BlackRock to launch PIF-backed #Saudi investment platform | Reuters

BlackRock to launch PIF-backed Saudi investment platform | Reuters

The world's largest asset manager BlackRock (BLK.N), opens new tab said on Tuesday it plans to launch a new investment platform in Saudi Arabia, backed by up to $5 billion from Saudi sovereign wealth fund the Public Investment Fund (PIF).

BlackRock and PIF said they had signed a memorandum of understanding under which BlackRock would establish a Riyadh-based multi-asset investment platform, anchored by PIF's initial cash injection, subject to certain agreed milestones being hit.

The two parties said the platform would accelerate growth of Saudi Arabia's capital markets, with a Riyadh-based investment team looking to raise additional funds locally and overseas.

The PIF is central to Crown Prince Mohammad bin Salman's plans to transform the kingdom's economy by building new industries and investing in massive infrastructure development projects that the government refers to as giga-projects.

A BlackRock spokesperson said its platform would be focused on Saudi Arabia but would span investments across the Middle East and North Africa, including infrastructure and credit within private markets and equities in public markets.

BlackRock chairman and CEO Larry Fink said that Saudi Arabia had become an "increasingly attractive" destination for international investment.

PIF's deputy governor Yazeed A. Al-Humied said the agreement would help make the Saudi investment market more internationally diverse and dynamic.

The PIF has transformed in recent years from a sleepy sovereign investor into a global investment vehicle that makes multi-billion dollar bets on everything from technology to sports.

PIF invested $31.5 billion last year to become the world's top spending sovereign wealth fund.

#Dubai Real Estate: Ruler’s Firm Dubai Holding Refinances $8.2 Billion - Bloomberg

Dubai Real Estate: Ruler’s Firm Dubai Holding Refinances $8.2 Billion - Bloomberg

Dubai Holding refinanced a 30 billion dirham ($8.2 billion) loan to replace older facilities at the two state-backed developers it absorbed last month, better positioning itself to capitalize on a boom in the city’s real estate market.

The funding will refinance debt held by the firms — Nakheel and Meydan — according to people familiar with the matter, who asked not to be identified because the information is private. The deal helped secure more favorable terms for the debt, with Emirates NBD Bank PJSC and Mashreqbank PSC underwriting the loan, they said.

Nakheel is best known as the developer of Dubai’s artificial palm-shaped islands, while Meydan owns one of the world’s most opulent horse racecourses. The companies were merged and brought under Dubai Holding — an investment firm owned by the emirate’s ruler — to better take advantage of the strength in the real estate market.

The recent moves, orchestrated by Dubai Holding Chief Executive Officer Amit Kaushal, could potentially be a precursor to an eventual listing of some of the conglomerate’s units over the next few years, according to two of the people. Kaushal, who took over as CEO in 2018 after stints at global banks including Goldman Sachs Group Inc. and UBS Group AG, is looking to cut costs at the combined entity and streamline operations, the people said.

A representative for Dubai Holding didn’t immediately respond to comment.

The deal in March created a real estate behemoth with a large land bank and assets worth billions of dollars — better equipped to cope with fluctuations in a property market known for its boom and bust cycles.

Nakheel and Meydan’s parent company is among the top shareholders in Dubai’s biggest listed property firm, and has been able to capitalize on the surge in demand for homes via a joint venture with Abu Dhabi’s largest developer.

#AbuDhabi’s E& Weighs Acquisition of Telecom Company United Group - Bloomberg

Abu Dhabi’s E& Weighs Acquisition of Telecom Company United Group - Bloomberg

Emirates Telecommunications Group Co. is considering a potential acquisition of eastern European carrier United Group BV as it seeks further expansion outside its home market, according to people familiar with the matter.

E&, as the Abu Dhabi-based carrier is known, has been evaluating a possible purchase of United Group, the people said, asking not to be identified because the information is private. The company’s private equity owner BC Partners may seek a valuation of around €8 billion ($8.6 billion), the people said.

BC Partners is working with advisers to explore a sale of United Group, and other suitors may emerge, the people said. The buyout firm plans to kick off a formal sale process next month, some of the people said. Deliberations are at an early stage, and it could end up selling the business piecemeal to multiple buyers, they said.

United Group has operations in countries including Serbia, Slovenia, Croatia, Bosnia & Herzegovina and Montenegro, according to its website. It has also expanded into European Union members such as Bulgaria and Greece.

Deliberations are ongoing and there’s no certainty they will lead to an agreement. A representative for BC Partners declined to comment. A spokesperson for e& said that as a listed company, it keeps the market informed on any developments and “at this stage” it is not bidding for United Group.

E& agreed last year to acquire a controlling stake in PPF Telecom Group’s assets in Bulgaria, Hungary, Serbia and Slovakia. It also owns a significant stake in London-listed Vodafone Group Plc. The Emirati company’s chief executive officer, Hatem Dowidar, joined Vodafone’s board in February.

BC Partners acquired United Group in 2019 from private equity firm KKR & Co. Last year, Saudi Telecom Co.’s Tawal infrastructure arm agreed to buy a portfolio of tower assets from United Group for €1.22 billion.

Mideast Stocks: Major Gulf markets end mixed; Egypt hits four-month low

Mideast Stocks: Major Gulf markets end mixed; Egypt hits four-month low

Major stock markets in the Gulf were mixed on Tuesday, amid rising oil prices, while investors looked toward what the U.S. Federal Reserve would say about the interest rate outlook after its policy meeting this week.

Oil prices — a catalyst for the Gulf's financial markets — edged up as Israel-Hamas talks offered hopes of a ceasefire even as Red Sea attacks continued. Brent rose 0.2% to $88.55 a barrel by 1300 GMT.

Saudi Arabia's benchmark stock index closed 0.2% higher, up for a second straight session. But the index posted losses for the second month in a row. Among individual stocks, Acwa Power gained 1.7% and Middle East Pharmaceutical added 2.5%, while Saudi Arabian Mining, known as Ma'aden, dropped 2.1%.

The Kingdom's flagship mining firm Ma'aden said it would acquire fertilizers maker Mosaic's stake in a phosphate production joint venture by issuing shares worth about $1.5 billion.

In Abu Dhabi, the benchmark index rose 0.1% and extended gains to a third consecutive session. But it was down 1.7% for the month, its fourth straight monthly loss. Abu Dhabi Islamic Bank declined 1.8% and First Abu Dhabi Bank, the UAE's largest lender, shed 0.2%. However, Aldar Properties rose 1.9% and Abu Dhabi Commercial Bank added 1.2%.

The Qatari benchmark index fell 0.2%, snapping two straight session of gains, weighed down by a 3.9% drop in Qatar International Islamic Bank and a 3.1% slide in Barwa Real Estate.

Dubai's benchmark index eased 0.1%, dragged down by losses in consumer discretionary, utilities and industry sectors, with Mashreqbank falling 4.4% and Commercial Bank of Dubai losing 2.8%. Investors will now focus on the Fed's two-day meeting ending on Wednesday at which it is expected to stand pat on interest rates.

Most Gulf currencies are pegged to the dollar and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index dropped 6% to 24,449, its lowest levels in four months, with almost all its constituents posting losses. Talaat Mostafa slumped 12% and Commercial International Bank lost 4.1%.

Mosaic to sell stake in #Saudi JV to Ma'aden for $1.5 billion in stock | Reuters

Mosaic to sell stake in Saudi JV to Ma'aden for $1.5 billion in stock | Reuters

Fertilizer maker Mosaic Co (MOS.N), opens new tab said on Tuesday that Saudi Arabia's flagship mining firm Ma'aden would acquire the U.S.-based company's stake in a phosphate production joint venture by issuing shares worth about $1.5 billion.

Ma'aden will issue about 111 million shares to buy the 25% stake Mosaic owns in Ma'aden Wa'ad Al Shamal Phosphate Co, a joint venture between Mosaic, Ma'aden and Saudi Basic Industries (2010.SE), opens new tab Corp.

Mosaic had said in February that a lot of the cash generated from the asset had gone into reducing debt and investing in the joint venture was not at the top of its priority.

The phosphate producer curtailed output after fertilizer prices dropped last year due to lukewarm demand from key markets.

The deal is expected to close by the end of this year.

#Dubai Spinneys expands size of IPO retail offering

Dubai Spinneys expands size of IPO retail offering

Dubai supermarket chain operator Spinneys, which is planning a 25% stake sale in an IPO, has expended the size of its retail offering following high levels of demand from investors.

The UAE retail offering has been increased from 45,000,000 shares to 63,000,000 shares, and will now represent 7% of the total offer, instead of the previous 5%, the company said in a statement on Tuesday.

As the total size of the offering remains unchanged at 900,000,000 shares, representing 25% of the company’s total issued share capital, qualified investors will now be allocated 837,000,000 shares, instead of 855,000,000 shares, representing 93% of the total, compared to the 95% previously announced.

Meanwhile, Spinneys and the selling shareholder Al Seer Group LLC have appointed BHM Capital Financial Services PJSC as stabilisation manager with a view to support the market price of the shares following the listing. The number of stabilisation shares has increased from 45,000,000 previously to 63,000,000.

The IPO subscription period remains unchanged and will close today professional investors. The offer price range has been set between 1.42 dirhams ($0.38) and AED 1.53 per share, implying a market capitalisation upon listing of between AED 5.11 billion ($1.39 billion) and AED 5.51 billion ($1.50 billion).

The final offer price will be announced on Wednesday, May 1.

Major Gulf bourses mixed in early trade; Fed meet in focus | Reuters

Major Gulf bourses mixed in early trade; Fed meet in focus | Reuters

Major stock markets in the Gulf put in a mixed performance in early trade on Tuesday, as investors looked forward to what the Federal Reserve would say about the interest rate outlook at its policy meeting this week.

The Qatari benchmark index (.QSI), opens new tab rose 0.3%, supported by gains in all sectors, with Qatar Islamic Bank (QISB.QA), opens new tab adding 0.8% and Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, rising 0.2%.

Among other gainers, Qatar Fuel (QFLS.QA), opens new tab advanced 0.8% after the distributor of fuels posted an increase of 9% in quarterly net profit on Monday.

In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab edged up 0.3%, lifted by a 2.7% gain in Abu Dhabi Commercial Bank (ADCB.AD), opens new tab and a 2.1% surge in Aldar Properties (ALDAR.AD), opens new tab.

Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.3%, weighed down by losses in materials, finance and utilities stocks.

Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, slipped 0.6% and the kingdom's flagship mining company, Saudi Arabian Mining (1211.SE), opens new tab dropped 2.7%.

Dubai's benchmark stock index (.DFMGI), opens new tab was down 0.1% with Mashreqbank (MASB.DU), opens new tab falling 3.3% and Emaar Development (EMAARDEV.DU), opens new tab slipping 1.8%.

Emirates Integrated Telecommunications (DU.DU), opens new tab climbed 3.5% after the telecom provider posted a 62.7% surge in quarterly net profit on Monday.

Columbia University began suspending pro-Palestinian activists who refused to take down a tent encampment on its New York City campus Monday – after the school declared a stalemate in talks to end the protests.

Investors will now focus on the Fed's two-day meeting that ends on Wednesday, at which the central bank is expected to stand pat on interest rates and strike a hawkish tone.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.