HSBC tops Standard Chartered in Mideast investment banking fees

A jump in dealmaking across the Middle East and North Africa has generated an estimated $1 billion in investment banking fees so far this year – a 27% boost over the first nine months of 2023, with HSBC leading the pack.

London-based HSBC earned $80.4 million in fees during the first three quarters of 2024, or 7.8% of the total investment banking pool, Zawya reports, citing LSEG Deals Intelligence.

Coming second in the banking field’s league tables was Standard Chartered with $56.5 million in fees, followed by First Abu Dhabi Bank with $56 million. The highest amount of investment banking fees were generated from Saudi Arabia ($470.7 million), followed by the UAE ($395.9 million), Qatar ($45 million), Kuwait ($41.7 million) and Egypt ($25.1 million).

The largest deal in the MENA region during the first nine months of 2024 was ADNOC’s $14.8 billion takeover offer for German chemicals company Covestro, according to the LSEG data. The largest during the third quarter was UAE clean energy firm Masdar’s offer to buy Spain’s Saeta Yield from Brookfield Renewable for $1.4 billion.

The Daily Circuit: HSBC leads in Mideast fees + Mubadala seeks Zelis stake

In the Daily Circuit today, we’re looking at MBZ’s entourage of business leaders in Moscow, Abu Dhabi’s vision of becoming a major food exporter, Mubadala’s prospects for buying a stake in Zelis and French President Emmanuel Macron’s plans to visit Morocco next week. But first, HSBC racks up fees across the MENA region.

A jump in dealmaking across the Middle East and North Africa has generated an estimated $1 billion in investment banking fees so far this year – a 27% boost over the first nine months of 2023, with HSBC leading the pack.

London-based HSBC earned $80.4 million in fees during the first three quarters of 2024, or 7.8% of the total investment banking pool, Zawya reports, citing LSEG Deals Intelligence.

Coming second in the banking field’s league tables was Standard Chartered with $56.5 million in fees, followed by First Abu Dhabi Bank with $56 million. The highest amount of investment banking fees were generated from Saudi Arabia ($470.7 million), followed by the UAE ($395.9 million), Qatar ($45 million), Kuwait ($41.7 million) and Egypt ($25.1 million).

The largest deal in the MENA region during the first nine months of 2024 was ADNOC’s $14.8 billion takeover offer for German chemicals company Covestro, according to the LSEG data. The largest during the third quarter was UAE clean energy firm Masdar’s offer to buy Spain’s Saeta Yield from Brookfield Renewable for $1.4 billion.

GROW YOUR OWN

Abu Dhabi is trying to turn the food chain upside down. Frustrated by supply chain disruptions around the world, the arid emirate is seeking to attract billions of dollars in investments from agrifood companies and eventually become a net food exporter, Bloomberg reports. While the UAE’s capital imports most of its food, it is seeking close to $35 billion of investments in the food sector by 2045, according to the Abu Dhabi Investment Office. Abu Dhabi will offer subsidies to domestic and international firms to attract production of anything from livestock and fish farming to alternative protein and seaweed, said Fatima Al Dhaheri, head of the office’s food and water group.

💲 Sovereign Circuit

Mubadala: The Abu Dhabi sovereign wealth fund is close to buying aminority stake in Boston-based Zelis from Bain Capital and Parthenon Capital that values the healthcare technology company at about $17 billion, Bloomberg reports.

Saudi Power Procurement Co.: The government-owned energy company announced its shortlist of bidders to develop four solar energy projects worth about $1.2 billion across the kingdom. The developers qualified to proceed to the next round include a consortium of Abu Dhabi-based Masdar, Korea Electric Power Corp. and GD Power Development; an alliance of SPIC Huanghe Hydropower Development Co. and EDF Renouvelables; and a partnership between Al Jomaih Energy & Water Co. and TotalEnergies Renewables.

↪↩ Closing Circuit

☪️ Sukuk Sale: Bahrain’s GFH Financial Group named managers and book runners for its $500 million sale of Islamic bonds, or sukuk, which are expected to be issued on the London Stock Exchange’s International Securities Market next month. Among the managers are JP Morgan, Standard Chartered, Emirates NBD Capital, Abu Dhabi Islamic Bank and Al Rajhi Capital.

🥐 Catering Contract: ADNEC Group, the Abu Dhabi based exhibition giant, will fully acquire Royal Catering Services, aiming to boost its Capital Catering business and expand into the aviation, defense, and healthcare sectors.

💰HR IPO: Saudi Arabia’s Tamkeen Human Resources Co. set its IPO price at $13.31 per share, the top of the range, seeking to raise about $106 million when it starts trading next month.

💲Halal Insurance: Dubai-based Islamic insurance Takaful Emarat reduced its share capital by about $34 million to $7 million in a move to offset its accumulated losses.

🚪Hello Landlord: Obligo, an Israeli startup that develops alternative security deposits for apartment rentals, raised $35 million in a Series C funding round led by True Global Ventures and 83North.

↪↩ Circuit Chatter

🏙 Property Partners: Mandarin Oriental will team up with the UAE’s Aldar Properties to develop a branded residential community operated by the hotel chain on Abu Dhabi’s Saadiyat Island that will open later this year.

✈️ New Fleet: Emirates is expanding its cargo fleet with an order for five Boeing 777F freighters and a lease extension for four existing ones, aiming to operate 21 freighters by Dec. 2026 to meet growing global demand.

🏗️  Stacked Apartments: UAE real estate firm Modon launched Maysan, a high-end residential development on Abu Dhabi’s Reem Island, with the first phase featuring 132 stacked apartments that are built to blend with the natural surroundings.

⚗️ Drug Safety: King Faisal Specialist Hospital & Research Centre signed an agreement with the Saudi Food & Drug Authority to provide data to support research on pharmaceutical safety.

🌍 Power Circuit

French President Emmanuel Macron will travel to Morocco next week for a three-day state visit starting Oct. 28 at the invitation of Moroccan King Mohammed VI following years of strained relations. 

Emir of Qatar Sheikh Tamim bin Hamad Al Thani and Italian Prime Minister Giorgia Meloni met at Villa Doria Pamphili in Rome on Monday to discuss cooperation between the two countries.

➿ On the Circuit

Saudi Finance Minister Mohammed Aljadaan is heading the kingdom’s delegation to the IMF and World Bank annual meetings this week in Washington, as well as to the G20 Finance Ministers and Central Bank Governors meeting.

Dr. Amna bint Abdullah Al Dahak, UAE Minister of Climate Change and Environment, visited the farm of Abdulrahman Al Shamsi, an Emirati agricultural entrepreneur, in Al Ain on Monday to highlight innovative agricultural practices and technologies.

Ali Al Dhaheri was named Chairman of the Abu Dhabi International Arbitration Centre by the Abu Dhabi Chamber of Commerce and Industry where he serves as First Vice Chairman.

Michael Belton was appointed as the new CEO of Mered, a Dubai-based real estate developer.

🎶 Culture Circuit

🎞️ Movie Money: The Abu Dhabi Film Commission is putting out word that it will raise governemnt subsidies for international film and TV productions to 35% from 30% starting next year. The increase is aimed at attracting more Hollywood, Bollywood, and regional productions, Sameer Al Jaberi, the commission’s director, told The National. It aligns Abu Dhabi with other popular filming locations, such as Ireland and British Columbia, which has attracted more film projects for them.

📷 Photo of the Day

🗓️ Ahead on The Circuit

Oct. 21-22, Dubai, UAE: AIM Summit Dubai 2024. Investors from alternative investment firms mix with government officials and corporate executives. Jumairah Emirates Towers.

Oct.22-24, Dubai, UAE: Dubai Helishow. Conference features innovations in hybrid and electric helicopters, AI integration, UAV combat operations, and civil aviation. Skydive Dubai.

Oct. 29-31, Riyadh, Saudi Arabia. Future Investment Initiative Conference, 8th Edition. More than 6,000 global participants registered, including world leaders, policymakers CEOs and investors. King Abdul Aziz International Conference Center.

Oct. 31, Abu Dhabi, UAE: Transition Investment Workshop. NYU Abu Dhabi’s Transition Investment Lab holds a day of discussions on aligning investment decisions with social values. NYU Abu Dhabi, East Forum.

Nov. 5-7, Dubai, UAE: EMEA Stakeholder Conference, This invitation-only event brings together over 700 leaders from across the hotel and real estate industry in Europe, the Middle East and Africa. Lapita Dubai Parks and Resorts Autograph Collection.

Nov. 12-13, Abu Dhabi, UAE: CyberQ: Security in the Quantum Era. Conference brings together international experts, policymakers and industry players to discuss challenges of the quantum age of cybersecurity. ADNEC.