MENA Private Equity Activity Declined in 2009 but Set to Rebound in 2010

2010 outlook remains positive as MENA continues to grow amidst an economically stable environment

Private equity in the Middle East witnessed a decline in 2009, with fund managers raising only US$1.06 billion compared to a near-record US$5.4 billion in 2008 according to the 4th annual Private Equity& Venture Capital in the Middle East report released by the Gulf Venture Capital Association (GVCA) in collaboration with KPMG and Zawya. Private equity investments have also regressed from $2.72 billion in 2008 to $561 million in 2009. Private equity investments globally as well as regionally were affected by the cautious investment environment as a result of the continued recession in 2009.

However, private equity firms in the Middle East and North Africa raised $1.25 billion in the first quarter of 2010, an 18% percent increase over all of 2009, as regional economies recovered and investor appetite returned. Read more

BofA Merrill Lynch Fund Manager Survey Finds Bear Market Sentiment Is Back

Investors have turned bearish in their outlook for the global economy and corporate earnings, according to the BofA Merrill Lynch Survey of Fund Managers for July.

The survey shows a net 12 percent of respondents predicting the global economy will deteriorate in the coming 12 months, the first negative forecast since February 2009. This represents a big turnaround from June when a net 24 percent forecast the economy to strengthen. Read more

Partnership with NCB Capital strengthens Fidessa’s MENA operations

Fidessa group plc (LSE:FDSA) provider of award-winning trading systems, market data and global connectivity to buy-sides and sell-sides globally, today announced that NCB Capital (NCBC), the Saudi Arabian investment company and asset manager, has selected Fidessa’s sell-side trading platform to support its retail and institutional client operations on the Saudi stock market, as well as its global trading activities.

This move underpins Fidessa’s commitment to the Middle East and, with more than one million retail customers, NCBC represents Fidessa’s largest client in the region. Read more

Aabar plans to offer shareholders AED1.45 a share for Delisting from ADX

Aabar Investments PJSC  plans to offer shareholders 1.45 dirhams a share as part of its plan to delist shares from the Abu Dhabi Securities Exchange.

The offer is valid from July 12 to Aug. 1, according to a company statement to the Abu Dhabi bourse today. Aabar asked the market regulator to delay an extra-ordinary shareholders meeting to Aug. 8 from July 26 to approve the share delisting and converting it into a private joint-stock company.

Aabar Investments initiates a process to turn the company private

Aabar Investments board of directors signed off on the plan to turn the company private at a meeting on Thursday. In  another meeting, planned for July 26, the board will discuss with shareholder the delisting from the Abu Dhabi Stock Exchange (ADX). Aabar, a government-owned company, has been listed on the ADX since 2005. Read more

UAE “lost around 19% of its High Net Worth Individuals” population in 2009

While the number of dollar millionaires around the world climbed by 17% last year and the number in the Middle East grew by some 7%, the UAE lost around 19% of its HNWI population, according to the 14th annual Merrill Lynch/Capgemini World Wealth Report. The decline was “mainly due to the credit crisis in Dubai and the significant fall (-48%) in real estate prices” there, the report said.

The World Wealth Report is closely watched by the global luxury goods and services industries, as well as by wealth managers and financial advisers who help the high net worths to become and to stay rich.

For the purposes of this report, HNW individuals are those with investable assets of $1million or more, excluding their primary residence, collectibles, consumables and consumer durables. The definition for ultra high net worths is similar except that they have investable assets total $30m or more. Read more

Shaken Consumer Confidence alters Investor Behavior according to the 2010 World Wealth Report

• Merrill Lynch Global Wealth Management and Capgemini release 14th annual World Wealth Report

In spite of stock market rebounds and emerging signs of recovery in various economic indicators, wealthy investors have not rushed to chase performance or seize risky market opportunities, according to the 14th annual World Wealth Report, released today by Merrill Lynch Global Wealth Management and Capgemini. High net worth individuals (HNWIs)¹ have remained cautious and point to effective risk management (90 percent), transparency and simplicity (93 percent), and specialized advice (93 percent) from firms and advisors as top priorities in the current environment. HNWIs are especially keen as they work more actively with their advisors to properly understand the nature and potential performance of specific investments, manage their downside risk, and receive advice that is aligned with realistic and appropriate goal-setting, based on their actual risk profile. Read more

Aabar Investments PJSC may consider delisting from ADX

According a statement on the ADX website, cited by Reuters,  Abu Dhabi-based Aabar Investments  will meet on June 24 to discuss a date for an extraordinary general meeting as it considers converting to a private joint stock company and de-listing from Abu Dhabi Securities Market. Read more

Dubai World seeking to sell Inchcape Shipping Services

Dubai World has been seeking to sell Inchcape Shipping Services (ISS). The port and shipping agent was put up for sale recently by Dubai World, with an $800m price tag. ISS is part of a sell-off of the assets it snapped up during the  real estate boom period, as the conglomerate seeks to restructure its $23.5bn debts. Inchcape is one of the few successful investments in Dubai World’s Istithmar investment portfolio , which includes the QE2 ocean liner and the Canadian Cirque du Soleil. Istithmar bought ISS for $285m at the start of its buying spree between 2006 and 2008. Read more

BofA Merrill Lynch Fund Manager Survey Finds Investor Confidence Eroded But Fears Over Euro Have Peaked

Record Move Out of Energy Stocks in Wake of Gulf Spill

Investors’ belief in global economic growth and the ability of corporations to improve profits has significantly eroded, according to the BofA Merrill Lynch Survey of Fund Managers for June.

The survey, conducted as global equities fell by 7.5 percent, shows only a net 24 percent of respondents believing the world economy will strengthen in the next 12 months, down from 42 percent in May and 61 percent in April. Global investors have expressed similar concerns over corporate profits. A net 28 percent of the panel believes that profits will improve in the coming 12 months, compared with 47 percent in May and 67 percent two months ago. The proportion of the panel expecting corporate operating margins to improve in the coming year has halved in the past two months to a net 19 percent. Read more

Next Page »