BlackRock Gets Saudi Arabia Approval for Regional HQ in Riyadh - Bloomberg
BlackRock Inc. received approval from Saudi Arabia to set up its regional headquarters in Riyadh, the latest sign that the kingdom is having some success in attracting more financial firms to set up bases in the country.
With the move, BlackRock will be able to expand its operations across the Middle East, according to a statement. The company established BlackRock Saudi Arabia Company six years ago and is regulated by the kingdom’s Capital Market Authority.
“BlackRock plays an important role in Saudi Arabia’s asset management landscape,” Hassan Alduhaim, senior adviser of the minister of investment of Saudi Arabia, said in the statement. “We look forward to BlackRock’s continued growth in Saudi Arabia and the Region.”
Under new 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.
More than 500 companies have set up their regional headquarters in Riyadh since the launch of the kingdom’s program, Alduhaim said in the statement.
That includes Goldman Sachs Group Inc., which earlier this year became the first Wall Street bank to received a license from the kingdom’s Ministry of Investment.
BlackRock has been intensifying its efforts to grow in the kingdom. Earlier this year, the company announced it would get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the Middle East and build a Riyadh-based investments team.
The $10.5 trillion asset manager in recent months also hosted a gathering of top corporate executives and government officials in Riyadh, the firm’s first event of this scale in the Saudi capital.
Thursday, 31 October 2024
Emirates Says Jet Delays Are Disrupting Its Plans for Growth - Bloomberg
Emirates Says Jet Delays Are Disrupting Its Plans for Growth - Bloomberg
Emirates said aircraft delays from Boeing Co. and Airbus SE are disrupting the carrier’s growth plans, and added costs dwarf the compensation the Gulf carrier has received from the planemakers.
The setbacks include lost business from expansion it’s had to put off, as well as added costs to overhaul existing aircraft, Chief Commercial Officer Adnan Kazim said in an interview.
“There are a lot of missed opportunities,” Kazim said. “With how the growth is coming in, we are definitely in need of these aircraft now or yesterday even.”
Emirates is the latest airline to speak out about jet delivery delays costing them business. Deutsche Lufthansa AG CEO Carsten Spohr said this week that the hold-up in handovers was costing the airline several hundred million euros in annual earnings.
Emirates is spending $4 billion overhauling its existing fleet of Airbus A380 double-deckers and Boeing 777 jets, as the entry into service of the 777X that will replace those planes has been further delayed until 2026, while the first handover of the A350 model has been postponed multiple times this year.
The delays are creating a disruption to the airline’s growth plans and there is a shortage in capacity coming along the way, Kazim said. The date for entry into service of the 777X “has gone through many alterations in the past,” that the airline could no longer expect a clear time line for when it will join the fleet.
This month, Boeing said that it would push back plans for the 777X’s entry into service by another year to 2026 due to ongoing certification issues. The model was first scheduled to be delivered in 2020. Emirates has orders for over 200 777X, almost half the model’s total backlog.
Emirates said aircraft delays from Boeing Co. and Airbus SE are disrupting the carrier’s growth plans, and added costs dwarf the compensation the Gulf carrier has received from the planemakers.
The setbacks include lost business from expansion it’s had to put off, as well as added costs to overhaul existing aircraft, Chief Commercial Officer Adnan Kazim said in an interview.
“There are a lot of missed opportunities,” Kazim said. “With how the growth is coming in, we are definitely in need of these aircraft now or yesterday even.”
Emirates is the latest airline to speak out about jet delivery delays costing them business. Deutsche Lufthansa AG CEO Carsten Spohr said this week that the hold-up in handovers was costing the airline several hundred million euros in annual earnings.
Emirates is spending $4 billion overhauling its existing fleet of Airbus A380 double-deckers and Boeing 777 jets, as the entry into service of the 777X that will replace those planes has been further delayed until 2026, while the first handover of the A350 model has been postponed multiple times this year.
The delays are creating a disruption to the airline’s growth plans and there is a shortage in capacity coming along the way, Kazim said. The date for entry into service of the 777X “has gone through many alterations in the past,” that the airline could no longer expect a clear time line for when it will join the fleet.
This month, Boeing said that it would push back plans for the 777X’s entry into service by another year to 2026 due to ongoing certification issues. The model was first scheduled to be delivered in 2020. Emirates has orders for over 200 777X, almost half the model’s total backlog.
#SaudiArabia's Hassana eyes investment in Brookfield Middle East fund | Reuters
Saudi Arabia's Hassana eyes investment in Brookfield Middle East fund | Reuters
Hassana, the investment arm of Saudi Arabia's main pension fund, is considering becoming an anchor investor in Brookfield's (BN.TO), opens new tab new $2 billion Middle East fund, it said on Thursday.
That would bring Hassana on board with the kingdom's PIF sovereign wealth fund, which announced on Wednesday that it had entered a non-binding agreement to become an anchor investor in the Brookfield Middle East Partners fund.
Hassana could allocate up to $500 million to the fund, in addition to Brookfield's own $500 million commitment, the statement said. PIF had not disclosed the size of its potential backing.
The Brookfield fund will target buyouts, structured solutions and other investment opportunities across a range of sectors including industrials, consumer and business services, technology and healthcare.
Hassana has become an increasingly active global investor since the merger of the kingdom's General Organization of Social Insurance and the Public Pension Agency in 2021.
In a separate statement on Thursday, Hassana said it was considering becoming an anchor investor in a $1 billion Middle East-focused fund launched by U.S. investment firm EIG. Hassana said it would allocate up to $250 million for the fund, which will target infrastructure and energy transition projects.
Hassana, the investment arm of Saudi Arabia's main pension fund, is considering becoming an anchor investor in Brookfield's (BN.TO), opens new tab new $2 billion Middle East fund, it said on Thursday.
That would bring Hassana on board with the kingdom's PIF sovereign wealth fund, which announced on Wednesday that it had entered a non-binding agreement to become an anchor investor in the Brookfield Middle East Partners fund.
Hassana could allocate up to $500 million to the fund, in addition to Brookfield's own $500 million commitment, the statement said. PIF had not disclosed the size of its potential backing.
The Brookfield fund will target buyouts, structured solutions and other investment opportunities across a range of sectors including industrials, consumer and business services, technology and healthcare.
Hassana has become an increasingly active global investor since the merger of the kingdom's General Organization of Social Insurance and the Public Pension Agency in 2021.
In a separate statement on Thursday, Hassana said it was considering becoming an anchor investor in a $1 billion Middle East-focused fund launched by U.S. investment firm EIG. Hassana said it would allocate up to $250 million for the fund, which will target infrastructure and energy transition projects.
Most Gulf markets gain on Israel-Hezbollah ceasefire hopes | Reuters
Most Gulf markets gain on Israel-Hezbollah ceasefire hopes | Reuters
Most stock markets in the Gulf ended higher on Thursday, helped by hopes for a potential ceasefire deal between Israel and Hezbollah.
Lebanon's prime minister expressed hope on Wednesday that a ceasefire deal with Israel would be announced within days as Israel's public broadcaster published what it said was a draft agreement providing for an initial 60-day truce.
The push for a ceasefire for Lebanon is taking place alongside a similar diplomatic drive to end hostilities in Gaza.
In Qatar, the index (.QSI), opens new tab gained 0.6%, led by a 0.8% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab and a 3.3% jump in Qatar Navigation (QNNC.QA), opens new tab.
The Abu Dhabi index (.FTFADGI), opens new tab closed 0.4% higher, with conglomerate International Holding (IHC.AD), opens new tab gaining 0.7%.
Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to conclude higher.
Oil prices — a catalyst for the Gulf's financial markets — stabilised after rallying the previous day on stronger-than-expected U.S. fuel demand and reports that producer group OPEC+ could delay a planned output increase.
Manufacturing activity in China, the world's biggest oil importer, expanded for the first time in six months in October, suggesting stimulus measures are having an effect.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.9%, as most of its constituents gained, including Ezz Steel Co (ESRS.CA), opens new tab, which was up 3.6%.
The International Monetary Fund's $8 billion programme for Egypt is making progress, with the fund's top regional official stating that any discussions to further increase the overall programme size are premature.
Most stock markets in the Gulf ended higher on Thursday, helped by hopes for a potential ceasefire deal between Israel and Hezbollah.
Lebanon's prime minister expressed hope on Wednesday that a ceasefire deal with Israel would be announced within days as Israel's public broadcaster published what it said was a draft agreement providing for an initial 60-day truce.
The push for a ceasefire for Lebanon is taking place alongside a similar diplomatic drive to end hostilities in Gaza.
In Qatar, the index (.QSI), opens new tab gained 0.6%, led by a 0.8% rise in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab and a 3.3% jump in Qatar Navigation (QNNC.QA), opens new tab.
The Abu Dhabi index (.FTFADGI), opens new tab closed 0.4% higher, with conglomerate International Holding (IHC.AD), opens new tab gaining 0.7%.
Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to conclude higher.
Oil prices — a catalyst for the Gulf's financial markets — stabilised after rallying the previous day on stronger-than-expected U.S. fuel demand and reports that producer group OPEC+ could delay a planned output increase.
Manufacturing activity in China, the world's biggest oil importer, expanded for the first time in six months in October, suggesting stimulus measures are having an effect.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.9%, as most of its constituents gained, including Ezz Steel Co (ESRS.CA), opens new tab, which was up 3.6%.
The International Monetary Fund's $8 billion programme for Egypt is making progress, with the fund's top regional official stating that any discussions to further increase the overall programme size are premature.
Wednesday, 30 October 2024
#SaudiArabia’s PIF to Anchor $2 Billion Brookfield Mideast Fund - Bloomberg
Saudi Arabia’s PIF to Anchor $2 Billion Brookfield Mideast Fund - Bloomberg
Saudi Arabia will back Brookfield Asset Management Ltd.’s new $2 billion Middle East fund, giving the Canadian investment firm extra financial firepower to pursue deals in the oil-rich Gulf region.
The Public Investment Fund will anchor Brookfield Middle East Partners, which will invest in businesses in Saudi Arabia and the wider region, according a statement Wednesday. At least half of the fund will be allocated to deals within the kingdom and to international firms looking to expand locally — a move aimed at attracting foreign direct investment.
The memorandum of understanding was unveiled at the kingdom’s annual investors confab known as the Future Investment Initiative, confirming an earlier report from Bloomberg News. The deal strengthens ties between Brookfield and the PIF, which manage about $1 trillion in assets each.
The new fund will target buyouts, structured solutions and other investment opportunities across a range of strategic sectors.
“This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region, while facilitating knowledge transfer and capacity-building within Saudi Arabia,” said Yazeed Al Humied, who is one of the fund’s two deputy governors and runs its Middle East and North Africa unit.
The PIF is Saudi Arabia’s go-to vehicle to carry out the ambitious domestic reform agenda of the country’s Crown Prince Mohammed bin Salman. It has been a prolific investor in recent years across the globe, although its focus has recently shifted to domestic markets where it’s the driving force behind mega-projects such as the $1.5 trillion Neom city development.
“People used to come to us and ask for money,” the fund’s Governor Yasir Al Rumayyan said Tuesday on a panel at the FII. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”
The partnership marks the latest example of a foreign firm raising a Middle East-focused fund. Goldman Sachs Group Inc. is working on one, Bloomberg News has reported, while the PIF has committed $5 billion to BlackRock Inc. for local investments.
Last year, Brookfield said it would open an office in Riyadh, the latest international firm to set up shop in the kingdom. It’s already one of the Middle East’s most active and largest institutional investors with about $12 billion invested in recent years, mostly in the United Arab Emirates.
Until now, those investments were done through its global funds. The firm’s recent regional deals include investments in a major private school operator and a regional payments firm. It also sold a stake in the tallest office tower in Dubai’s financial district earlier this year.
Other international asset managers are also seeking to raise dedicated funds for the region. BlackRock Inc. is seeking $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, Bloomberg News reported in May.
Saudi Arabia will back Brookfield Asset Management Ltd.’s new $2 billion Middle East fund, giving the Canadian investment firm extra financial firepower to pursue deals in the oil-rich Gulf region.
The Public Investment Fund will anchor Brookfield Middle East Partners, which will invest in businesses in Saudi Arabia and the wider region, according a statement Wednesday. At least half of the fund will be allocated to deals within the kingdom and to international firms looking to expand locally — a move aimed at attracting foreign direct investment.
The memorandum of understanding was unveiled at the kingdom’s annual investors confab known as the Future Investment Initiative, confirming an earlier report from Bloomberg News. The deal strengthens ties between Brookfield and the PIF, which manage about $1 trillion in assets each.
The new fund will target buyouts, structured solutions and other investment opportunities across a range of strategic sectors.
“This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region, while facilitating knowledge transfer and capacity-building within Saudi Arabia,” said Yazeed Al Humied, who is one of the fund’s two deputy governors and runs its Middle East and North Africa unit.
The PIF is Saudi Arabia’s go-to vehicle to carry out the ambitious domestic reform agenda of the country’s Crown Prince Mohammed bin Salman. It has been a prolific investor in recent years across the globe, although its focus has recently shifted to domestic markets where it’s the driving force behind mega-projects such as the $1.5 trillion Neom city development.
“People used to come to us and ask for money,” the fund’s Governor Yasir Al Rumayyan said Tuesday on a panel at the FII. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”
The partnership marks the latest example of a foreign firm raising a Middle East-focused fund. Goldman Sachs Group Inc. is working on one, Bloomberg News has reported, while the PIF has committed $5 billion to BlackRock Inc. for local investments.
Last year, Brookfield said it would open an office in Riyadh, the latest international firm to set up shop in the kingdom. It’s already one of the Middle East’s most active and largest institutional investors with about $12 billion invested in recent years, mostly in the United Arab Emirates.
Until now, those investments were done through its global funds. The firm’s recent regional deals include investments in a major private school operator and a regional payments firm. It also sold a stake in the tallest office tower in Dubai’s financial district earlier this year.
Other international asset managers are also seeking to raise dedicated funds for the region. BlackRock Inc. is seeking $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, Bloomberg News reported in May.
VinFast in non-binding $1 bln funding deal with #UAE investors, source says | Reuters
VinFast in non-binding $1 bln funding deal with UAE investors, source says | Reuters
Vietnamese electric car maker VinFast has signed a non-binding deal with a consortium of Emirati investors to receive at least $1 billion in funding, a person with direct knowledge of the agreement said.
The source told Reuters there was no clear timeframe for the possible disbursement from the group, led by Emirates Driving Company (DRIVE.AD), opens new tab, a provider of driving education services in Abu Dhabi.
Bloomberg News earlier on Wednesday reported VinFast was set to receive at the least $1 billion in investments from the Emirati group.
Emirates Driving Company (EDC) did not immediately respond to an email seeking confirmation. Vingroup (VIC.HM), opens new tab, the parent company of VinFast, declined to comment about the size of the investment.
Vingroup said in a press release on Tuesday it had signed a memorandum of understanding with EDC that "will lead a consortium investing in VinFast," but Vingroup did not give details of the size of the possible investment.
Tuesday's press release and the source did not name any other investor.
VinFast listed on the Nasdaq in August last year when it said it had a number of strategic investors lining up but none have been announced yet.
The company in September reported a net loss of $773.5 million in its April-June quarter, an increase of 27% from the first quarter and 40% bigger than the same period last year.
Last week, it said it delivered 21,912 electric vehicles in the third quarter, up 66% from the sequentially previous quarter.
Volkswagen hit another bump in the road on Wednesday in what was already a difficult week.00:0201:58
Earlier this week, Vietnam signed a comprehensive economic partnership agreement with the United Arab Emirates, its first free-trade deal with a Middle East country.
Vietnamese electric car maker VinFast has signed a non-binding deal with a consortium of Emirati investors to receive at least $1 billion in funding, a person with direct knowledge of the agreement said.
The source told Reuters there was no clear timeframe for the possible disbursement from the group, led by Emirates Driving Company (DRIVE.AD), opens new tab, a provider of driving education services in Abu Dhabi.
Bloomberg News earlier on Wednesday reported VinFast was set to receive at the least $1 billion in investments from the Emirati group.
Emirates Driving Company (EDC) did not immediately respond to an email seeking confirmation. Vingroup (VIC.HM), opens new tab, the parent company of VinFast, declined to comment about the size of the investment.
Vingroup said in a press release on Tuesday it had signed a memorandum of understanding with EDC that "will lead a consortium investing in VinFast," but Vingroup did not give details of the size of the possible investment.
Tuesday's press release and the source did not name any other investor.
VinFast listed on the Nasdaq in August last year when it said it had a number of strategic investors lining up but none have been announced yet.
The company in September reported a net loss of $773.5 million in its April-June quarter, an increase of 27% from the first quarter and 40% bigger than the same period last year.
Last week, it said it delivered 21,912 electric vehicles in the third quarter, up 66% from the sequentially previous quarter.
Volkswagen hit another bump in the road on Wednesday in what was already a difficult week.00:0201:58
Earlier this week, Vietnam signed a comprehensive economic partnership agreement with the United Arab Emirates, its first free-trade deal with a Middle East country.
Gulf bourses end mixed, #Qatar retreats ahead of referendum | Reuters
Gulf bourses end mixed, Qatar retreats ahead of referendum | Reuters
Stock markets in the Middle East ended mixed on Wednesday, while the Qatari index tumbled ahead of a constitutional amendment referendum.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.4%, weighed down by a 1.8% fall in the ACWA Power Company (2082.SE), opens new tab, while Saudi Awwal Bank (1060.SE), opens new tab retreated 3%.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with toll operator Salik Company (SALIK.DU), opens new tab advancing 6.8% and Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, closing 1.7% higher.
Dubai - the regional trade and tourism hub - approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler Sheikh Mohammed bin Rashid al-Maktoum said in a post on X.
Sheikh Mohammed said that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
In Abu Dhabi the index (.FTFADGI), opens new tab added 0.2%, helped by a 2.7% increase in Aldar Properties (ALDAR.AD), opens new tab, a day after the developer reported a sharp rise in quarterly net profit.
The Qatari benchmark (.QSI), opens new tab dropped 1.2%, with most of its constituents in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which was down 1%.
Qatari Emir Sheikh Tamim bin Hamad Al Thani has set Nov. 5 as the date for a referendum on constitutional amendments, the Gulf country's Amiri Diwan administrative office reported on Tuesday.
The rare referendum is for citizens to vote on a set of constitutional amendments, including a proposal that would abandon an effort to introduce elections.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab losing 2.3%.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.4%, weighed down by a 1.8% fall in the ACWA Power Company (2082.SE), opens new tab, while Saudi Awwal Bank (1060.SE), opens new tab retreated 3%.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with toll operator Salik Company (SALIK.DU), opens new tab advancing 6.8% and Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, closing 1.7% higher.
Dubai - the regional trade and tourism hub - approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler Sheikh Mohammed bin Rashid al-Maktoum said in a post on X.
Sheikh Mohammed said that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
In Abu Dhabi the index (.FTFADGI), opens new tab added 0.2%, helped by a 2.7% increase in Aldar Properties (ALDAR.AD), opens new tab, a day after the developer reported a sharp rise in quarterly net profit.
The Qatari benchmark (.QSI), opens new tab dropped 1.2%, with most of its constituents in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which was down 1%.
Qatari Emir Sheikh Tamim bin Hamad Al Thani has set Nov. 5 as the date for a referendum on constitutional amendments, the Gulf country's Amiri Diwan administrative office reported on Tuesday.
The rare referendum is for citizens to vote on a set of constitutional amendments, including a proposal that would abandon an effort to introduce elections.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab losing 2.3%.
FII: #SaudiArabia Upbeat on FDI as 2030 Goal Remains Distant - Bloomberg
FII: Saudi Arabia Upbeat on FDI as 2030 Goal Remains Distant - Bloomberg
Saudi Arabia sees recent trends in foreign direct investment moving in the right direction, while conceding the kingdom has a long way to go to meet its 2030 goal of attracting $100 billion a year.
Recent figures are “extremely positive,” Investment Minister Khalid Al-Falih said in an interview with Bloomberg Television at Saudi Arabia’s Future Investment Initiative in Riyadh on Tuesday. “All the leading indicators are pointing upward. All lights are flashing green.”
The path to reaching the 2030 target will be “steep” but “manageable,” he added.
The Saudi Investment Minister said trade shifts will happen but we shouldn’t ‘over-dramatize’ the risks of trade wars. Khalid Al-Falih also told Bloomberg that current FDI to Saudi Arabia is around 26 billion dollars and the plan is to grow to 100 billion dollars by 2030 as part of the kingdom’s ‘Vision 2030’. He spoke with Bloomberg’s Joumanna Bercetche on the sidelines of the Future Investment Initiative conference in Riyadh.
Saudi Arabia’s FDI inflows amounted to about $26 billion last year, above the government’s self-set target but still the lowest level since 2020. The data was recently revised higher, from $19 billion, to reflect what Al-Falih said was a methodology in line with International Monetary Fund standards.
The kingdom aims to quadruple FDI inflows by 2030 in a bid to share some of the financial burden of spending on its economic diversification plan. Crown Prince Mohammed Bin Salman’s government also sees foreign expertise as critical to training the local population in new industries like technology and minerals exploration and catalyzing growth in those sectors.
Saudi Arabia recently announced an overhaul of its investment law in a bid to cut bureaucratic red tape and make it easier for foreign investors to deploy cash into the country. The new rules are due to take effect next year.
Al-Falih spoke as global heavyweights in banking, finance and investing gathered in Riyadh to discuss Artificial Intelligence, the US election and state of economy, as well as geopolitical tensions in the Middle East. Among the most high-profile guests were Citigroup Inc. Chief Executive Officer Jane Fraser, BlackRock Inc.’s Larry Fink and David Solomon of Goldman Sachs Group Inc.
Goldman announced plans at FII to open an office in Riyadh’s new financial district next year. The US company was the first of the major international banks to obtain its regional headquarters license for Saudi Arabia earlier this year.
The Saudis require firms to establish a so-called RHQ or risk losing out on securing lucrative contracts with the government and its network of related entities.
Saudi Arabia has now granted around 540 RHQ licenses, Al-Falih said.
Saudi Arabia sees recent trends in foreign direct investment moving in the right direction, while conceding the kingdom has a long way to go to meet its 2030 goal of attracting $100 billion a year.
Recent figures are “extremely positive,” Investment Minister Khalid Al-Falih said in an interview with Bloomberg Television at Saudi Arabia’s Future Investment Initiative in Riyadh on Tuesday. “All the leading indicators are pointing upward. All lights are flashing green.”
The path to reaching the 2030 target will be “steep” but “manageable,” he added.
The Saudi Investment Minister said trade shifts will happen but we shouldn’t ‘over-dramatize’ the risks of trade wars. Khalid Al-Falih also told Bloomberg that current FDI to Saudi Arabia is around 26 billion dollars and the plan is to grow to 100 billion dollars by 2030 as part of the kingdom’s ‘Vision 2030’. He spoke with Bloomberg’s Joumanna Bercetche on the sidelines of the Future Investment Initiative conference in Riyadh.
Saudi Arabia’s FDI inflows amounted to about $26 billion last year, above the government’s self-set target but still the lowest level since 2020. The data was recently revised higher, from $19 billion, to reflect what Al-Falih said was a methodology in line with International Monetary Fund standards.
The kingdom aims to quadruple FDI inflows by 2030 in a bid to share some of the financial burden of spending on its economic diversification plan. Crown Prince Mohammed Bin Salman’s government also sees foreign expertise as critical to training the local population in new industries like technology and minerals exploration and catalyzing growth in those sectors.
Saudi Arabia recently announced an overhaul of its investment law in a bid to cut bureaucratic red tape and make it easier for foreign investors to deploy cash into the country. The new rules are due to take effect next year.
Al-Falih spoke as global heavyweights in banking, finance and investing gathered in Riyadh to discuss Artificial Intelligence, the US election and state of economy, as well as geopolitical tensions in the Middle East. Among the most high-profile guests were Citigroup Inc. Chief Executive Officer Jane Fraser, BlackRock Inc.’s Larry Fink and David Solomon of Goldman Sachs Group Inc.
Goldman announced plans at FII to open an office in Riyadh’s new financial district next year. The US company was the first of the major international banks to obtain its regional headquarters license for Saudi Arabia earlier this year.
The Saudis require firms to establish a so-called RHQ or risk losing out on securing lucrative contracts with the government and its network of related entities.
Saudi Arabia has now granted around 540 RHQ licenses, Al-Falih said.
Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg
Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg
Investcorp Holdings has inked three deals through a new investment vehicle anchored by China’s sovereign wealth fund that was set up earlier this year to target opportunities within the Middle East.
“That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV. The biggest Mideast alternative asset manager had initially planned to set up a $1 billion fund, backed by China Investment Corp., to capitalize on growing ties between Gulf oil exporters and the world’s second-largest economy.
The fund will focus on investments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, reflecting growing international investor interest in the region, Kapoor said in an interview on the sidelines of the Future Investment Initiative in Riyadh.
“We’ve got three deals inside the fund, all of them are doing particularly well, and all of them in the same space, so consumer services, healthcare, business services,” he said.
Investcorp is among a raft of companies that are setting up Middle East-focused funds. BlackRock Inc. is set to get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the region and Goldman Sachs Group Inc. is also working to raise money for one.
The firm counts some of the Middle East’s wealthiest royals and business moguls among its backers. Abu Dhabi wealth fund Mubadala Investment Co. is also a shareholder, and Kapoor expects more partnerships with sovereign investors in the future.
“Those are rewarding partnerships, they last generations, they are not just one transaction,” he said. “Going forward, we would probably see more of those rather than fewer.”
Investcorp has about $53 billion assets under management, and hopes to grow that to $100 billion, according to Kapoor. “It is all about scaling up that business footprint” across the US, Europe, Middle East and Asia and across asset classes including private equity and private credit, he said.
Initially focused on investing in the US and Europe, Investcorp is perhaps best known for investments in Tiffany & Co. and Gucci Ltd., made in its early years. Its operations now include private equity, real estate, private credit and infrastructure investing.
The firm announced a sweeping reshuffle earlier this year, which resulted in the co-chief executive officer role being scrapped, with the chairman taking on more responsibilities. As part of those changes, Kapoor, who was a co-CEO, took on a new role as vice chairman and CIO.
Investcorp Holdings has inked three deals through a new investment vehicle anchored by China’s sovereign wealth fund that was set up earlier this year to target opportunities within the Middle East.
“That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV. The biggest Mideast alternative asset manager had initially planned to set up a $1 billion fund, backed by China Investment Corp., to capitalize on growing ties between Gulf oil exporters and the world’s second-largest economy.
The fund will focus on investments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, reflecting growing international investor interest in the region, Kapoor said in an interview on the sidelines of the Future Investment Initiative in Riyadh.
“We’ve got three deals inside the fund, all of them are doing particularly well, and all of them in the same space, so consumer services, healthcare, business services,” he said.
Investcorp is among a raft of companies that are setting up Middle East-focused funds. BlackRock Inc. is set to get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the region and Goldman Sachs Group Inc. is also working to raise money for one.
The firm counts some of the Middle East’s wealthiest royals and business moguls among its backers. Abu Dhabi wealth fund Mubadala Investment Co. is also a shareholder, and Kapoor expects more partnerships with sovereign investors in the future.
“Those are rewarding partnerships, they last generations, they are not just one transaction,” he said. “Going forward, we would probably see more of those rather than fewer.”
Investcorp has about $53 billion assets under management, and hopes to grow that to $100 billion, according to Kapoor. “It is all about scaling up that business footprint” across the US, Europe, Middle East and Asia and across asset classes including private equity and private credit, he said.
Initially focused on investing in the US and Europe, Investcorp is perhaps best known for investments in Tiffany & Co. and Gucci Ltd., made in its early years. Its operations now include private equity, real estate, private credit and infrastructure investing.
The firm announced a sweeping reshuffle earlier this year, which resulted in the co-chief executive officer role being scrapped, with the chairman taking on more responsibilities. As part of those changes, Kapoor, who was a co-CEO, took on a new role as vice chairman and CIO.
#Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg
Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg
The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.
The emirate’s finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn’t public. Both firms appeared in recent days in the registry of the DIFC free zone as “inactive - suspended.” The registry doesn’t reflect the start date for the suspensions.
It’s not yet clear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees, but many others remain active, according to people with direct knowledge of the matter, who declined to be named speaking about private matters. The DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it, the people said.
The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they believe they should be allowed to continue. Meanwhile, they’re not allowed to operate. If authorities are satisfied with the additional information provided, then the suspension can be reversed.
Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., also appeared in recent days in the DIFC registry as “inactive - suspended.”
A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.
A spokesman for Ocean Leonid said in a statement on Tuesday that the company has filed its “formal notice of objection with the DIFC Registrar.”
“OL are in active discussions with the DIFC in order to provide all information required by the DIFC on all areas of interest to them relating to OL,” he said. “The company operates in full compliance with all relevant laws and regulations, and has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership being ISFAD Fund LP. Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC in order that the suspension is lifted based on actual documentary evidence established under law.”
Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva and Singapore, Bloomberg News reported on Oct. 24. A spokesman for Ocean Leonid said earlier this month the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.
A lawyer for Shamkhani said his client has no relationship with either Milavous or Ocean Leonid.
In August, Bloomberg News reported the role that Shamkhani, whose father is a senior adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, plays in the world of Iranian and Russian oil trading, with Milavous said to be operating as one of the parent firms in his network.
The stories are part of a year-long investigation that’s involved interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. The US has taken steps to crack down on the trading network, according to people familiar with the matter.
Shamkhani has denied most details in the Bloomberg reports, including owning any oil company, controlling a trading network or having a firm involved in commodities deals with Iran or Russia.
The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.
The emirate’s finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn’t public. Both firms appeared in recent days in the registry of the DIFC free zone as “inactive - suspended.” The registry doesn’t reflect the start date for the suspensions.
It’s not yet clear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees, but many others remain active, according to people with direct knowledge of the matter, who declined to be named speaking about private matters. The DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it, the people said.
The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they believe they should be allowed to continue. Meanwhile, they’re not allowed to operate. If authorities are satisfied with the additional information provided, then the suspension can be reversed.
Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., also appeared in recent days in the DIFC registry as “inactive - suspended.”
A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.
A spokesman for Ocean Leonid said in a statement on Tuesday that the company has filed its “formal notice of objection with the DIFC Registrar.”
“OL are in active discussions with the DIFC in order to provide all information required by the DIFC on all areas of interest to them relating to OL,” he said. “The company operates in full compliance with all relevant laws and regulations, and has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership being ISFAD Fund LP. Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC in order that the suspension is lifted based on actual documentary evidence established under law.”
Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva and Singapore, Bloomberg News reported on Oct. 24. A spokesman for Ocean Leonid said earlier this month the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.
A lawyer for Shamkhani said his client has no relationship with either Milavous or Ocean Leonid.
In August, Bloomberg News reported the role that Shamkhani, whose father is a senior adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, plays in the world of Iranian and Russian oil trading, with Milavous said to be operating as one of the parent firms in his network.
The stories are part of a year-long investigation that’s involved interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. The US has taken steps to crack down on the trading network, according to people familiar with the matter.
Shamkhani has denied most details in the Bloomberg reports, including owning any oil company, controlling a trading network or having a firm involved in commodities deals with Iran or Russia.
Tuesday, 29 October 2024
#Dubai approves 2025-27 budget with $74bln in expenditures
Dubai approves 2025-27 budget with $74bln in expenditures
Dubai approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler, Sheikh Mohammed bin Rashid al-Maktoum, said in a post on X.
Dubai, one of the seven emirates of the United Arab Emirates and a regional trade and tourism hub, allocated 46% of its spending to infrastructure projects, including roads, bridges, and water drainage networks.
The Gulf city said in June that it would spend 30 billion dirhams ($8.2 billion) to boost its rainwater drainage system, after it was hit in April by the heaviest downpours recorded in the UAE in 75 years.
The infrastructure spending also includes a new airport. Sheikh Mohammed approved in April the airport's new passenger terminal, which is worth 128 billion dirhams ($35 billion).
Al Maktoum International Airport will be the largest in the world with an annual capacity of up to 260 million passengers, and will be five times the size of Dubai International Airport, which is already one of the world's busiest, the sheikh said at the time.
Sheikh Mohammed said 30% of the budget would be spent on health, education, and other public services.
He added that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
Dubai approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler, Sheikh Mohammed bin Rashid al-Maktoum, said in a post on X.
Dubai, one of the seven emirates of the United Arab Emirates and a regional trade and tourism hub, allocated 46% of its spending to infrastructure projects, including roads, bridges, and water drainage networks.
The Gulf city said in June that it would spend 30 billion dirhams ($8.2 billion) to boost its rainwater drainage system, after it was hit in April by the heaviest downpours recorded in the UAE in 75 years.
The infrastructure spending also includes a new airport. Sheikh Mohammed approved in April the airport's new passenger terminal, which is worth 128 billion dirhams ($35 billion).
Al Maktoum International Airport will be the largest in the world with an annual capacity of up to 260 million passengers, and will be five times the size of Dubai International Airport, which is already one of the world's busiest, the sheikh said at the time.
Sheikh Mohammed said 30% of the budget would be spent on health, education, and other public services.
He added that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
Aramco CEO says oil market balanced, sees average demand of 104.5 mln bpd in 2024 | Reuters
Aramco CEO says oil market balanced, sees average demand of 104.5 mln bpd in 2024 | Reuters
The oil market is currently balanced and demand is expected to average 104.5 million barrels per day this year, the CEO of Saudi Arabian oil giant Saudi Aramco (2222.SE), opens new tab said on Tuesday.
"I think the market is currently balanced today. Definitely the increase in interest rates, what happened in China, had an impact, but it is balanced in terms of demand-supply fundamentals," Amin Nasser told the Future Investment Initiative (FII) conference in Riyadh.
"We are looking at 104.5 an average for this year, the fourth quarter we are looking close to 106 million barrels," he added.
Nasser was speaking after oil prices fell 6% on Monday, their lowest since Oct. 1, after Israel's retaliatory strike on Iran at the weekend bypassed Tehran's oil infrastructure.
On Tuesday, prices were up over 1%.
Declining oil demand from China, the world's largest crude oil importer, has also been a drag on global oil consumption and prices.
Nasser said that in spite of a "small impact" on gasoline because of the build-up in electric vehicles and the economic situation, there was still growth in China.
"When people talk about China they are always trying to maximize the downside and ignoring the upside."
The oil market is currently balanced and demand is expected to average 104.5 million barrels per day this year, the CEO of Saudi Arabian oil giant Saudi Aramco (2222.SE), opens new tab said on Tuesday.
"I think the market is currently balanced today. Definitely the increase in interest rates, what happened in China, had an impact, but it is balanced in terms of demand-supply fundamentals," Amin Nasser told the Future Investment Initiative (FII) conference in Riyadh.
"We are looking at 104.5 an average for this year, the fourth quarter we are looking close to 106 million barrels," he added.
Nasser was speaking after oil prices fell 6% on Monday, their lowest since Oct. 1, after Israel's retaliatory strike on Iran at the weekend bypassed Tehran's oil infrastructure.
On Tuesday, prices were up over 1%.
Declining oil demand from China, the world's largest crude oil importer, has also been a drag on global oil consumption and prices.
Nasser said that in spite of a "small impact" on gasoline because of the build-up in electric vehicles and the economic situation, there was still growth in China.
"When people talk about China they are always trying to maximize the downside and ignoring the upside."
Most Gulf markets gain on earnings; geopolitics weigh | Reuters
Most Gulf markets gain on earnings; geopolitics weigh | Reuters
Most stock markets in the Gulf ended higher on Tuesday as a slew of corporate earnings lifted investor sentiment, although regional tensions limited gains.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 1.4% rise in Al Rajhi Bank (1120.SE), opens new tab and a 3.1% increase in Saudi Arabian Mining Company (1211.SE), opens new tab.
Elsewhere, Mobile Telecommunications Saudi Arabia (7030.SE), opens new tab, known as Zain KSA, added 0.4% following a rise in quarterly net profit.
Separately, the kingdom's investment minister said on Tuesday the number of companies in the kingdom with a regional headquarters had reached 540, ahead of a 2030 target of 500.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% higher, supported by a 0.4% increase in diversified holding firm Borouge (BOROUGE.AD), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 1%, with toll operator Salik Co (SALIK.DU), opens new tab rising 1.3%, and Emirates Central Cooling Systems Corp (EMPOWER.DU), opens new tab putting on 1.8%.
Oil prices - a catalyst for the Gulf's financial markets - rose more than 1%, reversing some of the previous session's 6% tumble, as a U.S. plan to buy oil for the Strategic Petroleum Reserve (SPR) provided some support, though wider concerns about weaker future demand growth exerted pressure.
The Qatari index (.QSI), opens new tab gained 0.8%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab climbing 1.1%, while petrochemical maker Industries Qatar (IQCD.QA), opens new tab rose 0.7% ahead of its earnings announcement.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.5%, hit by a 1.1% fall in Commercial International Bank (COMI.CA), opens new tab.
Most stock markets in the Gulf ended higher on Tuesday as a slew of corporate earnings lifted investor sentiment, although regional tensions limited gains.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 1.4% rise in Al Rajhi Bank (1120.SE), opens new tab and a 3.1% increase in Saudi Arabian Mining Company (1211.SE), opens new tab.
Elsewhere, Mobile Telecommunications Saudi Arabia (7030.SE), opens new tab, known as Zain KSA, added 0.4% following a rise in quarterly net profit.
Separately, the kingdom's investment minister said on Tuesday the number of companies in the kingdom with a regional headquarters had reached 540, ahead of a 2030 target of 500.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% higher, supported by a 0.4% increase in diversified holding firm Borouge (BOROUGE.AD), opens new tab.
Dubai's main share index (.DFMGI), opens new tab advanced 1%, with toll operator Salik Co (SALIK.DU), opens new tab rising 1.3%, and Emirates Central Cooling Systems Corp (EMPOWER.DU), opens new tab putting on 1.8%.
Oil prices - a catalyst for the Gulf's financial markets - rose more than 1%, reversing some of the previous session's 6% tumble, as a U.S. plan to buy oil for the Strategic Petroleum Reserve (SPR) provided some support, though wider concerns about weaker future demand growth exerted pressure.
The Qatari index (.QSI), opens new tab gained 0.8%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab climbing 1.1%, while petrochemical maker Industries Qatar (IQCD.QA), opens new tab rose 0.7% ahead of its earnings announcement.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.5%, hit by a 1.1% fall in Commercial International Bank (COMI.CA), opens new tab.
#Saudi's first China-focused ETF to become the largest in Middle East | Reuters
Saudi's first China-focused ETF to become the largest in Middle East | Reuters
Saudi Arabia's first exchange-traded funds (ETFs) that track Hong Kong-listed shares, mainly Chinese firms, are expected to be the largest such funds in the Middle East.
Trading of the product, which kicks off on Wednesday on the Saudi Stock Exchange, has raised more than $1.2 billion at the start, issuer Albilad Capital and its partner Hong Kong's CSOP Asset Management said.
The initial size will surpass the current largest Islamic ETF - Al Rayan Qatar ETF - listed on the Qatar Exchange, LSEG data shows.
As ties grow between Arab countries and Beijing and Hong Kong, the ETFs open doors for Middle East investors to gain easy access to capital markets in the world's second largest economy.
The Albilad CSOP MSCI Hong Kong China Equity ETF is sharia-compliant, CSOP said, adding that it invests in 30 stocks through a Hong Kong-listed ETF tracking the MSCI HK China Connect Select Index (3432.HK), opens new tab.
The top three holdings are delivery platform Meituan (3690.HK), opens new tab, power tools maker Techtronic Industries (0669.HK), opens new tab and sportswear maker Anta Sports (2020.HK), opens new tab.
The product "opens a new avenue for investors to engage with the dynamic growth of China through Hong Kong, all while adhering to Sharia principles," said Zaid AlMufarih, the chief executive of Albilad Capital.
Another ETF that tracks Hong Kong stocks, SAB Invest Hang Seng Hong Kong ETF, will be launched on Thursday by SAB Invest, an arm of Saudi Awwal Bank.
"At a time when Chinese markets have underperformed in recent years, this launch signals potential for value, particularly for investors in the MENA region, who are prepared to look past geopolitical friction," said Gary Dugan, chief executive of the Global CIO Office, based in Dubai.
Saudi Arabia's first exchange-traded funds (ETFs) that track Hong Kong-listed shares, mainly Chinese firms, are expected to be the largest such funds in the Middle East.
Trading of the product, which kicks off on Wednesday on the Saudi Stock Exchange, has raised more than $1.2 billion at the start, issuer Albilad Capital and its partner Hong Kong's CSOP Asset Management said.
The initial size will surpass the current largest Islamic ETF - Al Rayan Qatar ETF - listed on the Qatar Exchange, LSEG data shows.
As ties grow between Arab countries and Beijing and Hong Kong, the ETFs open doors for Middle East investors to gain easy access to capital markets in the world's second largest economy.
The Albilad CSOP MSCI Hong Kong China Equity ETF is sharia-compliant, CSOP said, adding that it invests in 30 stocks through a Hong Kong-listed ETF tracking the MSCI HK China Connect Select Index (3432.HK), opens new tab.
The top three holdings are delivery platform Meituan (3690.HK), opens new tab, power tools maker Techtronic Industries (0669.HK), opens new tab and sportswear maker Anta Sports (2020.HK), opens new tab.
The product "opens a new avenue for investors to engage with the dynamic growth of China through Hong Kong, all while adhering to Sharia principles," said Zaid AlMufarih, the chief executive of Albilad Capital.
Another ETF that tracks Hong Kong stocks, SAB Invest Hang Seng Hong Kong ETF, will be launched on Thursday by SAB Invest, an arm of Saudi Awwal Bank.
"At a time when Chinese markets have underperformed in recent years, this launch signals potential for value, particularly for investors in the MENA region, who are prepared to look past geopolitical friction," said Gary Dugan, chief executive of the Global CIO Office, based in Dubai.
#Saudi wealth fund to cut overseas investments | Reuters
Saudi wealth fund to cut overseas investments | Reuters
Saudi Arabia's sovereign wealth fund plans to cut its overseas investments by about a third, its governor told a conference in Riyadh on Tuesday, as the Kingdom taps into its resources to fund plans to wean the economy off oil.
Speaking on a panel of business, technology and finance leaders, Public Investment Fund Governor Yasir Al-Rumayyan said the sovereign wealth fund was more focused on the domestic economy and aiming to bring the fund's international investments down to between 18% and 20% of the total from 30%.
Global business, technology and financial leaders have converged on the Saudi capital for the annual Future Investment Initiative (FII) summit, an opportunity for attendees to forge relations with some of Saudi Arabia's biggest companies and its $925 billion sovereign wealth fund.
This year, the event may also test investor appetite in Saudi Arabia's economic transformation at a time when there are fears of widening conflict in the Middle East.
The sovereign wealth fund is the main vehicle for Crown Prince Mohammed bin Salman's plans to steer the Saudi economy away from oil, with investments of hundreds of billions of dollars to develop new sectors and create more sustainable revenue streams.
However, the fund has been scaling back some of its flagship "giga-projects" due to rising costs.
Al-Rumayyan said there had been a shift in the way the fund deploys its investments towards establishing joint ventures with both international and local companies.
"Now we see a shift from people who want us to invest or take our money to invest from there to co-investments," he told the conference.
The country's investment minister, Khalid-al-Falih, said on Tuesday that the number of foreign companies with regional headquarters in Saudi Arabia had reached 540, ahead of a 2030 target of 500.
Oil remains the mainstay of the Saudi economy and Energy Minister Prince Abdulaziz bin Salman told the same event that the country was committed to maintaining crude capacity at 12.3 million barrels per day.
Saudi Arabia's sovereign wealth fund plans to cut its overseas investments by about a third, its governor told a conference in Riyadh on Tuesday, as the Kingdom taps into its resources to fund plans to wean the economy off oil.
Speaking on a panel of business, technology and finance leaders, Public Investment Fund Governor Yasir Al-Rumayyan said the sovereign wealth fund was more focused on the domestic economy and aiming to bring the fund's international investments down to between 18% and 20% of the total from 30%.
Global business, technology and financial leaders have converged on the Saudi capital for the annual Future Investment Initiative (FII) summit, an opportunity for attendees to forge relations with some of Saudi Arabia's biggest companies and its $925 billion sovereign wealth fund.
This year, the event may also test investor appetite in Saudi Arabia's economic transformation at a time when there are fears of widening conflict in the Middle East.
The sovereign wealth fund is the main vehicle for Crown Prince Mohammed bin Salman's plans to steer the Saudi economy away from oil, with investments of hundreds of billions of dollars to develop new sectors and create more sustainable revenue streams.
However, the fund has been scaling back some of its flagship "giga-projects" due to rising costs.
Al-Rumayyan said there had been a shift in the way the fund deploys its investments towards establishing joint ventures with both international and local companies.
"Now we see a shift from people who want us to invest or take our money to invest from there to co-investments," he told the conference.
The country's investment minister, Khalid-al-Falih, said on Tuesday that the number of foreign companies with regional headquarters in Saudi Arabia had reached 540, ahead of a 2030 target of 500.
Oil remains the mainstay of the Saudi economy and Energy Minister Prince Abdulaziz bin Salman told the same event that the country was committed to maintaining crude capacity at 12.3 million barrels per day.
#AbuDhabi's CYVN Holdings enters non-binding deal to buy McLaren's automotive business | Reuters
Abu Dhabi's CYVN Holdings enters non-binding deal to buy McLaren's automotive business | Reuters
Abu Dhabi-based investment vehicle CYVN Holdings has entered a non-binding agreement to buy 100% of carmaker McLaren's automotive business from Mumtalakat, the sovereign wealth fund of Bahrain, the two Gulf firms said on Tuesday.
Under the potential deal, CYVN Holdings would also acquire a non-controlling stake in McLaren Group," CYVN and Mumtalakat said in a statement, without providing further details.
McLaren said in April Mumtalakat had acquired full ownership of the group, which includes the British supercar maker and Formula One team McLaren Racing.
"This transformative investment by CYVN Holdings would bring access to additional capital, advanced engineering expertise and pioneering technology, particularly in the field of electric vehicles," the firms said in the joint statement.
Abu Dhabi-based investment vehicle CYVN Holdings has entered a non-binding agreement to buy 100% of carmaker McLaren's automotive business from Mumtalakat, the sovereign wealth fund of Bahrain, the two Gulf firms said on Tuesday.
Under the potential deal, CYVN Holdings would also acquire a non-controlling stake in McLaren Group," CYVN and Mumtalakat said in a statement, without providing further details.
McLaren said in April Mumtalakat had acquired full ownership of the group, which includes the British supercar maker and Formula One team McLaren Racing.
"This transformative investment by CYVN Holdings would bring access to additional capital, advanced engineering expertise and pioneering technology, particularly in the field of electric vehicles," the firms said in the joint statement.
Monday, 28 October 2024
$50 Billion #Saudi Debt Drive Reflects Rising Financial Strain - Bloomberg
$50 Billion Saudi Debt Drive Reflects Rising Financial Strain - Bloomberg
Even as Wall Street heavyweights flock to Riyadh for a Davos-style conference, Saudi Arabia is grappling with low oil prices, budget deficits and challenges attracting foreign investment.
That’s forcing the kingdom to lean heavily on another source of funding: debt.
The Saudi government and entities like its Public Investment Fund have issued around $50 billion in bonds in 2024, according to data compiled by Bloomberg, which includes corporate and sovereign sales in US dollars and euros. That flurry of activity has made the oil-rich country one of the biggest issuers of international debt in emerging markets this year. It’s likely to borrow tens of billions of dollars more in 2025, according to Nadim Amatouri, director of fixed income research at Arqaam Capital.
This week, the kingdom kicks off its annual Future Investment Initiative, an event that will draw global names like Goldman Sachs Group Inc.’s David Solomon, Citigroup Inc.’s Jane Fraser and Alphabet Inc.’s President Ruth Porat. It will offer a look at investor appetite for Saudi Arabia as the country pushes to diversify from oil in the face of rising fiscal challenges.
Crude has been trading well below $100 a barrel, despite the kingdom having cut supply along with other members of the OPEC+ cartel, and hundreds of billions of dollars are being spent on Crown Prince Mohammed bin Salman’s Vision 2030 economic-transformation plan.
International investors have so far been slow to put money into key projects such as the new city of Neom.
Inflows of foreign direct investment were the lowest since 2020 last year and stagnated in the first half of 2024, making debt ever more vital to Riyadh’s ambitious projects and developments.
Even as Wall Street heavyweights flock to Riyadh for a Davos-style conference, Saudi Arabia is grappling with low oil prices, budget deficits and challenges attracting foreign investment.
That’s forcing the kingdom to lean heavily on another source of funding: debt.
The Saudi government and entities like its Public Investment Fund have issued around $50 billion in bonds in 2024, according to data compiled by Bloomberg, which includes corporate and sovereign sales in US dollars and euros. That flurry of activity has made the oil-rich country one of the biggest issuers of international debt in emerging markets this year. It’s likely to borrow tens of billions of dollars more in 2025, according to Nadim Amatouri, director of fixed income research at Arqaam Capital.
This week, the kingdom kicks off its annual Future Investment Initiative, an event that will draw global names like Goldman Sachs Group Inc.’s David Solomon, Citigroup Inc.’s Jane Fraser and Alphabet Inc.’s President Ruth Porat. It will offer a look at investor appetite for Saudi Arabia as the country pushes to diversify from oil in the face of rising fiscal challenges.
Crude has been trading well below $100 a barrel, despite the kingdom having cut supply along with other members of the OPEC+ cartel, and hundreds of billions of dollars are being spent on Crown Prince Mohammed bin Salman’s Vision 2030 economic-transformation plan.
International investors have so far been slow to put money into key projects such as the new city of Neom.
Inflows of foreign direct investment were the lowest since 2020 last year and stagnated in the first half of 2024, making debt ever more vital to Riyadh’s ambitious projects and developments.
Most Gulf bourses gain as Iran downplays Israel's strikes | Reuters
Most Gulf bourses gain as Iran downplays Israel's strikes | Reuters
Most stock markets in the Gulf ended higher on Monday as tensions eased after Iran played down Israel's strikes on military targets over the weekend, saying the air attack had caused only limited damage.
The strikes bypassed Tehran's oil and nuclear infrastructure and did not disrupt energy supplies, easing geopolitical tensions in the broader region.
And while that sent oil prices tumbling, the regional equity indexes gained.
Dubai's main share index (.DFMGI), opens new tab advanced 1.3%, led by a 3.6% jump in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 2.4% rise in toll operator Salik Company (SALIK.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 1.1% higher, with National Marine Dredging Co (NMDC.AD), opens new tab surging 9% after reporting a rise in third-quarter net profit, along with a special cash dividend of 2 billion dirhams ($544.53 million).
Separately, Lulu Retail Holdings, which runs one of the Middle East's biggest hypermarket chains, said on Monday it aims to raise up to 5.27 billion dirhams ($1.43 billion) in what is set to be the UAE's biggest initial public offering so far this year.
In the United Arab Emirates, the bourses trade from Monday to Friday unlike other Gulf financial markets which trade from Sunday to Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab - which gained more than 1.5% on Sunday - eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens new tab losing 2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.1%, hit by a 1.8% fall in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab.
Egypt has proposed an initial two-day ceasefire in Gaza to exchange four Israeli hostages of Hamas for some Palestinian prisoners, Egypt's president said on Sunday as Israeli military strikes killed 45 Palestinians across the enclave.
Most stock markets in the Gulf ended higher on Monday as tensions eased after Iran played down Israel's strikes on military targets over the weekend, saying the air attack had caused only limited damage.
The strikes bypassed Tehran's oil and nuclear infrastructure and did not disrupt energy supplies, easing geopolitical tensions in the broader region.
And while that sent oil prices tumbling, the regional equity indexes gained.
Dubai's main share index (.DFMGI), opens new tab advanced 1.3%, led by a 3.6% jump in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 2.4% rise in toll operator Salik Company (SALIK.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 1.1% higher, with National Marine Dredging Co (NMDC.AD), opens new tab surging 9% after reporting a rise in third-quarter net profit, along with a special cash dividend of 2 billion dirhams ($544.53 million).
Separately, Lulu Retail Holdings, which runs one of the Middle East's biggest hypermarket chains, said on Monday it aims to raise up to 5.27 billion dirhams ($1.43 billion) in what is set to be the UAE's biggest initial public offering so far this year.
In the United Arab Emirates, the bourses trade from Monday to Friday unlike other Gulf financial markets which trade from Sunday to Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab - which gained more than 1.5% on Sunday - eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens new tab losing 2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab lost 0.1%, hit by a 1.8% fall in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab.
Egypt has proposed an initial two-day ceasefire in Gaza to exchange four Israeli hostages of Hamas for some Palestinian prisoners, Egypt's president said on Sunday as Israeli military strikes killed 45 Palestinians across the enclave.
#Qatar Energy takes 50% stake in TotalEnergies solar project in Iraq | Reuters
QatarEnergy takes 50% stake in TotalEnergies solar project in Iraq | Reuters
QatarEnergy, one of the world's top suppliers of liquefied natural gas, said on Monday it had agreed to take a 50% stake in TotalEnergies' 1.25-gigawatt (TTEF.PA), opens new tab solar project in Iraq.
The French energy giant will retain the remaining 50% stake in the project, which is part of Iraq's $27 billion Gas Growth Integrated Project (GGIP), QatarEnergy said in a statement, without disclosing the size of the deal.
The GGIP initiative aims to improve Iraq's electricity supply, including by recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce Iraq's import bill. It also includes renewable energy projects.
Iraq currently imports between a third and 40% of its supply of electricity and gas from Iran, but continues to suffer from widespread power cuts, especially in the hot summer months when demand for power for cooling surges.
The solar project, which will be developed in phases to come online between 2025 and 2027, will generate up to 1.25 GW at peak using 2 million bifacial solar panels, QatarEnergy said.
It will be able provide electricity to about 350,000 homes in the oil-rich Basra region in southern Iraq, the company added.
QatarEnergy last year joined a consortium to implement the GGIP project with a 25% stake, while TotalEnergies and Iraq's Basra Oil Company held the remaining 45% and 30% stakes, respectively.
QatarEnergy, one of the world's top suppliers of liquefied natural gas, said on Monday it had agreed to take a 50% stake in TotalEnergies' 1.25-gigawatt (TTEF.PA), opens new tab solar project in Iraq.
The French energy giant will retain the remaining 50% stake in the project, which is part of Iraq's $27 billion Gas Growth Integrated Project (GGIP), QatarEnergy said in a statement, without disclosing the size of the deal.
The GGIP initiative aims to improve Iraq's electricity supply, including by recovering flared gas at three oilfields and using the gas to supply power plants, helping to reduce Iraq's import bill. It also includes renewable energy projects.
Iraq currently imports between a third and 40% of its supply of electricity and gas from Iran, but continues to suffer from widespread power cuts, especially in the hot summer months when demand for power for cooling surges.
The solar project, which will be developed in phases to come online between 2025 and 2027, will generate up to 1.25 GW at peak using 2 million bifacial solar panels, QatarEnergy said.
It will be able provide electricity to about 350,000 homes in the oil-rich Basra region in southern Iraq, the company added.
QatarEnergy last year joined a consortium to implement the GGIP project with a 25% stake, while TotalEnergies and Iraq's Basra Oil Company held the remaining 45% and 30% stakes, respectively.
#Saudi Finance Firm United International’s IPO Fully Covered in Minutes - Bloomberg
Saudi Finance Firm United International’s IPO Fully Covered in Minutes - Bloomberg
Saudi Arabian financial services firm United International Holding Co. had demand for all shares in its up to 990 million riyal ($264 million) initial public offering minutes after subscriptions opened, indicating continued demand for listings in the region.
Books were covered throughout the price range of 120 to 132 riyals per share, according to the terms of the deal seen by Bloomberg News. Its parent United Electronics Co. — known as Extra — is selling 7.5 million shares, or a 30% stake in the firm. Local funds agreed to subscribe to 15.6% of the offer, according to a separate announcement Monday.
HSBC Saudi Arabia is the financial advisor, lead manager and bookrunner on the offering, while EFG Hermes KSA is the joint-bookrunner. The subscription period for institutional investors will end on Nov. 4, while the offer will be open to retail investors on Nov. 19 and Nov. 20.
The deal came on a busy day for new share sales in the Middle East. Grocer Lulu Retail Holdings Plc, which is looking to raise $1.43 billion from its Abu Dhabi IPO, also had demand for all stock on offer soon after books opened. In Oman, OQ Exploration & Production declined in its trading debut after a record $2 billion share sale.
United International is one of a handful of private companies listing in the Middle East this year. Food delivery service Talabat and IT services firm Alpha Data are also planning listings in the United Arab Emirates, while buy-now-pay-later firm Tabby is considering plans to list in Saudi Arabia.
The Saudi firm is one of the largest providers of Shariah-compliant consumer finance services in the kingdom through its units — Tas’heel Finance and Procco Financial Services, according to its website.
Share sales in Riyadh have raised $15.8 billion so far this year, mainly driven by Saudi Aramco’s bumper $12.3 billion secondary sale.
Saudi Arabian financial services firm United International Holding Co. had demand for all shares in its up to 990 million riyal ($264 million) initial public offering minutes after subscriptions opened, indicating continued demand for listings in the region.
Books were covered throughout the price range of 120 to 132 riyals per share, according to the terms of the deal seen by Bloomberg News. Its parent United Electronics Co. — known as Extra — is selling 7.5 million shares, or a 30% stake in the firm. Local funds agreed to subscribe to 15.6% of the offer, according to a separate announcement Monday.
HSBC Saudi Arabia is the financial advisor, lead manager and bookrunner on the offering, while EFG Hermes KSA is the joint-bookrunner. The subscription period for institutional investors will end on Nov. 4, while the offer will be open to retail investors on Nov. 19 and Nov. 20.
The deal came on a busy day for new share sales in the Middle East. Grocer Lulu Retail Holdings Plc, which is looking to raise $1.43 billion from its Abu Dhabi IPO, also had demand for all stock on offer soon after books opened. In Oman, OQ Exploration & Production declined in its trading debut after a record $2 billion share sale.
United International is one of a handful of private companies listing in the Middle East this year. Food delivery service Talabat and IT services firm Alpha Data are also planning listings in the United Arab Emirates, while buy-now-pay-later firm Tabby is considering plans to list in Saudi Arabia.
The Saudi firm is one of the largest providers of Shariah-compliant consumer finance services in the kingdom through its units — Tas’heel Finance and Procco Financial Services, according to its website.
Share sales in Riyadh have raised $15.8 billion so far this year, mainly driven by Saudi Aramco’s bumper $12.3 billion secondary sale.
Lulu Retail seeks to raise up to $1.43 bln in #UAE's biggest IPO this year | Reuters
Lulu Retail seeks to raise up to $1.43 bln in UAE's biggest IPO this year | Reuters
Lulu Retail Holdings, which runs one of the Middle East's biggest hypermarket chains, said on Monday it aims to raise up to 5.27 billion dirhams ($1.43 billion) in what is set to be the UAE's biggest initial public offering so far this year.
The conglomerate, which runs more than 240 grocery stores in six Gulf countries, is offering 2.582 billion shares, equal to a 25% stake at an indicative price range of 1.94-2.04 dirhams per share, it said in a statement.
Books were covered multiple times within hours of opening as demand from investors exceeded the overall deal size, according to a person familiar with the matter who asked not to be identified.
Two sources involved in the IPO had previously told Reuters the offering could raise between $1.7 billion and $1.8 billion.
Founded in 1974 by Indian businessman Yusuff Ali, Lulu joins other grocery firms that have listed, such as United Arab Emirates-based Spinneys (SPINNEYS.DU), opens new tab this year and Saudi grocery retailer BinDawood Holding (4161.SE), opens new tab in 2020, amid a retail spending boom in the region.
Lulu Retail said cornerstone investors that had individually committed to subscribe to the offering included Abu Dhabi Pension Fund, the Emirates International Investment Company (EEIC) and the sovereign wealth funds of Bahrain and Oman.
They will invest about $205 million in total, it added.
The price range implies a market capitalisation of between $5.46 billion-$5.74 billion at the listing on the Abu Dhabi Securities Exchange, which is expected on Nov. 14, Lulu Retail said.
The Gulf region accounted for the vast majority of the 30 IPOs that took place in the Middle East and North Africa region over the first nine months of the year, which raised an overall $5 billion, according to LSEG data.
Lulu Retail Holdings, which runs one of the Middle East's biggest hypermarket chains, said on Monday it aims to raise up to 5.27 billion dirhams ($1.43 billion) in what is set to be the UAE's biggest initial public offering so far this year.
The conglomerate, which runs more than 240 grocery stores in six Gulf countries, is offering 2.582 billion shares, equal to a 25% stake at an indicative price range of 1.94-2.04 dirhams per share, it said in a statement.
Books were covered multiple times within hours of opening as demand from investors exceeded the overall deal size, according to a person familiar with the matter who asked not to be identified.
Two sources involved in the IPO had previously told Reuters the offering could raise between $1.7 billion and $1.8 billion.
Founded in 1974 by Indian businessman Yusuff Ali, Lulu joins other grocery firms that have listed, such as United Arab Emirates-based Spinneys (SPINNEYS.DU), opens new tab this year and Saudi grocery retailer BinDawood Holding (4161.SE), opens new tab in 2020, amid a retail spending boom in the region.
Lulu Retail said cornerstone investors that had individually committed to subscribe to the offering included Abu Dhabi Pension Fund, the Emirates International Investment Company (EEIC) and the sovereign wealth funds of Bahrain and Oman.
They will invest about $205 million in total, it added.
The price range implies a market capitalisation of between $5.46 billion-$5.74 billion at the listing on the Abu Dhabi Securities Exchange, which is expected on Nov. 14, Lulu Retail said.
The Gulf region accounted for the vast majority of the 30 IPOs that took place in the Middle East and North Africa region over the first nine months of the year, which raised an overall $5 billion, according to LSEG data.
The #Saudi factories powered by women
The Saudi factories powered by women
When Rawan al-Harbi graduated in 2017, she had expected to end up working in the female-dominated education sector. Instead, she found an opening at Johnson Controls Arabia, an air-conditioning plant in King Abdullah Economic City, 100km to the north of Jeddah.
When Rawan al-Harbi graduated in 2017, she had expected to end up working in the female-dominated education sector. Instead, she found an opening at Johnson Controls Arabia, an air-conditioning plant in King Abdullah Economic City, 100km to the north of Jeddah.
“At the beginning it was a bit hard. It’s a far-out location and everything is new,” the 29-year-old said on the factory floor. “But I got used to it.”
Today she is one of more than a dozen Saudi women working in the electrical and control department, sitting on workbenches across the room from male colleagues.
As the men solder components, the women cut and crimp the colourful wires that go into rooftop units and chillers used to cool big buildings frazzled by the desert sun.
The scene would have been unthinkable a decade ago.
Many freedoms accorded to women elsewhere remain forbidden in Saudi Arabia. Women are still required to obtain the consent of their male guardian to get married in most cases, and it remains difficult for them to initiate divorce. Rights groups have also criticised the practice of men receiving a larger share of the proceeds of inheritances than women.
But Crown Prince Mohammed bin Salman’s push to diversify the economy and modernise society has made the female presence in many aspects of daily life increasingly common. That includes spaces such as factories, once exclusively the preserve of men.
Sunday, 27 October 2024
Aramco’s Venture Arm Allocates $100 Million for AI Investments - Bloomberg
Aramco’s Venture Arm Allocates $100 Million for AI Investments - Bloomberg
Saudi Aramco’s venture arm has earmarked $100 million to invest in artificial intelligence startups as it looks to accelerate Saudi Arabia’s push to become a more competitive force in global AI.
Wa’ed Ventures has appointed an advisory board made up of former employees from companies including Meta Platforms Inc. and Amazon.com Inc. to explore early-stage investments in the sector. Money will be deployed over the next three years, according to the company.
“This investment will not only incentivize local entrepreneurs but also support the localization of global talent,” Anas Algahtani, acting chief executive officer of Wa’ed, said in a statement on Sunday.
The $500 million VC arm of oil giant Aramco has been doubling down on AI this year as Saudi Arabia aims to turn itself into a top 15 country for artificial intelligence. The fund recently invested $15 million in South Korean chipmaker Rebellions Inc. and also joined funding rounds for AI platform aiXplain and Peter Thiel-backed firm Tenderd.
Saudi Arabia’s AI strategy is to spend this decade using data and AI to drive the economic diversification agenda known as Vision 2030 — and then start competing globally after 2030.
It has been competing with the UAE for AI investment, with both racing to set up expensive data centers to support the technology and become the regional tech superpower.
Saudi Aramco’s venture arm has earmarked $100 million to invest in artificial intelligence startups as it looks to accelerate Saudi Arabia’s push to become a more competitive force in global AI.
Wa’ed Ventures has appointed an advisory board made up of former employees from companies including Meta Platforms Inc. and Amazon.com Inc. to explore early-stage investments in the sector. Money will be deployed over the next three years, according to the company.
“This investment will not only incentivize local entrepreneurs but also support the localization of global talent,” Anas Algahtani, acting chief executive officer of Wa’ed, said in a statement on Sunday.
The $500 million VC arm of oil giant Aramco has been doubling down on AI this year as Saudi Arabia aims to turn itself into a top 15 country for artificial intelligence. The fund recently invested $15 million in South Korean chipmaker Rebellions Inc. and also joined funding rounds for AI platform aiXplain and Peter Thiel-backed firm Tenderd.
Saudi Arabia’s AI strategy is to spend this decade using data and AI to drive the economic diversification agenda known as Vision 2030 — and then start competing globally after 2030.
It has been competing with the UAE for AI investment, with both racing to set up expensive data centers to support the technology and become the regional tech superpower.
Gulf markets rise as Iran plays down Israel's strikes | Reuters
Gulf markets rise as Iran plays down Israel's strikes | Reuters
Most stock markets in the Gulf ended higher on Sunday as fears of an all-out conflagration in the region eased after Iran played down Israel's strikes on military targets, saying the air attack had caused only limited damage.
The United States, which had pressed Israel to avoid targeting sensitive Iranian energy and nuclear sites, joined other countries in calling for a halt to the cycle of confrontation between Israel and Iran.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.5%, ending three sessions of losses, led by a 3.6% jump in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
Among other gainers, telecom firm Etihad Etisalat (7020.SE), opens new tab gained 2.2%, after reporting a net profit of 829 million riyals ($220.9 million), up from 524 million riyals a year ago.
In Qatar, the share index (.QSI), opens new tab finished 1.5% higher, as all its constituents rose including petrochemical maker Industries Qatar (IQCD.QA), opens new tab, which was up 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.9%, with Commercial International Bank (COMI.CA), opens new tab rising 2.5%.
While shares rose, crude prices are expected to fall when trading resumes on Monday because Israel's retaliatory weekend strike did not target Iranian oil and nuclear infrastructure or disrupt energy supplies, market analysts said.
In Doha on Sunday, the directors of the U.S. Central Intelligence Agency (CIA) and Israel's Mossad were due to meet Qatar's prime minister to begin negotiations for a new short-term Gaza ceasefire deal, an official briefed on the talks told Reuters.
Most stock markets in the Gulf ended higher on Sunday as fears of an all-out conflagration in the region eased after Iran played down Israel's strikes on military targets, saying the air attack had caused only limited damage.
The United States, which had pressed Israel to avoid targeting sensitive Iranian energy and nuclear sites, joined other countries in calling for a halt to the cycle of confrontation between Israel and Iran.
Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.5%, ending three sessions of losses, led by a 3.6% jump in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
Among other gainers, telecom firm Etihad Etisalat (7020.SE), opens new tab gained 2.2%, after reporting a net profit of 829 million riyals ($220.9 million), up from 524 million riyals a year ago.
In Qatar, the share index (.QSI), opens new tab finished 1.5% higher, as all its constituents rose including petrochemical maker Industries Qatar (IQCD.QA), opens new tab, which was up 1.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.9%, with Commercial International Bank (COMI.CA), opens new tab rising 2.5%.
While shares rose, crude prices are expected to fall when trading resumes on Monday because Israel's retaliatory weekend strike did not target Iranian oil and nuclear infrastructure or disrupt energy supplies, market analysts said.
In Doha on Sunday, the directors of the U.S. Central Intelligence Agency (CIA) and Israel's Mossad were due to meet Qatar's prime minister to begin negotiations for a new short-term Gaza ceasefire deal, an official briefed on the talks told Reuters.
Friday, 25 October 2024
Oil settles up, weekly gain 4% as investors weigh Middle East risk and US election | Reuters
Oil settles up, weekly gain 4% as investors weigh Middle East risk and US election | Reuters
Oil prices settled higher on Friday and gained 4% on the week, with investors taking stock of the ongoing conflict in the Middle East as well as the U.S. election next month.
Brent crude futures settled up $1.67, or 2.25%, at $76.05 a barrel. U.S. West Texas Intermediate crude settled up $1.59, or 2.27%, to $71.78.
Brent settled 4% up on the week, while WTI settled 3.7% higher on the week.
"Really it seems like the market is bouncing around in a holding pattern till we get an answer to some of these questions on Israel, the war and the election," said Phil Flynn, senior analyst at Price Futures Group.
Oil prices settled higher on Friday and gained 4% on the week, with investors taking stock of the ongoing conflict in the Middle East as well as the U.S. election next month.
Brent crude futures settled up $1.67, or 2.25%, at $76.05 a barrel. U.S. West Texas Intermediate crude settled up $1.59, or 2.27%, to $71.78.
Brent settled 4% up on the week, while WTI settled 3.7% higher on the week.
"Really it seems like the market is bouncing around in a holding pattern till we get an answer to some of these questions on Israel, the war and the election," said Phil Flynn, senior analyst at Price Futures Group.
#UAE markets gain on resumption of Gaza ceasefire talks | Reuters
UAE markets gain on resumption of Gaza ceasefire talks | Reuters
Stock exchanges in United Arab Emirates rose on Friday as the planned resumption of Gaza ceasefire talks in the coming days eased market sentiments.
The head of Israel's Mossad intelligence agency will travel to Doha on Sunday to try to restart talks for a deal to release Israeli hostages being held in the Gaza Strip, Prime Minister Benjamin Netanyahu's office said on Thursday.
Mossad head David Barnea will meet with CIA director William Burns and the Qatari prime minister, Netanyahu's office said.
Dubai's main index (.DFMGI), opens new tab settled 0.3% higher, led by gains in industrial and utilities sector stocks.
Toll gate operator Salik Company (SALIK.DU), opens new tab jumped 1.1% and Parkin Company (PARKIN.DU), opens new tab increased 3%.
Market heavyweight Emirates NBD Bank (ENBD.DU), opens new tab and state-run utility firm Dubai Electricity And Water Authority (DEWAA.DU), opens new tab climbed 0.3% and 0.4%, respectively.
Dubai's outlook remains optimistic as more Q3 earnings releases are expected to support further upside, maintaining its bullish trend compared to regional peers, said Ahmed Negm Head of Market Research MENA at XS.com.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged 0.1% higher, snapping a four session losing streak, with UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab rising 1.1% and Gulf Pharmaceutical Industries (JULPHAR.AD), opens new tab surging 14.4%.
Among the gainers, Easy Lease Motorcycle Rental (EASYLEASE.AD), opens new tab jumped 6.4% as the firm's third quarter net profit increased 69% quarter-on-quarter to 7.6 million dirhams ($2.07 million).
Oil prices - a key contributor to Gulf's economy - rose 0.8% to $74.98 a barrel by 1130 GMT.
Dubai index extended gains to a third week, finishing the week 0.2% higher, while Abu Dhabi logged 0.9% weekly losses, according to data compiled by LSEG.
Stock exchanges in United Arab Emirates rose on Friday as the planned resumption of Gaza ceasefire talks in the coming days eased market sentiments.
The head of Israel's Mossad intelligence agency will travel to Doha on Sunday to try to restart talks for a deal to release Israeli hostages being held in the Gaza Strip, Prime Minister Benjamin Netanyahu's office said on Thursday.
Mossad head David Barnea will meet with CIA director William Burns and the Qatari prime minister, Netanyahu's office said.
Dubai's main index (.DFMGI), opens new tab settled 0.3% higher, led by gains in industrial and utilities sector stocks.
Toll gate operator Salik Company (SALIK.DU), opens new tab jumped 1.1% and Parkin Company (PARKIN.DU), opens new tab increased 3%.
Market heavyweight Emirates NBD Bank (ENBD.DU), opens new tab and state-run utility firm Dubai Electricity And Water Authority (DEWAA.DU), opens new tab climbed 0.3% and 0.4%, respectively.
Dubai's outlook remains optimistic as more Q3 earnings releases are expected to support further upside, maintaining its bullish trend compared to regional peers, said Ahmed Negm Head of Market Research MENA at XS.com.
Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged 0.1% higher, snapping a four session losing streak, with UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab rising 1.1% and Gulf Pharmaceutical Industries (JULPHAR.AD), opens new tab surging 14.4%.
Among the gainers, Easy Lease Motorcycle Rental (EASYLEASE.AD), opens new tab jumped 6.4% as the firm's third quarter net profit increased 69% quarter-on-quarter to 7.6 million dirhams ($2.07 million).
Oil prices - a key contributor to Gulf's economy - rose 0.8% to $74.98 a barrel by 1130 GMT.
Dubai index extended gains to a third week, finishing the week 0.2% higher, while Abu Dhabi logged 0.9% weekly losses, according to data compiled by LSEG.
ADNOC starts acceptance period for Covestro takeover offer | Reuters
ADNOC starts acceptance period for Covestro takeover offer | Reuters
Abu Dhabi's ADNOC said on Friday that the acceptance period for its voluntary public takeover offer for German chemicals maker Covestro (1COV.DE), opens new tab has started, with an end date of Nov. 27.
The company said the offer price was 62 euros ($67.06) per share in cash, representing a premium of about 54% to the unaffected share price of Covestro.
Abu Dhabi's ADNOC said on Friday that the acceptance period for its voluntary public takeover offer for German chemicals maker Covestro (1COV.DE), opens new tab has started, with an end date of Nov. 27.
The company said the offer price was 62 euros ($67.06) per share in cash, representing a premium of about 54% to the unaffected share price of Covestro.
Thursday, 24 October 2024
Emirates and #Dubai, each propels other to greater heights: Tim Clark
Emirates and Dubai, each propels other to greater heights: Tim Clark
Sir Tim Clark, President of Emirates Airline, has said that the Emirates Group, under the leadership of H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, is without a doubt one of the most successful aviation entities on the planet.
“Emirates is the world’s largest and most profitable all-international airline, and dnata is one of the biggest providers of air transport-related services. With operations spanning six continents, we are an influential force in global air transport,” he said in a statement marking the 39th anniversary of the founding of the airline.
“Our meteoric rise is no accident. What we have is the result of a brilliant masterplan, architected and driven by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.”
“How Sheikh Mohammed started Emirates with US$10 million seed capital is legendary," Tim Clark further added. “His marching orders to the small team tasked with setting up the airline back in 1985 were crystal clear – look good, be good, stand on your own feet, and don’t expect protection or subsidies.”
He went on to say, “The Emirates management team has always kept those words close to our hearts. Emirates won global attention and brought the world to Dubai by being the best there is. In turn, Dubai’s successful economic diversification initiatives and growth drove international visitation and increased demand for Emirates’ services. In short, Emirates and Dubai propel each other to greater heights.”
President Emirates Airline noted, “39 years and heaps of international accolades later, we’re proud to have delivered billions in dividends to our owners, and billions more in total economic impact to Dubai.”
According to the latest report by Oxford Economics, aviation contributed 27 percent to Dubai’s GDP in 2023, generating AED137 billion in gross value added (GVA). Of that figure, the Emirates Group’s core impact was AED75 billion – representing 15 percent of Dubai’s GDP. “This value comprises the direct impact of our business operations, the indirect impact generated through our myriad of suppliers and partners in the aviation ecosystem, and the induced impact from the goods and services consumed by our 81,000-strong workforce and their dependents in the UAE.”
Aviation is a strategic enabler for Dubai and vital to the city’s ambition to become a top global destination for tourism, commerce, and investments. “In 2023, Dubai welcomed over 17 million visitors, and Emirates carried 54 percent of all international visitors who travelled to Dubai by air, generating a further GVA of AED23 billion in aviation-supported tourism impact.”
This means, he stated, Emirates’ total economic contribution in 2023 was AED98 billion in GVA, or a whopping 19 percent of Dubai’s Gross Domestic Product.
“Looking ahead, Oxford Economics forecasts that Emirates Group’s contribution to Dubai’s economy will reach AED144 billion, representing 24 percent of Dubai’s projected GDP in 2030.”
“These figures don’t even account for the massive new Al Maktoum International airport which will be the world’s largest when complete, and Emirates’ new home from the mid-2030s onwards,” Tim Clark said, adding that the new airfield and supporting aviation infrastructure around Dubai World Central will unlock capacity for the Emirates Group’s continued growth trajectory. “Crucially, it will enable us to meet travel demand to Dubai and across our network, and power the next phase of Dubai’s growth.”
Sir Tim Clark, President of Emirates Airline, has said that the Emirates Group, under the leadership of H.H. Sheikh Ahmed bin Saeed Al Maktoum, Chairman of Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, is without a doubt one of the most successful aviation entities on the planet.
“Emirates is the world’s largest and most profitable all-international airline, and dnata is one of the biggest providers of air transport-related services. With operations spanning six continents, we are an influential force in global air transport,” he said in a statement marking the 39th anniversary of the founding of the airline.
“Our meteoric rise is no accident. What we have is the result of a brilliant masterplan, architected and driven by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai.”
“How Sheikh Mohammed started Emirates with US$10 million seed capital is legendary," Tim Clark further added. “His marching orders to the small team tasked with setting up the airline back in 1985 were crystal clear – look good, be good, stand on your own feet, and don’t expect protection or subsidies.”
He went on to say, “The Emirates management team has always kept those words close to our hearts. Emirates won global attention and brought the world to Dubai by being the best there is. In turn, Dubai’s successful economic diversification initiatives and growth drove international visitation and increased demand for Emirates’ services. In short, Emirates and Dubai propel each other to greater heights.”
President Emirates Airline noted, “39 years and heaps of international accolades later, we’re proud to have delivered billions in dividends to our owners, and billions more in total economic impact to Dubai.”
According to the latest report by Oxford Economics, aviation contributed 27 percent to Dubai’s GDP in 2023, generating AED137 billion in gross value added (GVA). Of that figure, the Emirates Group’s core impact was AED75 billion – representing 15 percent of Dubai’s GDP. “This value comprises the direct impact of our business operations, the indirect impact generated through our myriad of suppliers and partners in the aviation ecosystem, and the induced impact from the goods and services consumed by our 81,000-strong workforce and their dependents in the UAE.”
Aviation is a strategic enabler for Dubai and vital to the city’s ambition to become a top global destination for tourism, commerce, and investments. “In 2023, Dubai welcomed over 17 million visitors, and Emirates carried 54 percent of all international visitors who travelled to Dubai by air, generating a further GVA of AED23 billion in aviation-supported tourism impact.”
This means, he stated, Emirates’ total economic contribution in 2023 was AED98 billion in GVA, or a whopping 19 percent of Dubai’s Gross Domestic Product.
“Looking ahead, Oxford Economics forecasts that Emirates Group’s contribution to Dubai’s economy will reach AED144 billion, representing 24 percent of Dubai’s projected GDP in 2030.”
“These figures don’t even account for the massive new Al Maktoum International airport which will be the world’s largest when complete, and Emirates’ new home from the mid-2030s onwards,” Tim Clark said, adding that the new airfield and supporting aviation infrastructure around Dubai World Central will unlock capacity for the Emirates Group’s continued growth trajectory. “Crucially, it will enable us to meet travel demand to Dubai and across our network, and power the next phase of Dubai’s growth.”
#Saudi Oil Export Revenue Slumps to Lowest in Over Three Years - Bloomberg
Saudi Oil Export Revenue Slumps to Lowest in Over Three Years - Bloomberg
Saudi Arabia’s revenue from oil exports has slumped to the lowest in more than three years as sluggish demand growth weighs on crude prices.
Income from the sale of crude oil and refined products dropped to $17.4 billion in August, a 6% slide from the previous month, according to the state statistics agency. That’s the lowest level of monthly revenue since June 2021.
The Saudi economy is still largely dependent on oil income for growth, even more so now that the country has embarked on an ambitious plan to expand its technology, tourism and manufacturing industries. The massive investment required to realize Crown Prince Mohammed bin Salman’s plan to transform the economy relies on oil revenue to fund initiatives aimed at decreasing reliance on income from hydrocarbons.
That effort has been complicated by falling oil prices and lower production. Global benchmark Brent crude is down about 1% this year and is trading around $75 a barrel. Growth in oil consumption has been sluggish, particularly in China, one of the most important import markets, while new supply from countries like the US — now the world’s top producer — is outpacing demand growth and weighing on prices.
The Organization of Petroleum Exporting Countries and its allies have been restricting output to prop up the market. That’s limited the amount of crude that Saudi Arabia, the leader of the alliance, can sell. The wider OPEC+ group, which includes producers like Russia, is set to roll back some of those cuts in December, though it’s left the door open to keeping those limits in place if needed to avoid oversupply.
Oil is down 3% since the end of August.
Saudi Arabia’s revenue from oil exports has slumped to the lowest in more than three years as sluggish demand growth weighs on crude prices.
Income from the sale of crude oil and refined products dropped to $17.4 billion in August, a 6% slide from the previous month, according to the state statistics agency. That’s the lowest level of monthly revenue since June 2021.
The Saudi economy is still largely dependent on oil income for growth, even more so now that the country has embarked on an ambitious plan to expand its technology, tourism and manufacturing industries. The massive investment required to realize Crown Prince Mohammed bin Salman’s plan to transform the economy relies on oil revenue to fund initiatives aimed at decreasing reliance on income from hydrocarbons.
That effort has been complicated by falling oil prices and lower production. Global benchmark Brent crude is down about 1% this year and is trading around $75 a barrel. Growth in oil consumption has been sluggish, particularly in China, one of the most important import markets, while new supply from countries like the US — now the world’s top producer — is outpacing demand growth and weighing on prices.
The Organization of Petroleum Exporting Countries and its allies have been restricting output to prop up the market. That’s limited the amount of crude that Saudi Arabia, the leader of the alliance, can sell. The wider OPEC+ group, which includes producers like Russia, is set to roll back some of those cuts in December, though it’s left the door open to keeping those limits in place if needed to avoid oversupply.
Oil is down 3% since the end of August.
Most Gulf markets ease on regional tensions | Reuters
Most Gulf markets ease on regional tensions | Reuters
Most stock markets in the Gulf were lower on Thursday as simmering geopolitical tensions in the Middle East kept investors on the sidelines.
Israeli strikes pounded Beirut's southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets, as U.S. Secretary of State Antony Blinken toured the region, pushing for a halt to fighting in both Gaza and Lebanon.
Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens a new tab losing 0.6% and Alinma Bank (1150.SE), opens new tab was down 1.2%.
The Saudi index posted a weekly loss of 0.2%.
Separately, the kingdom attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower, hit by by a 0.5% drop in conglomerate International Holding Co (IHC) (IHC.AD), opens new tab.
IHC said on Wednesday its subsidiary International Tech Group acquired an additional 46% stake in Emircon for 292 million dirhams ($79.51 million).
However, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab climbed 2.5%, after beating forecasts with a 23% rise in third-quarter profit.
Dubai's main share index (.DFMGI), opens new tab concluded flat.
The Qatari index (.QSI), opens new tab fell 0.1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 1%.
The Qatari index recorded its biggest weekly loss of 3.1% in a year.
Outside the Gulf, the Egyptian index (.EGX30), opens new tab rose 0.5%, with Talaat Mostafa Holding (TMGH.CA), opens new tab gaining 1.7%.
The blue-chip index posted first weekly gains in three weeks.
Egypt's economic growth will increase to 4.0% in the year to the end of June 2025 as austerity measures imposed under an International Monetary Fund programme run their course, a Reuters poll showed on Thursday.
Israeli strikes pounded Beirut's southern suburbs on Wednesday and Hezbollah said it fired precision guided missiles for the first time at Israeli targets, as U.S. Secretary of State Antony Blinken toured the region, pushing for a halt to fighting in both Gaza and Lebanon.
Israeli strikes were also reported to have hit the Syrian capital Damascus early on Thursday.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with the country's biggest lender Saudi National Bank (1180.SE), opens a new tab losing 0.6% and Alinma Bank (1150.SE), opens new tab was down 1.2%.
The Saudi index posted a weekly loss of 0.2%.
Separately, the kingdom attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower, hit by by a 0.5% drop in conglomerate International Holding Co (IHC) (IHC.AD), opens new tab.
IHC said on Wednesday its subsidiary International Tech Group acquired an additional 46% stake in Emircon for 292 million dirhams ($79.51 million).
However, Abu Dhabi Commercial Bank (ADCB.AD), opens new tab climbed 2.5%, after beating forecasts with a 23% rise in third-quarter profit.
Dubai's main share index (.DFMGI), opens new tab concluded flat.
The Qatari index (.QSI), opens new tab fell 0.1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab retreating 1%.
The Qatari index recorded its biggest weekly loss of 3.1% in a year.
Outside the Gulf, the Egyptian index (.EGX30), opens new tab rose 0.5%, with Talaat Mostafa Holding (TMGH.CA), opens new tab gaining 1.7%.
The blue-chip index posted first weekly gains in three weeks.
Egypt's economic growth will increase to 4.0% in the year to the end of June 2025 as austerity measures imposed under an International Monetary Fund programme run their course, a Reuters poll showed on Thursday.
#UAE's IHC unit plans copper trading hub in #AbuDhabi | Reuters
UAE's IHC unit plans copper trading hub in Abu Dhabi | Reuters
The UAE's International Resources Holding (IRH) said it plans to set up a copper trading hub in Abu Dhabi as the firm widens its push into critical minerals.
IRH, an arm of the United Arab Emirates' International Holding Company (IHC.AD), opens new tab, has a trading target of more than half a million metric tons of copper annually from next year, it said in a Linkedin post. It has said it is seeking to expand in copper mining after buying a 51% stake in Mopani Copper Mines in Zambia in a $1.1 billion deal.
"We are set to launch a copper trading hub in Abu Dhabi, targeting over 500,000 tons of green copper annually by 2025," IRH said. "This initiative will further cement the region's strategic importance in the global energy transition."
Oil-rich UAE and Saudi Arabia have been on an aggressive deals spree as part of a push to secure critical metal supplies from Africa and Latin America, a move that could also help them participate in the transition to green energy.
Sigma Lithium (SGML.V), opens new tab on Wednesday said it struck an agreement to ship 22,000 tons of lithium concentrates to IRH, its first deal with the Abu Dhabi firm.
The UAE's International Resources Holding (IRH) said it plans to set up a copper trading hub in Abu Dhabi as the firm widens its push into critical minerals.
IRH, an arm of the United Arab Emirates' International Holding Company (IHC.AD), opens new tab, has a trading target of more than half a million metric tons of copper annually from next year, it said in a Linkedin post. It has said it is seeking to expand in copper mining after buying a 51% stake in Mopani Copper Mines in Zambia in a $1.1 billion deal.
"We are set to launch a copper trading hub in Abu Dhabi, targeting over 500,000 tons of green copper annually by 2025," IRH said. "This initiative will further cement the region's strategic importance in the global energy transition."
Oil-rich UAE and Saudi Arabia have been on an aggressive deals spree as part of a push to secure critical metal supplies from Africa and Latin America, a move that could also help them participate in the transition to green energy.
Sigma Lithium (SGML.V), opens new tab on Wednesday said it struck an agreement to ship 22,000 tons of lithium concentrates to IRH, its first deal with the Abu Dhabi firm.
#SaudiArabia FII: #MBS’ Beach Party Looks to Show Neom Dream Is Real - Bloomberg
Saudi Arabia FII: MBS’ Beach Party Looks to Show Neom Dream Is Real - Bloomberg
Days before Saudi Arabia kicks off its flagship investment conference, a handpicked selection of guests will get the first glimpse of Crown Prince Mohammed bin Salman’s trillion-dollar bet that the kingdom has a future beyond oil.
An exclusive group of financiers, entertainers and influencers from around the world will this week descend upon Sindalah Island, the first project to open its doors at the planned city of Neom. The resort is now home to ultra-luxury hotels and unspoilt beaches, plus an 86-berth marina where the uber rich can dock their yachts and dive into the crystal clear waters of the Red Sea.
A lot is riding on the success of Sindalah and the wider area in the kingdom’s northwest that’s been re-branded as Neom and is expected to cost anywhere from $500 billion to $1.5 trillion to build — Crown Prince Mohammed’s boldest move yet. The opening comes days before the kingdom kicks off the eighth edition of its Future Investment Initiative, a Davos-style confab.
“There is still considerable effort to go in partnerships and investment, so timing with FII would make sense,” said Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy. “If investors see some major infrastructure in place for power, water, transport, that would do a lot to instill confidence about government commitment to major installations in Neom.”
Designed to be everything from a futuristic port, a high-end tourist destination and a clean-energy hub to a venue for the FIFA World Cup and the Asian Winter Games, Neom has never been short of ambition.
It was to be the city of the future that sought to “revolutionize everyday life.” Not just a chance to reshape Saudi cities — replacing oil-burning power plants that belch carbon dioxide with renewable energy plants — but a bold promise to re-imagine how cities globally should look and function.
Yet, its development has been plagued by challenges related to transforming Crown Prince Mohammed’s vision into reality. Foreign investors have been slow to back the plans and the outlook for state coffers has been weaker than expected just a few years ago, with oil trading well below $100. As a result, budgets have been cut and development on some parts of the project has been delayed.
This story is based on interviews with over half a dozen people close to the project, who asked not to be identified as the information is private.
“These ambitious projects are big gambles,” said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. “My sense is that the Saudi government is prepared to shoulder the main financing burden for many giga-projects over the short term, with greater private-sector and foreign investment anticipated to materialize over the medium and long terms.”
In a statement, a spokesperson for Neom said that all of its five regions are “under active development.”
Days before Saudi Arabia kicks off its flagship investment conference, a handpicked selection of guests will get the first glimpse of Crown Prince Mohammed bin Salman’s trillion-dollar bet that the kingdom has a future beyond oil.
An exclusive group of financiers, entertainers and influencers from around the world will this week descend upon Sindalah Island, the first project to open its doors at the planned city of Neom. The resort is now home to ultra-luxury hotels and unspoilt beaches, plus an 86-berth marina where the uber rich can dock their yachts and dive into the crystal clear waters of the Red Sea.
A lot is riding on the success of Sindalah and the wider area in the kingdom’s northwest that’s been re-branded as Neom and is expected to cost anywhere from $500 billion to $1.5 trillion to build — Crown Prince Mohammed’s boldest move yet. The opening comes days before the kingdom kicks off the eighth edition of its Future Investment Initiative, a Davos-style confab.
“There is still considerable effort to go in partnerships and investment, so timing with FII would make sense,” said Karen Young, a senior research scholar at Columbia University’s Center on Global Energy Policy. “If investors see some major infrastructure in place for power, water, transport, that would do a lot to instill confidence about government commitment to major installations in Neom.”
Designed to be everything from a futuristic port, a high-end tourist destination and a clean-energy hub to a venue for the FIFA World Cup and the Asian Winter Games, Neom has never been short of ambition.
It was to be the city of the future that sought to “revolutionize everyday life.” Not just a chance to reshape Saudi cities — replacing oil-burning power plants that belch carbon dioxide with renewable energy plants — but a bold promise to re-imagine how cities globally should look and function.
Yet, its development has been plagued by challenges related to transforming Crown Prince Mohammed’s vision into reality. Foreign investors have been slow to back the plans and the outlook for state coffers has been weaker than expected just a few years ago, with oil trading well below $100. As a result, budgets have been cut and development on some parts of the project has been delayed.
This story is based on interviews with over half a dozen people close to the project, who asked not to be identified as the information is private.
“These ambitious projects are big gambles,” said Robert Mogielnicki, senior resident scholar at the Arab Gulf States Institute in Washington. “My sense is that the Saudi government is prepared to shoulder the main financing burden for many giga-projects over the short term, with greater private-sector and foreign investment anticipated to materialize over the medium and long terms.”
In a statement, a spokesperson for Neom said that all of its five regions are “under active development.”
#Saudi Arabian ETF Tracking Chinese Stocks Raises $1.3 Billion - Bloomberg
Saudi Arabian ETF Tracking Chinese Stocks Raises $1.3 Billion - Bloomberg
A Saudi Arabian investment firm will soon launch the country’s largest exchange traded fund to track Hong Kong-listed Chinese stocks, the latest sign of closer financial ties between China and the oil-rich kingdom.
The securities arm of Bank Albilad raised HK$10 billion ($1.3 billion) for its Albilad CSOP MSCI Hong Kong China ETF as of Wednesday, according to the social media account of the fund’s Chinese partner. The fund is bigger than any of its peers listed on the Saudi Arabian exchange, according to data compiled by Bloomberg. It will start trading next Wednesday.
The ETF will provide easier access in local currency to investors seeking exposure to Chinese stocks, and comes amid signs of growing ties between Beijing and Riyadh. Another ETF tracking Hong Kong-listed stocks is set for launch before year-end by Saudi Awwal Bank, one of the country’s biggest lenders.
The ETF will invest in Chinese equities through the Hong Kong-domiciled CSOP MSCI HK China Connect Select ETF, which counts e-commerce firm Meituan and sportswear maker Anta Sports Products Ltd. among its biggest holdings. The feeder fund has fully built positions via the master fund, a spokesperson at CSOP told Bloomberg news.
The amount raised is significantly more than the expected $400 million. Its size has eclipsed the combined market value of all nine ETFs trading in Saudi Arabia, including two that invest in US stocks, data compiled by Bloomberg show.
The strong subscription follows Beijing’s stimulus bonanza, which triggered a surge in Chinese equities last month. While the rally has pared some gains, investors are keenly awaiting stronger policy support steps, such as ramped-up fiscal spending. The Hang Seng China Enterprises Index, which tracks China’s biggest companies listed in Hong Kong, is still up more than 23% since a low in September.
The ETF marks another step for Beijing to strengthen ties with Gulf nations amid tensions with the West, and as Saudi investors step up their presence in Asia. Last year, the first ETF tracking Saudi stocks debuted in Hong Kong after raising more than $1 billion. In July, two ETFs focused on Saudi Arabian stocks were launched in China and surged on trading debut.
A Saudi Arabian investment firm will soon launch the country’s largest exchange traded fund to track Hong Kong-listed Chinese stocks, the latest sign of closer financial ties between China and the oil-rich kingdom.
The securities arm of Bank Albilad raised HK$10 billion ($1.3 billion) for its Albilad CSOP MSCI Hong Kong China ETF as of Wednesday, according to the social media account of the fund’s Chinese partner. The fund is bigger than any of its peers listed on the Saudi Arabian exchange, according to data compiled by Bloomberg. It will start trading next Wednesday.
The ETF will provide easier access in local currency to investors seeking exposure to Chinese stocks, and comes amid signs of growing ties between Beijing and Riyadh. Another ETF tracking Hong Kong-listed stocks is set for launch before year-end by Saudi Awwal Bank, one of the country’s biggest lenders.
The ETF will invest in Chinese equities through the Hong Kong-domiciled CSOP MSCI HK China Connect Select ETF, which counts e-commerce firm Meituan and sportswear maker Anta Sports Products Ltd. among its biggest holdings. The feeder fund has fully built positions via the master fund, a spokesperson at CSOP told Bloomberg news.
The amount raised is significantly more than the expected $400 million. Its size has eclipsed the combined market value of all nine ETFs trading in Saudi Arabia, including two that invest in US stocks, data compiled by Bloomberg show.
The strong subscription follows Beijing’s stimulus bonanza, which triggered a surge in Chinese equities last month. While the rally has pared some gains, investors are keenly awaiting stronger policy support steps, such as ramped-up fiscal spending. The Hang Seng China Enterprises Index, which tracks China’s biggest companies listed in Hong Kong, is still up more than 23% since a low in September.
The ETF marks another step for Beijing to strengthen ties with Gulf nations amid tensions with the West, and as Saudi investors step up their presence in Asia. Last year, the first ETF tracking Saudi stocks debuted in Hong Kong after raising more than $1 billion. In July, two ETFs focused on Saudi Arabian stocks were launched in China and surged on trading debut.
#SaudiArabia's FDI inflows at $26 bln in 2023, exceeding target | Reuters
Saudi Arabia's FDI inflows at $26 bln in 2023, exceeding target | Reuters
Saudi Arabia, the Arab world's biggest economy, attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
The kingdom introduced a new methodology last year to collect and report FDI data in a bid to bolster the transparency and accuracy of the published statistics, which led to a significant upward revision in total figures for 2022.
The ministry of investment said in its latest report that actual FDI inflows last year were 16% more than the targeted 83 billion riyals under the National Investment Strategy (NIS), and equivalent to 2.4% of the country's nominal GDP.
Inflows were up 50% over 2022 figures, after excluding a one-off Aramco pipeline deal valued at 55 billion riyals in 2022.
Saudi Arabia is in the middle of a massive economic overhaul overseen by Crown Prince Mohammed bin Salman under the Vision 2030 plan to boost non-oil growth, expand the private sector and create jobs.
The National Investment Strategy is targeting FDI of $100 billion by 2030, or almost 6% of the country's GDP.
Total FDI stock stood at 897 billion riyals by the end of 2023, accounting for 22.5% of GDP and up 13% from the previous year.
The manufacturing, finance and insurance, construction, and wholesale and retail trade sectors were the top draws for FDI last year making up 78% of total FDI inflows in 2023, the report showed.
The government has said it would update existing investment laws, opens new tab in a bid to increase transparency and promote equal treatment of local and foreign investors.
Saudi Arabia, the Arab world's biggest economy, attracted foreign direct investment inflows of 96 billion riyals ($25.6 billion) in 2023, beating official targets, according to government data based on a new calculation methodology.
The kingdom introduced a new methodology last year to collect and report FDI data in a bid to bolster the transparency and accuracy of the published statistics, which led to a significant upward revision in total figures for 2022.
The ministry of investment said in its latest report that actual FDI inflows last year were 16% more than the targeted 83 billion riyals under the National Investment Strategy (NIS), and equivalent to 2.4% of the country's nominal GDP.
Inflows were up 50% over 2022 figures, after excluding a one-off Aramco pipeline deal valued at 55 billion riyals in 2022.
Saudi Arabia is in the middle of a massive economic overhaul overseen by Crown Prince Mohammed bin Salman under the Vision 2030 plan to boost non-oil growth, expand the private sector and create jobs.
The National Investment Strategy is targeting FDI of $100 billion by 2030, or almost 6% of the country's GDP.
Total FDI stock stood at 897 billion riyals by the end of 2023, accounting for 22.5% of GDP and up 13% from the previous year.
The manufacturing, finance and insurance, construction, and wholesale and retail trade sectors were the top draws for FDI last year making up 78% of total FDI inflows in 2023, the report showed.
The government has said it would update existing investment laws, opens new tab in a bid to increase transparency and promote equal treatment of local and foreign investors.
Wednesday, 23 October 2024
#Muscat. #Oman, Urban Design Plan in Contrast to #Dubai and #AbuDhabi - Bloomberg
Muscat. Oman, Urban Design Plan in Contrast to Dubai and Abu Dhabi - Bloomberg
A new master plan for Muscat, Oman, could see the city become notably denser, greener and better connected by public transportation.
The proposal, developed by urbanists Broadway Malyan, aims to help the sprawling coastal capital of 1.4 million adapt by 2040 to a series of challenges: a fast-growing population, an economy diversifying beyond oil, and climate change-fueled risks of extreme weather.
Still in the process of approval — although it’s backed by Oman’s Housing Ministry — the plan seeks to imagine a different form for Gulf urbanism than that of neighbors Dubai and Abu Dhabi: compact, more mid-rise than high-rise, and with a greater place for nature within the city.
Muscat’s location means it faces specific challenges, some of them geographical. The capital of a country whose roughly 4.5 million inhabitants are heavily concentrated on the coast, Muscat is located on a narrow strip between mountains and the sea. As a result the city has grown along a linear corridor-like layout, where neighborhoods follow each other like wagons on a train. This has created a polycentric city where travel times from one end to the other can be lengthy — up to 160 minutes during morning peak hours — encouraging residents to stay closer to home.
Despite its austere beauty, this narrow site also poses environmental challenges. It is crisscrossed by 14 wadi systems — riverbeds that are dry or merely moist during most of the year in Oman’s tropical desert climate, but which can swell dramatically during the summer rainy season. This makes large parts of the city vulnerable to inundations — 45% of the land area to floods from the wadis and 20% from high tides. The intensification of extreme weather has made flood management an essential component to future-proofing the city; in May 2024 extraordinary floods killed 17 people across Oman. The landscape has further encouraged a fragmented urban structure, where development stops and starts depending on terrain.
Setting a New Course
The Omani capital of Muscat is planning for a very different future from that of nearby Dubai and Abu Dhabi.
Until recently, the site has posed few problems. While the city is ancient — it was mentioned as an already important port in the first century — Muscat only surpassed 100,000 residents in 1979 and 500,000 in 1994. A modest population meant distances remained manageable and building land still easily available. So easily available, in fact, that a right to land ownership has been written into national law.
Any Omani man over 23 — and many but not all Omani women — are theoretically entitled to a free plot of land of up to 600 square meters (6,458 square feet) to build a house on. While getting a plot now requires a long wait for allocation by lottery, and many remain unbuilt, the archetypal Omani dream has still remained not apartment living but a single-family villa. Although Muscat has some densely built areas, these are usually seen as less desirable places to live, populated mainly by lower-income expats who are also the primary users of the city’s limited public transport system.
For Muscat to stay competitive, these habits will need to change. By 2040, the population will reach 2.7 million. Continuing sprawl would leave its urban area unmanageable, inefficient and lacking in sustainability.
Denser development, public transportation, bans on greenfield building and a system of parks are the key tools the master plan employs to break these patterns. A 55 kilometer (35 mile) light rail system shadowing the coast will provide a new spine for the city, tunneling through the rocky slopes that divide Old Muscat from the western bulk of the city, which is home to the international airport and luxury resorts such as a five-star St. Regis resort on the Gulf of Oman. Rapid transit buses will provide a parallel east-west link further inland. New denser development will be encouraged along the light rail, with mid-rise apartment buildings flanking the line intended to preserve mountain views.
The government is already buying up land along this spine that would allow Muscat to re-center by developing its “missing middle” — an underused area that lies between the old city and current development hotspots near the airport. At the heart of this will be a new waterfront development from Zaha Hadid Architects, where a rising string of towers curling out into the harbor would be the city’s one major concession to high-rise construction. Meanwhile, the existing downtown area of Ruwi, a lively but somewhat neglected space, will be regenerated to make it more of a magnet for people across Greater Muscat.
The new plan is as much about restricting construction as encouraging it, however. To discourage further sprawl, a no-build zone will be instated in the city’s mountain foothills and in its far west, a still largely unbuilt area destined to function as a future “green lung.” Green zones in areas at risk of floods are also being marked out.
“We’ve done a lot of flood mapping,” says Broadway Malyan’s Director of Urbanism Phil Bonds. “Broadly speaking, we’ve tried to keep all development away from zones at risk of flooding up to 50 years from now. In these zones, there’s an element of wadi-taming that needs to happen to make them more resilient and livable, but we want to avoid culverting as much as possible.”
Instead, some wadi systems will be planted with vegetation and nourished with recycled wastewater that would otherwise end up in the sea. The new tree and bush cover would provide seams of parkland through the city and likely retain enough water to self-sustain without irrigation. The city will also get some more leisure space from a revamped waterfront promenade, which has a string of beaches that are currently underutilized.
Such goals fit neatly within what is currently considered good urbanism. Whether they are delivered is a question for later, with many master plans elsewhere ending up more aspirational than binding. One strength is the plan’s coordination of projects already partly underway. A feasibility study for the light rail was delivered in August 2024, while construction should begin on the new waterfront district by the end of this year. The plan’s best chance of being fully implemented, however, is that it should end up paying for itself several times over. “When we costed the plan,” Bonds says, “we calculated that for a $19 billion investment, they’d end up with a $50 billion uplift.”
A new master plan for Muscat, Oman, could see the city become notably denser, greener and better connected by public transportation.
The proposal, developed by urbanists Broadway Malyan, aims to help the sprawling coastal capital of 1.4 million adapt by 2040 to a series of challenges: a fast-growing population, an economy diversifying beyond oil, and climate change-fueled risks of extreme weather.
Still in the process of approval — although it’s backed by Oman’s Housing Ministry — the plan seeks to imagine a different form for Gulf urbanism than that of neighbors Dubai and Abu Dhabi: compact, more mid-rise than high-rise, and with a greater place for nature within the city.
Muscat’s location means it faces specific challenges, some of them geographical. The capital of a country whose roughly 4.5 million inhabitants are heavily concentrated on the coast, Muscat is located on a narrow strip between mountains and the sea. As a result the city has grown along a linear corridor-like layout, where neighborhoods follow each other like wagons on a train. This has created a polycentric city where travel times from one end to the other can be lengthy — up to 160 minutes during morning peak hours — encouraging residents to stay closer to home.
Despite its austere beauty, this narrow site also poses environmental challenges. It is crisscrossed by 14 wadi systems — riverbeds that are dry or merely moist during most of the year in Oman’s tropical desert climate, but which can swell dramatically during the summer rainy season. This makes large parts of the city vulnerable to inundations — 45% of the land area to floods from the wadis and 20% from high tides. The intensification of extreme weather has made flood management an essential component to future-proofing the city; in May 2024 extraordinary floods killed 17 people across Oman. The landscape has further encouraged a fragmented urban structure, where development stops and starts depending on terrain.
Setting a New Course
The Omani capital of Muscat is planning for a very different future from that of nearby Dubai and Abu Dhabi.
Until recently, the site has posed few problems. While the city is ancient — it was mentioned as an already important port in the first century — Muscat only surpassed 100,000 residents in 1979 and 500,000 in 1994. A modest population meant distances remained manageable and building land still easily available. So easily available, in fact, that a right to land ownership has been written into national law.
Any Omani man over 23 — and many but not all Omani women — are theoretically entitled to a free plot of land of up to 600 square meters (6,458 square feet) to build a house on. While getting a plot now requires a long wait for allocation by lottery, and many remain unbuilt, the archetypal Omani dream has still remained not apartment living but a single-family villa. Although Muscat has some densely built areas, these are usually seen as less desirable places to live, populated mainly by lower-income expats who are also the primary users of the city’s limited public transport system.
For Muscat to stay competitive, these habits will need to change. By 2040, the population will reach 2.7 million. Continuing sprawl would leave its urban area unmanageable, inefficient and lacking in sustainability.
Denser development, public transportation, bans on greenfield building and a system of parks are the key tools the master plan employs to break these patterns. A 55 kilometer (35 mile) light rail system shadowing the coast will provide a new spine for the city, tunneling through the rocky slopes that divide Old Muscat from the western bulk of the city, which is home to the international airport and luxury resorts such as a five-star St. Regis resort on the Gulf of Oman. Rapid transit buses will provide a parallel east-west link further inland. New denser development will be encouraged along the light rail, with mid-rise apartment buildings flanking the line intended to preserve mountain views.
The government is already buying up land along this spine that would allow Muscat to re-center by developing its “missing middle” — an underused area that lies between the old city and current development hotspots near the airport. At the heart of this will be a new waterfront development from Zaha Hadid Architects, where a rising string of towers curling out into the harbor would be the city’s one major concession to high-rise construction. Meanwhile, the existing downtown area of Ruwi, a lively but somewhat neglected space, will be regenerated to make it more of a magnet for people across Greater Muscat.
The new plan is as much about restricting construction as encouraging it, however. To discourage further sprawl, a no-build zone will be instated in the city’s mountain foothills and in its far west, a still largely unbuilt area destined to function as a future “green lung.” Green zones in areas at risk of floods are also being marked out.
“We’ve done a lot of flood mapping,” says Broadway Malyan’s Director of Urbanism Phil Bonds. “Broadly speaking, we’ve tried to keep all development away from zones at risk of flooding up to 50 years from now. In these zones, there’s an element of wadi-taming that needs to happen to make them more resilient and livable, but we want to avoid culverting as much as possible.”
Instead, some wadi systems will be planted with vegetation and nourished with recycled wastewater that would otherwise end up in the sea. The new tree and bush cover would provide seams of parkland through the city and likely retain enough water to self-sustain without irrigation. The city will also get some more leisure space from a revamped waterfront promenade, which has a string of beaches that are currently underutilized.
Such goals fit neatly within what is currently considered good urbanism. Whether they are delivered is a question for later, with many master plans elsewhere ending up more aspirational than binding. One strength is the plan’s coordination of projects already partly underway. A feasibility study for the light rail was delivered in August 2024, while construction should begin on the new waterfront district by the end of this year. The plan’s best chance of being fully implemented, however, is that it should end up paying for itself several times over. “When we costed the plan,” Bonds says, “we calculated that for a $19 billion investment, they’d end up with a $50 billion uplift.”