June Third Week Middle East Finance Newsletter
UAE Lenders Fill Turkey Financing Void Left by Global Banks, A $204 Million Mansion Is Dubai’s Most Expensive House for Sale, UAE’s Biggest Oil Producer Plans to Start Trading Carbon Credits.
Iranian Oil Is Quietly Flooding Into the Global Market Again
Key Takeaways
Iran's crude oil exports have surged to the highest level since US sanctions were re-imposed in 2018, posing risks for a fragile global crude market.
The surge in Iranian crude oil shipments is frustrating efforts by OPEC+ alliance partners to stabilize crude prices, which have retreated 12% this year to near $75 a barrel in London.
While global oil markets are set to swing into a sharp deficit for the rest of the year, crude traders remain skeptical of the projected supply tightness as the swelling tide of barrels from Iran casts a shadow on the outlook.
UAE Lenders Fill Turkey Financing Void Left by Global Banks
Key Takeaways
UAE-based banks are increasing loans to Turkish counterparts as Western lenders retreat amid concerns over the country's regulatory environment.
Abu Dhabi Commercial Bank and Emirates NBD arranged 61% of all syndicated loans to Turkish banks in H1 2021, compared to 15% in the same period last year.
Despite increased interest from UAE lenders, foreign borrowing by Turkish banks is at an all-time low due to higher borrowing costs and weaker domestic demand for hard currencies.
Foreigners Buy Most Turkish Stocks in Months on Orthodoxy Pivot
Key Takeaways
Foreign investors are returning to Turkish stocks at the highest rate in six months following an overhaul of the country's economic leadership.
The appointment of two former Wall Street bankers to run the country's finances has fueled optimism that Turkey could adopt a more orthodox approach.
Concerns over Turkey's unconventional economic policies have led foreign investors to sell Turkish stocks in recent years, pushing their share of the equity market to record lows.
Read more.
Putin Meets With UAE Leader to Break Isolation at Flagship Forum
Key Takeaways
The leader of the United Arab Emirates, Sheikh Mohammed Bin Zayed Al Nahyan, met with Russian President Vladimir Putin at a business forum in St. Petersburg, where they discussed the importance of private-sector cooperation and humanitarian issues.
The UAE is participating in the forum as a special guest country, and despite US pressure to cut ties with Russia, has seen an influx of Russians and their capital since the 2022 invasion of Ukraine.
The talks between the Russian and UAE leaders took place ahead of Putin's meeting with a delegation of African leaders on a peace initiative that includes a visit to Ukraine.
Saudi Arabia Plans $400 Million Expansion of Burning Man-Born Habitas
Key Takeaways
Saudi Arabia is investing $400 million to expand the Habitas hospitality brand across the kingdom as part of its plan to build a tourism industry from scratch.
The aim is to attract new international visitors to Saudi Arabia as well as locals that haven't done much domestic traveling.
Habitas plans to have as many as six new properties throughout the kingdom, with possible sites ranging from the Red Sea coast to the inland capital of Riyadh.
Saudi Wealth Fund Launches New Firm to Attract Pharma Investors
Key Takeaways
Saudi Arabia's Public Investment Fund is creating a new entity, the Pharmaceutical Investment Company, to attract pharmaceutical and biotech companies to invest in drug manufacturing.
The new entity aims to partner with local and international firms to develop pharmaceutical products including insulins, vaccines, plasma therapeutics, monoclonal antibodies and cell and gene therapies among others.
The PIF has become one of the world's largest sovereign wealth funds under the leadership of Crown Prince Mohammed bin Salman, with the aim of transforming the kingdom's economy into one less dependent on oil revenue.
Read more.
Amanat Hires FAB, EFG for Healthcare IPO in Abu Dhabi
Key Takeaways
Amanat Holdings has appointed EFG Hermes and First Abu Dhabi Bank to manage the IPO of its healthcare unit in Abu Dhabi, which could raise about $200 million.
The Amanat Healthcare IPO would be a rare example of a privately-owned company in the Middle East carving out a unit.
The IPO market in the Middle East has slowed this year, but much of the activity has been concentrated in Abu Dhabi.
UAE’s Biggest Oil Producer Plans to Start Trading Carbon Credits
Key Takeaways
Abu Dhabi National Oil Co. is setting up a carbon credit trading desk to offset potential carbon taxes on exported products.
Persian Gulf oil producers are establishing carbon trading markets to transition towards greener economies.
Adnoc Trading's Carbon Business Origination team, led by Aleksi Parkkila, will create carbon credits from Adnoc's own emissions-reduction projects and those of other industries in the UAE.
A $204 Million Mansion Is Dubai’s Most Expensive House for Sale
Key Takeaways
A mansion in Dubai's Emirates Hills neighborhood, nicknamed the "Marble Palace," is for sale at $204 million, making it the most expensive house on the market in a city where luxury property is red-hot.
The house has 60,000 square feet of indoor space, including five bedrooms, 19 bathrooms, an 80,000-liter coral reef aquarium, indoor and outdoor pools, and two domes, among other amenities.
The property's price is partly justified by the value of the time and materials that went into building it, according to the selling agents, and it is estimated that there are only five to ten potential buyers in the world wealthy enough to buy it.