Gulf markets subdued on geopolitical strife | Reuters

Gulf markets subdued on geopolitical strife | Reuters

Most stock markets in the Gulf were subdued on Tuesday amid tensions in the region as Lebanon's Hezbollah launched deepest attack into Israel since Gaza war.

Iran-backed Hezbollah group said on Tuesday it had launched a drone attack against Israeli military bases north of the city of Acre.

The Israeli military said it had no knowledge of any of its facilities being hit by Hezbollah, but had said earlier it intercepted two "aerial targets" off Israel's northern coast.

Saudi Arabia's benchmark index (.TASI), opens new tab gave up early gains to close 0.2% lower, with oil giant Saudi Aramco (2222.SE), opens new tab losing 0.2%.

Crude prices - which fuels the Gulf economy - slipped after a short-lived boost from stronger economic data out of Europe as the market weighed the potential fallout from any fresh U.S. sanctions on Iran's oil exports.

Dubai's main share index (.DFMGI), opens new tab finished flat.

The Dubai stock market continued to see downside risks although it stabilised to a certain extent, said Milad Azar Market analyst at XTB MENA.

"A resurgence in geopolitical risks could further weigh on the market."
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.3%, with the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab declining 1.7%.

Banks and finance companies in the United Arab Emirates may defer personal and car loan instalments for six months to help deal with the repercussions of last week's storm, the UAE central bank said on Monday.

The Qatari benchmark (.QSI), opens new tab, bucking the trend, gained 0.5%.
Investors this week are waiting for the release of U.S. gross domestic product figures and March personal consumption expenditure data - the Fed's preferred inflation gauge - to assess the trajectory of monetary policy.

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 retreated 4.9%, as most of its constituents were in negative territory including Commercial International Bank (COMI.CA), opens new tab, which was down 4.5%.

#SaudiArabia's 2024 economic growth forecast cut; #UAE leads GCC | Reuters

Saudi Arabia's 2024 economic growth forecast cut; UAE leads GCC | Reuters

Saudi Arabia's economy will grow at a slower pace this year than previously predicted as oil prices drop from recent peaks, according to a Reuters poll which also showed the United Arab Emirates (UAE) expanding at the fastest clip in the region.

After growing 8.7% in 2022, Saudi Arabia's economy - the Gulf Cooperation Council's (GCC) largest - contracted 0.9% last year as crude oil prices dropped from a March 2022 peak of $139 per barrel to average around $82 in 2023.

With oil prices not expected to rise significantly this year economists now predict weaker growth for Saudi Arabia's oil-dependent economy.

The April 3-19 poll forecast the economy would expand 1.9% in 2024, a downgrade from 3.0% in a January poll.

"The slower expansion in the Saudi economy this year will be down to ongoing oil production curbs ... due to be maintained through Q2 at least. When looking at the non-oil sector, we hold a more bullish outlook," said Daniel Richards, MENA economist at Emirates NBD.

#UAE and #Oman sign deals worth $35bln on state visit

UAE and Oman sign deals worth $35bln on state visit

Emirati and Omani companies have signed deals worth 129 billion dirhams ($35.12 billion) in sectors including energy and transport during the Omani ruler's visit to the United Arab Emirates this week.

The UAE investment ministry announced the deals on Tuesday, a day after Oman's Sultan Haitham bin Tariq arrived for a two-day state visit and met with UAE President Sheikh Mohammed bin Zayed Al Nahyan.

The agreements were dominated by a 117 billion dirham industrial and energy "megaproject" grouping wind, solar projects and green metals production.

Abu Dhabi National Energy Co. (TAQA), Abu Dhabi Future Energy Company (Masdar), Emirates Global Aluminium (EGA), Emirates Steel Arkan (ESA), OQ Alternative Energy and Oman Electrical Transmission Co were among the companies involved, the ministry statement said.

It did not disclose further details.

Abu Dhabi's sovereign wealth fund ADQ also signed an agreement to set up a 660 million dirham technology-focused fund with the Oman Investment Authority, while the UAE and Oman signed a 11 billion dirham agreement to connect the countries by rail.

“The agreements represent a major milestone in our bilateral ties, as they pave the way for us to leverage our collective strength to realise our shared vision of advancement and prosperity," UAE Minister of Investment Mohamed Hassan Alsuwaidi said.

($1 = 3.6726 UAE dirham)

Spinneys supermarket franchisee kicks off $375 million #Dubai IPO | Reuters

Spinneys supermarket franchisee kicks off $375 million Dubai IPO | Reuters

Supermarket chain Spinneys' franchisee in the United Arab Emirates and Oman is seeking to raise as much as $375 million from the sale of a 25% stake in an initial public offering, it disclosed on Tuesday.

The indicative price range was set between 1.42 dirhams and 1.53 dirhams, implying a market capitalisation of between 5.11-5.51 billion dirhams ($1.39-1.50 billion), it said in a statement.

Spinneys 1961 Holding will offer 900 million shares, or 25% of its issued share capital, on the Dubai Financial Market.

#AbuDhabi Returns to Eurobond Markets as Lower Rates Grow Remote - Bloomberg

Abu Dhabi Returns to Eurobond Markets as Lower Rates Grow Remote - Bloomberg

Abu Dhabi is selling its first eurobonds in about three years, as expectations fade that US interest rates will fall soon.

The oil-rich sheikhdom, which is part of the United Arab Emirates, is offering a dollar deal with tranches of five, 10 and 30 years, according to a person familiar with the matter. The final terms, including the size and yields, may be announced later on Tuesday.

Abu Dhabi, rated at the third-highest investment grade by the three major agencies, is tapping markets as the odds of imminent rate cuts recede. Emerging-market bond sales had a record start to the year as expectations built for monetary easing by the Federal Reserve.

With a $3 billion bond falling due in September, the emirate is following the likes of Saudi Arabia in borrowing abroad this year.

Though Abu Dhabi’s strong finances suggest it “doesn’t need the money,” the offering allows it to maintain a presence in the market in anticipation that borrowing costs could stay elevated at a time when geopolitical risks are sharply on the rise, according to Mehdi Popotte, senior portfolio manager at Arqaam Capital.

Shell, TotalEnergies in Talks for Stakes in Adnoc LNG Plant - Bloomberg

Shell, TotalEnergies in Talks for Stakes in Adnoc LNG Plant - Bloomberg

Shell Plc and TotalEnergies SE are among several global energy companies in talks to buy stakes in Abu Dhabi National Oil Co.’s next liquefied natural gas export project in the United Arab Emirates.

The two oil majors, as well as Japanese trading house Mitsui & Co., are looking for equity in the Ruwais facility, as well as contracts to purchase LNG from it, according to people with knowledge of the matter. A final investment decision on the project could happen as soon as next month, said the people who asked not to be named as the information is private.

Adnoc doesn’t require investment from the energy companies to move the project forward, and may decide not to sell equity, the people said.

Adnoc and Shell declined to comment. Mitsui said in an emailed response that no decision had been made at this time. Total didn’t immediately respond to requests for comment.

Gas is taking an increasingly bigger role in the Middle East as countries see robust demand for the fuel that may play a bridging role in the transition to cleaner energy sources. The UAE is boosting capacity and Saudi Arabia is seeking projects overseas. Qatar, one of the world’s biggest LNG suppliers along with the US and Australia, is also spending billions of dollars expanding production.

Major Gulf markets gain as geopolitical concerns ease | Reuters

Major Gulf markets gain as geopolitical concerns ease | Reuters

Major stock markets in the Gulf rose in early trade on Tuesday, on course to recover some losses as fears of wider geopolitical strife eased.

Iran said on Friday that it had no plan to retaliate following an apparent Israeli drone attack within its borders, which in turn followed an Iranian missile and drone attack on Israel days before.

Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.6%, with Saudi Aramco (2222.SE), opens new tab advancing 0.5%, after the oil giant said it is in talks to acquire a 10% stake in China's Hengli Petrochemical (600346.SS), opens new tab.

The deal would further bolster Aramco's growing downstream presence in China.

Dubai's main share index (.DFMMGI), opens new tab rose 0.5%, led by a 1% gain in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.

Meanwhile, banks and finance companies in the United Arab Emirates may defer personal and car loan installments for six months to help deal with the repercussions of last week's storm, the UAE central bank said on Monday.

The UAE last week suffered the heaviest rains in 75 years, causing widespread flooding which trapped residents in traffic, offices and homes and left many people counting the costs of damage to vehicles and property.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.2%.

Oil prices - a catalyst for the Gulf's financial market - edged higher, after falling in the previous session, as investors continued to assess the risk from geopolitical concerns in the Middle East.

The Qatari benchmark (.QSI), opens new tab added 0.5%, on track to snap three sessions of losses, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab rising 1.1%.