Israel-Hamas War Impact on Dubai Tourism: Emaar’s Leisure Venues Hit by Conflict - Bloomberg
Dubai’s booming tourist industry is feeling the impact of the conflict between in Israel and Hamas — and the fallout could be bigger than first thought.
Despite reporting its biggest annual profit on Thursday, Emaar Properties PJSC posted a 33% drop in fourth-quarter revenue from its hospitality division. At 900 million dirhams ($245 million), its hotels, leisure and entertainment venues contributed around 11% to the developer’s top line during the period.
The decline “could be attributed to geopolitical tensions from the Israel-Gaza war affecting the segment’s performance, which had proven to be relatively more significant than what we initially expected,” Sara Boutros, an analyst at CI Capital wrote in a report. The fallout from the conflict is likely to have offset the benefits of the city hosting the COP28 meeting, which saw thousands of visitors pour into the emirate.
The impact is being felt across the Middle East. Driven by a wellspring of anger against the US and Europe for not doing more to get Israel to end its offensive in Gaza, many shoppers in the region are shunning big foreign brands, damping sales of some and creating PR headaches for others.
Fears that the war may escalate are also impacting tourism in countries close to Israel including Jordan, Egypt and Lebanon where thousands of hotel bookings have been cancelled.
Still, Dubai where hotel occupancy usually hovers around 80% during the cool winter months, has largely managed to escape much of the negative impact from the war. Home prices are close to record highs, office space in peak demand and restaurants are often fully-booked. Emaar’s hotels had an average occupancy of 72% in 2023 compared with 69% in 2022, according to CI Capital.
Shares in Emaar closed 3.4% higher on Friday after the developer said full year net income surged 70% to 11.63 billion dirhams. Its sales backlog reached 71.8 billion dirhams.
Friday, 9 February 2024
Man City Backer Li Ruigang Open #AbuDhabi Outpost for PE Firm - Bloomberg
Man City Backer Li Ruigang Open Abu Dhabi Outpost for PE Firm - Bloomberg
Chinese private equity firm CMC Capital Partners has opened an office in Abu Dhabi, adding to the flurry of financial heavyweights who have set up in the emirate over the past year.
The investor, which is led by media mogul Li Ruigang and oversees more than $2.5 billion, registered an entity within the city-state’s international financial center this week, according to records. Managing Partner Lee Wei Choy and Jianan Wu are listed as directors.
Its new branch in Abu Dhabi Global Market coincides with a broader shift in wealth to the capital of the United Arab Emirates, which is home to the world’s richest family and boasts sovereign wealth funds that manage more than $1 trillion.
It wasn’t clear what the new vehicle will be used for. Representatives for CMC didn’t respond immediately to requests for comment.
Hedge fund executives Greg Coffey, Ray Dalio and Alan Howard are among the high net worth individuals who’ve set up entities in the emirate. So too have Czech tycoon Radovan Vitek, Egyptian magnate Nassef Sawiris and the richest man in crypto Changpeng “CZ” Zhao.
This isn’t CMC’s first foray with the UAE. In 2015, the Shanghai-based investor bought a minority stake in City Football Group, the Abu Dhabi-based owner of football club Manchester City. That investment had the PE firm rubbing shoulders with senior Emirati officials, including Sheikh Mansour bin Zayed Al Nahyan and Khaldoon Al Mubarak.
CMC also has tie ups with big film studios as well as companies specializing in artificial intelligence and healthcare.
Chinese private equity firm CMC Capital Partners has opened an office in Abu Dhabi, adding to the flurry of financial heavyweights who have set up in the emirate over the past year.
The investor, which is led by media mogul Li Ruigang and oversees more than $2.5 billion, registered an entity within the city-state’s international financial center this week, according to records. Managing Partner Lee Wei Choy and Jianan Wu are listed as directors.
Its new branch in Abu Dhabi Global Market coincides with a broader shift in wealth to the capital of the United Arab Emirates, which is home to the world’s richest family and boasts sovereign wealth funds that manage more than $1 trillion.
It wasn’t clear what the new vehicle will be used for. Representatives for CMC didn’t respond immediately to requests for comment.
Hedge fund executives Greg Coffey, Ray Dalio and Alan Howard are among the high net worth individuals who’ve set up entities in the emirate. So too have Czech tycoon Radovan Vitek, Egyptian magnate Nassef Sawiris and the richest man in crypto Changpeng “CZ” Zhao.
This isn’t CMC’s first foray with the UAE. In 2015, the Shanghai-based investor bought a minority stake in City Football Group, the Abu Dhabi-based owner of football club Manchester City. That investment had the PE firm rubbing shoulders with senior Emirati officials, including Sheikh Mansour bin Zayed Al Nahyan and Khaldoon Al Mubarak.
CMC also has tie ups with big film studios as well as companies specializing in artificial intelligence and healthcare.
Mideast Stocks: #Dubai gains on upbeat earnings, #AbuDhabi falls
Mideast Stocks: Dubai gains on upbeat earnings, Abu Dhabi falls
Dubai stock exchange closed higher on Friday, as a number of corporate earnings exceeded market expectations boosting the risk appetite for investors, however shares in Abu Dhabi fell.
Dubai's main index gained 0.6%, boosted by a 3.4% surge in Emaar Properties and 3.8% rise in Emaar Development. Both Emaar Properties and Emaar Development recorded their biggest intraday gains since early November last year, according to LSEG data.
Emaar Properties, Dubai's largest real estate developer, on Thursday reported a 70% jump in full-year net profit to AED 11.63 billion dirhams (about $3.2 billion) on surging real estate demand. Emaar's construction unit Emaar Development delivered a 74% growth in full-year net profit over a 22% jump in property sales.
Abu Dhabi's benchmark index edged down 0.2%, pressured by a 1.2% decrease in UAE's third-largest lender Abu Dhabi Commercial Bank and a 0.8% fall in investment firm Multiply Group. However, losses in the index were stemmed by a 3.3% rise in healthcare platform Pure Health Holding ahead of its earnings on Monday.
Despite ending most sessions in the green, the Dubai index finished the week with a 1.1% loss and Abu Dhabi index fell 1.2%, according to LSEG data.
Oil prices - a key catalyst for Gulf's financial market, were slightly lower on Friday but were poised to finish the week more than 5% higher on persistent geopolitical tensions after Israel rejected ceasefire offer from Hamas. Brent crude was down 0.07% to $81.57 a barrel by 1146 GMT.
Dubai stock exchange closed higher on Friday, as a number of corporate earnings exceeded market expectations boosting the risk appetite for investors, however shares in Abu Dhabi fell.
Dubai's main index gained 0.6%, boosted by a 3.4% surge in Emaar Properties and 3.8% rise in Emaar Development. Both Emaar Properties and Emaar Development recorded their biggest intraday gains since early November last year, according to LSEG data.
Emaar Properties, Dubai's largest real estate developer, on Thursday reported a 70% jump in full-year net profit to AED 11.63 billion dirhams (about $3.2 billion) on surging real estate demand. Emaar's construction unit Emaar Development delivered a 74% growth in full-year net profit over a 22% jump in property sales.
Abu Dhabi's benchmark index edged down 0.2%, pressured by a 1.2% decrease in UAE's third-largest lender Abu Dhabi Commercial Bank and a 0.8% fall in investment firm Multiply Group. However, losses in the index were stemmed by a 3.3% rise in healthcare platform Pure Health Holding ahead of its earnings on Monday.
Despite ending most sessions in the green, the Dubai index finished the week with a 1.1% loss and Abu Dhabi index fell 1.2%, according to LSEG data.
Oil prices - a key catalyst for Gulf's financial market, were slightly lower on Friday but were poised to finish the week more than 5% higher on persistent geopolitical tensions after Israel rejected ceasefire offer from Hamas. Brent crude was down 0.07% to $81.57 a barrel by 1146 GMT.
#Oman State Energy Firm OQ Is Considering Two IPOs This Year - Bloomberg
Oman State Energy Firm OQ Is Considering Two IPOs This Year - Bloomberg
Oman’s state energy company OQ SAOC is considering selling shares in two units this year as the country seeks to raise funds and deepen capital markets by listing government-owned businesses across the economy.
OQ is evaluating plans to list its exploration and production business, as well as a methanol and liquefied petroleum gas fuels unit, said Ashraf Al Mamari, the acting chief executive officer for the group. It’s still too early to discuss possible valuations, he said.
Oman, the biggest Persian Gulf oil producer that’s not a member of OPEC, is hoping an influx of capital from state asset sales will boost industries such as energy, transport and tourism. That’s part of a broader trend of divestments in the energy-rich region as larger neighbors Saudi Arabia and the United Arab Emirates also look to diversify their economies to prepare for a post-oil age.
Bloomberg reported earlier this month that OQ had asked banks to pitch for roles on the initial public offerings of the two units. OQ Exploration & Production may raise about $1 billion in an IPO, people familiar with the proposals said at the time.
Oman’s state energy company OQ SAOC is considering selling shares in two units this year as the country seeks to raise funds and deepen capital markets by listing government-owned businesses across the economy.
OQ is evaluating plans to list its exploration and production business, as well as a methanol and liquefied petroleum gas fuels unit, said Ashraf Al Mamari, the acting chief executive officer for the group. It’s still too early to discuss possible valuations, he said.
Oman, the biggest Persian Gulf oil producer that’s not a member of OPEC, is hoping an influx of capital from state asset sales will boost industries such as energy, transport and tourism. That’s part of a broader trend of divestments in the energy-rich region as larger neighbors Saudi Arabia and the United Arab Emirates also look to diversify their economies to prepare for a post-oil age.
Bloomberg reported earlier this month that OQ had asked banks to pitch for roles on the initial public offerings of the two units. OQ Exploration & Production may raise about $1 billion in an IPO, people familiar with the proposals said at the time.
#UAE's Aldar Properties Q4 net profit jumps 39% y/y on higher sales | Reuters
UAE's Aldar Properties Q4 net profit jumps 39% y/y on higher sales | Reuters
Net profit rose to 1.4 billion dirhams (about $381 million), boosted by a 40% jump in revenue to 4.4 billion dirhams. The profit beat an average analysts' estimate of 805 million dirhams, according to LSEG data.
Net profit for 2023 surged 40% to 4.4 billion dirhams, driven by full-year sales of 27.9 billion dirhams and a push on international expansion last year.
The company said its liquidity position was strong, with 2.9 billion dirhams available in free cash and 7.5 billion dirhams in undrawn credit facilities.
Earlier this week, Aldar announced plans to invest 5 billion dirhams to build new office, retail and hospitality facilities in its home market of Abu Dhabi by 2027 to address "strong corporate demand for Grade A office space".
Abu Dhabi-headquartered developer Aldar Properties (ALDAR.AD) reported a 39% rise in fourth-quarter profit on Friday, supported by higher sales.
Net profit rose to 1.4 billion dirhams (about $381 million), boosted by a 40% jump in revenue to 4.4 billion dirhams. The profit beat an average analysts' estimate of 805 million dirhams, according to LSEG data.
Net profit for 2023 surged 40% to 4.4 billion dirhams, driven by full-year sales of 27.9 billion dirhams and a push on international expansion last year.
The company said its liquidity position was strong, with 2.9 billion dirhams available in free cash and 7.5 billion dirhams in undrawn credit facilities.
Earlier this week, Aldar announced plans to invest 5 billion dirhams to build new office, retail and hospitality facilities in its home market of Abu Dhabi by 2027 to address "strong corporate demand for Grade A office space".
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