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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."

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Emaar lists assets it intends to take public |

Emaar lists assets it intends to take public |

"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.

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Mubadala Investment Company swings to profit in H1 2017 |

Mubadala Investment Company swings to profit in H1 2017 |

"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."

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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."

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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."

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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."

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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.”"

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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:


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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. "

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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."

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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."

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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."

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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.”"

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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.  "

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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."

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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."

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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."

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