Dubai’s Majid Al Futtaim Retail Business Hurt By Gaza War - Bloomberg
One of Dubai’s largest family conglomerates said its retail division, which operates the Carrefour brand in the Middle East, has taken a hit amid currency crises in countries like Egypt and a boycott movement linked to the Israel-Hamas war.
Majid Al Futtaim Holding LLC said its full-year revenue from its retail sector dropped to 24.7 billion dirhams ($6.7 billion), a 4% decline year-on-year on a restated basis and its earnings before interest and tax declined by 15% to 1.1 billion dirhams, according to its 2023 fiscal year earnings report.
The company cited “currency devaluations in Egypt, Pakistan, Kenya, and Lebanon, and a shift in consumer sentiment related to geopolitical tensions in the region.”
Western brands like French supermarket chain Carrefour, which last year entered Israel via a local partnership, have appeared on the list of the Palestinian-led Boycott, Divestment, Sanctions movement, which calls for broad economic and cultural boycotts of Israel and Israeli settlements in the West Bank.
Majid Al Futtaim says it owns the rights to operate the Carrefour brand in several countries across the Middle East, Africa, and Asia. It also invests in properties and entertainment including shopping malls, according to its website.
Thursday 14 March 2024
#SaudiArabia’s PIF To Ramp Up Bond Sales, IPOs to Pay for MBS’s Projects - Bloomberg
Saudi Arabia’s PIF To Ramp Up Bond Sales, IPOs to Pay for MBS’s Projects - Bloomberg
Saudi Arabia’s sovereign wealth fund is considering plans to accelerate debt sales or obtain bank loans as it hunts for new sources of cash to help pay for Crown Prince Mohammed bin Salman’s trillion-dollar economic transformation project.
The Public Investment Fund could also line up equity offerings in its portfolio companies as part of the push, according to people familiar with the matter. The moves come as the fund’s cash reserves have dropped to $15 billion as of September — the lowest level since 2020, the earliest year for which data is available.
The PIF is the main entity tasked with driving Saudi Arabia’s Vision 2030 program, an initiative that aims to diversify the oil-dependent economy. With the Saudi government predicting a deficit every year until 2026, there’s a sense of urgency at the fund to line up funding for its billions of dollars of spending commitments, the people said, asking not to be identified discussing non-public information.
It’s the latest sign that there are rising pressures forming in the kingdom’s effort to pull off the ambitious initiative that’s already been hampered by higher interest rates and a lack of significant foreign direct investment. Late last year, the government acknowledged for the first time that some projects could be delayed past 2030.
Representatives for the PIF declined to comment.
Saudi Arabia’s sovereign wealth fund is considering plans to accelerate debt sales or obtain bank loans as it hunts for new sources of cash to help pay for Crown Prince Mohammed bin Salman’s trillion-dollar economic transformation project.
The Public Investment Fund could also line up equity offerings in its portfolio companies as part of the push, according to people familiar with the matter. The moves come as the fund’s cash reserves have dropped to $15 billion as of September — the lowest level since 2020, the earliest year for which data is available.
The PIF is the main entity tasked with driving Saudi Arabia’s Vision 2030 program, an initiative that aims to diversify the oil-dependent economy. With the Saudi government predicting a deficit every year until 2026, there’s a sense of urgency at the fund to line up funding for its billions of dollars of spending commitments, the people said, asking not to be identified discussing non-public information.
It’s the latest sign that there are rising pressures forming in the kingdom’s effort to pull off the ambitious initiative that’s already been hampered by higher interest rates and a lack of significant foreign direct investment. Late last year, the government acknowledged for the first time that some projects could be delayed past 2030.
Representatives for the PIF declined to comment.
Gulf markets rise on higher oil prices; US data in focus | Reuters
Gulf markets rise on higher oil prices; US data in focus | Reuters
Most stock markets in the Gulf rose on Thursday in line with global peers and firmer oil prices, while investors awaited a raft of economic data, ahead of the Federal Reserve's meeting next week.
Oil price - a catalyst for the Gulf's financial markets- gained, supported by strong U.S. demand outlook, and heightened geopolitical risk, with Brent rising 0.9% to $84.76 a barrel by 1418 GMT.
Dubai's Parkin, which oversees public parking operations in the Emirates, has raised 1.57 billion dirhams ($427.5 million) after pricing its IPO at the top of its range at 2.1 dirhams per share. Parkin is expected to start trading on March 21.
The Qatari benchmark index (.QSI), opens new tab was up 0.6%, lifted by gains in almost all sectors with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, rising 0.7% and Qatar Gas Transport (QGTS.QA), opens new tab adding 3%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab rose 0.1%, helped by a 1.4% increase in Aldar Properties (ALDAR.AD), opens new tab and a 4.6% surge in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab was up marginally with ACWA Power (2082.SE), opens new tab rising 5.9% and Saudi Arabian Mining (1211.SE), opens new tab gaining 2.5%.
However, oil major Saudi Aramco (2222.SE), opens new tab and the kingdom's largest lender Saudi National Bank (1180.SE), opens new tab slipped 2.5% and 2.0% respectively.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 1%, ending its two sessions of losses with almost all sectors in the green.
Commercial International Bank (COMI.CA), opens new tab gained 2.7% and El Sewedy Electric (SWDY.CA), opens new tab advanced 2.7%.
Most stock markets in the Gulf rose on Thursday in line with global peers and firmer oil prices, while investors awaited a raft of economic data, ahead of the Federal Reserve's meeting next week.
Oil price - a catalyst for the Gulf's financial markets- gained, supported by strong U.S. demand outlook, and heightened geopolitical risk, with Brent rising 0.9% to $84.76 a barrel by 1418 GMT.
Dubai's benchmark index (.DFMGI), opens new tab advanced 0.7%, supported by gains in almost all sectors with Emirates NBD (ENBD.DU), opens new tab, the Emirate's largest lender, and tolls operator Salik Company (SALIK.DU), opens new tab both rising 2%.
Dubai's Parkin, which oversees public parking operations in the Emirates, has raised 1.57 billion dirhams ($427.5 million) after pricing its IPO at the top of its range at 2.1 dirhams per share. Parkin is expected to start trading on March 21.
The Qatari benchmark index (.QSI), opens new tab was up 0.6%, lifted by gains in almost all sectors with Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, rising 0.7% and Qatar Gas Transport (QGTS.QA), opens new tab adding 3%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab rose 0.1%, helped by a 1.4% increase in Aldar Properties (ALDAR.AD), opens new tab and a 4.6% surge in ADNOC Drilling (ADNOCDRILL.AD), opens new tab.
Saudi Arabia's benchmark index (.TASI), opens new tab was up marginally with ACWA Power (2082.SE), opens new tab rising 5.9% and Saudi Arabian Mining (1211.SE), opens new tab gaining 2.5%.
However, oil major Saudi Aramco (2222.SE), opens new tab and the kingdom's largest lender Saudi National Bank (1180.SE), opens new tab slipped 2.5% and 2.0% respectively.
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.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab rose 1%, ending its two sessions of losses with almost all sectors in the green.
Commercial International Bank (COMI.CA), opens new tab gained 2.7% and El Sewedy Electric (SWDY.CA), opens new tab advanced 2.7%.
#AbuDhabi-Based Edtech Firm Alef Is Said to Tap Banks for IPO - Bloomberg
Abu Dhabi-Based Edtech Firm Alef Is Said to Tap Banks for IPO - Bloomberg
Alef Education, an Abu Dhabi-based edtech firm, has picked EFG Holding and First Abu Dhabi Bank to work on its planned initial public offering, according to people familiar with the matter.
The listing in the United Arab Emirates’ capital could take place as soon as this year, the people said, asking not to be identified as the information isn’t public.
Details of the offering such as size and timing are still preliminary and subject to change, they said.
Representatives for Alef Education and FAB didn’t respond to requests for comment, while a spokesperson for EFG declined to comment.
Founded in 2016, the company serves the kindergarten to 12th grade sector with its technology and services, which include a learning platform, curriculum design, professional development for teachers and artificial intelligence, according to its website.
Parents in the UAE are among the world’s biggest spenders when it comes to educating their children. Dubai’s emergence as a post-Covid haven has drawn newcomers to the emirate, where private schools are mandatory for expatriate children.
Private school operator Taaleem Holdings, which listed in Dubai at the end of 2022, has seen its shares surge 23% since the IPO as profit rose on higher student enrollments.
The Middle East has been in the midst of an IPO boom since late 2021, driven by high oil prices and abundant local liquidity. Most share sales in the UAE have been government privatizations, but a number of privately-held firms are considering going public too, such as supermarket chains Spinneys Dubai LLC and LuLu Group International, Bloomberg News has reported.
Alef Education, an Abu Dhabi-based edtech firm, has picked EFG Holding and First Abu Dhabi Bank to work on its planned initial public offering, according to people familiar with the matter.
The listing in the United Arab Emirates’ capital could take place as soon as this year, the people said, asking not to be identified as the information isn’t public.
Details of the offering such as size and timing are still preliminary and subject to change, they said.
Representatives for Alef Education and FAB didn’t respond to requests for comment, while a spokesperson for EFG declined to comment.
Founded in 2016, the company serves the kindergarten to 12th grade sector with its technology and services, which include a learning platform, curriculum design, professional development for teachers and artificial intelligence, according to its website.
Parents in the UAE are among the world’s biggest spenders when it comes to educating their children. Dubai’s emergence as a post-Covid haven has drawn newcomers to the emirate, where private schools are mandatory for expatriate children.
Private school operator Taaleem Holdings, which listed in Dubai at the end of 2022, has seen its shares surge 23% since the IPO as profit rose on higher student enrollments.
The Middle East has been in the midst of an IPO boom since late 2021, driven by high oil prices and abundant local liquidity. Most share sales in the UAE have been government privatizations, but a number of privately-held firms are considering going public too, such as supermarket chains Spinneys Dubai LLC and LuLu Group International, Bloomberg News has reported.
Parkin PJSC Gets $71 Billion in Demand for $429 Million #Dubai IPO - Bloomberg
Parkin PJSC Gets $71 Billion in Demand for $429 Million Dubai IPO - Bloomberg
Parkin Co. PJSC received $71 billion of orders for its $429 million Dubai initial public offering, underscoring the continued strong demand for share sales in the Persian Gulf.
The IPO of the city’s parking business was 165 times covered, according to a statement on Thursday. The final price was set at 2.10 dirhams per share, the top of a marketed range, valuing Parkin at $1.7 billion. The Dubai Investment Fund sold 749.7 million shares, or a 25% stake, in the IPO.
Parkin is the latest Gulf listing to attract overwhelming levels of demand as investors bet on juicy dividends as well as on the strong share price performance of new companies. Dubai’s last IPO, the $315 million float of its taxi business, got $41 billion worth of orders.
Governments in the Gulf — particularly the United Arab Emirates and Saudi Arabia — have embarked on a listing spree in the last few years to fund the diversification of their economies away from fossil fuels. The IPOs have attracted strong demand amid a global listings slump due to rising interest rates, as high oil prices fueled local liquidity and international investors increasingly focused on the region.
Parkin’s IPO is the sixth privatization by the Dubai government as 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.
Parkin Co. PJSC received $71 billion of orders for its $429 million Dubai initial public offering, underscoring the continued strong demand for share sales in the Persian Gulf.
The IPO of the city’s parking business was 165 times covered, according to a statement on Thursday. The final price was set at 2.10 dirhams per share, the top of a marketed range, valuing Parkin at $1.7 billion. The Dubai Investment Fund sold 749.7 million shares, or a 25% stake, in the IPO.
Parkin is the latest Gulf listing to attract overwhelming levels of demand as investors bet on juicy dividends as well as on the strong share price performance of new companies. Dubai’s last IPO, the $315 million float of its taxi business, got $41 billion worth of orders.
Governments in the Gulf — particularly the United Arab Emirates and Saudi Arabia — have embarked on a listing spree in the last few years to fund the diversification of their economies away from fossil fuels. The IPOs have attracted strong demand amid a global listings slump due to rising interest rates, as high oil prices fueled local liquidity and international investors increasingly focused on the region.
Parkin’s IPO is the sixth privatization by the Dubai government as 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.
#SaudiArabia in Talks to Add Banks (JPM, BofA, Morgan Stanley) to Aramco Offer - Bloomberg
Saudi Arabia in Talks to Add Banks (JPM, BofA, Morgan Stanley) to Aramco Offer - Bloomberg
Saudi Arabia is in talks to add top Wall Street banks for a secondary share sale in oil giant Aramco, as it pushes ahead with one of the largest stock offerings in recent years, people with knowledge of the matter said.
The kingdom plans to hire JPMorgan Chase & Co. as one of the main underwriters to the offering, the people said, asking not to be identified as the matter is private. Bank of America Corp. and Morgan Stanley are also contending for lead roles on the deal, which could raise as much as $20 billion, according to the people.
It has already lined up Citigroup Inc., Goldman Sachs Group Inc. and HSBC Holdings Plc to work on the offering, Bloomberg News reported last month. Boutique bank Moelis & Co. has been acting as a financial adviser to help pick underwriters for the deal, according to the people.
The final lineup of advisers may still change and more banks are expected to be added before the deal launches, the people said. No final decisions have been made on the timing of the sale or the number of shares the government will offer.
It’s likely to be a marketed offering that’s open for a few days for investors to submit their orders, similar to the structure adopted by the Public Investment Fund for its $3.2 billion stake sale in Saudi Telecom Co. in 2022, the people said.
Saudi Arabia is in talks to add top Wall Street banks for a secondary share sale in oil giant Aramco, as it pushes ahead with one of the largest stock offerings in recent years, people with knowledge of the matter said.
The kingdom plans to hire JPMorgan Chase & Co. as one of the main underwriters to the offering, the people said, asking not to be identified as the matter is private. Bank of America Corp. and Morgan Stanley are also contending for lead roles on the deal, which could raise as much as $20 billion, according to the people.
It has already lined up Citigroup Inc., Goldman Sachs Group Inc. and HSBC Holdings Plc to work on the offering, Bloomberg News reported last month. Boutique bank Moelis & Co. has been acting as a financial adviser to help pick underwriters for the deal, according to the people.
The final lineup of advisers may still change and more banks are expected to be added before the deal launches, the people said. No final decisions have been made on the timing of the sale or the number of shares the government will offer.
It’s likely to be a marketed offering that’s open for a few days for investors to submit their orders, similar to the structure adopted by the Public Investment Fund for its $3.2 billion stake sale in Saudi Telecom Co. in 2022, the people said.
#UAE’s financial system ‘more secure’ than ever before, central bank says
UAE’s financial system ‘more secure’ than ever before, central bank says
The UAE’s financial system is more secure and efficient than ever before on the back of technological and structural advancements, the Central Bank of the UAE (CBUAE) said.
The apex bank said the country’s financial system continues to enhance security, operational efficiency, accessibility of mobile banking applications, online banking, and overall customer experience. “The widespread implementation of technology has bolstered the security and efficiency of the UAE’s financial system,”” it said.
The monetary authority’s statement comes on the heel of a spate of reforms and innovative measures it has introduced over the past several months.
Last week, the CBUAE launched Sanadak, the first ombudsman unit catering to consumers of licensed financial institutions and insurance companies in the Middle East and North Africa (Mena) region.
In January, the CBUAE made the first cross-border payment for its digital currency ‘Digital Dirham’ directly with China worth Dh50 million through the “mBridge,” which uses central bank digital currencies (CBDC) for international fund transfers between participating banks, based on distributed ledger technology, also known as blockchain. In 2023, the central bank gave the go-ahead for the country’s first paperless direct debit marketplace, to provide payers and merchants with an all-in-one solution to make regular monthly payments.
The UAE’s financial system is more secure and efficient than ever before on the back of technological and structural advancements, the Central Bank of the UAE (CBUAE) said.
The apex bank said the country’s financial system continues to enhance security, operational efficiency, accessibility of mobile banking applications, online banking, and overall customer experience. “The widespread implementation of technology has bolstered the security and efficiency of the UAE’s financial system,”” it said.
The monetary authority’s statement comes on the heel of a spate of reforms and innovative measures it has introduced over the past several months.
Last week, the CBUAE launched Sanadak, the first ombudsman unit catering to consumers of licensed financial institutions and insurance companies in the Middle East and North Africa (Mena) region.
In January, the CBUAE made the first cross-border payment for its digital currency ‘Digital Dirham’ directly with China worth Dh50 million through the “mBridge,” which uses central bank digital currencies (CBDC) for international fund transfers between participating banks, based on distributed ledger technology, also known as blockchain. In 2023, the central bank gave the go-ahead for the country’s first paperless direct debit marketplace, to provide payers and merchants with an all-in-one solution to make regular monthly payments.
Mideast Stocks: Gulf markets climb with oil prices; #AbuDhabi slips
Mideast Stocks: Gulf markets climb with oil prices; Abu Dhabi slips
Most stock markets in the Gulf were up in early trading on Thursday as oil prices rose, helped by strong demand in the U.S. and supply concerns after Ukrainian attacks on Russian refineries.
Oil prices - a catalyst for the Gulf's financial markets - gained, with Brent rising 0.3% to $84.3 a barrel by 0800 GMT.
U.S. gasoline inventories slid for a sixth straight week and crude oil stockpiles also fell unexpectedly as processing increased while Ukrainian drone strikes on Russian refining facilities continued for a second day on Wednesday.
The Qatari benchmark index was up 0.6%, supported by gains in almost all sectors, with Industries Qatar rising 1.0% and Qatar National Bank, the region's largest lender, gaining 0.4%.
Saudi Arabia's benchmark stock index advanced 0.3%, lifted by gains in IT, healthcare, real estate and finance.
Elm Company and Saudi Chemical Holding gained 2.7% and 9.4% respectively while Al Rajhi Bank, the world's largest Islamic lender, added 0.6%.
Dubai's benchmark stock index edged up 0.2%, helped by gains in most sectors with tolls operator Salik Company climbing 2.8% and Dubai Islamic Bank rising 0.5%.
In Abu Dhabi, the benchmark stock index eased 0.3%, weighed by a 0.6% drop in Alpha Dhabi and 0.1% loss in conglomerate International Holding Co.
Among the losers, the UAE's largest lender First Abu Dhabi Bank slipped 4.3%.
Most stock markets in the Gulf were up in early trading on Thursday as oil prices rose, helped by strong demand in the U.S. and supply concerns after Ukrainian attacks on Russian refineries.
Oil prices - a catalyst for the Gulf's financial markets - gained, with Brent rising 0.3% to $84.3 a barrel by 0800 GMT.
U.S. gasoline inventories slid for a sixth straight week and crude oil stockpiles also fell unexpectedly as processing increased while Ukrainian drone strikes on Russian refining facilities continued for a second day on Wednesday.
The Qatari benchmark index was up 0.6%, supported by gains in almost all sectors, with Industries Qatar rising 1.0% and Qatar National Bank, the region's largest lender, gaining 0.4%.
Saudi Arabia's benchmark stock index advanced 0.3%, lifted by gains in IT, healthcare, real estate and finance.
Elm Company and Saudi Chemical Holding gained 2.7% and 9.4% respectively while Al Rajhi Bank, the world's largest Islamic lender, added 0.6%.
Dubai's benchmark stock index edged up 0.2%, helped by gains in most sectors with tolls operator Salik Company climbing 2.8% and Dubai Islamic Bank rising 0.5%.
In Abu Dhabi, the benchmark stock index eased 0.3%, weighed by a 0.6% drop in Alpha Dhabi and 0.1% loss in conglomerate International Holding Co.
Among the losers, the UAE's largest lender First Abu Dhabi Bank slipped 4.3%.