Banking and Finance Wealthy Latin Americans more likely to invest in Middle East Wealthy Latin American families were more present as investors in the Middle East than those from other parts of the world in 2023, a global banking report says, but overall numbers are low and down from 2022. UBS bank’s Global Family Office Report for 2024 showed that Latin American families had placed 2 percent of […] May 28, 2024
Analysis Trade Diplomacy and trade to fore as China woos GCC leaders It’s quite a coup. Hu Jintao (still with us) must be feeling vindicated. The heads of four Arab states are in Beijing to attend the China-Arab States Cooperation Forum, which Hu founded in 2004 to bring together China and the Arab League. Xi Jinping, Hu’s successor as leader of the Chinese Communist Party (CCP), will […] May 28, 2024
Economy AfDB launches $13bn plan to support Moroccan economy The African Development Bank (AfDB) has launched its €12 billion ($13 billion) five-year strategic roadmap to support Morocco’s economic growth. The new strategy aligns with the country’s new development model until 2035 and will strengthen Morocco’s economic competitiveness and resilience, sustainable growth, and consolidating economic and social inclusion dynamics, the bank said. “This new strategy […] May 28, 2024
Markets Alef Education valued at $2.5bn as IPO price range set Alef Education, the first education technology company to list on a UAE stock exchange, has set its initial public offering (IPO) price range between AED1.30 and AED1.35 ($0.35-0.37) a share. Accordingly, the market capitalisation on listing will be between AED9.1 billion ($2.5 billion) and AED9.45 billion on listing. The IPO subscription period starts on May […] May 28, 2024
Markets Stock prices of Gulf companies surge after IPOs Most Gulf companies that completed initial public offerings (IPOs) recently have seen their market capitalisation soar, with issuers pricing flotations adroitly to bolster investor demand for their stocks after listing. From the start of 2023 there have been 20 Gulf IPOs that raised at least $100 million. Combined, these sold $11.2 billion of shares. As […] May 28, 2024
Banking and Finance Bahraini power company completes $1bn refinancing Bahrain’s Al Dur Power & Water Company has closed a $1.2 billion refinancing facility provided by a syndicate of 17 local, regional and international banks. The kingdom’s largest power generation and water desalination company will use the funds to refinance its existing project-level debt. The refinancing facilities extend up to 11 years and include a […] May 27, 2024
Opinion Finance A Labour government should not frighten the horses The UK general election is likely to mean changes, but Gulf citizens need not be too worried May 27, 2024
Trade Indian investment in GCC falls despite increased trade Investment from India into Gulf countries has dropped considerably despite growth in bilateral trade due to the country adopting a more protectionist approach. Trade between India and the group of six GCC countries – Bahrain, Kuwait, Qatar, Oman, Saudi Arabia and the UAE – reached almost 16 percent of the country’s total in the last […] May 27, 2024
Finance Saudi investors fined $1m for insider trading Saudi financial authorities have fined five investors and one company almost SAR5 million ($1.3 million) for insider trading and other capital market law violations, the latest in a series of crackdowns on corruption in the kingdom. The investors and the company, Erada and Riyada for Development and Commercial Investment, committed crimes including buying shares of […] May 27, 2024
Economy Oman to use budget surplus to repay nearly $3bn debt Oman is expected to repay nearly $3 billion in external debt in the first half of 2024, driven by the budget surplus from high oil prices, Fitch Ratings said in a new report. The resulting 10 percent decline in external debt from the end of 2023 is faster than forecast last September. The rating agency affirmed the Gulf state’s […] May 27, 2024
Analysis Markets Bahrain tops dividend yields in mixed quarter for bourses First-quarter company earnings in the UAE, Bahrain and Oman were mixed across major economic sectors, with the four bourses trading at markedly varied valuations. As of March 31, Dubai and Bahrain had price-to-earnings ratios of 8.3 and 7.9 respectively, while Abu Dhabi’s was 19.9 and Oman’s 12.9, according to Kuwait’s Kamco Invest. Bahrain (7.7 percent) […] May 27, 2024
Analysis Education Days of high returns numbered for investors in Dubai’s schools Dubai’s private school market, once a goldmine for investors, is no longer yielding the lucrative double-digit returns it used to, the chief executive of a leading school operator has said. Navin Valrani, CEO of The Arcadia School, told AGBI new investors considering the emirate must tackle significant entry barriers, escalating costs and an increasingly mature […] May 26, 2024
Opinion Trade The next UK government must prioritise a GCC trade deal With an impending election, government-to-government relations are critical May 24, 2024
Trade Austrian finance unicorn to open in UAE Austria’s first unicorn has announced plans to set up in Dubai, as officials from the UAE hold top-level talks in Vienna to build on a 22 percent increase in bilateral trade last year A unicorn is a startup company valued at more than $1 billion that is privately owned and not listed on a share […] May 24, 2024
Economy Egypt holds interest rate hike despite slowdown The Central Bank of Egypt has kept its key interest rates unchanged despite a slowdown in economic growth. The monetary policy committee (MPC) left the lending rate unchanged at 28.25 percent and the deposit rate at 27.25 percent. Inflation has eased since the annual headline and core inflation peaked at 38 percent in September 2023 […] May 24, 2024
Economy UAE commits to invest $10bn in Pakistan’s economy The UAE intends to invest $10 billion in various economic sectors in Pakistan. “UAE president Sheikh Mohamed bin Zayed Al Nahyan assured the Emirates’ support in all circumstances and made a commitment of investing $10 billion in multiple sectors,” Pakistan’s prime minister’s office said in a statement. The statement was released after the UAE president […] May 24, 2024
Economy Turkey tightens monetary policy but holds rate steady Turkey will continue to maintain a tight monetary stance until a “significant and sustained” decline in monthly inflation is seen, the country’s central bank said. The bank’s monetary policy committee kept the key policy rate steady at 50 percent, adding it remains “highly attentive to inflation risks”. The central bank raised interest rates by 500 […] May 24, 2024
Retail Middle East phone users turn to Chinese budget brands Middle East consumers are embracing budget-friendly Chinese smartphone brands, as global favourites such as iPhone and Samsung suffer a slump in sales. The Middle East’s smartphone market is flourishing, with shipments excluding Turkey reaching more than 12 million units in the first quarter of 2024, a year on year increase of 39 percent, a report […] May 24, 2024
Banking and Finance Gulf banks face margin squeeze as funding costs rise Gulf banks are likely to offer more attractive rates on savings accounts to woo depositors, putting more pressure on lenders’ already tight net interest margins, a report suggests. The move towards higher interest rates for savers is predicted to become more pronounced as expectations of imminent rate cuts by the US Federal Reserve fade. Benchmark interest […] May 23, 2024
Finance Mubadala trims stake in US chipmaker GlobalFoundries Abu Dhabi sovereign wealth fund Mubadala Investment Company is offloading some of its holdings in chipmaker GlobalFoundries. A Mubadala subsidiary is offering to sell $950 million worth of GlobalFoundries shares, two years after the US semiconductor manufacturer went public on Nasdaq. Mubadala Technology Investment Company will receive the funds from the secondary public offering, which […] May 23, 2024
Banking and Finance Mashreq explores presence in India’s new economic zone UAE lender Mashreq is exploring setting up an office in India’s special economic zone, according to a media report. The bank is exploring opportunities beyond its current footprint, Tarek El Nahas, group head of international banking at Mashreq told Moneycontrol, an Indian financial news portal. The prospect of setting up a presence in the Gujarat […] May 23, 2024
Markets Adnoc Drilling successfully floats further stake Abu Dhabi state oil company Adnoc has successfully placed a further 5.5 percent of listed subsidiary Adnoc Drilling, increasing the company’s free float to 16.5 percent. The sale of an additional 880 million shares through a book-building process will boost trading of Adnoc Drilling’s stock on Abu Dhabi’s bourse. Adnoc restricted the share sale to […] May 23, 2024
