One of Saudi Arabia’s major contractors defaulted on almost $2 billion after a falling out among its owners and delays in payments from the government, according to people with knowledge of the matter, Bloomberg News reported. The Saudi unit of Cyprus-based Joannou & Paraskevaides Group defaulted on about 7 billion riyals ($1.9 billion) in bank loans about two months ago, said the people, asking not to be identified as the information is private. The defaults are largely the result of problems getting paid by the Ministry of Interior, the people said.

Arif Naqvi, founder of troubled buyout firm Abraaj, is making a last-ditch effort to rescue the remaining business of what was once one of the largest investors in emerging markets. The $13.6 billion (10.63 billion pounds) company crumbled this year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a healthcare fund, the International New York Times reported on a Reuters story.

Rising geopolitical tensions are increasingly playing out in the global debt markets, the Financial Times reported in a commentary. Russia’s launch this week of the sale of a euro-denominated bond is just the latest example.

A surge in Oman’s international bond yields suggests that, with investor concerns about its twin deficits growing, the country is fast replacing Bahrain as the weak debt market link among Gulf Arab oil exporters, Reuters reported. Oman’s January 2023 dollar bond yield has jumped 81 basis points since end-September, making Oman by far the worst performer in the six-nation Gulf Cooperation Council. Saudi Arabia, the second worst, has seen its March 2023 bond yield rise just 44 bps, amid concern the killing of dissident Jamal Khashoggi could hurt ties with the West.

Emaar Properties PSJC reported the lowest quarterly profit in almost three years, showing that Dubai’s lengthening real estate slump is starting to weigh down even its most resilient builders, Bloomberg News reported. Emaar, which built the world’s tallest tower in the Persian Gulf emirate, said third-quarter profit dropped by 29 percent, missing estimates. That follows earnings slumps and losses at competitors amid signs that the slowdown may continue for years longer than anyone had predicted.

Saudi Arabia will start auctioning real estate assets of billionaire Maan al-Sanea and his company on Dec. 2 to help repay billions of dollars due to creditors, sources familiar with the matter told Reuters. The auction, originally planned for late October in the city of Khobar in Eastern Province, was delayed by a last-ditch attempt to reach a settlement, which failed to gain enough support from creditors, one source said, Reuters reported.

Dubai-based construction giant Arabtec has confirmed that it has hired New York-based investment bank Moelis & Co to advise on a new restructuring plan, Arabian Business reported. The company, which last year embarked on a three-phase roadmap to stabilise and prepare the business for growth, said one of the strategic objectives for 2018, Prepare, is to continue to strengthen its balance sheet, including the refinancing of debt to provide a sustainable platform for continued growth.

Dubai Holding LLC, the investment firm owned by the emirate’s ruler, agreed to acquire a minority stake in the operator of Zara clothing and Virgin Megastore chains in the Middle East, according to people with the matter. The stake purchase in Beirut-based Azadea Group values the business at more than $1 billion, the people said, asking not to be identified as the matter is private, Bloomberg News reported. The two parties reached an initial agreement on the transaction last week, the people said.

Teva Pharmaceutical Industries raised its 2018 earnings outlook, said it was seeing “a very strong launch” for its long-awaited migraine treatment Ajovy and expects to launch generic EpiPen in the fourth quarter. Teva raised its full-year forecast for adjusted EPS to $2.80-$2.95, from a previous estimate of $2.55-$2.80 and its shares were 8.5 percent higher in early U.S. trading, Reuters reported. The company also said it was on track with plans to reduce its workforce by 14,000, having let over 9,000 employees go so far. Net debt decreased by $800 million to $27.6 billion.

Dubai’s Arabtec Holding has hired New York-based investment bank Moelis & Co to work on a new debt-restructuring plan for the construction company, three sources told Reuters. The move comes little more than a year after Arabtec raised 1.5 billion dirhams ($408.4 million) in a rights issue to wipe out accumulated losses and separately asked banks to waive terms on its debt, Reuters reported.