BAGHDAD: Iraq’s oil exports are stagnating compared with a year ago and are set to fall sharply next month while major work is carried out at its vital southern export terminals, industry sources said.
Infrastructure and security problems are making Iraq struggle to keep pace with last year’s rates, although Baghdad is confident of a big rise in production by the end of the year after the start-up of the giant southern Majnoon oilfield.
Iraq’s overall exports of 2.324 million barrels per day (bpd) in July were down a small fraction on June, Iraq’s oil ministry spokesman Asim Jihad said. They are just below levels a year ago.
Southern Basra Light exports are expected to drop by 500,000 bpd in September while metering equipment is installed at the terminal.
Iraq’s major customers say state oil marketer SOMO is suggesting cuts next month of 25 percent in liftings of the main Basra Light grade, which have been running at around 2.1 mln bpd.
Because there is a lack of storage capacity in the south, the export cut will force a decrease in production on nearly the same scale.
Output of crude oil in 2013 has averaged 2.9 million bpd — flat on last year — although flows climbed to 3.25 million bpd at the start of August, Jihad said.
OPEC’s second biggest producer expects output to rise by 400,000 bpd by the end of this year due to the start up of the Royal Dutch Shell-operated Majnoon oilfield in southern Iraq and other smaller sources, Jihad said.
The government has set a production target of 3.4 million bpd for end-2013, down from an initial 3.7 million bpd. If the Majnoon and other increases are realized, Iraq will exceed the reduced target rate by the end of the year.
Unless there is a big burst of production from the oilfield start-ups, however, Baghdad will report an overall annual output decline for 2013 — its first after two years of robust gains — industry sources said.
“Production from the Majnoon oilfield should start in October,” Jihad said. The oil minister had previously given July as the start date.
After idling for years due to wars and sanctions, Iraq’s output began to rise in 2010 after it secured service contracts with large oil groups such as BP, Shell, Eni and Exxon Mobil.
Since then, output has risen by 600,000 bpd to around 3 million bpd thanks to higher flows from the giant southern fields of Rumaila, West Qurna-1 and Zubair.
To continue its production increases, Iraq will need to start up other southern fields apart from Majnoon, such as West Qurna-2, run by Russia’s Lukoil. Garraf, also in the south, and Badra — farther north — will also contribute.
Iraq’s oil exports set to fall sharply next month
Iraq’s oil exports set to fall sharply next month
TVM Capital Healthcare launches $250m fund for Saudi medical firms
RIYADH: Saudi medical companies stand to benefit as private equity firm TVM Capital Healthcare unveils its second pool of funding valued at $250 million for the Middle East.
Since 2009, the international growth capital investment fund has operated in the Middle East, expanding to Southeast Asia in 2021.
The launch of the new fund builds on the firm’s past successes in the region, delivering compelling returns and showcasing its expertise in sourcing deals and nurturing the growth of sustainable enterprises, according to a press release.
Bandr Al-Homaly, managing director and CEO of Jada Fund of Funds, said that the closing of the deal marks an important milestone in mobilizing private capital into Saudi Arabia’s healthcare sector.
“We are pleased to lead the investment, providing capital to support the development of the sector in line with Vision 2030,” he said.
TVM Capital focuses on addressing medical needs through strategic investments in entrepreneurial ventures.
These efforts bring about lasting positive impacts in local communities and offer significant returns for investors, it said.
The firm said it has built a reputation as an international fund manager involved in financing and overseeing major medical companies within the Kingdom.
The company also invests in healthcare growth deals in Europe and the US to support these firms’ expansion plans for Saudi Arabia and the wider Gulf Cooperation Council.
With this two-pronged strategy, TVM Capital aims to bolster the Saudi economy and enhance the region’s access to cutting-edge products, technologies, and services.
Chairman and CEO Helmut M. Schuehsler expressed pride in attracting a notable consortium of institutional and family investment groups from Saudi Arabia, other GCC countries, and Europe. They are investing in a specialized capital pool dedicated to domestic companies in the Kingdom and international firms entering the market.
“We are uniquely positioned for success because our leadership team comprises executives with long-standing expertise in Europe and the US, who have built excellent international networks throughout their careers, alongside local Saudi healthcare experts,” he said.
The chairman noted that their investment journey in the GCC and Egypt spans over 13 years, with a specific focus on Saudi Arabia since 2015 through their previous portfolio companies, ProVita International Medical Center and Cambridge International Medical Center.
“Today, we are truly excited about our ability to enhance the local and regional healthcare ecosystem at a much larger scale, helping to improve access to high-quality patient care, medical products, and treatment regimens across the Kingdom,” Schuehsler said.
Among the initial investments of the fund are Baraya Extended Care, a chain of long-term, post-acute care and rehabilitation clinics based in Riyadh; and DEBx Medical, a developer and manufacturer of innovative products for chronic wound treatment based in Amsterdam, which is set to enter the Saudi market. Additionally, neurocare group, a provider of personalized mental health services and products headquartered in Munich, with clinics in the US, the Netherlands, and Australia, is gearing up to enter Saudi Arabia and the GCC.
According to the statement, additional deals encompass longevity and genomics, oncology and pharmaceuticals, as well as manufacturing and diagnostics.
TVM Capital operates offices in Riyadh, Dubai, Singapore, and Ho Chi Minh City, with supporting offices in Munich and Boston.
The multinational law firm Morgan Lewis represented the firm in the fundraiser.
Egypt sees 30.2% surge in foreigners acquiring work licenses in 2023
RIYADH: Egypt’s private and investment sector experienced an annual increase of 30.2 percent in the number of foreigners acquiring work licenses in 2023.
Data from the Central Agency for Public Mobilization and Statistics revealed a significant surge in the total count of foreign nationals granted licenses, reaching 17,357 individuals, a leap from the previous year’s 13,331.
Of these permits, 7,973 were issued for the first time in 2023, constituting a significant portion of the total influx at 45.9 percent.
GCC healthcare sector to reach $135bn by 2027: JLL
RIYADH: The value of the healthcare sector in the Gulf Cooperation region is projected to reach $135 billion by 2027 driven by rising investor confidence, an analysis showed.
In its latest report, real estate and investment management firm JLL noted that investors are increasingly becoming more optimistic about the healthcare market in the region as Gulf states push for the transformation of the sector in line with their economic diversification plans.
The study also pointed out that regional governments are pushing for increased localization to attain self-sustainability in the healthcare sector, a crucial factor that elevates investor confidence.
Sandeep Sinha, head of Healthcare Consulting at JLL for the Middle East and Africa, said that sector spending within GCC alone is poised to reach $124 billion in 2028.
“Under their economic diversification agenda, countries in the GCC are driving the transformation of this critical sector with infrastructure development, clinical capabilities, human capital development, digital transformation, and establishment of healthcare innovation hubs,” said Sinha.
He added: “This has attracted more private equity companies and witnessed an increase in active deal-making, further positioning the region as a key healthcare player on the global stage.”
According to the analysis, more regional players in the GCC’s healthcare landscape are acquiring local companies or international brands to build their portfolios and transform their business models.
In April, an additional report released by Ireland-based firm Impactful Insights revealed that the healthcare market in the GCC region reached $67.9 billion in 2023 and is expected to grow at a compound annual growth rate of 6.4 percent until 2023 to hit $118.6 billion.
According to that release, the rising adoption of digital health technologies, the increase in sedentary lifestyles, and the escalating aging population are factors propelling the market.
Earlier in May, Adeel Kheiri, a partner in Oliver Wyman’s India, Middle East, and Africa health and life sciences practice, told Arab News that Saudi Arabia’s bold healthcare reforms promise valuable lessons for the region and beyond.
He added that the Kingdom has embarked on a journey to prioritize the health and well-being of its citizens, laying a robust foundation for progress.
“Saudi Arabia’s ambitious healthcare reforms stand out for their scale, complexity, and rapid timeframe. This unique approach will undoubtedly offer valuable lessons learned for the IMEA region and beyond,” said Kheiri.
Moreover, in May, at the GREAT Futures Conference in Riyadh, experts from Saudi Arabia and the UK said that implementing advanced technologies like artificial intelligence will reshape the Kingdom’s healthcare sector.
Saudi Arabia predicted to lead IPO drive in MENA: report
RIYADH: Saudi Arabia will lead the initial public offerings in the Middle East and North Africa region in 2024, with 27 companies eyeing to list on the Kingdom’s main market, an analysis showed.
In its latest report, Dubai International Financial Center, in association with the London Stock Exchange Group, said that the IPO pipeline in the MENA region seems promising this year, as several companies postponed their listings from 2023 to early and mid-2024 in anticipation of more favorable market conditions.
“Deals will be driven mainly by Saudi Arabia, where 27 companies have expressed intent to list on the Saudi Exchange (Tadawul), in addition to expected follow-on issuances from Aramco and Savola,” said DIFC.
It added: “Meanwhile, the IPO pipeline in the UAE includes listings from Parkin, Lulu Group and Tabby.”
According to the report, the privatization of government-backed entities is resulting in greater economic diversification, private sector development and sovereign liquidity creation in the MENA region.
“Driven by the rise in IPOs, capital markets across the MENA region have seen significant growth, with reforms dedicated to improving market infrastructure, attracting even greater foreign investment flows,” said Arif Amiri, CEO of DIFC Authority.
In the report, Nadim Najjar, managing director for Central, Eastern Europe, Middle East and Africa at LSEG, said that the MENA IPO market witnessed a surge in 2022, driven by privatization programs in the UAE and Saudi Arabia amid market challenges.
“The growing trend of both public and private enterprises looking to list publicly has spurred global investment banks to broaden their advisory and underwriting services in the emirate. These emerging investment prospects are consequently drawing a wave of private capital, accompanied by wealth and asset managers to oversee these investments,” said Najjar.
According to the analysis, IPO activity in 2024 will depend largely on global economic stability and a positive track record for recent post-IPO performances.
The report added that improved economic conditions would boost optimism that there will be a revival in the market in 2024, while other variables such as interest rates and market volatility will have a greater influence on market sentiment later in the year.
DIFC further pointed out that the debt market in the MENA region will follow the global trend, and will grow at a marginal pace this year as interest rates remain high, along with high costs of refinancing.
“Interest rates will be the main determinant of debt issuance growth in 2024, with major central banks approaching the end of their rate hike cycles. However, interest rates will likely remain elevated for longer than markets have been anticipating, thereby keeping markets subdued throughout the year,” said DIFC.
According to the study, governments will continue to drive issuance in the region to cover expected budget deficits from lower oil prices, to refinance maturing debt, and to fund major development projects.
However, corporate debt issuance is expected to slow as the cost of borrowing remains high.
Saudi tech firm MIS invests $1m in Elon Musk’s AI venture, xAI Corp.
RIYADH: Saudi tech firm Al-Moammar Information Systems Co. plans to invest $1 million in a controlling stake in Elon Musk’s artificial intelligence company, xAI Corp., according to Al-Ekhbairya.
The Saudi company clarified that this investment constitutes a portion of xAI’s Series B funding round, with a pre-money valuation of $18 billion.
As per its website, Musk’s xAI is focused on developing AI to accelerate human scientific discovery.
“We are guided by our mission to advance our collective understanding of the universe,” it says.
Al-Ekhbariya reported that in January, MIS’s board of directors approved the allocation of SR40 million ($10.6 million) to establish an investment portfolio through self-financing in global AI companies, aiming to capitalize on growth opportunities in this promising sector.
Additionally, MIS has achieved the Cisco Master Security Specialization in Saudi Arabia, showcasing its capacity to deliver advanced, value-added Cisco solutions through its comprehensive sales expertise, technical skills, and service offerings.
In recognition of this achievement, the company is set to be listed as a holder of the Cisco Master Security Specialization in the Cisco Partner Locator.
Under the title “Understand the Universe,” Musk, CEO of Tesla and SpaceX, aims to advance the sector following the introduction of major initiatives such as AlphaStar, AlphaCode and Inception as well as Minerva, GPT-3.5, and GPT-4.
The tech firm, launched in July 2023 to rival existing AI models, works closely with X Corp to deliver its technology to over 500 million users of the X app, formerly Twitter.
Saudi Arabia continues to invest in the tech sector, aiming for sustainable global development by playing a pivotal role in AI.
At the third G7 finance ministers’ meeting under the Italian presidency in Stresa, Italy, Saudi Finance Minister Mohammed Al-Jadaan highlighted the Kingdom’s dedication to advancing AI technology for inclusive growth.
This effort aligns with Saudi Arabia’s National Strategy for Data and AI, which seeks to establish the Kingdom as a global tech leader by 2030.
Moreover, the minister took part in a session titled “Addressing Financing Needs of Vulnerable Countries,” emphasizing the potential of a proposed multidimensional approach to managing debt vulnerabilities.
