UAE’s Peninsula abandons $1bn London listing plan for ADX IPO: Bloomberg

UAE’s Peninsula abandons $1bn London listing plan for ADX IPO: Bloomberg
Bloomberg’s sources noted that the company ended London listing talks in light of the growing attractiveness of the Gulf’s capital markets
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Updated 25 May 2022

UAE’s Peninsula abandons $1bn London listing plan for ADX IPO: Bloomberg

UAE’s Peninsula abandons $1bn London listing plan for ADX IPO: Bloomberg

RIYADH: UAE’s Peninsula Real Estate has opted for a stock listing on Abu Dhabi’s exchange, after abandoning plans to list in London, Bloomberg reported citing unnamed sources.

The company was initially exploring listing a real estate investment trust at a value of $1 billion on the London Stock Exchange.

Bloomberg’s sources noted the company ended London listing talks in light of the growing attractiveness of the Gulf’s capital markets.

Emirates NBD, First Abu Dhabi Bank, HSBC Holdings Plc, and Morgan Stanley have been selected to manage the initial share sale, the sources added.

Peninsula and Emirates NBD declined to comment to Bloomberg on the news. 


Pylon targets emerging markets, aims to be the first MENA gigacorn

Pylon targets emerging markets, aims to be the first MENA gigacorn
Updated 27 sec ago

Pylon targets emerging markets, aims to be the first MENA gigacorn

Pylon targets emerging markets, aims to be the first MENA gigacorn
  • Becoming a gigacorn is more important than achieving exponential growth or high earnings: CEO

RIYADH: Every startup’s dream is to hit a $1 billion valuation to become a unicorn. But, with the global need for a sustainable future, startups are itching to join the new gigacorn club.

Entry to this elite club requires a company to offset one gigaton of the 52 global gigatons of carbon dioxide emissions. Egypt’s infrastructure startup Pylon has drawn up plans to become a gigacorn.

In an exclusive interview with Arab News, Pylon CEO and co-founder Ahmed Ashour said that becoming a gigacorn was even more important than achieving exponential growth or high earnings.

“That’s quite a tough goal, so we believe that it will take us eight to 12 years to offset 2 percent of the world’s emissions,” Ashour added.

The firm offers software as a service in the electricity and water industry to help companies manage their operations better by reducing revenue loss and providing a tech-based system.

Business model

The company offers its services with a subscription revenue model that encourages its clients to use it without requiring a large budget.

“What we do is provide a smart grid infrastructure at the subscription model, which translates into installing our solution and giving the utility to operate that network in a smart way,” Ashour informed.

The company also offers financial services that play a huge role in its business model, giving Pylon a fintech side to make it even more interesting.

“The most important feature is the collection of the revenue because, at present, the utility market annually loses around 40 percent of its revenue,” the CEO added.

Ashour explained that digitalizing the collection of revenue in utility companies was extremely important as the global market lost almost $400 billion worth of revenue.

Revenue loss is the result of poor collection methods or utility theft which Pylon can also detect using its technology. Ashour also claimed that customers saw a 45 percent increase in revenue after using their services.

Although its operations can be tempting to pronounce Pylon as a fintech startup, Ashour insisted to label it as an infrastructure cleantech company.

Growth and expansion

Seeing around 250 percent growth year over year in 2021, the company is eyeing several markets in different parts of the world to help it accomplish its gigacorn dream.

At present, Pylon operates in Egypt and the Philippines with 12 utility companies using its services. It is eyeing markets such as Brazil and Indonesia, while studying the Saudi market. Although all these markets will help Pylon reach its goals, Ashour discussed that Egypt and the Philippines will probably have the highest impact in terms of its carbon emission goal.

“We work with covering all the big players when it comes to the private sector here in Egypt, or the majority of them, as well as five of the nine public sector companies, in addition to the Philippines for now,” he added.

Pylon is aiming to repeat its 2021 performance this year with plans to reach a penetration rate of 10 percent in emerging markets.

After raising $19 million in a seed funding round, the company has been studying multiple markets as well as penetrating the countries mentioned earlier.

“We’re studying the market, and we believe that there is a very good opportunity there which will add value to both, Saudi Arabia as well as Pylon, of course,” Ashour added.

Using the investment it received, Pylon started discussing partnerships in Africa as well as operations in Jordan and Nepal.


Wall Street set for gains as traders scale back rate hike expectations

Wall Street set for gains as traders scale back rate hike expectations
Updated 24 June 2022

Wall Street set for gains as traders scale back rate hike expectations

Wall Street set for gains as traders scale back rate hike expectations
  • US stock indexes eye first weekly gain in four
  • Bank stocks mixed after Fed’s stress test results
  • Futures up: Dow 0.68 percent, S&P 0.72 percent, Nasdaq 0.77 percent

REUTERS: Wall Street’s main indexes were set to open higher on Friday as signs of slowing economic growth and falling commodity prices eased expectations over how aggressively the Federal Reserve will raise interest rates to rein in inflation.

Global financial markets have been roiled this month on worries that rapid rate hikes by major central banks could cause a sharp economic downturn, with the benchmark S&P 500 confirming a bear market last week as it recorded a 20 percent drop from its January closing peak.

Data on Thursday showed US business activity slowed considerably in June, driving investors to scale back bets on where interest rates may peak.

Sliding commodity prices also quelled worries about red-hot inflation, with copper prices heading for their biggest weekly fall in a year and crude oil set for a second weekly decline.

“Conversations about the US economy likely slowing which could lessen the hawkishness of the Fed, combined with lower commodity prices and bond yields — these are reasons investors are mentioning to justify why we could experience a near-term bounce,” said Sam Stovall, chief investment strategist at CFRA Research in New York.

“Yet, I do not think that it’s the final bottom.”

The Fed’s commitment to fight high inflation is “unconditional,” Chair Jerome Powell told lawmakers on Thursday, a day after saying it was not trying to provoke a recession but that was “certainly a possibility.”

The main stock indexes looked set to notch their first weekly gain in four, with health care, real estate and utilities — among sectors considered as safer bets during times of economic uncertainty — outperforming so far in the week.

Market heavyweights such as Apple Inc. and Tesla rose 0.9 percent and 0.5 percent in premarket trading. Rising interest rates have hurt shares of the mega-cap growth companies as their valuations rely more heavily on future earnings.

At 08:45 a.m. ET, Dow e-minis were up 208 points, or 0.68 percent, S&P 500 e-minis were up 27.5 points, or 0.72 percent, and Nasdaq 100 e-minis were up 90.25 points, or 0.77 percent.

The University of Michigan’s survey on US consumer sentiment in June and new home sales data will be published later in the day.

FedEx Corp. rose 3.4 percent after the parcel delivery company issued a stronger-than-expected full-year profit forecast despite softening global demand for shipping.

Bank stocks were mixed after the Federal Reserve’s annual “stress test” exercise showed that the lenders have enough capital to weather a severe economic downturn.

Citigroup Inc. slipped 0.9 percent and Bank of America Corp. edged lower, while Morgan Stanley gained 1 percent.

Zendesk Inc. soared 28.1 percent after the software company said it would be acquired by a group of buyout firms led by Hellman & Friedman LLC and Permira in a deal valued at $10.2 billion.


Saudi Arabia strengthens position as largest Arab economy: Report

Saudi Arabia strengthens position as largest Arab economy: Report
Updated 24 June 2022

Saudi Arabia strengthens position as largest Arab economy: Report

Saudi Arabia strengthens position as largest Arab economy: Report

RIYADH: Saudi Arabia’s share of the Arab economy grew 0.4 percentage points in 2021, as it retained its position as the region’s largest economic player.

The Kingdom recorded a domestic output of $833.5 billion last year, the equivalent of 29.7 percent of the entire Arab region, according to a report of the Arab Corporation for Investment and Export Credit Guarantee, Dhaman.

The UAE was the second largest Arab economy, with $410 billion — 14.6 percent of the total, while Egypt ranked third, with a production of $402.8 billion.

Dhaman Director General Abdullah Ahmed Al-Sabeeh expects continued growth in 2022, especially after the value of foreign projects imported to the region increased by 86 percent to reach $21 billion during the first quarter of 2022, compared to the same period in 2021.

The report showed that the Arab economy as a whole, outperformed the eighth largest economy in the world, Italy, with a gross domestic product of $2.1 trillion.

Foreign direct investment grew in the region, with inflow increasing by 43 percent year-on-year, equal to about $53 billion.

This brought the FDI total to around $1.58 trillion.

Those inflows represent 6.3 percent of incoming flows to developing countries and 3.3 percent of global flows.

More than 96 percent of the increased inflows are concentrated in just five countries, led by the UAE with $20.7 billion, and followed by Saudi Arabia with $19.3 billion.

Egypt came in third place with a value of $5.1 billion, followed by Oman in fourth place with a value of $3.6 billion, Morocco in fifth place with $2.2 billion worth of inflows, Dhaman annual monitoring data showed.

FDI balances received by Arab countries increased by the end of 2021 from $958 billion to more than $1 trillion in 2021, according to UNCTAD data.

For the total amount received, Saudi Arabia topped the Arab ranking with $261 billion, representing 26 percent of the Arab total, followed by the UAE with $171.6 billion, and Egypt with $137.5 billion.


Saudi Makkah, Madinah to see 110,000 new hotel rooms by 2030: Colliers

Saudi Makkah, Madinah to see 110,000 new hotel rooms by 2030: Colliers
Updated 24 June 2022

Saudi Makkah, Madinah to see 110,000 new hotel rooms by 2030: Colliers

Saudi Makkah, Madinah to see 110,000 new hotel rooms by 2030: Colliers

RIYADH: Saudi Makkah and Madinah are expected to see the addition of 110,000 rooms by 2030 to cater for Hajj pilgrims, a report has claimed.

Over 100,000 rooms are expected to be supplied across the Gulf Cooperation Council area by 2026, with the total supply estimated to exceed 1 million rooms, Colliers International said.

The large majority will be in Saudi Arabia, followed by the UAE.

Some 700,000 individuals would be employed in the hotel sector in Saudi Arabia and UAE, the key regional markets, to facilitate this increase.

If planned mega projects in Makkah and Madinah are taken into account, these projects would require approximately 50,000 further skilled and trained hospitality professionals by 2030, the consultancy said.

As part of its localization drive, the Kingdom has mandated that at least 30 percent of the staff employed has to be Saudi.

While all front desk and managerial roles have to be assigned to Saudi nationals only, technical roles are still fulfilled by expatriates, the report said.

Key source markets for recruiting staff include Philippines, Egypt, and South Asian Subcontinents like India, Pakistan and Nepal.

The GCC will likely need to employ more than 90,000 professionals in the hospitality sector by 2026, with 82,000 of them working in Saudi Arabia and the UAE, Colliers said.

There were 894,700 rooms supplied across the GCC in 2021, an increase of nearly 387,000 rooms over the past decade, with 70 percent concentrated in Saudi Arabia, it said.

Saudi Arabia has historically been the center for religious tourism and pilgrimage for Muslims, according to Colliers.


UK-GCC trade deal could be finished in a year: Minister

UK-GCC trade deal could be finished in a year: Minister
Updated 24 June 2022

UK-GCC trade deal could be finished in a year: Minister

UK-GCC trade deal could be finished in a year: Minister

RIYADH: UK trade talks with the Gulf countries would be concluded in 12 to 18 months, Britain’s Minister of International Trade Anne Marie Trevelyan has revealed. 

The UK has started talks on a free trade agreement with six Gulf countries in the latest round of negotiations aimed at strengthening its relations outside the EU after its exit.

“It is difficult to determine the time period for discussing free trade agreements, but we believe a period of one to one and a half years is a realistic time period and we have identified it as a starting area,” she told Al Arabiya.

The Gulf Cooperation Council visions work to help the business sector grow, use digital tools to help emerging companies find new markets, and to diversify the economy away from oil and gas in the long term, Trevelyan said.

“We want to make sure that with the removal of obstacles to food, beverages and other goods, we will see companies in both directions benefit,” she said. 

She added: “It is also important to support the flow of investments in both directions, and we want to see the investment flowing between our countries grow more so that companies in UK, Saudi Arabia, UAE and Kuwait, Oman and Bahrain to work closely together to the fullest extent, in order to be able to achieve the visions, and it was really exciting to see the developments during my visit, and that these opportunities for companies not only for our generation, but for future generations.”

UK-US trade agreement

As well as countries in the Gulf, the UK is also in talks with the US, pending President Joe Biden administration's readiness to negotiate a federal trade agreement, Trevelyan said.

“I and a number of ministers are working with a number of US states on topics such as mutual recognition of qualifications and governor-controlled policies to help our companies increase trade and remove some of the existing barriers,” she said.

Trevelyan added: “We look forward to a federal agreement, but President Biden wanted to focus his efforts internally in his first year, and we respect that decision.”

“I'm working with my counterparts to remove barriers to market entry, and we have a resolution on the steel fees and a resolution on the fees related to the Boeing-Airbus dispute. We have done a lot and are waiting for the Biden administration to be ready to begin the federal agreement,” she said.