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Tuesday, 22 August 2017

UPDATE 1-Qatar deposits $6.9 bln in banks in July to offset crisis outflows

UPDATE 1-Qatar deposits $6.9 bln in banks in July to offset crisis outflows:

"Qatar's government deposited nearly $7 billion in the local banking system during July to offset a pull-out of funds by banks from other Arab states due to the region's diplomatic crisis, Qatari central bank data showed on Tuesday. Foreign customers' deposits at banks in Qatar - the vast majority in the form of foreign-currency deposits - shrank to 157.2 billion riyals ($43.2 billion) last month from 170.6 billion riyals in June. The rate of decline was roughly the same as in June, when the crisis began. But total deposits at banks in Qatar rose during July, to 772.5 billion riyals from 770.7 billion riyals, because of a $6.9 billion jump in the Qatari public sector's foreign currency deposits, the data showed. That followed a $10.9 billion injection by the government in June."



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U.A.E. Excise Tax Starts in October in Drive to Boost Revenue - Bloomberg

U.A.E. Excise Tax Starts in October in Drive to Boost Revenue - Bloomberg:

"The United Arab Emirates will start imposing a tax on selected goods starting Oct. 1 as Gulf Arab nations seek to deepen government revenue to counter the drop in oil prices. A levy on designated goods -- tobacco, energy drinks and soft drinks -- will include those sold at airports and free zones, Younis Al Khoori, undersecretary at Ministry of Finance, told the state-run WAM news agency. Products purchased at airports by travelers taking the goods abroad will be exempt, he said. The move is one of the measures taken by the six-member Gulf Cooperation Council work to bolster non-oil revenue and is a milestone for a region that has attracted companies and workers largely through the promise of tax-free living. The bloc is also moving to implement value-added taxation though governments say they have no plans to introduce income tax."



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MIDEAST STOCKS-Al Rajhi Bank, Ma'aden boost Saudi; Dubai also outperforms

MIDEAST STOCKS-Al Rajhi Bank, Ma'aden boost Saudi; Dubai also outperforms:

"Saudi Arabia's stock market rose on Tuesday on the back of gains by Al Rajhi Bank and mining firm Ma'aden, while Dubai also outperformed most Gulf bourses although trading was thin. The Saudi stock index climbed 0.4 percent with Al Rajhi up 2.2 percent to 65.80 riyals, bringing its gains over the last five days to 4.9 percent. Of 14 analysts covering the stock, seven rate it a "buy" or "strong buy" and six rate it a "hold", according to Thomson Reuters data; their median target price is 70.90 riyals. Ma'aden rose 1.8 percent after international base metal prices surged to multi-year highs overnight."



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UPDATE 1-Saudi Arabia nudges yields down in 13 bln riyal sukuk sale

UPDATE 1-Saudi Arabia nudges yields down in 13 bln riyal sukuk sale:

"Saudi Arabia's finance ministry pushed yields down slightly in its second monthly sale of domestic Islamic bonds on Tuesday, a sign of healthy appetite for the debt as Riyadh covers a budget deficit caused by low oil prices. Riyadh auctioned 13 billion riyals ($3.5 billion) of local currency sukuk, with the offer 295 percent subscribed. It sold 2.1 billion riyals of five-year, 7.7 billion riyals of seven-year and 3.2 billion riyals of 10-year sukuk, the ministry said. The size of the issue was down slightly from the government's first monthly offer in July, when it sold 17 billion riyals and attracted 51 billion of bids."



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MIDEAST STOCKS-REITs, Al Rajhi Bank boost Saudi, rest of region quiet

MIDEAST STOCKS-REITs, Al Rajhi Bank boost Saudi, rest of region quiet:

"Saudi Arabia's stock market rose in early trade on Tuesday on the back of a further gain by Al Rajhi Bank and heavy trade in real estate investment trusts, while the rest of the region barely moved.

The Saudi stock index climbed 0.5 percent in the first 90 minutes, with Al Rajhi up 0.9 percent, bringing its gains over the last five days to 4 percent.

Maather REIT Fund jumped its 10 percent daily limit from its initial public offer price to 11.0 riyals upon listing in Riyadh to become Saudi Arabia's fifth listed REIT."



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Here's a Sign That Dubai Is No Longer the U.A.E.'s Problem Child - Bloomberg

Here's a Sign That Dubai Is No Longer the U.A.E.'s Problem Child - Bloomberg:

"To see how far Dubai has come, take a look at its credit default swaps. The extra cost investors pay to insure the sheikhdom’s bonds versus those of its oil-rich neighbor, Abu Dhabi, has fallen below 60 basis points this month for the first time on record. That’s down from 555 basis points back in 2009, when Dubai’s government-related companies were in talks to restructure billions of dollars in debt and Abu Dhabi came to the emirate’s rescue with a bailout."



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Iran's Cushion Against a Trump Assault - Bloomberg

Iran's Cushion Against a Trump Assault - Bloomberg:

"It hasn’t been the investment bonanza Iran hoped for, but the billions of dollars unlocked by its 2015 nuclear deal with world powers might help cushion the impact of any future U.S. assault on the accord. Bloomberg's Alaa Shahine reports on "Bloomberg Markets: Middle East." (Source: Bloomberg)"



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Saudis Could Get $21 Billion Non-Oil Boost in 2018, BofA Says - Bloomberg

Saudis Could Get $21 Billion Non-Oil Boost in 2018, BofA Says - Bloomberg:

"Saudi Arabia’s non-oil revenue could surge by about 80 billion riyals ($21.3 billion) next year, according to Bank of America Merrill Lynch, boosting the kingdom’s efforts to reduce the economy’s reliance on crude. The increase would be driven by the implementation of value-added taxation, a tax on luxury products and higher fees imposed on expatriates’ dependents, London-based economist Jean-Michel Saliba wrote in the report. The kingdom has already introduced a tax on soft drinks and tobacco this year. Saudi Arabia’s budget deficit narrowed in the second quarter this year, helped by a 28 percent increase in revenue from crude exports as well as a drop in spending. Non-oil revenue, however, dropped 17 percent, highlighting the kingdom’s struggle to diversify it economy as part of a plan spearheaded by Crown Prince Mohammed bin Salman."



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Admirers Grow for Biggest Saudi Bank on Index-Addition Bet - Bloomberg

Admirers Grow for Biggest Saudi Bank on Index-Addition Bet - Bloomberg:

"Saudi Arabia’s largest lender has become a favorite among equity analysts and investors as its business improves and the potentially lucrative inclusion in an emerging-markets benchmark index approaches next month.

Al Rajhi Bank was upgraded to buy by Goldman Sachs Group Inc. on Aug. 8. An analyst at Bank of America Merrill Lynch followed suit eight days later, citing improving net interest margin estimates, lower funding costs and reduced risk expenses at the Riyadh-based lender. Deutsche Bank AG and Dubai-based Arqaam Capital have Al Rajhi as one of their “top picks” among Saudi stocks."



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