UAE, South Korea Look to Buck Protectionist Wave With Trade Deal - Bloomberg
The United Arab Emirates reached an agreement with South Korea to bolster bilateral commerce, adding Asia’s fourth-largest economy to a growing roster of nations to close trade deals with the wealthy Gulf state.
Signed during UAE President Sheikh Mohammed bin Zayed’s visit to South Korea this week, the pact — known as a Comprehensive Economic Partnership Agreement — is part of the Arab country’s effort to grow its non-oil foreign trade to over $1 trillion by the end of the decade
It’s already inked similar agreements with India, Indonesia, Turkey and Ukraine, among others. The latest deal will aim to alleviate or remove tariffs on such products as energy and health care, according to a statement published on Wednesday.
The accord stands out amid a rising tide of protectionism and tensions among the world’s biggest economies. The Biden administration announced this month it’s reimposing tariffs on hundreds of goods imported from China and has moved to quadruple US duties on Chinese electric vehicles.
Wednesday, 29 May 2024
Mideast Stocks: #Qatar hits 4-year low as Gulf bourses drop
Mideast Stocks: Qatar hits 4-year low as Gulf bourses drop
Most Gulf stock markets slipped on Wednesday, led by Qatar, amid uncertainty over interest rate cuts by the U.S. Fed following an unexpected improvement in consumer confidence.
The Qatari benchmark index retreated 1% after the previous day's gains, falling to 9,279, its lowest level in nearly four years, with almost all sectors in the red. Qatar Islamic Bank, the country's largest Islamic lender, slipped 1.9% and Industries Qatar lost 1.4%.
The Abu Dhabi benchmark index extended its losing streak to an eighth session and fell 0.4% to 8,711, its lowest level in more than two years. The conglomerate Alpha Dhabi Holding declined 3.6% to 10.6 dirham per share, its lowest level since listing in June 2021. Among other losers, Aldar Properties, the emirate's largest developer, and Abu Dhabi Commercial Bank fell 2.7% and 1.9% respectively.
Dubai's benchmark index was down 0.7%, with developer Emaar Properties sliding 3.1% and Dubai Islamic Bank dropping 1.1%. However, beleaguered contractor Drake & Scull International surged 24% to close at 0.310 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.
Saudi Arabia's benchmark stock index bounced back after four straight sessions of losses to end 0.3% higher.
Saudi National Bank, the kingdom's largest lender, jumped 5.8% and Riyad Bank added 3.5%. U.S. Treasury yields touched multi-week highs on Tuesday, after lacklustre debt auctions and stronger-than-expected economic data dimmed hopes for U.S. rate cuts this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index was down for a third straight session and fell 0.4%, pressured by a 3.2% drop in E-Finance for Digital and a 2.2% fall in EFG Holding. However, GB Corp climbed 3.5% after the automaker posted 482% surge in its first-quarter net profit.
Most Gulf stock markets slipped on Wednesday, led by Qatar, amid uncertainty over interest rate cuts by the U.S. Fed following an unexpected improvement in consumer confidence.
The Qatari benchmark index retreated 1% after the previous day's gains, falling to 9,279, its lowest level in nearly four years, with almost all sectors in the red. Qatar Islamic Bank, the country's largest Islamic lender, slipped 1.9% and Industries Qatar lost 1.4%.
The Abu Dhabi benchmark index extended its losing streak to an eighth session and fell 0.4% to 8,711, its lowest level in more than two years. The conglomerate Alpha Dhabi Holding declined 3.6% to 10.6 dirham per share, its lowest level since listing in June 2021. Among other losers, Aldar Properties, the emirate's largest developer, and Abu Dhabi Commercial Bank fell 2.7% and 1.9% respectively.
Dubai's benchmark index was down 0.7%, with developer Emaar Properties sliding 3.1% and Dubai Islamic Bank dropping 1.1%. However, beleaguered contractor Drake & Scull International surged 24% to close at 0.310 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.
Saudi Arabia's benchmark stock index bounced back after four straight sessions of losses to end 0.3% higher.
Saudi National Bank, the kingdom's largest lender, jumped 5.8% and Riyad Bank added 3.5%. U.S. Treasury yields touched multi-week highs on Tuesday, after lacklustre debt auctions and stronger-than-expected economic data dimmed hopes for U.S. rate cuts this year.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index was down for a third straight session and fell 0.4%, pressured by a 3.2% drop in E-Finance for Digital and a 2.2% fall in EFG Holding. However, GB Corp climbed 3.5% after the automaker posted 482% surge in its first-quarter net profit.
Lenovo to Issue $2 Billion of Convertible Bonds to #SaudiArabia Fund - Bloomberg
Lenovo to Issue $2 Billion of Convertible Bonds to Saudi Arabia Fund - Bloomberg
Lenovo Group Ltd. plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom.
Lenovo said it will issue bonds to Alat, an investment firm wholly-owned by the Public Investment Fund, at an initial conversion price of HK$10.42 per share. That’s a roughly 12% discount to Lenovo shares’ closing price the previous day, near a nine-year-high for the stock. Lenovo’s shares were down around 2% Wednesday.
As part of the agreement, the Beijing-based maker of PCs and artificial intelligence servers plans to build a research and development center in Riyadh and expand production capacity in the region. Upon maturity, the converted notes would represent about 12% of Lenovo’s current capital, or near 11% of the enlarged capital when the conversion happens.
Lenovo remains the only major global PC brand that uses in-house production capacity, making it an attractive choice for Alat, said UOB Kay Hian analyst Johnny Yum in a note to investors. At the same time, the CB issuance gives Lenovo strategic investors that can help it extend its footprint in rapidly expanding markets in Middle East and Africa, he said. “The high income Middle Eastern countries are also putting huge investments into the buildout of AI infrastructures,” he said.
Lenovo Group Ltd. plans to sell $2 billion worth of zero-coupon convertible bonds to Saudi Arabia’s sovereign wealth fund, part of a broader strategic pact with the tech-hungry kingdom.
Lenovo said it will issue bonds to Alat, an investment firm wholly-owned by the Public Investment Fund, at an initial conversion price of HK$10.42 per share. That’s a roughly 12% discount to Lenovo shares’ closing price the previous day, near a nine-year-high for the stock. Lenovo’s shares were down around 2% Wednesday.
As part of the agreement, the Beijing-based maker of PCs and artificial intelligence servers plans to build a research and development center in Riyadh and expand production capacity in the region. Upon maturity, the converted notes would represent about 12% of Lenovo’s current capital, or near 11% of the enlarged capital when the conversion happens.
Lenovo remains the only major global PC brand that uses in-house production capacity, making it an attractive choice for Alat, said UOB Kay Hian analyst Johnny Yum in a note to investors. At the same time, the CB issuance gives Lenovo strategic investors that can help it extend its footprint in rapidly expanding markets in Middle East and Africa, he said. “The high income Middle Eastern countries are also putting huge investments into the buildout of AI infrastructures,” he said.
#SaudiArabia: Wall Street, PE Firms On Edge Over PIF's Domestic Shift - Bloomberg
Saudi Arabia: Wall Street, PE Firms On Edge Over PIF's Domestic Shift - Bloomberg
As Saudi Arabia ratchets up efforts to reshape itself, the government’s looked to the Public Investment Fund to lead the way. But an increased focus on domestic projects like the $1.5 trillion Neom has global asset managers fretting that it will have less cash to spend abroad.
While the fund plans to ramp up annual spending to as much as $70 billion, executives at three alternative investment firms have privately expressed concerns that the PIF will channel more money into local mega-projects. That could lead to a pivot away from passive investments in global private equity, infrastructure and hedge funds, people familiar with the matter said.
It's a stark shift from recent years, when wealth funds from the Middle East were eager to deploy billions of dollars with some of the world’s largest investors. The $925 billion PIF has been an especially prolific backer to the likes of BlackRock Inc. and Brookfield Asset Management.
Officials in the kingdom had looked to draw foreign investment to help pay for at least a portion of Crown Prince Mohammed bin Salman’s Vision 2030 agenda, but that money hasn’t rolled in as expected. That’s led to additional pressure on the PIF, which is the main entity tasked with driving the multi-trillion-dollar economic diversification plan.
As Saudi Arabia ratchets up efforts to reshape itself, the government’s looked to the Public Investment Fund to lead the way. But an increased focus on domestic projects like the $1.5 trillion Neom has global asset managers fretting that it will have less cash to spend abroad.
While the fund plans to ramp up annual spending to as much as $70 billion, executives at three alternative investment firms have privately expressed concerns that the PIF will channel more money into local mega-projects. That could lead to a pivot away from passive investments in global private equity, infrastructure and hedge funds, people familiar with the matter said.
It's a stark shift from recent years, when wealth funds from the Middle East were eager to deploy billions of dollars with some of the world’s largest investors. The $925 billion PIF has been an especially prolific backer to the likes of BlackRock Inc. and Brookfield Asset Management.
Officials in the kingdom had looked to draw foreign investment to help pay for at least a portion of Crown Prince Mohammed bin Salman’s Vision 2030 agenda, but that money hasn’t rolled in as expected. That’s led to additional pressure on the PIF, which is the main entity tasked with driving the multi-trillion-dollar economic diversification plan.
#Dubai's sovereign wealth fund ICD posts 68% jump in 2023 profit | Reuters
Dubai's sovereign wealth fund ICD posts 68% jump in 2023 profit | Reuters
The Investment Corporation of Dubai, the government's main investment arm, reported a 68% increase in 2023 net profit on Wednesday buoyed by its transportation, banking and financial services assets.
ICD, which owns the Emirates airline and holdings in companies such as Dubai lender Emirates NBD (ENBD.DU), opens new tab, Emaar Properties and the Emirates National Oil Company, posted a record high net profit of 60.8 billion dirhams ($16.56 billion).
About 10.4 billion dirhams was attributable to non-controlling interests.
Strong regional economic momentum and increased competitiveness of ICD's businesses led to "higher margins and performance of our portfolio companies operating in the Transportation, Banking and Financial Services, and other segments," Managing Director Mohammed Ibrahim Al Shaibani was quoted as saying in the statement.
Revenue rose 16% to 310.2 billion dirhams, while assets grew by 12% to a new record high of 1.322 trillion dirhams.
The Investment Corporation of Dubai, the government's main investment arm, reported a 68% increase in 2023 net profit on Wednesday buoyed by its transportation, banking and financial services assets.
ICD, which owns the Emirates airline and holdings in companies such as Dubai lender Emirates NBD (ENBD.DU), opens new tab, Emaar Properties and the Emirates National Oil Company, posted a record high net profit of 60.8 billion dirhams ($16.56 billion).
About 10.4 billion dirhams was attributable to non-controlling interests.
Strong regional economic momentum and increased competitiveness of ICD's businesses led to "higher margins and performance of our portfolio companies operating in the Transportation, Banking and Financial Services, and other segments," Managing Director Mohammed Ibrahim Al Shaibani was quoted as saying in the statement.
Revenue rose 16% to 310.2 billion dirhams, while assets grew by 12% to a new record high of 1.322 trillion dirhams.
Gulf bourses dip in early trade; US inflation in focus | Reuters
Gulf bourses dip in early trade; US inflation in focus | Reuters
Stock markets in the Gulf were subdued in early trading on Wednesday amid uncertainty over interest rate cuts by the Federal Reserve this year, following an unexpected improvement in U.S. consumer confidence.
The core personal consumption expenditures price index, the Fed's preferred measure of inflation, is due on Friday, and will be closely watched for clues on the U.S. central bank's policy path.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index (.QSI), opens new tab slid 0.8%, pressured by a 1.7% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 3.1% loss in United Development (UDCD.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab fell 0.4%, weighed down by losses in most sectors. Emaar Properties (EMAR.DU), opens new tab slipped 1.8% and Emirates Central Cooling (EMPOWER.DU), opens new tab dropped 2%.
However, beleaguered contractor Drake & Scull International (DSI.DU), opens new tab surged 21.6% to 0.303 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged 0.1% lower with Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 3.5% and Aldar Properties (ALDAR.AD), opens new tab, the emirate's biggest developer, sliding 1.3%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, with most of its constituents posting losses, led by the utilities, IT and industry stocks.
ACWA Power (2082.SE), opens new tab slipped 2.3% and Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, dropped 1.2%.
Stock markets in the Gulf were subdued in early trading on Wednesday amid uncertainty over interest rate cuts by the Federal Reserve this year, following an unexpected improvement in U.S. consumer confidence.
The core personal consumption expenditures price index, the Fed's preferred measure of inflation, is due on Friday, and will be closely watched for clues on the U.S. central bank's policy path.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari benchmark index (.QSI), opens new tab slid 0.8%, pressured by a 1.7% drop in Qatar Islamic Bank (QISB.QA), opens new tab and a 3.1% loss in United Development (UDCD.QA), opens new tab.
Dubai's benchmark stock index (.DFMGI), opens new tab fell 0.4%, weighed down by losses in most sectors. Emaar Properties (EMAR.DU), opens new tab slipped 1.8% and Emirates Central Cooling (EMPOWER.DU), opens new tab dropped 2%.
However, beleaguered contractor Drake & Scull International (DSI.DU), opens new tab surged 21.6% to 0.303 dirham against a reference price of 0.25 dirham. The stock resumed trading on Wednesday, following a suspension for restructuring of more than five years and losses dating back to 2015.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab edged 0.1% lower with Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab declining 3.5% and Aldar Properties (ALDAR.AD), opens new tab, the emirate's biggest developer, sliding 1.3%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, with most of its constituents posting losses, led by the utilities, IT and industry stocks.
ACWA Power (2082.SE), opens new tab slipped 2.3% and Al Rajhi Bank (1120.SE), opens new tab, the world's largest Islamic lender, dropped 1.2%.