Saudis May Ease Tax Rules to Boost Appeal of Bonds to Foreigners - Bloomberg
Saudi Arabia laid out a series of steps it plans to take to boost its debt capital market, including a possible easing in taxes it hopes will make local corporate bonds more appealing to foreign investors.
The Capital Market Authority is considering eliminating a 5% withholding tax on interest payments, which it said is “unappealing” and “discouraging” to investment, according to a report outlining its strategy for developing Saudi Arabia’s debt capital market.
It also wants to simplify the regulatory process for debt offerings so it’s less costly and timely for companies to issue bonds and will look at organizing trading, settlement and clearing in foreign currencies.
The initiatives are all part of Saudi Crown Prince Mohammed bin Salman’s economic transformation plan, which calls for establishing advanced capital markets, in addition to building out various new industries like tourism and semiconductors that’ll help diversify the kingdom’s revenue streams.
While the equity market has been a point of strength — thanks in part to a thriving environment for initial public offerings — debt is still in its infancy.
CMA said the local market for corporate debt has grown by about 8% a year since 2019, though most of that is down to more unlisted issuance rather than public offerings.
It’s hoping steps like ditching the withholding tax will broaden the investor base, which is currently dominated by banks, to include more individuals and foreigners.
This week’s secondary offering of shares in oil giant Saudi Aramco may be a sign Saudi Arabia’s markets are starting to appeal more broadly to investors abroad. Foreigners were allocated about 60% of the shares on offer, marking a turnaround from the oil giant’s 2019 listing that drew mostly local interest.
Wednesday 12 June 2024
#UAE’s NMC Healthcare to explore IPO, sale of business as part of strategic review
UAE’s NMC Healthcare to explore IPO, sale of business as part of strategic review
The UAE-based hospital operator NMC Healthcare group (NMC) has appointed Rothschild & Co. to advise on its strategic restructuring initiatives, including a potential initial public offering (IPO) and a sale of the business.
A second financial advisor will be appointed in due course, a statement said on Wednesday.
While the review of strategic alternatives is conducted, Rothschild & Co will also respond to market enquiries on behalf of NMC Healthcare.
NMC, a private healthcare provider founded by Indian entrepreneur B.R. Shetty, was placed in administration in 2020 after it disclosed more than $4.4 billion in debt. A report from short seller Muddy Waters in December 2019 alleged that NMC, which used to be listed in London, had inflated the value of its assets, and understated its debt.
In the subsequent rounds of restructuring, overseen by the Abu Dhabi Global Market courts, 34 core NMC companies were allowed to exit administration.
The group named David Hadley as the new CEO, constituted a new board, and named a new auditor, PricewaterhouseCoopers Limited Partnership.
As recently as March 2024, the group signed an out of court settlement with the UAE’s Dubai Islamic Bank to resolve all litigation between them and those related to third parties worldwide.
The healthcare group has 85 hospitals, speciality clinics and medical facilities.
The UAE-based hospital operator NMC Healthcare group (NMC) has appointed Rothschild & Co. to advise on its strategic restructuring initiatives, including a potential initial public offering (IPO) and a sale of the business.
A second financial advisor will be appointed in due course, a statement said on Wednesday.
While the review of strategic alternatives is conducted, Rothschild & Co will also respond to market enquiries on behalf of NMC Healthcare.
NMC, a private healthcare provider founded by Indian entrepreneur B.R. Shetty, was placed in administration in 2020 after it disclosed more than $4.4 billion in debt. A report from short seller Muddy Waters in December 2019 alleged that NMC, which used to be listed in London, had inflated the value of its assets, and understated its debt.
In the subsequent rounds of restructuring, overseen by the Abu Dhabi Global Market courts, 34 core NMC companies were allowed to exit administration.
The group named David Hadley as the new CEO, constituted a new board, and named a new auditor, PricewaterhouseCoopers Limited Partnership.
As recently as March 2024, the group signed an out of court settlement with the UAE’s Dubai Islamic Bank to resolve all litigation between them and those related to third parties worldwide.
The healthcare group has 85 hospitals, speciality clinics and medical facilities.
Mideast Stocks: Most Gulf shares slip as Fed meet in focus
Mideast Stocks: Most Gulf shares slip as Fed meet in focus
Most stock markets in the Gulf ended lower on Wednesday as investors turned cautious ahead of the Federal Reserve's rate decision and interest rate projections due later in the day. Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark stock index was down for a third day to fall 1.1%, with almost all sectors in the red. Saudi National Bank, the kingdom's largest lender, lost 1.5% and utility firm ACWA Power declined 4.3%. ACWA said on Tuesday it planned to raise 7.125 billion riyals ($1.90 billion) through a rights issue. Shares of the staffing company Saudi Manpower Solutions Co jumped 20.7% to 9.05 riyals compared to its IPO price of 7.50 riyals per share in its market debut.
The Abu Dhabi benchmark index slipped 0.8% after three straight sessions of gains, with most of its constituents posting losses. The conglomerate International Holding Co slid 1.3%, the steepest intraday fall in nearly two years.
Alef Education, an edu-tech firm, dropped 12.6% to 1.18 dirham compared with its IPO price of 1.35 dirham per share in its market debut.
Most stock markets in the Gulf ended lower on Wednesday as investors turned cautious ahead of the Federal Reserve's rate decision and interest rate projections due later in the day. Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Saudi Arabia's benchmark stock index was down for a third day to fall 1.1%, with almost all sectors in the red. Saudi National Bank, the kingdom's largest lender, lost 1.5% and utility firm ACWA Power declined 4.3%. ACWA said on Tuesday it planned to raise 7.125 billion riyals ($1.90 billion) through a rights issue. Shares of the staffing company Saudi Manpower Solutions Co jumped 20.7% to 9.05 riyals compared to its IPO price of 7.50 riyals per share in its market debut.
The Abu Dhabi benchmark index slipped 0.8% after three straight sessions of gains, with most of its constituents posting losses. The conglomerate International Holding Co slid 1.3%, the steepest intraday fall in nearly two years.
Alef Education, an edu-tech firm, dropped 12.6% to 1.18 dirham compared with its IPO price of 1.35 dirham per share in its market debut.
Dubai's benchmark stock index retreated 0.7%, after gains in the previous session, with most sectors in the red. Emirates NBD, the emirate's largest lender, lost 1.5% and blue-chip developer Emaar Properties declined 1.2%.
The Qatari benchmark index rose 0.2%, extending its gain to a tenth session, the longest rally in nearly six months. Qatar National Bank, the region's largest lender, added 0.4% and Qatar Navigation advanced 1.7%.
Outside the Gulf, Egypt's blue-chip index was up for a third consecutive session to end 0.2% higher, aided by a 1.9% gain in Talaat Mostafa and a 3.4% rise in Orascom Construction.
The Qatari benchmark index rose 0.2%, extending its gain to a tenth session, the longest rally in nearly six months. Qatar National Bank, the region's largest lender, added 0.4% and Qatar Navigation advanced 1.7%.
Outside the Gulf, Egypt's blue-chip index was up for a third consecutive session to end 0.2% higher, aided by a 1.9% gain in Talaat Mostafa and a 3.4% rise in Orascom Construction.
Insight: Business boom builds #Qatar- #Saudi entente as Gulf rift fades | Reuters
Insight: Business boom builds Qatar-Saudi entente as Gulf rift fades | Reuters
When Saudi Crown Prince Mohammed bin Salman buckled himself into a Bentley SUV with Qatar's emir at the wheel, it was a moment of camaraderie that followed years of prickly relations - and a chance for his host to show off Doha's gleaming new buildings.
Prince Mohammed's visit to the tiny neighbouring Gulf state in 2021 not only helped bury a bitter political grudge that had rumbled on for three years, it also ignited a rise in Qatar-Saudi business ties that has gathered pace ever since.
His SUV tour of the Qatari capital took in a new 10-lane expressway, a futuristic metro and a 90,000-seat World Cup stadium radiant in gold-coloured cladding - exactly the kind of mega projects the Saudi prince is in a hurry to build back home.
His SUV tour of the Qatari capital took in a new 10-lane expressway, a futuristic metro and a 90,000-seat World Cup stadium radiant in gold-coloured cladding - exactly the kind of mega projects the Saudi prince is in a hurry to build back home.
Local news reports of the leaders' car ride made no mention of MbS's reaction to the sights. But a subsequent burst of new business between Qatari and Saudi companies -- from railways, to weapons and even a project to bring snow to the Saudi desert -- suggest his visit helped inspire a turning point in ties.
World faces ‘staggering’ oil glut by end of the decade, energy watchdog warns
World faces ‘staggering’ oil glut by end of the decade, energy watchdog warns
The world faces a “staggering” surplus of oil equating to millions of barrels a day by the end of the decade, as oil companies increase production, undermining the ability of Opec+ to manage crude prices, the International Energy Agency has warned.
The world faces a “staggering” surplus of oil equating to millions of barrels a day by the end of the decade, as oil companies increase production, undermining the ability of Opec+ to manage crude prices, the International Energy Agency has warned.
While demand is forecast to peak before 2030, continued investment by oil producers, led by the US, would by then result in more than 8mn b/d of spare capacity, the IEA wrote in its annual report on the industry released on Wednesday.
This “massive cushion” of extra oil could “upend” the efforts of Opec+ to manage the market and usher in an era of lower prices, the IEA said, adding that the level of spare capacity would be unprecedented outside the coronavirus pandemic.
“Oil companies may want to make sure their business strategies and plans are prepared for the changes taking place,” said Fatih Birol, the agency’s director.
The Paris-based body, founded in the aftermath of the 1970s Arab oil embargoes to advise on energy security, said last year that the world was at “the beginning of the end” of the fossil fuel era. It has said that demand for oil, natural gas and coal would all start to fall before the end of the decade amid the mass rollout of renewable energy and electric vehicles.
Mideast Private Credit Bets Rising ‘Significantly,’ Monroe Says - Bloomberg
Mideast Private Credit Bets Rising ‘Significantly,’ Monroe Says - Bloomberg
Private credit lender Monroe Capital LLC is looking to forge long-term partnerships with investors in the Middle East with its new office in Abu Dhabi.
“The Middle East is the fastest growing market today, with Asia, for private credit investing, because investors in the region have a very long-term investment horizon,” Ted Koenig, the chief executive officer of the Chicago-based firm told Bloomberg TV. “Generally, they are younger economies and they can take more risk.”
State-owned funds in the Gulf have become a driving force behind the breakneck growth of the $1.7 trillion private credit market, even as higher interest rates have started to put pressure on borrowers that binged on debt.
Investors in the region are enthusiastic about the asset class that’s outperformed private equity and public credit, and “allocations are going up significantly,” Koenig said.
Private credit lender Monroe Capital LLC is looking to forge long-term partnerships with investors in the Middle East with its new office in Abu Dhabi.
“The Middle East is the fastest growing market today, with Asia, for private credit investing, because investors in the region have a very long-term investment horizon,” Ted Koenig, the chief executive officer of the Chicago-based firm told Bloomberg TV. “Generally, they are younger economies and they can take more risk.”
State-owned funds in the Gulf have become a driving force behind the breakneck growth of the $1.7 trillion private credit market, even as higher interest rates have started to put pressure on borrowers that binged on debt.
Investors in the region are enthusiastic about the asset class that’s outperformed private equity and public credit, and “allocations are going up significantly,” Koenig said.
#AbuDhabi Seizes Opportunity to Woo Britain’s Tax-Wary Rich - Bloomberg
Abu Dhabi Seizes Opportunity to Woo Britain’s Tax-Wary Rich - Bloomberg
Abu Dhabi has emerged as a magnet for the world’s wealthiest people over the past few years. Their numbers may soon be boosted by Britain’s high net worth individuals seeking to shelter their assets.
The emirate’s financial center is fielding a rush of inquiries from the UK, where the ruling Conservatives have rolled back preferential tax treatment for non-domiciled residents, people familiar with the matter said. The opposition Labour Party has pledged to go even further if they win as expected in elections scheduled for July 4.
The free-zone — Abu Dhabi Global Market — has already been working on a package of incentives, including lifestyle support and visas, to lure finance professionals, Bloomberg News has reported.
In recent weeks, representatives have held meetings in London with some of these individuals, according to the people, who declined to be named as the information is private. Abu Dhabi isn’t solely seeking to lure non-doms, and the goal has been to explain the benefits of a move to a wider swathe of Britain’s wealthy individuals, one of the people said.
“Abu Dhabi continues to attract high net worth individuals from around the globe,” a spokesperson for the free-zone said. “ADGM has developed a robust regulatory framework and ecosystem with progressive regulations based on the direct application of English Common Law, which further enhances the appeal of the UAE capital.”
Abu Dhabi has emerged as a magnet for the world’s wealthiest people over the past few years. Their numbers may soon be boosted by Britain’s high net worth individuals seeking to shelter their assets.
The emirate’s financial center is fielding a rush of inquiries from the UK, where the ruling Conservatives have rolled back preferential tax treatment for non-domiciled residents, people familiar with the matter said. The opposition Labour Party has pledged to go even further if they win as expected in elections scheduled for July 4.
The free-zone — Abu Dhabi Global Market — has already been working on a package of incentives, including lifestyle support and visas, to lure finance professionals, Bloomberg News has reported.
In recent weeks, representatives have held meetings in London with some of these individuals, according to the people, who declined to be named as the information is private. Abu Dhabi isn’t solely seeking to lure non-doms, and the goal has been to explain the benefits of a move to a wider swathe of Britain’s wealthy individuals, one of the people said.
“Abu Dhabi continues to attract high net worth individuals from around the globe,” a spokesperson for the free-zone said. “ADGM has developed a robust regulatory framework and ecosystem with progressive regulations based on the direct application of English Common Law, which further enhances the appeal of the UAE capital.”
#UAE: Financial markets to close for #Eid Al-Adha holiday from June 15 to 18
UAE: Financial markets to close for Eid Al-Adha holiday from June 15 to 18
The Securities and Commodities Authority (SCA) announced today that financial markets will be closed for Eid Al-Adha from Saturday, 15th June, to Tuesday, 18th June.
In a statement, the authority added that trading will resume on Wednesday, 19th June. The statement noted that the Dubai Gold and Commodities Exchange will decide when the holiday starts and ends based on operational requirements and public interest.
This decision follows Circular No. 06 of 2024 issued by the Federal Authority for Government Human Resources regarding the holiday for Arafat Day and Eid Al-Adha for the year 1445 AH.
The announcement was made after consultation and coordination with the Abu Dhabi Securities Exchange and the Dubai Financial Market.
The Securities and Commodities Authority (SCA) announced today that financial markets will be closed for Eid Al-Adha from Saturday, 15th June, to Tuesday, 18th June.
In a statement, the authority added that trading will resume on Wednesday, 19th June. The statement noted that the Dubai Gold and Commodities Exchange will decide when the holiday starts and ends based on operational requirements and public interest.
This decision follows Circular No. 06 of 2024 issued by the Federal Authority for Government Human Resources regarding the holiday for Arafat Day and Eid Al-Adha for the year 1445 AH.
The announcement was made after consultation and coordination with the Abu Dhabi Securities Exchange and the Dubai Financial Market.
Alef Education shares tumble almost 18% in #AbuDhabi debut | Reuters
Alef Education shares tumble almost 18% in Abu Dhabi debut | Reuters
The stock opened flat and then fell to 1.11 dirhams ($0.3022) per share, down almost 18% compared with its initial public offering (IPO) price of 1.35 dirhams.
The shares were trading down 10.4% by around 0731 GMT and at the bottom of Abu Dhabi's benchmark index (.FTFADGI), opens new tab.
Shares in educational technology provider Alef Education (ALEFEDT.AD), opens new tab fell almost 18% in their market debut on the Abu Dhabi stock exchange on Wednesday.
The stock opened flat and then fell to 1.11 dirhams ($0.3022) per share, down almost 18% compared with its initial public offering (IPO) price of 1.35 dirhams.
The shares were trading down 10.4% by around 0731 GMT and at the bottom of Abu Dhabi's benchmark index (.FTFADGI), opens new tab.
Gulf bourses muted in early trade; Fed meet eyed | Reuters
Gulf bourses muted in early trade; Fed meet eyed | Reuters
However, shares of the staffing company Saudi Manpower Solutions Co. (1834.SE), opens new tab jumped 24% to 9.30 riyals compared to its IPO price of 7.50 riyals per share in its market debut.
The Qatari benchmark index (.QSI), opens new tab was up 0.3%, helped by gains in most sectors with Commercial Bank (COMB.QA), opens new tab adding 1.7% and Gulf International Services (GISS.QA), opens new tab rising 3.2%.
Most stock markets in the Gulf were subdued in early trading on Wednesday as investors turned cautious ahead of U.S. consumer price index data for May and the Federal Reserve's rate decision and interest rate projections due later in the day.
Most Gulf currencies are pegged to the dollar and any U.S. monetary policy changes are usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Dubai's benchmark stock index (.DFMGI), opens new tab retreated 0.5%, after the previous session of gains, with most of its constituents losing ground. Low-cost flyer Air Arabia (AIRA.DU), opens new tab slipped 3% and Emaar Properties (EMAR.DU), opens new tab shed 0.8%.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell 0.2%, pressured by a 1.4% drop in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and 3% decline in Multiply Group(MULTIPLY.AD), opens new tab.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab fell 0.2%, pressured by a 1.4% drop in conglomerate Alpha Dhabi Holding (ALPHADHABI.AD), opens new tab and 3% decline in Multiply Group(MULTIPLY.AD), opens new tab.
The investment holding company Multiply's unit Omorfia has acquired Grooming Company Holding (TGCH), a salon and beauty services provider in the UAE.
Among other fallers, Alef Education(ALEFEDT.AD), opens new tab, an edu-tech firm, dropped 8.9% to 1.23 dirham compared with its IPO price of 1.35 dirham per share in its market debut.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.1%, weighed down by losses in most sectors. ACWA Power slipped 3.2% and Middle East Pharmaceutical dropped 1.7%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.1%, weighed down by losses in most sectors. ACWA Power slipped 3.2% and Middle East Pharmaceutical dropped 1.7%.
However, shares of the staffing company Saudi Manpower Solutions Co. (1834.SE), opens new tab jumped 24% to 9.30 riyals compared to its IPO price of 7.50 riyals per share in its market debut.
The Qatari benchmark index (.QSI), opens new tab was up 0.3%, helped by gains in most sectors with Commercial Bank (COMB.QA), opens new tab adding 1.7% and Gulf International Services (GISS.QA), opens new tab rising 3.2%.