Davos 2024: UAE’s E& Sees its European Investments (Vodafone, PPF) Paying Off - Bloomberg
Hatem Dowidar, the chief executive officer of Emirati telecommunications company e&, said his investments in European carriers will start to pay off in the coming years as interest rates fall.
Dowidar — whose company has increased its stake in Vodafone Group Plc and has agreed to acquire Eastern European carrier PPF Telecom Group BV — said that while the industry in Europe has been hit hard by inflation and dividend commitments, he sees the market rebounding.
“Interest rates will not remain high forever,” Dowidar said in an interview with Bloomberg TV at the World Economic Forum in Davos on Thursday. “We believe that Europe will see growth again in the coming years.”
The European stocks also provide diversification compared to the company’s investments linked to “volatile” emerging market currencies in Egypt and Pakistan, he said. Dowidar said he may increase his stake in Vodafone, where the Abu Dhabi-based company is already the biggest shareholder, but will remain a minority holder.
Meanwhile, Dowidar said the company is “still open for investment generally” including in the Middle East, Africa and West Asia, though the Saudi market is “closed for now.”
In December, Dowidar’s company ended talks for a controlling stake in Saudi Arabia’s Mobily.
“Given the market there and the price of oil having escalated, I think we continue to be the biggest shareholder, but I think at the moment we have frozen the idea to get the majority,” Dowidar said.
Thursday, 18 January 2024
Exclusive: #SaudiArabia considering BRICS membership -sources | Reuters
Exclusive: Saudi Arabia considering BRICS membership -sources | Reuters
BRICS, formed by Brazil, Russia, India, China, and South Africa, invited six more nations in August including Saudi Arabia. Fellow Gulf Cooperation Council (GCC) member, the UAE, said it had accepted the invitation and joined the BRICS bloc, according to the ministry of foreign affairs.
Saudi Arabia is still considering an invitation to become a member of the BRICS bloc of countries after the first opportunity to join passed earlier this month, two sources with direct knowledge of the matter told Reuters on Thursday. Jan. 1 was not the deadline for a decision, the two sources said, with one adding there were strong benefits to joining the bloc as China and India are the kingdom's biggest trading partners.
"Saudi Arabia is assessing the benefits and then will make a decision, there is a process happening," one of the sources said.
"Saudi Arabia is assessing the benefits and then will make a decision, there is a process happening," one of the sources said.
BRICS, formed by Brazil, Russia, India, China, and South Africa, invited six more nations in August including Saudi Arabia. Fellow Gulf Cooperation Council (GCC) member, the UAE, said it had accepted the invitation and joined the BRICS bloc, according to the ministry of foreign affairs.
Most Gulf bourses end lower on rate cut jitters | Reuters
Most Gulf bourses end lower on rate cut jitters | Reuters
Most stock markets in the Gulf ended lower on Thursday after U.S. economic data indicated that the rate easing cycle may not come as early as some had initially hoped.
Robust U.S. retail sales data on Wednesday boosted bets that the Federal Reserve may not quickly move to slash interest rates, with the CME FedWatch tool showing a roughly 60% chance of a cut in March, down from about 70% a month ago.
Fed Governor Christopher Waller said earlier this week the U.S. is "within striking distance" of the central bank's 2% inflation goal, but warned against rushing toward rate cuts until it is clear that lower inflation is sustainable.
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) dropped 0.9%, hit by a 0.6% fall in Ades Holding Co (2382.SE).
However, oil behemoth Saudi Aramco (2222.SE) gained 0.5%.
Oil prices - a catalyst for the Gulf's financial markets - rose as the IEA joined producer group OPEC in forecasting relatively strong growth in global oil demand this year, with price impetus also coming from disruption to U.S. output and geopolitical risks in the Middle East.
Dubai's main share index (.DFMGI) finished 0.9% lower, dragged down by a 2.3% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The United Arab Emirates has adopted a new law regulating public-private partnerships, which came into force on Dec. 1, state news agency WAM said on Thursday.
Individual emirates, such as Dubai, also have their own frameworks governing PPPs.
The Qatari benchmark (.QSI) slipped 0.8%, with Qatar Islamic Bank (QISB.QA) declining 2%.
Separately, Egypt's cabinet has approved a draft law authorising oil exploration in the Ras Qattara development area in the western desert, the cabinet said in a statement on Wednesday.
Robust U.S. retail sales data on Wednesday boosted bets that the Federal Reserve may not quickly move to slash interest rates, with the CME FedWatch tool showing a roughly 60% chance of a cut in March, down from about 70% a month ago.
Fed Governor Christopher Waller said earlier this week the U.S. is "within striking distance" of the central bank's 2% inflation goal, but warned against rushing toward rate cuts until it is clear that lower inflation is sustainable.
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) dropped 0.9%, hit by a 0.6% fall in Ades Holding Co (2382.SE).
However, oil behemoth Saudi Aramco (2222.SE) gained 0.5%.
Oil prices - a catalyst for the Gulf's financial markets - rose as the IEA joined producer group OPEC in forecasting relatively strong growth in global oil demand this year, with price impetus also coming from disruption to U.S. output and geopolitical risks in the Middle East.
Dubai's main share index (.DFMGI) finished 0.9% lower, dragged down by a 2.3% fall in blue-chip developer Emaar Properties (EMAR.DU).
In Abu Dhabi, the index (.FTFADGI) eased 0.1%.
The United Arab Emirates has adopted a new law regulating public-private partnerships, which came into force on Dec. 1, state news agency WAM said on Thursday.
Individual emirates, such as Dubai, also have their own frameworks governing PPPs.
The Qatari benchmark (.QSI) slipped 0.8%, with Qatar Islamic Bank (QISB.QA) declining 2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30) added 0.3%, helped by a 6% jump in Credit Agricole Egypt (CIEB.CA).
Separately, Egypt's cabinet has approved a draft law authorising oil exploration in the Ras Qattara development area in the western desert, the cabinet said in a statement on Wednesday.
#SaudiArabia's Tadawul to buy 32.6% stake in #Dubai Mercantile Exchange | Reuters
Saudi Arabia's Tadawul to buy 32.6% stake in Dubai Mercantile Exchange | Reuters
Stock exchange owner and operator Saudi Tadawul Group (1111.SE) will buy a 32.6% stake in the parent company of Dubai Mercantile Exchange (DME) and become the Emirati trading platform's joint largest shareholder, it said on Thursday.
Founded in 2007, DME lists the Oman crude oil futures contract, which is a physically settled contract serving as a Middle East benchmark used by the region's national oil companies as part of their export pricing formulas.
Tadawul will acquire a mix of new and existing shares in DME Holdings for $28.5 million in return for its 32.6% stake, with an option to increase the shareholding.
Under the deal, the Saudi stock exchange owner will become the joint largest shareholder alongside CME Group, "with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders", it said.
Founded in 2007, DME lists the Oman crude oil futures contract, which is a physically settled contract serving as a Middle East benchmark used by the region's national oil companies as part of their export pricing formulas.
Tadawul will acquire a mix of new and existing shares in DME Holdings for $28.5 million in return for its 32.6% stake, with an option to increase the shareholding.
Under the deal, the Saudi stock exchange owner will become the joint largest shareholder alongside CME Group, "with other shareholders including the Oman Investment Authority and Dubai Holding as well as global financial and commercial industry leaders", it said.
#Kuwait Conglomerate Alshaya to Cut Egypt Operations as Economy Struggles - Bloomberg
Kuwait Conglomerate Alshaya to Cut Egypt Operations as Economy Struggles - Bloomberg
Kuwait-based retail franchise conglomerate Alshaya Group is curbing its operations in Egypt, citing “difficulties faced by overseas businesses” as the North African nation confronts its worst foreign-currency crunch in decades.
Alshaya, which runs local outlets of brands including Starbucks, Victoria’s Secret and H&M, will close 60 shops and lay off around 375 employees, it said in a statement to Bloomberg. The brands affected are The Body Shop, Mothercare, Debenhams, Pinkberry and Claire’s, according to an Alshaya spokesperson.
“As a result of the economic situation over the last three years and the difficulties faced by overseas businesses trading in Egypt, we have taken the very difficult decision to reduce our operations in the country,” Alshaya said in the statement. It didn’t give further details.
The closures spotlight the challenges businesses face in Egypt as officials struggle to revive a battered economy that’s seen three devaluations of its pound since early 2022. The government is in talks to potentially double a $3 billion International Monetary Fund loan program.
Kuwait-based retail franchise conglomerate Alshaya Group is curbing its operations in Egypt, citing “difficulties faced by overseas businesses” as the North African nation confronts its worst foreign-currency crunch in decades.
Alshaya, which runs local outlets of brands including Starbucks, Victoria’s Secret and H&M, will close 60 shops and lay off around 375 employees, it said in a statement to Bloomberg. The brands affected are The Body Shop, Mothercare, Debenhams, Pinkberry and Claire’s, according to an Alshaya spokesperson.
“As a result of the economic situation over the last three years and the difficulties faced by overseas businesses trading in Egypt, we have taken the very difficult decision to reduce our operations in the country,” Alshaya said in the statement. It didn’t give further details.
The closures spotlight the challenges businesses face in Egypt as officials struggle to revive a battered economy that’s seen three devaluations of its pound since early 2022. The government is in talks to potentially double a $3 billion International Monetary Fund loan program.
Oil prices rise on strong IEA and OPEC demand estimates | Reuters
Oil prices rise on strong IEA and OPEC demand estimates | Reuters
The Organization of the Petroleum Producing Countries (OPEC) had said on Wednesday that it expected demand growth of 2.25 million bpd this year, unchanged from its forecast in December. The producer group also said oil demand is expected to rise by a robust 1.85 million bpd in 2025 to 106.21 million bpd.
Oil prices rose on Thursday as the IEA joined producer group OPEC in forecasting relatively strong growth in global oil demand this year, with price impetus also coming from disruption to U.S. output and geopolitical risks in the Middle East.
Brent crude futures gained 37 cents, or 0.5%, to $78.25 a barrel by 1005 GMT while U.S. West Texas Intermediate crude futures rose 55 cents, or 0.8%, to $73.11.
The International Energy Agency (IEA) now expects oil demand to grow by 1.24 million barrels per day (bpd) in 2024, up 180,000 bpd from its previous projection, its monthly report said. The agency cited improved economic growth and lower crude prices in the fourth quarter.
The International Energy Agency (IEA) now expects oil demand to grow by 1.24 million barrels per day (bpd) in 2024, up 180,000 bpd from its previous projection, its monthly report said. The agency cited improved economic growth and lower crude prices in the fourth quarter.
The Organization of the Petroleum Producing Countries (OPEC) had said on Wednesday that it expected demand growth of 2.25 million bpd this year, unchanged from its forecast in December. The producer group also said oil demand is expected to rise by a robust 1.85 million bpd in 2025 to 106.21 million bpd.
Major Gulf markets mixed on US interest rate cut jitters | Reuters
Major Gulf markets mixed on US interest rate cut jitters | Reuters
Stronger U.S. retail sales data on Wednesday boosted bets that the Federal Reserve may not quickly move to slash interest rates, with the CME FedWatch tool showing a roughly 60% chance of a cut in March, down from about 70% a month ago.
Fed Governor Christopher Waller said earlier this week the U.S. is "within striking distance" of the central bank's 2% inflation goal, but it should not rush toward rate cuts until it is clear that lower inflation will sustain.
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) dropped 0.4%, dragged by a 1.8% fall in Etihad Atheeb Telecommunication Co (7040.SE) and a 1.6% decrease in auto rental firm Lumi (4262.SE).
Meanwhile, oil giant Saudi Aramco (2222.SE) advanced 0.9%. Aramco said on Wednesday it has boosted its Aramco Ventures unit by $4 billion, more than doubling the oil giant's overall venture capital funding.
Dubai's main share index (.DFMGI) eased 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), losing 0.7%, and top lender Emirates NBD (ENBD.DU) falling 0.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.2%, helped by a 0.7% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Oil prices - a catalyst for the Gulf's financial markets - rose as OPEC forecast relatively strong growth in global oil demand over the next two years and the market eyed disrupted U.S. oil production amid a cold blast, as well as geopolitical tensions in the Middle East.
Major stock markets in the Gulf were mixed in early trade on Thursday on expectations the global rate easing cycle may not come as early as some had initially thought.
Stronger U.S. retail sales data on Wednesday boosted bets that the Federal Reserve may not quickly move to slash interest rates, with the CME FedWatch tool showing a roughly 60% chance of a cut in March, down from about 70% a month ago.
Fed Governor Christopher Waller said earlier this week the U.S. is "within striking distance" of the central bank's 2% inflation goal, but it should not rush toward rate cuts until it is clear that lower inflation will sustain.
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) dropped 0.4%, dragged by a 1.8% fall in Etihad Atheeb Telecommunication Co (7040.SE) and a 1.6% decrease in auto rental firm Lumi (4262.SE).
Meanwhile, oil giant Saudi Aramco (2222.SE) advanced 0.9%. Aramco said on Wednesday it has boosted its Aramco Ventures unit by $4 billion, more than doubling the oil giant's overall venture capital funding.
Dubai's main share index (.DFMGI) eased 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), losing 0.7%, and top lender Emirates NBD (ENBD.DU) falling 0.6%.
In Abu Dhabi, the index (.FTFADGI) added 0.2%, helped by a 0.7% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD).
Oil prices - a catalyst for the Gulf's financial markets - rose as OPEC forecast relatively strong growth in global oil demand over the next two years and the market eyed disrupted U.S. oil production amid a cold blast, as well as geopolitical tensions in the Middle East.