Stop Press – AIBC Africa takes place in Cape Town between 11-13 March !
The post Decline of US Dollar and rise of Bitcoin appeared first on AIBC.
]]>The radical Project 2025 policy plan has set bitcoin on a collision course with gold. Yellen fears that US financial sanctions will diminish the dollar’s role globally as Russia promotes the use of bitcoin and other cryptocurrencies. “The more we have used sanctions, the more countries look for ways to engage in financial transactions that don’t involve the dollar,” Yellen explained to U.S. lawmakers on the House financial services committee.
BlackRock’s CEO, Larry Fink, who led the successful campaign to bring bitcoin spot exchange-traded funds (ETFs) to Wall Street, has issued a warning about the rapid growth of the U.S. debt pile. He expressed concern about the burden this massive spending, which we can’t afford, is placing on future generations. Fink called for global economic growth and strategies to minimize the impact of the deficit on the economy.
Bank of America analysts have warned that the U.S. debt load is set to increase by $1 trillion every 100 days, which could fuel a surge in bitcoin prices. Meanwhile, BlackRock analysts have cautioned about an unprecedented scenario that could impact the bitcoin price and crypto market as the Federal Reserve and central banks are forced to keep interest rates higher than pre-pandemic levels to tackle persistent inflationary pressures.
Fink, who once labelled bitcoin as “an index of money laundering,” has now acknowledged it as a legitimate financial instrument. He believes it is an investment tool for those who fear countries are debasing their currency through excessive deficits. BlackRock’s acceptance of bitcoin is widely credited with powering the bitcoin price and crypto market rebound over the past year.
The U.S. has imposed strict financial sanctions on Russia and Iran in recent years, leading to accusations of weaponizing the dollar and pushing the so-called Brics group of emerging countries away from the western financial system. In response, Russia’s central bank has encouraged the use of bitcoin and crypto to counter Western sanctions.
As the U.S. election in November approaches, some bitcoin and crypto traders are betting that the bitcoin price will reach an all-time high. Geoffrey Kendrick, Standard Chartered’s head of forex and crypto research, predicts a fresh all-time high for bitcoin in August, followed by $100,000 by U.S. election day. He expects the bitcoin price to reach $150,000 by the end of 2024 and hit $200,000 before the end of 2025, giving bitcoin a market capitalization of around $4 trillion.
Trump, who has emerged as the preferred candidate for the bitcoin and crypto community, promises to protect people’s right to hold bitcoin. This stance starkly contrasts with the Biden administration’s anti-crypto stance, further fuelling the crypto revolution.
The post Decline of US Dollar and rise of Bitcoin appeared first on AIBC.
]]>The post Why prop traders should closely watch Shein’s potential IPO appeared first on AIBC.
]]>The following are essential points to watch out for to make an informed investment decision regarding Shein’s potential IPO.
| ?? | Key Points | ?? |
|---|---|---|
| ?? | Company Reputation: Evaluate Shein’s product quality and customer satisfaction to ensure sustained trust and sales. | ?? |
| ?? | IPO Rationale: Understand Shein’s reasons for going public, particularly the implications of “enhanced transparency.” | ?? |
| ?? | Supply Chain Ethics: Verify Shein’s measures to address forced labor allegations and ensure ethical sourcing practices. | ?? |
| ?? | Corporate Governance: Assess Shein’s governance structure, ensuring equal voting rights and transparency in its corporate operations. | ?? |
| ?? | Valuation and Growth Strategy: Analyze Shein’s realistic growth prospects, valuation, and potential regulatory risks. | ?? |
Firstly, the company’s reputation is a crucial factor. Shein’s executive chair, Donald Tang, needs to clarify why the company wants to go public, as he has downplaying some of his reasons and insists “enhanced transparency”. Supply chain concerns, particularly allegations about forced labour, need to be addressed. Shein has gained popularity on social media platforms like TikTok, where videos of shoppers displaying their purchases can reach thousands of views. However, there are also videos comparing the promised products to the disappointing ones delivered.
Shein denies these allegations by unsatisfied customers and claims to have severed ties with non-compliant suppliers in 2023. Governance concerns also exist, related to Shein’s corporate structure and expected small free float. Tang could give confidence to investors by ensuring equal voting rights for all shares. This discrepancy between expectation and reality is a red flag, as it could potentially lead to a loss of customer trust and subsequently, a decrease in sales.
Secondly, Shein’s reasons for going public need to be scrutinized. Donald Tang, has not provided an explanation yet how an IPO to raise capital can provide an exit for early investors. Instead, he has focussed on the benefits of ‘enhanced transparency’.
A prop trader would most likely want to understand what this means in practical terms. Does ‘enhanced transparency’ imply more rigorous financial reporting, or does it suggest a shift in corporate governance? Shein’s valuation and growth strategy also need to be evaluated. The company promotes itself as an AI-powered tech play, but this seems unrealistic. Its reported target valuation of about ￡50 billion suggests it might benchmark itself closer to Zara-owner Inditex.
Thirdly, supply chain concerns have been raised by some fund managers. Shein has faced allegations about forced labour in its cotton supply chain, which it denies. In 2023, it reportedly severed ties with a small number of suppliers in China that did not meet its standards. However, more frequent, independent audits will be necessary to address these concerns. Most prop traders would want to see concrete steps taken by Shein to ensure ethical sourcing and production.
Fourthly, there are governance concerns related to Shein’s corporate structure. The company’s ultimate parent is registered in the Cayman Islands, and there are expectations of a small free float. Tang could give confidence to investors by ensuring that all shares carry equal voting rights. A dual-class structure that entrenches the rights of pre-IPO investors could be seen as unhelpful and unnecessary.
Lastly, Shein’s valuation and growth strategy need to be evaluated. The company has been promoting itself as an AI-powered tech play at retail conferences, suggesting a tech-style multiple. However, this seems unrealistic. Its reported target valuation of about ￡50 billion suggests it might benchmark itself closer to Zara-owner Inditex, which trades on 23 times forward earnings. Even then, a decent discount would be required due to regulatory risks. Some countries are trying to close tax loopholes used by Shein and others that ship lots of small packages direct to customers. Shein insists its growth doesn’t rely on these loopholes remaining open.
For a successful London debut, Tang must bridge the gap between how Shein sells itself and what some investors, including prop traders, believe it will deliver. This involves addressing concerns about product quality, supply chain ethics, corporate governance, and valuation.
As a prop trader will need to look for clear, concrete actions in these areas before considering an investment in Shein’s potential IPO.
A decent discount would be required due to regulatory risks.? For a successful IPO, Tang must bridge the gap between how Shein sells itself and what investors believe it will deliver. Tang will need to convince investors that Shein does not rely on tax loopholes only.
The post Why prop traders should closely watch Shein’s potential IPO appeared first on AIBC.
]]>The post Cryptocurrency and prop trading: exploring the new norm for Gen Z appeared first on AIBC.
]]>Generation Z, those born between 1996 and 2012, are embracing trading and investing at an earlier age than any previous generation. Cryptocurrency often serves as an entry point to trading, marking a significant departure from conventional investment norms. Giacomo Giglio, a 20-year-old trader and investor, provides a unique perspective into this trend.
Giglio was introduced to trading by a friend and quickly found the topic fascinating. He was surprised that investments and trading were not part of the general secondary education curriculum. Unlike previous generations, young people today are not waiting until they are older to invest their money. Gen Z, in particular, is taking a proactive approach to investing, with approximately 56 percent of those under 25 already participating in investment activities. Impressively, 80 percent of them began saving and investing before they turned 20.
Giglio dedicates a great deal of time to understanding market dynamics, forecasting price movements, and conducting essential analysis and research. He appreciates the process of improving his financial acumen, as it enables him to effectively manage his finances and capitalize on opportunities that arise.
Gen Z’s investing is attributed to the easy access to financial information through social media and the emergence of investment apps and cryptocurrencies. Social media, especially YouTube, plays a pivotal role in providing financial guidance for Gen Z investors. Not surprisingly, “fear of missing out” is a significant driving force behind this trend.
As a young trader and investor, Giglio has discovered a community of Gen Z traders, both in Malta and internationally. Within these hubs, young traders engage in virtual discussions, share insights, offer advice, and conduct trading activities collectively. Giglio recognizes the value in networking with fellow traders. “Trading is not confined to a single approach,” he says, “and these interactions serve as valuable opportunities for learning and gaining experience from a number of diverse perspectives.”
Giglio recognizes that there is no single, fixed method in trading. Particularly during the initial stages, experimentation plays a crucial role until an individual discovers their own distinct style and approach. He acknowledges that the crypto and digital asset sector has faced many challenges and this included the collapse of FTX. However, Giglio remains optimistic, believing that there will be a strong resurgence which will be followed by a very rapid universal expansion.
Regarding the regulation of the crypto market, Giglio firmly advocates that it is necessary. He acknowledges that regulating such a dynamic space will be challenging, but believes that these challenges should not deter the pursuit of necessary regulation. Proactive regulation, combined with clear guidelines when needed, is essential for progress in the industry.
As for his future career aspirations, Giglio expresses a desire to become a lawyer, following in the footsteps of both his parents. However, he remains open about how he will develop his trading career, either as a sideline or a full-time endeavour. He intends to continue trading in the background while monitoring the sector’s growth, which he believes will continue to expand and become a more popular career option in the years to come.
The post Cryptocurrency and prop trading: exploring the new norm for Gen Z appeared first on AIBC.
]]>The post United Fintech pioneers digital transformation in Dubai appeared first on AIBC.
]]>The UAE is acknowledged as a vital centre for financial technology, and United Fintech’s move underlines the country’s significance in this field. The company is poised to cater to the growing market demand in the region, a distinctive intersection where Western and Eastern influences converge.
United Fintech’s Digital Transformation platform, which is industry-neutral, is engineered to expedite banks and Financial Institutions’ access to a variety of innovative fintechs specializing in capital markets. The company is already experiencing considerable interest in the region, especially for Athena’s comprehensive Order Management System/Portfolio Management System (OMS/PMS) solution.
Christian Frahm, the CEO of United Fintech, (photo above), expressed his excitement about the expansion, stating that it signifies a strategic progression for the company. It expands the global reach of their industry-neutral Digital Transformation platform and caters to the escalating demands of the financial services industry.
Rasmus Bagger, the CCO of United Fintech, reiterated Frahm’s sentiments, emphasizing the substantial opportunity this expansion offers for the company. He conveyed his enthusiasm about expanding their client base and team in the region and playing a pivotal role in linking Financial Institutions with state-of-the-art technology providers, all within a unified platform.
Raj Rathor, the Head of EMEA Sales at Athena, also shared his thoughts on the development. He pointed out that United Fintech’s establishment in the DIFC considerably widens Athena’s prospects and augments their capacity to extend their services to drive technical transformation and enhance the operating models of asset managers and hedge funds in the region.
United Fintech, established in 2020, boasts a workforce of over 160 individuals across eight countries, including the UK, Denmark, Spain, and the USA. Its platform offers access to a wide array of products from five trailblazing capital markets software companies: Athena, CobaltFX, FairXchange, Netdania, and TTMzero.
United Fintech recently announced an executive reshuffle and welcomed Danske Bank into its circle of institutional investors. Danske Bank procured a stake in the company, which was founded by Christian Frahm. The firm’s mission is to serve as the backbone of finance in the digital era, accelerate innovation, and unite the finest fintech founders on a single platform by acquiring startups, optimizing their business, and incorporating them into a fintech one-stop-shop for banks, brokers, hedge funds, and asset managers.
United Fintech aims to promote an efficient symbiosis between customers, banks, and technology, resulting in sophisticated solutions for automating workflows, simplifying onboarding, delivering efficiencies, and reducing costs. Other significant stakeholders in the company include BNP Paribas and Citi.
The post United Fintech pioneers digital transformation in Dubai appeared first on AIBC.
]]>The post Forex market dynamics and the Crown Castle case appeared first on AIBC.
]]>The lawsuit alleges that the agreement, which also provided Elliott directors with committee slots, was a preferential deal designed to deter Elliott from potentially ousting the entire board. Boots Capital, holding a $100 million stake, contrasts with Elliott’s $2 billion investment and has seen its director nominees dismissed by the board.
This case highlights the increasing power of activist investing to drive substantial corporate changes without a complete control premium paid to all shareholders. The practice, while often mutually beneficial, is now facing increased examination of its intricacies.
Elliott, typically unyielding, has surprisingly amended its agreement, allowing Crown Castle’s board more leeway against Elliott’s preferences. This move, seen as a partial victory for Boots Capital, aligns with a recent Delaware court decision limiting board members’ contractual commitments to influential individual shareholders.
As Crown Castle and Elliott uphold the fairness of their deal, they prepare for a shareholder meeting that will test their respective strategies against each other. The challenge lies in persuading the vast majority of unaffiliated shareholders, a task less costly but more arduous than a complete acquisition.
The unfolding events of the Crown Castle/Elliott case reflect a broader trend of increased vigilance over activist investors’ interactions with corporate boards. Stakeholders are calling for more transparency and equity in such agreements, signalling a shift in the landscape of corporate governance and shareholder activism.
Research indicates that activist investors like Elliott Management play a pivotal role in the forex market, where their decisions can influence currency valuations and market stability. Their actions, while focused on individual companies, have far-reaching implications for investors and traders worldwide, underscoring the inter’connectedness of global financial markets and the importance of sound corporate governance practices.
STOP PRESS – AIBC Americas takes place in Brazil between 23-25 April?
The post Forex market dynamics and the Crown Castle case appeared first on AIBC.
]]>The post Victor Jacobsson’s strategic investments in Klarna appeared first on AIBC.
]]>Jacobsson, (pictured above), who co-founded the $6.7bn fintech Swedish buy now, pay later pioneer Klarna in 2005 alongside the group’s current leader Sebastian Siemiatkowski, left the company in 2012. Despite his departure, Jacobsson has remained one of the most active investors in Klarna, leveraging his “right of first refusal” to purchase Klarna stock in the secondary market through special purpose vehicles.
The exact size of Jacobsson’s ownership remains unclear due to his shares being held through various corporate entities. However, it is estimated that his stake is worth hundreds of millions of dollars and may even surpass that of CEO Sebastian Siemiatkowski’s roughly 8 percent stake.
Jacobsson’s influence at Klarna has recently come under scrutiny after Sequoia Capital, Klarna’s largest investor with a 22 percent stake, failed to remove venture capital group’s former leader Michael Moritz as chair. The conflict highlighted the tension about the influence of certain shareholders over Klarna’s corporate governance, with special voting rights resembling a “shadow governance structure that impeded the ability of the board”.
As Klarna plans to set up a new UK holding company to simplify its corporate structure and switch its domicile ahead of an expected New York listing, there may no longer be the same special rights for certain investors under new shareholder agreements.
Klarna, founded in 2005 in Stockholm, Sweden, aimed to simplify online shopping. Over the years, it has evolved into one of Europe’s largest fintechs with 90,000,000 customers, over 200,000 merchants, and at least 1,000,000 transactions a day. Klarna’s innovative approach, from pioneering payment solutions to harnessing the power of affiliate marketing, positions it at the forefront of the fintech revolution.
Klarna’s unique marketing strategy, which focuses on offering an end-to-end inspirational and “smoooth” shopping journey, has been a key driver of its exponential growth. As a global leader in the ‘buy now, pay later’ space, Klarna continues to re-imagine the payments and shopping experience, providing value to retailers and shoppers worldwide.
Despite recent boardroom disputes, Klarna’s journey from a fintech pioneer to a global banking powerhouse is a testament to its innovative approach and strategic positioning in the fintech landscape.
The post Victor Jacobsson’s strategic investments in Klarna appeared first on AIBC.
]]>The post Binance faces $10 billion penalty from Nigeria for forex manipulation claims appeared first on AIBC.
]]>Two executives from Binance were arrested earlier this week in Nigeria. However, Binance has yet to respond to these allegations. Nigeria, being Africa’s largest economy, is also one of the world’s biggest markets for cryptocurrency.
The Central Bank Governor of Nigeria, Olayemi Cardoso, (picutred above), stated that Binance Nigeria had moved $26 billion worth of untraceable funds. “These allegations are weighty,” said Tilewa Adebajo of CFG Advisory. “That’s a huge sum – even more than the annual Nigeria diaspora remittances of $24 billion.”
Cryptocurrency transactions equivalent to about 12 percent of Nigeria’s total income, or GDP, took place in the year to June 2023. While cryptocurrencies are not illegal in Nigeria, firms must register to operate there. A special advisor to Nigeria’s president revealed that Binance had failed to do this.
President Bola Tinubu, after assuming office last year, scrapped the policy of pegging the naira to the dollar, allowing traders to buy and sell the currency at market-determined rates. However, special advisor Bayo Onanuga stated that the recent collapse was not the result of normal activity.
Binance, one of the most popular cryptocurrency platforms in the country, along with several other firms, have been suspended in recent weeks in an attempt to halt the slide of the naira. This has caused frustration among Nigerian users.
The government also claims that cryptocurrency is used for money-laundering and funding terror. A recent report by the Nigerian Financial Intelligence Unit stated that the “anonymity and privacy inherent in the cryptocurrency system are what draw individuals, particularly those with illicit intentions, towards its use.”
In a bid to curb foreign-currency trading, Nigeria has closed thousands of bureaux de change. The Central Bank has been under pressure to stabilize the national currency, the naira, which currently exchanges at 1,595 naira to US$1, compared to about 460 a year ago.
The collapse of the naira has exacerbated the cost-of-living crisis in Nigeria. High prices for food, fuel, and transport have led to protests in recent weeks.
| African country | Environment for Crypto |
|---|---|
| Nigeria | With the highest online search volume for Bitcoin in the world, Nigeria has embraced cryptocurrency. Despite the ban by the country’s apex bank, more than 10 million people in Nigeria own cryptocurrency. |
| Kenya | With an estimated 4.5 million people owning cryptocurrency, leads the way in terms of holdings and blockchain-related transactions. |
| South Africa | Over 4.2 million people in South Africa own cryptocurrency. It’s highly preferred to banks, largely because of higher yields. |
| Ghana | Follows Nigeria as one of the Western African countries with massive adoption of Bitcoin. |
| Tunisia | Adoption of cryptocurrency by its citizens is neither regulated nor illegal. |
| Sierra Leone | Has shown progressive movement on the front of cryptocurrencies. |
| Senegal | Has shown progressive movement on the front of cryptocurrencies. |
| Central African Republic | Has shown progressive movement on the front of cryptocurrencies. |
| Morocco | Morocco has shown progressive movement on the front of cryptocurrencies. |
| Cameroon | Actively involved in crypto operations. |
| Zimbabwe | Actively involved in crypto operations. |
| Ethiopia | Actively involved in crypto operations. |
| Egypt | Actively involved in crypto operations. |
| Botswana | Actively involved in crypto operations. |
| Uganda | Actively involved in crypto operations. |
Several African countries have shown a?favourable regulatory environment?for cryptocurrencies. This includes nations such as Nigeria, Kenya, South Africa, Ghana, Tunisia, Sierra Leone, Senegal, Central African Republic, Morocco, Cameroon, Zimbabwe, Ethiopia, Egypt, Botswana, and Uganda. These countries have either implemented progressive regulations, or lack restrictive laws, thus facilitating the growth and operation of cryptocurrency-related activities.
Stop Press – AIBC Africa takes place in Cape Town between 11-13 March !
The post Binance faces $10 billion penalty from Nigeria for forex manipulation claims appeared first on AIBC.
]]>The post Forex implications of the UAE Egypt Ras al-Hikma development project appeared first on AIBC.
]]>| Key Takeaways | Details for Investors |
|---|---|
| Largest foreign direct investment in Egypt’s history | The deal marks the largest FDI in Egypt, potentially attracting over $150 billion |
| Boost to Egypt’s economy and foreign reserves | Expected to alleviate Egypt’s economic struggles and bolster foreign currency reserves |
| Integral part of North Coast Urban Development Plan | Forms a crucial component of a comprehensive urban development strategy for the region |
| Diverse development scope | Encompasses residential, tourism, industrial, financial, and logistical facilities |
| Strategic partnership between Egypt and the UAE | Demonstrates a strong alliance between the two nations, fostering political and economic support within the region |
The backdrop to this development is Egypt’s ongoing economic crisis, characterized by a chronic scarcity of foreign currency inflows. This situation has led to a sharp depreciation of the Egyptian pound against the dollar in informal exchange markets. Amidst this challenging economic landscape, the Egyptian government has been actively seeking ways to attract foreign investment and boost its forex reserves.
The Ras al-Hikma project, described by Prime Minister Mostafa Madbuly as the “largest foreign direct investment deal” in Egypt’s history, is a strategic response to these economic challenges. The project, which will span an area of 170 million square kilometres on the northwest coast, is expected to bring in a total of $150 billion in foreign investments.
The forex implications of this project are manifold. Firstly, the UAE will pay $24 billion of the upfront investment in liquid foreign currency. This influx of foreign currency will provide a much-needed boost to Egypt’s forex reserves and could potentially stabilize the Egyptian pound’s exchange rate.
Secondly, the UAE will convert $11 billion of its existing deposits in the Central Bank of Egypt into investments for ADQ to use in establishing the project. This conversion of deposits into investments will not only reduce Egypt’s debt repayment burden but also inject additional foreign currency into the economy.
The project is also expected to generate substantial forex inflows in the long run. With plans for residential areas, hotels, resorts, a free zone for light and tech industries, a financial and business district, and an international marina for yachts and cruise ships, the city is poised to attract foreign tourists and businesses, thereby earning valuable foreign currency.
Moreover, the establishment of an international airport south of the city will further facilitate foreign tourism and trade, leading to increased forex earnings. The Egyptian government’s 35 percent stake in the project also ensures that a significant portion of these forex inflows will directly benefit the country’s economy.
In conclusion, the Ras al-Hikma project represents a strategic move by Egypt to attract foreign investment, boost its forex reserves, and stabilize its currency. By leveraging the power of forex, Egypt is not only addressing its immediate economic challenges but also laying the foundation for long-term economic growth and stability.
Stop Press – AIBC Africa takes place in Cape Town between 11-13 March !
The post Forex implications of the UAE Egypt Ras al-Hikma development project appeared first on AIBC.
]]>The post Abu Dhabi ADQ invests $35 billion in Egyptian tourism and fintech sectors appeared first on AIBC.
]]>The investment is made by ADQ, a state investment vehicle of Abu Dhabi, which aims to establish a tourism and fintech centre? in the Ras al-Hekma area. This initiative is pivotal to unlocking a long-stalled agreement with the International Monetary Fund (IMF) for a loan package expected to exceed $10 billion, according to analysts.
For nearly two years, Egypt has been struggling with a severe foreign currency shortage. The IMF has conditioned its loan on Cairo allowing the currency to transition to a flexible exchange rate. However, the authorities have been hesitant to let market forces determine the value of the Egyptian pound, as the central bank lacked sufficient foreign exchange buffers to prevent a sharp depreciation against the dollar.
The official rate has been maintained at approximately E￡31 to the dollar since March 2023, but it has been trading on the black market at more than double that value. “This deal is the missing piece of the puzzle to bring the IMF agreement over the line,” said Mohamed Abu Basha, head of macroeconomic analysis at EFG-Hermes, a Cairo-based regional investment bank. “This will help resolve the immediate foreign exchange problem and provide enough foreign currency liquidity to move towards a float.”
Since 2016, Egypt has been compelled to approach the IMF for multiple loans and is its second-largest debtor after Argentina. Over the past decade, the country has invested billions in infrastructure projects overseen by the military. Critics argue that while some of the projects address real needs, others, such as a new administrative capital, could have been postponed.
Mostafa Madbouly, the Prime Minister, announced the deal with ADQ to develop the 170 sq km coastal area on Friday. The first tranche of investment, due in a week, will be a $15 billion payment, including $5 billion from a prior deposit by the United Arab Emirates in the Central Bank of Egypt. The remaining funds will be invested within two months and will include $14 billion of fresh money and $6 billion from Emirati deposits in the central bank. These will be converted to Egyptian pounds and invested in the project.
Goldman Sachs noted on Friday that the “magnitude of the investment is far greater than what we had been expecting and the timing far sooner”. It added that if the financing came through as planned, “we believe this (along with an upsized IMF program) should provide ample liquidity to cover Egypt’s financing gap over the next four years”.
Gulf states have provided crucial financial support to Egypt in recent years because they fear that the economic collapse of such a large country would further destabilize the region. When Russia invaded Ukraine in 2022, the UAE, Saudi Arabia, and Qatar deposited $13 billion in Egypt’s central bank following an exodus of foreign bond investors in a flight to safety.
ADQ, established in 2018, is an Abu Dhabi-based investment and holding company. It has a broad portfolio of major enterprises spanning key sectors of the UAE’s diversified economy. These sectors include energy and utilities, food and agriculture, healthcare and life sciences, mobility and logistics, fintech and financial services, tourism, entertainment and real estate, and sustainable manufacturing.
ADQ’s investment strategy is underpinned by a fundamentally driven, high conviction approach to invest across multiple sectors and geographies to achieve superior risk-adjusted returns for its investors1. The funds invest across the capital structure and asset life cycle, covering early-stage venture capital to growth and scale-up equity, through to mature and established businesses.
In terms of specific investments, ADQ has made significant strides. For instance, it has acquired stakes in retail group LuLu Group International, Al Dahra Agricultural Company, Aramex, and Louis Dreyfus Company. As of late 2023, ADQ had $159 billion in total assets.
Recently, ADQ and the International Holding Company (IHC) announced their intention to create the region’s largest multi-asset class investment manager, headquartered in Abu Dhabi. This new investment manager plans to launch a series of multi-asset class funds to invest in Private Equity, Venture Capital, Credit, and Public Equities.
In the context of Egypt, ADQ has agreed to invest $35 billion in a large development site on Egypt’s northwestern Mediterranean coast. This investment aims to build a tourism and financial centre in the Ras al-Hekma area, which is central to unlocking a long-stalled agreement with the IMF for a loan package.
Overall, ADQ’s investments reflect its strategic focus on delivering financial returns and impact for Abu Dhabi, contributing to the growth and diversification of the UAE’s economy.
The post Abu Dhabi ADQ invests $35 billion in Egyptian tourism and fintech sectors appeared first on AIBC.
]]>The post Nigeria restricts crypto access to stop currency speculation appeared first on AIBC.
]]>The Nigerian Communications Commission (NCC), the telecoms regulator, ordered telecoms companies to limit consumer access to websites of platforms like Binance, Coinbase and Kraken, according to sources. Users reported difficulties accessing some sites on Thursday.
The government is also trying to reform its complex system of multiple exchange rates and end its currency peg, which has been in place for years. It has devalued its currency twice in eight months. The naira hit 1,600 to the dollar on Wednesday, compared to less than 900 in January, according to LSEG data.
Cryptocurrency exchanges have become important sources of unofficial market prices for the naira. Binance’s prices often serve as a reference for local foreign currency exchange rates. Traders also use the platform to trade between the naira and tether, a stablecoin pegged to the US dollar.
Bayo Onanuga, (above in photo), a special adviser to President Bola Tinubu, accused Binance on social media website X of “blatantly” setting the exchange rate for Nigeria and taking over the Central Bank of Nigeria’s role as the main currency rate setter. He called for a ban on crypto in the country.
A spokesperson for Binance said “some users in Nigeria are experiencing issues accessing binance.com, as well as other platforms in the industry,” adding that users’ funds are secure. The NCC, Coinbase and Kraken did not respond to requests for comment.
Nigeria was the second-largest market for cryptocurrency in terms of private wealth last year, after India, according to Chainalysis. However, analysts said interest in digital assets was mainly among young investors who have lost faith in the naira as a store of value.
“Crypto isn’t even a conversation for people who aren’t tech savvy,” said Eresi Uche, an associate at law firm Cytowski & Partners.
Nigeria is Africa’s largest economy and the most populous country in the continent, with about 200 million people. It is rich in natural resources, especially oil and gas, but also faces many challenges, such as poverty, corruption, insecurity and poor infrastructure.
The country has been struggling with a currency crisis since 2014, when the price of oil, its main export, collapsed. The government has tried to maintain a fixed exchange rate for the naira, but this has led to a shortage of foreign currency, a parallel market and a loss of confidence in the official rate.
The government has also faced criticism for its handling of the coronavirus pandemic, which has worsened the economic situation. In October 2020, protests against police brutality erupted across the country, sparked by the #EndSARS movement. The protests were met with violence by the security forces, resulting in dozens of deaths and injuries.
The government has been trying to implement reforms to boost the economy and attract investment, including in the digital sector. It has shown interest in regulating and supporting cryptocurrency, which is seen by some as a way to bypass the traditional financial system and access global markets. However, the recent restrictions on crypto access suggest a change of stance, as the government tries to protect the naira and curb speculation.
Stop Press – AIBC Eurasia takes place in Dubai 25 – 27 February !
AIBC Africa takes place in Cape Town between 11-13 March !
The post Nigeria restricts crypto access to stop currency speculation appeared first on AIBC.
]]>