Banking and Finance SNB plans growth despite Credit Suisse losses Saudi National Bank has said its growth strategy will not be impacted by the UBS takeover of beleaguered rival Credit Suisse, despite analysts predicting “heavy losses” for Gulf backers. SNB is joined by Qatar Investment Authority and Saudi Arabian conglomerate Olayan Group, who all have varying levels of interest in the 167-year-old Swiss bank. Rohit […] March 20, 2023
Banking and Finance Central banks try to calm markets after UBS buys Credit Suisse Some of the world’s largest central banks came together on Sunday to stop a banking crisis from spreading as Swiss authorities persuaded UBS Group AG to buy rival Credit Suisse Group AG in a historic deal. UBS will pay 3 billion Swiss francs ($3.23 billion) for 167-year-old Credit Suisse and assume up to $5.4 billion […] March 20, 2023
Banking and Finance Turkic nations to set up new investment support fund The Organization of Turkic States (OTS) is planning to establish a fund to boost economic integration among the member countries, said Turkish President Tayyip Erdogan. The deal was finalised last week on the sidelines of the extraordinary summit of the OTS leaders in Turkey’s capital Ankara, Daily Sabah newspaper reported. “The signing of the founding agreement of […] March 19, 2023
Banking and Finance S&P and Moody’s stay ‘positive’ on Saudi Arabia’s non-oil reforms S&P Global has raised its sovereign credit ratings on Saudi Arabia to A/A-1, with a stable outlook. The upgrade results from the kingdom’s significant reform efforts in recent years, structural improvements pushing non-oil sector growth, improving public finance management and maintaining a balanced public debt level. The kingdom’s real GDP growth stood at 8.7 percent […] March 19, 2023
Banking and Finance UK drops plan to tax sovereign wealth funds British finance minister Jeremy Hunt has dropped a plan to tax sovereign wealth funds investing in Britain, according to a government document. The report, detailing the measures in a budget plan announced by Hunt on Wednesday, said “the government has carefully considered” responses to its consultation on the immunity of sovereign funds from direct taxation. […] March 19, 2023
Banking and Finance A make-or-break weekend for Credit Suisse Credit Suisse Group AG chief financial officer Dixit Joshi and his team will hold meetings over the weekend to assess strategic scenarios for the embattled Swiss bank as it enters a make-or-break weekend. Credit Suisse was thrown a $54 billion lifeline by the Swiss central bank on Thursday to shore up liquidity after a slump […] March 19, 2023
Banking and Finance SVB collapse may boost UAE startup business for neobanks One thing is more certain than not in the ongoing confusion caused by last week’s Silicon Valley Bank collapse: traditional lenders in the Gulf are likely to make it even more difficult for UAE startups to open bank accounts and borrow money. Emerging digital lenders in the region are hoping that this creates a big […] March 17, 2023
Banking and Finance GCC lenders can withstand US contagion risk GCC lenders are well equipped to withstand the current crisis in the world’s banking sector, according to experts from ratings agency S&P Global. The turbulence in the industry over the last seven days – which has seen the high-profile collapse of Silicon Valley Bank (SVB) and Signature Bank in the US, and the bailout of […] March 17, 2023
Opinion Banking and Finance Why blockchain could have saved Silicon Valley Bank Banks must be trusted, but trust requires transparency March 17, 2023
Banking and Finance Abu Dhabi fund to invest $500m in Indian eyewear startup The UAE’s sovereign fund Abu Dhabi Investment Authority (ADIA) will invest $500 million in Lenskart, becoming the largest stakeholder in the India-based eyewear retailer. The companies have signed a definitive document through which ADIA’s wholly owned subsidiary will route the investment by purchasing both primary and secondary shares in Lenskart. The deal is subject to statutory and regulatory approvals. The […] March 17, 2023
Banking and Finance Saudi National Bank has liquidity to withstand Credit Suisse shock Saudi National Bank has enough liquidity to withstand any losses arising from the troubled Credit Suisse, according to a leading economist. SNB, the kingdom’s biggest lender, took a stake of almost 10 percent in Credit Suisse last year after it participated in the bank’s $4.3 billion capital raise. It became its largest shareholder, with a […] March 17, 2023
Banking and Finance Burger Index raises $1.3m as Gulf F&B sector is hungry for data Food and beverage data analytics platform Burger Index has raised $1.3 million to cater to rapidly growing demand across the GCC. The Madrid-based firm’s recent funding round was led by Flat6Labs, the Cairo-based seed and early-stage venture capital firm. Launched in January 2022, Burger Index provides market, competition and consumer intelligence in real time to […] March 16, 2023
Banking and Finance Saudi minister feels PIF may not get part of $28bn budget surplus Saudi Arabia’s finance minister has said a decision on allocating last year’s budget surplus of almost $28 billion will soon be finalised, with the bulk of the surplus expected to boost reserves. Mohammed Al Jadaan told Reuters that a decision will be made within two weeks and that he does not think the Public Investment […] March 16, 2023
Banking and Finance Saudi to speed up investments in Iran after diplomatic pact Saudi Arabia’s finance minister Mohammed Al Jadaan has said that Saudi investments into Iran could happen “very quickly” following an agreement to restore diplomatic ties. “There are a lot of opportunities for Saudi investments in Iran. We don’t see impediments as long as the terms of any agreement would be respected,” Al Jadaan said during […] March 16, 2023
Banking and Finance Credit Suisse intends to borrow up to $54bn to boost liquidity Credit Suisse Group AG said on Thursday it intended to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called “decisive action” to boost its liquidity. Swiss regulators pledged a liquidity lifeline to Credit Suisse in an unprecedented move by a central bank after the flagship Swiss […] March 16, 2023
Banking and Finance No more investment in Credit Suisse, says Saudi National Bank Saudi National Bank has ruled out any further investment in Credit Suisse as the troubled Swiss bank shed a quarter of its value on Wednesday. Saudi National Bank (SNB) chairman Ammar Al Khudairy said during an interview with Bloomberg TV that investing any more would then increase its current 10 percent stake in the the […] March 15, 2023
Banking and Finance Cairo VC firm launches $95m African startup fund Venture capital firm Flat6Labs has announced a $95 million seed fund to grow early-stage African tech startups. The African Seed Fund (ASF) will invest in more than 160 companies over the next five years. It will pay particular attention to sectors that accelerate digital inclusion through information technology, as well as healthtech, fintech, edtech, greentech, […] March 15, 2023
Banking and Finance UAE and Kuwait banks least at risk from energy transition UAE and Kuwait banks are the least exposed in the region to the impact of the energy transition away from fossil fuels and towards renewable sources such as wind and solar. The new research comes as the UAE’s top banks saw profits rise by nearly one-third last year. As part of the global climate change […] March 15, 2023
Banking and Finance Abu Dhabi’s AI firm buys stake in TikTok owner at $220bn valuation Abu Dhabi-based artificial intelligence firm G42 has acquired an over $100 million stake in ByteDance, valuing the Chinese owner of TikTok at $220 billion, Bloomberg News reported, citing informed sources. G42, owned by Sheikh Tahnoon bin Zayed Al-Nahyan, who is the UAE’s national security adviser, bought the stake from existing investors in recent months through […] March 15, 2023
Banking and Finance SVB collapse unleashes Treasury volatility and rattles investors Extreme volatility is rattling US Treasury markets in the wake of the collapse of Silicon Valley Bank, and investors fear a prolonged bout of gyrations before calm returns to bond markets. One measure of expected volatility in US Treasuries – the Ice BoFA Move Index – has surged past its Covid-era high and now stands […] March 15, 2023
Banking and Finance Turkey’s central bank receives $5bn deposit from Saudi Arabia A deposit of $5 billion from the Saudi Fund for Development (SFD) entered the accounts of the Turkish Central Bank on Monday. The central bank declined comment on the issue. Saudi minister of finance Mohammed Bin Abdullah Al-Jadaan had announced his country’s intention to make the deposit in December and the SFD said on March […] March 15, 2023
Banking and Finance Israel says immediate liquidity risk averted after SVB collapse A panel formed by Israel’s finance ministry to assess the fallout from the collapse of Silicon Valley Bank (SVB) has determined that the immediate liquidity risk has been averted. The ministry in a statement cited a decision by US authorities to back accounts – even those uninsured – at the bank, which has been an […] March 15, 2023
