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Tuesday, 26 April 2016

Abu Dhabi raises $5bn from first bond sale in seven years | The National

Abu Dhabi raises $5bn from first bond sale in seven years | The National:

"The emirate of Abu Dhabi has sold US$5 billion in sovereign bonds for the first time since 2009 as Arabian Gulf governments turn to debt markets amid a weaker oil price.

Abu Dhabi’s department of finance sold a $2.5bn tranche of 5-year bonds yielding 2.125 per cent and which mature on May 3, 2021, and another $2.5bn tranche of 10-year bonds yielding 3.125 per cent. Those bonds mature on May 3, 2026, according to market participants.

JP Morgan, Bank of America and Citigroup managed the sale."



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Dubai rents fall fastest in prime areas as jobs market weakens | The National

Dubai rents fall fastest in prime areas as jobs market weakens | The National:

"Dubai rents could fall by as much as 5 per cent this year, with the biggest drops in prime areas including Dubai Marina and Palm Jumeirah, according to Cluttons.

The consultancy said that rents in prime areas are likely to fall by up to 7 per cent, driven by a decline in demand for luxury apartments. Overall, rents are expected to decline in the range of 3 to 5 per cent

Richard Paul, the head of residential valuations at Cluttons, said that average rents fell by 1.3 per cent over the quarter and are 3.5 per cent lower year-on-year."



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Emirates’ Shaikh Ahmad bullish despite global economic worries - YouTube

Emirates’ Shaikh Ahmad bullish despite global economic worries - YouTube: ""



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Emirates’ Shaikh Ahmad bullish despite global economic worries | GulfNews.com

Emirates’ Shaikh Ahmad bullish despite global economic worries | GulfNews.com:

"Emirates, the Middle East’s largest airline, sees growth opportunities in Africa, Asia and Europe over the next 12 months despite global economic concerns over a China slowdown and the United Kingdom leaving the European Union.

This month, the International Monetary Fund downgraded its forecast for global growth this year due to instability in emerging markets, concerns over China and fractured political and economic ties in Europe.

Still, Emirates sees growth in major and emerging markets. This year, the airline will add six new destinations – all in Asia - to its network."



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Emirates REIT’s net profit up 57.8% to $14.3m | GulfNews.com

Emirates REIT’s net profit up 57.8% to $14.3m | GulfNews.com:

"Emirates REIT has reported a net profit, including valuation gains, of $14.3 million (Dh52.52 million) in the first quarter of 2016.

The figure marks a rise of 57.8 per cent compared to $9.1 million in the first quarter last year.

The investment company continued to increase its property income in the first quarter of 2016, which rose 24.3 per cent to $11.7 million compared to $9.4 million in the same quarter of 2015."



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Not So Rich Anymore, Gulf Arabs Enter World of Cuts and Strikes - Bloomberg

Not So Rich Anymore, Gulf Arabs Enter World of Cuts and Strikes - Bloomberg:

"A cushy government job, cheap fuel, a mortgage-free home and a bit of five-star travel and luxury shopping were never too much to expect in the Gulf.
Yet what previously was taken for granted in the oil-rich region is being replaced by something more familiar to the western world: spending cuts, taxation, a scarcity of jobs and even strikes. There’s discontentment among young populations rarely seen before as the countries come to terms with the collapse in energy prices blowing holes in budgets.
Kuwait had its first walkout by oil workers in two decades last week as 13,000 employees protested cuts to pay and benefits. Disgruntled Saudis, presented on Monday with a royal blueprint for life after oil, are complaining about the cost of water. Even in Qatar, the world’s richest country, locals were told on Tuesday their gasoline subsidies were being scrapped."



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1MDB's Default Leaves Bonds of Abu Dhabi Guarantor Fund Unmoved - Bloomberg

1MDB's Default Leaves Bonds of Abu Dhabi Guarantor Fund Unmoved - Bloomberg:

"A debt default by 1Malaysia Development Bhd. failed to ruffle investors in the Abu Dhabi state fund that is a co-guarantor of the unpaid bonds.
International Petroleum Investment Co.’s own $1.5 billion of securities maturing 2022 were little changed after Kuala Lumpur-based 1MDB defaulted on a $50 million interest payment it says IPIC should pay.
The lack of movement underscores how the financial turbulence of Malaysia’s state-owned firm have had a limited impact in the Middle East. The default is the latest episode to rock 1MDB, already a target of global investigations into allegations of money laundering and embezzlement. 1MDB has consistently denied wrongdoing."



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Saudi Spot Oil Deal in China Seen by Citi a `Dramatic' Shift - Bloomberg

Saudi Spot Oil Deal in China Seen by Citi a `Dramatic' Shift - Bloomberg:

"Saudi Arabia made its first sale of oil to a small, independent Chinese refiner. What’s more significant to markets is that the world’s biggest crude exporter broke from its usual practice of selling via long-term contracts, according to Citigroup Inc.
The world’s biggest crude exporter sold a spot cargo to teapot refiner Shandong Chambroad, said people with knowledge of the deal who asked not to be identified as the information is confidential. The 730,000-barrel shipment is expected to load in June from state-owned Saudi Arabian Oil Co.’s leased storage tank in Japan.
“News that Saudi Arabia is selling a cargo on the spot market to Asia may mark the turning of a dramatic new chapter in the Saudi playbook,” the bank’s analysts including New York-based Ed Morse said in a April 25 report. “What is unusual is that the sale is spot rather than the initiation of a new term contract. Spot sales are about the only way the Kingdom can gain new market share in a world in which chunky buyers are interested in securing incremental purchases via spot rather than term arrangements.”"



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Saudi reform plans flirt with social change | Reuters

Saudi reform plans flirt with social change | Reuters:

"Reforms promised by a young Saudi prince are couched in references to the kingdom's Islamic tradition but include ideas likely to upset some conservatives, risking future ruptures over the direction of society.

Deputy Crown Prince Mohammed bin Salman's "Vision 2030" plan, which the 31-year-old announced on Monday, largely aims to transform Saudi Arabia's economy in an era of low oil prices and made few specific pledges of social change.

However, it also stepped into areas that have long been cultural battlegrounds in a country defined by its religious conservatism."



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MIDEAST STOCKS-Saudi falls as reform euphoria fades, rest of region mixed | Reuters

MIDEAST STOCKS-Saudi falls as reform euphoria fades, rest of region mixed | Reuters:

"Shares in Saudi Arabia pulled back on Tuesday as local short-term investors booked profits in stocks that had jumped when Deputy Crown Prince Mohammed bin Salman announced economic reforms on Monday.

Riyadh's stock index, which had gained 2.5 percent on Monday mainly from banks that could win business handling the government's privatisation plans, dropped 1.6 percent. Trading volume shrank by almost one-third.

Samba Financial Group, lead underwriter of the recent initial public offer of Middle East Healthcare, dropped 5.3 percent after rocketing 9.3 percent on Monday."



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