Abu Dhabi Investment Firm Lunate Takes On AI Firm G42’s China Fund - Bloomberg
A new investment vehicle in Abu Dhabi has taken over the management of artificial intelligence firm G42’s China-focused fund, according to people familiar with the matter, keeping the assets in the hands of a powerful member of the emirate’s royal family.
The fund, Lunate, plans to hire a small team to help manage what was G42’s 42XFund, an entity with stakes in units of Chinese technology companies including ByteDance Ltd. and JD.com Inc., the people said, asking not to be identified discussing private information.
G42 and Lunate are part of a sprawling empire overseen by United Arab Emirates National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan. The emirate’s move raises questions about sticking to the spirit of a secret deal G42 reached last year with the Biden administration to pivot away from Beijing.
Lunate is a unit of the UAE’s largest listed conglomerate International Holding Co., which is chaired by the Abu Dhabi royal. The $250 billion IHC is majority owned by Sheikh Tahnoon’s private investment firm, Royal Group — the parent company of G42.
A G42 spokesman referred comments to the 42XFund. Representatives there didn’t respond to requests for comment. A spokesperson at Lunate declined to comment. The UAE government didn’t respond to a request for comment made through the foreign ministry.
G42 is seeking to become an AI superpower in the Middle East, and agreed to divest from China following talks with the US Commerce Department — part of a broader effort by Washington to rein in China’s technological prowess and line up support around the world.
The Abu Dhabi firm’s Chief Executive Officer Peng Xiao subsequently pledged to pare back its presence in the Asian country. That underpinned Microsoft Corp.’s move to invest $1.5 billion in G42, a deal that the Biden administration hopes will help the US counter Beijing’s tech investment throughout the Global South.
Officials in Washington have raised concerns about the partnership, Bloomberg News reported this month, including skepticism at the Pentagon that G42 will entirely uncouple from China. It’s not clear exactly what G42 promised to do with its Chinese assets, but Lunate’s involvement raises additional questions about whether the deal aligns with US strategic goals, people familiar with the matter said.
A spokesperson for Microsoft declined to comment.
The web of entities under Sheikh Tahnoon’s control includes sovereign wealth funds Abu Dhabi Investment Authority and ADQ. In a recent filing, IHC revealed it had acquired a controlling stake in G42, though an IHC spokesperson said that deal was subject to regulatory and board approvals and ultimately didn’t materialize.
Lunate has sealed several deals since its inception, including an investment in the glitzy Dubai office tower ICD Brookfield Place. It’s also agreed to buy a 40% stake in Abu Dhabi National Oil Co.’s oil pipeline network from BlackRock Inc. and KKR & Co.
Monday, 8 July 2024
Turkish Sovereign Wealth Fund Weighing Stake Sale in Turkcell - Bloomberg
Turkish Sovereign Wealth Fund Weighing Stake Sale in Turkcell - Bloomberg
Turkey’s sovereign wealth fund is weighing whether to sell its 26.2% stake in Turkcell Iletisim Hizmetleri AS, the country’s biggest telecommunications operator, according to people familiar with the matter.
The board of Turkey Wealth Fund, or TWF, has yet to make a formal decision, the people said, asking not to be named because the talks are private. While informal discussions with potential buyers have taken place, some within the sovereign wealth fund are opposed to a sale because they consider the company a strategic asset, one of the people said. A final decision will likely be made by President Recep Tayyip Erdogan, who leads the fund’s board.
Investors from the Arabian Peninsula and Azerbaijan have expressed interest in purchasing a stake in the company. The fund has approached at least one investment bank about advising on a potential sale but has not issued a formal mandate, some of the people said. TWF and Turkcell declined to comment.
Turkcell shares rose as much as 5.4% to 111.7 liras after the report, the highest level since the company’s IPO in 2000. The stock has risen more than 50% in dollar terms since TWF acquired the stake in 2020, giving the company a $7.3 billion market capitalization.
LetterOne Investment Holdings, an investment firm founded by the Russian billionaire Mikhail Fridman, has a 19.8% stake, and the rest of the shares are traded on Borsa Istanbul and as depository receipts on the New York Stock Exchange.
When TWF bought the stake, it became both the largest shareholder and gained the right to appoint five of the nine members on Turkcell’s board of directors.
Turkcell’s main competitors domestically are Turk Telekomunikasyon AS and Vodafone Group Plc.
The Turkish government established the sovereign fund in 2016 and mandated it to play a major role in making investments deemed too big for the private sector. It holds a number of assets taken over from Turkey’s Treasury, including stakes in state lenders Turkiye Halk Bankasi AS and TC Ziraat Bankasi AS. It also owns stakes in Turkish Airlines and the local stock exchange.
Turkey’s sovereign wealth fund is weighing whether to sell its 26.2% stake in Turkcell Iletisim Hizmetleri AS, the country’s biggest telecommunications operator, according to people familiar with the matter.
The board of Turkey Wealth Fund, or TWF, has yet to make a formal decision, the people said, asking not to be named because the talks are private. While informal discussions with potential buyers have taken place, some within the sovereign wealth fund are opposed to a sale because they consider the company a strategic asset, one of the people said. A final decision will likely be made by President Recep Tayyip Erdogan, who leads the fund’s board.
Investors from the Arabian Peninsula and Azerbaijan have expressed interest in purchasing a stake in the company. The fund has approached at least one investment bank about advising on a potential sale but has not issued a formal mandate, some of the people said. TWF and Turkcell declined to comment.
Turkcell shares rose as much as 5.4% to 111.7 liras after the report, the highest level since the company’s IPO in 2000. The stock has risen more than 50% in dollar terms since TWF acquired the stake in 2020, giving the company a $7.3 billion market capitalization.
LetterOne Investment Holdings, an investment firm founded by the Russian billionaire Mikhail Fridman, has a 19.8% stake, and the rest of the shares are traded on Borsa Istanbul and as depository receipts on the New York Stock Exchange.
When TWF bought the stake, it became both the largest shareholder and gained the right to appoint five of the nine members on Turkcell’s board of directors.
Turkcell’s main competitors domestically are Turk Telekomunikasyon AS and Vodafone Group Plc.
The Turkish government established the sovereign fund in 2016 and mandated it to play a major role in making investments deemed too big for the private sector. It holds a number of assets taken over from Turkey’s Treasury, including stakes in state lenders Turkiye Halk Bankasi AS and TC Ziraat Bankasi AS. It also owns stakes in Turkish Airlines and the local stock exchange.
Bernard Looney plots #AbuDhabi comeback from BP scandal
Bernard Looney plots Abu Dhabi comeback from BP scandal
Former BP chief executive Bernard Looney has met senior figures in the United Arab Emirates, as the Irishman seeks a comeback following a scandal last year over his past relationships with colleagues.
Looney has held talks with Sultan al-Jaber, head of the Abu Dhabi National Oil Company, and with Sheikh Tahnoon bin Zayed al-Nahyan, the UAE’s powerful national security adviser and businessman, according to three people with knowledge of the matter.
The talks have included a discussion about whether Looney could be involved in making private equity-style investments with the backing of the Gulf state, one of the people said. Looney has not discussed a role within Adnoc, that person added.
Adnoc said in a statement to the Financial Times that the company had not held any talks with Looney but did not address whether any private discussions between him and Jaber had taken place. A representative for Looney declined to comment. Sheikh Tahnoon could not be reached for comment.
Looney, who spent his entire career at the British oil major, resigned abruptly last September and was later dismissed for “serious misconduct” over his failure to fully disclose to the board past relationships with colleagues.
Gulf's biggest bank by assets, #Qatar National Bank's H1 net profit up 7%
Gulf's biggest bank by assets, Qatar National Bank's H1 net profit up 7%
Qatar National Bank (QNB), the Gulf's biggest bank by assets, on Monday reported a 7% year-on-year (YoY) increase in net profit for the six months ended 30 June 2024 to 8.2 billion Qatari riyals ($2.2 billion).
Operating income was up 9% on year at QAR 20.1 billion, the lender said in a statement on the Qatar Stock Exchange.
Total assets reached QAR 1.26 billion ($346 billion), an increase of 5% from the year-ago period mainly driven by good growth in loans and advances by 7% to reach QAR 879 billion.
"Diversified customer deposits generation helped to increase customer deposits by 6% to reach QAR 891 billion from 30 June 2023," the bank said.
QNB’s loans to deposits ratio stood at 98.7% as at 30 June 2024.
Capital adequacy ratio (CAR) as of the end of the period was 19.2%; cost to income ratio stood at 22.4%.
The lender's board has proposed an interim cash dividend distribution of 33% or QAR 0.33 per share, the bank's first ever interim dividend. The proposed interim cash dividend distribution is subject to approval by the Qatar Central Bank (QCB).
Qatar National Bank (QNB), the Gulf's biggest bank by assets, on Monday reported a 7% year-on-year (YoY) increase in net profit for the six months ended 30 June 2024 to 8.2 billion Qatari riyals ($2.2 billion).
Operating income was up 9% on year at QAR 20.1 billion, the lender said in a statement on the Qatar Stock Exchange.
Total assets reached QAR 1.26 billion ($346 billion), an increase of 5% from the year-ago period mainly driven by good growth in loans and advances by 7% to reach QAR 879 billion.
"Diversified customer deposits generation helped to increase customer deposits by 6% to reach QAR 891 billion from 30 June 2023," the bank said.
QNB’s loans to deposits ratio stood at 98.7% as at 30 June 2024.
Capital adequacy ratio (CAR) as of the end of the period was 19.2%; cost to income ratio stood at 22.4%.
The lender's board has proposed an interim cash dividend distribution of 33% or QAR 0.33 per share, the bank's first ever interim dividend. The proposed interim cash dividend distribution is subject to approval by the Qatar Central Bank (QCB).
Most Gulf markets gain on US rate cut hopes | Reuters
Most Gulf markets gain on US rate cut hopes | Reuters
Most stock markets in the Gulf ended higher on Monday as investors grew more optimistic about a September U.S. rate cut, ahead of a busy week that will see the release of a key inflation report and Federal Reserve Chair Jerome Powell's testimony.
A slowdown in U.S. jobs on Friday added further to the case for a Fed rate cut in September.
U.S. inflation is easing and the job market has returned to the "tight but not overheated" situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.6% and Saudi Awwal Bank (1060.SE), opens new tab advancing 3.2%.
Fed Chair Jerome Powell will have a chance to offer his outlook when he appears before Congress on Tuesday and Wednesday, while several other Fed officials are speaking this week.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab added 0.3%, led by a gain in top lender Emirates NBD (ENBD.DU), opens new tab and a 2% increase in diversified investment group Dubai Investments (DINV.DU), opens new tab.
In Qatar, the index (.QSI), opens new tab closed 0.3% higher, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.7%, while Qatar National Bank (QNBK.QA), opens new tab (QNB) was up 0.3%.
QNB, the Gulf's biggest lender, beat analyst estimates on Monday after reporting its net profit rose 10.8% in the second quarter from a year earlier.
The Abu Dhabi index (.FTFADGI), opens new tab was down 0.1%.
Crude prices - a key catalyst for the Gulf's financial markets - edged lower after gaining for four weeks as supply disruption worries eased on hopes of a ceasefire deal in Gaza, but the potential impact of Hurricane Beryl on supplies kept the slide in check.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.7%, weighed down by a 1.3% drop in Commercial International Bank (COMI.CA), opens new tab.
Most stock markets in the Gulf ended higher on Monday as investors grew more optimistic about a September U.S. rate cut, ahead of a busy week that will see the release of a key inflation report and Federal Reserve Chair Jerome Powell's testimony.
A slowdown in U.S. jobs on Friday added further to the case for a Fed rate cut in September.
U.S. inflation is easing and the job market has returned to the "tight but not overheated" situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.6% and Saudi Awwal Bank (1060.SE), opens new tab advancing 3.2%.
Fed Chair Jerome Powell will have a chance to offer his outlook when he appears before Congress on Tuesday and Wednesday, while several other Fed officials are speaking this week.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index (.DFMGI), opens new tab added 0.3%, led by a gain in top lender Emirates NBD (ENBD.DU), opens new tab and a 2% increase in diversified investment group Dubai Investments (DINV.DU), opens new tab.
In Qatar, the index (.QSI), opens new tab closed 0.3% higher, with Qatar Islamic Bank (QISB.QA), opens new tab rising 0.7%, while Qatar National Bank (QNBK.QA), opens new tab (QNB) was up 0.3%.
QNB, the Gulf's biggest lender, beat analyst estimates on Monday after reporting its net profit rose 10.8% in the second quarter from a year earlier.
The Abu Dhabi index (.FTFADGI), opens new tab was down 0.1%.
Crude prices - a key catalyst for the Gulf's financial markets - edged lower after gaining for four weeks as supply disruption worries eased on hopes of a ceasefire deal in Gaza, but the potential impact of Hurricane Beryl on supplies kept the slide in check.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.7%, weighed down by a 1.3% drop in Commercial International Bank (COMI.CA), opens new tab.
#Dubai's high-end property sales undented by drop in listings | Reuters
Dubai's high-end property sales undented by drop in listings | Reuters
A total of 190 homes worth an overall $3.2 billion were sold in the six months to end June compared with 189 properties for $3.3 billion in the same period of 2023, according to provisional data from property consultancy Knight Frank.
The total number of deals held up despite a 65.5% year-on-year drop in the number of such luxury homes available on the market in the second quarter, the report showed.
"This is a strong sign of the 'buy-to-hold' buyer profile that has taken root in the market," Faisal Durrani, Knight Frank's head of research for Middle East and North Africa (MENA), was quoted as saying in the report.
The trend suggests international high-net worth individuals "are largely focused on purchasing homes in the city for personal use, rather than to 'flip', which was a defining feature of the previous two market cycles," he added.
Home to the world's tallest tower, the United Arab Emirates' Dubai is the Middle East's biggest tourism and trade hub, attracting a record 17.15 million international overnight visitors last year.
The city-state was quick to reopen after the pandemic. That, together with massive infrastructure spending, generous income tax policies and relaxed social and visa rules, lured thousands of foreigners, including Russians amid war in Ukraine.
Under a 10-year plan known as D33, Dubai is seeking to grow its economy by investing in tourism, turning its local financial centre into one of the top four globally and by attracting foreign capital, including into real estate, with property purchase and rental prices showing no signs of fizzling out.
It is also becoming a preferred wealth hub for many entrepreneurs and rich families in Asia, launching a "family wealth centre" last year to help wealthy individuals and businesses deal with cultural issues and governance.
The Knight Frank report showed palm tree-shaped artificial island Palm Jumeirah was the most sought-after area, recording 21 sales of homes worth $10 million or more in the second quarter, accounting for 26% of sales in the period.
It was followed by Emirates Hills with 10% and the District One area with 7.8% of such deals.
Sales of properties worth $25 million or more jumped 25% in the second quarter compared with the first three months of the year to a total of 15 homes.
Last year Dubai ranked first globally for the number of home sales above $10 million, selling nearly 80% more such properties than second-placed London.
The number of homes worth $10 million or more that were sold in Dubai held steady in the first half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.
A total of 190 homes worth an overall $3.2 billion were sold in the six months to end June compared with 189 properties for $3.3 billion in the same period of 2023, according to provisional data from property consultancy Knight Frank.
The total number of deals held up despite a 65.5% year-on-year drop in the number of such luxury homes available on the market in the second quarter, the report showed.
"This is a strong sign of the 'buy-to-hold' buyer profile that has taken root in the market," Faisal Durrani, Knight Frank's head of research for Middle East and North Africa (MENA), was quoted as saying in the report.
The trend suggests international high-net worth individuals "are largely focused on purchasing homes in the city for personal use, rather than to 'flip', which was a defining feature of the previous two market cycles," he added.
Home to the world's tallest tower, the United Arab Emirates' Dubai is the Middle East's biggest tourism and trade hub, attracting a record 17.15 million international overnight visitors last year.
The city-state was quick to reopen after the pandemic. That, together with massive infrastructure spending, generous income tax policies and relaxed social and visa rules, lured thousands of foreigners, including Russians amid war in Ukraine.
Under a 10-year plan known as D33, Dubai is seeking to grow its economy by investing in tourism, turning its local financial centre into one of the top four globally and by attracting foreign capital, including into real estate, with property purchase and rental prices showing no signs of fizzling out.
It is also becoming a preferred wealth hub for many entrepreneurs and rich families in Asia, launching a "family wealth centre" last year to help wealthy individuals and businesses deal with cultural issues and governance.
The Knight Frank report showed palm tree-shaped artificial island Palm Jumeirah was the most sought-after area, recording 21 sales of homes worth $10 million or more in the second quarter, accounting for 26% of sales in the period.
It was followed by Emirates Hills with 10% and the District One area with 7.8% of such deals.
Sales of properties worth $25 million or more jumped 25% in the second quarter compared with the first three months of the year to a total of 15 homes.
Last year Dubai ranked first globally for the number of home sales above $10 million, selling nearly 80% more such properties than second-placed London.
Most Gulf markets ease on falling oil prices | Reuters
Most Gulf markets ease on falling oil prices | Reuters
Most stock markets in the Gulf were subdued in early trade on Monday after a decline in oil prices, although the increased likelihood of a September rate cut in the U.S. capped further losses.
Crude prices - a catalyst for the Gulf's financial markets - slipped as the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors assessed potential disruptions to U.S. energy supplies from Tropical Storm Beryl.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.2%, led by a 2% fall in aluminum products maker Al Taiseer Group (4143.SE), opens new tab and a 1.4% decline in ACWA Power Co (2082.SE), opens new tab.
Oil giant Saudi Aramco (2222.SE), opens new tab was flat in choppy trade.
The Qatari index (.QSI), opens new tab was down 0.1%, with diversified maritime and logistics firm Qatar Navigation (QNNC.QA), opens new tab retreating 1.5%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab declined 0.3%, weighed down by a 0.3% fall in Qatar National Bank (QNBK.QA), opens new tab, the country's biggest lender.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, helped by a 0.6% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
Separately, the number of homes worth $10 million or more that were sold in Dubai held steady in the first-half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.
Meanwhile, a slowdown in U.S. jobs on Friday added further to the case for a September rate cut by the Federal Reserve.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
U.S. inflation is easing and the job market has returned to the "tight but not overheated" situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.
Most stock markets in the Gulf were subdued in early trade on Monday after a decline in oil prices, although the increased likelihood of a September rate cut in the U.S. capped further losses.
Crude prices - a catalyst for the Gulf's financial markets - slipped as the prospect of a ceasefire deal in Gaza eased geopolitical tensions in the Middle East, while investors assessed potential disruptions to U.S. energy supplies from Tropical Storm Beryl.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.2%, led by a 2% fall in aluminum products maker Al Taiseer Group (4143.SE), opens new tab and a 1.4% decline in ACWA Power Co (2082.SE), opens new tab.
Oil giant Saudi Aramco (2222.SE), opens new tab was flat in choppy trade.
The Qatari index (.QSI), opens new tab was down 0.1%, with diversified maritime and logistics firm Qatar Navigation (QNNC.QA), opens new tab retreating 1.5%.
In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab declined 0.3%, weighed down by a 0.3% fall in Qatar National Bank (QNBK.QA), opens new tab, the country's biggest lender.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, helped by a 0.6% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
Separately, the number of homes worth $10 million or more that were sold in Dubai held steady in the first-half of the year despite a drop in listings, an industry report showed on Monday, as demand from the international ultra-rich stayed strong.
Meanwhile, a slowdown in U.S. jobs on Friday added further to the case for a September rate cut by the Federal Reserve.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
U.S. inflation is easing and the job market has returned to the "tight but not overheated" situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Fed said on Friday.
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