UAE’s e& takes $400m majority stake in ride-hailer Careem’s Super App

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Emirates Telecommunications Group Co. has agreed to take a 50.3 percent stake in a super app managed by Careem, Uber Technologies’ Middle East subsidiary, in a transaction valued at $400 million, e& said in a filing on Monday.

The Super App will be managed by Careem founders Mudassir Sheikha and Magnus Olsson, said the company, formerly known as Etisalat Group and now called e&.

The ride-hailing business will be separated from the Careem Super App business and will be fully owned by Uber, but will still be available on the Super App.

The deal will be financed from e&’s existing cash balance, and subject to regulatory approvals, customary closing conditions and administrative procedures, e& said in the filing.

Reuters reported last month that talks with e& were at an advanced stage and a deal could be announced soon.

Careem began seeking outside investors last year to help finance its Super App, which offers services outside its core ride-hailing business such as food delivery, bike rentals, digital payments and courier services.

Etisalat rebranded to e& in June last year as the majority state-owned telco company embarked on a new strategy to position itself as a global technology and investment conglomerate.

E& said the transaction fits into its own ambitions to scale up consumer digital offerings and would allow the company to take advantage of the app to boost the growth of its consumer digital services.

Uber and Careem’s co-founders Sheikha, Olsson and Abdullah Elyas have the remaining stakes in the super app, a Careem spokesperson said.

Source:https://www.arabnews.com/node/2284326/business-economy

What is Lebanon’s Mecattaf case and why is Riad Salameh set to be quizzed?

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Another judicial case involving embattled Central Bank Governor Riad Salameh has recently caught public attention in Lebanon. The Mecattaf money transfer company investigation involves allegations of money laundering, corruption and influence peddling.

In the latest development, Mount Lebanon First investigating judge Nicolas Mansour has set hearings on April 3 for Mr Salameh and several others, the judge confirmed on Monday to The National.

The President of the Banking Control Commission, Maya Dabbagh; staff of Mecattaf; chief executive of the Lebanese bank SGBL, Antoun Sehnaoui; and employees of PricewaterhouseCoopers (PwC) which is Mecataff’s audit company, will also face hearings.

The case, marked by the death of Mecattaf’s chief executive from a heart attack in the midst of the proceedings, has made the headlines several times following a slew of dramatic turns of events amid strong political and judicial pressure.

SGBL, Mr Salameh and Mecattaf Group have denied any wrongdoing.

But little has been written on the actual facts.

Here is what we know so far.

How did the case start?
The case started with a lawsuit filed in September 2020 from Mouttahidoun, an association of lawyers seeking to fight corruption, against Riad Salameh, SGBL and its chief executive Antoun Sehnaoui, and four of Lebanon’s main exchangers including Mecattaf, for “money laundering crimes resulting from currency trading operations with the intent of exposure to the national currency”.

“The case kicked off with a violation of the cabinet decision to back the Lebanese pound”, said Mouttahidoun founder Rami Ollaik.

A year into the steep economic crisis, which has plunged more than 80 per cent of the Lebanese population into poverty since 2019, the central bank started to sell dollars at a preferential exchange rate, which was supposed to benefit importers and the general public, in a bid to support the national currency.

Yet, the measure had at the time little effect and failed to stop the collapse of Lebanon’s national currency, which has now lost 98 per cent of its value against the dollar.

“The Lebanese pound kept plummeting: despite the massive dollars injection in the market, there were no tangible effects, so we wondered, where did the money go?” Mr Ollaik said.

He said that after further investigation, his collective found that BDL’s dollars injections were not “benefitting the general public” but that the money was diverted in collusion with the central bank “in the hand of connected money exchangers and big banks, including SGBL”.

He said the money was then “transferred abroad via Mecattaf”, while Lebanese depositors were locked out of their savings as banks imposed drastic restrictions on transfers and withdrawals at the start of the crisis.

What are the charges?
The file was then referred to Mount Lebanon prosecutor Ghada Aoun, who investigated the case for months and ordered an audit of the company’s records.

According to the investigation’s findings, the bank SGBL allegedly transferred via Mecattaf $1.017 billion in 2019 and 2020, and its CEO $17 million “with the facilitation of (…) the Governor of the Banque du Liban, Riad Salameh”, “exploiting the information that the national currency would drop,” Ms Aoun wrote in an order seen by The National.

Riad Salameh “colluded with SGBL and the company Mecattaf to commit illicit acts as they intentionally harmed the national currency and economy,” the order sheet said.

Her investigation also uncovered alleged financial wrongdoing beyond the initial scope. From 2015 to 2019, experts could not identify the source of $4.3 billion transferred abroad by Mecattaf, over a total of $13.3 billion.

“The judiciary started its investigation with our lawsuit based on suspicions of financial wrongdoing at the beginning of the economic crisis, but ended up unveiling larger financial crimes,” said Mr Ollaik.

Ms Aoun charged Mr Salameh with money laundering as well as corruption and abuse of power; Mecattaf, SGBL and Antoun Sehnaoui, with money laundering; President of the BCC Maya Dabbagh with breach of professional duty; and PwC with false statements and concealing information.

“I send my investigation to Judge Mansour, who is now in charge”, confirmed Ms Aoun to The National.

Based on the questioning of the suspects, Mr Mansour can either close the case or decide to maintain charges, leading to the opening of a trial.

Why is the case sensitive?
The case turned into a tug of war between Ms Aoun and Lebanon’s top prosecutor Ghassan Oueidat, which was seen as another evidence of the high politicisation of Lebanon’s judiciary.

Ms Aoun is seen as an ally of former president and Free Patriotic Movement founder Michel Aoun, with some accusing her of serving his agenda.

She has, at least publicly, advocated for combating corruption within the financial world, and is leading several investigations into banks and charged Mr Salameh with illicit enrichment in another case in March 2022.

Mr Oueidat, on the other hand, is regarded as a being closely associated with the financial and political elites.

In April 2021, Mr Oueidat tried to remove her from the case, sparking outrage which led to clashes between supporters from both sides.

Despite the country’s highest judicial body reiterating that she abide by Ms Oueidat’s order, she dramatically forced her way into the Mecattaf’s offices in Beirut to collect evidence.

For Lebanese watchdog Legal Agenda, the political exploitation of the case, which is considered a “judicial uprising” for Ms Aoun’s supporters and a “mutiny” for her opponents, has obscured the actual facts, in an “effort by the ruling powers to suppress the case and avoid opening Pandora’s box”.

Source:https://www.thenationalnews.com/mena/lebanon/2023/03/07/riad-salameh-mecattaf-what-why/

Petrofac, Oman Hydrogen to collaborate to strengthen renewable energy sector

Petrofac, a leading provider of services to the global energy industry, has signed a Memorandum of Understanding (MOU) with Oman Hydrogen Centre (OHC) to collaborate in building capabilities for Oman’s renewable energy sector, the company announced on Wednesday.

The agreement aims to strengthen the sector, particularly in green hydrogen.

The partnership “will bring considerable benefits to the efficient implementation of green hydrogen projects and help accelerate the Sultanate’s energy transition,” the statement said.

Oman reveals plan to become global hydrogen player

Additionally, the collaboration will help in the development of Omani talent.

Petrofac recently completed front-end engineering design (FEED), for green hydrogen production facilities followed by studies for small-scale industrial globally.

The building company will provide technical expertise, design experience, project management and execution, and building capacity through knowledge transfer, the statement said.

“Green hydrogen provides an opportunity to help accelerate the energy transition in Oman through the decarbonisation of many parts of our industries,” Petrofac Oman’s country manager Dr Khalid Al Jahwari said.

Al Jahwari said the partnership with OHC “is designed to meet the needs of new complex energy assets,” adding it will focus on engineering excellence and a skilled workforce.

“With our combined knowledge, experience and capabilities, we are here to support this transition,” he said.

In June this year, the Sultanate’s Ministry of Energy and Minerals was in the process of appointing a think tank to promote Oman as a hub for production and export of green hydrogen.

Oman aims to be at the forefront of green hydrogen production, especially as key resources such as solar and wind energy and adequate lands will play a pivotal role in achieving this target.

The government also aims to attract foreign direct investments in the green hydrogen sector, as “there is a good demand for investments,” according to Ministry of Energy and Minerals’ director-general of renewable energy and hydrogen, Abdulaziz Said Al Shedhani.

“Remarkable efforts from governmental units, industries, and scientists take place towards accelerating the energy transition and green economy,” Oman Hydrogen Centre’s director Dr. Sausan Al Riyami said, adding “this will enable the building of our Omani talents in energy sector.”

Source:https://www.arabianbusiness.com/industries/energy/petrofac-oman-hydrogen-to-collaborate-to-strengthen-renewable-energy-sector

Threat of internet outages in Lebanon continue amid Ogero strike

Network failures across Lebanon still loom as employees of state-owned internet provider Ogero continue their strike after negotiations hit a dead-end.

The strike started on Tuesday, with Ogero employees demanding for higher salaries amid an economic meltdown.

A three-and-a-half-hour long meeting was conducted between the disgruntled workers and Lebanon’s communications minister Johnny Corm, but no resolution was met.

Business across Lebanon have reported internet and power outages on Friday, according to local reports. Network services were only intermittently available in Tripoli, with electricity generators operating for about 12 hours a day.

SOurce:https://www.arabianbusiness.com/industries/technology/threat-of-internet-outages-in-lebanon-continue-amid-ogero-strike

Bahrain’s Al Waha to invest $85mn in Israel-based digital health-focused fund

Bahrain-based Al Waha Fund of Funds announced on Monday its participation in LionBird III, an $85 million digital health-focused fund, floated by Tel Aviv-based venture capital LionBird.

Al Waha’s partnership with LionBird will also seek to aid Bahraini and GCC startups in navigating the complex US healthcare market and connecting with the right experts and partners, the company said in a statement.

LionBird is a US-focused digital health fund that specialises in seed-stage venture capital.

“We are pleased to be able to partner with LionBird in its latest fund and to help startups in the region access advice on digital health best practices, and support in penetrating the lucrative US healthcare market,” said Khalid Al Rumaihi, chief executive officer of Mumtalakat and vice chairman of Al Waha Fund.

Al Waha also said it was partnering with LionBird based on the latter’s track record of success helping startups access the burgeoning US healthcare market.

Jonathan Friedman, partner at LionBird, said the partnership with Al Waha Fund will give the venture capital access to innovation and networking opportunities in Bahrain, expanding its exposure in the MENA region.

“We believe we are well-positioned to support startups in Bahrain and the region as they plan their entry into the US market,” Friedman said.

The US currently spends around 17 percent of its GDP on healthcare, around twice as much than most other developed countries. Post-pandemic, the US healthcare market is undergoing significant shifts, which are opening new opportunities for startups.

There is a greater focus on health-tech startups as the sector pivots towards outpatient services and solutions such as telemedicine.

The digital startups in the US are estimated to have raised about $30 billion in 2021 across 729 deals, with investment in the market nearly doubling compared to 2020.

Al Rumaihi said Al Waha was committed to connecting the startup ecosystem in Bahrain and the Gulf with others around the world, providing a supportive environment for tech businesses to thrive.

“There are significant opportunities for the region’s startups in international markets, but the lack of access to capital remains a significant challenge for entrepreneurs,” Al Rumaihi, said.

The partnership between Al Waha Fund and LionBird could also lead to more Israeli companies choosing Bahrain as the location for their Middle East headquarters as they seek to leverage Al Waha Fund’s unique platform of value creation, Al Rumaihi added.

Al Waha Fund, launched in 2018 with a $100 million corpus with the aim of driving greater venture capital investment in the region, has deployed $80 million in 11 venture capital funds to date.

Source:https://www.arabianbusiness.com/startup/bahrains-al-waha-to-invest-85mn-in-israel-based-digital-health-focused-fund

New York to propel 22 renewable energy projects; EU set to boost LNG capacity

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New York is on track to advance with 22 green projects, in line with the state’s climate ambitions. In addition, EU countries will use money from the EU recovery fund to expand liquified natural gas capacity. Meanwhile, Moscow is seeing a jump in profits from energy exports in 2022, despite sanctions from the West.

Looking at the bigger picture:

· New York has unveiled a total of 22 renewable energy projects in line with the state’s target to achieve net-zero by 2040, Bloomberg reported, citing Gov. Kathy Hochul. The projects are expected to generate enough power to cater to 620,00 homes in the city for at least 20 years. In addition to this, the projects are also likely to create over 3,000 jobs and spur up to $2.7 billion in private investments.

· EU countries are set to utilize the money coming from the EU recovery fund to bolster liquified natural gas capacity, Reuters reported, citing EU Commissioner Paolo Gentiloni. Originally created to facilitate pots-pandemic economic growth, the EU recovery fund will help EU countries gain dependency from Russian gas imports.

· Qatar has exported less than 35 million tons of liquified natural gas in the period between January and May of 2022, down from 36 million tons in the corresponding period a year ago, Bloomberg reported, citing ship-tracking data compiled by Bloomberg. This is despite the major delivery requests from European countries keen on finding alternative sources to Russian fuels.

· Moscow is anticipating an increase in profits from the export of energy resources in 2022 despite Western sanctions on Russian oil, Reuters reported, citing Russian Foreign Minister Sergei Lavrov.

Source:https://www.arabnews.com/node/2096936/business-economy

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges

Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia, UAE, Qatar vie for stake in Egypt power plant, fuel distribution firm after investment pledges: report
Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy

UAE Egypt Investment
Gulf nations are interested in buying stakes in a fuel-distribution company owned by the Egyptian army, as well as a power plant co-built by Siemens AG, among their multi-billion-dollar investment pledges, according to Ayman Soliman, the CEO of the Sovereign Fund of Egypt (SFE).

“Several international investors, including Gulf sovereign wealth funds, have showed interest in Wataniya and the Siemens-built power plant,” Ayman Soliman told Bloomberg.

The sales are planned for 2022 through either an initial public offering, a partnership with a strategic investor, or a combination of both.

“I see that we should secure a strategic investor ahead of the IPO,” Soliman said. “The IPO could be achieved through a private placement to sovereign wealth funds.”

Saudi Arabia’s Public Investment Fund (PIF), the Qatar Investment Authority, and ADQ have all “expressed interest in supporting and accelerating Egypt’s IPO programme,” Soliman said.

Oil-rich Gulf countries are looking to bolster Egypt’s economy as the major food importer has been hit hard by record grain prices fueled by the Russia-Ukraine conflict, and is seeking help from the International Monetary Fund (IMF) to shore up its economy.

Saudi Arabia pledged $15 billion to support Egypt, making it the latest Gulf state after the UAE and Qatar to back an economy that’s under increasing pressure from Russia’s war in Ukraine.

Qatar is putting up $5 billion for deals in the most Arab populous nation, while Abu Dhabi wealth fund ADQ made a roughly $2 billion deal to buy Egyptian state-owned stakes in publicly-listed companies.

Egypt first announced plans to sell one of three power plants co-built by Siemens AG around three years ago, and multiple international investors expressed interest in the assets.

In 2020, it targeted selling a stake in Wataniya Petroleum as the first salvo in plans to offer as much as full ownership in up to 10 companies held by Egypt’s National Service Products Organization, which is affiliated with the Defense Ministry.

Ministers are due this week to discuss which state-owned companies will be offered on the Egyptian stock market in 2022, Planning Minister Hala Elsaid said March 31.

Source:https://www.arabianbusiness.com/industries/energy/saudi-arabia-qatar-uae-vie-for-stake-in-egypt-power-plant-fuel-distribution-firm-after-investment-pledges-report

Saudi finance minister calls Arab financial institutions to review strategies

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Those in charge of Arab financial institutions should review their work strategies and directions in light of the global changes and the region’s requirements by considering the priorities and needs of the citizens, Saudi Minister of Finance Mohammed Al-Jadaan said on Thursday.

Speaking at the inauguration of the annual joint meetings of the Arab financial institutions in Jeddah, Al-Jadaan said many Arab countries have begun to recover from the effects of the pandemic and return to growth paths.

Citing Arab Monetary Fund estimates, he added that the Arab economies are expected to see a growth rate rising in 2022 to about 5 percent, compared with 2.9 percent in 2021.

“The growth will be driven by the relative improvement in global demand levels, high growth rates in the oil and gas sectors, and the continued adoption of stimulus packages by Arab governments to support economic recovery,” he said.

The Kingdom has overcome the effects of the pandemic by supporting economic activity, which was estimated to be about 13.9 percent of GDP, Al-Jadaan said.

He noted that the achievements in information technology and digital transformation that the Kingdom started in 2016 within the Vision 2030 blueprint helped contain the pandemic and quickly return to normal life.

The minister said that Saudi Arabia has also presented qualitative initiatives of interest to the region and the world to face climate changes, most notably the Saudi Green, the Middle East Green Initiatives, and the circular carbon economy framework.

To reduce carbon emissions and support the stability of economic growth, Al-Jadaan called on Arab financial institutions to benefit from the environmental initiatives that the leaders approved during the 2020 G20 Riyadh Summit.

A Council of Arab Finance Ministers meeting was also held on the sidelines of the event to discuss financial and economic issues and coordinate Arab countries’ positions with international financial organizations, led by the World Bank and the International Monetary Fund.

Source:https://www.arabnews.com/node/2059376

CBO issues treasury bills worth OMR177mn

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The Central Bank of Oman (CBO) raised OMR177 million by way of allotting treasury bills on Wednesday.

The treasury bills are for a maturity period of 91 days, from February 23 until May 25, 2022.

The average accepted price reached OMR99.822 for every OMR100, and the minimum accepted price arrived at OMR99.820 per OMR100. The average discount rate and the average yield reached 0.71461 per cent and 0.71589 per cent, respectively.

Treasury bills are short-term highly secured financial instruments issued by the Ministry of Finance, and they provide licensed commercial banks the opportunity to invest their surplus funds. The Central Bank of Oman acts as the Issue Manager and provides the added advantage of ready liquidity through discounting and repurchase facilities (Repo).

The interest rate on the Repo operations with CBO is 0.5 per cent while the discount rate on the Treasury Bills Discounting Facility with CBO is 0.75 per cent.

Furthermore, treasury bills promote the local money market by creating a benchmark yield curve for short-term interest rates. Additionally, the government may also resort to this instrument whenever felt necessary for financing its recurrent expenditures.

Source:https://timesofoman.com/article/113641-cbo-issues-treasury-bills-worth-omr177mn

Mannai weighs Inetum sale in deal that may fetch over $2 billion

Mannai Corp. said its board approved the sale of French information technology services provider Inetum SA, paving the way for a disposal that could fetch upward of $2 billion.

Mannai didn’t identify the potential buyer or how much it expects to receive from the sale. The deal is subject to entering definitive transaction documentation and approvals, the company said in a statement on Wednesday.

Shares in the company rose 1.6 percent at 9:30 a.m. in Doha, valuing Mannai at $683 million. The stock has gained about 84 percent over the past year, outpacing a 16 percent increase in the benchmark index.

The Qatari trading company has been working with advisers to help gauge interest in Inetum, Bloomberg reported last year. The company could fetch about $2.4 billion and attract private equity firms as well as other technology companies, the people said at the time.

Inetum offers systems integration, technology consulting, application engineering, outsourcing and software development services and is a top player in several European markets. The Paris-based company has nearly 27,000 employees in 26 countries and generated 1.97 billion euros of revenue last year, according to its website.

Mannai acquired 51 percent of the company, known at the time as GFI Informatique, in 2016. It later bought out remaining shareholders and delisted the company from the Paris bourse.

Source:https://www.arabianbusiness.com/industries/technology/mannai-weighs-inetum-sale-in-deal-that-may-fetch-over-2-billion