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Sunday, 16 July 2017

Swiss investment bank UBS says Saudi Arabian economy is stabilising - The National

Swiss investment bank UBS says Saudi Arabian economy is stabilising - The National:

"The Swiss investment bank UBS said that Saudi Arabia's economy appears to be stabilising ahead of its possible inclusion in the MSCI Emerging Markets stock index even amid volatile oil prices and regional conflicts.  Economists at UBS are predicting that GDP growth for the country's economy will stabilise at about 1 per cent this year and that its currency, which is pegged to the US dollar, will remain unchanged at 3.75 Saudi Arabian riyals over the next 12 months.  “Despite the geopolitical situation, we expect the Kingdom’s economic growth to stabilise and its deficits to shrink,” said Ali Janoudi, head of wealth management for Central & Eastern Europe, Middle East and Africa at UBS and vice chairman of UBS Saudi Arabia.   "



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IMF lowers UAE growth forecast for this year and 2018 on low oil prices - The National

IMF lowers UAE growth forecast for this year and 2018 on low oil prices - The National:

"The IMF has lowered its growth forecast for the UAE for this year and 2018, as low oil prices continue to impact the economy.

The fund, however, said over the medium term non-oil growth is forecast to stay around 3 per cent, thanks to higher investment in the lead-up to Expo2020. It also said the introduction of a 5 per cent value added tax (VAT) in January next year will not have a “significant adverse impact on growth".

Overall growth this year is now projected to reach 1.3 per cent, compared to its 1.5 per cent forecast in April due to a slower expansion in the non-oil economy, which will grow 3.3 per cent, compared to 3.8 per cent in its previous forecast. The growth forecast for next year was lowered one percentage point to 3.4 per cent from 4.4 per cent in April, owing to an easing of oil growth to 3.2 per cent, compared with 6.2 per cent in the April forecast.

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Mashreq posts Dh1.1b first half 2017 net profit | GulfNews.com

Mashreq posts Dh1.1b first half 2017 net profit | GulfNews.com:

"Mashreq posted a net profit of Dh1.1 billion for the first half 2017, up 3 per cent compared to the first half of 2016.

A significant decline of impairment allowance by 22.3 per cent year on year boosted the first half profits.
Net profit for the second quarter increased by 2.1 per cent to Dh557 million from Dh546 million in the first quarter of 2017.
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ECB considers special assessment of Deutsche Bank shareholders: paper

ECB considers special assessment of Deutsche Bank shareholders: paper:

"Europe's top banking regulator, the European Central Bank (ECB), is considering carrying out a special assessment of Deutsche Bank's (DBKGn.DE) two largest shareholders, a German paper reported on Sunday, citing regulatory sources. The ECB may launch so-called ownership control procedures to scrutinize both the Qatari royal family and China's HNA (0521.HK), which each own just under 10 percent of the shares of Germany's flagship lender, Sueddeutsche Zeitung reported in a prereleased version of its Monday edition. The ECB and Deutsche Bank declined to comment."



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Doha mall's $1 billion-plus loan refinancing frozen amid Qatar boycott: sources

Doha mall's $1 billion-plus loan refinancing frozen amid Qatar boycott: sources:

"The refinancing of a $1 billion loan by Doha Festival City, a retail and hospitality complex in Qatar, has been indefinitely postponed as a diplomatic crisis deters regional banks from doing new Qatari business, bankers said.

The refinancing, coordinated by Doha-based investment bank QInvest, was marketed earlier this year to both Qatari and regional banks, including institutions in the United Arab Emirates. It was to have been larger in size than the original loan - perhaps around $1.2 billion, bankers said.

But Saudi Arabia, the UAE, Egypt and Bahrain cut diplomatic and transport ties with Qatar on June 5, accusing it of supporting terrorism, and the proposed deal has been put on hold, the sources said."



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Saxo Bank Says Markets Believe Saudi-Qatar Solution Soon - Bloomberg

Saxo Bank Says Markets Believe Saudi-Qatar Solution Soon - Bloomberg:

"Mario Camara, chief executive officer at Saxo Bank Dubai, discusses the standoff between Qatar and the Saudi-led bloc of nations and its impact on markets. He speaks on "Bloomberg Markets: Middle East." (Source: Bloomberg)"



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Qatar Plans Food Cluster to Boost Supplies at Home - Bloomberg

Qatar Plans Food Cluster to Boost Supplies at Home - Bloomberg:

"Qatar will spend 1.6 billion riyals ($431 million) to build a food-processing and storage facility near Hamad Port in about two years that will more than meet local demand for sugar, rice and cooking oil. Doha-based Al Jaber Engineering won the contract and has 26 months to design and build the project for the nation’s food security, Jassim bin Saif al-Sulaiti, minister of transport and communications, told reporters Sunday in Doha. Qatar invited companies to bid on the project last year, before the Saudi-led trade boycott against Qatar that began in June. Food security is important in the Middle East because lack of rain and excessive heat make it difficult to grow grains and develop livestock farms. Qatar is in a tougher position because it depended on food coming across the border with Saudi Arabia, which cut diplomatic and trade links with its neighbor last month. Some 38 percent of Qatar’s food used to come through Saudi Arabia, according to Mazen Al-Sudairi, head of research at Al Rajhi Capital."



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MIDEAST STOCKS-Region mixed; Dubai tests chart barrier, poor earnings hit Oman

MIDEAST STOCKS-Region mixed; Dubai tests chart barrier, poor earnings hit Oman:

"Stock markets in the Gulf were mixed on Sunday with the global uptrend in equities pushing Dubai's index up to test technical resistance but weak corporate earnings hurting Oman.

The Dubai index gained 1.0 percent in modest trading volume to close on its April peak of 3,573 points. Eight of the 10 most heavily traded stocks rose, with the most active, Union Properties, edging up 0.3 percent.

Abu Dhabi added 0.2 percent as Ajman Bank gained 2.6 percent despite reporting a moderate fall in second-quarter net profit. Its operating income actually rose slightly."



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UAE’s financial system needs a more active liquidity management: IMF | GulfNews.com

UAE’s financial system needs a more active liquidity management: IMF | GulfNews.com:

"The banking system is facing new challenges following the sharp decline in oil prices and it needs to adjust its liquidity management measures to adjust to the new reality according to a recent paper prepared by a staff team from the International Monetary Fund (IMF).

The IMF paper observes that with lower oil revenues, current account surpluses have declined, and fiscal surpluses have turned into deficits. In this setting, the public sector’s propensity to accumulate deposits in the banking system has weakened.
In addition, the normalisation of US interest rates and banking regulatory changes in the UAE are creating new challenges for banks’ management of liquidity. Yet ensuring healthy liquidity conditions and promoting financial market development is important for supporting robust credit and economic growth and diversification goals."



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UAE's Dana Gas describes UK court decisions on sukuk as favourable

UAE's Dana Gas describes UK court decisions on sukuk as favourable:

"Abu Dhabi-listed Dana Gas described decisions by the High Court of Justice in London as favourable, as the company seeks to restructure $700 million of outstanding sukuk on the grounds that the instruments have become unlawful in the UAE. On July 5 a High Court judge upheld an injunction blocking holders of the bonds, which are due to mature in October, from enforcing claims related to the securities against Dana. But he also imposed restrictions on asset sales by Dana and its ability to raise more debt or pay dividends. He ordered Dana to cancel an injunction in a court in the emirate of Sharjah, where it has been trying to have the sukuk declared unlawful, and to seek a stay of proceedings there."



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Turquoise CEO: EU Firms After Potential Iran JVs - Bloomberg

Turquoise CEO: EU Firms After Potential Iran JVs - Bloomberg:

"Ramin Rabii, chief executive officer of Tehran-based investment company Turquoise Partners, discusses the current foreign investment climate in Iran. He speaks to Mark Barton on "Bloomberg Surveillance." (Source: Bloomberg)"



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Aramco's Odd Response to a Future Oil Shortage - Bloomberg Gadfly

Aramco's Odd Response to a Future Oil Shortage - Bloomberg Gadfly:

"Let's say you're the holder of the world's largest reserves of conventional, low-cost crude oil and you believe the supply outlook is "increasingly worrying" due to a lack of investment. Enhancing production capacity so as to cash in when prices soar would seem like a good idea. Apparently not if you're Saudi Aramco.Saudi Arabian Oil Co. CEO Amin Nasser spoke at the World Petroleum Congress in Istanbul last week, describing his company's plans to invest $300 billion over the next decade. But that cash won't go toward boosting the rate at which Saudi Arabia can get oil out of the ground, even though as much as 20 million barrels a day of new output could be needed over the next five years to offset rising demand and the natural decline of fields that are currently in production. Instead, that money will be used to maintain current capacity, and double gas output.Am I alone in seeing this as an odd response to the supply crunch Nasser sees looming?"



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MIDEAST STOCKS-Most Gulf bourses edge up, Oman hit by poor H1 earnings

MIDEAST STOCKS-Most Gulf bourses edge up, Oman hit by poor H1 earnings:

"Most Gulf stock markets edged up early on Sunday in line with a strong trend for global equities, though Qatar pulled back after last week's strong rebound and weak corporate earnings hurt Oman.

The Saudi index climbed 0.5 percent in the first half-hour in a broad rally, with advancing stocks outnumbering decliners by 124 to 20. Banque Saudi Fransi added 2.6 percent.

Dubai's index gained 0.3 percent as Union Properties, the most heavily traded stock, rose 0.4 percent."



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