Sustainability Spacecraft that spots Gulf gases wins extra funding A Bahraini-British project to develop a spacecraft that will monitor Gulf greenhouse gas emissions from space has been awarded a further £1.4 million ($1.8 million) grant by the UK Space Agency. The partnership between the Bahrain National Space Science Agency, YBA Kanoo Group in Manama, and the University of Leicester and Geospatial Insight of Birmingham […] April 10, 2024
Analysis Economy US rate cuts to ease Turkey’s debt and benefit exports For Turkey, long-anticipated US interest rate cuts could be more significant in terms of stimulating growth in its major export markets than easing the costs of servicing its spiralling foreign currency debt. Turks have faced a deepening cost of living crisis as veteran president Recep Tayyip Erdoğan’s unorthodox economic policies exacerbated a collapse in the […] April 9, 2024
Analysis Economy Lebanon needs more than US rate cuts to turn its economy around Probable US interest rate cuts could help Jordan and Morocco attract additional foreign investments as well as easing their already manageable loan repayment commitments, experts predict, but Lebanon’s financial problems remain so acute that a reduced debt burden will make little difference. US 10-year treasury yields – the most important determinant of government borrowing conditions […] April 9, 2024
Trade Finance platform aims at $2.5trn trade funding hole A blockchain-based platform that lets institutions and wealthy individuals provide finance to importers and exporters for returns of up to 9 percent a year could help fill a multi-trillion-dollar hole in international trade, it says. In trade finance, the involvement of third-party financial companies removes payment and supply risks for sellers and buyers respectively. Historically, […] April 8, 2024
Analysis Economy Egypt will still feel the heat despite US rate cuts Likely US interest rate cuts will lower Egypt’s interest repayment costs on its vast public debts. But this will do little to ease pressure on the country to sell national assets in order to reduce its overall borrowings. Egypt’s public external debt – money borrowed in foreign currencies – was $110 billion in 2022, having […] April 5, 2024
EXCLUSIVE Manufacturing Stellantis boss hails ‘massive untapped potential’ in Gulf Samir Cherfan tells AGBI about his plans to lift car sales across the GCC April 4, 2024
Analysis Banking & Finance Reasons to be cheerful for UAE banks with Egyptian subsidiaries Despite the plunge in the value of the Egyptian pound, UAE banks’ subsidiaries in the country remain a strong long-term asset, analysts have told AGBI. Three Emirati banks – Abu Dhabi Islamic Bank, First Abu Dhabi Bank and Dubai’s Emirates NBD – have acquired Egyptian lenders. The pound-to-dollar exchange rate stood at about EGP31 at […] March 28, 2024
Analysis Markets Emerging market ETFs look light on Saudi engagement Exchange-traded funds (ETFs) that track the MSCI Emerging Markets Index are underexposed to Saudi Arabia but are more closely aligned to weightings of the other three Gulf countries included in the benchmark, an AGBI analysis shows. The inclusion of four Gulf countries in the MSCI Emerging Markets Index over the past decade has led to […] March 26, 2024
Analysis Markets Gulf weightings increase on MSCI Emerging Markets The MSCI Emerging Markets Index has increased the weightings of Gulf countries since their inclusion on the benchmark, as regulators loosened rules and companies ease foreign ownership restrictions to make it easier to invest. According to MSCI, more than $1.3 trillion in assets under management (AuM) was benchmarked against its emerging markets indexes as of […] March 21, 2024
Analysis Banking & Finance Liquidity strain set to push Saudi banks to seek more funds Saudi Arabian banks’ loan books are set to expand faster than their deposits again in 2024, raising costs and pushing lenders to seek additional funding sources. However, the kingdom’s banks are expected to increase their annual profits this year as government-led infrastructure projects and likely cuts to benchmark interest rates boost margins for its two […] March 20, 2024
Analysis Trade Weakening dollar should strengthen Gulf exports The US dollar will fall against the euro and Chinese yuan, economists are forecasting, reducing the purchasing power of Gulf currencies but making the bloc’s exports more competitive. A weaker dollar will raise the relative cost of imports from China and much of the European Union, but other factors are more likely to affect inflation […] March 19, 2024
Analysis Banking & Finance UAE banks struggling to match 2023’s record profits Banks in the UAE will struggle to repeat last year’s record annual profits in 2024, after the introduction of corporate tax, expected US interest rate cuts and the likely absence of the bumper one-off gains that bolstered their bottom line in 2023. However, a slight decline in profitability would still represent a strong performance by […] March 15, 2024
Banking & Finance Gulf wealth funds put investing in US well ahead of China Most sovereign wealth funds in the Gulf remain heavily invested in the US, while China represents a much smaller part of their portfolios, data from the consultancy Global SWF shows. The data also shows that the portfolios of Gulf sovereign wealth funds vary widely in terms of their geographical distribution. This is partly a result […] March 8, 2024
Banking & Finance Morgan Stanley latest US bank to set up in Abu Dhabi Morgan Stanley is opening an office in Abu Dhabi Global Market in a bid to win more business in the Middle East and North Africa. The latest international bank to set up shop in the UAE capital’s financial centre, Morgan Stanley already has offices in Dubai, Riyadh and Doha. The lender, ranked 31st worldwide in […] February 29, 2024
Analysis Banking & Finance Egyptian economic woes to prolong startup funding slump Egyptian startups face another tough year finding funding, as the prospect of further currency devaluations and stubbornly high inflation deter investors, despite the attractive demographics of the Arab world’s most populous nation. The number of venture capital deals in Egypt in the first nine months of 2023 was 47, down by nearly two thirds on […] February 26, 2024
Analysis Banking & Finance VC firms ready for Mena investment rebound Venture capital companies expect investment activity in the Middle East and North Africa to rebound this year after a slump in 2023, with startups in Saudi Arabia and the United Arab Emirates likely again to dominate dealmaking. In 2023 there were 517 VC deals in the Middle East, North Africa and Turkey. They raised a […] February 26, 2024
Banking & Finance HSBC’s Middle East unit increases lending in Q4 HSBC’s Middle East subsidiary expanded its loan book in the fourth quarter, outperforming the bank’s other units. Customer lending at HSBC Bank Middle East was $20 billion on December 31, up $1.6 billion, or 8 percent, on three months earlier. Worldwide, HSBC’s customer lending fell by 2 percent over the same period. The Middle East […] February 21, 2024
Banking & Finance VC firm Shorooq focuses on AI, biotech and gaming Venture capital company Shorooq Partners will target companies specialising in sectors such as artificial intelligence, biotech and gaming, a senior executive told AGBI. Shorooq is based in Abu Dhabi and manages about $350 million in assets and invests in startups in the Middle East and North Africa and beyond. It is focused on on fintech […] February 20, 2024
Analysis Markets Mena VC exit route remains uncertain in young sector The Mena region’s venture capital industry has blossomed over the past decade as firms have raised $14.5 billion from investors since 2015 and spent a similar amount buying into early-stage companies over the same period. Yet returns on these outlays remain uncertain, and the sector is still in its infancy. From 2015 to September 30 […] February 20, 2024
Analysis Markets Tough IPO rules deter UAE tech startups from listing The UAE’s burgeoning startup sector has helped it become a centre for tech innovation, yet almost none of these fledgling companies have gone public due to stock market regulations. Since 2021 the Dubai Financial Market (DFM) and Abu Dhabi Securities Exchange (ADX) have welcomed a flurry of initial public offerings as part-privatised government-related companies diversify […] February 19, 2024
Tech Abu Dhabi launches tech fund for developing countries Abu Dhabi has launched a $200 million tech investment platform that it hopes will help developing countries catch up with wealthier nations. The emirate’s Advanced Technology Research Council (ATRC), which unveiled the initiative at the World Government Summit in Dubai, will fund “resource and research costs” in six sectors, transport, healthcare, aerospace and space, food […] February 13, 2024
Markets Emirates NBD tops Gulf dividend yield rankings Emirates NBD, Dubai’s largest bank, has so far topped the Gulf list of dividend yield pay-outs awarded to shareholders in 2023, Refinitiv data shows. The government-controlled lender, whose shares are up 27 percent in the past 12 months, provides a dividend yield of 6.9 percent based on its closing stock price of February 8. The […] February 9, 2024
