Alvarez & Marsal restructuring executive detained in #UAE

Alvarez & Marsal restructuring executive detained in UAE

An executive from consulting firm Alvarez & Marsal was detained in the United Arab Emirates while working to overhaul a Nasdaq-listed company that US authorities charged with fraud last month, according to people familiar with the matter. 

Guy Wall, the managing director of A&M’s restructuring practice in Dubai, last month became a director of Brooge Energy Limited, a UAE oil storage company that had been plagued by financial reporting failings since listing in New York in 2019. 

Wall and a colleague became directors after A&M was appointed in November by a Cayman Islands court to oversee the liquidation of BPGIC Holdings, the holding company that is the majority owner of Brooge. 

The court appointed A&M as liquidators following a successful legal claim over unpaid debts from Bahrain-based investment firm Asma Capital. 

Wall was detained this month by authorities in the UAE, the people said, as he was in the process of working out a plan to stabilise Brooge after the fraud charges from the US Securities and Exchange Commission.

Mideast Stocks: Most Gulf markets retreat on interest rate worries

Mideast Stocks: Most Gulf markets retreat on interest rate worries

Most stock markets in the Gulf ended lower on Tuesday, in line with global shares, as markets dialled down bets that global interest rate cuts could come as early as March, partly nudged by hawkish remarks from central bank policy makers in Europe.

European Central Bank officials on Monday pushed back on expectations of lower interest rates, with Bundesbank President Joachim Nagel saying it was too early to discuss cuts. Investors are closely watching U.S. Federal Reserve Board Governor Christopher Waller's speech on the economic outlook at 1600 GMT since markets had so heartily cheered a shift in his hawkish views in November, when he laid out a path to cuts.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Saudi Arabia's benchmark index slipped 0.4%, a day after it snapped a five-session losing streak, hit by a 1.4% fall in oil giant Saudi Aramco. Yemen's Houthi movement said on Monday it will expand its targets in the Red Sea region to include U.S. ships, and that it would keep up attacks after U.S.-led strikes in Yemen.

As a result, more oil tankers sought to avoid the southern Red Sea. However, oil has been supported by the instability in the shipping lane; Brent was last up 0.6% at 78.62 a barrel.

In Qatar, the index finished 0.3% lower, weighed down by a 3.5% slide in shipping and logistics group Qatar Navigation . Elsehwere, Qatar Islamic Bank retreated 0.9%. Post trading hours, the sharia-compliant lender reported full-year net profit of 4.31 billion riyals ($1.18 billion), up 7.5% year-on-year.

Dubai's main share index dropped 0.5%, with blue-chip developer Emaar Properties falling 0.7%. The Abu Dhabi index eased 0.2%.

Outside the Gulf, Egypt's blue-chip index advanced 2.6%, hitting all-time high, led by a 11.8% surge in Talaat Mostafa Group (TMG), extending gains since Abu Dhabi wealth fund ADQ agreed to acquire a 40.5% stake in ICON, the hospitality arm of TMG.

#Dubai property prices could rise 5-10% this year -DAMAC CEO | Reuters

Dubai property prices could rise 5-10% this year -DAMAC CEO | Reuters

Dubai's real estate market could see price increases of 5-10% this year, the head of one of the city's biggest developers, DAMAC Properties, said on Tuesday, adding he did not expect a correction in the coming two years.

"The market is still strong. I think it's going to continue to remain strong," Hussain Sajwani told Reuters on the sidelines of the World Economic Forum in Davos.

"It may not see the same price escalation (as previously), so prices may see 5-10% escalation" in 2024, he said.

Residential property prices in Dubai rose 19.9% in December from a year earlier, consultancy ValuStrat said in a report.

Asked if he was concerned about a possible correction in Dubai's property sector, which boomed after a swift post-pandemic economic rebound and relaxed residency rules, Sajwani said: "Not for the coming two years."

DAMAC is pushing ahead with growth plans and sees the biggest growth in the high-end and luxury segments, Sajwani said.

DAMAC delisted from the Dubai stock market in 2022 after the COVID-19 pandemic hit the property market and weighed on the profitability of real estate firms.

Following the pandemic slump, the property market became red hot, fuelled in part by Russians fleeing their home country amid the Ukraine war and wealthy individuals including professionals in finance, law and other sectors relocating.

Outside Dubai, the firm has investments in Britain and Miami, where Sajwani said DAMAC is doing well.

It also sees potential in the Saudi market, where it is looking at opportunities, he said.

London Heathrow Deal With Saudis to Bring New Owners for 60% of Airport - Bloomberg

London Heathrow Deal With Saudis to Bring New Owners for 60% of Airport - Bloomberg

Ferrovial SE’s planned sale of its holding in London Heathrow Airport to a duo including Saudi Arabia’s wealth fund stands to kick off an even larger disposal by other shareholders, meaning that more than half of the ownership interest in the UK hub is set to change hands.

Shareholders accounting for an added 35% of Heathrow’s parent company plan to join Ferrovial, currently the biggest owner, in the stake sale, the Spanish infrastructure firm said Tuesday.

Ferrovial said in November that it was selling its 25% interest to Saudi Arabia’s Public Investment Fund and the French private equity firm Ardian. At the time, the sides said other shareholders were eligible to participate in the deal.

PIF was originally set to buy a 10% stake in Heathrow’s parent, and Ardian to take a 15% stake, for a total of 2.37 billion pounds ($3 billion). The Saudi fund intends to stay at 10% while Ardian is considering buying more, according to a person familiar with the matter who asked not to be named discussing confidential deliberations.

Representatives for Ferrovial and Heathrow declined to identify potential buyers. Ardian and PIF declined to comment.

The Ferrovial deal earlier raised concerns over Saudi ownership of key UK infrastructure. The UK has previously ceded ownership of ports to the Middle East, with Dubai-based DP World running ports and freight terminals at London Gateway and Southampton.

That deal remains in force, but it is a condition of the sale that the other shares are also sold, Ferrovial said. The so-called “tag along rights” entitle other investors in the airport to sell their shares at the same price as Ferrovial.

Qatar Investment Authority currently owns a 20% stake in Heathrow. Other investors include Caisse de dépôt et placement du Québec, Singapore’s GIC sovereign wealth fund, and Alinda Capital Partners of the US.

#Saudi Online Cosmetics Retailer Nice One Plans Local IPO - Bloomberg

Saudi Online Cosmetics Retailer Nice One Plans Local IPO - Bloomberg

Saudi Arabian online cosmetics retailer Nice One is planning an initial public offering, joining a number of Middle Eastern technology startups planning share sales.

The firm has asked banks to pitch for a role on the potential deal, according to people familiar with the matter. Deliberations are ongoing and details such as the size and timing of the IPO are still undecided, the people said, asking not to be identified as the information isn’t public.

A representative for Nice One didn’t immediately respond to requests for comment.

Founded in 2016, the e-commerce firm is part of a growing cohort of tech startups working toward IPOs in the Middle East as regional stock exchanges look to diversify listings beyond the banks and industrial companies that have dominated bourses for years.

Floward, an online company which delivers flowers and gifts, is working with banks on a potential listing this year, Bloomberg News reported in November.

The Middle East has also seen some significant funding rounds despite a global drop in venture capital deals due to higher interest rates and rising inflation. Saudi Arabian financial technology company Tamara was valued at over $1 billion in its latest round and is considering an IPO in the next few years, it said in December.

Another buy-now-pay-later firm, Tabby, became one of the Gulf region’s first fintech unicorns last year after a $200 million raise and is also planning to list in the kingdom.

#Qatar Wealth Fund Sticks With Canary Wharf Real Estate - Bloomberg

Qatar Wealth Fund Sticks With Canary Wharf Real Estate - Bloomberg

The head of Qatar’s $450 billion sovereign wealth fund — a prolific buyer of European property — said he’s concerned about the commercial real estate market but will continue to support London’s Canary Wharf Group project as a long-term shareholder.

The sector contains “a little bit of risk” because of the “leverage and cost of funding,” Mansoor Al Mahmoud, Chief Executive Officer of the Qatar Investment Authority said in a Bloomberg Television interview at the World Economic Forum in Davos on Monday.

Still, the fund, which last year committed to invest £400 million into the developer of London’s dockland financial district alongside Brookfield, will continue to support the project. “It is not time to exit it by all means,” Al Mahmoud said.

Canary Wharf has struggled since the pandemic led to a shift to flexible working, bringing in fewer workers to populate the desks of the large office blocks that dominate its skyline. HSBC Holdings Plc said it would quit its skyscraper in the district for a new location in central London, following a similar move by lawfirm Clifford Chance. For decades dominated by financial services firms, the area is intent on drawing in more residential and life-sciences tenants.

Founded in 2005 to handle Qatar’s revenue from liquefied natural gas, of which it is one of the biggest exporters, the QIA is known for its penchant for trophy assets. During the 2008 financial crisis, it backed lenders such as Barclays Plc and Credit Suisse. The fund now ranks as the world’s eighth-largest wealth fund, according to data and consultancy firm Global SWF.

Refinancing of GCC debt to take centrestage this year

Refinancing of GCC debt to take centrestage this year

With close to $45 billion of GCC debt maturing this year, refinancing of these instruments are expected to account for the bulk of the bond issuances by corporates and governments in the region this year, a report showed.

According to Kamco Invest’s GCC Fixed Income Market : 2023, this would be further supported by a strong pipeline of projects across the GCC related to the respective diversification goals. “We expect fresh issuances to be front-end loaded as seen recently and earlier-than-expected rate cuts to more evenly spread the issuances during the year,” Junaid Ansari, Kamco’s head of investment strategy and research, wrote in the report. Fiscal deficits by some sovereigns in the region is another factor supporting issuances by GCC sovereigns, he added.

Issuances of sukuk is expected to increase this year after seeing two straight years of declines until last year. “Key motivations for growth in sukuk issuance includes lower prevailing rates, crude oil prices remaining subdued around the $70 per barrel levels as well as diversification as a number of countries and corporates are embracing Islamic sukuk in their funding mix. Sovereigns in the GCC would be particularly looking at raising debt using the sukuk route due to the subdued expectations for oil prices,” the report said.

Moreover, maturity of sukuk is probably the highest on record in the case of GCC issuers at $37.9 billion in 2024. Refinancing of these securities should keep GCC issuances elevated in 2024, the report said.

The UAE witnessed the biggest growth in bond issuances during the year reaching $31.5 billion during 2023 as compared to $19.8 billion in 2022. Total bond issuances by GCC countries stood at $58.2 billion during 2023 as compared to $40.4 billion during 2022, registering an increase of 44.2 per cent or $17.8 billion.

#UAE’s first women-only job portal launched

UAE’s first women-only job portal launched

Women First Jobs, the trailblazing Women-Only Job Portal, has been launched, marking a historic milestone for women's empowerment in the UAE's workforce. This pioneering platform is set to revolutionise recruitment by exclusively catering to the talents and aspirations of women professionals.

In line with the vision of Sheikha Manal bint Mohammed bin Rashid Al Maktoum, President of the UAE Gender Balance Council, Women First Jobs is committed to supporting the UAE’s Gender Balance Council’s initiatives, ensuring equal pay, promoting gender equality in recruitment and promotion, mainstreaming a gender balance perspective, and maintaining transparency.

Founded by Priyanka Sengar, CEO at Women First Jobs, this platform addresses a critical need by offering a dedicated space for women professionals to explore career opportunities in sectors such as banking, fintech, edtech, hotels, hospitals, hospitality, food, beverages, logistics, and IT. The platform caters to senior-level roles as well as junior and middle management positions.

Crypto exchange OKX secures #Dubai licence to target retail clients | Reuters

Crypto exchange OKX secures Dubai licence to target retail clients | Reuters

OKX, one of the world's largest cryptocurrency exchanges, has been granted a regulatory licence in Dubai that will allow it to offer crypto services to retail clients, the company said on Tuesday.

Dubai's Virtual Assets Regulatory Authority (VARA) has awarded OKX Middle East a Virtual Asset Service Provider (VASP) licence for exchange services. When operational, it will enable OKX to provide spot services and spot-pairs services to qualified retail clients, as well as institutional customers.

The United Arab Emirates is pushing to become a global hub for the crypto industry. VARA was formed in March 2022 to regulate the emerging virtual asset sector in Dubai.

"We are looking at this as a game changer because we are able now to target both retail and institutional clients in the UAE and allow them to deposit and withdraw in their local currency," Rifad Mahasneh, OKX General Manager for the MENA region, told Reuters.

"We are working with VARA towards completing a few conditions before we can launch and we are working to do so over the next few weeks," he added.

According to VARA's public record of virtual asset service providers, OKX Middle East follows TOKO FZE and Trek Labs Ltd FZE in securing a licence for exchange services.

Binance, the world's largest cryptocurrency exchange, was also granted a licence to conduct some operations in Dubai in 2022.

OKX is regulated in the Bahamas and currently does not allow customers from the United States to use its platform due to regulatory issues.

Major Gulf markets fall on hawkish interest rate commentary | Reuters

Major Gulf markets fall on hawkish interest rate commentary | Reuters

Major stock markets in the Gulf were subdued in early trade on Tuesday as hawkish remarks from central bankers tempered expectations for early interest rate cuts.

European Central Bank officials on Monday pushed back on expectations on slashing interest rates, with Bundesbank President Joachim Nagel saying it was too early to discuss cuts.

Investors are closely watching Federal Reserve Board Governor Christopher Waller's speech on the economic outlook at 1600 GMT since markets had so heartily cheered a shift in his hawkish views in November, when he laid out a path to cuts.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Saudi Arabia's benchmark index (.TASI) edged down 0.1%, hit by a 0.5% drop in oil behemoth Saudi Aramco (2222.SE).

Oil prices, which fuel the Gulf's economy, were mixed, after posting losses the previous session, as broad economic concerns outweighed continued conflict in the Middle East that led to more tanker diversions.

The kingdom's energy index (.TENI) was down 0.5%.

In Qatar, the index (.QSI) slipped 0.7%, with almost all constituents on the index declining, including shipping and logistic group Qatar Navigation (QNNC.QA), which fell more than 4%.

Among other losers, Qatar Islamic Bank (QISB.QA) dropped 0.6% ahead of its earnings announcement.

Dubai's main share index (.DFMGI) retreated 0.7%, weighed by a 0.9% fall in blue-chip developer Emaar Properties (EMAR.DU) and a 3.7% slide in Ajman Bank (AJBNK.DU).

The Abu Dhabi index (.FTADGI) was down 0.4%.