Private Equity Firm Ardian Plans to Double Team in Abu Dhabi, Bankers See Asia-Middle East Dual Listings as a Budding Trend, Qatar Wealth Fund Sets Up $275 Million Market-Making Program.
Boeing Works to Win Another Saudi Deal, This Time for 737 Max
Key Takeaways
Boeing is in talks to sell at least 150 of its 737 Max jetliners to startup Riyadh Air, which is shopping for about 300 to 400 single-aisle jets in total.
Negotiations are complicated, with timing and structure still in flux, and Airbus SE could also claim a portion of the order.
Crown Prince Mohammed Bin Salman’s initiative to make Saudi Arabia’s economy less dependent on oil has led to the creation of Riyadh Air, which aims to connect more than 100 destinations around the world by 2030.
Saudi Arabia’s Biggest IPO of the Year Prices at Top of Range
Key Takeaways
The IPO of Jamjoom Pharmaceuticals Factory Co. in Saudi Arabia will raise $336 million, ending a drought in listings in the country.
The oversubscription rate was 67.2 times, showing strong demand for what is set to be the biggest IPO in the kingdom so far this year.
Jamjoom Pharma secured two cornerstone investors for its IPO, a rare feature in the Saudi market, who agreed to subscribe for almost a quarter of the offering.
Bankers See Asia-Middle East Dual Listings as a Budding Trend
Key Takeaways
Dual listings between the Middle East and Asia are expected to become a new trend as investment flows between the two regions rise.
Olam Group Ltd. plans to list its agribusiness unit in Singapore and Saudi Arabia, which would be the first listing of a global company in the kingdom.
The Saudi stock exchange has been seeking to foster international ties, and a successful Olam Agri float could open a pathway for more dual listings.
Qatar Wealth Fund Sets Up $275 Million Market-Making Program
Key Takeaways
Qatar Investment Authority is launching a $275m market-making scheme to attract foreign investors and deepen its capital markets.
The initiative will offer rebates to established market makers and run over five years to improve liquidity and price discovery in Qatar’s capital markets.
Qatar’s wealth fund and General Retirement and Social Insurance Authority are considering consolidating their local holdings worth up to $3bn to increase the free float of the market and attract more inflows from index providers.
Private Equity Firm Ardian Plans to Double Team in Abu Dhabi
Key Takeaways
Ardian SAS plans to expand its office in the United Arab Emirates to about 30 people to take advantage of the opportunities arising in the region.
The French private equity firm aims to invest in green hydrogen projects across the Middle East and North Africa through a dedicated team.
Ardian is closing in on its first Middle Eastern hydrogen investment, to be made through its joint venture with FiveT Hydrogen Hy24, and could announce the deal as early as next week.
Egypt Races to End Pound Dilemma in Hunt for Gulf, IMF Cash
Key Takeaways
Egypt is facing a dilemma as it needs foreign investment from Gulf allies to stabilize its economy, but investors want to see further depreciation of the Egyptian pound before committing.
The country is seeking to sell state assets to raise money, but investors may wait for a better exchange rate before buying, and there are concerns about the impact of further currency devaluation on inflation and food prices.
Economists suggest that deal-by-deal exchange rates and discounts on asset valuations could be used to bridge the gap between Egypt’s needs and investor demands.
Iraq Offers Region Multi-Billion Dollar Project for Europe-Asia Link
Key Takeaways
Iraq is proposing a $17 billion “Development Road” network of roads and railways connecting Asia and Europe to transport energy resources, goods, and passengers.
The project will be constructed in three stages, with investments directed towards constructing rail infrastructure and highways.
The network is expected to generate $6 billion in revenue annually and is aimed at creating a non-oil, sustainable economy while facilitating the transportation of goods and creating jobs.
Lebanon Gets $300 Million From World Bank for One of the Worst Crises in History
Key Takeaways
The World Bank will provide $300 million in additional financing to support the most vulnerable families in Lebanon, but this is only a fraction of what the country needs to cope with its economic crisis.
Lebanon’s economy has been in free-fall due to a banking crisis, causing the government to default on billions of dollars of international debt and pushing three-quarters of its population into poverty.
The World Bank’s funding is aimed at expanding and extending cash transfers to poor households and supporting the development of a unified social safety net delivery system in Lebanon, but the country needs to secure fiscal space to finance its social protection needs.