Emirates NBD Asset Management is looking to increase the size of its Saudi Arabian Equity fund to $100 million (Dh367m) by the end of this year, raising $75m in fresh capital, as it ramps up exposure to the kingdom’s $450 billion stock market ahead of its anticipated inclusion in FTSE Russell and MSCI’s emerging markets gauges.
"We hope to raise funds and take it [the fund] to $100m within this year," Salman Bajwa, the head of the asset management arm of Dubai's biggest lender, Emirates NBD, told The National on Monday in Dubai.
The conversion of the fund, previously known as Mena Equities Fund, is complete and all the required regulatory approvals are in place for distribution. The investment vehicle has $15m in legacy funds and the money manager is contributing another $10m as seed capital, Mr Bajwa, who helps oversee $4.8bn in assets at Dubai International Financial Centre-based firm, explained.
Saudi Arabia, the region’s largest economy and Opec’s biggest oil producer, is vying to get a nod from global index providers, FTSE and MSCI this year to be included in their emerging market gauges. FTSE is expected to make its decision later this month.
The announcement by the MSCI, whose emerging market benchmark index is tracked by investors with $1.7 trillion in assets, is expected in June 2018 and implementation, if reclassified, will happen in 2019.
Regional and foreign investors are already betting that the kingdom will be reclassified as emerging market by both index providers. After a lacklustre showing last year, the Arab World’s biggest bourse known as Tadawul, is up more than 6 per cent this year - above the average gain of 4.2 per cent for stocks from developing economies.
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Read more:
Nomura bullish on long term Saudi equities investment prospects
EFG-Hermes upbeat on regional listings, plans Saudi expansion
JP Morgan bolstering Saudi Arabian business in anticipation of foreign flows
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Foreigners were net buyers of 5.5 billion riyals ($1.47bn) of shares for 11 straight weeks this year, Bloomberg cited bourse data as showing. Last week, they bought 1.36bn riyals in shares, more than in any other week since the news agency started compiling the data in October 2015. Financial institutions from Egypt’s EFG-Hermes to US-based JP Morgan Chase and Japanese money manager Nomura Asset Management, are all bullish on the Saudi market prospects.
A reclassification of Saudi equities by FTSE and by MSCI is expected to attract tens of billions of dollars in passive investments. Funds allocated to the kingdom’s market by active investors will be in addition to that.
At a "Emerging Markets: Fighting Fit" conference at DIFC on Tuesday Usman Ahmed, the head of investments at Emirates NBD Asset Management, said a nod from FTSE alone will result in $5bn to $6bn in passive money, while a favourable decision by MSCI could bring in $40bn by investors who track the indexes.
GCC markets missed a global equities rally last year because of rising geopolitical tensions, and subdued economic growth on the back of lower oil prices. Emerging markets stocks produced significant returns and the S&P 500 index in the US hit multiple records throughout 2017.
Tariq bin Hendi, the acting chief investment officer at Emirates NBD Group expects 2018 to be a better year for the regional equities, especially, Saudi Arabia, which plans to list about 5 per cent of Saudi Aramco, slated to be the biggest-ever share offering in the world.
“The Aramco play is secondary. I think Aramco helps to generate a lot of interest which is good. But ... this MSCI upgrade will be fantastic for the Saudi market,” Mr bin Hendi told The National. “It will reinvigorate what has been flat region markets. This should be a much better year.”
Company%20Profile
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Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
“There are a few shoes that have ‘grail’ status for me. But the one I have always wanted is the Nike x Patta x Parra Air Max 1 - Cherrywood. To get a pair in my size brand new is would cost me between Dh8,000 and Dh 10,000.” Jack Brett
“If I had all the money, I would approach Nike and ask them to do my own Air Force 1, that’s one of my dreams.” Yaseen Benchouche
“There’s nothing out there yet that I’d pay an insane amount for, but I’d love to create my own shoe with Tinker Hatfield and Jordan.” Joshua Cox
“I think I’d buy a defunct footwear brand; I’d like the challenge of reinterpreting a brand’s history and changing options.” Kris Balerite
“I’d stir up a creative collaboration with designers Martin Margiela of the mixed patchwork sneakers, and Yohji Yamamoto.” Hussain Moloobhoy
“If I had all the money in the world, I’d live somewhere where I’d never have to wear shoes again.” Raj Malhotra
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
Race card
6.30pm: Al Maktoum Challenge Round-3 Group 1 (PA) US$100,000 (Dirt) 2,000m
7.05pm: Meydan Classic Listed (TB) $175,000 (Turf) 1,600m
7.40pm: Handicap (TB) $135,000 (T) 2,000m
8.15pm: Handicap (TB) $135,000 (D) 1,600m
8.50pm: Nad Al Sheba Trophy Group 2 (TB) $300,000 (T) 2,810m
9.25pm: Curlin Stakes Listed (TB) $175,000 (D) 2,000m
10pm: Handicap (TB) $135,000 (T) 2,000m
10.35pm: Handicap (TB) $175,000 (T) 1,400m
The National selections
6.30pm: Shahm, 7.05pm: Well Of Wisdom, 7.40pm: Lucius Tiberius, 8.15pm: Captain Von Trapp, 8.50pm: Secret Advisor, 9.25pm: George Villiers, 10pm: American Graffiti, 10.35pm: On The Warpath
The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
Meydan race card
6.30pm: Maiden; Dh165,000; (Dirt) 1,200m
7.05pm: Handicap; Dh170,000; (D) 1,200m
7.40pm: Maiden; Dh165,000; (D) 1,900m
8.15pm: Handicap; Dh185,000; (D) 2,000m
8.50pm: Handicap; Dh185,000; (D) 1,600m
9.25pm: Handicap; Dh165,000; (D) 2,000m
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
The bio
Who inspires you?
I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist
How do you relax?
Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.
What is favourite book?
The Perks of Being a Wallflower - I think I've read it more than 7 times
What is your favourite Arabic film?
Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki
What is favourite English film?
Mamma Mia
Best piece of advice to someone looking for a career at Google?
If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.
The specs: 2017 Lotus Evora Sport 410
Price, base / as tested Dh395,000 / Dh420,000
Engine 3.5L V6
Transmission Six-speed manual
Power 410hp @ 7,000rpm
Torque 420Nm @ 3,500rpm
Fuel economy, combined 9.7L / 100km
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
Day 1, Abu Dhabi Test: At a glance
Moment of the day Dimuth Karunaratne had batted with plenty of pluck, and no little skill, in getting to within seven runs of a first-day century. Then, while he ran what he thought was a comfortable single to mid-on, his batting partner Dinesh Chandimal opted to stay at home. The opener was run out by the length of the pitch.
Stat of the day - 1 One six was hit on Day 1. The boundary was only breached 18 times in total over the course of the 90 overs. When it did arrive, the lone six was a thing of beauty, as Niroshan Dickwella effortlessly clipped Mohammed Amir over the square-leg boundary.
The verdict Three wickets down at lunch, on a featherbed wicket having won the toss, and Sri Lanka’s fragile confidence must have been waning. Then Karunaratne and Chandimal's alliance of precisely 100 gave them a foothold in the match. Dickwella’s free-spirited strokeplay meant the Sri Lankans were handily placed at 227 for four at the close.
UAE currency: the story behind the money in your pockets
Ferrari
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Book%20Details
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Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
