Saudi Arabia’s PIF to Anchor $2 Billion Brookfield Mideast Fund - Bloomberg
Saudi Arabia will back Brookfield Asset Management Ltd.’s new $2 billion Middle East fund, giving the Canadian investment firm extra financial firepower to pursue deals in the oil-rich Gulf region.
The Public Investment Fund will anchor Brookfield Middle East Partners, which will invest in businesses in Saudi Arabia and the wider region, according a statement Wednesday. At least half of the fund will be allocated to deals within the kingdom and to international firms looking to expand locally — a move aimed at attracting foreign direct investment.
The memorandum of understanding was unveiled at the kingdom’s annual investors confab known as the Future Investment Initiative, confirming an earlier report from Bloomberg News. The deal strengthens ties between Brookfield and the PIF, which manage about $1 trillion in assets each.
The new fund will target buyouts, structured solutions and other investment opportunities across a range of strategic sectors.
“This MoU represents a step toward achieving PIF’s vision of attracting global capital and expertise to the region, while facilitating knowledge transfer and capacity-building within Saudi Arabia,” said Yazeed Al Humied, who is one of the fund’s two deputy governors and runs its Middle East and North Africa unit.
The PIF is Saudi Arabia’s go-to vehicle to carry out the ambitious domestic reform agenda of the country’s Crown Prince Mohammed bin Salman. It has been a prolific investor in recent years across the globe, although its focus has recently shifted to domestic markets where it’s the driving force behind mega-projects such as the $1.5 trillion Neom city development.
“People used to come to us and ask for money,” the fund’s Governor Yasir Al Rumayyan said Tuesday on a panel at the FII. “We are now seeing a shift from people wanting to take our money to people wanting to co-invest.”
The partnership marks the latest example of a foreign firm raising a Middle East-focused fund. Goldman Sachs Group Inc. is working on one, Bloomberg News has reported, while the PIF has committed $5 billion to BlackRock Inc. for local investments.
Last year, Brookfield said it would open an office in Riyadh, the latest international firm to set up shop in the kingdom. It’s already one of the Middle East’s most active and largest institutional investors with about $12 billion invested in recent years, mostly in the United Arab Emirates.
Until now, those investments were done through its global funds. The firm’s recent regional deals include investments in a major private school operator and a regional payments firm. It also sold a stake in the tallest office tower in Dubai’s financial district earlier this year.
Other international asset managers are also seeking to raise dedicated funds for the region. BlackRock Inc. is seeking $1 billion for a new Middle East infrastructure and private equity-focused fund with some of the region’s largest sovereign wealth funds, Bloomberg News reported in May.
Wednesday, 30 October 2024
VinFast in non-binding $1 bln funding deal with #UAE investors, source says | Reuters
VinFast in non-binding $1 bln funding deal with UAE investors, source says | Reuters
Vietnamese electric car maker VinFast has signed a non-binding deal with a consortium of Emirati investors to receive at least $1 billion in funding, a person with direct knowledge of the agreement said.
The source told Reuters there was no clear timeframe for the possible disbursement from the group, led by Emirates Driving Company (DRIVE.AD), opens new tab, a provider of driving education services in Abu Dhabi.
Bloomberg News earlier on Wednesday reported VinFast was set to receive at the least $1 billion in investments from the Emirati group.
Emirates Driving Company (EDC) did not immediately respond to an email seeking confirmation. Vingroup (VIC.HM), opens new tab, the parent company of VinFast, declined to comment about the size of the investment.
Vingroup said in a press release on Tuesday it had signed a memorandum of understanding with EDC that "will lead a consortium investing in VinFast," but Vingroup did not give details of the size of the possible investment.
Tuesday's press release and the source did not name any other investor.
VinFast listed on the Nasdaq in August last year when it said it had a number of strategic investors lining up but none have been announced yet.
The company in September reported a net loss of $773.5 million in its April-June quarter, an increase of 27% from the first quarter and 40% bigger than the same period last year.
Last week, it said it delivered 21,912 electric vehicles in the third quarter, up 66% from the sequentially previous quarter.
Volkswagen hit another bump in the road on Wednesday in what was already a difficult week.00:0201:58
Earlier this week, Vietnam signed a comprehensive economic partnership agreement with the United Arab Emirates, its first free-trade deal with a Middle East country.
Vietnamese electric car maker VinFast has signed a non-binding deal with a consortium of Emirati investors to receive at least $1 billion in funding, a person with direct knowledge of the agreement said.
The source told Reuters there was no clear timeframe for the possible disbursement from the group, led by Emirates Driving Company (DRIVE.AD), opens new tab, a provider of driving education services in Abu Dhabi.
Bloomberg News earlier on Wednesday reported VinFast was set to receive at the least $1 billion in investments from the Emirati group.
Emirates Driving Company (EDC) did not immediately respond to an email seeking confirmation. Vingroup (VIC.HM), opens new tab, the parent company of VinFast, declined to comment about the size of the investment.
Vingroup said in a press release on Tuesday it had signed a memorandum of understanding with EDC that "will lead a consortium investing in VinFast," but Vingroup did not give details of the size of the possible investment.
Tuesday's press release and the source did not name any other investor.
VinFast listed on the Nasdaq in August last year when it said it had a number of strategic investors lining up but none have been announced yet.
The company in September reported a net loss of $773.5 million in its April-June quarter, an increase of 27% from the first quarter and 40% bigger than the same period last year.
Last week, it said it delivered 21,912 electric vehicles in the third quarter, up 66% from the sequentially previous quarter.
Volkswagen hit another bump in the road on Wednesday in what was already a difficult week.00:0201:58
Earlier this week, Vietnam signed a comprehensive economic partnership agreement with the United Arab Emirates, its first free-trade deal with a Middle East country.
Gulf bourses end mixed, #Qatar retreats ahead of referendum | Reuters
Gulf bourses end mixed, Qatar retreats ahead of referendum | Reuters
Stock markets in the Middle East ended mixed on Wednesday, while the Qatari index tumbled ahead of a constitutional amendment referendum.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.4%, weighed down by a 1.8% fall in the ACWA Power Company (2082.SE), opens new tab, while Saudi Awwal Bank (1060.SE), opens new tab retreated 3%.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with toll operator Salik Company (SALIK.DU), opens new tab advancing 6.8% and Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, closing 1.7% higher.
Dubai - the regional trade and tourism hub - approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler Sheikh Mohammed bin Rashid al-Maktoum said in a post on X.
Sheikh Mohammed said that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
In Abu Dhabi the index (.FTFADGI), opens new tab added 0.2%, helped by a 2.7% increase in Aldar Properties (ALDAR.AD), opens new tab, a day after the developer reported a sharp rise in quarterly net profit.
The Qatari benchmark (.QSI), opens new tab dropped 1.2%, with most of its constituents in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which was down 1%.
Qatari Emir Sheikh Tamim bin Hamad Al Thani has set Nov. 5 as the date for a referendum on constitutional amendments, the Gulf country's Amiri Diwan administrative office reported on Tuesday.
The rare referendum is for citizens to vote on a set of constitutional amendments, including a proposal that would abandon an effort to introduce elections.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab losing 2.3%.
Saudi Arabia's benchmark index (.TASI), opens new tab lost 0.4%, weighed down by a 1.8% fall in the ACWA Power Company (2082.SE), opens new tab, while Saudi Awwal Bank (1060.SE), opens new tab retreated 3%.
Dubai's main share index (.DFMGI), opens new tab gained 0.5%, with toll operator Salik Company (SALIK.DU), opens new tab advancing 6.8% and Parkin Company (PARKIN.DU), opens new tab, which oversees public parking operations in the Emirates, closing 1.7% higher.
Dubai - the regional trade and tourism hub - approved a 2025-2027 budget on Tuesday with 272 billion dirham ($74.06 billion) of expenditure, the biggest in the emirate's history, against revenues of 302 billion dirhams, its ruler Sheikh Mohammed bin Rashid al-Maktoum said in a post on X.
Sheikh Mohammed said that next year's budget would achieve an operating surplus of 21% of total revenues for the first time.
In Abu Dhabi the index (.FTFADGI), opens new tab added 0.2%, helped by a 2.7% increase in Aldar Properties (ALDAR.AD), opens new tab, a day after the developer reported a sharp rise in quarterly net profit.
The Qatari benchmark (.QSI), opens new tab dropped 1.2%, with most of its constituents in negative territory including the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab, which was down 1%.
Qatari Emir Sheikh Tamim bin Hamad Al Thani has set Nov. 5 as the date for a referendum on constitutional amendments, the Gulf country's Amiri Diwan administrative office reported on Tuesday.
The rare referendum is for citizens to vote on a set of constitutional amendments, including a proposal that would abandon an effort to introduce elections.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.8%, with Talaat Mostafa Holding (TMGH.CA), opens new tab losing 2.3%.
FII: #SaudiArabia Upbeat on FDI as 2030 Goal Remains Distant - Bloomberg
FII: Saudi Arabia Upbeat on FDI as 2030 Goal Remains Distant - Bloomberg
Saudi Arabia sees recent trends in foreign direct investment moving in the right direction, while conceding the kingdom has a long way to go to meet its 2030 goal of attracting $100 billion a year.
Recent figures are “extremely positive,” Investment Minister Khalid Al-Falih said in an interview with Bloomberg Television at Saudi Arabia’s Future Investment Initiative in Riyadh on Tuesday. “All the leading indicators are pointing upward. All lights are flashing green.”
The path to reaching the 2030 target will be “steep” but “manageable,” he added.
The Saudi Investment Minister said trade shifts will happen but we shouldn’t ‘over-dramatize’ the risks of trade wars. Khalid Al-Falih also told Bloomberg that current FDI to Saudi Arabia is around 26 billion dollars and the plan is to grow to 100 billion dollars by 2030 as part of the kingdom’s ‘Vision 2030’. He spoke with Bloomberg’s Joumanna Bercetche on the sidelines of the Future Investment Initiative conference in Riyadh.
Saudi Arabia’s FDI inflows amounted to about $26 billion last year, above the government’s self-set target but still the lowest level since 2020. The data was recently revised higher, from $19 billion, to reflect what Al-Falih said was a methodology in line with International Monetary Fund standards.
The kingdom aims to quadruple FDI inflows by 2030 in a bid to share some of the financial burden of spending on its economic diversification plan. Crown Prince Mohammed Bin Salman’s government also sees foreign expertise as critical to training the local population in new industries like technology and minerals exploration and catalyzing growth in those sectors.
Saudi Arabia recently announced an overhaul of its investment law in a bid to cut bureaucratic red tape and make it easier for foreign investors to deploy cash into the country. The new rules are due to take effect next year.
Al-Falih spoke as global heavyweights in banking, finance and investing gathered in Riyadh to discuss Artificial Intelligence, the US election and state of economy, as well as geopolitical tensions in the Middle East. Among the most high-profile guests were Citigroup Inc. Chief Executive Officer Jane Fraser, BlackRock Inc.’s Larry Fink and David Solomon of Goldman Sachs Group Inc.
Goldman announced plans at FII to open an office in Riyadh’s new financial district next year. The US company was the first of the major international banks to obtain its regional headquarters license for Saudi Arabia earlier this year.
The Saudis require firms to establish a so-called RHQ or risk losing out on securing lucrative contracts with the government and its network of related entities.
Saudi Arabia has now granted around 540 RHQ licenses, Al-Falih said.
Saudi Arabia sees recent trends in foreign direct investment moving in the right direction, while conceding the kingdom has a long way to go to meet its 2030 goal of attracting $100 billion a year.
Recent figures are “extremely positive,” Investment Minister Khalid Al-Falih said in an interview with Bloomberg Television at Saudi Arabia’s Future Investment Initiative in Riyadh on Tuesday. “All the leading indicators are pointing upward. All lights are flashing green.”
The path to reaching the 2030 target will be “steep” but “manageable,” he added.
The Saudi Investment Minister said trade shifts will happen but we shouldn’t ‘over-dramatize’ the risks of trade wars. Khalid Al-Falih also told Bloomberg that current FDI to Saudi Arabia is around 26 billion dollars and the plan is to grow to 100 billion dollars by 2030 as part of the kingdom’s ‘Vision 2030’. He spoke with Bloomberg’s Joumanna Bercetche on the sidelines of the Future Investment Initiative conference in Riyadh.
Saudi Arabia’s FDI inflows amounted to about $26 billion last year, above the government’s self-set target but still the lowest level since 2020. The data was recently revised higher, from $19 billion, to reflect what Al-Falih said was a methodology in line with International Monetary Fund standards.
The kingdom aims to quadruple FDI inflows by 2030 in a bid to share some of the financial burden of spending on its economic diversification plan. Crown Prince Mohammed Bin Salman’s government also sees foreign expertise as critical to training the local population in new industries like technology and minerals exploration and catalyzing growth in those sectors.
Saudi Arabia recently announced an overhaul of its investment law in a bid to cut bureaucratic red tape and make it easier for foreign investors to deploy cash into the country. The new rules are due to take effect next year.
Al-Falih spoke as global heavyweights in banking, finance and investing gathered in Riyadh to discuss Artificial Intelligence, the US election and state of economy, as well as geopolitical tensions in the Middle East. Among the most high-profile guests were Citigroup Inc. Chief Executive Officer Jane Fraser, BlackRock Inc.’s Larry Fink and David Solomon of Goldman Sachs Group Inc.
Goldman announced plans at FII to open an office in Riyadh’s new financial district next year. The US company was the first of the major international banks to obtain its regional headquarters license for Saudi Arabia earlier this year.
The Saudis require firms to establish a so-called RHQ or risk losing out on securing lucrative contracts with the government and its network of related entities.
Saudi Arabia has now granted around 540 RHQ licenses, Al-Falih said.
Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg
Investcorp’s China-Backed Fund Inks Three Middle East Deals - Bloomberg
Investcorp Holdings has inked three deals through a new investment vehicle anchored by China’s sovereign wealth fund that was set up earlier this year to target opportunities within the Middle East.
“That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV. The biggest Mideast alternative asset manager had initially planned to set up a $1 billion fund, backed by China Investment Corp., to capitalize on growing ties between Gulf oil exporters and the world’s second-largest economy.
The fund will focus on investments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, reflecting growing international investor interest in the region, Kapoor said in an interview on the sidelines of the Future Investment Initiative in Riyadh.
“We’ve got three deals inside the fund, all of them are doing particularly well, and all of them in the same space, so consumer services, healthcare, business services,” he said.
Investcorp is among a raft of companies that are setting up Middle East-focused funds. BlackRock Inc. is set to get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the region and Goldman Sachs Group Inc. is also working to raise money for one.
The firm counts some of the Middle East’s wealthiest royals and business moguls among its backers. Abu Dhabi wealth fund Mubadala Investment Co. is also a shareholder, and Kapoor expects more partnerships with sovereign investors in the future.
“Those are rewarding partnerships, they last generations, they are not just one transaction,” he said. “Going forward, we would probably see more of those rather than fewer.”
Investcorp has about $53 billion assets under management, and hopes to grow that to $100 billion, according to Kapoor. “It is all about scaling up that business footprint” across the US, Europe, Middle East and Asia and across asset classes including private equity and private credit, he said.
Initially focused on investing in the US and Europe, Investcorp is perhaps best known for investments in Tiffany & Co. and Gucci Ltd., made in its early years. Its operations now include private equity, real estate, private credit and infrastructure investing.
The firm announced a sweeping reshuffle earlier this year, which resulted in the co-chief executive officer role being scrapped, with the chairman taking on more responsibilities. As part of those changes, Kapoor, who was a co-CEO, took on a new role as vice chairman and CIO.
Investcorp Holdings has inked three deals through a new investment vehicle anchored by China’s sovereign wealth fund that was set up earlier this year to target opportunities within the Middle East.
“That fund is coming along great, we are targeting about $750 million,” Chief Investment Officer Rishi Kapoor told Bloomberg TV. The biggest Mideast alternative asset manager had initially planned to set up a $1 billion fund, backed by China Investment Corp., to capitalize on growing ties between Gulf oil exporters and the world’s second-largest economy.
The fund will focus on investments in the Middle East, particularly Saudi Arabia and the United Arab Emirates, reflecting growing international investor interest in the region, Kapoor said in an interview on the sidelines of the Future Investment Initiative in Riyadh.
“We’ve got three deals inside the fund, all of them are doing particularly well, and all of them in the same space, so consumer services, healthcare, business services,” he said.
Investcorp is among a raft of companies that are setting up Middle East-focused funds. BlackRock Inc. is set to get as much as $5 billion from Saudi Arabia’s sovereign wealth fund to invest in the region and Goldman Sachs Group Inc. is also working to raise money for one.
The firm counts some of the Middle East’s wealthiest royals and business moguls among its backers. Abu Dhabi wealth fund Mubadala Investment Co. is also a shareholder, and Kapoor expects more partnerships with sovereign investors in the future.
“Those are rewarding partnerships, they last generations, they are not just one transaction,” he said. “Going forward, we would probably see more of those rather than fewer.”
Investcorp has about $53 billion assets under management, and hopes to grow that to $100 billion, according to Kapoor. “It is all about scaling up that business footprint” across the US, Europe, Middle East and Asia and across asset classes including private equity and private credit, he said.
Initially focused on investing in the US and Europe, Investcorp is perhaps best known for investments in Tiffany & Co. and Gucci Ltd., made in its early years. Its operations now include private equity, real estate, private credit and infrastructure investing.
The firm announced a sweeping reshuffle earlier this year, which resulted in the co-chief executive officer role being scrapped, with the chairman taking on more responsibilities. As part of those changes, Kapoor, who was a co-CEO, took on a new role as vice chairman and CIO.
#Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg
Dubai’s DIFC Suspends Firms Said to Be Key to Iran Oil Kingpin - Bloomberg
The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.
The emirate’s finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn’t public. Both firms appeared in recent days in the registry of the DIFC free zone as “inactive - suspended.” The registry doesn’t reflect the start date for the suspensions.
It’s not yet clear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees, but many others remain active, according to people with direct knowledge of the matter, who declined to be named speaking about private matters. The DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it, the people said.
The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they believe they should be allowed to continue. Meanwhile, they’re not allowed to operate. If authorities are satisfied with the additional information provided, then the suspension can be reversed.
Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., also appeared in recent days in the DIFC registry as “inactive - suspended.”
A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.
A spokesman for Ocean Leonid said in a statement on Tuesday that the company has filed its “formal notice of objection with the DIFC Registrar.”
“OL are in active discussions with the DIFC in order to provide all information required by the DIFC on all areas of interest to them relating to OL,” he said. “The company operates in full compliance with all relevant laws and regulations, and has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership being ISFAD Fund LP. Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC in order that the suspension is lifted based on actual documentary evidence established under law.”
Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva and Singapore, Bloomberg News reported on Oct. 24. A spokesman for Ocean Leonid said earlier this month the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.
A lawyer for Shamkhani said his client has no relationship with either Milavous or Ocean Leonid.
In August, Bloomberg News reported the role that Shamkhani, whose father is a senior adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, plays in the world of Iranian and Russian oil trading, with Milavous said to be operating as one of the parent firms in his network.
The stories are part of a year-long investigation that’s involved interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. The US has taken steps to crack down on the trading network, according to people familiar with the matter.
Shamkhani has denied most details in the Bloomberg reports, including owning any oil company, controlling a trading network or having a firm involved in commodities deals with Iran or Russia.
The Dubai International Financial Centre has suspended multiple companies that people familiar with the matter say are part of a network overseen by Iranian oil trader Hossein Shamkhani.
The emirate’s finance hub took the actions against Milavous Group Ltd. and Ocean Leonid Investments Ltd. amid mounting pressure from international regulators, said the people, who requested anonymity as the information isn’t public. Both firms appeared in recent days in the registry of the DIFC free zone as “inactive - suspended.” The registry doesn’t reflect the start date for the suspensions.
It’s not yet clear how significant the move will be for Shamkhani’s operations. The companies are two of the most important in the network he oversees, but many others remain active, according to people with direct knowledge of the matter, who declined to be named speaking about private matters. The DIFC’s purview is limited to the free zone itself, a finance hub in Dubai, and other firms in Shamkhani’s network operate outside it, the people said.
The suspensions mean the entities must either wind down their operations or share more information with the regulator to explain why they believe they should be allowed to continue. Meanwhile, they’re not allowed to operate. If authorities are satisfied with the additional information provided, then the suspension can be reversed.
Milavous Holding Ltd. and Milavous Commodities Holding Ltd., which are registered to the same address as Milavous Group Ltd., also appeared in recent days in the DIFC registry as “inactive - suspended.”
A spokesperson for the DIFC declined to comment, while representatives for Milavous didn’t respond to requests for comment.
A spokesman for Ocean Leonid said in a statement on Tuesday that the company has filed its “formal notice of objection with the DIFC Registrar.”
“OL are in active discussions with the DIFC in order to provide all information required by the DIFC on all areas of interest to them relating to OL,” he said. “The company operates in full compliance with all relevant laws and regulations, and has been transparent with all relevant parties, including the DIFC, regarding its operations and ownership being ISFAD Fund LP. Ocean Leonid has nothing to hide and is confident that it will be able to convey the facts of the matter to the DIFC in order that the suspension is lifted based on actual documentary evidence established under law.”
Ocean Leonid is a hedge fund overseen by Shamkhani with operations in London, Dubai, Geneva and Singapore, Bloomberg News reported on Oct. 24. A spokesman for Ocean Leonid said earlier this month the company categorically rejects the allegation that Shamkhani is involved in or oversees the firm.
A lawyer for Shamkhani said his client has no relationship with either Milavous or Ocean Leonid.
In August, Bloomberg News reported the role that Shamkhani, whose father is a senior adviser to Iran’s Supreme Leader Ayatollah Ali Khamenei, plays in the world of Iranian and Russian oil trading, with Milavous said to be operating as one of the parent firms in his network.
The stories are part of a year-long investigation that’s involved interviews with several dozen people familiar with firms in his orbit and documents seen by Bloomberg, including corporate records. The US has taken steps to crack down on the trading network, according to people familiar with the matter.
Shamkhani has denied most details in the Bloomberg reports, including owning any oil company, controlling a trading network or having a firm involved in commodities deals with Iran or Russia.