Zain, Ooredoo and TASC in July had announced exclusive talks to create the Middle East and North Africa’s largest tower company, combining about 30,000 tower assets in Qatar, Kuwait, Algeria, Tunisia, Iraq and Jordan.

The new entity will have an estimated enterprise value of $2.2 billion through an “asset and cash equalisation process” between Zain and Ooredoo that would give both companies a 49.3% share.

TASC’s founders will retain the rest, the statements said, with the transaction expected to be completed in 2024, subject to all necessary regulatory approvals.

“(This deal) also positions the region as an advanced player in the global telecoms landscape, and we anticipate wide-ranging positive implications for the region – from economic growth and upgraded connectivity to technological improvements and increased global relevance,” executives from the three companies said.

The new tower entity is expected to achieve run-rate revenues close to $500 million annually, an Ooredoo statement added.

Zain said the transaction would have a positive impact on its operational growth but it could not determine the financial impact at this stage.

The offloading of a 65% stake in the business to a consortium led by private-equity firm Fajr Capital brings to a close a year-long sale process after the business was seen as undervalued by some of its investors.

The investor group also comprises UAE sovereign wealth fund Emirates Investment Authority, Al Dhow Holding Co, Wafra International Investment Co and Saudi Arabian billionaire Olayan family’s Hana Investment.

Aster promoter, Moopen Family, will hold the remaining stake in the unit

The move will help Aster focus more on its India business, in which it also plans to sell a 30% stake for about $300 million as it plans to go on an expansion spree.

Alisha Moopen, managing director of Aster’s Gulf business, told Reuters that the stake sale gives the company more flexibility to pursue growth.

“I think there is a lot of opportunities for inorganic growth in India which we haven’t been able to pursue so actively because of this conflicting requirements and investment in capital requirements between the two regions,” Moopen said.

Aster DM currently operates 32 hospitals, 127 clinics and 521 pharmacies in India and the UAE. Shares of Aster DM closed down 1.48%, valuing the company at about $2 billion.

The company also plans to scale up expansion in Saudi Arabia, planning to open 180-200 pharmacies in the next four years, Moopen said.

Reuters, in July, reported Aster confirming it was in talks with Fajr and other parties as part of exploring a potential carve-out of its Gulf unit.

The meeting, which took place on the sidelines of the 78th United Nations General Assembly, saw the attendance of ministers from the Gulf Cooperation Council (GCC) countries and British Foreign Secretary James Cleverly.

The purpose of the meeting was to discuss the latest regional and international developments and emphasize the significance of enhancing collaborative efforts between the Gulf countries and the United Kingdom. The participating ministers acknowledged the importance of these efforts in realizing the aspirations of nations and peoples, as well as fostering stability and prosperity.

The joint Gulf-British ministerial meeting served as a platform for open and constructive dialogue on matters of mutual concern. It provided an opportunity for all participants to exchange views, share insights, and explore avenues for cooperation in various fields.

The presence of Prince Faisal bin Farhan and his counterparts from the GCC countries, alongside British Foreign Secretary James Cleverly, highlights the commitment of all parties to fostering strong relationships and addressing regional and global challenges through collective action.

Discussions during the meeting covered a broad range of topics, including regional security, political developments, economic cooperation, and cultural exchange. The participants emphasized the importance of collaboration in promoting stability, security, and prosperity in the Gulf region and beyond.

The meeting also highlighted the role of the Gulf-British relationship in advancing shared goals and contributing to regional and international peace and development. The ministers expressed their commitment to working together and leveraging their collective strengths to address common challenges and seize opportunities for growth and progress.

In addition to Prince Faisal bin Farhan, the meeting was attended by Abdul Rahman Al-Rasi, Undersecretary of the Saudi Ministry of Foreign Affairs for Multilateral Affairs, and Abdulrahman Al-Dawood, the Director-General of the Office of His Highness the Minister of Foreign Affairs. Their presence further underscored Saudi Arabia’s dedication to active engagement and collaboration on multilateral platforms.

The joint Gulf-British ministerial meeting exemplifies the importance placed on fostering strong relationships and promoting cooperation among nations. Through such gatherings, countries can work together to address shared challenges, enhance regional stability, and create opportunities for collective growth and prosperity.

As the United Nations General Assembly provides a conducive environment for dialogue and collaboration, the meeting served as a testament to the commitment of all participating parties to forge strong partnerships and contribute to a more peaceful and prosperous world.

The decline was led by the Qatari index (.QSI), which slipped 0.4% after a 1.1% decline in Gulf’s largest lender Qatar National Bank (QNBK.QA) and a 0.8% decrease in Commercial Bank (COMB.QA).

Abu Dhabi’s benchmark index (.FTFADGI) dropped 0.2%, putting it on track to end a four-session winning streak, with Conglomerate Alpha Dhabi Holding (ALPHADHABI.AD) losing 0.5% and Adnoc Gas (ADNOCGAS.AD) slipping 0.6%.

In Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) slipped 0.17%, while Tokyo’s Nikkei (.N225) eased 0.21%.

The U.S. inflation data is slated for release later in the day, with expectations of core month-on-month inflation of 0.2% in August, the same as July.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy, as most regional currencies are pegged to the U.S. dollar.

Dubai’s main index (.DFMGI) fell 0.1% as half of its stocks were in the red, including blue-chip developer Emaar Properties (EMAR.DU) which declined 0.7%, while Emirates Central Cooling Systems Corporation (EMPOWER.DU) dropped 1.1%.

Saudi Arabia’s benchmark index (.TASI) edged 0.1% lower, trading near a three-month low, pressured by a 2.7% slump in Gulf’s largest petrochemical firm Saudi Basic Industries (2010.SE) and a 0.9% drop in Dr Sulaiman Al-Habib Medical Services (4013.SE).

However, IT firm Al Moammar Information Systems (7200.SE) jumped 3% after it launched MIS Pay, a “buy now and pay later” service.

Crude prices, a key contributor to Gulf economy, also extended gains on supply concerns over Libyan output hit and OPEC+ countries’ commitment to production cut.

Brent crude was up 0.7% or $0.60 to $92.64 a barrel by 0800 GMT.

Oil prices – which fuels the Gulf economy – were little changed as investors remained downbeat on China’s economic malaise hobbling demand from the world’s top crude importer, limiting the impact of supply cuts.

Saudi Arabia’s benchmark index (.TASI) dropped 0.3%, extending losses from the previous session, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1%, while oil giant Saudi Aramco (2222.SE) was down 0.2%.

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

The Qatari benchmark (.QSI) gave up early gains to finish 0.1% lower, weighed down by a 1% fall in Commercial Bank (COMB.QA) and a 0.3% decrease in petrochemical maker Industries Qatar (IQCD.QA).

Dubai’s main share index (.DFMGI) gained 0.4%, helped by a 1.4% gain in sharia-compliant lender Dubai Islamic Bank (DISB.DU).

The Dubai stock market remained stable with traders being cautious ahead of the Federal Reserve’s event this week. Traders could monitor speeches from the Fed’s governors for clues on monetary policy, said Ahmed Negm, Head of Market Research MENA at XS.com.

Oil and gas exporting countries in the Gulf tend to follow the Fed’s rate move, as most regional currencies are pegged to the U.S. dollar. Only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

Outside the Gulf, Egypt’s blue-chip index (.EGX30) advanced 1.7%, as most of the stocks on the index were in positive territory including tobacco monopoly Easter Company (EAST.CA), which jumped 8.5% after receiving several offers from foreign investors to buy up to 15.3% of the shares.

Egypt promised the International Monetary Fund it would roll back the state’s involvement in the economy and allow private companies a much greater role as part of a $3 billion, 46-month financial support package signed in December.

Egypt’s petroleum ministry on Tuesday announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.

Tim Lenderking “will meet with Yemeni, Saudi, Emirati, Omani and international partners to discuss the necessary steps to secure a durable ceasefire and launch an inclusive, UN-mediated political process while ensuring continued efforts to ease the economic crisis and suffering of Yemenis,” the department added.

The Fed raised its rate by 25 basis points (bps) on Wednesday and left the door open to another increase.

Oil and gas exporters in the Gulf tend to follow the Fed’s lead on rate moves as most regional currencies are pegged to the U.S. dollar; only the Kuwaiti dinar is pegged to a basket of currencies, which includes the dollar.

However, regional economies have been largely shielded from stubbornly high inflation, and a Reuters poll in April showed that inflation in the region was expected to be between 2.1% and 3.3% this year and fall lower in 2024.

The central banks of Saudi Arabia and the United Arab Emirates mirrored the Fed move, as did Qatar, Kuwait and Bahrain, although the latter left two rates out of four unchanged.

The Saudi central bank, known as SAMA, increased its repo rate to 6% and its reverse repo rate to 5.5%, both by 25 bps, and the UAE said it would raise the base rate on its Overnight Deposit Facility to 5.40%, from 5.15%, effective Thursday.

Qatar also increased its main rates by 25 bps, taking the lending interest rate to 6.25%, the deposit interest rate to 5.75% and the repo rate to 6%, while Bahrain raised the one-week deposit rate to 6.25% and the overnight deposit rate to 6%.

The Central Bank of Kuwait increased its discount rate by 25 bps to 4.25% from 4%, and said in a statement it wants to remain supportive of economic growth, particularly in non-oil sectors.

Saudi state-run al-Ekhbariya television showed several Saudi officials welcoming Erdogan as he arrived at the venue of a Saudi-Turkish business forum in the Red Sea city of Jeddah.

Erdogan met Saudi Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler, late Monday night, the state-run Saudi Press Agency reported.

Investments and funding from the Gulf have helped relieve pressure on Turkey’s economy and hard currency buffer since 2021, when Ankara launched a diplomatic effort to repair ties with Saudi Arabia and the United Arab Emirates.

“This visit has two main topics: investments, and a financial dimension. We have high hopes for both,” Erdogan told a news conference at an Istanbul airport before setting off.

Erdogan’s visit to Saudi Arabia is the first stop in a Gulf tour that includes Qatar and the UAE between July 17-19 and follows his re-election in May.

“Turkey will have a serious investment opportunity in the defence industry, infrastructure and superstructure investments in the three countries,” he said.

“In addition, these countries will have the opportunity to purchase certain assets from Turkey,” he added.

Two senior Turkish officials have said previously that Turkey expects Gulf countries to make direct investments of about $10 billion initially in domestic assets as a result of Erdogan’s trip to the region.

Ekhbaria carried live footage showing Saudi Investment Minister Khaled al-Falih addressing dozens of businessmen from both sides at the Saudi-Turkish business forum in Jeddah.

Last month, Turkish Vice President Cevdet Yilmaz and Finance Minister Mehmet Simsek travelled to the UAE to discuss “economic cooperation opportunities” with counterparts, and they met President Sheikh Mohammed bin Zayed al-Nahyan, Ankara said.

Erdogan appointed Yilmaz and Simsek after the elections in part to execute a U-turn after years of unorthodox economic policy that sent inflation soaring and net foreign reserves to a record low in May. As part of the pivot, the central bank hiked rates by 650 basis points last month.

Turkey’s budget deficit surged to 219.6 billion lira ($8.37 billion) in June, seven times the deficit a year earlier, data showed on Monday. Annual inflation was close to 40% in June while the lira has weakened nearly 29% this year

Tokyo (Reuters) – Japanese Prime Minister Fumio Kishida plans to discuss energy markets on a trip to Saudi Arabia, United Arab Emirates and Qatar later this month, aiming to offer Japanese technologies for net zero transition, a senior official said.

Energy-poor Japan relies on Organization of the Petroleum Exporting Countries, with Saudi Arabia and UAE among key OPEC members, for the most of its oil, while part of its liquefied natural gas needs – the world’s largest – is covered by Qatar.

Kishida will visit the three countries on July 16-19 as “it is very important to build a personal relationship of trust with the leaders responsible for each country for years to come”, a senior official at Japan’s foreign ministry said.

“Crude oil prices are high due to the situation in Ukraine, so it is a very important purpose to exchange views on the current oil market and LNG market,” the official, who declined to be named, told reporters. “It is very important to exchange views with these countries on stabilising the energy market.”

Japan is actively developing greener and renewable energy technologies as it wants to be carbon neutral by 2050, and Kishida will also try to promote Japanese know-how as energy-producing countries also have ambitious green targets.

“One of the achievements we expect from this visit is cooperation in the new energy field on environmentally friendly energy sources such as hydrogen and ammonia, while making use of Japan technologies, thereby further broadening cooperative relations in the energy field,” the official said.

In March, Japanese trading house Marubeni Corp (8002.T) agreed to study clean hydrogen production in Saudi Arabia together with the kingdom’s sovereign wealth fund, as Riyadh is looking to add other types of energy sources, including cleaner fuels and renewables, to diversify its oil-based economy.

In a statement, the U.S. Navy said that at 0100 local time (2100 GMT), an Iranian naval vessel had approached the Marshall Islands-flagged oil tanker TRF Moss in international waters in the Gulf of Oman.

“The Iranian vessel departed the scene when U.S. Navy guided-missile destroyer USS McFaul arrived on station,” the statement said, adding that the Navy had deployed surveillance assets including maritime patrol aircraft.

The Navy said that around three hours later it received a distress call from Bahamas-flagged oil tanker Richmond Voyager while the ship was more than 20 miles (32 km) off the coast of Muscat, Oman, and transiting international waters.

“Another Iranian naval vessel had closed within one mile of Richmond Voyager while hailing the commercial tanker to stop,” the Navy statement said, adding that the McFaul directed course towards the merchant ship at maximum speed.

“Prior to McFaul’s arrival on scene, Iranian personnel fired multiple, long bursts from both small arms and crew-served weapons,” the Navy said.

“Richmond Voyager sustained no casualties or significant damage. However, several rounds hit the ship’s hull near crew living spaces. The Iranian navy vessel departed when McFaul arrived.”

U.S. oil major Chevron (CVX.N) confirmed that it managed the Richmond Voyager, that crew onboard were safe and the vessel was operating normally.

The TRF Moss’ manager is listed in public database Equasis as Singapore-based Navig8 Chemicals Asia, but Navig8 told Reuters it was not connected with the tanker. The vessel’s manager could not be immediately located.

No Iranian Comment

Iran’s state news agency IRNA said on Wednesday that Iranian authorities have not commented yet on the matter.

“The United States will respond to Iranian aggression together with our global allies and our partners in the Middle East region to ensure the freedom of navigation through the Strait of Hormuz and other vital waterways,” a spokesperson for the White House National Security Council said.

Vice Admiral Brad Cooper, commander of U.S. Naval Forces Central Command, cited “the exceptional effort by the McFaul crew for immediately responding and preventing another seizure”.

Since 2019, there has been a series of attacks on shipping in strategic Gulf waters at times of tension between the United States and Iran.

Iran seized two oil tankers in a week just over a month ago, the U.S. Navy said.

“Since 2021, Iran has harassed, attacked or seized nearly 20 internationally flagged merchant vessels, presenting a clear threat to regional maritime security and the global economy,” the Navy statement added.

About a fifth of the world’s supply of seaborne crude oil and oil products passes through the Strait of Hormuz, a chokepoint between Iran and Oman, according to data from analytics firm Vortexa.

Refinitiv ship-tracking data shows the Richmond Voyager previously docked in Ras Tannoura in eastern Saudi Arabia before Wednesday’s incident in the Gulf of Oman.

The Richmond Voyager was now leaving the Gulf with Singapore listed as its destination, Refinitiv ship tracking showed.

Top ship registries including the Marshall Islands and Greece have warned in recent weeks of the threat to commercial shipping in the Gulf including the Strait of Hormuz.

In another point of tension, the U.S. confiscated a cargo of Iranian oil aboard a tanker in April in a sanctions enforcement operation, sources told Reuters.

That vessel, the Marshall Islands-flagged Suez Rajan, is anchored outside the U.S. Gulf of Mexico terminal of Galveston waiting to discharge its cargo, according to Refinitiv ship tracking