Egypt ‘seizes’ Suez megaship, demands nearly $1bn compensation

Egyptian authorities have confiscated the massive cargo vessel Ever Given that blocked the Suez Canal last month amid a financial dispute with its owner. (AP)
Egyptian authorities have confiscated the massive cargo vessel Ever Given that blocked the Suez Canal last month amid a financial dispute with its owner. (AP)
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Updated 14 April 2021

Egypt ‘seizes’ Suez megaship, demands nearly $1bn compensation

Egypt ‘seizes’ Suez megaship, demands nearly $1bn compensation

CAIRO: Suez Canal chiefs on Tuesday implemented an Egyptian court order to seize the giant cargo ship that blocked the waterway for almost a week in March.

The Suez Canal Authority (SCA) is claiming $916 million in compensation for lost revenue, damage to the canal, equipment and labor used to free the ship, and reputational harm.

The Ever Given container ship, owned by the Japanese cargo fleet operator Shoei Kisen, has been in a lake between two sections of the canal since it was dislodged on March 29, while the SCA carries out an investigation.

Yumi Shinohara, deputy manager of Shoei Kisen’s fleet management department, said the SCA had made a compensation claim and the ship had not been given clearance to leave.

The ship’s insurers, UK Club, said they were disappointed. “Despite the magnitude of the claim … the owners and their insurers have been negotiating in good faith with the SCA,” a spokesman said on Tuesday.

“On April 12, a carefully considered and generous offer was made to the SCA to settle their claim. We are disappointed by the SCA’s subsequent decision to arrest the vessel today.”

The SCA said a court order had been issued for the ship to be held, and negotiations over the compensation claim were still taking place.

International trade was thrown into chaos when the 400-meter vessel ran aground on March 23, with 18,300 containers on board. Nearly a third of the world’s shipping container volume passes through the canal. Specialist rescue teams took six days to free the vessel, delaying the passage of more than 400 ships and causing others to divert around Africa.


Saudi sovereign fund PIF boosts US equities exposure to over $15 billion

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion
Updated 24 min 39 sec ago

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion

Saudi sovereign fund PIF boosts US equities exposure to over $15 billion
  • Fund increased its US stock holdings to $15.4 billion in the first quarter

DUBAI : Saudi Arabia’s sovereign wealth fund has increased its US stock holdings to $15.4 billion in the first quarter from nearly $12.8 billion at the end of 2020, according to a US regulatory filing on Monday.
The Public Investment Fund (PIF) bought 2.9 million class A shares in SoftBank Group Corp-backed Coupang Inc, equivalent to $141 million, and dissolved its share stake in Suncor Energy, according to a Securities and Exchange Commission filing.
It more than doubled its position in Activision Blizzard to 33.4 million shares from 15 million shares at the end of the fourth quarter, which led it to a $3.1 billion exposure from $1.4 billion.
The fund increased its shares in Electronic Arts Inc. to 14.2 million, equivalent to $1.9 billion, from a $1.1 billion position at the end of the previous quarter.
PIF, which did not immediately respond to a comment request on the filing, is at the center of Saudi Arabia’s plans to transform the economy by creating new sectors and diversifying revenues away from oil.
The $400 billion fund is expected to inject at least $40 billion annually in the local economy until 2025, and increase its assets to $1 trillion by that date, which would make it one of the world’s biggest sovereign wealth funds.
“PIF would have wanted to take advantage of the bullish sentiment in equity markets in Q1 to make opportunistic investments and add to its portfolio,” said Rachna Uppal, director of research at Azure Strategy.
“In line with domestic efforts to achieve the objectives of Vision 2030, the Saudis also appear to be favoring investments into sectors such as technology, mobility, and especially future mobility, tourism and entertainment,” she said.
At the start of last year PIF piled up minority stakes in companies worldwide, taking advantage of market weakness caused by the coronavirus crisis.
Monday’s filing showed the value of its biggest US stock holding, Uber Technologies, rose to nearly $4 billion in the first quarter, from $3.7 billion as of Dec. 31, as the ride-hailing company’s shares gained value during the period.
PIF was an early investor in Uber, taking a $3.5 billion stake in 2016, three years before its listing in 2019.


Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid
Updated 30 min 24 sec ago

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid

Qatar Investment Authority to take $740m chunk of US renewables firm Avangrid
  • QIA will buy shares worth $740 million and Iberdorla, the largest shareholder in Avangrid

RIYADH: Renewable energy provider Avangrid said it would sell shares worth a total of $4 billion to both the Qatar Investment Authority (QIA) and Spanish Iberdrola Group for $ 51.40 a share.
QIA will buy shares worth $740 million and Iberdorla, the largest shareholder in Avangrid (based in Orange County, Connecticut, US), will purchase approximately $3.26 billion of stock, Asharq Business reported.
The deal is expected to close on Tuesday.
The Qatar Investment Authority last March also acquired 16 percent of the 53 million shares offered by Siemens Healthineers, through a private placement of $2.8 billion.
The fund is targeting deals in Asia, in an attempt to diversify its investment portfolio, which has a great focus and weight in America. Northern and Europe, Chairman Sheikh Mohammed bin Abdulrahman Al-Thani said in a previous interview with Bloomberg.

 


Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round
Updated 42 min 22 sec ago

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round
  • It was the first investment for the American venture capital firm in the Middle East and North Africa

DUBAI: Telda, a Cairo-based digital banking application, has raised $5 million during its pre-seed funding round organized by US firm Sequoia Capital.
It was the first investment for the American venture capital firm in the Middle East and North Africa.
Global Founders capital and Class 5 Global also participated in the round.
The app recently announced it has received license from Egypt’s central bank to issue cards and on-board customers to its platform.
It has received 30,000 sign ups since it started its operations, it said.
The funding comes as digital-only banks rise in popularity across the region, where 60 percent of the population is estimated to be under the age of 25.
“Egypt boasts of a large, young, talented and tech savvy population with a strong appetite to innovate,” Sequoia partner George Robson said.
Egypt is among the top 10 countries most reliant on cash and with the highest rate of unbanked people, according to Merchant Machine.
“Today’s funding milestone promotes the digital transformation of the Egyptian economy and allows Telda to provide everyone with access to important financial services so they can fully participate in the economy,” Telda chief technology officer Youssef Sholqamy said.
Sholqamy, who was a former senior engineer in Uber’s infrastructure team, co-founded the startup with Ahmed Sabbah, who also founded the Egyptian bus-hailing service Swvl.


Europe slaps anti-dumping duties on MEG Saudi petchems product

Europe slaps anti-dumping duties on MEG Saudi petchems product
Updated 51 min 28 sec ago

Europe slaps anti-dumping duties on MEG Saudi petchems product

Europe slaps anti-dumping duties on MEG Saudi petchems product
  • The anti-dumping duties on MEG imports from Saudi Arabia are estimated at 11.1 percent

DUBAI: The European Commission (EC) announced proposed anti-dumping duties on monoethylene glycol (MEG) imports from Saudi Arabia and the US, Argaam reported.
The anti-dumping duties on MEG imports from Saudi Arabia are estimated at 11.1 percent, the financial news site reported, citing a document.
The companies affected by the new levy include Yanbu National Petrochemical Co. (Yansab), Saudi Kayan Petrochemical Co. (Saudi Kayan), Eastern Petrochemical Co. (Sharq), Saudi Yanbu Petrochemical Co. (Yanpet), Arabian Petrochemical Co. (Petrokemya), and Jubail United Petrochemical Co. (JUPC).
The original anti-dumping probe into Saudi and US MEG exports began in October 2020, Argaam said. It followed a petition from European ethylene glycol producers, which represent a quarter of total producers.
In December 2019, India also started an anti-dumping probe into imports of MEG from Saudi Arabia, Kuwait, Oman, the UAE, and Singapore, Argaam said.
Monoethylene glycol is used to make polyester fibers and film as well as engine coolant.


Jabal Omar losses widen on hotel closures in Makkah

Jabal Omar losses widen on hotel closures in Makkah
Updated 18 May 2021

Jabal Omar losses widen on hotel closures in Makkah

Jabal Omar losses widen on hotel closures in Makkah
  • Construction work extends across two square kilometers where some 40 towers are at various stages of development.

DUBAI: Jabal Omar Development Co. reported a widening first-quarter loss as hotels in Makkah were forced to close amid the pandemic.
The developer that is spearheading the vast redevelopment of land around the Grand Mosque in the holy city, said losses widened by 45 percent to SR345.3 million ($92 million). Sales fell 89 percent to SR21.6 million, it said in a stock exchange filing on Tuesday.
It blamed the performance on the “significant decline in revenues due to the decrease in the occupancy rate of hotels and commercial malls.”
At the same time its financial charges rose due to the non-capitalization of borrowing costs, it said in the filing.
Saudi Arabia is investing billions of dollars to develop hotels, malls and other real estate in Makkah to accommodate the expected surge in pilgrims.
Current construction work extends across two square kilometers where some 40 towers are at various stages of development.
They are expected to accommodate some 4,000 guests on any normal day, and up to 100,000 visitors on any given day during the Hajj and Umrah seasons.