July Second Week Middle East Finance Newsletter
Move Over Dubai. This Tiny Emirate Wants to Be the Next Haven for Billionaires, Ultra-Wealthy Continue to Prop Up Dubai’s Luxury Property Market, Hedge Fund Verition Joins Global Peersin Dubai.
Move Over Dubai. This Tiny Emirate Wants to Be the Next Haven for Billionaires
Key Takeaways
Ras Al Khaimah is undergoing a significant transformation, attracting wealthy individuals from around the world.
The city boasts a stunning coastline with luxury villas and is set to welcome a $3.9 billion gaming resort planned by Wynn Resorts Ltd.
The RAK International Corporate Centre offers a vantage point for foreign tycoons to witness the city's development and potential investment opportunities.
Saudi Oil Cuts Throw Last Year’s Standout Economy Into Slow Lane
Key Takeaways
Saudi Arabia's decision to extend oil production cuts may have negative economic consequences, potentially leading to an economic contraction.
The oil production cuts were aimed at increasing oil prices but have been largely unsuccessful.
Saudi Arabia, previously the fastest-growing country in the G20, may face economic challenges as a result of the extended cuts.
Erdogan Links Sweden’s NATO Entry to Turkey’s EU Bid
Key Takeaways
Turkish President Erdogan has linked Sweden's NATO membership bid to Turkey's efforts to join the European Union, complicating Sweden's accession process.
Turkey has raised concerns about Sweden's approach to combating terrorism, causing delays in Sweden's NATO application.
The EU has stated that the processes for NATO membership and EU accession should not be connected, highlighting the complexity of Sweden's situation.
Turkey Lira, Stocks Decouple as Orthodoxy Turns Double-Edged
Key Takeaways
Turkey's currency and stock markets have diverged significantly, with the lira hitting record lows while stocks reach new highs.
The central bank's recent interest rate hike fell short of expectations, leading to a decline in the lira's value.
Inflation near 40% has driven citizens to invest in stocks as a means of preserving value, causing a shift in the historical correlation between currency and stocks in Turkey.
Erdogan to Embark on Gulf Tour to Attract Investment to Turkey
Key Takeaways
Turkish President Erdogan aims to seek alternative sources of investment and financial resources from Gulf countries due to a decline in support from Western nations.
The tour of Gulf countries highlights Turkey's efforts to diversify its economic partnerships and reduce reliance on Western countries.
The dwindling financial support from Western nations underscores the need for Turkey to strengthen its ties with Gulf countries for economic stability and growth.
Borouge Surges as Abu Dhabi Envisions $30 Billion Chemical Giant
Key Takeaways
Abu Dhabi is considering a merger plan involving Borouge Plc to establish a chemicals and plastics giant valued at over $30 billion.
Shares of Borouge surged by the most in over a year in response to the news, indicating investor optimism regarding the potential merger.
The talks between Borouge's majority owner OMV and Borouge's backer Adnoc are expected to progress in the coming weeks, potentially leading to a broad outline for the merger.
Dubai’s Shuaa Bolsters Investment Bank With Credit Suisse Hires
Key Takeaways
Shuaa Capital is actively working to rebuild its investment banking franchise by hiring former Credit Suisse bankers.
The appointment of Wafik Ben Mansour as head of the investment bank and the recent hiring of Rustam Rizvanov indicate Shuaa's commitment to expanding its deal activity in the Middle East.
The move highlights the increasing importance of the Middle East as a hub for investment banking and suggests a positive outlook for deal activity in the region.
Hedge Fund Verition Joins Global Peers Setting Up in Dubai
Key Takeaways
Verition Fund Management is opening an office in Dubai, joining other prominent hedge funds expanding their presence in the emirate.
The firm has hired Saad Mahmood, a former Morgan Stanley executive, to lead its Dubai office in the DIFC.
Verition plans to start with 15 employees and has intentions to expand its operations in Dubai.
Ultra-Wealthy Continue to Prop Up Dubai’s Luxury Property Market
Key Takeaways
Dubai's luxury residential market remains robust, with a significant number of high-value properties being sold in the first half of the year.
The demand for luxury homes in Dubai, valued at $10 million or more, continues to grow, indicating a strong market for high-end real estate.
The sustained interest in luxury properties highlights Dubai's appeal as a desirable location for affluent individuals seeking luxurious living options.