Gulf’s Arada Buys London Waterfront Plot To Build 5,000 Homes - Bloomberg

Gulf’s Arada Buys London Waterfront Plot To Build 5,000 Homes - Bloomberg

Arada Developments, co-owned by the son of Saudi Arabian Prince Alwaleed bin Talal and a member of Sharjah’s royal family, has acquired an 80% stake in a London development that’s slated to add at least 5,000 homes.

The company will develop Thameside West — a waterfront plot that used to be an industrial site at the western end of London’s Royal Docks — as a mixed-use community that will also include shops, schools, parks and transport links. It bought the stake from London developer Keystone for £225 million ($295 million) and will invest another £100 million in equity, Arada’s Group Chief Executive Officer Ahmed Alkhoshaibi said in an interview. Keystone will retain a 20% stake.

Thameside West, which Arada said has a development value of £2.5 billion, will be spread over 47 acres, nearly twice the size of New York’s Hudson Yards.

Arada is based in the United Arab Emirates, where developers are flush with cash after a property boom at home. Many have begun expanding globally in search of growth in markets where construction has lagged and to cushion themselves against any potential slowdown at home.

Meanwhile, in London, housebuilding is in the midst of a slump. Higher rates, tougher regulation and tax uncertainty ahead of the UK budget this month have combined to stifle development. Just 15,000 to 20,000 homes will be in active construction in London by the start of 2027 without major government intervention, according to a forecast by researcher Molior London last month. That’s down from 60,000 to 65,000 in the five years through 2020 before the pandemic disrupted the construction market, the data show.

“In London, there is demand because rents are rising. But there is a situation where people are struggling to buy homes because the banks are not lending and the government is not incentivizing,” Alkhoshaibi said. “We know that’s going to change. We know that has to change.”

The latest deals comes after Arada bought a 75% stake in a London real estate developer, Regal, for $680 million in September and announced plans to build 30,000 homes in the UK’s capital over the next three years.

About 35% of the Thameside West project will be dedicated to affordable housing, the CEO said. The first phase of the development will include 1,000 homes on which construction is set to start in 2027 and finish in 2029. The project will be built in five phases and will include a light-rail station on the site, he added. The site is expected to include 30 towers.

Alkhoshaibi is confident he will be able to sell the first phase even if there is insufficient demand in London because he can tap the company’s network of buyers in the Gulf. The project will be priced so it can target middle income buyers, the CEO said.

“The fundamentals are there,” Alkhoshaibi said. “London is London. You can’t discount London for whatever problems they’re facing. Ultimately there is underlying demand for property.”

Raising Bonds

Separately, Arada is considering issuing convertible Islamic bonds to raise $400 million and is working with JPMorgan, the CEO said. The proceeds would help fund land acquisition and expansion in the United Arab Emirates. Arada has a valuation of more than 30 billion dirhams ($8.2 billion) and is mulling selling a stake of up to 20% in an initial public offering by 2028, the CEO said, emphasizing that nothing is finalized and all plans would be dependent on market conditions.

Arada was founded by Sheikh Sultan bin Ahmed Al Qasimi and Prince Khaled bin Al Waleed bin Talal. The firm is building large developments in Dubai and its home market Sharjah including Aljada, a $9.5 billion project. It’s also expanding in Australia with plans to build 2,500 homes.

The Sharjah-based developer expects to generate 17 billion dirhams in sales this year, up from 6 billion dirhams in 2024, Alkhoshaibi said. Demand in the UAE has been holding up despite Dubai being among the world’s best performing property markets for the past few years, he said.

“There might be a small correction in the second tier locations where there is some oversupply,” the CEO said about Dubai. “But even in those areas, it’ll be a small adjustment because the overall demand is there and the affordability component is still attractive to a lot of people who are moving into the UAE, which we know are in record numbers.”

Exclusive: Airbus to win bulk of major flydubai jet order, sources say | Reuters

Exclusive: Airbus to win bulk of major flydubai jet order, sources say | Reuters

Airbus (AIR.PA), opens new tab looks set to beat Boeing (BA.N), opens new tab to the lion's share of a major jet order from flydubai at the Dubai Airshow, breaking its rival's grip on the fast-growing budget carrier for the first time, people familiar with the matter said on Sunday.

The European planemaker was nearing a deal to sell roughly 100 A321neo jets to flydubai, which is also in talks for a smaller order of several dozen 737 MAX from Boeing, they said.

Airbus' share of the deal could top 100 jets, but the final split depends on negotiations expected to continue down to the wire as the industry gathers for its November 17-21 summit.

Airbus and Boeing declined to comment. Flydubai, which has 175 MAX in its fleet or on order, along with 30 larger Boeing 787s, did not immediately respond to requests for comment.

LEADING GLOBAL CUSTOMER

A deal by Airbus to penetrate one of the leading global customers for the 737 MAX, which has so far bought exclusively from Boeing, would further cement Europe's lead in the market for the largest and most in-demand narrow-body jets.

Flydubai would continue to have a roughly balanced fleet based on earlier Boeing orders, the sources said.

The airline has previously said it was looking to place its largest ever aircraft order, suggesting it would purchase more than the 175 MAX planes it ordered in 2017.

When options were included, the airline could secure access to hundreds of new jets during this week's negotiations, the sources said.

Reuters reported on Friday that Airbus was expected to win a slice of the budget carrier's business for the first time.

Boeing Commercial Airplanes CEO Stephanie Pope said on Sunday it would be focusing mainly on discussions with airlines about its path to recovery from a series of corporate crises, rather than maximising new orders at the show.

Analysts have said they expected Airbus to win the Dubai Airshow after a visit to the Gulf by U.S. President Donald Trump in May accelerated significant Boeing order announcements that would typically be unveiled at the Middle East aviation expo.

Airbus said on Sunday it expected the region's aircraft fleet to more than double to 3,700 planes by 2044.

#AbuDhabi's ADIA to sell 5% stake in #Qatar telco Ooredoo | Reuters

Abu Dhabi's ADIA to sell 5% stake in Qatar telco Ooredoo | Reuters

The Abu Dhabi Investment Authority will sell 160.5 million of its existing shares in Qatari telecommunications company Ooredoo (ORDS.QA), opens new tab, around half of its shareholding, in a secondary share offering, Ooredoo said on Monday.

The offer price range for the share sale is set at between 12.4 Qatari riyals and 13 riyals per share, with an implied deal size of between 1.99 billion and 2.09 billion riyals ($546 million to $572 million), according to a term sheet from a coordinating bank seen by Reuters.

ADIA, headquartered in the United Arab Emirates' capital, is one of the world's biggest sovereign wealth funds. It currently holds a 10% stake in Ooredoo.
Ooredoo will not receive any proceeds from the sale.

"By launching this offer – the first transaction of its kind in Qatar – ADIA is enabling an important step to broaden Ooredoo's shareholder base and enhance our shares' liquidity on the Qatar Stock Exchange," said Ooredoo CEO Aziz Aluthman Fakhroo in a statement.

Ooredoo has operations across the Middle East, North Africa, and Southeast Asia, and is listed on both the Qatar and Abu Dhabi exchanges.

The company reported net profit of 3.1 billion riyals in the first nine months of the year, up 6% year-on-year. Revenue was up 3% in the same period, rising to 5% after excluding the impact of its Myanmar exit.

Citi, HSBC, and Qatar National Bank are mandated joint global coordinators and bookrunners on the deal. Books are due to open on November 18, with pricing and allocation to follow on November 19 and trading to begin November 20.

Most Gulf shares muted on Fed rate cut uncertainty | Reuters

Most Gulf shares muted on Fed rate cut uncertainty | Reuters

Most Gulf stock markets were subdued on Monday as investors turned cautious ahead of a long-awaited U.S. jobs report that could offer clearer signals on the health of the world's largest economy.

Following hawkish comments from U.S. Federal Reserve officials, traders now see more than a 56% chance the Fed will leave interest rates unchanged in December, compared with nearly a 94% probability of a 25-basis-point cut a month ago, according to the CME FedWatch Tool.

Monetary policy shifts in the U.S. tend to have a significant impact on Gulf markets, where most currencies are pegged to the dollar.

The Qatari benchmark index (.QSI), opens new tab fell 0.4%, marking its fourth straight session of losses, with most constituents in the red. Industries Qatar (IQCD.QA), opens new tab dropped 1.3%, while Qatar National Bank (QNBK.QA), opens new tab, the region's largest lender, eased 1.1%.

The Abu Dhabi benchmark index (.FTFADGI), opens new tab shed 0.1%, extending its losing streak to a fourth session, with most sectors declining. Conglomerate Alpha Dhabi (ALPHADHABI.AD), opens new tab fell 2.4% and Abu Dhabi Commercial Bank (ADCB.AD), opens new tab lost 1.5%.

Abu Dhabi National Energy Co (TAQA.AD), opens new tab rose 3.6% after Terra-Gen, jointly owned by Taqa's unit Masdar and Igneo Infrastructure Partners, said on Friday it had commissioned the Monte Cristo I wind power project in Texas. The project is expected to generate more than $100 million in property taxes, landowner payments and local contributions.

Saudi Arabia's benchmark stock index (.TASI), opens new tab traded in a narrow range, as gains in energy, real estate, communications and materials were offset by losses in most other sectors. ACWA Power (2082.SE), opens new tab slipped 1.1% and Advanced Petrochemical (2330.SE), opens new tab dropped 4.2%, while Saudi Arabian Mining (1211.SE), opens new tab Co rose 1.7%.

Saudi Aramco gained 1% after reports it would sign two U.S. liquefied natural gas supply deals with Woodside Energy and Commonwealth LNG during Crown Prince Mohammed bin Salman's visit to Washington.

Dubai's benchmark stock index (.DFMGI), opens new tab edged up 0.1% after three consecutive sessions of losses. Tolls operator Salik (SALIK.DU), opens new tab advanced 1.7% and Emirates NBD (ENBD.DU), opens new tab, the emirate's largest lender, added 1.2%, while Emaar Properties (EMAR.DU), opens new tab fell 2.2%.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.4%, pressured by a 1.4% decline in Commercial International Bank (COMI.CA), opens new tab.