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    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

    Egypt’s food industries contribute 24.5% of GDP

    Egypt’s food industries contribute 24.5% of GDP

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    $36mln contract for construction of Duqm fisheries complex

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    Ministry signs agreement to support Oman’s honey industry

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    Local, Italian companies partner up to establish food retail chain in Egypt

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    Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

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      Profits at top Saudi banks jump 17.6% in Q1

      Profits at top Saudi banks jump 17.6% in Q1

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      GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

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      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

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      New study reveals that UAE is most competitive economy in the Arab world

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      Egypt’s Trade minister, Hungarian ambassador discuss economic relations

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      Oman Construction Equipment Industry to 2028

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      $36mln contract for construction of Duqm fisheries complex

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      What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

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      Madayn working on major Oman industrial city projects

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      Foundation stone laid for new 700-bed hospital is Salalah, Oman

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      Iraq set to award new Faw Port deals

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        Fitch revises Saudi Aramco’s outlook to positive from stable

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        Investments in renewables in Egypt reach LE6 bn: Official

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          Egyptian COVID-19 drug to be on market in two weeks: Health Ministry

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          COVID-19 vaccine could be available by autumn: Oxford University

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          Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

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          Saudi to be among world’s big leisure tourism hubs by 2030

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          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Pacts worth over OMR 33 million signed to establish agricultural, fisheries projects

          Egypt’s food industries contribute 24.5% of GDP

          Egypt’s food industries contribute 24.5% of GDP

          $36mln contract for construction of Duqm fisheries complex

          $36mln contract for construction of Duqm fisheries complex

          Ministry signs agreement to support Oman’s honey industry

          Ministry signs agreement to support Oman’s honey industry

          Local, Italian companies partner up to establish food retail chain in Egypt

          Local, Italian companies partner up to establish food retail chain in Egypt

          Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

          Egypt’s agriculture minister stresses importance of boosting intra-regional trade cooperation among African states

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            Profits at top Saudi banks jump 17.6% in Q1

            Profits at top Saudi banks jump 17.6% in Q1

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            GCC can create 600,000 tech jobs and add US$255 billion to GDP by 2030

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            New study reveals that UAE is most competitive economy in the Arab world

            New study reveals that UAE is most competitive economy in the Arab world

            Top 10 listed companies in the Middle East

            Egypt’s Trade minister, Hungarian ambassador discuss economic relations

            Egypt’s Trade minister, Hungarian ambassador discuss economic relations

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            Oman Construction Equipment Industry to 2028

            Oman Construction Equipment Industry to 2028

            $36mln contract for construction of Duqm fisheries complex

            $36mln contract for construction of Duqm fisheries complex

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            What will Qatar do with its World Cup infrastructure after FIFA 2022 ends?

            Madayn working on major Oman industrial city projects

            Madayn working on major Oman industrial city projects

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Foundation stone laid for new 700-bed hospital is Salalah, Oman

            Iraq set to award new Faw Port deals

            Iraq set to award new Faw Port deals

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              Suez Canal expects US$3.5 billion in revenues in H1

              Suez Canal expects US$3.5 billion in revenues in H1

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              UAE and Egypt’s consortium to buy African renewables firm Lekela Power

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Fitch revises Saudi Aramco’s outlook to positive from stable

              Investments in renewables in Egypt reach LE6 bn: Official

              Investments in renewables in Egypt reach LE6 bn: Official

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              Egypt signs 8 gas exploration contracts worth $934mn over 15 months

              JGC lands $3.7bn Iraq refinery upgradation project deal

              JGC lands $3.7bn Iraq refinery upgradation project deal

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                Coronavirus: UAE conducting human trials for Covid-19 vaccine

                Coronavirus: UAE conducting human trials for Covid-19 vaccine

                COVID-19 vaccine could be available by autumn: Oxford University

                GSK to develop plant-based COVID-19 vaccine with Canada’s Medicago

                Egyptian COVID-19 drug to be on market in two weeks: Health Ministry

                Egyptian COVID-19 drug to be on market in two weeks: Health Ministry

                UAE sends medical aid to Iraq to fight COVID-19

                UAE sends medical aid to Iraq to fight COVID-19

                UAE launches phase III trial of inactivated Covid vaccine

                UAE launches phase III trial of inactivated Covid vaccine

                COVID-19 vaccine could be available by autumn: Oxford University

                COVID-19 vaccine could be available by autumn: Oxford University

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                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Qatar has ‘solid’ line-up of infrastructure, hospitality projects to prepare for large influx of visitors in 2022: OBG

                Saudi to be among world’s big leisure tourism hubs by 2030

                Saudi to be among world’s big leisure tourism hubs by 2030

                Qatar’s hospitality sector peaks despite turbulent 2020

                Qatar’s hospitality sector peaks despite turbulent 2020

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Accor inks deal to manage first Swissôtel-branded hotel and residential project in Qatar

                Staycations to stimulate Qatar’s hospitality sector

                Staycations to stimulate Qatar’s hospitality sector

                Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

                Quarantine rule to give a boost to Qatar’s hospitality industry in Q3: CWQ report

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              Foreign investors try to tap into Iran

              Reuters

              July 20, 2015
              in Economy, Finance
              0

              A few investors are racing to establish funds for Iran following last week's nuclear deal with world powers, and many others are tapping into multinationals already present in the $400 billion economy.

              The agreement has made some seek a foothold in Tehran's $100 billion stock market even before sanctions are lifted, although others are taking a more cautious approach.

              Classified as an upper-middle income country, with a population of 78 million and annual output higher than that of Thailand or the United Arab Emirates, Iran is set to be the biggest economy to rejoin the global trading and financial system since the break-up of the Soviet Union over 20 years ago.

              Brokerage Renaissance Capital predicts $1 billion will flow into Iran in the first year after sanctions end, although that is not likely to happen for months and may not occur in one go.

              London-based boutique First Frontier Capital Ltd. is in the process of setting up a sanctions-compliant fund dedicated to Iran, hoping to allow investors to take a position in Tehran's bourse before sanctions are lifted.

              "This is a market where everyone is totally underweight and there will obviously be a lot of money going in, hot money at first but then also others," said First Frontier's co-CEO, Richard Adley, who plans to launch the fund in the next couple of months and aims to have 100 million euros invested by year-end.

              "And then there is a big valuation gap there, Iran has a lot of catching up to do when you look at other frontier or emerging markets," said Adley, who estimates valuations at a very cheap five to six times earnings.

              First Capital are not alone. In April, British-based Charlemagne announced it had teamed up with a Tehran-based firm, Turquoise Partners, to establish funds that will invest in Iranian securities.

              Others, like MENA Capital CIO Khaled Abdel Majeed, are also getting ready to invest, but worry that a dedicated country fund carries too many risks at this point. Instead, Majeed is aiming to invest part of his firm's funds under management in Iranian shares – once the sanctions are lifted.

              "At the moment it may be very marketable, but at some point it will become too expensive," he said, adding that the firm was starting its search for suitable local partners in Tehran.

              "And there is also a lot of risk in the deal that has been agreed, and the regime itself is not stable enough to last another 50 years."

              Both Renaissance Capital and the investment consultancy Ecstrat have reported a sharp pick-up in demand for Iran-related research from asset managers preparing to make the leap.

              CHEAP VALUATIONS Some 780 million shares traded on the exchange on July 12, the latest data available on its website, representing about $64.2 million.

              Iran mirrors Saudi Arabia in that both are diverse, geopolitically important markets with attractive demographics and stable populations, said Asha Mehta, portfolio manager at Acadian Asset Management in Boston who runs $500 million in frontier market assets for institutional investors.

              Yet with issues of access and other trading logistics yet to be worked out for direct investments, international companies already doing business in Iran will stand to benefit, at least in the short-term until restrictions fall away, said Joana Arthur, equity product manager for London-based Ashmore, which has approximately $1.2 billion invested in frontier strategies.

              Larry Seruma, portfolio manager of the $434 million Nile Global Frontier fund, said that he expects Iran will eventually become a "destination" for his fund. In the meantime, he is holding on to companies such as South African mobile network firm MTN Group Ltd , which owns 49 percent of Irancell, Iran's second-largest mobile phone operator.

              MTN Group told investors in April that it expected to repatriate about $1 billion in accumulated dividends and a loan repayment from its Iranian unit that had been frozen by international sanctions once a nuclear deal was finalized.

              Multinational mobile phone companies, car makers and hospitality firms are seen as the most primed to benefit from the lifting of sanctions.

              Bank of America Merrill Lynch said it sees Turkey and the United Arab Emirates as likely beneficiaries from Iranian foreign trade, which could increase to $200 billion by 2020 from $80 billion now.

              Higher imports are likely going to come from the machinery, vehicle, iron, steel, food and consumer goods sectors, BAML said. Dubai's real estate and hospitality sector could also see an influx of Iranian cash and visitors.

              Specific companies that could benefit in the short-to-medium term, highlighted by BAML, are Dubai real-estate company Emaar Properties , Turkish oil refiner Tupras , Italian oil services company Saipem , and Saudi Arabian food and packaging distribution company Savola Group .

              Among automakers, Turkey's Tofas Turk Otomobil Fabrikasi and Dogus Otomotiv could get a boost, as well as French carmakers Renault and Peugeot.

              Iran's urgent need to upgrade its fleet of planes could bring a potential bonanza for Brazil's Embraer , Europe's Airbus and Boeing of the United States.

              Private equity firms will likely be another early mover, either taking direct ownership stakes in companies or providing financing to businesses looking to expand to take advantage of the young and well-educated populace. That will likely lead to more corporate bond offerings once the country is fully open to international investors, analysts say.

              "Firms like ours are now starting to check under the hood. There are a lot of assets there that are going to need restructuring," said AJ Mediratta, co-president at emerging market debt specialist firm Greylock Capital Management in New York.

              ($1=25,535 Iranian rials)
              Reuters
              20 July

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