Retail UAE enforces new rules for buy-now-pay-later operators Updated regulations for buy-now-pay-later service providers and other finance companies providing short-term credit facilities have been introduced by the Central Bank of the UAE. Buy-now-pay-later (BNPL), a business model that allows consumers to make immediate online purchases and spread their payments over interest-free instalments, has grown in popularity in the Gulf post Covid-19. Last month, […] January 2, 2024
Banking and Finance Investment funds circle distressed companies Investment funds that bet on troubled companies are predicting a rise in Gulf businesses falling into distressed debt as global economic strains intensify. Pockets of financial distress are beginning to emerge in the region, driven by high interest rates, sluggish growth and escalating inflation, industry experts say. Blantyre Capital, a UK-based asset manager that focuses […] January 2, 2024
Finance Abu Dhabi’s IRH to invest $1.1bn in Zambia copper mines UAE-based International Resources Holdings (IRH) will invest $1.1 billion as a strategic equity partner in Zambia’s Mopani Copper Mines (MCM). The investment will fund Mopani’s working capital, business expansion plan and pay off part of the $1.5 billion debt owed to previous owner Glencore, state-owned ZCCM Investments Holdings (ZCCM-IH) said in a statement. The Abu […] December 25, 2023
Video length: 05:38 Finance Cakes, crypto and the sun – best video moments of 2023 From top business leaders to expert analysts, AGBI has spoken to them all over the past 12 months. Watch our video round-up above to find out who gave us these memorable quotes … “The bigger the cake, the bigger the problem.” “Your long-term asset in this region is not the oil under the ground, it’s […] December 25, 2023
Logistics Shipping insurance rates rise on Red Sea crisis Insurance rates for shipping companies operating in the Red Sea are likely to rise further, according to industry experts, as the area continues to be the target of terrorist attacks by the Houthi militia. Some of the biggest operators in the industry, including CMA CGM of France, MSC of Switzerland and A.P. Moller-Maersk of Denmark, […] December 24, 2023
Finance OpenAI in talks with Abu Dhabi’s G42 for up to $10bn funding US-based artificial intelligence company OpenAI has held talks to raise funding for a new chip venture with Abu Dhabi-based G42, Bloomberg reported, citing informed sources. The AI startup has discussed raising between $8 and $10 billion from G42, the news agency said, adding that it was unclear whether the chips venture and wider company funding efforts were […] December 24, 2023
Finance Taqa secures funding for $444m desalination project Abu Dhabi National Energy Company (Taqa) has secured finance for its AED1.6 billion ($444 million) low-carbon intensive Shuweihat 4 reverse osmosis seawater desalination project (S4 RO). The project was developed by Abu Dhabi’s Emirates Water and Electricity Company (EWEC) and Spain’s GS Inima, and is funded (71 percent) through debt financing from both local and […] December 24, 2023
Real Estate Dubai’s Union Properties settles $188m bank debt Dubai developer Union Properties has repaid debts worth up to AED875 million ($187.6 million) to a “national bank”, according to a bourse filing, as efforts to restructure the company continue. Union Properties, best known for its Motor City development in the emirate, announced the debt payment following a board meeting on Thursday and said the […] December 22, 2023
Finance UAE growth forecast revised upward to 5.7% in 2024 The Central Bank of the UAE has revised its forecast for economic growth next year to 5.7 percent, up from an earlier projection of 4.3 percent. The overall GDP is forecast to grow by 3.1 percent in 2023, the UAE state-run Wam news agency reported, citing the central bank report. Non-oil GDP will grow 5.9 […] December 22, 2023
Finance Egypt keeps interest rates steady as GDP growth slows Egypt’s central bank kept its overnight interest rates steady as economic growth in the north African country slowed in the second quarter of 2023. The central bank’s monetary policy committee (MPC) maintained the deposit rate stable at 19.25 percent and the lending rate at 20.25 percent, the apex bank said in a statement. The median […] December 22, 2023
Economy Egypt to receive half EBRD regional funding in 2024 Egypt will receive the lion’s share of the European Bank for Reconstruction and Development’s regional funding in 2024, having accounted for about 55 percent of its funds this year, the regional head of the EBRD has told AGBI. “Egypt is by far our largest country of operation in the region and will account for more […] December 21, 2023
Finance Turkey secures $100m for post-quake reconstruction The Industrial Development Bank of Turkey (TSKB) has secured a $100 million loan from the Jeddah-based Islamic Development Bank (IsDB) Group to reconstruct earthquake-affected regions. The financing from the IsDB Group will support private sector investments in 17 earthquake-affected provinces. The loan will play an important role in fostering the sustainable economic recovery of the […] December 21, 2023
Finance Egypt raises $800m from stake sale in historic hotels The Sovereign Fund of Egypt has signed an $800 million deal to sell a stake in seven historic hotels to Arab Company for Tourism and Hotels Investments (Icon), a subsidiary of Cairo-based Talaat Moustafa Group (TMG). Icon has acquired a 39 percent stake in Legacy Hotels, with the option to subscribe to a capital increase, […] December 21, 2023
Finance Bahraini fund in talks to take full ownership of McLaren Bahrain’s sovereign fund is nearing a deal to take full control of the British supercar maker McLaren Group, according to a media report. Mumtalakat Holdings, which holds a 62.55 percent stake in McLaren, is in talks to buy the 20 percent stake held by minority shareholders and convert their equity into warrant-like instruments, Sky News reported. […] December 20, 2023
Analysis Banking and Finance Mena remittances fall as Egyptians swerve official channels Remittances to Middle East and North African countries are forecast to fall by 5.3 percent to about $61 billion in 2023. The drop in the World Bank’s figures is driven by a sharp decline in recorded money transfers to Egypt, which is the region’s largest recipient. A “large part of remittances” to Egypt probably went […] December 19, 2023
Retail Sama issues regulations for growing BNPL sector The Saudi Central Bank (Sama) has issued new rules covering the rapidly expanding buy-now, pay-later (BNPL) retail sector, which analysts predict will double in size to $2.7 billion in annual transactions by 2028. Sama said it was issuing the regulations to ensure sustainable growth, transparency and consumer rights in the BNPL market, as part of […] December 18, 2023
Renewable Energy Digital platform targets Gulf green energy deal-making A new digital platform aims to facilitate deal-making between institutional investors and deal sponsors as Gulf states ramp up investment in green energy projects both at home and abroad. “When executives announce a pledge of X billion investment, and then start thinking, ‘Okay, how do we actually put that to work?’, they can go onto […] December 18, 2023
Trade ADQ and Azerbaijan invest in $1bn joint venture Abu Dhabi-based ADQ has announced a $1 billion joint venture with Azerbaijan’s sovereign wealth fund to invest in major sectors. The JV with Azerbaijan Investment Holding will focus on agriculture, technology, pharmaceuticals and energy infrastructure. Investments will primarily be concentrated in Azerbaijan, the UAE and Central Asia, with the potential to expand to other countries, […] December 18, 2023
Tech Saudi Arabia ‘leads in luring venture capital to tech’ Saudi Arabia has become a regional centre for venture capital in the tech sector, a government minister told a technology conference in Riyadh this week. “The kingdom has become part of the fabric of the global digital economy,” Mohammed Alrobayan, deputy minister of communications and IT, told the techXpand forum. “Testament to this is the […] December 18, 2023
Finance Egypt to restructure debt in 2024, says Morgan Stanley Egypt is expected to begin a debt restructuring plan next year, because of rising borrowing costs, Morgan Stanley said in a research note. The country has sufficient reserves to meet its upcoming external debt obligations in 2024, with any potential restructuring efforts expected to be “proactive”, Egypt Today newspaper reported, citing the US investment bank. […] December 15, 2023
Real Estate ADCB sells 80% stake in property unit for $161m Abu Dhabi Commercial Bank (ADCB) has agreed to sell an 80 percent stake in its wholly-owned property management subsidiary, Abu Dhabi Commercial Properties (ADCP), for AED591 million ($160.92 million). The agreement was signed with Nine Yards Plus Holding, the real estate subsidiary of Abu Dhabi-based EIH Ethmar International Holding (EIH), the bank said in a […] December 15, 2023
Banking and Finance Saudi Arabia seals $11bn syndicated bank loan Saudi Arabia has concluded an $11 billion syndicated loan arranged from a group of lenders to help fund its vast infrastructure developments in what an adviser to the agreement describes as the largest government loan worldwide this year. The 10-year facility is also the biggest loan to any borrower in Europe, the Middle East and […] December 14, 2023
