a flurry of outbound deals and initial public offerings in recent years, especially in Saudi Arabia and the United Arab Emirates, where governments are spending billions to diversify their economies and deepen capital markets.
In the first half of this year alone, Middle Eastern sovereign wealth funds accounted for more than half the value of all deals done by global state-backed investors, according to consultancy Global SWF.
Global advisory firms including Rothschild & Co. and Moelis & Co. have been adding staff or opening offices in Abu Dhabi or Riyadh to grab a slice of that growing market. Their expansion coincides with the arrival of hedge funds, private equity firms and asset managers in the UAE, attracted by the ease of doing business and the presence of deep-pocketed sovereign funds.
Nasrallah was previously the head of Morgan Stanley’s investment bank in the region and helped establish its Dubai office.
She later set up deNovo, and through the years built it into one of most prominent independent advisory firms in the Gulf. The boutique now has a team of about 20 bankers, predominantly based in Dubai’s financial center, and recently acquired a license to operate in Saudi Arabia’s capital Riyadh.
The firm has already advised on several high-profile deals this year — a multi-billion agreement involving one of the world’s largest school operators, GEMS Education, and an investment by T.J. Maxx’s owner in Dubai’s Brands for Less.
Japan, United Arab Emirates to enter economic partnership talks | Reuters #UAE
Japan, United Arab Emirates to enter economic partnership talks | Reuters
Japan will start negotiations for an economic partnership agreement with the United Arab Emirates, Prime Minister Fumio Kishida said in a post on X.
The conclusion of the pact with the UAE, coupled with another free trade agreement between Japan and the Gulf Cooperation Council that will also be negotiated, would "strengthen economic relations between the two countries", Kishida said.
UAE President Sheikh Mohamed bin Zayed Al Nahyan said on X that the comprehensive trade pact with Japan would be built on "our longstanding history of strategic cooperation".
Japan and the UAE last year agreed to cooperate on technology and climate change, including energy security and investments in chip and battery sectors.
Japan will start negotiations for an economic partnership agreement with the United Arab Emirates, Prime Minister Fumio Kishida said in a post on X.
The conclusion of the pact with the UAE, coupled with another free trade agreement between Japan and the Gulf Cooperation Council that will also be negotiated, would "strengthen economic relations between the two countries", Kishida said.
UAE President Sheikh Mohamed bin Zayed Al Nahyan said on X that the comprehensive trade pact with Japan would be built on "our longstanding history of strategic cooperation".
Japan and the UAE last year agreed to cooperate on technology and climate change, including energy security and investments in chip and battery sectors.
Tuesday 17 September 2024
#SaudiArabia Strikes $1 Billion Deal as Aluminum Drive Picks Up - Bloomberg
Saudi Arabia Strikes $1 Billion Deal as Aluminum Drive Picks Up - Bloomberg
Saudi Arabia has announced three deals in as many days as the oil-rich kingdom looks to accelerate the expansion of its metals and mining industry.
On Tuesday, Saudi Arabian Mining Co., known as Maaden, said it was buying a 21% stake in Aluminium Bahrain B.S.C. from a Saudi Basic Industries Corp. in a deal worth more than $1 billion. That essentially moves the holding from one state-backed company to another, but it’s also another step toward consolidating the aluminum operations of Bahrain and Saudi Arabia in an enlarged entity that will have Maaden as a major shareholder.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, has laid out plans for mining and metals to be the so-called “third pillar” of the economy in Vision 2030. That’s being driven by Manara Minerals — which is snapping up overseas assets including 10% of Vale SA’s base metals business — while Maaden has been tasked with growing the domestic industry.
The latest Maaden deal follows closely on two others that have the potential to reshape Saudi Arabia’s influence on the global aluminum trade at a time when Russia’s invasion of Ukraine — as well as supply-chain bottlenecks — are already roiling global markets.
On Sunday, Maaden bought out long-term partner Alcoa Corp. from two aluminum plants in the kingdom, handing over $1.1 billion in cash and stock for the stakes. The logic for the deal soon became apparent, when the following day Maaden said it was exploring a merger of its aluminum assets with Aluminium Bahrain B.S.C., known as Alba.
Maaden said it’s pursuing the deal with Alba that would see it sell its aluminum, bauxite and alumina units to the Bahrain company in exchange for shares in the combined entity.
The companies also agreed to seek a cross-listing of Alba shares on the Saudi stock exchange. The companies signed non-binding heads of terms, and the proposal is pending regulatory approvals.
“This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy,” Maaden Chief Executive Officer Bob Wilt said.
Maaden and Alba have become major players in the global aluminum industry in recent years, particularly in value-added products that have historically been dominated by a handful of suppliers. The expanded company would be one of the world’s biggest aluminum producers.
Saudi Arabia has announced three deals in as many days as the oil-rich kingdom looks to accelerate the expansion of its metals and mining industry.
On Tuesday, Saudi Arabian Mining Co., known as Maaden, said it was buying a 21% stake in Aluminium Bahrain B.S.C. from a Saudi Basic Industries Corp. in a deal worth more than $1 billion. That essentially moves the holding from one state-backed company to another, but it’s also another step toward consolidating the aluminum operations of Bahrain and Saudi Arabia in an enlarged entity that will have Maaden as a major shareholder.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, has laid out plans for mining and metals to be the so-called “third pillar” of the economy in Vision 2030. That’s being driven by Manara Minerals — which is snapping up overseas assets including 10% of Vale SA’s base metals business — while Maaden has been tasked with growing the domestic industry.
The latest Maaden deal follows closely on two others that have the potential to reshape Saudi Arabia’s influence on the global aluminum trade at a time when Russia’s invasion of Ukraine — as well as supply-chain bottlenecks — are already roiling global markets.
On Sunday, Maaden bought out long-term partner Alcoa Corp. from two aluminum plants in the kingdom, handing over $1.1 billion in cash and stock for the stakes. The logic for the deal soon became apparent, when the following day Maaden said it was exploring a merger of its aluminum assets with Aluminium Bahrain B.S.C., known as Alba.
Maaden said it’s pursuing the deal with Alba that would see it sell its aluminum, bauxite and alumina units to the Bahrain company in exchange for shares in the combined entity.
The companies also agreed to seek a cross-listing of Alba shares on the Saudi stock exchange. The companies signed non-binding heads of terms, and the proposal is pending regulatory approvals.
“This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy,” Maaden Chief Executive Officer Bob Wilt said.
Maaden and Alba have become major players in the global aluminum industry in recent years, particularly in value-added products that have historically been dominated by a handful of suppliers. The expanded company would be one of the world’s biggest aluminum producers.
Microsoft, #UAE's AI firm G42 to set up two new centres in #AbuDhabi | Reuters
Microsoft, UAE's AI firm G42 to set up two new centres in Abu Dhabi | Reuters
Microsoft (MSFT.O), opens new tab and United Arab Emirates-based artificial intelligence company G42 will open two centres in Abu Dhabi to work on "responsible" AI initiatives, the companies said on Tuesday.
The UAE, led by government-backed firm G42, is striving to become a global leader in AI and is investing heavily in it to diversify away from oil.
The push comes amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States, as well as Washington's concerns over deepening ties between China and Gulf states over potential technology transfers to Beijing.
The companies said the deal built on their April partnership, under which Microsoft is investing $1.5 billion in the Emirati firm.
The first centre will bring together academic researchers and AI practitioners from the private sector to develop and share best practices in responsible AI.
The other centre will focus on tasks including developing large language models - computer programs that draw from vast amounts of text to generate responses to queries - for "underrepresented languages".
Abu Dhabi sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake hold stakes in G42, whose chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE's national security advisor and the president's brother.
G42 said earlier this year it had divested its investments in China and at the time of the Microsoft partnership, both firms noted that the deal was backed by assurances to the U.S. and UAE governments over security.
Microsoft and G42 said on Tuesday the centres will work to ensure "generative AI models and applications are developed, deployed and used safely."
G42 and its affiliates do not conduct business with any entity listed on a U.S. government list of parties for which Washington maintains restrictions on certain exports, re-exports, or transfers of items, the firms said.
Microsoft (MSFT.O), opens new tab and United Arab Emirates-based artificial intelligence company G42 will open two centres in Abu Dhabi to work on "responsible" AI initiatives, the companies said on Tuesday.
The UAE, led by government-backed firm G42, is striving to become a global leader in AI and is investing heavily in it to diversify away from oil.
The push comes amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States, as well as Washington's concerns over deepening ties between China and Gulf states over potential technology transfers to Beijing.
The companies said the deal built on their April partnership, under which Microsoft is investing $1.5 billion in the Emirati firm.
The first centre will bring together academic researchers and AI practitioners from the private sector to develop and share best practices in responsible AI.
The other centre will focus on tasks including developing large language models - computer programs that draw from vast amounts of text to generate responses to queries - for "underrepresented languages".
Abu Dhabi sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake hold stakes in G42, whose chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE's national security advisor and the president's brother.
G42 said earlier this year it had divested its investments in China and at the time of the Microsoft partnership, both firms noted that the deal was backed by assurances to the U.S. and UAE governments over security.
Microsoft and G42 said on Tuesday the centres will work to ensure "generative AI models and applications are developed, deployed and used safely."
G42 and its affiliates do not conduct business with any entity listed on a U.S. government list of parties for which Washington maintains restrictions on certain exports, re-exports, or transfers of items, the firms said.
Most Gulf markets retreat ahead of Fed rate cut decision | Reuters
Most Gulf markets retreat ahead of Fed rate cut decision | Reuters
Most stock markets in the Gulf ended lower on Tuesday, ahead of the U.S. interest rate decision that traders are betting may start with an outsized cut.
Investors remain solely focused on the Federal Reserve's two-day policy meeting that concludes on Wednesday, as chances have crept up in the past week in favour of a 50-basis-point rate cut.
Markets are now pricing in a 65% chance of a 50-basis-point cut versus 34% a week ago after media reports revived the prospect of more aggressive easing.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, while Qatar Islamic Bank (QISB.QA), opens new tab and sharia-compliant lender Masraf Al Rayan (MARK.QA), opens new tab declined 1% each.
Investors exercised caution, engaging in profit-taking ahead of the Fed's rate decision, said Milad Azar, market analyst at XTB MENA.
Dubai's main share index (.DFMGI), opens new tab finished flat.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, helped by a 3.1% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
According to analyst Azar, the potential rate cut by the Fed is expected to positively impact market sentiment, as it may prompt the Saudi central bank to adopt similar measures to enhance business conditions.
"Additionally, oil prices continue to play a definitive role in market performance."
Among other gainers, Saudi Arabian Mining Company (Ma'aden) (1211.SE), opens new tab jumped 6.6%, a day after it signed a non-binding agreement with Aluminium Bahrain (Alba) (ALBH.BH), opens new tab to pursue a potential business combination that would create a global powerhouse.
On Sunday, U.S.-based aluminium maker Alcoa said it would sell a 25.1% stake in its joint venture with Ma'aden to the company for about $1.1 billion in cash and stock.
In Bahrain, the index (.BAX), opens new tab advanced 3.8%, buoyed by a 20% surge in Alba.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.3%, with Commercial International Bank (COMI.CA), opens new tab losing 0.5%.
Most stock markets in the Gulf ended lower on Tuesday, ahead of the U.S. interest rate decision that traders are betting may start with an outsized cut.
Investors remain solely focused on the Federal Reserve's two-day policy meeting that concludes on Wednesday, as chances have crept up in the past week in favour of a 50-basis-point rate cut.
Markets are now pricing in a 65% chance of a 50-basis-point cut versus 34% a week ago after media reports revived the prospect of more aggressive easing.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, while Qatar Islamic Bank (QISB.QA), opens new tab and sharia-compliant lender Masraf Al Rayan (MARK.QA), opens new tab declined 1% each.
Investors exercised caution, engaging in profit-taking ahead of the Fed's rate decision, said Milad Azar, market analyst at XTB MENA.
Dubai's main share index (.DFMGI), opens new tab finished flat.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, helped by a 3.1% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
According to analyst Azar, the potential rate cut by the Fed is expected to positively impact market sentiment, as it may prompt the Saudi central bank to adopt similar measures to enhance business conditions.
"Additionally, oil prices continue to play a definitive role in market performance."
Among other gainers, Saudi Arabian Mining Company (Ma'aden) (1211.SE), opens new tab jumped 6.6%, a day after it signed a non-binding agreement with Aluminium Bahrain (Alba) (ALBH.BH), opens new tab to pursue a potential business combination that would create a global powerhouse.
On Sunday, U.S.-based aluminium maker Alcoa said it would sell a 25.1% stake in its joint venture with Ma'aden to the company for about $1.1 billion in cash and stock.
In Bahrain, the index (.BAX), opens new tab advanced 3.8%, buoyed by a 20% surge in Alba.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.3%, with Commercial International Bank (COMI.CA), opens new tab losing 0.5%.
Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg
Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg
Port and logistics giant DP World is teaming up with Nedbank, a Johannesburg-based lender, to expand trade financing to small businesses facing working-capital challenges across sub-Saharan Africa.
According to the deal announced Tuesday, UAE-based DP World has launched a supply chain finance program on its platform. Nedbank acts a the financer, letting DP World’s suppliers in the region have access to early payments on approved receivables.
The goal of the partnership is to ease capital constraints for suppliers and provide a “more economical financing option” than existing market solutions, the companies said in a statement.
The bigger macroeconomic issue is addressing Africa’s estimated $80 billion to $120 billion trade financing gap. It’s only expected to widen as with more intra-regional commerce under the African Continental Free Trade Area. That pact will create the world’s biggest free-trade zone by area when it becomes fully operational by 2030.
Port and logistics giant DP World is teaming up with Nedbank, a Johannesburg-based lender, to expand trade financing to small businesses facing working-capital challenges across sub-Saharan Africa.
According to the deal announced Tuesday, UAE-based DP World has launched a supply chain finance program on its platform. Nedbank acts a the financer, letting DP World’s suppliers in the region have access to early payments on approved receivables.
The goal of the partnership is to ease capital constraints for suppliers and provide a “more economical financing option” than existing market solutions, the companies said in a statement.
The bigger macroeconomic issue is addressing Africa’s estimated $80 billion to $120 billion trade financing gap. It’s only expected to widen as with more intra-regional commerce under the African Continental Free Trade Area. That pact will create the world’s biggest free-trade zone by area when it becomes fully operational by 2030.
Egypt Says #SaudiArabia Wealth Fund Set to Invest $5 Billion - Bloomberg
Egypt Says Saudi Arabia Wealth Fund Set to Invest $5 Billion - Bloomberg
Egypt said Saudi Arabia’s sovereign wealth fund is poised to invest $5 billion, in what would be the latest Gulf funding for the North African nation that’s emerging from its worst economic crisis in decades.
The kingdom’s crown prince ordered the Public Investment Fund to take the step as a “first phase” of new Saudi investment, Egypt’s cabinet said late Monday in a statement. It didn’t give a timeframe nor say what the funds would be invested in.
The announcement followed meetings in the Saudi capital Riyadh between Egyptian Prime Minister Mostafa Madbouly and both Crown Prince Mohammed bin Salman and Saudi investment minister Khalid Al-Falih.
Gulf countries are a key source of investment for Egypt, which is coming out of two years of turmoil after securing a $57 billion global bailout led by the International Monetary Fund and United Arab Emirates. The UAE provided a mammoth $35 billion in a deal that included development rights for a prime spot of Mediterranean beachfront.
It wasn’t immediately clear if the Saudi funds would be fresh money. In the early days of Egypt’s foreign currency crunch in March 2022, Saudi Arabia deposited $5 billion in the country’s central bank and pledged $10 billion in investments. The PIF set up a new company to invest in Egypt, but the deals that have materialized so far have only totaled about $1.3 billion.
It’s possible the deal could see those existing Saudi deposits converted into investments. The UAE’s megadeal announced in March included $11 billion already held at Egypt’s central bank.
Saudi Arabia may also be eyeing developing a stretch of Red Sea coastline, having shown preliminary interest in Ras Gamila, a spot in southern Sinai.
Madbouly said in televised comments in Riyadh on Monday that Egypt was working to resolve a series of disputes with Saudi companies by the end of this year. He didn’t give details on the issues or firms involved.
Egypt said Saudi Arabia’s sovereign wealth fund is poised to invest $5 billion, in what would be the latest Gulf funding for the North African nation that’s emerging from its worst economic crisis in decades.
The kingdom’s crown prince ordered the Public Investment Fund to take the step as a “first phase” of new Saudi investment, Egypt’s cabinet said late Monday in a statement. It didn’t give a timeframe nor say what the funds would be invested in.
The announcement followed meetings in the Saudi capital Riyadh between Egyptian Prime Minister Mostafa Madbouly and both Crown Prince Mohammed bin Salman and Saudi investment minister Khalid Al-Falih.
Gulf countries are a key source of investment for Egypt, which is coming out of two years of turmoil after securing a $57 billion global bailout led by the International Monetary Fund and United Arab Emirates. The UAE provided a mammoth $35 billion in a deal that included development rights for a prime spot of Mediterranean beachfront.
It wasn’t immediately clear if the Saudi funds would be fresh money. In the early days of Egypt’s foreign currency crunch in March 2022, Saudi Arabia deposited $5 billion in the country’s central bank and pledged $10 billion in investments. The PIF set up a new company to invest in Egypt, but the deals that have materialized so far have only totaled about $1.3 billion.
It’s possible the deal could see those existing Saudi deposits converted into investments. The UAE’s megadeal announced in March included $11 billion already held at Egypt’s central bank.
Saudi Arabia may also be eyeing developing a stretch of Red Sea coastline, having shown preliminary interest in Ras Gamila, a spot in southern Sinai.
Madbouly said in televised comments in Riyadh on Monday that Egypt was working to resolve a series of disputes with Saudi companies by the end of this year. He didn’t give details on the issues or firms involved.
Australia reaches trade deal with #UAE to boost agriculture exports, investment | Reuters
Australia reaches trade deal with UAE to boost agriculture exports, investment | Reuters
Australia said on Tuesday it had reached a trade deal with the United Arab Emirates that would remove tariffs for about 99% of Australian products, and result in savings of A$135 million ($91 million) in the first year.
The UAE is Australia's largest trade and investment partner in the Middle East with bilateral trade worth A$9.9 billion last year, while two-way investment totalled A$20.6 billion.
"Under this trade agreement, Aussie exports are expected to increase by A$678 million per year, but this deal means more for Australia than just numbers," Trade Minister Don Farrell said.
The deal includes a framework to boost investment by Abu Dhabi in critical minerals, while the mining industry will benefit with tariff cuts on alumina exports, Farrell said in a statement.
UAE Minister of Foreign Trade Thani Al Zeyoudi said in a post on X that both countries had agreed the terms of a Comprehensive Economic Partnership Agreement that "will secure a new era of cooperation and opportunity".
Australia's top exports to the UAE include meat, dairy, oil seeds, seafood, steel, nuts, honey, coal, chickpeas and lentils.
The deal is expected to become effective later this year.
The Australian Meat Industry Council welcomed the trade deal and said it would offer farmers greater access to a vital market for Australian beef, lamb, and goat meat.
Australia said on Tuesday it had reached a trade deal with the United Arab Emirates that would remove tariffs for about 99% of Australian products, and result in savings of A$135 million ($91 million) in the first year.
The UAE is Australia's largest trade and investment partner in the Middle East with bilateral trade worth A$9.9 billion last year, while two-way investment totalled A$20.6 billion.
"Under this trade agreement, Aussie exports are expected to increase by A$678 million per year, but this deal means more for Australia than just numbers," Trade Minister Don Farrell said.
The deal includes a framework to boost investment by Abu Dhabi in critical minerals, while the mining industry will benefit with tariff cuts on alumina exports, Farrell said in a statement.
UAE Minister of Foreign Trade Thani Al Zeyoudi said in a post on X that both countries had agreed the terms of a Comprehensive Economic Partnership Agreement that "will secure a new era of cooperation and opportunity".
Australia's top exports to the UAE include meat, dairy, oil seeds, seafood, steel, nuts, honey, coal, chickpeas and lentils.
The deal is expected to become effective later this year.
The Australian Meat Industry Council welcomed the trade deal and said it would offer farmers greater access to a vital market for Australian beef, lamb, and goat meat.
#SaudiArabia approves first ETFs tracking Hong Kong-listed equities | Reuters
Saudi Arabia approves first ETFs tracking Hong Kong-listed equities | Reuters
Saudi Arabia has granted approval for its first exchange-traded funds (ETFs) tracking equities listed in Hong Kong on Tuesday, the Capital Market Authority (CMA) said, marking the debut of such a product in the Middle East.
The move follows efforts by Beijing and Hong Kong to deepen ties with Arab countries in response to escalating tensions with the West.
Saudi Arabia's CMA said in a statement it approved local asset manager AlBilad Investment Company's request to offer "Albilad CSOP MSCI Hong Kong China Equity ETF" units on the Saudi Stock Exchange (Tadawul). However, the regulator did not disclose the fund's launch schedule.
The ETF is a collaborative effort with Hong Kong's CSOP Asset Management, and focused on Hong Kong-listed companies including Chinese firms traded in the city.
Last November, Hong Kong launched Asia's first ETF tracking Saudi equities - CSOP Saudi Arabia ETF (2830.HK), opens new tab - and has been actively seeking cross-listing opportunities in both capital markets.
The Hong Kong-listed ETF's size has expanded to nearly HK$10 billion ($1.28 billion).
In June, Julia Leung, CEO of Hong Kong's Securities and Futures Commission (SFC), visited Saudi Arabia to meet officials and discuss the potential listing of the ETFs on each other's exchanges.
China also approved its first two mainland listed ETFs tracking Hong Kong's CSOP Saudi Arabia ETF in June, seeking to further strengthen financial sector cooperation between the two regions and provide Chinese investors exposure to Middle East companies.
Saudi Arabia has granted approval for its first exchange-traded funds (ETFs) tracking equities listed in Hong Kong on Tuesday, the Capital Market Authority (CMA) said, marking the debut of such a product in the Middle East.
The move follows efforts by Beijing and Hong Kong to deepen ties with Arab countries in response to escalating tensions with the West.
Saudi Arabia's CMA said in a statement it approved local asset manager AlBilad Investment Company's request to offer "Albilad CSOP MSCI Hong Kong China Equity ETF" units on the Saudi Stock Exchange (Tadawul). However, the regulator did not disclose the fund's launch schedule.
The ETF is a collaborative effort with Hong Kong's CSOP Asset Management, and focused on Hong Kong-listed companies including Chinese firms traded in the city.
Last November, Hong Kong launched Asia's first ETF tracking Saudi equities - CSOP Saudi Arabia ETF (2830.HK), opens new tab - and has been actively seeking cross-listing opportunities in both capital markets.
The Hong Kong-listed ETF's size has expanded to nearly HK$10 billion ($1.28 billion).
In June, Julia Leung, CEO of Hong Kong's Securities and Futures Commission (SFC), visited Saudi Arabia to meet officials and discuss the potential listing of the ETFs on each other's exchanges.
China also approved its first two mainland listed ETFs tracking Hong Kong's CSOP Saudi Arabia ETF in June, seeking to further strengthen financial sector cooperation between the two regions and provide Chinese investors exposure to Middle East companies.
Monday 16 September 2024
ADIA-backed Bajaj House Finance shares more than double on market debut
ADIA-backed Bajaj House Finance shares more than double on market debut
India’s Bajaj House Finance experienced a bumper opening on Monday’s market debut, with demand for the Abu Dhabi Investment Authority (ADIA) backed mortgage financier causing its shares to jump about 130% from the top end of the IPO pricing of 70 rupees ($0.83).
The company’s shares, which debuted on India’s National Stock Exchange, reflected strong demand from investors, surging to as much as INR 161 rupees apiece, with exchange data showing a market capitalisation of $15.6 billion.
The IPO last week drew bids worth $39 billion, with shares being oversubscribed nearly 64 times.
The $782 million IPO saw an anchor investor quota of $210 million, which drew the interest of Singapore’s GIC and ADIA.
The UAE sovereign fund invested INR 470 million in Bajaj Housing Finance, through its Monsoon subsidiary, accounting for a 2.67% anchor investor portion, with 6.7 million shares allotted at INR 70 apiece.
Bajaj Housing is a subsidiary of the larger Bajaj Group, an Indian conglomerate, which sells everything from consumer electronics to motorcycles.
India’s Bajaj House Finance experienced a bumper opening on Monday’s market debut, with demand for the Abu Dhabi Investment Authority (ADIA) backed mortgage financier causing its shares to jump about 130% from the top end of the IPO pricing of 70 rupees ($0.83).
The company’s shares, which debuted on India’s National Stock Exchange, reflected strong demand from investors, surging to as much as INR 161 rupees apiece, with exchange data showing a market capitalisation of $15.6 billion.
The IPO last week drew bids worth $39 billion, with shares being oversubscribed nearly 64 times.
The $782 million IPO saw an anchor investor quota of $210 million, which drew the interest of Singapore’s GIC and ADIA.
The UAE sovereign fund invested INR 470 million in Bajaj Housing Finance, through its Monsoon subsidiary, accounting for a 2.67% anchor investor portion, with 6.7 million shares allotted at INR 70 apiece.
Bajaj Housing is a subsidiary of the larger Bajaj Group, an Indian conglomerate, which sells everything from consumer electronics to motorcycles.
Gulf markets end mixed ahead of Fed rate decision | Reuters
Gulf markets end mixed ahead of Fed rate decision | Reuters
Stock markets in the Gulf ended mixed on Monday as investors await a likely cut to U.S. interest rates this week, with the Saudi index giving up early gains to conclude in negative territory.
The U.S. Federal Reserve is all but certain to cut rates on Wednesday, but the debate is over the size of the cut, with market bets inclining towards 50 basis points (bps), LSEG data showed.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Federal Reserve's decisions as most of the regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, with Dubai Taxi Company (DTC.DU), opens new tab advanced 7.5%, extending gains from the previous session.
The taxi operator on Friday announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.4% higher.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.3%, hit by a 1.7% fall in Alinma Bank (1150.SE), opens new tab and a 0.2% decrease in Al Rajhi Bank (1120.SE), opens new tab.
However, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets - edged higher as ongoing disruption to U.S. Gulf oil infrastructure balanced persistent demand concerns after a fresh round of Chinese data while investors await Fed rate decision.
The Qatari benchmark (.QSI), opens new tab eased 0.1%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 0.3%.
The Qatari stock market saw limited movements, as investors in the region await this week's central banks meetings, particularly the Federal Reserve's, said Ahmed Negm Head of Market Research MENA at XS.com.
"The market is close to its high from earlier this year, benefiting from a rebound."
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 0.8%, weighed down by a 1% fall in Commercial International Bank (COMI.CA), opens new tab.
Stock markets in the Gulf ended mixed on Monday as investors await a likely cut to U.S. interest rates this week, with the Saudi index giving up early gains to conclude in negative territory.
The U.S. Federal Reserve is all but certain to cut rates on Wednesday, but the debate is over the size of the cut, with market bets inclining towards 50 basis points (bps), LSEG data showed.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Federal Reserve's decisions as most of the regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab gained 0.3%, with Dubai Taxi Company (DTC.DU), opens new tab advanced 7.5%, extending gains from the previous session.
The taxi operator on Friday announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.4% higher.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.3%, hit by a 1.7% fall in Alinma Bank (1150.SE), opens new tab and a 0.2% decrease in Al Rajhi Bank (1120.SE), opens new tab.
However, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 0.2%.
Oil prices - a catalyst for the Gulf's financial markets - edged higher as ongoing disruption to U.S. Gulf oil infrastructure balanced persistent demand concerns after a fresh round of Chinese data while investors await Fed rate decision.
The Qatari benchmark (.QSI), opens new tab eased 0.1%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 0.3%.
The Qatari stock market saw limited movements, as investors in the region await this week's central banks meetings, particularly the Federal Reserve's, said Ahmed Negm Head of Market Research MENA at XS.com.
"The market is close to its high from earlier this year, benefiting from a rebound."
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 0.8%, weighed down by a 1% fall in Commercial International Bank (COMI.CA), opens new tab.
#UAE retailer LuLu Group plans IPO by November; to float on ADX, Tadawul
UAE retailer LuLu Group plans IPO by November; to float on ADX, Tadawul
UAE retail giant LuLu Group will open its IPO by the last week of October or early November and a dual listing is expected to raise between $1.5 billion and $1.85 billion, people familiar with the matter who asked not to be named, told Zawya.
The stock will be listed on the Abu Dhabi Securities Exchange (ADX) and Saudi Arabian stock exchange, Tadawul.
“The IPO offering should open in the window between the last week of October and early November, making it an ideal period before the December holidays set in,” a source said.
Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup have been tapped as book runners for the IPO, a source said, adding, the offering “will be four to five times bigger than another retail IPO the UAE saw earlier this year.”
UAE retail giant LuLu Group will open its IPO by the last week of October or early November and a dual listing is expected to raise between $1.5 billion and $1.85 billion, people familiar with the matter who asked not to be named, told Zawya.
The stock will be listed on the Abu Dhabi Securities Exchange (ADX) and Saudi Arabian stock exchange, Tadawul.
“The IPO offering should open in the window between the last week of October and early November, making it an ideal period before the December holidays set in,” a source said.
Emirates NBD Capital, HSBC Holdings, Abu Dhabi Commercial Bank and Citigroup have been tapped as book runners for the IPO, a source said, adding, the offering “will be four to five times bigger than another retail IPO the UAE saw earlier this year.”
Gulf Sukuk Rally Grows as Fed Rate Cuts Outweigh Oil’s Plunge - Bloomberg
Gulf Sukuk Rally Grows as Fed Rate Cuts Outweigh Oil’s Plunge - Bloomberg
Islamic securities from the oil-rich Persian Gulf notched their longest weekly winning streak since February 2021 last week as investors shrugged off plunging crude prices, instead turning their attention to imminent Federal Reserve easing.
A Bloomberg gauge of sukuk returns for the six-nation Gulf Cooperation Council posted its 11th successive week of gains, while hitting an all-time high on Friday. The certificates have handed investors 3.9% gains this quarter even as oil and gas prices tumbled more than 17%, to trade near three-year lows.
With a decision from the US central bank just days away, fixed-income instruments around the world are preparing for a lower interest-rate regime with widespread yield declines. A rate cut could boost risk appetite and push investors to snap up assets across emerging markets.
GCC countries — Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar and Bahrain — are witnessing rallies in their dollar bonds and sukuk, with the Islamic-compliant securities outperforming global bonds this year as their fiscal and political stability make them some of the safest in the developing world.
Islamic securities from the oil-rich Persian Gulf notched their longest weekly winning streak since February 2021 last week as investors shrugged off plunging crude prices, instead turning their attention to imminent Federal Reserve easing.
A Bloomberg gauge of sukuk returns for the six-nation Gulf Cooperation Council posted its 11th successive week of gains, while hitting an all-time high on Friday. The certificates have handed investors 3.9% gains this quarter even as oil and gas prices tumbled more than 17%, to trade near three-year lows.
With a decision from the US central bank just days away, fixed-income instruments around the world are preparing for a lower interest-rate regime with widespread yield declines. A rate cut could boost risk appetite and push investors to snap up assets across emerging markets.
GCC countries — Saudi Arabia, United Arab Emirates, Oman, Kuwait, Qatar and Bahrain — are witnessing rallies in their dollar bonds and sukuk, with the Islamic-compliant securities outperforming global bonds this year as their fiscal and political stability make them some of the safest in the developing world.
German Stocks Near Record Highs Get First ETF in Gulf - Bloomberg
German Stocks Near Record Highs Get First ETF in Gulf - Bloomberg
Investors in the Gulf are about to get their first exchange-traded fund tracking the German market which has been trading near record highs.
Lunate Capital Limited is launching the Chimera S&P Germany UCITS ETF that will focus on the top 30 most liquid stocks listed in the country. It will replicate the S&P Germany BMI Liquid 35/20 Capped Index which includes equities like Siemens AG and Mercedes-Benz Group AG. The index climbed 14% this year.
Scheduled to list on the Abu Dhabi Securities Exchange on Sept. 26, the ETF will allow Middle Eastern investors to gain exposure to Europe’s largest economy. German stocks are defying pessimism over the country’s economy, which shrunk last quarter amid geopolitical headwinds involving decreased demand from China, one of its biggest trading partners.
Lunate Capital’s parent company, Lunate Holding RSC Ltd., manages $105 billion through its subsidiaries. The Abu Dhabi-based company is part of 2PointZero, a unit of International Holding Co. which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of its president. The alternative investment manager counts the emirate’s sovereign wealth fund ADQ as one of its largest clients.
International Securities, Arqaam Securities, BHM Capital, and EFG-Hermes are the fund’s authorized participants. Germany’s benchmark DAX Index slipped 0.4% on Monday.
Investors in the Gulf are about to get their first exchange-traded fund tracking the German market which has been trading near record highs.
Lunate Capital Limited is launching the Chimera S&P Germany UCITS ETF that will focus on the top 30 most liquid stocks listed in the country. It will replicate the S&P Germany BMI Liquid 35/20 Capped Index which includes equities like Siemens AG and Mercedes-Benz Group AG. The index climbed 14% this year.
Scheduled to list on the Abu Dhabi Securities Exchange on Sept. 26, the ETF will allow Middle Eastern investors to gain exposure to Europe’s largest economy. German stocks are defying pessimism over the country’s economy, which shrunk last quarter amid geopolitical headwinds involving decreased demand from China, one of its biggest trading partners.
Lunate Capital’s parent company, Lunate Holding RSC Ltd., manages $105 billion through its subsidiaries. The Abu Dhabi-based company is part of 2PointZero, a unit of International Holding Co. which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the United Arab Emirates’ national security adviser and brother of its president. The alternative investment manager counts the emirate’s sovereign wealth fund ADQ as one of its largest clients.
International Securities, Arqaam Securities, BHM Capital, and EFG-Hermes are the fund’s authorized participants. Germany’s benchmark DAX Index slipped 0.4% on Monday.
British ministers head to Gulf for talks on new trade deal | Reuters
British ministers head to Gulf for talks on new trade deal | Reuters
Britain's new trade ministers visited the Gulf region on Monday in a first joint visit for talks on a possible trade deal, the government said.
Trade secretary Jonathan Reynolds and minister for trade policy Douglas Alexander will meet their counterparts from the Gulf Cooperation Council, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Trade has been a weak point in Britain's economy in recent years - with business groups pointing to Brexit as one cause.
The government, elected after a landslide win for Prime Minister Keir Starmer's Labour Party in July, is also targeting trade deals with India, Switzerland and South Korea as part of its plan to boost economic growth.
"I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it's great to be here to discuss exactly that," Reynolds said in a statement.
Britain's Business and Trade Department estimates a free trade deal with the Gulf Cooperation Council could boost the UK economy by 1.6 billion pounds ($2.10 billion) over the long run.
Out of the Group of Seven advanced economies, Britain ranks bottom for growth in goods and services exports since 2019, even when accounting for the country's large precious metals trade, according to national accounts data.
Britain's new trade ministers visited the Gulf region on Monday in a first joint visit for talks on a possible trade deal, the government said.
Trade secretary Jonathan Reynolds and minister for trade policy Douglas Alexander will meet their counterparts from the Gulf Cooperation Council, which comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.
Trade has been a weak point in Britain's economy in recent years - with business groups pointing to Brexit as one cause.
The government, elected after a landslide win for Prime Minister Keir Starmer's Labour Party in July, is also targeting trade deals with India, Switzerland and South Korea as part of its plan to boost economic growth.
"I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it's great to be here to discuss exactly that," Reynolds said in a statement.
Britain's Business and Trade Department estimates a free trade deal with the Gulf Cooperation Council could boost the UK economy by 1.6 billion pounds ($2.10 billion) over the long run.
Out of the Group of Seven advanced economies, Britain ranks bottom for growth in goods and services exports since 2019, even when accounting for the country's large precious metals trade, according to national accounts data.
Hong Kong-focused ETFs set to list on #Saudi exchange
Hong Kong-focused ETFs set to list on Saudi exchange
Saudi Arabia’s first exchange traded funds investing in Hong Kong’s equities market will be listed on the local stock exchange before the end of the year, as authorities try to strengthen financial ties between the two markets.
Saudi Arabia’s first exchange traded funds investing in Hong Kong’s equities market will be listed on the local stock exchange before the end of the year, as authorities try to strengthen financial ties between the two markets.
In a speech at the Bund Summit in Shanghai, Paul Chan, Hong Kong’s financial secretary, confirmed that the government is expecting “some reciprocal moves” to take place this year, which will include the listing of a pair of Hong Kong-focused ETFs on the Saudi Exchange.
The first ETF investing solely in Saudi Arabia’s equities market was listed on the Hong Kong exchange at the end of November last year, attracting $1bn in initial investment primarily from institutional investors.
The CSOP Saudi Arabia ETF, which tracks the FTSE Saudi Arabia Index and is the first such ETF with single-country exposure to the Saudi market anywhere in Asia Pacific, has seen its assets tick up to $1.25bn since launch.
Sunday 15 September 2024
#Dubai School Fees: GEMS Billionaire Sunny Varkey Profits as Expats Pay $30,000 - Bloomberg
Dubai School Fees: GEMS Billionaire Sunny Varkey Profits as Expats Pay $30,000 - Bloomberg
At GEMS World Academy in Dubai, kindergarteners have access to iPads and students spend time at the school’s 70-seat planetarium. That all comes at a cost — fees that can rise to $33,000 by grade 12.
It’s the most expensive in the chain run by Dubai’s GEMS Education, which is among the world’s largest private school operators. Founded by Indian-born billionaire Sunny Varkey, GEMS caters to every price point, starting at as little as $3,900 a year. But a boom in the emirate’s financial sector has meant Dubai is home to a growing population of hedge fund traders and bankers willing to fork out premium prices.
Private schools are big business across the globe — and they tend to be pricey in most major hubs. In the UK, for instance, Nord Anglia Education Ltd. has been looking to sell a stake at a $15 billion valuation. But Dubai is more lucrative than its peers because local rules make the city’s public schools largely inaccessible to most expatriates.
That translates into big money in Dubai, where about 90% of the population of 3.6 million is from overseas, giving businesses unparalleled opportunity to profit from the education system. Foreigners from every part of the world — from the US and UK to Russia and India — have been pouring in since the pandemic, attracted by the city’s safety and low-tax regime. The government expects the population to surge to 5.8 million by 2040.
For GEMS, this means demand is running so high that it’s drawn up plans to add 30,000 new school places, Chief Executive Officer Dino Varkey, the founder’s son, said in an interview at the company’s headquarters.
This June, the Varkeys raised more than $3 billion from local banks to recapitalize the business while Brookfield Asset Management and co-investors committed $2 billion to GEMS. The family is now estimated to control a $3.7 billion fortune, according to the Bloomberg Billionaires Index.
At GEMS World Academy in Dubai, kindergarteners have access to iPads and students spend time at the school’s 70-seat planetarium. That all comes at a cost — fees that can rise to $33,000 by grade 12.
It’s the most expensive in the chain run by Dubai’s GEMS Education, which is among the world’s largest private school operators. Founded by Indian-born billionaire Sunny Varkey, GEMS caters to every price point, starting at as little as $3,900 a year. But a boom in the emirate’s financial sector has meant Dubai is home to a growing population of hedge fund traders and bankers willing to fork out premium prices.
Private schools are big business across the globe — and they tend to be pricey in most major hubs. In the UK, for instance, Nord Anglia Education Ltd. has been looking to sell a stake at a $15 billion valuation. But Dubai is more lucrative than its peers because local rules make the city’s public schools largely inaccessible to most expatriates.
That translates into big money in Dubai, where about 90% of the population of 3.6 million is from overseas, giving businesses unparalleled opportunity to profit from the education system. Foreigners from every part of the world — from the US and UK to Russia and India — have been pouring in since the pandemic, attracted by the city’s safety and low-tax regime. The government expects the population to surge to 5.8 million by 2040.
For GEMS, this means demand is running so high that it’s drawn up plans to add 30,000 new school places, Chief Executive Officer Dino Varkey, the founder’s son, said in an interview at the company’s headquarters.
This June, the Varkeys raised more than $3 billion from local banks to recapitalize the business while Brookfield Asset Management and co-investors committed $2 billion to GEMS. The family is now estimated to control a $3.7 billion fortune, according to the Bloomberg Billionaires Index.
Saipem (SPM) Awarded Offshore #Qatar Contract Worth About $4 Billion - Bloomberg
Saipem (SPM) Awarded Offshore Qatar Contract Worth About $4 Billion - Bloomberg
Saipem SpA was awarded an offshore Engineering, Procurement and Construction contract by QatarEnergyLNG worth about $4 billion.
The contract is aimed at sustaining the production of the North Field offshore natural gas reservoir in Qatar, the company said in a statement.
Saipem’s scope of work encompasses the engineering, procurement, fabrication and installation of six platforms as well as approximately 100 km (62 miles) of corrosion resistance alloy rigid subsea pipelines, 100 km of subsea composite cables, 150 km of fiber optic cables and several other subsea facilities, the company said.
Saipem is seeking to widen its reach in the Middle East under Chief Executive Officer Alessandro Puliti, appointed in 2022, after the company announced a profit warning earlier that year.
Saipem SpA was awarded an offshore Engineering, Procurement and Construction contract by QatarEnergyLNG worth about $4 billion.
The contract is aimed at sustaining the production of the North Field offshore natural gas reservoir in Qatar, the company said in a statement.
Saipem’s scope of work encompasses the engineering, procurement, fabrication and installation of six platforms as well as approximately 100 km (62 miles) of corrosion resistance alloy rigid subsea pipelines, 100 km of subsea composite cables, 150 km of fiber optic cables and several other subsea facilities, the company said.
Saipem is seeking to widen its reach in the Middle East under Chief Executive Officer Alessandro Puliti, appointed in 2022, after the company announced a profit warning earlier that year.
Alcoa to sell its 25.1% stake in #Saudi's Ma’aden joint venture for $1.1bln
Alcoa to sell its 25.1% stake in Saudi's Ma’aden joint venture for $1.1bln
U.S. aluminium maker Alcoa said on Sunday that it would sell a 25.1% stake in its Ma'aden joint venture to Saudi Arabian mining company Ma'aden for $1.1 billion. The transaction includes approximately 86 million shares of Ma’aden and $150 million in cash, Alcoa said in a statement, adding that it expects to close the deal in the first half of 2025.
"The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa," Alcoa CEO William Oplinger said.
Alcoa said it would hold its Ma'aden shares for a minimum of three years. After completing the transaction, Alcoa would own approximately 2% of Ma’aden’s current shares outstanding.
The joint venture was created in 2009, as a fully integrated mining complex in Saudi Arabia, Alcoa said, adding that Ma’aden owns the remaining 74.9% of the project.
"We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy,” said Bob Wilt, Ma’aden’s CEO.
In July, Alcoa posted quarterly revenue of $2.9 billion, beating expectations of $2.8 billion.
U.S. aluminium maker Alcoa said on Sunday that it would sell a 25.1% stake in its Ma'aden joint venture to Saudi Arabian mining company Ma'aden for $1.1 billion. The transaction includes approximately 86 million shares of Ma’aden and $150 million in cash, Alcoa said in a statement, adding that it expects to close the deal in the first half of 2025.
"The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility for Alcoa," Alcoa CEO William Oplinger said.
Alcoa said it would hold its Ma'aden shares for a minimum of three years. After completing the transaction, Alcoa would own approximately 2% of Ma’aden’s current shares outstanding.
The joint venture was created in 2009, as a fully integrated mining complex in Saudi Arabia, Alcoa said, adding that Ma’aden owns the remaining 74.9% of the project.
"We look forward to future opportunities to collaborate as we continue to build the mining sector into the third pillar of the Saudi economy,” said Bob Wilt, Ma’aden’s CEO.
In July, Alcoa posted quarterly revenue of $2.9 billion, beating expectations of $2.8 billion.
#SaudiArabia's inflation rate inches up to 1.6% in August | Reuters
Saudi Arabia's inflation rate inches up to 1.6% in August | Reuters
Saudi Arabia's annual inflation rate inched up to 1.6% in August, from 1.5% in July, government data showed on Sunday, driven by an increase in housing rents and food prices.
Housing rents rose by 10.7% in August, weighing on the overall rise in prices of housing, water, electricity, gas, and other fuels by 8.9%, according to the General Authority for Statistics.
The inflation rate had held steady at 1.5% in June and July, underpinned mostly by apartment rents.
In August data showed that food and beverage prices rose 0.9%, a bigger increase than in recent months, driven by a 4.6% rise in vegetable prices.
Prices in the restaurants and hotels category, as well as the education sector, also rose, while prices in the transport sub-category fell by 3.4% and those in the furnishing and home equipment sector declined 3.5%.
On a month-on-month basis, prices increased 0.1% in August.
Inflation has remained relatively low in Saudi Arabia this year compared with global levels.
In its latest country report, the International Monetary Fund forecast Saudi inflation will average 1.9% in 2024 and 2% in 2025.
Saudi Arabia's annual inflation rate inched up to 1.6% in August, from 1.5% in July, government data showed on Sunday, driven by an increase in housing rents and food prices.
Housing rents rose by 10.7% in August, weighing on the overall rise in prices of housing, water, electricity, gas, and other fuels by 8.9%, according to the General Authority for Statistics.
The inflation rate had held steady at 1.5% in June and July, underpinned mostly by apartment rents.
In August data showed that food and beverage prices rose 0.9%, a bigger increase than in recent months, driven by a 4.6% rise in vegetable prices.
Prices in the restaurants and hotels category, as well as the education sector, also rose, while prices in the transport sub-category fell by 3.4% and those in the furnishing and home equipment sector declined 3.5%.
On a month-on-month basis, prices increased 0.1% in August.
Inflation has remained relatively low in Saudi Arabia this year compared with global levels.
In its latest country report, the International Monetary Fund forecast Saudi inflation will average 1.9% in 2024 and 2% in 2025.
#SaudiArabia's Fourth Milling Co sets IPO price range, to raise at least $216 million | Reuters
Saudi Arabia's Fourth Milling Co sets IPO price range, to raise at least $216 million | Reuters
The price range for Saudi Arabia's Fourth Milling Company's upcoming initial public offering (IPO) has been set at between 5 riyals and 5.3 riyals a share, according to a stock exchange filing on Sunday.
That would allow the company to raise between 810 million riyals ($215.84 million) and 858.6 million riyals ($228.80 million) depending on the price.
The company said this month it planned to list a 30% stake, comprising 162 million shares, on the Saudi bourse, adding to a string of listings in the Gulf country.
The bookbuilding period for the IPO will run from Sept. 15 to Sept. 19, said the statement from Riyad Capital, the company's financial adviser and lead manager.
The price range for Saudi Arabia's Fourth Milling Company's upcoming initial public offering (IPO) has been set at between 5 riyals and 5.3 riyals a share, according to a stock exchange filing on Sunday.
That would allow the company to raise between 810 million riyals ($215.84 million) and 858.6 million riyals ($228.80 million) depending on the price.
The company said this month it planned to list a 30% stake, comprising 162 million shares, on the Saudi bourse, adding to a string of listings in the Gulf country.
The bookbuilding period for the IPO will run from Sept. 15 to Sept. 19, said the statement from Riyad Capital, the company's financial adviser and lead manager.
Saturday 14 September 2024
S&P revises #SaudiArabia's outlook to positive on advancing non-oil economy | Reuters
S&P revises Saudi Arabia's outlook to positive on advancing non-oil economy | Reuters
S&P Global Ratings revised Saudi Arabia's forecast to positive from stable on Friday, citing strong non-oil growth outlook and economic resilience.
The ratings agency said the positive outlook reflects the Saudi government's potential to bring in more reforms and investments, contributing to the development of non-oil economy.
The upgrade also reflects the country's economic resilience against ongoing volatility stemming from the hydrocarbon sector.
"We expect to see an acceleration of investments to develop newer industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector," S&P said.
Saudi Arabia, the world's top oil exporter, had announced an economic overhaul, known as Vision 2030, to end its reliance on oil for further economic growth.
S&P says continued execution of Vision 2030 initiatives will support strong non-oil growth over the medium term.
However, the hydrocarbon sector and national oil company Aramco will continue to play an important role in driving oil-linked economy to the kingdom.
Inflation has remained relatively low in Saudi Arabia compared to global levels. S&P expects inflation to remain steady and that interest rates will broadly move in tandem with the U.S. Federal Reserve rates.
S&P also affirmed Saudi Arabia's ratings at "A/A-1."
S&P Global Ratings revised Saudi Arabia's forecast to positive from stable on Friday, citing strong non-oil growth outlook and economic resilience.
The ratings agency said the positive outlook reflects the Saudi government's potential to bring in more reforms and investments, contributing to the development of non-oil economy.
The upgrade also reflects the country's economic resilience against ongoing volatility stemming from the hydrocarbon sector.
"We expect to see an acceleration of investments to develop newer industries, such as tourism, and diversify the economy away from its primary reliance on the upstream hydrocarbon sector," S&P said.
Saudi Arabia, the world's top oil exporter, had announced an economic overhaul, known as Vision 2030, to end its reliance on oil for further economic growth.
S&P says continued execution of Vision 2030 initiatives will support strong non-oil growth over the medium term.
However, the hydrocarbon sector and national oil company Aramco will continue to play an important role in driving oil-linked economy to the kingdom.
Inflation has remained relatively low in Saudi Arabia compared to global levels. S&P expects inflation to remain steady and that interest rates will broadly move in tandem with the U.S. Federal Reserve rates.
S&P also affirmed Saudi Arabia's ratings at "A/A-1."
Friday 13 September 2024
#UAE stocks gain on Fed rate cut hopes | Reuters
UAE stocks gain on Fed rate cut hopes | Reuters
The equity markets in the United Arab Emirates (UAE) rose on Friday, driven primarily by an increase in financial sector stocks, with investors anticipating a significant interest rate cut by the U.S. Federal Reserve next week.
Monetary policy in the Gulf Cooperation Council (GCC), including the UAE, often aligns with the U.S. Federal Reserve's decisions, as most of the regional currencies are pegged to the U.S. dollar.
When the U.S. Federal Reserve makes decisions about interest rates, GCC central banks typically mirror these changes to maintain currency stability and avoid significant capital flows that could disrupt their economies.
In Dubai, the main share index (DFMGI) saw a 0.9% increase, largely due to a 1.8% rise in Dubai's largest lender Emirates NBD Bank (ENBD.DU) and a 0.2% lift in Dubai Islamic Bank (DISB.DU), opens new tab.
Mobility solutions provider Dubai Taxi Company (DTC.DU) saw its stock rise by 2.3% after it announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority (RTA).
The Abu Dhabi stock index (FTFADGI) increased by 0.5%, driven by gains in key sectors. Specifically, the country’s largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, saw its stock rise by 1.8%, and telecoms firm e& (formerly known as Etisalat) experienced a 1.5% increase.
The equity markets in the United Arab Emirates (UAE) rose on Friday, driven primarily by an increase in financial sector stocks, with investors anticipating a significant interest rate cut by the U.S. Federal Reserve next week.
Monetary policy in the Gulf Cooperation Council (GCC), including the UAE, often aligns with the U.S. Federal Reserve's decisions, as most of the regional currencies are pegged to the U.S. dollar.
When the U.S. Federal Reserve makes decisions about interest rates, GCC central banks typically mirror these changes to maintain currency stability and avoid significant capital flows that could disrupt their economies.
In Dubai, the main share index (DFMGI) saw a 0.9% increase, largely due to a 1.8% rise in Dubai's largest lender Emirates NBD Bank (ENBD.DU) and a 0.2% lift in Dubai Islamic Bank (DISB.DU), opens new tab.
Mobility solutions provider Dubai Taxi Company (DTC.DU) saw its stock rise by 2.3% after it announced the company had been awarded 300 new plates, expanding its fleet, at the latest auction held by Dubai's Roads and Transport Authority (RTA).
The Abu Dhabi stock index (FTFADGI) increased by 0.5%, driven by gains in key sectors. Specifically, the country’s largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab, saw its stock rise by 1.8%, and telecoms firm e& (formerly known as Etisalat) experienced a 1.5% increase.
#Qatar mulls increasing its stake in Iberdrola, Expansion reports | Reuters
Qatar mulls increasing its stake in Iberdrola, Expansion reports | Reuters
The Qatar Investment Authority, the country's sovereign wealth fund, is considering raising its stake in Spanish power company Iberdrola (IBE.MC), opens new tab, Spanish newspaper Expansion reported on Friday, citing unidentified energy sector sources.
Qatar, which has an 8.8% stake in Iberdrola, according to LSEG data, and is the utility's largest shareholder, has discussed the possibility with the Spanish government, the newspaper said.
The Spanish government has the right to block or put conditions on the acquisition of large stakes by foreign firms in strategic Spanish companies such as power utilities.
Iberdrola and the Qatar Investment Authority did not immediately respond to requests for comment.
The Qatar Investment Authority, the country's sovereign wealth fund, is considering raising its stake in Spanish power company Iberdrola (IBE.MC), opens new tab, Spanish newspaper Expansion reported on Friday, citing unidentified energy sector sources.
Qatar, which has an 8.8% stake in Iberdrola, according to LSEG data, and is the utility's largest shareholder, has discussed the possibility with the Spanish government, the newspaper said.
The Spanish government has the right to block or put conditions on the acquisition of large stakes by foreign firms in strategic Spanish companies such as power utilities.
Iberdrola and the Qatar Investment Authority did not immediately respond to requests for comment.
Thursday 12 September 2024
ENBD REIT’s FFO drops 40% on quarter on higher provisions
ENBD REIT’s FFO drops 40% on quarter on higher provisions
ENBD REIT, the Nasdaq Dubai–listed real-estate investment trust, said its funds from operations (FFO) for Q1 2024 was down by 40% quarter-on-quarter (QoQ) to $1.35 million, mainly due to higher provisions.
Net asset value (NAV) stood at $199 million, or $0.80 per share, compared to $194.7 million for the previous quarter, according to the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management Limited.
The total value of ENBD REIT’s property portfolio increased by 0.8% to $387 million QoQ.
In August, the REIT was working towards rebalancing its portfolio following the divestment of the Remraam residential assets in Dubai. Proceeds from the sale were deployed to reduce debt, with the loan-to-value (LTV) dropping to 49.4%.
ENBD REIT, the Nasdaq Dubai–listed real-estate investment trust, said its funds from operations (FFO) for Q1 2024 was down by 40% quarter-on-quarter (QoQ) to $1.35 million, mainly due to higher provisions.
Net asset value (NAV) stood at $199 million, or $0.80 per share, compared to $194.7 million for the previous quarter, according to the Shariah-compliant real estate investment trust managed by Emirates NBD Asset Management Limited.
The total value of ENBD REIT’s property portfolio increased by 0.8% to $387 million QoQ.
In August, the REIT was working towards rebalancing its portfolio following the divestment of the Remraam residential assets in Dubai. Proceeds from the sale were deployed to reduce debt, with the loan-to-value (LTV) dropping to 49.4%.
#Oman’s sovereign wealth fund to launch IPOs over 5-year period
Oman’s sovereign wealth fund to launch IPOs over 5-year period
Investors can expect more initial public offerings (IPOs) in Oman, as the sultanate aims to raise additional funds from the markets over a five-year period.
Oman’s sovereign wealth fund, the Oman Investment Authority (OIA), with assets worth OMR 19.2 billion ($49 billion) as of last year, has confirmed that between 2024 and 2028, it will launch IPOs in key sectors.
As part of a new divestment plan, the sultanate will float assets in energy, services and logistics, the fund announced in social media.
The fund will also roll out private placements, encouraging investors to support business development in agriculture, aquaculture and mining.
In 2022, the fund launched a divestment plan to attract foreign investments, bolster the Muscat Stock Exchange, restructure capital and repay debts. Since the launch until last year, the plan generated more than OMR 1 billion in revenues.
Oman’s state energy company OQ has just announced IPO plans to offer a 25% stake in its exploration and production business.
The IPO is expected to take place next month, but it is still subject to regulatory approvals.
The region continues to see a flurry of IPOs this year, registering proceeds of $3.6 billion during the first half of 2024.
The number of offerings this year, which reached 23 as of June, has surpassed last year’s but the value of proceeds posted a 32% decline, according to a Markaz report.
Investors can expect more initial public offerings (IPOs) in Oman, as the sultanate aims to raise additional funds from the markets over a five-year period.
Oman’s sovereign wealth fund, the Oman Investment Authority (OIA), with assets worth OMR 19.2 billion ($49 billion) as of last year, has confirmed that between 2024 and 2028, it will launch IPOs in key sectors.
As part of a new divestment plan, the sultanate will float assets in energy, services and logistics, the fund announced in social media.
The fund will also roll out private placements, encouraging investors to support business development in agriculture, aquaculture and mining.
In 2022, the fund launched a divestment plan to attract foreign investments, bolster the Muscat Stock Exchange, restructure capital and repay debts. Since the launch until last year, the plan generated more than OMR 1 billion in revenues.
Oman’s state energy company OQ has just announced IPO plans to offer a 25% stake in its exploration and production business.
The IPO is expected to take place next month, but it is still subject to regulatory approvals.
The region continues to see a flurry of IPOs this year, registering proceeds of $3.6 billion during the first half of 2024.
The number of offerings this year, which reached 23 as of June, has surpassed last year’s but the value of proceeds posted a 32% decline, according to a Markaz report.
Most Gulf markets end higher on Fed rate cut optimism | Reuters
Most Gulf markets end higher on Fed rate cut optimism | Reuters
Most stock markets in the Gulf ended higher on Thursday after U.S. inflation data paved the way for a likely Federal Reserve rate cut next week, while traders awaited more economic data from the United States.
The U.S. consumer price index rose 0.2% in August, but underlying inflation showed some stickiness, which could result in the Fed delivering a smaller 25-basis-point cut at its upcoming meeting.
Fed policymakers is expected to start the long-awaited rate cuts next week as they seek to reduce the chance of a recession even as stubborn underlying price pressures put them off more aggressive action. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including Saudi Arabia, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, with Al Taiseer Group (4143.SE), opens new tab rising 1.6% and Al Rajhi Bank (1120.SE), opens new tab increasing 1%.
Among other gainers, oil giant Saudi Aramco (2222.SE), opens new tab was up 0.4%.
Oil prices - a catalyst for the Gulf's financial markets -rose by more than 1% to extend a rebound spurred by concern over Hurricane Francine's impact on U.S. output, though a gloomy demand outlook capped gains.
The market is supported by optimism regarding next week's potential Fed rate cut following yesterday's inflation data, said George Khoury, global head of education and research at CFI.
"Additionally, a rebound in oil prices is providing some support, even though the rise could be temporary. The Saudi market remains under pressure and could potentially continue its downward trend."
Dubai's main share index (.DFMGI), opens new tab added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab closing 1.1% higher.
The Qatari benchmark (.QSI), opens new tab advanced 1.5%, buoyed by a 4.8% jump in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab a day after the bank's board approved a share buyback of 2.9 billion riyals ($795.61 million).
Most stock markets in the Gulf ended higher on Thursday after U.S. inflation data paved the way for a likely Federal Reserve rate cut next week, while traders awaited more economic data from the United States.
The U.S. consumer price index rose 0.2% in August, but underlying inflation showed some stickiness, which could result in the Fed delivering a smaller 25-basis-point cut at its upcoming meeting.
Fed policymakers is expected to start the long-awaited rate cuts next week as they seek to reduce the chance of a recession even as stubborn underlying price pressures put them off more aggressive action. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including Saudi Arabia, is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, with Al Taiseer Group (4143.SE), opens new tab rising 1.6% and Al Rajhi Bank (1120.SE), opens new tab increasing 1%.
Among other gainers, oil giant Saudi Aramco (2222.SE), opens new tab was up 0.4%.
Oil prices - a catalyst for the Gulf's financial markets -rose by more than 1% to extend a rebound spurred by concern over Hurricane Francine's impact on U.S. output, though a gloomy demand outlook capped gains.
The market is supported by optimism regarding next week's potential Fed rate cut following yesterday's inflation data, said George Khoury, global head of education and research at CFI.
"Additionally, a rebound in oil prices is providing some support, even though the rise could be temporary. The Saudi market remains under pressure and could potentially continue its downward trend."
Dubai's main share index (.DFMGI), opens new tab added 0.4%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab closing 1.1% higher.
The Qatari benchmark (.QSI), opens new tab advanced 1.5%, buoyed by a 4.8% jump in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab a day after the bank's board approved a share buyback of 2.9 billion riyals ($795.61 million).
PGIM opens #AbuDhabi office, joining money managers' rush to #UAE capital | Reuters
PGIM opens Abu Dhabi office, joining money managers' rush to UAE capital | Reuters
PGIM, the investment management arm of U.S. insurer Prudential Financial (PRU.N), opens new tab, has opened an office in Abu Dhabi, it said on Thursday, joining a slew of money managers coming to the United Arab Emirates capital to tap a growing pool of wealthy clients.
PGIM, which had $1.33 trillion in assets under management as of June-end, obtained a Financial Services Permission (FSP) to operate in Abu Dhabi's financial centre ADGM, where it will cater to regional institutional and professional clients.
Asset managers, banks, hedge funds and family offices have increased their presence in the UAE in recent years, driven by a post-pandemic economic rebound, the UAE's relatively neutral political stance, convenient time zones and tax-free status.
In Abu Dhabi -- where state funds ADIA, Mubadala and ADQ manage $1.54 trillion in assets, per sovereign wealth fund tracker Global SWF -- some of the big names include the billionaire founder of hedge fund Bridgewater Associates, Ray Dalio, who opened a branch of his family office last year, and peers Brevan Howard.
The oil-rich emirate also lured banks such as Goldman Sachs (GS.N), opens new tab and Rothschild, which have traditionally favoured neighbouring Dubai as their regional hub but are now setting up smaller offices in Abu Dhabi and Riyadh.
Company registrations at ADGM surged 31% in the first half of 2024 compared with a year earlier, while assets under management soared by 226%, the financial centre said. Morgan Stanley (MS.N), opens new tab was among the asset managers that received an FSP in the period.
PGIM said it has served clients in the Middle East "for many years", but Abu Dhabi would be its first office in the region.
"Abu Dhabi remains a key market," its Middle East head Mohammed Abdulmalek said.
The firm said it has over 1,400 employees globally, spread across 41 countries, without disclosing the number of staff it plans to employ in Abu Dhabi.
PGIM, the investment management arm of U.S. insurer Prudential Financial (PRU.N), opens new tab, has opened an office in Abu Dhabi, it said on Thursday, joining a slew of money managers coming to the United Arab Emirates capital to tap a growing pool of wealthy clients.
PGIM, which had $1.33 trillion in assets under management as of June-end, obtained a Financial Services Permission (FSP) to operate in Abu Dhabi's financial centre ADGM, where it will cater to regional institutional and professional clients.
Asset managers, banks, hedge funds and family offices have increased their presence in the UAE in recent years, driven by a post-pandemic economic rebound, the UAE's relatively neutral political stance, convenient time zones and tax-free status.
In Abu Dhabi -- where state funds ADIA, Mubadala and ADQ manage $1.54 trillion in assets, per sovereign wealth fund tracker Global SWF -- some of the big names include the billionaire founder of hedge fund Bridgewater Associates, Ray Dalio, who opened a branch of his family office last year, and peers Brevan Howard.
The oil-rich emirate also lured banks such as Goldman Sachs (GS.N), opens new tab and Rothschild, which have traditionally favoured neighbouring Dubai as their regional hub but are now setting up smaller offices in Abu Dhabi and Riyadh.
Company registrations at ADGM surged 31% in the first half of 2024 compared with a year earlier, while assets under management soared by 226%, the financial centre said. Morgan Stanley (MS.N), opens new tab was among the asset managers that received an FSP in the period.
PGIM said it has served clients in the Middle East "for many years", but Abu Dhabi would be its first office in the region.
"Abu Dhabi remains a key market," its Middle East head Mohammed Abdulmalek said.
The firm said it has over 1,400 employees globally, spread across 41 countries, without disclosing the number of staff it plans to employ in Abu Dhabi.
Wednesday 11 September 2024
#AbuDhabi gives onshore block production license to India's IOC-BPCL JV | Reuters
Abu Dhabi gives onshore block production license to India's IOC-BPCL JV | Reuters
Abu Dhabi has awarded oil and gas production rights for an onshore block to a joint venture of Indian state-run refiners Bharat Petroleum Corp Ltd (BPCL.NS), opens new tab and Indian Oil Corp (IOC.NS), opens new tab, BPCL said in a statement on Wednesday.
The Supreme Council for Financial and Economic Affairs of Abu Dhabi has granted rights to Urja Bharat Pte Ltd, an equal joint venture of Indian Oil and Bharat PetroResources, BPCL's exploration and production arm.
The Indian companies have been given production rights for onshore block 1 after completing the exploration phase awarded, opens new tab in 2019.
"Initial exploration efforts have yielded positive results in Onshore Block 1," BPCL said.
Abu Dhabi has awarded oil and gas production rights for an onshore block to a joint venture of Indian state-run refiners Bharat Petroleum Corp Ltd (BPCL.NS), opens new tab and Indian Oil Corp (IOC.NS), opens new tab, BPCL said in a statement on Wednesday.
The Supreme Council for Financial and Economic Affairs of Abu Dhabi has granted rights to Urja Bharat Pte Ltd, an equal joint venture of Indian Oil and Bharat PetroResources, BPCL's exploration and production arm.
The Indian companies have been given production rights for onshore block 1 after completing the exploration phase awarded, opens new tab in 2019.
"Initial exploration efforts have yielded positive results in Onshore Block 1," BPCL said.
Etihad Airways plans IPO no earlier than 2025, sources say
Etihad Airways plans IPO no earlier than 2025, sources say
Abu Dhabi's Etihad Airways plans to make its stock market debut no sooner than 2025, two people familiar with the matter said, in potentially the first IPO of a major Gulf airline as the UAE's capital ramps up effort to become a global travel hub.
Etihad, owned by sovereign wealth fund ADQ, had considered listing this year, the people said.
However, it wants to present investors with 2024 financial results that will show a strong performance, one of the people said. Geopolitical instability in the region has also weighed on timing, the second person said.
ADQ declined to comment. A spokesperson for Etihad said it "does not comment on rumour or speculation".
Etihad, which started operations in 2003, spent billions of dollars buying minority stakes in other carriers to create larger network through its Abu Dhabi hub and better compete with Gulf peers Emirates and Qatar Airways. But that strategy unravelled as many of those airlines ran into financial trouble.
After a management shake-up and years of paring back operations, Etihad has expanded under new CEO Antonoaldo Neves.
Under its "Journey 2030" strategy, it plans to bolster Abu Dhabi's role as a travel hub connecting Asia and Europe.
Targets include expanding destinations to more than 125 airports by 2030 from over 70 today, and boosting its fleet to over 160 aircraft from around 90 now.
Abu Dhabi's Zayed International Airport opened a multibillion-dollar new terminal last year that tripled annual capacity to 45 million passengers.
"Our mandate is clear: to deliver extraordinary customer service and sustainable profitability, as the foundation for Etihad's contribution to Abu Dhabi's aspirations," Neves was quoted as saying last November.
The airline last month reported a 48% increase in half-year after tax profit, with passenger numbers rising 38% to 8.7 million. That followed full-year net profits in 2022 and 2023.
Neves told Reuters in March that Etihad was improving transparency, governance and its balance sheet to be ready for an IPO should ADQ decide to list it.
Etihad also faces delays in receiving new aircraft from planemakers Airbus and Boeing, which have forced some airlines to scale back growth plans.
That comes amid a boom in international travel since the pandemic, which governments in the Gulf are riding to pursue reforms aimed at diversifying their economies away from fossil fuels.
The measures include privatising state assets including airlines, and a potential Etihad listing would add to the regional flurry of IPOs in recent years.
The president of bigger rival Emirates said in 2021 the Dubai government was considering an IPO of the airline, and Flynas in Saudi Arabia is looking to list as soon as this year, Bloomberg reported. Flynas declined to comment.
Abu Dhabi's Etihad Airways plans to make its stock market debut no sooner than 2025, two people familiar with the matter said, in potentially the first IPO of a major Gulf airline as the UAE's capital ramps up effort to become a global travel hub.
Etihad, owned by sovereign wealth fund ADQ, had considered listing this year, the people said.
However, it wants to present investors with 2024 financial results that will show a strong performance, one of the people said. Geopolitical instability in the region has also weighed on timing, the second person said.
ADQ declined to comment. A spokesperson for Etihad said it "does not comment on rumour or speculation".
Etihad, which started operations in 2003, spent billions of dollars buying minority stakes in other carriers to create larger network through its Abu Dhabi hub and better compete with Gulf peers Emirates and Qatar Airways. But that strategy unravelled as many of those airlines ran into financial trouble.
After a management shake-up and years of paring back operations, Etihad has expanded under new CEO Antonoaldo Neves.
Under its "Journey 2030" strategy, it plans to bolster Abu Dhabi's role as a travel hub connecting Asia and Europe.
Targets include expanding destinations to more than 125 airports by 2030 from over 70 today, and boosting its fleet to over 160 aircraft from around 90 now.
Abu Dhabi's Zayed International Airport opened a multibillion-dollar new terminal last year that tripled annual capacity to 45 million passengers.
"Our mandate is clear: to deliver extraordinary customer service and sustainable profitability, as the foundation for Etihad's contribution to Abu Dhabi's aspirations," Neves was quoted as saying last November.
The airline last month reported a 48% increase in half-year after tax profit, with passenger numbers rising 38% to 8.7 million. That followed full-year net profits in 2022 and 2023.
Neves told Reuters in March that Etihad was improving transparency, governance and its balance sheet to be ready for an IPO should ADQ decide to list it.
Etihad also faces delays in receiving new aircraft from planemakers Airbus and Boeing, which have forced some airlines to scale back growth plans.
That comes amid a boom in international travel since the pandemic, which governments in the Gulf are riding to pursue reforms aimed at diversifying their economies away from fossil fuels.
The measures include privatising state assets including airlines, and a potential Etihad listing would add to the regional flurry of IPOs in recent years.
The president of bigger rival Emirates said in 2021 the Dubai government was considering an IPO of the airline, and Flynas in Saudi Arabia is looking to list as soon as this year, Bloomberg reported. Flynas declined to comment.
Most Gulf markets in the red on weak oil | Reuters
Most Gulf markets in the red on weak oil | Reuters
Most stock markets in the Gulf ended lower on Wednesday, dragged down by weaker oil prices, while investors awaited key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year, and also trimmed its expectation for next year, marking the producer group's second consecutive downward revision.
China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 barrels per day in 2024 from 700,000 bpd. Oil use in the world's second-largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said.
Oil prices rose after dropping more than 3% on Tuesday, but still hovered near three-year lows after OPEC+ revised down its demand forecast for this year and 2025.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.8%, hit by a 1.7% fall in Al Taiseer Group (4143.SE), opens new tab and a 5.1% slide in ACWA Power Co (2082.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.7%.
U.S. consumer prices - which came in post market hours - rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.
Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% year-on-year. Though inflation remains above the U.S. central bank's 2% target, it has slowed considerably.
Dubai's main share index (.DFMGI), opens new tab fell 0.9%, with Emirates NBD (ENBD.DU), opens new tab retreating 2.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab decreased 0.9%.
The Qatari benchmark (.QSI), opens new tab finished 0.2% lower, weighed down by a 2.3% fall in Qatar Gas Transport (QGTS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.3%, led by a 8.8% jump in Egypt Kuwait Holding (EKHO.CA), opens new tab.
Most stock markets in the Gulf ended lower on Wednesday, dragged down by weaker oil prices, while investors awaited key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
OPEC on Tuesday cut its forecast for global oil demand growth in 2024 reflecting data received so far this year, and also trimmed its expectation for next year, marking the producer group's second consecutive downward revision.
China accounted for the bulk of the latest downgrade, as OPEC trimmed its forecast of Chinese growth to 650,000 barrels per day in 2024 from 700,000 bpd. Oil use in the world's second-largest economy was facing headwinds from economic challenges and moves to cleaner fuels, OPEC said.
Oil prices rose after dropping more than 3% on Tuesday, but still hovered near three-year lows after OPEC+ revised down its demand forecast for this year and 2025.
Saudi Arabia's benchmark index (.TASI), opens new tab declined 1.8%, hit by a 1.7% fall in Al Taiseer Group (4143.SE), opens new tab and a 5.1% slide in ACWA Power Co (2082.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab dropped 0.7%.
U.S. consumer prices - which came in post market hours - rose marginally in August, but underlying inflation showed some stickiness, which could discourage the Federal Reserve from delivering a half-point interest rate cut next week.
Economists polled by Reuters had forecast the CPI gaining 0.2% and rising 2.6% year-on-year. Though inflation remains above the U.S. central bank's 2% target, it has slowed considerably.
Dubai's main share index (.DFMGI), opens new tab fell 0.9%, with Emirates NBD (ENBD.DU), opens new tab retreating 2.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab decreased 0.9%.
The Qatari benchmark (.QSI), opens new tab finished 0.2% lower, weighed down by a 2.3% fall in Qatar Gas Transport (QGTS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.3%, led by a 8.8% jump in Egypt Kuwait Holding (EKHO.CA), opens new tab.
#AbuDhabi closes in on German group that helped ‘invent chemistry’
Abu Dhabi closes in on German group that helped ‘invent chemistry’
German chemist Otto Bayer did not know what to do with polyurethane foam when he invented it in 1937. Today the chemical is omnipresent in household appliances and cars, and is at the heart of Abu Dhabi state oil group Adnoc’s effort to seal Europe’s biggest takeover deal this year.
German chemist Otto Bayer did not know what to do with polyurethane foam when he invented it in 1937. Today the chemical is omnipresent in household appliances and cars, and is at the heart of Abu Dhabi state oil group Adnoc’s effort to seal Europe’s biggest takeover deal this year.
The target company, Covestro, is a jewel of German industry. Spun out of pharmaceuticals-to-chemicals conglomerate Bayer in 2015, its Leverkusen headquarters sit in the industrial heartland of North Rhine-Westphalia — a state brimming with potential customers for its products.
But times are not as good as they once were. High energy prices and sluggish consumer demand have hit Germany’s manufacturers, and their suppliers, including Covestro, are feeling the squeeze.
“Europe is getting less and less competitive, especially Germany,” chief executive Markus Steilemann told the Financial Times at Covestro’s most recent earnings, when the company narrowed its full-year profit outlook.
The chemicals industry lobby group that Steilemann chairs has warned that Europe’s largest economy is deindustrialising and urgently needs support.
Tuesday 10 September 2024
#Saudi Fintech Acquisition by Tabby Sparks New Hopes for VCs - Bloomberg
Saudi Fintech Acquisition by Tabby Sparks New Hopes for VCs - Bloomberg
When Saudi Arabia-based Tabby — one of the Middle East’s first fintech unicorns — announced it was acquiring startup Tweeq, it turned heads among venture capitalists eyeing investment opportunities in the kingdom.
The deal, which will see Tabby buy the digital-wallet operator for an undisclosed sum, was viewed as fresh evidence that Saudi Arabia’s startup market is maturing and may start to give VCs more strategies for exiting their investments, investors said at the 24 Fintech conference in Riyadh last week.
“Successful startup ecosystems are flywheels and startup exits are a key cog,” said Alexandre Lazarow, global venture capitalist and founder of Fluent Ventures. “They help return capital to investors and catalyze new generations of angel investors.”
“One of the things that’s exciting about the Saudi market today is the early but increasing amount of technology IPOs and M&A, including in fintech,” Lazarow said, stressing the importance of a viable path to exiting investments in Saudi Arabia as it navigates the early stages of developing its VC market.
Saudi Arabia has emerged as one of the hottest markets among emerging VC countries in recent years. It trailed only Singapore in the first half of 2024, with more than $400 million in funds raised, and ranked the highest in the Middle East and North Africa. The country last year overtook the UAE as the top destination for VC investment in the Middle East for the very first time.
Saudi company Rasan Information Technology Co., which operates online insurance platforms such as Tameeni and Treza, was among the first local fintech firms to go public in the kingdom. It raised $224 million in June and has seen its share price climb more than 43% since its trading debut.
The UAE has historically been the most advanced venture market in the region, with investments dating back to 2013 and 2014, according to VC data firm Magnitt. The country has accounted for around 45% of all M&A deals closed in MENA since 2019.
But Saudi Arabia is starting to catch up on M&A in particular; 19% of transactions done last year in the region were in the kingdom, Magnitt said.
“The window for exit activity in Saudi Arabia is likely to come into fruition in the next 2-3 years,” said Magnitt Chief Executive Officer Philip Bahoshy. “It takes between 7-8 years for a company in MENA to achieve an exit.”
Saudi startups have received a significant boost from investments by local funds including STV and Sanabil, a unit of Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund. Plowing money into tech firms and startups aims to serve the goal of building a venture capital industry and encouraging young entrepreneurs to set up businesses that can aid in the kingdom’s efforts to diversify the economy.
Tabby — a fintech that now offers buy-now-pay-later solutions — agreed to shift its headquarters to Saudi Arabia from the UAE last year. It plans to go public on the Saudi stock exchange in late 2025 or 2026, the company told local media outlet Argaam last week.
Tabby, which has raised funds from regional and global players like Wellington Management, STV, Mubadala Investment Capital, PayPal Ventures and Hassana Investment Co., said Tweeq will continue operating independently once its acquisition of the company is complete.
When Saudi Arabia-based Tabby — one of the Middle East’s first fintech unicorns — announced it was acquiring startup Tweeq, it turned heads among venture capitalists eyeing investment opportunities in the kingdom.
The deal, which will see Tabby buy the digital-wallet operator for an undisclosed sum, was viewed as fresh evidence that Saudi Arabia’s startup market is maturing and may start to give VCs more strategies for exiting their investments, investors said at the 24 Fintech conference in Riyadh last week.
“Successful startup ecosystems are flywheels and startup exits are a key cog,” said Alexandre Lazarow, global venture capitalist and founder of Fluent Ventures. “They help return capital to investors and catalyze new generations of angel investors.”
“One of the things that’s exciting about the Saudi market today is the early but increasing amount of technology IPOs and M&A, including in fintech,” Lazarow said, stressing the importance of a viable path to exiting investments in Saudi Arabia as it navigates the early stages of developing its VC market.
Saudi Arabia has emerged as one of the hottest markets among emerging VC countries in recent years. It trailed only Singapore in the first half of 2024, with more than $400 million in funds raised, and ranked the highest in the Middle East and North Africa. The country last year overtook the UAE as the top destination for VC investment in the Middle East for the very first time.
Saudi company Rasan Information Technology Co., which operates online insurance platforms such as Tameeni and Treza, was among the first local fintech firms to go public in the kingdom. It raised $224 million in June and has seen its share price climb more than 43% since its trading debut.
The UAE has historically been the most advanced venture market in the region, with investments dating back to 2013 and 2014, according to VC data firm Magnitt. The country has accounted for around 45% of all M&A deals closed in MENA since 2019.
But Saudi Arabia is starting to catch up on M&A in particular; 19% of transactions done last year in the region were in the kingdom, Magnitt said.
“The window for exit activity in Saudi Arabia is likely to come into fruition in the next 2-3 years,” said Magnitt Chief Executive Officer Philip Bahoshy. “It takes between 7-8 years for a company in MENA to achieve an exit.”
Saudi startups have received a significant boost from investments by local funds including STV and Sanabil, a unit of Saudi Arabia’s sovereign wealth fund, known as the Public Investment Fund. Plowing money into tech firms and startups aims to serve the goal of building a venture capital industry and encouraging young entrepreneurs to set up businesses that can aid in the kingdom’s efforts to diversify the economy.
Tabby — a fintech that now offers buy-now-pay-later solutions — agreed to shift its headquarters to Saudi Arabia from the UAE last year. It plans to go public on the Saudi stock exchange in late 2025 or 2026, the company told local media outlet Argaam last week.
Tabby, which has raised funds from regional and global players like Wellington Management, STV, Mubadala Investment Capital, PayPal Ventures and Hassana Investment Co., said Tweeq will continue operating independently once its acquisition of the company is complete.
Most Gulf markets gain, key US inflation data in focus | Reuters
Most Gulf markets gain, key US inflation data in focus | Reuters
Major stock markets in the Gulf ended higher on Tuesday ahead of key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
Investors remained focused on the U.S. consumer price index report due on Wednesday, which will likely provide clarity on whether the Fed will deliver an outsized 50-basis-point cut when it meets on Sept. 17-18.
Market pricing points to about 110 bps of cuts expected from the U.S. central bank this year. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 0.3% increase in Al Rajhi Bank (1120.SE), opens new tab and a 0.7% gain in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 0.7%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 2.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.5%.
The UAE economy grew 3.4% in the first quarter of 2024 compared with the same period of the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.
The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.9%, weighed down by a 4.5% slide in Ezz Steel (ESRS.CA), opens new tab.
Egypt's annual urban consumer price inflation rate unexpectedly accelerated to 26.2% in August from 25.7% in July, data from statistics agency CAPMAS showed on Tuesday.
Major stock markets in the Gulf ended higher on Tuesday ahead of key U.S. inflation data that could affect the size of a potential interest rate cut from the Federal Reserve next week.
Investors remained focused on the U.S. consumer price index report due on Wednesday, which will likely provide clarity on whether the Fed will deliver an outsized 50-basis-point cut when it meets on Sept. 17-18.
Market pricing points to about 110 bps of cuts expected from the U.S. central bank this year. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council, including the UAE, is usually guided by the Fed's policy decisions because most currencies in the region are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, helped by a 0.3% increase in Al Rajhi Bank (1120.SE), opens new tab and a 0.7% gain in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 0.7%, with top lender Emirates NBD (ENBD.DU), opens new tab rising 2.3%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.5%.
The UAE economy grew 3.4% in the first quarter of 2024 compared with the same period of the previous year, according to preliminary government estimates reported by the state news agency WAM on Monday.
The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.9%, weighed down by a 4.5% slide in Ezz Steel (ESRS.CA), opens new tab.
Egypt's annual urban consumer price inflation rate unexpectedly accelerated to 26.2% in August from 25.7% in July, data from statistics agency CAPMAS showed on Tuesday.
#Dubai, #AbuDhabi: Millionaire Magnet #UAE Spurs Private Banking Boom - Bloomberg
Dubai, Abu Dhabi: Millionaire Magnet UAE Spurs Private Banking Boom - Bloomberg
As governments around the world increasingly count on wealthy residents to plug fiscal gaps, low-tax jurisdictions have become more attractive destinations for the rich. Add in a time zone conducive for trading most markets, airports that’re well connected to global hubs, some of the best restaurants, hotels and luxury housing — and it becomes clear why the United Arab Emirates has managed to leapfrog other countries.
A wave of high net worth individuals flocked to Dubai during the pandemic — the city shunned lockdowns for the most part and vaccinations were easily available — and the trend gathered pace when Russia invaded Ukraine. More recently, billionaires have flocked to Abu Dhabi, which has emerged as the world’s newest wealth haven.
Favorable government policies have also helped. “High net worth individuals like to operate in markets where they’re treated as partners,” Philippe Amarante, Henley & Partners’ Middle East Managing Partner told my colleague Joumanna Bercetche on Bloomberg TV. “So, it all comes together in as a perfect equation, and I’d say that’s the key instrument of attraction for the UAE.”
More than 6,700 millionaires are expected to move to the Gulf nation this year, according to a report from the firm. That’s up 70% since 2022 and means the country will take pole position for the third straight year.
As governments around the world increasingly count on wealthy residents to plug fiscal gaps, low-tax jurisdictions have become more attractive destinations for the rich. Add in a time zone conducive for trading most markets, airports that’re well connected to global hubs, some of the best restaurants, hotels and luxury housing — and it becomes clear why the United Arab Emirates has managed to leapfrog other countries.
A wave of high net worth individuals flocked to Dubai during the pandemic — the city shunned lockdowns for the most part and vaccinations were easily available — and the trend gathered pace when Russia invaded Ukraine. More recently, billionaires have flocked to Abu Dhabi, which has emerged as the world’s newest wealth haven.
Favorable government policies have also helped. “High net worth individuals like to operate in markets where they’re treated as partners,” Philippe Amarante, Henley & Partners’ Middle East Managing Partner told my colleague Joumanna Bercetche on Bloomberg TV. “So, it all comes together in as a perfect equation, and I’d say that’s the key instrument of attraction for the UAE.”
More than 6,700 millionaires are expected to move to the Gulf nation this year, according to a report from the firm. That’s up 70% since 2022 and means the country will take pole position for the third straight year.