Analysis Agriculture Saudi’s wealth fund enters $7.3bn camel dairy market Saudi Arabia’s Public Investment Fund has established a company to produce and distribute camel milk and other dairy products. Named Sawani, the company is intended to help PIF grow the kingdom’s camel farming industry, in line with Vision 2030 goals to expand the food and agricultural sectors. The global camel dairy market was estimated to […] July 20, 2023
Banking and Finance Saudi behind increase in foreign currency sukuk deals Saudi Arabia is driving a surge in foreign currency denominated sukuk deals in the Gulf, with analysts revising up their predictions for 2023. S&P Global is forecasting total global sukuk issuances of between $160 billion and $170 billion for 2023, up from their initial estimate of $150 billion. This increase is due in large part […] July 20, 2023
Banking and Finance UAE takes on New York and London in attracting hedge funds The UAE is fast emerging as an attractive alternative to traditional hedge fund centres, experts say, as five funds from the US and Hong Kong set up business in Dubai’s financial hub in the second quarter of 2023 alone. Although more established regions such as London and New York still dominate, the likes of Dubai […] July 20, 2023
Banking and Finance Romania looks to UAE to fund $7.3bn nuclear reactors Romanian state-owned nuclear power producer Nuclearelectrica’s two planned new reactors are expected to cost at least €6.5 billion ($7.29 billion), energy minister Sebastian Burduja said. He added that Nuclearelectrica was still negotiating, with a view to signing a deal later this year, with the Lavalin group, which owns the Candu (Canada deuterium uranium) technology already […] July 20, 2023
Banking and Finance Turkey’s monetary tightening faces funding setbacks Bankers warned on Wednesday that the effectiveness of recent monetary tightening in Turkey could be negatively impacted after funding conducted through open market operations (Omo) by the central bank turned negative for the first time in over a decade. The central bank has boosted its reserves by $20 billion since the beginning of June, mostly […] July 20, 2023
Banking and Finance US issues waiver for Iraq to pay Iran for electricity The United States on Tuesday moved to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the sweltering Iraqi summer. Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq – heavily dependent on Iranian […] July 19, 2023
Banking and Finance Abu Dhabi’s Masdar to raise $750m in green bonds Abu Dhabi renewable energy company Masdar is set to raise $750 million from a debut sale of green bonds that fetched more than $4.2 billion in demand, a bank document showed on Tuesday. The bonds launched at a spread of 115 basis points (bps) over US Treasuries from initial guidance of around 150 bps over […] July 19, 2023
Banking and Finance Saudi’s Almarai draws $4bn in sukuk orders Saudi Arabian food and beverage company Almarai is set to raise $750 million from a sale of 10-year Islamic bonds that drew over $4 billion in orders, fixed income news service IFR said on Tuesday. The sukuk launched at 145 basis points (bps) over US treasuries, IFR said, tightened from initial price guidance of around […] July 19, 2023
Banking and Finance Adnoc raises bid for Covestro to $12.4bn Abu Dhabi National Oil Company (Adnoc) has increased its takeover bid for German chemical producer Covestro AG to €11 billion ($12.4 billion), Bloomberg reported, citing informed sources. The Abu Dhabi energy firm’s latest proposal values Covestro at €57 per share, up from its first informal bid of €55 apiece. Reuters last month reported that the […] July 19, 2023
Banking and Finance Lebanon to phase out Sayrafa exchange platform Lebanon’s central bank will decommission the controversial exchange platform known as Sayrafa after governor Riad Salameh’s 30-year tenure ends this month, one of the institution’s vice governors told Reuters on Monday. Salim Chahine said the bank’s leadership was talking with government and parliament policymakers, as well as the International Monetary Fund (IMF), about the need […] July 18, 2023
Banking and Finance Oman’s OQGN to use $1.2bn for gas network expansion State-owned OQ Gas Networks (OQGN), the sole operator of the natural gas transportation network in Oman, has signed three financing agreements with 16 local and regional banks worth $1.2 billion. Collectively, the amount is one of the largest syndicates of Sharia-compliant financing in Oman. It will provide the company with capital in dual currencies – […] July 18, 2023
Banking and Finance Abu Dhabi’s Masdar hires banks for green bonds sale Abu Dhabi renewable energy company Masdar has hired banks to arrange a debut sale of green bonds, a bank document showed on Monday. Citi and First Abu Dhabi Bank are joint global coordinators, joined by BNP Paribas, HSBC, SMBC Nikko, Societe Generale and Standard Chartered as joint lead managers and joint bookrunners, a document from […] July 18, 2023
Banking and Finance South Korea warns of surge in household debts South Korea’s central bank said on Monday there was a need to manage financial stability in addition to price risks as the country’s high household debts have started to climb. “In terms of monetary policy, it should consider financial stability more actively to prevent excessive leveraging or risky asset investments when monetary policy is loose,” […] July 17, 2023
Banking and Finance Kuwait plans new fund to develop local economy Kuwait plans to establish a new sovereign fund to develop its local economy, spearhead mega projects and attract funds from foreign investors and the private sector, according to a government plan seen by Reuters on Sunday. The government has tasked the finance ministry and the Kuwait Investment Authority (KIA) with studying plans for the proposed […] July 17, 2023
Banking and Finance UAE and India agree to settle trade in local currencies The central banks of the UAE and India have signed a framework to promote using the rupee and dirham for cross-border transactions. The agreement was signed during a visit by Narendra Modi, India’s prime minister, to the Gulf state on Saturday. The two countries also decided to set up a real-time payment link to facilitate […] July 16, 2023
Banking and Finance Climate finance ‘not fit for purpose’, says Al Jaber Sultan Al Jaber, who is due to preside over the Cop28 conference later this year, has said climate finance in its current form “is not fit for purpose.” He called for the financial architecture’s “comprehensive transformation” instead of “piecemeal reform”, adding that special focus is needed to support “climate-positive development” across the global south. “Climate […] July 14, 2023
Infrastructure Egypt opens 17 infra projects for private sector investment Egypt has approved 17 infrastructure projects under its public-private partnerships (PPP) scheme, according to finance minister Mohamed Maait. The projects include three wastewater and industrial waste plants in Sadat, New Beni Suef and New Mansoura, and nine transformer plants and electrical grid projects in the New Administrative Capital, 6 October City and New Aswan City. […] July 14, 2023
Banking and Finance Turkey’s forex reserves rise to $13bn as lira support ends Turkey’s central bank’s net international reserves rose more than $3 billion to $13.17 billion in the week to July 7, continuing a strong rebound from record lows after the bank stopped using the reserves to support the lira. The central bank’s net reserves fell to $5.7 billion in the week to June 2, their lowest […] July 14, 2023
Banking and Finance Saudi developer Dar Al Arkan plans dollar sukuk Saudi Arabia’s Dar Al Arkan Real Estate Development Co has hired banks to arrange a planned sale of US dollar-denominated Islamic bonds, a bank document showed. The joint lead managers and bookrunners were due to hold fixed-income investor calls and meetings from Thursday. A benchmark-sized sale of senior unsecured sukuk maturing in February 2029 will […] July 14, 2023
Analysis Trade Pakistan looks to UAE for trade deals, not loan debts The UAE confirmed late on Wednesday it has deposited $1 billion in Pakistan’s central bank, a day after Saudi Arabia also transferred $2 billion. In addition to direct funding, the Islamabad government is aiming to attract multi-billion dollar investments from the UAE and other Gulf countries to create millions of new jobs after struggling with […] July 13, 2023
Banking and Finance UAE’s Agthia launches $54m fund for agritech startups UAE food and beverages firm Agthia Group has launched a AED200 million ($54 million) corporate venture capital fund to support agritech startups. Agthia Ventures, funded by Agthia and its parent company ADQ, will be jointly managed with Touchdown Ventures, a US-based operator of corporate venture capital programmes for blue-chip corporates that has more than 100 […] July 13, 2023
Banking and Finance Pakistan gets IMF aid as UAE deposits $1bn in central bank The UAE has deposited $1 billion in Pakistan’s central bank, finance minister Ishaq Dar said. “This inflow has further increased forex reserves held by State Bank of Pakistan and will accordingly be reflected in the forex reserves position for the week ending,” he said in a tweet. The announcement comes after Saudi Arabia deposited $2 […] July 13, 2023
