Banking and Finance Empower targets Gulf expansion with IPO cash boost Dubai’s Emirates Central Cooling Systems Corporation (Empower) plans to launch its initial public offering (IPO) on the Dubai Financial Market on November 16, as it eyes expansion to neighbouring Gulf states, company executives said on Monday. Subscriptions will open on October 31 and close on November 7. Final pricing will be set on November 9 […] October 24, 2022
Banking and Finance Saudi National Bank’s Q3 profit up 19% on high operating income Saudi National Bank, the kingdom’s biggest lender, said on Sunday its net profit in the third quarter rose 18.7 percent from the same period year before on higher operating income and lower net impairments for expected credit losses. SNB posted net profit of SAR4.725 billion ($1.26 billion) in the quarter, up from SAR 3.98 billion […] October 24, 2022
Banking and Finance Lebanon to halt purchase of US dollars on Sayrafa platform Lebanon’s central bank will halt purchases of dollars on its Sayrafa platform starting on October 25 until further notice, a statement from the central bank said on Sunday. The statement said the bank would continue to sell exclusively dollars on its exchange rate platform. The move is intended to strengthen the Lebanese pound after it […] October 24, 2022
Banking and Finance Egypt to develop new currency indicator to wean off dollar peg Egypt will develop a new currency indicator partly to wean people off the idea that the Egyptian pound should be pegged to the US dollar, the new central bank governor said on Sunday. Hassan Abdalla, appointed in August, told an economic conference that the central bank was also working to introduce currency hedging and had […] October 24, 2022
Banking and Finance Turkey halts lending to more FX-rich firms to boost lira Turkey tightened lending rules for many companies with more than $500,000 in foreign currency cash on Friday, sweeping up more borrowers under rules adopted in June in the latest step to reverse a tumbling lira. The BDDK bank regulator said that if companies subject to independent audit had more than 10 million lira ($538,000) of […] October 24, 2022
Economy Saudi Crown Prince will not attend Arab summit in Algeria Saudi Crown Prince Mohammed bin Salman will not travel to Algeria next month to attend a summit of the Arab League on medical advice, the royal court confirmed in a statement on state media on Sunday. Doctors had advised Prince Mohammed, 37, to avoid long-haul flights that might affect his middle ear, said the royal […] October 24, 2022
Banking and Finance Dubai Islamic Bank sets up green financing framework Dubai Islamic Bank is planning to finance environmental and social projects under a new sustainable finance framework published on Friday. The framework will allow the lender to issue green and sustainability-linked Islamic bonds and loans to fund projects in renewable energy, clean transport, green buildings and wastewater management as well as support job creation and […] October 23, 2022
Banking and Finance UK watchdog fines Barclays $55m over fees paid to Qatari entities Britain’s Financial Conduct Authority (FCA) said it would fine Barclays £50 million ($55 million) for its failure to disclose fees paid to Qatari entities during its financial crisis-era fundraising. The fine dates back to the height of the 2008-2009 crisis, when Barclays scrambled to raise funds from overseas investors including Qatar in order to avoid […] October 23, 2022
Banking and Finance ‘It’s destined for disaster’, expert warns, as startups dilute equity Investors who demand increasingly bigger stakes in startups amid plunging valuations could be signing their own “death warrants”. Startup valuations in the Middle East and North Africa (MENA) region are already seeing a downward correction this year, in line with global trends as VC funding has tightened since interest rates were increased by central banks […] October 21, 2022
Banking and Finance Turkey slashes rates more than expected, lira hits record low Turkey’s central bank slashed its policy rate by a more-than-expected 150 basis points (bps) to 10.5 percent on Thursday, and promised to halt the easing cycle urged by President Tayyip Erdogan after another similarly-hefty cut next month. The move pushed the lira to a record low near 19 to the dollar and comes after Erdogan […] October 21, 2022
Banking and Finance UAE’s IHC makes $2.8bn offer for stake in Colombian food producer Abu Dhabi-based International Holding Company (IHC) has received authorisation from the Colombian Superintendency of Finance for its subsidiary, IHC Capital Holding, to launch a tender offer of nearly AED10.2 billion ($2.8 billion) for Colombian food processor Grupo Nutresa. The move comes as part of IHC’s long-term investment and development plan in South America, selecting Colombia […] October 21, 2022
Markets Saudi Arabia’s Alsulaiman Group weighs IPO of IKEA business Saudi Arabia’s Alsulaiman Group is weighing an initial public offering of its IKEA business franchise next year and has hired Moelis & Co as an adviser, two sources told Reuters. The company plans to invite investment banks early next year to pitch for roles in a possible public share-sale, said the sources, who declined to […] October 21, 2022
Banking and Finance Omantel to buy back over $350m of its bonds Oman Telecommunications, majority owned by the state, said in a bourse filing it has accepted to buy more than $350 million of its existing bonds for cash. Omantel earlier this month made a tender offer to holders of its $600 million bonds due in 2023 and $900 million bonds maturing in 2028. It will buy […] October 21, 2022
Banking and Finance Sharjah developer Arada raises $100m in tap of existing sukuk Sharjah-based Arada Developments raised $100 million in Islamic bonds on Thursday in a reopening of a transaction that raised $350m in May, a bank document showed. The sukuk tap was priced at 99 cents on the dollar, yielding investors 8.386 percent, the document showed. The order book size was not disclosed. The sukuk issued in […] October 21, 2022
Economy Sterling rallies as UK PM Liz Truss resigns over mini budget fiasco Sterling pared gains following the announcement that Liz Truss was resigning as prime minister of the UK. The country’s mid caps jumped as much as one percent as Truss, speaking outside the door of her Number 10 Downing Street office, said a leadership election would be completed within the next week. Truss appointment as UK […] October 20, 2022
Analysis Economy $35bn ‘locked’ in balance sheets of Middle East listed companies Listed businesses in the Middle East have experienced a rebound with revenues rising above pre-pandemic levels, but billions of dollars remain trapped on balance sheets due to working capital inefficiencies. The annual working capital study by PwC Middle East says the recovery has been driven by a strong response by the region’s governments to the […] October 20, 2022
Banking and Finance Israel eyes bond issuance via blockchain technology Israel’s government is preparing to issue government bonds using a blockchain technology platform, the Tel Aviv Stock Exchange (TASE) said on Wednesday. Implementation of advanced technologies such as blockchain, the TASE said, would reduce costs, shorten the duration issuance and clearing of government bonds, improve transparency and mitigate risks. The issuance is still in the […] October 20, 2022
Banking and Finance Egypt signs $595m financing pacts for economic development Egypt has approved three development financing agreements with the World Bank Group, French Agency for Development and Spain worth $595 million, Egypt Today newspaper reported. The new financing will improve the wheat supply chain, reduce waste and improve farm access to local grain markets by providing financing to the Silos Holding Company to design, build […] October 20, 2022
Saudi-based Islamic Development Bank markets 5-year Islamic bond The Islamic Development Bank has given initial price guidance for a planned five-year Islamic bond at around mid-60s basis points over the five-year US secured overnight financing rate (SOFR), a bank document showed. BNP Paribas, Credit Agricole, Dukhan Bank, Goldman Sachs, The Islamic Corporation for the Development of the Private Sector, JPMorgan, Mizuho , SNB […] October 20, 2022
Economy Pensions in demand as expats stay longer in the Gulf Expats are staying in the Gulf longer than the global average, leading to greater demand for pension services in the UAE and Saudi Arabia. “We have observed an increase in interest and discussion in the Middle East around offering pension type savings for expatriate employees,” said Robert Ansari, head of investment and retirement for India, […] October 20, 2022
Banking and Finance Flurry of funds bet on bruised bitcoin and ether allure A growing number of funds are betting on the long-term appeal of bitcoin and ether, a gritty gambit in the depths of a crypto winter. Unfazed by a collapse in prices over the past 11 months, investment firms have unleashed a flurry of exchange-traded funds, anticipating that elite cryptocurrencies and their underlying technology will eventually […] October 19, 2022
Banking and Finance UAE approves $1.2bn loans for industrial development The state-run Emirates Development Bank (EDB) approved AED 4.4 billion ($1.20 billion) in loans during the first nine months of 2022, up 600 percent year-on-year (YoY), state-owned news agency WAM reported. The bank plays a pivotal role in supporting the country’s economic agenda by providing indirect and direct financing to startups, small and medium-sized enterprises […] October 19, 2022
