Foreigners Boost 1Q Trading on Abu Dhabi Exchange to 4-Year High - Bloomberg
The Abu Dhabi Securities Exchange witnessed a 151% surge in net foreign investment in the first quarter as it rolled out a new corporate structure, technology upgrades and a broader range of product offerings, Group Chief Executive Officer Abdulla Salem Alnuaimi said.
Foreigners bought and sold a total of about 70 billion dirhams ($19 billion) worth of securities listed on the exchange in the quarter, leading to a net flow of 8.54 billion dirhams, data for the January-March period showed. Foreigners accounted for 42% of trade on the bourse, a four-year high.
“We align with the UAE government’s goals to attract foreign investment, diversify the economy, and support a strong financial sector,” Alnuaimi said in an interview. “To increase foreign trading on ADX, we’re connecting with global exchanges and platforms, and promoting dual listings to bring in new investors.”
The $800 billion Abu Dhabi market, one of the two key trading venues along with Dubai in the United Arab Emirates, embraced a group structure at the start of the year. It spun off its post-trading activities into two subsidiaries — for clearance and security-depository businesses.
ADX also introduced an updated technology platform that increased trading speeds and included support for high-frequency and algorithmic trading and a new customer-management system.
“Our upgraded trading system aims to enhance performance by 400%,” Alnuaimi said. “In 2025, we plan to add new trading features, investment products, and services. We also want to welcome new trading participants.”
While the Abu Dhabi exchange’s main equity index made a sluggish start to the year, underperforming peer emerging markets, investor activity continued to strengthen. Trading volumes rose in the first quarter — 39% by number of shares and 41% by number of transactions.
The turbulence also underscored the challenges faced by stock exchanges as US President Donald Trump’s trade policies usher in an era of market chaos and sharp reversals in capital flows. ADX is betting on technology investments and product diversification to keep investor interest alive, all underpinned by economic growth in the emirate, Alnuaimi said.
“The global stock exchange business is constantly changing and highly competitive,” he said. “We’re seeing impacts from globalization, fast technological advancements, varied investor interests, regulatory changes, and the rise of digital platforms.”
Abu Dhabi joined a global selloff in April as money managers’ bets that the UAE would remain isolated from the impact of Trump’s tariffs were tested. Amid the volatility, however, ADX has been working to boost the city’s appeal to global investors as well as local entrepreneurs looking to list their startups.
The exchange’s “growth market” segment, which allows new-age companies in fields like sports and health care to list on the exchange without an initial public offering, expanded 34% last year, according to Alnuaimi. As many as 14 companies are now traded in the segment.
“We have simplified listing processes to help private companies raise capital, gain visibility, and expand their investor base, contributing to Abu Dhabi’s economic diversification,” Alnuaimi said.
Meanwhile, ADX has been expanding its exchange-traded fund business. ETFs on the bourse boosted their market capitalization by 109% to 784 million dirhams in the first quarter, Alnuaimi said. The exchange now has 16 ETFs cover 10 emerging and developed markets, UAE bonds and global sukuks.
Thursday, 10 April 2025
Mideast Bankers Count on IPO Boom to Resume After Trade Turmoil - Bloomberg
Mideast Bankers Count on IPO Boom to Resume After Trade Turmoil - Bloomberg
The Middle East, a bright spot for new share sales for four years, faces a significant challenge from the recent volatility in equity markets and a slump in oil prices. Even so, bankers are hopeful that dealflow will resume in coming weeks.
Unlike a raft of companies in Europe and the US, Middle Eastern firms planning to go public later this quarter haven’t yet postponed plans, according to bankers working on the deals. The region is relatively insulated from US tariffs and many of the businesses considering listing are heavily tied to fast expanding local economies, they said.
EFG Hermes, which arranged the most IPOs in the Middle East last year, still expects to bring six to seven more deals to market in 2025 — primarily in Saudi Arabia, in addition to a potential deal in Kuwait, a senior banker said. JPMorgan Chase & Co. also hasn’t yet seen significant changes to its regional pipeline for this year, or to more preliminary discussions with companies looking to list in 2026 or 2027.
“We’re still on track,” said Mostafa Gad, global head of investment banking at EFG. None of Gad’s deals have been postponed or canceled, and internal preparation for new share sales continues.
Those comments come against a backdrop of lingering risks — markets remain volatile and concerns about global growth abound. Global assets from stocks to bonds have seen sharp swings in recent days as US President Donald Trump imposed sweeping global tariffs and then went on to pause most of them.
The oil-exporting Gulf could take an economic hit with crude prices plunging below $65 a barrel after a surprise OPEC+ production hike and concerns that the tariffs could spur a global slowdown.
“If we see bigger pressure below the $60 mark, then you start seeing some alarms,” Gad said. “Then you’ll wait and see how the governments want to react. They will either be very cautious about the deficits and start cutting spending or they say, look it’s temporary, let’s live with a bigger deficit for a little bit of time and then figure it out.”
In Abu Dhabi, flagship carrier Etihad Airways PJSC has been lining up an IPO since last year. Meanwhile, Dubai Holding LLC, a vehicle controlled by the emirate’s ruler, had been weighing a listing of a residential real estate portfolio as early as this month, according to people familiar with the matter. Executives at both firms continue to monitor markets and no decision has been made on the timing of the deals, people familiar with the matter said. Representatives for Etihad and Dubai Holding declined to comment.
JPMorgan’s head of equity capital markets for Central Eastern Europe, Middle East and Africa, Gokul Mani, said his Middle Eastern pipeline hasn’t been affected.
“Transactions that might have been looking to launch this week or next week will probably get delayed to a couple weeks further out, but that’s to be expected given global volatility and disruptions to supply chains,” Mani said.
Still, investors are growing more discerning, and he expects mainly higher quality companies will be able to get their deals done.
A smattering of Saudi Arabian companies had their IPO plans greenlit by the regulator just before the Eid holiday last month, including low-cost carrier Flynas, gym chain operator Sports Club Co., hospital operator Specialized Medical Co., Al Majed Real Estate Company and Marketing Home Group Co. Tech firm Ejada Systems and packaging firm United Carton Industries Co. also have regulatory approvals to list.
Even so, talk of new listings may be too premature for some investors as they focus on navigating the turmoil and finding opportunities. “I think it’s a bit too early to say as volatility is still very high on all the financial parameters that affect any valuation,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital.
The Middle East, a bright spot for new share sales for four years, faces a significant challenge from the recent volatility in equity markets and a slump in oil prices. Even so, bankers are hopeful that dealflow will resume in coming weeks.
Unlike a raft of companies in Europe and the US, Middle Eastern firms planning to go public later this quarter haven’t yet postponed plans, according to bankers working on the deals. The region is relatively insulated from US tariffs and many of the businesses considering listing are heavily tied to fast expanding local economies, they said.
EFG Hermes, which arranged the most IPOs in the Middle East last year, still expects to bring six to seven more deals to market in 2025 — primarily in Saudi Arabia, in addition to a potential deal in Kuwait, a senior banker said. JPMorgan Chase & Co. also hasn’t yet seen significant changes to its regional pipeline for this year, or to more preliminary discussions with companies looking to list in 2026 or 2027.
“We’re still on track,” said Mostafa Gad, global head of investment banking at EFG. None of Gad’s deals have been postponed or canceled, and internal preparation for new share sales continues.
Those comments come against a backdrop of lingering risks — markets remain volatile and concerns about global growth abound. Global assets from stocks to bonds have seen sharp swings in recent days as US President Donald Trump imposed sweeping global tariffs and then went on to pause most of them.
The oil-exporting Gulf could take an economic hit with crude prices plunging below $65 a barrel after a surprise OPEC+ production hike and concerns that the tariffs could spur a global slowdown.
“If we see bigger pressure below the $60 mark, then you start seeing some alarms,” Gad said. “Then you’ll wait and see how the governments want to react. They will either be very cautious about the deficits and start cutting spending or they say, look it’s temporary, let’s live with a bigger deficit for a little bit of time and then figure it out.”
In Abu Dhabi, flagship carrier Etihad Airways PJSC has been lining up an IPO since last year. Meanwhile, Dubai Holding LLC, a vehicle controlled by the emirate’s ruler, had been weighing a listing of a residential real estate portfolio as early as this month, according to people familiar with the matter. Executives at both firms continue to monitor markets and no decision has been made on the timing of the deals, people familiar with the matter said. Representatives for Etihad and Dubai Holding declined to comment.
JPMorgan’s head of equity capital markets for Central Eastern Europe, Middle East and Africa, Gokul Mani, said his Middle Eastern pipeline hasn’t been affected.
“Transactions that might have been looking to launch this week or next week will probably get delayed to a couple weeks further out, but that’s to be expected given global volatility and disruptions to supply chains,” Mani said.
Still, investors are growing more discerning, and he expects mainly higher quality companies will be able to get their deals done.
A smattering of Saudi Arabian companies had their IPO plans greenlit by the regulator just before the Eid holiday last month, including low-cost carrier Flynas, gym chain operator Sports Club Co., hospital operator Specialized Medical Co., Al Majed Real Estate Company and Marketing Home Group Co. Tech firm Ejada Systems and packaging firm United Carton Industries Co. also have regulatory approvals to list.
Even so, talk of new listings may be too premature for some investors as they focus on navigating the turmoil and finding opportunities. “I think it’s a bit too early to say as volatility is still very high on all the financial parameters that affect any valuation,” said Christian Ghandour, senior portfolio manager at Al Dhabi Capital.
Goldman Warns #SaudiArabia Deficit Could Rise on Oil Crash - Bloomberg
Goldman Warns Saudi Arabia Deficit Could Rise on Oil Crash - Bloomberg
The oil-price crash is set to have far-reaching consequences for Saudi Arabia’s finances and vast economic ambitions.
The kingdom’s budget deficit may soar to $67 billion this year, according to projections shared by Goldman Sachs Group Inc. economist Farouk Soussa in an interview.
That calculation, based on oil averaging $62 a barrel in 2025, is well over double the government’s current forecast and will likely force Crown Prince Mohammed bin Salman to borrow more on global bond markets and further cut back his multitrillion-dollar plans to transform the economy.
Crude has plunged to its lowest level in about four years after US President Donald Trump unveiled new tariffs on almost all countries on April 2, raising the possibility of a global recession. Within hours of that, OPEC+, an oil cartel headed by Saudi Arabia and Russia, shocked energy traders by saying it would speed up plans to raise output.
Brent crude recovered late on Wednesday after Trump said he’d delay some levies, but fell again on Thursday. At $64 a barrel, it’s still down almost 15% in the past week. And many analysts predict the worst is to come.
Saudi Arabia’s ministry of finance told Bloomberg it’s assessing the recent developments and stands ready to take whatever decisions are needed to keep its fiscal position strong.
“There’s going to have to be some fiscal adjustment,” Soussa, Goldman’s economist for the Middle East and North Africa, said in an interview.
“We’re going to see more borrowing and I do think there’s got to be a more aggressive re-prioritization when it comes to the projects,” he said. “They don’t shy away from these really difficult decisions.”
Even before this month’s rout, oil was too low for the kingdom to balance its budget. The government needed prices to be as high as $93 last year to achieve that, and $108 if the sovereign wealth fund’s spending on the crown prince’s mega projects was included, according to Ziad Daoud, chief emerging markets economist at Bloomberg Economics.
In recent months, the Saudi government delayed some spending. The finance ministry said that was to reprioritize projects and avoid overheating the economy.
“We remain confident that most of our vision targets are either achieved or on track and we will deliver on the key events we are hosting,” a spokesperson said.
While Saudi Arabia doesn’t disclose oil-price assumptions for its budget, it estimated this year’s fiscal deficit would be 2.3% of gross domestic product, but could rise to 3.7% in a low-revenue scenario. Goldman’s figure of $67 billion would mean a gap of more than 6%, the biggest since 2020, during the Covid-19 pandemic.
Oil production increases under OPEC+’s new plans will do little to counter the revenue losses from lower prices, according to Daoud, who has reduced this year’s growth outlook for the $1.1 trillion economy to 2.6% from 3%. He sees the non-oil sector, which the crown prince’s projects are focused on and which employs the vast bulk of Saudis, being affected.
“Despite the label, Saudi Arabia’s non-oil boom rides on oil,” Daoud said. “Lower prices mean spending cutbacks, slowing construction and reducing public-sector hirings.”
More borrowing beckons. That’s even though Saudi Arabia is already the biggest bond issuer in global markets among developing nations, having sold more than $14 billion of dollar and euro debt so far in 2025.
It could raise another $16.5 billion before the year’s out, barring further spending cuts, according to calculations by Tim Callen, a visiting scholar at the Arab Gulf States Institute in Washington. If so, that would smash the kingdom’s current annual record for international borrowing of $21.5 billion, set in 2017, according to data compiled by Bloomberg.
Such a task could become more complicated, and expensive, after Saudi Arabia’s credit-default swaps — a gauge of a country’s risk premium — jumped in the last week to the highest since 2020.
In the Gulf state’s favor, it has a debt-to-GDP ratio of around 30%, far below that of most other emerging markets. S&P Global Ratings upgraded it to the same level as Japan and China last month, saying the government’s efforts to diversify from oil were gaining traction.
Still, the weaker oil market will put the plans of the crown prince, known as MBS, to the test.
There are dozens of mega projects underway, including the ski resort of Trojena, the historical mud city of Diriyah and a cube-shaped skyscraper big enough to fit 20 Empire State Buildings. Those are all going on as the kingdom plans to host the World Expo in 2030 and men’s football world cup in 2034.
“Funding of the investment program was always going to be the key challenge for Vision 2030,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “The lower oil price significantly raises the challenge.”
To come up with more cash, Saudi Arabia has been selling stakes in companies. The government raised $12 billion through a follow-on share sale of oil giant Aramco in mid-2024, while the wealth fund raised $1 billion by disposing some of Saudi Telecom Co. in November.
That’s another lever the Saudis may continue to pull to plug the deficit, according to Goldman’s Soussa. Riyadh could also use its $410 billion of foreign-exchange reserves, though would probably avoid that since they’re mainly designed to back the riyal’s peg to the dollar, he added.
“They’re not going to build Trojena or the cube or Diriyah if doing so means that they’re going to go broke or they’re going to de-peg the currency,” Soussa said. “They won’t drive themselves into any of these kinds of economic binds simply to maintain their level of expenditure. That’s just not going to happen.”
The oil-price crash is set to have far-reaching consequences for Saudi Arabia’s finances and vast economic ambitions.
The kingdom’s budget deficit may soar to $67 billion this year, according to projections shared by Goldman Sachs Group Inc. economist Farouk Soussa in an interview.
That calculation, based on oil averaging $62 a barrel in 2025, is well over double the government’s current forecast and will likely force Crown Prince Mohammed bin Salman to borrow more on global bond markets and further cut back his multitrillion-dollar plans to transform the economy.
Crude has plunged to its lowest level in about four years after US President Donald Trump unveiled new tariffs on almost all countries on April 2, raising the possibility of a global recession. Within hours of that, OPEC+, an oil cartel headed by Saudi Arabia and Russia, shocked energy traders by saying it would speed up plans to raise output.
Brent crude recovered late on Wednesday after Trump said he’d delay some levies, but fell again on Thursday. At $64 a barrel, it’s still down almost 15% in the past week. And many analysts predict the worst is to come.
Saudi Arabia’s ministry of finance told Bloomberg it’s assessing the recent developments and stands ready to take whatever decisions are needed to keep its fiscal position strong.
“There’s going to have to be some fiscal adjustment,” Soussa, Goldman’s economist for the Middle East and North Africa, said in an interview.
“We’re going to see more borrowing and I do think there’s got to be a more aggressive re-prioritization when it comes to the projects,” he said. “They don’t shy away from these really difficult decisions.”
Even before this month’s rout, oil was too low for the kingdom to balance its budget. The government needed prices to be as high as $93 last year to achieve that, and $108 if the sovereign wealth fund’s spending on the crown prince’s mega projects was included, according to Ziad Daoud, chief emerging markets economist at Bloomberg Economics.
In recent months, the Saudi government delayed some spending. The finance ministry said that was to reprioritize projects and avoid overheating the economy.
“We remain confident that most of our vision targets are either achieved or on track and we will deliver on the key events we are hosting,” a spokesperson said.
While Saudi Arabia doesn’t disclose oil-price assumptions for its budget, it estimated this year’s fiscal deficit would be 2.3% of gross domestic product, but could rise to 3.7% in a low-revenue scenario. Goldman’s figure of $67 billion would mean a gap of more than 6%, the biggest since 2020, during the Covid-19 pandemic.
Oil production increases under OPEC+’s new plans will do little to counter the revenue losses from lower prices, according to Daoud, who has reduced this year’s growth outlook for the $1.1 trillion economy to 2.6% from 3%. He sees the non-oil sector, which the crown prince’s projects are focused on and which employs the vast bulk of Saudis, being affected.
“Despite the label, Saudi Arabia’s non-oil boom rides on oil,” Daoud said. “Lower prices mean spending cutbacks, slowing construction and reducing public-sector hirings.”
More borrowing beckons. That’s even though Saudi Arabia is already the biggest bond issuer in global markets among developing nations, having sold more than $14 billion of dollar and euro debt so far in 2025.
It could raise another $16.5 billion before the year’s out, barring further spending cuts, according to calculations by Tim Callen, a visiting scholar at the Arab Gulf States Institute in Washington. If so, that would smash the kingdom’s current annual record for international borrowing of $21.5 billion, set in 2017, according to data compiled by Bloomberg.
Such a task could become more complicated, and expensive, after Saudi Arabia’s credit-default swaps — a gauge of a country’s risk premium — jumped in the last week to the highest since 2020.
In the Gulf state’s favor, it has a debt-to-GDP ratio of around 30%, far below that of most other emerging markets. S&P Global Ratings upgraded it to the same level as Japan and China last month, saying the government’s efforts to diversify from oil were gaining traction.
Still, the weaker oil market will put the plans of the crown prince, known as MBS, to the test.
There are dozens of mega projects underway, including the ski resort of Trojena, the historical mud city of Diriyah and a cube-shaped skyscraper big enough to fit 20 Empire State Buildings. Those are all going on as the kingdom plans to host the World Expo in 2030 and men’s football world cup in 2034.
“Funding of the investment program was always going to be the key challenge for Vision 2030,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “The lower oil price significantly raises the challenge.”
To come up with more cash, Saudi Arabia has been selling stakes in companies. The government raised $12 billion through a follow-on share sale of oil giant Aramco in mid-2024, while the wealth fund raised $1 billion by disposing some of Saudi Telecom Co. in November.
That’s another lever the Saudis may continue to pull to plug the deficit, according to Goldman’s Soussa. Riyadh could also use its $410 billion of foreign-exchange reserves, though would probably avoid that since they’re mainly designed to back the riyal’s peg to the dollar, he added.
“They’re not going to build Trojena or the cube or Diriyah if doing so means that they’re going to go broke or they’re going to de-peg the currency,” Soussa said. “They won’t drive themselves into any of these kinds of economic binds simply to maintain their level of expenditure. That’s just not going to happen.”
#Dubai, #AbuDhabi: #UAE Urges Wealthy Families to Plan Succession - Bloomberg
Dubai, Abu Dhabi: UAE Urges Wealthy Families to Plan Succession - Bloomberg
The United Arab Emirates is stepping up efforts to formalize succession planning among its wealthiest families, moves aimed at avoiding conflicts and economic disruption when control passes on to the next generation.
Officials from the country’s economy ministry recently met with heads of prominent business families to encourage them to establish formal structures around their wealth, according to people familiar with the matter.
The discussions centered around the potential creation of family offices to better manage generational transitions and a renewed effort to encourage local listings, the people said, declining to be identified as the information is confidential.
Family-owned businesses make up about 90% of private companies in the UAE, spanning sectors from supermarket chains to luxury car dealerships. While there are no official estimates, US-based Dash Venture Labs projects that the country’s richest families will control a combined $1 trillion by the end of next year.
“One-in-four estates in the Middle East looks set to transfer without predefined rules or instructions, creating a host of cost and time pressures,” according to a January report from the Dubai International Financial Centre’s Innovation Hub. About $49 billion could go unclaimed in the region before 2030, with another $123 billion held up for over six months in costly probate processes, the report estimated.
Additionally, the clans themselves have evolved in recent years, increasingly deploying capital into private equity and venture capital deals. Since such investments are typically riskier bets, the government is keen to have more formalized internal governance and processes, according to one of the people.
The UAE foreign ministry didn’t respond to requests for comment.
Traditionally, the country’s rulers relied on merchant families, granting them control over certain sectors in exchange for support. However, as the UAE economy starts to open up more, and as many conglomerates face their first generational transitions, that model is showing signs of strain.
The urgency to have structures in place was underscored following the 2021 death of Majid Al Futtaim, who helmed a $16.5 billion shopping and entertainment empire widely seen as an anchor of Dubai’s economy.
The inheritance was left unresolved and a special judicial committee had to be appointed to oversee the transition — a relatively rare occurrence reserved for high-profile cases. Since then, the UAE has unveiled several steps to enhance the governance of family-run companies.
The UAE’s renewed push for succession planning also comes as a growing number of the world’s richest people — from hedge fund titan Ray Dalio to Nigerian billionaire Aliko Dangote — establish family offices in the country. Dubai’s financial hub alone hosts family offices overseeing $1.2 trillion in assets.
The United Arab Emirates is stepping up efforts to formalize succession planning among its wealthiest families, moves aimed at avoiding conflicts and economic disruption when control passes on to the next generation.
Officials from the country’s economy ministry recently met with heads of prominent business families to encourage them to establish formal structures around their wealth, according to people familiar with the matter.
The discussions centered around the potential creation of family offices to better manage generational transitions and a renewed effort to encourage local listings, the people said, declining to be identified as the information is confidential.
Family-owned businesses make up about 90% of private companies in the UAE, spanning sectors from supermarket chains to luxury car dealerships. While there are no official estimates, US-based Dash Venture Labs projects that the country’s richest families will control a combined $1 trillion by the end of next year.
“One-in-four estates in the Middle East looks set to transfer without predefined rules or instructions, creating a host of cost and time pressures,” according to a January report from the Dubai International Financial Centre’s Innovation Hub. About $49 billion could go unclaimed in the region before 2030, with another $123 billion held up for over six months in costly probate processes, the report estimated.
Additionally, the clans themselves have evolved in recent years, increasingly deploying capital into private equity and venture capital deals. Since such investments are typically riskier bets, the government is keen to have more formalized internal governance and processes, according to one of the people.
The UAE foreign ministry didn’t respond to requests for comment.
Traditionally, the country’s rulers relied on merchant families, granting them control over certain sectors in exchange for support. However, as the UAE economy starts to open up more, and as many conglomerates face their first generational transitions, that model is showing signs of strain.
The urgency to have structures in place was underscored following the 2021 death of Majid Al Futtaim, who helmed a $16.5 billion shopping and entertainment empire widely seen as an anchor of Dubai’s economy.
The inheritance was left unresolved and a special judicial committee had to be appointed to oversee the transition — a relatively rare occurrence reserved for high-profile cases. Since then, the UAE has unveiled several steps to enhance the governance of family-run companies.
The UAE’s renewed push for succession planning also comes as a growing number of the world’s richest people — from hedge fund titan Ray Dalio to Nigerian billionaire Aliko Dangote — establish family offices in the country. Dubai’s financial hub alone hosts family offices overseeing $1.2 trillion in assets.
Mubadala Energy takes stake in Kimmeridge gas, LNG projects in US | Reuters
Mubadala Energy takes stake in Kimmeridge gas, LNG projects in US | Reuters
Mubadala Energy, an arm of one of Abu Dhabi's sovereign wealth funds, signed a deal on Thursday with energy investor Kimmeridge that will give it stakes in gas assets in the United States, marking its entry into the market as part of its growth plans.
The deal to buy 24.1% of Kimmeridge's SoTex HoldCo will give Mubadala Energy access to Kimmeridge's unconventional gas production in Texas and to a liquefied natural gas export project in Louisiana, which is expected to have a final investment decision later this year and first offtake in 2029, Mubadala Energy said in a statement.
The Louisiana LNG project is developing a 9.3 million metric tons per annum liquefaction and export facility.
Mubadala Energy said U.S. LNG is expected to constitute a third of world supply of the superchilled fuel by 2050, citing Wood Mackenzie data. The investment gives it a foothold in that market, which it said would be supported by strong demand, including for artificial intelligence data centres.
Financial details of the deal were not disclosed.
"As our first major investment in the U.S. this transaction offers a significant platform for future growth in one of the world's most important energy hubs," Mansoor Mohamed Al Hamed, Mubadala Energy's managing director and chief executive, said in a statement.
"The investment also highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio."
Kimmeridge Texas Gas has net production of 500 million cubic feet equivalent per day, expected to grow to 1.5 billion cubic feet equivalent per day by 2031, Mubadala Energy said.
Mubadala Energy has assets in 11 countries, mainly in the Middle East and North Africa, Southeast Asia and Russia. Its portfolio, which is about 70% gas, has production of roughly 370,000 barrels of oil equivalent per day.
The deal comes as U.S. Energy Secretary Chris Wright begins a tour of Gulf Arab countries in the UAE.
Mubadala Energy, an arm of one of Abu Dhabi's sovereign wealth funds, signed a deal on Thursday with energy investor Kimmeridge that will give it stakes in gas assets in the United States, marking its entry into the market as part of its growth plans.
The deal to buy 24.1% of Kimmeridge's SoTex HoldCo will give Mubadala Energy access to Kimmeridge's unconventional gas production in Texas and to a liquefied natural gas export project in Louisiana, which is expected to have a final investment decision later this year and first offtake in 2029, Mubadala Energy said in a statement.
The Louisiana LNG project is developing a 9.3 million metric tons per annum liquefaction and export facility.
Mubadala Energy said U.S. LNG is expected to constitute a third of world supply of the superchilled fuel by 2050, citing Wood Mackenzie data. The investment gives it a foothold in that market, which it said would be supported by strong demand, including for artificial intelligence data centres.
Financial details of the deal were not disclosed.
"As our first major investment in the U.S. this transaction offers a significant platform for future growth in one of the world's most important energy hubs," Mansoor Mohamed Al Hamed, Mubadala Energy's managing director and chief executive, said in a statement.
"The investment also highlights our strong position to accelerate our expansion across the gas value chain and build on our strategic international portfolio."
Kimmeridge Texas Gas has net production of 500 million cubic feet equivalent per day, expected to grow to 1.5 billion cubic feet equivalent per day by 2031, Mubadala Energy said.
Mubadala Energy has assets in 11 countries, mainly in the Middle East and North Africa, Southeast Asia and Russia. Its portfolio, which is about 70% gas, has production of roughly 370,000 barrels of oil equivalent per day.
The deal comes as U.S. Energy Secretary Chris Wright begins a tour of Gulf Arab countries in the UAE.
#Saudi bourse outshines Gulf peers as Trump pauses tariffs | Reuters
Saudi bourse outshines Gulf peers as Trump pauses tariffs | Reuters
Stock markets in the Gulf ended higher on Thursday led by a strong surge in Saudi Arabia, a day after U.S. President Donald Trump's surprise move to temporarily suspend most of the newly imposed tariffs.
Trump announced a 90-day pause on many of his new duties. He, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% that took effect earlier on Wednesday.
Saudi Arabia's benchmark index (.TASI), opens new tab leapt 3.7% - its biggest intraday rise since March 2020 - boosted by a 3.2% rise in Al Rajhi Bank (1120.SE), opens new tab and a 5.5% jump in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Saudi Arabia has been hit by the minimum 10% tariff rate, which at present will remain in place.
Among other gainers, Saudi Aramco (2222.SE), opens new tab finished 2.6% higher. The oil giant has discovered 14 oil and natural gas fields and reservoirs in the kingdom's Eastern Region and the Empty Quarter, Reuters reported on Wednesday, citing state news agency SPA, containing small volumes.
The Saudi index - which saw its biggest intraday fall on Sunday in nearly five years - posted its worst weekly decline since October, despite the sharp rise.
Dubai's main share index (.DFMGI), opens new tab advanced 1.7%, led by a 2.1% gain in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 3.3% leap in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 1.3% higher.
The Qatari index (.QSI), opens new tab was up 1.9%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab climbing 3.2%.
A day earlier, the lender reported a net profit of 4.26 billion riyals ($1.17 billion) for the first quarter, exceeding analysts' expectations.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded 2.4% higher, as most of its constituents were in positive territory.
Egypt will offer stakes in military-owned companies through its sovereign wealth fund, the cabinet said on Wednesday, seeking to meet the requirements of the International Monetary Fund to expand the private sector's role in the economy.
Stock markets in the Gulf ended higher on Thursday led by a strong surge in Saudi Arabia, a day after U.S. President Donald Trump's surprise move to temporarily suspend most of the newly imposed tariffs.
Trump announced a 90-day pause on many of his new duties. He, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% that took effect earlier on Wednesday.
Saudi Arabia's benchmark index (.TASI), opens new tab leapt 3.7% - its biggest intraday rise since March 2020 - boosted by a 3.2% rise in Al Rajhi Bank (1120.SE), opens new tab and a 5.5% jump in the country's biggest lender Saudi National Bank (1180.SE), opens new tab.
Saudi Arabia has been hit by the minimum 10% tariff rate, which at present will remain in place.
Among other gainers, Saudi Aramco (2222.SE), opens new tab finished 2.6% higher. The oil giant has discovered 14 oil and natural gas fields and reservoirs in the kingdom's Eastern Region and the Empty Quarter, Reuters reported on Wednesday, citing state news agency SPA, containing small volumes.
The Saudi index - which saw its biggest intraday fall on Sunday in nearly five years - posted its worst weekly decline since October, despite the sharp rise.
Dubai's main share index (.DFMGI), opens new tab advanced 1.7%, led by a 2.1% gain in blue-chip developer Emaar Properties (EMAR.DU), opens new tab and a 3.3% leap in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab closed 1.3% higher.
The Qatari index (.QSI), opens new tab was up 1.9%, with the Gulf's biggest lender Qatar National Bank (QNBK.QA), opens new tab climbing 3.2%.
A day earlier, the lender reported a net profit of 4.26 billion riyals ($1.17 billion) for the first quarter, exceeding analysts' expectations.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab concluded 2.4% higher, as most of its constituents were in positive territory.
Egypt will offer stakes in military-owned companies through its sovereign wealth fund, the cabinet said on Wednesday, seeking to meet the requirements of the International Monetary Fund to expand the private sector's role in the economy.
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