#UAE state oil group ADNOC sets up international investment arm XRG | Reuters

UAE state oil group ADNOC sets up international investment arm XRG | Reuters

United Arab Emirates state oil group ADNOC on Wednesday announced the launch of XRG, an investment company focusing on lower-carbon energy and chemicals, valued at more than $80 billion.

The company, which aims to more than double its asset value in the next decade, will initially focus on "transformational" global investments when it begins operating in the first quarter of 2025, its parent Abu Dhabi National Oil Company said in a statement.

It will seek to boost its value by taking advantage of "the transformation of energy, exponential growth of AI, and the rise of emerging economies," the statement said.

ADNOC has done a string of acquisitions in gas and chemicals, which along with LNG and renewables it considers pillars for its future growth.

Earlier this month, German plastics and chemicals maker Covestro said its management and supervisory boards supported ADNOC's $16.3 billion takeover offer.

The Covestro deal is one of the largest foreign takeovers by a Gulf state as countries in the region seek to reduce their dependence on oil amid the global switch to cleaner energy.

XRG was announced following an ADNOC board meeting, chaired by UAE President Sheikh Mohammed bin Zayed Al Nahyan. The company was created to accelerate ADNOC's international growth and drive greater value, a separate ADNOC statement said.

XRG's global chemicals business aims to be among the world's top five, expecting a 70% rise in global demand for chemical and specialty products by 2050, the statement said.

XRG's international gas business will seek an integrated portfolio to help to meet a projected 15% rise in natural gas demand in the next decade and 65% increase in demand for liquefied natural gas by 2050.

ADNOC's board on Wednesday also approved directing 200 billion dirhams ($54.45 billion) to the local economy over the next five years as part of the oil company's in-country value programme.

Most Gulf bourses in red ahead of US inflation data | Reuters

Most Gulf bourses in red ahead of US inflation data | Reuters

Most stock markets in the Gulf ended lower on Wednesday as investors awaited key inflation data from the world's biggest economy for cues on the likely scale of a Federal Reserve rate cut next month.

The Personal Consumption Expenditure report, the central bank's preferred inflation gauge, is due at 10 a.m. ET.

Minutes from the Fed's November meeting, released on Tuesday, showed policymakers were uncertain about the outlook for interest-rate cuts and how much the current rates were restricting the economy.

Traders are now betting on a 62.8% probability the central bank will lower borrowing costs by 25 basis points in December, according to CME Group's FedWatch Tool.

The Fed's decisions have a significant impact on monetary policy in the Gulf as most of the region's currencies are pegged to the U.S. dollar.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 1.2%, dragged down by a 2.8% fall in aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab and a 1.9% decrease in Al Rajhi Bank (1120.SE), opens new tab.

However, Tamkeen Human Resources (1835.SE), opens new tab surged 30% to 65 riyals a piece in market debut.

Separately, the kingdom on Tuesday approved its state budget for 2025 forecasting a fiscal deficit of 101 billion riyals ($26.90 billion), as its finance minister said Saudi Arabia will continue to spend on gigaprojects designed to wean the economy off oil.

Dubai's main share index (.DFMGI), opens new tab lost 0.5%, with top lender Emirates NBD (ENBD.DU), opens new tab sliding 3.4% and toll operator Salik (SALIK.DU), opens new tab down 1.8%.

In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.

Oil prices - a catalyst for the Gulf's financial markets - were steady as investors monitored the ceasefire between Israel and Lebanese armed group Hezbollah.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab retreated 1.5%, hit by a 1.8% fall in top lender Commercial International Bank (COMI.CA), opens new tab.