Gulf bourses end mixed; #Saudi slips | Reuters

Gulf bourses end mixed; Saudi slips | Reuters

Stock markets in the Gulf were mixed on Tuesday amid falling oil prices, while further signs of a sharp U.S. factory slowdown, opens new tab boosted hopes of interest rate cuts from the Federal Reserve this year.

Oil prices, a catalyst for the Gulf's financial markets, declined by 1.4%, with Brent trading at $77.25 a barrel by 1336 GMT.

Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.7% after two straight sessions of gains with all of its constituents posting loss.

ACWA Power(2082.SE), opens new tab fell 2.5% and Saudi Aramco (2222.SE), opens new tab slipped 2.4% to 28.2 riyals per share, its lowest level in more than one year.

Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals.

Separately, growth in non-oil business activity in Saudi Arabia eased in May as new orders rose at the slowest pace in 25 months, a survey showed on Tuesday.

Dubai's benchmark index (.DFMGI), opens new tab eased 0.2% after three straight sessions of gains, dragged down by losses in real estate and industry sectors. The low-cost flyer Air Arabia (AIRA.DU), opens new tab slipped 4.1% and Emaar Properties (EMAR.DU), opens new tab slid 1.1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab was little changed with conglomerate International Holding Co (IHC.AD), opens new tab shedding 0.4% and Abu Dhabi Islamic Bank (ADIB.AD), opens new tab sliding 1.5%, while ADNOC Drilling Co (ADNOCDRILL.AD), opens new tab climbed 3.5%.

The Qatari benchmark index (.QSI), opens new tab was up for a fourth consecutive session to end 0.6% higher, supported by a 3.3% gain in Qatar Navigation (QNNC.QA), opens new tab and a 2.2% increase in Qatar Gas Transport (QGTS.QA), opens new tab.

Meanwhile, state-owned energy giant QatarEnergy has entered into 10-year naphtha supply agreement with Japan's Idemitsu Kosan.

Markets are now pricing in a nearly 62% chance of the Fed cutting rates in September, up from about 53% before manufacturing data was released.

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 (.EGX30), opens new tab was up 0.5%, snapping its six session losing-streak. Eastern Company (EAST.CA), opens new tab rose 3% and EFG Holding (HRHO.CA), opens new tab advanced 3.4%.

Egypt is targeting $30 billion in foreign direct investment in the 2024/25 fiscal year starting July 1, a budget statement showed on Monday.

Exclusive: #Qatar sovereign fund agrees to buy 10% stake in China asset manager, sources say | Reuters

Exclusive: Qatar sovereign fund agrees to buy 10% stake in China asset manager, sources say | Reuters

Qatar's sovereign wealth fund has agreed to buy a 10% stake in China's second-largest mutual fund company, two sources said, underscoring Beijing's increasing ties with the Middle East amid rising tensions with the West.

Qatar's proposed investment in China Asset Management Co (ChinaAMC) comes amid a flurry of activities between China and Gulf countries to deepen political, economic and financial ties, as geopolitical tensions heighten around the Gaza War and the Russia-Ukraine conflict.

China has become one of the major importers of liquefied natural gas (LNG) from the Middle East, firming up ties with Doha as the nation pushes for a massive production expansion project.

Middle East sovereign wealth funds have invested $7 billion in China since June last year, five times the amount seen during the previous 12 months, according to industry data provider Global SWF.

The Qatar Investment Authority (QIA) has agreed to buy the stake in ChinaAMC from investment firm Primavera Capital, said the sources who have knowledge of the situation.

Most Gulf markets muted on falling oil prices | Reuters

Most Gulf markets muted on falling oil prices | Reuters

Most stock markets in the Gulf were subdued in early trading on Tuesday on falling oil prices as traders worried about supply ticking up later in the year amid signs of weakening U.S. demand.

Oil prices, a catalyst for the Gulf's financial markets, declined more than 1%, with Brent trading at $77.34 a barrel by 0800 GMT.

OPEC+ on Sunday agreed to extend most of their oil output cuts into 2025 but left room for voluntary cuts from eight members to be gradually unwound from October.

Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.7%, dragged down by losses in most sectors. Saudi National Bank (1180.SE), opens new tab, the kingdom's largest lender, dropped 2% and ACWA Power (2082.SE), opens new tab slid 1.1%.

The private utility firm, ACWA, has signed a share purchase agreement to sell 30% of its stake in Petro-Rabigh's IWSPP power plant to Hassan Investment for 844 million riyals ($225.04 million).

Among other decliners, Saudi Aramco (2222.SE), opens new tab shed 0.9% in early trading.

Elsewhere, Sweden's Seventh AP Fund has blacklisted Aramco and six other companies from its portfolio all due to large-scale operations within oil extraction or coal production.

Dubai's benchmark stock index (.DFMGI), opens new tab was down 0.3%, pressured by losses in industry, real estate and consumer discretionary sectors with tolls operator Salik Company (SALIK.DU), opens new tab, (SALIK.DU), opens new tab dropping 2.1% and Emaar Properties (EMAR.DU), opens new tab sliding 1.2%.

Meanwhile, the blue-chip developer Emaar has announced 1.5 billion dirhams ($408.45 million) investment to expand Dubai Mall, introducing 240 new luxury retail and dining options.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab eased 0.2%, with the conglomerate International Holding Company (IHC.AD), opens new tab shedding 0.5% and Abu Dhabi Islamic Bank (ADIB.AD), opens new tab sliding 1.3%.

The Qatari benchmark index (.QSI), opens new tab edged up 0.5%, supported by a 0.2% rise in Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, and a 0.7% gain in Industries Qatar (IQCD.QA), opens new tab.

#UAE seeks ‘marriage’ with US over artificial intelligence deals

UAE seeks ‘marriage’ with US over artificial intelligence deals

The United Arab Emirates is seeking a “marriage” with the US over artificial intelligence as the Gulf state hopes to use its petrochemical wealth to become a global superpower in developing the cutting-edge technology. 

The UAE’s AI minister Omar Sultan Al Olama told the Financial Times that a recent deal with Microsoft to acquire a $1.5bn stake in Abu Dhabi’s commercial AI champion G42 was only the start of greater tech collaboration between the two countries. 

That deal, which followed months of negotiations between US and UAE officials, led to G42’s promise that it would dump Chinese systems as the US seeks to maintain dominance over AI. 

“Now you’re going to see the outcomes of that marriage, if I may use that word, between both G42 and Microsoft, but also the UAE and the United States,” said Al Olama. “When you look at the frontier technology, at the most cutting edge, that needs to be in co-ordination with the US players and there needs to be reassurances that are given to the US.” 

Fuelled by sovereign wealth funds worth about $2tn, the UAE’s AI ambitions have emerged into sharper focus this year as it tries to lower its economic dependence on fossil fuels in part by positioning itself as a global AI hub.

Russian Commodities Firms Look Beyond the #UAE to #Oman For Trade - Bloomberg

Russian Commodities Firms Look Beyond the UAE to Oman For Trade - Bloomberg

When Russian President Vladimir Putin takes the stage at his annual forum in St. Petersburg this week, his country’s business ties with a lower-key Gulf state will be on full display.

Oman, a sultanate that’s home to some 5 million people, was awarded the honorary status of guest nation for this year’s summit. The distinction underscores a deepening economic relationship since Russia’s invasion of Ukraine in February 2022.

While the US has sanctions on Russia, countries including the United Arab Emirates and Oman haven’t imposed their own. Oman has sometimes been dubbed the Switzerland of the Middle East for its helpful role on sensitive diplomatic disputes — including talks that led to the 2015 Iran nuclear deal.

The increasing Russian-Omani business relations now align with Muscat’s longstanding neutrality. They also come at a time when the allure of places like Dubai — one of the early magnets for Russians after the invasion — has been dimming for many.

Some Russian businesses have considered new jurisdictions as the cost of living in glitzy Dubai has surged and its banks have been facing greater pressure to get stricter in enforcing US sanctions. Meanwhile, Oman’s crude reserves also pale in comparison to many Middle Eastern states and it can benefit from external investments.

#Saudi IPOs Mint New Billionaires Amid MBS's Push To Lower Reliance on Oil - Bloomberg

Saudi IPOs Mint New Billionaires Amid MBS's Push To Lower Reliance on Oil - Bloomberg

Saudi Arabia has long churned out fortunes built on oil and the business surrounding it. That’s changing dramatically as new business empires boom.

A hospital group is set to become the kingdom’s biggest listing of the year, turning its two top shareholders into billionaires. Brothers Mazen and Ammar Fakeeh, the sons of the physician who founded the Dr. Soliman Abdul Kader Fakeeh Hospital Co., will have a combined fortune of at least $2.5 billion after the sale, while their sister Manal will be worth some $600 million, according to the Bloomberg Billionaires Index.

It’s the latest example of rapid wealth creation in the Saudi health-care industry, which has already given the kingdom its second-richest person. Crown Prince Mohammed bin Salman’s push to make the economy less dependent on oil and turn Riyadh into another financial hub has led to a boom in initial public offerings that shows no sign of abating.

“Health care remains a key target for long-term privatization,” said Christine Kalindjian, an analysts at Arqaam Capital, adding that the kingdom aims to become self-sufficient in areas including generic drugs. “Family businesses line up to list stakes.”

Emirates REIT posts solid growth in Q1; NAV surges 38%

Emirates REIT posts solid growth in Q1; NAV surges 38%

Equitativa, the largest real estate investment trust manager in GCC, has announced that the Emirates REIT, which is being managed by the firm, has reported robust growth for the first quarter with its net asset value surging by 38% year-on-year to close at $525 million, up from $380 million last year, which translates to a NAV per share of $1.64.

Announcing the financial results for the three-month period ended March 31, 2024 for Emirates REIT, the Emirati group said the total assets reached $1.073 billion, up 17% year-on-year from $917 million in Q1 2023.

During the past 12 months, Emirates REIT increased occupancy significantly across its portfolio, while at the same time increasing rental rates.

It registered a y-o-y growth of 15% in total property income which soared to $19.7 million for Q1 2024 when compared to $17.2 million last year, thanks to the continued increasing occupancy level and improvement in rental rates.

For the three-month period, Emirates REIT's net property income rose 17% to hit $16.6 million compared to $14.2 million in Q1 2023, said a statement from Equitativa.

It recorded an increase of 22% in operating profit which rose to $12.3 million for Q1 2024, up from $10.1 million in Q1 2023.