Latest news with #ADQ
Mada
3 days ago
- Business
- Mada
House approves tax exemptions for UAE sovereign fund
To pave the way for more Emirati investments and secure the capital return on those already made in Egypt, the House of Representatives approved on Sunday a supplementary protocol to the Egyptian-United Arab Emirates tax agreement, granting the Emirati sovereign wealth fund a tax exemption in Egypt. The annex, issued by presidential decree earlier this year, recognizes Egypt's Sovereign Fund and UAE's Abu Dhabi Development Holding Company (ADQ) as 'government institutions' and consequently allows both funds to benefit 'from the tax exemptions stipulated in the agreement.' Upon their approved recognition in the agreement as government bodies, both funds are subject to Article 24, which grants tax exemptions on income generated by the government as well as its affiliated bodies, according to a joint report issued by the House planning and budgeting and Arab affairs committees and reviewed by Mada Masr. The agreement with the UAE, aimed at enhancing investment and trade relations between both countries, was initially approved by President Abdel Fattah al-Sisi in November 2019, under the Presidential Decree 558 of 2020. Emirati investments are crucial for Egypt at a time when the country's economy is deeply affected by Israel's aggression on Gaza and more recent attacks on Iran. Last year alone, ADQ, the Gulf country's largest sovereign fund, invested US$35 billion through the Ras al-Hikma development project in the North Coast. Half of the mega deal's proceeds were allocated at the time to easing the country's growing public debt. ADQ also acquired stakes in three state-owned petroleum companies for $800 million in November last year. Under Article 24's second section, the term 'government' includes 'the government, its agencies and institutions […] as well as any other institution or body mutually agreed upon from time to time by the governments of the two contracting states.' In the past, Egypt signed 60 similar agreements with other countries, some dating as far back as the 1970s, a Finance Ministry official told Mada Masr on condition of anonymity. These agreements are periodically reviewed and re-negotiated by both parties, the official said. When amendments are limited to one or two provisions, they said, they are issued in the form of a protocol and appended to the original agreement. In this case, the protocol was necessary because the original tax agreement was finalized in 2017, before either the Egyptian or Emirati sovereign wealth funds were established. Agreements to avoid double taxation typically require that the benefitting entities be explicitly named. According to the official, the supplementary protocol was added after it became clear during ADQ's financial dealings that the fund was not listed among the beneficiaries of the agreement, as it had not been named or specified in the original text. The exemptions outlined in Article 24 include taxes on three types of income: dividends, capital gain, and interest, a source in the House Planning and Budgeting Committee told Mada Masr. The interest exemption applies to all forms of government lending instruments, such as bonds, sukuks and deposits, among others. Upon the maturity of the financial instrument, the lender or investor receives the principal amount along with interest — or what is considered profit — from which the Finance Ministry deducts a 20 percent tax, as stipulated in the Income Tax Law, which applies to both Egyptians and non-Egyptians. While the government continues to offer incentives, including tax exemptions, to encourage Emirati investment in the domestic economy, it has been less forthcoming with other international entities. In November 2023, Euroclear, a platform for settling securities transactions that Egypt had hoped to join, requested a tax exemption on treasury bills and bonds as a condition for granting access to the government's debt market. The Egyptian government has yet to respond to the request.
Arabian Business
3 days ago
- Business
- Arabian Business
Santos acquisition could make ADNOC one of world's top four LNG producers
Abu Dhabi's ADNOC is likely to become one of the top four producers of liquefied natural gas (LNG) in the world after its recent proposal to acquire Australia's Santos in an all-cash deal of $18.7 billion. ADNOC made the proposal earlier this week through its investment arm XRG, along with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle. Santos would give access to production and export of LNG to the fast-growing Asian markets. ADNOC's Santos deal boosts LNG Speaking to Bloomberg, Bernstein analyst Neil Beveridge said: 'Abu Dhabi is long oil, but is seeking to be a more material player in LNG markets. The acquisition of Santos would help enable ADNOC to become a bigger LNG player in key growth markets in Asia.' The added production capacity, once the deal gets regulatory approvals, will thrust ADNOC into the ranks of oil majors Shell and Exxon Mobil in terms of LNG production and exports, Bernstein analysts told Bloomberg. ADNOC will rival the two Houston-based American oil majors, and only trail Qatar Energy, which currently has a production capacity of 77 million tonnes per annum (mtpa), which it intends to increase to 160mtpa by 2030, and the US-based Cheniere Energy, which has a total production capacity of over 46mtpa. Apart from Santos' acquisition, ADNOC is also expecting its Ruwais LNG Project, which is scheduled to become operational in 2028, to more than double ADNOC Gas' current LNG production capacity to more than 15mtpa. Santos' capacity is set to reach 7.5mtpa once Australia's huge Barossa LNG project starts later this year. In its LNG Outlook 2025, Shell said that global demand is forecast to rise by around 60 per cent by 2040, largely driven by economic growth in Asia, emissions reductions in heavy industry and transport as well as the impact of artificial intelligence. The expected acquisition of Santos will give ADNOC solid access to the Asian market. XRG is the investment unit founded by ADNOC in November with an enterprise value of US$80 billion. It plans to double that in a decade and become ADNOC's international gas and chemicals arm.
Yahoo
5 days ago
- Business
- Yahoo
ADNOC, ADQ, Carlyle Make Joint Offer to Buy Santos
This article was first published on Rigzone here Santos Ltd. said Monday it intends to endorse to shareholders its potential acquisition by a consortium led by Abu Dhabi National Oil Co. (ADNOC). The Australian oil and gas explorer and producer said it had received a non-binding indicative proposal from ADNOC's global investment arm XRG PJSC, sovereign wealth fund Abu Dhabi Development Holding Co. (ADQ) and Carlyle Group. This comes about a year after Santos and compatriot Woodside Energy Group Ltd. ended merger talks. 'The proposal is for the acquisition of all of the ordinary shares on issue in Santos for a cash offer price of US$5.76 per Santos share', which would be adjusted for dividends paid before a final proposal comes into force, Santos said in an online statement. It received the proposal Friday. The price had been increased from two confidential offers of $5.04 per share and later $5.42 per share in March, Santos revealed. As of the close of Australian stock trading Friday, the proposal of $5.76 per share represented a 28 percent premium to Santos' last closing price of AUD 6.96 ($4.53), 30 percent premium to Santos' one-week volume weighted average price (VWAP) of AUD 6.82, 34 percent premium to the one-month VWAP of AUD 6.61, 44 percent premium to the three-month VWAP of AUD 6.19 and 39 percent premium to the six-month VWAP of AUD 6.40, Santos noted. Santos rose 10.92 percent to AUD 7.72 on the Australian Securities Exchange on Monday. The consortium intends to grow Santos' natural gas and liquefied natural gas (LNG) business to support demand in Australia, the Asia-Pacific and beyond, XRG said in a separate press release. Earlier this month XRG announced a goal of building a top-five integrated gas and LNG business with a capacity of 20-25 million metric tons a year by 2035. Santos operates in Australia, Papua New Guinea, Timor-Leste and the United States. Take control of your THOUSANDS of Oil & Gas jobs on Search Now >> 'The Indicative Proposal is subject to the satisfactory completion of confirmatory due diligence by the XRG Consortium and the negotiation and execution of an agreed scheme implementation agreement (SIA) with Santos on customary terms and conditions', Santos said. Santos agreed to allow the consortium to access confidential information. 'Implementation of the scheme under the SIA would be conditional on (among other things) customary approval from the Foreign Investment Review Board, Australian Securities and Investments Commission, National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States', it added. 'The Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding SIA, it intends to unanimously recommend that Santos Shareholders vote in favor of the Potential Transaction, in the absence of a superior proposal' and subject to independent expert opinion, Santos said. Santos said Thursday it has retained a Fitch Ratings of BBB with a stable outlook. Santos has tapped Goldman Sachs and JB North & Co. as financial advisers. Rothschild & Co. is independent board adviser. Herbert Smith Freehills Kramer is acting as legal adviser. The XRG consortium has J.P. Morgan as financial adviser and Linklaters and Allens as legal advisers. In February 2024 Santos and Woodside terminated negotiations on a potential combination. 'Following an initial exchange of information, sufficient combination benefits were not identified to support a merger that would be in the best interests of Santos shareholders', Santos said in a statement then. To contact the author, email More From The Leading Energy Platform: Chevron, Halliburton Develop Intelligent Feedback for Automated Fracking DNO Closes Acquisition of Sval Energi for $450MM TotalEnergies Farms Into 40 Chevron Exploration Leases offshore US TotalEnergies' Saft Scores BESS Job for Gurin Energy in Japan >> Find the latest oil and gas jobs on << Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Arabian Business
5 days ago
- Business
- Arabian Business
ADNOC proposes an Australian record acquisition price for Santos
Abu Dhabi's ADNOC, through its investment arm XRG, along with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, has made the largest all-cash corporate buyout in Australian history to acquire all shares of Santos, the country's second-largest gas and energy company. After rejecting two previous offers from the XRG consortium, Santos stated that it intended to support the new, all-cash US$18.7 billion non-binding indicative proposal. ADNOC makes largest Australian buyout deal The new XRG offer is for US$5.76 (A$8.89) per share was a 28 per cent premium to Santos' closing price on Friday. Taking into account net debt, the deal gives Santos an enterprise value of A$36.4 billion. FactSet data said if the deal happens, it would make XRG's acquisition the largest all-cash corporate buyout in Australian history. According to the data, it would be the third-largest takeover in Australian history. The largest was Sydney Aviation Alliance's 100 per cent acquisition of Sydney Airport in 2022 valued at approximately AU$32 billion (US$20.77 billion). The earlier proposals from the consortium were for US$5.04 and US$5.42 per share in March this year. ADNOC launched XRG, an investment company focusing on lower-carbon energy and chemicals, in November last year, valued at more than US$80 billion. Santos, the second largest energy company in Australia after Woodside Energy, has been a takeover target in the past, having rejected a US$10.8 billion offer from private equity-backed Harbour Energy in 2018. It was also in talks with Woodside before the negotiations broke down. In a statement, the XRG-led consortium said it 'aims to build on Santos' strong and longstanding legacy as a trusted and reliable energy producer, unlocking additional gas supply for Santos' customers, and strengthening domestic and international energy security. 'The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business.' The XRG consortium stated that it was negotiating to conduct due diligence with Santos on an exclusive basis before formalising the offer, which would require at least 75 per cent support from Santos' investors. The Santos Board confirmed that if an agreement is reached on acceptable terms of a binding scheme implementation agreement (SIA), it intends to recommend the proposal to its shareholders. In a disclosure with ASX (Australian Securities Exchange, Santos said: 'The Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation agreement, it intends to unanimously recommend that Santos Shareholders vote in favour of the potential transaction, in the absence of a superior proposal.' Santos shares have risen more than 11 per cent to A$7.72 on Monday morning following the announcement. It reached a day-high of A$8.02 (up 15.2 per cent), but retreated slightly. Santos's acquisition will give the XRG-led consortium control of two Australian liquefied natural gas operations – Gladstone LNG on the east coast and Darwin LNG in the north, as well as stakes in PNG LNG and the undeveloped Papua LNG. The company is also developing an oil project in Alaska, Pikka, which is due to start producing in mid-2026. Santos sold 5.08 million tons of LNG last year, with more than 60 per cent of that coming from Papua New Guinea. Due to Santos' immense value and importance to the domestic market, as well as its involvement in Papua New Guinea, experts anticipate that regulatory approvals will be complex and lengthy. Santos said the deal required approval from Australia's Foreign Investment Review Board (FIRB), Australian Securities and Investments Commission (ASIC), National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States (CIFIUS).
Al Etihad
01-06-2025
- Business
- Al Etihad
UAE startup ecosystem climbs to 21st in global rankings
1 June 2025 23:51 KHALED AL KHAWALDEH (ABU DHABI)The UAE has climbed two spots in the latest Global Startup Ecosystem Index 2025, ranking 21st globally and securing its position as the top-ranked Arab country for entrepreneurship. This marks the sixth consecutive year of advancement for the UAE in the global index, reinforcing the nation's steady rise as a premier destination for annual index, published by global research platform StartupBlink, evaluates over 1,000 cities and 100+ countries based on ecosystem strength, infrastructure, startup activity and 2020, the UAE has rocketed up the rankings, moving from 43rd to 21st in just five years. A leap that, the report says, was driven by aggressive investment, regulatory reform and public-private collaboration. The UAE also remains the number one startup ecosystem in the Arab League, although the competition is UAE's ecosystem is especially strong in fintech, where it ranks 14th globally, and Blockchain, where it holds an impressive 7th position worldwide. The report said these sectors have been key to establishing the country's digital economy as one of the most dynamic in the MENA continued to lead the UAE's innovation surge, ranking 44th globally, a jump of six places from last year. Over the past six years, Dubai has climbed an astonishing 95 spots, thanks to aggressive funding initiatives like the Dubai Future District Fund and infrastructure hubs such as Dubai Internet Abu Dhabi is quickly closing the gap. The capital surged 20 spots to 175th globally, driven by a nearly 50% ecosystem growth rate. The report noted Initiatives like Hub71 and ADQ's DisruptAD for their vital role in fostering a competitive ecosystem, especially in biotech and also made headlines, recording the biggest jump among UAE cities. It soared 98 spots to 762nd place globally, with a growth rate of nearly 46% - a sign of the emirate's emerging potential. The report said institutions like the Sharjah Entrepreneurship Centre (Sheraa) and the Sharjah Research, Technology and Innovation Park are key to this high-profile startups were highlighted as examples that cemented the UAE's credibility on the global stage. Careem, the region's first unicorn, set the precedent with its $3 billion acquisition by Uber. Others like Kitopi, Tabby, G42 and Andalusia Labs have joined the unicorn club, while global tech firms such as Telegram have chosen to relocate their headquarters to Dubai, which the report said underscored the UAE's strategic the report highlighted the introduction of founder-friendly policies including long-term Golden Visas, flexible business licensing, and regulatory reforms like the updated bankruptcy law as key to helping attract and retain talent. It noted that even the introduction of a 9% corporate tax in 2023 had not seemingly deterred investment, with the rate still among the most competitive globally. The report said that despite challenges such as the high cost of living and legacy regulations, the UAE's startup sector shows no signs of slowing.
