SEC transparency push, PIF stadium raise, and Oman Islamic bank merger

Whose money? — that’s the thread running through this morning’s column, from the US markets regulator wanting to know who’s backing activist campaigns to a scamble that sees everyone from PIF to Oman’s Bank Nizwa wanting to use someone else’s money to achieve a big goal.

UP FIRST: Some of the Gulf’s most discreet investors may soon find themselves in the public eye. The US Securities and Exchange Commission said in an updated interpretation on 13D filings and proxy statements last week that clients backing company-specific activist campaigns must be named in regulatory filings. That pulls into the public eye a category of investor that has long preferred to stay quiet: North America accounts for 50% of MENA+ family-office portfolios, per UBS, much of it routed through “sidecars” — special-purpose vehicles that let an investor bankroll a single boardroom fight, breakup, or forced sale without attaching their name to it.

Being named as the foreign capital behind a management ouster could invite scrutiny in both Washington and the Gulf where private and state interests collide.

PIF-owned Roshn is shopping for outside investors to back a World Cup stadium. The developer has JPMorgan running an equity raise for Aramco Stadium, a 47k-seat venue for the 2034 World Cup in Al Khobar, Reuters reports. The goal: To free up capital for other projects. Investors would buy into a vehicle controlling the stadium’s leasehold in exchange for a long-term share of lease payments from Aramco, which operates the venue on a 25-year concession.

IN CONTEXT- Riyadh still has 15 stadiums and 132 training venues to build or renovate across five cities before 2034.

The move comes as Saudi right-sizes its domestic sports ambitions, bringing private capital in at home and pulling back from expensive offshore ventures like Liv Golf. Kingdom Holding took 70% of Al Hilal off PIF’s hands in April, a US investor bought SPL side Al Kholood last year, PIF has been in discussions over a minority stake in Newcastle United, and the Big Four SPL clubs are working through budget cuts of USD 200-400 mn.

Oman’s Islamic banking sector could be in for its biggest shakeup in years. Bank Nizwa has proposed acquiring Alizz Islamic Bank from Oman Arab Bank at c. 1.2x book value with the goal of folding it into its own operations. Ominvest would come in as a strategic shareholder in the combined lender, taking up to 20% of Bank Nizwa. The goal: create a larger Islamic lender with a broader customer base and stronger capital structure.

Morocco’s state fund is monetizing a chunk of CIH Bank just as the bank raises fresh capital. Caisse de Dépôt et de Gestion (CDG) sold its full direct stake in CIH Bank, according to an AMMC disclosure, in a transaction worth nearly USD 69 mn, by our math. CDG keeps a bit more than 55% through subsidiary Massira Capital Management, stays on the board, and says it won’t sell more CIH stock for six months.

The other half of the story is the capital raise: Morocco’s markets regulator approved a public capital increase of up to MAD 750 mn (c. USD 75 mn) on 8 July, with the subscription window open 15-22 July; a separate MAD 250 mn tranche is reserved for employees. The bank plans to use the proceeds to invest in shoring up its capabilities in tech, data, AI, cybersecurity, and cloud.

SPEAKING OF BANKS: Saudi lenders are heading into 2Q earnings from a record base, and our friends at EFG Hermes see that holding, estimating that combined net profit for listed lenders in the kingdom were up c. 5% y-o-y in 2Q, with lower funding costs and better liquidity carrying margins even as corporate lending slows. The ten listed banks earned USD 6.4 bn in 1Q, up 7.6% y-o-y.

The hedge fund migration continues: Symmetry Investments, the multistrategy firm Feng Guo spun out of Millennium Management in 2014, has secured a DFSA license to operate in the emirate, Bloomberg reports. It follows Citadel, which got its green light in April. Some 258 companies set up a regional presence in DIFC in March alone, up 59% y-o-y, capping a quarter that saw 775 firms register.

Telecom Egypt scrapped the sale of a majority stake in its Regional Data Center Hub to Helios Investment Partners, citing unmet term-sheet conditions, according to a regulatory filing (pdf). The binding offer had valued RDH at USD 230-260 mn for a 75-80% stake after preliminary board approval last September. TE will instead fold the business into a wholly owned subsidiary and back its own data-center bet.

Helios has been pushing deeper into Egypt: It took its investment in Raya Foods from USD 40 mn for 49% to a full buyout, part of a plan to deploy up to USD 250 mn in the Arab world’s most populous country.

ALSO IN EGYPT- The Emerging Africa & Asia Infrastructure Fund committed a USD 30 mn senior secured loan to Hassan Allam Utilities for a 1 GW solar and 660 MWh battery-storage project in Minya, according to a statement, while the EBRD is weighing up to USD 170 mn of senior debt against a USD 764 mn total project cost.

Why it matters: Minya is part of a Hassan Allam-Infinity-Masdar pipeline that stretches to a 10 GW wind project in Sohag and a USD 15 bn green hydrogen venture with BP.

Abu Dhabi’s Bildco completed its takeover of a 50% stake in Dubai-based food trader AG Group, according to an ADX disclosure that didn’t put a value on the transaction. AG trades fresh produce, runs juice production, and operates a logistics network serving Emirates Flight Catering, Americana, and Majid Al Futtaim.

Dubai Investments went from 20% to 80% of Clemenceau Medical Center, buying out Khansaheb Investments and CMC itself, it said in a DFM disclosure. The transaction should close in 3Q and is pending regulatory approval. Dubai Investments first bought in back in 2018, and the jump to control extends a deliberate healthcare accumulation spanning Global Fertility Partners, King’s College Hospital London, Globalpharma, and — via GFN last year — Jeddah’s HealthPlus.

ALSO WORTH KNOWING THIS MORNING-

The PIF-led USD 55 bn take-private of Electronic Arts — the largest leveraged buyout on record — is set to clear its final hurdle, with the EU expected to grant unconditional approval under both its merger and foreign-subsidy reviews by 30 July, Reuters reports.

The Abu Dhabi Investment Council hired Edward Winter, a BlackRock and Macquarie veteran, as chief investment officer for real assets, joining in September to run infrastructure and real estate under executive director Saoud Al Mulla, Bloomberg reports. He’s the latest big-name arrival: Future Fund CIO Ben Samild joined as chief strategist late last year, former Canadian pension boss Alain Carrier is now running private equity, and Future Fund alum Simon Fraser came aboard in April as head of derivatives.

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