Paul Taubman’s PJT Eyes Saudi Arabia Growth After deNovo Deal - Bloomberg
Wall Street advisory firm PJT Partners plans to increase its headcount in Saudi Arabia following the acquisition of Dubai-based deNovo Partners, founder Paul Taubman told Bloomberg TV in an interview.
DeNovo earlier this year secured a license to operate in the kingdom, joining prominent boutique firms including Moelis & Co. and Rothschild & Co. to formally enter a market that increasingly plays a major role in global finance.
The combined PJT-deNovo entity would “absolutely” move staff to Riyadh, Taubman said. “That will follow that license and we will, in a very patient way, continue to build out our capabilities.”
Saudi Arabia has increasingly become a draw for Wall Street’s top banks looking to advise the kingdom’s sovereign wealth fund on its overseas acquisitions or one of many domestic companies considering a share sale on the local bourse.
Lazard Inc. recently received a so-called regional headquarters license from the Saudi Ministry of Investment, 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, Bloomberg reported earlier this month.
PJT last week announced it was taking over deNovo, a deal that reunited ex-Morgan Stanley dealmaker Taubman with former colleague May Nasrallah who set up her own boutique in 2010.
Taubman said the initial focus, before they move ahead with the Saudi expansion, was to integrate the two businesses. PJT and deNovo had previously collaborated on deals through a 2020 agreement, working with Middle East-based entities including sovereign funds, companies and family groups.
Nasrallah said the transaction meant there was a “a lot more engine behind” their efforts in targeting clients including wealth funds, multinationals, regional government organizations and corporates looking to grow outside the Middle East.
“As their ambitions grow and globalize, we globalize with them,” she said.
Friday, 27 September 2024
#Dubai Stocks Confront Regional Risks After Rally to 10-Year High - Bloomberg
Dubai Stocks Confront Regional Risks After Rally to 10-Year High - Bloomberg
A rally that’s propelled Dubai stocks into the ranks of the best global performers looks set to cool as geopolitical risks increase and bargain valuations become harder to find.
The Dubai Financial Market General Index has advanced 12% this quarter to the highest since 2014. Its gains are among the 10 biggest across more than 90 equity benchmarks worldwide tracked by Bloomberg.
Stocks tied to the strength of Dubai’s economy and population growth — like Emirates NBD Bank PJSC, toll gate operator Salik Co PJSC and utilities provider Dubai Electricity & Water Authority PJSC — have led the advance.
Positive earnings news and a lower sensitivity to changes in oil prices than Gulf peers have helped drive the surge in Dubai. Its equity market benefits more from tourism and demand for real estate than neighbors like Abu Dhabi and Riyadh. But after the strong run in stocks, investors may turn wary about testing whether valuations can rise further.
“Increasing property prices and tourist arrivals, as well as physical distance from the region’s conflict hot spots have driven Dubai equities higher,” said Hasnain Malik, emerging market equity strategist at Tellimer in Dubai. Still, Dubai stocks may now be “more sensitive to any setbacks than further good news.”
Although the macro backdrop remains healthy, “risk reward in stocks is clearly no longer so attractive,” given the now more demanding share-price valuations, Malik said.
HSBC Holdings Plc strategists are among those advising greater caution toward the region’s equities. John Lomax and his team cut their overweight positions on Saudi Arabia and the United Arab Emirates to neutral.
“We love the structural story, but a combination of heightened geopolitical risk and low oil prices is creating near-term headwinds,” they wrote in a note.
Stocks in Dubai and neighboring exchanges have generally rallied in the past three months, even as concerns over the threat of a broader Middle Eastern conflict grew.
The market in Abu Dhabi, the UAE’s capital, has advanced 5% — the best quarter since March 2022. In Saudi Arabia, the Tadawul All Share Index has climbed about 6% in the best quarter of this year so far. Dubai has outperformed its Gulf peers since the start of July.
Divye Arora, the head of portfolio management at Daman Investment Psc in Dubai, doesn’t view valuations as too stretched yet. “With bonds yields going down, major Dubai names continue to offer attractive dividend yields of more than 5% in 2025,” he said.
The index trades at 8.6 times forward earnings, after bouncing off 2020 lows, but still below the average of 9.2 times over the past decade.
Arora sees further upside in the likes of Salik, Dubai Taxi Co., Tecom Group PJSC, Emaar Properties PJSC, Emaar Development PJSC and Emirates Central Cooling Systems Corporation, he said.
A rally that’s propelled Dubai stocks into the ranks of the best global performers looks set to cool as geopolitical risks increase and bargain valuations become harder to find.
The Dubai Financial Market General Index has advanced 12% this quarter to the highest since 2014. Its gains are among the 10 biggest across more than 90 equity benchmarks worldwide tracked by Bloomberg.
Stocks tied to the strength of Dubai’s economy and population growth — like Emirates NBD Bank PJSC, toll gate operator Salik Co PJSC and utilities provider Dubai Electricity & Water Authority PJSC — have led the advance.
Positive earnings news and a lower sensitivity to changes in oil prices than Gulf peers have helped drive the surge in Dubai. Its equity market benefits more from tourism and demand for real estate than neighbors like Abu Dhabi and Riyadh. But after the strong run in stocks, investors may turn wary about testing whether valuations can rise further.
“Increasing property prices and tourist arrivals, as well as physical distance from the region’s conflict hot spots have driven Dubai equities higher,” said Hasnain Malik, emerging market equity strategist at Tellimer in Dubai. Still, Dubai stocks may now be “more sensitive to any setbacks than further good news.”
Although the macro backdrop remains healthy, “risk reward in stocks is clearly no longer so attractive,” given the now more demanding share-price valuations, Malik said.
HSBC Holdings Plc strategists are among those advising greater caution toward the region’s equities. John Lomax and his team cut their overweight positions on Saudi Arabia and the United Arab Emirates to neutral.
“We love the structural story, but a combination of heightened geopolitical risk and low oil prices is creating near-term headwinds,” they wrote in a note.
Stocks in Dubai and neighboring exchanges have generally rallied in the past three months, even as concerns over the threat of a broader Middle Eastern conflict grew.
The market in Abu Dhabi, the UAE’s capital, has advanced 5% — the best quarter since March 2022. In Saudi Arabia, the Tadawul All Share Index has climbed about 6% in the best quarter of this year so far. Dubai has outperformed its Gulf peers since the start of July.
Divye Arora, the head of portfolio management at Daman Investment Psc in Dubai, doesn’t view valuations as too stretched yet. “With bonds yields going down, major Dubai names continue to offer attractive dividend yields of more than 5% in 2025,” he said.
The index trades at 8.6 times forward earnings, after bouncing off 2020 lows, but still below the average of 9.2 times over the past decade.
Arora sees further upside in the likes of Salik, Dubai Taxi Co., Tecom Group PJSC, Emaar Properties PJSC, Emaar Development PJSC and Emirates Central Cooling Systems Corporation, he said.
#UAE's Masdar eyes Iberian renewables champion after recent deals | Reuters
UAE's Masdar eyes Iberian renewables champion after recent deals | Reuters
United Arab Emirates' renewable energy company Masdar will seek to further grow its presence in the Iberian market after clinching two deals in the region in recent months, an executive in the company told Reuters.
Masdar clinched this week its second large renewables deal in Spain in two months, buying Saeta Yield from Canada's Brookfield (BAM.TO), opens new tab in a $1.4 billion deal.
In July, it agreed to take a minority stake in a 2-gigawatt solar portfolio controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab.
"The fact that we've done two deals in a matter of a couple of months tells you that we are very keen on the Spanish market," M&A chief Faisal Tahir Bhatti said.
"We're well on our way to building up our own champion."
Saeta's 745 megawatts of mostly wind assets, 1.6 GW of projects under development in Spain and Portugal, and 90-strong staff offer a strong platform to grow in Iberia and beyond, he said.
With a 100-GW renewable capacity target by 2030, Masdar has so far invested in roughly 20 GW of renewable projects valued $30 billion around the world, excluding the recent deals.
Masdar and other deep-pocketed investors from the Gulf and other regions have intensified dealmaking in a sector hit by high interest rates and rising debt costs, with energy giants like Iberdrola (IBE.MC), opens new tab and Enel happy to sell minority stakes in wind and solar parks to maximise returns and curb debt.
Masdar - which is controlled by UAE's utility TAQA, oil company ADNOC and the sovereign wealth fund Mubadala Investment Company - will now focus on developing its Spanish platforms.
Masdar is in talks with Endesa to develop up to 5 GW of capacity tied to the July deal, he said, while the Saeta pipeline should be connected to the grid by 2030.
Masdar will look at potential new opportunities with current partners, such as Endesa and Iberdrola, but is also open to new partnerships, under the right conditions and with a "very selective" approach.
United Arab Emirates' renewable energy company Masdar will seek to further grow its presence in the Iberian market after clinching two deals in the region in recent months, an executive in the company told Reuters.
Masdar clinched this week its second large renewables deal in Spain in two months, buying Saeta Yield from Canada's Brookfield (BAM.TO), opens new tab in a $1.4 billion deal.
In July, it agreed to take a minority stake in a 2-gigawatt solar portfolio controlled by Endesa - a unit of Italy's Enel (ENEI.MI), opens new tab.
"The fact that we've done two deals in a matter of a couple of months tells you that we are very keen on the Spanish market," M&A chief Faisal Tahir Bhatti said.
"We're well on our way to building up our own champion."
Saeta's 745 megawatts of mostly wind assets, 1.6 GW of projects under development in Spain and Portugal, and 90-strong staff offer a strong platform to grow in Iberia and beyond, he said.
With a 100-GW renewable capacity target by 2030, Masdar has so far invested in roughly 20 GW of renewable projects valued $30 billion around the world, excluding the recent deals.
Masdar and other deep-pocketed investors from the Gulf and other regions have intensified dealmaking in a sector hit by high interest rates and rising debt costs, with energy giants like Iberdrola (IBE.MC), opens new tab and Enel happy to sell minority stakes in wind and solar parks to maximise returns and curb debt.
Masdar - which is controlled by UAE's utility TAQA, oil company ADNOC and the sovereign wealth fund Mubadala Investment Company - will now focus on developing its Spanish platforms.
Masdar is in talks with Endesa to develop up to 5 GW of capacity tied to the July deal, he said, while the Saeta pipeline should be connected to the grid by 2030.
Masdar will look at potential new opportunities with current partners, such as Endesa and Iberdrola, but is also open to new partnerships, under the right conditions and with a "very selective" approach.
#UAE stocks end lower on weak oil, regional tensions | Reuters
UAE stocks end lower on weak oil, regional tensions | Reuters
Stock markets in the United Arab Emirates fell on Friday despite China's big stimulus steps as weak oil prices and ongoing regional geopolitical tensions continued to weigh on investor sentiment.
Oil prices, which fuel the region's growth, headed for significant weekly losses on a report that Saudi Arabia was preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output.
Brent futures edged up 0.2% to $71.74 a barrel at 1121 GMT but are down 3.7% for the week.
Abu Dhabi's index (.FTFADGI), opens new tab fell 0.5%, with its largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab losing over 1.1% and Telecoms firm e& , shedding nearly 1%.
The main share index (.DFMGI) retreated 0.1% after three consecutive sessions of gains. Dubai's largest lender, Emirates NBD Bank (ENBD.DU), opens new tab, lost nearly 0.7% while tollgate operator Salik Co (SALIK.DU), opens new tab was down nearly 1%.
Investment firm Amanat Holding (AMANT.DU), opens new tab also fell nearly 0.9% as shares traded ex-dividend.
Despite the downturn in UAE equities, the positive momentum remains healthy, and further gains are possible considering the favourable conditions, George Pavel General Manager at Capex.com Middle East said.
Stock markets in the United Arab Emirates fell on Friday despite China's big stimulus steps as weak oil prices and ongoing regional geopolitical tensions continued to weigh on investor sentiment.
Oil prices, which fuel the region's growth, headed for significant weekly losses on a report that Saudi Arabia was preparing to abandon its unofficial price target of $100 a barrel for crude as it gets ready to increase output.
Brent futures edged up 0.2% to $71.74 a barrel at 1121 GMT but are down 3.7% for the week.
Abu Dhabi's index (.FTFADGI), opens new tab fell 0.5%, with its largest lender, First Abu Dhabi Bank (FAB.AD), opens new tab losing over 1.1% and Telecoms firm e& , shedding nearly 1%.
The main share index (.DFMGI) retreated 0.1% after three consecutive sessions of gains. Dubai's largest lender, Emirates NBD Bank (ENBD.DU), opens new tab, lost nearly 0.7% while tollgate operator Salik Co (SALIK.DU), opens new tab was down nearly 1%.
Investment firm Amanat Holding (AMANT.DU), opens new tab also fell nearly 0.9% as shares traded ex-dividend.
Despite the downturn in UAE equities, the positive momentum remains healthy, and further gains are possible considering the favourable conditions, George Pavel General Manager at Capex.com Middle East said.