MUMBAI: The epic feud between India’s Ambani brothers has taken a new twist with the older and now vastly richer brother paying a debt owned by his struggling sibling, helping him avoid jail.
Mukesh and Anil Ambani fell out spectacularly after their rags-to-riches father died in 2002 without a will, leaving them to fight for control of his Reliance Industries conglomerate.
With their mother acting as peacemaker, they eventually agreed to split Reliance, at the time India’s most valuable listed company, and to stay out of each other’s sectors.
Mukesh’s half has thrived while Anil’s has tanked. Mukesh, 61, is now Asia’s richest man, worth $54.3 billion, dwarfing Anil’s assets of some $300 million, according to Bloomberg News.
Mukesh and his family live in a 27-story luxury Mumbai skyscraper believed to have cost more than $1 billion to build and regularly referred to as the world’s most expensive home.
Anil’s Reliance Communications is believed to have debts of around $4 billion and started insolvency proceedings in February.
That same month his woes deepened when the Supreme Court ruled he would be jailed if he failed to pay 5.5 billion rupees ($77 million) to Sweden’s Ericsson by Tuesday.
Reliance Communications dropped a bombshell late Monday by saying that the debt had been settled — implying that none other than Anil’s big brother had paid the money, prompting a humbled thank you.
“My sincere and heartfelt thanks to my respected elder brother, Mukesh, and (his wife) Nita, for standing by me during these trying times, and demonstrating the importance of staying true to our strong family values by extending this timely support,” said Anil, 59.
“I and my family are grateful we have moved beyond the past, and are deeply grateful and touched with this gesture,” he added in a statement.
Mukesh’s decision may not have been driven entirely by a desire to bury the hatchet, however.
Monday’s short statement did not say whether the payment was a gift or a loan but some Indian media reported that it may have been compensation for a deal between the two that recently collapsed.
Anil had hoped to offload his company’s telecom tower and spectrum business to his brother’s Reliance Jio for $2.4 billion.
But the deal, which hit regulatory hurdles and opposition from creditors, was confirmed dead by both companies on Tuesday.
It is also not the first time that the brothers have appeared to make up.
In 2011, they came together to dedicate a memorial to their father, and their mother Kokilaben declared the enmity over, telling reporters: “There is love between the brothers.”
But five years later the elder sibling sparked a brutal price war in the Indian telecom sector, launching his ultra-cheap Reliance Jio mobile network in 2016 — bringing Anil’s Reliance Communications to its current predicament.
‘Love between brothers’: India’s richest man Mukesh Ambani helps sibling avoid jail
‘Love between brothers’: India’s richest man Mukesh Ambani helps sibling avoid jail
- Ambani brothers Mukesh and Anil fell out spectacularly after their rags-to-riches father died in 2002 without a will
- Anil would have been jailed if he failed to pay 5.5 billion rupees ($77 million) to Sweden’s Ericsson by Tuesday
Morgan Stanley receives approval to establish regional HQ in Saudi Arabia
RIYADH: US-based investment bank Morgan Stanley has been granted approval to establish its regional headquarters in Saudi Arabia, as the Kingdom continues to attract international investment.
This move aligns with Saudi Arabia’s regional headquarters program, which offers businesses various incentives, including a 30-year exemption from corporate income tax and withholding tax on headquarters activities, as well as access to discounts and support services.
Saudi Investment Minister Khalid Al-Falih confirmed the progress of this initiative in October, stating that the Kingdom has successfully attracted 540 international companies to set up regional headquarters in Riyadh—exceeding its 2030 target of 500.
“Establishing a regional HQ in Riyadh reflects the growth and development of Saudi Arabia and is a natural progression of our long history in the region,” said Abdulaziz Alajaji, Morgan Stanley’s CEO for Saudi Arabia and co-head of the bank’s Middle East and North Africa operations, according to Bloomberg.
Morgan Stanley first entered the Saudi market in 2007, launching an equity trading business in Riyadh, followed by the establishment of a Saudi equity fund in 2009.
This approval follows a similar move by Citigroup earlier this month, with the bank also receiving approval to establish its regional headquarters in Saudi Arabia.
Fahad Aldeweesh, CEO of Citi Saudi Arabia, emphasized that this development would support the firm’s future growth in the Kingdom.
Goldman Sachs, another major Wall Street bank, also received approval in May to set up its regional headquarters in Saudi Arabia.
Prominent international firms that have already established regional headquarters in Saudi Arabia include BlackRock, Northern Trust, Bechtel, PepsiCo, IHG Hotels and Resorts, PwC, and Deloitte.
In addition, a recent report from Knight Frank noted that Saudi Arabia's regional headquarters program has led to increased demand for office space in Riyadh, with the city’s office stock expected to grow by 1 million sq. meters by 2026.
In August, Kuwait’s Markaz Financial Center echoed this sentiment, predicting a significant uptick in the Kingdom’s real estate market during the second half of the year, driven by the regional headquarters program.
QatarEnergy strengthens global footprint with offshore expansion in Namibia
RIYADH: QatarEnergy has expanded its portfolio through a new agreement with TotalEnergies to increase its ownership stakes in two offshore blocks in Namibia’s Orange Basin.
According to a press release, the state-owned energy firm will acquire an additional 5.25 percent interest in block 2913B and an additional 4.7 percent interest in block 2912 under the new deal, subject to customary approvals.
Once finalized, QatarEnergy’s share in these licenses will rise to 35.25 percent in block 2913B and 33.025 percent in block 2912.
Saad Sherida Al-Kaabi, Qatar’s minister of state for energy affairs and CEO of QatarEnergy, said: “We are pleased to expand QatarEnergy’s footprint in Namibia’s upstream sector. This agreement marks another important step in working collaboratively with our partners toward the development of the Venus discovery located on block 2913B.”
TotalEnergies, the operator of both blocks, will retain 45.25 percent in block 2913B and 42.475 percent in block 2912. Other partners include Impact Oil & Gas, which holds 9.5 percent in both blocks and the National Petroleum Corp. of Namibia, which owns 10 percent in block 2913B and 15 percent in block 2912.
Located about 300 km off the coast of the African country, in water depths ranging from 2,600 to 3,800 meters, these blocks host the promising Venus discovery. The Venus field has attracted considerable attention as a significant find that could impact Namibia’s energy future.
This offshore acquisition complements QatarEnergy’s recent ventures into renewable energy. In October, the company announced a 50 percent stake in TotalEnergies’ 1.25-gigawatt solar project in Iraq.
The initiative, part of Iraq’s $27 billion Gas Growth Integrated Project, aims to enhance Iraq’s energy self-sufficiency by addressing its reliance on electricity imports and reducing environmental impacts.
The solar project, set to deploy 2 million bifacial solar panels, will generate up to 1.25 GW of renewable energy at peak capacity, supplying electricity to approximately 350,000 homes in Iraq’s Basra region.
QatarEnergy will share equal ownership of the project with TotalEnergies, which retains the remaining 50 percent.
The firm’s dual focus on traditional and renewable energy highlights its strategic approach to meeting global demands while addressing sustainability concerns.
Its involvement in Namibia’s offshore blocks and Iraq’s shift toward renewable energy highlights a well-rounded portfolio that includes fossil fuels and clean energy investments.
GCC lending growth hits 3.1% in Q3, Saudi Arabia leads: report
RIYADH: Listed banks in the Gulf Cooperation Council achieved their highest lending growth in 13 quarters, with loans rising 3.1 percent to $2.12 trillion in the third quarter.
According to a report by Kamco Invest, Saudi Arabia led the surge with a 3.7 percent quarter-on-quarter increase in gross loans, marking its fastest growth in nine quarters.
Qatar followed with a 1.9 percent rise, while Bahrain recorded a 1.2 percent increase.
This growth aligns with the International Monetary Fund’s projection of 3.5 percent nominal gross domestic product growth for GCC nations in 2024, driven by the strong performance of non-oil sectors in the UAE, Qatar, Bahrain, and Saudi Arabia.
The region’s commitment to diversification and long-term infrastructure development continues to drive its financial sector.
Despite record lending levels, aggregate net income for GCC-listed banks increased marginally by 0.4 percent to $14.9 billion.
While total revenues grew 4.1 percent, supported by a 2.8 percent rise in net interest income and a 6.9 percent increase in non-interest income, higher expenses and impairments weighed on profitability.
Loan impairments rose to a three-quarter high of $2.5 billion, with increases in the UAE, Saudi Arabia, Oman, and Bahrain partially offset by declines in Qatar and Kuwait.
Customer deposits across GCC-listed banks reached a nine-quarter high, rising 3.2 percent to $2.5 trillion.
Saudi Arabia led with a 4.6 percent increase, while the UAE maintained its position as the largest deposit market at $828 billion.
Deposits in Oman and Qatar also saw solid growth, contributing to the region’s overall resilience.
The aggregate loan-to-deposit ratio remained stable at 81.4 percent, with Saudi Arabia reporting the highest ratio of 92.8 percent and the UAE the lowest at 69.3 percent, reflecting its strong liquidity position.
The GCC banking sector’s resilience is further demonstrated by its consistent focus on operational efficiency. The cost-to-income ratio declined slightly to 39.9 percent, highlighting the sector’s ability to manage expenses effectively despite rising costs.
As the region continues to diversify its economy, the banking sector remains a critical enabler of growth, funding large-scale projects and fostering financial innovation.
While rising funding costs and potential interest rate cuts may pose challenges, the sector’s robust fundamentals and strategic focus on non-oil growth position it for sustainable expansion.
The commitment to balancing economic diversification with financial innovation is expected to drive the sector’s continued success, reinforcing its pivotal role in the GCC’s broader economic landscape.
Saudi Arabia launches Ramlah Co. to boost tourism in Hail region
RIYADH: Saudi Arabia’s Ministry of Tourism is supporting private sector growth by launching Ramlah Co. for Tourist Trips and Resorts, a new initiative to attract visitors to the Hail region.
This undertaking is part of the broader Saudi Winter Season campaign, which offers unique experiences in its key destinations.
The Minister of Tourism Ahmed Al-Khateeb inaugurated the Ramlah Co. during a visit to Hail, signaling the Kingdom’s ongoing efforts to develop the tourism sector and foster private-sector participation, the Saudi Press Agency reported.
Al-Khateeb, also the chairman of the Saudi Tourism Authority, emphasized that the launch of the company aligns with Saudi Arabia’s Vision 2030 objectives to diversify the economy and promote tourism as a key growth sector.
The Saudi Winter Season, which began in October and runs through the first quarter of 2025, highlights seven key destinations, including Riyadh, Jeddah, and AlUla, as well as the Red Sea, the Eastern Province, Madinah, and Hail.
The campaign is designed to showcase the Kingdom’s cultural and natural attractions, with private companies like Ramlah Co. offering tailored experiences for visitors.
Ramlah Co. has met all licensing requirements set by the Ministry of Tourism and will offer a diverse range of activities in the region, from desert camping and sandboarding to off-road safaris and historical tours of landmarks such as Jubbah.
The company will also provide stargazing experiences and flexible tourism packages designed for families, groups, and solo travelers.
During his visit, Al-Khateeb announced several initiatives aimed at further developing the region’s tourism infrastructure. He revealed plans for 1,000 international training opportunities and 10,000 domestic training programs for Hail residents, according to the minister’s official X account.
He also highlighted efforts to enhance tourism initiatives and projects, underscored by the signing of two memoranda of understanding with the Hail Development Authority.
Speaking on future investments, Al-Khateeb noted that the Tourism Development Fund is currently evaluating support for several key projects in the Hail region.
“The fund is studying supporting a number of distinguished projects, the value of which exceeds SR1 billion and is expected to contribute to providing more than 850 hotel rooms in the area,” Al-Khateeb said.
These projects are anticipated to boost Hail’s hospitality capacity while fostering economic growth and job creation.
The minister also visited the Hail Tourism Development Authority, where he reviewed several qualitative initiatives designed to enhance the region’s tourism offerings.
The launch of Ramlah Co. reflects the government’s commitment to developing regional tourism hubs and providing a platform for private companies to play a pivotal role in the country’s tourism sector.
Hail, known for its UNESCO-listed Hail Rock Art and Fayd Historic City, is one of the Kingdom’s most culturally rich regions. The area also features natural attractions like Al-Adham Park, offering tourists a range of recreational activities.
Al-Khateeb continues his tour as part of the Winter Season campaign, with AlUla being his next stop.
Saudi Arabia permits flour mills to export surplus production
JEDDAH: Saudi Arabia has approved a plan allowing licensed flour mills to export surplus production to international markets, provided local supply remains secure.
The General Food Security Authority issued the approval, requiring mills to repay the full value of the wheat subsidies provided by the government for the quantities they intend to export, the Saudi Press Agency reported.
Ahmed bin Abdulaziz Al-Faris, governor of the GFSA, emphasized that this decision aligns with Saudi Arabia’s Vision 2030, which supports national industries and fosters competition based on high product quality.
Under Article 14 of the Kingdom’s Wheat Flour Production Law, issued in 2018, flour mills are prohibited from exporting wheat, flour, or derived products without prior approval from the relevant authority. Mills must repay the subsidy granted for these products intended for export. Additionally, exports must not disrupt the local supply of these products.
Saudi Arabia has developed a strategic plan for its agricultural sector, focusing on sustainability, food security, and welfare for farmers, as well as economic contributions and preventative measures.
Despite its desert climate and limited water resources, the Kingdom’s national policies address critical issues such as food and water security, sustainable agricultural development, and ecological balance.
These efforts reflect Saudi Arabia’s commitment to enhancing agricultural productivity while ensuring the responsible management of its natural resources.
In 2023, Saudi Arabia’s grain production reached 1.75 million tonnes, harvested from 323,000 hectares of a total of 331,000 hectares planted, according to the figures released by the General Authority for Statistics.
Wheat was the leading crop, accounting for 63.4 percent of the total area, with production reaching 1.314 million tonnes.
Formerly known as the Saudi Grains Organization, the GFSA plays an important role in driving economic development and meeting the food needs of Saudi citizens.
Established in 1972, the GFSA was created as part of the government’s efforts to ensure national development. Its objectives include establishing and operating flour mills, production facilities, and animal feed factories, as well as developing complementary food industries.
The authority is also responsible for marketing products, purchasing grains, and maintaining an adequate reserve stock for emergencies, in line with the government’s political-agricultural policy.
