EU to Seek Trade Pact with UAE as Talks with Gulf Region Stall - Bloomberg
The European Union is considering working toward a trade deal with the United Arab Emirates as the 27-member bloc seeks to cooperate more with the Gulf states on issues including energy and security.
The European Commission, the EU’s executive arm, considers bilateral deals with individual countries in the area more feasible after efforts to clinch a region-to-region accord with the Gulf Cooperation Council — which includes the UAE, Bahrain, Saudi Arabia, Oman, Qatar and Kuwait — have stalled, according to people familiar with the plans.
Leaders from the EU and the GCC will meet in Brussels on Oct. 16 to step up cooperation on issues affecting regional security and stability and to discuss challenges to the global economy.
“It’s an important moment for the relationship between Europe and the Gulf countries,” the EU’s foreign policy chief, Josep Borrell, said in Dubai this week. “We have been talking quite a long time about the trade relationship between the EU and the Gulf and this can be considered region-to-region or it can be considered through bilateral agreements.”
Borrell added that due to the difficulties of reaching a broad agreement that includes all the GCC nations, the members may be interested in pursuing bilateral accords.
In spite of the renewed interest, a deal between the EU and the UAE would face challenges, namely finding an arrangement that wouldn’t alienate other countries in the Gulf region, according to a UAE official, who spoke on the condition of anonymity.
There have been various attempts to reach a trade agreement with the GCC since the talks started in 1990, but all the efforts failed to bear fruit. Against this backdrop, the commission has proposed to its member states to explore bilateral deals, primarily with the UAE, said the people.
The commission and member states, however, are concerned about upsetting other nations such as Saudi Arabia, which prefer to strike a regional deal, said the people.
The bloc sees bilateral trade deals as a stepping stone toward a regional agreement down the road if the conditions are met, the people said. And for those nations who would not seek the ambition of a trade deal, the EU is ready to explore strategic partnership agreements to improve relations on topics such as climate, security, digital or innovation.
The leaders at the summit will also discuss the clean transition and cooperation on energy, security, migration, among other topics, said the people. They’ll also likely broach human rights, the fight against money laundering, sanction circumvention and Russia’s invasion of Ukraine.
Wednesday 18 September 2024
Gulf markets end mixed ahead of Fed's rate decision | Reuters
Gulf markets end mixed ahead of Fed's rate decision | Reuters
Most stock markets in the Gulf were mixed on Wednesday as some caution crept in over the size of an expected U.S. interest-rate cut in the Federal Reserve's monetary policy announcement later in the day.
A 50-basis-point rate cut, as expected by investors, will be key in further driving global risk appetite. However, economists favouring a 25-bps cut argue that the current state of the U.S. economy doesn't warrant a bigger move.
Market expectations on the size of a U.S. rate cut have been volatile of late, with only a 14% chance of a 50-bps cut priced in as of exactly a week ago, according to CME's FedWatch Tool.
The Fed will detail its September rate verdict at 1800 GMT.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 4.3% increase in Saudi Awwal Bank (1060.SE), opens new tab.
The Saudi market is seeing the start of Arabian Mills' initial public offering, following the successful IPO of Al Majed Oud, said Joseph Dahrieh, Managing Principal at Tickmill.
"The strong IPO activity is expected to boost liquidity, attract investors, and help diversify the market, potentially stimulating economic growth and encouraging more listings."
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower.
Oil - a catalyst for the Gulf's financial markets - fell after two sessions of gains after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.S. interest rate cut.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab 0.6%, with Ezz Steel Co (ESRS.CA), opens new tab advancing 9.1%.
Most stock markets in the Gulf were mixed on Wednesday as some caution crept in over the size of an expected U.S. interest-rate cut in the Federal Reserve's monetary policy announcement later in the day.
A 50-basis-point rate cut, as expected by investors, will be key in further driving global risk appetite. However, economists favouring a 25-bps cut argue that the current state of the U.S. economy doesn't warrant a bigger move.
Market expectations on the size of a U.S. rate cut have been volatile of late, with only a 14% chance of a 50-bps cut priced in as of exactly a week ago, according to CME's FedWatch Tool.
The Fed will detail its September rate verdict at 1800 GMT.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most of the regional currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 0.3%, helped by a 4.3% increase in Saudi Awwal Bank (1060.SE), opens new tab.
The Saudi market is seeing the start of Arabian Mills' initial public offering, following the successful IPO of Al Majed Oud, said Joseph Dahrieh, Managing Principal at Tickmill.
"The strong IPO activity is expected to boost liquidity, attract investors, and help diversify the market, potentially stimulating economic growth and encouraging more listings."
Dubai's main share index (.DFMGI), opens new tab eased 0.1%, hit by a 1% fall in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 0.1% lower.
Oil - a catalyst for the Gulf's financial markets - fell after two sessions of gains after an industry report showed increasing U.S. crude and fuel inventories, offsetting rising tension in the Middle East and the potentially bullish impact of a U.S. interest rate cut.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab 0.6%, with Ezz Steel Co (ESRS.CA), opens new tab advancing 9.1%.
Paul Taubman’s PJT Buys DeNovo to Cash In on Mideast Deals Boom - Bloomberg
Paul Taubman’s PJT Buys DeNovo to Cash In on Mideast Deals Boom - Bloomberg
PJT Partners agreed to acquire Dubai-based advisory firm deNovo Partners, giving Paul Taubman’s investment bank a greater foothold in the Middle East amid a surge in regional dealmaking activity.
The deal brings together two Morgan Stanley alumni: Taubman set up PJT about a decade ago after 30 years at the firm. Meantime, deNovo was founded in 2010 by May Nasrallah, who worked at the Wall Street Bank for 15 years and is regarded as one of the Middle East’s most seasoned dealmakers.
She will continue leading the Middle East franchise, overseeing key regional clients and join PJT’s senior team.
The firms didn’t disclose financial details of the deal, which is subject to regulatory approvals and expected to close in October, according to a statement.
The move will allow New York-based PJT to expand its global footprint, working both with clients in the Middle East and those based elsewhere with business interests in the region, said Taubman, who is the firm’s chairman and chief executive officer.
The deal marks just the second acquisition for the US firm, which was spun off from Blackstone. PJT has been enjoying bumper revenue for its work helping struggling firms restructure in recent months. The investment bank has said it expects its restructuring activity to remain high and approach last year’s record.
PJT and deNovo have previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
The combination comes amid a surge in investment banking activity in the Gulf. There’s been a flurry of outbound deals and initial public offerings in recent years, especially in Saudi Arabia and the United Arab Emirates, where governments are spending billions to diversify their economies and deepen capital markets.
In the first half of this year alone, Middle Eastern sovereign wealth funds accounted for more than half the value of all deals done by global state-backed investors, according to consultancy Global SWF.
Global advisory firms including Rothschild & Co. and Moelis & Co. have been adding staff or opening offices in Abu Dhabi or Riyadh to grab a slice of that growing market. Their expansion coincides with the arrival of hedge funds, private equity firms and asset managers in the UAE, attracted by the ease of doing business and the presence of deep-pocketed sovereign funds.
Nasrallah was previously the head of Morgan Stanley’s investment bank in the region and helped establish its Dubai office.
She later set up deNovo, and through the years built it into one of most prominent independent advisory firms in the Gulf. The boutique now has a team of about 20 bankers, predominantly based in Dubai’s financial center, and recently acquired a license to operate in Saudi Arabia’s capital Riyadh.
The firm has already advised on several high-profile deals this year — a multi-billion agreement involving one of the world’s largest school operators, GEMS Education, and an investment by T.J. Maxx’s owner in Dubai’s Brands for Less.
PJT Partners agreed to acquire Dubai-based advisory firm deNovo Partners, giving Paul Taubman’s investment bank a greater foothold in the Middle East amid a surge in regional dealmaking activity.
The deal brings together two Morgan Stanley alumni: Taubman set up PJT about a decade ago after 30 years at the firm. Meantime, deNovo was founded in 2010 by May Nasrallah, who worked at the Wall Street Bank for 15 years and is regarded as one of the Middle East’s most seasoned dealmakers.
She will continue leading the Middle East franchise, overseeing key regional clients and join PJT’s senior team.
The firms didn’t disclose financial details of the deal, which is subject to regulatory approvals and expected to close in October, according to a statement.
The move will allow New York-based PJT to expand its global footprint, working both with clients in the Middle East and those based elsewhere with business interests in the region, said Taubman, who is the firm’s chairman and chief executive officer.
The deal marks just the second acquisition for the US firm, which was spun off from Blackstone. PJT has been enjoying bumper revenue for its work helping struggling firms restructure in recent months. The investment bank has said it expects its restructuring activity to remain high and approach last year’s record.
PJT and deNovo have previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
The combination comes amid a surge in investment banking activity in the Gulf. There’s been a flurry of outbound deals and initial public offerings in recent years, especially in Saudi Arabia and the United Arab Emirates, where governments are spending billions to diversify their economies and deepen capital markets.
In the first half of this year alone, Middle Eastern sovereign wealth funds accounted for more than half the value of all deals done by global state-backed investors, according to consultancy Global SWF.
Global advisory firms including Rothschild & Co. and Moelis & Co. have been adding staff or opening offices in Abu Dhabi or Riyadh to grab a slice of that growing market. Their expansion coincides with the arrival of hedge funds, private equity firms and asset managers in the UAE, attracted by the ease of doing business and the presence of deep-pocketed sovereign funds.
Nasrallah was previously the head of Morgan Stanley’s investment bank in the region and helped establish its Dubai office.
She later set up deNovo, and through the years built it into one of most prominent independent advisory firms in the Gulf. The boutique now has a team of about 20 bankers, predominantly based in Dubai’s financial center, and recently acquired a license to operate in Saudi Arabia’s capital Riyadh.
The firm has already advised on several high-profile deals this year — a multi-billion agreement involving one of the world’s largest school operators, GEMS Education, and an investment by T.J. Maxx’s owner in Dubai’s Brands for Less.
Japan, United Arab Emirates to enter economic partnership talks | Reuters #UAE
Japan, United Arab Emirates to enter economic partnership talks | Reuters
Japan will start negotiations for an economic partnership agreement with the United Arab Emirates, Prime Minister Fumio Kishida said in a post on X.
The conclusion of the pact with the UAE, coupled with another free trade agreement between Japan and the Gulf Cooperation Council that will also be negotiated, would "strengthen economic relations between the two countries", Kishida said.
UAE President Sheikh Mohamed bin Zayed Al Nahyan said on X that the comprehensive trade pact with Japan would be built on "our longstanding history of strategic cooperation".
Japan and the UAE last year agreed to cooperate on technology and climate change, including energy security and investments in chip and battery sectors.
Japan will start negotiations for an economic partnership agreement with the United Arab Emirates, Prime Minister Fumio Kishida said in a post on X.
The conclusion of the pact with the UAE, coupled with another free trade agreement between Japan and the Gulf Cooperation Council that will also be negotiated, would "strengthen economic relations between the two countries", Kishida said.
UAE President Sheikh Mohamed bin Zayed Al Nahyan said on X that the comprehensive trade pact with Japan would be built on "our longstanding history of strategic cooperation".
Japan and the UAE last year agreed to cooperate on technology and climate change, including energy security and investments in chip and battery sectors.
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