Banking and Finance SVB collapse likely to bring down Gulf interest rates The collapse of Silicon Valley Bank (SVB) and continuing concerns over the broader financial stability of the market could help to bring down interest rates across the Gulf. Following SVB’s demise, US interest rates fell sharply from 5.05 percent to 4.10 percent in just three days – a scale of drop only matched by events […] March 15, 2023
Banking and Finance Gulf edges closer to its first homegrown tech unicorn The Gulf region is two years away from realising its first tech unicorn, according to Mohammad Alblooshi, head of Dubai International Financial Centre’s Fintech Hive. Becoming a unicorn – a company with a valuation over $1 billion before being listed on the stock exchange – is the dream of many tech startups. In the fintech […] March 14, 2023
Banking and Finance New Silicon Valley Bank CEO is ‘conducting business as usual’ The new boss of Silicon Valley Bank, Tim Mayopoulos, on Monday told clients that the lender is open and conducting business as usual, according to a letter seen by Reuters. Earlier in the day, the US Federal Deposit Insurance Corporation had tapped former Fannie Mae head Mayopoulos as CEO of the newly created entity, named […] March 14, 2023
Banking and Finance Turkey’s current account deficit widens to $9.9bn in January Turkey’s current account deficit widened to $9.85 billion in January, data from the central bank showed, the highest level in four decades of available data, driven by a soaring energy bill and gold imports. It was the highest monthly deficit since 1984, the first year for which such data is available, according to central bank […] March 14, 2023
Banking and Finance Middle East awaits impact of Silicon Valley Bank crash The Middle East faces an anxious wait to fully understand the impact of the demise of Silicon Valley Bank (SVB). SVB Financial Group on Friday became the largest bank to fail since the 2008 financial crisis, roiling markets and leaving billions of dollars belonging to companies and individuals stranded. Most major Gulf stock markets fell […] March 14, 2023
EXCLUSIVE Banking and Finance BNY Mellon reports 245% rise in net flows into GCC equities BNY Mellon clients’ net investments in GCC shares rocketed by 245 percent from 2019 through to the end of 2022, America’s oldest bank told AGBI. Over this three-year period, the bank’s clients have poured $1.2 billion into Gulf equities, “outpacing emerging developed markets and the Eurozone significantly”. The New York-headquartered bank did not supply yearly […] March 13, 2023
Banking and Finance Nepal’s foreign reserves improve on remittances from Middle East Nepal’s gross foreign exchange reserves rose 10.2 percent to $10.50 billion in mid-February, boosted mainly by remittances from overseas, to a level that will cover about nine months of imports, the central bank said in a report. Reserves rose from $9.54 billion in mid-July 2022, as Nepalis working abroad sent money home, data showed. A […] March 13, 2023
Banking and Finance Kuwait central bank expects little SVB impact on local lenders Kuwait’s central bank said on Sunday there would be very little impact on local lenders from the collapse on Friday of Silicon Valley Bank (SVB). The Kuwaiti central bank governor said that the exposure of the local banks to SVB was very limited and that the banks assured him that their business would be barely […] March 13, 2023
World markets set for aftershocks as SVB collapse ripples out Markets were set for a bumpy ride this week as the fallout from collapsed startup-focused lender Silicon Valley Bank (SVB), the biggest US bank failure since the 2008 financial crisis, coincides with key economic data and policy meetings. S&P500 futures rose 1.4 percent after US authorities guaranteed SVB customers would have access to their deposits […] March 13, 2023
Banking and Finance UAE backs Qatar in hosting 2026 World Bank and IMF meetings The UAE will support Qatar as a potential host for the World Bank and International Monetary Fund (IMF) meetings in 2026 after withdrawing its own bid. The decision came during a phone call between UAE President Sheikh Mohammed bin Zayed Al Nahyan and Qatar’s Emir Sheikh Tamim bin Hamad Al-Thani, state news agency WAM reported. […] March 13, 2023
Banking and Finance World Bank member earmarks $50m for Jordan’s green projects International Finance Corporation (IFC), a member of the World Bank Group, will invest up to $50 million in a five-year bond issued by private sector bank Jordan Kuwait Bank (JKB) to fund green projects in the country. The financing comprises up to $36 million from IFC’s own account, a blended finance co-investment of up to $10 million […] March 13, 2023
Banking and Finance UAE remains on Financial Action Task Force grey list – for now Last month the Financial Action Task Force upheld the decision to keep the UAE on the grey list, a status it had assigned to it in March 2022. In its February ruling, the international watchdog dedicated to fighting financial crime said the UAE had made “significant progress” on three of seven recommendations to get off […] March 13, 2023
Oman to offer new mineral exploration blocks by Q1-end Oman’s ministry of energy and minerals is working on offering new mineral exploration blocks for investments in the first quarter of 2023. The ministry is currently in the final stage of negotiations with specialised companies on several concession areas, primarily focusing on developing potash ore and evaluation of lithium ore, Dr Salah bin Hafeez Al […] March 12, 2023
Banking and Finance Iran’s rial climbs 6% after accord to restore ties with Saudi Arabia The Iranian rial recouped some of its recent losses on Saturday, gaining more than six percent amid prospects of diminished regional tensions after Iran and regional rival Saudi Arabia agreed to resume diplomatic ties. Iran and Saudi Arabia agreed on Friday to re-establish relations after years of hostility that had threatened stability and security in […] March 12, 2023
Banking and Finance Sheikh Tahnoun named chair of Abu Dhabi wealth fund Sheikh Tahnoun bin Zayed Al Nahyan has been named chairman of Abu Dhabi Investment Authority as part of a shake-up of the UAE capital’s sovereign wealth funds. The country’s national security advisor, Sheikh Tahnoun is the brother of UAE president Sheikh Mohammed bin Zayed Al Nahyan, who took office last May. Founded in 1976, ADIA […] March 10, 2023
Banking and Finance Global banks look to fill ‘huge’ funding gap for Vision 2030 International banks have spotted an opportunity in Saudi Arabia to meet the “huge financing needs” of Vision 2030, according to an industry expert. Dr Mohamed Damak, senior director and financial institutions sector lead at S&P Global Ratings, told a media conference on Thursday that Saudi banks will continue to “grow tremendously” but the sheer size […] March 10, 2023
Banking and Finance Lebanese banks to resume strike on March 14 Lebanon’s commercial banks will resume their open-ended strike on March 14, citing “arbitrary judicial decisions” that had drained their foreign currency reserves. The statement by the Association of the Banks of Lebanon (ABL) said legal measures had allowed borrowers to repay foreign currency loans to the banks at the old official exchange rate of 1,500 […] March 10, 2023
Banking and Finance Turkish lira falls to record low near 19 to the US dollar Turkey’s lira weakened to a fresh record low of 18.9620 against the dollar on Thursday, as investors weigh the economic impact of massive earthquakes that hit the country last month. Presidential and parliamentary elections scheduled for May 14 are adding to uncertainty. They will determine whether Turkey continues with unorthodox policies under President Tayyip Erdogan […] March 10, 2023
Banking and Finance Israel’s Bank Hapoalim says Q4 profit nearly doubles on rate hikes Bank Hapoalim has reported a near doubling of net profit in the fourth quarter 2022, helped by a sharp rise in interest rates that boosted financing income. Hapoalim, one of Israel’s two largest lenders and the first of Israel’s banks to issue quarterly results, said it earned a net 1.75 billion shekels ($487 million) in […] March 10, 2023
Banking and Finance GCC private equity sector held back by lack of competition The GCC private equity industry is failing to reach its potential because of a lack of competition and a scarcity of local investment banks to help in dealmaking, according to Karim El Solh, chief executive of investment firm Gulf Capital. He believes a more mature investment banking industry would bring more players into private equity […] March 10, 2023
Banking and Finance Abraaj Capital founder loses extradition appeal to the US Arif Naqvi, the founder of what was once the largest private equity firm in the Middle East, has lost a bid to challenge his extradition from London to the US to face fraud charges. US prosecutors allege that the Pakistan-born businessman defrauded investors, including the Bill & Melinda Gates Foundation, by concealing a liquidity crisis […] March 9, 2023
Banking and Finance Al Ansari to float 10% stake on Dubai stock market Al Ansari Financial Services has revealed plans to float 10 percent of the company on the Dubai Financial Market. The exchange house is making 750 million shares available through the initial public offering, each valued at one fil, with the subscription period running from March 16 to 24. The listing is scheduled to go live […] March 9, 2023
