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Tuesday, 10 October 2017

IMF forecasts economic recovery for Middle East economies in 2018 - The National

IMF forecasts economic recovery for Middle East economies in 2018 - The National:

"Economic growth in the Middle East, North Africa, Afghanistan and Pakistan (Menap) is likely to rebound in 2018 after losing momentum this year, weighed down by geopolitical risks and a slowdown in Iran's economy, according to the International Monetary Fund (IMF). Overall Menap growth is projected to rise to 3.5 per cent in 2017 from 2.6 per cent this year, the Washington-based IMF said in its world economic outlook report on Tuesday. The region’s 2018 prospects are just below that of the world economy as a whole, which is forecast to grow by 3.7 per cent next year, and far ahead of the average for advanced ­eco­nomies, which are pre­dicted to grow by just 2 per cent."



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Abu Dhabi says $10 billion bond three times oversubscribed - The National

Abu Dhabi says $10 billion bond three times oversubscribed - The National:

"Abu Dhabi's US$10bn bond sale was three times oversubscribed with more than 75 per cent of the orders coming from investors in developed markets, where bond yields are relatively low. "The strong reception of the offering in the international debt capital markets is a clear testament to Abu Dhabi's solid and strong credit story," said Riyad Abdulrahman Al Mubarak, the chairman of the Department of Finance. "As we look ahead, we will continue to prudently manage our indebtedness levels, which are currently one of the lowest globally.” The issue, scheduled to settle on October 11, is Abu Dhabi's second foray into the international debt market in less than two years. The emirate, which accounts for about 6 per cent of the world's proven oil reserves, last tapped the market with a $5bn in April 2016. Abu Dhabi, like its GCC peers is seeking to diversify its sources of funding amid lower oil prices."



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Oman's Electricity Holding to raise two loans as part of $2 bln capex programme - sources

Oman's Electricity Holding to raise two loans as part of $2 bln capex programme - sources:

"Oman’s state-owned Electricity Holding Co. (EHC) is set to complete the syndication of a $165 million loan for one of its distribution companies, and has started marketing a loan of around $200 million for a second subsidiary, sources familiar with the matter said on Tuesday. The loans, part of a $2 billion capital expenditure programme for the country’s distribution and transmission network, are the latest international fundraising exercises by Oman, which has borrowed more than $10 billion through international bonds and loans this year as it seeks to refill budget coffers hit by low oil prices. EHC, which holds the Omani government’s stake in nine electricity firms, is working with Bank Muscat and JP Morgan to raise the financing, said the sources."



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Qatar International Islamic Bank readies $2 bln sukuk programme

Qatar International Islamic Bank readies $2 bln sukuk programme:

"Qatar International Islamic Bank has finished creating a $2 billion sukuk issuance programme and is preparing to issue its first bond from the scheme when market conditions improve, a source familiar with the matter told Reuters. The source did not elaborate on the timing of the first issue. Qatari borrowers’ access to international bond markets has become trickier since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar in June. Qatari banks have steered clear of public debt markets since the crisis erupted, largely because of the risk that it might affect investor demand and pricing. Instead, banks have turned to privately placed bond and sukuk deals, as well as bilateral loans, to secure funding."



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How Deep Will Saudi Cut Its Oil Output? To the Lowest Since 2015 - Bloomberg

How Deep Will Saudi Cut Its Oil Output? To the Lowest Since 2015 - Bloomberg:

"Saudi Arabia has promised to do “whatever it takes” to end the global oil gut. If it cuts supplies in November by as much as it pledges, the kingdom will reduce production and exports alike by more or less a million barrels a day compared with last year.

 And that’s about all the world’s biggest oil exporter -- and linchpin of a global plan to bolster crude markets -- can do to prop up prices: pump and sell less of the stuff.

 State-run Saudi Aramco plans to pump about 9.77 million barrels a day next month, in what would be its smallest output since January 2015. That’s about one million barrels a day less than the 10.72 million it pumped in November 2016. The Saudis disclosed their production plans on Monday when the energy ministry announced that Aramco will supply buyers with less oil than they asked for in November. Much less."



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MIDEAST STOCKS-Qatar keeps recovering, banking and insurance hit Saudi

MIDEAST STOCKS-Qatar keeps recovering, banking and insurance hit Saudi:

"Qatar’s stock market continued to recover on Tuesday from last week’s big losses, while Saudi Arabia’s main index was dragged down by the banking and insurance sectors.

The Qatari index rose for a third straight day in a technical rebound after hitting five-year lows last week. It was up 0.5 percent on Tuesday after gaining 0.9 percent on Monday.

Foreign investors from outside the Gulf were net buyers by a considerable margin and accounted for nearly 40 percent of buying, bourse data showed. Gulf investors were still almost absent, still deterred by the diplomatic crisis between Qatar and its neighbours that erupted in June."



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Bahrain state-owned oil company hires bankers for debut bond issue

Bahrain state-owned oil company hires bankers for debut bond issue:

"The Oil & Gas Holding Company B.S.C., which is fully owned by the Kingdom of Bahrain, has hired banks to arrange investor meetings ahead of the company’s debut bond issue, as a rush of new debt sales from the Middle East continues.

The company, which is rated BB+ by Fitch, will hold meetings in the United Arab Emirates, Europe and the United States, beginning this Wednesday. A bond with a tenor of up to 10 years could follow, subject to market conditions.

The news comes as Middle Eastern countries have issued a record amount of debt on international capital markets, with Saudi Arabia last month selling the largest emerging market bond this year, at $12.5bn, and Abu Dhabi following up with a $10bn bond last week."



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Bahrain state-owned oil company hires bankers for debut bond issue

Bahrain state-owned oil company hires bankers for debut bond issue:

"The Oil & Gas Holding Company B.S.C., which is fully owned by the Kingdom of Bahrain, has hired banks to arrange investor meetings ahead of the company’s debut bond issue, as a rush of new debt sales from the Middle East continues.

The company, which is rated BB+ by Fitch, will hold meetings in the United Arab Emirates, Europe and the United States, beginning this Wednesday. A bond with a tenor of up to 10 years could follow, subject to market conditions.

The news comes as Middle Eastern countries have issued a record amount of debt on international capital markets, with Saudi Arabia last month selling the largest emerging market bond this year, at $12.5bn, and Abu Dhabi following up with a $10bn bond last week."



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IMF tells Saudi Arabia: ‘You’re well on track, no need to go so fast’ | Arab News

IMF tells Saudi Arabia: ‘You’re well on track, no need to go so fast’ | Arab News:

"It is not often you hear the International Monetary Fund (IMF) urging “spend, spend,” while the client country replies “well, actually we’d rather hold on to the money for a while, if it’s all the same to you.” But something like that seems to have happened during the IMF’s recent country visit to Saudi Arabia. The IMF has a well-deserved reputation as an austerity merchant and usually seeks to impose a rigid regime of fiscal control. “Cut spending, increase taxes,” is the ritual formula. Saudi Arabia is not in the same league as countries that have to go begging to the IMF. It has no need to borrow money from the fund, because it is sitting on some $470 billion of reserves from the years when oil was $100-plus per barrel. There is no risk of Saudi Arabia going bust any time soon."



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Oil rises to $56 on Saudi export cut

Oil rises to $56 on Saudi export cut:

"Oil rose to around $56 a barrel on Tuesday, supported by Saudi Arabian export cuts in November and comments from OPEC and trading companies that the market is rebalancing after years of oversupply. Saudi Arabia has cut November allocations by 560,000 barrels per day (bpd), in line with its commitment to an OPEC-led supply reduction pact. In the United States, some production remains offline following Hurricane Nate, lending additional support. “Prices have been boosted by news that Saudi Arabia is planning to reduce its oil shipments to customers in November,” said Carsten Fritsch, analyst at Commerzbank in Frankfurt."



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Iraq and Iran Boost Oil Exports in Sales Battle With Saudis - Bloomberg

Iraq and Iran Boost Oil Exports in Sales Battle With Saudis - Bloomberg:

"Iraq and Iran boosted crude exports in September, taking advantage of a slower pace of shipments from rival Saudi Arabia to win buyers in key markets like China and the U.S.

Iraq shipped 3.98 million barrels of crude a day, the highest since December, while Iran’s exports rose to 2.28 million barrels a day, the most since February, according to ship-tracking data compiled by Bloomberg. Saudi Arabia’s exports were 6.68 million barrels a day, the second-lowest for this year, the data show."



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Qatar's CBQ Is Said to Plan Capital Increase in Turkish Unit - Bloomberg

Qatar's CBQ Is Said to Plan Capital Increase in Turkish Unit - Bloomberg:

"Commercial Bank of Qatar QSC is planning a capital increase of as much as $1 billion in its Turkish unit to expand in the country, according to people with the knowledge of the matter. The Doha-based lender is seeking to raise between $500 million and $1 billion from existing shareholders of Alternatifbank AS and international financial institutions, the people said, asking not to be identified because the talks are private. CBQ bought a 71 percent stake in Alternatifbank in 2013 and increased it to full ownership in 2016. CBQ is growing its business in Turkey to benefit from rising profit levels and a surge in lending. The country is currently caught up in a diplomatic row with the U.S., with the two nations suspending visa services for each other’s citizens. Qatari lenders are also under pressure after a decision by Saudi Arabia, the United Arab Emirates and Bahrain to cut economic and diplomatic ties with Qatar in June."



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Qatar's CBQ Is Said to Plan Capital Increase in Turkish Unit - Bloomberg

Qatar's CBQ Is Said to Plan Capital Increase in Turkish Unit - Bloomberg:

"Commercial Bank of Qatar QSC is planning a capital increase of as much as $1 billion in its Turkish unit to expand in the country, according to people with the knowledge of the matter. The Doha-based lender is seeking to raise between $500 million and $1 billion from existing shareholders of Alternatifbank AS and international financial institutions, the people said, asking not to be identified because the talks are private. CBQ bought a 71 percent stake in Alternatifbank in 2013 and increased it to full ownership in 2016. CBQ is growing its business in Turkey to benefit from rising profit levels and a surge in lending. The country is currently caught up in a diplomatic row with the U.S., with the two nations suspending visa services for each other’s citizens. Qatari lenders are also under pressure after a decision by Saudi Arabia, the United Arab Emirates and Bahrain to cut economic and diplomatic ties with Qatar in June."



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MIDEAST STOCKS-Iraq hits telecoms, Saudi's Bank Aljazira tumbles early on

MIDEAST STOCKS-Iraq hits telecoms, Saudi's Bank Aljazira tumbles early on:

"Gulf stock markets were generally weak in early trade on Tuesday with telecommunications companies weighed down by the Iraqi government saying it would seek control of Kurdistan-based mobile phone operators. On Monday, Iraq’s central government said it would seek to have mobile phone firms move their headquarters to Baghdad after last month’s referendum on Kurdish independence, which it refuses to recognise. In response Kuwaiti telecommunications firm Zain, parent of Zain Iraq, sank 4.3 percent in heavy trade. Zain Iraq is based in Baghdad, but the dispute raises the prospect of disruption to all operators’ Kurdistan business. Iraq was the single biggest contributor to Zain’s revenues last year."



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