UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO
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Updated 01 December 2021

UAE’s DEWA selects banks for multi-billion dollar IPO

UAE’s DEWA selects banks for multi-billion dollar IPO

RIYADH: Dubai’s main supplier of water and electricity, DEWA, has selected Citigroup, HSBC Holdings, Emirates NBD Bank to lead its initial public offering, Bloomberg reported.

The state-owned company is expected to become the biggest listing in the emirate, and is planning to seek a valuation of around $20 billion to $25 billion.

DEWA has also picked other banks for minor roles.

While Dubai requires companies to sell at least 25 percent of their shares in IPO, the state-owned utility may opt for a smaller amount at first.

The company caters to all Dubai residents and operated 12.3 gigawatts of power capacity last year.

 


Value stocks are hot again amid growing instability in the equity market, says leading banker  

Value stocks are hot again amid growing instability in the equity market, says leading banker  
Updated 24 January 2022

Value stocks are hot again amid growing instability in the equity market, says leading banker  

Value stocks are hot again amid growing instability in the equity market, says leading banker  

Investors are turning once again to value stocks, as they move away from racier growth options after the equity market corrected last week, according to a leading Middle Eastern banker.

The trend comes on the heels of central banks’ plans to tighten their monetary policies by hiking interest rates and slowing down COVID-19 stimulus programs.

According to a recent Financial Times article, MSCI’s index of value stocks in Europe rose almost 5 per cent in the first three weeks of 2022 on a total return basis. 

The MSCI broad equity index represents large and mid-cap equity performance. 

“Whenever there is stock market volatility, people will seek stability. Value stocks provide that element compared to growth stocks,” said Aziz Nader, vice president of capital markets at FFA Private Bank, in an interview with Arab News.

Expectations of interest hikes for the coming year and inflation are affecting stock market stability and more specifically growth stocks, he added.

Higher interest rates are viewed as negatively impacting growth companies because they erode the current value of their projected future earnings, in opposition to value stocks, explains Nader.

Investors are now banking on undervalued and more stable stocks. Business publication Fortune, underlines that value stocks’ price/earnings ratios, the standard affordability measure, tend to be low, which makes them relatively cheap.

“A good place to look at now for investment in value stocks is Europe,” says Nader.

European companies such as energy leaders BP and Royal Dutch Shell, and financial groups HSBC and Allianz, are among the big value stocks to have posted significant gains in 2022, the Financial Times report highlights. 

Additionally, funds holding European financial stocks have attracted $1.4 billion in new client money so far this year, according to the report, quoting Bank of America. 

Value stocks were also the most popular investing theme for this year among 106 institutional investors informally surveyed by Bloomberg News in the first half of December. Value stocks are considered as companies that are priced inexpensively compared to their profits or book value

Until now, value stocks lingered behind growth stocks such as technology.  

Growth stocks around the world have shown 22 percent annual returns including dividends over the past five years, versus 9.8 percent for value, indexes compiled by MSCI Inc. show, according to a Bloomberg report.

However, concerns over central banks ending support measures to world economies during the pandemic and expectations of rising interest rates to stem inflation are reversing the trend. 

Fast-growing but more speculative US tech shares have witnessed heavy selling this year, according to the Financial Times.

This has created instability in the markets. According to Market Watch, the Nasdaq Composite entered correction last Wednesday, ringing up a fall of at least 10 percent from its recent November 19 peak. On Friday, the Nasdaq Composite stood over 14 percent below its November high, while the S&P 500 was down 8.31 percent from its Jan. 3 record.


Egypt mulls turning Sharm El-Sheikh into a green city 

Egypt mulls turning Sharm El-Sheikh into a green city 
Updated 24 January 2022

Egypt mulls turning Sharm El-Sheikh into a green city 

Egypt mulls turning Sharm El-Sheikh into a green city 

RIYADH: Egypt's Sharm El-Sheikh could be transformed into a green city under plans being discusssed by the country's government. 

In preparation for the country’s hosting of the 27th Conference of Parties on Climate Change, or COP27, Enviroment Minister Yasmine Fouad and Tourism Minister Khaled El-Anany discussed measures to cooperate in the sustainable tourism strategy.

Fouad said the meeting also dealt with the measures to be taken to raise the efficiency of hotels within the city of Sharm El Sheikh and the steps to obtain the green mark, the Middle East News Agency reported. 

Al-Anany explained that an action plan is being developed to transform Sharm El-Sheikh into a green, environmentally friendly city.

All hotels, tourist facilities, and diving centres will need to obtain a green certificate from one of the approved international or local bodies, he added. 

He stressed that this will be a model within the framework of a huge project that the ministry is working on to transform the entire Egyptian tourism sector so that it's aligned with climate goals.

This comes amid Egypt’s efforts to limit climate change, in line with the global goals of sustainable development and the north African country’s Vision 2030. 

 


Revamped launch of Restatex Riyadh Real Estate exhibition set for March 1

Revamped launch of Restatex Riyadh Real Estate exhibition set for March 1
Updated 24 January 2022

Revamped launch of Restatex Riyadh Real Estate exhibition set for March 1

Revamped launch of Restatex Riyadh Real Estate exhibition set for March 1

RIYADH: The largest annual real estate event in Saudi Arabia, the Restatex Riyadh Real Estate exhibition will kick off on March 1 after two years of cancelations caused by COVID-19.

It will be held in the entire area of the Riyadh International Convention and Exhibition Center and will last until March 4, Saudi Press Agency reported.

Participants include major real estate development, housing and financing firms, as well as various other businesses concerned with housing, real estate, and financing affairs in the public and private sectors.

Those taking part are expected to provide solutions and offers for housing, real estate, financing, as well as investment opportunities for visitors.

The launch of the activities of the exhibition comprises a new revamped version for the year 2022.

The new visual identity of the exhibition this year reflects a new approach which tackles growth and innovation to serve the real estate community as a whole.


Abu Dhabi Ports establishes marine logistics base at Mugharraq Port

Abu Dhabi Ports establishes marine logistics base at Mugharraq Port
Updated 24 January 2022

Abu Dhabi Ports establishes marine logistics base at Mugharraq Port

Abu Dhabi Ports establishes marine logistics base at Mugharraq Port

RIYADH: Abu Dhabi Ports has signed an agreement with its local branch of the Italian energy company Eni to establish a marine logistics base at Mugharraq Port. 

Aligned with the efforts of driving the growth of UAE’s energy sector, the deal supports offshore drilling operations in the heart of Al Dhafra region, the Abu Dhabi Government Media Office reported. 

Eni Abu Dhabi will gain access to Mugharraq Port’s ultra-modern infrastructure and its location close to the region’s offshore oil and gas facilities. It will also access liquid mud and bulk plant facilities onsite.

“With enhanced capabilities to serve the GCC’s (Gulf Cooperation Council's) oil and gas market, as well as the recent recognition as an international port facility, Mugharraq Port is now well equipped to meet both the regional and global requirements of the Middle East’s leading energy players,” port director at AD Ports, Mubarak Al Mazrouei, said. 

Recently, Mugharraq Port was recognised as an international port facility and received its official certification from the Ministry of Energy and Infrastructure of the UAE. 


Oil demand will exceed pre-pandemic levels by the end of this year, Aramco’s CEO says

Oil demand will exceed pre-pandemic levels by the end of this year, Aramco’s CEO says
Updated 24 January 2022

Oil demand will exceed pre-pandemic levels by the end of this year, Aramco’s CEO says

Oil demand will exceed pre-pandemic levels by the end of this year, Aramco’s CEO says

DAMMAM: Oil demand is currently nearing pre-pandemic levels and will beat it by the end of 2022, the CEO of Aramco said in a media brief in Dammam.

Aramco is “optimistic” about demand, which is already improving for some products such as gasoline and diesel. On the other hand, jet fuel is still lingering behind as air travel hasn’t recovered yet completely.

“However, we’re seeing a pick-up in jet fuel and we think [that] very soon we will exceed 2019 in terms of total demand,” Amin H. Nasser said. 

The Dhahran-based company expects more future travelling, which would drive the demand for the airplanes’ fuel.

Nasser also highlighted the lack of investments the sector is experiencing.

“That lack of investment impacted the growth and the maintenance of some existing fields in different countries [...] and without the right investment it would be very difficult to maintain that [projected] growth,” he explained.

As for the opportunities Aramco is considering, Nasser told Arab News that they have recently made oil and gas pipeline deals, but they are currently considering other investments which optimize their portfolio. He refused to disclose them until they are “mature” enough.

In addition, he pointed out that production levels are determined by the government; specifically the Ministry of Energy. These are the result of OPEC and OPEC+ agreements.

When asked if dividends are set to rise following Aramco’s strong performance in the previous quarters, Nasser said that these matters are in the board’s hands and will be reviewed when it meets.