UAE In-Focus: Peninsula acquires 17 leased warehouse buildings; Dubai sees rental growth

UAE In-Focus: Peninsula acquires 17 leased warehouse buildings; Dubai sees rental growth
CBRE’s August 2022 Dubai Residential Market Snapshot shows that Dubai’s residential market recorded 6,524 transactions in July 2022, up 58 percent. (Shutterstock)
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Updated 16 August 2022

UAE In-Focus: Peninsula acquires 17 leased warehouse buildings; Dubai sees rental growth

UAE In-Focus: Peninsula acquires 17 leased warehouse buildings; Dubai sees rental growth

DUBAI: Peninsula Real Estate Management Limited has acquired 17 leased warehouse buildings at the AL MARKAZ Industrial Development from Waha Capital, through its wholly owned subsidiary, Waha Land, for 555 million dirhams ($151 million), according to a statement.

AL MARKAZ is a mixed-use industrial development developed by Waha Land in Al Dhafra, 35 km west of Abu Dhabi. It features Grade “A” industrial and logistic facilities and first-class infrastructure, the statement said.

Under the terms of the agreement, the two parties are expected to close the all-cash deal by the end of 2022.

Peninsula CEO James Gallon said in a statement: “This acquisition is one of a number of transactions that Peninsula will be announcing in the months ahead, as we continue to build a portfolio with diversified and highly visible cash flows.”

Along with the five plots that make up 362,000 sq. m, Peninsula has also agreed to purchase an additional 136,000 sq. m of industrial properties currently under development by Waha Land, with leasing expected to begin in the third quarter of 2023 after construction is completed.

Waha Land will continue to develop its remaining land bank assets following the sale. AL MARKAZ’s land and built assets will also continue to be developed, leased, and monetized through Waha Land’s comprehensive asset development and management capabilities.

Aleph Hospitality enters Congo and creates job opportunities

Dubai-based Aleph Hospitality signed a management contract with Congo-based Sokerico Group to operate Kertel Suites in Kinshasa, according to a statement.

The boutique property is set to open in the first quarter of 2023, setting a new benchmark for the hospitality sector in Kinshasa. Across eight African countries, Aleph Hospitality now operates 12 properties, the statement said.

Founder and Managing Director of Aleph Hospitality, Bani Haddad, said: “It’s an interesting time to secure a presence in the heart of Africa, as the Democratic Republic of the Congo is currently investing in the hospitality sector, restoring historical sites and strengthening sustainability within their ecosystem.”

According to Ritesh Hemnani and Kenny Rawtani, owners of Sokerico Group and developers of the project, Kertel Suites will create vast employment opportunities for Congolese residents as part of Aleph’s rapidly growing hospitality group.

Dubai’s rental growth, highest level since May 2014: CBRE 

CBRE’s August 2022 Dubai Residential Market Snapshot shows that Dubai’s residential market recorded 6,524 transactions in July 2022, up 58 percent.

Off-plan sales increased by 59 percent and secondary market sales by 57.1 percent during this period. While the total volume of transactions reached 45,793, a record high since 2009, the report said.

In the year to July 2022, the average price increased by 9.9 percent. During this period, average apartment prices increased by 8.7 percent and average villa prices increased by 17.8 percent, the report added.

In July 2022, the average apartment price in Dubai was 1,114 dirhams ($303) per square foot, while the average villa price was 1,335 dirhams per square foot.

In comparison to late 2014 highs, these rates per square foot are 25.1 percent and 7.6 percent lower, respectively.


Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu
Updated 15 sec ago

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

Knowledge Tower Trading to proceed with IPO for 20% stake on Nomu

RIYADH: Knowledge Tower Trading Co. will conduct an initial public offering of its 350,000 ordinary shares on the Nomu-Parallel Market according to the company’s plans, revealed by its financial advisor Watheeq Capital.

This represents around 20 percent of Knowledge Tower’s SR18 million ($5 million) share capital, which is divided into 1.75 million shares, as it was stated in a filing with the Stock Exchange.

The end price of the offering is expected to be determined once the book-building process for the offering has been completed.

The offering period will run from Oct. 30 through Nov. 3 for qualified investors, according to the statement.

As of Sept. 12, the Capital Market Authority has approved the company’s application to list on the parallel market Nomu.

This came after it secured the approval of the listing by the Saudi Exchange on July 24.

Watheeq Capital has been appointed as Knowledge Tower’s Financial Advisor, while Derayah Financial has been appointed as Knowledge Tower’s Lead Manager for the IPO.

In its latest earnings report, Knowledge Tower posted SR3.6 million in profits during its financial year ending in March, with its revenue exceeding SR20 million during the same period.

The company expected that its shares would start trading on the parallel market once all its letters were completed.

The Dammam-based company is currently engaged in the wholesale distribution of stationery and office supplies, as well as the retail sale of stationery, newspapers, and magazines as part of its business activities.

The company also publishes printed books, dictionaries, atlases, and maps in addition to importing and producing written, drawn, and illustrated intellectual products.

It is the sole agent for American books published by National Geographic for American schools in Saudi Arabia.

The Saudi stock exchange Tadawul Group announced in March that it had received more than 70 listing applications for both the main index TASI, as well as the parallel index Nomu.

The Saudi Stock Exchange recorded 17 initial share sales in the first half of the year, generating proceeds amounting to $5.07 billion.

The parallel Nomu market accounted for nine listings worth $649 million.

This number is up from 15 offerings during the whole of 2021, which raised almost $5 billion.

As of Tuesday, Sept. 27, TASI, the main market, has listed 10 IPOs, while Nomu, the parallel market, has listed 11 IPOs.


Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook
Updated 28 min 45 sec ago

Goldman cuts 2023 oil price forecast due to weakening demand outlook

Goldman cuts 2023 oil price forecast due to weakening demand outlook

RIYADH: Goldman Sachs on Tuesday cut its 2023 oil price forecast due to expectations of weaker demand and a stronger US dollar, but said the ongoing global supply disappointments only reinforced its long-term bullish outlook.

Goldman’s commodities research division lowered the forecast for next year by $17.5 per barrel on average, even as it saw a seasonally adjusted global oil market deficit in the fourth quarter of 2022 and in 2023.

It revised its oil price forecast lower by $19 per barrel on average for the period stretching from the fourth quarter of 2022 to the fourth quarter of 2023 and sees global oil demand growing in 2023 by 2.0 million barrels per day at current prices, versus a previous forecast of 2.5 million bpd, according to a research note issued by the investment bank.

“Even with a cautious growth outlook ... the oil market remains critically tight, with still near-record low inventories and OPEC spare capacity and with supply soon set to turn supportive once again between the end of the US Strategic Petroleum Reserve sale and the expected decline in Russian production later this year,” the note said.

The short-term path for oil prices is likely to remain volatile, Goldman said, adding that a sharply appreciating dollar and lower demand expectations will continue to put downward pressure on oil for the rest of this year. 

“While it may be surprising that oil is pricing such low growth expectations, this reflects the outsized exodus of investors, forced away by the extreme price volatility this spring,” it said.

It would take an economic hard landing and a contraction in global gross domestic product growth to justify sustained lower prices, the note said.

Oil prices, which touched a nine-month low on Monday, were up more than 2 percent on the back of supply curbs in the US Gulf of Mexico due to Hurricane Ian and a slightly weaker dollar.

Goldman does not expect the Organization of the Petroleum Exporting Countries to increase its production quotas this year and sees the oil exporting group stabilizing output near current levels through 2023.


Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
Updated 28 September 2022

Third Jordan-Gulf Economic Forum begins in Amman

Third Jordan-Gulf Economic Forum begins in Amman
  • Jordanian minister said value of trade between his country and Gulf Cooperation Council member states reached $6.6 billion in 2021

AMMAN: The third session of the Jordan-Gulf Cooperation Council Economic Forum began in Amman on Tuesday. It brings together officials and business representatives from Jordan and GCC member states to discuss opportunities for the expansion and development of economic relations, the Jordan News Agency reported.

The forum, which is taking place under the title New Horizons for Economic and Investment Cooperation, aims to advance the strategic objectives and interests of all participating nations, according to the Jordanian Ministry of Industry, Trade and Supply.

The delegates at the two-day event include businessmen, investors, the heads of trade federations and chambers of commerce, and representatives of Gulf and Jordanian government stakeholders, according to the ministry.

In his opening remarks, Youssef Shamali, the Jordanian minister of industry, trade and supply, said that the value of trade between his country and GCC member nations reached $6.6 billion in 2021. Jordanian exports to the GCC were worth $1.7 billion of that total, while Jordan’s imports accounted for $4.9 billion.

The minister added that Gulf nations are responsible for the most significant foreign investments in Jordan, and capital from the region has benefited the nation’s economy and created jobs for the Jordanian people.

He added that if Arab nations were to unite to form a powerful economic bloc, it would allow them to boost exports, increase production, create new job opportunities for young people, and achieve greater integration into the global economy.
 


Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low
Updated 27 September 2022

Oil up $2 per barrel from multi-month low

Oil up $2 per barrel from multi-month low

NEW YORK: Oil rose by $2 a barrel on Tuesday from a nine-month low a day earlier, supported by supply curbs in the US Gulf of Mexico ahead of Hurricane Ian and a slight softening in the US dollar.
Prices also drew support from analyst expectations of possible supply cuts from the Organization of the Petroleum Exporting Countries and allies, which meets to set policy on Oct. 5.
Brent crude was up $2.35, or 2.8 percent, to $86.41 a barrel at 10:52 a.m. EDT (1452 GMT). On Monday it fell as low as $83.65, the lowest since January. US West Texas Intermediate  crude was up $2.04, or 2.7 percent, at $78.74.
Crude soared after Russia invaded Ukraine in February, with Brent coming close to its all-time high of $147 in March. Recently, worries about recession, high interest rates and dollar strength have weighed.
“Oil is currently under the influence of financial forces,” said Tamas Varga of oil broker PVM. “In the meantime, relief rallies, like the one this morning caused by Hurricane Ian in the US Gulf, are viewed as temporary phenomena.”
The dollar edged back from a 20-year high, which also supported oil. A strong dollar makes crude more expensive for buyers using other currencies.
Supply cuts also lent support. BP and Chevron said on Monday they had shut production at offshore platforms in the Gulf of Mexico as Hurricane Ian approached.
The outages may only provide a momentary reprieve for oil prices, Jim Ritterbusch, of Ritterbusch and Associates, said in a note.
“Outages are apt to prove brief,” Ritterbusch said, adding that the Gulf of Mexico represents “only about 15 percent of total US production amid this shale age” so the effect “is apt to be minimal.”
The oil price drop has raised speculation that OPEC+ could intervene. Iraq’s oil minister on Monday said the group was monitoring prices and did not want a sharp increase or a collapse.


Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program
Updated 27 September 2022

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

Moody’s assigns stable outlook to PIF-owned firm’s EMTN program

RIYADH: Global rating agency Moody’s has assigned the Public Investment Fund-owned GACI First Investment Co.’s EMTN program  a (P) A1 rating.

The euro medium-term note program has been established under the special purpose company incorporated in the Cayman Islands.

The firm has been assigned a stable outlook in line with the stable outlook on existing ratings of PIF.

The rating decision reflects Moody’s view that note holders will effectively be exposed to PIF’s senior unsecured credit risk.

In February, Moody’s Investors Service assigned an A1 long-term issuer rating to the PIF. As one of the world’s largest sovereign wealth funds, PIF is one of the main vehicles to grow the Kingdom’s non-oil economy and reduce its reliance on the hydrocarbon sector.