$1.2 trillion Nuveen opens shop at Abu Dhabi Global Market
Nuveen is the second trillion-dollar investment firm to open shop this month at Abu Dhabi Global Market.
Prior to Nuveen, which manages $1.2 trillion in assets, Prudential Financial’s PGIM, with $1.3 trillion under management, also opened an office in the UAE capital in September.
Nuveen CEO William Huffman told The National, that his firm, which holds the assets of the U.S. teachers’ pension fund TIAA, offers the Middle East market “forward-looking opportunities including infrastructure, renewable energy and real estate technology.”
He said that “based on our conversations with investors, we believe… our reputation … aligns closely with the needs of clients in the region.”
New Zealand, UAE reach terms for signing free-trade pact
New Zealand and the UAE have reached a free-trade agreement after four months of negotiations.
The Comprehensive Economic Partnership Agreement will eliminate duties on as much as 99% of New Zealand’s exports to the Gulf state, according to Trade Minister Todd McClay.
“This will create new opportunities for New Zealand businesses in the dynamic UAE market, contributing to our ambitious target of doubling exports by value in 10 years,” McClay said in a statement issued on Thursday.
Trade between the two countries reached $814 million for the year ending June 2024, he said.
Egypt seeks to sell remaining stake in Alex Bank to Intesa
Egypt is in advanced negotiations to sell its remaining 20% stake in Alex Bank to Italy’s Intesa Sanpaolo SpA, marking the country’s first major asset sale since its currency devaluation in March, Bloomberg reports.
Intesa, which already owns 80% of the bank, will gain complete ownership through the agreement, a move that aligns with the Egyptian government’s plan to offer 32 assets across various sectors, including banking, energy, and real estate.
Egypt, the beneficiary of a $57 billion buyout led by the International Monetary Fund, is seeking as much as $2.5 billion in revenue from state asset sales by June 2025.
Sale of stake in Mideast Starbucks franchise held up by protests
The sale of a minority stake in the Middle East Starbucks franchise owned by Kuwait’s AlShaya Group, which has drawn interest from Apollo Global Management and other international firms, appears to have been paused.
AlShaya, which owns some 2,000 Starbucks coffee outlets across the MENA region and eastern Europe, has watched the business’s market value dwindle in the face of widespread boycotts against the brand, Reuters reports.
Starbucks, McDonalds, KFC and other U.S. brands have been the target of protests in the region since the Gaza war started almost a year ago because of their perceived ties to Israel even though Starbucks has no outlets in the country.
AlShaya’s coffee business has been valued at between $4 billion and $5 billion, the news agency said.
Gulf financial centers attracting rising class of ‘centi-millionaires’
Dubai, Abu Dhabi and Riyadh are among the cities that will likely experience explosive growth over the next two decades because of a proliferation of “centi-millionaires.”
A report by Henley & Partners predicts a 150% increase in the three Gulf financial centers of residents with liquid investable assets of $100 million or more.
There are currently 29,350 centi-millionaires around the world, a figure that has grown by 54% over the last 10 years.
New York’s 744 centi-millionaires represent the world’s largest collection of the super rich, followed by the San Francisco Bay Area with 675 and Los Angeles with 498, according to the report. London ranks fourth with 370 centi-millionaires.
UAE and Australia finish talks on free trade agreement
The UAE and Australia have wrapped up negotiations for a free trade agreement eliminating some 99% of import and export tariffs between the two countries.
Dr. Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, announced the development in a post on X, saying the Comprehensive Economic Partnership Agreement, as the pact is called, will “secure a new era of co-operation and opportunity.”
Dropping fees on non-oil trade will result in estimated savings of $135 million in the first year and $160 million a year once the agreement is fully implemented, Australian Minister of Trade and Tourism Don Farrell said.
Australia exports a range of products to the UAE that include aluminum, coal, steel, meat, nuts, honey and seafood. Besides oil, the UAE sells furniture, copper wire, glass containers and plastic to Australia.
Egypt’s inflation picks up after $57 billion international bailout
Egypt’s inflation is picking up again after slowing for five months amid the $57 billion international bailout led by the International Monetary Fund and the UAE.
The consumer price index rose 2.1% in August, indicating the fastest inflation rate since February.
Prices had been stabilizing in Egypt despite recent food subsidy cuts and hikes in fuel and electricity.
The most recent CPI is scaling back expectations that Egypt’s central bank would cut the benchmark interest rate from its current all-time high of 27.25%, Bloomberg reports.
Kuwait’s surging summer power demand leads to serial blackouts
Kuwait is suffering from more than the intense summer heat this year.
High temperatures have increased electricity demand and led to an unusual series of blackouts, The New York Times reports.
Although the country is one of the wealthiest in the world, its power grid is under strain, leading to the summer power cuts.
Delays in expanding the grid, along with a shift from oil to imported natural gas for power generation, have contributed to the electricity shortages, according to the newspaper.
Some of the problems have been blamed on the country’s disorganized administration, which has had 14 electricity ministers over the past 10 years.
