#AbuDhabi Plans Eurobond Sale to Join Emerging-Market Debt Rush - Bloomberg

Abu Dhabi Plans Eurobond Sale to Join Emerging-Market Debt Rush - Bloomberg

Abu Dhabi is looking to tap international debt markets soon, according to people familiar, selling what would be the emirate’s first bond since 2021 to join a flurry of issuance by emerging economies this year.

While Abu Dhabi doesn’t need fresh funding, it’s looking to boost the liquidity of its existing debt, said one of the people, who asked not to be identified because they’re not authorized to discuss private matters. A fresh benchmark would also assist the bond-sale plans of government-related companies.

It wasn’t immediately clear how much the sheikhdom, which is part of the United Arab Emirates, is planning to raise or exactly when a deal would happen. Abu Dhabi’s issued at least $2 billion every time it’s tapped the dollar bond market in the past decade.

Bloomberg News has reached out to the UAE and Abu Dhabi representatives for comment.

Oil-rich Abu Dhabi’s plans to issue debt follow sales by the likes of Mexico, Brazil and neighboring Saudi Arabia earlier in 2024 to take advantage of lower yields on US Treasuries, which raised the attractiveness of higher-risk bonds.

Emerging-market governments have sold about $58 billion of dollar debt so far in 2024, the highest amount for this time of the year in at least two decades. With the expectations of lower interest rates running hot in the market, now may be the best time for new deals in case the US Federal Reserve doesn’t ease policy as soon as expected.

Most Gulf markets gain as US inflation data eyed | Reuters

Most Gulf markets gain as US inflation data eyed | Reuters

Most stock markets in the Gulf ended higher on Tuesday as investors await key U.S. economic data due later in the week.

Inflation data from several major economies and manufacturing figures out of China are in focus this week. Most closely monitored will be Thursday's release of the U.S. personal consumption expenditures price index, which the Federal Reserve uses to track its 2% inflation target.

Markets have already pushed out the potential timing of first easing of rates from May to June, with the current probability priced at around 70%. Futures imply a little more than three quarter-point cuts this year, down from five at the beginning of the month. 

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

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, led by a 0.5% rise in Al Rajhi Bank (1120.SE), opens new tab and a 2% increase in Saudi Arabian Mining Co (1211.SE), opens new tab.

Elsewhere, Avalon Pharma (4016.SE), opens new tab surged 30% in market debut.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%.

Dubai's main share index (.DFMGI), opens new tab advanced 1.2%, with top lender Emirates NBD (ENBD.DU), opens new tab jumping 4%.

Separately, the Dubai government is selling a 24.99% stake in Parkin, which oversees public parking operations in the emirate, through an initial public offering in the emirate's first privatisation deal this year, Parkin said in a statement on Tuesday.

The Qatari benchmark (.QSI), opens new tab finished 0.5% higher, as most of its constituents were in positive territory including Qatar Islamic Bank (QISB.QA), opens new tab, which was up 1.1%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 0.9%.

Egypt's international bonds soared and its currency forwards strengthened on Monday, extending a sharp rally after it signed a $24 billion investment deal with the United Arab Emirates centred on a real estate development on the Mediterranean coast.

Ireland seeks out Middle East sovereign wealth funds | Reuters

Ireland seeks out Middle East sovereign wealth funds | Reuters

Ireland hopes to tap sovereign wealth funds in the Middle East to invest in infrastructure projects as the government seeks to keep pace with its fast growing population.

Minister of Enterprise, Trade and Employment Simon Coveney is meeting with potential investors in the Gulf this week during visits to the United Arab Emirates, Saudi Arabia and Kuwait.

"We are always looking for partners to be part of strategic investments in Ireland," he told Reuters in an interview at a World Trade Organization meeting of trade ministers in Abu Dhabi.

The minister's comments highlight the gravitational pull of the Gulf states whose government-controlled funds have become go-to-investors in everything from infrastructure to technology.

"There are exciting investment opportunities in Ireland that I think can provide a consistent return in the medium term," Coveney said, describing the economy as unprecedentedly resilient.

"Ireland has very strong economic growth at the moment. We're running trade surpluses, consistently year after year, which is historically unusual for Ireland," he said on Monday.

#Saudi's SABIC posts 11% drop in Q4 revenue, swings to FY net loss | Reuters

Saudi's SABIC posts 11% drop in Q4 revenue, swings to FY net loss | Reuters

Saudi Basic Industries Corp (SABIC) (2010.SE), opens new tab, one of the world's biggest petrochemical companies, posted an 11% drop in revenue in the fourth quarter, a bourse filing showed on Tuesday.

The company said that revenue in the October-to-December period fell to 35.03 billion riyals ($9.34 billion), missing a 35.9 billion riyals Refinitiv median estimate.
Sales for the full year fell by 23% to 141.54 billion riyals due to a drop in both average selling prices and quantities sold, hit by slow global demand for petrochemicals as well as higher global supply capacities, it said.

SABIC swung to a net loss of 2.77 billion riyals in 2023, citing net losses due to discontinued operations "driven mainly from the fair valuation of the Hadeed business".

Chemical makers had flagged a potential blow in the second half of the year from a slower-than-expected recovery in China following its post-pandemic reopening and lower demand in Europe.

#AbuDhabi’s Multiply Buys BackLite Media in Preparation for Unit IPO - Bloomberg

Abu Dhabi’s Multiply Buys BackLite Media in Preparation for Unit IPO - Bloomberg

Multiply Group has acquired an advertising firm based in the United Arab Emirates as it prepares for an initial public offering for its media business, according to its chief executive officer.

The firm bought 100% of BackLite Media, according to a statement on Monday. It didn’t disclose the financial terms of the deal but Samia Bouazza described it in an interview as one of Abu Dhabi-based Multiply’s “most strategic” acquisitions.

“The company that we just acquired is actually the last step toward the preparation for the listing process,” said Bouazza, who is also managing director at Multiply. She didn’t comment on details of the size or timing of an IPO, but said the Multiply Media Group’s listing would take place when market conditions are good and when regulatory approvals are in place.

The company plans to use IPO proceeds to acquire global targets, the CEO said. Multiply is working on “one or two” deals, she said.

Multiply is a holding company active in sectors ranging from energy and utilities to wellness and beauty. Its investments vary from Getty Images to Rihanna’s lingerie company. It also owns a stake in Turkish clean energy company Kalyon Enerji.

The CEO said Multiply would look into an opportunity in Turkey if it’s complementary to their current investment in the country. She also sees beauty products as a “very interesting place” in the US. Her firm also studied a couple of assets in India, she said.

The company isn’t followed by any analyst tracked by Bloomberg, but it is part of the MSCI Emerging Markets Index. Foreigners own 31% of the firm, according to data from the Abu Dhabi Stock Exchange.

Parkin IPO: #Dubai Government to Offer 25% Stake in Public Parking IPO - Bloomberg

Parkin IPO: Dubai Government to Offer 25% Stake in Public Parking IPO - Bloomberg

The Dubai government plans to sell a 25% stake in the city’s public parking business in an initial public offering, as it seeks to capitalize on the emirate’s expanding population.

The Dubai Investment Fund will sell 749.7 million shares in Parkin Company PJSC, according to a statement on Tuesday. The subscription period will open on March 5 and is expected to close on March 12. The bookbuilding period for institutional investors will close on March 13.

Shares are expected to start trading on March 21, according to terms of the deal obtained by Bloomberg News.

Parkin’s IPO comes about two months after Dubai raised $315 million from the city’s taxi business. The share sales are part of a plan unveiled at the end of 2021 to list 10 state-owned companies to boost trading volumes and match similar drives in Abu Dhabi and Riyadh.

Mideast stocks-Major Gulf markets mixed with inflation in focus

Mideast stocks-Major Gulf markets mixed with inflation in focus

Major stock markets in the Gulf showed a mixed trend in early trading on Tuesday as investors eyed a data-packed week, including key inflation figures due from the U.S.

Inflation data from several major economies and manufacturing figures out of China are in focus this week. Most closely monitored will be Thursday's release of the U.S. personal consumption expenditures price index, which the Federal Reserve uses to track its 2% inflation target.

Markets have already pushed out the potential timing of first easing, from May to June, with the current probability priced at around 70%. Futures imply a little more than three quarter-point cuts this year, down from five at the beginning of the month.

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

Saudi Arabia's benchmark index gained 0.3%, led by a 1.8% rise in ACWA Power Co and a 0.2% increase in Al Rajhi Bank.

Meanwhile, shares of Avalon Pharma jumped 30% on the market debut.

In Abu Dhabi, the index dropped 0.4%.

Dubai's main share index gained 0.5%, with Emirates NBD rising 1.1%.

Meanwhile, U.S. President Joe Biden on Tuesday said Israel has agreed to halt its military activities in Gaza for the Muslim holy month of Ramadan, as Hamas studied a draft proposal for a truce deal that includes a pause in fighting and a prisoner-hostage exchange.

The Qatari benchmark lost 0.2%, hit by a 4.2% fall in Qatar Gas Transport.