Analysis Sustainability UAE companies have mixed success in cutting emissions While many of the UAE’s major corporations are making limited progress in cutting greenhouse gas emissions, analysis by AGBI reveals that Emsteel (formerly known as Emirates Steel Arkan) is the standout performer. The UAE, the second-largest Arab economy, is seeking to quantify and reduce its impact on the climate, and in November pledged to slash its scope 1 […] February 7, 2025
Analysis Banking & Finance Gulf mid-market mergers flourish as economy matures International private equity companies are increasingly keen to buy mid-sized Gulf companies as the regional economy matures and GDP growth elsewhere falters, a corporate adviser tells AGBI. Other factors, such as Gulf family conglomerates seeking to narrow their business focus, are also spurring a rise in mergers and acquisitions, says James Jarvis, a director at […] February 3, 2025
Manufacturing Gulf ceramics makers poised for 2025 rebound Following a turbulent 2024, the Gulf’s listed ceramics makers should perform better this year thanks to lower customs duties, rising demand for their products and fewer Red Sea shipping disruptions. For equity investors, Oman’s Al Anwar Ceramic Tiles and the UAE’s RAK Ceramics provide a play on the Gulf’s rising population and mega infrastructure spending, […] January 30, 2025
Banking & Finance Emirates NBD shares tumble as dividend proposal disappoints Emirates NBD shares tumbled on Wednesday after Dubai’s biggest bank announced a lower dividend for 2024, despite its annual profit rising 7 percent year on year. The bank, which is majority owned by Dubai government institutions, proposed a dividend of AED1 ($0.27) per share, down from AED1.2 per share in 2023. Shares fell 9.3 percent […] January 29, 2025
Analysis Health Saudi privatisation push fortifies healthcare companies The revenues of listed Saudi healthcare companies should rise more quickly than the broader stock market thanks to government efforts to increase the private sector’s involvement, analysts have said. Nine-month profits have risen for 10 of the 11 companies analysed by AGBI, with eight posting increases of at least 10 percent. Almoosa Health was the […] January 29, 2025
Health SMC Healthcare expects swift profitability from new hospitals SMC Healthcare is building three new hospitals in Riyadh that should break even within three to four years, the Saudi company’s chief executive, Bassam Chahine, has told AGBI. The three hospitals will more than double SMC’s bed count to about 1,200 as it seeks to address healthcare supply shortfalls in the kingdom. Saudi Arabia requires […] January 23, 2025
Construction German company to assess proposed Spain-Morocco tunnel A German-owned company has been awarded a contract to conduct a feasibility study on building an undersea railway tunnel between Morocco and Spain, the latest indication that the long-stalled plan could become reality. If built, the tunnel would be one of the longest of its kind worldwide and would make transporting goods and people between […] January 22, 2025
Banking & Finance Dubai’s Mashreq enters Oman’s growing banking sector Mashreq, the UAE’s fifth largest bank by assets, has launched operations in Oman in what it says is a strategic move to support the sultanate’s economic diversification plans. Oman’s banking industry has more than doubled in size since 2013 but may lack the scale to meet state financing needs, experts told AGBI last October, with […] January 21, 2025
Analysis Markets Non-GCC institutions increase holdings of Kuwaiti stocks Non-GCC foreign institutions are net buyers of Kuwaiti equities – but active Western investors remain reluctant to hold its blue-chip stocks because of limited progress in diversifying the country’s economy. Nearly 69 billion shares were traded on Kuwait’s bourse last year, a total only bettered by the Saudi and Abu Dhabi exchanges within the six-nation […] January 21, 2025
Analysis Sustainability Companies scramble to meet UAE carbon emissions laws UAE companies have less than six months to comply with the country’s new emissions laws, but experts warn that some details are still unclear and a proposed carbon credit trading system may not meet its goals. The UAE introduced two pivotal pieces of environmental legislation last year. Cabinet Resolution No 67 on carbon credits came […] January 20, 2025
Analysis Banking & Finance Problem loans soar at Qatar National Bank’s Turkish unit Qatar National Bank (QNB), the Middle East and Africa’s largest lender by assets, this week reported another solid set of annual earnings. Yet within its financials lurks a potentially worrying statistic: rising loan defaults by consumers and small companies. As the Qatari government’s lender of choice – the state owns half the bank – QNB […] January 16, 2025
Analysis Banking & Finance Strong post-IPO performance bodes well for Saudi flotations Recently floated Saudi Arabian companies have thrived since listing on Riyadh’s bourse, thanks in part to astute pricing of initial public offerings and foreign institutional investors’ growing participation. Since the start of 2024, there have been 14 IPOs in Saudi Arabia that raised more than $100 million, according to data compiled by AGBI and London […] January 14, 2025
Banking & Finance Qatar National Bank reports strong profit growth Qatar National Bank, the Middle East and Africa’s largest lender by assets, reported a 11 percent rise in fourth-quarter profit on Monday as net interest and fee income increased. QNB, which is 50 percent owned by Qatar’s government, dominates the country’s banking sector and has sizeable operations in Egypt and Turkey. It made a fourth-quarter […] January 13, 2025
Analysis Transport Ineos and Porsche diverge on Middle East’s EV potential Ineos Automotive, the UK carmaker backed by billionaire Sir Jim Ratcliffe, is considering launching its Fusilier electric vehicle in the Middle East after encountering difficulties with governments across Europe. However other industry players such as Porsche remain cautious about the rollout of EVs in the region, with infrastructure remaining a central problem. London-based Ineos spent […] January 12, 2025
Finance Saudi Arabia’s PIF invests $200m in JP Morgan fund Saudi Arabia’s Public Investment Fund has invested $200 million in a recently launched exchange-traded fund that tracks dollar-denominated bonds and sukuk issued by the kingdom’s government and quasi-state entities. The JP Morgan Saudi Arabia Aggregate Bond UCITS ETF, created in mid-December, is the first internationally listed fixed-income Saudi Arabian ETF. As such, it “further deepens […] January 9, 2025
Economy Trump tariffs could hit foreign investment, Oman warns Oman’s buoyant non-oil sector will help the sultanate’s economy expand this year at nearly twice the rate of 2024, its sovereign wealth fund has forecast. However, the fund warned that US president-elect Donald Trump’s plans to implement tariffs on its trading partners could hamper ambitions by the sultanate to increase foreign direct investment and reduce […] January 9, 2025
Markets Bahrain bourse launches incentive scheme to revive trading Bahrain Bourse will introduce various incentives next month to try to boost trading on a market that accounts for less than one-thousandth of daily turnover on Gulf stock exchanges. The scheme, which begins on February 2, aims to improve trading activity and increase the number of institutions investing in Bahraini stocks. Its launch comes amid […] January 8, 2025
Analysis Finance Private companies lead Gulf IPOs to raise $12bn in 2024 Gulf initial public offerings raised a combined $12.1 billion last year as companies across myriad sectors including retail, healthcare, energy and financial services went public, deepening and broadening the region’s stock markets. High subscription levels for 2024’s diverse listings demonstrate strong investor interest in gaining exposure to the Gulf’s oil and non-oil economies. There were […] January 7, 2025
Analysis Markets Investor demand lowers yield on China’s dollar bonds Strong investor demand has lowered the yield on Chinese dollar bonds originally sold in Riyadh last November to below those of United States’ 10-year treasuries. This negative spread indicates pent-up demand for similar Chinese paper and could lead Beijing to sell more debt in Saudi Arabia, which is China’s second-largest oil supplier. In mid-November, China […] January 6, 2025
Analysis Markets Low spreads propel UAE dollar bond issuance to four-year high UAE dollar bond sales in 2024 have hit the highest annual total in at least four years, as corporate and government bodies take advantage of historically low spreads. Issuance in 2025 may reach similar levels, observers believe, as issuers refinance maturing debt. Fifty separate UAE dollar-denominated bond issuances totalled $37.9 billion in the year to […] December 31, 2024
Analysis Markets Expect a more subdued Dubai bourse in 2025 Following a stellar 2024, Dubai’s index is likely to join other Gulf bourses in experiencing a more subdued 2025. Dubai’s growing population, record tourism and trade revenues and a near-doubling of residential property prices since January 2021 helped to propel the emirate’s bourse to a 10-year peak last week. The benchmark has since retreated slightly […] December 25, 2024
Analysis Markets Talabat and Lulu post-listing slump dims allure of UAE IPOs Talabat and Lulu Retail Holdings were the UAE’s biggest initial public offerings (IPOs) in 2024, raising $3.75 billion amid huge investor demand. But the stock prices of both companies have slid since listing on the Dubai and Abu Dhabi bourses respectively, threatening investor confidence in future UAE flotations involving privately run companies. It has also […] December 23, 2024
