#UAE’s Mubadala Seeks Change at European Startups to Boost Return - Bloomberg

UAE’s Mubadala Seeks Change at European Startups to Boost Return - Bloomberg

Abu Dhabi’s Mubadala Investment Co. is taking an increasingly active approach to the European startups it backs as it seeks to improve returns, according to people familiar with the matter.

Since the start of this year, at least four companies in Mubadala’s European portfolio have undergone either major structural change, refinancing, or a replacement of leadership, coinciding with a global chill in the sector.

Mubadala’s head of ventures, Ibrahim Ajami, has been on a mission since 2019 to establish the investor, owned by Abu Dhabi’s $300 billion sovereign wealth fund, as one of the world’s premier venture capital players.

Yet after the fizz around startups deflated after the pandemic, the fund needs to show it hasn’t overpaid for firms, the people said, who asked not to be named discussing the strategy shift.

“Like any other fund, Mubadala has a return expectation,” Lawrence Leuschner, chief executive officer at Mubadala-backed Tier Mobility told Bloomberg News. “In downturn times like 2023 to 2024, Mubadala is also concerned with recovering investments made at a high price in 2021 to 2022.”

#Saudi Firm in Talks to Buy Caterpillar’s South African Partner - Bloomberg

Saudi Firm in Talks to Buy Caterpillar’s South African Partner - Bloomberg

Saudi Arabia’s Zahid Group is in talks to acquire an African distributer of Caterpillar Inc.’s equipment, according to people with knowledge of the matter.

South Africa-based Barloworld Ltd., which is valued at about 16.4 billion rand ($886 million), in April said it was in discussions that could effect its share price. It didn’t give details.

While talks are ongoing, there is no guarantee that a deal will be concluded, said the people, who asked not to be identified because the discussions are private. Zahid and Barloworld declined to comment.

Middle Eastern firms have increasingly been seeking investments in Africa, jockeying for influence with established players like China and France. ACWA Power, a Riyadh-based company, has signed a memorandum of understanding to invest $10 billion in South Africa’s renewables industry over the next ten years, while DP World, the Dubai-based logistics company operates nine ports on the continent.


The Saudi group, a distributor of heavy equipment machinery in the Middle Eastern nation, started buying shares of Barloworld four years ago. One of its units, Zahid Tractor and Heavy Machinery Co., owns 18.9% of the South African company.

Barloworld’s shares reversed losses to close 4.7% higher in Johannesburg on Tuesday even as the benchmark stock index dropped 0.2%.

The South African company is the official Caterpillar dealer in several African countries including Zambia, the Democratic Republic of Congo, Malawi, Angola and South Africa.

A deal could potentially also see Barloworld be taken private, the people said.

Most Middle Eastern markets rebound as Fed calms investor nerves | Reuters

Most Middle Eastern markets rebound as Fed calms investor nerves | Reuters

Most stock markets in the Middle East rebounded on Tuesday, clawing back some of their losses from the previous session when fears of a possible U.S. recession spooked investors, as comments from the Federal Reserve officials soothed their nerves.

San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is "extremely important" for the central bank to prevent the labour market from tipping into a downturn.

Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.

The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025. FEDWATCH

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 finished 1.5% higher, led by a 9.9% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.

Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab rose 1.5%, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.

Dubai's main share index (.DFMGI), opens new tab jumped 2.3%, a day after falling more than 4%, with top lender Emirates NBD (ENBD.DU), opens new tab gaining 3.3%.

In Abu Dhabi, the index (.FTFADGI), opens new tab gained 1.2%, driven by a 2.1% rise in the country's biggest lender First Abu Dhabi Bank (FAB.AD), opens new tab.

The Qatari benchmark (.QSI), opens new tab, however, eased 0.1%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed 1.3% higher.

Egypt's fuel subsidies saw a 31% annual increase in the 2023/24 financial year, reaching 165 billion pounds ($3.35 billion), while food subsidies reached 133 billion pounds, a 10% year-on-year increase, Finance Minister Ahmed Kouchouk said on Tuesday.

Most Gulf markets rebound as Fed calms investor nerves | Reuters

Most Gulf markets rebound as Fed calms investor nerves | Reuters

Most stock markets in the Gulf rebounded on Tuesday as comments from the Federal Reserve officials soothed investor nerves, following the previous session's global sell-off on fears of a possible U.S. recession.

San Francisco Federal Reserve Bank President Mary Daly on Monday said it is too soon to know if the July jobs report signals a slowdown or real weakness, but it is "extremely important" for the central bank to prevent the labour market from tipping into a downturn.

Market expectations that the Fed would cut interest rates by 50 basis points at its September meeting remained intact, with futures implying a 71% chance of such an outsized move.

The market has around 100 basis points of easing priced in for this year, and a similar amount for 2025. FEDWATCH

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 2.1%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab jumping 7.1%.

Among other gainers, Saudi Aramco (2222.SE), opens new tab rose 2.2%, after reporting a second-quarter net profit of 109.01 billion riyals ($29.04 billion), beating a company-provided median estimate from 15 analysts of $27.7 billion.

Dubai's main share index (.DFMGI), opens new tab jumped 2.4%, clawing-back some of its losses from Monday when it fell more than 4%. Blue-chip developer Emaar Properties (EMAR.DU), opens new tab advancing 4.9%.

In Abu Dhabi, the index (.FTFADGI), opens new tab was up 1.4%.

The Qatari benchmark (.QSI), opens new tab, however, slipped 0.5%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab losing 1.4%.

#Saudi Aramco's second-quarter profit slips 3% on lower crude output | Reuters

Aramco's second-quarter profit slips 3% on lower crude output | Reuters

Oil giant Saudi Aramco (2222.SE), opens new tab on Tuesday reported a 3.4% fall in second-quarter profit on lower crude volumes and softer refining margins.

Aramco posted second-quarter net income of 109.01 billion riyals ($29.03 billion) in the three months to June 30, beating a company-provided median estimate from 15 analysts of $27.7 billion.

Dividends of $31.1 billion were declared for the second quarter, including $10.8 billion in performance-linked payouts. Aramco introduced the performance-linked dividends last year, on top of a base dividend that is paid regardless of results, an uncommon practice among listed companies.

Aramco said on Tuesday it expects $124.2 billion in total dividends in 2024, roughly in line with previous guidance of $124.3 billion.

The Saudi government directly holds nearly 81.5% of Aramco and relies heavily on the company's payouts, which include royalties and taxes. Saudi's sovereign wealth fund PIF holds another 16% of Aramco and also benefits from its dividends.

Aramco's capital expenditure in the second quarter rose nearly 14% year-on-year to $12.1 billion, partly due to investments to maintain crude maximum sustainable capacity at 12 million barrels per day and expansion of its gas business.

"Aramco remains confident in its forecasts for medium- and long-term demand growth, and the company continues to execute its growth strategy," it said in a statement.

Saudi Arabia, de facto leader of the Organization of the Petroleum Exporting Countries, is pumping roughly 9 million barrels per day (bpd), about three quarters of its capacity. It has made cuts along with other OPEC members and allies including Russia, together known as OPEC+.

OPEC+ has been cutting output by a total of 5.86 million barrels per day, or about 5.7% of global demand, in a series of steps agreed since 2022 to bolster the market amid uncertainty over global demand and rising supply outside the group.

Brent crude was trading at about $77.1 on Tuesday, its lowest level since January, amid concerns about global economic growth. Aramco's shares are down nearly 19% this year, trailing the performance of Western oil majors.

Lower output and prices have pressured Saudi state finances. Last week, the kingdom reported a second quarter deficit of over $4 billion.

To meet its financing needs, the government sold a fresh chunk of Aramco earlier this year, raising $12.35 billion. It has also been one of the most active emerging market debt issuers, raising $17 billion from eurbond sales.

Aramco itself raised $6 billion from bonds last month and the Public Investment Fund (PIF), which is steering a sprawling economic agenda known as Vision 2030 to cut the kingdom's oil reliance, has also raised billions in debt this year.