The Arab Petroleum Investments Corporation (Apicorp) expects the Middle East and North Africa (Mena) region to open up to new investment opportunities as countries in the region push through reforms in an effort to prepare their economies for a post-oil world.
“The Saudi Aramco [IPO] and Vision 2030 have really created a lot of opportunities, and not just limited to Saudi Arabia,” said Bennie Burger, the head of corporate strategy and investments at Apicorp.
“Investors and banks are having another look at how things have been done and how privatised companies can do things in different ways,” he said.
Goldman Sachs is one of the many financial services players that have flocked to Saudi Arabia in search of business related to the Aramco IPO – which has so far been only vaguely sketched out by the government – as well as other mandates that might emanate from the reforms that are integral to the kingdom’s Vision 2030 programme.
On Sunday, Apicorp announced a partnership with Goldman Sachs whereby the bank’s New York energy private equity team will advise Apicorp and other investors on energy co-investments, mainly outside the Mena region, Mr Burger said.
Apicorp was founded in 1975 by the 10 member countries of Organization of Arab Petroleum Exporting Countries with a mandate to make commercial investments that will also bring strategic benefit to its members.
The bank had assets of US$5.65 billion at the end of 2015. It had invested exclusively within Mena until last spring, when it bought the UK-based Ashtead Technology, which specialises in sub-sea technology and services for energy companies, for an undisclosed amount in a co-investment with Buckthorn Partners, a private equity firm run by former Weatherford and BP executive Nicholas Gee.
Mr Burger said Apicorp set a new strategy four years ago with objectives that included investing outside Mena, the transfer of technology to the energy sector in its member countries, as well as acquiring private equity skills through partnerships and co-investments such as the Goldman tie-up and the Buckthorn co-investment.
The amount that will be invested via the Goldman deal – which will include other as yet unnamed investors – was not disclosed, but Mr Burger said it was likely to be below $1bn in total.
Goldman Sachs is one of the many banks rumoured to have been asked to pitch the Saudi government for a role in the prospective Aramco IPO since last year’s announcement by the Saudi Deputy Crown Prince Mohammed bin Salman galvanised interest.
In the past month, two “boutique” New York investment banks – Moelis & Co and Evercore – were widely reported to have been given advisory roles for the Aramco IPO, although no party has officially confirmed that.
Other unsourced reports have said the banks asked to pitch for a role in the IPO include Goldman, HSBC, Credit Suisse, Morgan Stanley, Citigroup and JP Morgan Chase.
Banking in the region has generally been contracting as lending has been squeezed by the oil price slump. But the investment advisory side of the business has been increasing amid the government reforms, with Evercore the latest reported to be setting up a regional headquarters in Dubai.
On Sunday, Bloomberg reported that Goldman Sachs had begun the process to get a licence to deal directly in Saudi Arabian equities, as a qualified foreign investor (QFI). Goldman was also one of the banks that arranged the Saudi government’s record-breaking $17.5bn international bond issue.
Citibank and Credit Suisee also are among those rumoured to have applied for a QFI licence, while the latter said last month it has committed $600 million to expand investments in the kingdom.
amcauley@thenational.ae
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UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
The specs: 2017 Dodge Viper SRT
Price, base / as tested Dh460,000
Engine 8.4L V10
Transmission Six-speed manual
Power 645hp @ 6,200rpm
Torque 813Nm @ 5,000rpm
Fuel economy, combined 16.8L / 100km
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UAE currency: the story behind the money in your pockets
Points about the fast fashion industry Celine Hajjar wants everyone to know
- Fast fashion is responsible for up to 10 per cent of global carbon emissions
- Fast fashion is responsible for 24 per cent of the world's insecticides
- Synthetic fibres that make up the average garment can take hundreds of years to biodegrade
- Fast fashion labour workers make 80 per cent less than the required salary to live
- 27 million fast fashion workers worldwide suffer from work-related illnesses and diseases
- Hundreds of thousands of fast fashion labourers work without rights or protection and 80 per cent of them are women
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Fixtures
Opening day Premier League fixtures for August 9-11
August 9
Liverpool v Norwich 11pm
August 10
West Ham v Man City 3.30pm
Bournemouth v Sheffield Utd 6pm
Burnley v Southampton 6pm
C Palace v Everton 6pm
Leicester v Wolves 6pm
Watford v Brighton 6pm
Tottenham v Aston Villa 8.30pm
August 11
Newcastle v Arsenal 5pm
Man United v Chelsea 7.30pm
Brief scores:
Barcelona 3
Pique 38', Messi 51 (pen), Suarez 82'
Rayo Vallecano 1
De Tomas Gomez 24'
More coverage from the Future Forum
MATCH INFO
CAF Champions League semi-finals first-leg fixtures
Tuesday:
Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)
Second legs:
October 23
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
The Melbourne Mercer Global Pension Index
The Melbourne Mercer Global Pension Index
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
The stats
Ship name: MSC Bellissima
Ship class: Meraviglia Class
Delivery date: February 27, 2019
Gross tonnage: 171,598 GT
Passenger capacity: 5,686
Crew members: 1,536
Number of cabins: 2,217
Length: 315.3 metres
Maximum speed: 22.7 knots (42kph)
Roll of honour: Who won what in 2018/19?
West Asia Premiership: Winners – Bahrain; Runners-up – Dubai Exiles
UAE Premiership: Winners – Abu Dhabi Harlequins; Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens: Winners – Dubai Hurricanes; Runners-up – Abu Dhabi Harlequins
UAE Conference: Winners – Dubai Tigers; Runners-up – Al Ain Amblers
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Killing of Qassem Suleimani