Millennial princes snatch at power in Gulf 3 Jan 2017 Ageing monarchs may hand greater powers to a younger, more progressive generation in 2017. Falling oil revenues and ballooning budget deficits are forcing sheikhdoms to make overdue economic and social reforms or risk financial meltdown. Millennial thinking could help.
Best of Breakingviews 2016: Our readers’ top picks 30 Dec 2016 You demonstrated a varied, voracious appetite for insight in 2016. The most-clicked columns, podcasts and graphics encompassed the rise of Trump and Brexit Britain to Singapore, Saudi Arabia, negative rates, tech titans and an ethical dilemma for Harvard's business school dean.
Gulf bank mergers will solve an oily problem 20 Dec 2016 Three Qatari banks have become the latest in the region to explore merging. They won't be the last. Exposure to volatile crude and hard-up state owners could trigger more consolidation of the sector in 2017. Governments will exit their charges - and ease their budgetary holes.
BP gets upper hand in Abu Dhabi hardball 19 Dec 2016 The UK oil major has handed the sheikhdom a 2-pct stake to regain access to its most prized oil fields. Abu Dhabi gains expertise and influence, but had looked to be distancing itself from Western groups. BP gains from the change of tack without having to pay hard cash.
Dubai could create its own demographic dividend 26 Sep 2016 The emirate has weathered low oil prices, but an unbalanced workforce means it is missing an economic opportunity. Only one in 23 active workers is a local, official data suggests. If Dubai can't turn citizens into workers, it might as well turn skilled workers into citizens.
Abu Dhabi SWF yet to get the memo on transparency 2 Aug 2016 The annual review of the emirate's ADIA fund contains few facts about performance, or the scale of its assets. The sheikhdom's secrecy is not unusual, and fine when times are good. But with oil prices low, markets and bankers alike have a case for greater transparency.
Abu Dhabi bank M&A could ease state’s fiscal fix 20 Jun 2016 A union of state-held National Bank of Abu Dhabi and the smaller First Gulf Bank makes sense in an era of low oil prices. But with public spending cut 20 pct last year, Abu Dhabi could also use the cash. A value-creative merger could in due course herald a Saudi Aramco-style IPO.
Abu Dhabi fund woe shows perils of mission creep 25 Apr 2016 IPIC strayed far beyond its mandate to invest in oil and gas. In doing so, the Gulf sovereign investor sparked controversies at home and abroad. Its multi-billion dollar tangle with Malaysia’s 1MDB is the latest case of how pairing big ambitions and poor governance can backfire.
Malaysia is big loser from Abu Dhabi fight 19 Apr 2016 Sovereign funds in the two countries have fallen out over a $4.5 bln rescue. That upsets Malaysia’s efforts to contain the financial fallout from scandal-hit 1MDB. It also undermines Prime Minister Najib Razak’s claim that the fund he championed managed to clean up after itself.
Dubai’s skyscrapers may teeter rather than tower 15 Apr 2016 The sheikhdom plans to break its own record for the world’s tallest skyscraper. The new tower will cost $1 bln to build and sit at the heart of a giant real estate project. As falling oil prices force Gulf petrostates to diversify, Dubai may need a new strategy to lure investors.
Trump’s Muslim tirade fails basic capitalist test 9 Dec 2015 The GOP candidate’s call to ban Muslim visitors ignores the openness on which the system that made him rich relies. U.S. deficits, banks and property have all benefitted from Arab money. Closing doors to people could do the same to capital, which a president can ill afford.
Abu Dhabi pullback shows shifting sovereign sands 1 Oct 2015 Emirati fund Mubadala has sold a $3.6 bln loan portfolio jointly held with GE. It may be driven by the U.S. conglomerate’s turn away from finance. But the decision by its Gulf partner to follow is a sign of how sovereign investors have lost their risk appetite.
Abu Dhabi creates overhang risk for Malaysia bank 29 Sep 2015 Gulf fund Aabar may refuse to take up RHB Capital’s $565 mln rights issue despite owning one fifth of the lender. Though underwriters will step in, excess shares would weigh on RHB. The snub would also prompt worries Aabar may join foreign investors selling out of Malaysia.
Malaysia fund mess gives Abu Dhabi no good options 28 Aug 2015 Troubled 1Malaysia Development Berhad denies a state-backed fund is pulling a $5 billion lifeline. Abu Dhabi’s relationship with 1MDB has become an embarrassment, and Malaysia’s sliding currency complicates the bailout. But walking away would make things worse for the Gulf state.
Abu Dhabi’s $2.4bln hotel JV shows HK is still hot 30 Apr 2015 Tycoon Cheng Yu-tung’s offspring are shaking up property group New World Development. The sale of three top hotels to a joint venture with the Gulf sovereign fund shows that, despite falling visitor numbers and the slowdown in China, Hong Kong is still an attractive destination.
Edward Hadas: Dubai the global microcosm 19 Dec 2014 The emirate is rightly seen as extraordinary for its rapid growth in population and wealth. But it also brings into sharp focus the global inequality of income, the materialism of modern economies and the trend to trust an all-knowing, all-powerful government.
Qatar SWF displays new prudence in pivot to Asia 10 Nov 2014 The Gulf country’s sovereign fund has joined forces with China’s top state-owned company to invest $10 bln over five years. The tie-up reflects the challenges of deploying large sums on the mainland. It also underscores the emirate’s less brash approach to investing overseas.
Dubai malls $1.6 bln IPO offers bling at a discount 15 Sep 2014 The world’s largest shopping centre lures customers with dancing fountains and a giant aquarium in the desert. Investors in its listing get strong growth prospects. The price range signals the political desire to ensure the Gulf’s biggest IPO since 2008 flies off the shelf.
Builder’s shaky foundations dent UAE’s credibility 27 Jun 2014 Shares in Arabtec have lost more than half their value in six weeks. The abrupt resignation of its CEO, uncertainty over sovereign support and poor communication are to blame. It’s a warning to investors attracted to the country by its new emerging market status.
Etihad’s Alitalia grab not as loony as it looks 2 Jun 2014 After spending another 300 mln euros on struggling Air Berlin, the Abu Dhabi carrier gives Italy’s stricken flag carrier another lease of life. Acquiring yet another minority stake in a loss-making peer does make sense. And Etihad buys much-needed political clout in Europe.