#AbuDhabi Islamic Bank eyes corporate lending growth in 2024, #Saudi expansion | Reuters

Abu Dhabi Islamic Bank eyes corporate lending growth in 2024, Saudi expansion | Reuters

Abu Dhabi Islamic Bank (ADIB) (ADIB.AD) aims to seize further opportunities in corporate lending this year as part of its growth strategy, taking advantages in opportunities such as commercial and real estate, its finance chief said.

The bank on Tuesday posted a 45% rise in full-year net profit to a own record high of 5.25 billion dirhams ($1.43 billion), driven by revenues growth of almost 40%.

ADIB Chief Financial Officer Mohamed Abdel Bary said there were opportunities for the bank across several industries such as manufacturing, tourism and real estate, spurring growth in its corporate segment.

"We are looking at banking the ecosystem within that sector and going to large and medium corporate entities within our risk appetite," he told Reuters.

The Islamic lender enjoys a solid market share in its retail banking services, which Bary put at 15-16% domestically.

Outside of the UAE, ADIB plans to grow its presence in neighbouring Saudi Arabia while continuing to invest in Egypt despite current "challenges".

Bary did not disclose details on expansion plans in Saudi Arabia but added that the market is attractive on many fronts, and "provides opportunities to participate in many industries within the bank's risk appetite."

"Given we already have a big presence in Egypt, maybe Saudi will take a little more of our attention probably in the near future," Bary said.

Mideast Stocks: #Dubai bourse leads Gulf markets higher on upbeat earnings

Mideast Stocks: Dubai bourse leads Gulf markets higher on upbeat earnings

Most stock markets in the Gulf ended higher on Wednesday, largely on the back of corporate earnings with the Dubai index leading the gains. Dubai's main share index advanced 1.8%, with Dubai Islamic Bank (DIB) jumping 7.7% - its biggest intraday gain since June 2020 - after reporting upbeat full-year earnings.

DIB, the biggest Islamic lender in the United Arab Emirates, on Tuesday reported a 24% increase in full-year attributable net profit to 6.80 billion dirhams ($1.85 billion) from a year earlier Also, the lender raised its 2023 dividend proposal to 45% versus 30% for the year 2022. Elsewhere, top lender Emirates NBD closed 4.8% higher, ahead of its earnings announcement.

Saudi Arabia's benchmark index gained 0.6%, led by a 1.7% rise in Etihad Atheeb Telecommunication and a 1.4% increase in auto rental firm Lumi. Elsewhere, oil giant Saudi Aramco edged 0.2% higher.

Oil - which fuels the Gulf's economy - steadied, with Brent trading near $80 a barrel, as a Chinese economic stimulus package and geopolitical tensions were offset by concerns over tepid demand and a stronger dollar.

Separately, Saudi-based Middle East Pharmaceutical Industries Company, known as Avalon Pharma, priced its initial public offering (IPO) at the top of its range, selling the shares at 82 riyals ($21.87) each on Wednesday. In Abu Dhabi, the index finished flat.

The Qatari benchmark added 0.1%, with petrochemical maker Industries Qatar gaining 2.7%. However, Islamic lender Masraf Al Rayan declined 3.8%, after reporting a 8% increase in 2023 profit. Outside the Gulf, Egypt's blue-chip index rose 0.3%, with Talaat Mostafa Holding leaping 8.4%.

Meanwhile, Egyptian economic growth will be slower than previously expected as its pound weakens, inflation cuts into purchasing power and fallout from the Gaza crisis eats into the country's main sources of foreign currency, a Reuters poll showed on Wednesday.

#SaudiArabia's Avalon Pharma prices IPO at top of range | Reuters

Saudi Arabia's Avalon Pharma prices IPO at top of range | Reuters

Saudi-based Middle East Pharmaceutical Industries Company, known as Avalon Pharma, priced its initial public offering (IPO) at the top of its range, selling the shares at 82 riyals ($21.87) each on Wednesday.

Avalon Pharma is offering six million shares, or 30% of its issued share capital, on the Saudi Exchange's Main Market.

Earlier this month, the company disclosed a price range of between 78 riyals and 82 riyals a share.

Headquartered in Riyadh, Avalon Pharma's main activities include the development, manufacturing and marketing of consumer health and beauty brands as well as generic prescription medicines.

SoftBank Veteran Entrusted With #Saudi, #UAE Billions Readies Second Act - Bloomberg

SoftBank Veteran Entrusted With Saudi, UAE Billions Readies Second Act - Bloomberg

The Indian-born financier who helped open the floodgates to Middle Eastern wealth for Masayoshi Son’s $100 billion Vision Fund is attempting his second act. This time, he’s going solo.

At SoftBank Group Corp.’s splashy tech vehicle, Rajeev Misra helped secure commitments worth $45 billion from Saudi Arabia’s Public Investment Fund and $15 billion from Abu Dhabi’s Mubadala Investment Co. Investments in high-flying startups ensued — Uber Technologies Inc. and WeWork Inc. among them — but many bets blew up as markets turned. Misra largely stepped back from that venture in 2022 after a tenure marred by internal clashes and investment writedowns.

Undeterred by those losses, Misra’s now attempting a comeback — this time in credit. He’s even leaning on the same Middle Eastern network to raise money. It’s a gamble that has shades of the kind of chutzpah he and Son displayed last time round, though Misra now says he’s determined to do better after watching the investment mistakes made in the aftermath of SoftBank's scramble to hire people.

“I have learned my lessons,” Misra, 62, said in an interview with Bloomberg News. He’s already raised $6.8 billion for his One Investment Management from backers including Mubadala and Sheikh Tahnoon bin Zayed Al Nahyan’s Royal Group. Misra is seeking to boost the size of the fund to more than $10 billion, and hopes to get Saudi Arabia to invest as well.

While he’s vowing to deploy clients’ cash with a dose of caution, it’s an endeavor that will come with its own set of risks, particularly given his past history with Middle Eastern money. A global economy slammed by two wars and other geopolitical upheaval could once again bring market turbulence. And even Misra acknowledges there are limits to the region’s largess. “Endless well, bottomless pit? There is no such thing,” he said. “If you lose money, that pit is closed.”

Riyadh's multi-billion EV dream risks crashing into reality | Reuters

Riyadh's multi-billion EV dream risks crashing into reality | Reuters

Riyadh has spent billions to try to turn itself into a hub for electric vehicles and overcome obstacles including a lack of infrastructure, talent and raw materials, as it seeks to catch up in the global race to reap the profits of the new industry.
As part of a broader plan by Saudi Crown Prince Mohammed bin Salman to wean the economy off oil and create jobs, the kingdom has invested at least $10 billion in U.S.-based Lucid Motors, set up Ceer, Saudi Arabia's own brand, and built an EV metals plant.

The Public Investment Fund (PIF), Saudi Arabia's $700 billion sovereign wealth fund, has a goal to produce 500,000 EVs annually by 2030, up from a target of 150,000 in 2026.

Yet by December, the kingdom's sole auto factory, opened in September 2023, had reassembled around 800 vehicles, based on kits supplied from Arizona.

Saudi Arabia has failed in the past to attract automotive manufacturing.

Japan’s Toyota (7203.T) declined a deal in 2019, citing high labour costs, a lack of local suppliers, and a small local market.

#Oman’s economic recovery continues: IMF affirms

Oman’s economic recovery continues: IMF affirms

The Sultanate of Oman has welcomed the International Monetary Fund 2023 Article IV Consultation Report, approved by IMF Executive Board on Tuesday.

The report was issued following a series of consultations between IMF experts and over 20 government and private entities as part of the annual periodic consultations under Article IV of the Articles of Agreement of the IMF.

At the level of domestic economy performance,the report indicates that the Sultanate of Oman’s economic recovery continues, supported by favourable oil prices and sustained reform momentum. This manifested in the growth of the real GDP by 4.3 percent in 2022, primarily driven by the growth of hydrocarbon and non-hydrocarbon sectors, despite its slowdown in the first half of 2023 on the back of OPEC+-related oil production cuts.

In addition, non-hydrocarbon growth accelerated from 1.2 percent in 2022 to 2.7 percent in the first half of 2023, supported by recovering agricultural, forestry, fisheries, construction activities and robust services sector.

In terms of domestic prices levels, the report highlights the factors that contributed to containing inflation, which significantly receded from 2.8 percent in 2022 to 1.2 percent during January-September 2023. These include subsidies on basic food items, caps on domestic petroleum prices and the peg to a strong US Dollar.

Mideast Stocks: #Dubai leads most Gulf markets higher

Mideast Stocks: Dubai leads most Gulf markets higher

Stock markets in the Gulf were up on Wednesday in early trade amid rising oil prices and robust corporate earnings, with the Dubai index outperforming its peers.

Oil prices, a catalyst for the Gulf's financial markets, rose slightly after a modest fall earlier in the session as traders weighed the impact on prices stemming from escalating geopolitical tensions and concerns over tepid demand.

Dubai's benchmark stock index surged 1.2%, the highest rise in nearly three months, with all sectors in positive territory.

The index was lifted by a record surge in Dubai Islamic Bank which jumped 7.9% in early trade, the sharpest rise since June 2020.

The biggest Islamic lender in the United Arab Emirates, reported on Tuesday a 24% increase in full-year attributable net profit to 6.80 billion dirhams ($1.85 billion), up from 5.47 billion ($1.49 billion) a year earlier.

Saudi Arabia's benchmark stock index was up 0.6%, supported by a gain of 1% in Al Rajhi Bank and a 1.4% rise in Elm Co.

In Abu Dhabi, the benchmark stock index advanced 0.3%, with UAE's largest lender First Abu Dhabi Bank gaining 1.8% and Abu Dhabi Islamic Bank climbing 2.5%.

ADIB reported on Tuesday a 28% increase in fourth-quarter net profit to 1.5 billion dirhams ($408.45 million), up from 1.17 billion a year earlier.

The Qatari benchmark index inched up 0.1%, aided by a gain of 0.9% in Qatar National Bank and 1.2% rise in Qatar International Islamic Bank.