DUBAI: UAE and Qatar markets closed higher for the week, but buying momentum slowed yesterday as cautious investors waited to see if the US Federal Reserve would launch another round of money printing to support the world’s largest economy.
Abu Dhabi’s Etisalat helped lift the UAE capital’s index to a six-month high after the telecom operator sold a stake in Indonesia’s PT XL Axiata.
Shares in Etisalat gained 1.1 percent to their highest close since June 25. The Gulf’s No.2 operator said it raised about $510 million from the sale of a 9.1 percent stake in Axiata. It has retained a 4.2 percent holding.
Abu Dhabi’s measure rose 0.3 percent to its highest close since March 15, up 1.8 percent for the week.
“We have seen enough positive signals globally and locally, that even if there is no QE3 (quantitative easing), the news in the past days justifies such a rally,” said Sebastien Henin, portfolio manager at The National Investor.
The US Federal Reserve appears set to launch a third round of quantitative easing on Thursday.
Back in Abu Dhabi, banks stocks also gained. First Gulf Bank and National Bank of Abu Dhabi rose 0.2 and 0.3 percent respectively. FGB is up 28.4 percent 2012, outperforming the main index, which is up 8.6 percent.
“In markets like the UAE, the worst is behind us and the future is bright,” said Sebastien Henin, portfolio manager at The National Investor.
“For the medium and long term, there are names you could buy right now like FGB and NBAD. When non-performing loans reach a peak, it will be a major catalyst for the market and people will be looking at banks in a different way.”
The central bank this week said finalyzing debt restructuring deals with various entities would likely raise UAE banks’ non-performing loans to a peak around an average of 8 to 9 percent, up from 7.2 percent at 2011-end.
Dubai’s index rose 0.2 percent. It has traded within a 30-point range for the last three weeks as investors chased short-term gains due to a lack of catalysts to attract longer-term buyers.
In Qatar, the measure fell 0.09 percent, retreating after Wednesday’s 1.1 percent rise, its largest in 12 months after Germany’s approval of euro zone’s new bailout fund lifted investor risk appetite. The bourse was up 1.1 percent for the week.
Egypt’s index fell 1.1 percent a day after reaching its highest level since the uprising that toppled Hosni Mubarak, as investors offloaded holdings to cash in on a 12-week rally.
“Sellers appeared in the market yesterday and this is just a continuation,” said Teymour el-Derini at brokerage Naeem.
Bourse trading has picked up since a new president took office in June and formed a technocratic government that has appealed to foreign donors to support the struggling economy.
Buying by mostly retail investors, optimistic the government can avert a balance of payments crisis, has made Egypt’s equity market among the world’s top performers in 2012.
Traders said some of the foreign investors who were avoiding Egypt for fear of a sharp currency devaluation were taking a renewed interest.
“We might lose another 100 points but it would just be a breather,” added Derini.
Elsewhere, Kuwait’s measure ended 0.7 percent lower, down for a fourth time this week.
The market corrected following a recent rally. The index rose 4.6 percent between Aug. 12 and Sept. 6 after slumping to an eight-year low on political and financial woes.
UAE, Qatar markets close higher
UAE, Qatar markets close higher
Saudi Arabia’s Hafr Al-Batin forum seals $4.5bn in investments
RIYADH: The Hafr Al-Batin Investment Forum 2025, held in Saudi Arabia’s Eastern Province, concluded with the signing of seven agreements totaling SR17 billion ($4.5 billion) across key sectors, underscoring the region’s growing economic potential.
The event, organized by the Hafr Al-Batin Chamber of Commerce in collaboration with the Federation of Saudi Chambers and hosted at the University of Hafr Al-Batin, aimed to position the province as a competitive hub for both local and international investors, in alignment with Saudi Arabia’s Vision 2030.
The forum was inaugurated by Eastern Province Gov. Prince Saud bin Nayef Al-Saud, who emphasized the province’s strategic advantages for investors.
He highlighted Hafr Al-Batin’s competitive investment landscape, noting its diversified economic opportunities and advantageous location, making it an ideal destination for investors looking to capitalize on sustainable growth prospects.
He also underscored the region’s infrastructure developments, which are critical for attracting investment and creating job opportunities for Saudi nationals.
The agreements signed during the forum marked a significant milestone in Hafr Al-Batin’s economic development, with the forum serving as an important platform for showcasing the region’s investment opportunities.
These agreements are expected to contribute to the province’s growing role in the Kingdom’s economic agenda, aligning with Vision 2030’s objectives of economic diversification and job creation. The event also highlighted Hafr Al-Batin’s efforts to attract foreign capital and foster local content within its industries.
In conjunction with the forum, the Eastern Province Development Authority launched a master plan for Hafr Al-Batin aimed at attracting SR47 billion in private sector investments. This plan is projected to contribute SR11 billion to Saudi Arabia’s gross domestic product and create more than 60,000 job opportunities for local residents.
One of the key announcements at the forum was the unveiling of the Middle East’s largest livestock city, a SR9 billion project designed to support Saudi Arabia’s goals of achieving self-sufficiency in livestock production and enhancing food security.
The city, backed by the Hafr Al-Batin Livestock and Marketing Association, will be developed on an expansive 11 million sq. meter site. Once operational, the project is expected to meet 30 percent of Saudi Arabia’s demand for red meat while generating over 13,000 jobs.
It will include state-of-the-art livestock farms, fodder production plants, a veterinary hospital, and advanced meat processing facilities. Sustainability will be a core feature, with the city powered by renewable energy, generating 15 billion kilowatt-hours of green electricity annually, producing 140,000 liters of milk per day, and 100 tonnes of fodder per hour. The facility will also feature an automated abattoir spanning 170,000 sq. meters, contributing 1.5 million sq. meters of leather production each year.
The forum drew a wide range of participants, including Prince Abdulrahman bin Abdullah bin Faisal, governor of Hafr Al-Batin, as well as high-ranking officials, business leaders, and investors from across the globe. The event was designed to showcase the province’s investment potential in sectors such as agriculture, livestock, healthcare, logistics, and infrastructure—critical areas for the region’s economic transformation.
Hassan Al-Huwaizi, chairman of the Federation of Saudi Chambers, emphasized the forum’s importance in advancing the Kingdom’s economic goals.
He pointed to the growth of Saudi Arabia’s trade and commerce ecosystem, driven in large part by Vision 2030’s transformative strategies, and highlighted the role of the Hafr Al-Batin Investment Forum as a vital platform for introducing the region’s opportunities to both national and international investors.
Sulaiman Al-Aqil, chairman of the Hafr Al-Batin Chamber of Commerce, described the forum as a pivotal moment in the province’s economic evolution.
The event featured participation from 24 government and private entities from 12 countries, four panel discussions with 19 speakers, and the release of a comprehensive economic study on Hafr Al-Batin’s investment potential.
With these agreements and initiatives, the forum not only highlighted the region’s expanding role in Saudi Arabia’s economic future but also reaffirmed the Kingdom’s commitment to becoming a leading global investment hub in line with Vision 2030’s objectives.
PIF invests $200m in new Saudi ETF by State Street Global Advisers
RIYADH: Saudi Arabia’s Public Investment Fund has invested $200 million in the newly launched SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS exchange-traded fund.
In a press release, State Street Global Advisers, the US-based asset manager behind the ETF, called it the first fixed-income UCITS ETF focused on the Kingdom to launch in Europe.
This move comes as global investors look to capitalize on Saudi Arabia’s growing bond market, supported by economic and infrastructure developments under Vision 2030.
The ETF launch further underscores PIF’s strategy to enhance international access to Saudi Arabia’s diversified market and attract foreign investment. PIF’s portfolio also includes investments in ETFs listed in Hong Kong, Shanghai, Shenzhen, and Tokyo.
“PIF’s investment into the first internationally listed fixed-income Saudi ETF further deepens the Saudi market, while attracting investors and strengthening cross-geography partnerships, increasing international investment in Saudi Arabia,” said Yazeed Al-Humied, deputy governor and head of Middle East and North Africe Investments at PIF.
Undertakings for Collective Investment in Transferable Securities, or UCITS, are EU regulations that establish a standardized framework for investment funds marketed and sold to investors within the economic bloc.
Listed on the London Stock Exchange and Deutsche Börse’s Xetra in Frankfurt, the new fund tracks the J.P. Morgan Saudi Arabia Aggregate Index. This index provides exposure to the Kingdom’s financial instruments, including liquid dollar- and SR-denominated government and quasi-government bonds, as well as sukuk bonds.
“We are delighted to see such significant early-stage commitment from PIF into the SPDR J.P. Morgan Saudi Arabia Aggregate Bond UCITS ETF, a first of its kind in the industry. The creation of this fund sprung from our ambition to provide investors a compelling and innovative opportunity,” said Yie-Hsin Hung, CEO of State Street Global Advisers.
The ETF is accessible to investors in several European countries, including Austria, Denmark, and Finland, as well as France, Germany, and Italy. It is also available in Luxembourg, the Netherlands, and Norway, as well as Spain, Sweden, and the UK.
State Street Global Advisers, the asset management business of State Street Corp., has served governments, institutions, and financial advisers for over four decades, managing $4.73 trillion in assets.
The SPDR ETF range spans international and domestic asset classes, providing investors with flexible options aligned to diverse strategies.
Closing Bell: Saudi main index slides to close at 12,088
RIYADH: Saudi Arabia’s Tadawul All Share Index edged lower on Wednesday, dropping by 24.55 points, or 0.20 percent, to close at 12,088.74. The benchmark index saw a trading turnover of SR7 billion ($1.86 billion), with 127 stocks advancing and 112 declining.
The Kingdom’s parallel market, Nomu, also experienced a slight decline, falling by 32.97 points, or 0.11 percent, to settle at 30,776.15. Of the stocks listed on Nomu, 41 advanced while 42 retreated.
The MSCI Tadawul Index dropped 7.53 points, or 0.50 percent, to close at 1,506.86.
Among the top performers of the day was Nice One Beauty Digital Marketing Co., which made its debut on the main market on Jan. 8. The company’s share price surged by 30 percent, reaching SR45.50.
Other notable gainers included Al-Mawarid Manpower Co., which saw its stock rise 7.82 percent to SR135.20, and Al-Baha Investment and Development Co., which saw its share price climb 6.98 percent.
On the downside, National Co. for Learning and Education recorded the largest drop, falling 4.24 percent to SR185.20. Almoosa Health Co. also saw a decline of 3.84 percent, ending the session at SR140.40, while Alinma Retail REIT Fund Yanbu saw a 3.45 percent drop to SR4.76.
On the announcements front, Nice One Beauty Digital Marketing Co. revealed it is offering 34.65 million shares at SR35 each. SNB Capital is serving as the lead manager for the offering.
United Electronics Co. announced its estimated financial results for the year ending Dec. 31, 2024. The company reported a net profit of SR534.53 million, marking a 36.8 percent increase compared to 2023. The growth was driven by higher revenues and improved gross profits, thanks to a better sales mix and expansion in the consumer finance sector, despite an increase in selling, distribution, and administrative expenses. Extra’s stock ended the day at SR95.60, up 2.13 percent.
United International Holding Co. also posted its financial results for the period ending Dec. 31, 2024. The company recorded a net profit of SR222.38 million, a 4.8 percent increase over the previous year. This growth was attributed to higher credit loss provisions and increased selling, general, and administrative expenses. The company’s shares closed at SR187.80, down 2.60 percent.
Meanwhile, the Kingdom’s Capital Market Authority announced that Rawasi Albina Investment Co. is planning to issue up to SR500 million in debt instruments. The company's stock finished the session at SR4.35, down 1.15 percent.
Saudi Arabia dominates MENA VC landscape, securing $750m in 2024
RIYADH: Saudi Arabia has retained its position as the top destination for venture capital funding in the Middle East and North Africa region, raising $750 million in 2024, according to a new report.
This marks the second consecutive year the Kingdom has topped the regional VC rankings.
Data from regional venture platform MAGNiTT showed that Saudi Arabia accounted for 40 percent of the total VC capital deployed in MENA in 2024, with a 16 percent year-on-year increase in deal flow.
The Kingdom closed 178 deals, the most of any MENA nation, reflecting strong investor confidence and a thriving startup ecosystem.
The largest deal in the region was secured by Saudi-based e-commerce enablement platform Salla, which raised $130 million.
The UAE ranked second in regional funding with $613 million raised, while leading in deal volume with 188 transactions and 12 exits.
Emerging venture markets snapshot
MENA startups collectively raised $1.9 billion in 2024, reflecting a 29 percent decline compared to 2023.
Despite the drop, MAGNiTT noted that “funding levels in 2024 were still higher than 2020 levels, prior to the 2021 and 2022 boom years, signaling continued growth in the venture space.”
The Middle East accounted for $1.5 billion of the funding, spread across 461 deals — a 10 percent annual increase. Total investor participation in the region grew by 14 percent, reaching 392 investors, while exits totaled 24.
Venture capital performance in emerging venture markets — which include the Middle East, Africa, Southeast Asia, Pakistan, and Turkiye — slowed significantly in 2024.
Total VC funding in these regions fell by 40 percent, with deal volumes dropping 20 percent compared to 2023. Both metrics also dipped below 2020 levels.
Southeast Asia led among EVMs with $5.6 billion raised across 564 deals, while Africa recorded the weakest performance, raising $1.07 billion through 294 deals.
Mega deals and early-stage activity
Global VC trends, such as reduced late-stage funding, were reflected in EVMs. Mega deals — valued at $100 million or more — declined for the third consecutive year, falling 56 percent compared to 2023.
The first quarter of 2024 saw the lowest mega deal funding since the fourth quarter of 2019, with late-stage investments hardest hit.
However, early-stage activity showed resilience. The focus on seed and pre-series A funding increased, with $1 million to $5 million ticket sizes rising by 5 percentage points year on year.
According to MAGNiTT, this emphasis on early-stage investments is critical for sustaining future deal flow growth.
Philip Bahoshy, CEO of MAGNiTT, highlighted a potential recovery in the venture market. “In 2024, we witnessed a decline in funding across EVMs driven by reduced late-stage investment activity. However, the positive development is that 2024 also saw a gradual decline in interest rates, both in mature markets like the US and Emerging Markets,” he said.
“We anticipate these rate cuts to begin boosting capital availability within the next 6-9 months, paving the way for a stronger funding environment in 2025,” Bahoshy added.
The Middle East increased its share of deal transactions across EVMs to 35 percent in 2024, an 8-percentage-point rise.
Southeast Asia captured the largest share at 43 percent, while Africa’s share dropped to its lowest level in five years, at 22 percent.
UAE’s ADNOC L&S acquires 80% stake in Navig8 for $1.04bn
- Value-accretive transaction expected to boost earnings per share by at least 20% in 2025 compared to 2024
- Transaction adds modern fleet of 32 tankers to ADNOC L&S’ fleet and expands its service portfolio
RIYADH: UAE’s ADNOC Logistics and Services has boosted its global position by acquiring an 80 percent stake in Navig8 TopCo. Holdings Inc. for $1.04 billion, strengthening its status as a prominent player in energy maritime transportation.
The transaction includes a contractual commitment to acquire the remaining 20 percent by mid-2027, positioning ADNOC L&S for expanded global operations and increased shareholder value.
Navig8, a prominent international shipping pool operator and commercial management company, brings a modern-owned fleet of 32 tankers and an established presence in 15 cities across five continents.
The firm has investments in technical management services, is a marine fuels provider operating in over 1,000 ports globally, and has additional ventures within the marine sector.
“The completion of this landmark acquisition is a significant milestone in our transformational growth strategy,” said Abdulkareem Al-Masabi, CEO of ADNOC L&S.
“By integrating Navig8’s extensive fleet and global presence, we can enhance our service offerings, generating substantial value for customers and shareholders. This strategic move unlocks new opportunities for commercial growth and expansion into new markets, reinforcing our position as a leading global energy maritime logistics company,” Al-Masabi added.
The acquisition aligns with ADNOC L&S’ growth strategy, complementing its integration with Zakher Marine International in 2022 and reinforcing its ambition to expand its global reach and service portfolio.
ZMI, an Abu Dhabi-based owner and operator of offshore support vessels, brought with it the world’s largest fleet of self-propelled jack-up barges.
ZMI’s acquisition expanded ADNOC L&S’s fleet to over 300 vessels, reinforcing its position as the region’s largest integrated logistics provider and enabling the company to offer its customers a broader range of services.
ADNOC L&S, a subsidiary of Abu Dhabi National Oil Co., will benefit from Navig8’s acquisition through expanded services, including commercial pooling, bunkering, technical management, and environmental, social, and governance-focused industrial and digital solutions.
The acquisition is structured to ensure economic ownership of Navig8 starting from Jan. 1, 2024.
The remaining 20 percent will be acquired in 2027 for deferred consideration ranging from $335 million to $450 million, depending on earnings before interest, taxes, depreciation, and amortization performance during the interim.
Nicolas Busch, CEO of Navig8, expressed enthusiasm for the deal, saying: “We are excited to join forces with ADNOC L&S and the wider ADNOC Group. This achievement highlights the exceptional efforts of the Navig8 team over the past two decades, setting the stage for this next phase.”
The acquisition is expected to deliver immediate financial benefits, with ADNOC L&S projecting a 20 percent increase in earnings per share by this year compared to the previous year.
The company’s share price saw a 5.23 percent increase as of Jan. 8, 1:00 p.m. Saudi time.
It anticipates annual synergies of at least $20 million by 2026, underscoring the value-accretive nature of the transaction.
