Delivery Hero's Talabat to launch over $1 bln #Dubai IPO next week, sources say | Reuters

Delivery Hero's Talabat to launch over $1 bln Dubai IPO next week, sources say | Reuters

Talabat, the Middle East business of Delivery Hero (DHER.DE), opens new tab, plans to launch its Dubai initial public offering next week, three people familiar with the plans told Reuters, in one of the UAE's biggest IPOs this year.

The deal, set by the German parent for the fourth quarter, could start as soon as Monday, two of the sources said. It could see the largest food ordering business in the Middle East sell stock worth more than $1 billion, according to two of them.

Dubai-based Talabat and Delivery Hero declined to comment.

The IPO rides a retail spending boom in the Gulf and comes amid a frenzy of public listings in the region as governments push to cut their dependence on oil.

Hypermarket chain operator Lulu Retail raised $1.72 billion on Wednesday.

Founded in 2004 in Kuwait, Talabat has since expanded to serve customers in the United Arab Emirates (UAE), Oman, Qatar, Bahrain, Jordan, Iraq and Egypt, with over six million active customers as of the end of July, according to company data.

Besides food, it provides deliveries of groceries and other goods including health and beauty products.

Germany's Delivery Hero bought a majority stake in Talabat in 2015. The Berlin-based online takeaway food company said in August it planned to retain a majority stake, with analysts flagging the deal could help cut its debt.

Its Frankfurt-listed shares have fallen over 74% from their January 2021 highs fuelled by pandemic demand.

The IPO "represents a highly positive catalyst for the equity (of Delivery Hero)," said Jefferies analyst Giles Thorne in a video note earlier this week, citing "very low execution risk" and a material de-leverage of the balance sheet.

Talabat is "one of the highest, if not the highest quality on demand delivery platforms globally," he said, valuing the company at 11.5-13.5 billion euros.

Regional rivals include Saudi Arabia's Jahez (9526.SE), opens new tab as well as Uber Technologies-owned (UBER.N), opens new tab Careem.

Delivery Hero chief executive Niklas Östberg did not comment when asked about the IPO in an interview with Reuters on Thursday, when the company reported third-quarter earnings.

Its gross merchandise value (GMV), measuring the total value of all goods sold, rose 30% in the Middle East and North Africa (MENA) region, its fastest growing geography, where it also operates through units Hungerstation, Yemeksepeti and InstaShop.

It accounted for over a quarter of the group's overall GMV in the period.

Lower oil prices drag #UAE markets down | Reuters

Lower oil prices drag UAE markets down | Reuters

Stock markets in the United Arab Emirates closed lower on Friday, driven by a drop in oil prices on subsiding risks of the significant impact of hurricane Rafael on U.S. oil and gas output.

Hurricane Rafael, which has caused 391,214 barrels per day of U.S. crude oil production to be shut, is expected to move slowly westward over the Gulf of Mexico and away from U.S. fields while forecast to weaken from Friday and through the weekend, the U.S. National Hurricane Center said.

Oil prices — an engine of growth for Gulf's economies — was down 1.61% at $74.41 a barrel as of 1100 GMT.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab slipped 0.2%, after three session of gains, dragged down by a 0.6% decrease in International Holding Company (IHC.AD), opens new tab and a 1.4% decline in IHC-owned conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.

Other losers included Sharjah-based energy firm Dana Gas (DANA.AD), opens new tab. It fell 1.3% after the firm recorded a 7% decline in its third-quarter net profit to $40 million.

However, State oil giant Abu Dhabi National Oil Company's gas unit, ADNOC Gas (ADNOCGAS.AD), opens new tab, jumped 1.5% ahead of releasing third-quarter earnings later in the day.

Dubai's main index (.DFMGI), opens new tab snapped three sessions of gains, with the index settling 0.1% down.

Among the losers, Dubai lenders Mashreqbank (MASB.DU), opens new tab and Commercial Bank of Dubai (CBD.DU), opens new tab dropped 2% and 4%, respectively.

Meanwhile, the UAE central bank cut its base rate applied to the overnight deposit facility by 25 basis points on Thursday, from 4.90% to 4.65%, effective Nov. 8.

The Abu Dhabi index recorded 1.1% weekly growth, while the Dubai index extended gains to fifth week, with a 0.4% rise, according to LSEG data.

Most Gulf markets in black as investors weigh Trump win | Reuters

Most Gulf markets in black as investors weigh Trump win | Reuters

Most stock markets in the Gulf ended higher on Thursday in line with global shares as investors navigated the implications of a second Donald Trump presidency.

Trump recaptured the White House with a sweeping victory on Wednesday as tens of millions of Americans looked past his criminal charges and divisive rhetoric to embrace a leader who, if he carries out his campaign promises, will test the limits of presidential power.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 1.2% and Al Rajhi Bank (1120.SE), opens new tab increasing 2%.

On the other hand, Saudi Arabian Mining Company (1211.SE), opens new tab declined 4.1%, after the miner swung to quarterly profit but saw a sequential decrease in earnings.

Trump's proposed import tariffs might strengthen the U.S. dollar through reduced spending on foreign goods, benefiting Gulf Cooperation Countries' (GCC) currencies, said Vijay Valecha, chief investment officer, Century Financial.

A stronger dollar from Trump's protectionist policies would also increase foreign investment in the GCC region, added Valecha.

Dubai's main share index (.DFMGI), opens new tab gained 0.6%, led by a 4% jump in Emirates Central Cooling Systems Corp (Empower) (EMPOWER.DU), opens new tab, which saw an increase in revenue despite reporting a fall in quarterly profit.

However, Dubai Taxi Company (DTC.DU), opens new tab, the largest taxi operator in the Gulf city state by market share, declined 4.1% following a slide in quarterly profit.

In Abu Dhabi, the index (.FTFADGI), opens new tab reversed early losses to close 0.4% higher, helped by a 0.6% increase in conglomerate International Holding Co (IHC) (IHC.AD), opens new tab.

IHC - Abu Dhabi's most valuable company - reported a third-quarter net profit of 5.69 billion dirhams ($1.55 billion), up from 4.83 billion dirhams a year ago.

In addition, according to Valecha, Trump is more likely to resolve regional conflict faster as compared to his counterpart, which is expected to promote further stability in the region.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.7%.

** The Qatari bourse was closed for a public holiday.

Grocer Lulu Raises $1.72 Billion in #UAE’s Largest IPO This Year - Bloomberg

Grocer Lulu Raises $1.72 Billion in UAE’s Largest IPO This Year - Bloomberg

Hypermarket chain operator Lulu Retail Holdings Plc’s $1.72 billion Abu Dhabi initial public offering drew orders worth $37 billion, including from global investors Vanguard Group Inc. and Singapore sovereign wealth fund GIC Pte.

Lulu International Holdings sold 3.10 billion shares, or a 30% stake, at 2.04 dirhams ($0.56) apiece, the top of a marketed range. Based on that offer price, the firm will have a market capitalization of 21.1 billion dirhams when it lists on Nov. 14.

Apart from Vanguard and GIC, sovereign entities from Gulf Cooperation Council countries — including Saudi Arabia’s Public Investment Fund and Hassana, Qatar Investment Authority and Kuwait Investment Authority — invested in the offer, founder Yusuff Ali said at a press conference in Abu Dhabi Wednesday.

Lulu previously said it had secured commitments from Saudi Arabia’s Masarrah Investment Co., Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding, Emirates International Investment Co., and Oman Investment Authority. Those funds bought shares worth just over 1 billion dirhams.

The retailer initially planned to sell a 25% stake and raise up to $1.43 billion, but increased the size of the IPO, citing strong investor interest. The deal had demand for all shares an hour after books opened last week, eclipsing oil services firm NMDC Energy’s $877 million offering as United Arab Emirates’ biggest IPO of the year.

The IPO marks the latest in a series of private sector listings across the Middle East, offering investors a broader choice beyond state-owned assets. Delivery Hero SE’s Middle Eastern unit Talabat and IT services firm Alpha Data are also planning listings in the UAE this year.

High-end supermarket chain Spinneys 1961 Holding Plc raised $374 million from a Dubai listing in May, though the stock had a relatively muted debut and continues to trade around the offer price.

Lulu plans to open about 90 stores across the Gulf over the next five years, with Saudi Arabia and the UAE slated as its main expansion markets.

Abu Dhabi Commercial Bank PJSC, Citigroup Inc., Emirates NBD Capital and HSBC Holdings Plc are the joint global coordinators on the offering. Moelis & Co. is an advisor on the deal.

Most Gulf markets gain on Trump's presidential win | Reuters

Most Gulf markets gain on Trump's presidential win | Reuters

Most stock markets in the Gulf ended higher on Wednesday as a win by Republican Donald Trump in the U.S. presidential election fuelled expectations of more business-friendly policies, analysts said.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.7%, Dubai's main share index (.DFMGI), opens new tab added 0.5% and in Abu Dhabi, the index (.FTFADGI), opens new tab added 0.4%.

"Analysts noted that these market moves align with investor expectations of a Trump administration’s economic approach, prioritising reduced regulatory pressures and trade policy changes," Mohamed Hashad, chief market strategist, at Noor Capital said.

Saudi's Al Rajhi Bank (1120.SE), opens new tab rose 2.3% and Saudi Arabian Mining Company (1211.SE), opens new tab closed 4.1% higher, while Saudi Electricity Co (5110.SE), opens new tab jumped 6.3%, following a steep rise in quarterly net profit.

The biggest mover in Dubai was toll operator Salik Company (SALIK.DU), opens new tab, which gained 2.5%, while sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gained 1.2%, a day after reporting a rise in third-quarter profit.

In Abu Dhabi, conglomerate International Holding (IHC.AD), opens new tab rose 0.8% ahead of its earnings announcement.

However, crude prices - a catalyst for the Gulf's financial markets - fell as the U.S. dollar rallied on Trump's win.

Investors believe a Trump presidency will bolster the dollar as interest rates may need to remain high to combat inflation resulting from any new tariffs.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.8%, with Fawry For Banking Technology Electronic Payments (FWRY.CA), opens new tab rising 3.2%.

Egypt's net foreign reserves rose to $46.942 billion in October from $46.737 billion in September, the central bank said on Wednesday.

#Saudi Aramco Is Burning Cash – It Needs to Stop - Bloomberg ht @JavierBlas

Saudi Aramco Is Burning Cash – It Needs to Stop - Bloomberg

If something cannot go on forever, it will stop. Saudi Aramco, the world’s largest oil company, isn’t an exception — despite its $1.5 trillion-plus market value. With oil prices at $75 a barrel and production constrained by OPEC+ cuts, the state-owned company cannot afford its total dividend anymore. Lower payouts are looming.

Year-to-date, Aramco has paid dividends of $93.2 billion, financed by taking on debt as its free cashflow amounted to just $63.7 billion during the same period. Put simply, Aramco has burned through more than $100 million a day – a day – to finance its distribution to shareholders. Even the fortress-like balance sheet of the Saudi company cannot sustain that for ever.

The likely reduction matters to the Saudi government, which still controls about 97% of the company’s equity and relies on its largesse to finance its extravagant spending. It matters, too, to the few international investors that the Saudis have lured into Aramco with the promise of lavish payouts.

In some ways, the cut would be natural. Aramco pays two dividends: a base one, worth just over $20 billion per quarter, plus a so-called “performance-linked” payment worth just shy of $11 billion. When the company announced the introduction of its performance payout in mid-2023, after the Russian invasion of Ukraine sent oil prices to $100 a barrel, it guided investors to expect performance payouts for six quarters. If Aramco sticks to its plan, the sixth instalment would be declared in the current fourth quarter.

The Saudi government has used the big dividends to attract more investors in the hope of being able to sell small chunks of the company every few years. After the initial public offering in late 2019, Riyadh followed up with a secondary public offering in June. Buybacks, the preferred route for Big Oil to return extra capital to shareholders, aren’t an option for Riyadh, because they would further reduce the stock’s already minimal free float.

The extra dividend boosted the financial attraction of Aramco for the second share sale. At current market prices, the company trades at an unusually large dividend yield north of 7%, way higher than the 3.5% to 4.5% of Exxon Mobil Corp. and Chevron Corp. But even at such a generous level, few investors have taken the bait. This year, Aramco shares have underperformed all of its Big Oil rivals, including badly performing BP Plc.

If Aramco has to reduce its total dividend significantly in 2025, the underperformance is only going to get worse. Looking at its latest quarterly earnings, published on Tuesday, it doesn’t look like it will be able to extend its performance dividends any more.

When the extra payouts were introduced, Aramco said it intended to return 50% to 70% of its annual free cash flow, net of the base dividend and other expenses, to shareholders. But now, that income barely covers the base dividend. During the third quarter, Aramco reported free cash flow of nearly $22 billion and a base dividend payment of $20.3 billion. With oil down and the OPEC+ deal preventing Aramco from raising output, earnings are likely to drop further in the final three months of the year; it wouldn’t surprise me if Aramco can’t cover its base dividend between October and December.

In a worst-case scenario, the company won’t declare any performance dividend at all from early next year, reducing its quarterly dividend to about $21 billion in 2025, down nearly a third from this year’s total payouts. Aramco, of course, may get lucky if oil prices recover, perhaps due more geopolitical upheaval. It also may take on more debt to sustain higher payouts than its earnings alone would allow.

The beauty of the Saudi oil giant is that it can afford to undertake that kind of financial effort for a while. Compared with its peers, it remains virtually debt free. At the end of the third quarter, its gearing stood at just 1.9%, well below the 10% to 20% typical of Big Oil. Aramco targets gearing of 5% to 15%, so it can add another $50 billion in net debt without breaching its own targets. But taking on huge amounts of debt to finance dividend payments would only spook foreign investors, already lukewarm to the company’s financial messaging.

The prudent solution is to reset expectations — soon. The performance dividends will go away at the end of this year. Aramco can give assurances that its base dividend for 2025 is safe, even if for a few months it needs to borrow a bit more to offset lower oil prices. The balance sheet can tolerate such a move; it would also give Aramco room to reset its base dividend at a higher level.

But the kingdom would need to accept that with lower payouts comes a lower valuation. Aramco is a great company – but there’s an original sin: the royal’s insistence that it’s worth $2 trillion, no matter what. It isn’t worth that much — and financial engineering won’t bridge the gap.

Most Gulf markets gain ahead of US election | Reuters

Most Gulf markets gain ahead of US election | Reuters

Most stock markets in the Gulf rose on Tuesday as markets waited for early indications of the outcome of a knife-edge U.S. election.

Election Day ends an acrimonious campaign jolted by assassination attempts on Republican candidate and former President Donald Trump and the withdrawal of Democratic President Joe Biden in favour of Vice President Kamala Harris, with polls showing the candidates virtually tied.

Dubai's main share index (.TASI), opens new tab rose 0.2%, with Emirates Integrated Telecommunications (DU.DU), opens new tab up 2% and budget airliner Air Arabia (AIRA.DU), opens new tab gaining 1.1%.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.6%, led by a 6.7% gain for Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab.

ADNOC Drilling Company (ADNOCDRILL.AD), opens new tab and Alpha Dhabi Holding announced on Monday that their joint venture Enersol had agreed to acquire a 95% equity stake in Deep Well Services (DWS) for about $223 million including performance-based payments.

Shares of ADNOC Drilling were up 2.3%.

The Qatari index (.QSI), opens new tab finished 0.2% higher, with Qatar Gas Transport Nakilat (QGTS.QA), opens new tab rising 1.5%.

Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.2% lower, hit by a 1.5% fall in ACWA Power Company (2082.SE), opens new tab.

Oil giant Saudi Aramco (2222.SE), opens new tab reversed early losses to close 0.2% higher, despite reporting a 15.4% drop in third-quarter profit due to lower crude prices and weaker refining margins. It maintained its dividend at $31.1 billion for the quarter.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.5%.

#Oman's OQ to list up to 49% stake in methanol, ammonia and LPG arm | Reuters

Oman's OQ to list up to 49% stake in methanol, ammonia and LPG arm | Reuters

Oman's OQ Base Industries (OQBI), the methanol, ammonia and liquefied petroleum gas (LPG) arm of state-owned OQ, plans to list an up to 49% stake on the local stock exchange, it said on Monday, adding to a string of IPOs in the Gulf country.

The listing is part of a privatisation programme by state-owned energy group OQ, which is helping Oman - a small non-OPEC oil producer - to diversify its economy and cut its debt.

It would follow the flotation of OQ's exploration and production business (OQEP.OM), opens new tab, which raised about $2 billion last month in the country's biggest IPO ever.

OQBI is in talks with potential investors and working with bankers "to determine the fair price for the shares", CEO Khalid Khalfan Al Asmi told Reuters, without providing further details.

Based in Salalah, home to Oman's biggest port, OQBI operates three strategic divisions: methanol, ammonia and LPG products.

Methanol is a lower-carbon fuel while ammonia is mainly used in fertilisers and chemicals. LPG includes propane, butane, and cooking gas, which are used as fuel for cars, heating.

The company has a combined capacity of 1.8 million metric tons per annum of production (mtpa), with methanol accounting for around 1.1 mtpa of the total.

OQBI, which exports all of its produced methanol and ammonia and 87% of its LPG products, was leveraging its strategic location near major shipping lines, Al Asmi added.

It expects to pay a dividend of 32.7 million Omani riyals ($85 million) for 2024 and distribute a dividend at least 5% higher than this year's payout for 2025 and 2026.

The company posted revenue of more than $500 million for the 12 months (LTM) to the end of June 2024, it said.

OQBI said that all the proceeds from the offering will be distributed to the selling shareholders, with the subscription period expected to start this month. The shares are expected to begin trading in December.

Investcorp Veteran Is Said to Plan $1 Billion #AbuDhabi Fund - Bloomberg

Investcorp Veteran Is Said to Plan $1 Billion Abu Dhabi Fund - Bloomberg

The former co-chief executive officer of the Middle East’s top alternative asset manager is setting up a $1 billion permanent capital fund to buy stakes in financial services firms across the Global South, according to people familiar with the matter.

Hazem Ben-Gacem, who stepped down as co-chief executive officer of Investcorp Holdings in September, is in talks with investors across the US, Asia, Europe, and the Middle East to raise funds for BlueFive Capital, the people said, asking not to be identified as the information is private.

The Abu Dhabi-based vehicle will invest in insurance, private wealth and public-market brokerage firms, according to the people. The veteran deal-maker is leaning on a network of contacts that he built over three decades at Investcorp, before leaving as part of a sweeping reshuffle.

Ben-Gacem also plans to secure founding shareholders for BlueFive and potentially raise infrastructure and private equity funds in the future, the people said. That’s part of a five-year target of transforming BlueFive into a $25 billion entity, including assets of the firms it acquires, they said.

A spokesperson for Ben-Gacem declined to comment.

BlueFive will initially look to invest across Southeast Asia and Gulf Cooperation Council nations — Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman and Bahrain — the people said. It will later look to invest in Latin America to create a financial services firm operating across the Global South, they said.

The fund is the latest to try and capitalize on rising investor interest in the Middle East and its growing political and trade ties across Latin America and Asia. As nations including Saudi Arabia and the UAE try to diversify their economies, they are increasingly hoping to boost trade and investment flows with other large developing nations like China and Brazil.

Investcorp established an investment vehicle backed by China Investment Corp. earlier this year. “That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV last week, adding that the new entity has already inked three deals.

Ben-Gacem’s BlueFive will be based in Abu Dhabi, the UAE capital that’s lured some of the biggest names in finance. The emirate’s deep pools of capital, including three sovereign wealth funds that control $1.5 trillion in assets, have been a key part of the draw for firms.

One of those state-backed funds, the $302 billion Mubadala Investment Co., is a shareholder in Investcorp, which also counts some of the Middle East’s wealthiest royals and business moguls among its backers.

At Investcorp, Harvard-educated Ben-Gacem oversaw investing and capital raising with Mideast sovereign and institutional funds. He also led the firm’s Europe private equity business and global technology investments, and helped drive a push into Asia as part of a plan to double assets under management to more than $100 billion over the next few years.

Top Grocer Lulu Boosts Size of #AbuDhabi IPO to $1.72 Billion - Bloomberg

Top Grocer Lulu Boosts Size of Abu Dhabi IPO to $1.72 Billion - Bloomberg

Lulu Retail Holdings Plc increased the number of shares on offer in its Abu Dhabi initial public offering, and now targets raising as much as $1.72 billion in the United Arab Emirates’ biggest listing of the year.

Lulu International Holdings now plans to offer a 30% stake in the firm, or 3.10 billion shares, it said in a statement Monday. The price range remains unchanged at 1.94 dirhams ($0.53) to 2.04 dirhams per share.

The deal is likely to price at the top end, Bloomberg News reported earlier on Monday. Lulu previously planned to sell 2.58 billion shares, or a 25% stake, and raise as much as $1.43 billion. The firm had demand for all shares on offer an hour after books opened on the deal last week.

The firm cited a “significant level of demand received from international, regional and local investors, and the inclusion of additional cornerstone investors to the IPO,” as the reason for the increase. Saudi Arabia’s Masarrah Investment Co. will buy shares worth 250 million dirhams, it said.

Institutional investors including Abu Dhabi Pension Fund, Bahrain Mumtalakat Holding Company Co., Emirates International Investment Co., and Oman Investment Authority had already agreed to subscribe for shares worth 753 million dirhams.

Lulu operates one of the Middle East’s largest hypermarket chains. It reported a profit of $192 million last year, and aims to maintain a dividend payout ratio of 75%. Its net profit margins are expected to reach 5% over the medium term, up from 2.6% in 2023, its chief executive officer told Bloomberg News.

The company — founded by Indian entrepreneur Yusuff Ali — plans to open about 90 stores across the Gulf over the next five years, with Saudi Arabia and the UAE slated as its main expansion markets.

Final pricing is expected on Nov. 6, and the shares are scheduled to begin trading on Nov. 14. Abu Dhabi Commercial Bank PJSC, Citigroup Inc., Emirates NBD Capital and HSBC Holdings Plc are the joint global coordinators on the sale. Moelis & Co. is an advisor on the deal.

The Middle East has seen a flurry of new share sales this year, which have raised just shy of $8 billion — with the UAE accounting for around 30% — despite the conflict in the region. Oman’s state energy company unveiled plans for an IPO of its methanol and liquefied petroleum gas unit on Monday, while the share sale of a Saudi financial services firm is also likely to price at the top end of a range, Bloomberg News reported.

LuLu’s IPO will be the biggest private sector listing in the region in 2024, and there are more in the pipeline. Delivery Hero SE’s Middle Eastern unit Talabat and IT services firm Alpha Data are preparing to list in the UAE before year end.

High-end supermarket chain Spinneys 1961 Holding Plc had raised $374 million from a Dubai listing in May, though the stock had a relatively muted debut and its shares still trade around the offer price.

Most Gulf markets in red on regional tensions | Reuters

Most Gulf markets in red on regional tensions | Reuters

Most stock markets in the Gulf ended lower on Monday after a report suggesting Iran might be preparing a retaliatory strike on Israel unnerved investors.

The United States has warned Iran against launching another attack on Israel, adding Washington will not be able to restrain Israel if it attacks again, Axios reported on Saturday, citing a U.S. official and a former Israeli official.

Axios previously reported Israeli intelligence suggests Iran is preparing to attack Israel from Iraqi territory in the coming days.

Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab falling 0.2% and ACWA Power Company (2082.SE), opens new tab dropping 2.2%.

Dubai's main share index (.DFMGI), opens new tab dropped 0.8%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 0.8% and Tecom Group (TECOM.DU), opens new tab retreating 2.2%.

The Abu Dhabi index (.FTFADGI), opens new tab finished 0.2% lower.

Investors were also wary of the decision by OPEC+, which includes the Organization of the Petroleum Exporting Countries plus Russia and other allies, to delay plans to increase crude output by a month.

On Sunday, OPEC+ said it would extend its output cut of 2.2 million barrels per day (bpd) for another month in December, with an increase already delayed from October because of falling prices and weak demand.

Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.

In Qatar, the index (.QSI), opens new tab gained 0.4%, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.9% and telecom firm Ooredoo (ORDS.QA), opens new tab advanced 1.8%.

Qatari Emir Sheikh Tamim bin Hamad Al Thani has set Tuesday as the date for a referendum on 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 lost 0.6%, hit by a 1% fall in Commercial International Bank (COMI.CA), opens new tab, despite the lender reporting a steep rise in third-quarter profit.

Most Gulf markets subdued on regional tensions | Reuters

Most Gulf markets subdued on regional tensions | Reuters

Most stock markets in the Gulf were subdued on Sunday after a report suggested Iran might be preparing a retaliatory strike on Israel from Iraqi territory in the coming days.

The U.S. has warned Iran against launching another attack on Israel, adding Washington will not be able to restrain Israel if it attacks again, Axios reported on Saturday, citing a U.S. official and a former Israeli official.

Axios previously reported that Israeli intelligence suggests Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the U.S. presidential election on Nov. 5.

Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.2% higher, helped by a 3.2% rise in ACWA Power Company (2082.SE), opens new tab.

Among other gainers, MBC Group (4072.SE), opens new tab surged 10% - to its daily maximum limit - after Istedamah signed a binding share sale and purchase agreement with Public Investment Fund to sell its entire stake in the media giant MBC Group.

In Qatar, the index (.QSI), opens new tab lost 0.2%, hit by a 0.5% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.6%, with Commercial International Bank (COMI.CA), opens new tab rising 1.3%.

The International Monetary Fund will begin its review of Egypt's loan programme on Tuesday, Egyptian Prime Minister Mostafa Madbouly said on Sunday at a press conference with IMF managing director Kristalina Georgieva.

Elon Musk in funding talks with Middle East investors to value xAI at $45bn

Elon Musk in funding talks with Middle East investors to value xAI at $45bn

Elon Musk is in talks with some of the largest investors in the Middle East about a fundraising for his artificial intelligence start-up that could roughly double the one-year-old company’s valuation to $45bn. 

According to six people with knowledge of the conversations, xAI is in early talks with new and existing investors, seeking fresh capital to compete with OpenAI, which recently raised more than $10bn in debt and equity, as well as Anthropic and Big Tech rivals including Google and Meta. 

Musk has approached investors in Qatar and Saudi Arabia about backing his AI start-up, according to three of the people. He has also talked to current investors including Sequoia Capital and Valor Equity Partners. 

A potential valuation of $45bn has been floated with investors, close to double the level reached in a funding round this summer, said two of the people. Valor is expected to lead the round and Sequoia to participate, according to two other people with knowledge of the discussions, who cautioned they were at a preliminary stage and that the target valuation and participation could change. 

Sequoia declined to comment. Musk and Valor did not respond to a request for comment.

Mubadala and KKR among groups that have held talks with UK data firm 9fin

Mubadala and KKR among groups that have held talks with UK data firm 9fin

Firms including Abu Dhabi’s Mubadala Capital and private equity giant KKR have held talks to invest in UK corporate debt research start-up 9fin, in a deal that would value the privately held company at around $500mn, according to people familiar with the matter. 

An investment would mark the latest in a flurry of high-profile transactions for businesses that provide information on niche areas of financial markets. 

No final agreement has been reached and may be weeks away, said the people. Other suitors had also been part of the stake sale process. 9fin, Mubadala Capital and KKR declined to comment. 

9fin was founded in 2016 in London by former JPMorgan banker Steven Hunter and Huss El-Sheikh, who previously worked for Deutsche Bank. It employs journalists who break news about leveraged finance deals as well as former deal lawyers and financial analysts who write analysis on investment opportunities.

#UAE markets boosted by earnings and oil prices | Reuters

UAE markets boosted by earnings and oil prices | Reuters

Stock markets in United Arab Emirates closed higher on Friday, lifted by positive earnings results and a jump in oil prices caused by reports Iran is preparing to launch a retaliatory strike on Israel from Iraq in the coming days.

Oil prices rose 2.1% to $74.30 a barrel by 1042 GMT.

In the oil-producing Gulf, higher crude prices spur gains. Banking stocks stand to be the biggest winners from any extra income.

Dubai's main index (.DFMGI), opens new tab started November with 0.7% in gains, rebounding from previous session's loss with leading lender Emirates NBD Bank (ENBD.DU), opens new tab increasing 1.8% and blue-chip developer Emaar Properties (EMAR.DU), opens new tab rising 1.7%.

Other gainers included business park operator Tecom Group (TECOM.DU), opens new tab. It rose 0.6% after the firm posted 20% growth in third-quarter net profit to 339.6 million dirhams ($92.46 million).

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.2% higher, extending gains to sixth straight session, supported by a 2% hike in UAE's largest lender First Abu Dhabi Bank (FAB.AD), opens new tab and 2.9% jump in UAE's third largest lender Abu Dhabi Commercial Bank (ADCB.AD), opens new tab.

The Dubai index increased by 3.2%, its biggest weekly gains since early November Last year. On a monthly basis the index recorded 1.9% growth, according to LSEG data.

Abu Dhabi index advanced 1.6%, its highest weekly rise in nearly two months.

BlackRock Gets #SaudiArabia Approval for Regional HQ in Riyadh - Bloomberg

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.

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.

#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.

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.

#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.

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.

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%.

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.

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.

#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.

#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.

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."

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.

#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 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.

#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.

$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.