GULF STATES- ECONOMICS & FINANCE
Uber set to acquire Dubai-based Careem for $3.1 billion
US ride-hailing giant Uber is set to announce $3.1 billion acquisition of its Dubai-based rival Careem in a cash and stock deal as early as this Tuesday, according to sources familiar with the matter.
Uber will be paying $1.4 billion in cash and $1.7 billion in convertibles, according to source. The notes will be convertible into Uber shares at a price equal to $55 per share.
The acquisition comes ahead of Uber’s long-awaited IPO next month, expected to value it at $120 billion. The company has chosen the New York Stock Exchange to list its shares.
Representatives for Uber didn’t immediately respond to requests for comment, while a spokesman for Careem wasn’t immediately able to comment.
The landmark acquisition deal happens at a time when Lyft, Uber’s American rival, is expected to debut on Nasdaq in the next few weeks in an IPO that could value the company at $25 billion.
With the acquisition of Careem, a dominant player in the Middle East, Uber will have a virtual monopoly in the Mena region, and will make it even more attractive for investors, analysts said.
Shareholders in Careem, including Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have reportedly been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday.
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LULU plans 32 new hypermarkets this year
LuLu Group is on a massive expansion drive and set to open another 32 hypermarkets in shopping malls across the GCC countries, Egypt, Indonesia and Malaysia this year.
The announcement was made during the inauguration of LuLu’s 164th hypermarket in Rolla, Sharjah. The new hypermarket, which is also eighth in Sharjah, was opened by Sheikh Salem bin Abdul Rahman Al Qasimi, Chairman of Sharjah Rulers Office.
Elaborating on group’s expansion plans, LuLu Group’s chairman and managing director Yusuffali M.A. said: “We are upbeat about the economy and the vast investment opportunities that lay open in the countries that we are expanding, thanks to the visionary leadership of its rulers and the authorities.”
Out of the 32 hypermarkets and shopping malls, 29 will be in the GCC countries, including 12 in the UAE at various locations of Abu Dhabi, Dubai and northern emirates.
“This includes new projects in Ghadeer, Yas Island, Falah, Sadiyat, Al Rahba, Samkha, Shahama, Reem Island in Abu Dhabi. The GCC is a very important market for us and we will be investing more into the booming retail sector of this great economy. We are proud to reach out to different regions in these countries and I am sure the shoppers are pleased by the new retail experience we have created,” Yusuffali added.
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6 UAE expats in forbes’ billionaires list, and they are all Indians
Five UAE expats have made it into Forbes’ billionaires list for 2019 – apart from the seven Emirati billionaires.
Expats from the sub-continent have made their way to the deserts of Arabia looking for greener pastures for decades, including the UAE, and have made their fortunes in recent decades.
This year, Forbes’ billionaires list comprises of five expats – of Indian origin.
Topping the list is prominent business tycoon, MA Yusuff Ali, who ranks at 394 on the list, but emerges as the richest expat in UAE. The retail king is worth over $4.7 billion.
Next is Micky Jagtiani, who went from being a London cabbie to Gulf billionaire. The retail magnate is worth nearly $4 billion. His overall rank is 478.
A pharma salesman who made billions in healthcare – BR Shetty of NMC Health is worth $2.8 billion. He is famously known for owning two floors in the world’s tallest structure, Dubai’s Burj Khalifa. He is 804 on the list.
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7 Emiratis in forbes’ billionaires list for 2019
Seven Emiratis have been named in the Forbes’ billionaires list for 2019, same as last year, but the value of their assets declined year-on-year due to slowdown in global economy and property prices in the UAE.
The value of total assets of seven Emiratis fell by $4.3 billion or 18 per cent from $24 billion in 2018 to $19.7 billion this year.
Majid Al Futtaim and family, which owns and operates 12 hotels and 22 malls, is the richest Emirati rated by Forbes with assets estimated at $5.3 billion as compared to $4.6 billion last year, an increase of $700 million. In retail, Majid Al Futtaim Group owns brands like Matajer, Centre Centre and Malls of the Emirates among others. It has also invested heavily in hospitality, real estate, entertainment, F&B and other sectors.
Globally, Majid Al Futtaim & Family were ranked 343rd richest by Forbes.
Abdulla bin Ahmad Al Ghurair & family, which has interests in food, construction, real estate and founder of Mashreq bank, is the second richest Emirati with $4.8 billion.
Abdul Aziz Al Ghurair, CEO of Mashreq bank, is the son of Abdulla Al Ghurair while his brother Saif Al Ghurair is also a billionaire.
In 2015, Al Ghurair had pledged one-third of his group’s assets to a foundation that invests in education in the UAE. His foundation aims to help 15,000 Arab students get a secondary and university education by 2025 by providing scholarships. As a result, his fortunes fell from $5.9 billion last year to $4.8 billion year, a decline of $1.1 billion.
Abdulla Al Futtaim & Family, distributor of Toyota and other automobile brands in the UAE, had a net worth of $2.5 billion in March 2019 as compared to $3.3 billion last year.
Al Futtaim also has the license to operate Hertz, Ikea, Toys “R” Us and Zara in the UAE. The retailers anchor its malls, which include Dubai Festival City and Cairo Festival City.
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Driving the future of VR in the GCC
Galadari Automobiles Co. Ltd. has teamed up with Virtuality, a VR and AR agency in Dubai, to put Mazda UAE at the forefront of the virtual reality revolution. It is evident that majority of the automotive customers are collecting information about the cars and dealerships upfront through the Web prior of visiting the showroom.
Galadari Automobiles is now offering a new dimension to its customers as they can virtually walk around the Mazda flagship facility located at Sheikh Zayed Road, Dubai.
The virtual tour is interactive and a customer can click on the cars displayed in the showroom and get 360-degree view of the interior in HD format or click to get the specifications of the car.
A special feature as well is virtually walking through Galadari Automobiles’ impressive workshop and service reception.
Axel Dreyer, CEO of Galadari Automotive Division, said: “By transforming the showroom into an immersive digital world the possibilities of engaging our customers are endless. As a part of our brand value management strategy we are focusing how we can connect premium Mazda cars to an experience, an emotional value.”
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DXB entertainments posts 22% surge in visits
DXB Entertainments, a leading operator of leisure and entertainment destinations, reported on Thursday a revenue growth of two per cent for 2018 and a 50 per cent year-on-year improvement in Ebitda (earnings before interest, tax, depreciation and amortisation) loss due to cost optimisation initiatives.
The Dubai-based company posted 22 per cent year-on-year increase in visits, approaching 2.8 million in total in the first full year of operations, with hotel occupancy at 60 per cent up from 35 per cent in the prior year.
Mohamed Almulla, CEO and managing director, DXB Entertainments, said the company made good progress in improving the financial and operational performance of DXBE’s main asset, Dubai Parks and Resorts. Of the total group revenue of Dh541 million, Dh367 million was generated through the theme parks, Dh92 million through hospitality, Dh30 million through retail and Dh52 million through other revenue streams, including sponsorship, the company said in statement.
“All of our phase one rides and attractions were in place from the start of the year and the Lapit Hotel continues to gain traction. Our cost saving initiatives including renegotiation of key supplier contracts and headcount savings have significantly reduced our cost base and our capital structure has been enhanced through our debt re-alignment and the injection of Dh1.2 billion in the form of convertible bonds from our majority shareholder, Meraas,” said Almulla.