Saudi Arabia: After Goldman (GS), Lazard (LAZ) to Set Up Mideast HQ in Riyadh - Bloomberg
Lazard Inc. became the latest Wall Street firm to comply with Saudi Arabia’s rules for foreign firms to set up their Middle Eastern base in the kingdom, months after larger rival Goldman Sachs Group Inc. secured a similar license.
The New York-based firm has received a so-called regional headquarters license from the Saudi Ministry of Investment, according to people familiar with the matter, who asked not to be identified as the information is private.
A Lazard spokesperson declined to comment.
The move is the latest sign that Wall Street banks are heeding the Saudi government’s warning that it would stop working with firms unless they established a regional HQ in the country.
Goldman Sachs became the first major financial institution to get the license in May, while Tokyo-headquartered Mizuho Financial Group Inc. followed suit in June, Bloomberg News reported earlier.
The Mideast has become a hotspot for investment bankers, driven by sovereign wealth fund deals and a booming market for new share sales. Lazard was financial adviser to ADES Holding Co. on its listing, the country’s largest IPO last year, and has been building up a team of bankers based in Riyadh.
It hired Wassim Al-Khatib as chief executive officer of its advisory business for Middle East and North Africa in January 2023. That appointment came months after the firm named Saudi stock exchange chairperson Sarah Al-Suhaimi as the chair of the unit.
Competitors including Rothschild & Co. and Moelis & Co. have also opened offices in Riyadh to tap into one of the region’s busiest markets, though they haven’t yet secured HQ licenses.
Saudi Arabia announced new regulations for state contracts in 2021, saying it wanted to limit “economic leakage” — a term used by the government for state spending that can benefit firms that don’t have a substantial presence in the country.
Under the rules that came into force this year, firms must have a regional base in Saudi Arabia with at least 15 employees, including executives overseeing other countries or risk losing business with the kingdom’s vast network of government entities.
Thursday 19 September 2024
#UAE President Looks to Put Economics Before Geopolitics in Washington Trip - Bloomberg
UAE President Looks to Put Economics Before Geopolitics in Washington Trip - Bloomberg
United Arab Emirates President Sheikh Mohammed bin Zayed will prioritize talks on economic ties ahead of geopolitics during his first trip to Washington as the country’s ruler.
The leader widely known as MBZ will next week hold discussions with President Joe Biden and Vice President Kamala Harris, the Democratic nominee contesting November’s election. His trip will include meetings with key leaders on Capitol Hill as well as executives of large US-based firms.
“Sometimes people like to talk about some tensions in the relationship but the big story is that this is our most important strategic” alliance, Anwar Gargash, diplomatic advisor to the UAE’s president, said in a briefing with journalists in Dubai on Thursday.
The trip to Washington is in line with what the energy-rich nation has been trying to achieve since stepping back from the recent civil war in Yemen, which includes focusing on economic ties, he said.
“A lot of the things that the UAE is doing today is with the perspective that the economy comes first,” Gargash said.
Still, the UAE can’t ignore the upheaval caused by the war between Israel and Hamas in Gaza, which is approaching its first anniversary, he said. That conflict is now spreading to Lebanon, where Israel has stepped up hostilities against Hezbollah, another militant group.
Both Hezbollah and Hamas are backed by Iran and considered terrorist organizations by the US.
Abu Dhabi has been involved in efforts to secure a cease-fire without being one of the chief mediators. The Gulf country has focused on humanitarian aid efforts inside Gaza and by its borders, spending hundreds of millions of dollars.
While MBZ and Biden will likely discuss the developing situation in Middle East, the UAE’s main goal is to bring up partnerships in artificial intelligence and in technology, Gargash said.
Earlier this year, Microsoft Corp. invested $1.5 billion in the UAE’s top AI firm, G42, after the Abu Dhabi-based company worked out an unusual deal with the US government to end any cooperation with China. The firms are establishing two centers in the Gulf state focused on developing best practices and industry standards for the responsible use of the industry.
When it comes to technology, “we have the finances,” Gargash said. “A lot of these AI projects and others need large pools of finance.”
United Arab Emirates President Sheikh Mohammed bin Zayed will prioritize talks on economic ties ahead of geopolitics during his first trip to Washington as the country’s ruler.
The leader widely known as MBZ will next week hold discussions with President Joe Biden and Vice President Kamala Harris, the Democratic nominee contesting November’s election. His trip will include meetings with key leaders on Capitol Hill as well as executives of large US-based firms.
“Sometimes people like to talk about some tensions in the relationship but the big story is that this is our most important strategic” alliance, Anwar Gargash, diplomatic advisor to the UAE’s president, said in a briefing with journalists in Dubai on Thursday.
The trip to Washington is in line with what the energy-rich nation has been trying to achieve since stepping back from the recent civil war in Yemen, which includes focusing on economic ties, he said.
“A lot of the things that the UAE is doing today is with the perspective that the economy comes first,” Gargash said.
Still, the UAE can’t ignore the upheaval caused by the war between Israel and Hamas in Gaza, which is approaching its first anniversary, he said. That conflict is now spreading to Lebanon, where Israel has stepped up hostilities against Hezbollah, another militant group.
Both Hezbollah and Hamas are backed by Iran and considered terrorist organizations by the US.
Abu Dhabi has been involved in efforts to secure a cease-fire without being one of the chief mediators. The Gulf country has focused on humanitarian aid efforts inside Gaza and by its borders, spending hundreds of millions of dollars.
While MBZ and Biden will likely discuss the developing situation in Middle East, the UAE’s main goal is to bring up partnerships in artificial intelligence and in technology, Gargash said.
Earlier this year, Microsoft Corp. invested $1.5 billion in the UAE’s top AI firm, G42, after the Abu Dhabi-based company worked out an unusual deal with the US government to end any cooperation with China. The firms are establishing two centers in the Gulf state focused on developing best practices and industry standards for the responsible use of the industry.
When it comes to technology, “we have the finances,” Gargash said. “A lot of these AI projects and others need large pools of finance.”
#SaudiArabia Targets Control of Alba to Bolster Metals Ambitions - Bloomberg
Saudi Arabia Targets Control of Alba to Bolster Metals Ambitions - Bloomberg
Saudi Arabia aims to gain control of Bahrain’s aluminum smelter, furthering its plan for mining and metals to become a “third pillar” of the kingdom’s economy.
State-controlled Saudi Arabian Mining Co., known as Maaden, announced a series of deals this week involving Aluminium Bahrain B.S.C., or Alba. When those deals close, the Saudi company “hopes to be a majority shareholder in Alba,” Maaden Chief Executive Officer Bob Wilt said in an interview in Riyadh.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman has put metals at the center of his Vision 2030, with Maaden tasked with growing the domestic industry. Maaden is targeting Alba as part of a bet that aluminum will prove crucial to both the energy transition and the oil-rich kingdom’s plans to diversify its economy.
“I’m very bullish on aluminum,” Wilt said. “The energy transition doesn’t happen without aluminum, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
The deals announced over the past few days include Maaden acquiring a 21% stake in Alba from Saudi Basic Industries Corp. for over $1 billion. Maaden is also set to be issued new shares in Alba in exchange for its Saudi aluminum assets under a proposed merger agreement with the Bahrain firm. Maaden’s final stake in Alba will depend on due diligence, Wilt said.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminum production, the CEO said.
As part of Saudi’s metals and mining drive, Maaden has also partnered with the kingdom’s powerful sovereign wealth fund to create Manara Minerals, an investment vehicle to buy up overseas assets. Manara’s first deal was snapping up a 10% stake in Vale SA’s base metals business.
After that “the phones started ringing and everybody’s interested” in Saudi Arabia’s metals plans, said Wilt, who is also acting CEO of Manara. “The world sees that Saudi Arabia is serious about making investments globally in mining assets and resources.”
For its next deal, Manara’s priority is getting more access to copper, Wilt said.
Manara was among the suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, people familiar told Bloomberg in April. The firm is also in talks to acquire a stake in a Pakistan copper and gold mining project, Bloomberg reported the same month.
Saudi Arabia aims to gain control of Bahrain’s aluminum smelter, furthering its plan for mining and metals to become a “third pillar” of the kingdom’s economy.
State-controlled Saudi Arabian Mining Co., known as Maaden, announced a series of deals this week involving Aluminium Bahrain B.S.C., or Alba. When those deals close, the Saudi company “hopes to be a majority shareholder in Alba,” Maaden Chief Executive Officer Bob Wilt said in an interview in Riyadh.
Saudi Arabia’s de facto ruler, Crown Prince Mohammed bin Salman has put metals at the center of his Vision 2030, with Maaden tasked with growing the domestic industry. Maaden is targeting Alba as part of a bet that aluminum will prove crucial to both the energy transition and the oil-rich kingdom’s plans to diversify its economy.
“I’m very bullish on aluminum,” Wilt said. “The energy transition doesn’t happen without aluminum, so if we want to be a critical minerals and processing hub, we’ve got to control the feedstock.”
The deals announced over the past few days include Maaden acquiring a 21% stake in Alba from Saudi Basic Industries Corp. for over $1 billion. Maaden is also set to be issued new shares in Alba in exchange for its Saudi aluminum assets under a proposed merger agreement with the Bahrain firm. Maaden’s final stake in Alba will depend on due diligence, Wilt said.
“When we have the combination of us and Alba, and our growth plans, we’re easily in the top five” for global aluminum production, the CEO said.
As part of Saudi’s metals and mining drive, Maaden has also partnered with the kingdom’s powerful sovereign wealth fund to create Manara Minerals, an investment vehicle to buy up overseas assets. Manara’s first deal was snapping up a 10% stake in Vale SA’s base metals business.
After that “the phones started ringing and everybody’s interested” in Saudi Arabia’s metals plans, said Wilt, who is also acting CEO of Manara. “The world sees that Saudi Arabia is serious about making investments globally in mining assets and resources.”
For its next deal, Manara’s priority is getting more access to copper, Wilt said.
Manara was among the suitors considering bids for a stake in First Quantum Minerals Ltd.’s Zambian copper mines, people familiar told Bloomberg in April. The firm is also in talks to acquire a stake in a Pakistan copper and gold mining project, Bloomberg reported the same month.
Most Gulf markets in black after central banks cut rates mirroring Fed | Reuters
Most Gulf markets in black after central banks cut rates mirroring Fed | Reuters
Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the U.S. Federal Reserve.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.3%, boosted by a 2% jump in Al Rajhi Bank (1120.SE), opens new tab.
The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.
Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose after the Fed's rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand
Dubai's main share index (.DFMGI), opens new tab added 0.7%, led by a 1.2% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.8% higher.
The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab concluded 0.6% higher, as most of its constituents were in positive territory including Qatar National Bank (QNBK.QA), opens new tab, which was up 2%.
Qatar's central bank cut key interest rates by 55 basis points on Wednesday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2%, with Commercial International Bank Egypt (COMI.CA), opens new tab increasing 1.8%.
Most stock markets in the Gulf ended higher on Thursday, after most central banks in the region cut their key interest rates following a larger-than-usual policy easing by the U.S. Federal Reserve.
The Fed cut its benchmark rate by 50 basis points (bps) on Wednesday, with policymakers seeing another half a percentage point fall by the end of this year.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 1.3%, boosted by a 2% jump in Al Rajhi Bank (1120.SE), opens new tab.
The kingdom, the region's biggest economy, cut its repurchase agreement (Repo) rate and reverse repo rate by 50 bps each to 5.5% and 5%, respectively, according to a central bank statement.
Elsewhere, oil behemoth Saudi Aramco (2222.SE), opens new tab was up 1.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose after the Fed's rate cut, but Brent was still hovering around its lowest levels of the year, below $75, on expectations of weaker global demand
Dubai's main share index (.DFMGI), opens new tab added 0.7%, led by a 1.2% increase in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab finished 0.8% higher.
The United Arab Emirates' central bank also reduced its base rate on the overnight deposit facility by half a percentage point to 4.90%.
Monetary policy in the Gulf Cooperation Council (GCC) often aligns with the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
The Qatari benchmark (.QSI), opens new tab concluded 0.6% higher, as most of its constituents were in positive territory including Qatar National Bank (QNBK.QA), opens new tab, which was up 2%.
Qatar's central bank cut key interest rates by 55 basis points on Wednesday.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 2%, with Commercial International Bank Egypt (COMI.CA), opens new tab increasing 1.8%.
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