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Thursday, 20 October 2016

UAE's nuclear power project achieves $24.4 bln financing close | Reuters

UAE's nuclear power project achieves $24.4 bln financing close | Reuters:

"The United Arab Emirates' nuclear energy project has completed a $24.4 billion financing for its first plant with most of the cash coming from state sources, the developers said on Thursday.

In 2009, Korea Electric Power Corporation (Kepco)-led consortium won a contract to build four 1,400 megawatt nuclear reactors that are being constructed at the Barakah plant to meet the UAE's surging demand for electricity.

Emirates Nuclear Energy Corp (ENEC) and Kepco jointly own the Barakah nuclear energy plant project."



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Bond Markets Stir Across Middle East After Historic Saudi Sale - Bloomberg

Bond Markets Stir Across Middle East After Historic Saudi Sale - Bloomberg:

"Saudi Arabia’s record debut international bond sale is shifting the ground across Middle East debt markets, fueling price gains and stoking speculation of more borrowers to come.
The bonds of Qatar, Bahrain and Dubai are rallying in the wake of the kingdom’s $17.5 billion transaction that was completed yesterday. The offering, the biggest by an emerging-market nation, is being hailed as a likely spur to other Saudi companies in coming weeks and months."



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MIDEAST STOCKS-Mammoth bond issue boosts Saudi, Egypt rebounds | Reuters

MIDEAST STOCKS-Mammoth bond issue boosts Saudi, Egypt rebounds | Reuters:

"Saudi Arabia's stock market rose sharply on Thursday as banks rallied after the kingdom's mammoth international bond sale, which could help to unclog liquidity bottlenecks in the economy. Egypt bounced as investors bought into recent dips.

The Saudi index gained 2.3 percent in sharply higher turnover as all but one of the banks advanced, with Samba Financial, which earlier this week had reported a drop in third-quarter net income, jumping 5.2 percent.

The kingdom conducted the world's largest emerging market bond sale on Wednesday, selling $17.5 billion of debt in the government's first international offer while attracting investor orders totalling almost four times that amount.

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MIDEAST STOCKS-Saudi equity investors cheer mega bond debut, SEC jumps on Q3 profit | Reuters

MIDEAST STOCKS-Saudi equity investors cheer mega bond debut, SEC jumps on Q3 profit | Reuters:

"Saudi Arabia's stock market rose in early trade on Thursday as the banking sector rallied following the kingdom's mammoth international bond sale, which could help to unclog liquidity bottlenecks in the economy. Other Gulf bourses were mixed.

Riyadh's stock index added 1.2 percent as all but three listed Saudi banks advanced, with Samba Financial Group , which earlier this week had reported a drop in third-quarter net income, adding 4.0 percent.

The kingdom conducted the largest emerging market bond sale on Wednesday, selling $17.5 billion of debt in the government's first international offer while attracting investor orders totalling almost four times that amount."



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The World’s Biggest Oil Kingdom Reverses Course - Bloomberg

The World’s Biggest Oil Kingdom Reverses Course - Bloomberg:

"Next year will be a test of strength for Saudi Arabia, the world’s largest oil exporter, as it tries to regain control of the market and lift prices. After two years of pumping at full blast, and helping drive prices to 12-year lows in January, the Saudis now appear willing to pull back. In September, at a meeting in Algiers, the Organization of the Petroleum Exporting Countries agreed to the outlines of a plan to lower the group’s production by as much as 750,000 barrels a day. Although the details won’t be final until the cartel’s Nov. 30 meeting in Vienna, the Saudis are expected to make most of those supply cuts.

The retreat signals an end to the kingdom’s foray into free-market economics. Two years ago, with prices already falling in response to a growing supply glut, Saudi Arabia, against the wishes of its fellow OPEC members, refused to lower output. The move was a direct challenge to other oil producers. By flooding the world with its low-cost crude, the Saudis bet that they could withstand lower prices longer than other countries and oil companies and force them out of the market. The strategy worked to a degree. The Saudis are pumping and selling record amounts of oil. Output hit almost 10.7 million barrels a day in July. At the same time, other producers have had to cut back: U.S. shale production has fallen, and non-OPEC oil supplies are set to drop in 2016 by the largest amount in 30 years.

In April 2016 the powerful deputy crown prince, Mohammed bin Salman, said the kingdom no longer cared whether oil cost $60 or $20 a barrel. Rather than keeping prices high, the Saudis seemed resigned to cheap oil and made plans to use that revenue to fund other investments in a bid to diversify the kingdom’s economy and reduce its reliance on crude. But the economic consequences of cheap oil have been severe for Saudi Arabia. Riyadh is burning through foreign-exchange reserves, government contractors have gone unpaid, and civil servants, who make up two-thirds of the labor force, will get no bonus this year. The country’s fiscal deficit is more than 10 percent of gross domestic product, the highest ratio of any Group of 20 nation. The International Monetary Fund forecasts that Saudi economic growth will slow to about 1 percent next year, the worst since 2009. A few banks predict a recession."



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UAE credit appetite in downtrend -central bank survey | Reuters

UAE credit appetite in downtrend -central bank survey | Reuters:

"A quarterly survey by the United Arab Emirates central bank showed a downtrend in overall credit appetite for both business and personal loans, the central bank said on Thursday.

The net balance measure for business lending - the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall in demand - fell to minus 2.3 for the September quarter from plus 3.1 in the previous quarter.

For the December quarter, however, respondents expect the net balance measure to rebound to plus 7.9, indicating demand for business loans is projected to increase."



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Oil prices fall after strong rally, but sentiment remains confident | Reuters

Oil prices fall after strong rally, but sentiment remains confident | Reuters:

"Oil prices fell on Thursday on profit-taking after markets rallied the previous day due to a draw in U.S. stocks and an expectation of an OPEC-led cut in production.

U.S. West Texas Intermediate (WTI) crude oil futures were trading at $51.26 per barrel at 0648 GMT, down 34 cents from their last close.

International Brent crude futures were trading at $52.41 per barrel, down 26 cents."



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