Kuwait and Egypt See Over $29 Billion Investor Demand for Dollar Bond Offers - Bloomberg
A rush of bond sales in Middle East and North Africa picked up speed on Tuesday, with Kuwait and Egypt taking advantage of investor appetite for higher dollar yields before US interest rates fall.
Kuwait is tapping the international bond market for the first time in eight years, after a long-delayed local law was approved and opened the way for a return to global debt markets. Egypt, whose high interest rates make it popular with many investors, is seeking to diversify its financing sources as it claws its way back from the worst economic crisis in a generation.
“The array of issuances comes as countries make use of a good window to issue following the resumption of the easing cycle in the US and ahead of the end-year close,” said Mohamed Abu Basha, head of macro analysis at Cairo-based investment bank EFG Hermes.
Aggregate demand for Kuwait’s three, five and 10-year notes is close to $28 billion. Price guidance points to as low as 40 basis points over US Treasuries for the shortest tranche and as high as 60 basis points for the longest.
Egypt is likely to issue $1.5 billion worth of bonds, after receiving offers of over $8.9 billion for its dollar-denominated Islamic bonds, with maturities of long three and seven years. Price guidance stands at 6.375% and around 8%, respectively.
All the information is from a person familiar with the matter, who asked not to be identified. Final terms of the deals, including the size and yield, are expected to be disclosed later on Tuesday.
Separately, Bahrain has mandated banks for dollar-denominated bonds with maturities of long eight and twelve years. Algeria is planning to raise 297 billion dinars ($2.3 billion) from the sale of Islamic bonds, a rare issuance of debt by the OPEC member, although it will be offered only to Algerian investors, Asharq TV reported.
Saudi Arabia has already raised nearly $20 billion in dollar- and euro-denominated debt this year, making it the biggest issuer among emerging markets along with Mexico, according to data compiled by Bloomberg.
The increase in bond sales from the Middle East comes with lower oil and gas prices widening many governments’ fiscal deficits.
Bahrain’s bonds have given investors total returns of more than 10% this year. While investors are concerned about the country’s high funding needs, they are keen to benefit from its high yields and a compression in risk spreads across most emerging markets.
Egypt’s existing Islamic bonds have lagged this year even as their emerging-market peers gain because of a weaker dollar. The country’s February 2026 sukuk have dropped 1.8%, but have given investors a total return of 6.2% due to hefty coupon payments.
Conventional dollar bonds have fared better, giving investors a 17% total return this year.
Tuesday, 30 September 2025
How Jared Kushner brokered the $55bn takeover of Electronic Arts #SaudiArabia
How Jared Kushner brokered the $55bn takeover of Electronic Arts
Electronic Arts has for years been coveted by Saudi Arabia’s sovereign wealth fund and the billionaire dealmaker Egon Durban. But it was Donald Trump’s son-in-law Jared Kushner who unlocked its $55bn takeover.
Electronic Arts has for years been coveted by Saudi Arabia’s sovereign wealth fund and the billionaire dealmaker Egon Durban. But it was Donald Trump’s son-in-law Jared Kushner who unlocked its $55bn takeover.
Kushner, who is married to Trump’s eldest daughter Ivanka, began sketching out the largest buyout in Wall Street history earlier this year with Durban, who co-heads tech-focused private equity group Silver Lake.
They approached EA, codenamed “Eagle” by the dealmakers, with a firm bid about a month ago. Facing a powerful group of bidders with influence stretching from Riyadh to Washington, EA’s board dug in to extract the highest possible price.
Monday’s takeover of EA further cements a financial axis between the US president’s orbit and Washington’s most powerful ally in the Arab world.
The $55bn buyout — backed by $36bn in equity and $20bn in JPMorgan debt — has thrust Kushner into the Wall Street spotlight. He acted as a key figure in constructing the audacious buyout.
Kushner’s investment firm will end up owning about 5 per cent of EA, said people briefed about the matter. Saudi Arabia’s Public Investment Fund (PIF) will become the majority owner of the video game maker as it has signed the largest equity cheque, followed by Silver Lake, which will be a large minority shareholder, these people added.
People involved in the transaction declined to comment beyond their public statements.
Durban had been studying a takeover of EA for more than a decade. But it was Kushner who convinced PIF to go for the take-private bid, said people briefed on the matter.
Kushner leveraged deep ties he built in Saudi Arabia as a top envoy during Trump’s first presidency. EA’s management also took several trips to the kingdom as the transaction progressed. Turqi Alnowaiser, PIF’s deputy governor, led the negotiations for the fund.
The deal is a bold wager by Silver Lake, Kushner’s Affinity Partners, Saudi Arabia’s wealth fund and America’s largest bank. They are betting artificial intelligence will fuel an entertainment boom and yield major corporate cost savings by reducing production expenses for games.
Ultimately, the takeover won the support of the kingdom’s crown prince Mohammed bin Salman and JPMorgan’s Jamie Dimon, America’s leading banker. Insiders expect it will be backed by the US president, as he treats Riyadh as an important US ally.
“Kushner has a personal relationship and he has deep ties in Saudi Arabia. He is very comfortable operating in the Middle East. It created a basis of trust,” said a person briefed on the talks.
Over the past decade, the crown prince has poured billions into tech and related investments as part of his drive to diversify the nation’s economy away from oil. He earmarked $38bn for investments via PIF’s Savvy Games unit in video game companies, one of his favourite hobbies.
PIF also holds stakes in other companies in the sector such as Nintendo and Take-Two Interactive.
The takeover of EA, in which PIF already invested billions of dollars, underscores this effort financially and culturally, in a kingdom that until recent years banned cinemas and concerts but is now seeking to position itself as a global hub for entertainment and innovation.
Silver Lake’s Durban had studied a takeover of EA in 2011, but a deal never materialised. He was eager to work with Kushner, whose fund Affinity Partners is backed by PIF, believing the company was misunderstood by public markets.
EA’s video game titles such as EA Sports FC and Madden NFL will add to Silver Lake’s large bets on sporting assets, such as the parent company of Ultimate Fighting Championship. The firm believes AI will lead to an explosion of leisure time, fuelling growing spending on sports and entertainment.
“These are two of the biggest investors in sport who also now own the largest gaming-focused sports business,” said a top adviser involved in the talks.
The consortium plans to invest additional money into EA or borrow more money to fund acquisitions, said the people. The buyers could also fund large acquisitions of other gaming companies using EA’s private shares, they added. If the deal falls apart, the consortium owes EA a $1bn break fee.
The initial pivotal moment in the months-long takeover negotiation occurred around Labor Day when the first real bid landed, said people briefed about the matter.
“Although the first offer was below the company’s expectations, it was close enough to provide line of sight on a deal,” said a person briefed about the matter.
EA shares have stagnated on public markets for half a decade. So its board decide to move ahead and extract as much as possible from the buyers.
The company enlisted Goldman Sachs and elite law firm Wachtell Lipton to negotiate the financial terms, an effort code named Project Oak.
Their task was to hold the line against Silver Lake, known on Wall Street as a tough negotiator often unwilling to cave on price.
The consortium readied its knockout bid in mid September. They wanted a single bank to arrange the full financing, choosing JPMorgan.
Durban made the call. JPMorgan CEO Dimon had supported Silver Lake and Michael Dell’s efforts to acquire technology group EMC Corporation a decade ago with a $50bn debt package that eventually yielded one of Wall Street’s largest windfalls.
On September 17, Durban dialled Dimon’s office. His secretary said the boss was out of office in Washington — where CEOs now regularly spend greater amounts of time.
Minutes later, Dimon called back. The answer was swift. JPMorgan would stand behind a $20bn financing package, one of the largest to a company that would be rated below investment grade. Dimon instructed his capital markets bankers to get it delivered in less than a week.
“Once JPMorgan was there, we knew the deal had real momentum,” said one person involved in the process, though the final price still had to be settled. “By the last week of talks, they were confident the transaction would close,” they added.
The buyer group will pay $210 a share, a 25 per cent premium to EA’s share price on the day before the deal when public. They will retain EA CEO Andrew Wilson, whom Durban credited on Monday with substantially growing its profits.
While a deal of this kind could face regulatory scrutiny in Washington, several people said they expected the transaction to go through fairly easily, citing the influence of Kushner and Saudi Arabia on the White House.
“We are in a regulatory environment that is welcoming of [Saudi Arabia]. We are not in what was the previous regime,” said a person briefed on the transaction. They said Kushner’s participation in the consortium could prove valuable if the deal were to unexpectedly hit a snag.
Or, as another person close to the inner workings of the Trump administration put it: “What regulator is going to say no to the president’s son-in-law?”
Mideast Stocks: Gulf markets end mixed on further US rate cut hopes, falling oil
Mideast Stocks: Gulf markets end mixed on further US rate cut hopes, falling oil
Stock markets in the Gulf ended mixed on Tuesday as lower oil prices tempered growing expectations of further U.S. Federal Reserve rate cuts. Recent U.S. economic data have had traders pricing in a roughly 89% chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group's FedWatch tool.
Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI and the non-farm payrolls report on Friday for further clues on the economy's health. Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index gained 0.6%, extending gains from the previous session, led by a 1.8% rise in Al Rajhi Bank and a 3.5% surge in Dar Al Arkan Real Estate Development Company. Dar Global, the international arm of Dar Al Arkan Real Estate Development, plans to build a $1 billion Trump Plaza project in Saudi Arabia's Jeddah as U.S. President Donald Trump's family business expands in the Gulf, the company said on Monday.
The Saudi market's recovery could be sustained by several factors, including the solid fundamentals of the non-oil sector, the potential for continued monetary policy easing, and the easing of foreign ownership rules, said Daniel Takieddine, Co-founder and CEO of Sky Links Capital Group.
"Conversely, uncertainty and continued volatility in oil prices at current levels remain a risk to broader market sentiment, especially if prices decline further."
Stock markets in the Gulf ended mixed on Tuesday as lower oil prices tempered growing expectations of further U.S. Federal Reserve rate cuts. Recent U.S. economic data have had traders pricing in a roughly 89% chance of a 25-basis-point reduction at the next Fed meeting in October, according to CME Group's FedWatch tool.
Investors now await U.S. data on job openings, private payrolls, the ISM manufacturing PMI and the non-farm payrolls report on Friday for further clues on the economy's health. Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index gained 0.6%, extending gains from the previous session, led by a 1.8% rise in Al Rajhi Bank and a 3.5% surge in Dar Al Arkan Real Estate Development Company. Dar Global, the international arm of Dar Al Arkan Real Estate Development, plans to build a $1 billion Trump Plaza project in Saudi Arabia's Jeddah as U.S. President Donald Trump's family business expands in the Gulf, the company said on Monday.
The Saudi market's recovery could be sustained by several factors, including the solid fundamentals of the non-oil sector, the potential for continued monetary policy easing, and the easing of foreign ownership rules, said Daniel Takieddine, Co-founder and CEO of Sky Links Capital Group.
"Conversely, uncertainty and continued volatility in oil prices at current levels remain a risk to broader market sentiment, especially if prices decline further."
The Saudi index surged 7.5% in September 2025, marking its largest monthly gain since January 2022. However, oil giant Saudi Aramco declined 1.5%.
Oil prices - a catalyst for the Gulf's financial markets - fell ahead of another anticipated production increase by OPEC+ and as the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced market expectations of a supply surplus.
In Qatar, the index added 0.5%, with Qatar National Bank, the Gulf's biggest lender by assets, gaining 2%.
Oil prices - a catalyst for the Gulf's financial markets - fell ahead of another anticipated production increase by OPEC+ and as the resumption of oil exports from Iraq's Kurdistan region via Turkey reinforced market expectations of a supply surplus.
In Qatar, the index added 0.5%, with Qatar National Bank, the Gulf's biggest lender by assets, gaining 2%.
The Abu Dhabi index finished 0.2% higher.
Dubai's main share index dropped 0.5%, hit by a 1.9% fall in blue-chip developer Emaar Properties. The emirate's index fell 3.7% in September, extending its monthly losses.
According to Takieddine, the Dubai market remains in a correction phase.
Outside the Gulf, Egypt's blue-chip index finished 0.8% higher to 36,670 point, trading at it highest, with Commercial International Bank increasing 1.3%.
According to Takieddine, the Dubai market remains in a correction phase.
Outside the Gulf, Egypt's blue-chip index finished 0.8% higher to 36,670 point, trading at it highest, with Commercial International Bank increasing 1.3%.
The Central Bank of Egypt is expected to lower its overnight interest rates by 100 basis points on Thursday as inflation continues to abate, a Reuters poll showed.
Bond-Deal Flurry Shows Middle East’s Appeal Even as Spreads Drop - Bloomberg
Bond-Deal Flurry Shows Middle East’s Appeal Even as Spreads Drop - Bloomberg
The Middle East and North Africa are in the grips of a bond-sale fever as investors shrug off lower oil prices and razor-thin credit spreads in a hunt for yields.
The government of Kuwait is returning to international debt markets after eight years; Egypt mandated banks for dollar-denominated Islamic bonds; Algeria plans a sukuk for its nationals. Moroccan bonds rallied in the secondary market after S&P Global Ratings awarded the country the only investment grade in Africa.
All this buzz came after Abu Dhabi pulled off an unprecedented milestone last week — selling its 10-year dollar bond at a mere 18 basis points above Treasury yields. That spread was about 94% below the average risk premium for emerging markets.
Demand for the bond was driven by yield-focused, rating-sensitive local and Asian investors, resulting in the “tightest-ever 10-year tranche in all of emerging markets,” according to Fady Gendy, a fixed-income portfolio manager at Arqaam Capital Ltd. in Dubai.
The bond rush comes at an unlikely time for the region, which is home to many countries that rely on oil revenues to balance national budgets and fund infrastructure projects. Brent crude has dropped 7.6% this year, the worst showing since 2020.
But investors have also been talking about how the extra yield regional bonds offer over Treasuries has been shrinking to multiyear lows. JPMorgan Chase & Co.’s measure of Mideast sovereign spread fell to 250 basis points in July, the lowest since 2006.
While Mideast spreads are narrow, they still offer a better risk-reward than some Asian borrowers and lower-rated EM peers, Gendy said. Investors continue to make decent returns from coupons and market moves, he added.
Kuwait’s return to capital markets will depend on that appeal. The OPEC member is looking to issue a bond with tranches of three, five and 10 years. That follows a decision by the cabinet in March to approve a borrowing law that had been held up for years by political wrangling.
“Kuwait will benefit from scarcity value, considering this is the first Eurobond issuance since 2017,” Gendy said.
Egypt, one of the most popular countries among carry traders, began the process to issue three-year and seven-year dollar bonds. The country has a compelling macro story, underpinned by slowing inflation, rates going lower, higher foreign reserves and a stronger currency, Gendy said. The tightening of its spreads allows the government to lock in attractive borrowing costs, he said.
Algeria, a rare issuer, has only narrow coverage among EM credit investors, but its plan to raise 297 billion dinars ($2.3 billion) from its first-ever sovereign sukuk issuance is creating a buzz. The sale will be limited to Algerian nationals.
“Bringing sovereign deals to the market that are index-eligible will help put the country on the map and provide name diversification for investors,” said Gendy.
The Middle East and North Africa are in the grips of a bond-sale fever as investors shrug off lower oil prices and razor-thin credit spreads in a hunt for yields.
The government of Kuwait is returning to international debt markets after eight years; Egypt mandated banks for dollar-denominated Islamic bonds; Algeria plans a sukuk for its nationals. Moroccan bonds rallied in the secondary market after S&P Global Ratings awarded the country the only investment grade in Africa.
All this buzz came after Abu Dhabi pulled off an unprecedented milestone last week — selling its 10-year dollar bond at a mere 18 basis points above Treasury yields. That spread was about 94% below the average risk premium for emerging markets.
Demand for the bond was driven by yield-focused, rating-sensitive local and Asian investors, resulting in the “tightest-ever 10-year tranche in all of emerging markets,” according to Fady Gendy, a fixed-income portfolio manager at Arqaam Capital Ltd. in Dubai.
The bond rush comes at an unlikely time for the region, which is home to many countries that rely on oil revenues to balance national budgets and fund infrastructure projects. Brent crude has dropped 7.6% this year, the worst showing since 2020.
But investors have also been talking about how the extra yield regional bonds offer over Treasuries has been shrinking to multiyear lows. JPMorgan Chase & Co.’s measure of Mideast sovereign spread fell to 250 basis points in July, the lowest since 2006.
While Mideast spreads are narrow, they still offer a better risk-reward than some Asian borrowers and lower-rated EM peers, Gendy said. Investors continue to make decent returns from coupons and market moves, he added.
Kuwait’s return to capital markets will depend on that appeal. The OPEC member is looking to issue a bond with tranches of three, five and 10 years. That follows a decision by the cabinet in March to approve a borrowing law that had been held up for years by political wrangling.
“Kuwait will benefit from scarcity value, considering this is the first Eurobond issuance since 2017,” Gendy said.
Egypt, one of the most popular countries among carry traders, began the process to issue three-year and seven-year dollar bonds. The country has a compelling macro story, underpinned by slowing inflation, rates going lower, higher foreign reserves and a stronger currency, Gendy said. The tightening of its spreads allows the government to lock in attractive borrowing costs, he said.
Algeria, a rare issuer, has only narrow coverage among EM credit investors, but its plan to raise 297 billion dinars ($2.3 billion) from its first-ever sovereign sukuk issuance is creating a buzz. The sale will be limited to Algerian nationals.
“Bringing sovereign deals to the market that are index-eligible will help put the country on the map and provide name diversification for investors,” said Gendy.
#Kuwait Starts Its First Sale Of Dollar Bonds in Eight Years - Bloomberg
Kuwait Starts Its First Sale Of Dollar Bonds in Eight Years - Bloomberg
Investor orders for Kuwait’s first international bond sale in eight years have already topped $20 billion, underscoring strong appetite for the OPEC member’s debt.
The country is marketing tranches of three, five and 10 years that are expected to be rated A+/AA by S&P and Fitch, according to a person familiar with the matter, who asked not to be identified. Initial price talk is around 70 basis points over US Treasuries for the shortest tranche and around 85 basis points for the longest one, the person said. Final terms on the size and spreads are expected later Tuesday.
The sovereign’s cabinet in March approved a long-delayed debt law that paved the way for its return to global markets, following years of political deadlock. The state has one outstanding dollar bond, a $4.5 billion note due 2027, which trades at a yield of about 4.3%.
Kuwait, one of the strongest credits in emerging markets, has been plugging budget deficits by drawing on its General Reserve Fund, including selling assets to the Future Generations Fund last year. Both are managed by the Kuwait Investment Authority.
The Gulf state of around 5 million people is the world’s biggest oil producer on a capita basis. It’s rated A1 by Moody’s Ratings, the same level as Japan and China.
Its debt-to-GDP ratio is less than 10%, IMF data show, though the Washington-based lender projects that figure will climb to about 25% by 2030 — still low relative to most sovereign bond issuers — as the country borrows more to cover fiscal shortfalls.
Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Mizuho are managing the sale.
Investor orders for Kuwait’s first international bond sale in eight years have already topped $20 billion, underscoring strong appetite for the OPEC member’s debt.
The country is marketing tranches of three, five and 10 years that are expected to be rated A+/AA by S&P and Fitch, according to a person familiar with the matter, who asked not to be identified. Initial price talk is around 70 basis points over US Treasuries for the shortest tranche and around 85 basis points for the longest one, the person said. Final terms on the size and spreads are expected later Tuesday.
The sovereign’s cabinet in March approved a long-delayed debt law that paved the way for its return to global markets, following years of political deadlock. The state has one outstanding dollar bond, a $4.5 billion note due 2027, which trades at a yield of about 4.3%.
Kuwait, one of the strongest credits in emerging markets, has been plugging budget deficits by drawing on its General Reserve Fund, including selling assets to the Future Generations Fund last year. Both are managed by the Kuwait Investment Authority.
The Gulf state of around 5 million people is the world’s biggest oil producer on a capita basis. It’s rated A1 by Moody’s Ratings, the same level as Japan and China.
Its debt-to-GDP ratio is less than 10%, IMF data show, though the Washington-based lender projects that figure will climb to about 25% by 2030 — still low relative to most sovereign bond issuers — as the country borrows more to cover fiscal shortfalls.
Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Mizuho are managing the sale.
Monday, 29 September 2025
JPMorgan Pitches ‘Compelling’ Mideast Energy Pivot to Clients - Bloomberg
JPMorgan Pitches ‘Compelling’ Mideast Energy Pivot to Clients - Bloomberg
JPMorgan Chase & Co. is giving a group of its clients front-row access to the energy transition that’s underway in the Gulf states, as the region’s efforts to pivot away from fossil-fuel dependence generate growing investor interest.
“It’s a very compelling story,” said Hannah Lee, Asia-Pacific equity thematic and head of sustainable investing research at JPMorgan Securities. That applies “both for their own electricity generation, but also for the potential to export clean energy at some point in the future.”
JPMorgan will be taking a group of institutional clients, some with an emerging markets and Asia focus, to Saudi Arabia next month. The trip will serve to raise investor awareness around the energy transformation that’s underway across many of the Gulf states, Lee said.
For now, the Middle East remains a bastion of fossil-fuel dominance. It’s home to about 30% of global oil production, and is coming to the clean-energy transition later than many other major economies, including the US, India and China. But the low base from which the Middle East is starting underpins the opportunity to generate returns from early green investments, according to Lee.
“Our entire renewable energy complex of analysts” has been following the build-out in the Middle East, she said. That analysis, which has covered “batteries and renewables and transformers and everything,” has identified “interesting new commitments out of some of the Middle Eastern, Gulf states on renewable energy and energy transition, of which Saudi Arabia is very notable.”
Gulf state efforts to explore clean energy gathered pace after Dubai hosted the annual United Nations climate change conference in 2023, also known as COP28, according to JPMorgan.
This year, the region is expected to spend $10 billion on renewable and nuclear power generation. That’s still less than a tenth of its projected investment in supplying oil and gas, according to the International Energy Agency. In the coming decade, however, solar photo-voltaic capacity in the Middle East and North Africa is expected to increase tenfold, the IEA estimates.
JPMorgan is drawing investors’ attention to clean-energy opportunities in the Middle East at a time when capital previously destined for the US looks for other destinations. That’s amid growing evidence that a number of institutional investors have been put off by President Donald Trump’s escalating attacks on green energy.
Saudi Arabia has set a target of 130 gigawatts of installed renewable capacity by 2030, and will rely on renewables for half the electricity it generates. Abu Dhabi aims to produce 60% of its electricity from renewables and nuclear by 2035. Both sets of targets will require significant investments.
Data provider Kpler estimates that Saudi Arabia is installing 12.8 gigawatts in renewable energy capacity this year. Power demand from data centers and water desalination are further expected to drive renewables growth in Saudi Arabia. As of 2024, the Saudi Water Authority reported that 20% of the energy used in its new desalination plants came from renewable sources, primarily solar power, the Kpler report stated.
However, the stock market has yet to reward some of the biggest players in the region, with the share price of Saudi Arabian utility Acwa Power Co. down by roughly half this year.
Fossil-fuel behemoth Saudi Aramco, meanwhile, has lost about 13% of its market value in the same period, as excess supply drives down oil prices. The company’s importance to the Saudi economy means its share price losses have left a dent on the kingdom’s main stock index, which is down about 7% this year. Dubai’s benchmark equity index, meanwhile, is up about 14%.
Investor interest in the Gulf states has picked up more broadly of late, as the region’s low taxes and light-touch regulations lure hedge funds, private equity firms and wealthy individuals. At the same time, Middle Eastern efforts to dedicate capital to data centers is laying the foundations for a surge in energy demand. Deals to date include a $3 billion agreement backed by Qatar Investment Authority to finance and invest in data centers.
Lee says JPMorgan also expects the region to benefit from growing trade and investment ties with China, as the world’s biggest clean-tech economy steps up exports to developing nations. Chinese companies have sharply increased foreign investment plans in recent years, with more than 360 manufacturing projects announced since 2022.
The Silk Road Fund and various Chinese firms have already signed billions of dollars worth of investments in Saudi Arabia to help the kingdom achieve its renewables targets under Vision 2030.
Saudi Arabia’s abundant sunshine combined with its ability to pump capital into projects it decides to back has already helped it achieve some of the world’s lowest average costs of producing electricity (known as levelized costs of electricity, or LCOE), according to Norway-based energy research firm Rystad Energy.
“It’s quite an interesting trend and plays into the increased South-South trade cooperation that we’ve seen kind of growing over the last couple of years,” Lee said.
JPMorgan Chase & Co. is giving a group of its clients front-row access to the energy transition that’s underway in the Gulf states, as the region’s efforts to pivot away from fossil-fuel dependence generate growing investor interest.
“It’s a very compelling story,” said Hannah Lee, Asia-Pacific equity thematic and head of sustainable investing research at JPMorgan Securities. That applies “both for their own electricity generation, but also for the potential to export clean energy at some point in the future.”
JPMorgan will be taking a group of institutional clients, some with an emerging markets and Asia focus, to Saudi Arabia next month. The trip will serve to raise investor awareness around the energy transformation that’s underway across many of the Gulf states, Lee said.
For now, the Middle East remains a bastion of fossil-fuel dominance. It’s home to about 30% of global oil production, and is coming to the clean-energy transition later than many other major economies, including the US, India and China. But the low base from which the Middle East is starting underpins the opportunity to generate returns from early green investments, according to Lee.
“Our entire renewable energy complex of analysts” has been following the build-out in the Middle East, she said. That analysis, which has covered “batteries and renewables and transformers and everything,” has identified “interesting new commitments out of some of the Middle Eastern, Gulf states on renewable energy and energy transition, of which Saudi Arabia is very notable.”
Gulf state efforts to explore clean energy gathered pace after Dubai hosted the annual United Nations climate change conference in 2023, also known as COP28, according to JPMorgan.
This year, the region is expected to spend $10 billion on renewable and nuclear power generation. That’s still less than a tenth of its projected investment in supplying oil and gas, according to the International Energy Agency. In the coming decade, however, solar photo-voltaic capacity in the Middle East and North Africa is expected to increase tenfold, the IEA estimates.
JPMorgan is drawing investors’ attention to clean-energy opportunities in the Middle East at a time when capital previously destined for the US looks for other destinations. That’s amid growing evidence that a number of institutional investors have been put off by President Donald Trump’s escalating attacks on green energy.
Saudi Arabia has set a target of 130 gigawatts of installed renewable capacity by 2030, and will rely on renewables for half the electricity it generates. Abu Dhabi aims to produce 60% of its electricity from renewables and nuclear by 2035. Both sets of targets will require significant investments.
Data provider Kpler estimates that Saudi Arabia is installing 12.8 gigawatts in renewable energy capacity this year. Power demand from data centers and water desalination are further expected to drive renewables growth in Saudi Arabia. As of 2024, the Saudi Water Authority reported that 20% of the energy used in its new desalination plants came from renewable sources, primarily solar power, the Kpler report stated.
However, the stock market has yet to reward some of the biggest players in the region, with the share price of Saudi Arabian utility Acwa Power Co. down by roughly half this year.
Fossil-fuel behemoth Saudi Aramco, meanwhile, has lost about 13% of its market value in the same period, as excess supply drives down oil prices. The company’s importance to the Saudi economy means its share price losses have left a dent on the kingdom’s main stock index, which is down about 7% this year. Dubai’s benchmark equity index, meanwhile, is up about 14%.
Investor interest in the Gulf states has picked up more broadly of late, as the region’s low taxes and light-touch regulations lure hedge funds, private equity firms and wealthy individuals. At the same time, Middle Eastern efforts to dedicate capital to data centers is laying the foundations for a surge in energy demand. Deals to date include a $3 billion agreement backed by Qatar Investment Authority to finance and invest in data centers.
Lee says JPMorgan also expects the region to benefit from growing trade and investment ties with China, as the world’s biggest clean-tech economy steps up exports to developing nations. Chinese companies have sharply increased foreign investment plans in recent years, with more than 360 manufacturing projects announced since 2022.
The Silk Road Fund and various Chinese firms have already signed billions of dollars worth of investments in Saudi Arabia to help the kingdom achieve its renewables targets under Vision 2030.
Saudi Arabia’s abundant sunshine combined with its ability to pump capital into projects it decides to back has already helped it achieve some of the world’s lowest average costs of producing electricity (known as levelized costs of electricity, or LCOE), according to Norway-based energy research firm Rystad Energy.
“It’s quite an interesting trend and plays into the increased South-South trade cooperation that we’ve seen kind of growing over the last couple of years,” Lee said.
Brookfield‑Backed GEMS Among Bidders for #Saudi School Operator - Bloomberg
Brookfield‑Backed GEMS Among Bidders for Saudi School Operator - Bloomberg
GEMS Education, the Dubai school operator backed by Brookfield Asset Management, is among parties that have submitted initial bids for Saudi Arabia’s Ajialuna Educational Co., according to people familiar with the matter.
Several local investors have also made non-binding offers for the Riyadh-based school company, the people said. Sulaiman Alrajhi Holding, which has majority ownership of Ajialuna, is seeking to sell its entire stake, the people said. Details on the other bidders and the potential deal value weren’t immediately available.
Deliberations are ongoing and bidders may choose to withdraw, while the owners could decide to hold on to the business longer, the people said, asking not to be identified as the matter is private.
Representatives for Brookfield and GEMS Education declined to comment, while Ajialuna didn’t respond to requests for comment. The transaction could close as early as November, though the timeline remains subject to change.
Founded in 2008, Ajialuna serves more than 14,000 students across Saudi Arabia through a mix of private and international schools. Its brands include Al Forsan International Schools, with campuses in Riyadh, Al-Khobar, and a newly opened site in Jeddah. The schools offer international curricula from kindergarten to high school, serving both Saudi families and a growing number of expatriates.
As the kingdom diversifies its economy and welcomes more expatriates under Vision 2030, demand for quality education is rising. With a young, growing population and more international residents, the private education sector has plenty of room to expand, according to global advisory firm Oxford Business Group. Since foreign ownership rules were eased in 2017, international and regional school brands have been opening branches across Saudi Arabia. At the same time, more Saudi students are enrolling in international schools as part of government efforts to improve access and close the skills gap.
GEMS was founded by an Indian family some six decades ago and has since morphed into one of the world’s largest private school operators. Last year, a consortium led by Brookfield, alongside other investors, committed $2 billion to GEMS in one of the region’s largest private equity deals.
Today, GEMS runs dozens of schools across the Middle East. The group is also moving into India via a partnership with the Adani Group, which plans to build 20 schools over the next three years.
Brookfield has been one of the Middle East’s most active and largest institutional investors. It expanded into Saudi Arabia a few years ago and has since grown its presence. The Brookfield led consortium that invested in GEMS included Gulf Islamic Investments, Marathon Asset Management and the State Oil Fund of Azerbaijan.
GEMS Education, the Dubai school operator backed by Brookfield Asset Management, is among parties that have submitted initial bids for Saudi Arabia’s Ajialuna Educational Co., according to people familiar with the matter.
Several local investors have also made non-binding offers for the Riyadh-based school company, the people said. Sulaiman Alrajhi Holding, which has majority ownership of Ajialuna, is seeking to sell its entire stake, the people said. Details on the other bidders and the potential deal value weren’t immediately available.
Deliberations are ongoing and bidders may choose to withdraw, while the owners could decide to hold on to the business longer, the people said, asking not to be identified as the matter is private.
Representatives for Brookfield and GEMS Education declined to comment, while Ajialuna didn’t respond to requests for comment. The transaction could close as early as November, though the timeline remains subject to change.
Founded in 2008, Ajialuna serves more than 14,000 students across Saudi Arabia through a mix of private and international schools. Its brands include Al Forsan International Schools, with campuses in Riyadh, Al-Khobar, and a newly opened site in Jeddah. The schools offer international curricula from kindergarten to high school, serving both Saudi families and a growing number of expatriates.
As the kingdom diversifies its economy and welcomes more expatriates under Vision 2030, demand for quality education is rising. With a young, growing population and more international residents, the private education sector has plenty of room to expand, according to global advisory firm Oxford Business Group. Since foreign ownership rules were eased in 2017, international and regional school brands have been opening branches across Saudi Arabia. At the same time, more Saudi students are enrolling in international schools as part of government efforts to improve access and close the skills gap.
GEMS was founded by an Indian family some six decades ago and has since morphed into one of the world’s largest private school operators. Last year, a consortium led by Brookfield, alongside other investors, committed $2 billion to GEMS in one of the region’s largest private equity deals.
Today, GEMS runs dozens of schools across the Middle East. The group is also moving into India via a partnership with the Adani Group, which plans to build 20 schools over the next three years.
Brookfield has been one of the Middle East’s most active and largest institutional investors. It expanded into Saudi Arabia a few years ago and has since grown its presence. The Brookfield led consortium that invested in GEMS included Gulf Islamic Investments, Marathon Asset Management and the State Oil Fund of Azerbaijan.
#Saudi Reforms Drive Mecca Developer Umm Al Qura to Near 60% Post-IPO Gain - Bloomberg
Saudi Reforms Drive Mecca Developer Umm Al Qura to Near 60% Post-IPO Gain - Bloomberg
The Middle East’s best-performing listing of the year comes from its worst-performing major bourse.
Investors have piled into Saudi developer Umm Al Qura for Development & Construction Co., encouraged by the kingdom’s moves to liberalize property rules and a push to prop up religious tourism under its economic transformation plan.
The Mecca-based developer has jumped nearly 60% since its March listing, giving it a market value of $9.2 billion, in stark contrast with the average 1.7% increase in Saudi listings this year. The firm has also outperformed the kingdom’s benchmark and real estate indexes, which are both down for the year.
Saudi Arabia’s General Organization for Social Insurance and the Public Investment Fund are Umm Al Qura’s top shareholders, with a combined 44% stake. The IPO has also bolstered the fortunes of Chairman Abdullah Saleh Kamel and his Jeddah-based conglomerate, Dallah Albaraka Holding Co., which together hold an 11.1% stake — now worth more than $1 billion.
“The business model is easy to grasp — a diversified real estate developer with prime assets right next to the Holy Kaaba,” said Mohamad Haidar, head of Middle East and North Africa real estate at Arqaam Capital. The firm owns land, self-develops, sells plots and builds for lease, which Haidar said reduced risk.
The IPO tapped into the rapid expansion of religious tourism, which analysts say is less sensitive to economic downturns. Recent changes that will for the first time allow Muslim foreigners to buy property in the holy cities of Mecca and Medina, are also part of the draw for investors.
Umm Al Qura’s name translates into mother of all villages, a term used as a title for Mecca. The firm is developing one of the largest projects in the city that’s set to include 50,000 hospitality and residential units, and will cost about $27 billion.
Holy cities in Saudi Arabia have limited land supply and will likely draw high demand from overseas, Arqaam’s Haidar said, calling it a “huge catalyst” for the region. That, in turn, would shield Umm Al Qura from fluctuations in the oil prices or broader macroeconomic headwinds, he added.
While Saudi Arabia has been the busiest venue for listings in the Middle East, those headwinds have hurt recent debuts. Concerns over lower oil prices and the potential impact on government spending have meant that only three of the kingdom’s 10 largest listings of the year trade above their offer price. That’s despite a recent boost in Saudi equities on plans to ease foreign ownership rules.
Against that backdrop, Umm Al Qura’s continued out-performance could act as a catalyst for other peers looking to list, according to Swapnil Pillai, director of real estate research at Emirates NBD.
The Middle East’s best-performing listing of the year comes from its worst-performing major bourse.
Investors have piled into Saudi developer Umm Al Qura for Development & Construction Co., encouraged by the kingdom’s moves to liberalize property rules and a push to prop up religious tourism under its economic transformation plan.
The Mecca-based developer has jumped nearly 60% since its March listing, giving it a market value of $9.2 billion, in stark contrast with the average 1.7% increase in Saudi listings this year. The firm has also outperformed the kingdom’s benchmark and real estate indexes, which are both down for the year.
Saudi Arabia’s General Organization for Social Insurance and the Public Investment Fund are Umm Al Qura’s top shareholders, with a combined 44% stake. The IPO has also bolstered the fortunes of Chairman Abdullah Saleh Kamel and his Jeddah-based conglomerate, Dallah Albaraka Holding Co., which together hold an 11.1% stake — now worth more than $1 billion.
“The business model is easy to grasp — a diversified real estate developer with prime assets right next to the Holy Kaaba,” said Mohamad Haidar, head of Middle East and North Africa real estate at Arqaam Capital. The firm owns land, self-develops, sells plots and builds for lease, which Haidar said reduced risk.
The IPO tapped into the rapid expansion of religious tourism, which analysts say is less sensitive to economic downturns. Recent changes that will for the first time allow Muslim foreigners to buy property in the holy cities of Mecca and Medina, are also part of the draw for investors.
Umm Al Qura’s name translates into mother of all villages, a term used as a title for Mecca. The firm is developing one of the largest projects in the city that’s set to include 50,000 hospitality and residential units, and will cost about $27 billion.
Holy cities in Saudi Arabia have limited land supply and will likely draw high demand from overseas, Arqaam’s Haidar said, calling it a “huge catalyst” for the region. That, in turn, would shield Umm Al Qura from fluctuations in the oil prices or broader macroeconomic headwinds, he added.
While Saudi Arabia has been the busiest venue for listings in the Middle East, those headwinds have hurt recent debuts. Concerns over lower oil prices and the potential impact on government spending have meant that only three of the kingdom’s 10 largest listings of the year trade above their offer price. That’s despite a recent boost in Saudi equities on plans to ease foreign ownership rules.
Against that backdrop, Umm Al Qura’s continued out-performance could act as a catalyst for other peers looking to list, according to Swapnil Pillai, director of real estate research at Emirates NBD.
'Battlefield' maker Electronic Arts to go private in record-setting $55 billion LBO | Reuters
'Battlefield' maker Electronic Arts to go private in record-setting $55 billion LBO | Reuters
Videogame developer Electronic Arts (EA.O), opens new tab has agreed to sell itself to a group of private investors in a deal that values the maker of "Battlefield" and "Madden NFL" at $55 billion, which if completed would be the largest leveraged buyout in history.
Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake came together to buy the popular videogame maker with a combination of $36 billion in cash, equity already held by PIF, and $20 billion in debt financed by JPMorgan, the company said Monday.
For PIF, Saudi Arabia's $1 trillion wealth fund, the investment is a massive opportunity to push ahead with efforts to become a global hub for games and sports, as it bets on the enduring value of blockbuster game franchises as the industry recovers from a prolonged downturn.
The deal could also herald a comeback of massive leveraged buyouts, which fell out of favor after several major deals executed in the years before the Global Financial Crisis ended in disaster. Among these was the record $45 billion takeover of Texas utility TXU Energy in 2007 that wound up in bankruptcy just seven years later.
The EA deal "waves the green flag on sponsors resuming mega-deal transactions following several years of fishing for opportunities down market due to market headwinds such as higher borrowing costs," said Kyle Walters, private equity analyst at PitchBook.
EA shareholders will receive $210 per share in cash, a premium of 25% over the September 25 closing price of $168.32, before reports of a deal emerged, giving it an equity value of about $52.5 billion, according to Reuters' calculations. The company's shares rose 5% in midday trading to about $202.54 a share.
The take-private offer comes at a crucial time for EA, which is banking heavily on its core sports portfolio and action shooter intellectual property to weather a sluggish videogame industry as gamers get picky with spending.
"The financial backing and resources of the investor consortium should enable EA to increase its focus on long-term growth opportunities that may have been viewed as too risky or expensive as a public company," analysts at Freedom Capital Markets wrote in a note to clients on Monday.
Electronic Arts is gearing up to launch the much-awaited "Battlefield 6" in an industry where gamers stick to proven and recognisable titles.
Still, "while the $210 per share offer price may appear compelling … we believe it falls materially short of the company’s intrinsic value. With Battlefield 6 about to launch and a pipeline that could add more than $2B in incremental bookings by FY28, the true earnings power of EA is only beginning to emerge," Benchmark analysts said.
The company's sports portfolio has stood out for over a decade due to its global popularity and consistent recurring revenue as strong in-game spending patterns remain key for the franchise's longevity.
The deal also has big appeal for Saudi Arabia's wealth fund as part of the kingdom's plans to diversify its economy away from oil by pouring billions in sectors including infrastructure, tourism, sports and gaming.
Kushner, who is married to U.S. President Donald Trump's daughter Ivanka, started Affinity Partners in 2021. The firm has investments from funds in , Qatar and the United Arab Emirates.
The transaction is expected to close in the first quarter of fiscal year 2027 with $18 billion of the debt financed at closing. It will remain in Redwood City, California with CEO Andrew Wilson remaining at the helm.
The previous LBO record holder, the $45 billion takeover of Texas utility TXU Energy in 2007 by private equity firm KKR & Co., alternative asset manager TPG and Goldman Sachs, went bankrupt in 2014. The leveraged buyouts of Toys "R" Us and Hertz also had rough goes.
Toys "R" Us filed for bankruptcy in 2017 about a dozen years after Bain Capital and KKR bought the retailer for $6.6 billion. Rental car company Hertz did not survive the pandemic, filing for bankruptcy in 2020 after going private for $14.8 billion in 2005.
EA must pay a $1 billion fee if it terminates the merger due to a board reversal, accepts a higher bid, or pursues another deal within a year of a shareholder rejection.
The consortium owes the same amount if regulatory delays push completion past September 28, 2026, or if it breaches the agreement.
Videogame developer Electronic Arts (EA.O), opens new tab has agreed to sell itself to a group of private investors in a deal that values the maker of "Battlefield" and "Madden NFL" at $55 billion, which if completed would be the largest leveraged buyout in history.
Saudi Arabia's Public Investment Fund, Jared Kushner's Affinity Partners and private equity firm Silver Lake came together to buy the popular videogame maker with a combination of $36 billion in cash, equity already held by PIF, and $20 billion in debt financed by JPMorgan, the company said Monday.
For PIF, Saudi Arabia's $1 trillion wealth fund, the investment is a massive opportunity to push ahead with efforts to become a global hub for games and sports, as it bets on the enduring value of blockbuster game franchises as the industry recovers from a prolonged downturn.
The deal could also herald a comeback of massive leveraged buyouts, which fell out of favor after several major deals executed in the years before the Global Financial Crisis ended in disaster. Among these was the record $45 billion takeover of Texas utility TXU Energy in 2007 that wound up in bankruptcy just seven years later.
The EA deal "waves the green flag on sponsors resuming mega-deal transactions following several years of fishing for opportunities down market due to market headwinds such as higher borrowing costs," said Kyle Walters, private equity analyst at PitchBook.
EA shareholders will receive $210 per share in cash, a premium of 25% over the September 25 closing price of $168.32, before reports of a deal emerged, giving it an equity value of about $52.5 billion, according to Reuters' calculations. The company's shares rose 5% in midday trading to about $202.54 a share.
The take-private offer comes at a crucial time for EA, which is banking heavily on its core sports portfolio and action shooter intellectual property to weather a sluggish videogame industry as gamers get picky with spending.
"The financial backing and resources of the investor consortium should enable EA to increase its focus on long-term growth opportunities that may have been viewed as too risky or expensive as a public company," analysts at Freedom Capital Markets wrote in a note to clients on Monday.
Electronic Arts is gearing up to launch the much-awaited "Battlefield 6" in an industry where gamers stick to proven and recognisable titles.
Still, "while the $210 per share offer price may appear compelling … we believe it falls materially short of the company’s intrinsic value. With Battlefield 6 about to launch and a pipeline that could add more than $2B in incremental bookings by FY28, the true earnings power of EA is only beginning to emerge," Benchmark analysts said.
The company's sports portfolio has stood out for over a decade due to its global popularity and consistent recurring revenue as strong in-game spending patterns remain key for the franchise's longevity.
The deal also has big appeal for Saudi Arabia's wealth fund as part of the kingdom's plans to diversify its economy away from oil by pouring billions in sectors including infrastructure, tourism, sports and gaming.
Kushner, who is married to U.S. President Donald Trump's daughter Ivanka, started Affinity Partners in 2021. The firm has investments from funds in , Qatar and the United Arab Emirates.
The transaction is expected to close in the first quarter of fiscal year 2027 with $18 billion of the debt financed at closing. It will remain in Redwood City, California with CEO Andrew Wilson remaining at the helm.
The previous LBO record holder, the $45 billion takeover of Texas utility TXU Energy in 2007 by private equity firm KKR & Co., alternative asset manager TPG and Goldman Sachs, went bankrupt in 2014. The leveraged buyouts of Toys "R" Us and Hertz also had rough goes.
Toys "R" Us filed for bankruptcy in 2017 about a dozen years after Bain Capital and KKR bought the retailer for $6.6 billion. Rental car company Hertz did not survive the pandemic, filing for bankruptcy in 2020 after going private for $14.8 billion in 2005.
EA must pay a $1 billion fee if it terminates the merger due to a board reversal, accepts a higher bid, or pursues another deal within a year of a shareholder rejection.
The consortium owes the same amount if regulatory delays push completion past September 28, 2026, or if it breaches the agreement.
Most stock markets gain on US rate cut hopes | Reuters
Most stock markets gain on US rate cut hopes | Reuters
Most stock markets in the Gulf closed higher on Monday, supported by investor optimism that the U.S. Federal Reserve will cut its interest rates further this year.
The U.S. said on Friday its Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, versus a 0.2% increase in July, matching the estimate of economists polled by Reuters.
Traders are currently pricing in a 90% chance of a Fed rate cut in October, with an around 65% probability of another easing in December, according to the CME FedWatch Tool.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 1.8%, ending two sessions of losses, led by a 3.7% rise in Al Rajhi Bank (1120.SE), opens new tab and a 2.2% increase in oil giant Saudi Aramco (2222.SE), opens new tab.
The Saudi bourse soared 5.1% on Wednesday, marking its largest single-day gain in more than five years, driven by broad-based strength. The gains followed a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, with sharia-compliant lender Dubai Islamic Bank (.DFMGI), opens new tab rising 1.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Oil prices - a catalyst for the Gulf's financial markets - fell by nearly 2% as OPEC+ plans for another increase to oil output in November and the resumption of oil exports by Iraq's Kurdistan region via Turkey raised the global supply outlook.
The Qatari index (.QSI), opens new tab was up 0.2%, supported by a 3.6% gain in telecom firm Ooredoo (ORDS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.6% higher, with Emaar Misr For Development (EMFD.CA), opens new tab jumping 5.9%.
Most stock markets in the Gulf closed higher on Monday, supported by investor optimism that the U.S. Federal Reserve will cut its interest rates further this year.
The U.S. said on Friday its Personal Consumption Expenditures Price Index (PCE) rose 0.3% in August, versus a 0.2% increase in July, matching the estimate of economists polled by Reuters.
Traders are currently pricing in a 90% chance of a Fed rate cut in October, with an around 65% probability of another easing in December, according to the CME FedWatch Tool.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab gained 1.8%, ending two sessions of losses, led by a 3.7% rise in Al Rajhi Bank (1120.SE), opens new tab and a 2.2% increase in oil giant Saudi Aramco (2222.SE), opens new tab.
The Saudi bourse soared 5.1% on Wednesday, marking its largest single-day gain in more than five years, driven by broad-based strength. The gains followed a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.
Dubai's main share index (.DFMGI), opens new tab added 0.2%, with sharia-compliant lender Dubai Islamic Bank (.DFMGI), opens new tab rising 1.7%.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.
Oil prices - a catalyst for the Gulf's financial markets - fell by nearly 2% as OPEC+ plans for another increase to oil output in November and the resumption of oil exports by Iraq's Kurdistan region via Turkey raised the global supply outlook.
The Qatari index (.QSI), opens new tab was up 0.2%, supported by a 3.6% gain in telecom firm Ooredoo (ORDS.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.6% higher, with Emaar Misr For Development (EMFD.CA), opens new tab jumping 5.9%.
Sunday, 28 September 2025
OPEC+ Seen Likely to Approve Another Output Hike for November - Bloomberg
OPEC+ Seen Likely to Approve Another Output Hike for November - Bloomberg
OPEC+ will likely raise oil output again in November as the group continues its strategy to reclaim global market share, according to people familiar with its plans.
The alliance led by Saudi Arabia will consider adding at least as much as the 137,000 barrel-a-day hike scheduled for October when it meets online Oct. 5, the people said. They asked not to be identified as the talks are private.
The Organization of the Petroleum Exporting Countries and its allies have started to revive a new layer of halted output, amounting to 1.66 million barrels a day, in monthly stages despite warnings from across the oil industry of an impending surplus.
So far, the oil market has absorbed additional barrels from the group without significant ructions, and Brent futures have risen 3% this month.
Still, the planned October hike is sharply lower than the increments that the group announced in the two prior months, and delegates emphasized at the time that the actual supply boost would be even smaller because some countries lack the ability to increase.
The upcoming meeting also takes place against the backdrop of a planned trip by Saudi Crown Prince Mohammed bin Salman to Washington in November. He will meet President Donald Trump, who has repeatedly called for lower fuel prices while he seeks to tame inflation and reduce interest rates.
No final decision has been made yet, and deliberations could still evolve ahead of Sunday’s meeting, the people said. The expectation for the meeting was first reported by Reuters.
OPEC+ will likely raise oil output again in November as the group continues its strategy to reclaim global market share, according to people familiar with its plans.
The alliance led by Saudi Arabia will consider adding at least as much as the 137,000 barrel-a-day hike scheduled for October when it meets online Oct. 5, the people said. They asked not to be identified as the talks are private.
The Organization of the Petroleum Exporting Countries and its allies have started to revive a new layer of halted output, amounting to 1.66 million barrels a day, in monthly stages despite warnings from across the oil industry of an impending surplus.
So far, the oil market has absorbed additional barrels from the group without significant ructions, and Brent futures have risen 3% this month.
Still, the planned October hike is sharply lower than the increments that the group announced in the two prior months, and delegates emphasized at the time that the actual supply boost would be even smaller because some countries lack the ability to increase.
The upcoming meeting also takes place against the backdrop of a planned trip by Saudi Crown Prince Mohammed bin Salman to Washington in November. He will meet President Donald Trump, who has repeatedly called for lower fuel prices while he seeks to tame inflation and reduce interest rates.
No final decision has been made yet, and deliberations could still evolve ahead of Sunday’s meeting, the people said. The expectation for the meeting was first reported by Reuters.
#Kuwait Airways restructures capital to write off nearly $1 bln in losses | Reuters
Kuwait Airways restructures capital to write off nearly $1 bln in losses | Reuters
A shareholder meeting of state-owned Kuwait Airways approved an accounting move to extinguish 300 million dinars ($983 million) of accumulated losses via a capital reduction, the official gazette reported on Sunday.
Kuwait Airways previously said it aims to break even in 2025 after years of accumulated losses. The airline has not disclosed its financial results for 2023 and 2024.
Regional carriers, like their global peers, were hit hard by the COVID-19 pandemic, but many Gulf airlines have since seen a strong rebound in demand and have become central players in broader regional economic diversification efforts, in areas such as tourism.
MEETING APPROVES CAPITAL REDUCTION
Yet Kuwait Airways is facing difficulties in achieving its strategic targets, including breaking even and increasing passenger numbers, due to delayed aircraft deliveries and geopolitical pressure in the region, the carrier’s chairman said in August.
Kuwait's official gazette said the extraordinary general assembly, held on September 2, had approved a reduction of the carrier's paid-up capital by 294 million dinars to 683.7 million dinars and a cut in its legal reserve by 6 million dinars.
The company did not respond to Reuters’ request for comment.
A shareholder meeting of state-owned Kuwait Airways approved an accounting move to extinguish 300 million dinars ($983 million) of accumulated losses via a capital reduction, the official gazette reported on Sunday.
Kuwait Airways previously said it aims to break even in 2025 after years of accumulated losses. The airline has not disclosed its financial results for 2023 and 2024.
Regional carriers, like their global peers, were hit hard by the COVID-19 pandemic, but many Gulf airlines have since seen a strong rebound in demand and have become central players in broader regional economic diversification efforts, in areas such as tourism.
MEETING APPROVES CAPITAL REDUCTION
Yet Kuwait Airways is facing difficulties in achieving its strategic targets, including breaking even and increasing passenger numbers, due to delayed aircraft deliveries and geopolitical pressure in the region, the carrier’s chairman said in August.
Kuwait's official gazette said the extraordinary general assembly, held on September 2, had approved a reduction of the carrier's paid-up capital by 294 million dinars to 683.7 million dinars and a cut in its legal reserve by 6 million dinars.
It also approved increasing the airline’s issued capital by 300 million dinars, "to be called up according to a payment schedule determined by the Kuwait Investment Authority", which owns 100% of the company's shares.
Following the changes, the airline’s issued capital was set at 983.66 million dinars, the Gazette said.
Following the changes, the airline’s issued capital was set at 983.66 million dinars, the Gazette said.
The company did not respond to Reuters’ request for comment.
#Saudi bourse extends losses on profit-taking; #Qatar edges higher | Reuters
Saudi bourse extends losses on profit-taking; Qatar edges higher | Reuters
Saudi Arabian stock market nudged lower on Sunday, following losses from the prior session as investors harvested profits after a dynamic rally, spurred by anticipated reforms in foreign ownership policies, while the Qatari index ended higher.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.7%, dragged down by a 3.2% fall in Al Rajhi Bank (1120.SE), opens new tab and a 3% decline in Saudi National Bank (1180.SE), opens new tab.
On Wednesday, the Saudi bourse soared 5.1%, marking its largest single-day gain in over five years, driven by broad-based strength following a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.
In Qatar, the index (.QSI), opens new tab added 0.2%, helped by a 1.3% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - rose on Friday as Ukraine's drone attacks on Russia's energy infrastructure cut the country's fuel exports.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.4%, led by a 1.9% rise in Commercial International Bank (COMI.CA), opens new tab, after the lender's shareholders approved using part of the general reserve to boost the issued and paid-in capital by EGP 3.07 billion ($63.83 million).
Saudi Arabian stock market nudged lower on Sunday, following losses from the prior session as investors harvested profits after a dynamic rally, spurred by anticipated reforms in foreign ownership policies, while the Qatari index ended higher.
Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.7%, dragged down by a 3.2% fall in Al Rajhi Bank (1120.SE), opens new tab and a 3% decline in Saudi National Bank (1180.SE), opens new tab.
On Wednesday, the Saudi bourse soared 5.1%, marking its largest single-day gain in over five years, driven by broad-based strength following a Bloomberg News report that regulators may relax the 49% foreign ownership cap on listed companies, a move anticipated to attract significant new foreign investment to the region's leading equity market.
In Qatar, the index (.QSI), opens new tab added 0.2%, helped by a 1.3% rise in Qatar Islamic Bank (QISB.QA), opens new tab.
Oil prices - a catalyst for the Gulf's financial markets - rose on Friday as Ukraine's drone attacks on Russia's energy infrastructure cut the country's fuel exports.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 1.4%, led by a 1.9% rise in Commercial International Bank (COMI.CA), opens new tab, after the lender's shareholders approved using part of the general reserve to boost the issued and paid-in capital by EGP 3.07 billion ($63.83 million).
Friday, 26 September 2025
An #AbuDhabi EM debt record
An Abu Dhabi EM debt record
Do you remember where you were when China issued a three-year US dollar bond at just one basis point over US Treasuries? Probably not, unless you are a bond market nerd, but it was in November last year.
It foreshadowed a trend this year for the bonds of top-rated governments in emerging markets to trade at the lowest premium over US government debt since before the global financial crisis. (As for some less than highly rated ones, well. . .)
Maybe this is nuts. Maybe this is an EM-DM convergence trade as bond markets across the Western world are going a little bit ‘submerging’. Maybe investors just want to lock in relatively high underlying yields on bonds in the market now before more Fed cuts might feed into new issuance.
Whatever is driving tighter spreads, there was another interesting emerging-market dollar bond milestone this week.
Abu Dhabi sold $2bn in 10-year bonds at a spread to US Treasuries of just 18 basis points on Thursday (and a coupon of 4.25 per cent). It traded a bit tighter on Friday.
That seems to be a record-low issuance spread for this maturity, and maybe not just in emerging market sovereign terms. Ten-year debt is also a bit of a bigger deal in benchmark terms. Countries like Abu Dhabi and China don’t really need to get dollars from issuance, but they do want to build benchmarks for future debt sales.
“The 10-year pricing at Treasuries plus 18 basis points is in our estimation the tightest 10-year spread we have seen, certainly in emerging markets, and even in the US investment-grade market we are struggling to find one that has priced tighter this millennium,” says Hussain Zaidi, global bond syndicate head at Standard Chartered, who worked on the deal.
We are also looking for a 10-year US investment-grade bond that was issued at a spread tighter than 18 basis points in the past — possibly something like the Illinois Bell Telephony Company, far off in the mists of time? — and we would welcome any pointers.
A few multilateral development banks have meanwhile issued 10-year bonds at tighter than 18 basis points this year, including the World Bank, European Investment Bank, and Asian Infrastructure Investment Bank.
In any case, 18 basis points is not much when a high-grade US issuer like Johnson & Johnson currently trades at 33 basis points, for instance.
“Credit spreads are at tight levels globally at this point in time — bond markets are in a purple patch here,” Zaidi adds. “The Abu Dhabi government has been issuing in the market for many years and they saw the opportunity to issue at very tight spreads.”
Demand for the Abu Dhabi bond was $11.5bn (it also had $7bn in bids for $1bn in three-year paper). Sixty per cent of demand came from Asia and the Middle East.
That tallies with what we often hear about the Gulf bid for these kinds of bond. The Chinese bond sale last year was arranged out of Saudi Arabia, which is itself now a massive issuer in emerging markets.
Again, nuts? Maybe.
But don’t be surprised if someone tries to beat Abu Dhabi’s record soon.
Mideast Stocks: #UAE bourses rebound as energy and financial shares climb
Mideast Stocks: UAE bourses rebound as energy and financial shares climb
Stock markets in the United Arab Emirates rebounded on Friday, with Dubai leading the recovery, driven by an increase in consumer staple and financial sector stocks. Dubai's main index closed 0.7%, reversing three consecutive days of declines, lifted by a 2.5% jump in Dubai Islamic Bank and a 6.8% surge in grocery supermarkets operator Spinney 1961 Holding.
The Dubai stock index may face further declines, but its strong fundamentals and the upcoming ALEC IPO could offer support down the line, according to Joseph Dahrieh, Managing Principal at Tickmill.
Abu Dhabi's benchmark index broke a three-session losing streak with a 0.5% rise, lifted by gains in energy and banking stocks. Adnoc Gas surged 4.1% after its parent firm XRG completed the acquisition of an 11.7% stake in phase 1 (trains 1-3) of the Rio Grande LNG, marking its first U.S. gas investment.
The UAE's biggest lender First Abu Dhabi Bank gained 1%, while energy logistics firm Adnoc L&S rose by 1.2%. AI-driven space tech firm Space42 also jumped 2.7% after signing a long-term deal with Dynamic Map, the U.S.-based subsidiary of Japan's Dynamic Map Platform, to provide HD map data to General Motors' Super Cruise in the UAE.
Separately, Abu Dhabi sold $3 billion in a two-tranche bond on Thursday, attracting strong demand for the sale, fixed income news service IFR reported.
Despite Friday's rebound, Dubai index logged a 2.8% weekly loss, its steepest decline in over three months, while Abu Dhabi ended the week with a 1.3% decrease, according to LSEG data.
Thursday, 25 September 2025
#Saudi Stock Market Reforms Seen Boosting Flows to Smaller Names - Bloomberg
Saudi Stock Market Reforms Seen Boosting Flows to Smaller Names - Bloomberg
Saudi medium-size companies are likely to attract flows alongside banks on the back of the kingdom’s plan to loosen foreign ownership limits for public companies.
Saudi Arabia’s Tadawul stock index surged 5.1% on Wednesday after a board member of the Capital Market Authority told Bloomberg News that majority foreign ownership could come into effect by the end of the year.
The proposal would provide a boost to liquidity, an issue that has held back some investors, said Frances Ames, director and head of research at Ajeej Capital. That would see increased foreign inflows extend beyond the market’s biggest names.
“Active managers globally are still pretty underweight Saudi Arabia,” Ames said in an interview with Bloomberg Television. The news could attract investors to some smaller and mid-cap companies, “which we view as very high quality businesses, where sometimes the only thing lacking is market liquidity,” she said.
A decision by the CMA to allow majority foreign ownership isn’t a foregone conclusion and it’s unclear how big a stake foreigners could eventually be able to own in Saudi equities if approval goes ahead. The Tadawul fluctuated on Thursday, slipping 1% after initially extending Wednesday’s gains.
Ames said investors are giving greater focus to Saudi Arabia’s non-oil sectors, as the economy diversifies. This evolution in the market over the past five to six years could support fresh interest once the ownership rules are eased, she said.
The kingdom’s pipeline of initial public offerings, already among the busiest globally, may accelerate as companies move forward with listing plans. Positive regulatory changes can influence their timing, and some high-quality firm are preparing to come to market, Ames said.
Ames agreed that banking stocks would attract the largest slice of increased inflows, with Al Rajhi Bank standing out because of the size it already commands in global benchmark indexes.
Al Rajhi Capital estimated that $9.7 billion could flow into Saudi stocks if the foreign ownership limit was raised to 100%. Bank shares would be the key beneficiary, the firm said in a note.
JPMorgan Chase & Co. sees a potential capital influx of $10.6 billion should the CMA lift the ownership limit to 100%. EFG Hermes also anticipates about $10 billion of inflows. Both firms said they expect Al Rajhi Bank to be the biggest beneficiary of the possible change.
Junaid Ansari, director of investment strategy at Kamco Investments Co., is another who sees broad market benefits should the reforms proceed.
The move “would drive a broader relook at Saudi stocks that have traded at depressed levels due to the decline in crude oil prices as well as due to regional geopolitical issues,” he said. “The removal of the limits would surely help to increase the overall trading activity on the exchange from both active and passive investors.”
Saudi medium-size companies are likely to attract flows alongside banks on the back of the kingdom’s plan to loosen foreign ownership limits for public companies.
Saudi Arabia’s Tadawul stock index surged 5.1% on Wednesday after a board member of the Capital Market Authority told Bloomberg News that majority foreign ownership could come into effect by the end of the year.
The proposal would provide a boost to liquidity, an issue that has held back some investors, said Frances Ames, director and head of research at Ajeej Capital. That would see increased foreign inflows extend beyond the market’s biggest names.
“Active managers globally are still pretty underweight Saudi Arabia,” Ames said in an interview with Bloomberg Television. The news could attract investors to some smaller and mid-cap companies, “which we view as very high quality businesses, where sometimes the only thing lacking is market liquidity,” she said.
A decision by the CMA to allow majority foreign ownership isn’t a foregone conclusion and it’s unclear how big a stake foreigners could eventually be able to own in Saudi equities if approval goes ahead. The Tadawul fluctuated on Thursday, slipping 1% after initially extending Wednesday’s gains.
Ames said investors are giving greater focus to Saudi Arabia’s non-oil sectors, as the economy diversifies. This evolution in the market over the past five to six years could support fresh interest once the ownership rules are eased, she said.
The kingdom’s pipeline of initial public offerings, already among the busiest globally, may accelerate as companies move forward with listing plans. Positive regulatory changes can influence their timing, and some high-quality firm are preparing to come to market, Ames said.
Ames agreed that banking stocks would attract the largest slice of increased inflows, with Al Rajhi Bank standing out because of the size it already commands in global benchmark indexes.
Al Rajhi Capital estimated that $9.7 billion could flow into Saudi stocks if the foreign ownership limit was raised to 100%. Bank shares would be the key beneficiary, the firm said in a note.
JPMorgan Chase & Co. sees a potential capital influx of $10.6 billion should the CMA lift the ownership limit to 100%. EFG Hermes also anticipates about $10 billion of inflows. Both firms said they expect Al Rajhi Bank to be the biggest beneficiary of the possible change.
Junaid Ansari, director of investment strategy at Kamco Investments Co., is another who sees broad market benefits should the reforms proceed.
The move “would drive a broader relook at Saudi stocks that have traded at depressed levels due to the decline in crude oil prices as well as due to regional geopolitical issues,” he said. “The removal of the limits would surely help to increase the overall trading activity on the exchange from both active and passive investors.”
#AbuDhabi #UAE Returns to Debt Market With Dollar Bond Sale - Bloomberg
Abu Dhabi Returns to Debt Market With Dollar Bond Sale - Bloomberg
Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year.
The oil-rich emirate, one of seven comprising the United Arab Emirates, plans a 3-year note maturing in 2028 and a 10-year security due in 2035. The final terms, including the size and yields, may be announced later on Thursday.
Abu Dhabi, which issued $5 billion of Eurobonds last year, is marketing the 3-year notes at an initial price guidance of around 40 basis points over US Treasuries, while the 10-year bonds are being offered at about 55 basis points over the benchmark, according to a person familiar with the matter who asked not to be identified.
The deal comes after the UAE and other Gulf countries lowered interest rates last week in lockstep with the Federal Reserve, which cut rates for the first time this year.
Abu Dhabi maintains a low ratio of debt to Gross Domestic Product at 17.4% at the end of 2024, well below the peer median of 48.8%, according to Fitch Ratings.
Borrowing by Government Related Entities though is set to increase to finance the country’s massive transformation projects as it seeks to boost its non-oil economy, Fitch said in a report published in June.
The offering is being coordinated by six joint global coordinators: Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Morgan Stanley, and Standard Chartered Bank.
Abu Dhabi carries strong investment-grade ratings of Aa2 from Moody’s and AA from both S&P and Fitch, all with stable outlooks.
Abu Dhabi is selling dollar-denominated bonds, its first debt issuance in over a year.
The oil-rich emirate, one of seven comprising the United Arab Emirates, plans a 3-year note maturing in 2028 and a 10-year security due in 2035. The final terms, including the size and yields, may be announced later on Thursday.
Abu Dhabi, which issued $5 billion of Eurobonds last year, is marketing the 3-year notes at an initial price guidance of around 40 basis points over US Treasuries, while the 10-year bonds are being offered at about 55 basis points over the benchmark, according to a person familiar with the matter who asked not to be identified.
The deal comes after the UAE and other Gulf countries lowered interest rates last week in lockstep with the Federal Reserve, which cut rates for the first time this year.
Abu Dhabi maintains a low ratio of debt to Gross Domestic Product at 17.4% at the end of 2024, well below the peer median of 48.8%, according to Fitch Ratings.
Borrowing by Government Related Entities though is set to increase to finance the country’s massive transformation projects as it seeks to boost its non-oil economy, Fitch said in a report published in June.
The offering is being coordinated by six joint global coordinators: Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, Morgan Stanley, and Standard Chartered Bank.
Abu Dhabi carries strong investment-grade ratings of Aa2 from Moody’s and AA from both S&P and Fitch, all with stable outlooks.
#SaudiArabia Aims to Grow Debt Market to Fund Giga Projects - Bloomberg
Saudi Arabia Aims to Grow Debt Market to Fund Giga Projects - Bloomberg
Saudi regulators are planning a further expansion of the local debt markets as the kingdom seeks more capital to finance massive construction projects.
There’s been about $228 billion in issuance to date in the history of the Saudi market, representing around 18% of gross domestic product, according to Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the Capital Market Authority.
The aim is to boost that to a cumulative 28% by 2030 by encouraging more borrowing, introducing new instruments and increasing foreign participation, he said in an interview this month in London.
“We want to make the Saudi debt market the cornerstone for financing for the giga projects,” Bin Hassan said.
Saudi Arabia has become one of the world’s top construction markets, with projects worth about $1.3 trillion launched since 2016 as part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to attract investment and diversify the economy away from oil.
The portfolio includes everything from Maldivian-style resorts and housing on the Red Sea to a ski slope in the desert and residential communities in Riyadh.
But as the scale of work has picked up, so too has the need for heavier investment and spending — something that’s become more challenging as the kingdom grapples with oil revenues subdued by lower prices.
That’s made the need for external financing and foreign investment more acute. Regulators are already looking to ease limits on foreign ownership of stocks, in part to pave the way for a fresh injection of money from abroad.
The government also rolled out a new investment law earlier this year aimed to making it easier to do business in the kingdom.
“We want to move away from the traditional method of financing, which is borrowing from banks, to have debt instruments to fill that gap and to fill the financing needs of the kingdom,” Bin Hassan said.
The kingdom’s debt-capital market is still largely made up of sovereign local currency bond issuance.
Regulators introduced over-the-counter settlement in May to bring the market more in line with global standards and has been working to simplify the process of issuing debt in recent years to encourage more companies to tap public markets. It has also said it’s considering easing tax rules.
Saudi Arabia was placed on the watch list for possible inclusion into JPMorgan Chase & Co.’s benchmark emerging-market bond index after what the bank said were “proactive market reforms” in the past two years.
An inclusion of Saudi Arabia may result in a weight of around 2% in the JPMorgan EM Bond Index, translating into a few billion dollars of initial inflows, said Basel Al-Waqayan, a fixed-income strategist at Bloomberg Intelligence.
Saudi regulators are planning a further expansion of the local debt markets as the kingdom seeks more capital to finance massive construction projects.
There’s been about $228 billion in issuance to date in the history of the Saudi market, representing around 18% of gross domestic product, according to Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the Capital Market Authority.
The aim is to boost that to a cumulative 28% by 2030 by encouraging more borrowing, introducing new instruments and increasing foreign participation, he said in an interview this month in London.
“We want to make the Saudi debt market the cornerstone for financing for the giga projects,” Bin Hassan said.
Saudi Arabia has become one of the world’s top construction markets, with projects worth about $1.3 trillion launched since 2016 as part of Crown Prince Mohammed Bin Salman’s Vision 2030 plan to attract investment and diversify the economy away from oil.
The portfolio includes everything from Maldivian-style resorts and housing on the Red Sea to a ski slope in the desert and residential communities in Riyadh.
But as the scale of work has picked up, so too has the need for heavier investment and spending — something that’s become more challenging as the kingdom grapples with oil revenues subdued by lower prices.
That’s made the need for external financing and foreign investment more acute. Regulators are already looking to ease limits on foreign ownership of stocks, in part to pave the way for a fresh injection of money from abroad.
The government also rolled out a new investment law earlier this year aimed to making it easier to do business in the kingdom.
“We want to move away from the traditional method of financing, which is borrowing from banks, to have debt instruments to fill that gap and to fill the financing needs of the kingdom,” Bin Hassan said.
The kingdom’s debt-capital market is still largely made up of sovereign local currency bond issuance.
Regulators introduced over-the-counter settlement in May to bring the market more in line with global standards and has been working to simplify the process of issuing debt in recent years to encourage more companies to tap public markets. It has also said it’s considering easing tax rules.
Saudi Arabia was placed on the watch list for possible inclusion into JPMorgan Chase & Co.’s benchmark emerging-market bond index after what the bank said were “proactive market reforms” in the past two years.
An inclusion of Saudi Arabia may result in a weight of around 2% in the JPMorgan EM Bond Index, translating into a few billion dollars of initial inflows, said Basel Al-Waqayan, a fixed-income strategist at Bloomberg Intelligence.
#Qatar's wealth fund teams up with Blue Owl for $3 billion data centre push | Reuters
Qatar's wealth fund teams up with Blue Owl for $3 billion data centre push | Reuters
Qatar Investment Authority (QIA) and alternative asset manager Blue Owl Capital (OWL.N), opens new tab have signed a partnership aimed at launching a $3 billion global digital infrastructure platform focused on data centres, they said on Thursday.
The platform is intended to "accelerate global compute available to leading hyperscalers amid surging cloud and AI transformation," the two firms said in a joint statement.
The Gulf country's $500 billion sovereign wealth fund has been ramping up investments in the booming AI sector, as demand for data storage and computational requirements rise globally.
QIA emerged as one of the latest backers of Anthropic earlier this month, joining the artificial intelligence firm's record-breaking 13 billion funding round that vaulted its valuation to $183 billion.
The move is also part of wider efforts by Gulf countries to become global players in artificial intelligence, turning into hubs for the growing industry outside of the United States.
Qatar Investment Authority (QIA) and alternative asset manager Blue Owl Capital (OWL.N), opens new tab have signed a partnership aimed at launching a $3 billion global digital infrastructure platform focused on data centres, they said on Thursday.
The platform is intended to "accelerate global compute available to leading hyperscalers amid surging cloud and AI transformation," the two firms said in a joint statement.
The Gulf country's $500 billion sovereign wealth fund has been ramping up investments in the booming AI sector, as demand for data storage and computational requirements rise globally.
QIA emerged as one of the latest backers of Anthropic earlier this month, joining the artificial intelligence firm's record-breaking 13 billion funding round that vaulted its valuation to $183 billion.
The move is also part of wider efforts by Gulf countries to become global players in artificial intelligence, turning into hubs for the growing industry outside of the United States.
#Saudi PIF-owned AviLease weighs debut bond, sources say | Reuters
Saudi PIF-owned AviLease weighs debut bond, sources say | Reuters
AviLease, a jet-leasing firm backed by Saudi Arabia's almost $1 trillion Public Investment Fund (PIF), has been holding talks with banks to prepare an inaugural bond sale, two people with knowledge of the plan told Reuters.
The company has discussed a dollar-denominated debut with JPMorgan and Citigroup, said the people, who declined to be identified because the information is private.
AviLease could raise at least $500 million from its debut bond, as part of a $2 billion programme, according to one of the sources. The initial bond could be placed on the market by the end of the year, the person said.
AviLease did not respond to multiple requests for comment, while JPMorgan and Citi declined to comment.
AviLease secured investment-grade ratings from Moody's and Fitch in April, which chairman Fahad AlSaif said would help the firm tap global capital markets to place itself at the forefront of aircraft leasing in line with Saudi Arabia's Vision 2030.
The plan includes Saudi Arabia expanding aviation to support tourism and reduce reliance on oil and involves the launch of a new carrier, Riyadh Air.
In the first half of 2025, Saudi issuers accounted for 18.9% of the $250 billion in emerging-market dollar debt, Fitch said last month, followed by the government raising $5.5 billion via sukuk this month and PIF selling a heavily subscribed $2 billion 10-year bond.
Established in 2022 as part of PIF's push to build a domestic aviation leasing giant, AviLease agreed in 2023 to buy Standard Chartered's aviation finance arm for $3.6 billion.
In May 2025, AviLease made its first direct Boeing order for 20 737-8 MAX jets with options for 10 more, adding to a portfolio of 200 aircraft leased to 48 airlines worldwide as of March.
PIF and other state-linked firms are increasingly turning to dollar and euro bond markets to fill funding gaps and sustain Saudi Arabia's multibillion-dollar megaprojects.
AviLease, a jet-leasing firm backed by Saudi Arabia's almost $1 trillion Public Investment Fund (PIF), has been holding talks with banks to prepare an inaugural bond sale, two people with knowledge of the plan told Reuters.
The company has discussed a dollar-denominated debut with JPMorgan and Citigroup, said the people, who declined to be identified because the information is private.
AviLease could raise at least $500 million from its debut bond, as part of a $2 billion programme, according to one of the sources. The initial bond could be placed on the market by the end of the year, the person said.
AviLease did not respond to multiple requests for comment, while JPMorgan and Citi declined to comment.
AviLease secured investment-grade ratings from Moody's and Fitch in April, which chairman Fahad AlSaif said would help the firm tap global capital markets to place itself at the forefront of aircraft leasing in line with Saudi Arabia's Vision 2030.
The plan includes Saudi Arabia expanding aviation to support tourism and reduce reliance on oil and involves the launch of a new carrier, Riyadh Air.
In the first half of 2025, Saudi issuers accounted for 18.9% of the $250 billion in emerging-market dollar debt, Fitch said last month, followed by the government raising $5.5 billion via sukuk this month and PIF selling a heavily subscribed $2 billion 10-year bond.
Established in 2022 as part of PIF's push to build a domestic aviation leasing giant, AviLease agreed in 2023 to buy Standard Chartered's aviation finance arm for $3.6 billion.
In May 2025, AviLease made its first direct Boeing order for 20 737-8 MAX jets with options for 10 more, adding to a portfolio of 200 aircraft leased to 48 airlines worldwide as of March.
PIF and other state-linked firms are increasingly turning to dollar and euro bond markets to fill funding gaps and sustain Saudi Arabia's multibillion-dollar megaprojects.
Mideast Stocks: #Saudi stocks dip on profit-taking; #UAE and #Qatar fall amid broad weakness
Mideast Stocks: Saudi stocks dip on profit-taking; UAE and Qatar fall amid broad weakness
The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day's strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness. Saudi's benchmark index slipped 1%, retreating from its largest single-day gain in over five years recorded on Wednesday.
However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks. The Saudi markets regulator is considering lifting the current 49% cap on foreign ownership of listed companies, "a move that could unlock over $10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Shares of Saudi Aramco declined nearly 3%. Aramco's talks to acquire a minority stake in Spanish energy firm Repsol's renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters. Index heavyweights Saudi Telecom and SABIC fell 4.2% and 4.1%, respectively.
However, the market's outlook appears optimistic, driven by robust momentum in the non-oil private sector, though oil price volatility continues to weigh on sentiment, according to Milad Azar, Market analyst at XTB MENA.
Dubai's main share index erased early gains to close down 1% for the third straight session. Emaar Properties fell 1.5%, extending its losing streak, while banking stocks like Dubai Islamic Bank and Emirates NBD Bank dropped 1.6% and 1.2%, respectively.
Abu Dhabi's index also surrendered early advances, ending the session 0.3% lower, weighed down by a nearly 1% decline in Aldar Properties. Shares of Space42 fell 1.6% after announcing a partnership with Dynamic Map, a unit of Japan's Dynamic Map Platform, to supply HD Map Data for General Motors' Super Cruise in the UAE.
Abu Dhabi National Oil Company's (ADNOC) international investment arm, XRG, announced the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project, marking its first U.S. gas investment. Additionally, ADNOC signed a 20-year LNG offtake deal for 1.9 million tonnes per annum from Rio Grande LNG Train 4.
Qatar's stock index dropped 1.1%, marking five straight sessions of declines and wrapping up the week lower, dragged down by banking shares. Qatar National Bank, the region's largest lender, dropped 3%, building on two days of losses, while Qatar Islamic Bank lost 1.3%.
Separately, Qatar Investment Authority (QIA) and US-based Blue Owl Capital have partnered to launch a $3 billion global digital infrastructure platform focused on data centers, as QIA deepens investments in AI-related sectors amid rising demand for data storage and computing power.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, reversing gains from the previous session. Despite the dip, the index ended a positive week, hitting last month's peak level. Consumer staples led the decline, with Eastern Company sliding over 3%.
The Saudi stock market edged lower on Thursday as investors locked in profits from the previous day's strong rally, driven by news of potential reforms to foreign ownership rules, while markets in UAE and Qatar extended losses on broad weakness. Saudi's benchmark index slipped 1%, retreating from its largest single-day gain in over five years recorded on Wednesday.
However, the gauge notched a third straight weekly rise, bolstered by strength in financial stocks. The Saudi markets regulator is considering lifting the current 49% cap on foreign ownership of listed companies, "a move that could unlock over $10 billion in foreign inflows and prompt MSCI to raise the Foreign Inclusion Factor for Saudi stocks," said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
Shares of Saudi Aramco declined nearly 3%. Aramco's talks to acquire a minority stake in Spanish energy firm Repsol's renewables unit has hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters. Index heavyweights Saudi Telecom and SABIC fell 4.2% and 4.1%, respectively.
However, the market's outlook appears optimistic, driven by robust momentum in the non-oil private sector, though oil price volatility continues to weigh on sentiment, according to Milad Azar, Market analyst at XTB MENA.
Dubai's main share index erased early gains to close down 1% for the third straight session. Emaar Properties fell 1.5%, extending its losing streak, while banking stocks like Dubai Islamic Bank and Emirates NBD Bank dropped 1.6% and 1.2%, respectively.
Abu Dhabi's index also surrendered early advances, ending the session 0.3% lower, weighed down by a nearly 1% decline in Aldar Properties. Shares of Space42 fell 1.6% after announcing a partnership with Dynamic Map, a unit of Japan's Dynamic Map Platform, to supply HD Map Data for General Motors' Super Cruise in the UAE.
Abu Dhabi National Oil Company's (ADNOC) international investment arm, XRG, announced the acquisition of an 11.7% equity stake in Phase 1 of the Rio Grande LNG project, marking its first U.S. gas investment. Additionally, ADNOC signed a 20-year LNG offtake deal for 1.9 million tonnes per annum from Rio Grande LNG Train 4.
Qatar's stock index dropped 1.1%, marking five straight sessions of declines and wrapping up the week lower, dragged down by banking shares. Qatar National Bank, the region's largest lender, dropped 3%, building on two days of losses, while Qatar Islamic Bank lost 1.3%.
Separately, Qatar Investment Authority (QIA) and US-based Blue Owl Capital have partnered to launch a $3 billion global digital infrastructure platform focused on data centers, as QIA deepens investments in AI-related sectors amid rising demand for data storage and computing power.
Outside the Gulf, Egypt's blue-chip index declined 0.8%, reversing gains from the previous session. Despite the dip, the index ended a positive week, hitting last month's peak level. Consumer staples led the decline, with Eastern Company sliding over 3%.
Wednesday, 24 September 2025
Adnoc’s €12 Billion Covestro Deal Gets Boost as EU Remedies Loom - Bloomberg
Adnoc’s €12 Billion Covestro Deal Gets Boost as EU Remedies Loom - Bloomberg
Abu Dhabi National Oil Co.’s nearly €12 billion ($14.1 billion) takeover of Covestro AG is edging closer to European Union approval after talks with regulators paved the way for a package of commitments to be submitted as soon as next week, according to people familiar with the matter.
EU watchdogs had earlier been pressing Adnoc for long-term expenditure plans as part of a far-reaching investigation into its planned buyout of German plastics giant Covestro, but Abu Dhabi’s state oil company resisted, considering the information to be a state secret.
Officials are now open to forgoing the information on Adnoc’s future investments in Europe — allowing talks to move forward and setting the stage for formal remedies to be filed next week, said the people, who spoke on condition of anonymity.
The people added that while timing could slip, the plans are, for now, on track for the filing of commitments, including a pledge to maintain Covestro’s intellectual property in Europe as well as concessions on the company’s unlimited state guarantee from the UAE. Additional concessions were also expected to be put on table, the people said.
Covestro’s shares jumped as much as 6.2% on the news.
A takeover of Covestro would give Adnoc — the biggest oil producer in the United Arab Emirates — control over a German company that supplies materials for some of the world’s most prominent phone and carmakers. Adnoc would own Covestro through its investment unit XRG, set up in November as the company’s international platform for natural gas, chemicals and energy solutions.
“While we don’t comment on ongoing discussions, we are working constructively with the European Commission,” said a spokesperson for XRG. Covestro and the commission declined to comment.
Abu Dhabi National Oil Co.’s nearly €12 billion ($14.1 billion) takeover of Covestro AG is edging closer to European Union approval after talks with regulators paved the way for a package of commitments to be submitted as soon as next week, according to people familiar with the matter.
EU watchdogs had earlier been pressing Adnoc for long-term expenditure plans as part of a far-reaching investigation into its planned buyout of German plastics giant Covestro, but Abu Dhabi’s state oil company resisted, considering the information to be a state secret.
Officials are now open to forgoing the information on Adnoc’s future investments in Europe — allowing talks to move forward and setting the stage for formal remedies to be filed next week, said the people, who spoke on condition of anonymity.
The people added that while timing could slip, the plans are, for now, on track for the filing of commitments, including a pledge to maintain Covestro’s intellectual property in Europe as well as concessions on the company’s unlimited state guarantee from the UAE. Additional concessions were also expected to be put on table, the people said.
Covestro’s shares jumped as much as 6.2% on the news.
A takeover of Covestro would give Adnoc — the biggest oil producer in the United Arab Emirates — control over a German company that supplies materials for some of the world’s most prominent phone and carmakers. Adnoc would own Covestro through its investment unit XRG, set up in November as the company’s international platform for natural gas, chemicals and energy solutions.
“While we don’t comment on ongoing discussions, we are working constructively with the European Commission,” said a spokesperson for XRG. Covestro and the commission declined to comment.
Other Deals
The progress in talks marks a shift after XRG said earlier this month that the Covestro deals risked being torpedoed by the European competition probe as the requests for information were “disproportionate and invasive.”
A successful closing of the transaction would be key for Adnoc’s and XRG’s ambitions, including plans to use the billions of dollars at its disposal to snap up assets around the world. The company has already done deals for gas assets in the US, Africa and Central Asia, and is planning more in the Americas.
But the boldest play yet, a $19 billion takeover bid for Australian gas producer Santos Ltd., collapsed this month when XRG pulled out of negotiations over a combination of issues that it said hurt the deal’s attractiveness. That puts the focus on the company to show it can close out complex cross-border acquisitions.
In July, the European Commission opened a full-scale investigation into the Covestro deal under tough new foreign subsidies rules, aimed at preventing sovereign states from using their financial muscle to crush competition in the 27-nation bloc. Officials at the EU’s executive arm warned that Adnoc’s state funding may give it an unfair advantage over rivals with less-deep pockets.
Last year under the bloc’s foreign subsidy rules, Abu Dhabi’s Emirates Telecommunications Group Co PJSC was forced to sign up to commitments that removed an unlimited state guarantee, in order to win EU approval for its €2.2 billion acquisition of PPF Telecom Group assets.
Aside from acquisitions, the EU has wielded its foreign subsidy powers largely against Chinese involvement in European markets across rail and clean energy sectors. Regulators raided the premises of Nuctech — a Chinese security equipment company with sites in the Netherlands and Poland.
The progress in talks marks a shift after XRG said earlier this month that the Covestro deals risked being torpedoed by the European competition probe as the requests for information were “disproportionate and invasive.”
A successful closing of the transaction would be key for Adnoc’s and XRG’s ambitions, including plans to use the billions of dollars at its disposal to snap up assets around the world. The company has already done deals for gas assets in the US, Africa and Central Asia, and is planning more in the Americas.
But the boldest play yet, a $19 billion takeover bid for Australian gas producer Santos Ltd., collapsed this month when XRG pulled out of negotiations over a combination of issues that it said hurt the deal’s attractiveness. That puts the focus on the company to show it can close out complex cross-border acquisitions.
In July, the European Commission opened a full-scale investigation into the Covestro deal under tough new foreign subsidies rules, aimed at preventing sovereign states from using their financial muscle to crush competition in the 27-nation bloc. Officials at the EU’s executive arm warned that Adnoc’s state funding may give it an unfair advantage over rivals with less-deep pockets.
Last year under the bloc’s foreign subsidy rules, Abu Dhabi’s Emirates Telecommunications Group Co PJSC was forced to sign up to commitments that removed an unlimited state guarantee, in order to win EU approval for its €2.2 billion acquisition of PPF Telecom Group assets.
Aside from acquisitions, the EU has wielded its foreign subsidy powers largely against Chinese involvement in European markets across rail and clean energy sectors. Regulators raided the premises of Nuctech — a Chinese security equipment company with sites in the Netherlands and Poland.
#Saudi Stocks Jump Most Since 2020 on Plan to Relax Foreign Curbs - Bloomberg
Saudi Stocks Jump Most Since 2020 on Plan to Relax Foreign Curbs - Bloomberg
Saudi Arabia’s stock market surged — adding $124 billion to its market capitalization — after Bloomberg reported that the kingdom may soon ease foreign ownership limits for listed companies.
The Tadawul All Share Index jumped 5.1% on Wednesday, the most in more than five years, after a board member of the Capital Market Authority said majority foreign ownership could come into effect by the end of the year.
Saudi bank stocks surged by a record 9.2% while JPMorgan Chase & Co., EFG Hermes and Franklin Templeton predicted billions in potential inflows to the market, which has missed this year’s emerging-market rally due to a drop in oil prices.
Investors are betting on a flood of investment to the Gulf nation if it eases rules that now cap foreign ownership of listed companies at 49%. The move would fit with Crown Prince Mohammed bin Salman’s efforts to deepen the local capital market and align it with its Gulf peers. The UAE, for example, said in 2019 it will allow foreigners to own 100% of businesses across industries.
“What makes it so powerful is the scale of the impact: a full removal could unlock over $10 billion in passive inflows, drive a major MSCI and FTSE reweighting and lift Saudi’s EM index weight by nearly 100 basis points,” said Salah Shamma, Franklin Templeton’s head of equity investment for the Middle East and North Africa.
While it’s a welcome step that can trigger a strong technical rally, the sustainability of Saudi Arabia’s stock market performance will rest on market fundamentals and the broader economic outlook, he added. Saudi stocks have suffered amid concerns around geopolitical tensions, low oil prices and the effects of spending curbs on economic growth.
A decision by the CMA to allow majority foreign ownership isn’t a foregone conclusion and it’s unclear how big a stake foreigners could eventually be able to own in Saudi equities if approval goes ahead.
But any move above 50% would be significant as it would allow investors from abroad to hold a majority of share capital in publicly listed companies for the first time.
The potential decision has given Saudi stocks a much needed boost: the benchmark index is among the worst performers globally this year, falling over 5% while the MSCI All Country World index has climbed almost 17%. Local investors have been a big part of selloff, while foreigners have used the slump — and its drag on valuations — as an opportunity to become more active in the market.
JPMorgan sees a potential capital influx of $10.6 billion should the CMA lift the ownership limit on stocks to 100%. EFG Hermes also anticipates about $10 billion of inflows.
Shares of Al Rajhi Bank surged 10%. Both JPMorgan and EFG expect it to be the biggest beneficiary of the possible change, attracting around $5 billion to $6 billion. Saudi National Bank and Alinma Bank would be the other key winners, JPMorgan analyst Pankaj Gupta said.
Lifting the restrictions also stands to boost the weight of Saudi equities in MSCI Inc. benchmarks. The kingdom’s weight in the MSCI Emerging Markets Index, for example, may increase to about 4%, JPMorgan’s Gupta wrote in a report. That compares with about 3.3% currently.
Saudi firms with the largest total percentage of shares owned by investors abroad prior to today’s trading include insurance provider Tawuniya, tech firm Rasan and telecom operator Etihad Etisalat. All stood above 20%, but below 25%.
Saudi National Bank has more than 17% of its total free float of shares out to foreigners, while Al Rajhi has under 15%. Alinma has below 10%.
Saudi Arabia’s stock market surged — adding $124 billion to its market capitalization — after Bloomberg reported that the kingdom may soon ease foreign ownership limits for listed companies.
The Tadawul All Share Index jumped 5.1% on Wednesday, the most in more than five years, after a board member of the Capital Market Authority said majority foreign ownership could come into effect by the end of the year.
Saudi bank stocks surged by a record 9.2% while JPMorgan Chase & Co., EFG Hermes and Franklin Templeton predicted billions in potential inflows to the market, which has missed this year’s emerging-market rally due to a drop in oil prices.
Investors are betting on a flood of investment to the Gulf nation if it eases rules that now cap foreign ownership of listed companies at 49%. The move would fit with Crown Prince Mohammed bin Salman’s efforts to deepen the local capital market and align it with its Gulf peers. The UAE, for example, said in 2019 it will allow foreigners to own 100% of businesses across industries.
“What makes it so powerful is the scale of the impact: a full removal could unlock over $10 billion in passive inflows, drive a major MSCI and FTSE reweighting and lift Saudi’s EM index weight by nearly 100 basis points,” said Salah Shamma, Franklin Templeton’s head of equity investment for the Middle East and North Africa.
While it’s a welcome step that can trigger a strong technical rally, the sustainability of Saudi Arabia’s stock market performance will rest on market fundamentals and the broader economic outlook, he added. Saudi stocks have suffered amid concerns around geopolitical tensions, low oil prices and the effects of spending curbs on economic growth.
A decision by the CMA to allow majority foreign ownership isn’t a foregone conclusion and it’s unclear how big a stake foreigners could eventually be able to own in Saudi equities if approval goes ahead.
But any move above 50% would be significant as it would allow investors from abroad to hold a majority of share capital in publicly listed companies for the first time.
The potential decision has given Saudi stocks a much needed boost: the benchmark index is among the worst performers globally this year, falling over 5% while the MSCI All Country World index has climbed almost 17%. Local investors have been a big part of selloff, while foreigners have used the slump — and its drag on valuations — as an opportunity to become more active in the market.
JPMorgan sees a potential capital influx of $10.6 billion should the CMA lift the ownership limit on stocks to 100%. EFG Hermes also anticipates about $10 billion of inflows.
Shares of Al Rajhi Bank surged 10%. Both JPMorgan and EFG expect it to be the biggest beneficiary of the possible change, attracting around $5 billion to $6 billion. Saudi National Bank and Alinma Bank would be the other key winners, JPMorgan analyst Pankaj Gupta said.
Lifting the restrictions also stands to boost the weight of Saudi equities in MSCI Inc. benchmarks. The kingdom’s weight in the MSCI Emerging Markets Index, for example, may increase to about 4%, JPMorgan’s Gupta wrote in a report. That compares with about 3.3% currently.
Saudi firms with the largest total percentage of shares owned by investors abroad prior to today’s trading include insurance provider Tawuniya, tech firm Rasan and telecom operator Etihad Etisalat. All stood above 20%, but below 25%.
Saudi National Bank has more than 17% of its total free float of shares out to foreigners, while Al Rajhi has under 15%. Alinma has below 10%.
Mideast Stocks: #Saudi stocks soar to 5-year high on foreign ownership reform hopes
Mideast Stocks: Saudi stocks soar to 5-year high on foreign ownership reform hopes
Saudi stocks rallied sharply on Wednesday following news that the Capital Market Authority (CMA) is considering allowing foreign investors to own majority stakes in listed companies, while UAE markets extended losses on broad weakness.
Saudi Arabia's benchmark index surged 5.1%, recording its biggest single-day gain in more than five years, on market-wide strength after Bloomberg News reported regulators may ease the current 49% cap on foreign ownership of listed firms, a move expected to draw fresh foreign inflows in the region’s largest equity market.
Shares of Al Rajhi Bank, the world’s biggest Islamic lender, climbed 10%, hitting the exchange’s daily limit and marking the steepest gain in nearly two decades. Saudi National Bank also rose 10%, its largest advance since its 2014 listing.
The potential rule change may trigger over $10 billion in foreign inflows and lead MSCI to raise Saudi Arabia’s index weights, boosting demand and valuations, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
However, Oil behemoth Saudi Aramco eased 0.2%, after talks to acquire a minority stake in Spanish energy firm Repsol’s renewables unit hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters.
Dubai's main share index fell 1.5%, , with all sectors lower on profit-taking after a failed rebound. Emaar Properties slipped 2.5% to a three-month low, while Emirates NBD Bank lost more than 1.5%. National Central Cooling dragged on utilities, down 3% after trading ex-dividend.
In Abu Dhabi, the benchmark declined 1.3%, erasing much of its recent recovery. Aldar Properties fell 2.6% to a more-than two-month low, while ADNOC Gas dipped 0.6%.
Saudi stocks rallied sharply on Wednesday following news that the Capital Market Authority (CMA) is considering allowing foreign investors to own majority stakes in listed companies, while UAE markets extended losses on broad weakness.
Saudi Arabia's benchmark index surged 5.1%, recording its biggest single-day gain in more than five years, on market-wide strength after Bloomberg News reported regulators may ease the current 49% cap on foreign ownership of listed firms, a move expected to draw fresh foreign inflows in the region’s largest equity market.
Shares of Al Rajhi Bank, the world’s biggest Islamic lender, climbed 10%, hitting the exchange’s daily limit and marking the steepest gain in nearly two decades. Saudi National Bank also rose 10%, its largest advance since its 2014 listing.
The potential rule change may trigger over $10 billion in foreign inflows and lead MSCI to raise Saudi Arabia’s index weights, boosting demand and valuations, said Daniel Takieddine, co-founder and CEO of Sky Links Capital Group.
However, Oil behemoth Saudi Aramco eased 0.2%, after talks to acquire a minority stake in Spanish energy firm Repsol’s renewables unit hit an impasse over a potential 1 billion euro ($1.2 billion) investment, two sources familiar with the matter told Reuters.
Dubai's main share index fell 1.5%, , with all sectors lower on profit-taking after a failed rebound. Emaar Properties slipped 2.5% to a three-month low, while Emirates NBD Bank lost more than 1.5%. National Central Cooling dragged on utilities, down 3% after trading ex-dividend.
In Abu Dhabi, the benchmark declined 1.3%, erasing much of its recent recovery. Aldar Properties fell 2.6% to a more-than two-month low, while ADNOC Gas dipped 0.6%.
A drop of more than 1% in Dubai and Abu Dhabi reflected reaction to possible Saudi regulatory changes, said Mohammed Ali Yasin, CEO of Ghaf Benefits at Lunate.
Qatar's stock index ended 0.9% lower, its fourth straight decline, as Qatar Islamic Bank slid over 2% and Qatar National Bank fell 1.1%.
Qatar's stock index ended 0.9% lower, its fourth straight decline, as Qatar Islamic Bank slid over 2% and Qatar National Bank fell 1.1%.
Outside the Gulf, Egypt's blue-chip index jumped 1.8%, building on the previous session's gains, boosted by a 3.2% jump in Commercial International Bank.
Tuesday, 23 September 2025
#Dubai’s Up to $381 Million ALEC Contractor IPO Sells Out - Bloomberg
Dubai’s Up to $381 Million ALEC Contractor IPO Sells Out - Bloomberg
Dubai had demand for all shares on offer in an up to $381 million initial public offering of ALEC Engineering & Contracting LLC, marking the emirate’s latest push to privatize assets and capitalize on a construction boom in the Middle East.
State-backed Investment Corp. of Dubai is offering 1 billion shares, or a 20% stake in ALEC, at a price between 1.35 and 1.40 dirhams ($0.37-$0.38) apiece, according to terms of the deal seen by Bloomberg News. The higher end of the price range values the contracting firm at $1.91 billion.
Books were fully covered throughout the price range soon after opening.
Emirates NBD Capital and JPMorgan Chase & Co. are joint global coordinators on the sale, with Abu Dhabi Commercial Bank and EFG Hermes acting as joint bookrunners. Moelis & Co. is independent financial advisor.
The subscription period will run until Sept. 30 and shares are expected to list on the Dubai Financial Market on Oct. 15.
ALEC delivers large-scale projects in the UAE and Saudi Arabia including airports, energy infrastructure, hospitality and leisure developments such as Abu Dhabi’s SeaWorld and Dubai’s One Za’abeel tower.
The builder is expanding into data centers in both markets - it recently won a 5.3 billion dirham contract for Abu Dhabi’s Stargate data center project and is in contact with potential partners in Saudi Arabia including Humain and data center firm Khazna, chief executive officer Barry Lewis said in a press briefing last week.
Lewis said ALEC’s Saudi pipeline had not so far been impacted by the kingdom reprioritizing certain projects as lower oil prices strain its budget.
ALEC’s net income reached 363 million dirhams in 2024, a 53% year-on-year increase.
The contractor plans to pay a 200 million dirham dividend in April 2026, followed by 500 million dirhams to be split between October 2026 and April 2027.
Dubai’s privatization program has raised around $9.6 billion since it was launched in 2021, and has included the IPOs of a utility company, a taxi operator and a district cooling firm. In May, a fund linked to the emirate’s ruler floated a $584 million a residential real estate investment trust, and is planning to list a portfolio with malls and retail assets.
Dubai had demand for all shares on offer in an up to $381 million initial public offering of ALEC Engineering & Contracting LLC, marking the emirate’s latest push to privatize assets and capitalize on a construction boom in the Middle East.
State-backed Investment Corp. of Dubai is offering 1 billion shares, or a 20% stake in ALEC, at a price between 1.35 and 1.40 dirhams ($0.37-$0.38) apiece, according to terms of the deal seen by Bloomberg News. The higher end of the price range values the contracting firm at $1.91 billion.
Books were fully covered throughout the price range soon after opening.
Emirates NBD Capital and JPMorgan Chase & Co. are joint global coordinators on the sale, with Abu Dhabi Commercial Bank and EFG Hermes acting as joint bookrunners. Moelis & Co. is independent financial advisor.
The subscription period will run until Sept. 30 and shares are expected to list on the Dubai Financial Market on Oct. 15.
ALEC delivers large-scale projects in the UAE and Saudi Arabia including airports, energy infrastructure, hospitality and leisure developments such as Abu Dhabi’s SeaWorld and Dubai’s One Za’abeel tower.
The builder is expanding into data centers in both markets - it recently won a 5.3 billion dirham contract for Abu Dhabi’s Stargate data center project and is in contact with potential partners in Saudi Arabia including Humain and data center firm Khazna, chief executive officer Barry Lewis said in a press briefing last week.
Lewis said ALEC’s Saudi pipeline had not so far been impacted by the kingdom reprioritizing certain projects as lower oil prices strain its budget.
ALEC’s net income reached 363 million dirhams in 2024, a 53% year-on-year increase.
The contractor plans to pay a 200 million dirham dividend in April 2026, followed by 500 million dirhams to be split between October 2026 and April 2027.
Dubai’s privatization program has raised around $9.6 billion since it was launched in 2021, and has included the IPOs of a utility company, a taxi operator and a district cooling firm. In May, a fund linked to the emirate’s ruler floated a $584 million a residential real estate investment trust, and is planning to list a portfolio with malls and retail assets.
Revolut Plans #UAE Debut After Securing Central Bank Approval - Bloomberg
Revolut Plans UAE Debut After Securing Central Bank Approval - Bloomberg
Revolut Ltd. is planning to launch its services in the United Arab Emirates after the fintech behemoth secured initial approval for licenses from the country’s central bank.
The Central Bank of the UAE approved Revolut’s application for a so-called Stored Value Facilities and Retail Payment Services licenses, according to a statement. The fintech now plans to ramp up its hiring efforts in the country over the coming months.
“Receiving these in-principle approvals from the Central Bank of the UAE is a pivotal step for Revolut in the region,” said Ambareen Musa, who leads the firm’s operations in the Gulf Cooperation Council.
Revolut is a London-headquartered digital bank that offers checking and savings accounts, international money transfers, cryptocurrency and stock trading as well as bill paying and budgeting tools.
The fintech has rapidly expanded into new markets in recent years and now has operations in Australia, Brazil, Mexico, Japan, New Zealand, Singapore, the US, and India, according to the statement. The company aims to become one of the top three financial apps in every market it enters.
Revolut plans to continue expanding across the Gulf and is considering applying for a license in Saudi Arabia as its next move, according to people familiar with the matter.
The fintech has played a role in ongoing trade talks between the kingdom and its home country. Executives were recently part of a meeting that included officials from both countries, the people said, asking not to be identified discussing non-public information.
Musa joined Revolut last year after founding Souqalmal.com, a financial comparison platform in the Middle East. She also previously held consulting positions at Bain & Co. and Mastercard Inc.
Revolut Ltd. is planning to launch its services in the United Arab Emirates after the fintech behemoth secured initial approval for licenses from the country’s central bank.
The Central Bank of the UAE approved Revolut’s application for a so-called Stored Value Facilities and Retail Payment Services licenses, according to a statement. The fintech now plans to ramp up its hiring efforts in the country over the coming months.
“Receiving these in-principle approvals from the Central Bank of the UAE is a pivotal step for Revolut in the region,” said Ambareen Musa, who leads the firm’s operations in the Gulf Cooperation Council.
Revolut is a London-headquartered digital bank that offers checking and savings accounts, international money transfers, cryptocurrency and stock trading as well as bill paying and budgeting tools.
The fintech has rapidly expanded into new markets in recent years and now has operations in Australia, Brazil, Mexico, Japan, New Zealand, Singapore, the US, and India, according to the statement. The company aims to become one of the top three financial apps in every market it enters.
Revolut plans to continue expanding across the Gulf and is considering applying for a license in Saudi Arabia as its next move, according to people familiar with the matter.
The fintech has played a role in ongoing trade talks between the kingdom and its home country. Executives were recently part of a meeting that included officials from both countries, the people said, asking not to be identified discussing non-public information.
Musa joined Revolut last year after founding Souqalmal.com, a financial comparison platform in the Middle East. She also previously held consulting positions at Bain & Co. and Mastercard Inc.
#SaudiArabia to Free Stocks From Local Grip in Major Equity Push - Bloomberg
Saudis to Free Stocks From Local Grip in Major Equity Push - Bloomberg
Saudi Arabia is set to make one of the most dramatic moves yet in its push to revive its underperforming equity market: allowing foreigners to own a majority stake in local companies.
The Capital Market Authority is close to easing rules that cap foreign ownership of listed companies at 49%, said Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the regulator.
“I think we’re almost there,” he said in an interview this month. “It could come into effect before the end of the year.”
Any shift above 50% would do away with years of precedent and put Saudi equities in a position to claim a bigger weighting in MSCI Inc.’s benchmark indexes. That in turn would attract additional investment to the market from passive and active fund managers. In calculating its indexes, MSCI reduces the weighting of companies that are subject to foreign ownership limits.
Approval is still needed from other stakeholders in the government but the regulator is ready to push ahead, he said. Bin Hassan didn’t specify how big a stake foreigners may eventually be able to own in Saudi companies.
Companies on Saudi Arabia’s $2.3 trillion main exchange make up about 3.3% of the MSCI Emerging Markets Index.
“A decision to relax means the weight in MSCI will all of a sudden go up and more capital will flock to the market,” said Fadi Arbid, founding partner and chief investment officer at Amwal Capital Partners.
Saudi Arabia is looking to reinvigorate its stock market after months of underperformance sparked by geopolitical strife, stagnant oil prices and revisions to public works projects and spending. The main Saudi index has fallen 9.6% this year, the worst performance in the region. The MSCI emerging-markets benchmark, in contrast has gained 25% in dollars.
Still, foreign investors increasingly are allocating money to Saudi equities, drawn in by market reforms and its cheap valuation.
The Gulf nation’s need for investment from abroad is becoming increasingly pronounced as Saudi Arabia pursues its Vision 2030 economic transformation plan at a time when high spending and low oil revenue are driving budget deficits.
Adjusting foreign ownership limits may help to immediately boost passive investment, while encouraging active investors to consider whether they should increase exposure to Saudi companies, Arbid said.
Saudi firms with the largest percentage of shares owned by investors abroad include insurance provider Tawuniya, tech firm Rasan and telecom operator Etihad Etisalat. All stand above 20% but below 25%.
Saudi Arabia is set to make one of the most dramatic moves yet in its push to revive its underperforming equity market: allowing foreigners to own a majority stake in local companies.
The Capital Market Authority is close to easing rules that cap foreign ownership of listed companies at 49%, said Abdulaziz Abdulmohsen Bin Hassan, a member of the five-person board that governs the regulator.
“I think we’re almost there,” he said in an interview this month. “It could come into effect before the end of the year.”
Any shift above 50% would do away with years of precedent and put Saudi equities in a position to claim a bigger weighting in MSCI Inc.’s benchmark indexes. That in turn would attract additional investment to the market from passive and active fund managers. In calculating its indexes, MSCI reduces the weighting of companies that are subject to foreign ownership limits.
Approval is still needed from other stakeholders in the government but the regulator is ready to push ahead, he said. Bin Hassan didn’t specify how big a stake foreigners may eventually be able to own in Saudi companies.
Companies on Saudi Arabia’s $2.3 trillion main exchange make up about 3.3% of the MSCI Emerging Markets Index.
“A decision to relax means the weight in MSCI will all of a sudden go up and more capital will flock to the market,” said Fadi Arbid, founding partner and chief investment officer at Amwal Capital Partners.
Saudi Arabia is looking to reinvigorate its stock market after months of underperformance sparked by geopolitical strife, stagnant oil prices and revisions to public works projects and spending. The main Saudi index has fallen 9.6% this year, the worst performance in the region. The MSCI emerging-markets benchmark, in contrast has gained 25% in dollars.
Still, foreign investors increasingly are allocating money to Saudi equities, drawn in by market reforms and its cheap valuation.
The Gulf nation’s need for investment from abroad is becoming increasingly pronounced as Saudi Arabia pursues its Vision 2030 economic transformation plan at a time when high spending and low oil revenue are driving budget deficits.
Adjusting foreign ownership limits may help to immediately boost passive investment, while encouraging active investors to consider whether they should increase exposure to Saudi companies, Arbid said.
Saudi firms with the largest percentage of shares owned by investors abroad include insurance provider Tawuniya, tech firm Rasan and telecom operator Etihad Etisalat. All stand above 20% but below 25%.
Subscribe to:
Comments (Atom)