New fund aims to promote Chinese expansion in Middle East
Abu Dhabi-based BlueFive Capital and China International Capital Corp.’s private equity arm are preparing a new fund to support Chinese companies aiming to expand in the Middle East.
The proposed investment vehicle will target sectors where Chinese firms can build up operations across the Gulf region, leveraging both capital and regional market access, Bloomberg reports.
While details regarding the fund’s size and timeline remain undisclosed, the move reflects growing financial collaboration between Chinese investors and Gulf economies.
The planned fund is positioned to facilitate business expansion by offering both strategic and financial resources to participating Chinese companies.
UAE regulates ‘finfluencers’ as users of digital finance grow
Financial influencers are now required to register for official “Finfluencer” status with the UAE’s Securities and Commodities Authority.
The regulator has launched an official authorization scheme mandating compliance with strict content and conduct standards, in a move to ensure transparency and protect investors in digital financial markets.
Approved finfluencers will be permitted to share investment insights and recommendations, with a three-year waiver on registration fees offered to encourage uptake.
The SCA said it also urges the public to verify finfluencer credentials and report unlicensed activity, as it steps up oversight of financial content amid rising digital engagement.
All eyes on Aramco as world’s top oil company set to alter dividend
Investors around the world are watching Saudi Aramco, which is scheduled to announce changes on Tuesday to the way its $124 billion annual dividend gets paid out.
Two scenarios are being considered as the kingdom tries to address its weakened finances, Bloomberg reports.
Aramco, the world’s biggest oil company, could continue some elevated payments and let its balance sheet take the increasing pain. On the other hand, it could cut distribution of the dividend and risk widening the Saudi budget deficit.
The company’s action would also affect debt issuances by Saudi Arabia, whose nearly $15 billion in bond sales this year make it the biggest borrower in emerging markets, the news agency said.
Crude sales and Aramco’s large annual payouts are central to funding Crown Prince Mohammed bin Salman’s Vision 2030 economic transformation plan. The level of the dividend’s distribution, however, has grown beyond the company’s earnings and dried up the $27 billion in net cash it had just over a year ago.
Aramco’s net income has declined year-on-year for seven consecutive quarters, and analysts are forecasting another drop in the fourth quarter. The company’s shares have declined 3% this year.
The Daily Circuit: Bankers gather in Riyadh + ADQ acquires fruit distributor
👋 Hello from the Middle East!
Today in the Daily Circuit, we’re looking at ACWA Power’s $2.6 billion arrangement to finance Saudi solar projects, ADQ’s big fruit and vegetable acquisition, Bahrain’s new 15% tax on multinationals and Red Sea Global’s star-studded party at the Venice International Film Festival. But first, bankers are gathering in Riyadh to focus on this year’s top financial trends.
Saudi Arabia is jumping out of the gate this week as summer fades with its new 24 Fintech conference that brings government leaders, bankers and corporate executives together to debate strategies for the coming year.
More than 25,000 participants and 300 exhibitors are signed up for the event that starts on Tuesday at the Riyadh Front Exhibition & Conference Center, where the agenda features three days of discussions on issues ranging from reconfiguring financial services and government regulation to new sources for funding startups.
Kicking off the confab with a keynote address will be Ayman Al-Sayari, Governor of the Saudi Central Bank. Others scheduled to appear on the conference’s four stages are Saudi Finance Minister Mohammed Al-Jaddan; Maryam Buti Al Suwaidi, CEO of the UAE Securities and Commodities Authority; Ashish Aggarwal, a Partner at Paypal Ventures; and Humaid Mudhaffr, CEO of Qarar.
TAXED IN BAHRAIN
Visions of the Gulf as a tax-free haven are rapidly fading. Bahrain is the latest member of the GCC to introduce corporate taxes, imposing a new 15% profit tax on multinational corporations starting in January.The new taxes will be limited to the largest companies – whose annual global revenue exceeds $830 million. The move brings Bahrain in line with new OECD reforms requiring member-nations to ensure large multinational enterprises pay taxes in every country where they operate. It aims to address issues of international competition arising from the digitalization and globalization of the economy, according to the OECD.
CUTTING RED TAPE
In a bid to compete for international business with its Gulf neighbors, Saudi Arabia is taking a giant garden shears to its regulatory jungle. The Ministry of Investment said it will introduce a new “one-time registration process” for investors, Bloomberg reports. The new rules eliminate the need for multiple licenses and pre-approvals while “significantly reducing paperwork and bureaucratic hurdles,” the ministry said. The changes are also meant to provide equal treatment for foreigners and locals, freedom to manage investments and repatriate funds, and the ability to appeal penalties and violations.
Public Investment Fund: ACWA Power, the PIF-backed utility developer, signed financing agreements valued at $2.6 billion with a consortium of banks to develop three large solar projects. Saudi Telecom, a company backed by PIF, announced an increase of 38% in dividends.
ADQ: Silal, owned by the Abu Dhabi sovereign wealth fund, said it will acquire a majority stake in fresh produce distributor Al Bakrawe Holding, making it the UAE’s biggest vegetable supplier.
Oman Investment Authority: The Omani sovereign wealth fund announced the merger of its Oman Food Investment Holding Co., known as Nitaj, and Fisheries Development Oman, turning them into a single entity.
🍞 Milling Shares: The coming $271 million IPO for Saudi Arabia’s Arabian Mills for Food Products was fully covered by institutional investors within an hour of books opening on Sunday, Bloomberg reports.
🏭 Fertilizer Plant: QatarEnergy will build a urea production complex with three ammonia production lines that will more than double Qatar’s output of the agricultural fertilizer.
🎵 Filling Seats: Saudi Arabia’s event booking platform, WeBook, has signaled its intention to go public on the stock exchange with a value reaching $1 billion, Arab News reports.
🛢️ Planning Ahead: Dragon Oil, the energy company owned by the government of Dubai, opened a regional office in Turkmenistan and said it would be useful to its plan for a blue hydrogen venture.
🌍 Qatar Financial Centre: QFC plans to launch digital assets regulations in a bid to build trust and confidence among consumers, service providers and industry stakeholders.
🛢️ Energy Management: Egypt and Siemens will collaborate on creating a roadmap for electrical equipment, focusing on medium and low-voltage areas, to monitor and operate the country’s electric grid and energy management.
⚡ Blacked Out: Egypt’s dreams of energy self-sufficiency when its Zohr gas field was inaugurated in 2018 have since fizzled as the country continues to suffer from fuel shortages and widespread blackouts, the Financial Times reports.
💰 Cashless Society: Riyadh Air and Noon will integrate a new transaction gateway into the airline’s system in a move that supports the government’s effort to promote a cashless society.
UAE President Sheikh Mohamed bin Zayedled a formal government discussion on national affairs on Sunday with Sheikh Mohammed bin Rashid, the Vice President and Prime Minister of the UAE, and Ruler of Dubai, at the Al Marmoom Palace in Dubai. Among others attending the meeting were Sheikh Hamdan bin Mohammed bin Rashid, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence; Sheikh Hamdan bin Mohamed bin Zayed, Deputy Chairman of the Presidential Court for Special Affairs; Sheikh Mohammed bin Hamad bin Tahnoun, Advisor for Special Affairs at the Ministry of Presidential Court; and Khaldoun Al Mubarak, Chairman of the Executive Affairs Authority and Member of the Executive Council.
Sheikh Abdullah bin Zayed Al Nahyan, UAE Deputy Prime Minister and Minister of Foreign Affairs, held a meeting with Jasem Mohamed AlBudaiwi, Secretary General of the Gulf Cooperation Council in Abu Dhabi on Sunday to discuss strengthening coordination between the GCC’s six member-states.
Hazem Ben-Gacem resigned as co-CEO of Bahrain-based Investcorp, the Middle East’s largest alternative asset manager. Rishi Kapoor was appointed Vice Chairman and Chief Investment Officer.
Alex Trafton was named Senior Vice President for Technology Risk Management at Abu Dhabi-owned artificial intelligence company G42. He was previously Senior Managing Director at California-based Ankura.
Dr. Amna bint Abdullah, UAE Minister of Climate Change and the Environment, delivered an address on the country’s net-zero emissions goal for 2050 at the BRICS High-Level Dialogue on Climate Change in Moscow on Friday.
Rania Al-Mashat, Egyptian Minister of Planning, Economic Development and International Cooperation, met on Sunday at a conference in Capetown, South Africa with Dilma Rousseff, President of the New Development Bank, and discussed financing for Egypt’s new wind power plant in Suez.
🎥 Glittering in Venice: Antonio Banderas, Richard Gere and Lucien Laviscount were among the stars at the Venice International Film Festival who turned up at the amfAR Gala Sunday night that was sponsored by Saudi Arabia’s Red Sea International Film Festival and the World Gold Council. Singer Kelly Rowland performed.
Aug. 31-Sept. 8, Abu Dhabi, UAE: Abu Dhabi International Hunting and Equestrian Exhibition (ADIHEX). The premier event for hunting, falconry and equestrian enthusiasts in the Middle East. ADNEC.
Sept. 1-7, Dubai, UAE: Dubai Fashion Week. Promoting Dubai’s creativity and fashion businesses to a worldwide audience. Dubai Design District.
Sept. 3-5, Al Alamein, Egypt: Egypt International Airshow. The gateway to aerospace in Africa and the Middle East. Al Alamein International Airport.
Sept. 3-5, Aqaba, Jordan. S0FEX 2024. Over 300 international defence and security companies from 38 countries attend the Special Operations Forces Exhibition and Conference (SOFEX). Aqaba International Exhibitions and Conferences Centre.
Sept. 3-5: Riyadh, Saudi Arabia. 24 Fintech. Ayman Al-Sayari, Governor of the Saudi Central Bank, delivers the keynote address in conference focused on kingdom’s financial industry. Riyadh Front Exhibition & Conference Center, Saudi Arabia
Sept. 10-11, Dubai, UAE: Global Vertical Farming Show 2024. Annual event brings together investors, growers, and executives in the vertical farming industry from around the world. Le Méridien Dubai Hotel & Conference Centre.
Sept. 10-12, Riyadh, Saudi Arabia: Global Artificial Intelligence Summit. A leading platform for advancing the global discussion on AI. King Abdulaziz International Conference Center in Riyadh.
Sept. 11-12, Dubai, UAE: Dubai AI & Web3 Festival. Bringing together the brightest minds to explore and expand the commercial possibilities of AI and Web3 technologies. Madinat Jumeirah.
Sept. 12, Dubai, UAE: U.S.-U.A.E. Space Relationship. U.S.-U.A.E. Business Council hosts a luncheon featuring astronaut Sultan Al Neyadi, Minister of Youth; Salem Al Marri, Director General of Mohammed Bin Rashid Space Centre; and U.S. Ambassador Martina Strong. Ritz Carlton Hotel, DIFC.
Sept. 15-19, Abu Dhabi: Loop Beyond Borders. Luxury travel fair brings together hotel owners, tour operators, travel agents and government officials. Saadiyat Rotana Resort & Villas and Anantara Qasr Al Sarab.
Sept. 16-18, Abu Dhabi, UAE: World Utilities Congress. Ministers, policymakers and industry leaders discuss strategies for driving growth and innovation across the power & water utilities value chain. ADNEC.
Sept. 24-25, Dubai, UAE: ACT Middle East Treasurers Summit. Corporate treasurers and financial professionals from across the region gather for policy discussions on issues ranging from cash management to sustainability. Grand Hyatt Dubai.
Sep. 30-Oct. 2, Dubai, UAE: Future Hospitality Summit. The global conference for leaders in the hospitality industry expands this year at a new location with dedicated space for ESG planning, country pavilions and a larger exhibition area. Madinat Jumeirah.
Fintech in focus as DIFC draws 8,000 to summit
Fintech has long been a darling of the Dubai startup scene with over half of all finance-focused startups in the Gulf calling Dubai home.
The sector has shown some resilience amid the wider technology market correction, and it is against this backdrop that the Dubai International Financial Center is hosting its second annual summit startin Monday.
Some 8,000 investors, business executives, founders and regulators are expected at the event to discuss the latest innovations and challenges.
Driving conversations and deals over the two-day conference will be themes like financial inclusion — the region has more than 85 million “unbanked” adults — as well as business-friendly regulations in the UAE, emerging opportunities in green finance and cross-border cooperation.
The MENA region has 800 fintech startups valued at $15.5 billion, according to data by Dutch data platform Dealroom.
Slated to attend are more than 20 governors of financial institutions including Essa Kazim, Governor of the DIFC; as well as Adena Friedman, Chair & CEO of Nasdaq Inc; Nic Dreckman, CEO of Bank Julius Baer; Yie-Hsin Hung, President & CEO of State Street Global Advisors; and Jim Demare, President Global Markets at Bank of America.
Local speakers include Abdullah bin Touq Al Marri, Cabinet Member and UAE Minister of Economy; H.E. Helal Saeed Al Marri, Director General, Department of Economy and Tourism, Dubai; Salem Humaid Al Marri, Director General, Mohammed Bin Rashid Space Centre, UAE; and Faisal Belhoul, Vice Chairman of the Dubai Chamber.
