Analysis Economy Egypt needs more dollars before devaluation, warn experts Egypt will devalue its currency further after December’s presidential election, as the country needs more time to increase its dollar reserves and give it a better chance of stabilising its ailing currency, analysts told AGBI. The Egyptian pound is linked to a basket of currencies in which the dollar is dominant. Policymakers have slashed the […] October 25, 2023
Banking & Finance US banks lead pack for M&A advice in Middle East US banks have been the top advisers for mergers and acquisitions in the Middle East and Africa this year, research has found. Bank of America advised on deals with a combined value of $9.9 billion in the first nine months of 2023, followed by JP Morgan at $7.6 billion and Citi at $6.3 billion. “Bank […] October 25, 2023
FII Logistics Neom and Denmark’s DSV in $10bn logistics partnership Saudi Arabia’s Neom and Danish freight forwarder DSV have entered into a $10 billion logistics joint venture (JV) that will serve the $500 billion giga-project in the kingdom’s northwest. The JV will provide supply chain management including delivering goods and materials to Neom, the companies said in a joint statement. Neom, owned by Saudi Arabia’s […] October 24, 2023
Analysis Finance Egypt shines as Mena’s top performing bourse in 2023 Egypt’s benchmark stock index soared to another all-time high this week, extending a prolonged rally as investors bought equities to hedge against soaring inflation and a fragile Egyptian pound. The EGX30 Index is the Middle East and North Africa region’s top performer in 2023, rising 51.2 percent to October 17, although in dollar terms its […] October 18, 2023
Analysis Finance Kuwaiti stocks toil but analysts foresee 2024 rebound Overpriced valuations, high interest rates and oil production cuts have sapped investor confidence in Kuwait, and the country’s stock market is among the Mena region’s worst performers this year. Despite this, analysts predict a sustained rebound in crude prices, steady corporate earnings and renewed government infrastructure spending. This could boost ebbing sentiment and spark a […] October 13, 2023
Analysis Banking & Finance Turkey and Egypt can trip up Gulf lenders says analyst Gulf banks are in a resilient position as oil production cuts crimp economic growth, but lenders could face headwinds from macroeconomic volatility in Egypt and Turkey, an S&P Global analyst said this week. In Turkey, Dubai’s Emirates NBD owns Denizbank and Qatar National Bank owns QNB Finansbank, the country’s eighth and ninth largest banks by […] October 12, 2023
Exclusive Sustainability Saudi carbon credit firm to invest in Middle East and Africa Saudi Arabia’s Regional Voluntary Carbon Market Co plans to invest in carbon abatement projects in the Middle East, Africa and Southeast Asia, the CEO of the government-backed startup has told AGBI. Saudi’s Public Investment Fund (PIF) and Saudi Tadawul Group, owner of the kingdom’s stock market, last October launched RVCMC. PIF holds an 80 percent […] October 12, 2023
Analysis Business of Sport Turkey chosen as co-host for football’s Euro 2032 Turkey on Tuesday was awarded co-hosting rights for the Euro 2032 men’s soccer tournament in a decision that will provide a further boost to the country’s resurgent tourist industry and bring in much-needed additional foreign currency. Turkey had sought to host Euro 2028 or Euro 2032 in their entirety but in July launched a joint […] October 11, 2023
Finance Dubai’s Shuaa Capital shares plunge to all-time low Shares in Dubai’s Shuaa Capital plunged to a record low on Tuesday after the indebted investment bank said it would launch a rights issue to increase its capital as part of attempts to bolster its finances. Shuaa’s stock was trading at AED 0.271 at 12:53 UAE time (09:53 GMT), down the maximum 10 percent. The […] October 10, 2023
Opinion Sustainability Carbon credit schemes are not a straight road to zero Urgent action is needed to stop carbon credits suffering the same fate as NFTs October 9, 2023
Analysis Sustainability Middle East air pollution among worst in the world Air pollution levels in the Middle East and North Africa region (Mena) are among the highest globally, and concentrations of harmful particulates are increasing in many of the region’s cities as economic activity returns to pre-pandemic levels. Measurements and definitions can vary, so Switzerland’s IQAir created a standardised air quality app to monitor and compare […] October 6, 2023
Analysis Economy Turkey’s bounced cheques, loan and card defaults soar The value of bounced cheques in Turkey is soaring as small and medium-sized enterprises grapple with resurgent inflation. Personal loan and credit card defaults are also at 2023 highs following a borrowing splurge ahead of May’s elections. Veteran leader Recep Tayyip Erdoğan had pushed state-owned banks to expand lending in the run-up to the parliamentary […] October 3, 2023
Analysis Economy Sustained rate hikes fail to reverse Turkish lira slump Turkey’s near-quadrupling of interest rates in the past three months has slowed but not yet reversed a long-term slump in the country’s currency, the lira. It is widely expected to tumble to further record lows before the end of 2023. The currency’s ongoing weakness spells trouble for efforts to rebalance the economy, and the country’s […] October 2, 2023
Analysis Markets Erdoğan’s stock grows as Turkey’s index doubles Turkey’s main stock index has nearly doubled since veteran leader Recep Tayyip Erdoğan’s surprise re-election in May, and experts forecast the rally can persist until early 2024 at least. Further gains seem probable as retail investors buy equities to hedge against resurgent inflation and the president’s new finance chiefs convince institutions the country is returning […] September 28, 2023
Analysis Banking & Finance Foreign investors turn to World Bank for Mena disputes Foreign investors are increasingly filing cases at the World Bank’s arbitration unit to resolve disputes with countries in the Middle East and North Africa (Mena) region. The World Bank launched the International Centre for Settlement of Investment Disputes (ICSID) in 1966 to enforce investor rights that are guaranteed within bilateral investment treaties between countries. In […] September 27, 2023
Analysis Markets Strong demand for Oman’s biggest IPO in two decades Oman’s joint-biggest initial public offering is attracting huge interest among retail investors, despite subdued recent activity on Muscat’s bourse, a senior financial industry executive told AGBI. OQ Gas Network (OQGN), a subsidiary of national oil company OQ, will sell 49 percent – or 2.12 billion – of its shares in an IPO. The company this […] September 22, 2023
Aviation Aviation offset rules face shake-up as doubts persist An imminent change to rules governing aviation carbon offsets ahead of the Cop28 climate conference may not be enough to convince airlines and others they have a meaningful effect, it has emerged. Aviation, like steel- and cement-making, is a hard-to-abate industry. It is difficult for companies within the sector to reduce emissions of carbon dioxide […] September 21, 2023
Banking & Finance Standard Chartered still attractive to possible buyers Standard Chartered will remain in the sights of cash-rich potential buyers thanks to the bank’s relatively cheap valuation and hard-to-replicate footprint, analysts told AGBI. It is listed and headquartered in London, yet 87 percent of its half-year income was derived from Asia, the Middle East and Africa. Over the past decade, Standard Chartered has sold […] September 18, 2023
Oil & Gas Oil rally to bolster Gulf stock markets A renewed oil price rally is boosting investor sentiment on regional bourses ahead of the final few months of 2023. Listed Gulf companies with low borrowing and bountiful cash surpluses should outperform their more indebted rivals, asset managers have predicted. Historically, the fourth quarter is often the best for Gulf equities, usually following a prolonged […] September 14, 2023
Analysis Banking & Finance Investors snub Saudi’s lacklustre bank stocks Saudi Arabia’s banking stocks have suffered a sustained slump despite lenders reporting steady earnings. Experts believe they are unlikely to rebound in the near term as investors target higher-growth industries instead. Banking is one of three heavyweight sectors on the kingdom’s bourse, along with energy and materials, the latter including petrochemical manufacturers. To Tuesday’s close, […] September 13, 2023
Analysis Markets Risk-averse Gulf telecom companies look to Europe Following myriad lacklustre investments in Asia and Africa, some former telecom monopolies in the Gulf are now buying minority stakes in long-established operators in Europe to provide lower-risk, dividend-based returns. STC Group, previously known as Saudi Telecom Co and majority-owned by the kingdom’s Public Investment Fund, this week revealed it had spent 2.1 billion euros […] September 8, 2023
Tech Radar satellite deal to spot oil spills and illegal fishing A partnership between Finnish radar satellite company Iceye and two Emirati space industry operators could be used for a range of services, such as preventing oil slicks, clamping down on illegal fishing and monitoring coastal changes. Iceye in May signed an agreement with Abu Dhabi satellite operator Yahsat and artificial intelligence and cloud computing company […] September 7, 2023
