Dubai Islamic Bank sees no impact from NMC law suit

Dubai Islamic Bank sees no impact from NMC law suit
It was the latest twist in the tale of the UAE ‘s biggest hospital group which last year disclosed more than $4 billion in hidden debt. (Shutterstock)
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Updated 20 April 2021

Dubai Islamic Bank sees no impact from NMC law suit

Dubai Islamic Bank sees no impact from NMC law suit
  • Last week it emerged that NMC was suing a Dubai bank in the Abu Dhabi courts in a dispute that could complicate the company’s multi-billion-dollar debt restructuring

DUBAI: Dubai Islamic Bank (DIB) said on Sunday it does not expect any “negative impact” from a case against it brought by the administrators of hospital operator NMC Group.
It made the disclosure in a letter to the Dubai Financial Market posted on the website of the bourse.
Last week it emerged that NMC was suing a Dubai bank in the Abu Dhabi courts in a dispute that could complicate the company’s multi-billion-dollar debt restructuring and potentially delay payouts to creditors, Reuters reported.
It was the latest twist in the tale of the UAE ‘s biggest hospital group which last year disclosed more than $4 billion in hidden debt. Its UAE operations were placed into administration and creditor claims are understood to now exceed $6.4 billion.
“It is a matter of public record that an application has been filed by the administrators of the NMC Group in the Abu Dhabi Global Markets Court, in which Dubai Islamic Bank and 12 insurance companies and third party service providers are respondents,” DIB said in a disclosure to the Dubai Financial Market, where it’s shares are listed. “DIB does not anticipate any material negative impact arising from this application. As this is an ongoing legal matter, we cannot comment further at this time.”


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

Egyptian neobank Telda raises $5m in Sequoia-led pre-seed round
Updated 3 min 17 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 12 min 23 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 27 min 22 sec ago

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.


Arab News publisher SRMG rebrands to Saudi Research and Media Group

Arab News publisher SRMG rebrands to Saudi Research and Media Group
Updated 32 min 3 sec ago

Arab News publisher SRMG rebrands to Saudi Research and Media Group

Arab News publisher SRMG rebrands to Saudi Research and Media Group
  • The group owns several companies in publishing and media, including Saudi Research and Publishing Company and Asharq News Services

DUBAI: The Saudi Research and Marketing Group, the company which publishes Arab News, has rebranded to Saudi Research and Media Group.
The Tadawul-listed company completed the change on Monday, according to a bourse filing, but the move was first approved in April.
The group owns several companies in publishing and media, including Saudi Research and Publishing Company and Asharq News Services.
The rollout of Saudi Vision 2030 reforms, a booming entertainment sector and the opening of the Kingdom to foreign tourists are all contributing to the Kingdom’s rapidly expanding media landscape.


No new fossil fuel projects for net-zero: IEA

No new fossil fuel projects for net-zero: IEA
Updated 36 min 3 sec ago

No new fossil fuel projects for net-zero: IEA

No new fossil fuel projects for net-zero: IEA
  • The IEA predicted a “sharp decline in fossil fuel demand” in the next three decades as well as a 2040 deadline for the global energy sector to achieve carbon neutrality

PARIS: All future fossil fuel projects must be scrapped if the world is to reach net-zero carbon emissions by 2050 and to stand any chance of limiting warming to 1.5C, the International Energy Agency said Tuesday.
In a special report designed to inform negotiators at the crucial COP26 climate summit in Glasgow in November, the IEA predicted a “sharp decline in fossil fuel demand” in the next three decades as well as a 2040 deadline for the global energy sector to achieve carbon neutrality.
It called for a rapid and vast ramping up of renewable energy investment and capacity, which bring gains in development, wealth and human health.
IEA Executive Director Fatih Birol said the roadmap outlined in the report showed that the path to global net-zero by 2050 was “narrow but still achievable.”
“The scale and speed of the efforts demanded by this critical and formidable goal — our best chance of tackling climate change and limiting global warming to 1.5C — make this perhaps the greatest challenge humankind has ever faced,” he said.
Built using its industry network and energy modelling tools, the IEA’s roadmap lays out more than 400 milestones on the path to net-zero by mid-century.
These include “no new oil and gas fields approved for development” beyond projects that are already committed as of 2021.
It predicts “a sharp decline in fossil fuel demand, meaning that the focus for oil and gas producers switches entirely to output — and emissions reductions — from the operation of existing assets.”
The roadmap also said that sales of new internal combustion engine passenger cars would have to end in 2035 and energy efficiency would need to improve four percent annually this decade — around three times faster than the current trajectory.
With annual additions of solar and wind power reaching 630 and 390 gigawatts respectively by 2030, the IEA said that investment in renewables could put global GDP four percent higher by 2050 than it would be based on current trends.
By 2050, it said that renewables capacity and greater efficiency would see global energy demand drop about eight percent compared to today, even as two billion more people gained access to electricity.
Investment totalling around $40 billion a year — around one percent of current energy sector investment — is projected to hook hundreds of millions up to the global grid.
The IEA said that clean energy and access to clean cooking solutions could cut the number of premature deaths by 2.5 million a year by 2050.
Overall, fossil fuels are set to account for only around a fifth of energy supply by 2050, down from almost four fifths currently, the report showed.
Dave Jones, global lead at the energy think tank Ember, said Tuesday’s assessment was “a complete turnaround of the fossil-led IEA from five years ago.”
“This is truly a knife into the fossil fuel industry,” he said.


Under a scenario where all current national net-zero pledges are met on time and in full, the IEA outlined a changing energy mix in the coming decades.
Oil demand is predicted to plateau at around 104 million barrels a day just after 2030, the report showed.
Gas use is likely to increase significantly in the stated pledges pathway, as is nuclear.
It also said that all inefficient coal power plants needed to close by 2030 in order to achieve net-zero by 2050.
“This will be a huge step-up in ambition for so many countries, especially China,” said Jones.
“India and South Africa will need international assistance to meet this goal.”


While most of the global CO2 reductions until 2030 in the net-zero pathway come from “technologies available today,” the IEA said that around half of reductions by 2050 would be provided by “technologies that are currently only in demonstration or prototype phase.”
These include direct air capture and storage of CO2 from the atmosphere, which it said could be “particularly impactful.”
Teresa Anderson, climate policy coordinator at ActionAid International, said that the IEA’s net-zero plan still relied too heavily on as-yet untested technology to remove carbon pollution.
“Any role of future technologies should be to replace fossil fuels, not justify their use,” she told AFP.
“Given all the uncertainties and risks around long-shot technologies and land availability for bioenergy, the IEA would do better to focus on bringing emissions down to real zero, rather than using ‘net’ zero accounting to pander to the fossil fuel industry’s fears of losing profits.”