Renewable Energy Acwa Power to raise $2bn in rights issue Saudi Arabia’s green energy developer, Acwa Power, plans to raise SAR7 billion ($1.9 billion) in new capital through a rights issue to help treble its assets under management by 2030. The company, which is owned by the government’s Public Investment Fund, said the new shares issued to current shareholders would allow Acwa to “anchor its […] June 11, 2024
Analysis Finance Agriculture startups failing to cultivate VC interest Agriculture technology founders in the Gulf are having to resort to alternative sources of funding, as interest from venture capital entities dries up. The region is following a global trend. Startups in so-called “agtech” cumulatively raised $1.2 billion across 161 deals in the first quarter of this year, down almost 26 percent and 20 percent […] June 10, 2024
Opinion Banking and Finance The Gulf is ripe for fintechs to serve the underserved Expanding financial inclusion offers an opportunity for savvy innovators June 7, 2024
Finance Drake & Scull wins $10m appeal in Dubai court Drake & Scull International (DSI) has won an appeal to receive compensation worth AED36.7 million ($9.99 million) from a major company in Dubai. The compensation includes bank guarantees, the Dubai Financial Market-listed construction company said on Thursday. In addition, it will receive fees, interest and expenses in the case as per the judgement by Dubai […] June 7, 2024
Finance Qatari wealth fund targets expansion in Japan Qatar Investment Authority (QIA), the country’s sovereign wealth fund, is exploring new opportunities in Japan, according to a media report. “It’s a key market for us,” Abdulla Ali Al-Kuwari told Nikkei, a financial daily in Japan. The fund’s investments in Japan have “more than doubled” after it opened an office in Singapore in 2021, he […] June 6, 2024
Banking and Finance Stable lira and bonfire of red tape help Turkish banks Turkish banks are under less operational pressure thanks to a more stable lira, simpler rules and policymakers’ swing back towards economic orthodoxy, Fitch said on Wednesday. Analysts at the credit rating agency warned that rising funding costs would compress lenders’ net interest margins, however. Fitch has raised its long-term foreign-currency issuer default ratings for 18 […] June 6, 2024
Finance PIF appoints banks for its sterling debt offering The Public Investment Fund (PIF), Saudi Arabia’s largest sovereign wealth fund, has appointed banks to handle its new debt offering. Barclays, BNP Paribas, HSBC and J.P. Morgan have been mandated as joint global coordinators for the sterling-denominated dual-tranche notes, fixed income news service IFR reported. The 5-year and 15-year senior unsecured notes are part of […] June 4, 2024
Banking and Finance Turkey’s Koç ends talks to sell Yapi Kredi stake Turkey’s Koç Holding has confirmed that initial talks over the sale of a stake in Yapi Kredi Bank, the country’s fourth largest private bank in terms of assets, have been terminated. Yapı Kredi’s parent corporation, Koç, said last month it was in talks with the UAE’s First Abu Dhabi Bank (FAB) over the sale of a majority […] June 3, 2024
Finance UAE and Qatar in deal to avoid double taxation The UAE and Qatar have signed an agreement to prevent double taxation and curb fiscal evasion of income taxes. The agreement will enhance financial, economic, and investment partnerships between the two nations, UAE minister of state for financial affairs Mohamed Al Hussaini said. The move will bolster coordination and cooperation in tax matters, open up […] May 31, 2024
Finance Ministry issues record Saudi business licences in Q1 Saudi Arabia’s Ministry of Investment issued a record number of business licences in the first quarter of 2024, as the country tries to drum up foreign investor interest for its economic expansion plans. The ministry issued 3,157 licences, a 9 percent rise from 2,884 issued in the last quarter of 2023, which was the previous […] May 31, 2024
Banking and Finance Saudi Arabia issues $17bn Islamic bonds after early repayment Saudi Arabia has issued new sukuk (Islamic bonds) worth SAR64 billion ($17 billion) following the early purchase of over SAR63 billion of outstanding debt. The initiative aims to bolster the domestic market, the National Debt Management Centre (NMDC), which manages the Saudi government’s debt obligations and future maturities, said in a statement. The new sukuk […] May 31, 2024
Banking and Finance Saudi banks’ profits fall as interest margins are squeezed Combined profits in April at Saudi Arabia’s banks fell 3.3 percent compared with March, to SAR6.7 billion ($1.9 billion), the lowest monthly total since last November’s SAR6.1 billion, central bank data shows. Nevertheless, banks total profits for January to April was SAR27.4 billion, up from SAR24.8 billion for the same period in 2023, a report […] May 30, 2024
Finance Dubai wealth fund reports record net profit for second year running Investment Corporation of Dubai, the Dubai government’s main investment unit, has reported a record annual net profit. Earnings were bolstered by higher interest rates and a resurgent aviation sector. ICD owns Emirates and FlyDubai airlines, travel agency Dnata, Emirates National Oil Company (Enoc) and stock exchange operator Borse Dubai. NewsletterGet the Best of AGBI delivered […] May 29, 2024
Analysis Banking and Finance Digital lenders eager to tap into Egypt’s unbanked masses Egyptian banking history was made this month when Misr Digital Innovation (MDI) became the first Egyptian company to receive preliminary approval for a digital banking licence. MDI, a subsidiary of Banque Misr, will open Onebank – Egypt’s first digital bank – by the first quarter of next year at the latest. Experts predict many more […] May 29, 2024
Banking and Finance Saudi Arabia’s new sukuk order book hits $20bn Order books for Saudi Arabia’s $5 billion Islamic bond (sukuk) reached $20 billion, according to news report. The kingdom, the world’s top oil exporter, sold tranches of $1.25 billion, $1.5 billion and $2.25 billion, reported IFR, a London Stock Exchange Group publication. The bonds have durations of three, six and 10 years, respectively. NewsletterGet the […] May 29, 2024
Tech China’s Lenovo issues $2bn bonds to repay Saudi Alat debt China’s Lenovo Group has issued $2 billion in convertible bonds to Alat, a Public Investment Fund (PIF)-backed technology manufacturing company, to repay its existing debt and boost working capital. As part of the agreement, the Hong Kong-headquartered personal computer maker will open a new PC and server manufacturing facility and establish its Middle East and Africa […] May 29, 2024
Banking and Finance Wealthy Latin Americans more likely to invest in Middle East Wealthy Latin American families were more present as investors in the Middle East than those from other parts of the world in 2023, a global banking report says, but overall numbers are low and down from 2022. UBS bank’s Global Family Office Report for 2024 showed that Latin American families had placed 2 percent of […] May 28, 2024
Banking and Finance Bahraini power company completes $1bn refinancing Bahrain’s Al Dur Power & Water Company has closed a $1.2 billion refinancing facility provided by a syndicate of 17 local, regional and international banks. The kingdom’s largest power generation and water desalination company will use the funds to refinance its existing project-level debt. The refinancing facilities extend up to 11 years and include a […] May 27, 2024
Finance Saudi investors fined $1m for insider trading Saudi financial authorities have fined five investors and one company almost SAR5 million ($1.3 million) for insider trading and other capital market law violations, the latest in a series of crackdowns on corruption in the kingdom. The investors and the company, Erada and Riyada for Development and Commercial Investment, committed crimes including buying shares of […] May 27, 2024
Analysis Markets Bahrain tops dividend yields in mixed quarter for bourses First-quarter company earnings in the UAE, Bahrain and Oman were mixed across major economic sectors, with the four bourses trading at markedly varied valuations. As of March 31, Dubai and Bahrain had price-to-earnings ratios of 8.3 and 7.9 respectively, while Abu Dhabi’s was 19.9 and Oman’s 12.9, according to Kuwait’s Kamco Invest. Bahrain (7.7 percent) […] May 27, 2024
Banking and Finance Gulf banks face margin squeeze as funding costs rise Gulf banks are likely to offer more attractive rates on savings accounts to woo depositors, putting more pressure on lenders’ already tight net interest margins, a report suggests. The move towards higher interest rates for savers is predicted to become more pronounced as expectations of imminent rate cuts by the US Federal Reserve fade. Benchmark interest […] May 23, 2024
Finance Mubadala trims stake in US chipmaker GlobalFoundries Abu Dhabi sovereign wealth fund Mubadala Investment Company is offloading some of its holdings in chipmaker GlobalFoundries. A Mubadala subsidiary is offering to sell $950 million worth of GlobalFoundries shares, two years after the US semiconductor manufacturer went public on Nasdaq. Mubadala Technology Investment Company will receive the funds from the secondary public offering, which […] May 23, 2024
