United Arab Emirates

Abu Dhabi’s private equity plunge is sensible idea

15 July 2019

Hiking direct investments to the asset class by the emirate’s $700 bln sovereign wealth fund - and cutting reliance on fee-hungry buyout firms - raises risks when the economic cycle turns. But ADIA’s status as one of the more measured SWF dealmakers affords a degree of comfort.

Branson’s space deal defies financial gravity

9 July 2019

The bearded billionaire is selling half his cosmic travel group to former Facebook executive Chamath Palihapitiya’s blank-check vehicle. A $1.5 bln valuation looks rich given Virgin Galactic’s record of two test flights. Still, it needs cash, and Palihapitiya has too much of it.

DP World nets decent deal due to tricky IPO waters

1 July 2019

The $13 bln Dubai-listed port operator bought energy shipping company Topaz for $1 bln including debt. The buyer has avoided overpaying by sticking to its guns on the price. And Renaissance Services, the majority owner of the target, avoids a risky shot at a public listing.

Finablr fire sale implies more than dicey markets

14 May 2019

The Travelex owner cut the price of its IPO by 17%, eating into proceeds for its billionaire owner. Had jumpy markets been the only issue, the float could have been delayed. A drastic price cut instead suggests wider investor quibbles with the currency and payments business.

Vision Fund IPO could self-disrupt

3 May 2019

SoftBank may be mulling a float of the $100 bln tech fund. That suggests rich Gulf backers aren’t a shoo-in for a second iteration. While going public would diversify ownership, the entity might trade at a big discount. That would turn off both public and existing investors.

Uber gets an IPO boost from Middle East deal

26 March 2019

The ride-hailing giant will pay $3 bln to acquire Dubai-based rival Careem. It shows the group, which is burning through $1 bln a year, can still spend to grow as it prepares to go public. Amid intense overseas competition, the move gives Uber one less thing to worry about.

SoftBank adds to contradictions with Mubadala punt

18 February 2019

Masayoshi Son’s group is bankrolling half the Abu Dhabi state investor’s $400 mln start-up vehicle. That’s peanuts next to the $100 bln Vision Fund, and gives SoftBank access to early-stage bets. But outsourcing those decisions is an odd look for a supposed tech visionary.

Abu Dhabi’s $6 bln oil deal is a three-way hedge

29 January 2019

The emirate has sold 35 pct of its oil group’s refining arm to two European producers. Italy’s Eni gets to offset a heavy reliance on exploration, while Austria’s OMV gets non-European refining. Abu Dhabi hedges its dependency on crude by turning crown jewels into cash.

Stalling Jet Airways puts Narendra Modi in a bind

17 January 2019

To save the private carrier, India’s premier may have to choose between relaxing foreign ownership rules for Abu Dhabi’s Etihad and letting state banks take a hit. Both options touch the sorest points of Indian finance: it's an awkward dilemma in the run-up to a general election.

Etihad holds first class ticket for Jet’s tailspin

3 January 2019

The Indian carrier just missed a bank payment, deepening its market plunge. As it tries to flog assets and haggle with lenders, big Abu Dhabi backer Etihad can impose tough terms to salvage the company and its investment. It could even cost Jet founder Naresh Goyal control.

Cox: Saudenfreude over Khashoggi absent from Doha

25 October 2018

As Mohammed bin Salman’s blockade of Qatar nears the year and a half mark, it would be easy for the tiny-but-rich Gulf state to gloat over the kingdom’s woes. But chaos across the border is a big worry. A quiet high road is paying off for Qatar. Even MbS seems to agree.

Emirates NBD’s Turkish deal riskier than it looks

22 May 2018

The Dubai-based lender is paying Russia’s Sberbank $3.2 bln for Denizbank, Turkey’s fifth-largest bank by assets. NBD is buying a high-return asset near book value, and gets to diversify its top line. Yet Turkey’s rising risks reduce the extent to which this is a bargain.

OPEC’s widened tent would still be built on sand

16 February 2018

Oil-exporting countries are working to expand their alliance with Russia and others longer term, the UAE oil minister says. That’s just as production numbers show U.S. drillers are set to pump more oil this year. OPEC’s tent can widen, but it will still face a production gale.

Bill Gates and buyout baron create negative impact

5 February 2018

The billionaire’s Gates Foundation is at odds with Abraaj, a buyout group, over a $1 bln fund to provide healthcare in emerging markets. The dispute underscores the tension in combining charitable and financial goals. The fallout will only fuel skepticism of impact investing.

Sberbank’s homeward pivot is a no-brainer

30 January 2018

The Russian bank is in talks to offload its majority stake in Denizbank. Sanctions had already taken the shine off Sberbank’s expansion abroad. But selling the Turkish lender at its $3.2 bln book value would bolster capital and help it become even more dominant in Russia.

Dubai demonstrates the distance ahead of Saudi

1 November 2017

The UAE’s most populous emirate has become a global financial hub thanks to a diversified economy and tolerance of Western culture. Now Dubai is pushing a green agenda. The kingdom can learn much from its smaller neighbor, including its imperfections, as it tries to catch up.

Etihad’s airlines fail, but odd CDO remains aloft

17 August 2017

Air Berlin and Alitalia are insolvent. Their debt is probably worthless, except for an unusual collateralised debt obligation that part-owner Etihad used to fund them. It is trading at a price that suggests Etihad might bail it out. Fuzzy guarantees often end badly.

Cox: Qatar kerfuffle could tip Aramco to New York

15 August 2017

As the Saudi oil leviathan considers where to IPO, its skirmish alongside regional allies with its Gulf neighbor may play a role. Abu Dhabi punished banks in which Qatar is a big investor. For the LSE, Qatari capital may now be a source of anxiety rather than stability.

Saudi oil cut would be a hit-and-hope strategy

24 July 2017

The kingdom’s pact with OPEC to damp output is crumbling and has failed to drain inventories, or boost prices, fast enough. One suggestion is to reduce its own exports by as much as a seventh to shock markets into submission. If that fails, though, Saudi would look impotent.

Dubai is weakest link in anti-Qatar stand-off

11 July 2017

Keeping its doors open while neighbours kept theirs closed has been a winning strategy for the Middle Eastern trading enclave. The blockade of Qatar will leave a mark on Dubai’s vital real estate sector and trade flows – and could leave its investor-friendly reputation dented.