#UAE markets decline over #Israel's attack on #Iran | Reuters

UAE markets decline over Israel's attack on Iran | Reuters

Stock markets in the United Arab Emirates declined on Friday as investors turned risk-averse after Israel launched an attack against Iran.

Israel launched an attack on Iranian soil on Friday, sources said, in the latest tit-for-tat exchange between the two arch foes that threatened to drag the region deeper into conflict.

Dubai's main index (.DFMGI), opens new tab dropped 0.8%, as most of the stocks were trading in negative territory, led by a 1.1% decrease in the blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 1.2% loss in top lender Emirates NBD Bank (ENBD.DU), opens new tab.

Losses in the index were capped by a 2% jump in Dubai telecom operator Emirates Integrated Telecommunications (DU.DU), opens new tab and a 1% rise in foreign currency exchange firm Al Ansari Financial Services (ALANSARI.DU), opens new tab.

Dubai's stock market ended the week on a negative note, primarily influenced by a risk-off mood driven by geopolitical tensions, market analyst Ayham Sallah said.

"The market may continue to face downward pressure if geopolitical unrest persists, compounded by a hawkish shift in U.S. monetary policy expectations."

Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled 0.6% lower, hitting more than a 2-year low, weighed down by a 2.4% decline in IHC-owned investment firm Multiply Group (MULTIPLY.AD), opens new tab and a 3.3% slump in Emirates Telecom Group (known as E&) (EAND.AD), opens new tab.

The Dubai and Abu Dhabi indexes recorded 1.6% and 1.2% weekly losses respectively according to LSEG data.

Meanwhile, oil prices - a key catalyst for the Gulf's financial market - drifted lower after rising in the morning after the risk of major escalation of hostilities appeared to ease.

Oil steadied on Friday after prices spiked earlier on reports that Israel had attacked Iran.

Tehran played down the incident and indicated it had no plans for retaliation - a response that appeared gauged towards averting region-wide war.

Spanish government signals openness to TAQA's bid for Naturgy | Reuters

Spanish government signals openness to TAQA's bid for Naturgy | Reuters

Spain on Friday signalled it was open to a potential takeover bid of energy firm Naturgy (NTGY.MC), opens new tab by Abu Dhabi's TAQA (TAQA.AD), opens new tab, saying that while the government will defend its strategic interests that did not imply it would block the deal.

TAQA confirmed on Wednesday it is in discussions with the three largest shareholders of Naturgy about a possible bid for the largest natural gas firm in Spain.

Given Naturgy's strategic role in the country's energy system, the government by law must have a say on such a deal.

"I have spoken of the need to be vigilant and guarantee energy security in defence of Spain's strategic interests," Energy Minister Teresa Ribera said when asked about the potential deal at a press conference. "This does not mean vetoing any company or investor."

Spain has already shown it has the mechanisms at hand to protect its interests when it approved Australian fund IFM's partial takeover bid for Naturgy in 2021, Ribera said. The government imposed conditions to protect jobs, investment and the supply of gas and electricity.

IMF revises down Mideast growth outlook on war, trade disruptions | Reuters

IMF revises down Mideast growth outlook on war, trade disruptions | Reuters

The International Monetary Fund said on Thursday Middle East economies would grow at a slower pace this year than it previously projected as the war in Gaza, attacks on Red Sea shipping and lower oil output add to existing challenges of high debt and borrowing costs.

The IMF revised down its 2024 growth forecast for the Middle East and North Africa (MENA) region to 2.7% from 3.4% in its October regional outlook. That would be an improvement from 1.9% growth in 2023.

The downward revision was driven by conflicts in Sudan, the West Bank and Gaza, as well as oil production cuts by Gulf countries weighing on activity.

"Assuming these factors ease in 2025, growth is forecast to strengthen to 4.2%," the IMF said.

"Uncertainty is high and medium-term growth is forecast to remain below pre-pandemic historical averages."

Within MENA, oil exporters are seen faring better, with the IMF projecting 2.9% growth this year, up 1 percentage point from last year.

Groups From Middle East, China Look to Build World’s Tallest Tower in Thailand - Bloomberg

Groups From Middle East, China Look to Build World’s Tallest Tower in Thailand - Bloomberg

A group of investors led by a Dubai-based real estate developer is in talks to build a mixed-use tower in Thailand that may vie for the mantle of the world’s tallest building.

Thai Prime Minister Srettha Thavisin met with a group of Middle Eastern and Chinese companies including Emaar Group, Broad Group and Vatone Group and discussed plans to “build the world’s tallest building in Thailand,” he said in a post on X on Friday.

Emaar is best known for building the world’s tallest tower Burj Khalifa in Dubai. Mohamed Alabbar, who founded Emaar, said the Thai project won’t be developed by the publicly traded company but by a group of investors that includes him in a personal capacity. The talks are in early stages for “a super tall tower,” he said.

The project in Thailand will include a large department store, offices, a financial hub, a hotel, and an entertainment center, said Srettha, a former property tycoon who has backed the idea of building “entertainment complexes” that also house casinos.

“It will create considerable investment value and attract tourists,” Srettha wrote in the post, adding that the investors will study the prospects and propose an investment plan later. “Promoting investments from the private sector is a key factor to stimulate the country’s economy and generate income for the people.”

IMF forecast: #Saudi economy to record second highest global growth rate in 2025

IMF forecast: Saudi economy to record second highest global growth rate in 2025

The International Monetary Fund (IMF) has raised its growth forecast for the performance of Saudi Arabia’s economy by about 0.5 percent to six percent for the year 2025, up from 5.5 percent predicted in January 2024.

The IMF is raising the Saudi economy’s growth rate forecast for the year 2025 for the second time in a row during this year. This makes the Saudi economy recording the second highest expected growth rate in 2025, coming next to the Indian economy, which is expected to achieve a growth rate of 6.5 percent.

In its ‘World Economic Outlook’ report released this month, the IMF stated that the baseline forecast is for the world economy to continue growing at 3.2 percent during 2024 and 2025, at the same pace as in 2023. The report highlighted that the global recovery is steady but slow and differs by region.

In the last report, the IMF’s experts raised their expectations for the growth rate of the Kingdom’s economy for the year 2025 from 5.5 percent to 6 percent, despite its stability in the expectations of the growth rate of the global economy at the level of 3.2 percent.

It is noteworthy that the forecast of the IMF experts in January 2024 was that the Kingdom’s economy would grow from 4.5 percent to 5.5 percent in 2025. This change in the Fund’s expectations were made in accordance with the data it recently issued in its report.

This is a clear reference to the optimistic outlook on the performance and strength of the Saudi economy and the positive growth it achieves despite the risks, challenges and global conditions that most economies are witnessing. The IMF report showed that the Saudi economy is witnessing a distinguished performance in its diversification, in addition to the growth of non-oil revenues, reaching unprecedented levels.

Exclusive: #UAE giant eyes majority stake in Vedanta's Zambian mines in expansion drive | Reuters

Exclusive: UAE giant eyes majority stake in Vedanta's Zambian mines in expansion drive | Reuters

The mining investment arm of Abu Dhabi's most valuable company has offered to buy a majority stake in Vedanta Resources' Zambian copper assets, two sources familiar with the matter told Reuters, in its drive to build an African copper mining empire.

The unit of International Holding Company (IHC.AD), opens new tab recently made an offer of more than $1 billion to buy a 51% stake in Konkola Copper Mines (KCM) from Indian billionaire Anil Agarwal-owned Vedanta (VDAN.NS), opens new tab, the sources said.

The unit - International Resources Holding (IRH) - is racing to broaden its burgeoning copper mining business in Zambia after buying a 51% stake in Mopani Copper Mines in a deal worth $1.1 billion. IRH said last month it planned to bid for a stake owned by EMR Capital in Lubambe Copper Mine, which is also for sale.

The deals spree is part of a push by oil-rich United Arab Emirates (UAE) and Saudi Arabia to secure critical metal supplies from Africa, a move that could also help them participate in the transition to green energy.