Amazon Leads Firms Investing $10 Billion In Saudi Data Centers - Bloomberg
Saudi Arabia said firms including Amazon Web Services will invest over $10 billion in building data centers in the country as the desert kingdom tries to modernize and diversify its oil-dependent economy.
The deals were announced at the annual tech event LEAP in the capital city of Riyadh and will support the development of tech startups, the Saudi Press Agency reported. AWS, as Amazon’s cloud business is known, said its plans include spending $5.3 billion to create a new infrastructure region that’ll open in 2026 and help train local developers.
Amazon was among global technology giants including Alphabet Inc.’s Google and Microsoft Corp. that established regional headquarters in Saudi Arabia last year in response to a deadline for foreign firms to move operations to the country or risk losing government contracts. Its investment is a boon for the kingdom’s efforts to attract foreign investment and its plan to become a technology hub for the Middle East.
DataVolt, a Saudi-based data center company, will also invest $5 billion developing data centers with a capacity of more 300 megawatts. IBM Corp. plans to allocate $250 million to a software development center, whille software firm ServiceNow is dedicating $500 million on localizing services in Saudi.
Dell Technologies Inc. also intends to open a manufacturing a fulfillment center in the country, SPA said.
Monday, 4 March 2024
Most Gulf markets end lower; Egypt gains | Reuters
Most Gulf markets end lower; Egypt gains | Reuters
Most stock markets in the Gulf ended lower on Monday as investors waited for U.S. Fed Chair Jerome Powell's congressional testimony for further clues on the central bank's monetary policy.
Powell is set to testify before lawmakers on Wednesday and Thursday, with analysts assuming the Fed chief to stay in wait-and-watch mode on policy after a recent escalation in inflation.
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), opens new tab was down for a second straight session ending 1% lower, the sharpest drop in over a month with most sectors in the red.
Al Rajhi Bank(1120.SE), opens new tab, the world's largest Islamic lender slipped 1.5% and Saudi National Bank(1180.SE), opens new tab, kingdom's biggest lender declined 3.2%.
Dubai's benchmark index (.DFMGI), opens new tab dropped 0.7%, with Commercial Bank of Dubai (CBD.DU), opens new tab sinking 9.9% and Mashreqbank (MASB.DU), opens new tab declining 3.4%.
However, the tolls operator Salik (SALIK.DU), opens new tab rose 2% after it declared half-year cash dividend of 7.3338 fils per share and said it expected FY 2024 EBITDA margin in the range of 65%-66%.
The Qatari benchmark index (.QSI), opens new tab dipped slightly to trade flat with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender sliding 1.4% while Industries Qatar (IQCD.QA), opens new tab gained 0.2%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab was up for a second straight session, ending 0.1% higher, supported by a 1.1% gain in National Marine Dredging (NMDC.AD), opens new tab and 2.4% rise in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab climbed 5.1%, the highest rise in nearly a year with most stocks in the positive territory.
Commercial International Bank (COMI.CA), opens new tab rose 4.6% and Talaat Mostafa Group (TMGH.CA), opens new tab advanced 15.4%.
The real estate developer TMGH said on Sunday its unit Icon completed procedures to acquire 51% of Legacy Hospitality.
Powell is set to testify before lawmakers on Wednesday and Thursday, with analysts assuming the Fed chief to stay in wait-and-watch mode on policy after a recent escalation in inflation.
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), opens new tab was down for a second straight session ending 1% lower, the sharpest drop in over a month with most sectors in the red.
Al Rajhi Bank(1120.SE), opens new tab, the world's largest Islamic lender slipped 1.5% and Saudi National Bank(1180.SE), opens new tab, kingdom's biggest lender declined 3.2%.
Dubai's benchmark index (.DFMGI), opens new tab dropped 0.7%, with Commercial Bank of Dubai (CBD.DU), opens new tab sinking 9.9% and Mashreqbank (MASB.DU), opens new tab declining 3.4%.
However, the tolls operator Salik (SALIK.DU), opens new tab rose 2% after it declared half-year cash dividend of 7.3338 fils per share and said it expected FY 2024 EBITDA margin in the range of 65%-66%.
The Qatari benchmark index (.QSI), opens new tab dipped slightly to trade flat with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender sliding 1.4% while Industries Qatar (IQCD.QA), opens new tab gained 0.2%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab was up for a second straight session, ending 0.1% higher, supported by a 1.1% gain in National Marine Dredging (NMDC.AD), opens new tab and 2.4% rise in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab climbed 5.1%, the highest rise in nearly a year with most stocks in the positive territory.
Commercial International Bank (COMI.CA), opens new tab rose 4.6% and Talaat Mostafa Group (TMGH.CA), opens new tab advanced 15.4%.
The real estate developer TMGH said on Sunday its unit Icon completed procedures to acquire 51% of Legacy Hospitality.
EFG Hermes sees Gulf IPO frenzy from private sector in 2024 | Reuters
EFG Hermes sees Gulf IPO frenzy from private sector in 2024 | Reuters
Emerging market-focused investment bank EFG Hermes (HRHO.CA), opens new tab is "very bullish" on Gulf markets this year, expecting more, smaller initial public offerings (IPOs) from the region from a year earlier, Mostafa Gad said on Monday.
Smaller deals are likely to become the norm in 2024 as the private sector becomes the main issuer seeking capital, a boon for mid-market focused investment banks like EFG Hermes and a change from large bulge bracket deals from government privatisations, investment banking head Gad said.
"The inflow [of issuers] is coming more from the private sector. For banks that require a certain amount of a certain magnitude of offerings for them to justify their presence, maybe they can struggle a bit", Gad said in an interview with Reuters.
Gad said his bank tends to focus on deals between $300 million and $700 million, and added he would like to see the team, which currently has 50 bankers covering the region, expand and is looking to hire junior analysts.
Emerging market-focused investment bank EFG Hermes (HRHO.CA), opens new tab is "very bullish" on Gulf markets this year, expecting more, smaller initial public offerings (IPOs) from the region from a year earlier, Mostafa Gad said on Monday.
Smaller deals are likely to become the norm in 2024 as the private sector becomes the main issuer seeking capital, a boon for mid-market focused investment banks like EFG Hermes and a change from large bulge bracket deals from government privatisations, investment banking head Gad said.
"The inflow [of issuers] is coming more from the private sector. For banks that require a certain amount of a certain magnitude of offerings for them to justify their presence, maybe they can struggle a bit", Gad said in an interview with Reuters.
Gad said his bank tends to focus on deals between $300 million and $700 million, and added he would like to see the team, which currently has 50 bankers covering the region, expand and is looking to hire junior analysts.
Energy Transition: #Qatar’s Gas Push Has a Hidden Motive — Murdering Coal - Bloomberg
Energy Transition: Qatar’s Gas Push Has a Hidden Motive — Murdering Coal - Bloomberg
The energy transition will eventually be a zero-sum game — for one energy source to win, another must lose. The obvious battle is between renewables and fossil fuels. But even within the fossil-fuel camp, natural gas and coal are fighting for supremacy. And one nation is seeking to tip the scales in favor of the former.
Supporters of gas brand it a “bridge fuel” – a stepping stone to allow the world to decarbonize electricity generation by replacing coal-fired power stations with gas-fired plants.
Problematic methane leaks aside, gas faces two obstacles to dethrone king coal: prices and ubiquity. Coal is dirt cheap and plentiful at home in many developing countries; gas, meanwhile, must be imported in liquid form and, in the past two years, became prohibitively expensive following Russia’s invasion of Ukraine.
Unsurprisingly, Asian countries such as Bangladesh, Pakistan and Thailand that once viewed LNG as a not-so-difficult and not-too-expensive way to decarbonize are having second thoughts. China and India, which together account for about one-third of the world’s population, have leaned on coal more heavily in recent years, emphasizing its energy security attributes. That’s propped up coal consumption, which last year reached an all-time high.
The energy transition will eventually be a zero-sum game — for one energy source to win, another must lose. The obvious battle is between renewables and fossil fuels. But even within the fossil-fuel camp, natural gas and coal are fighting for supremacy. And one nation is seeking to tip the scales in favor of the former.
Supporters of gas brand it a “bridge fuel” – a stepping stone to allow the world to decarbonize electricity generation by replacing coal-fired power stations with gas-fired plants.
Problematic methane leaks aside, gas faces two obstacles to dethrone king coal: prices and ubiquity. Coal is dirt cheap and plentiful at home in many developing countries; gas, meanwhile, must be imported in liquid form and, in the past two years, became prohibitively expensive following Russia’s invasion of Ukraine.
Unsurprisingly, Asian countries such as Bangladesh, Pakistan and Thailand that once viewed LNG as a not-so-difficult and not-too-expensive way to decarbonize are having second thoughts. China and India, which together account for about one-third of the world’s population, have leaned on coal more heavily in recent years, emphasizing its energy security attributes. That’s propped up coal consumption, which last year reached an all-time high.
Seera Slumps After #Saudi PIF Scraps Plans to Buy Stake in Unit - Bloomberg
Seera Slumps After Saudi PIF Scraps Plans to Buy Stake in Unit - Bloomberg
Shares of the Riyadh-listed Seera Group Holding dropped nearly 10% after the firm said it failed to reach a deal with Saudi Arabia’s wealth fund to acquire a stake in one of its units.
The Public Investment Fund and Seera terminated an initial pact that would have seen the fund acquire a 30% in Almosafer Travel & Tourism Co. “due to the inability to reach an agreement between the parties,” according to a stock exchange filing.
Seera Group slumped as much as 9.9% on Monday, the most in nearly four years, after gaining almost 13% in February.
The PIF signed a pact to acquire a 30% stake in Almosafer in 2022. The investment of 1.55 billion riyals ($412 million) included a 386 million riyal earn-out amount.
Seera said Almosafer has achieved a net booking value of 5.7 billion riyals and is set to exceed 10 billion riyals by 2025. While it didn’t mention the travel agency, Seera said it plans to list subsidiaries at the appropriate time.
The wealth fund, a key part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy from oil, aims to invest hundreds of billions of dollars in the coming years on everything from electric vehicles to semiconductors, tourism resorts and sports.
Shares of the Riyadh-listed Seera Group Holding dropped nearly 10% after the firm said it failed to reach a deal with Saudi Arabia’s wealth fund to acquire a stake in one of its units.
The Public Investment Fund and Seera terminated an initial pact that would have seen the fund acquire a 30% in Almosafer Travel & Tourism Co. “due to the inability to reach an agreement between the parties,” according to a stock exchange filing.
Seera Group slumped as much as 9.9% on Monday, the most in nearly four years, after gaining almost 13% in February.
The PIF signed a pact to acquire a 30% stake in Almosafer in 2022. The investment of 1.55 billion riyals ($412 million) included a 386 million riyal earn-out amount.
Seera said Almosafer has achieved a net booking value of 5.7 billion riyals and is set to exceed 10 billion riyals by 2025. While it didn’t mention the travel agency, Seera said it plans to list subsidiaries at the appropriate time.
The wealth fund, a key part of Crown Prince Mohammed bin Salman’s efforts to diversify the Saudi economy from oil, aims to invest hundreds of billions of dollars in the coming years on everything from electric vehicles to semiconductors, tourism resorts and sports.
Mideast Stocks: Most Gulf markets rise in early trade
Mideast Stocks: Most Gulf markets rise in early trade
Most stock markets in the Gulf were up in early trade on Monday amid rising oil prices after OPEC+ members agreed to extend oil output cuts of 2.2 million barrels per day into the second quarter.
Oil price - a catalyst for the Gulf's financial markets- gained 0.1% to $83.55 a barrel by 0731 GMT.
The output cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to cushion the market amid global economic concerns and rising output outside the group.
The Qatari benchmark index rose 0.3%, lifted by gains in almost all sectors with Mesaieed Petrochemical climbing 1.8% and Gulf Warehousing adding 4.3%.
Saudi Arabia's benchmark stock index advanced 0.2%, helped by gains in finance, healthcare and consumer staples sectors.
Dr Sulaiman Al Habib Medical Services rose 1.2% and Savola Group climbed 3.3%.
Among the gainers, Al Rajhi Bank, the world's largest Islamic lender, added 0.3%.
In Abu Dhabi, the benchmark stock index was up 0.1%, supported by a 2.1% increase in Pure Health and 1.6% gain in ADNOC Drilling.
Dubai's benchmark stock index eased 0.1%, with Mashreqbank dropping 2.9% and Commercial Bank of Dubai falling 2%.
Oil price - a catalyst for the Gulf's financial markets- gained 0.1% to $83.55 a barrel by 0731 GMT.
The output cuts by the Organization of the Petroleum Exporting Countries and its allies (OPEC+) are expected to cushion the market amid global economic concerns and rising output outside the group.
The Qatari benchmark index rose 0.3%, lifted by gains in almost all sectors with Mesaieed Petrochemical climbing 1.8% and Gulf Warehousing adding 4.3%.
Saudi Arabia's benchmark stock index advanced 0.2%, helped by gains in finance, healthcare and consumer staples sectors.
Dr Sulaiman Al Habib Medical Services rose 1.2% and Savola Group climbed 3.3%.
Among the gainers, Al Rajhi Bank, the world's largest Islamic lender, added 0.3%.
In Abu Dhabi, the benchmark stock index was up 0.1%, supported by a 2.1% increase in Pure Health and 1.6% gain in ADNOC Drilling.
Dubai's benchmark stock index eased 0.1%, with Mashreqbank dropping 2.9% and Commercial Bank of Dubai falling 2%.