UAE’s PureHealth to buy UK hospital operator Circle Health Group for $1.2bn

PureHealth signing an agreement to buy British hospital operator Circle Health Group in London. (WAM)
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Updated 29 August 2023
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UAE’s PureHealth to buy UK hospital operator Circle Health Group for $1.2bn

  • Acquisition marks company’s first foray into UK market

DUBAI: Abu Dhabi-based PureHealth has signed an agreement to buy British hospital operator Circle Health Group for 4.41 billion UAE dirhams ($1.2 billion), Emirates News Agency reported.

PureHealth is the UAE’s largest healthcare provider and the acquisition marks its first foray into the UK market.

According to the report, Circle Health Group has the UK’s largest network of private hospitals and was the first European healthcare provider to enter the Chinese market.

Under the agreement, PureHealth will acquire 100 percent of the group’s portfolio, which includes orthopedics, oncology, cardiothoracic surgery, ophthalmology, neurosurgery and general surgery, as well as the UK’s first purpose-built rehabilitation hospital.

“This acquisition marks an important milestone in our journey toward creating a global healthcare network which revolutionizes patient care,” PureHealth Group CEO Farhan Malik said.

“Our mission at PureHealth is to drive scientific innovation to unlock longevity and greater quality of life for humankind. Through integrating the expertise of both organizations, we positively impact the lives of patients globally.”
 


Oil Updates – prices little changed as demand weakness offsets sanctions-driven supply risks

Updated 5 sec ago
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Oil Updates – prices little changed as demand weakness offsets sanctions-driven supply risks

LONDON: Oil prices were little changed in Asian trade on Thursday as forecasts of weak demand and a higher-than-expected rise in US gasoline and distillate inventories stemmed gains from an additional round of EU sanctions threatening Russian oil flows.

Brent crude futures were up 14 cents at $73.66 a barrel at 8:19 a.m. Saudi time. US West Texas Intermediate crude futures rose 6 cents to $70.35. Both benchmarks rose over $1 each on Wednesday.

OPEC cut its demand growth forecasts for 2025 for the fifth straight month on Wednesday and by the largest amount yet.

“Investors will be closely monitoring the IEA’s market balance estimates for 2025, which will reflect OPEC’s recent announcement,” analysts at ANZ said in a note on Thursday.

In the world’s top oil consumer, the US gasoline and distillate inventories rose by more than expected last week, according to data from the Energy Information Administration.

Weak demand, particularly in top importer China, and non-OPEC+ supply growth were two factors behind the move. However, investors anticipate a rise in Chinese demand, after Beijing unveiled plans this week to adopt an “appropriately loose” monetary policy in 2025, which could spur oil demand.

Global oil demand rose at a slower-than-expected rate this month, but has remained resilient, analysts at JPMorgan said in a note on Thursday.

“Growth (in oil demand) over the past week has been tempered by a slight reduction in jet fuel consumption across much of the world,” the note read.

Chinese crude imports also grew annually for the first time in seven months in November, up more than 14 percent from a year earlier.

The market will now watch for cues on interest rate cuts by the US Federal Reserve next week.

Prices rose on Wednesday after EU ambassadors agreed to a 15th package of sanctions on Russia over its war against Ukraine. They targeted the “shadow fleet” of ships that has aided Russia in bypassing the $60 per barrel price cap imposed by the G7 on Russian seaborne crude oil in 2022, and has helped keep Russian oil flowing.

The Kremlin said that reports of a possible tightening of US sanctions on Russian oil suggested the administration of President Joe Biden wants to leave a difficult legacy for US-Russia relations.

Treasury Secretary Janet Yellen said on Wednesday that the US is continuing to look for creative ways to reduce Russia’s oil revenue, adding that lower global demand for oil created an opportunity for more sanctions.


China to invest $1 billion to set up medical city in Pakistan — president’s office

Updated 10 min 36 sec ago
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China to invest $1 billion to set up medical city in Pakistan — president’s office

  • Delegation led by Chinese Consul General in Karachi, Yang Yundong, calls on Zardari 
  • Investments in agriculture, livestock, energy, transport, and manufacturing discussed

ISLAMABAD: A Chinese delegation that called on President Asif Ali Zardari has expressed interest in investing $1 billion to establish a medical city in Pakistan, state broadcaster Radio Pakistan said on Thursday.

Longtime ally China has invested heavily in Pakistan through the $65 billion China-Pakistan Economic Corridor (CPEC) that encompasses infrastructure, energy and other projects and is part of Chinese President Xi Jinping’s Belt and Road Initiative.

But ties have frayed in recent months as Beijing has publicly voiced concerns about the security of its workers and projects in Pakistan amid a rise in attacks by militants on Chinese nationals and projects. Media reports in recent weeks have also widely speculated that China has said it will not continue with CPEC projects unless Pakistan can guarantee security.

“The Chinese delegation expressed interest to invest one billion dollar to establish a medical city in Pakistan to advance the country’s health care sector,” Radio Pakistan reported after a Chinese delegation led by the consul general in Karachi, Yang Yundong, called on Zardari on Wednesday evening. 

“The delegation also expressed interest to invest in diverse sectors of Pakistan’s economy, especially agriculture, livestock, energy, transport, and manufacturing.”

“Pakistan is committed to facilitating and supporting Chinese investors in every possible way,” the report quoted the president as telling the delegation. “He emphasized the need for enhanced interaction between the people of the two countries, especially between the investors and businesses, to increase bilateral trade and economic relations.”

Zardari also spoke about the southwestern deep-sea port of Gwadar that China is developing under CPEC, saying it would soon become a “regional trade and economic hub that would not only improve regional connectivity but would also boost regional trade and economic cooperation.”

Gwadar is on the Arabian Sea in the Pakistani province of Balochistan, a mineral-rich region plagued by a decades-long separatist insurgency. China has invested heavily in the province, including by developing Gwadar, which is key to CPEC.

The China Overseas Port Holding Company (COPHC), which operationally handles Gwadar, plans to eventually expand the port’s capacity to up to 400 million tons of cargo per year. Long term plans for the port require a total of 100 berths to be developed by 2045. For now, Gwadar is underutilized for commercial import and export due to reasons such as distance from the marketplaces of the country, security and services availability.

Earlier this year, Prime Minister Shehbaz Sharif had ordered that 50 percent of all public sector cargo be brought to Pakistan through Gwadar. The instructions subsequently received cabinet approval in September.


COP16: Blended financing key to Saudi agri-tech innovation, say experts

Updated 11 December 2024
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COP16: Blended financing key to Saudi agri-tech innovation, say experts

  • SALIC has expanded its focus beyond global food security to also strengthen local GDP and address Saudi Arabia’s trade deficit
  • Panelists discussed the importance of government incentives to encourage private sector participation

RIYADH: Saudi Arabia’s innovative use of blended financing is playing a key role in advancing sustainable agricultural practices and addressing food security challenges, a senior executive said at COP16 in Riyadh. 

During a panel session, Hamad Al-Batshan, senior adviser at Saudi Agricultural and Livestock Investment Co., discussed the importance of blended financing as a tool for de-risking investments in agriculture and technology. 

“Blended financing is a significant step forward into the future, adopting new technology and mitigating risks within Saudi Arabia,” he said, emphasizing its role in supporting high-risk sectors such as climate technology. 

Al-Batshan added: “Without having this enablement tool, it will be more challenging to mobilize capital from private sector or traditional investors toward riskier domains.” 

Al-Batshan also praised the creation of the Research, Development and Innovation Authority, which he believes is crucial for linking government and private sector efforts. 

“De-risking investment is the way to go,” he said, highlighting SALIC’s alignment with the RDI strategy to drive sustainable innovation in health, sustainability, energy, and future economies. 

SALIC, a Public Investment Fund-owned entity, has expanded its focus beyond global food security to also strengthen local gross domestic product and address Saudi Arabia’s trade deficit. 

Al-Batshan stressed the need to “transform the local agriculture sector to mitigate the risks of water security and to utilize state-of-the-art technology” to achieve these goals. 

Ahmad Al-Saidalani, founder and CEO of ROOTS, also emphasized the importance of blended financing in advancing early-stage innovations. 

“Blended finance is an incredible tool to de-risk investments for investors in solutions and technologies that address these challenges,” Al-Saidalani said. 

Anne Le More, a UN Food Systems Champion, described blended finance as a niche but essential mechanism for impact investment. 

“Blended finance can really be a useful tool, especially in areas which are more impact investment, where we only look at risks and benefits,” Le More said. She added that concessional loans and technical assistance, especially for startups, make blended financing particularly valuable. 

“The beauty about blended finance is that it really can bring the best of the public world and the private sector world,” she said. 

Panelists also discussed the importance of government incentives to encourage private sector participation. 

“The government clearly needs to incentivize the private sector... sometimes not necessarily through financing, but by improving the investment ecosystem,” Al-Batshan said, suggesting measures such as tax cuts and concessional loans. 

Reflecting on lessons learned from the COVID-19 pandemic, Al-Batshan stressed the urgency of bolstering Saudi Arabia’s supply chain. 

“It’s very important for us to look seriously about the interruption in the world market and try to invest locally to mitigate this type of risk,” he said. 

Addressing hurdles in sustainability investments 

In another panel session, Hasan Al-Abdulgader, head of produced water treatment R&D at Saudi Aramco, outlined the challenges faced by startups and small to medium enterprises in Saudi Arabia’s sustainability sector, particularly in funding and regulatory compliance. 

“SMEs and businesses here in Saudi have been facing a constantly evolving regulatory environment,” he said. 

While he praised the government’s progress in developing robust regulations, he noted that regulatory maturity in the sustainability sector remains a challenge for smaller businesses. 

Al-Abdulgader pointed out that these challenges also present opportunities for innovation, such as Saudi startups using generative AI to help businesses comply with changing regulations and stay competitive in the sustainability sector. 

On the funding side, Al-Abdulgader highlighted the scarcity of venture capital firms in the region that specialize in environmental, social, and governance investments. 

“Private equities don’t have the appetite to wait for 10-plus years to reap the benefits and returns of these technologies,” he said. 

He called for a hybrid approach, involving collaboration among government, universities, and the private sector to de-risk investment and support commercialization. 

“We need more investment, more awareness when it comes to ESG in general, but also a more top-down approach to really incentivize these investment firms and universities to start with low TRL levels,” he added, emphasizing the critical need to sustain startups through the piloting and demonstration stages. 

Jamil Wayne, co-founder of Riffle Ventures, echoed these sentiments, highlighting the long timelines required for high-impact climate technology investments, such as green cement. 

“To create, though, the solutions that are going to be needed to replace the current assets that we use in cement production, we have to almost take a completely different mindset when it comes to investing and waiting for returns,” he said. 

He added: “We’ve gotten spoiled as investors by the software period, where, in that same amount of time, you can have about five to 10 unicorns created and many IPOs. For climate technology, that same timeframe is just the starting point for a solution to reach the market.” 

Wayne emphasized the need for a tailored investment strategy, combining patient capital and government support, to allow climate technology solutions to scale and achieve commercial viability. 

Panelists agreed on the need for innovative funding mechanisms, regulatory clarity, and public-private partnerships to overcome these challenges and accelerate progress in the sustainability sector. 


Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award

Updated 11 December 2024
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Saudi Arabia’s PIF wins 2024 Middle East PMO of the Year award

  • PIF is involved in numerous large-scale projects to transform the Kingdom into a global tourism hub
  • It launched its PMO in 2016 and it has since expanded from a five-person team to 77 full-time employees

RIYADH: Saudi Arabia’s Public Investment Fund has been awarded the 2024 Middle East Project Management Office of the Year, recognizing its role in advancing the Kingdom’s Vision 2030 transformation plan. 

In addition to the regional honor, PIF ranked second globally and received three Excellence Distinctions at the PMO Global Awards. 

The PMO Global Alliance presented the awards, highlighting PIF’s leadership in the project management field. “This recognition exemplifies the superior role that PIF is playing as a leading organization in the project management field,” PIF said in a post on X. 

The sovereign wealth fund has been a key driver of Saudi Arabia’s economic diversification efforts since the launch of Vision 2030 in 2016. 

The fund, which manages $925 billion in assets, is involved in numerous large-scale projects to transform the Kingdom into a global tourism hub by the end of the decade. 

“The PMO is considered as one of the critical functions and the main enablers in achieving PIF targets under Vision 2030,” said Saad Al-Kroud, the chief of staff and secretary-general to the board of directors at PIF. 

PIF launched its PMO in 2016 and it has since expanded from a five-person team to 77 full-time employees, according to PMOGA. 

The PMO currently operates with an annual budget of $7 million and oversees 66 active projects valued at $17 billion. PMOGA said that the number of projects managed by PIF’s PMO increased by 76 percent from 2016 to 2023, with the project success rate rising by 94 percent during the same period. 

“We initially were primarily focusing on managing our strategic projects, in addition to establishing our giga-projects and the portfolio companies across various sectors and domains,” said Areej Naqshbandi, senior director and PMO head at PIF. 

Globally, PIF’s PMO ranked second, while SPC Brazil was named the 2024 World PMO of the Year. SPC Brazil’s office manages between 35 and 65 projects annually. 

Other regional winners included Waha Oil Co. from Libya as Africa PMO of the Year, Indonesia’s Persero as Asia-Pacific PMO of the Year, and ING Spain and Portugal as Europe PMO of the Year. Moffitt Cancer Center in the US received the 2024 North America PMO of the Year honor. 

PMOGA, founded in 2017, is one of the largest global communities of PMOs and project management professionals, with members across over 100 countries, according to its website. 


Closing Bell: Saudi main index closes in red at 12,149

Updated 11 December 2024
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Closing Bell: Saudi main index closes in red at 12,149

  • MSCI Tadawul Index decreased by 5.94 points, or 0.39%, to close at 1,526.38
  • Parallel market Nomu lost 278.70 points, or 0.88%, to close at 31,278.91

RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 44.45 points, or 0.36 percent, to close at 12,149.19.

The total trading turnover of the benchmark index was SR6.06 billion ($1.61 billion), as 90 of the listed stocks advanced, while 138 retreated.   

The MSCI Tadawul Index decreased by 5.94 points, or 0.39 percent, to close at 1,526.38.

The Kingdom’s parallel market Nomu dipped, losing 278.70 points, or 0.88 percent, to close at 31,278.91. This comes as 40 of the listed stocks advanced while 44 retreated.

The best-performing stock of the day was Etihad Atheeb Telecommunication Co., with its share price surging by 3.36 percent to SR116.80.

Other top performers included Sumou Real Estate Co., which saw its share price rise by 3.31 percent to SR40.60, and Dallah Healthcare Co., which saw a 3.3 percent increase to SR162.60. 

Saudi Real Estate Co. saw its share price surge by 3.25 percent to reach SR25.40, while Seera Group Holding saw an increase of 3.13 percent to reach SR23.76.

The worst performer of the day was Jahez International Co. for Information System Technology, whose share price fell 7.16 percent to SR31.75.

Anaam International Holding Group also saw a decline of 7.04 percent, with its shares dropping to SR1.32, while Banan Real Estate Co. experienced a 4.87 percent decrease, bringing its shares down to SR7.03.

Moreover, Zamil Industrial Investment Co. saw a decline of 3.94 percent, with its share price dropping to SR31.70, while Acwa Power Co. experienced a 3.23 percent decrease, bringing its share price down to SR383.20.

On the parallel market Nomu, the top performer was Enma AlRawabi Co., with its share price surging by 12.21 percent to reach SR23.90.

In second place was Molan Steel Co., which saw a 10.98 percent surge in terms of share price to SR3.64, followed by Purity for Information Technology Co., which witnessed an 8.63 percent surge in its share price to reach SR21.90.

Nomu’s worst two performers for the day were Leen Alkhair Trading Co., whose share price dipped by 9.83 to reach SR23.40, and Alwasail Industrial Co.’s price dropped by 7.32 percent to reach SR3.04.

Gas Arabian Services Co. followed with a dip of 7.12 percent in its share price, reaching SR18.