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Tuesday, 13 June 2017

Qatar fallout for oil and LNG shipping fogged by conflicting port authority signals | The National

Qatar fallout for oil and LNG shipping fogged by conflicting port authority signals | The National:

"The effects on energy trade flows of the diplomatic squeeze on Qatar by some of its Arabian Gulf neighbours have been hard to gauge so far.

The Saudi-led move to sanction Qatar for alleged support of terrorism has included a ban on all Qatar vessels from the sea territory of Saudi Arabia, the UAE, Bahrain and Egypt, as well as from the air and land. It has certainly disrupted shipping in general.

The latest circular from the port of Fujairah yesterday was different to one issued on June 5, when the sanctions were first imposed, and appeared to redraw restrictions imposed on vessels that might be stopping to take on bunker fuel at the port before continuing their journey on trade routes to Asia or the West."



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Dana Gas Plans Profit Rate Cut on Sukuk in Restructuring Twist - Bloomberg

Dana Gas Plans Profit Rate Cut on Sukuk in Restructuring Twist - Bloomberg:

"Dana Gas PJSC plans to more than halve profit rates on $700 million of its Islamic bonds after they were found to be non-compliant with religious law, adding a new twist to a debt restructuring initiated in May.

The United Arab Emirates-based energy producer said on Tuesday in a filing that it proposes exchanging $350 million of 9 percent certificates and $350 million of 7 percent exchangeable certificates with a new four-year security paying profit "at less than half of the current profit rates and without a conversion feature."

"Due to the evolution and continual development of Islamic financial instruments and their interpretation, the company has recently received legal advice that the sukuk in its present form is not Sharia compliant and is therefore unlawful under U.A.E. law," the company said. "A restructuring of the current Sukuk is necessary to ensure that it conforms to the relevant laws for the benefit of all stakeholders." "



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MIDEAST MONEY-Property, minority holders keep Dubai stocks down despite positives | Reuters

MIDEAST MONEY-Property, minority holders keep Dubai stocks down despite positives | Reuters:

"Stocks are cheap and the economy
is booming, but Dubai's equity market may not recover from a
severe slump until it has overcome two weaknesses: its exposure
to weak property prices, and gloom among minority shareholders
who have little say in listed firms.

With the exception of Qatar, which has plunged this
month because of the embargo imposed on it by other Arab states,
Dubai has been the worst-performing major stock market
in the Middle East over the past 12 months.

Its index is up only 2.7 percent from a year ago,
underperforming markets such as Kuwait, which is up 24.9
percent, and even Saudi Arabia, which has been hit hard
by low oil prices but is still 3.8 percent higher."



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Oil settles up before API reports surprise U.S. crude build | Reuters

Oil settles up before API reports surprise U.S. crude build | Reuters:

"Oil prices settled higher on Tuesday after OPEC detailed supply cuts around the world, but the cartel also said overall production rose in May, and crude stayed well below $50 a barrel despite the modest recovery.

Following the close, crude prices slipped after industry group the American Petroleum Institute said crude stocks rose by a surprising 2.8 million barrels for the week to June 9, counter to forecasts for a 2.7 million-barrel drawdown.

Benchmark Brent crude LCOc1 settled 43 cents higher at $48.72 a barrel while U.S. light crude CLc1 settled up 38 cents to $46.46 a barrel."



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Qatar Banks Said to Boost Deposit Rates to Attract Dollars - Bloomberg

Qatar Banks Said to Boost Deposit Rates to Attract Dollars - Bloomberg:

"Some Qatari banks are boosting interest rates on dollar deposits to shore up liquidity as a Saudi-led campaign to isolate the gas-rich Arab state intensifies, people familiar with the matter said.

The lenders are offering a premium of as much as 100 basis points over the London interbank offered rate to attract dollars from regional banks, two of the people said, asking not to be named because the matter is sensitive. That compares with rates of 20 basis points over Libor before the feud started on June 5.

Some of the banks are dealing with regional lenders directly instead of using brokers, which allows them to determine interest rates depending on the amount being deposited, two of the people said."



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The Market Math Behind the Saudi-Russia Romance - Bloomberg Gadfly

The Market Math Behind the Saudi-Russia Romance - Bloomberg Gadfly:

"If it feels like Russia is just cropping up all over the place these days, you are no doubt focused on oil.No? Well, anyway, Russia's role in the global oil market has become even more important than usual. And BP's latest annual review of energy statistics, released on Tuesday, helps show why.Russia, and the Soviet Union before it, has long been a big oil producer:"



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MIDEAST STOCKS-Gulf mixed as Qatar falls back, Abu Dhabi's Dana Gas soars | Reuters

MIDEAST STOCKS-Gulf mixed as Qatar falls back, Abu Dhabi's Dana Gas soars | Reuters:

"Gulf stock markets were mixed on Tuesday as Qatar fell back, still affected by other Gulf states' sanctions against Doha, while Abu Dhabi's Dana Gas soared on its proposal to restructure a $700 million sukuk. Qatar's index fell by 0.4 percent but remained more stable than when the sanctions were announced last week. Qatar National Bank, the region's largest lender, fell by 1.3 percent. Like other Qatari banks, it has been hit by concern that the economic and diplomatic boycott imposed by Saudi Arabia and its allies could reduce its access to foreign funding. However, some other lenders held firm, with Doha Bank up 0.2 percent."



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Dubai’s business conditions improve, but growth momentum eases | GulfNews.com

Dubai’s business conditions improve, but growth momentum eases | GulfNews.com:

"The Emirates NBD Dubai Economy Tracker Index (DETI) for May points to strong but slower growth in Dubai’s economy, which is consistent with the UAE and Saudi Arabia PMI surveys for May.
DETI declined to 55 in May from a 26-month high of 57.7 in April. Firms surveyed indicated that more projects, particularly in the construction sector, boosted business activity in May. Employment (50.7) rose slightly in May.

“The decline in the DETI in May is consistent with what we’ve seen in the regional country surveys. However, the data still points to a robust expansion in the non-oil private sector last month. The construction sector survey is particularly encouraging with the sector index near the highest level in one-and-a-half years,” said Khatija Haque, Head of Mena Research at Emirates NBD."



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Qatari riyal touches fresh low as pressure on peg grows

Qatari riyal touches fresh low as pressure on peg grows:

"Pressure on Qatar’s currency peg grew as the diplomatic crisis with its Gulf neighbours entered its second week, with the riyal falling to new 19-year lows despite the government’s public commitment to defending the exchange rate. Qatar’s central bank attempts to keep the riyal fixed in an extremely narrow range around QR3.64 per dollar, but a Saudi-led blockade of the kingdom has prompted speculation that the bank will be forced to weaken the currency. Ali Shareef Al Emadi, Qatar’s finance minister, told CNBC at the start of the week that “I don’t think there is any reason that people need to be concerned about what’s happening or any speculation on the Qatari riyal”, but his reassurances have done little to ease the pressure."



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Deyaar ex-CEO jailed for 25 years after losing appeal - Zack Shahin | GulfNews.com

Deyaar ex-CEO jailed for 25 years after losing appeal | GulfNews.com:

"The famous Deyaar graft case came to an end on Monday after Dubai’s highest court dismissed the appeal lodged by Deyaar’s former chief executive officer, who will spend 25 years in jail.  Following nine years and three months of litigation, the Dubai Cassation Court rejected two appeals lodged by the 52-year-old American-Lebanese ex-CEO, who was seeking acquittal in two graft cases in which he was accused of indulging in financial irregularities to the tune of Dh56 million and Dh43 million, respectively, during his tenure at Deyaar. Presiding judge Abdul Aziz Abdullah dismissed the appeals of the defendant, who will have to spend 15 years and 10 years in jail correspondingly, and pay around Dh92 million in fines."



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Qatari Real Estate Bonds Hit the Hardest by Diplomatic Dispute - Bloomberg

Qatari Real Estate Bonds Hit the Hardest by Diplomatic Dispute - Bloomberg:

"The worst-performing bonds in the Gulf last week were two sukuk issued by Qatar’s Ezdan Holding Group QSC.

Shariah-compliant debt sold by the real estate company mainly to private banks and wealthy individuals sank as much as 9.9 percent, pushing the yield up 245 basis points to 7.21 percent, according to data compiled by Bloomberg. The dollar-denominated bonds rebounded Monday as Qatar Finance Minister Ali Shareef Al Emadi said the economy can withstand a rupture of diplomatic ties with a Saudi Arabia-led group of Arab nations."



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Economists' View of Qatar Cutoff Is a Little Scary - Bloomberg

Economists' View of Qatar Cutoff Is a Little Scary - Bloomberg:

"Experts on international relations typically approach foreign affairs using different tools than economists use. The analysts -- with their knowledge rooted in a deep study of a particular country or region -- deploy complex, interdisciplinary models with many moving parts and less formalism. Economic models of foreign policy are more likely to assume some kind of rational behavior, use more game theory and treat the capture of wealth as a significant political end. Suffice to say, economic models have not taken over the study of international relations, but periodically it is worth checking in to see what they say. And right now there is a big red light flashing: the trade and border shutdowns that Saudi Arabia and six other countries have directed at Qatar, a highly vulnerable nation that imports most of its food. Those events could be the most significant of Donald Trump’s presidency so far. Some reports indicate the Saudis are demanding Qatar cut off links with Iran, limit its ties to Hamas and the Muslim Brotherhood, and shutter the Al-Jazeera news network, among other conditions. Whether or not that exact account is true, clearly the blockading coalition wants concessions and basically has committed some acts of war to demand them. If Qatar gives in, this could begin an unraveling of yet more global alliances. You don’t have to endorse Qatar’s financial support for terrorist groups (not uncommon in the region, by the way) to find that a very disturbing prospect."



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MIDEAST STOCKS-Gulf mixed in early trade; Qatar National Bank slides | Reuters

MIDEAST STOCKS-Gulf mixed in early trade; Qatar National Bank slides | Reuters:

"Gulf stock markets were narrowly mixed in early trade on Tuesday although Qatar National Bank , the region's largest lender, fell more than 1 percent, pulling the Qatari index down. QNB was off 1.1 percent after an hour of trade. Like other Qatari banks, it has been hit by concern that the embargo mounted against Qatar by other Arab states could reduce its access to foreign funding. However, some other Qatari banks such as Masraf Al Rayan were firm on Tuesday morning, and the stock index fell only 0.2 percent."



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