Banking & Finance Saudi Arabia seals $11bn syndicated bank loan Saudi Arabia has concluded an $11 billion syndicated loan arranged from a group of lenders to help fund its vast infrastructure developments in what an adviser to the agreement describes as the largest government loan worldwide this year. The 10-year facility is also the biggest loan to any borrower in Europe, the Middle East and […] December 14, 2023
Analysis Banking & Finance New certification to swell sharia-compliant funds A London-based fund manager hopes a pioneering Islamic finance certification can boost sharia-compliant equity investments worldwide and help ensure Muslim clients’ wealth is deployed to meet both their religious ideals and benefit society. Most sharia-compliant equity funds focus on excluding haram industries such as alcohol, tobacco, weapons, pork and gambling. Yet such a methodology has […] December 12, 2023
Analysis Finance Gold to glisten despite world’s economic concerns Central bank demand helped lift gold prices to all-time highs this month and further accumulation should support the precious metal next year despite a likely slowdown in the global economy, a top industry official has told AGBI. Gold’s performance is important to the United Arab Emirates. The country is a major processor and the world’s […] December 10, 2023
Renewable Energy Oman could become world leader in geologic hydrogen Green hydrogen has made global headlines as a potential carbon-free alternative to fossil fuels, but some experts believe another, abundant source of the gas could be under our feet. It is known as geologic hydrogen. Geologic hydrogen occurs naturally in the earth’s crust and is produced when water reacts with iron-rich rocks in the subsurface. […] December 10, 2023
Analysis Banking & Finance Late-year flurry could boost the sukuk market Sukuk issuance fell in the first nine months of 2023 – but this year’s total could yet equal that of 2022, Fitch Ratings’ Islamic finance chief told AGBI. Gulf governments and corporations are issuing sharia-compliant bonds to diversify their funding and ease their reliance on bank borrowing. Sukuk were developed as an alternative to conventional […] December 7, 2023
Analysis Markets Real estate trusts struggle despite strong Dubai market Dubai’s resurgent property market has delivered riches to property owners and shareholders of leading developers like Emaar Properties, but investors in two listed Dubai real estate investment trusts – Emirates REIT and ENBD REIT – are nursing sustained losses. Both trusts are listed on Nasdaq Dubai. The emirate’s international bourse launched in 2005 with the […] December 6, 2023
Sustainability $92bn plan to make Riyadh greener for Expo 2030 Saudi Arabia will invest $92 billion to make Riyadh one of the world’s most sustainable cities by 2030, the kingdom’s tourism minister has said. Riyadh was awarded hosting rights for the 2030 World Expo, an event Dubai staged to widespread acclaim in 2021-2022 following a one-year delay due to the pandemic. Princess Haifa bint Mohammed […] December 5, 2023
Banking & Finance UAE bank profits grow on greater lending and higher interest The UAE’s top 10 banks expanded their combined net profits in the third quarter versus the previous three months thanks to growing demand for corporate and retail borrowing, improved lending margins and lower impairments. A report by consultants Alvarez & Marsal studied the country’s biggest homegrown lenders by assets including leading duo First Abu Dhabi […] November 23, 2023
Finance Dubai’s investment arm almost doubles profits Transport and finance have helped the Dubai government’s investment body almost double profits for the first half of the year. Investment Corporation of Dubai (ICD) reported an 86 percent rise in first-half net profit on Thursday as earnings from its financial services and transportation divisions surged. ICD, which is the Dubai government’s main investment unit, […] November 23, 2023
Analysis Real Estate Investors favour Emaar for Dubai property returns Dubai’s residential property sector rebound has reaped huge profits for the emirate’s developers and landlords. Yet for equity traders, there is really only one investible conglomerate: Emaar Properties and its subsidiary, Emaar Development. There has been upheaval among second-tier developers listed on Dubai’s bourse, while the other major players, such as Nakheel, Dubai Properties and […] November 22, 2023
Analysis Banking & Finance ADIB expects profits to keep rising after stellar year Abu Dhabi Islamic Bank’s net profit margin will expand further, according to its group chief financial officer Mohamed Abdelbary. The sharia-compliant lender has enjoyed a bumper first nine months of 2023 in which its earnings increased by nearly half. “We’ve managed to capitalise on the increase in interest rates in the market because of the […] November 16, 2023
Sustainability Dubai startup to create Africa carbon offset projects Dubai’s Blue Carbon will deliver environmental and societal benefits from its carbon offset projects in Africa, a senior executive has said, rejecting criticism from independent experts who question whether such schemes lead to real emissions reductions. In September Blue Carbon, whose chairman is Sheikh Ahmed Dalmook al Maktoum of Dubai’s ruling family, signed a memorandum […] November 16, 2023
Oil & Gas Adnoc says revised emissions target is ‘strong step’ forward Adnoc, the Abu Dhabi National Oil Company, aims to be “net-zero operations” in terms of greenhouse gas emissions by 2045, five years earlier than originally planned. The government-owned energy company is investing billions of dollars to cut its in-house carbon emissions. Crucially, its targets exclude emissions created by customers consuming its oil and gas, although […] November 15, 2023
Aviation India and Gulf tipped as key markets for private jet hire Private jet operator Vista Global Holding is expecting the Middle East and India to be its fastest-growing markets in the luxury aviation industry. The Dubai company’s “pay for hours flown” platform, VistaJet, has a fleet of about 360 aircraft available at 24 hours’ notice. “The most dynamic and fast-growing markets for us are the Middle […] November 15, 2023
Oil & Gas Hydrocarbon has role in ‘fair’ energy transition, says Adnoc Adnoc believes hydrocarbons will play a role in the energy transition despite their contribution to climate change, the Abu Dhabi state oil company has told AGBI. “All credible energy outlooks” show that “both renewable and conventional energy will continue to be needed to ensure a fair and responsible energy transition,” said a spokesperson. “We recognise […] November 15, 2023
Analysis Aviation Gulf’s thriving private jet industry uncowed by eco concerns The Gulf’s private aviation industry is buoyant as executives, ruling family members and other wealthy individuals use its services to travel across the region and beyond. In the first half of 2023, there were 7,300 private flights to or from Mohammed bin Rashid Aerospace Hub, which is part of Dubai’s Al Maktoum International Airport (DWC). […] November 14, 2023
DUBAI AIRSHOW Aviation Aviation in struggle to reach net zero targets Gulf commercial airlines have committed to achieving net zero emissions by 2050 by switching to sustainable aviation fuels, adopting new technologies and buying carbon offsets, among other measures. But they face challenges in doing so. The aviation industry hopes measures such as these will enable it to realise two seemingly conflicting ambitions: doubling the volume […] November 12, 2023
Finance Royalty levy change is ‘non-event’ for UAE telcos Changes to the way royalties are levied on the UAE’s telecom operators will make little difference to their earnings, the companies affected say. This week, Emirates Telecommunications Group Co, which rebranded as e& and is widely known as Etisalat, announced that for the three years starting January 1 2024 it will pay a royalty of […] November 9, 2023
Analysis Sustainability What went wrong with nature-based carbon credits Nature-based carbon credits were supposed to be a means whereby countries and companies, Middle Eastern entities among them, could offset their greenhouse gas emissions. Advocates of the credits have argued they help mitigate climate change and at the same time benefit rural communities. Yet the reality has disappointed. After Cop26 in Glasgow in late 2021, […] November 6, 2023
Oil & Gas Sabic slumps to loss as petrochem prices slide Petrochemicals producer Saudi Basic Industries Corporation (Sabic) swung to a net loss in the third quarter, hit by a slump in product prices, a loss from offloading a subsidiary and a hefty impairment on its European operations. Sabic, 70 percent owned by Saudi Aramco, made a net loss of SAR 2.88 billion in the three […] November 2, 2023
Analysis Finance Middle East varies tactics amid US treasury volatility As expected, the US Federal Reserve kept interest rates on hold at its meeting this week. Always keenly watched in the Middle East because of its hefty reliance on the dollar, US interest rates are also important due to their influence on US state debt, known as treasuries. Yields on US medium-dated government debt have […] November 2, 2023
Analysis Finance Middle East bonds drop despite issuance surge Middle East bond indexes endured a tough October, extending the losses for 2023 despite a bumper year for regional debt issuance. The slump in the benchmarks mirrors a sustained surge in US treasury yields. Bond yields and prices are inversely correlated, while Gulf bonds are priced based on a spread over US treasury yields. As […] November 1, 2023
