PIF-backed Oman infrastructure fund raises $1 billion Omani infrastructure investor Rakiza, which is backed by Saudi Arabia’s PIF, has closed its first fund, raising more than $1 billion from participants. Rakiza has already spent a quarter of this money in buying three Omani assets – a 30 percent stake in a telecom tower portfolio, 31 percent of a Port Sohar container terminal […] March 21, 2023
Analysis Energy 145 billion barrels of oil, but patience is running dry in Iraq Iraq has vast reserves of crude oil – 145 billion barrels as of 2022 and more than 8 percent of the global total – but economists and analysts have warned that Baghdad will struggle to meet its output targets unless it offers better operating terms to Western oil majors. The country remains hugely reliant on […] March 21, 2023
Markets Saudi Arabia to introduce SPAC listings Saudi Arabia plans to allow special-purpose acquisition companies, also known as SPACs, to list on the kingdom’s bourse, a top official told a conference this week. These entities raise money through an initial public offering (IPO) and then use the proceeds to acquire other companies. SPACs were seen as a simpler, quicker and more effective […] March 17, 2023
Energy Rolls-Royce sees Mena as ‘driver’ for green power growth The Middle East and Africa’s rapid urbanisation and push to decarbonise power generation is a “great economic driver” for Rolls-Royce, the British engineering firm’s regional chief told AGBI. Rolls-Royce is one of the world’s top aero engine manufacturers, supplying civilian and military craft, although its power systems division provided 26.4 percent of its £12.69 billion […] March 17, 2023
Analysis Banking & Finance UAE’s biggest banks mull overseas acquisitions As domestic loan growth wanes, the UAE’s top two banks are eyeing foreign acquisitions to bolster their income. First Abu Dhabi (FAB) and Dubai’s Emirates NBD are majority owned by their respective emirates’ governments or ruling families and are ranked second and sixth in the Middle East and Africa in terms of bank assets, according […] March 9, 2023
Agriculture Morocco can weather storm of fruit and vegetable shortage Recent adverse growing conditions in Morocco have caused shortages of some fruit and vegetable produce in European supermarkets, particularly in the UK, but the impact will not dent economic growth in the North African country this year, the World Bank said. British supermarkets last month introduced rationing of some popular produce as a result of […] March 8, 2023
Employment GCC firms compete for talent as they expand workforce Gulf employers, especially in Saudi Arabia and the UAE, expect to expand their workforces further this year, boosting salaries as organisations vie to hire the region’s best talent. Top recruitment agency Hays surveyed about 4,500 working professionals in the GCC in the final three months of 2022. It found that last year 67 percent of […] March 7, 2023
Banking & Finance Mandatory health coverage boosts Middle East insurance sector Mandatory health insurance requirements swelled Gulf insurers’ income last year, although growth will slow in 2023 and profitability remains a challenge despite the coverage boom. Those are some of the findings in a report by S&P Global Ratings which predicts easing inflationary and supply chain pressures should lower costs arising from property, motor and casualty […] March 7, 2023
Logistics Brazilian cargo drone maker expands operations to Dubai Tupan, a Brazilian cargo and military drone manufacturer, is setting up operations in Dubai, in a bid to help speed up e-commerce deliveries and boost cross-border trade, the company’s CEO told AGBI. The UAE’s civil aviation authority in December published what it said were the world’s first regulations for vertiports to govern the use of […] March 2, 2023
Banking & Finance Rising interest rates will help struggling Mena banks Rising interest rates are likely to help major banks in Egypt, Morocco and Jordan to remain profitable in 2023 despite loan defaults increasing and a darkening global economic outlook, S&P Global Ratings forecasts. But banks in the three countries remain vulnerable because of higher funding costs, commodity prices and inflation and lower tourism revenue. The […] February 24, 2023
Business of Sport Qatar sees 341% surge in VC sports and fitness funding Venture capital funding into Qatari sports and fitness startups nearly quadrupled last year as the country’s multibillion dollar hosting of the 2022 World Cup helped swell interest in related industries. In 2022, sports and fitness startups received 15 million riyals ($4.12 million) in funding – up from around 4.4 million riyals a year earlier – […] February 21, 2023
Development Abu Dhabi and World Bank unit to invest $1.5bn in emerging markets Abu Dhabi and a World Bank subsidiary have agreed to invest up to $1.5 billion in sustainable private sector-led projects in emerging markets. Under the memorandum of co-operation, which was signed at the World Government Summit in Dubai on Tuesday, the Abu Dhabi Fund for Development and the World Bank’s IFC (International Finance Corporation) will […] February 15, 2023
Construction PIF buys stakes in construction firms as Saudi boom continues Saudi Arabia’s Public Investment Fund (PIF) has spent $1.3 billion buying “significant” minority stakes in four local construction companies, the sovereign wealth fund said in a statement on Tuesday. The kingdom is enjoying a building boom, with projects valued at more than $1.1 trillion underway and a further $64 billion of construction contracts forecast to […] February 14, 2023
Analysis Economy Lebanese businesses learning to live with dollarisation Lebanon’s pound, which has fallen 98 percent against the dollar on the black market, will depreciate further unless policymakers enact meaningful reforms and restructure the country’s moribund financial industry. Such actions seem unlikely, with Lebanon’s caretaker government seemingly unable to resolve an economic crisis the World Bank describes as among the worst since the 1850s. […] February 13, 2023
Analysis Energy Europe looks to a divided Libya to ease energy crisis Italian oil major Eni’s $8 billion deal to develop two new gas fields in Libya is the biggest since the overthrow of veteran ruler Muammar Gaddafi. It also marks the latest attempt by European energy companies to secure new supplies for the continent in North Africa. Last year Eni struck an agreement to increase gas […] February 10, 2023
Economy High inflation boosts demand for gold Demand for gold coins, bars and jewellery soared in the Middle East last year, according to the World Gold Council. In 2022 demand for gold coins and bars in the Mena region surged 42 percent year-on-year to 77.8 tonnes, the highest annual total since 2018. “Egypt, Qatar, Iraq, the UAE and Oman significantly boosted their […] February 1, 2023
Analysis Banking & Finance Saudi SMEs look to sharia funding to balance cash flow In Saudi Arabia, small to medium-sized companies are increasingly turning to sharia-compliant funding to raise money for their businesses. But rather than borrow from banks, these SMEs instead rely on the kingdom’s nascent fintech sector to obtain bridging loans, invoice financing and other kinds of niche financial support. “SMEs are underserved by the banking sector, […] January 24, 2023
Economy Swiss Group opens Zurich office to boost trade with UAE Swiss Group, the Dubai-based business consultancy, is opening an office in Zurich this month to help Swiss companies and entrepreneurs do business in the UAE. The UAE’s $8.74 billion of exports to Switzerland in 2021 make it the European country’s ninth largest import partner, according to data from the International Monetary Fund. The UAE is […] January 24, 2023
Microsoft-backed Indian tech firm in Mena expansion Indian HR software provider Darwinbox is increasing its Middle East headcount as part of its push into the region following Microsoft’s investment in the company. Microsoft bought a stake in the tech firm, which is based in Hyderabad, with the duo forming a partnership that enables both companies to share leads and what Darwinbox describes […] January 20, 2023
Employment European and Russian expats opt for freelance jobs in UAE UAE job visa applications will increase by nearly one third this year, with many expats from Europe and Russia opting for freelance roles, the managing director of recruitment and HR consultancy Connect Group told AGBI. Aaron Portero forecasts that visa applications will rise at least 25 to 30 percent in 2023. This is on top […] January 19, 2023
Banking & Finance BlackRock’s Larry Fink welcomes rise in Gulf clients BlackRock is attracting more investors from the Middle East, the CEO of the world’s largest asset manager told analysts this month. The US-based firm established a wholly-owned Saudi subsidiary in 2018, opened an office in Riyadh in 2019 and in February 2022 received approval from the market regulator to start managing investments and operating funds […] January 16, 2023
Exclusive Tourism World’s largest hotel franchiser eyes Saudi mid-market sector The mid-market hotel segment offers great opportunities in Saudi Arabia’s fast-growing tourism industry, the president of the world’s largest hotel franchising company told AGBI. New Jersey-headquartered Wyndham Hotels and Resorts last month opened its 13th hotel in the kingdom, the 189-room Ramada by Wyndham Riyadh King Fahd Road. It is one of several Wyndham hotels […] December 9, 2022
