Saudi private funds’ assets stable, public funds down from last quarter

Saudi private funds’ assets stable, public funds down from last quarter
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Updated 17 September 2022

Saudi private funds’ assets stable, public funds down from last quarter

Saudi private funds’ assets stable, public funds down from last quarter
  • The comparable values of Saudi public funds’ assets plummeted another 10.7 percent in the second quarter of 2022 to SR192.5 billion, from SR215.7

RIYADH: Private mutual funds’ assets in Saudi Arabia remained stable in the second quarter of 2022 at SR333.6 billion ($89 billion), as public funds deteriorated in their quarterly performance, according to data released by the Capital Market Authority.

Looking at private funds’ breakdown by the type of investment, the highest contributor, equities, saw an 11.4 percent decline from SR192.0 billion in the first quarter of 2022 to SR170.1 billion in the second quarter. This was countered by slight increases in the value of investments in debt instruments, real estate and venture capital.

Furthermore, the equities in the aggregate value of private funds’ assets decreased by 6.2 percentage points in the transition between the first quarter and the second quarter of 2022, from 51.0 percent to 57.2 percent.

Investment in real estate made up 34.0 percent of private funds’ investments in comparison to 29.6 percent in the last quarter — amounting to SR113.2 billion in the second quarter, a 14.7 percent increase from its SR99.1 billion value in the first quarter of 2022.

Regardless of its quarterly performance, equities investments mainly contributed to the 21.6 percent yearly growth in private funds’ aggregate assets from SR274.5 billion in the same quarter last year.

Moreover, the total number of subscribers in private funds increased by 1,161 to 9,702 over the same period after adding 918 and 522 subscribers in funds dedicated to real estate and private equity, respectively. This is in contrast to debt instruments, which lost 372 subscribers.

The comparable values of Saudi public funds’ assets plummeted another 10.7 percent in the second quarter of 2022 to SR192.5 billion, from SR215.7 billion in the previous quarter.

This comes after a 13.9 percent quarter-on-quarter decrease in its largest investment component, constituting 52.7 percent of the aggregate value of public funds’ assets, called money market instruments.

Money market instruments, which have been on a decline since the third quarter of 2021, went down from SR117.8 billion in the last quarter to SR101.4 billion this quarter.

Moreover, equities and debt instruments saw sharp quarterly declines of 13.6 and 14.2 percent, respectively, making up a smaller, but still significant 26.6 percent of total public funds’ assets when added together.

Debt instruments have seen their second decrease in value in a row, from SR31.4 billion in the months between January and March to SR26.9 billion from April to June 2022.

Although quarterly values of their equity investment went up in the previous quarter from a contraction at the end of 2021, they experienced another plunge in the second quarter of 2022, from SR28.3 billion to SR24.4 billion.

On a yearly basis, the public funds’ aggregate assets fell by 20.3 percent from SR241.6 billion in the second quarter of 2021, also thanks to a 34.6 percent reduction in the value of money market investments from SR155.2 billion last year.

The public mutual funds gained 156,958 subscribers, reaching 665,763 subscribers in the second quarter this year compared to last quarter, its highest quarterly increase since 2005.

The increase is driven by unprecedented growth in the number of subscribers in Saudi Arabia’s two close-ended traded funds, to reach 158,065 from just 17,987 in the first quarter of 2022.

The number of subscribers in public funds saw a big quarterly increase in transition between the third and fourth quarters of 2021 when it grew by 82,581 and was driven almost entirely by the influx of subscribers to the funds investing primarily in real estate investment trusts.


MENA Project Tracker — Egypt starts new gas project; Oman requests bids for port

MENA Project Tracker — Egypt starts new gas project; Oman requests bids for port
Updated 03 October 2022

MENA Project Tracker — Egypt starts new gas project; Oman requests bids for port

MENA Project Tracker — Egypt starts new gas project; Oman requests bids for port

RIYADH: The offshore arm of Abu Dhabi National Oil Co. has received a commercial bid from a Saipem-led team on its $1 billion Umm Sheriff Gas Cap condensate development project, reported MEED.

ADNOC Offshore has single-sourced bids from the Italian-based consortium — which also includes China Petroleum Engineering & Construction Co.— to speed up the highly delayed engineering, procurement, and construction phase.

Egypt to begin work on a new gas project

Egypt’s Minister of Petroleum and Mineral Resources Tarek El-Molla has announced the approval of a project to connect the Raven offshore gas field to the El-Amriya onshore processing plant, reported MEED.

The project will include many different phases, and act as a link between the Raven field and the butane extraction plant, which is operated by the Egyptian Natural Gas Co.

After its completion, the butane plant will receive 100 million cubic feet a day of gas from the Raven field — reaching its maximum capacity, according to Gasco Chairman Yasser Salah El-Din.

Oman requesting bids on development of new port

Oman has requested bids for the development and operations of its Dhalkut Port in the Southern Dhofar Governorate as part of plans to grow its maritime trade, according to Zawya.  

The project will be tendered under a “develop, manage and operate” contract, where both local and foreign firms will be given a chance to bid.

The deadline for the project bids is Oct. 16.

“Bids must be submitted by local and international companies which have experience in port operation and management,” the statement said.


UAE In-Focus — DMCC named Global Free Zone of the Year for eighth consecutive time

UAE In-Focus — DMCC named Global Free Zone of the Year for eighth consecutive time
Updated 03 October 2022

UAE In-Focus — DMCC named Global Free Zone of the Year for eighth consecutive time

UAE In-Focus — DMCC named Global Free Zone of the Year for eighth consecutive time

DUBAI: Dubai Multi Commodities Center has been named the Global Free Zone of the Year 2022 by the Financial Times specialist editorial team and independent judges.

It is the eighth consecutive year that the Financial Times fDi Magazine has recognized Dubai’s authority on commodities trade and enterprise, the statement added.

Award winners are selected based on a comprehensive set of criteria and a review of the free zones’ ecosystems.

Criteria used in making judgments this year included the effectiveness of each free zone’s ecosystems, business and marketing strategies, infrastructure improvements, and COVID-19 response, the statement said.

This year, the DMCC won several awards, including Large Tenant Free Zone of the Year — Global; Large Tenant Free Zone of the Year — Middle East; Middle East Free Zone of the Year; Middle East SME Free Zone of the Year; Global Excellence Award for Environmental, Social, and Governance Practices; and Global Excellence Award for Infrastructure Development.

Executive Chairman and CEO of DMCC Ahmed Bin Sulayem said: “Since DMCC was established in 2002, we have had two core goals – create a global gateway for trade, and comprehensively enhance the ease of doing business for our member companies.”

SAFEEN Feeders and Invictus Investment sign strategic agreement

A major contract has been signed between AD Ports Group’s SAFEEN Feeders and Invictus Investment to launch an international dry bulk shipping service, according to a statement.

The two companies will purchase ships through Special Purpose Vehicles — 85 percent owned by SAFEEN Feeders and 15 percent by Invictus Investment.

To operate the service, SAFEEN Feeders and Invictus Investment will form a joint venture. 

Invictus Investment will own 49 percent of the joint venture and SAFEEN Feeders will own 51 percent.

The two companies are expected to invest approximately 463 million dirhams in the vessels.

From September 2022 through June 2023, five ships will be deployed of varying sizes, with additional vessels planned for the future.

This joint venture will serve as the carrier for Invictus’ dry-bulk trading business, which ships more than three million tons of commodities annually, primarily wheat and complementary grains. This business will occupy the majority of the ships’ capacity.

The agreement will also extend its commercial bulk shipping services to other companies worldwide, initially focusing on the Red Sea and Pacific corridors, the Indian subcontinent, and the Black Sea region, but with the ability to ship to anywhere in the world within international navigating limits.

Due to Invictus’ large existing trading volumes, the program is expected to generate strong returns on investment for Invictus Investment, the statement said.

Shuaa Capital

Shuaa Capital has announced that its Kuwait-based subsidiary Amwal International Investment Co. has agreed to sell 51 percent of its stake in NCM Investment for 200 million dirhams ($54.4 million), according to a statement.

Shuaa Capital, a Dubai Financial Market-listed company, said in a regulatory filing that it expects the sale to close in the fourth quarter of 2022.


Albabtain Food sets offering price at $20 for Nomu listing

Albabtain Food sets offering price at $20 for Nomu listing
Updated 03 October 2022

Albabtain Food sets offering price at $20 for Nomu listing

Albabtain Food sets offering price at $20 for Nomu listing

RIYADH: Abdulaziz & Mansour Ibrahim Albabtain Co., known as Albabtain Food, has set its offering price for a direct listing on Saudi Arabia’s parallel stock market Nomu at SR77 ($20.49) per share.

Yaqeen Capital, the financial adviser and lead manager for the transaction, confirmed the news in a bourse filing. 

Founded in 1998 by the AlBabtain family, AlBabtain Food has 11 branches spread across the Kingdom, allowing the company to provide its customers with a high level of services in the region.

The company manufactures a range of products including bread, pastries, and ice cream. 

 


Arabian Plastic Industrial to start trading on Nomu on Wednesday

Arabian Plastic Industrial to start trading on Nomu on Wednesday
Updated 03 October 2022

Arabian Plastic Industrial to start trading on Nomu on Wednesday

Arabian Plastic Industrial to start trading on Nomu on Wednesday

RIYADH: Jeddah-based Arabian Plastic Industrial Co. will start trading on Saudi Arabia’s parallel stock market Nomu on Oct. 5, a bourse filing showed.

APICO offered 1 million shares, or 20 percent of its valuation, via an initial public offering at SR27 ($7.19) per share. 

The offering coverage was 15.43 times the total shares offered during the subscription period. 

Established in 1996, APICO serves customers across different sectors, including but not limited to Almarai Co., flynas, TotalEnergies, and Nahdi Medical Co.


Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 
Updated 03 October 2022

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

Kuwait’s Agility to invest $60m to modernize Suez Canal Economic Zone 

RIYADH: Kuwaiti supply chain firm Agility Public Warehousing Co. has committed $60 million to build a customs and logistics center in Egypt's Suez Canal Economic Zone.

Agility will work with SCZone on implementing its strategic vision in service, logistics, and support by setting up a technical and logistics arm that will automate customs processes and operations, according to a statement by the company.

The project is scheduled for implementation in the second half of 2023, and the statement added that the return on the investment “cannot be assessed at this time.”