Bitcoin predicted to hit $500,000 in five years

Bitcoin predicted to hit $500,000 in five years
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Updated 15 September 2021

Bitcoin predicted to hit $500,000 in five years

Bitcoin predicted to hit $500,000 in five years
  • About 47 percent of adults in South Africa own cryptocurrency: KLA study

RIYADH: Bitcoin traded higher on Wednesday rising by 2.88 percent to $47,731.21 at 5:37 p.m. Riyadh time while Ether traded at $3,428.65, up 2.95 percent, according to data from CoinDesk.

Despite ups and downs, financial gurus and analysts predict a bright future for the cryptocurrency.

Cathie Wood, CEO of Ark Investment Management, said the price of Bitcoin will be more than $500,000 in five year, which is more than 10 times what it is today.

Speaking at the SALT conference, she said she was pleased that Gary Gensler, chairman of the Securities and Exchange Commission, understood crypto and the advantages of Bitcoin in particular. 

On the other hand, Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates, believes regulators will eventually take over control of Bitcoin if the cryptocurrency achieves mainstream success.

“I think at the end of the day if it’s really successful, they will kill it and they will try to kill it. And I think they will kill it because they have ways of killing it,” Dalio said in an interview on the sidelines of the conference.

 

Study

According to the results of a study conducted by market and data research firm KLA, about 47 percent of adults in South Africa own cryptocurrency, with the majority of this number holding low-value investments. Many are still trying to understand cryptocurrency.

The study also showed that 25 percent of South Africans own cryptocurrencies with an average asset value of less than $70. In addition, 36 percent plan to invest in cryptocurrencies in the future.

“While this percentage is high, the amount invested is low. This indicates that the bulk of cryptocurrency investors in South Africa are experimenting and venturing without making a significant financial commitment,” Tessa Nowosenetz of the KLA said.

Only 3 percent of the respondents said they own cryptocurrencies worth more than $3,400. However, the majority of South Africans 53 percent are not cryptocurrency holders.

 

Curbs

In Uzbekistan, cryptocurrency cannot be adopted as a method of payment, according to an official from the country’s central bank.

The representative of the regulator also noted that unlike cryptocurrencies, while speaking to local media, the national law is backed by the bank’s assets.

The deputy chairman of the Central Bank of the Republic of Uzbekistan, Behzod Hamraev, said: “As an economist, I can assume that cryptocurrency, will never be equal to world currencies such as the dollar, euro, yen, ruble.”


China preparing for Evergrande's downfall: WSJ

China preparing for Evergrande's downfall: WSJ
Image: Shutterstock
Updated 47 min 27 sec ago

China preparing for Evergrande's downfall: WSJ

China preparing for Evergrande's downfall: WSJ
  • Local governments have been ordered to assemble groups of accountants and legal experts to examine the finances around Evergrande's operations in their respective regions
  • Both bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates

Chinese authorities are asking local governments to prepare for the potential downfall of debt-ridden China Evergrande Group, the Wall Street Journal reported on Thursday, citing officials familiar with the discussion.

The move has been characterised as "getting ready for the possible storm" by the officials, according to the report.


The officials said local-level government agencies and state-owned enterprises have been instructed to step in only at the last minute should Evergrande fail to manage its affairs in an orderly fashion, the WSJ reported.


Local governments have been tasked with preventing unrest and mitigating the ripple effect on home buyers and the broader economy, the officials said, according to the report.


Evergrande, China's second-biggest property developer, has $83.5 million in dollar-bond interest payments due on Thursday on a $2 billion offshore bond and a $47.5 million dollar-bond interest payment due next week.


Both bonds would default if Evergrande fails to settle the interest within 30 days of the scheduled payment dates.


The company, which epitomised the borrow-to-build business model, ran into trouble over the past few months as Beijing tightened rules in its property sector to rein back debt levels and speculation.


Investors are worried that a downfall could spread to creditors including banks in China and abroad.

 


Luxury operator Chalhoub opens new retail hub in Riyadh

Luxury operator Chalhoub opens new retail hub in Riyadh
Updated 23 September 2021

Luxury operator Chalhoub opens new retail hub in Riyadh

Luxury operator Chalhoub opens new retail hub in Riyadh
  • The new retail development, called “Concept by MUSE”, will bring in local, regional, and international brands, particularly catering to the Saudi youth

DUBAI: Luxury retail operator Chalhoub Group has launched a new shopping destination at the Riyadh Park in the Saudi capital, in a new sign of recovery in the Kingdom’s retail sector post-pandemic. 

The new retail development, called “Concept by MUSE”, will bring in local, regional, and international brands, particularly catering to the Saudi youth, the group said in a statement.

“The retail landscape in Saudi Arabia has evolved significantly over the last few years, especially as young customers become increasingly discerning and attentive to global shopping trends while staying true to their roots and culture,” David Vercruysse, president of managed companies at Chalhoub, said.

Over 1,200 products will be featured at the mall, including the work of five Saudi designers Noms Life, Proud Angeles, Dania Shinkar, Cones and Rods, and Kaf By Kaf.

It follows an earlier initiative of the group to support local Saudi designers by giving them financial grants to build their own fashion brands.

The Kingdom has announced several efforts to modernize its economy, including boosting its local retail market. 

“This world’s first demonstrates our commitment to the Kingdom’s Vision 2030 and support to the country’s ambitions to make Saudi a world-class retail destination,” Bachar Sabbagh, the Saudi director of Chalhoub, said. 


Apicorp launches first green bond framework

Apicorp launches first green bond framework
Updated 23 September 2021

Apicorp launches first green bond framework

Apicorp launches first green bond framework
  • The framework will be used to raise green bonds/sukuk for projects aligned with the UN Sustainable Development Goals

DUBAI: The Arab Petroleum Investments Corporation (Apicorp) has launched its first green bond framework.

It follows the recent approval of the OPEC-created financial institution’s environmental, social, and governance (ESG) policy framework, as it aims to develop the sustainable financial market. 

The framework will be used to raise green bonds/sukuk for projects aligned with the UN Sustainable Development Goals - addressing issues in climate mitigation, circular economy, and biodiversity preservation among others. 

It was created in line with the International Capital Market Association’s Green Bond Principles 2021.

“By launching the Green Bond Framework, Apicorp is providing new avenues for investment in projects and ventures that further the development of safe, affordable, and renewable energy sources,” Ahmed Ali Attiga, chief executive officer of Apicorp. 

He said the framework “reflects our deep understanding of the ESG impact of our investments across the energy spectrum and our commitment to setting out new engagement strategies with our stakeholders to spread awareness of their ESG exposure.”

Apircorp earlier said it will allocate $1 billion towards green energy projects and sustainable energy companies over the next two years. 


Dubai's DAMAC Properties receives approval to take firm private

Dubai's DAMAC Properties receives approval to take firm private
Image: Shutterstock
Updated 23 September 2021

Dubai's DAMAC Properties receives approval to take firm private

Dubai's DAMAC Properties receives approval to take firm private
  • The Dubai real-estate company still plans to offer $595 million for outstanding shares of the company
  • The firm has a market capitalization of over $2 billion

DAMAC Properties, known for its deals with former President Donald Trump said Thursday it had received regulator approval for an effort to take the firm private.


The Dubai real-estate company still plans to offer $595 million for outstanding shares of the company, the firm said in a filing on Dubai Financial Market stock exchange.


It said it would offer an update on the plan in the coming weeks. It earlier announced plans in June for the offer to take the company private, then withdrew them as regulators examined the plan.


The buyout would be through Maple Invest Co. Ltd., a holding company of DAMAC's billionaire founder Hussain Sajwani. Sajwani owns nearly four-fifths of the company through various investment firms.


DAMAC stock traded up Thursday over 3 percent on the news. The firm has a market capitalization of over $2 billion.


DAMAC is known in Dubai for a development that features a Trump-branded golf club surrounded by villas and apartments, making it the only one of its kind in the Middle East that bears the Trump logo.


The company’s partnership with the Trump Organization to manage and run the golf course was struck before Trump’s election as U.S. president.

 


Saudi Arabia’s ‘stc’ becomes one of Moody’s highest rated telecom operators 

Saudi Arabia’s ‘stc’ becomes one of Moody’s highest rated telecom operators 
Updated 23 September 2021

Saudi Arabia’s ‘stc’ becomes one of Moody’s highest rated telecom operators 

Saudi Arabia’s ‘stc’ becomes one of Moody’s highest rated telecom operators 
  • The telecom company’s BCA was revised from a1 to a2, and Moody’s also affirmed its A1 long-term issuer rating

DUBAI: Bond credit rating firm Moody’s has upgraded the baseline credit assessment (BCA) of Saudi Arabia’s “stc”, saying it has maintained “very strong financial metrics.”

The telecom company’s BCA was revised from a1 to a2, and Moody’s also affirmed its A1 long-term issuer rating. 

“The upgrade reflects stc's leading position in the Saudi telecom sector, which has considerable growth opportunities,” Julied Haddad, a senior analyst at Moody’s, said in a recent report.

The ratings agency factors in financial profile, market dominance, and liquidity in deciding on companies’ BCA. 

According to the report, “stc” was able to maintain a conservative financial profile, as well as maintain strong metrics despite several economic factors, including an oil price crash and the COVID-19 pandemic. 

The company has sustained its debt to EBITDA ratio, and has built a strong balance sheet over the years, Moody’s said in a report.

This has given “stc” a headroom to grow organically through investments, the report explained, as well as develop its footprint outside the Kingdom through acquisitions.

“As of June 2021, stc had SR7.7 billion ($2.1 billion) in unrestricted cash and cash equivalents, in addition to SR2.9 billion ($0.8 billion) of short-term Murabaha and SR3.9 billion ($1.0 billion) in the form of investments in a sukuk issued by the Government of Saudi Arabia, which the company can liquidate, should the need arise,” it added. 

The BCA also looked at the competition within the telecom industry in the Kingdom, where “stc” holds 70 percent of market share. 

“Following the upgrade of stc's BCA to a1, the company is now one of the highest rated telecom operators on a stand-alone basis globally,” the report said.

The new “stc” rating could be affected positively if the sovereign rating of the Kingdom is upgraded, Moody’s said.