Abu Dhabi Speeds Up Country Club Admissions to Lure Hedge Funds - Bloomberg
Abu Dhabi officials are quietly orchestrating a fresh package of perks they hope will help propel the city up the ranks of the world’s biggest financial centers, from helping traders obtain coveted school admissions for their children to assisting them with securing memberships at country clubs.
While the city’s $1.5 trillion in sovereign wealth capital will continue to be the main draw for hedge fund managers making a beeline for Abu Dhabi, officials are formalizing a program that will offer incentives, including lifestyle support and visas, as part of its overall package for finance professionals moving to the region.
The bet is that these perks, along with the city’s tax-free status, sunny weather and a time zone that allows workers to trade across Asian, European and US hours, will help it continue to lure hedge fund titans from New York, London, Hong Kong and Singapore.
“We are positioning ourselves globally by benchmarking against the likes of Hong Kong and Singapore right now,” said Arvind Ramamurthy, who leads market development at the Abu Dhabi Global Market, the emirate’s financial free-zone. “In the long-term, we want to be compared with London and New York.”
There are already signs that some of the city’s early moves are working: Brevan Howard Asset Management now manages more money from the emirate than it does anywhere else on the planet. Goldman Sachs Group Inc., Rothschild & Co. and Morgan Stanley are among the global financial firms opening up offices in Abu Dhabi.
The financial center had 1,825 operational entities as of the end of last year, up by a third from 2022. ADGM has said it’s been the fastest-growing financial center in the region for two consecutive years.
Sunday 17 March 2024
Oil-Rich #AbuDhabi's $35 Billion Gamble on Egypt - Bloomberg
Oil-Rich Abu Dhabi's $35 Billion Gamble on Egypt - Bloomberg
On a clear winter’s day earlier this year, those living on the vast Egyptian headland of Ras El-Hekma who looked up from the dun-colored scrub would have seen an aircraft circling the sky. Far above, locals were told, top United Arab Emirates officials were taking a special interest in one of the Mediterranean coast’s last great wildernesses.
Weeks later, on Feb. 23, Egypt’s premier and the UAE’s investment minister stood before TV cameras at the inking of a $35 billion deal that includes turning that same location into the next big thing in global tourism. Billed as the largest foreign investment in Egypt’s history, it likely saved the ravaged economy and may have averted another major crisis in the Middle East.
The UAE’s deliberations before deciding to invest — as relayed by more than a dozen diplomats, officials and other insiders — show how the Gulf power is using its deep pockets to turn a buck while building its political sway. Deploying a sum equivalent to 7% of its gross domestic product, the UAE is displaying a combination of financial strength with geo-strategic aims that demonstrates a push for a key role in shaping events in the region and beyond.
The investment should also be seen as a signal of intent at a time when Abu Dhabi is jockeying for influence with Gulf powers Saudi Arabia and Qatar, with US influence waning as the Israel-Hamas war rages presenting new challenges in a part of the globe key to energy production and supply lines.
The jury’s out on how fruitful the UAE’s gambit will be. But for Egypt, historically the Arab world’s beating heart and its most populous country of some 105 million people, the benefits were immediate. Within days of Abu Dhabi depositing cash, authorities devalued the pound and months-long International Monetary Fund talks ended with an $8 billion loan deal. President Abdel-Fattah El-Sisi said he’d balked at touching the currency until then for reasons of “national security.”
On a clear winter’s day earlier this year, those living on the vast Egyptian headland of Ras El-Hekma who looked up from the dun-colored scrub would have seen an aircraft circling the sky. Far above, locals were told, top United Arab Emirates officials were taking a special interest in one of the Mediterranean coast’s last great wildernesses.
Weeks later, on Feb. 23, Egypt’s premier and the UAE’s investment minister stood before TV cameras at the inking of a $35 billion deal that includes turning that same location into the next big thing in global tourism. Billed as the largest foreign investment in Egypt’s history, it likely saved the ravaged economy and may have averted another major crisis in the Middle East.
The UAE’s deliberations before deciding to invest — as relayed by more than a dozen diplomats, officials and other insiders — show how the Gulf power is using its deep pockets to turn a buck while building its political sway. Deploying a sum equivalent to 7% of its gross domestic product, the UAE is displaying a combination of financial strength with geo-strategic aims that demonstrates a push for a key role in shaping events in the region and beyond.
The investment should also be seen as a signal of intent at a time when Abu Dhabi is jockeying for influence with Gulf powers Saudi Arabia and Qatar, with US influence waning as the Israel-Hamas war rages presenting new challenges in a part of the globe key to energy production and supply lines.
The jury’s out on how fruitful the UAE’s gambit will be. But for Egypt, historically the Arab world’s beating heart and its most populous country of some 105 million people, the benefits were immediate. Within days of Abu Dhabi depositing cash, authorities devalued the pound and months-long International Monetary Fund talks ended with an $8 billion loan deal. President Abdel-Fattah El-Sisi said he’d balked at touching the currency until then for reasons of “national security.”
Nakheel, Meydan Set to Become Part of #Dubai Holding, Ruler Says - Bloomberg
Nakheel, Meydan Set to Become Part of Dubai Holding, Ruler Says - Bloomberg
State-owned developers Nakheel and Meydan are to become part of Dubai Holding, according to the emirate’s ruler Sheikh Mohammed bin Rashid al Maktoum.
Sheikh Mohammed has directed the inclusion of Nakheel and Meydan “under the umbrella” of Dubai Holding, forming a “global economic entity,” he said in a March 16 statement posted on X, the social media site formerly known as Twitter.
The goal is to create a “more financially efficient entity,” owning assets worth “hundreds of billions” and including expertise in various sectors which can compete regionally and globally, according to the post. The boards of directors of both Nakheel and Meydan will be abolished, state news agency WAM said.
Dubai has seen a surge in demand for property over the past couple years, aided by an influx of people from around the world. That’s helped the city reverse a years-long slump — prices are closing in on records, despite mortgage rates hovering at the highest levels in two decades.
Nakheel, best known as the developer of Dubai’s artificial palm-shaped islands, last year launched a project that saw buyers queue up in 100F (38C) heat for $5 million homes.
The surge in demand caps a turnaround for Nakheel, which was at the center of a property crash in 2009 that nearly bankrupted Dubai, but has since consolidated operations and cut costs.
Meydan in 2021 had total debt amounting to about $4 billion, of which $2.6 billion required restructuring, people familiar with the matter said at the time.
State-owned developers Nakheel and Meydan are to become part of Dubai Holding, according to the emirate’s ruler Sheikh Mohammed bin Rashid al Maktoum.
Sheikh Mohammed has directed the inclusion of Nakheel and Meydan “under the umbrella” of Dubai Holding, forming a “global economic entity,” he said in a March 16 statement posted on X, the social media site formerly known as Twitter.
The goal is to create a “more financially efficient entity,” owning assets worth “hundreds of billions” and including expertise in various sectors which can compete regionally and globally, according to the post. The boards of directors of both Nakheel and Meydan will be abolished, state news agency WAM said.
Dubai has seen a surge in demand for property over the past couple years, aided by an influx of people from around the world. That’s helped the city reverse a years-long slump — prices are closing in on records, despite mortgage rates hovering at the highest levels in two decades.
Nakheel, best known as the developer of Dubai’s artificial palm-shaped islands, last year launched a project that saw buyers queue up in 100F (38C) heat for $5 million homes.
The surge in demand caps a turnaround for Nakheel, which was at the center of a property crash in 2009 that nearly bankrupted Dubai, but has since consolidated operations and cut costs.
Meydan in 2021 had total debt amounting to about $4 billion, of which $2.6 billion required restructuring, people familiar with the matter said at the time.
#Saudi Wealth Fund Said to Be in Talks to Buy National Airline - Bloomberg
Saudi Wealth Fund Said to Be in Talks to Buy National Airline - Bloomberg
Saudi Arabia’s sovereign wealth fund is in early talks to acquire the kingdom’s flagship carrier as it looks to pour billions of dollars into turning the country into a tourism hotspot.
The Public Investment Fund is considering a deal that would see it add the 80-year old Saudia to its growing portfolio of aviation assets as soon as next year, according to people familiar with the matter, who asked not to be identified as the information is private.
The PIF would be taking over ownership of the airline from the government with a view to improving efficiency and profitability, the people said. The carrier could then be privatized or merged with Riyadh Air, which the wealth fund is currently setting up, they said.
It’s unclear how Saudia would be valued by the PIF, which has in the past received assets from the government without having to pay in order to prepare them for privatization. The carrier has a fleet of over 142 aircraft and flies to more than 90 destinations around the world.
No final decisions have been made. Talks are still at an early stage and the plan may be delayed or abandoned, the people said.
Saudi Arabia’s sovereign wealth fund is in early talks to acquire the kingdom’s flagship carrier as it looks to pour billions of dollars into turning the country into a tourism hotspot.
The Public Investment Fund is considering a deal that would see it add the 80-year old Saudia to its growing portfolio of aviation assets as soon as next year, according to people familiar with the matter, who asked not to be identified as the information is private.
The PIF would be taking over ownership of the airline from the government with a view to improving efficiency and profitability, the people said. The carrier could then be privatized or merged with Riyadh Air, which the wealth fund is currently setting up, they said.
It’s unclear how Saudia would be valued by the PIF, which has in the past received assets from the government without having to pay in order to prepare them for privatization. The carrier has a fleet of over 142 aircraft and flies to more than 90 destinations around the world.
No final decisions have been made. Talks are still at an early stage and the plan may be delayed or abandoned, the people said.
Gulf markets cautious ahead of next week's Federal Reserve meeting | Reuters
Gulf markets cautious ahead of next week's Federal Reserve meeting | Reuters
Most stock markets in the Gulf dropped or stayed steady on Sunday as investors weighed the interest rate outlook ahead of next week's Federal Reserve meeting, while the Saudi equities index bucked the trend.
Trading was cautious as investors eye the Fed's meeting next week, where the central bank is widely expected to hold rates steady and will release updated economic projections.
The Qatari benchmark index (.QSI), opens new tab was up marginally, with gains in industrials, utilities, real estate and energy offsetting losses in the finance, materials, consumer staples and communications sectors
Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and Qatar Islamic Bank (QISB.QA), opens new tab both lost 0.6%, while Qatar Navigation (QNNC.QA), opens new tab climbed 3.6%.
Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.3%, extending its rally to a fourth straight session with most sectors in the green.
ACWA Power (2082.SE), opens new tab surged 8.6% and Ades Holding (2382.SE), opens new tab rose 3.5%.
Among the gainers, Saudi Advanced Industries (2120.SE), opens new tab shot up 10% after it reported a 48.5% rise in full-year net profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, having risen the previous session, with almost all sectors in the red.
Eastern Company (EAST.CA), opens new tab dropped 5.1% and E-Finance (EFIH.CA), opens new tab declined 5.6%.
The European Union announced a 7.4 billion euro ($8.1 billion) funding package and an upgraded relationship with Egypt, part of a push to steer to Europe.
Most stock markets in the Gulf dropped or stayed steady on Sunday as investors weighed the interest rate outlook ahead of next week's Federal Reserve meeting, while the Saudi equities index bucked the trend.
Trading was cautious as investors eye the Fed's meeting next week, where the central bank is widely expected to hold rates steady and will release updated economic projections.
The Qatari benchmark index (.QSI), opens new tab was up marginally, with gains in industrials, utilities, real estate and energy offsetting losses in the finance, materials, consumer staples and communications sectors
Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and Qatar Islamic Bank (QISB.QA), opens new tab both lost 0.6%, while Qatar Navigation (QNNC.QA), opens new tab climbed 3.6%.
Saudi Arabia's benchmark index (.TASI), opens new tab was up 0.3%, extending its rally to a fourth straight session with most sectors in the green.
ACWA Power (2082.SE), opens new tab surged 8.6% and Ades Holding (2382.SE), opens new tab rose 3.5%.
Among the gainers, Saudi Advanced Industries (2120.SE), opens new tab shot up 10% after it reported a 48.5% rise in full-year net profit.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, having risen the previous session, with almost all sectors in the red.
Eastern Company (EAST.CA), opens new tab dropped 5.1% and E-Finance (EFIH.CA), opens new tab declined 5.6%.
The European Union announced a 7.4 billion euro ($8.1 billion) funding package and an upgraded relationship with Egypt, part of a push to steer to Europe.
S&P Global Rating confirms #SaudiArabia's 'A/A-1' credit ratings with stable outlook
S&P Global Rating confirms Saudi Arabia's 'A/A-1' credit ratings with stable outlook
S&P Global Rating has reaffirmed Saudi Arabia's foreign and local currency sovereign credit ratings at 'A/A-1', maintaining a Stable Outlook.
This endorsement reflects the Kingdom's ongoing commitment to economic and social reforms under its ambitious Vision 2030 agenda, aimed at enhancing economic resilience and bolstering the non-oil sector's growth and fiscal revenues.
The agency's report forecasts an average GDP growth of 3.3% in the medium term, driven by increased investment in the non-oil sector and robust consumer spending.
It highlights the expected strong growth in construction related to Vision 2030 projects and in the service sector, buoyed by consumer demand and an expanding female workforce.
S&P anticipates fiscal deficits to hover around 2% of GDP from 2024 to 2027.
S&P Global Rating has reaffirmed Saudi Arabia's foreign and local currency sovereign credit ratings at 'A/A-1', maintaining a Stable Outlook.
This endorsement reflects the Kingdom's ongoing commitment to economic and social reforms under its ambitious Vision 2030 agenda, aimed at enhancing economic resilience and bolstering the non-oil sector's growth and fiscal revenues.
The agency's report forecasts an average GDP growth of 3.3% in the medium term, driven by increased investment in the non-oil sector and robust consumer spending.
It highlights the expected strong growth in construction related to Vision 2030 projects and in the service sector, buoyed by consumer demand and an expanding female workforce.
S&P anticipates fiscal deficits to hover around 2% of GDP from 2024 to 2027.
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