trending Market Intelligence /marketintelligence/en/news-insights/trending/zYEoJtb86sMibcsSJKw0QQ2 content esgSubNav
In This List

MENA news through Oct. 2

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


MENA news through Oct. 2

* Banks with enough scale could "run a very good business" in the Middle East by operating across different segments, Sjoerd Leenart, JPMorgan Chase & Co.'s global head of corporate banking, told Bloomberg TV. Meanwhile, Citigroup Inc. said the trade war between China and the U.S. could prompt Chinese firms to speed up investments into the Middle East and Africa, a move that could significantly benefit Gulf Cooperation Council countries, Bloomberg News reported.

* Turbulence faced by reinsurers in the Middle East and North Africa in recent years has created challenges for some and opportunities for others, A.M. Best said, adding that companies are looking to diversify revenue streams and alter their portfolios in favor of new or less volatile segments.

* Saudi Arabian Oil Co. invited the Abu Dhabi Investment Authority, Mubadala Investment Co. and other sovereign wealth funds in the Gulf and Asia to invest in the domestic leg of its IPO in a bid to reach a $2 trillion valuation, insiders told Reuters. Bahrain Mumtalakat Holding Co. is reportedly expected to consider investing in the oil firm's listing.

GULF COOPERATION COUNCIL

* Fitch Ratings downgraded Saudi Arabia's long-term foreign currency issuer default rating to A from A+, with a stable outlook, citing rising geopolitical tensions in the Gulf region following recent drone attacks on the country's oil infrastructure. In response, Saudi Arabia's finance ministry said it asked Fitch to reconsider the rating action, saying the downgrade did not reflect its efforts to maintain global oil supplies, Reuters wrote.

* Saudi Arabia-based Walaa Cooperative Insurance Co. signed a binding merger agreement to acquire MetLife AIG ANB Cooperative Insurance Co. The potential transaction will be done through an exchange of shares equivalent to 0.66 share in Walaa Cooperative for every share in MetLife AIG ANB.

* Saudi British Bank completed the sale of a 2% stake in HSBC Saudi Arabia Ltd. to HSBC Asia Holdings BV for 36 million riyals. Following the transaction, HSBC Asia Holdings now holds 51% of HSBC Saudi Arabia, making it the new majority shareholder, while Saudi British Bank retains a 49% stake.

* Kuwait's Capital Markets Authority launched the public offering of its 50% stake in Boursa Kuwait Securities Co. KPSC, with the offering price set at 100 fils per share. Separately, the regulator approved the merger between The Securities House KSCP and Al Aman Investment Co. KPSC.

* Standard Chartered PLC's United Arab Emirates-based unit reduced the headcount in its retail division by more than 100 in September, sources told Reuters. StanChart did not confirm the staff layoffs but told the newswire that it is reviewing its businesses and "accelerating [its] shift toward digital and consumer preference."

* UAE's National General Insurance Co. PJSC said its board will meet Oct. 6 to discuss increasing said on its shares to 49% from 25%.

* Moody's expects Emirates NBD Bank PJSC's new digital bank for entrepreneurs and small businesses, E20., to support the lender's future profit, Thomson Reuters' Zawya reported.

* Qatar National Bank QPSC received regulatory approvals from the Hong Kong Monetary Authority to open a branch in Hong Kong.

* Qatar First Bank LLC CEO Ali Mohammed al-Obaidli has resigned. He took over the post in March.

* Moody's said the outlook for Oman's banking system remains negative, citing banks' weakening asset quality and tight access to funding, as well as the government's declining capacity to support lenders.

REST OF MIDDLE EAST

* Moody's placed Lebanon's Caa1 issuer rating under review for downgrade, citing a significant tightening in external financing conditions for the country due to domestic and geopolitical risks, including renewed tensions with Israel.

* Iranian Deputy Minister of Economy Abbas Memarnejad said local lenders will offload surplus assets worth 600 trillion rials by the end of the fiscal year on March 2020, Financial Tribune wrote.

* Parsian Bank CEO Kourosh Parvizian said the Iranian lender plans to open a further five branches in Iraq, Financial Tribune reported.

NORTH AFRICA

* The board of Egyptian financial services group Pioneers Holding Co. approved a plan to split the company into three separate firms focused on financial services, real estate and the industrial sector, with the split to be carried out the group completes mandatory bids to boost its stake in five units to 90%, Reuters reported. CEO Walid Zaki said the group is looking to complete the process by 2019-end.

* The Central Bank of Egypt reduced its key interest rates for a second consecutive month. Moody's said the decision is credit positive for banks, adding that it expects additional cuts in 2020, Amwal Al Ghad reported. Separately, the central bank authorized 28 banks to begin providing mobile payment services, according to Financial Afrik.

* Shareholders of Egypt-based Delta Insurance Co. approved a plan to increase the company's authorized capital to 500 million pounds, insiders told Amwal Al Ghad.

* Nabil El Madani was appointed head of Tunisia-based Banque Zitouna SA, replacing Ezzedine Khoja, according to Il Boursa. El Madani was previously head of the bank's commercial division.

Pádraig Belton and Henni Abdelghani contributed to this report.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.