Apicorp completes exit from Saudi energy services firm

Arab Petroleum Investments Corporation (Apicorp) exited from Saudi energy firm National Petroleum Services, one of the region's largest oil services companies, selling its 29 per cent equity stake to National Energy Services Reunited Corporation (NESR).

The investment was crucial to Apicorp’s diversification into the oil and gas services sector, as well as its commitment to regional energy companies, the firm said in a statement.

“NPS has been a highly successful investment and has enabled the consortium partners to realise significant value, a fitting endorsement of our strategy,” Apicorp chief executive Ahmed Ali Attiga said in a statement on Wednesday.

The firm did not disclose the value of the transaction.

Dammam-headquartered Apicorp made its original investment in NPS with regional institutional partners that included Dubai-based Fajr Capital in 2014. The consortium had acquired 90 per cent of the business.

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Apicorp credit profile enjoys strong shareholder support

Apicorp sees reforms opening the region up for investors

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The sale to Houston-based NESR last month was completed after the transaction received the seal of approval from the US Securities and Exchange Commission as well as the company’s own shareholders. NESR was listed on Nasdaq as a special purpose acquisition company in June last year, Apicorp said in a statement.

The acquisition of Apicorp’s stake will enable NESR to gain a foothold in the MENA and Asia Pacific region, where it looks to offer a drilling, completion and production services as well as equipment.

In March, Apicorp raised 630 million yuan (Dh348.8m) through its debut dim sum bond as it looked to diversify its funding sources.

Last year, the Saudi multilateral investment bank sold a $500m five-year sukuk as part of its $3 billion trust certificate programme in a transaction that attracted almost seven times the amount available for sale.

In April, the firm forecast that the Mena region will require $260bn of investment, comprising $152bn for 117GW of generating capacity and $108bn in transmission and distribution, to meet rising electricity demand.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The 12 Syrian entities delisted by UK

Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV

Why seagrass matters

Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
Biodiversity: Support species like sea turtles, dugongs, and seabirds
Coastal protection: Reduce erosion and improve water quality

PROFILE OF HALAN

Started: November 2017

Founders: Mounir Nakhla, Ahmed Mohsen and Mohamed Aboulnaga

Based: Cairo, Egypt

Sector: transport and logistics

Size: 150 employees

Investment: approximately $8 million

Investors include: Singapore’s Battery Road Digital Holdings, Egypt’s Algebra Ventures, Uber co-founder and former CTO Oscar Salazar