Latest news with #foreigninvestment
Arab News
an hour ago
- Business
- Arab News
Pakistan president invites Saudi investment, praises Riyadh's support in critical times
KARACHI: President Asif Ali Zardari on Friday invited Saudi businesses to explore investment opportunities in Pakistan, underscoring the historic relationship between the two countries and Riyadh's critical role in helping Islamabad through difficult times. Zardari's remarks come as Pakistan looks to attract foreign investment to strengthen its economy. Saudi Arabia played a key role in stabilizing Pakistan's finances in recent years, depositing $2 billion into Pakistan's central bank in June 2023 to bolster foreign reserves. The Kingdom also helped unlock a $3 billion loan from the International Monetary Fund later in the same year. 'Pakistan and Saudi Arabia enjoy deep-rooted and historic relations based on shared faith and mutual trust,' the president said during a meeting with Saudi Ambassador Nawaf bin Said Al-Malki in Islamabad according to a statement circulated by the presidency. 'We invite Saudi investors to explore investment opportunities in various sectors of the Pakistani economy.' The Saudi financial assistance to Pakistan two years ago came as the South Asian nation's reserves had dropped to a level where it could barely cover a few weeks of imports, bringing the country to the brink of sovereign default. Zardari expressed appreciation for Riyadh's continued support during the meeting and called for deeper engagement between the two nations on regional and international forums. Pakistan has been trying to further strengthen its economic relations with the Gulf countries amid improving macroeconomic indicators. It also signed 34 memorandums of understanding worth $2.8 billion with Saudi Arabia in October 2024, part of Islamabad's broader push to accelerate its economic recovery through export-led growth and foreign investment.
Arab News
3 hours ago
- Business
- Arab News
Pakistan president invites Saudi investment, acknowledges Riyadh's support in critical times
KARACHI: President Asif Ali Zardari on Friday invited Saudi businesses to explore investment opportunities in Pakistan, underscoring the historic relationship between the two countries and Riyadh's critical role in helping Islamabad through difficult times. Zardari's remarks come as Pakistan looks to attract foreign investment to strengthen its economy. Saudi Arabia played a key role in stabilizing Pakistan's finances in recent years, depositing $2 billion into Pakistan's central bank in June 2023 to bolster foreign reserves. The Kingdom also helped unlock a $3 billion loan from the International Monetary Fund later in the same year. 'Pakistan and Saudi Arabia enjoy deep-rooted and historic relations based on shared faith and mutual trust,' the president said during a meeting with Saudi Ambassador Nawaf bin Said Al-Malki in Islamabad according to a statement circulated by the presidency. 'We invite Saudi investors to explore investment opportunities in various sectors of the Pakistani economy.' The Saudi financial assistance to Pakistan two years ago came as the South Asian nation's reserves had dropped to a level where it could barely cover a few weeks of imports, bringing the country to the brink of sovereign default. Zardari expressed appreciation for Riyadh's continued support during the meeting and called for deeper engagement between the two nations on regional and international forums. Pakistan has been trying to further strengthen its economic relations with the Gulf countries amid improving macroeconomic indicators. It also signed 34 memorandums of understanding worth $2.8 billion with Saudi Arabia in October 2024, part of Islamabad's broader push to accelerate its economic recovery through export-led growth and foreign investment.
Yahoo
a day ago
- Business
- Yahoo
Trump's Economy Is Riding A Tsunami Of Inflows — So Much For 'Sell America'
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Despite fears that President Donald Trump's aggressive tariff policy would crush the appeal of U.S. assets, foreign investors are doing the exact opposite—buying American securities at a record-setting pace and powering one of the strongest rallies in recent history. According to May's Treasury International Capital System (TICS) data, total net capital inflows into the U.S. reached an unprecedented $1.76 trillion over the 12 months ending in May 2025. That includes everything from Treasuries and corporate bonds to stocks and Treasury bills. These numbers flatly defy the doomsday narrative of an "end to U.S. exceptionalism" that followed Trump's April 2 tariffs, which had briefly sent stocks, bonds and the dollar tumbling in unison. Trending: Tired of Grid Failures and Charging Deserts? This Startup Has a Solar Fix and $25M+ in Sales — 'US Exceptionalism' Was Supposed To End With Trump — Instead, It's Breaking New Records In a note shared Monday, veteran Wall Street strategist Ed Yardeni said that despite the noise, investors abroad are not fleeing U.S. markets. "Doomsters warn that foreign investors are losing their confidence in U.S. Treasuries and in the U.S. dollar," he said. "Yet, the Treasury's latest TICS data show that they remain strong buyers of U.S. debt." Foreign investors poured $597 billion into U.S. equities over the past year—setting a record pace that aligns closely with the dramatic rebound in U.S. stock markets. Since the correction low on April 8, the S&P 500 – as tracked by the Vanguard S&P 500 ETF (NYSE:VOO) – has surged 26.4% breaking new all-time highs. During May alone, $114 billion flowed into U.S. stocks, while another $146 billion was allocated to Treasuries and bonds. Foreign Investors Drive Wall Street Boom A key insight from the data is that private foreign investors, rather than official government institutions, are leading the charge. Of the $1.76 trillion in inflows, just $33.5 billion came from official foreign accounts, while an overwhelming $1.73 trillion was attributed to private investors—pension funds, asset managers and institutions with a long-term mandate for returns and stability. The U.S. bond market also witnessed robust international buying. Foreign purchases of U.S. bonds totaled $941 billion in the past year, including $541 billion into Treasuries, $267 billion into corporate bonds and $133 billion into agency paper. In the short-term market, inflows into Treasury bills hit $336 billion over the same period, with private investors accounting for $193 billion of that total. This surge in demand helps explain why long-term bond yields have remained surprisingly stable despite fiscal pressures and rate volatility. The 10-year Treasury yield has hovered between 4.25% and 4.75% for much of the year, a range that Yardeni said reflects a normalization in bond pricing last seen before the Great Financial Is The Dollar Still Weak? One piece of the puzzle remains confusing. Despite the massive foreign capital inflows, the U.S. dollar index (DXY) has plunged by 10% in 2025. Yardeni called the dollar's drop a "correction," not a new long-term trend. He said the divergence between flows and dollar performance may reverse soon, especially as bond and equity demand remains solid and U.S. growth stays ahead of global peers. Faith In US Market Dominance Holds Firm The strength of U.S. inflows suggests that global investors see Trump's trade war not as a deal-breaker, but a temporary hurdle. "Our faith in the kindness of strangers has been validated by the latest Treasury data," Yardeni said. The latest data leaves little doubt: despite trade tensions, fiscal ballooning and a shifting global landscape, U.S. markets remain the preferred destination for global capital. And as long as American assets continue to deliver returns—and relative economic outperformance—foreign investors are not just staying in the game, they're doubling down. For now, the "Sell America" narrative has been buried under $1.76 trillion worth of foreign conviction. Read Next: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — And You Can Invest At Just $6.37/Share If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Image created using photos from Shutterstock. This article Trump's Economy Is Riding A Tsunami Of Inflows — So Much For 'Sell America' originally appeared on
Zawya
2 days ago
- Business
- Zawya
Foreign portfolio investors return as Egypt's financial health improves
Despite receiving a reprimand from the IMF over delays in its privatisation programme, Egypt continues to draw strong interest from foreign portfolio investors. This is reflected in the $15 billion of inflows into local debt markets—particularly EGP-denominated treasury bills and bonds—since the flotation of the Egyptian pound in March 2024. These instruments offer high yields and are relatively insulated from foreign exchange risk. Investor sentiment toward Egypt has remained broadly positive in recent months, supported by a stronger foreign reserves position, the UAE's $35 billion investment in Ras El-Hekma, and progress on the IMF-backed reforms. Within the broader emerging markets (EM) allocation context, Egypt stands out as a relatively favourable trade. This is partly due to domestic developments but also reflects global macro trends. Two key shifts have worked in Egypt's favour since the onset of tariff tensions earlier this year: -A weaker US dollar, which typically boosts capital flows into EMs. -Lower oil prices, which benefit Egypt as a net energy importer. 'We maintain a positive fundamental credit view on Egypt,' said Fady Gendy, Portfolio Manager at Arqaam Capital. 'The country enjoys strong backing from bilateral partners, and there are potential new deals in the pipeline. For instance, Qatar and Kuwait may convert their central bank deposits into direct investments, alongside fresh inflows.' Investor confidence has also been buoyed by the IMF's fifth and sixth combined review of Egypt's support programme, as well as support from the EU and World Bank. However, the pace of privatisation of state assets remains a key concern, as it is central to the IMF program and critical for fiscal consolidation. On the hard currency side, Egypt's eurobonds have rallied significantly since the April 2 sell-off—triggered by US tariff reforms and the brief Israel-Iran conflict. 'Following the rally, yields have dropped, and Egypt now appears expensive—both historically and relative to similarly rated EM peers like Bahrain, Jordan, and some African sovereigns. We're waiting for more attractive entry points,' Gendy added. Dual strategy Meanwhile, foreign investors remain active in the local currency market, particularly in short-term EGP-denominated instruments, which offer net yields above 20%. These instruments are attractive due to their short duration and limited interest rate sensitivity. 'We view these as high-yielding, short-term carry trades. Entering now—before the Central Bank of Egypt (CBE) resumes its rate-cutting cycle—offers the potential to lock in gains, especially by extending into longer-dated bonds,' Gendy said. The CBE, which cut overnight interest rates in April and May for the first time in over five years, has since paused. However, markets anticipate up to 300 basis points (bps) of rate cuts in the second half of the year. As a result, foreign investors are pursuing a dual strategy: investing in short-term treasury bills (3, 6, and 12 months) to capture current high yields of 20–22%, while also positioning in 3- and 5-year bonds to benefit from potential price appreciation as rates decline. Mohamed Abu Basha, Head of Macroeconomic Analysis, at EFG Hermes, noted that while there were significant outflows during the Israel-Iran tensions, these have been fully reversed and that market has actually seen net inflows since the ceasefire was reached. 'With the Finance Ministry increasing its issuances, and the CBE slowing its pace of easing, yields have edged up slightly—by 40bps on average for short-end of the curve and 14bps for the longer end. When foreign participation in auctions dips, local investors typically tend to push for higher returns,' Abu Basha told Zawya. Foreign investors currently hold an estimated 25–30% of Egypt's local currency debt, according to Abu Basha. Looking ahead, tangible progress on privatization will be crucial—especially as Egypt aims to become a regular issuer in international markets, targeting $3–4 billion in annual issuance. 'While the lack of progress may not immediately impact the debt market, it's a key risk we're monitoring. Delays in asset sales could trigger a domino effect,' Gendy warned. 'Foreign investors have continued to add to their positions, and the EGP has appreciated. That seems to reflect confidence in Egypt's reserve position, especially after last year's Ras El Hekma deal as well as more recent improvement in the current account balance,' Basha said. Egypt plans to raise EGP 3.2 trillion ($65 billion) in the domestic debt market in FY 2025/26, up from EGP 2.7 trillion in the previous fiscal year, as the government seeks to refinance maturing debt and plug its fiscal deficit. (Reporting by Brinda Darasha; editing by Seban Scaria)
TechCrunch
2 days ago
- Business
- TechCrunch
India expands its e-commerce crackdown with a new $200M case against Walmart's fashion arm Myntra
India's financial crime watchdog has filed a complaint against Walmart-backed fashion e-commerce giant Myntra, alleging the company violated foreign investment rules by channeling over $191 million through a related-party scheme that disguised retail operations as wholesale trade. This complaint marks the latest move in a broader crackdown by Indian authorities, which previously targeted Amazon and Flipkart. On Wednesday, the Enforcement Directorate said the Bengaluru-based fashion e-commerce firm violated the Foreign Exchange Management Act, known as FEMA, by engaging in multi-brand retail trading 'under the guise of wholesale cash and carry,' utilizing a related entity, Vector E-Commerce, as an intermediary to route retail sales through a wholesale structure. India restricts foreign companies engaged in wholesale business from making direct sales to consumers in an effort to protect local retailers. The law also limits sales to related group companies to a maximum of 25%. Myntra failed to meet the conditions for operating as a wholesale or cash-and-carry business, as all of its sales were made exclusively to Vector E-Commerce, the agency stated (PDF). The agency filed the complaint against Myntra, its related companies, and their directors under section 16(3) of the FEMA, 1999. Myntra controls around half of the country's overall fashion e-commerce market. The company is also gradually expanding its quick commerce service and broadening its reach in high-growth categories, including home and living, as well as beauty. The company is also testing the waters in social commerce by partnering with celebrities and bringing on micro-influencers, taking on the likes of Instagram, YouTube, and Amazon's Live. Techcrunch event Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. Tech and VC heavyweights join the Disrupt 2025 agenda Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They're here to deliver the insights that fuel startup growth and sharpen your edge. Don't miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise. San Francisco | REGISTER NOW The complaint comes as Indian officials hold talks with the Trump administration over a potential trade deal with the United States. The Modi government in New Delhi is reportedly under pressure from the Trump administration to grant Amazon and Walmart-owned Flipkart full access to its $125 billion e-commerce market. The Modi government has long been expected to release its e-commerce policy, but sources previously told TechCrunch that it has been on the back burner, as officials are cautious not to strain relations with the U.S. government. Nonetheless, Amazon and Flipkart have previously faced investigations by Indian agencies, including the Enforcement Directorate. One of the recent major actions against the two companies was reportedly a raid by the federal agency in November on the offices of some of their sellers, who are accused of violating the country's foreign investment rules. In April, the agency also privately sought sales data and other documents from smartphone vendors, including Apple and Xiaomi, as part of its probe into Amazon and Flipkart. Responding to the latest action, Myntra stated that it had not received a copy of the complaint and supporting documents from the authorities but remained 'fully committed to cooperating with them at any point of time.' 'At Myntra, we are deeply committed to upholding all applicable laws of the land and operating with the highest standards of compliance and integrity,' a company spokesperson said. Founded in 2007, Myntra was acquired by the Indian e-commerce giant Flipkart in 2014 and was later bought by Walmart as part of Flipkart's $1.6 billion acquisition in 2018. When contacted, a Walmart spokesperson pointed to the statement issued by Myntra.
