Industry Update

Western Union Co. acquired a 15% stake in stc pay, a unit of Saudi Telecom Co. that’s focused on digital payments and financial technology services, for $200 million. Saudi Telecom will inject 400 million riyals ($107 million) as additional capital stc pay and a further 802 million riyals if it manages to obtain a digital banking license, according to a statement. stc pay is a financial company that launched a digital wallet mobile application in 2018. The e-platform provides digital and financial services to individuals and companies, and facilitates financial transactions and payments.

Source: https://www.bloomberg.com/news/articles/2020-11-21/western-union-buys-15-stake-in-saudi-telecom-s-stc-pay-unit?srnd=premium-middle-east

The mammoth dual listing for Chinese biotech giant Ant Group will be the world’s biggest, according to a pricing determined on Friday night, Alibaba founder Jack Ma said on Saturday. “It’s the first time that the pricing of such a big listing — the largest in human history — has been determined outside New York City” he told the Bund Summit in the eastern financial hub of Shanghai. “We didn’t dare to think about it five years ago, or even three years ago. But a miracle just occurred,” he told the audience, which included officials from China’s regulators. He did not give exact details of the pricing which is expected to be officially announced next week. Backed by Chinese e-commerce giant Alibaba, Ant plans to list simultaneously in Hong Kong and on Shanghai’s STAR Market in the coming weeks.

Source: https://www.arabnews.com/node/1753611/business-economy

His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai tweeted on Saturday that the UAE had merged the Insurance Authority with the Central Bank of UAE. He added that the new economic organization in the country aims at raising the efficiency of the insurance sector and raising the efficiency and competitiveness of UAE's local financial markets while giving them greater flexibility in their business. The decision also transfers all operational and executive powers of the Securities and Commodities Authority to the local stock markets, while the SCA maintains regulation and oversight of the local financial markets, Sheikh Mohammed said in a tweet.

Source: https://gulfnews.com/business/banking/uae-merges-insurance-authority-with-the-central-bank-of-uae-1.1603526863187

The UAE’s largest telco Etisalat has been recognized as the world’s fastest mobile network operator in Q2-Q3 2020 in a new ranking from Speed test by Ookla. The ranking is based on analysis by Ookla of millions of tests actively initiated by customers across every network to check internet speeds using various web and mobile platforms. The Speed test awards for top network providers are determined using a ‘Speed Score’ that measures a provider’s network speeds (download and upload) to rank network speed performance. Etisalat registered a download speed of 115.89 Mbps and an overall ranking in the ‘Speed Score’ at 98.78 Mbps, It is the only operator globally to rank higher than 90 according to the Ookla Speed test data, reported news agency WAM.

Source: https://gulfbusiness.com/uaes-etisalat-recognised-as-worlds-fastest-mobile-network/

The pandemic has wiped out millions of mostly low-income jobs in hotels, restaurants, retail and other hard-hit corners of the economy. Now, the pink slips are spreading to higher-paid office workers. In the last few days, ExxonMobil, Chevron (CVX), Charles Schwab and Raytheon have announced plans to cut thousands of white-collar jobs. That's on top of major layoffs already announced or reported in the press at Wells Fargo, Goldman Sachs, Salesforce (CRM), Allstate (ALL) and CNN owner Warner Media. Corporate America's belt-tightening provides more evidence of the fragile and uneven nature of the economic recovery from the pandemic. Just as laid-off Americans in some parts of the economy are returning to work, others are filing for unemployment.

Source: https://edition.cnn.com/2020/10/30/business/jobs-white-collar-layoffs/index.html

Abu Dhabi Commercial Bank (ADCB) reported Q3 2020 net profits of Dhs1.366bn, which were 3 per cent lower year-on-year, although it was up 11 per cent quarter-on-quarter. It reported a nine-month net profit from January-September 2020 of Dhs2.802bn, down 33 per cent compared to Dhs4.196bn in the corresponding period last year. Operating income increased 2 per cent sequentially to Dhs2.991bn in the third quarter this year, while its operating expenses were 14 per cent lower year-on-year at Dhs1.102 billion.Net impairment charges were recorded at Dhs504m, 25 per cent lower quarter-on-quarter on account of higher recoveries and releases.

Source: https://gulfbusiness.com/uaes-adcb-posts-q3-2020-net-profit-of-dhs1-3bn-down-3-y-on-y/

David Einkorn’s Greenlight Capital hedge funds rose 7.7% in October -- his best monthly performance all year -- after the value investor added to his short wagers. Greenlight’s October return pared this year’s losses to 9.6%, according to an investor update viewed by Bloomberg. It was Einhorn’s fourth straight positive month. “We are now in the midst of an enormous tech bubble,” Einhorn told investors in a letter this week, saying he had added a set of bets against “mostly second-tier companies and recent IPOs trading at remarkable valuations.” He also told clients his working hypothesis was that Sept. 2 was the top and the bubble had already popped. Homebuilder Green Brick Partners Inc., the primary driver of Einhorn’s gains in the third quarter, was a strong performer in October as well, with shares climbing 11%. The company is benefiting from low interest rates and pandemic-driven demand for single-family detached housing.

Source: https://www.bloomberg.com/news/articles/2020-10-31/einhorn-makes-7-7-in-october-after-adding-to-bubble-basket?srnd=premium-middle-east

Tata firm Tanishq plans to launch an exclusive 'UAE-inspired' design collection to woo Emirati customers. The $8.4 billion gems and gold jewellery market in the UAE, already bursting with Indian retail chains, is about to see the entry of Tanishq, a retail unit of Indian conglomerate Tata Group. Tanishq, making its foray into the international market with an exclusive showroom in Meena Bazar in Dubai, is busy finalizing plans to launch an exclusive ‘UAE-inspired’ design collection to woo Emirati customers. The Tata Group firm will also be offering specially curated jewellery and watches to attract the large multi-ethnic population in the UAE, besides the Indian diaspora.

Source: https://www.arabianbusiness.com/retail/453977-how-indian-giant-tata-aims-to-shake-up-the-uae-jewellery-market

Pizza Express will cut 1,300 more jobs across its 370 UK restaurants after sales dipped amid more coronavirus cases and restrictions. The losses come weeks after the firm said it would cut 1,100 jobs and close 73 restaurants. No further restaurants will close, it says, with this volley of losses split across the remaining sites. City centres are worst hit by the restrictions, it said, as diners stay at home or order food in."Our aim throughout these extremely challenging times has been to keep our team members and customers safe and to retain jobs for as long as possible," Zoe Bowley, Pizza Express managing director said. "Unfortunately, the recent increase in Covid-19 cases is again causing footfall to decline across the UK. "The company didn't say which roles are likely to be cut, nor which locations will lose staff.

Source: https://www.bbc.com/news/business-54740003

Dubai-based private equity firm Gateway Partners has acquired a 40 percent stake in the Gulf franchise of coffee and breakfast chain Tim Hortons in a deal reported to be worth $50 million, according to reports. The franchise is owned and operated by Dubai fashion and lifestyle retail conglomerate Apparel Group. Arabian Business has contacted Gateway for comment. Information on the company website states the investment was made in February this year.

Source: https://www.arabianbusiness.com/travel-hospitality/444606-dubai-based-gateway-partners-takes-40-stake-in-tim-hortons-gulf-franchise