Manufacturing Indian manufacturers urged to set up shop in UAE The future of the UAE’s economic partnership with India hinges on more manufacturing taking place in the Gulf state, a senior executive from a royal family office has said. Zulfiquar Ghadiyali, managing director of Royal Arab Holdings, the business arm of the private office of Sheikh Tahnoon bin Zayed Al Nahyan, said Indian businesses were […] June 4, 2024
Construction UAE official keen to address government payment delays A senior UAE official is advocating for policymakers to reassess government payment schedules, citing the strain late payments places on the private sector. Omar Saif Ghobash, adviser to the UAE Ministry of Foreign Affairs and ambassador to the Holy See, told a panel at the India-UAE Business Forum in Dubai last week that the systemic […] June 4, 2024
Economy Slump in orders and exports cools Turkish PMI sentiment Turkish manufacturers are finding their operational environment increasingly difficult, a new survey has revealed. Tighter economic conditions led expectations to fall in May, although some relief came from the slight easing of inflationary pressures. The monthly Purchasing Managers’ Index (PMI) survey, conducted by the Istanbul Chamber of Commerce and S&P Global, fell further into negative […] June 3, 2024
Real Estate Saudi HQ drive forces up Riyadh office rents A shortage of prime office space in Riyadh has pushed up B-grade office rents by 26 percent over the last year, a real estate report said this week, as companies rush to set up premises in the kingdom. Saudi Arabia says companies must base their regional headquarters in the kingdom if they want access to […] June 3, 2024
Analysis Economy Egypt’s rising bread price sparks austerity fears Egypt’s plan to hike the price of subsidised bread for the first time in 30 years has increased talk of an austerity budget for the coming fiscal year, amid rumours of price increases for medicine and electricity and the phasing out of fuel subsidies. The International Monetary Fund, which is currently preparing a third review […] June 3, 2024
Banking and Finance Turkey’s Koç ends talks to sell Yapi Kredi stake Turkey’s Koç Holding has confirmed that initial talks over the sale of a stake in Yapi Kredi Bank, the country’s fourth largest private bank in terms of assets, have been terminated. Yapı Kredi’s parent corporation, Koç, said last month it was in talks with the UAE’s First Abu Dhabi Bank (FAB) over the sale of a majority […] June 3, 2024
Analysis Oil & Gas Early demand is strong for Aramco’s $13bn share sale The Saudi oil giant Aramco’s secondary share offering opens to retail investors today in a sale that could bring huge dividend payouts if they set aside concerns over flagging oil prices and regional political tensions. Institutional investors covered the offer within a few hours on Sunday, but reports say Aramco is planning events in Britain […] June 3, 2024
Artificial Intelligence China’s OpenAI rival backed by Saudi fund Saudi Aramco’s venture capital fund Prosperity7 has joined a $400 million investment round for Chinese generative AI startup Zhipu AI. Prosperity7 is a minority investor in Zhipu, which is valued at nearly $3 billion, the Financial Times reported on Friday. This marks the first instance of foreign investment in China’s quest to establish a homegrown […] May 31, 2024
Finance UAE and Qatar in deal to avoid double taxation The UAE and Qatar have signed an agreement to prevent double taxation and curb fiscal evasion of income taxes. The agreement will enhance financial, economic, and investment partnerships between the two nations, UAE minister of state for financial affairs Mohamed Al Hussaini said. The move will bolster coordination and cooperation in tax matters, open up […] May 31, 2024
Finance Ministry issues record Saudi business licences in Q1 Saudi Arabia’s Ministry of Investment issued a record number of business licences in the first quarter of 2024, as the country tries to drum up foreign investor interest for its economic expansion plans. The ministry issued 3,157 licences, a 9 percent rise from 2,884 issued in the last quarter of 2023, which was the previous […] May 31, 2024
Banking and Finance Saudi Arabia issues $17bn Islamic bonds after early repayment Saudi Arabia has issued new sukuk (Islamic bonds) worth SAR64 billion ($17 billion) following the early purchase of over SAR63 billion of outstanding debt. The initiative aims to bolster the domestic market, the National Debt Management Centre (NMDC), which manages the Saudi government’s debt obligations and future maturities, said in a statement. The new sukuk […] May 31, 2024
Markets Aramco to raise up to $13bn from new share offering Saudi Aramco confirmed on Thursday that it aims to raise up to $13 billion in a secondary public offering next month, as Riyadh seeks out new sources of funding to finance its portfolio of giga-projects. The world’s largest oil producer will sell a 0.64 percent stake, or 1.545 billion shares, in an offering that will commence on […] May 31, 2024
Trade India must cut red tape for investors, says Mubadala executive Reducing red tape is critical to making India more attractive to global investors, an executive at Abu Dhabi’s sovereign wealth fund Mubadala has said. Sridhar Iyengar, chief financial officer of Mubadala’s Aerospace, Renewables and Information Communications Technology business, said the New Delhi government must enhance its bureaucratic efficiency to improve the pace at which projects […] May 31, 2024
Giga-projects Saudi review says 87% of Vision 2030 projects ‘on right track’ Saudi Arabia’s top economic body discussed the progress of the kingdom’s Vision 2030 plan this week, citing a recent government report that 87 percent of its projects are “on the right track”. The Council of Economic and Development Affairs, which is headed by Crown Prince Mohammed bin Salman, convened on May 28 in a meeting […] May 30, 2024
Logistics Air cargo between Middle East and Europe up by 30% Middle Eastern carriers reported a year-on-year increase in demand for air cargo of more than 9 percent in April, industry figures said. Air cargo between the region and Europe experienced the strongest rise with a 30 percent lift on the same time last year. Asia grew by over 10 percent, according to the latest data […] May 30, 2024
Banking and Finance Saudi banks’ profits fall as interest margins are squeezed Combined profits in April at Saudi Arabia’s banks fell 3.3 percent compared with March, to SAR6.7 billion ($1.9 billion), the lowest monthly total since last November’s SAR6.1 billion, central bank data shows. Nevertheless, banks total profits for January to April was SAR27.4 billion, up from SAR24.8 billion for the same period in 2023, a report […] May 30, 2024
Trade Qatar explores gas, port and Gaza aid deals with Cyprus Qatar is looking at investing in ports, banking and energy in Cyprus, including expanding its ExxonMobil partnership in oil and gas exploration, the Associated Press news agency reported. Sheikh Tamim bin Hamad Al Thani, the emir of Qatar, visited the Mediterranean country this week and held talks on investment issues with Cypriot president Nikos Christodoulides. […] May 30, 2024
Analysis Markets Foreign traders’ Gulf stock sell-off good news for bargain hunters Foreign investors’ recent cutting of their holdings in Gulf stocks should prove fleeting, and the sell-off provides other traders with the chance to accumulate equities at lower prices, fund managers told AGBI. Non-Gulf investors were net sellers of $597 million of Gulf-listed stocks in April, a report by the Dubai-based consultancy company Iridium revealed. Of […] May 30, 2024
Markets Drake & Scull International shares up by 24% as trading resumes Shares in Drake & Scull International rose by 24 percent on Wednesday as the troubled contractor resumed trading on Dubai Financial Market following a six-year suspension. DSI stock ended Wednesday at AED0.31, having started the day at AED0.25 – the price at which it sold AED450 million ($123 million) of shares earlier this month as […] May 29, 2024
Finance Dubai wealth fund reports record net profit for second year running Investment Corporation of Dubai, the Dubai government’s main investment unit, has reported a record annual net profit. Earnings were bolstered by higher interest rates and a resurgent aviation sector. ICD owns Emirates and FlyDubai airlines, travel agency Dnata, Emirates National Oil Company (Enoc) and stock exchange operator Borse Dubai. NewsletterGet the Best of AGBI delivered […] May 29, 2024
Trade Trade deal signed during UAE state visit to South Korea The UAE has signed a trade agreement with South Korea during a two-day state visit by the Emirati president, Sheikh Mohamed bin Zayed Al Nahyan, that has resulted in deals worth billions of dollars being struck between the two countries. The UAE has become the first Arab country to formally sign a comprehensive economic partnership […] May 29, 2024
Analysis Banking and Finance Digital lenders eager to tap into Egypt’s unbanked masses Egyptian banking history was made this month when Misr Digital Innovation (MDI) became the first Egyptian company to receive preliminary approval for a digital banking licence. MDI, a subsidiary of Banque Misr, will open Onebank – Egypt’s first digital bank – by the first quarter of next year at the latest. Experts predict many more […] May 29, 2024
