Bravo Partners With Middle East Investor on US Property Loans - Bloomberg

Bravo Partners With Middle East Investor on US Property Loans - Bloomberg

Bravo Property Trust, a real estate credit investment platform, signed an agreement with a Middle Eastern investment manager to finance $400 million of property loans in the US.

Bravo signed an agreement with a Middle Eastern asset manager that oversees sovereign wealth fund capital, according to a statement that didn’t name the investor. The capital will be deployed across whole loan bridge, construction and stabilized apartment and healthcare-property deals.

“This partnership reflects the increasing demand from sovereign and institutional capital for direct access to high-quality, asset-backed credit in the U.S. housing market,” Bravo’s Chief Executive Officer Aaron Krawitz said in the statement.

The investment will focus on properties that have a clear path for a takeout by the US Department of Housing and Urban Development or another agency. Since the firm’s inception, Bravo and its affiliates have originated and financed more than $1.6 billion in bridge and HUD-focused loans.

Investors have been drawn to opportunities across the US real estate credit market, as borrowing rates remain high. Many banks also have pulled back, creating more opportunities for other lenders willing to step in. And firms have been bullish on financing apartments while a housing shortage in the US threatens to keep rents relatively high.

#Dubai Ruler’s $584 Million REIT IPO Surges In Debut - Bloomberg

Dubai Ruler’s $584 Million REIT IPO Surges In Debut - Bloomberg

Dubai Holding’s $584 million residential real estate investment trust surged in its trading debut, as the city’s property market boom continues to lure investors.

Dubai Residential REIT closed nearly 14% higher at 1.25 dirhams per unit on Wednesday, after rising as much as 19% from the offer price of 1.10 dirhams.

The investment firm controlled by the emirate’s ruler had demand for all units within minutes of opening books and later increased the size of the offer from $487 million. The IPO was marketed as a rare opportunity to gain exposure to Dubai’s fast-growing residential real estate sector.

Dubai’s property market – both residential and commercial – has been buoyed by an influx of new residents since the pandemic, amid looser visa regulations and low taxes. Property prices have risen as much as 70% over the past four years.

The overall demand was “very healthy,” said Pradyut Pratap, co-head of investment banking for the Middle East and North Africa region at Morgan Stanley, one of the deal’s global coordinators. “A number of high-quality international names joined the book — including blue-chip hedge funds, long-only funds and real estate specialists.”

Dubai Holding is also planning to list a separate property portfolio which includes malls and other commercial assets to capitalize on this momentum.

A host of firms in the United Arab Emirates are seeking to take advantage of the supportive market, with two contractors lining up listings and two online property portals courting equity investors.

Dubai Residential REIT’s listing is the city’s first IPO of the year, and furthers the government’s privatization drive, which has seen it take public a utility, a parking operator and a taxi company.

Analysts said the deal could also help REITs gain traction in the UAE, where the asset class has had a checkered history. But Dubai’s real estate rally is increasingly pricing out buyers, sparking a renewed interest in REITs. Some investors are opting for fractional ownership apps, with entry points as low as $136.

In addition to Morgan Stanley, Emirates NBD Capital and Citigroup Inc. acted as joint global coordinators on the deal. Abu Dhabi Commercial Bank, Arqaam Capital and First Abu Dhabi Bank acted as joint bookrunners.

#Saudi Stocks Set to Be World’s Worst in May After Oil-Price Drop - Bloomberg

Saudi Stocks Set to Be World’s Worst in May After Oil-Price Drop - Bloomberg

Saudi Arabia’s sliding stocks are on course to be the worst performers globally this month as falling oil prices prompt concerns of slower spending on mega projects in the kingdom.

The Tadawul All Share Index has slumped 6.4% in May as of Tuesday’s close, the most among 92 equity benchmarks tracked by Bloomberg. The Saudi gauge is also dropping for a fourth month, the longest losing streak since 2014. That’s a sharp divergence with the broader emerging market index, which is heading for its best month since September and the longest sequence of gains for almost a year.

Weakness in oil is at the heart of faltering sentiment toward Saudi stocks. Crude prices sank to a four-year low in early April, with the outlook clouded by trade tensions and increasing supply from OPEC+ members. That adds to pressure on Saudi finances after the kingdom reported the widest budget deficit since late 2021 in the first quarter.

“There are fears that the fall in oil revenues could affect the projects market,” said Junaid Ansari at Kamco Invest in Kuwait City, referring to plans for transformational development where the state is the key investor. Ansari sees this market view persisting, given expectations that oil prices will remain subdued.

The weakness has been broad-based, with only 23 out of 253 Tadawul members trading in the green so far in May, according to data compiled by Bloomberg. Al Rajhi Bank, the kingdom’s largest lender by market capitalization, and utility ACWA Power Co. have been the biggest drag by index points.

Brent oil is trading around $65 a barrel, well short of levels Saudi Arabia needs to cover its outlays. First-quarter data showed the government needed crude at $96 to balance its budget, rising to $113 when the sovereign wealth fund’s domestic spending plans are included, according to Bloomberg Economics’ Ziad Daoud. ‎Those thresholds are both at the highest since at least 2016, when Saudi Arabia launched its Vision 2030.

Dominic Bokor-Ingram, a fund manager at Fiera Capital, said the timing on some “aspirational mega projects” could be pushed back by financial constraints, a near-term challenge to his bullish view overall on the Tadawul. The breakeven level for oil required by the Saudi economy is higher than regional peers, he said.

“Oil prices are a headwind for them, and force the country to make capital allocation decisions that they wouldn’t need to if oil prices were higher at around $100,” according to Bokor-Ingram.

The Organization of the Petroleum Exporting Countries and its partners will gather online on Wednesday to review production quotas for this year and next. Eight key members will decide at the weekend whether to bolster output again in July.

Goldman Sachs Group Inc. warned last month that Saudi Arabia’s budget deficit may swell to $67 billion this year. That may force the government to borrow more and cut back on economic transformation plans.

Still Bokor-Ingram bases his more optimistic long-term view on the Saudi market on expectations that the Vision 2030 plan is still intact and will keep luring investors.

Given the potential for transformation in the economy, “it’s too much of a risk to ignore the Saudi market for an emerging-market investor,” he said.

#UAE minister says trade talks with EU not a hurdle for deal between GCC and bloc | Reuters

UAE minister says trade talks with EU not a hurdle for deal between GCC and bloc | Reuters

The United Arab Emirates does not see bilateral talks for a free trade deal with the European Union as an obstacle to a similar agreement between the 27-nation bloc and the Gulf Cooperation Council, the UAE's trade minister said on Wednesday.

"We're not seeing this as a hurdle, we are seeing it's a flow which is going to be starting from here and moving to the GCC...usually the blocs are much slower than the bilateral, and that's why we're starting here, so we can move quickly," Thani Al Zeyoudi told reporters.

He said the UAE was keen to conclude a bilateral deal with the EU "in a very short period, three to six months from now."

He was speaking in Dubai beside the EU trade commissioner Maros Sefcovic as the EU and the UAE officially launched talks.

The UAE, an influential, oil-rich Middle East state, has long advocated deeper EU involvement in the Gulf region, with the GCC the EU's sixth-biggest export market.

Since 2021, the UAE has initiated a raft of bilateral trade, investment and cooperation deals - called Comprehensive Economic Partnership Agreements - to reduce its dependence on fossil fuels and bolster long-term growth prospects.

The EU and the GCC started trade talks 35 years ago but talks were formally suspended in 2008.

Zeyoudi said bilateral talks that the UAE held with New Zealand and South Korea in the past had led to trade agreements with the GCC.

He said the UAE also had the opportunity to start bilateral talks with the UK and that China had also approached the Gulf country for bilateral discussions, but said UAE would prioritise GCC talks.

Gulf stocks settle higher as oil prices rise | Reuters

Gulf stocks settle higher as oil prices rise | Reuters

Most stock markets in the Gulf settled higher on Wednesday, with Saudi Arabia's benchmark index (.TASI), opens new tab up 1.24% as oil prices rose and market sentiment improved after U.S. President Trump agreed to delay tariffs on EU products.

Oil prices - a catalyst for stock markets in the Gulf - rose more than 1% with Brent crude futures up 1.5%, to $65.02 a barrel by 1300 GMT.

Helping lift prices was news that the Trump administration would allow Chevron (CVX.N), opens new tab to keep its assets in Venezuela but not export oil or expand activities.

Trump also said on Tuesday that the EU's move to set up trade talks was "positive", helping lift sentiment following his threat to impose 50% tariffs on goods from the bloc.

Gains remained limited, however, as markets await an upcoming decision from OPEC+ at the end of the week on an anticipated increase in oil output.

In Saudi Arabia, apparel and accessories retailer Al Hokair (4240.SE), opens new tab was the top gainer on the index, finishing up 5.38%.

"The market could find support as it continues to see strong interest in Saudi IPOs, including Flynas. Successful IPOs could help attract local and international capital to the stock market," said Joseph Dahrieh, Managing Principal at Tickmill.

Dubai's main share index (.DFMGI), opens new tab closed up 0.40% with National General Insurance up 9.95%. The index recorded its third consecutive session of gains.

The Abu Dhabi's benchmark index (.FTFADGI), opens new tab settled up 0.72%, its highest since March 18, 2024. First Abu Dhabi Bank (FAB.AD), opens new tab, the United Arab Emirates' biggest lender, closed up 2.85%.

Analyst Joseph Dahrieh said that the stock market climbed after a period of stagnation, led by gains in the financial and energy sectors.

Qatar's benchmark stock index (.QSI), opens new tab fell 1.02%, with Qatar Islamic Bank (QIIB.QA), opens new tab down 2.36%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished up 0.30%. Real-estate company Madinet Masr (MASR.CA), opens new tab was the top gainer on the index, up 3.33%.

Egypt's central bank said last week the economy grew by 4.3% in the October-December quarter and projected it would grow by 5.0% in January-March.

#SaudiArabia seeks to use financial might to muscle into global AI industry

Saudi Arabia seeks to use financial might to muscle into global AI industry

Saudi Arabia’s new state-owned artificial intelligence company will seek investment from top US tech companies and will launch a $10bn venture capital fund as it leads the kingdom’s effort to become a global AI hub. 

Tareq Amin, chief executive of Humain, told the Financial Times he was in talks with American groups including OpenAI, Elon Musk’s xAI and Andreessen Horowitz about its ambitious plans. 

He said it was seeking a US tech group to become an equity partner in Humain’s data centre business, which aims to become one of the world’s biggest AI infrastructure providers, but declined to say which American companies were interested in such a deal. 

“We are in discussions with all of them,” Amin said in his first interview since Humain’s launch this month. “Some of them, which you will hear about very soon, are massive names in the data centre segment.” 

The 52-year-old said its VC fund, Humain Ventures, would launch this summer with an initial $10bn to spend in start-ups in the US, Europe and parts of Asia. 

Humain is seeking to use Saudi Arabia’s financial might to gain a central role in almost every aspect of the burgeoning AI industry — from investing, infrastructure and chip design. 

That sprawling strategy is unmatched outside a handful of US and Chinese Big Tech companies, which have had years, if not decades, to build their businesses and technical expertise. 

US tech firms increasingly view Gulf states and their powerful sovereign wealth funds as critical sources of investment, with American tech executives in talks with regional officials about investments and raising capital. 

Humain, which is owned and funded by the $940bn Public Investment Fund, was unveiled the day before US President Donald Trump visited Riyadh, with a host of top tech executives in tow, including Musk, OpenAI’s Sam Altman and Nvidia’s chief executive Jensen Huang. 

Saudi Crown Prince Mohammed bin Salman, the kingdom’s de facto leader, chairs Humain and has tasked it with driving Riyadh’s multibillion-dollar ambitions. The AI company had already inked deals worth $23bn with US tech groups, including Nvidia, AMD, Amazon Web Services and Qualcomm since its launch, said Amin. 

Humain has a target of establishing 1.9 gigawatt of data centre capacity by 2030, rising to 6.6GW four years later — which would be among the largest global AI infrastructure projects. Amin said that, at current market rates, the project would cost $77bn. 

The chief executive said Humain’s goal is, by 2030, to be processing 7 per cent of global “training”, the development of AI models and “inferencing”, the model’s responses to user requests. 

“The world is hungry for capacity,” said Amin, a Jordanian-American who was previously chief executive of Aramco Digital, the tech arm of the Saudi state oil company. “There are two paths you could take: you take it slow and we are definitely not taking it slow, or you go fast. 

“Whoever reaches the end line first, I think, is going to secure a good chunk of the market share.” 

The establishment of Humain underscores Prince Mohammed’s ambitions in the sector as energy rich Gulf states vie to be regional AI leaders, use technology to hasten the diversification of oil-dependent economies and become “data exporters”. 

Like the neighbouring United Arab Emirates, Saudi Arabia has decided to focus on working with American tech groups as it seeks to reassure US policymakers concerned about technology transfer to China, the region’s biggest trading partner. 

Amin said Humain understands that its “equity partners bring more than just capital”. 

“The importance of the US ecosystem is very critical,” he added. “If you go and look at our suppliers, you’ll discover that we were deliberate on the partnerships and the choices that we have picked . . . we did not want to make mistakes.” 

The first phase of its plan to build huge data centre parks will begin with a 50MW plant utilising 18,000 Nvidia chips it hopes to bring online next year, with a plan to expand that to 500MW in phases, which would require about 180,000 chips, Amin said. 

Musk’s “Colossus” AI cluster for xAI was built utilising 100,000 Nvidia GPUs. Meanwhile, the first US “Stargate” data centre being funded by OpenAI, Japan’s SoftBank and Oracle is expected to have 400,000 Nvidia’s GB200 chips — the latest “Superchip” for training and running AI systems. 

Humain has also signed a $10bn joint venture with AMD to supply 500MW of capacity over five years, and is investing $2bn with Qualcomm to develop data centres and chip design capabilities in the kingdom. 

Under the latter deal, Qualcomm will set up a chipset design centre in Riyadh that employs 500 engineers. Humain has no plans to move into chip manufacturing, however. 

Amin said Humain would begin the procurement process for the chips from the US tech firms in the next 30 days, adding that he was optimistic that the sales would be supported by the Trump administration. 

In recent weeks, Washington announced it was scrapping a Biden-era rule that limited the sale of AI chips to countries like Saudi Arabia, but added it would introduce a different rule as a replacement. 

Addressing concerns about privacy and security at data centres, Amin said Humain would allow “real-time inventory” or allowing customers to instantly audit how information was being used and processed. 

In addition, Riyadh was expected to pass legislation that would, in effect, mean data centres would be regulated under the laws of the country of origin of the tenant AI company, he said. It is unclear if this will satisfy strict “data sovereignty” rules, such as in the EU, which prevent the holding of sensitive information in overseas servers. 

To lure data centres to the kingdom, Riyadh is offering subsidies on electricity prices, which are already among the lowest in the world. Humain would provide the infrastructure for joint ventures. 

It is a model that has been applied for Groq, which has been building what it describes as the world’s largest inferencing data centre in the kingdom. It began as a joint venture with Aramco Digital, overseen by Amin, but will probably move to Humain as Riyadh looks to consolidate its prime AI assets within the new entity. 

In February, Riyadh agreed to a $1.5bn expansion of the project in the country’s Eastern Province, where Humain has secured a lease for 2.3 square miles of land at an industrial city. The site could host 10 200MW plants, Amin said, adding that Humain planned to develop a park three times the size in Riyadh. 

The plans come at a time when the government and the PIF are grappling with lower oil prices and the vast scale of their financial commitments with multiple megaprojects under way. 

But AI is considered one of the areas where the kingdom will look to prioritise. Asked whether a period of lower oil prices would impact Humain’s spending plans, Amin said: “The question we should ask: can you afford as a country to miss the opportunity?”