#AbuDhabi index edges higher on Yahsat and Bayanat merger, #Dubai falls | Reuters

Abu Dhabi index edges higher on Yahsat and Bayanat merger, Dubai falls | Reuters

The Abu Dhabi index closed higher on Friday, after shareholders of satellite solutions provider Al Yah Satellite Communications (YAHSAT.AD), opens new tab and Bayanat Ai (BAYANAT.AD), opens new tab approved the merger to Create SPACE42, a global AI-powered space technology firm.

The merger was initially proposed by the respective Boards of Directors on Dec. 18, and is expected to become effective by mid-2024.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab edged 0.009% up, supported by a 2.1% jump in each of Yahsat and Bayanat Ai shares.

While gains in the index were stemmed by a last minute decline in IHC-owned stocks with Abu Dhabi's biggest developer Aldar Properties (ALDAR.AD), opens new tab losing 0.6% and Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab dipping 0.3%.

The Abu Dhabi stock market stabilized to a certain extent, buoyed by the gains in banking sector, said George Pavel, General Manager at Capex.com Middle East, who added "rebounding oil prices could help local stocks rebound"

However, its weekly performance was negative and could remain exposed to downside risks as a results of geopolitical tensions, Pavel added.

Oil prices - a key catalyst for Gulf's financial markets - gained on Friday after a top U.S. official expressed optimism over economic growth and as supply concerns lingered due to conflicts in the Middle East.

Brent crude was up 0.64%, or $0.57, to $89.59 a barrel by 1133 GMT.

Meanwhile, Dubai's main index (.DFMGI), opens new tab declined 0.5%, hitting 3-month lower, weighed down by a 2.6% decrease in toll gate operator Salik Company (SALIK.DU), opens new tab and 5.6% in drop in Dubai Investments (DINV.DU), opens new tab.

However, Dubai's biggest lender Emirates NBD Bank (ENBD.DU), opens new tab extended gains on Friday with a 1.2% hike after the lender reported a 12% jump in first-quarter net profit to 6.7 billion dirham ($1.82 billion) on Thursday.

Abu Dhabi and Dubai indexes recorded 0.9% and 0.6% weekly losses, respectively, according to LSEG data.

Oil-Backed Loans: #Dubai Firm Pledged $13 Billion for 20 Years of South Sudan Oil - Bloomberg

Oil-Backed Loans: Dubai Firm Pledged $13 Billion for 20 Years of South Sudan Oil - Bloomberg

A little-known company run by a distant relative of the Abu Dhabi royal family agreed to lend 12 billion euros ($12.9 billion) to South Sudan in exchange for repayment in oil, making it one of the largest ever oil-for-cash deals and the latest such intervention in a struggling African country.

According to an unpublished report by a United Nations Security Council-appointed panel of investigators reviewed by Bloomberg, the Dubai-based Hamad Bin Khalifa Department of Projects, or HBK DOP, and South Sudan’s then-finance minister Bak Barnaba Chol appear to have agreed to the terms of the loan in documents signed between December and February.

The deal amounts to almost double the GDP of South Sudan, which has been ravaged by famine and conflict, and 70% of the funds are earmarked for infrastructure, according to the documents seen by the investigators. But a loan of this size — about five times the country’s current external debt — also would likely tie up most of South Sudan’s oil revenues for many years, the unpublished report says.

For HBK DOP, which was founded by Sheikh Hamad Bin Khalifa Al Nahyan, a distant member of Abu Dhabi’s royal Al-Nahyan family, the loan may lock in access to oil at a discounted price for up to two decades. Under the agreement, South Sudan will receive $10 less per barrel of oil when compared with an international benchmark price.

ADCB Q1 net before tax jumps 26% to $660mln

ADCB Q1 net before tax jumps 26% to $660mln

ADCB has continued its growth momentum into 2024, delivering a first quarter (Q1) net profit before tax of AED2.431 billion ($660 million), an increase of 26% year on year. Net profit after tax was AED2.139 billion, with a return on average tangible equity of 14.1%.

This strong earnings growth was broad-based and primarily driven by solid loan growth in the Corporate and Investment Banking and Retail Banking businesses, an ADCB release said.

The Corporate and Investment Banking Group (CIBG) continued to enhance its UAE and regional market share. CIBG net loans grew 7% during the quarter and 28% year on year. The business is pursuing a strategy to build banking relationships across key regional economic corridors, and is making good progress on the opening of a branch in Saudi Arabia following formal approval in January 2024. CIBG is achieving a market-leading fee-to-income ratio by enhancing its sophisticated product suite and building on its strong track record in structuring complex transactions, loan syndications and capital markets advisory business.