Latest news with #ArqaamCapital
Zawya
6 days ago
- Business
- Zawya
Mideast Stocks: Most Gulf bourses end higher despite US strikes on Iran
Most stock markets in the Gulf recovered from early losses to end higher on Sunday, despite U.S. strikes on Iranian nuclear sites and investors' eye on the conflict's economic impact. U.S. forces struck Iran's three main nuclear sites late on Saturday, and President Donald Trump warned Tehran it would face more devastating attacks if it does not agree to peace. In Qatar, the index concluded 0.2% higher, helped by a 2.6% rise in telecoms firm Ooredoo and a 1.2% increase in Qatar Gas Transport. "It is admittedly a bit surprising to see regional equities shrugging off the U.S. strikes on Iran with relative ease, with opening losses having pared relatively rapidly," said Michael Brown, Senior Research Strategist at Pepperstone. Brown said that the markets had already discounted the probability of a U.S. attack, and investors anticipated a swifter resolution to the conflict following the attacks. The Gulf market is focused on whether the conflict spreads to other nations in the region, with there being no sign of that happening right now, he added. Bahrain and Kuwait, home to U.S. bases, made preparations on Sunday for the possibility of the conflict spreading to their territory, with Bahrain urging drivers to avoid main roads and Kuwait establishing shelters in a ministries complex. Kuwait's premier index reversed early losses to finish 0.4% higher, while Bahrain's main index added 0.3%. The Omani share index was up 0.4%. Jaap Meijer, head of research at Arqaam Capital, said he expected limited downside potential, as investors will likely capitalize on dips, especially in stocks that have been undervalued or stand to gain from rising oil prices. Gulf economies remain insulated, supported by stable oil flows, robust sovereign wealth funds and diversification efforts, making their equities appealing for income investors, added Meijer. Saudi Arabia's benchmark index, however, gave up early gains to close 0.3% lower, hit by a 1.2% fall in Al Rajhi Bank. Recently listed Prince Alwaleed Bin Talal-backed airline Flynas tumbled more than 4%. Outside the Gulf, Egypt's blue-chip index advanced 2.7%, as almost all its constituents were in positive territory including Commercial International Bank, which was up 1.5%. According to Erkin Kamran - CEO of Traze - U.S. involvement might lead to a more contained conflict, as its military superiority could dictate the course of events, potentially minimizing collateral damage and prompting Iran to capitulate due to its weakened retaliatory capacity. SAUDI ARABIA fell 0.3% to 10,574 QATAR gained 0.2% to 10,280 EGYPT up 2.7% to 31,056 BAHRAIN added 0.3% to 1,880 OMAN was up 0.4% to 4,525 KUWAIT rose 0.4% to 8,651 (Reporting by Ateeq Shariff in Bengaluru; Editing by Andrew Cawthorne) Reuters
Zawya
10-06-2025
- Business
- Zawya
Arqaam Capital strengthens IB drive as deals surge in Saudi, UAE
Initially set up as a sales and trading brokerage, Arqaam Capital is now accelerating its ECM, DCM, and loan syndication efforts as deal flow rises in Saudi Arabia and the UAE. But the expansion isn't without challenges, including tight fees and stiff competition. Headquartered in Dubai's DIFC and with offices in UAE, Saudi, Egypt and Lebanon, the financial services firm secured licenses in Saudi that would enable them to advice on ECM mandates. Rawad Kassouf, Head of ECM Execution & Syndicate at Arqaam told Zawya that the firm is expanding the Saudi team and currently busy leveraging its team of 27 research analysts to maximise research capabilities as well as regional and international distribution for issuers. Arqaam was a joint book runner for Dubai Holding REIT. 'We're getting deals from the UAE, Saudi Arabia, and Oman, and we expect to advise on more ECM transactions by year end,' said Kassouf, who was a senior investment banker at ADCB before joining Arqaam to expand its ECM division in August last year. While Saudi Arabia and the UAE are at the center of capital markets activity, Kassouf said Oman's potential upgrade from frontier to emerging market status—possibly next year—could lead to increased FDI inflows and re-ratings that may boost valuations re-ratings. Saudi Arabia is set to maintain its leadership in ECM this year, driven primarily by industrial listings, with real estate following closely. 'The large families in the kingdom who have huge real estate arms are all considering to list. There is a scarcity of these kind of companies on Tadawul. When it comes to aftermarket performance of recent issuances bankers need to strike a healthy balance between issuer and investor expectations. We should be able to manage it in upcoming IPOs,' Kassouf said. 'We are going to see a busy Q3, Q4 in KSA and UAE. Most initiatives will be driven by government related entities, but we are seeing more and more privately owned companies considering listing.' DCM business roadmap Omar Musharraf, Managing Director of Debt solutions and DCM at Arqaam Capital joined the firm barely two months back. Previously, he was head of structured finance and DCM at Oman Investment Bank. 'At Arqaam, I've been mandated to establish and scale the debt platform, anchoring the flow business through DCM and Loan Syndications on one side, and higher-margin segments of Structured Finance and Private Credit on the other,' Musharraf said. The size of the GCC DCM passed $1 trillion outstanding (all currencies) at end-1Q25, up 10% year on year (yoy). Total DCM issuance in Q1 2025 grew by 11% over the quarter to $89 billion but was down 3% yoy. Saudi Arabia has the largest share of DCM outstanding (45.1%), followed by the UAE (29.9%) and Qatar (13%). The regional debt capital markets remained active even as global markets stumbled amid concerns over Trump's tariff announcements. 'Issuances have become noticeably more sophisticated. Issuers are now exploring various options and tightening pricing as well. All attention is focused on the Middle East,' he noted. 'Competition is intense, fees are compressed, and value creation now hinges on structuring complexity and execution.' Musharraf is currently focused on building up a team and will add fixed income analysts to the research team. 'By year-end, we should have a comprehensive debt solutions strategy in place. A key part of that is expanding our research coverage – currently equity-focused – to include fixed income analysts,' he added. In the meantime, Arqaam is doing everything possible for more visibility. 'We supported the Sobha transaction and are currently working on several additional deals, across corporates, financial institutions, and international sovereigns, while also evaluating a pipeline of private credit opportunities. It's a busy time,' Musharraf said. While the DCM business will start at a modest scale or benchmark size, it is targeting high-quality credit, either government-linked or private sector issuers that naturally align with the country's priorities, such as oil and gas. It is also training its sights on tapping into the broader sukuk market and AT1 issuances in Saudi Arabia and the UAE. 'Sukuk markets remain strong on both the demand and supply side. The traditional barriers such as complexity, cost, and timing have narrowed materially, making sukuk a far more competitive option. That said, AAOIFI's new Standard 62 could introduce fresh complications. We're watching that closely,' he said. There is approximately $35 billion in debt refinancing expected across the GCC region during 2025–2026. This refinancing is driven by maturing sovereign and corporate debt, as well as ongoing economic diversification efforts and infrastructure financing. 'Debt refinancing alone will keep us active, with a significant volume of sovereign, corporate and FI maturities on the horizon. Add to those new issuances from both regional and emerging global players, and there's a considerable amount of market activity ahead and no shortage of market action,' he added.
Zawya
28-05-2025
- Business
- Zawya
Sharjah Islamic Bank launches $500mln perpetual non-call 6-year AT1 sukuk
Sharjah Islamic Bank (SIB) has tightened the price of its $500 million benchmark perpetual non-call 6-year AT1 sukuk offering, with the yield set at 6.125% from an IPT of 6.500% announced earlier in the day. Books were over $1 billion, excluding JLM interest. SIB, which is Sharjah's largest bank by total assets, is rated A- by S&P (negative outlook) and BBB+ by Fitch (stable outlook). The lender said the Mudaraba offering will be a part of SIB's $500 million Additional Tier 1 Capital Certificates programme. Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq and Standard Chartered Bank have been appointed as Joint Lead Managers and Joint Bookrunners for the Reg S fixed rate resettable unrated offering. The issue date for the offering is June 4, 2025 and it will trade on Euronext Dublin and Nasdaq Dubai. (Writing by Bindu Rai, editing by Seban Scaria)
Zawya
28-05-2025
- Business
- Zawya
IPTs out for Sharjah Islamic Bank's USD perpetual non-call 6-year AT1 sukuk
Sharjah Islamic Bank (SIB), rated A- by S&P (negative outlook) and BBB+ by Fitch (stable outlook), has revealed IPTs in the 6.500% area for its USD benchmark perpetual non-call 6-year AT1 sukuk offering. The final pricing will be announced today. Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq and Standard Chartered Bank have been appointed as Joint Lead Managers and Joint Bookrunners for the Reg S fixed rate resettable unrated offering. As Sharjah's largest bank by total assets, the Mudaraba offering will be a part of SIB's $500 million Additional Tier 1 Capital Certificates programme. The issue date for the offering is June 4, 2025. The sukuk will trade on Euronext Dublin and Nasdaq Dubai. The ADX-listed SIB said the net proceeds of the issue will be used to enhance its tier 1 capital as well as for general corporate purposes. (Writing by Bindu Rai, editing by Daniel Luiz)
Zawya
26-05-2025
- Business
- Zawya
Sharjah Islamic Bank mandates banks for USD Perpetual AT1 sukuk
Sharjah Islamic Bank (SIB), rated A- by S&P (negative outlook) and BBB+ by Fitch (stable outlook), has mandated banks for a USD benchmark perpetual non-call 6-year AT1 sukuk offering. Arqaam Capital, Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, Kamco Invest, Mashreq and Standard Chartered Bank have been appointed as Joint Lead Managers and Joint Bookrunners for the Reg S fixed rate resettable unrated offering. As Sharjah's largest bank by total assets, the sukuk offering will be a part of SIB's $500 million Additional Tier 1 Capital Certificates programme. The sukuk will trade on Euronext Dublin and Nasdaq Dubai. The ADX-listed SIB said the net proceeds of the issue will be used to enhance its tier 1 capital as well as for general corporate purposes. This is SIB's second sukuk offering of the year, with the lender pricing $500 million senior unsecured sukuk on 19 February 2025, at a yield of 5.20%, translating into a spread of 89.8bps over 5-year US Treasuries. (Writing by Bindu Rai, editing by Brinda Darasha)
