Aramco to buy 50% of Air Products Qudra's blue hydrogen business | Reuters

Aramco to buy 50% of Air Products Qudra's blue hydrogen business | Reuters

Saudi oil giant Aramco (2223.SE), opens new tab has signed final agreements to buy 50% of the blue hydrogen industrial gases business of Air Products Qudra (APQ), it said on Tuesday, continuing the kingdom's drive to become a major hydrogen producer.

Financial details of the transaction for Blue Hydrogen Industrial Gases Company (BHIG) were not disclosed, but Aramco said the deal includes options for it to buy hydrogen and nitrogen.

APQ is a joint venture between U.S. industrial gases producer Air Products and Qudra Energy, a Saudi start-up set up in 2017.

Saudi Arabia, as well as some of its neighbours, are making big bets on hydrogen, spending billions of dollars to get a head start in the race to become a top supplier of what they see as a fuel of the future.

The kingdom wants to be the world's biggest supplier of hydrogen, Saudi Energy Minister Prince Abdulaziz bin Salman al-Saud said in 2021.

The push is part of a vast economic agenda to cut the top oil exporter's reliance on crude, spearheaded by its sovereign wealth fund, the Public Investment Fund (PIF).

Saudi Arabia had already signed off on an $8.4 billion green hydrogen plant being built by NEOM Green Hydrogen Company, a joint venture between Air Products, ACWA Power and NEOM. PIF fully owns NEOM, a planned futuristic city in the desert, and has a 44.16% stake in ACWA Power.

IMF revises #Saudi GDP growth down on oil cuts | Reuters

IMF revises Saudi GDP growth down on oil cuts | Reuters

The International Monetary Fund on Tuesday revised downwards Saudi Arabia's economic growth by nearly one percentage point, mainly due to oil production cuts.

The revision was the biggest among major economies and dragged down the rest of the Middle East and North Africa region, which is projected to grow 2.2% this year, a downward revision of half a percentage point from three months ago, IMF projections in its World Economic Outlook showed.

Saudi Arabia is in the midst of a massive economic overhaul known as Vision 2030 aimed at ending its reliance on oil. Its sovereign wealth fund, the Public Investment Fund (PIF), is spearheading the effort that has seen billions spent on everything from electric vehicles to sports and futuristic cities in the desert.

Reuters reported in May the PIF is weighing a reorganisation that includes reprioritising projects and reviewing some expenses.

Saudi gross domestic product growth is projected at 1.7% this year, down 0.9 percentage points from the IMF's forecast in April. GDP is seen growing 4.7% in 2025, a downward revision of 1.3 percentage points from April, the IMF said.

Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), has led the group and allies including Russia, together known as OPEC+, in curbing oil output to support the oil market.

OPEC+ members are currently cutting output by a total of 5.86 million barrels per day (bpd), or about 5.7% of global demand.

Last month, the group agreed to begin phasing out 2.2 million bpd of cuts over a year starting from October.

Gulf bourses end mixed on US rate cut hopes, falling oil | Reuters

Gulf bourses end mixed on US rate cut hopes, falling oil | Reuters

Stock markets in the Gulf ended mixed on Tuesday as comments from Federal Reserve Chair Jerome Powell boosted bets for a September rate cut, although the a decline in oil prices weighed on investor sentiment.

Powell said on Monday the three U.S. inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

Markets have now fully priced in a quarter-point rate cut from the U.S. central bank in September, with a total easing of 68 basis points (bps) expected by the end of the year. 

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.

Saudi Arabia's benchmark index (.TASI), opens new tab advanced 1.1%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab rising 2.3% and ACWA Power (2082.SE), opens new tab increasing 3.8%.

In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.1%.

Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 2.6% fall in toll operator Salik Co (SALIK.DU), opens new tab.

The Qatari benchmark (.QSI), opens new tab closed flat.

Crude prices - a catalyst for the Gulf's financial markets - declined more than 1% on worries of a slowing Chinese economy crimping demand.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab dropped 0.4%, weighed down by a 6.8% decline in El Sewedy Electric Co (SWDY.CA), opens new tab.

The Central Bank of Egypt (CBE) is expected to keep its overnight interest rates steady when its monetary policy committee meets on Thursday as it works to bring down inflation, according to a poll of analysts.

Goldman Joins Rivals in Setting Up New Mideast-Focused Fund - Bloomberg

Goldman Joins Rivals in Setting Up New Mideast-Focused Fund - Bloomberg

Goldman Sachs Group Inc. is working on raising a Middle East-focused fund and hired a longtime JPMorgan Chase & Co. banker to run it, according to people familiar with the matter.

The Wall Street bank has held talks with investors in the region about raising money for the open-ended fund, the people said, asking not to be named as the information isn’t public. Talks are ongoing and the fund’s final size hasn’t been decided yet, they said.

“We are continuing to expand our presence in Saudi Arabia across divisions,” Fadi Abuali, co-chief executive officer of the firm’s Middle East and North Africa business, said in a statement. A spokesperson declined to give further details on the fund.

With the move, Goldman joins a raft of rivals across the industry in raising Middle East-focused funds. That marks a shift for the giants of the asset management industry, who’ve long flocked to the region to court sovereign wealth funds and raise money that they would then use to invest around the world.

Now, under pressure from the sovereign funds, they’re increasingly looking to raise that same money and deploy it within the region.

Brookfield Asset Management Ltd., for instance, has explored raising separate pools of capital to invest in the Middle East, while Investcorp Holdings, the region’s biggest alternative asset manager, has announced it will set up a $1 billion investment vehicle backed by Beijing’s sovereign wealth fund that is meant to invest in companies across the Persian Gulf as well as China. BlackRock Inc. is seeking to invest in the Middle East, backed by $5 billion from Saudi Arabia’s sovereign wealth fund.

Habib Saikaly is joining Goldman as head of the bank’s fundamental equity business across the Middle East and North Africa and is expected to oversee the fund’s development, people familiar with the matter said. A 13-year veteran of JPMorgan, Saikaly will report to Basak Yavuz and Hiren Dasani, the co-heads of Goldman’s emerging market equity division, for the new role, the people said.

Goldman’s fresh push in the Middle East comes only months after becoming the first Wall Street bank to secure a license in Saudi Arabia to set up its regional headquarters there. Other major banks are also stepping up efforts to expand in the kingdom which is in the middle of an ambitious economic reform program.

#UAE Hotel Group Hires Citi, First #AbuDhabi Bank for Catering Unit IPO - Bloomberg

UAE Hotel Group Hires Citi, First Abu Dhabi Bank for Catering Unit IPO - Bloomberg

Abu Dhabi National Hotels has picked banks for a planned initial public offering of its catering business, joining a busy pipeline of new share sales in the Middle Eastern capital.

The owner of hotels including the Ritz-Carlton and Park Hyatt in Abu Dhabi has tapped Citigroup Inc. and First Abu Dhabi Bank to work on the listing of ADNH Catering, the people said, asking not to be identified as the information isn’t public. The share sale could raise about $300 million to $400 million, one of the people said.

Details of the offering such as size and timing are still preliminary and subject to change, the people said.

Representatives for FAB and Citi declined to comment. ADNH didn’t respond to requests for comment.

A wave of listing activity in the Persian Gulf, which gathered steam in late 2021, has shown no signs of stopping as governments have sold stakes in state-owned businesses to reduce their reliance on the energy sector amid higher oil prices.

Likely IPOs in the United Arab Emirates’ capital include a potential offering of Abu Dhabi flag carrier Etihad Airways and a listing of hypermarket chain LuLu Group International that could be one of the biggest in the Middle East this year.

ADNH Catering is the UAE’s largest provider of food services, cleaning and support services, and manpower supply, according to its website. It serves establishments including hospitals, workplaces, universities and schools.

ADNH owns 12 hotels in the UAE and manages three others, according to its website. It generated revenue of 1.63 billion dirhams ($444 million) and a profit of 422.5 million dirhams in 2023.

#Dubai's Shuaa Capital pivots to Q1 net loss of $27mln

Dubai's Shuaa Capital pivots to Q1 net loss of $27mln

Dubai-based investment bank Shuaa Capital made a net loss attributable to owners of 87.19 million dirhams ($27 million) in the three months to 31 March 2024.

This compares with a net profit of AED 14.7 million in the year-ago period.

As of Q1, the investment bank's accumulated loss was AED 916 million. The ratio of accumulated loss to capital was 36.12%, it said on Dubai Financial Market on Tuesday.

Revenue for Q1 was AED 30.2 million versus AED 59.7 million in the year-ago period.

Accumulated losses are mainly due to fair value losses because of impairment, recognition of a deferred tax liability due to the implementation of corporate tax law in the UAE, receivables write-off associated with a revision of land valuation in the UAE, etc.

BlackRock-led investors in Aramco pipelines hire banks for bond sale | Reuters

BlackRock-led investors in Aramco pipelines hire banks for bond sale | Reuters

BlackRock-led (BLK.N), opens new tab investors in Saudi Aramco's (2223.SE), opens new tab gas pipelines network have hired banks to arrange investor meetings ahead of a potential sale of bonds, a bank document showed on Tuesday, to refinance a loan that backed their stake purchase.

The investors had in 2021 taken a 49% stake in Aramco Gas Pipelines Co in a $15.5 billion lease-and-leaseback agreement.

They are now issuing amortising bonds to continue refinancing the $13.4 billion bridge loan that backed the deal.

Greensaif Pipelines Bidco, the debt issuer indirectly owned by BlackRock and Hassana Investment Co, hired JPMorgan and Standard Chartered to arrange fixed income investor meetings starting on Tuesday.

A sale of 12- and 18-year U.S. dollar-denominated amortising bonds will follow, subject to market conditions, the document from one of the banks arranging the sale showed. The tranches have weighted average lives of 10 and 14.5 years, respectively.

In February last year, Greensaif raised $4.5 billion by selling amortising bonds.
BlackRock and its affiliates own 77.2% of Greensaif, while the rest is owned by Hassana, the investment arm of Saudi Arabia's General Organization of Social Insurance.

A similar lease-and-leaseback deal in 2021 saw Aramco agree to sell a 49% stake in its oil pipelines network to a consortium led by U.S.-based EIG Global Energy Partners for $12.4 billion.

Most Gulf markets gain on US rate cut optimism | Reuters

Most Gulf markets gain on US rate cut optimism | Reuters

Major stock markets in the Gulf rose in early trade on Tuesday as comments from Federal Reserve Chair Jerome Powell boosted bets for a September rate cut, while investors awaited more U.S. economic data for monetary policy cues.

Powell said on Monday the three U.S. inflation readings over the second quarter of this year "add somewhat to confidence" that the pace of price increases is returning to the Fed's target in a sustainable fashion, remarks that suggest a turn to interest rate cuts may not be far off.

Markets have now fully priced in a quarter-point rate cut from the U.S. central bank in September, with a total easing of 68 basis points (bps) expected by the end of the year.

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.

Saudi Arabia's benchmark index (.TASI), opens new tab added 0.3%, helped by a 2.4% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

Dubai's main share index (.DFMGI), opens new tab added 0.1%, with sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab gaining 1.2%.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 0.1%, led by a 0.3% increase in the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab.

Meanwhile, the Qatari benchmark (.QSI), opens new tab lost 0.2%, led by a 0.3% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.