More profitable year forecast for private investing in the Middle East

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David Rubenstein, co-founder and co-executive chairman of the Carlyle Group (second from left), and Ammar Al-Khudairy, chairman of Samba Financial Group (third from left), with other panelists at the SALT Conference in Abu Dhabi. (AN Photo/Huda Bashatah)
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Ammar Al-Khudairy, chairman of Samba Financial Group. (AN Photo/Huda Bashatah)
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Updated 12 December 2019
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More profitable year forecast for private investing in the Middle East

  • Saudi Arabia working on ‘very aggressive plan’ to privatize water-related assets and schools
  • Given its size, KSA will continue to have ‘attractive opportunities’ beyond the energy sector

DUBAI: On a day that Saudi Aramco shares opened at SR35.2 ($9.39) at the Riyadh’s Tadawul stock exchange, Ammar Al-Khudairy, chairman of Samba Financial Group, one of the banks managing the deal, made three main forecasts for the region’s economy.

“We will see capital markets doing better, which means private equity will start making some money again,” he said during a panel discussion on “the future of private investing” at the SALT conference in Abu Dhabi on Wednesday.

Al-Khudairy’s second forecast was some “bifurcation of private investing,” followed by private infrastructure. “Saudi Arabia has been talking about privatization, both greenfield and brownfield, for three years,” he said, adding that the government has piloted some projects and is working on a “very aggressive plan” to privatize 21 water-related assets and several thousand schools in 2020.

He said China is one of the top two or three relationships globally for Saudi Arabia, despite the few Chinese investments seen in the Kingdom.

While many experts say that private equity is enjoying a “golden era” in the West, the same cannot be said about the Middle East.

Recalling a time before the 2008 financial crisis, Al-Khudairy said there were 92 to 93 announced PE firms and PE funds then. “Today, we have six,” he said, attributing the figure to the unfavorable market in the region.

“If we look at Saudi Arabia, the biggest market in the region, it has been breaking even for the past five years,” he said, adding that the MENA region has had a total return of 4 percent during the same time.

As for the Aramco local initial public offering, Al-Khudairy said: “There was a last-minute call to make Aramco IPO a local IPO. So there was no proactive marketing outside the region.”

Aramco shares opened at 10 percent above their IPO price of SR32, reaching a record $26.5 billion on their first day.

Al-Khudairy noted that as a part of the final allocation, 23 percent went to non-Saudi entities and 37 percent went to institutional investors in Saudi Arabia.

“But a lot of it (international) is Gulf and also some American and European and Chinese money.”

Saudi Arabia was also the focus of remarks by David Rubenstein, co-founder and co-executive chairman of the Carlyle Group, in the same session on the final day of the Middle East’s first Salt conference.

The Carlyle Group is one of the world’s largest and most successful investment firms with $212 billion of assets.

Rubenstein said considering Saudi Arabia’s size, it will continue to have “attractive opportunities” beyond the oil and gas sector.

As an investor, he saw the Arab world as made up of four main areas, with the GCC emerging as the only one with attractive prospects. The Levant has experienced years of conflict and violence, while North Africa is known for the Arab Spring and, like Turkey, is blighted by uncertainties.

That does not mean the GCC region is not without its challenges. According to Rubenstein, the first is a lack of government-owned properties and private-owned estates for sale, which he attributed to the high number of family-owned business in the region that lack the incentive to sell.

“A lot of the money that has been invested here is money that is already in the MENA region,” Rubenstein said, adding that it could take some time before a large number of private equity firms are seen in the GCC.

Attracting Western capital is the second challenge, whether from the US, Western Europe or even Asia, which Rubenstein said is linked to public perceptions about the MENA region.
 


Iran’s foreign minister calls EU sanctions ‘regrettable’

Updated 55 min 18 sec ago
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Iran’s foreign minister calls EU sanctions ‘regrettable’

  • EU foreign ministers agreed in principle to expand sanctions on Iran by agreeing to extend restrictive measures on Tehran’s weapons exports

DUBAI: European Union sanctions announced following Iran’s attack against Israel are “regrettable” because the country was acting in self-defense, Iran’s Foreign Minister Hossein Amirabdollahian posted on X on Tuesday.
Iran launched more than 300 drones and missiles on Israel in what it said was retaliation against a suspected Israeli bombing of its embassy compound in Damascus.
On Monday, EU foreign ministers agreed in principle to expand sanctions on Iran by agreeing to extend restrictive measures on Tehran’s weapons exports of any drone or missile to Iranian proxies and Russia.
“It is regrettable to see the EU deciding quickly to apply more unlawful restrictions against Iran just because Iran exercised its right to self-defense in the face of Israel’s reckless aggression,” Amirabdollahian said on X, before calling on the EU to apply sanctions on Israel instead.
More work will need to follow in Brussels to approve a legal framework before the expansion of the sanctions can take effect.


Israel’s Gaza war has negatively impacted human rights, says US report

Updated 23 April 2024
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Israel’s Gaza war has negatively impacted human rights, says US report

  • Rights issues include credible reports of unlawful killings, enforced disappearances and torture, says report
  • Israeli military's conduct has come under scrutiny as its forces have killed over 34,000 in Gaza since Oct. 7

WASHINGTON: The war between Israel and Hamas that has killed tens of thousands of Palestinians in Gaza and resulted in a severe humanitarian crisis has had “a significant negative impact” on the human rights situation in the country, the US State Department said in its annual report on Monday.

Significant human rights issues include credible reports of arbitrary or unlawful killings, enforced disappearance, torture and unjustified arrests of journalists among others, said the State Department’s 2023 Country Reports on Human Rights Practices.

The report added that the Israeli government has taken some credible steps to identify and punish the officials who may have been involved in those abuses.

Israel’s military conduct has come under increasing scrutiny as its forces have killed 34,000 Palestinians in Gaza, according to the enclave’s health authorities, many of them civilians and children. The Israeli-occupied Gaza Strip has been reduced to a wasteland, and extreme food shortages have prompted fears of famine.

Israel launched its assault in response to a Hamas attack on Oct. 7, in which Israel says 1,200 people were killed.

Rights groups have flagged numerous incidents of civilian harm during the Israeli army’s offensive in Gaza, as well as raised alarm about rising violence in the Israeli-occupied West Bank, where Palestinian Health Ministry records show Israeli forces or settlers have killed at least 460 Palestinians since Oct. 7. But so far the Biden administration has said it has not found Israel in breach of international law.

Washington gives $3.8 billion in annual military assistance to its longtime ally. Leftist Democrats and Arab American groups have criticized the Biden administration’s steadfast support for Israel, which they say provides it with a sense of impunity.

But this month, President Joe Biden for the first time threatened to condition support for Israel, and insisted that it take concrete steps to protect humanitarian aid workers and civilians.


Israel’s Gaza war has negatively impacted human rights, says US report

Updated 23 April 2024
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Israel’s Gaza war has negatively impacted human rights, says US report

  • The Israeli-occupied Gaza Strip has been reduced to a wasteland, and extreme food shortages have prompted fears of famine

WASHINGTON: The war between Israel and Hamas that has killed tens of thousands of Palestinians in Gaza and resulted in a severe humanitarian crisis has had “a significant negative impact” on the human rights situation in the country, the US State Department said in its annual report on Monday.
Significant human rights issues include credible reports of arbitrary or unlawful killings, enforced disappearance, torture and unjustified arrests of journalists among others, said the State Department’s 2023 Country Reports on Human Rights Practices.
The report added that the Israeli government has taken some credible steps to identify and punish the officials who may have been involved in those abuses.
Israel’s military conduct has come under increasing scrutiny as its forces have killed 34,000 Palestinians in Gaza, according to the enclave’s health authorities, many of them civilians and children. The Israeli-occupied Gaza Strip has been reduced to a wasteland, and extreme food shortages have prompted fears of famine.
Israel launched its assault in response to a Hamas attack on Oct. 7, in which Israel says 1,200 people were killed.
Rights groups have flagged numerous incidents of civilian harm during the Israeli army’s offensive in Gaza, as well as raised alarm about rising violence in the Israeli-occupied West Bank, where Palestinian Health Ministry records show Israeli forces or settlers have killed at least 460 Palestinians since Oct. 7. But so far the Biden administration has said it has not found Israel in breach of international law.
Washington gives $3.8 billion in annual military assistance to its longtime ally. Leftist Democrats and Arab American groups have criticized the Biden administration’s steadfast support for Israel, which they say provides it with a sense of impunity.
But this month, President Joe Biden for the first time threatened to condition support for Israel, and insisted that it take concrete steps to protect humanitarian aid workers and civilians.


Nobel laureate urges protest against Iran’s ‘war on women’

Updated 23 April 2024
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Nobel laureate urges protest against Iran’s ‘war on women’

  • Narges Mohammadi issues plea from Evin prison amid new crackdown by Tehran’s morality police

JEDDAH: Jailed Iranian Nobel laureate Narges Mohammadi urged Iranians on Monday to protest against the clerical regime’s “war against women” amid a new crackdown forcing women to cover their heads.
Mohammadi, who is being held in Evin prison in Tehran, called on Iranian women to share their stories of arrest and sexual assault at the hands of the authorities.
Iran launched a nationwide operation this month to enforce the wearing of the headscarf. Women have been arrested and taken to police stations by the morality police, and the Farsi hashtag meaning “war against women” has been trending on social media.
“People of Iran, I ask you, artists, intellectuals, workers, teachers, and students ... inside and outside the country to protest against this war against women,” Mohammadi said in a message from inside the prison. “Do not underestimate the power of sharing your experiences. Doing so will expose the misogynistic government and bring it to its knees.” She accused the authorities of bringing “a full-scale war against all women to every street in Iran.”
Mohammadi said she had been joined in jail by Dina Ghalibaf, a journalist and student who was arrested after accusing security forces on social media of putting her in handcuffs and sexually assaulting her during a previous arrest at a metro station. “For years, we have witnessed many women who have endured assault, abuse, and beatings by government agents,” Mohammadi said.
Mohammadi, 52, was awarded the Nobel Peace Prize last year in recognition of her campaign for human rights in Iran, which has led to her spending much of the past two decades in and out of jail. She has been imprisoned since November 2021 and has not seen her husband and twin children, who live in Paris, for several years.


Bahrain’s crown prince discusses developments in Gaza with US secretary of state

Updated 23 April 2024
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Bahrain’s crown prince discusses developments in Gaza with US secretary of state

  • Crown Prince Salman bin Hamad reiterates his nation’s ‘firm stance’ in support of the Palestinian cause; Antony Blinken thanks Bahrain for its contributions to maritime security

LONDON: Crown Prince Salman bin Hamad of Bahrain and the US secretary of state, Antony Blinken, on Monday discussed the latest developments in Gaza, along with other regional and global issues of common interest.

During their telephone conversation, the Prince “reviewed the strength of the Bahrain-US partnership, highlighting the importance of bolstering joint coordination to achieve common goals and interests,” the Bahrain News Agency reported.

During their talks about the current situation in the Middle East, and in particular the conflict between Israel and Hamas in Gaza, the crown prince reiterated Bahrain’s “firm stance toward the Palestinian cause and its unwavering commitment to reaching a peaceful, lasting and fair solution in support of Palestinians’ legitimate right to establish an independent state with East Jerusalem as its capital.”

He also highlighted the important need to protect civilians and deescalate the violence in Gaza, which he said threatens regional security and stability.

The US State Department said both officials “reinforced their shared commitment to preventing the spread of regional conflict,” and Blinken thanked Bahrain for its contributions to maritime security.

They also discussed ways in which “cooperation under the Comprehensive Security Integration and Prosperity Agreement continues to strengthen the strategic partnership” between their countries, spokesperson Matthew Miller added.