Emirati prosecutors investigating Dubai's Union Properties

Emirati prosecutors investigating Dubai's Union Properties
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Updated 24 October 2021

Emirati prosecutors investigating Dubai's Union Properties

Emirati prosecutors investigating Dubai's Union Properties
  • Other filings on Sunday to the Dubai Financial Market showed shareholders wanted a vote later this week to possibly remove its board of directors

Federal prosecutors in the United Arab Emirates said Sunday they've launched a major investigation into Dubai-based real estate developer Union Properties.


A statement carried by the state-run WAM news agency said the investigation involved allegations of the firm selling property at less than its real value and hiding the name of the beneficiary of the sale, as well as forging documents and other violations.


Union Properties, known for building Dubai Motor City, did not immediately respond to requests for comment.


A stock market filing by Union Properties suggested the sale may have involved a March 2020 transaction in which a woman named Amna al-Hammadi purchased a property for 30 million dirhams ($8.1 million) that had been earlier valued at 49.5 million dirhams ($13.4 million).


A top Union Properties official, chairman Khalifa al-Hammadi, shares the woman's last name. It wasn't immediately clear if the two were related.


Union Properties' filing sought to explain the sale by noting it came amid “the spread of the COVID-19 pandemic and its accompanying negative effects — and in light of the company’s commitment to settle its debt towards its lenders.”


Other filings on Sunday to the Dubai Financial Market showed shareholders wanted a vote later this week to possibly remove its board of directors. Separately, the company said one of its subsidiaries was involved in a lawsuit seeking nearly $1 billion, without elaborating.


Shares in Union Properties fell over 9 percent in early trading Sunday after the announcement.


The firm's current shareholder structure wasn't immediately clear, though a profile from the data firm Refinitiv showed its major investor as the Bluestone Fund.


“Today's news was shocking, but we need to be clear that this is a good thing that there is a system, a system that adheres to punishing people who are responsible,” said Waleed al-Khatib, a managing partner at the Abu Dhabi-based trading firm Global For Shares and Bonds.


Oil edges higher on tight supply, limited omicron impact

Oil edges higher on tight supply, limited omicron impact
Updated 11 sec ago

Oil edges higher on tight supply, limited omicron impact

Oil edges higher on tight supply, limited omicron impact

SINGAPORE: Oil prices edged up on Monday as investors bet supply will remain tight amid restrained output by major producers with global demand unperturbed by the omicron coronavirus variant.

Brent crude futures gained 9 cents, or 0.1 percent, to $86.15 a barrel by 0539 GMT. Earlier in the session, the contract touched its highest since Oct. 3, 2018 at $86.71.

US West Texas Intermediate crude was up 29 cents, or 0.4 percent, at $84.11 a barrel, after hitting $84.78, the highest since Nov. 10, 2021, earlier in the session.

The gains followed a rally last week when Brent rose more than 5 percent and WTI climbed over 6 percent.

Frantic oil buying, driven by supply outages and signs the omicron variant will not be as disruptive as feared for fuel demand, has pushed some crude grades to multi-year highs, suggesting the rally in Brent futures could be sustained a while longer, traders said.

“The bullish sentiment is continuing as (producer group) OPEC+ is not providing enough supply to meet strong global demand,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co. Ltd.

“If (investment) funds increase allocation weight for crude, prices could reach their highs of 2014,” he said.

The Organization of the Petroleum Exporting Countries, Russia and their allies, together known as OPEC+, are gradually relaxing output cuts implemented when demand collapsed in 2020.

But many smaller producers cannot raise supply and others have been wary of pumping too much oil in case of renewed COVID-19 setbacks.

“What comes in view next is the summer demand bump, especially in Europe and the US, which could be bigger than last year’s, if the growing hope around the omicron finally turning COVID from pandemic to endemic proves right,” said Vandana Hari, energy analyst at Vanda Insights.

Festering geopolitical threats to supply are also supporting bullish sentiment, Hari said.

US officials voiced fears on Friday that Russia was preparing to attack Ukraine if diplomacy failed. Russia, which has amassed 100,000 troops on Ukraine’s border, released pictures of its forces on the move.

The US government has held talks with several international energy companies on contingency plans for supplying natural gas to Europe if conflict between Russia and Ukraine disrupts Russian supplies, two US officials and two industry sources told Reuters on Friday.

US crude oil stockpiles, meanwhile, fell more than expected to their lowest since October 2018, but gasoline inventories surged due to weak demand, the Energy Information Administration said on Wednesday.

Concerns over supply constraints outweighed the news of China’s possible oil release from reserves, Fujitomi analyst Tazawa said.

Sources told Reuters China plans to release oil reserves around the Lunar New Year holidays between Jan. 31 and Feb. 6 as part of a plan coordinated by the United States with other major consumers to reduce global prices. 


Here’s what you need to know before opening bell on Tadawul, January 17

Here’s what you need to know before opening bell on Tadawul, January 17
Updated 4 min 8 sec ago

Here’s what you need to know before opening bell on Tadawul, January 17

Here’s what you need to know before opening bell on Tadawul, January 17

RIYADH: Saudi Arabia’s stock market concluded six straight sessions in positive territory as optimistic market sentiment overshadowed growing omicron worries.

In the latest session, the main index TASI edged up to 12,110 points after reaching over 12,200 early in the morning, and the parallel Nomu market closed marginally higher at 26,288 points.

The Gulf was led by the Qatari index QSI which added 0.9 percent, followed by Bahrain’s BAX, up 0.6 percent.

Oman’s MSX30 went down by 0.6 percent, while Kuwait’s BKP index ended flat.

Elsewhere in the Middle East, the Egyptian index EGX30 dropped 1.5 percent.

In energy trading, Brent crude crossed $86 per barrel and US WTI crude oil reached $84.1 per barrel as of 8:43 a.m. Saudi time.

Stock news

  • ACWA POWER Co. appointed Mohammad Abdullah Abunayyan as board chairman, and Mohammad Abdullah Abunayyan as vice chairman for a three-year term
  • Fawaz Abdulaziz Alhokair Co. has submitted a filing to the Capital Market Authority for capital decrease, followed by capital increase through rights issue of SR1 billion ($266 million)
  • Saudi Pharmaceutical Industries and Medical Appliances Corp., or Spimaco, has signed an agreement with Swiss-based Vifor Pharma to locally manufacture a medicine, namely Ferinject
  • Al Rajhi Bank received the green light on completing an acquisition of Ejada Systems Company Ltd
  • Arabian Shield Cooperative Insurance Co.'s merger with Alahli Takaful has been completed, as set out in the shareholder circular
  • Allied Cooperative Insurance Group’s rights issue trading was around 89 percent covered, the rump offering will start on Jan. 18

Calendar

Jan. 17, 2022

  • End of East Pipes Integrated Co.’s initial public offering book-building process
  • Start of Scientific and Medical Equipment House’s IPO book-building process
  • Saudi Automotive Co. will start paying out dividends of SR0.2 per share for the third quarter of 2021

Jan. 18, 2022

  • Alwasail Industrial Co. and AME Co. for Medical Supplies will debut their shares on Nomu
  • Subscription to Allied Cooperative Insurance Group’s unsubscribed shares starts

Jan. 19, 2022

  • Allied Cooperative Insurance Group’s rump offering ends

 


ACWA Power re-appoints Mohammad Abunayyan as Chairman till 2025

ACWA Power re-appoints Mohammad Abunayyan as Chairman till 2025
Updated 9 min 6 sec ago

ACWA Power re-appoints Mohammad Abunayyan as Chairman till 2025

ACWA Power re-appoints Mohammad Abunayyan as Chairman till 2025

RIYADH: ACWA Power Co. re-appointed Mohammad Abdullah Abunayyan as Chairman of the board of directors for another three years, according to a bourse filing.

Suntharesan Padmanathan was appointed as Vice Chairman of the board, the company said in a statement to Saudi stock exchange, Tadawul.
 

 


Alibaba, JD.com investors promote shift to Hong Kong market

Alibaba, JD.com investors promote shift to Hong Kong market
Updated 29 min 49 sec ago

Alibaba, JD.com investors promote shift to Hong Kong market

Alibaba, JD.com investors promote shift to Hong Kong market

RIYADH: Some of China's biggest tech firms are seeing investors boost their proportion of Hong Kong-traded shares away from American Depository Receipts (ADR), as tougher US regulatory oversight and elevated bilateral tensions darken the prospects for such firms on Wall Street.

Nine Chinese companies that have a US primary listing, and either secondary or dual primary-listed status in the Asian financial hub have seen an increased proportion of Hong Kong shares in the past year, according to Bloomberg calculations based on exchange data available through January 2021.

Alibaba Group and JD.com led the pack, with the conversions doubling, Bloomberg reported.

ADR holders can hand their US shares back to the depository bank to record the transfer, which then exchanges them into Hong Kong-listed shares at a specified ratio.

“In the case of forced ADR liquidation or restrictions for investors to trade ADRs in the US, most foreign investors would still be able to keep their exposure to these stocks via their Hong Kong listings,” said Jessica Tea, investment specialist at BNP Paribas Asset Management Asia.


Two new firms to join Saudi Exchange’s parallel market on Tuesday

Two new firms to join Saudi Exchange’s parallel market on Tuesday
Updated 38 min 39 sec ago

Two new firms to join Saudi Exchange’s parallel market on Tuesday

Two new firms to join Saudi Exchange’s parallel market on Tuesday

RIYADH: The Kingdom’s stock market is to see two new company listings on Tuesday, Jan. 18, the Saudi exchange, Tadawul, announced in a filing.

Alwasail Industrial Co. and AME Co. for Medical Supplies will debut their shares on Nomu, Saudi bourse’s parallel market.

Alwasail Industrial’s final offer price was set at the top of the indicative range, at SR19 ($5.06) per share.

This came in line with the completion of qualified investors’ book-building by FALCOM Financial Services Co., where the offering was 16.2 times covered.

Based in Buraydah, Alwasail manufactures plastic pipes to support irrigation systems, water, gas, communications, and sewage projects.

AME Co. for Medical Supplies’ IPO prospectus was issued in late December last year, financial advisor Aldukheil Financial Group said in a bourse statement. The price guidance per share was set at SR50.

Headquartered in Jeddah, the company belongs to the Kingdom’s healthcare sector.