#UAE markets track oil prices lower | Reuters

UAE markets track oil prices lower | Reuters

Stocks in the United Arab Emirates declined on Friday, pressured by losses in crude prices as strong U.S. and German economic data sparked concerns that sticky inflation could prolong higher interest rates and curb fuel demand.

Oil prices - a key catalyst for Gulf's financial markets - drifted lower on Friday with Brent crude easing 0.74% to $80.76 a barrel by 1032 GMT.

Data on Thursday showed U.S. jobless claims dropped while S&P Global's Flash PMI survey showed business activity expanded faster than economists forecast in May.

Most Gulf Cooperation Council (GCC) countries, including the United Arab Emirates, have their currencies pegged to the U.S. dollar and they generally follow the Fed's policy moves.

Abu Dhabi's benchmark index (.FTFADGI), opens new tab dropped 0.6%, hitting their lowest level in over 27-months, dragged down by a 6.9% drop in state-run utility firm Abu Dhabi Nation Energy Company (TAQA.AD), opens new tab, while Abu Dhabi healthcare platform Pure Health Holding (PUREHEALTH.AD), opens new tab shed 5.8%.

Meanwhile, crypto mining firm Phoenix Group (PHX.AD), opens new tab gained 4.8%, recovering from six straight sessions of losses that took it below the listing price.

However, Palms Sports (PALMS.AD), opens new tab jumped 2.6% after the firm acquired an 80% Stake In Yas Physiotherapy Center.

Dubai's main index (.DFMGI), opens new tab settled 0.3% lower, and 1.4% down for the week, to its lowest level since late December last year as market heavyweight Emaar Properties (EMAR.DU), opens new tab and Emirates NBD Bank (ENBD.DU), opens new tab lost 1.6% each.

Abu Dhabi's index logged 2.3% losses, its steepest weekly decline since mid-October last year.

#Saudi Arabian Crown Prince Juggles Ambition With Regional Reality - Bloomberg

Saudi Arabian Crown Prince Juggles Ambition With Regional Reality - Bloomberg

Crown Prince Mohammed bin Salman faces a complicated balancing act as he consolidates power in Saudi Arabia.

Interest in his stewardship of the world’s biggest oil exporter has intensified since the royal court announced this week that 88-year-old King Salman was being treated for lung inflammation at his palace in Jeddah. Yet MBS, as he is known, has effectively been running Saudi Arabia since his father made him his heir in 2017.

Now he’s expected to focus on tightening control domestically. The preference at this stage is likely to be to co-opt possible opponents rather than deploy the iron fist his regime used before to crush dissent within the royal family, the once-powerful religious establishment, and even abroad in the case of slain Washington Post columnist Jamal Khashoggi.

A key plank of administration is his Vision 2030 agenda to transform the Saudi economy by investing in everything from tourism to electric vehicles and semiconductors. But that won’t be easy.

#AbuDhabi’s IHC Eyes Buyback as Stock Cools After 43,000% Jump - Bloomberg

Abu Dhabi’s IHC Eyes Buyback as Stock Cools After 43,000% Jump - Bloomberg

International Holding Co., the sprawling conglomerate chaired by one of Abu Dhabi’s most powerful royals, has planned its 5 billion dirham ($1.4 billion) buyback program to revive its share price as the 43,000% rally in its stock cools.

There’s “significant value in the future” of IHC and a stock buyback will help enhance the company’s earnings per share, Chief Executive Officer Syed Basar Shueb said in an interview. It’s also an “opportunity” for shareholders who want to sell their stock, he added.

Emirati nationals own nearly 90% of IHC. Its second-biggest shareholder is Royal Group, a company led by the UAE’s national security adviser, Sheikh Tahnoon Bin Zayed Al Nahyan — who is also IHC’s chairman. The biggest individual shareholder, Pal Group of Companies LLC, is a subsidiary of Royal Group. Together, they own about 60% of IHC. Its low free float means that despite its size, IHC is not part of the widely-tracked MSCI Emerging Markets Index.

It announced the buyback program earlier this month, planning for a total of as much as 5 billion dirhams to be executed over a one-year period, pending approval from shareholders and regulators.

“This is our strategy for rewarding our shareholders who have probably not seen the share price growth in the past year,” the CEO said. “It should help boosting the price.”