Saudi Arabia Government Seeks $10 Billion in Rare Loan Deal - Bloomberg
Saudi Arabia is in talks to raise as much as $10 billion in a rare loan deal, marking the latest step in the kingdom’s efforts to line up financing for Crown Prince Mohammed bin Salman’s diversification plan.
The Saudi Ministry of Finance is speaking with banks including large Wall Street lenders for the loan, according to people familiar with the matter, who asked not to be identified discussing private information.
No final decisions have been made. The kingdom could ultimately decide not to proceed with the deal if it doesn’t get the right price or if market conditions are unfavorable, the people said.
Saudi Arabia has so far primarily focused on raising funds through bond sales. The kingdom is now one of the most active sovereign issuers in emerging markets, raising nearly $20 billion in debt this year, just shy of the full-year record set in 2017.
Saudi sovereign loans are relatively rare, though the kingdom has done at least two large loan deals worth $10 billion or more since 2016, according to data compiled by Bloomberg.
The finance ministry didn’t respond to a request for comment. Officials have previously said they are looking to explore alternative financing options as part of plans to diversify the kingdom’s sources of funding.
Saudi Arabia last week projected that its 2025 budget would be $65 billion for this year, more than double the previous forecast, as the government overshoots on spending and draws in less revenue.
Before the revision, Riyadh had expected to borrow about $37 billion this year, with most of that raised through capital markets and about 30% via private channels.
A larger share of future financing is likely to come from non-market sources, Fitch Ratings said in a report Friday, citing Saudi Arabia’s large borrowing needs and the risk that increased debt issuance could drive up costs.
Despite strains stemming from weak oil prices and heavy domestic spending, key entities based in the kingdom have pushed on with big-ticket deals. The Public Investment Fund was the largest contributor to the $36 billion in equity being put in to finance last month’s blockbuster buyout of Electronic Arts Inc.
Wednesday, 8 October 2025
#Dubai property rally closes in on pre-2008 record #UAE
Dubai property rally closes in on pre-2008 record
Dubai’s property market is racing towards a record bull run, with the Middle Eastern commercial hub’s buoyant economy and swelling population fuelling the longest price rally since the eve of the 2008 financial crash.
Dubai’s property market is racing towards a record bull run, with the Middle Eastern commercial hub’s buoyant economy and swelling population fuelling the longest price rally since the eve of the 2008 financial crash.
Properties in Dubai sold for an average of Dh1,750 ($476.50) per square foot last month, according to data provider Reidin, a surge of 75 per cent from February 2021.
Some question how long the meteoric price rises can continue in a city that has experienced two boom-bust cycles since its property market opened up in 2003.
The 50-month rally is hurtling towards the 57-month record that ended with the global financial crisis, according to Reidin. Dubai at the time suffered a real estate crash that exposed unsustainable debts at some state-owned companies and required a bailout from Dubai’s oil-rich neighbour Abu Dhabi.
The soaring property values are underpinned by Dubai’s robust economy, with the city capitalising on its decision to open up to visitors during the pandemic while other hubs still restricted travel. The UAE also liberalised its visa system in 2022, encouraging more expats to see the city as home for a longer period.
Newcomers have included everyone from millionaires trying to avoid tax rises to white-collar workers hoping to cash in on the oil-rich Gulf’s growing markets, and Ukrainians and Russians fleeing the impact of Moscow’s invasion of Ukraine.
That influx has caused Dubai’s population to swell nearly half a million since the beginning of 2020, according to Dubai Statistics Centre estimates, hitting 3.8mn this year.
That means Dubai’s villas and flats — popular with speculators in the past — are now in demand from people wanting to settle. “They’re building a lot of apartments and not building enough houses,” said Barnaby Compton, a Dubai real estate agent. “We have an ageing population and we have more families moving in with kids.”
Malek, a Dubai-based banker who asked for his real name not to be used, bought and renovated a spacious villa in the Arabian Ranches suburb last year.
He had intended to move in, but demand was so high that selling became irresistible. Realising he could make between a “60 [and] 80 per cent annual return” by selling the property, Malek said he would put his house on the market this week.
“There is a strong appetite,” he said, adding that he expected the house to go for between Dh1.5mn and Dh1.9mn and had already bought another property. “The upside is too attractive not to sell.”
Property values at the top end of the market have climbed fastest. Prices in gated communities, made of villas and often set around golf clubs, “increased over 100 per cent in the last four years”, said Alec Smith, head of sales and leasing at Savills in Dubai.
Smith and others argue that price rises will be sustained by Dubai’s growing population, with Dubai’s Urban Master Plan assuming there will be 4.6mn people living in the emirate by 2030.
The boom has given a new lease of life to Dubai’s property developers, who had been struggling with years of falling or stagnant prices before the rally.
Dubai government-backed Emaar, the emirate’s biggest developer, posted property sales of Dh65.4bn ($17.8bn) for 2024 — its highest ever — with profit before tax of Dh10bn, up from Dh8.4bn the previous year. Smaller property players have also reported strong results.
Developers are raising money to fuel land purchases and massive construction. This includes tapping Islamic bonds or sukuk, with the volume of issuance in 2024 by real estate or property companies in the UAE jumping 25 per cent year on year to $2.17bn, according to Dealogic.
According to Knight Frank, 300,000 homes are slated to be built in Dubai between late 2024 and 2029, with about 50,000 units being ready to move into annually — higher than previous average deliveries of 36,000 homes per year.
The city’s skyline is now dotted with cranes, while construction sites throw up dust everywhere, from the luxury downtown Business Bay district to the more affordable suburb of Jumeirah Village Circle.
Worsening traffic, a product of the swelling population, has become a source of pain for longtime residents, with Dubai’s transport authority and the ruler’s investment group Dubai Holding last week signing an Dh6bn deal to improve the city’s road networks.
Tamara, also not her real name, lived in Dubai for three years with her partner before spotting a roomy villa with a garden last year for a “decent” price in a leafy lakeside community.
Although they were wary about the market’s volatility, they decided to buy the house, expecting they could “rent it out for a lot more than what we’re paying right now”.
“Within the next five years I think that the market is probably going to still be OK,” she said. However, “I don’t think the market for too long will carry on rising”. The house has been on the market for 10 weeks and has yet to secure a tenant.
Katralnada BinGhatti, chief executive of the eponymous developer, argued that climbing supply did not preclude further price increases.
Will Dubai continue to “see the double-digit growth? Obviously not, because that’s how any market behaves,” she said, but added she was “fairly confident” the market would stay in “a healthy place for the short to medium term”.
Analysts also say reforms after Dubai’s real estate crash of 2008 and 2009, including requirements for larger down payments on mortgages, have made the market more resilient to a downturn.
But others are unconvinced that prices can keep increasing. In a potential sign of pressure, developer Danube has started marketing one bedroom flats “for the price of a studio”.
“I don’t think it will keep going up like that because now there is a lot of competition,” said Talal Al-Gaddah, senior executive vice-chair of developer MAG, who argued that developers would start undercutting each other to capture market share.
If you price below your rivals, “you win the market faster and you sell faster,” said Gaddah. “So the prices will not go up, because of the massive competition.”
ADNOC subsidiaries to pay $43 billion in dividends by 2030 | Reuters
ADNOC subsidiaries to pay $43 billion in dividends by 2030 | Reuters
Abu Dhabi National Oil Company (ADNOC) said on Wednesday that its six publicly listed subsidiaries will distribute 158 billion AED ($43.02 billion) in dividends by 2030.
Meanwhile, ADNOC Gas has signed a 146.9 billion AED ($40 billion) contract for the Ruwais LNG project. Over 80% of the project's expected capacity has been committed to long-term contracts.
ADNOC also said that the merger of ADNOC and OMV (OMVV.VI), opens new tab petrochemical firms Borouge and Borealis, to create Borouge Group International, is on track to be completed by the first quarter of 2026 with some regulatory approvals already completed.
Financing for the deal worth 56.6 billion AED has been secured by ADNOC and OMV, including to acquire Nova Chemicals.
Abu Dhabi National Oil Company (ADNOC) said on Wednesday that its six publicly listed subsidiaries will distribute 158 billion AED ($43.02 billion) in dividends by 2030.
Meanwhile, ADNOC Gas has signed a 146.9 billion AED ($40 billion) contract for the Ruwais LNG project. Over 80% of the project's expected capacity has been committed to long-term contracts.
ADNOC also said that the merger of ADNOC and OMV (OMVV.VI), opens new tab petrochemical firms Borouge and Borealis, to create Borouge Group International, is on track to be completed by the first quarter of 2026 with some regulatory approvals already completed.
Financing for the deal worth 56.6 billion AED has been secured by ADNOC and OMV, including to acquire Nova Chemicals.
Gulf markets end mixed on oil price, US rate cut hopes | Reuters
Gulf markets end mixed on oil price, US rate cut hopes | Reuters
Stock markets in the Gulf closed mixed on Wednesday amid rising oil prices and expectations of additional U.S. interest rate reductions.
Oil prices, the catalyst for the Gulf's financial markets, climbed more than 1%, helped by a smaller-than-expected output hike from producer group OPEC+ next month, though concerns about oversupply capped gains.
Investor sentiment was further buoyed after the World Bank lifted its growth outlook for the region encompassing the Middle East, North Africa, Afghanistan and Pakistan for 2025. It, however, trimmed its forecast for next year, citing conflict and lower oil production in Iran and Libya.
Dubai's main share index (.DFMGI), opens new tab rose 0.3%, helped by a 1.8% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
As the U.S. government shutdown extends into a second week, investors have had to rely on secondary, independently produced U.S. data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting.
ADNOC said on Wednesday six listed subsidiaries, including ADNOC Gas, will pay 158 billion dirhams ($43.02 billion) in dividends by 2030.
ADNOC Gas also secured a 146.9 billion dirhams Ruwais LNG contract, with over 80% capacity committed.
Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.2%, with petrochemical maker Saudi Basic Industries (2010.SE), opens new tab losing 1.1%.
The Qatari stock index (.QSI), opens new tab eased 0.1%, dragged by a 1.2% fall in Industries Qatar (IQCD.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, buoyed by a 2.8% rise in Talaat Moustafa Group Holding (TMGH.CA), opens new tab.
Egypt's annual urban consumer price inflation slowed to 11.7% in September from 12% in August, data from statistics agency CAPMAS showed on Wednesday, a deceleration less than what analysts in a Reuters poll had anticipated.
Stock markets in the Gulf closed mixed on Wednesday amid rising oil prices and expectations of additional U.S. interest rate reductions.
Oil prices, the catalyst for the Gulf's financial markets, climbed more than 1%, helped by a smaller-than-expected output hike from producer group OPEC+ next month, though concerns about oversupply capped gains.
Investor sentiment was further buoyed after the World Bank lifted its growth outlook for the region encompassing the Middle East, North Africa, Afghanistan and Pakistan for 2025. It, however, trimmed its forecast for next year, citing conflict and lower oil production in Iran and Libya.
Dubai's main share index (.DFMGI), opens new tab rose 0.3%, helped by a 1.8% rise in top lender Emirates NBD (ENBD.DU), opens new tab.
As the U.S. government shutdown extends into a second week, investors have had to rely on secondary, independently produced U.S. data, along with remarks from monetary policymakers, to gauge the likelihood that the Federal Reserve will implement its second rate cut of the year at this month's policy meeting.
Traders are pricing in 45 basis points of easing this year.
The Fed's stance carries heavy clout in the Gulf, where most currencies are pegged to the U.S. dollar, anchoring regional monetary policy.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab finished 0.5% higher, led by a 2.3% jump in ADNOC Gas (ADNOCGAS.AD), opens new tab.
In Abu Dhabi, the benchmark stock index (.FTFADGI), opens new tab finished 0.5% higher, led by a 2.3% jump in ADNOC Gas (ADNOCGAS.AD), opens new tab.
ADNOC said on Wednesday six listed subsidiaries, including ADNOC Gas, will pay 158 billion dirhams ($43.02 billion) in dividends by 2030.
ADNOC Gas also secured a 146.9 billion dirhams Ruwais LNG contract, with over 80% capacity committed.
Saudi Arabia's benchmark stock index (.TASI), opens new tab fell 0.2%, with petrochemical maker Saudi Basic Industries (2010.SE), opens new tab losing 1.1%.
The Qatari stock index (.QSI), opens new tab eased 0.1%, dragged by a 1.2% fall in Industries Qatar (IQCD.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab advanced 0.8%, buoyed by a 2.8% rise in Talaat Moustafa Group Holding (TMGH.CA), opens new tab.
Egypt's annual urban consumer price inflation slowed to 11.7% in September from 12% in August, data from statistics agency CAPMAS showed on Wednesday, a deceleration less than what analysts in a Reuters poll had anticipated.
#UAE Property Giant Aldar Bets on Cheaper Homes, Private Credit - Bloomberg
UAE Property Giant Aldar Bets on Cheaper Homes, Private Credit - Bloomberg
For the last two decades, Abu Dhabi’s largest developer has focused largely on building upscale homes. But flush with cash after a lengthy boom, Aldar Properties PJSC is now setting its sights on affordable housing, lower cost schools and even a private credit fund.
Aldar — which is majority controlled by prominent Abu Dhabi entities — is adding homes at a wide range of prices from 500,000 dirhams to 3 millions dirhams ($136,000-$816,000) as it attempts to cater to different income groups, Chief Executive Talal Al Dhiyebi said in an interview. It’s also aiming to develop a rental portfolio of shared and single accommodations for people earning 5,000 to 20,000 dirhams.
Aldar will add more affordable schools as well as stores that cater to lower income families within its developments. Meanwhile, to help other builders who need funding, it’s planning to set up a Gulf fund that will offer private credit.
The capital of the United Arab Emirates, Abu Dhabi has in recent years attracted billionaires, hedge fund managers and crypto executives. The flood of expatriates that have landed here and in nearby Dubai have driven up the cost of living and left many workers financially stretched.
Aldar’s approach suggests that the emirate’s rulers are looking to tailor their city not just to the ultra rich, but also to the vast numbers of teachers, engineers, nurses and small businesses they need to compete as an international hub.
Al Dhiyebi says there’s huge pent-up demand for lower cost housing and education in this Gulf city that’s home to about $2 trillion in sovereign wealth and has been attracting expats from around the world.
Affordable housing is a “big area of focus for us in both the development and the investment segments, which we think is still significantly under-served,” Al Dhiyebi said in a recent interview. “We want to build it today because we know when a city grows, it grows across all affordability” levels, he said.
Abu Dhabi’s government has been diversifying its economy. It’s building a Disney theme-park, a Sphere entertainment arena, new museums as well as data centers that will create jobs and lure thousands of new residents over the next five years. They will all need places to live in.
At the same time, Aldar is adding luxury homes on Yas Island where it constructed a Ferrari theme park and an F1 racing track.
Al Dhiyebi said that an Aldar school attracted 1,000 students in its opening year in 2024, much higher than the 500 students the company expected to attract. That’s because the annual fees were around 30,000 dirhams, compared with 50,000 dirhams for many other international schools.
“Schools typically took us five to six years to break even from a PNL point of view, this is now broken even in less than two years,” said Faisal Falaknaz, group chief financial and sustainability officer.
Aldar, which partnered with wealth fund Mubadala and Ares Management on a $1 billion private credit fund in London in 2023, is planning to set up a similar unit to provide private credit for real estate projects in the Gulf region within the next 12 to 18 months, the CEO said.
Aldar wouldn’t necessarily need to commit its own money and a fund could be raised for that, he said. Al Dhiyebi has already been hearing from contractors who are struggling to secure credit facilities and bonds in the region.
Property prices have been climbing steadily in Abu Dhabi. Apartment prices rose 14% over the past year, according to the brokerage JLL. In July, Aldar said it sold a 400 million dirham mansion on the beach of Saadiyat Island, describing it as the most valuable home ever sold in the city.
Separately, a Four Seasons penthouse on Saadiyat Beach by another developer was sold for around 200 million dirhams fetching 14,000 dirhams per square foot, marking another record for Abu Dhabi on a per square basis, broker Sotheby’s International Realty said on Monday.
Earlier this year, it kicked off a development on Fahid Island that’s set to include around 6,000 luxury homes. In June, the company sold 3.5 billion dirhams worth of properties there. It’s also building homes, offices and hotels in Dubai and Ras Al Khaimah.
“People ask, are you in a bubble? We say, no,” the CEO said. “You can look at the quality of buyers, you can look at the default rates. Payment plans today are far more aggressive in favor of the developer than they were in the past.”
For the last two decades, Abu Dhabi’s largest developer has focused largely on building upscale homes. But flush with cash after a lengthy boom, Aldar Properties PJSC is now setting its sights on affordable housing, lower cost schools and even a private credit fund.
Aldar — which is majority controlled by prominent Abu Dhabi entities — is adding homes at a wide range of prices from 500,000 dirhams to 3 millions dirhams ($136,000-$816,000) as it attempts to cater to different income groups, Chief Executive Talal Al Dhiyebi said in an interview. It’s also aiming to develop a rental portfolio of shared and single accommodations for people earning 5,000 to 20,000 dirhams.
Aldar will add more affordable schools as well as stores that cater to lower income families within its developments. Meanwhile, to help other builders who need funding, it’s planning to set up a Gulf fund that will offer private credit.
The capital of the United Arab Emirates, Abu Dhabi has in recent years attracted billionaires, hedge fund managers and crypto executives. The flood of expatriates that have landed here and in nearby Dubai have driven up the cost of living and left many workers financially stretched.
Aldar’s approach suggests that the emirate’s rulers are looking to tailor their city not just to the ultra rich, but also to the vast numbers of teachers, engineers, nurses and small businesses they need to compete as an international hub.
Al Dhiyebi says there’s huge pent-up demand for lower cost housing and education in this Gulf city that’s home to about $2 trillion in sovereign wealth and has been attracting expats from around the world.
Affordable housing is a “big area of focus for us in both the development and the investment segments, which we think is still significantly under-served,” Al Dhiyebi said in a recent interview. “We want to build it today because we know when a city grows, it grows across all affordability” levels, he said.
Abu Dhabi’s government has been diversifying its economy. It’s building a Disney theme-park, a Sphere entertainment arena, new museums as well as data centers that will create jobs and lure thousands of new residents over the next five years. They will all need places to live in.
At the same time, Aldar is adding luxury homes on Yas Island where it constructed a Ferrari theme park and an F1 racing track.
Al Dhiyebi said that an Aldar school attracted 1,000 students in its opening year in 2024, much higher than the 500 students the company expected to attract. That’s because the annual fees were around 30,000 dirhams, compared with 50,000 dirhams for many other international schools.
“Schools typically took us five to six years to break even from a PNL point of view, this is now broken even in less than two years,” said Faisal Falaknaz, group chief financial and sustainability officer.
Aldar, which partnered with wealth fund Mubadala and Ares Management on a $1 billion private credit fund in London in 2023, is planning to set up a similar unit to provide private credit for real estate projects in the Gulf region within the next 12 to 18 months, the CEO said.
Aldar wouldn’t necessarily need to commit its own money and a fund could be raised for that, he said. Al Dhiyebi has already been hearing from contractors who are struggling to secure credit facilities and bonds in the region.
Property prices have been climbing steadily in Abu Dhabi. Apartment prices rose 14% over the past year, according to the brokerage JLL. In July, Aldar said it sold a 400 million dirham mansion on the beach of Saadiyat Island, describing it as the most valuable home ever sold in the city.
Separately, a Four Seasons penthouse on Saadiyat Beach by another developer was sold for around 200 million dirhams fetching 14,000 dirhams per square foot, marking another record for Abu Dhabi on a per square basis, broker Sotheby’s International Realty said on Monday.
Earlier this year, it kicked off a development on Fahid Island that’s set to include around 6,000 luxury homes. In June, the company sold 3.5 billion dirhams worth of properties there. It’s also building homes, offices and hotels in Dubai and Ras Al Khaimah.
“People ask, are you in a bubble? We say, no,” the CEO said. “You can look at the quality of buyers, you can look at the default rates. Payment plans today are far more aggressive in favor of the developer than they were in the past.”
Subscribe to:
Comments (Atom)