Bull Run on Dubai Real Estate Market takes Thursday’s Property Sale Deals to AED2.7 Billion…

UAE News:
Property deals in the Dubai real estate market hit another record high of AED2.7 billion on Thursday, reflecting the continuing bull run in the market.
The UAE steadfastly stands by the OPEC+’s unanimous production cuts decision, according to the Foreign Ministry, while rejecting statements pushing a political angle. The UAE Energy Minister separately stated that the nation is committed to increasing its oil production capacity.
Money supply (M2) in the UAE grew by 1.4% MoM to AED 1.63trn at end-August. Domestic credit inched down by 0.4% mom due to declines across government (0.9%), GREs (1.2%) and the private sector (0.2%). Government sector deposits rose by 7.1% MoM, driving the overall increase in resident deposits by 2.8%.
ADNOC is planning an IPO of its marine services and logistics unit, likely for next year, reported Reuters.
Bayanat, a geospatial data products and services provider owned by G42, plans to raise AED 628.5mn (USD 171mn) from a listing on the Abu Dhabi Securities Exchange. Private equity firm Silver Lake and Abu Dhabi-listed IHC are to become cornerstone investors.
The real estate firm JLL disclosed that average residential prices in Dubai grew by 9% YoY in Q3, while average rental rates saw a 25% YoY rise, thanks to stronger demand. Separately, Bloomberg reported that the emirate’s luxury property market is witnessing a boom, with about 70% of transactions cash-based.

MENA News:
Bahrain and Israel signed an agriculture cooperation deal with a focus on “innovation in aquaculture, as part of global efforts to address food security”.
According to central bank data, consumer spending in Kuwait increased by 28.5% YoY and 6.4% QoQ to KWD 10.54bn by end-June. Additionally, inflation inched up to 4.15%, driven by foodstuff and education.
Lebanon’s Finance Minister claimed that the burden of repaying depositors’ frozen funds should not fall only on the government. Till date, a bank restructuring plan outlining the recovery of such funds has not been finalised.
MPs in Lebanon passed a revised version of the banking secrecy law, which still doesn’t meet all of IMF’s criteria. This new draft allows additional government institutions to ask for general information on a body of transactions, but does not lift banking secrecy as a whole.
Lebanon’s Parliament failed to elect a President for the 4th time. The current President’s term ends on 31st October.
Qatar inaugurated its first solar power plant which has been operational since June and built at a cost of QAR 1.7bn. The aim is to provide up to 10% of the country’s energy supply.
Talks for a free trade agreement between GCC and India will begin in November, disclosed India’s senior Trade Ministry official, with an aim to have a deal in place by June 2023. It was also revealed that the country is in talks with the UAE about a INR-AED trade mechanism.
MENA equity and equity-related issuance surged to USD 15.3bn in January-September 2022, up by 166% YoY, according to Refinitiv. IPOs accounted for 86% of the activity: 29 offerings, the highest level since 2008, raising a combined USD 13.2bn (a first 9-month record). UAE was the most active in equity capital market activity, raising USD 9.56bn (more than half from DEWA IPO).
While a disagreement related to the OPEC+ production cut decision continues with the US, Saudi Arabia has been seen strengthening cooperation with the oil-consuming emerging Asian nations: Saudi energy minister has been in conversations with his Chinese and Indian counterparts as well as the Trade Minister of Japan to strengthen energy cooperation. India, South Korea, Indonesia and Japan are on the cards for the Crown Prince’s upcoming trip to the region.
The Capital Market Authority in Saudi Arabia approved 3 IPOs: the Saudi cable producer Riyadh Cables Group on the main exchange while real estate developer Al Ramz Real Estate Co and Nofoth Food Products Co will list on Nomu.
Net income of Saudi finance companies plunged by 67.7% QoQ to SAR 283mn (USD 75.2bn) in Q2 2022: this was the largest drop since the start of 2018.
The Real Estate Price Index in Saudi Arabia grew by 1.5% YoY in Q3 2022: residential real estate prices increased by 2.5% (largely due to a 2.6% rise in land plot prices) amid declines in commercial and agricultural real estate prices.

Global News:
US equity markets posted the largest weekly gains since June on news that the Fed might move to opt for a less aggressive stance to counter inflation. European markets gained on the week, in spite of slipping after high inflation readings, expectations of central bank moves and recession concerns. Regional markets were mixed during the week on volatile oil movements and expectations of weaker demand from a potential recession: Saudi and Abu Dhabi markets ended the week with gains of 4.7% and 3.5% respectively. The yen touched the lowest level since 1990 (on 20th October, crossing the 150-mark against the dollar in intra-day trading) before the greenback tumbled vs the yen on Friday (a possible intervention from the BoJ). Brent oil price ended the week stronger (+2% from the week before) on hopes of a resurgence in Chinese demand, while gold price edged up by 0.9%.

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SOURCE:
Nasser Saidi & Associates
Arabian Business
Bloomberg