Focusing on the fundamentals

We believe the world has significantly changed since the last financial crisis, especially in this part of the world where people want a more direct say in the management and not blindly invest into businesses. They want to be in control of their money and their assets. Although the business is run by the management, as founders and board members of Regulus Capital, we provide the direction, strategic vision and manage the corporate governance of each of our entities….Learn More.

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Can we expect more GCC IPOs soon?

In the past couple of years, the GCC IPO market has been hit significantly by dwindling oil prices, an economic downturn and a number of unexpected geopolitical shocks. The apathy continues to linger in 2017, but with volatility relatively low compared to that of the previous year and with easing measures firmly in place, conditions are expectedly healthy for raising equity financing going forward….Learn More.

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GCC IPO Pipeline to Gain Momentum

In the past couple of years, the GCC IPO market has been hit significantly by dwindling oil prices, an economic downturn and a number of unexpected geopolitical shocks. The apathy continues to linger in 2017, but with volatility relatively low compared to that of the previous year and with easing measures firmly in place, conditions are expectedly healthy for raising equity financing going forward. However, the deteriorating IPO line-up remains the cornerstone concern for the region as GCC nations continue to focus on overhauling their economies, including cutting government spending, and privatization of state-owned enterprises to address immediate budget deficits. Privatizations may provide the catalyst, as regional governments are keen to resolve liquidity concerns which have impacted equity market activity, by boosting listings on their exchanges and thereby increasing investor confidence. Accordingly, favorable equity valuations, government-sponsored maiden offers for state-owned enterprises, and initiatives undertaken by regional governments will be the key to the GCC IPO market to get back on track over the medium term….Learn More.

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Current state of regional liquidity

The liquidity in the MENA region has always been closely associated with the movement in oil prices. Record oil prices until 2014 have allowed regional governments to build sizeable petrodollar surpluses, which have ensured adequate liquidity within the system. This period also helped the banking sector in strengthening their balance sheets by shoring up the funding base and improve their capital on the back of record earnings. Although the banking sector witnessed shock waves resulting from the 2009 financial crisis, which dried up liquidity across the globe, record oil prices during that period ensured that the government had enough ammunition to pump up liquidity within the system to weather the storm. However, the current situation is different from the global financial crisis, because lower oil prices are putting strain on government revenues, while spending continues to be aligned with the long-term vision of regional governments. Resultantly, the region is now facing a number of challenges in tackling burgeoning deficits, coupled with slowing economic activity which has started impacting key sectors. The banking sector remained resilient until 2015, but government decisions to draw down deposits and issue local denominated currency notes to fund deficits drained out liquidity from the system….Learn More.

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Regional markets ended the first week of April with positive performances – Al Masah Capital Weekly Report

Abu Dhabi and Dubai were the best performing markets in the region with an increase of 3.9% and 2.5% respectively.

Global markets ended the first week of April with a mixed performance, with US markets being down for the week. The Dow, S&P 500 and Nasdaq were down by 0.03%, 0.30% and 0.33% respectively.

European markets were mostly up for the week, with FTSE 100 and CAC 40 rising by 0.36% and 0.25% respectively over the week, while Stoxx 50 was down by 0.15% over the same period. On the other hand, and as expected oil’s reaction to the increased tension on the geopolitical scene was positive, crude oil ended the week at USD 55.24 per barrel while WTI reached USD 52.24 a barrel rising by 3.19% and 3.24% respectively over the week….Learn More.

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Regional markets witnesses’ positive performance in Kuwait, Bahrain and Egypt markets in Q1 – Al Masah Capital Weekly Report

Kuwait was the best performer among its peers for the Q1 with an increase of 22.3%, followed by Bahrain and Egypt each increasing by + 11.1% and + 5.3% respectively. Oman came as the worst performer among its peers in the quarter with a decrease of 4% followed by Saudi Arabia, Abu Dhabi, Dubai and Qatar each declining by -2.9%, -2.3%, -1.4% and -0.4% respectively….Learn More.

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Investor’s sentiment will remain cautious due to geopolitical and economic uncertainties – Al Masah Capital Weekly Report

Global markets witnessed a mixed performance last week on the back of rising political uncertainty, especially the elections in France and other European countries. US markets were mainly up with Dow Jones, S&P500 and Nasdaq all up by 0.46%, 0.85% and 1.65% respectively for the week, while European markets were mainly down as Stoxx 600, FTSE 100, DAX and CAC 40 decreased by 0.65%, 2.85%, 0.5% and 0.23% respectively over the same period….Learn More.

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