State-owned Trade Bank of Iraq, which has about $20 billion (Dh73.46bn) in assets and focuses on trade finance, is looking to acquire a lender in Turkey, the country's biggest trade partner, after abandoning a previous attempt, said its chairman.
The Iraqi lender is keen on a conventional bank rather than a Sharia-compliant bank that it sought in a previous try, Faisal Al Haimus said. Trade Bank of Iraq began talks earlier this month with the Turkish lender, he said, declining to give a name.
"We had plans to look into acquiring a bank in Turkey [which] we put on hold for a while because of the instability of the Turkish lira," said Mr Al Haimus. "But now we are reconsidering that because of the improvement in the Turkish lira and its stability. The bank we are looking at now is a conventional bank, and I think it is within the same area of expertise we currently have."
Trade Bank of Iraq is reconsidering entry into Turkey, which has bilateral trade worth $8bn with Iraq, following an unsuccessful bid to acquire a bank in the Arabian Gulf. The lira dropped nearly 50 per cent against the US dollar in August amid tensions with Washington over the capture of an American pastor, but relations improved following his release.
The currency has since rebounded but remains about 30 per cent down year to date.
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Read more:
[ Iraq's GDP to grow 4.1% in 2019 thanks to oil prices, Moody's says ]
[ GE and two banks ink financing for Iraq's power sector ]
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Iraq's $200bn economy is benefiting from a recovery in oil prices this year compared to 2017 and a rise in investment, as Opec’s second largest producer ramped up production. The country’s gross domestic product is forecast to grow further in 2019 to a three-year high due to stronger oil prices, Moody’s Investors Service said last week. The economy will expand 4.1 per cent next year from 2.8 this year, the highest level since output reached 13.1 per cent in 2016.
The Trade Bank of Iraq made its first acquisition in its home country this year through the subscription of an Islamic lender's initial public offering. Its 20 per cent stake in the bank is valued at $20 million, Mr Al Haimus said.
The Islamic lender, which is expected to start operations in the first quarter of next year, will help the Trade Bank of Iraq expand into Sharia-compliant banking and improve its profitability.
Buying a Turkish bank would be the Trade Bank of Iraq’s first overseas acquisition, which will be financed from $350m the lender earmarked for buying assets.
An acquisition will help “diversification into other markets that we think are a good fit for us because rather than going and setting up, there is an existing set-up we can benefit from,” said Mr Al Haimus.
Over the past decade, lenders from the GCC have also made acquisitions in Turkey, which prior to its political clash with Washington, plummeting currency and rising interest rates had stellar economic growth.
The Trade Bank of Iraq is also expanding its footprint in the Gulf with a representative office in Abu Dhabi it set up last year, which it plans to upgrade to a full-fledged operation. The lender wants to open a branch in Saudi Arabia in the first quarter of next year after getting the go-ahead from regulators at home and in the kingdom.
It is banking on increased trade with Saudi Arabia, the Arab world's largest economy, to buoy its business. Bilateral trade between Iraq and Saudi Arabia averages $1 billion, and the bank hopes it will double in the next two years, said Mr Al Haimus.
Ties between Iraq and Saudi Arabia have improved since the 2015 re-opening of the Saudi embassy in Baghdad and the resumption of regular flights between the countries. Riyadh pledged $1.5bn in assistance to Iraq during a February reconstruction conference that raised about $30bn.
Trade finance contributes to at least 75 per cent of the bank’s revenue, with retail banking accounting for the reminder of the lender's income. The bank expects a record revenue of 1 trillion Iraqi dinars (Dh3bn) at the end of this year and is forecasting as much as 7 per cent revenue growth next year, thanks to higher spending by the government on the back of higher oil prices.
“We think there will be significant investment by the government in terms of capital expenditure on various projects in addition obviously to the investments committed by various countries that attended the Iraq reconstruction conference,” Mr Al Haimus said.
Herc's Adventures
Developer: Big Ape Productions
Publisher: LucasArts
Console: PlayStation 1 & 5, Sega Saturn
Rating: 4/5
Copa del Rey
Barcelona v Real Madrid
Semi-final, first leg
Wednesday (midnight UAE)
If you go
The flights
Emirates and Etihad fly direct to Nairobi, with fares starting from Dh1,695. The resort can be reached from Nairobi via a 35-minute flight from Wilson Airport or Jomo Kenyatta International Airport, or by road, which takes at least three hours.
The rooms
Rooms at Fairmont Mount Kenya range from Dh1,870 per night for a deluxe room to Dh11,000 per night for the William Holden Cottage.
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Dengue fever symptoms
- High fever
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- Severe headache
- Muscle and joint pains
- Nausea
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- Swollen glands
- Rash
If symptoms occur, they usually last for two-seven days
COMPANY PROFILE
Company: Eco Way
Started: December 2023
Founder: Ivan Kroshnyi
Based: Dubai, UAE
Industry: Electric vehicles
Investors: Bootstrapped with undisclosed funding. Looking to raise funds from outside
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
THE DETAILS
Deadpool 2
Dir: David Leitch
Starring: Ryan Reynolds, Josh Brolin, Justin Dennison, Zazie Beetz
Four stars
Company profile
Company name: Fasset
Started: 2019
Founders: Mohammad Raafi Hossain, Daniel Ahmed
Based: Dubai
Sector: FinTech
Initial investment: $2.45 million
Current number of staff: 86
Investment stage: Pre-series B
Investors: Investcorp, Liberty City Ventures, Fatima Gobi Ventures, Primal Capital, Wealthwell Ventures, FHS Capital, VN2 Capital, local family offices
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
How to report a beggar
Abu Dhabi – Call 999 or 8002626 (Aman Service)
Dubai – Call 800243
Sharjah – Call 065632222
Ras Al Khaimah - Call 072053372
Ajman – Call 067401616
Umm Al Quwain – Call 999
Fujairah - Call 092051100 or 092224411
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
SPEC SHEET: APPLE M3 MACBOOK AIR (13")
Processor: Apple M3, 8-core CPU, up to 10-core CPU, 16-core Neural Engine
Display: 13.6-inch Liquid Retina, 2560 x 1664, 224ppi, 500 nits, True Tone, wide colour
Memory: 8/16/24GB
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I/O: Thunderbolt 3/USB-4 (2), 3.5mm audio, Touch ID
Connectivity: Wi-Fi 6E, Bluetooth 5.3
Battery: 52.6Wh lithium-polymer, up to 18 hours, MagSafe charging
Camera: 1080p FaceTime HD
Video: Support for Apple ProRes, HDR with Dolby Vision, HDR10
Audio: 4-speaker system, wide stereo, support for Dolby Atmos, Spatial Audio and dynamic head tracking (with AirPods)
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In the box: MacBook Air, 30W/35W dual-port/70w power adapter, USB-C-to-MagSafe cable, 2 Apple stickers
Price: From Dh4,599
JUDAS AND THE BLACK MESSIAH
Directed by: Shaka King
Starring: Daniel Kaluuya, Lakeith Stanfield, Jesse Plemons
Four stars
The years Ramadan fell in May
SPECS
Engine: Two-litre four-cylinder turbo
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On sale: Now
How to play the stock market recovery in 2021?
If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.
Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.
Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.
Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).
Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.
Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.
By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.
As demand for energy fell, the oil and gas industry had a tough year, too.
Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.
He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”
This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”
Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.
Sweet Tooth
Creator: Jim Mickle
Starring: Christian Convery, Nonso Anozie, Adeel Akhtar, Stefania LaVie Owen
Rating: 2.5/5
ULTRA PROCESSED FOODS
- Carbonated drinks, sweet or savoury packaged snacks, confectionery, mass-produced packaged breads and buns
- margarines and spreads; cookies, biscuits, pastries, cakes, and cake mixes, breakfast cereals, cereal and energy bars;
- energy drinks, milk drinks, fruit yoghurts and fruit drinks, cocoa drinks, meat and chicken extracts and instant sauces
- infant formulas and follow-on milks, health and slimming products such as powdered or fortified meal and dish substitutes,
- many ready-to-heat products including pre-prepared pies and pasta and pizza dishes, poultry and fish nuggets and sticks, sausages, burgers, hot dogs, and other reconstituted meat products, powdered and packaged instant soups, noodles and desserts.