Google+ Followers

Friday, 29 September 2017

It’ll take oil above $50 for shale boom, oil sands to pay off | GulfNews.com

It’ll take oil above $50 for shale boom, oil sands to pay off | GulfNews.com:

"Shale drillers and oil sands producers have posted some healthy profits so far this year, but it’ll take oil consistently above $50 (Dh183.64) a barrel for their investments to pay off in the long run.
That’s the conclusion of a Moody’s Investors Service study of 37 exploration and production companies in the US and Canada released on Thursday. It’s also why legendary hedge fund manager Jim Chanos, who’s shorting shale driller Continental Resources Inc., says independent explorers have been a bad deal for shareholders.

Shale oil producers “are creatures of the capital markets”, Chanos told Bloomberg TV’s Julia Chatterley, Joe Weisenthal and Scarlet Fu. “Because the wells deplete so quickly, they constantly need to raise money to replace the assets.”
"



'via Blog this'

Russia's Rosneft elects former German chancellor Schroeder as chairman

Russia's Rosneft elects former German chancellor Schroeder as chairman:

"Former German Chancellor Gerhard Schroeder faced further criticism at home after he was elected as chairman of Russia’s biggest oil producer Rosneft (ROSN.MM) on Friday.

Schroeder, a Social Democrat who led Germany from 1998 to 2005, prompted widespread criticism in his homeland in August when he was nominated to Rosneft’s board, given Western sanctions against Moscow over the Ukraine crisis and Chancellor Angela Merkel’s frosty relations with the Kremlin.

Shareholders in state-controlled Rosneft, which is subject to the sanctions, elected Schroeder to its board at a meeting on Friday, and shortly afterwards Schroeder told a news briefing he was pleased to have been chosen to be chairman."



'via Blog this'

Banks assess loan exposure as Qatar crisis deepens

Banks assess loan exposure as Qatar crisis deepens:

"Qatari banks and financial institutions in neighbouring countries that have severed diplomatic and transport ties are assessing their exposure to each other and seeking to sell loans in the secondary market as the crisis threatens to deepen.

Qatar’s economy has been under pressure since June 5 when Saudi Arabia, the UAE, Bahrain and Egypt imposed travel and trade restrictions and accused Qatar of backing terrorism, a charge that Doha denies.

Banks on both sides are concerned that the situation is deteriorating and could further affect regional and global business. Lenders are reviewing existing exposure while writing new loans remains on hold."



'via Blog this'

Middle East oil producers turn to crude trading to boost incomes

Middle East oil producers turn to crude trading to boost incomes:

"Middle East oil producers are venturing into trading crude as three years of weak oil prices has encouraged them to find new sources of income beyond the business of exporting their output. OPEC kingpin Saudi Arabia, the world’s biggest oil exporter, is among those making the shift. A subsidiary of state-owned Saudi Aramco plans to start trading non-Saudi crude, according to sources familiar with the issue. Other members of the Organization of the Petroleum Exporting Countries are joining in as oil prices remain at roughly half their levels of mid-2014."



'via Blog this'

Saudi Arabia to widen foreign investment access again in 2017 -CMA chairman

Saudi Arabia to widen foreign investment access again in 2017 -CMA chairman:

"Saudi Arabia plans to further open up its stock market to foreign investors later this year as it seeks to become an international capital markets hub, Mohammed Abdullah Elkuwaiz, chairman of the Capital Market Authority (CMA) told Reuters on Friday.

Qualified foreign institutions (QFIs) were allowed to begin investing directly in Saudi stocks in 2015 and qualification requirements were eased late last year.

“We are likely to follow up with a version three (of the QFI programme) and maybe a version four shortly thereafter by continuing to deregulate foreign investor access,” said Elkuwaiz, who became chairman of the body in August."



'via Blog this'

Offers for AccorHotels' property unit stake seen in October: report

Offers for AccorHotels' property unit stake seen in October: report:

"Investors looking to buy at least 51 percent of the property unit of French hotel group AccorHotels (ACCP.PA) are due to submit their letters of intent in October, French daily Les Echos said on Friday.

French asset manager Amundi (AMUN.PA), U.S. property group Colony North Star (CLNS.N), Singapore’s sovereign wealth fund GIC and Saudi Arabia’s Public Investment Fund have been in the running for several months though other contenders could join the race, the paper said, without citing its sources.

AccorHotels declined to comment while Amundi, Colony North Star, GIC and PIF could not be immediately reached for comment."



'via Blog this'

RPT-Mideast OPEC producers fret oil price rally may burn out

RPT-Mideast OPEC producers fret oil price rally may burn out:

"Middle East OPEC producers are concerned weak demand and excess supply in the first quarter of 2018 may undermine an oil price rally that has pushed Brent crude about 30 percent higher since June, OPEC and industry sources said.

Supply cuts since Jan. 1 by the Organization of the Petroleum Exporting Countries, Russia and other producers helped lift prices, while Hurricane Harvey added to gains when it knocked out nearly a quarter of U.S. refining capacity.

Benchmark Brent rose above $59 a barrel this week, its highest level in more than two years and nearing the $60 mark. Gulf oil sources have said OPEC’s largest producer Saudi Arabia would like to achieve that level this year. Brent is now trading around $58."



'via Blog this'

FCA’s Bailey Says Regulators Eager to Solve MiFID Research Snag - Bloomberg

FCA’s Bailey Says Regulators Eager to Solve MiFID Research Snag - Bloomberg:

"Regulators are working to find a solution for asset managers and banks that will be stuck between U.S. and European Union rule books when MiFID II takes effect in January, Andrew Bailey, the U.K. Financial Conduct Authority’s chief executive officer, said in a Bloomberg TV interview.

Bailey said FCA representatives attended a meeting with the 40 biggest asset managers and banks that was aimed at seeking clarity on the financial markets overhaul.

The meeting “was really about one particular issue, and it’s about research,” the 58-year-old Bailey said."



'via Blog this'

Unstoppable Force Meeting Immovable Object Stumps Oil Market - Bloomberg

Unstoppable Force Meeting Immovable Object Stumps Oil Market - Bloomberg:

"The oil market is battling with a paradox: what happens when the unstoppable force of OPEC production cuts and soaring global demand meets the immovable object that’s U.S. shale? The answer will determine not only the price of crude, already at its highest in two years near $60 a barrel, but also the fortune of Big Oil companies and energy-rich countries from Saudi Arabia to Russia and Brazil. For many at the annual Asia-Pacific Petroleum Conference in Singapore, one of the global oil industry’s biggest events, the clash means prices will remain in a narrow band of $50-$60 a barrel the rest of the year and into 2018. Yet a growing minority -- notably oil trading giant Trafigura Group -- believe the paradox will be resolved next year as U.S. shale proves it isn’t an immovable object that can continue capping prices."



'via Blog this'

Thursday, 28 September 2017

Khaldoon Al Mubarak interview: Mubadala Investment already active on the deal path - The National

Khaldoon Al Mubarak interview: Mubadala Investment already active on the deal path - The National:

"Khaldoon Al Mubarak paints a picture of a company on the move and of a chief executive satisfied that it has a solid foundation from which to move forward with confidence. Under his watch, Mubadala Investment Company stands as a strong entity following its recent consolidation, its structure forged following the completion in May of the coming together of Mubadala Development and Ipic. The new Mubadala has already taken its first steps into the future and its path is clear, says Mr Al Mubarak, clearly pleased with company's progress so far, and feeling quite relaxed ahead of the announcement of its first interim results as a new entity later in the day. “We continue by the way today to evolve, as we enter into new sectors, and we’re deploying capital in a swift effective way,” says Mr Al Mubarak. He gives the example of Mubadala Investment’s US$15 billion (Dh55bn) commitment to Softbank’s $100bn technology-focussed Vision Fund, announced in May, in which Saudi Arabia’s Public Investment Fund is also a participant. The investment has opened up a whole avenue of fresh opportunities in new and disruptive companies for Mubadala Investment."



'via Blog this'

Emaar lists assets it intends to take public | GulfNews.com

Emaar lists assets it intends to take public | GulfNews.com:

"Emaar Properties, the UAE’s largest listed developer, has transferred a number of key assets to a new investment vehicle, which will then be taken public, company documents filed with the Dubai Financial Market (DFM) on Thursday morning revealed.

The assets, which include 49 units in the Burj Khalifa and two Address hotels still under construction, will be transferred to Emaar Development, a vehicle through which to list a number of Emaar’s projects on the stock market, experts say.
Emaar Development is expected to float parts of its business through an IPO later this year.
"



'via Blog this'

Mubadala Investment Company swings to profit in H1 2017 | GulfNews.com

Mubadala Investment Company swings to profit in H1 2017 | GulfNews.com:

"Mubadala Investment Company swung to a profit of Dh4.2 billion in the first half of 2017 compared to a loss of Dh4.7 billion during the same period last year due to strong performance of the company. Revenues were Dh83.4 billion in the first half of this year, compared to Dh72.9 billion for the same period in 2016 due to strong performance and higher revenues across Mubadala’s four investment platforms, with the primary drivers being the upstream and integrated oil and gas, semiconductors, and aerospace sectors. “The results from the first half of 2017 reflect the strength and scale of Mubadala Investment Company’s diversified global portfolio and robust balance sheet. We will continue to integrate, optimize and grow the company’s assets under our global business platforms, to create and realize maximum financial and strategic returns to support diversification of the economy of Abu Dhabi and the country,” said Group Chief Executive Officer and Managing Director, Khaldoon Khalifa Al Mubarak."



'via Blog this'

Qatar Airways expands airline investments with Italy's Meridiana

Qatar Airways expands airline investments with Italy's Meridiana:

"Qatar Airways said on Thursday it had acquired a 49 percent stake in AQA Holding, the new parent company of Italy’s Meridiana, adding to its growing portfolio of investments in foreign airlines.

Previous sole owner Alisarda retains 51 percent, the major Middle East airline said in a statement.

Loss-making, Sardinia-based Meridiana is Italy’s second largest carrier behind Alitalia [CAITLA.UL], which is partly owned by Abu Dhabi’s Etihad Airways. Alitalia filed for administration earlier this year."



'via Blog this'

Saudi August foreign reserves at lowest since early 2011

Saudi August foreign reserves at lowest since early 2011:

"Saudi Arabia's foreign reserves
fell in August to their lowest level since April 2011, central
bank data showed on Thursday, drawn down to cover a budget
deficit caused by low oil prices.
The central bank's net foreign assets shrank by $6.9 billion
from their level in July to $480.0 billion. The assets dropped
13.4 percent from a year earlier; they peaked at $737 billion in
August 2014.
The vast majority of the foreign assets are believed to be
denominated in U.S. dollars. Foreign securities holdings dropped
only slightly in August, edging down by $264 million from the
previous month to $332.6 billion, while foreign bank deposits
shrank $6.2 billion to $89.2 billion."



'via Blog this'

Aramco listing reshapes Saudi Arabia's OPEC oil policy

Aramco listing reshapes Saudi Arabia's OPEC oil policy:

"Saudi Arabia’s plans to float state oil titan Aramco are prompting the country to think the unthinkable.

Late last year, Saudi Arabia tried to get fellow oil producers around the world to agree to reduce production. Before an OPEC meeting in Vienna in November, Saudi officials were armed with an unprecedented bargaining chip: if there was no deal, the kingdom would quit the exporter group altogether.

The strategy was approved at the highest level of the Saudi government, said sources familiar with the matter."



'via Blog this'

Saudi Arabia's Regulator Set to Unveil New M&A, Listing Rules - Bloomberg

Saudi Arabia's Regulator Set to Unveil New M&A, Listing Rules - Bloomberg:

"Saudi Arabia plans to unveil regulations to make share listings easier and encourage mergers and acquisitions among publicly traded companies in the Middle East’s biggest bourse.

The regulations will simplify the time taken to float a company in the kingdom and also do away with some of the stringent conditions that have constrained M&A among listed companies, according to Capital Market Authority Chairman Mohammed El-Kuwaiz.

“The expectation is that we will be able to pass these rules in a month’s time,” El-Kuwaiz, formerly a management consultant with McKinsey & Co. Inc., said on the sidelines of a Saudi Arabian capital markets event arranged by Deutsche Bank AG in London. “We are already seeing instances of public companies engaging in discussions in expectation of these regulations.”"



'via Blog this'

Investors Brace for FTSE Verdict on S. Arabia and Kuwait - Bloomberg

Investors Brace for FTSE Verdict on S. Arabia and Kuwait - Bloomberg:

"FTSE Russell is set to announce over the weekend in the Middle East if it will add Saudi Arabia and Kuwait to its list of emerging markets in what could spur a surge in inflows to both markets and be a prelude to MSCI Inc. inclusion next year.

While recent market infrastructure improvements have been made in both countries, analysts and investors say Kuwait may be closer to being added than Saudi Arabia, which is aiming to modernize its market ahead of the sale of shares of state-controlled oil company Saudi Arabian Oil Co. in what is being tipped as the biggest initial public offering in history. FTSE is expected to announce its country classification annual review on Friday after markets close in the U.S.

Saudi Arabia’s main benchmark has gained just one percent this year, while Kuwait’s has climbed 16 percent. Below is a rundown of investor and analyst expectations:


"



'via Blog this'

Otas Lenders Are Said to Seek State Control of Turk Telekom - Bloomberg

Otas Lenders Are Said to Seek State Control of Turk Telekom - Bloomberg:

"Banks that provided a $4.75 billion loan to the owner of Turk Telekomunikasyon AS see a government takeover of the operator’s management as the best way of resolving Turkey’s largest debt default, according to three people familiar with the matter. The stock rose. Lenders favor this outcome to another proposal of a cash injection into Otas, which owns 55 percent of Turk Telekom and has missed two payments on the loan it took out in 2013, the people said, asking not to be identified because negotiations are ongoing. Turkey’s Treasury, which owns 25 percent in Ankara-based Turk Telekom, has the right to dismiss existing board members if Otas cannot agree to a restructuring plan with the banks. Having Turk Telekom’s management under the single control of Treasury may facilitate an ownership change in the country’s largest telecommunications company and make it easier to handle any potential talks with future investors over the stake held by Otas, the people said. The government can also extend Turk Telekom’s concession to keep operating beyond the contract’s 2026 expiry, clearing the way for a longer repayment period should the loan be restructured, they said. "



'via Blog this'

MIDEAST STOCKS-Egypt strong, Saudi bolstered by $12.5 bln sovereign bond issue

MIDEAST STOCKS-Egypt strong, Saudi bolstered by $12.5 bln sovereign bond issue:

"Egypt’s stock index climbed on Thursday ahead of a central bank meeting on monetary policy later in the day, while the banking sector helped carry the Saudi index higher after news that the government had priced a $12.5 billion international bond issue.

The Egyptian central bank was likely to keep key interest rates unchanged at its meeting, a Reuters poll of analysts showed, after a slide of inflation that is expected to continue in the last quarter of 2017.

The main stock index rose 1.1 percent on Thursday as it priced in the “end of the monetary and fiscal tightening period”, said Wafik Dawood of Beltone Capital."



'via Blog this'

Oil, not Qatar crisis, damaging Turkey-Gulf economic ties

Oil, not Qatar crisis, damaging Turkey-Gulf economic ties:

"When four Arab states launched an economic blockade against Qatar in June, threatening food and construction supplies to the gas-rich state, Turkey stepped in.

Ankara helped airlift food supplies to ward off serious shortages in its close ally, and then rushed ahead with plans to deploy troops at a military base in the isolated Gulf state at a time when many Qataris feared invasion.

The intervention prompted widespread anger among many Saudis and Emiratis — the leaders of the quartet that includes Egypt and Bahrain — who bitterly rejected an alleged return to “Ottoman expansionism” in the Gulf."



'via Blog this'

Economic boost expected as KSA lifts ban on women driving | Arab News

Economic boost expected as KSA lifts ban on women driving | Arab News:

"The decision to allow women in Saudi Arabia to apply for driving licenses from next year is a game-changer on many levels, not least in the economic benefits it promises to bring to the Kingdom in the long term. The move — which was greeted with near-rapture by Saudi women on social media — is also a step toward fulfilling one of the central aims of the Vision 2030 strategy, which seeks to diversify the economy away from oil dependency and public-sector employment. The reforms seek to increase women’s participation in the Saudi workforce from 22 percent to 30 percent — a rather modest goal set against the average level of 42 percent elsewhere in the Arabian Gulf. The decree on driving helps make that goal eminently achievable, probably before the 2030 deadline."



'via Blog this'

Etihad Airways Appoints Tony Douglas as CEO to Lead Overhaul - Bloomberg

Etihad Airways Appoints Tony Douglas as CEO to Lead Overhaul - Bloomberg:

"Etihad Aviation Group moved forward with its renewal by appointing British military and aviation veteran Tony Douglas to take charge of the Abu Dhabi-based carrier, succeeding James Hogan, architect of its failed bets on insolvent Alitalia SpA and Air Berlin Plc.

Douglas will join Etihad as chief executive officer in January 2018 from the U.K.’s Ministry of Defence, where he was responsible for procuring and supporting all the equipment and services for the British Armed Forces, the state-owned carrier said Thursday in a statement. The executive has aviation experience, previously managing Heathrow’s Terminal 5 project and serving as CEO of Abu Dhabi Airports.

“We are delighted to have Tony return to Abu Dhabi to lead Etihad,” Etihad Chairman Mohamed Mubarak Fadel Al Mazrouei said in the statement. Douglas understands the region and “is also deeply knowledgeable about commercial aviation and keenly familiar with Etihad’s challenges and opportunities in a rapidly changing industry.”"



'via Blog this'

Libya's Oil Output Gains as It Faces Calls to Join OPEC Cuts - Bloomberg

Libya's Oil Output Gains as It Faces Calls to Join OPEC Cuts - Bloomberg:

"Libya’s oil output is rising again after disruptions ended at its biggest field, with production reaching about 950,000 barrels a day even as OPEC and allied suppliers step up efforts to contain a global glut. Output at the North African nation’s Sharara field has recovered to 230,000 barrels a day, according to a person familiar with the matter, who asked not to be identified because they aren’t allowed to speak to the media. Libya was pumping 1.05 million barrels a day in August, the person said, before an armed group closed a pipeline linked to the field and caused Sharara to halt production for more than two weeks. Libya, with Africa’s largest crude reserves, is staging a modest recovery as the Organization of Petroleum Exporting Countries tries with Russia and other producers to rein in a global oversupply. Iran and the United Arab Emirates are among OPEC members expressing concern that rising production in Libya and Nigeria, the only OPEC countries exempt from cutting, is complicating the group’s effort to re-balance the oil market and prop up prices. OPEC agreed in November to let Libya and Nigeria pump at will due to their internal strife.  "



'via Blog this'

Watch These Turkish Stocks Exposed to Iraq - Bloomberg

Watch These Turkish Stocks Exposed to Iraq - Bloomberg:

"From construction to food stocks, political tension following a referendum by Iraqi Kurds on independence is bringing Turkish companies with business ties to the country into focus. Monday’s vote drew tough talk from neighbors including Turkey, whose President Recep Tayyip Erdogan threatened to curb Kurdish oil exports and warned that supplies of food and clothing could be disrupted. Iran called the poll “illegal and illegitimate,” closing its borders with the region at the request of Iraq. The Iraqi parliament in Baghdad approved draft legislation ordering the closure of borders with Kurdistan, while the U.S. expressed “deep disappointment,” saying the plebiscite will increase instability and hardship."



'via Blog this'

Saudi Arabia Raises $12.5 Billion From Dollar Bond Offering - Bloomberg

Saudi Arabia Raises $12.5 Billion From Dollar Bond Offering - Bloomberg:

"Saudi Arabia raised $12.5 billion from its second dollar bond sale this year as the kingdom bolsters its finances amid an economic overhaul.

The government sold $3 billion of long five-year notes, $5 billion of the 10-year tranche and $4.5 billion of the 30-year offering, people familiar with the matter said, declining to be identified because the information is private. Investors submitted about $40 billion in bids, they said."



'via Blog this'

MIDEAST STOCKS-Banking shares support Saudi in early trade

MIDEAST STOCKS-Banking shares support Saudi in early trade:

"Banking shares helped take the Saudi index slightly higher in early trade on Thursday after news that the government has priced a $12.5 billion international bond issue, while the rest of the region was mixed.

The sovereign bond sale attracted around $40 billion and settlement is expected by Oct. 4, Saudi Arabia’s Ministry of Finance said.

The successful issue is good news for the banking sector because it will help to increase liquidity and gives the government financial room to move ahead with projects. Shares of majority state-owned National Commercial Bank were up 0.9 percent and Samba Financial Group rose 0.5 percent."



'via Blog this'

Wednesday, 27 September 2017

MIDEAST STOCKS-Car rental firms surge on Saudi bourse on women driving news

MIDEAST STOCKS-Car rental firms surge on Saudi bourse on women driving news:

"Shares of car insurance and rental companies rallied on the Saudi Arabian stock market on Wednesday after news that women would be allowed to drive, although the broader market was flat.

Qatar’s stock market fell sharply, ending a six-day winning streak.

Saudi King Salman on Tuesday issued a royal decree lifting the driving ban; it will be implemented by June 24, 2018, according to state news agency SPA."



'via Blog this'

Qatar Air Eyes New 747 Deal as Embargo Spurs Cargo Demand - Bloomberg

Qatar Air Eyes New 747 Deal as Embargo Spurs Cargo Demand - Bloomberg:

"Qatar Airways Ltd. is considering whether to order more Boeing Co. 747 jumbo freighters as global air cargo rebounds and the Persian Gulf carrier responds to a blockade of its home country.

The jets, featuring a hinged nose that flips open to load oversize equipment, would help the Doha-based carrier make good on its ambition to become the largest international cargo operator in the world, Chief Executive Officer Akbar Al Baker told reporters Monday during a visit to Seattle to take delivery of the first of Qatar Air’s two 747-8 freighters."



'via Blog this'

China's CEFC wins preliminary government approval for Rosneft deal: sources

China's CEFC wins preliminary government approval for Rosneft deal: sources:

"Privately-run conglomerate CEFC China Energy has obtained preliminary state approval for its proposed $9.1 billion investment in Russian oil major Rosneft (ROSN.MM), three sources with knowledge of the matter told Reuters.

CEFC said earlier this month it will buy a 14.16 percent stake in Rosneft from a consortium of Glencore (GLEN.L) and the Qatar Investment Authority, strengthening energy ties between Moscow and Beijing.

The approval was received just about a week after the deal was announced, the sources said."



'via Blog this'

GCC Investors Ignore Spat to Buy Qatar's Battered Stocks: Chart - Bloomberg

GCC Investors Ignore Spat to Buy Qatar's Battered Stocks: Chart - Bloomberg:

"Institutional investors from the six-state Gulf Cooperation Council, who fueled a selloff of Qatari stocks when a Saudi-led group of nations cut ties with the sheikhdom in June, are returning. They have been net buyers of Qatari stocks every day since Sept. 18, when the main equity gauge fell to a five-year low, acquiring 15.6 million riyals ($4.2 million) of shares on Monday, the most since April. Saudi Arabia, the United Arab Emirates and other Arab states cut diplomatic and commercial ties with the country amid accusations of funding terrorists, a charge Qatar denies."



'via Blog this'

Qatar imports rebound in August, suggesting sanctions impact fading

Qatar imports rebound in August, suggesting sanctions impact fading:

"The value of Qatar’s imports rebounded sharply in August from July, government data showed on Wednesday, suggesting the economic impact of sanctions imposed by other Arab states is fading.

Imports plunged by over a third after Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Doha on June 5.

The sanctions - over accusations of supporting terrorism, which Doha denies - disrupted shipping routes to Qatar and closed its land border with Saudi Arabia, over which food and building materials were imported."



'via Blog this'

REFILE-UPDATE 2-Qatar's Commercial Bank in talks to sell United Arab Bank stake

REFILE-UPDATE 2-Qatar's Commercial Bank in talks to sell United Arab Bank stake:

"Qatari’s third-biggest lender, Commercial Bank, is in talks to sell its $217 million stake in Abu Dhabi-listed United Arab Bank, joining several Qatari companies exiting the United Arab Emirates (UAE) due to a widening Gulf rift. The potential buyer is a UAE-based strategic investor, two sources said, without giving its name. One of the sources said Commercial Bank (CBQ) had been considering selling its 40 percent stake in United Arab Bank even before June when Doha’s spat with some of its Arab neighbours began, but the Gulf crisis accelerated its plan."



'via Blog this'

Bond Sale Day Is Great Timing for Saudis to Ramp Up the Charm - Bloomberg

Bond Sale Day Is Great Timing for Saudis to Ramp Up the Charm - Bloomberg:

"All it does is give Saudi women a privilege others have had for more than a 100 years, but this is a landmark decision for the kingdom. And it’s great timing too. Saudi Arabia is in the market to sell dollar bonds today, it’s second this year. The decision to lift a ban that activists have fought for decades is a sign the kingdom is serious about transforming its society, one of the world’s most conservative, as part of a larger drive to diversify the Arab world’s biggest economy away from oil."



'via Blog this'

MIDEAST STOCKS-FTSE worries weigh on Saudi although car insurers outperform

MIDEAST STOCKS-FTSE worries weigh on Saudi although car insurers outperform:

"Car insurance and rental companies were some of the chief gainers in a generally weak Saudi Arabian stock market early on Wednesday after news that women would be allowed to drive.

King Salman on Tuesday issued a royal decree lifting the driving ban; it will be implemented by June 24, 2018, according to state news agency SPA.

There are about 10 million women, including foreigners, over the age of 20 living in the kingdom. Shares in all of the 30 listed insurers that provide auto insurance rose, led by Alrajhi Co for Cooperative Insurance, which surged 9 percent."



'via Blog this'

Focus on lower fees makes ETFs more attractive

Focus on lower fees makes ETFs more attractive:

"Growing up in a small farming community outside Kansas City, Vince Morris saw his share of poverty on farms, in the suburbs and the inner city. Seeing families struggling first-hand, he helped when he could, and as he earned an economics degree from the University of Kansas, it gave him an appreciation of the importance keeping costs down. Mr Morris, who is president of financial services at Bukaty Companies, a brokerage, advises companies on their retirement plan design, investment policy, due diligence and monitoring. Among the FT 401 list of leading US retirement advisers, he has allocated the most client assets to exchange traded funds — cheap tradeable baskets of assets."



'via Blog this'

Tuesday, 26 September 2017

Abu Dhabi to sell Italian exec-jet business to China buyers — source | GulfNews.com

Abu Dhabi to sell Italian exec-jet business to China buyers — source | GulfNews.com:

"Mubadala, an arm of the Abu Dhabi sovereign wealth fund, plans to sell the executive-jet business of Italy’s Piaggio Aerospace to a state-backed Chinese consortium in a deal that is now under scrutiny by Rome, a source familiar with the matter said.
The deal comes at a sensitive time for Chinese investments in the European Union, with the head of the European Commission recently proposing to limit state-backed foreign takeovers in hi-tech manufacturing, among other industries.

An Italian defence firm such as Piaggio Aerospace must notify the government of any big asset sale, even if it does not involve a defence asset."



'via Blog this'

Dubai airport passenger traffic up 6.6% in August, busiest month on record | GulfNews.com

Dubai airport passenger traffic up 6.6% in August, busiest month on record | GulfNews.com:

"Dubai International Airport, the world's busiest for international traffic, recorded its busiest month ever in August for passenger traffic, which the operator said was boosted by a seasonal increase in travellers. The number of passengers travelling through the airport increased 6.6 per cent to 8.23 million compared to the same month a year ago, operator Dubai Airports said in a statement on Tuesday. August is the third time this year the airport has seen record monthly passenger traffic, beating July's 8.07 million and January's 8.04 million. "



'via Blog this'

MIDEAST STOCKS-Oil lifts most markets, but global concerns weigh

MIDEAST STOCKS-Oil lifts most markets, but global concerns weigh:

"Rising oil prices helped Middle East indexes eke out modest gains on Tuesday, though shares more exposed to foreign funds followed global markets lower, weighed down by a list of worries including North Korea.

Brent oil surged 3.8 percent overnight to settle at $59.02 a barrel after major producers said the global market was on its way to rebalancing, and crude held near that level on Tuesday.

Riyadh’s index rose 0.2 percent as most petrochemical shares advanced, including bellwether Saudi Basic Industries which added 1.4 percent."



'via Blog this'

US oil producers lock in prices after crude’s rally

US oil producers lock in prices after crude’s rally:

"North American oil producers have pounced on the recent rise in crude prices to lock in sales at current levels, something that could safeguard prospective shale output in the face of a future downturn.

Bankers and brokers say hedging in the US and Canada has accelerated as West Texas Intermediate crude pushes above $50 a barrel, a break-even price for many shale oil companies.

“There’s been more producer-hedging in the past two weeks than in the past four or five months,” a banker said."



'via Blog this'

Electric cars put pressure on oil demand | Markets

Citi Says Get Ready for an Oil Squeeze - Bloomberg

Citi Says Get Ready for an Oil Squeeze - Bloomberg:

"Those in the oil market fearing a flood of OPEC supply next year will probably be better off preparing for a shortage, according to Citigroup Inc. Five countries in the group -- Libya, Nigeria, Venezuela, Iran and Iraq -- may already be pumping at their maximum capacity this year, Ed Morse, the bank’s global head of commodities research, said in an interview. Rather than a surge in output, there’s a risk of a market squeeze emerging as early as 2018, driven by those nations because of weaker investment in exploration and development, he said. “Fear in the market has been that OPEC production will rise dramatically,” said Morse. However, “there could be a supply gap emerging, which could point to a tighter market,” he said in Singapore on the sidelines of the S&P Global Platts APPEC Conference."



'via Blog this'

Saudi central bank announces measures to cut mortgage costs

Saudi central bank announces measures to cut mortgage costs:

"Saudi Arabia’s central bank has scrapped administrative fees for mortgage holders if they switch between fixed and floating rate loans, as part of new measures to boost the housing market. The Saudi Arabian Monetary Authority also announced, via its twitter account, other measures to help reduce mortgage costs, including allowing a mortgage holder to move to a new lender without additional costs. Mortgage laws and regulations are still being ironed out, according to one Jeddah-based analyst, and may be subject to modifications."



'via Blog this'

MIDEAST STOCKS-Gulf rises in early trade as crude oil scales two-year highs

MIDEAST STOCKS-Gulf rises in early trade as crude oil scales two-year highs:

"Stock markets in the Gulf rose early on Tuesday as crude oil prices climbed to a two-year high.

Brent oil surged 3.8 percent overnight to settle at $59.02 a barrel after major producers said the global market was on its way to rebalancing, and the commodity traded near that level on Tuesday morning.

Riyadh’s index rose 0.5 percent as all 13 petrochemical shares that were trading on Tuesday morning rose, including bellwether Saudi Basic Industries which was up 1.0 percent."



'via Blog this'

Monday, 25 September 2017

Sharjah intends to be right at the centre of innovation | GulfNews.com @bodour

Sharjah intends to be right at the centre of innovation | GulfNews.com:

"Last week, we successfully concluded the third edition of the Sharjah Foreign Direct Investment Forum (FDI Forum). The theme this year was the fourth industrial revolution. We discussed the transformations that are rapidly taking place in the world through technology, specifically in relation to Sharjah and the UAE. We emerged from the forum energised about the future, and have since been determined to continue this journey, until we become a top global FDI destination, and a leader in the field. There were a lot of topics in the matrix — nanotechnology, artificial intelligence, 3D printing, big data, smart robotics. Just name it. What clearly emerged from all these discussions, is that innovation is the new battleground for all economies."



'via Blog this'

Where Oil and OPEC Go From Here - Bloomberg

Where Oil and OPEC Go From Here - Bloomberg:

"Bassam Fattouh, director of the Oxford Institute for Energy Studies, argues that while U.S. shale poses a threat to OPEC, the idea that the organization has no role in the oil market is unrealistic. Fattouh was interviewed via email between Sept. 21-22. Comments have been edited and condensed.

 Can OPEC still manage the market given shale’s strength?

There is no doubt that the context within which OPEC is operating has dramatically changed. Within OPEC, the output from some producers such as Nigeria and Libya has become more uncertain. The re-entry of Iraq with its massive reserve base, low production cost and ambitious plans to increase its productive capacity, and Iran’s plans to increase productive capacity after the lifting of sanctions, will complicate the management of OPEC output."



'via Blog this'

Creditors tell High Court that Dana Gas sukuk get-out is "absurd"

Creditors tell High Court that Dana Gas sukuk get-out is "absurd":

"A claim by Dana Gas that it does not have to pay back its Islamic bonds because they are no longer sharia-compliant is “absurd” as repayment under such a scenario is covered in the original paperwork, creditors told a London High Court. United Arab Emirates energy producer Dana Gas said in June that its $700 million sukuk were unlawful and unenforceable under UAE law and began proceedings to have this confirmed in British and UAE courts, because while the purchase undertaking part of the sukuk is regulated by English law, the “mudarabah” agreement underlying it is regulated by UAE law. Mudarabah is a sukuk structure which resembles an investment management partnership."



'via Blog this'

MIDEAST STOCKS-Saudi shares drop on fear of FTSE delay, Qatar rises again

MIDEAST STOCKS-Saudi shares drop on fear of FTSE delay, Qatar rises again:

"Saudi Arabia’s stock index fell on Monday on rumours that index compiler FTSE might not upgrade Riyadh to emerging-market status as quickly as hoped, while Qatar notched up its fifth straight session of gains.

At the end of the business day on Sept. 29, FTSE will announce its decision on whether to include Saudi Arabia in its secondary emerging market index.

For several weeks the market had been pricing in a strong chance of an upgrade. Analysts have predicted Saudi Arabia could see around $3.2 billion to $3.7 billion of passive fund inflows as a result, although that would not occur until the decision actually took effect, probably in late 2018."



'via Blog this'

Why oil markets are taking Kurdish referendum in their stride

Why oil markets are taking Kurdish referendum in their stride:

"Today the Kurdistan region of Iraq (KRI) plans to hold a referendum on independence. The move has sparked fierce opposition from the Iraqi central government, as well as many western countries, the UN Security Council and neighbouring Iran and Turkey.

All sides have urged the Kurdistan Regional Government (KRG) to postpone the referendum arguing that it will lead to further destabilisation of Iraq and the region.

But the KRG is determined to push ahead. According to Kurdish officials, the referendum will not only be held in the three provinces formally under Kurdish jurisdiction but also include disputed areas claimed by both the central government and the KRG."



'via Blog this'

BP begins fracking at $16bn Oman gas project

BP begins fracking at $16bn Oman gas project:

"BP has started production from a $16bn gas project in Oman that involves the biggest use of US-style fracking technology so far seen in the Middle East.

The Khazzan field in central Oman is characterised by “tight” rock, which requires horizontal drilling and hydraulic fracturing to release trapped gas from depths of up to 5km below the surface.

BP said it had employed techniques developed in the US to open the field, showing how the American-led “unconventional” oil and gas revolution is slowly spreading to hard-to-reach resources in other parts of the world."



'via Blog this'

NMC Healthcare snaps up two Saudi hospitals for $40m - The National

NMC Healthcare snaps up two Saudi hospitals for $40m - The National:

"NMC Healthcare, the UAE's largest private healthcare provider, is expanding further into Saudi Arabia, the Arab world's largest economy, via two multi-speciality hospital acquisitions worth a combined US$40 million and two greenfield health facilities. The London-listed healthcare provider, which entered the kingdom last year via the acquisition of a 70 per cent stake in As Salama Hospital in Al Khobar, will acquire a 60 per cent stake in a new hospital in the southern city of Najran, and fully acquire a second hospital in the northwestern city of Ha’il. NMC also plans to build a multi-speciality facility in the eastern oil city of Al Khobar, and has received regulatory approvals for its proposed new long-term care facility, Chronic Care Specialty Medical Center, in the Red Sea port city of Jeddah."



'via Blog this'

Oman Chases Bigger Slice of Maritime Oil Trade With Port Project - Bloomberg

Oman Chases Bigger Slice of Maritime Oil Trade With Port Project - Bloomberg:

"Oman, the biggest Arab oil producer outside of OPEC, is turning up the heat in a regional battle for business from ships in need of fuel with a $600 million deal to build storage tanks at the port of Sohar. Sohar Port and Freezone signed a contract with Singapore-based trader Trescorp Alliance Pte to build an initial fuel-storage capacity of 600,000 cubic meters (21.2 million cubic feet) that will start operating by 2020, the Omani company’s chief executive officer, Mark Geilenkirchen, said in an interview. Trescorp plans to triple the facility’s capacity to 1.8 million cubic meters within a year, he said Monday in Dubai. The Indian Ocean port of Sohar is taking aim at some of the business that the oil trading hub of Fujairah, located on the same coastline in the neighboring United Arab Emirates, has had pretty much to itself. Fujairah is the Middle East’s biggest hub for ship fueling, or bunkering, and will provide more than four times the oil-storage capacity that Sohar expects to have by 2020. "



'via Blog this'

Iran Says OPEC Must Address Rising Libya, Nigeria Oil Output - Bloomberg

Iran Says OPEC Must Address Rising Libya, Nigeria Oil Output - Bloomberg:

"OPEC’s commitment to cutting production to clear a global glut is working, but the group needs to address rising output from Libya and Nigeria, Iran’s Oil Minister Bijan Namdar Zanganeh said. Compliance with the output cuts is “acceptable,” Zanganeh told reporters Sunday in Tehran. The Organization of Petroleum Exporting Countries should focus on “the situation with Libya and Nigeria,” he said, referring to the two countries exempted from capping production due to their internal strife. Nigeria will be able to participate in cuts when its output stabilizes at 1.8 million barrels a day, Oil Minister Emmanuel Kachikwu said Friday. “OPEC’s actions are working and compliance is acceptable overall, although there needs to be some change,” Zanganeh said, referring to OPEC members’ compliance with their pledges to pump less. “Changes are really related to Libya and Nigeria and the 100 percent compliance of everyone.” He didn’t elaborate."



'via Blog this'

UAE's oil supply cut compliance is 100 percent: energy minister

UAE's oil supply cut compliance is 100 percent: energy minister:

"The United Arab Emirates energy minister said the country’s compliance with a pact on global oil supply cuts stood at 100 percent. “UAE compliance is 100 percent and we announce cuts every month,” Suhail al-Mazroui told reporters on the sidelines of an event in the the capital Abu Dhabi on Monday. “In the last two months we cut 10 percent of our exports,” he said."



'via Blog this'

OPEC Deal With Russia Is Showing Signs of Strain - Bloomberg

OPEC Deal With Russia Is Showing Signs of Strain - Bloomberg:

"Saudi Arabia's former oil minister Ali al-Naimi complained in 2014 that Russia never followed through on its promises to reduce production during the 2008-2009 financial crisis, and he assessed the chance of cuts at “zero." Under his successor, Khalid Al-Falih, Russia -- leading a group of non-OPEC states -- has engaged in unprecedented cooperation with the Saudi-guided Organization of Petroleum Exporting Countries. Rising oil prices reflect some market optimism, but strains are again showing in the deal, up for renewal or expiry in March 2018. A failure to renew the accord would add further oversupply. Despite a bump in August, compliance is already weakening slowly. The conditions in the first half of this year were the most favorable: Russian production usually is stagnant in spring, due to weather. At the same time, Saudi domestic demand for power generation was lower, and Iraq and Iran struggled to boost output. Nonetheless, OPEC exports did not decline nearly as much as reported falls in production. Since then, Libyan production, though volatile, has recovered substantially, while Nigerian output also came back, as both have been exempt from cuts under the arrangement. Iran has recently started exceeding its agreed cap slightly, with production inching up, while investment is returning in Iraq, which has reluctantly agreed to the deal. To meet summer domestic demand, Saudi Arabia moved from over-complying to merely complying. OPEC’s goal of removing 1.16 million barrels per day from its October 2016 production has shrunk to only 489,000 bpd, taking into account the two exempt countries, while exports are down just 213,000 bpd, according to the tanker-tracking service Kpler."



'via Blog this'

Saudi Arabia Hires Goldman, JPMorgan, HSBC for Dollar Bond - Bloomberg

Saudi Arabia Hires Goldman, JPMorgan, HSBC for Dollar Bond - Bloomberg:

"Saudi Arabia will hold calls with fixed-income investors starting Monday as the world’s biggest oil exporter seeks to sell dollar bonds for the second time this year. The kingdom mandated Goldman Sachs Group Inc., GIB Capital, HSBC Holdings Plc, JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group Inc. as joint lead managers and bookrunners to organize the calls, according to two people familiar with the matter. A sale of 144a/ RegS bonds with maturities of more than five, 10 and 30 years will follow subject to market conditions, they said."



'via Blog this'

MIDEAST STOCKS-Dana Gas down before sukuk trial, Qatar extends gains

MIDEAST STOCKS-Dana Gas down before sukuk trial, Qatar extends gains:

"Shares of Abu Dhabi-listed Dana Gas fell sharply early on Monday, before a London court hearing on its maturing sukuk issue, while Qatar bucked an otherwise weak regional market. They stocks sank 2.7 percent after 90 minutes of trade, heading to their third straight session of losses, as investors awaited the outcome of a London High Court trial on the validity of the $700-million sukuk. It focuses on Dana Gas’s June announcement that it would not redeem its outstanding sukuk, or Islamic bonds, on the grounds that due to changes in interpretation of Islamic finance they’re no longer sharia-compliant and therefore unlawful in the UAE."



'via Blog this'

Sunday, 24 September 2017

Global sovereign wealth funds may invest $185 billion in real estate by 2020, Knight Frank says - The National

Global sovereign wealth funds may invest $185 billion in real estate by 2020, Knight Frank says - The National:

"Global sovereign wealth funds (SWF) have been boosting real estate holdings over the past decade and may spend US$185 billion on real estate by 2020, according to the real estate consultant Knight Frank. 

“Sovereign funds continue to build allocations in global real estate,” the consultancy said in a report. 

“This combination of increasing capital under management plus bigger target weightings towards real estate translates into very significant dry powder searching for suitable global prime real estate opportunities and will make them increasingly important landlords in even the largest markets.”  "



'via Blog this'

Pessimism Starts Paying Off for Turkey Stock Bears - Bloomberg

Pessimism Starts Paying Off for Turkey Stock Bears - Bloomberg:

"After nine frustrating months, Turkey bears are gaining the upper hand.

Istanbul stocks are heading for the first monthly decline since November 2016, after posting one of the five best gains globally in 2017. This month, the benchmark index has slipped to the world’s worst performance in dollar terms after Qatari stocks as technical signs deteriorate. The pain may just be getting started if a surge in short traders’ bets is any indication."



'via Blog this'

MIDEAST STOCKS-Dana Gas down as London sukuk trial to resume, Qatar up

MIDEAST STOCKS-Dana Gas down as London sukuk trial to resume, Qatar up:

"Shares of Abu Dhabi-listed Dana Gas fell sharply on Sunday after news that a London court hearing on its maturing sukuk issue would resume, while Qatar’s bourse bucked a general downtrend in the region. After several delays last week, a London High Court trial on the validity of $700 million of sukuk issued by Dana will go ahead on Monday. Dana said in June it would not repay holders of its Islamic bond, or sukuk, because it had become invalid under United Arab Emirates law. The case is being fought in UAE and British courts, and sukuk holders have been hoping the London court will produce a ruling that effectively shuts down Dana’s legal campaign in both jurisdictions. The uncertainty knocked Dana’s shares 5.1 percent lower on Sunday."



'via Blog this'

MIDEAST STOCKS-Dana Gas down as London sukuk trial set to resume, Qatar rises

MIDEAST STOCKS-Dana Gas down as London sukuk trial set to resume, Qatar rises:

"Shares of Abu Dhabi-listed Dana Gas fell sharply in early trade on Sunday on news that a London court hearing on its maturing sukuk issue would go ahead, while the rest of the region was mixed. Dana Gas lost 3.9 percent. After several delays last week, a London High Court trial on the validity of $700 million of sukuk issued by Dana will go ahead on Monday. Dana said in June it would not redeem its sukuk because they had become invalid under United Arab Emirates law. The case is being fought in UAE and British courts, and sukuk holders have been hoping the London court will produce a ruling that effectively shuts down Dana’s legal campaign in both jurisdictions."



'via Blog this'

Saturday, 23 September 2017

Dana Gas sukuk trial to continue in London on Monday - The National

Dana Gas sukuk trial to continue in London on Monday - The National:

"A complex trial on the validity of a Dana Gas Islamic bond will continue on Monday in London amid an ongoing dispute between bondholders including BlackRock and the Sharjah-based company.   The case will continue despite an injunction from a UAE court preventing Dana Gas and some of its bondholders from participating.  "The trial will proceed on Monday," said the UK high court judge George Leggatt. "I will treat the defendants' counterclaim as the primary claim and will hear oral argument on behalf of BlackRock as intervenors. They will be opening the case." "



'via Blog this'

VAT likely to affect UAE retail sector | GulfNews.com

VAT likely to affect UAE retail sector | GulfNews.com:

"The appliances sector, especially consumer electronics, will be hardest hit by the introduction of value-added tax (VAT), according to Euromonitor International.
As for other segments of the retail sector, the UAE’s first major tax will have varying degrees of impact, says Nikola Kosutic, Research Manager for Euromonitor International Middle East.

“Broadly speaking, the grocery segment will be least affected as most of it will be exempted,” Kosutic said, adding: “But the hardest hit will be the appliances segment due to the elasticity of demand for such products.”"



'via Blog this'

Boeing Lands $11 Billion 787 Deal From Resurgent Turkish Air - Bloomberg

Boeing Lands $11 Billion 787 Deal From Resurgent Turkish Air - Bloomberg:

"Turkish Airlines said it intends to purchase 40 of Boeing Co.’s 787-9 Dreamliners, a long-awaited deal that signals the carrier’s rebound following a terrorist attack on its Istanbul hub last year.

When finalized, the order would be valued at almost $11 billion before the customary discounts for large aircraft purchases. The pact, unveiled during a brief signing ceremony in New York late Thursday, came after years of market studies and negotiations for wide-body planes as the airline plotted its expansion.

Boeing’s carbon-composite Dreamliners will help upgrade Turkish’s fleet of long-range aircraft as it competes with other Middle Eastern airlines amid slowing growth in the region. The carrier’s expansion would hasten President Recep Tayyip Erdogan’s goal of making Istanbul one of the world’s premier air travel hubs. The airline already has 75 Boeing 737 Max jets on order, according to the planemaker’s website."



'via Blog this'

Oil heads for third weekly gain as Opec says market is improving | GulfNews.com

Oil heads for third weekly gain as Opec says market is improving | GulfNews.com:

"Oil was heading for a third weekly gain as Opec ministers meeting in Vienna urged a continued commitment to supply cuts they said are making good progress in draining a global glut. Front-month oil futures were little changed in New York, leaving them 1.3 per cent higher this week. It’s critical for the Organisation of Petroleum Exporting Countries to maintain focus and fully implement their agreed curbs, Secretary General Mohammad Barkindo said Friday. The oil market is well on its way to rebalancing and the pace of the drop in inventories in developed economies has accelerated, Kuwait’s Oil Minister Issam Al Marzooq said. Oil has advanced this month on forecasts for rising crude demand and as US Gulf Coast plants recover from Hurricane Harvey, which halted almost a quarter of the nation’s refining capacity. Nine months into the Opec-led supply agreement, implementation of the pledged production cuts remains high. Nigeria, which is currently exempt from making cuts, reiterated that it would accept a cap once output stabilises around 1.8 million barrels a day."



'via Blog this'

The Deep Damage from Dana's Debt Drama - Bloomberg Gadfly

The Deep Damage from Dana's Debt Drama - Bloomberg Gadfly:

"There is brinkmanship, and then there is Dana Gas. Not repaying your debt has been seen before -- but demanding previous payments back from investors is a new one.Dana Gas PJSC is an independent natural gas supplier from Sharjah, one of the smaller United Arab Emirates. It produces most of its energy from the Kurdish region of Iraq as well as Egypt. With a market capitalization of about $1.5 billion it may not be a major player, but it has certainly learnt how to play hardball in legal wranglings over its sukuk securities.Its dispute with investors including Blackrock Inc. and Goldman Sachs Group Inc. is now making its way through the English courts -- the latest wrinkle is due on Monday -- and trading suggests bond holders are banking on common sense prevailing. "



'via Blog this'

Friday, 22 September 2017

Lufthansa set to land Air Berlin assets, sources reveal - The National

Lufthansa set to land Air Berlin assets, sources reveal - The National:

"Lufthansa is set to pick up a large part of insolvent rival Air Berlin, and easyJet is also still in the running for some assets, two sources familiar with the matter said. Air Berlin’s creditors met on Thursday to discuss offers for Germany’s second largest airline and agreed the carve-up, the sources said. Air Berlin, which has about 8,000 employees and operates 144 mostly leased planes, filed for insolvency in August after major shareholder Etihad pulled the plug on funding."



'via Blog this'

OPEC, Allies Wait and See If Oil Cuts Need to Be Extended - Bloomberg

OPEC, Allies Wait and See If Oil Cuts Need to Be Extended - Bloomberg:

"OPEC and its allies indicated that they’ll wait a bit longer to see if further action is required in their bid to clear a global oil glut. Ministers from nations that together pump more than half the world’s oil at times made conflicting statements, but broadly signaled that their meeting on Friday wouldn’t take concrete steps to address concerns that their agreement may end too early. While their production cuts have shown signs of success in recent months, the market could return to surplus next year if the group allows the accord to expire at the end of March. “OPEC members are trying to target a figure of close to $60 a barrel. We’re not too far away from that,” Nigerian Minister of State for Petroleum Emmanuel Ibe Kachikwu said in an interview on Friday with Bloomberg television in Vienna. “If we get to March and find that there’s a need to do more, I think we will.”"



'via Blog this'

Saudi Arabia to implement bankruptcy law in early 2018 - Al Arabiya

Saudi Arabia to implement bankruptcy law in early 2018 - Al Arabiya:

"Saudi Arabia will begin implementing a new bankruptcy law early next year as part of efforts to attract foreign investment and encourage private sector activity, Saudi-owned broadcaster Al Arabiya reported citing the kingdom’s commerce minister.

Under current legislation there is no easy way to wind up the activities of indebted companies in Saudi Arabia and the new law could help with government plans to restructure the economy and make it more attractive to outside investors.

“(The) bankruptcy law has been passed to the Shura Council and we expect it to be implemented by the end of the first quarter of 2018,” Commerce and Investment Minister Majid al-Qusaibi said in an interview according to Al Arabiya’s website."



'via Blog this'

Thursday, 21 September 2017

QIA Is Said to Plan Sale of Credit Suisse's Canary Wharf Office - Bloomberg

QIA Is Said to Plan Sale of Credit Suisse's Canary Wharf Office - Bloomberg:

"The Qatar Investment Authority plans to sell an office building in London’s Canary Wharf financial district which is leased to Credit Suisse Group AG, according to two people familiar with the matter. The Gulf state’s sovereign-wealth fund appointed brokers CBRE Group Inc. and Jones Lang LaSalle Inc. to offer the building for about 450 million pounds ($610 million), the people said, asking not to be identified because the matter is private. A spokesman for QIA declined to comment on the plan, which CoStar News reported earlier Thursday."



'via Blog this'

London judge postpones decision on Dana Gas sukuk hearing

London judge postpones decision on Dana Gas sukuk hearing:

"A London High Court judge will decide on Friday whether to continue proceedings on the validity of $700 million sukuk issued by Dana Gas in a case which is being closely watched by the global Islamic finance industry. United Arab Emirates producer Dana Gas started proceedings in June in UK and UAE courts seeking to have its sukuk, or Islamic bonds, declared invalid and unlawful because of changes in the interpretation of Islamic finance. The UK trial started on Tuesday, but a last-minute injunction obtained by some shareholders from a UAE court in Sharjah prevented Dana Gas and the legal representatives of another party to the case, Deutsche Bank, from participating in the trial."



'via Blog this'

MIDEAST STOCKS-Petchems support Saudi as oil stays near $56, Qatar up again

MIDEAST STOCKS-Petchems support Saudi as oil stays near $56, Qatar up again:

"An overnight rise in crude oil prices to a fresh five-month peak helped to push the Riyadh stock index slightly higher on Thursday while Qatar secured its third straight day of gains.

The Saudi index edged up by 0.1 percent as all but two of the 14 listed petrochemical producers rose as Brent contracts traded around $56 a barrel.

Yanbu National Petrochemical added 0.9 percent. Shares in the large-cap producer have been active for four sessions, and one Riyadh-based analyst told Reuters that investors have been building positions in “relatively safer petrochemical stocks” because of the recent climb in the oil price."



'via Blog this'

MIDEAST STOCKS-Banks support Saudi after Fed comments, Qatar cools

MIDEAST STOCKS-Banks support Saudi after Fed comments, Qatar cools:

"Banking shares lifted the Saudi stock index slightly higher in early trade on Thursday but Qatar’s index cooled after it had risen for two straight days. The Riyadh index rose 0.2 percent after 20 minutes of trade as nine of the 12 listed banks rose after the U.S. Federal Reserve left interest rates unchanged on Wednesday but signaled it still expects one more increase by the end of the year. Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, United Arab Emirates and Qatar. A rate hike is considered positive for banks because it lifts their interest rate margins."



'via Blog this'

Wednesday, 20 September 2017

Crescent Petroleum, Dana Gas file arbitration against Hungarian partner - The National

Crescent Petroleum, Dana Gas file arbitration against Hungarian partner - The National:

"Crescent Petroleum and Dana Gas have sold shares in Hungary’s MOL Group, their partner in the Pearl consortium operating in northern Iraqi region of Kurdistan, and started arbitration proceedings over the recent settlement with the Kurdistan Regional government (KRG). “Unfortunately, MOL unreasonably sought to link its endorsement of the settlement to a renegotiation of the terms by which it first secured its participation in Pearl back in May 2009,” Dana Gas said in a filing on the Abu Dhabi bourse. “And now [MOL] complains about Dana Gas and Crescent Petroleum for their handling of the settlement alongside Pearl, expressing dissatisfaction with the outcome as compared to the alternative of pursuing a final litigation and enforcement outcome against the KRG.”"



'via Blog this'

Kuwait's Alshaya invests in $1bn e-commerce platform Noon ahead of its launch - The National

Kuwait's Alshaya invests in $1bn e-commerce platform Noon ahead of its launch - The National:

"MH Alshaya, the Kuwaiti franchise operator which is present across the Arab world, Turkey and Russia, bought a stake in e-commerce platform Noon. It is a US$1 billion joint venture between a group of investors led by UAE billionaire businessman Mohamed Alabbar and Saudi Arabia’s Public Investment Fund and is expected to launch later this year.

Alshaya, whose franchises include Starbucks, Muji, Boots, The Cheesecake Factory and Victoria’s Secret, is the first retailer to announce a partnership with Noon, which was supposed to launch in January with 20 million products. The e-commerce retailer has said it will launch operations “later this year”, giving no further details.

The size of Alshaya’s investment in the platform was not disclosed."



'via Blog this'

Size of GCC asset management market to double by 2020 - The National

Size of GCC asset management market to double by 2020 - The National:

"Assets under management are forecast to more than double in 2020 from 2016 levels in the Arabian Gulf region as Sharia-compliant investments continue to rise and an expanding middle class presents more growth opportunities. The total assets managed by fund managers in the GCC, a region which accounts for about a third of the world’s proven oil reserves, are expected to rise to US$110.9 billion in 2020 from $45.8bn in 2016, according to a report released by Dubai International Financial Centre (DIFC) yesterday.  The report, Mapping Opportunities in the Middle East, Africa, and South Asia region (Menasa) region, complied in partnership with Thomson Reuters, explores investment opportunities in the broader Menasa region and provides a five-year projection for wealth management in key countries."



'via Blog this'

Iran’s Leaders Are Bolstered by Billions in Loans From the East - Bloomberg

Iran’s Leaders Are Bolstered by Billions in Loans From the East - Bloomberg:

"As Donald Trump escalates his offensive against Iran, its leaders are being bolstered by billions of dollars flowing from the east.

It was the turn of the Chinese last week, as a group of Iranian banks secured $10 billion in loans from Citic Group, and Iran signed preliminary agreements worth about $15 billion with China Development Bank. That followed a $10 billion credit accord with Japan last year, and Iran has also signed a $9.6 billion deal with the Export-Import Bank of Korea.

The funding is a “big political statement from governments,” some traditionally close to America, at a time when the U.S. is seeking help in confronting Iran, said Henry Smith, lead analyst on Iran and the Middle East at the Dubai office of Control Risks, a global risk consultancy. Major private lenders aren’t about to drop their guard with Iran, he said, but having states heavily invested can boost the confidence of executives pondering their plans."



'via Blog this'

Abu Dhabi's Adnoc Considers IPO for Shipping Business - Bloomberg

Abu Dhabi's Adnoc Considers IPO for Shipping Business - Bloomberg:

" Abu Dhabi National Oil Co. is considering a plan to sell shares in its shipping unit as part of a broader strategy to attract investment into the emirate that pumps most of the crude in the United Arab Emirates, according to people with knowledge of the project. State-run Adnoc is merging three maritime transport and service businesses and will only decide on whether to sell a minority stake in the new unit through an initial public offering once that transaction is done, said the people who asked not to be identified because the proposal is confidential. The new company would have to prove its attractiveness to investors and a sale isn’t likely to go ahead before 2019, the people said. Adnoc didn’t specifically comment on the plan for the shipping unit. In an emailed response to questions from Bloomberg, the company said it is “expanding its partnership model and creating new investment opportunities.” It said “Adnoc is therefore considering the potential IPO of minority stakes of some of its services businesses which have attractive investment and growth.” It reiterated that it won’t sell shares in the Adnoc Group holding company."



'via Blog this'

MIDEAST STOCKS-Qatar extends rebound, Dana Gas down ahead of trial

MIDEAST STOCKS-Qatar extends rebound, Dana Gas down ahead of trial:

"Qatar’s stock index extended gains for a second day on Wednesday as local and international funds stepped up buying after a long spell of weakness. The Doha index broke an 11-day losing streak on Tuesday, though the benchmark index is still down 18.5 percent so far this year. It has been hurt by the economic and political boycott of Qatar by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt."



'via Blog this'

Arqaam Capital bullish on prospects of Egyptian markets | GulfNews.com

Arqaam Capital bullish on prospects of Egyptian markets | GulfNews.com:

"Arqaam Capital said on Wednesday it swill continue to build its local capabilities in Egypt to provide a bridge for capital flows into the Egyptian economy by leveraging the bank’s world class capabilities to service both Egyptian and international clients looking to do business in Egypt. “With the brave and bold economic and structural reform program that the Government of Egypt has embarked on, we are bullish with respect to the future prospects of the Egyptian market. We are witnessing first-hand the steady improvement in the country’s key economic indicators, and we do believe that while significant challenges still remain, we see more opportunities than risks going forward,” Radi Al Helw, Managing Director, Arqaam Egypt said in a statement."



'via Blog this'

UAE will defend industries after U.S. dumping accusations

UAE will defend industries after U.S. dumping accusations:

"The United Arab Emirates (UAE) will spare no efforts to defend its industries after the United States found that UAE companies were dumping carbon and alloy steel wire rod in the U.S. market, the Gulf state said on Wednesday.

The U.S. Commerce Department said in an initial finding on Sept. 6 that exporters from the UAE had sold wire rod products at 84.1 percent below fair value and that it would ask U.S. customs to collect duties.

The UAE Ministry of Economy told Reuters it was “paying close attention” to the investigations and would defend UAE industries “with every tool at our disposal,” in line with World Trade Organisation (WTO) agreements."



'via Blog this'

MIDEAST MONEY-Abu Dhabi targets IPOs worth $5 bln ahead of Saudi Aramco

MIDEAST MONEY-Abu Dhabi targets IPOs worth $5 bln ahead of Saudi Aramco:

"Abu Dhabi is hoping to fast-track at least $5 billion of stock market listings by state-backed companies next year before Saudi Aramco’s planned $100 billion IPO dominates investor demand. Like neighbouring Saudi Arabia, Abu Dhabi is restructuring its industrial sector, hoping to lure foreign investors with privatisations after lower energy prices depleted its coffers. This could result in at least five large listings including Abu Dhabi National Oil Co (Adnoc‘s) fuel distribution unit, aluminium-maker EGA, industrial conglomerate Senaat and Abu Dhabi Ports, government and banking sources said."



'via Blog this'

MIDEAST STOCKS-Qatar up again in otherwise weak region, Dana Gas flat after trial adjourned

MIDEAST STOCKS-Qatar up again in otherwise weak region, Dana Gas flat after trial adjourned:

"Qatar’s stock market extended gains in early trade on Wednesday as local investors bought on price dips, in an otherwise weak Gulf region. The Doha index rose 0.5 percent after 40 minutes of trade, extending the previous session’s small 0.1 percent rise. “Local funds are stepping up, and buying after the market has lost 10 percent since early August, some companies are looking pretty cheap,” said a Doha-based fund manager."



'via Blog this'

Tuesday, 19 September 2017

UAE Central Bank ramps up clampdown on banks mis-selling consumer and investment products - The National

UAE Central Bank ramps up clampdown on banks mis-selling consumer and investment products - The National:

"The Central Bank of the UAE has stepped up action against banks following complaints of mis-selling on consumer and investment products, a senior executive at the institution said on Tuesday, Nariman  Alawadhi, chief manager at the Central Bank, said that 100 clients have had money returned to them by banks thanks to the institution's clampdown. “We get a lot of complaints about investment products. The consumer is ignorant and does not know much; at the same time the bank is not clear and does not tell you if this product is good for you or not,” she told delegates at a business platform on financial literacyamong the nation's youth, hosted by the Emirates Foundation."



'via Blog this'

IFC plays an all-rounder role for private sector, governments in region | GulfNews.com

IFC plays an all-rounder role for private sector, governments in region | GulfNews.com:

"International Finance Corporation (IFC), a member of the World Bank, has invested $6 billion in the region, playing an all-round role in financing, advising, among others, and a top official said its role is important as ever as foreign investors become averse. IFC, which is the largest global development institution focused on the private sector in developing countries, has invested billions of dollars directly or indirectly through private equity firms and venture capitalist in 400 firms. “As objectives change and as situation of countries changes, as foreign investors feels less comfortable with certain countries depending on their macro environment, we have a higher risk appetite. So investors are leaving the town, we are going in. So it’s a counter cyclical role, we play it quite well,” Deepak Khanna, Chief Investment Officer at IFC, told Gulf News on the sidelines of the Sharjah FDI Forum."



'via Blog this'

Dana Fight With BlackRock to Start Despite U.A.E. Court Order - Bloomberg

Dana Fight With BlackRock to Start Despite U.A.E. Court Order - Bloomberg:

"A London lawsuit over $700 million in Shariah-compliant bonds issued by Dana Gas PJSC will go ahead despite a last-minute United Arab Emirates court order that attempted to stop the company from taking part in the trial. Dana Gas stunned investors and the Islamic finance community when it announced in June that it had reviewed its own bonds and found they were not Shariah compliant. Bondholders, led by Goldman Sachs Group Inc. and BlackRock Inc., hired investment bankers and then lawyers when it became clear they were facing losses of 90 percent or more. But Tuesday, on the first day of the trial, lawyers said an order issued by a court in the U.A.E., where Dana is based, prevented the company from participating in the London case. Judge George Leggatt postponed the start of the trial until Thursday and said that the dispute could go ahead without Dana."



'via Blog this'

Atlas Jewellery debt resolution plan hits stumbling block -sources

Atlas Jewellery debt resolution plan hits stumbling block -sources:

"Three banks are blocking a deal aimed at resolving the close to 500 million dirhams ($136.1 million) debt troubles of Dubai-based Atlas Jewellery, banking sources said.

Atlas, which once had more than 50 retail branches across the Gulf and India, defaulted on loans in 2015 and its owner, M. M. Ramachandran, was sentenced to a three-year jail term for writing cheques without sufficient funds for them to clear.

Since then banks have struggled to secure repayment, leading to the United Arab Emirates central bank trying to broker a deal that would put on hold legal action against Ramachandran so he could be released from jail to facilitate asset sales to repay banks while restructuring the company’s remaining debt, the sources said."



'via Blog this'

UPDATE 1-Judge tells Dana Gas London trial could go ahead without it #Sharjah #UAE

UPDATE 1-Judge tells Dana Gas London trial could go ahead without it:

"A High Court judge called on Tuesday on Dana Gas and its creditors to agree on a way for a trial seen as shaping the future of Islamic finance to proceed and said he might complete it regardless of whether all parties were present.

George Leggatt adjourned the trial until Thursday after lawyers for Dana Gas said that it was prevented from taking part in the proceedings because of an injunction by a UAE court.

Leggatt said before adjourning the trial that it was difficult to foresee what arguments could be advanced before the Sharjah court to prevent the English court from ruling on matters of English law."



'via Blog this'

Qatar flooded banks with $8 billion in August to offset outflows

Qatar flooded banks with $8 billion in August to offset outflows:

"Qatar pumped 29.1 billion riyals ($8 billion) into its banking system in August to cushion it from withdrawals by financial institutions from neighboring Arab states due to the Gulf’s diplomatic crisis, central bank data showed. The current crisis, triggered by the political and economic boycott of Qatar by the United Arab Emirates, Saudi Arabia, Bahrain and Egypt, had already led to government deposit injections of $6.9 billion in July and $10.9 billion in June. The Saudi-led bloc accuses Qatar of supporting terrorism, a charge denied by Doha."



'via Blog this'

The World’s Biggest Wealth Fund Hits $1 Trillion - Bloomberg

The World’s Biggest Wealth Fund Hits $1 Trillion - Bloomberg:

"Norway’s sovereign wealth fund hit $1 trillion for the first time on Tuesday, driven higher by climbing stock markets and a weaker U.S. dollar.

The milestone valuation was reached for the first time on Sept. 19 at 2:01 a.m. in Oslo, Norges Bank Investment Management said in a statement on Tuesday.

“I don’t think anyone expected the fund to ever reach $1 trillion when the first transfer of oil revenue was made in May 1996,” Yngve Slyngstad, chief executive officer of the fund, said in the statement. “Reaching $1 trillion is a milestone, and the growth in the fund’s market value has been stunning.”"



'via Blog this'

Banks Hire Lazard to Solve Turkey's Biggest Default - Bloomberg

Banks Hire Lazard to Solve Turkey's Biggest Default - Bloomberg:

"Banks that provided a $4.75 billion loan to Turk Telekomunikasyon AS’s major shareholder hired Lazard Ltd. to advise them on the nation’s biggest ever default, according to three people with knowledge of the matter. The creditors also hired Raiffeisen Investment AG to advise in negotiations over the loan taken out by Ojer Telekomunikasyon AS, or Otas, which owns 55 percent of Turk Telekom. Other parties to the talks are the Turkish Treasury, which also has a stake in the company, and Saudi Telecom Co., which indirectly owns shares, the people said. Spokesmen for Turk Telekom, Otas and Raiffeisen declined to comment, while Lazard officials didn’t immediately respond to a request for comment."



'via Blog this'

MIDEAST STOCKS-Qatar slightly off 5-yr low as local traders buy, Saudi worst performer

MIDEAST STOCKS-Qatar slightly off 5-yr low as local traders buy, Saudi worst performer:

"Qatar’s stock index came slightly off a five-year low on Tuesday as local funds intensified their buying of those shares, while Saudi Arabia was the region’s worst performer.

The Doha index had recorded 11 straight sessions of losses, reflecting a lack of foreign investor confidence in a speedy resolution to the Gulf diplomatic crisis.

Local investors, however, have been net buyers for several weeks and on Tuesday they made up roughly three-quarters of the total market turnover, bourse data showed, helping lift the index 0.1 percent higher."



'via Blog this'

Abu Dhabi Financial Group plans $100 mln private bond sale -sources

Abu Dhabi Financial Group plans $100 mln private bond sale -sources:

"Abu Dhabi Financial Group (ADFG), a privately owned investment company with over $5 billion of assets under management, is considering issuing $100 million in debt through a privately placed bond, sources familiar with the matter said. The private placement, with a three-year tenor according to the sources, would come at a relatively calm time in the Gulf’s debt capital markets, which have seen little to no issuance over the summer months. The lull was interrupted last week by a $3 billion debt sale by Bahrain, which is to be followed this week by a dollar bond sale by Saudi Arabia’s Islamic Development Bank. But corporate issuances have been rarer, with the latest being a $375 million bond by United Arab Emirates’ Topaz Marine last July."



'via Blog this'

Qatar Pours More Billions Into Local Banks as Crisis Drags On - Bloomberg

Qatar Pours More Billions Into Local Banks as Crisis Drags On - Bloomberg:

"Qatari authorities stepped up their support of domestic banks for the third month in a row in August in an attempt to offset foreign withdrawals as the showdown between the Gulf emirate and a Saudi-led alliance show no sign of abating. Public-sector deposits in the world’s largest exporter of liquefied natural gas grew by 10.5 percent to 295 billion riyals ($80 billion) from 267 billion riyals in July, according to central bank data. That bring the increase to about 53 billion riyals since the crises broke out more than three months ago. The support helped total deposits grow 5 percent to 645 billion riyals even as non-resident deposits declined for a third straight month to 149 billion riyals, the data show. They stood at 171 billion in June."



'via Blog this'