Sweet deal: Gateway Partners invests $50m in Gulf cafe chain
Cafe franchise Tim Hortons may widen its operations to include Egypt and India in the wake of a major investment by Dubai’s Gateway Partners. (Reuters)
Sweet deal: Gateway Partners invests $50m in Gulf cafe chain
Plans for expansion after Dubai-based private equity firm snaps up 40 percent stake in Tim Hortons franchise
Updated 08 April 2020
Reuters
DUBAI: Dubai-based private equity firm Gateway Partners has acquired a 40 percent stake in the Gulf franchise of coffee and breakfast chain Tim Hortons, two sources familiar with the matter told Reuters.
Gateway Partners, which is led by former Standard Chartered banker Viswanathan Shankar, paid about $50 million for the holding, the sources, who declined to be named, said.
Gateway declined to comment.
The franchise is owned and managed by Dubai-based fashion and lifestyle retail conglomerate Apparel Group.
Nilesh Ved, Apparel’s chairman, confirmed Gateway’s investment, which he said would be used to grow the business, but declined to discuss the value or size of the deal.
“We are going to take it to Egypt and India and expand in the Gulf,” Ved told Reuters by telephone.
Gateway Partners made the investment through its Gateway Fund 1 in February, information contained on its website shows.
FASTFACT
There are 141 Tim Hortons stores across the Middle East.
The website describes the Tim Hortons regional business as the chain’s leading franchise outside of North America, with 141 stores as of the end of last year across the Middle East.
Cafes and restaurants have been closed for eating-in across the Gulf after a lockdown to contain the coronavirus outbreak.
Ved said six or seven Tim Hortons outlets remain open for deliveries to customers in Dubai and 15 are doing business in Saudi Arabia, through the use of third- party delivery apps.
“At this moment nobody knows exactly what’s happening. People are just tired of sitting at home. It will take some time, but eventually people will want to go out for that coffee and go to the mall,” he said.
Before the coronavirus crisis and rules that restrict movement of people across the Gulf, Ved said Apparel had planned to open another 300 Tim Hortons outlets in the next three years.
“It’s a competitive market, but there’s still room for good players to grow,” he said.
Sovereign fund ADIA invests $500m in US power firm AlphaGen
Updated 48 sec ago
Reuters
LONDON: The Abu Dhabi Investment Authority is investing $500 million in Alpha Generation, a US power infrastructure company owned by private equity, the companies told Reuters on Monday, as the race to invest in power generation assets intensifies.
Formed a year ago by ArcLight Capital Partners to manage and operate the buyout firm’s power infrastructure investments, AlphaGen constitutes one of the largest portfolios of independent power assets in the US, with more than 11 gigawatts of generation capacity spread across six states.
“This investment, and the partnership between ourselves and ADIA, will help catalyze both the future growth of, and the value of, this strategic portfolio of assets,” Angelo Acconcia, partner at ArcLight, told Reuters in an interview.
ADIA’s $500 million is for a minority stake in AlphaGen, according to a joint statement from the parties. Acconcia declined to comment on the size of the minority stake or the valuation at which the ADIA investment valued AlphaGen.
The move by the sovereign wealth fund comes amid a frenzy of deals activity in the US power industry, as the boom in artificial intelligence and data centers, as well as electrification efforts in manufacturing and transportation, is driving power demand to record levels, with further growth projected through the rest of the decade and beyond.
This is making investments into the US power sector, whether for generation assets, transmission infrastructure, energy storage or associated companies, increasingly attractive both for money managers and existing industry players.
On Friday, in the largest US power acquisition in nearly two decades, Constellation Energy agreed a $16.4 billion deal to purchase Calpine from the investors which owned the independent power producer.
Unlike utilities, independent producers — such as the plants operated by AlphaGen — can sell power at market prices, allowing them to profit more when demand rises.
ArcLight, an energy-focused private equity firm founded in 2001, has owned, controlled, or operated more than 65 GW of generation assets and 47,000 miles of transmission infrastructure, according to the statement.
The ADIA investment into AlphaGen is subject to regulatory approvals and is expected to close in the first half of 2025, the statement added.
Oil Updates — prices remain near 4-month highs as Russia sanctions weighed
Updated 14 January 2025
Reuters
LONDON: Oil prices eased on Tuesday but remained near four-month highs as the impact of fresh US sanctions on Russian oil remained the market’s key focus.
Brent futures slipped 28 cents, or 0.4 percent, to $80.73 a barrel by 7:00 a.m. Saudi time, while US West Texas Intermediate crude fell 18 cents, or 0.2 percent to $78.64 a barrel.
Prices jumped 2 percent on Monday after the US Treasury Department on Friday imposed sanctions on Gazprom Neft and Surgutneftegas as well as 183 vessels that trade oil as part of Russia’s so-called “shadow fleet” of tankers.
“Headlines surrounding Russia oil sanctions have been the dominant driver for oil prices over the past week, and combined with resilient US economic data, the tighter supply-demand dynamics have been seeing some momentum,” said IG market strategist Yeap Jun Rong.
“Prices are taking a slight breather today. With prices rising fast and furious by close to 10 percent since the start of the year, it does prompt some profit-taking as event risks around upcoming US inflation data releases loom.”
The US producer price index will be released later in the day, with consumer price index data on Wednesday.
The stakes are high for Wednesday’s figures, where any rise in core inflation greater than the forecast 0.2 percent would threaten to close the door on further Federal Reserve interest rate cuts this year.
Lower interest rates typically help in stimulating economic growth, which could prop up oil demand.
“The recent rally to a three-month high does signal an improvement in sentiment, but while broad bearish pressures have eased for the time being, a stronger catalyst is still needed to fuel a sustained broader uptrend,” IG’s Yeap added.
While analysts were still expecting a significant price impact on Russian oil supplies from the fresh sanctions, the actual physical impact could be less.
“These sanctions have the potential to take as much as 700k b/d of supply off the market, which would erase the surplus that we are expecting for this year. However, the actual reduction in flows will likely be less, as Russia and buyers find ways around these sanctions – clearly there will be more strain on non-sanctioned vessels within the shadow fleet,” ING analysts said in a note.
Meanwhile, demand uncertainty from major buyer China could blunt the impact of the tighter supply. China’s crude oil imports fell in 2024 for the first time in two decades outside of the COVID-19 pandemic, official data showed on Monday.
“New sanctions on Russian tankers are expected to impact crude supply to China and India, though key players in these countries are still assessing the legal situation and possible workarounds,” said Sparta Commodities’ Philip Jones-Lux.
66% of organizations expect AI to have major cybersecurity impact in 2025: WEF
Only 37% have processes to determine the security of AI tools before implementation
Updated 14 January 2025
Zaira Lakhpatwala
DUBAI: The cybersecurity ecosystem has grown more complex with implications for both organizations and governments, according to the World Economic Forum’s latest “Global Cybersecurity Outlook” report released on Monday.
Sixty-six percent of organizations expect artificial intelligence to have a major impact on cybersecurity in 2025. But only 37 percent of organizations have processes in place to assess the security of AI tools before deployment, the report found.
Akshay Joshi, head of the WEF’s Centre for Cybersecurity, told Arab News: “Geopolitical uncertainties, advances in emerging technologies and supply chain vulnerabilities are among the key factors contributing to complexity in cyberspace, all of which point to the need for building cyber resilience across organizations and nations.”
The report calls for a shift in perspective from cybersecurity to cyber resilience, which it describes as an organization’s ability to mitigate the impact of significant cyber incidents on its goals and objectives.
Supply-chain challenges are the greatest barrier to achieving cyber resilience due to their increasing complexity, along with lack of visibility and oversight into the security levels of suppliers, according to the report.
Over half (54 percent) of large organizations consider supply-chain challenges as the greatest barrier to achieving cyber resilience.
Another significant factor is geopolitical tensions, which affect the cybersecurity strategy of nearly 60 percent of organizations surveyed in the report.
Geopolitics also affect risk perception with 45 percent of cyber leaders saying they are concerned about disruption of operations and business processes. And approximately 33 percent of CEOs say cyber espionage, loss of sensitive information and intellectual property theft are their top concerns.
There is widespread disparity regionally and economically when it comes to cyber resilience. For example, 35 percent of small organizations believe their cyber resilience is inadequate — a proportion that has increased sevenfold since 2022.
On the other hand, the share of large organizations reporting insufficient cyber resilience has nearly halved since 2022 down from 13 percent to 7 percent.
Regionally, only 15 percent of respondents in Europe and North America lack confidence in their country’s ability to respond to major cyber incidents targeting critical infrastructure. But this number rises to 36 percent in Africa and 42 percent in Latin America.
The Middle East region is more optimistic with respondents saying they are “confident” (36 percent) and “very confident” (36 percent).
“This confidence is a result of the unequivocal focus on cybersecurity in the Kingdom and across the wider region coupled with the importance given to global collaborative efforts,” Joshi explained.
In addition to these insights, the report highlighted the economic implications of cybersecurity and the role of leadership in prioritizing it as a core business enabler.
It also stressed the need for collaborative efforts to secure networks essential to the digital economy and for ways to effectively address the increasing shortage of cybersecurity skills.
Saudi Arabia’s Surj Sports Investment partners with Enfield Investment to boost global portfolio
Surj, established in 2023, is dedicated to fostering growth in the global sports sector and building a robust sporting ecosystem in Saudi Arabia and the wider Middle East
Updated 14 January 2025
Arab News
WASHINGTON: Saudi Arabia’s Surj Sports Investment Co. signed a strategic partnership agreement on Monday with US-based Enfield Investment Partners to expand and enhance investments in the global sports sector.
The partnership follows EIP’s recent launch of a $4 billion global fund aimed at investing in sports assets.
The two companies plan to explore opportunities in key areas, including clubs, leagues, media rights, and sports infrastructure, a statement issued on Monday said.
Surj, established in 2023, is dedicated to fostering growth in the global sports sector and building a robust sporting ecosystem in Saudi Arabia and the wider Middle East.
The company’s strategy focuses on direct investments in sports events and activities to enhance fan engagement and regional sports participation.
“We are delighted to partner with EIP, which has demonstrated a bold vision with the launch of its new sports assets fund,” said Surj CEO Danny Townsend.
“This collaboration marks a significant milestone in Surj’s journey to expand its presence in the American market and foster transformative investments in the global sports sector,” he added.
Jake Silverstein, co-founder and chairman of EIP, echoed Townsend’s sentiments.
“The launch of our Global Sports Assets Fund marks the beginning of an exciting chapter. Partnering with Surj Sports Investment enables us to align our shared vision for advancing the future of the sports industry,” he said.
As part of the collaboration, EIP plans to establish a regional headquarters in Riyadh to complement its Washington base, reflecting the partnership’s commitment to fostering growth in Saudi Arabia and beyond.
“The Kingdom’s extraordinary transformation is reshaping the global sports landscape,” Silverstein added. “Through this partnership, we aim to create meaningful and lasting impact, leveraging the resources and expertise of both parties to drive innovation and growth.”
The agreement highlights Saudi Arabia’s growing influence in the global sports arena, which has culminated in the Kingdom’s successful bid to host the 2034 FIFA World Cup.
Saudi Aramco secures $9bn in deals on first day of iktva forum
145 agreements signed in one day mark a leap toward strengthening local industries
Updated 13 January 2025
REEM WALID
RIYADH: Saudi Aramco has secured 145 agreements and memorandums of understanding worth an estimated $9 billion on the opening day of the In-Kingdom Total Value Add Forum and Exhibition 2025.
These deals are expected to drive the localization of products and services in Saudi Arabia, enhancing local content in the supply chain and fostering collaboration.
The agreements align with the core objectives of iktva, which aim to enhance supply chain efficiency and add value across Saudi Aramco’s operations.
By increasing local content, the program helps develop a more diverse and competitive energy industry in the Kingdom. It also supports the strategic goal of retaining 70 percent of procurement spending within Saudi Arabia, directly benefiting local businesses.
On its first day, the event highlighted 210 localization opportunities across 12 sectors, with a combined annual market value of $28 billion. These opportunities are seen as key to driving long-term industrial growth and reducing reliance on imports.
During the event, Saudi Aramco President and CEO Amin Nasser reflected on the company’s progress, noting that Aramco achieved a 67 percent local content score for its procurement of goods and services in 2024, up from just 35 percent in 2015.
“Since launching iktva in 2015, we’ve made significant strides. Back then, most of our materials and services were sourced from outside Saudi Arabia,” Nasser said.
Nasser emphasized that the success of iktva depends on its ability to create value for all stakeholders.
“For Aramco, a largely localized supply chain ensures continuity and helps us navigate operational challenges more effectively,” he said. “Since 2015, iktva has contributed over $240 billion to Saudi Arabia’s GDP and led to the creation of 350 local manufacturing facilities with investments totaling more than $9 billion.”
These new facilities cover a range of sectors, including chemicals, non-metallics, information technology, electrical and instrumentation, and drilling. As a result, 47 products are now being manufactured for the first time in Saudi Arabia.
Saudi Energy Minister Prince Abdulaziz bin Salman also addressed the gathering, announcing the Kingdom’s plans to enrich and sell uranium. “We’re committed to monetizing all our mineral resources, including uranium,” the minister said. “By enriching and selling uranium, along with producing yellowcake, we will secure essential raw materials for energy security.”
Prince Abdulaziz discussed the future of the petrochemical sector, emphasizing the importance of producing more advanced chemicals. “The future of petrochemicals is not just about plastics or polymers. We’re aiming for better, more sophisticated chemical products,” he noted.
Saudi Energy Minister Prince Abdulaziz bin Salman. SPA
Looking ahead, the energy minister spoke about potential collaborations with Egypt, indicating that a roadmap for joint ventures would be outlined in February. “We have much to look forward to with Egypt,” he said.
In a separate panel, Prince Abdulaziz highlighted the role of integrated collaboration between sectors in achieving the Kingdom’s Vision 2030.
He explained that major energy expansion projects are key to supporting industrial development by providing diverse energy sources and offering competitive prices for gas feedstock.
This, he added, would help stimulate the growth of manufacturing and facilitate the transition to cleaner energy.
Saudi Investment Minister Khalid Al-Falih also spoke during the ministerial dialogue session, stressing that standardized incentives for the industrial sector are critical to achieving Vision 2030.
These incentives, he said, will help accelerate the creation of new industrial facilities and strengthen local supply chains at all stages of the value chain, making Saudi industries more competitive.
The first day of the forum also saw the launch of ASMO, a joint venture between Saudi Aramco Development Co. and DHL. The new venture aims to transform the procurement and supply chain landscape across the Middle East and North Africa region.
Additionally, the opening ceremonies for the Novel Non-Metallic Solutions facility at King Salman Energy Park and the NMDC Offshore Fabrication Yard at Ras Al-Khair were held.
Novel, a partnership between Aramco and Baker Hughes, is focused on introducing a range of composite products to the market, while the NMDC fabrication yard will provide maritime engineering services and fabricate equipment and materials.
Running from Jan.13-16 in Dammam, the iktva Forum continues to spotlight critical infrastructure projects and collaborative opportunities aimed at advancing the local supply chain ecosystem and supporting the Kingdom’s long-term industrial goals.
