Saudi PIF’s Jada Fund Makes Second Foray Into Private Credit - Bloomberg
A unit of Saudi Arabia’s sovereign investor has made its second foray into private credit, with a $52 million investment into a fund raised by San Francisco-based Partners for Growth that’s provided debt financing for firms including one of the Mideast’s first fintech unicorns.
Partners for Growth closed the $325 million fund in December. It’s previously provided debt financing to buy-now pay-later firm Tabby as well as to Trukker, a startup that provides an Uber-like service for trucks. In all, the firm manages close to $1 billion in assets.
“Our strategy reinforces our commitment to providing additional funding solutions and attracting foreign direct investment to promote economic growth and diversification,” Bandr Alhomaly, Chief Executive Officer of Jada Fund of Funds, said in a statement.
The PIF has been plowing money into tech firms and startups as it seeks to build a VC industry and encourage young entrepreneurs to set up their own businesses to diversify the economy and create jobs. Startups in the kingdom raised $1.4 billion in 2023, putting it ahead of the United Arab Emirates for the first time.
The PIF has created a $1 billion fund of funds for investments including into venture capital and also puts money to work directly through its subsidiary, Sanabil.
Monday, 11 March 2024
#AbuDhabi Targets $100 Billion AUM for AI Investment Firm MGX - Bloomberg
Abu Dhabi Targets $100 Billion AUM for AI Investment Firm MGX - Bloomberg
Abu Dhabi is setting up a technology investment firm targeting deals in artificial intelligence and semiconductors that could surpass $100 billion in assets under management in a few years, according to people familiar with the matter.
The emirate on Monday unveiled the company called MGX, led by sovereign wealth fund Mubadala Investment Co. and AI firm G42 as foundational partners. Ahmed Yahia Al Idrissi, who’s chief executive officer of Mubadala’s direct investments platform, will serve as the new entity’s CEO, according to a statement.
Mubadala and G42’s portfolios will for now remain as they are, with MGX pursuing its own deals initially funded by new capital from Abu Dhabi’s government, said the people, who asked not to be identified as the matter is private.
The new entity will pursue the best partners across its three main verticals — AI infrastructure, semiconductors as well as AI core technologies and applications, the people said.
MGX will be chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, with Mubadala CEO Khaldoon Al Mubarak acting as vice chairman. Additional board members include UAE Central Bank Vice Chairman Jassem Al Zaabi, G42 CEO Peng Xiao and Al Idrissi.
Abu Dhabi is setting up a technology investment firm targeting deals in artificial intelligence and semiconductors that could surpass $100 billion in assets under management in a few years, according to people familiar with the matter.
The emirate on Monday unveiled the company called MGX, led by sovereign wealth fund Mubadala Investment Co. and AI firm G42 as foundational partners. Ahmed Yahia Al Idrissi, who’s chief executive officer of Mubadala’s direct investments platform, will serve as the new entity’s CEO, according to a statement.
Mubadala and G42’s portfolios will for now remain as they are, with MGX pursuing its own deals initially funded by new capital from Abu Dhabi’s government, said the people, who asked not to be identified as the matter is private.
The new entity will pursue the best partners across its three main verticals — AI infrastructure, semiconductors as well as AI core technologies and applications, the people said.
MGX will be chaired by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, with Mubadala CEO Khaldoon Al Mubarak acting as vice chairman. Additional board members include UAE Central Bank Vice Chairman Jassem Al Zaabi, G42 CEO Peng Xiao and Al Idrissi.
#Saudi Wealth Fund Eyes $20 Billion Windfall from Aramco Dividend - Bloomberg
Saudi Wealth Fund Eyes $20 Billion Windfall from Aramco Dividend - Bloomberg
Saudi Arabia’s sovereign wealth fund is set to earn about $5 billion in dividend payments every quarter from its stake in Aramco after the government handed it more shares in the state-controlled oil company, which then said it would boost shareholder payouts.
The hike in Aramco’s dividend, which is set to total at least $124 billion this year, comes days after Crown Prince Mohammed bin Salman ordered the transfer of an 8% stake in Aramco to the Public Investment Fund.
The PIF now holds a 16% stake in Saudi Aramco, worth about $333 billion, which translates to an annual payout of at least $20 billion. That’s a handy boon for the fund as it prepares to ramp up spending over the next few years on projects like Neom — a more than $500 billion new city under construction on the kingdom’s west coast.
The PIF is committed to spending $40 billion a year domestically to help diversify the country’s oil dependent economy, though its ability to fund such huge projects has increasingly been questioned by analysts at a time when the government is forecasting budget deficits until at least 2026.
Its governor, Yasir Al Rumayyan, has said annual deployment is set to rise to $70 billion from 2025. The fund has already raised $7 billion from two bond sales so far this year.
Including its stake in Aramco, the PIF controls assets of about $900 billion. According to a recent prospectus, it had $15 billion in cash and equivalents as of September — a relatively low number for an entity so large.
Saudi Arabia’s sovereign wealth fund is set to earn about $5 billion in dividend payments every quarter from its stake in Aramco after the government handed it more shares in the state-controlled oil company, which then said it would boost shareholder payouts.
The hike in Aramco’s dividend, which is set to total at least $124 billion this year, comes days after Crown Prince Mohammed bin Salman ordered the transfer of an 8% stake in Aramco to the Public Investment Fund.
The PIF now holds a 16% stake in Saudi Aramco, worth about $333 billion, which translates to an annual payout of at least $20 billion. That’s a handy boon for the fund as it prepares to ramp up spending over the next few years on projects like Neom — a more than $500 billion new city under construction on the kingdom’s west coast.
The PIF is committed to spending $40 billion a year domestically to help diversify the country’s oil dependent economy, though its ability to fund such huge projects has increasingly been questioned by analysts at a time when the government is forecasting budget deficits until at least 2026.
Its governor, Yasir Al Rumayyan, has said annual deployment is set to rise to $70 billion from 2025. The fund has already raised $7 billion from two bond sales so far this year.
Including its stake in Aramco, the PIF controls assets of about $900 billion. According to a recent prospectus, it had $15 billion in cash and equivalents as of September — a relatively low number for an entity so large.
Oil prices steady as Middle Eastern supply concerns ease | Reuters
Oil prices steady as Middle Eastern supply concerns ease | Reuters
Oil prices were little changed on Monday as concern eased that fighting in the Middle East would disrupt supply and Chinese data suggested weak demand, while an increase in U.S. refining limited any selling.
Brent futures for May delivery settled at $82.21 a barrel, gaining 13 cents. The U.S. crude April contract slipped 8 cents to end at $77.93 a barrel.
"I guess it's the barrel half empty or the barrel half full, depending on how you look at it," said Phil Flynn, pointing to conflicting forces keeping oil prices from moving far in either direction.
Oil prices were little changed on Monday as concern eased that fighting in the Middle East would disrupt supply and Chinese data suggested weak demand, while an increase in U.S. refining limited any selling.
Brent futures for May delivery settled at $82.21 a barrel, gaining 13 cents. The U.S. crude April contract slipped 8 cents to end at $77.93 a barrel.
"I guess it's the barrel half empty or the barrel half full, depending on how you look at it," said Phil Flynn, pointing to conflicting forces keeping oil prices from moving far in either direction.
Major Gulf markets end lower; Egypt gains | Reuters
Major Gulf markets end lower; Egypt gains | Reuters
Major stock markets in the Gulf ended lower on Monday as investors waited for key U.S. inflation data this week, which could provide more clues on the Federal Reserve's monetary policy path.
Markets will monitor U.S. consumer inflation due on Tuesday ahead of the Federal Reserve's policy decision next week.
Most Gulf currencies are pegged to the dollar, and Saudi Arabia, the United Arab Emirates, and Qatar usually mimic any monetary policy change in the United States.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5% after four straight sessions of gains, with most sectors in the red.
Elm Company (7203.SE), opens new tab slumped 7.8%, and Saudi Telecom(7010.SE), opens new tab, the kingdom's largest mobile operator, declined 1.9%.
Among the losers, the oil major Saudi Aramco (2222.SE), opens new tab and Saudi National Bank(1180.SE), opens new tab, the country's largest lender, slipped 0.9% and 0.8%, respectively.
The Qatari benchmark index (.QSI), opens new tab fell 0.4%, dragged down by losses in most sectors with Qatar Electricity and Water (QEWC.QA), opens new tab dropping 6.3% and Gulf International Services (GISS.QA), opens new tab sliding 3.7%.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, weighed down by losses in finance and utilities sectors with the emirate's largest lender, Emirates NBD (ENBD.DU), opens new tab sliding 0.6%, and Dubai Islamic Bank(DISB.DU), opens new tab shedding 0.5%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab dipped slightly to trade flat, with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab and Multiply Group (MULTIPLY.AD), opens new tab falling 0.8% and 0.5%, respectively, while blue-chip developer Aldar Properties (ALDAR.AD), opens new tab gaining 0.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up for a third consecutive session and ended 1.4% higher, with Commercial International Bank (COMI.CA), opens new tab surging 8.9% and E-Finance(EFIH.CA), opens new tab shooting up 14%.
The International Monetary Fund (IMF) said last week it would increase its current loan programme with Egypt by $5 billion, as the central bank let the pound plummet and said it would allow the currency to trade freely.
Major stock markets in the Gulf ended lower on Monday as investors waited for key U.S. inflation data this week, which could provide more clues on the Federal Reserve's monetary policy path.
Markets will monitor U.S. consumer inflation due on Tuesday ahead of the Federal Reserve's policy decision next week.
Most Gulf currencies are pegged to the dollar, and Saudi Arabia, the United Arab Emirates, and Qatar usually mimic any monetary policy change in the United States.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5% after four straight sessions of gains, with most sectors in the red.
Elm Company (7203.SE), opens new tab slumped 7.8%, and Saudi Telecom(7010.SE), opens new tab, the kingdom's largest mobile operator, declined 1.9%.
Among the losers, the oil major Saudi Aramco (2222.SE), opens new tab and Saudi National Bank(1180.SE), opens new tab, the country's largest lender, slipped 0.9% and 0.8%, respectively.
The Qatari benchmark index (.QSI), opens new tab fell 0.4%, dragged down by losses in most sectors with Qatar Electricity and Water (QEWC.QA), opens new tab dropping 6.3% and Gulf International Services (GISS.QA), opens new tab sliding 3.7%.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, weighed down by losses in finance and utilities sectors with the emirate's largest lender, Emirates NBD (ENBD.DU), opens new tab sliding 0.6%, and Dubai Islamic Bank(DISB.DU), opens new tab shedding 0.5%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab dipped slightly to trade flat, with conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab and Multiply Group (MULTIPLY.AD), opens new tab falling 0.8% and 0.5%, respectively, while blue-chip developer Aldar Properties (ALDAR.AD), opens new tab gaining 0.7%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up for a third consecutive session and ended 1.4% higher, with Commercial International Bank (COMI.CA), opens new tab surging 8.9% and E-Finance(EFIH.CA), opens new tab shooting up 14%.
The International Monetary Fund (IMF) said last week it would increase its current loan programme with Egypt by $5 billion, as the central bank let the pound plummet and said it would allow the currency to trade freely.