Abu Dhabi funds invest $150m in Telegram messaging app

Abu Dhabi funds invest $150m in Telegram messaging app
Mubadala invested $75 million in five-year, pre-initial public offering (IPO) bonds of Telegram, while Abu Dhabi Catalyst Partners invested a further $75 million. (File/AFP)
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Updated 23 March 2021

Abu Dhabi funds invest $150m in Telegram messaging app

Abu Dhabi funds invest $150m in Telegram messaging app
  • Telegram has seen an increase in users this year amid privacy concerns with larger rival Facebook-owned WhatsApp
  • Telegram, already headquartered in the UAE, will open an office in Abu Dhabi following the new investment

DUBAI: Abu Dhabi state fund Mubadala Investment Co. and Abu Dhabi Catalyst Partners, part-owned by Mubadala, said on Tuesday they had invested a combined $150 million in messaging app Telegram.
Mubadala invested $75 million in five-year, pre-initial public offering (IPO) bonds of Telegram, while Abu Dhabi Catalyst Partners invested a further $75 million.
“Telegram’s user base has reached a critical mass that places it among global tech giants,” Mubadala executive Faris Sohail Faris Al-Mazrui said in a statement.
“Telegram is well-positioned for an inflection point that will transform it into a leading global technology company.”
Telegram, along with messaging app Signal, have seen an increase in users this year amid privacy concerns with larger rival Facebook-owned WhatsApp.
Launched in 2013, Telegram has 500 million monthly users, according to Abu Dhabi Catalyst Partners.
Telegram, already headquartered in the United Arab Emirates, will open an office in Abu Dhabi following the new investment, Mubadala said.
Abu Dhabi Catalyst Partners is a Mubadala joint venture with US investment company Falcon Edge Capital.
Mubadala, which manages more than $230 billion in assets, is UAE’s second-biggest state investor after Abu Dhabi Investment Authority.
Both have invested in technology, with Mubadala contributing $15 billion to SoftBank’s $100 billion Vision Fund in 2017.
Mubadala last year bought a 1.85% stake in Reliance Industries’ digital unit, Jio Platforms, for $1.2 billion.


Cryptocurrencies slide as market selloff deepens

Cryptocurrencies slide as market selloff deepens
Updated 26 sec ago

Cryptocurrencies slide as market selloff deepens

Cryptocurrencies slide as market selloff deepens
  • Digital currencies gaining popularity among Indians in smaller cities

RIYADH: Prices of cryptocurrencies plunged on Monday as concerns over the spillover risk to the global economy from Chinese property group Evergrande’s troubles rippled over to wider markets.

Bitcoin tumbled 7.33 percent to $43,804 at 4:29 p.m. Riyadh time. Its rival Ether, the coin linked to the Ethereum blockchain network, fell 8.74 percent to $3,050.45, according to data from CoinDesk.

The loss in the value of cryptocurrencies comes at a time when institutional interest in the space has surged and some investment banks have ramped up their forecasts for cryptocurrencies in the coming months.

“Their fate seems a little tied to equities at the moment, and the price action is incredibly similar too,” said John Marley, CEO of forexxtra, a London-based FX consultancy. 

Ether price

Nikolaos Panigirtzoglou, managing director of JPMorgan said that the fair value of Ether is much lower than its current price.

According to a set of measurements based on the network’s activity, it calculated the value of the digital coin at $1,500, 55 percent below its market price.

One of the reasons cited was that Ethereum was not unique anymore, and it faced stiff competition from other chains such as Solana and Avalanche.

“We look at the hash rate and the number of unique addresses to try to understand the value for Ethereum. We’re struggling to go above $1,500. There is a question mark here. The current price is expressing an exponential increase in usage and traffic that might not materialize,” he stated.

 

Lawsuit

In the midst of an ongoing lawsuit with the US Securities and Exchange Commission, Ripple's legal team said they have no plans to settle with the SEC.

They are confident that SEC President Gary Gensler will be convinced that pursuing the case is to pick winners and losers in the crypto space based on innovation.

"Ripple’s legal team told Fox Business they have no plans to settle with SEC over lawsuit on XRP, confident they can show Gary Gensler in pursuing the case is picking winners and losers in the crypto business to the detriment of innovation,” Charles Gasparino tweeted.

 

Indians embrace crypto

Indian citizens are embracing cryptocurrencies to invest and earn extra money after the pandemic, according to reports from the regional media.

But what is even more interesting is that this growth has been greater in smaller cities, where interest in cryptocurrency is at its peak.

The profile of these participants was also interesting, as they are highly educated and open to diversifying their investment portfolios and not only focus on Bitcoin.

 A local exchange, Wazirx, has reported astonishing levels of new customers coming from these small towns, classified as Tier 2 and Tier 3 cities.

“Tier 2 and Tier 3 cities have driven almost 55 percent of the total user signups on Wazirx in 2021, thereby overtaking Tier 1 cities, which demonstrated a signup growth of 2,375 percent,” Wazirx CEO Nischal Shetty was quoted as saying in local media reports.


Saudi top 10 banks see robust growth in financing and deposits

Saudi top 10 banks see robust growth in financing and deposits
Updated 20 September 2021

Saudi top 10 banks see robust growth in financing and deposits

Saudi top 10 banks see robust growth in financing and deposits

RIYADH: Saudi Arabia's top 10 banks saw robust quarter-on-quarter growth in financing and deposits in the second quarter of 2021, Zawya reported, citing management consulting firm Alvarez & Marsal (A&M)'s KSA Banking Pulse.

Core operating income increased by 8.4 percent, compared to 1.2 percent in the first quarter of the year, in what is considered the fourth increase in a row, while loans and advances (L&A) increased by 13.1 percent and deposits by 12.6 percent.

L&A and deposit growth were primarily supported by the merger of National Commercial Bank and SAMBA to form Saudi National Bank (SNB), according to the report.

Operating expenses rose by 13.7 percent quarter-on-quarter and impairments jumped by 81.6 percent, affecting the second quarter's overall operating efficiency for the banking sector. This affected net profit for the top ten banks in the Kingdom.

Aggregate net income decreased over the same period by 8.1 percent to SR11 billion ($2.93 billion), while the fall in net profit was partially offset by a 11.1 percent increase in net interest income.

The top 10 banks in the report are SNB, Al Rajhi Bank, Riyad Bank , Saudi British Bank, Banque Saudi Fransi, Arab National Bank, Alinma Bank, Bank Albilad, Saudi Investment Bank and Bank Aljazira.


Blossoming Saudi fragrance market to hit over $3.8bn by 2030

Blossoming Saudi fragrance market to hit over $3.8bn by 2030
Updated 20 September 2021

Blossoming Saudi fragrance market to hit over $3.8bn by 2030

Blossoming Saudi fragrance market to hit over $3.8bn by 2030

DUBAI: The Saudi fragrance market is poised to reach $3.8 billion by 2030, according to a market report, with an annual growth rate of 8.2 percent from last year.

India-based P&S Intelligence said a growing trend in grooming and personal care will drive this performance of the Kingdom’s perfume sector, which in 2020 was valued at $1.74 billion.

The predicted growth follows a challenging year for industry, as manufacturing plants were shut down due to the COVID-19 pandemic.

The report said luxury product bifurcation will witness the fastest growth in the sector, as more consumers opt for high-end brands.

The parfum category, which uses the highest concentration of essential oils, took most of the market share in the past.

Demand for natural and organic perfumes will also increase, the report said, amid increasing brand consciousness among consumers.


Innovation zone aims to transform Cairo’s Bab al-Azab 

Innovation zone aims to transform Cairo’s Bab al-Azab 
Updated 20 September 2021

Innovation zone aims to transform Cairo’s Bab al-Azab 

Innovation zone aims to transform Cairo’s Bab al-Azab 

RIYADH: Egypt's Sovereign Fund plans to transform the historic Bab al-Azab area in Cairo’s Salah Al-Din Al-Ayoubi Citadel into the first integrated innovation zone in the Middle East and North Africa (MENA).

The fund signed a Memorandum of Understanding with Bidayat Investment company, under which the company will explore opportunities for cooperation in developing Bab Al-Azab and turning it into an innovation center to embrace Egyptian youth creators, founding partner Rachid Mohamed Rachid told Asharq Business.

The center also aims at embracing startup owners in fields such as engineering design, furniture manufacturing, jewelery, fashion, as well as films, he said.

Bidayat Investment Group has already established innovation centers in several international markets, such as Italy, France and Turkey.


Pakistan's Maqsad raises $2.1m pre-seed funds

Pakistan's Maqsad raises $2.1m pre-seed funds
Updated 20 September 2021

Pakistan's Maqsad raises $2.1m pre-seed funds

Pakistan's Maqsad raises $2.1m pre-seed funds

Pakistani e-learning platform Maqsad has raised USD$2.1 million in its latest funding round, just months after being created.

The edtech company offers after-school academic support to youngsters in English and Urdu, and the company aims to reach 100 million students in Pakistan.

The company will use the cash to fund a production studio, academics and animators in order to develop in-house content.

Maqsad co-founder Rooshan Aziz said: “Struggles of students during the early days of the pandemic motivated us to run a pilot program. With promising initial traction and user feedback, the potential to digitize the education sector became very clear.”