Saudi SAB Invest Makes First Foray Into MENA Private Credit - Bloomberg
Saudi Awwal Bank’s investment arm plans to raise as much as one billion riyals ($266 million) for its first private credit fund focused on the Middle East and North Africa.
SAB Invest has already secured about $100 million from regional wealth managers and family offices and intends to raise the rest within the next year, according to Osama Alowedi, chief investment officer.
The Shariah-compliant fund will invest in debt financing including sukuk issued by small and medium-sized enterprises, venture debt and debt instruments for infrastructure projects, Alowedi said. It’s targeting an annual cash yield of 10% to 11%.
“We are now in the deployment process,” Alowedi said in an interview on Thursday. “At least 60% of the total fund will be allocated to opportunities within Saudi Arabia.”
The move by SAB Invest comes as Saudi Arabia seeks to further develop the financial sector to attract more foreign capital and drive investment into the kingdom’s economic overhaul. The Saudi sovereign wealth fund in March agreed to anchor new regional funds from Goldman Sachs Asset Management, with private credit a key focus.
The asset class is gaining traction across the region and now both competing and partnering with traditional lenders, according to PricewaterhouseCoopers LLP. It estimates the market in the broader Gulf and Egypt may expand by a compound annual growth rate of as much as 30% over the next five to six years.
SAB Invest, which manages more than $9 billion in assets, is an independent subsidiary of Saudi Awwal Bank. HSBC Holdings Plc is a top shareholder in the parent company.
Monday, 7 July 2025
Adnoc’s €12 Billion Covestro Deal Faces Likely In-Depth EU Probe - Bloomberg
Adnoc’s €12 Billion Covestro Deal Faces Likely In-Depth EU Probe - Bloomberg
Abu Dhabi National Oil Co.’s €11.7 billion ($13.7 billion) takeover of Covestro AG is facing the prospect of an in-depth European Union investigation, under powers that can curb influential foreign investment into the region.
EU regulators are preparing the probe under its powerful Foreign Subsidies Regulation by the end of the month, according to people familiar with the matter. Regulators are concerned that Adnoc’s heavy state backing could allow it to distort European markets and hamper fair competition across the bloc, the people said, adding that the EU’s decision was still in draft form and might change.
The European Commission currently has a deadline of July 28 to escalate the probe. The Brussels-based executive declined to comment. Representatives at Adnoc and Covestro didn’t immediately respond to requests for comment.
The escalation sends a strong signal that EU regulators are increasingly wary of large Middle Eastern-backed deals of European companies. The planned takeover gives Adnoc — the biggest oil producer in the United Arab Emirates — control over Covestro, a German company that supplies materials for some of the world’s most prominent phone and carmakers.
Last year, 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.
Under the EU’s foreign subsidies rules, the bloc has powers to vet subsidies that can distort European markets, and could issue fines, orders to suspend tenders or outright blocks of state takeovers.
Aside from acquisitions, the EU has wielded its tool 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.
Abu Dhabi National Oil Co.’s €11.7 billion ($13.7 billion) takeover of Covestro AG is facing the prospect of an in-depth European Union investigation, under powers that can curb influential foreign investment into the region.
EU regulators are preparing the probe under its powerful Foreign Subsidies Regulation by the end of the month, according to people familiar with the matter. Regulators are concerned that Adnoc’s heavy state backing could allow it to distort European markets and hamper fair competition across the bloc, the people said, adding that the EU’s decision was still in draft form and might change.
The European Commission currently has a deadline of July 28 to escalate the probe. The Brussels-based executive declined to comment. Representatives at Adnoc and Covestro didn’t immediately respond to requests for comment.
The escalation sends a strong signal that EU regulators are increasingly wary of large Middle Eastern-backed deals of European companies. The planned takeover gives Adnoc — the biggest oil producer in the United Arab Emirates — control over Covestro, a German company that supplies materials for some of the world’s most prominent phone and carmakers.
Last year, 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.
Under the EU’s foreign subsidies rules, the bloc has powers to vet subsidies that can distort European markets, and could issue fines, orders to suspend tenders or outright blocks of state takeovers.
Aside from acquisitions, the EU has wielded its tool 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 Stc Backs Debt Investment Fintech Tarmeez Capital - Bloomberg
Saudi Stc Backs Debt Investment Fintech Tarmeez Capital - Bloomberg
Stc Group’s venture capital arm has invested in Tarmeez Capital, a Saudi debt investment platform planning a push into private credit.
Tali Ventures took a minority stake in the Riyadh-based firm, Tarmeez Chief Executive Officer Nasser Alsaadoun said, without disclosing details on the deal. Tarmeez expects to get its asset management license in Saudi Arabia later this year, allowing it to start originating and managing credit to private companies, he added.
It aims to then raise as much as 1 billion riyals ($267 million) for its first private credit fund within two years. Tarmeez will also consider an initial public offering in the next three years, Alsaadoun said in an interview.
Tarmeez currently facilitates private debt transactions between companies and investors, mostly handling Islamic sukuk. Founded in 2022, the platform has arranged about 2.3 billion riyals in financing to date and aims to scale that to 16 billion in the next two years. It serves both institutional and retail investors.
The investment in Tarmeez underscores a broader push by Saudi telecom giant stc to diversify its businesses into areas including financial services. It launched its venture arm last year to capture growing momentum around startups and in early 2025 started digital lender STC Bank.
Stc’s backing of a company planning to expand into private credit comes as Saudi Awwal Bank’s investment banking unit looks to raise 1 billion riyals for a new fund focused on the Middle East and North Africa.
Tali Ventures has a total committed fund size of $300 million, with a focus on AI and financial technology, among other things.
Stc Group’s venture capital arm has invested in Tarmeez Capital, a Saudi debt investment platform planning a push into private credit.
Tali Ventures took a minority stake in the Riyadh-based firm, Tarmeez Chief Executive Officer Nasser Alsaadoun said, without disclosing details on the deal. Tarmeez expects to get its asset management license in Saudi Arabia later this year, allowing it to start originating and managing credit to private companies, he added.
It aims to then raise as much as 1 billion riyals ($267 million) for its first private credit fund within two years. Tarmeez will also consider an initial public offering in the next three years, Alsaadoun said in an interview.
Tarmeez currently facilitates private debt transactions between companies and investors, mostly handling Islamic sukuk. Founded in 2022, the platform has arranged about 2.3 billion riyals in financing to date and aims to scale that to 16 billion in the next two years. It serves both institutional and retail investors.
The investment in Tarmeez underscores a broader push by Saudi telecom giant stc to diversify its businesses into areas including financial services. It launched its venture arm last year to capture growing momentum around startups and in early 2025 started digital lender STC Bank.
Stc’s backing of a company planning to expand into private credit comes as Saudi Awwal Bank’s investment banking unit looks to raise 1 billion riyals for a new fund focused on the Middle East and North Africa.
Tali Ventures has a total committed fund size of $300 million, with a focus on AI and financial technology, among other things.
#UAE: #AbuDhabi’s Financial Hub ADGM Is Full, Yet Empty Desks Are Aplenty - Bloomberg
UAE: Abu Dhabi’s Financial Hub ADGM Is Full, Yet Empty Desks Are Aplenty - Bloomberg
Office occupancy rates in Abu Dhabi’s financial hub have hit 97%, reflecting a city in the midst of a boom. But step inside some of the gleaming towers on Al Maryah Island, and you’ll still find quiet hallways and rows of empty desks.
The contradiction stems from the emirate’s push to compete with business hubs in neighboring Dubai and globally. As part of that effort, firms were encouraged to establish a local presence and relocate more staff. The proximity to Abu Dhabi’s influential wealth funds, which control nearly $2 trillion, added to the appeal. The campaign has drawn top banks and private markets firms, earning ADGM, the financial center, a reputation as the Gulf’s “hedge fund island.”
Under ADGM rules, firms must maintain a physical office and employ at least one United Arab Emirates-based staffer, even if most of the team is elsewhere. Some companies comply with the bare minimum: a single desk, a local hire and little day-to-day use of the space.
The result is a striking imbalance. While some firms occupy expansive floors and are packed with growing teams, others maintain a token presence — leaving parts of even fully leased buildings looking half-empty.
Office space is becoming a pressing issue as some of ADGM’s more active firms struggle to secure adequate facilities. When they do, rents can reach 2,900 dirhams ($790) per square meter annually, up from around 2,600 dirhams last year, according to Savills.
The ADGM monitors firms’ local presence through on-site visits and internal reporting, but it stops short of mandating how many staff must physically work in the office, a spokesperson said via email.
Staffing levels are left to the discretion of each firm, depending on size and scope of operations, and ADGM allows for flexible and remote work practices. “Firms are securing office space as part of their long-term plans, reflecting a seriousness to base their operations in Abu Dhabi,” the spokesperson said.
Across the hub’s four main towers — Al Khatem, Al Sila, Al Sarab and Al Maqam — some offices show limited activity, while others bustle with meetings and foot traffic. The ADGM Authorities Building, home to the regulator itself, sees steady day-to-day attendance. Across the road at Al Maryah Tower, which houses Lunate — Abu Dhabi’s $110 billion alternative investment manager — floors are busy and demand for parking spaces is rising.
Bhaskar Dasgupta, chairman of the Middle East and India boards at Apex Group, said firms across ADGM are scrambling for space as teams expand, reconfiguring layouts, subleasing from other companies and turning to co-working hubs for temporary desks. At Apex, “we’ve been retrofitting our office to fit more people in,” he said. “We hope to move into a bigger office next year, but it’s competitive to secure new office space on Al Maryah Island.”
Those challenges come as staffing is up 17% year-on-year, bringing the workforce to 29,000. As of the first quarter of 2025, more than 2,700 entities were registered in ADGM including 144 asset and fund managers. That momentum reflects a broader boom across the capital, where the population grew 7.5% last year to 4.14 million.
Still, in a sign the emirate wants employees to live and work locally, authorities in February reinstated a rule requiring foreign nationals to have an Abu Dhabi-registered tenancy contract to apply for or renew dependent visas.
Abu Dhabi is racing to meet rising demand. Construction is underway on a two-tower complex that will add 98,000 square meters of premium office space on Al Maryah Island. That follows a 2023 decision to extend ADGM’s jurisdiction to neighboring Al Reem Island, expanding its footprint 10-fold.
The emirate is also adding flexibility. Hub71, a government-backed startup campus, offers early-stage firms flexi-desk options that meet ADGM’s physical presence rules without requiring a full office lease. “As well as traditional office space, ADGM also offers flexible working spaces for smaller firms across 15 business centres on Al Maryah Island and at Hub71,” the hub’s spokesperson said.
Abu Dhabi isn’t alone. With occupancy rates in its financial hub reaching 98%, Dubai is building three new towers in its financial hub and retrofitting another space for hedge fund startups.
The Dubai International Financial Centre has responded to mounting space constraints by introducing a more flexible regulatory regime, according to Devika Raveendran, a lawyer and founder of family office advisory firm DR Partners. “There’s now the DIFC Funds Centre that allows firms to opt for a flexi-desk rather than a full-fledged office.”
Meanwhile, Saudi Arabia’s main finance district is looking to raise about $700 million from equity investors to fund further development of its Riyadh real estate complex, Bloomberg News has reported.
Office occupancy rates in Abu Dhabi’s financial hub have hit 97%, reflecting a city in the midst of a boom. But step inside some of the gleaming towers on Al Maryah Island, and you’ll still find quiet hallways and rows of empty desks.
The contradiction stems from the emirate’s push to compete with business hubs in neighboring Dubai and globally. As part of that effort, firms were encouraged to establish a local presence and relocate more staff. The proximity to Abu Dhabi’s influential wealth funds, which control nearly $2 trillion, added to the appeal. The campaign has drawn top banks and private markets firms, earning ADGM, the financial center, a reputation as the Gulf’s “hedge fund island.”
Under ADGM rules, firms must maintain a physical office and employ at least one United Arab Emirates-based staffer, even if most of the team is elsewhere. Some companies comply with the bare minimum: a single desk, a local hire and little day-to-day use of the space.
The result is a striking imbalance. While some firms occupy expansive floors and are packed with growing teams, others maintain a token presence — leaving parts of even fully leased buildings looking half-empty.
Office space is becoming a pressing issue as some of ADGM’s more active firms struggle to secure adequate facilities. When they do, rents can reach 2,900 dirhams ($790) per square meter annually, up from around 2,600 dirhams last year, according to Savills.
The ADGM monitors firms’ local presence through on-site visits and internal reporting, but it stops short of mandating how many staff must physically work in the office, a spokesperson said via email.
Staffing levels are left to the discretion of each firm, depending on size and scope of operations, and ADGM allows for flexible and remote work practices. “Firms are securing office space as part of their long-term plans, reflecting a seriousness to base their operations in Abu Dhabi,” the spokesperson said.
Across the hub’s four main towers — Al Khatem, Al Sila, Al Sarab and Al Maqam — some offices show limited activity, while others bustle with meetings and foot traffic. The ADGM Authorities Building, home to the regulator itself, sees steady day-to-day attendance. Across the road at Al Maryah Tower, which houses Lunate — Abu Dhabi’s $110 billion alternative investment manager — floors are busy and demand for parking spaces is rising.
Bhaskar Dasgupta, chairman of the Middle East and India boards at Apex Group, said firms across ADGM are scrambling for space as teams expand, reconfiguring layouts, subleasing from other companies and turning to co-working hubs for temporary desks. At Apex, “we’ve been retrofitting our office to fit more people in,” he said. “We hope to move into a bigger office next year, but it’s competitive to secure new office space on Al Maryah Island.”
Those challenges come as staffing is up 17% year-on-year, bringing the workforce to 29,000. As of the first quarter of 2025, more than 2,700 entities were registered in ADGM including 144 asset and fund managers. That momentum reflects a broader boom across the capital, where the population grew 7.5% last year to 4.14 million.
Still, in a sign the emirate wants employees to live and work locally, authorities in February reinstated a rule requiring foreign nationals to have an Abu Dhabi-registered tenancy contract to apply for or renew dependent visas.
Abu Dhabi is racing to meet rising demand. Construction is underway on a two-tower complex that will add 98,000 square meters of premium office space on Al Maryah Island. That follows a 2023 decision to extend ADGM’s jurisdiction to neighboring Al Reem Island, expanding its footprint 10-fold.
The emirate is also adding flexibility. Hub71, a government-backed startup campus, offers early-stage firms flexi-desk options that meet ADGM’s physical presence rules without requiring a full office lease. “As well as traditional office space, ADGM also offers flexible working spaces for smaller firms across 15 business centres on Al Maryah Island and at Hub71,” the hub’s spokesperson said.
Abu Dhabi isn’t alone. With occupancy rates in its financial hub reaching 98%, Dubai is building three new towers in its financial hub and retrofitting another space for hedge fund startups.
The Dubai International Financial Centre has responded to mounting space constraints by introducing a more flexible regulatory regime, according to Devika Raveendran, a lawyer and founder of family office advisory firm DR Partners. “There’s now the DIFC Funds Centre that allows firms to opt for a flexi-desk rather than a full-fledged office.”
Meanwhile, Saudi Arabia’s main finance district is looking to raise about $700 million from equity investors to fund further development of its Riyadh real estate complex, Bloomberg News has reported.
Most Gulf markets gain on US trade progress | Reuters
Most Gulf markets gain on US trade progress | Reuters
Most Gulf equities ended higher on Monday as U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries.
The White House is close to finalising several trade agreements in the coming days and will notify other countries of higher tariffs by July 9, with the new rates effective August 1, Trump said on Sunday.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.3%, helped by a 0.8% gain in oil giant Saudi Aramco (2222.SE), opens new tab.
Oil shrugged off the impact of OPEC+ hiking output more than expected for August as well as concerns about the potential impact of U.S. tariffs, with prices mostly reversing early losses as a tight physical market lent support.
In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.
The uncertainty surrounding oil prices, especially with OPEC+ gradually increasing production, remains a key risk for the Saudi market, said Joseph Dahrieh, managing principal at Tickmill.
"However, the market could find support as Saudi Arabia expands its share in the oil market," he said.
Dubai's benchmark index (.DFMGI), opens new tab gained 0.9%, hitting a 17-year high, driven by financial shares. Emirates NBD (ENBD.DU), opens new tab jumped 2.3%, while Dubai Islamic Bank (DISB.DU), opens new tab rose 1%.
According to Dahrieh, the Dubai stock market's strong fundamentals suggest potential for further growth, while U.S. trade policy risks could continue to weigh on sentiment.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%, with Burjeel Holdings (BURJEEL.AD), opens new tab surging 14.7% after announcing expansion into Saudi Arabia.
Meanwhile, Trump announced plans to impose an additional 10% tariff on countries aligning with the "anti-American policies" of the BRICS bloc, which includes the United Arab Emirates. While Saudi Arabia attended a BRICS meeting in April, it has not formally joined the group.
Qatar's benchmark index (.QSI), opens new tab added 0.5%, helped by a 1.5% increase in Qatar International Islamic Bank (QIIB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.4% higher, with electronic payments provider Fawry (FWRY.CA), opens new tab climbing 2.4%.
Most Gulf equities ended higher on Monday as U.S. President Donald Trump signalled progress on multiple trade agreements and announced extended tariff reprieves for several countries.
The White House is close to finalising several trade agreements in the coming days and will notify other countries of higher tariffs by July 9, with the new rates effective August 1, Trump said on Sunday.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.3%, helped by a 0.8% gain in oil giant Saudi Aramco (2222.SE), opens new tab.
Oil shrugged off the impact of OPEC+ hiking output more than expected for August as well as concerns about the potential impact of U.S. tariffs, with prices mostly reversing early losses as a tight physical market lent support.
In a show of confidence in oil demand, Saudi Arabia on Sunday raised the August price for its flagship Arab Light crude to a four-month high for Asia.
The uncertainty surrounding oil prices, especially with OPEC+ gradually increasing production, remains a key risk for the Saudi market, said Joseph Dahrieh, managing principal at Tickmill.
"However, the market could find support as Saudi Arabia expands its share in the oil market," he said.
Dubai's benchmark index (.DFMGI), opens new tab gained 0.9%, hitting a 17-year high, driven by financial shares. Emirates NBD (ENBD.DU), opens new tab jumped 2.3%, while Dubai Islamic Bank (DISB.DU), opens new tab rose 1%.
According to Dahrieh, the Dubai stock market's strong fundamentals suggest potential for further growth, while U.S. trade policy risks could continue to weigh on sentiment.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.3%, with Burjeel Holdings (BURJEEL.AD), opens new tab surging 14.7% after announcing expansion into Saudi Arabia.
Meanwhile, Trump announced plans to impose an additional 10% tariff on countries aligning with the "anti-American policies" of the BRICS bloc, which includes the United Arab Emirates. While Saudi Arabia attended a BRICS meeting in April, it has not formally joined the group.
Qatar's benchmark index (.QSI), opens new tab added 0.5%, helped by a 1.5% increase in Qatar International Islamic Bank (QIIB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab finished 0.4% higher, with electronic payments provider Fawry (FWRY.CA), opens new tab climbing 2.4%.
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