Banking and Finance UBS to wind down Mena advisory and dealmaking operations UBS Group AG is planning to wind down its dealmaking and advisory operations in the Middle East and North Africa (Mena), Bloomberg reported, citing informed sources. The division’s last senior banker in the region has tendered his resignation recently, they said, adding a decision to retreat from in-person operations was taken in recently. Bankers and […] November 3, 2022
Banking and Finance Bank of England readies for biggest rate rise since 1989 The Bank of England (BoE) looks on track to raise interest rates by three quarters of a percentage point to three percent later on Thursday, its biggest rate rise since 1989 as it battles the highest inflation in 40 years. The BoE has faced political and financial market turmoil since its last rate rise on […] November 3, 2022
Banking and Finance Saudi-listed bank to hold Credit Suisse stake for at least 2 years Saudi National Bank’s investment in Credit Suisse is tactical rather than strategic, its chairman said on Wednesday, adding that the Saudi lender expects to hold its stake in the Swiss bank for at least two years. SNB, which is listed on the Saudi Exchange (Tadawul), announced in October that it was taking part in Credit […] November 3, 2022
Markets Dubai’s Empower shareholders mull raising IPO stake to 20% Shareholders of Dubai’s Emirates Central Cooling Systems Corporation (Empower) are considering increasing the size of the stake in the company being offered in an initial public offering to 20 percent, two sources said on Wednesday. They increased it to 15 percent from 10 percent on Tuesday, citing strong demand. The Gulf if experiencing an IPO […] November 3, 2022
Economy Kuwait to use budget surplus to replenish fund to cover deficits Kuwait will use an expected budget surplus for fiscal year ending March 31, 2023 to replenish its general reserve fund (GRF), its finance minister said, after running down the GRF during the COVID-19 pandemic when oil prices dropped. The oil-producing Gulf state’s parliament on Tuesday approved the 2022/2023 government budget after a delay caused by […] November 3, 2022
Banking and Finance Gulf central banks raise interest rates after US Fed’s move Most Gulf states said on Wednesday they would increase their key interest rates after the Federal Reserve raised its key policy rate by three-quarters of a percentage point for the fourth straight time. While the US central bank’s policy decision was motivated by its desire to lower stubbornly high inflation in the United States, it […] November 3, 2022
Opinion Banking and Finance Islamic insurers face a turbulent year While growth prospects of Islamic insurers in the GCC remain favourable, weak profitability has been an issue for the sector November 2, 2022
Banking and Finance Gap between Egypt’s official and black market dollar prices shrink The gap between the official and black market price of dollars in Egypt has narrowed significantly since the central bank announced a flexible exchange rate policy, three parallel market traders told Reuters on Tuesday. The Egyptian pound was trading at 24.15 to the dollar on Tuesday, according to Refinitiv data. That is about 18.5 percent […] November 2, 2022
Economy Turkish manufacturing in worst slowdown since May 2020 Turkey’s manufacturing sector slowed for the eighth consecutive month in October, experiencing its most precipitous drop since May 2020. Analysts see no end in sight for the country’s inflation problem, which is weighing down manufacturing and the wider economy. The Istanbul Chamber of Industry Türkiye Manufacturing Purchasing Managers’ Index (PMI), compiled by ratings agency S&P […] November 1, 2022
Banking and Finance Kuwait’s Wafra raises $1.5bn to buy stakes in private equity firms Wafra Inc, an investment firm backed by Kuwait’s public pension fund, said on Monday it has raised $1.5 billion for its fourth flagship fund that will acquire minority stakes in alternative asset managers such as private equity firms. The new fund, Capital Generation IV, will seek to acquire minority stakes in “lower middle-market” firms with […] November 1, 2022
Banking and Finance Credit Suisse unveils details of $4bn capital raising plan Credit Suisse on Monday unveiled details of its plan to raise 4 billion Swiss francs ($4.01bn) from investors to support the embattled bank’s bid to tackle the biggest crisis in its 166-year history. Switzerland’s second-biggest lender is raising new capital to fund an overhaul, which will see it cut thousands of jobs and shift its […] November 1, 2022
Economy Bahrain and Israel hope to seal free trade deal by year-end Israel and Bahrain hope to seal a free trade agreement before the end of the year, officials from both countries said on Monday. Israel normalised diplomatic relations with Bahrain and its Gulf neighbour the United Arab Emirates (UAE) two years ago under US sponsorship. While economic ties with the UAE has since taken off, Israel’s […] November 1, 2022
Markets Saudi Arabia approves dual listing of Pizza Hut and KFC franchisee Saudi Arabia’s market regulator said on Monday it had approved a concurrent and dual listing of Americana Group, the Middle East and North Africa franchisee of fast-food chains KFC and Pizza Hut, in the kingdom and the United Arab Emirates (UAE). Americana has approval to sell 30 percent of its shares, which will be the […] November 1, 2022
Economy Influx of rich expats pushing up UAE inflation, says IMF panel The influx of affluent migrants into the UAE has contributed to the country’s rising inflation, but also presents new opportunities for the Gulf state. A Henley Global Citizens report published in August forecast that the UAE will record the largest net inflow of millionaires on record, adding an additional 4,000 high net worth individuals this […] November 1, 2022
Banking and Finance Turkey warns lenders against FX transactions during ‘off hours’ Turkey’s central bank sent a letter to local lenders on Monday, warning them against conducting forex transactions with foreign banks during ‘off hours’ and offering deposits with very high interest rates to avoid bond holding requirements. The central bank has introduced rules in recent months to reduce the gap between the policy rate and lending […] November 1, 2022
Economy Saudi Arabia’s Q3 GDP grows 8.6% boosted by higher oil prices Saudi Arabia’s gross domestic product expanded by 8.6 percent in the third quarter compared with the same period in 2021, according to initial government estimates on Monday, as the world’s top oil exporter benefits from higher energy prices. Growth was largely driven by a 14.5 percent increase in oil activities, the General Authority for Statistics […] November 1, 2022
Economy GCC current account surplus to hit $275bn on higher oil prices Gulf oil exporters are expected to put away around a third of their oil revenues over the next three years. Higher oil and gas prices are predicted to increase the average current account surplus in the GCC to 9.7 percent of GDP in 2022, according to the International Monetary Fund (IMF). This is up from […] October 31, 2022
Banking and Finance IMF says Egypt interest rate hike is a step in right direction Egypt’s move to raise interest rates is a step in the right direction and a flexible exchange rate will help protect its economy from shocks at a time of tightening global financial conditions, an International Monetary Fund (IMF) official said. Egyptian authorities pledged a “durably flexible” exchange rate in conjunction with a staff-level agreement for […] October 31, 2022
UAE’s Taaleem to raise $204m from IPO on Dubai bourse Taaleem Holdings, the UAE-based K-12 premium education provider with 26 schools, will launch an initial public offering on the Dubai Financial Market to raise AED 750 million ($204.19 million) to expand its network. The company will offer 10 percent of its shares to retail investors starting November 10 and 88 percent to professional investors on […] October 31, 2022
Banking and Finance Public Investment Fund reports 13% profit hike to $22.8bn Saudi Arabia’s Public Investment Fund (PIF) reported profit of SAR 85.7 billion ($22.81 billion) in 2021, a year-on-year increase of 13 percent, according to the Saudi Gazette newspaper. The PIF’s revenue rose 27 percent year-on-year to SAR 228.2 billion and profit from associate companies hit SAR 8.6 billion, a 75 percent increase. Its other operating incomes […] October 31, 2022
Estonia’s exports to UAE double after Expo 2020 Dubai Estonia’s participation in Expo 2020 Dubai helped the European country’s exports of goods and services to the UAE increase by more than 100 percent in the past year. The value of Estonian goods exported to the UAE was up 126 percent year-on-year to €80.8 million ($80.57 million) in the eight months from January to August […] October 31, 2022
Banking and Finance Global bankers fear of stalling economy if rates climb too fast The world’s top central bankers are beginning to fear that an already weak global economy will stall if they keep pressing on the brakes, unnerved by plunging commodity prices, turmoil in emerging markets and potential flashpoints at home. Central bankers in the euro zone, United States, Canada and Australia have all been hinting that the […] October 30, 2022
