Adnoc’s transformation from a “sleepy state company” to a global energy giant with USD 150 bn budget got a lengthy feature in Bloomberg after the firm revised upwards its offer for German chemical company Covestro, following lengthy negotiations. The transaction, if closed, would cement Adnoc’s credibility as an investor and provide impetus for more cross-border transactions, sources told the business information service.

Also gaining more and more credibility: local banks. With “ample liquidity on their balance sheets,” local banks are stepping up their involvement in financing local transactions in the Middle East, S&P analyst Puneet Tuli told Bloomberg. Local lenders are offering competitive terms that rival those of global financial giants — in addition to leveraging close ties with local businesses.

The most recent example: Four Emirati lenders — our friends at Mashreq and First Abu Dhabi Bank, as well as Abu Dhabi Commercial Bank and Dubai Islamic Bank, according to Bloomberg — took the leading role in financing a USD 3.25 bn loan for Gems Education, facilitating asset manager Brookefield’s acquisition of a majority stake in the Dubai-based school operator.

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