Pakistan’s HBL Microfinance Bank, IFC sign $80 million risk sharing agreement

RIYADH: A $48 million investment in Valuable Capital, led by Public Investment Fund-backed ewpartners, will soon expand the Saudi fintech sector, revealed a top official from the funding firm.

Speaking to Arab News on the sidelines of the PIF Private Sector Forum taking place from Feb. 12-13 in Riyadh, co-founder and Managing Partner of ewpartners Jessica Wong explained that the amount would be utilized in the company’s initial public offering route. 

The investment aligns with the Kingdom’s Vision 2030 goals of advancing fintech development and economic diversification, with the industry expected to contribute 4.4 percent to the Kingdom’s gross domestic product, according to a statement. 

Valuable Capital Financial Co., a subsidiary of Hong Kong-based financial institution Valuable Capital Group Ltd, received a license in 2022 from Saudi Arabia’s Capital Market Authority to provide custody, advice, and dealing services in the Kingdom. 

“We invested in this company three and half years ago, and this time, we continue. We launch a new product, targeting $1 billion, and we continue to invest in this company and kick off their IPO procedure,” Wong said. 

“It will be in the company’s IPO route to support the company, not just kick off the IPO procedure in the target market, but also for further expansion in the GCC (Gulf Cooperation Council) region,” she added. 

The co-founder explained the importance of PIF’s support in enabling their role in the local market, citing how their initial partnership laid the foundation for future investments.

“The reason we will be able to play a significant role and also to focus on the most critical sectors here in the local market is because, you know, five years ago, PIF is playing the role as our anchor LP (limited partner) of our first regional focus, a fund here in the GCC with a $400 million and through the fund, we invest a portfolio company like a Valuable Capital,” Wong said.

“Because our performance is to exceed our expectation, we will be able to launch our second fund, which is also targeting $1 billion,” she added. 

During the interview, the managing partner also tackled the rise of fintech in the Kingdom.

“Seven years ago, when we first launched this platform to serve the local growth and expansion, actually we identify ourselves as the co-builder of the local ecosystem, and we have invested across different sectors like digital infrastructure, digital enablement and also cross-border service and beyond,” Wong said.

“Fintech, in our eyes, is one of the most important sectors to support the local ecosystem growth in a more sustainable and more healthy way,” she added.

“This is one of the perfect examples how, as a one of the PIF portfolio, we invest in a particular sector, double the commitment and support its fast growth and also leveraging more FDI (foreign direct investment) and more know-how to support the company, play a bigger role in the global market and build themselves as another successful story,” Wong said.

The managing director used the interview to shed light on some updates regarding the KSA-Sino Logistics Special Economic Zone. 

“This is one of the projects we have been working on for more than five years. Last October, we were able to sign the MOU (memorandum of understanding) together with our strategic partner, which is King Salman International Airport. So, through this framework of our cooperation, we are working very closely with KSIA, the company itself, to make sure that we will be able to build a platform not just for ewpartners portfolio but also for all the ecosystem players, those who are looking to enter Saudi market as a hub or for their global expansion,” she said.

“The pressure is to come from (a) different angle. One of the biggest motivations for us to continue our work and put together our effort is because there is a huge demand here in the market,” the managing partner added.

Wong also said: “So, our project inside the new expansion of the airport will be one of their top choices, and we’ve already received a lot of requests to further discuss when we can launch and upper running service them, and hopefully, we will start the construction this year.”

Now in its third year, the forum — which united more than 90 PIF-backed companies — aims to strengthen supply chains, boost local manufacturing, and accelerate economic diversification under Vision 2030.

SINGAPORE: Oil prices fell on Thursday on expectations that a potential peace deal between Ukraine and Russia would end sanctions that have disrupted supply flows, while crude inventories rose in top producer the US.

Brent futures were down 68 cents, or 0.9 percent, at $74.50 a barrel by 8:15 a.m, while US West Texas Intermediate crude dropped 65 cents, or 0.9 percent, to $70.72.

Brent and WTI fell more than 2 percent on Wednesday after US President Donald Trump said Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky expressed a desire for peace in separate phone calls with him, and Trump ordered top US officials to begin talks on ending the war in Ukraine.

Russia is the world’s third-largest oil producer and sanctions imposed on its crude exports as a result of its invasion of Ukraine nearly three years ago have supported higher prices.

In a note on Thursday, ANZ analysts said oil prices eased on news of the potential peace talks because of “optimism that risks to crude oil supplies would ease,” pointing to the US and EU sanctions that are pushing down Russia’s output.

“Signs of tightening supply have been pushing up oil prices in recent weeks,” they said. “US sanctions on Russian oil companies and vessels are said to have exacerbated the situation.”

A build in crude oil inventories in the US, the world’s biggest crude consumer, also weighed on the market. US crude stocks rose more than expected last week, data from the Energy Information Administration showed on Wednesday.

Crude inventories rose by 4.1 million barrels to 427.9 million barrels in the week ended Feb. 7, the EIA said, beating analysts’ expectations in a Reuters poll for a 3-million-barrel rise.

“This recent downturn in crude oil futures follows a period of consecutive inventory builds,” said Darren Lim, a commodities strategist at Phillip Nova.

“Geopolitical developments, such as proposals to end the conflict in Ukraine, could put crude oil prices under further pressure.”

Trump’s threat of additional tariffs against US trade partners also pressured prices, because of concerns that may reduce economic growth and therefore oil demand.

Trump said he would impose reciprocal tariffs as soon as Wednesday evening on every country that charges duties on US imports, in a move that ratchets up fears of a widening global trade war and threatens to accelerate US inflation.