IMF Awaits More Egyptian Reforms, Turkish Lira Traders Hedge Against Turbulence, Morgan Stanley Sees Cash Buyers and China Buoying Dubai Property, Saudi Arabia Transfers Another 4% of Aramco
IMF Awaits More Egyptian Reforms Before First Review
Key Takeaways
The IMF is waiting for Egypt to enact more reforms, including privatization deals and genuine currency flexibility, before carrying out the first review of a $3 billion rescue program.
The IMF is keen for Egypt to curb the state’s role in the economy by selling off state assets and allowing the private sector to create growth.
Currency reform is a crucial issue for Egypt, but concerns about inflation and social stability may be putting constraints on policy.
Turkish Lira Traders Hedge Against Turbulence as Election Nears
Key Takeaways
Traders expect tumult in the Turkish lira ahead of next month’s elections, causing the cost to hedge against currency swings to soar to the highest in the world.
Wall Street banks predict a significant weakening in the lira regardless of the election outcome due to concerns about the government’s efforts to control the currency.
JPMorgan Chase & Co. analysts expect the lira to slide to as low as 25 versus the dollar amid elevated volatility, even if there is a commitment to reverse President Erdogan’s unorthodox policies after the elections.
Morgan Stanley Sees Cash Buyers and China Buoying Dubai
Property
Key Takeaways
Morgan Stanley predicts that Dubai’s property prices will continue to rise due to cash buyers, yield-hunting investors, and the reopening of China.
Dubai’s real estate demand is booming due to the government’s handling of the pandemic, liberal visa policies, and an influx of wealthy investors.
The UAE’s real estates developers, such as Emaar Properties and Aldar Properties, have strong revenue backlogs and potential for further launches, providing revenue visibility over the next 3 to 4 years.
Saudi Arabia Transfers Another 4% of Aramco to Wealth Fund
Key Takeaways
Saudi Arabia’s government transferred a 4% stake in Aramco worth almost $80 billion to its sovereign wealth fund as part of its initiatives to diversify the economy and expand investment opportunities.
The transfer will reduce the Saudi government’s direct ownership of the world’s largest oil company to 90.18% and will not impact Aramco’s operations or governance framework.
This is the second transfer of Aramco’s stake to the PIF as part of a plan to grow the $620 billion fund to more than $1 trillion by 2025.
Network International Gets £2.1 Billion CVC, Francisco Bid
Key Takeaways
Network International Holdings received a non-binding takeover bid from CVC Capital Partners and Francisco Partners valued at about £2.1 billion ($2.6 billion).
The proposed all-cash offer of 387 pence per share represents a 28% premium to Network International’s Friday closing price.
Activity in the Middle Eastern payments industry has been heating up, with other companies pursuing sales and deals.
Oman’s Ahli Bank Board Rejects Merger Offer From Bank Dhofar
Key Takeaways
Ahli Bank SAOG has rejected Bank Dhofar SAOG’s proposal for a potential merger.
The proposed merger would have created an entity with $19 billion in assets.
Bank Dhofar has attempted to merge with local rivals in the past with no success.
Events - The Qatar Economic Forum
Key Takeaways
The 3rd Qatar Economic Forum, Powered by Bloomberg, will focus on this rising south-to-south economy and its growth opportunities for the global business community.
The forum will feature heads of state, global CEOs, leading investors, influential voices from culture, sports, and entertainment, and breakout briefing speakers discussing key issues such as energy transition, emerging markets, and climate finance.
Participants can gain insights, network, and acquire fact-based intelligence while being an active participant in various breakout sessions. The event will be held in Doha from May 23-25, 2023.