Saudi Arabia Strikes $1 Billion Deal as Aluminum Drive Picks Up - Bloomberg
Saudi Arabia has announced three deals in as many days as the oil-rich kingdom looks to accelerate the expansion of its metals and mining industry.
On Tuesday, Saudi Arabian Mining Co., known as Maaden, said it was buying a 21% stake in Aluminium Bahrain B.S.C. from a Saudi Basic Industries Corp. in a deal worth more than $1 billion. That essentially moves the holding from one state-backed company to another, but it’s also another step toward consolidating the aluminum operations of Bahrain and Saudi Arabia in an enlarged entity that will have Maaden as a major shareholder.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman, has laid out plans for mining and metals to be the so-called “third pillar” of the economy in Vision 2030. That’s being driven by Manara Minerals — which is snapping up overseas assets including 10% of Vale SA’s base metals business — while Maaden has been tasked with growing the domestic industry.
The latest Maaden deal follows closely on two others that have the potential to reshape Saudi Arabia’s influence on the global aluminum trade at a time when Russia’s invasion of Ukraine — as well as supply-chain bottlenecks — are already roiling global markets.
On Sunday, Maaden bought out long-term partner Alcoa Corp. from two aluminum plants in the kingdom, handing over $1.1 billion in cash and stock for the stakes. The logic for the deal soon became apparent, when the following day Maaden said it was exploring a merger of its aluminum assets with Aluminium Bahrain B.S.C., known as Alba.
Maaden said it’s pursuing the deal with Alba that would see it sell its aluminum, bauxite and alumina units to the Bahrain company in exchange for shares in the combined entity.
The companies also agreed to seek a cross-listing of Alba shares on the Saudi stock exchange. The companies signed non-binding heads of terms, and the proposal is pending regulatory approvals.
“This week we have announced a number of transactions that align with our strategic intent to strengthen and expand our business both regionally and internationally, further building mining as the third pillar of the Saudi economy,” Maaden Chief Executive Officer Bob Wilt said.
Maaden and Alba have become major players in the global aluminum industry in recent years, particularly in value-added products that have historically been dominated by a handful of suppliers. The expanded company would be one of the world’s biggest aluminum producers.
Tuesday 17 September 2024
Microsoft, #UAE's AI firm G42 to set up two new centres in #AbuDhabi | Reuters
Microsoft, UAE's AI firm G42 to set up two new centres in Abu Dhabi | Reuters
Microsoft (MSFT.O), opens new tab and United Arab Emirates-based artificial intelligence company G42 will open two centres in Abu Dhabi to work on "responsible" AI initiatives, the companies said on Tuesday.
The UAE, led by government-backed firm G42, is striving to become a global leader in AI and is investing heavily in it to diversify away from oil.
The push comes amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States, as well as Washington's concerns over deepening ties between China and Gulf states over potential technology transfers to Beijing.
The companies said the deal built on their April partnership, under which Microsoft is investing $1.5 billion in the Emirati firm.
The first centre will bring together academic researchers and AI practitioners from the private sector to develop and share best practices in responsible AI.
The other centre will focus on tasks including developing large language models - computer programs that draw from vast amounts of text to generate responses to queries - for "underrepresented languages".
Abu Dhabi sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake hold stakes in G42, whose chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE's national security advisor and the president's brother.
G42 said earlier this year it had divested its investments in China and at the time of the Microsoft partnership, both firms noted that the deal was backed by assurances to the U.S. and UAE governments over security.
Microsoft and G42 said on Tuesday the centres will work to ensure "generative AI models and applications are developed, deployed and used safely."
G42 and its affiliates do not conduct business with any entity listed on a U.S. government list of parties for which Washington maintains restrictions on certain exports, re-exports, or transfers of items, the firms said.
Microsoft (MSFT.O), opens new tab and United Arab Emirates-based artificial intelligence company G42 will open two centres in Abu Dhabi to work on "responsible" AI initiatives, the companies said on Tuesday.
The UAE, led by government-backed firm G42, is striving to become a global leader in AI and is investing heavily in it to diversify away from oil.
The push comes amid rising competition in the region as Qatar and Saudi Arabia pitch themselves as potential AI hubs outside the United States, as well as Washington's concerns over deepening ties between China and Gulf states over potential technology transfers to Beijing.
The companies said the deal built on their April partnership, under which Microsoft is investing $1.5 billion in the Emirati firm.
The first centre will bring together academic researchers and AI practitioners from the private sector to develop and share best practices in responsible AI.
The other centre will focus on tasks including developing large language models - computer programs that draw from vast amounts of text to generate responses to queries - for "underrepresented languages".
Abu Dhabi sovereign wealth fund Mubadala and U.S. private equity firm Silver Lake hold stakes in G42, whose chairman, Sheikh Tahnoon bin Zayed Al Nahyan, is the UAE's national security advisor and the president's brother.
G42 said earlier this year it had divested its investments in China and at the time of the Microsoft partnership, both firms noted that the deal was backed by assurances to the U.S. and UAE governments over security.
Microsoft and G42 said on Tuesday the centres will work to ensure "generative AI models and applications are developed, deployed and used safely."
G42 and its affiliates do not conduct business with any entity listed on a U.S. government list of parties for which Washington maintains restrictions on certain exports, re-exports, or transfers of items, the firms said.
Most Gulf markets retreat ahead of Fed rate cut decision | Reuters
Most Gulf markets retreat ahead of Fed rate cut decision | Reuters
Most stock markets in the Gulf ended lower on Tuesday, ahead of the U.S. interest rate decision that traders are betting may start with an outsized cut.
Investors remain solely focused on the Federal Reserve's two-day policy meeting that concludes on Wednesday, as chances have crept up in the past week in favour of a 50-basis-point rate cut.
Markets are now pricing in a 65% chance of a 50-basis-point cut versus 34% a week ago after media reports revived the prospect of more aggressive easing.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, while Qatar Islamic Bank (QISB.QA), opens new tab and sharia-compliant lender Masraf Al Rayan (MARK.QA), opens new tab declined 1% each.
Investors exercised caution, engaging in profit-taking ahead of the Fed's rate decision, said Milad Azar, market analyst at XTB MENA.
Dubai's main share index (.DFMGI), opens new tab finished flat.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, helped by a 3.1% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
According to analyst Azar, the potential rate cut by the Fed is expected to positively impact market sentiment, as it may prompt the Saudi central bank to adopt similar measures to enhance business conditions.
"Additionally, oil prices continue to play a definitive role in market performance."
Among other gainers, Saudi Arabian Mining Company (Ma'aden) (1211.SE), opens new tab jumped 6.6%, a day after it signed a non-binding agreement with Aluminium Bahrain (Alba) (ALBH.BH), opens new tab to pursue a potential business combination that would create a global powerhouse.
On Sunday, U.S.-based aluminium maker Alcoa said it would sell a 25.1% stake in its joint venture with Ma'aden to the company for about $1.1 billion in cash and stock.
In Bahrain, the index (.BAX), opens new tab advanced 3.8%, buoyed by a 20% surge in Alba.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.3%, with Commercial International Bank (COMI.CA), opens new tab losing 0.5%.
Most stock markets in the Gulf ended lower on Tuesday, ahead of the U.S. interest rate decision that traders are betting may start with an outsized cut.
Investors remain solely focused on the Federal Reserve's two-day policy meeting that concludes on Wednesday, as chances have crept up in the past week in favour of a 50-basis-point rate cut.
Markets are now pricing in a 65% chance of a 50-basis-point cut versus 34% a week ago after media reports revived the prospect of more aggressive easing.
Monetary policy in the Gulf Cooperation Council (GCC), which includes the UAE, often aligns with the U.S. Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab dropped 0.4%, while Qatar Islamic Bank (QISB.QA), opens new tab and sharia-compliant lender Masraf Al Rayan (MARK.QA), opens new tab declined 1% each.
Investors exercised caution, engaging in profit-taking ahead of the Fed's rate decision, said Milad Azar, market analyst at XTB MENA.
Dubai's main share index (.DFMGI), opens new tab finished flat.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.2%, helped by a 3.1% rise in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab.
According to analyst Azar, the potential rate cut by the Fed is expected to positively impact market sentiment, as it may prompt the Saudi central bank to adopt similar measures to enhance business conditions.
"Additionally, oil prices continue to play a definitive role in market performance."
Among other gainers, Saudi Arabian Mining Company (Ma'aden) (1211.SE), opens new tab jumped 6.6%, a day after it signed a non-binding agreement with Aluminium Bahrain (Alba) (ALBH.BH), opens new tab to pursue a potential business combination that would create a global powerhouse.
On Sunday, U.S.-based aluminium maker Alcoa said it would sell a 25.1% stake in its joint venture with Ma'aden to the company for about $1.1 billion in cash and stock.
In Bahrain, the index (.BAX), opens new tab advanced 3.8%, buoyed by a 20% surge in Alba.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.3%, with Commercial International Bank (COMI.CA), opens new tab losing 0.5%.
Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg
Supply Chain Latest: DP World Teams With Nedbank to Finance More Africa Trade - Bloomberg
Port and logistics giant DP World is teaming up with Nedbank, a Johannesburg-based lender, to expand trade financing to small businesses facing working-capital challenges across sub-Saharan Africa.
According to the deal announced Tuesday, UAE-based DP World has launched a supply chain finance program on its platform. Nedbank acts a the financer, letting DP World’s suppliers in the region have access to early payments on approved receivables.
The goal of the partnership is to ease capital constraints for suppliers and provide a “more economical financing option” than existing market solutions, the companies said in a statement.
The bigger macroeconomic issue is addressing Africa’s estimated $80 billion to $120 billion trade financing gap. It’s only expected to widen as with more intra-regional commerce under the African Continental Free Trade Area. That pact will create the world’s biggest free-trade zone by area when it becomes fully operational by 2030.
Port and logistics giant DP World is teaming up with Nedbank, a Johannesburg-based lender, to expand trade financing to small businesses facing working-capital challenges across sub-Saharan Africa.
According to the deal announced Tuesday, UAE-based DP World has launched a supply chain finance program on its platform. Nedbank acts a the financer, letting DP World’s suppliers in the region have access to early payments on approved receivables.
The goal of the partnership is to ease capital constraints for suppliers and provide a “more economical financing option” than existing market solutions, the companies said in a statement.
The bigger macroeconomic issue is addressing Africa’s estimated $80 billion to $120 billion trade financing gap. It’s only expected to widen as with more intra-regional commerce under the African Continental Free Trade Area. That pact will create the world’s biggest free-trade zone by area when it becomes fully operational by 2030.
Egypt Says #SaudiArabia Wealth Fund Set to Invest $5 Billion - Bloomberg
Egypt Says Saudi Arabia Wealth Fund Set to Invest $5 Billion - Bloomberg
Egypt said Saudi Arabia’s sovereign wealth fund is poised to invest $5 billion, in what would be the latest Gulf funding for the North African nation that’s emerging from its worst economic crisis in decades.
The kingdom’s crown prince ordered the Public Investment Fund to take the step as a “first phase” of new Saudi investment, Egypt’s cabinet said late Monday in a statement. It didn’t give a timeframe nor say what the funds would be invested in.
The announcement followed meetings in the Saudi capital Riyadh between Egyptian Prime Minister Mostafa Madbouly and both Crown Prince Mohammed bin Salman and Saudi investment minister Khalid Al-Falih.
Gulf countries are a key source of investment for Egypt, which is coming out of two years of turmoil after securing a $57 billion global bailout led by the International Monetary Fund and United Arab Emirates. The UAE provided a mammoth $35 billion in a deal that included development rights for a prime spot of Mediterranean beachfront.
It wasn’t immediately clear if the Saudi funds would be fresh money. In the early days of Egypt’s foreign currency crunch in March 2022, Saudi Arabia deposited $5 billion in the country’s central bank and pledged $10 billion in investments. The PIF set up a new company to invest in Egypt, but the deals that have materialized so far have only totaled about $1.3 billion.
It’s possible the deal could see those existing Saudi deposits converted into investments. The UAE’s megadeal announced in March included $11 billion already held at Egypt’s central bank.
Saudi Arabia may also be eyeing developing a stretch of Red Sea coastline, having shown preliminary interest in Ras Gamila, a spot in southern Sinai.
Madbouly said in televised comments in Riyadh on Monday that Egypt was working to resolve a series of disputes with Saudi companies by the end of this year. He didn’t give details on the issues or firms involved.
Egypt said Saudi Arabia’s sovereign wealth fund is poised to invest $5 billion, in what would be the latest Gulf funding for the North African nation that’s emerging from its worst economic crisis in decades.
The kingdom’s crown prince ordered the Public Investment Fund to take the step as a “first phase” of new Saudi investment, Egypt’s cabinet said late Monday in a statement. It didn’t give a timeframe nor say what the funds would be invested in.
The announcement followed meetings in the Saudi capital Riyadh between Egyptian Prime Minister Mostafa Madbouly and both Crown Prince Mohammed bin Salman and Saudi investment minister Khalid Al-Falih.
Gulf countries are a key source of investment for Egypt, which is coming out of two years of turmoil after securing a $57 billion global bailout led by the International Monetary Fund and United Arab Emirates. The UAE provided a mammoth $35 billion in a deal that included development rights for a prime spot of Mediterranean beachfront.
It wasn’t immediately clear if the Saudi funds would be fresh money. In the early days of Egypt’s foreign currency crunch in March 2022, Saudi Arabia deposited $5 billion in the country’s central bank and pledged $10 billion in investments. The PIF set up a new company to invest in Egypt, but the deals that have materialized so far have only totaled about $1.3 billion.
It’s possible the deal could see those existing Saudi deposits converted into investments. The UAE’s megadeal announced in March included $11 billion already held at Egypt’s central bank.
Saudi Arabia may also be eyeing developing a stretch of Red Sea coastline, having shown preliminary interest in Ras Gamila, a spot in southern Sinai.
Madbouly said in televised comments in Riyadh on Monday that Egypt was working to resolve a series of disputes with Saudi companies by the end of this year. He didn’t give details on the issues or firms involved.
Australia reaches trade deal with #UAE to boost agriculture exports, investment | Reuters
Australia reaches trade deal with UAE to boost agriculture exports, investment | Reuters
Australia said on Tuesday it had reached a trade deal with the United Arab Emirates that would remove tariffs for about 99% of Australian products, and result in savings of A$135 million ($91 million) in the first year.
The UAE is Australia's largest trade and investment partner in the Middle East with bilateral trade worth A$9.9 billion last year, while two-way investment totalled A$20.6 billion.
"Under this trade agreement, Aussie exports are expected to increase by A$678 million per year, but this deal means more for Australia than just numbers," Trade Minister Don Farrell said.
The deal includes a framework to boost investment by Abu Dhabi in critical minerals, while the mining industry will benefit with tariff cuts on alumina exports, Farrell said in a statement.
UAE Minister of Foreign Trade Thani Al Zeyoudi said in a post on X that both countries had agreed the terms of a Comprehensive Economic Partnership Agreement that "will secure a new era of cooperation and opportunity".
Australia's top exports to the UAE include meat, dairy, oil seeds, seafood, steel, nuts, honey, coal, chickpeas and lentils.
The deal is expected to become effective later this year.
The Australian Meat Industry Council welcomed the trade deal and said it would offer farmers greater access to a vital market for Australian beef, lamb, and goat meat.
Australia said on Tuesday it had reached a trade deal with the United Arab Emirates that would remove tariffs for about 99% of Australian products, and result in savings of A$135 million ($91 million) in the first year.
The UAE is Australia's largest trade and investment partner in the Middle East with bilateral trade worth A$9.9 billion last year, while two-way investment totalled A$20.6 billion.
"Under this trade agreement, Aussie exports are expected to increase by A$678 million per year, but this deal means more for Australia than just numbers," Trade Minister Don Farrell said.
The deal includes a framework to boost investment by Abu Dhabi in critical minerals, while the mining industry will benefit with tariff cuts on alumina exports, Farrell said in a statement.
UAE Minister of Foreign Trade Thani Al Zeyoudi said in a post on X that both countries had agreed the terms of a Comprehensive Economic Partnership Agreement that "will secure a new era of cooperation and opportunity".
Australia's top exports to the UAE include meat, dairy, oil seeds, seafood, steel, nuts, honey, coal, chickpeas and lentils.
The deal is expected to become effective later this year.
The Australian Meat Industry Council welcomed the trade deal and said it would offer farmers greater access to a vital market for Australian beef, lamb, and goat meat.
#SaudiArabia approves first ETFs tracking Hong Kong-listed equities | Reuters
Saudi Arabia approves first ETFs tracking Hong Kong-listed equities | Reuters
Saudi Arabia has granted approval for its first exchange-traded funds (ETFs) tracking equities listed in Hong Kong on Tuesday, the Capital Market Authority (CMA) said, marking the debut of such a product in the Middle East.
The move follows efforts by Beijing and Hong Kong to deepen ties with Arab countries in response to escalating tensions with the West.
Saudi Arabia's CMA said in a statement it approved local asset manager AlBilad Investment Company's request to offer "Albilad CSOP MSCI Hong Kong China Equity ETF" units on the Saudi Stock Exchange (Tadawul). However, the regulator did not disclose the fund's launch schedule.
The ETF is a collaborative effort with Hong Kong's CSOP Asset Management, and focused on Hong Kong-listed companies including Chinese firms traded in the city.
Last November, Hong Kong launched Asia's first ETF tracking Saudi equities - CSOP Saudi Arabia ETF (2830.HK), opens new tab - and has been actively seeking cross-listing opportunities in both capital markets.
The Hong Kong-listed ETF's size has expanded to nearly HK$10 billion ($1.28 billion).
In June, Julia Leung, CEO of Hong Kong's Securities and Futures Commission (SFC), visited Saudi Arabia to meet officials and discuss the potential listing of the ETFs on each other's exchanges.
China also approved its first two mainland listed ETFs tracking Hong Kong's CSOP Saudi Arabia ETF in June, seeking to further strengthen financial sector cooperation between the two regions and provide Chinese investors exposure to Middle East companies.
Saudi Arabia has granted approval for its first exchange-traded funds (ETFs) tracking equities listed in Hong Kong on Tuesday, the Capital Market Authority (CMA) said, marking the debut of such a product in the Middle East.
The move follows efforts by Beijing and Hong Kong to deepen ties with Arab countries in response to escalating tensions with the West.
Saudi Arabia's CMA said in a statement it approved local asset manager AlBilad Investment Company's request to offer "Albilad CSOP MSCI Hong Kong China Equity ETF" units on the Saudi Stock Exchange (Tadawul). However, the regulator did not disclose the fund's launch schedule.
The ETF is a collaborative effort with Hong Kong's CSOP Asset Management, and focused on Hong Kong-listed companies including Chinese firms traded in the city.
Last November, Hong Kong launched Asia's first ETF tracking Saudi equities - CSOP Saudi Arabia ETF (2830.HK), opens new tab - and has been actively seeking cross-listing opportunities in both capital markets.
The Hong Kong-listed ETF's size has expanded to nearly HK$10 billion ($1.28 billion).
In June, Julia Leung, CEO of Hong Kong's Securities and Futures Commission (SFC), visited Saudi Arabia to meet officials and discuss the potential listing of the ETFs on each other's exchanges.
China also approved its first two mainland listed ETFs tracking Hong Kong's CSOP Saudi Arabia ETF in June, seeking to further strengthen financial sector cooperation between the two regions and provide Chinese investors exposure to Middle East companies.
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