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Monday, 19 December 2016

New supply to lower Dubai suburban rents in 2017 | The National

New supply to lower Dubai suburban rents in 2017 | The National:
"Dubai rents are set to decline further next year with more than 20,000 new homes entering the market, brokers say.

After having fallen by up to 5 per cent this year in parts of Dubai, rents should drop by another 4 per cent in the suburbs next year amid the supply influx, according to the Core Savills 2017 forecast published yesterday.

Most of the new units are being built outside the city centre. The broker estimates that just 19 per cent of those homes – about 3,800 – are due to be built in the most established and central parts of the city next year."

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Iran finalises 100-aircraft deal with Airbus | The National

Iran finalises 100-aircraft deal with Airbus | The National:
"Iran has finalised an agreement with Airbus to acquire 100 jetliners, the first of which is tentatively expected to be delivered in mid-January, a senior official said on Monday.

The deal, split roughly equally between narrow-body and wide-body aircraft, will be signed in coming days, possibly as early as Monday or Tuesday, Asghar Fakhrieh Kashan, the deputy roads and urban development minister, told Reuters.


"We have finalised negotiations with Airbus and any day we will be able to sign the deal in Tehran. We are expecting some final clearances and expect to sign today or tomorrow," he said in a telephone interview."

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Aramco IPO Could Still Be in U.S. as Kingdom Plays Down Rift - Bloomberg

Aramco IPO Could Still Be in U.S. as Kingdom Plays Down Rift - Bloomberg:
"Saudi Arabia could still decide to sell shares of oil giant Aramco in New York, Foreign Minister Adel al-Jubeir said, even after the U.S. passed a law that allows victims of the Sept. 11 attacks to sue the kingdom.

The kingdom is looking at markets from Hong Kong to New York as possible international venues of what could be one of the biggest share sales in history, al-Jubeir told a news conference with U.S. Secretary of State John Kerry in Riyadh on Sunday. The decision is still a “work in progress,” he said.

Saudi authorities plan to sell less than 5 percent in Saudi Arabian Oil Co. by 2018 as part of a plan by Deputy Crown Prince Mohammed bin Salman to set up the world’s biggest sovereign wealth fund and help reduce the economy’s reliance on hydrocarbons.

"

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Fitch: Courts Will Be Key to Implementing New UAE Bankruptcy Law | Reuters

Fitch: Courts Will Be Key to Implementing New UAE Bankruptcy Law | Reuters:
"(The following statement was released by the rating agency) DUBAI/LONDON, December 19 (Fitch) The ability of the UAE courts to interpret the federation's new bankruptcy law and handle bankruptcy proceedings will be key to its effective implementation, Fitch Ratings says. The law is due to come into effect at the end of this month. It aims to create a clear and predictable framework for court-based bankruptcy proceedings as an alternative to liquidation. We think the new law could benefit banks and corporates, by allowing for going-concern restructuring (see "Fitch: Bankruptcy Law May Benefit UAE Bank SME Lending" ). Existing UAE law defines how a court can declare a company bankrupt, appoint a trustee, realise assets and settle debts. But there has been no legal provision for the rehabilitation of distressed companies through creditor agreement, and the regime is largely untested. This is because so far debt restructurings have been informal, out-of-court arrangements, partly due to creditor perceptions that local courts lack judicial expertise and that court proceedings will be lengthy and expensive. When economically significant entities have experienced financial difficulties, the government has intervened, for example by introducing bespoke legislation when Dubai World rescheduled debt repayments in 2009."

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OPEC convinces hedge fund managers but must now deliver promised cuts: Kemp | Reuters

OPEC convinces hedge fund managers but must now deliver promised cuts: Kemp | Reuters:
"Hedge funds have amassed a record bullish position in crude oil in anticipation OPEC and non-OPEC oil producers will succeed in rebalancing the market and reducing excess stocks next year.

Fund managers accumulated a net long position equivalent to 796 million barrels in the three main futures and options contracts linked to Brent and West Texas Intermediate by Dec. 13 (tmsnrt.rs/2hQR5PM).

The net position has almost doubled from a low of 422 million barrels four weeks earlier, according to an analysis of data from regulators and exchanges."

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MIDEAST STOCKS-Egypt surges to fresh eight-year high, Gulf markets diverge | Reuters

MIDEAST STOCKS-Egypt surges to fresh eight-year high, Gulf markets diverge | Reuters:
"Egypt's stock index surged 3.1 percent in heavy trade on Monday as the Egyptian pound depreciated against the U.S. dollar, prompting more buying by foreign funds, while Gulf bourses diverged.

Twenty-seven of the 30 most liquid Egyptian shares rose, taking the index to a fresh eight-year high, with Telecom Egypt and Global Telecom Holding each jumping to their 10 percent daily limits.

The Egyptian pound was being bought for 19 pounds per dollar against around 18.8 earlier in the day on the back of higher demand for the greenback amid a shortage at banks, bankers told Reuters."

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China's CEFC in talks for stake at Abu Dhabi oil concessions - sources | Reuters

China's CEFC in talks for stake at Abu Dhabi oil concessions - sources | Reuters:
"Privately-run CEFC China Energy is in advanced talks to secure a stake to develop onshore oilfields in the United Arab Emirates under a 40-year deal, two industry sources with knowledge of the discussions said on Monday.

CEFC is in discussions with state-owned Abu Dhabi National Oil Co. (ADNOC) to try to acquire 10 percent of the Abu Dhabi Company for Onshore Petroleum Operations (ADCO), one of the sources said. ADCO operates onshore oil concessions with total resources of between 20 billion to 30 billion barrels of oil equivalent.

The source added that it was not clear how much of a stake CEFC would ultimately win, but estimated a 10 percent stake would cost around $2.2 billion."

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By shielding biggest buyer Asia from supply cuts, OPEC risks prolonging fuel glut | Reuters

By shielding biggest buyer Asia from supply cuts, OPEC risks prolonging fuel glut | Reuters:
"OPEC's efforts to hold market share in Asia by keeping its customers, which take about two-thirds of its exports, supplied amid wider output cuts could prolong the global fuel glut and frustrate its attempt to bolster prices.

Saudi Arabia, the de-facto leader of the Organization of the Petroleum Exporting Countries (OPEC), will target its supply cuts at refiners in the United States and Europe rather than Asia. Ally Kuwait is following a similar strategy, and OPEC's second-largest producer Iraq is even raising exports to Asia.

"U.S. and European refiners are having January allocations cut from Saudi Arabia, Kuwait and the UAE (United Arab Emirates)," Morgan Stanley said on Monday in a note to clients."

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Oil industry on the cusp of cash flow recovery

Oil industry on the cusp of cash flow recovery:
"The world’s major oil and gas companies will turn cash flow positive for the first time in three years in 2017 if the Opec production cartel succeeds in keeping the oil price above $55 a barrel.

That is the conclusion of Wood Mackenzie, the respected energy consultancy, in a new report that portrays an industry on the cusp of recovery from the steep declines in earnings and investment seen since crude prices crashed in 2014.

Deep cost cuts during the downturn, coupled with a gradual rebound in oil prices, were beginning to ease pressure on balance sheets and allow companies to move out of crisis mode, said Tom Ellacott, head of corporate research at WoodMac."

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Substantial recovery still elusive for Russia economy

Substantial recovery still elusive for Russia economy:
"After more than two years of recession Elvira Nabiullina, Russia’s central bank governor, had good news to offer. Russia, which has struggled to get over a slump triggered by a sharp drop in oil prices and by western sanctions, was set for “slight positive growth in GDP” in the current quarter, she said on Friday.

With oil prices ticking up, and hopes that a US administration led by Donald Trump could bring at least some sanctions relief, some investors have taken the view that Russia’s recovery can gather steam. International funds are taking an interest in Russian stocks again, with the Micex, the main stock market index, soaring 27 per cent this year.

Inside Russia, though, expectations are far more muted. Most people have yet to feel any economic stabilisation. Real incomes continue to shrink. Inflation, although expected by the central bank to drop to under 5.8 per cent by the end of the year from more than 15 per cent last December, continues to eat into pensions and salaries. Consumers remain timid: retail sales fell 4.4 per cent in October, year on year."

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MIDEAST STOCKS-Qatar rises after budget, SABIC drags down Saudi index | Reuters

MIDEAST STOCKS-Qatar rises after budget, SABIC drags down Saudi index | Reuters:
"Qatar's stock market climbed in early trade on Monday after the finance ministry published the 2017 state budget, while large-cap shares weighed on other regional markets.

The index in Qatar, which was closed for a public holiday on Sunday, rose 1.1 percent with 85 percent of shares advancing. Petrochemical and metals producer Industries Qatar was the top performer, adding 2.1 percent.

On Thursday Qatar published a 2017 budget which projected a deficit of 28.3 billion riyals ($7.8 billion), much smaller than the originally projected 2016 deficit, and total spending of 198.4 billion riyals, down from 202.5 billion riyals."

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Etihad cuts jobs amid slowdown | The National

Etihad cuts jobs amid slowdown | The National:
"Etihad Airways is cutting jobs as the aviation sector responds to a global economic slowdown. The Abu Dhabi-based airline did not say how may jobs would be lost but that the restructuring would result in a measured reduction of headcount in some parts of the business.

"Etihad Airways is operating in an increasingly competitive landscape, against a backdrop of weakened global economic conditions," the airline said in a statement.


"To ensure we remain agile and competitive in this environment, we constantly explore and pursue new ways of driving productivity and improving efficiency so that we can continue to deliver on our mandate and vision."

Etihad said it would conduct an organisational review in a "fair, structured and transparent way.""

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Chinese companies top Abu Dhabi list for stake in Adco | The National

Chinese companies top Abu Dhabi list for stake in Adco | The National:
"Abu Dhabi’s oil leadership is down to a very short list of contenders for the remaining stake in its flagship onshore oil concession after the deal last week giving BP a 10 per cent share for US$2.2 billion, which also brought Abu Dhabi in as one of BP’s largest shareholders.

The negotiating process for stakes in Abu Dhabi Company for Onshore Oil Operations (Adco), which accounts for slightly more than half of Abu Dhabi’s 3.1 million barrels per day of output, has dragged on for three years since the expiry of the old concession, as the emirate’s Supreme Petroleum Council, advised by Abu Dhabi National Oil Co. (Adnoc), has evaluated proposals.


With BP’s deal and the previous ones, which gave France’s Total a 10 per cent stake and Japan’s Inpex and South Korea’s GS Energy (backed by Korean National Oil Co.) 5 and 3 per cent, respectively, Adnoc now expects to wrap up deals covering the remaining 12 per cent by early next year, according to a person familiar with the negotiations."

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Dubai's Nakheel expects higher 2016 profit - chairman quoted by newspaper | Reuters

Dubai's Nakheel expects higher 2016 profit - chairman quoted by newspaper | Reuters:
"Dubai property developer Nakheel expects 2016 annual net profit to exceed the 4.4 billion dirhams ($1.2 billion) it made last year, its chairman was quoted as saying by United Arab Emirates newspaper Al-Ittihad on Monday.

* Nakheel was focusing on retail as that was one of the sectors most in demand, according to Ali Rashid Lootah in the newspaper report.

* So far this year, Nakheel has delivered five new projects at a value of 1.5 billion dirhams, including 1,300 retail outlets, he was quoted as saying.

* Net profit for the first nine months of 2016 was 3.91 billion dirhams, up from 3.61 billion dirhams in the corresponding period of last year, the company reported in October. "

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Oil prices rise in anticipation of tighter 2017 market | Reuters

Oil prices rise in anticipation of tighter 2017 market | Reuters:
"Oil prices rose on Monday in anticipation of tighter crude supply going into 2017 following the decision by OPEC and other producers to cut output to prop up prices.

Brent crude futures, the international benchmark for oil prices, were trading at $55.57 per barrel at 0401 GMT, up 36 cents, or 0.7 percent, from their last close.

U.S. West Texas Intermediate (WTI) crude oil futures were up 43 cents, or 0.8 percent, at $52.33 a barrel."

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