MADRID: UAE’s renewable energy company Masdar said on Tuesday it has reached an agreement to buy green energy firm Saeta Yield from Canada’s Brookfield’s in a deal valuing the company at $1.4 billion.
Under the deal, Masdar is acquiring 745 megawatts of mostly wind assets and 1.6 gigawatts of projects under development in Spain and Portugal, marking one of the largest such deals in the Iberian region.
This is Masdar’s second big green energy deal in recent months in Spain, one of Europe’s largest wind and solar markets. It follows the agreement to buy a minority stake in 48 solar plants controlled by Endesa — a unit of Italy’s Enel for 817 million euros.
Higher interest rates brought about a “normalization” of asset prices, Masdar’s CFO told Reuters after the deal with Endesa, adding that the company was seeking more opportunities in the region.
The agreement with Brookfield includes 538 MW of wind assets in Spain and 144 MW of wind assets in Portugal, with the remaining being solar power assets in Spain. Some solar thermal plants controlled by Saeta are not part of the sale process and will remain under Brookfield’s control.
Closing of the deal is expected around the end of the year.
“Saeta is the perfect complement to Masdar’s portfolio in Europe, especially after the recent partnership with Endesa,” Masdar CEO Mohamed Jameel Al Ramahi said.
Spain and Portugal’s abundant solar and wind resources have drawn both domestic and foreign firms eager to leverage the growing demand for renewable energy.
Controlled by UAE’s power and water firm TAQA, its national oil company ADNOC and sovereign wealth fund Mubadala Investment Company, Masdar aims to grow its capacity to 100 GW of renewable energy by 2030.
Brookfield acquired and delisted Saeta, founded by Spanish construction company ACS, in 2018 for 1 billion euros.
UAE’s Masdar buys Brookfield’s Saeta Yield in $1.4bn deal
https://arab.news/v9rub
UAE’s Masdar buys Brookfield’s Saeta Yield in $1.4bn deal
- Closing of the deal is expected around the end of the year
- Agreement with Brookfield includes 538 MW of wind assets in Spain and 144 MW of wind assets in Portugal
Ajman’s exports to Saudi Arabia up 29%, latest figures show
RIYADH: Ajman’s exports to Saudi Arabia reached 859.8 million dirhams ($234 million) in 2023, marking a 29 percent year-on-year increase, according to newly released figures.
A report from the emirates’s Department of Economic Development, in collaboration with the Ajman Chamber of Commerce and Industry, revealed that the Kingdom was the top destination for shipments, accounting for 14 percent of the total value of export certificates.
The strong trade momentum continued into 2024, with exports to the Kingdom reaching 397.6 million dirhams in the first half of the year, reflecting significant developments in commercial relations that have enhanced economic partnerships and driven trade exchange between the two sides.
This comes as trade volume between the UAE and Saudi Arabia reached $17.53 billion in the first half of 2024, reflecting a growth rate of 22.5 percent compared to the same period in 2023, according to data from the Kingdom’s General Authority for Statistics.
Salem Al-Suwaidi, director general of the Ajman Chamber of Commerce and Industry, said: “The shared history and unified visions have led Saudi Arabia and the UAE to spearhead economic developments, regional stability, and the launch of major developmental initiatives and projects, thus increasing foreign investment attraction.”
As of September, the number of Saudi investors in Ajman reached 685 across various sectors, marking a 13 percent increase in the growth rate of investors in the first half of 2024 compared to the same period last year.
Abdullah Ahmed Al-Hamrani, director general of the Department of Economic Development in Ajman, noted a significant rise in new licenses issued to Saudi investors, which surged by 114 percent in the first half of 2024 compared to the same period last year.
This reflects an increase in the volume and diversity of investments across various economic activities.
He highlighted that Saudi investments are notably concentrated in the construction and contracting sector, along with hospitality and restaurants, general trade, retail trade, and real estate.
Saudi investors commended the Ajman government for fostering an attractive investment environment through supportive legislative and regulatory frameworks, which contribute to business success, according to a press release.
They also appreciated the incentives and facilities provided through the electronic services portal, which have facilitated their growth and success in various projects.
MAGRABi, Rivoli Vision announce merger in shake-up for Middle East eyewear market
RIYADH: The Middle East’s eyewear market is set to be reshaped by a merger between MAGRABi Retail Group and Rivoli Vision which will see a focus on innovation and customer experience.
According to Amin Magrabi, chairman of MAGRABi Retail Group, the deal will see store concepts integrated with digital platforms to offer a comprehensive range across luxury, premium, and mainstream segments.
MAGRABi will take over 89 Rivoli Vision stores across the UAE, Qatar, Oman, and Bahrain, expanding the firm’s footprint to seven countries and over 290 locations by the end of 2024.
A perfect fit for the future
Speaking to Arab News, Magrabi described the creation of the MAGRABi-Rivoli Enterprise as “a very exciting announcement for us.”
He added: “The industry is maturing, and as industries mature, scale becomes important. We have been in discussions for a while, looking for the perfect fit, and I truly believe that Rivoli Vision is a perfect fit for us in terms of the brand, the banner they bring, Rivoli EyeZone, the culture, the team, and the location.”
Magrabi highlighted that the synergy between the two companies is grounded in their shared vision for the future of the industry.
He underscored the significance of aligning in vision and culture, emphasizing that success hinges on a mutual understanding of the industry, a complementary approach, and a shared commitment to enhancing customer experience.
Ramesh Prabhakar, vice chairman and managing partner of Rivoli Group, said in a press release: “MAGRABi is the ideal partner to form this joint enterprise, positioning us as the top eyewear retailers in key geographies and economic centers of the Middle East.”
Magrabi also pointed out that both companies’ shareholders share a unified perspective on the future, making their collaboration with Rivoli Vision and MAGRABi Retail Group both effective and harmonious.
A future-ready investment strategy
The expansion is accompanied by a robust investment strategy aimed at enhancing the end-to-end customer experience.
“With the additional network and scale that comes with it, it obviously allows us to further invest and to increase our investments in enhancing the end-to-end customer experience, both offline and online,” Magrabi shared.
Yasser Taher, CEO of MAGRABi Retail Group, also shared his perspective on the merger’s financial and operational impact, emphasizing the anticipated growth and strategic advantages.
“The newly merged entity is expected to deliver double-digit revenue growth and high double-digit EBITDA (earnings before interest, taxes, depreciation, and amortization) growth, from identified synergies, during the period from 2025 – 2027,” Taher said.
He further elaborated on the operational strategies post-merger, saying: “We expect the integration timeline plan to be completed within a period of 15 months after closing. The synergy realization plan will overlap with the integration plan and should be completed over a period of 24 months.”
Completion of the transaction remains subject to satisfaction of commercial and regulatory conditions.
Taher also gave details about a “new headless online platform” which will see customers engage with the company on any platform at any time, from any place.
He went on: “They can click and collect from the store or get it delivered to their house. They can hold products in the store, book their eye tests, and do all this through the website or the app on their phone.”
MAGRABi Retail Group has already committed to substantial investments in digital transformation and store enhancements, with annual expenditures exceeding SR100 million ($26.6 million) over the past three years.
Magrabi expects these numbers to increase significantly in the coming years, reinforcing the company’s position as a leader in the region’s eyewear market.
“We will carry on making those investments, and they will obviously increase, not insignificantly above what we have been doing previously,” the chairman said.
He also discussed the strategic improvements expected in supply chain and inventory management due to the merger.
He said: “The scale of the new entity will enable higher investment into supply chain automation, including further investment in our manufacturing facilities, warehouse operations, our central glazing lab network, and last-mile delivery fulfillment.”
Magrabi added that the impact will be measured through a more efficient supply chain, faster lead time delivery customers, improved costs, and an optimized inventory value.
Strategic market leadership
The merger is also set to strengthen the Group’s strategic positioning across the Middle East.
Magrabi said: “Our three-year strategy plan from 2025 to 2027 is really to focus on how we can establish leadership across all seven countries we now operate in. We plan to carry on our leadership position in the region.”
The firm’s approach to market segmentation is clear.
“As this market matures, there will be segmentation in the market. From our perspective, we’ve segmented the market into four segments: luxury, premium, mainstream, and value. Our intention is to focus on luxury, premium, and mainstream,” Magrabi added.
He went on to say that these three segments cover about 60 percent of the population and about 80 percent of the market size.
“We intend to tackle these segments with multiple banners and customer propositions. For example, MAGRABi focuses on the luxury segment, the MAGRABi banner, and the retail chain, while Rivoli EyeZone is a premium banner,” the chairman said.
Taher highlighted the anticipated growth in digital sales, which is a key part of their strategy, saying: “We are expecting a 50 percent year-on-year increase in online sales, every year within the period from 2025 – 2027.”
An institutionalization journey
As MAGRABi Retail Group continues to grow, the company is also committed to institutionalizing its operations and governance.
Magrabi highlighted the importance of this journey, saying: “We behave and run the organization as if it’s a listed company. That is the key objective of shareholders and the board. We have a new board with six independent board directors, subcommittees, a new governance framework, and an upgraded enterprise-wide platform.”
He added: “We are ready to access public markets, whether they be equity or bond markets. However, the final decision as to when we will access those markets has not been taken so far by the shareholders and the board.”
Commitment to ESG and industry standards
The Group’s commitment to environmental, social, and governance principles is central to its long-term strategy.
The company has taken significant steps to embed these into its operations, with the recent addition of an ESG expert to its board.
“ESG is something that’s core and central to us,” Magrabi said. “We are finalizing our ESG framework and strategy for the next three years.”
One of the key areas of focus is raising industry standards, a commitment exemplified by the establishment of the MAGRABi Optical Academy in Saudi Arabia.
“We’ve partnered with universities for the optometry programs, supporting graduates and raising the standard of opticians and optometrists in Saudi Arabia. This is a program we’d like to bring across the Middle East and the region,” Magrabi stated.
Additionally, the company is focused on circular programs aimed at refurbishing products and maintaining responsible supply chains, alongside continued efforts to provide access to eye care and eyewear for those less fortunate.
“We will carry on investing in these areas, and this merger will empower and accelerate these initiatives,” he added.
A stronger, united future
The integration of Rivoli Vision into MAGRABi Retail Group brings together not just complementary networks and products, but also a shared culture and values.
“Over the last five years, they (Rivoli) have built an amazing organization, which is a great fit for us. They built a fantastic brand, a great network, and most importantly, they have a great team and management. We’re very excited to bring that management within our organization,” Magrabi said.
Looking ahead, MAGRABi Retail Group is optimistic about the journey ahead. The company’s CEO said the market is maturing, and the time is right for this transformation.
“We’re super happy that Rivoli Vision has decided to join us on this journey. This is the start, and I think others will want to join what we are doing,” Magrabi said.
He added: “This transformation is an industry-wide shift, and it’s not just customers calling for this; our developers, vendors, and insurance partners have all expressed a need for differentiated banners and propositions.”
MAGRABi Retail Group’s transformation is far from over, according to the chairman, who said: “This is only the beginning.”
He added: “As one of our values states: ‘We earn our wins, we share our wins, together we see our growth multiply.’ So, I invite our customers, vendors, and partners to join us. This is a very exciting time.”
Oil Updates – prices climb on fresh China stimulus, Middle East tensions
SINGAPORE: Oil prices rose on Tuesday on news of monetary stimulus from top importer China and concerns that tensions in the Middle East could hit regional supply, while a major hurricane loomed over the US, the world’s biggest crude producer.
Brent crude futures for November were up 84 cents, or 1.14 percent, at $74.74 a barrel, as of 9:20 a.m. Saudi time. US WTI crude futures for November rose 92 cents, or 1.31 percent, to $71.29.
“WTI has gained this morning after China moved to lower its key lending rates. The crude oil market has been looking desperately toward Chinese authorities for further easing measures to counter the economic slowdown,” said Tony Sycamore, market analyst at IG.
“Today’s announcement will go some way to removing downside risks to the crude oil price,” Sycamore said.
The rally in oil prices may not, however, be sustainable in the medium term, as internal demand may continue to be weak while more accommodative monetary policies are not matched by expansionary fiscal policies, said Kelvin Wong, senior market analyst at OANDA.
Earlier in the day, China’s central bank unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back toward the government’s growth target, but analysts warned more fiscal help was vital to hit these goals.
The broader-than-expected package offering more funding and rate cuts marks Beijing’s latest attempt to restore confidence after a slew of disappointing data raised concerns of a prolonged structural slowdown.
In the Middle East, a key oil-producing region, Israel’s military said it launched airstrikes against Hezbollah sites in Lebanon on Monday, which Lebanese authorities said killed 492 people and sent tens of thousands fleeing for safety in the country’s deadliest day in decades.
Israel and Hezbollah, an Iranian-backed group based in Lebanon, exchanged fire after thousands of pagers and walkie-talkies used by Hezbollah members exploded last week. The attack was widely blamed on Israel.
“The oil market has been concerned that rising tensions in the region were dragging the OPEC oil producer closer to engagement,” ANZ bank said in a note, referring to Iran.
“Traders are also keeping an eye on the weather. The US Gulf Coast is at risk of a hurricane strike by the end of the week as a patch of turbulent weather in the Atlantic consolidates.”
US oil producers were scrambling to evacuate staff from oil production platforms in the Gulf of Mexico as the second major hurricane in two weeks was predicted to tear through offshore oil-producing fields. Several oil companies paused some of their production.
Aramco to issue dollar-denominated sukuk targeting global investors
RIYADH: Saudi energy giant Aramco plans to issue US dollar-denominated sukuk under its SA Global Sukuk Limited’s Trust Certificate Issuance Programme, according to a filing on the Tadawul exchange.
The sukuk will represent direct, unsubordinated, and unsecured obligations of SA Global Sukuk Limited. The size of the issuance will depend on market conditions and investor demand at the time of the offering, the filing noted.
Proceeds from the issuance will be used for general corporate purposes, with a focus on supporting Aramco’s ongoing strategic initiatives, enhancing its balance sheet, and funding expansion across its global operations.
This move aligns with Aramco’s long-term vision of ensuring financial sustainability and operational efficiency as it adapts to a dynamic global energy landscape.
The issuance is subject to approval from regulatory authorities in the relevant jurisdictions. Additionally, the sukuk will comply with Rule 144A/Reg S offering requirements under the US Securities Act of 1933, as amended, allowing Aramco to target institutional investors in both the US and international markets.
The company confirmed that the issuance will follow the stabilization rules of the Financial Conduct Authority and the International Capital Market Association, ensuring a regulated and orderly process.
An application will be submitted for the sukuk to be listed on the FCA’s official list and traded on the London Stock Exchange’s main market, providing visibility and liquidity for investors.
Aramco has appointed several leading financial institutions as active joint bookrunners for the issuance, including Al Rajhi Capital, Citi, and Dubai Islamic Bank PJSC. Other institutions involved are First Abu Dhabi Bank, Goldman Sachs International, and HSBC, as well as J.P. Morgan, KFH Capital, and Standard Chartered Bank.
These institutions will lead a series of fixed-income investor meetings starting on Sept. 24. The meetings are expected to attract strong interest from global investors, given Aramco’s strong credit rating and the appeal of sukuk as a Shariah-compliant investment.
In addition to the active bookrunners, several other financial institutions have been named passive joint bookrunners. These include Abu Dhabi Commercial Bank PJSC, Albilad Capital, and Alinma Investment. Other institutions involved BOC International, Emirates NBD Capital, and Mizuho, as well as MUFG, NATIXIS, Sharjah Islamic Bank, and SMBC Nikko.
These institutions will support the successful placement of the sukuk in various international markets.
Putin calls for greater BRICS role in global energy markets
- Russian president speaks out ahead of important annual energy forum in Moscow
RIYADH: President Vladimir Putin called on Monday for a greater role for the BRICS bloc in global energy markets ahead of a significant annual energy forum this week in Russia.
“It is obvious that in the new geopolitical realities, cooperation in the energy sector should serve to strengthen national economies, help solve priority social problems, and improve people’s quality of life,” he said.
“It is crucial to agree on common principles for our countries in the just energy transition, and outline ways to strengthen the role of BRICS in the global energy dialogue.”
Russia is the world’s largest oil exporter after Saudi Arabia. From Thursday Moscow is hosting the three-day Energy Week International Forum. Saudi delegates have attended previous forums, but it is not clear if they will do so this year.
BRICS was founded in 2009 for Brazil, Russia, India and China to challenge a world order dominated by the US and Western allies. It has expanded into a geopolitical bloc that includes the UAE, Iran, Egypt, South Africa and Ethiopia. Saudi Arabia has an invitation to join, which it is considering.
