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Wednesday, 18 October 2017

Middle Eastern debt boom continues

Middle Eastern debt boom continues:

"The Oil and Gas Holding Company B.S.C., which is fully owned by the kingdom of Bahrain, has sold $1bn of bonds as a rush of unprecedented capital markets borrowing from the Middle Eastern region continues.

The bond came at a yield of 7.5 per cent, and included a special clause which allowed investors to recoup their money at par if the government “ceases to own 100% of the issuer”.

The deal came as Abu Dhabi Crude Oil Pipeline LLC mandated banks to organise investor meetings for a potential bond. The issuer is indirectly wholly owned by ADNOC, Abu Dhabi’s state-owned oil company and one of the largest oil producers in the world."



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UAE can become listings hub for Middle East and Africa - Franklin Templeton - The National

UAE can become listings hub for Middle East and Africa - Franklin Templeton - The National:

"The UAE can become the listings and equities trading hub for the Middle East by "aggressively" reaching out to entice companies in other territories, particularly in Africa, to list on the country's bourses, according to Mark Mobius, the executive chairman of investment firm Templeton Emerging Markets Group. Mr Mobius, who helps oversee the Franklin Templeton’s US$29 billion global emerging markets portfolio, said the UAE has the tax and “numerous other advantage” that should help it lure companies from far and wide. “There are a lot of companies -- you name the country – looking for money, looking for capital," said Mr Mobius in an interview with The National. "[The UAE] is the capital centre and there is a lot of money here.”"



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Riyad Bank third-quarter profit up 47.7%, beats forecasts | ZAWYA MENA Edition

Riyad Bank third-quarter profit up 47.7%, beats forecasts | ZAWYA MENA Edition:

"Riyad Bank , Saudi Arabia's fourth-largest bank by assets, on Wednesday reported a 47.7 percent rise in third-quarter net profit, beating analysts' forecasts as income from investments and fees and commission rose. The bank, which had reported flat or lower profits in nine of the last ten quarters, made 1.08 billion riyals ($288 million) in the three months to Sept. 30, up from 729 million riyals in the same period of 2016, it said in a bourse filing. Three analysts polled by Reuters had on average forecast the bank's quarterly profit would be 852.5 million riyals. "



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Oman Abandons Bidding Process for Third Mobile Phone Operator - Bloomberg

Oman Abandons Bidding Process for Third Mobile Phone Operator - Bloomberg:

"Oman canceled the bidding process to select its third mobile phone operator in favor of a group backed by its wealth funds, a month after delaying a decision on the license. The Gulf state’s third mobile operator will be run by a local company owned by the funds and a “strategic global partner,” state-run Oman News Agency reported on Wednesday. The decision was taken to reinforce the role of wealth funds and have them contribute to economic growth, it said. Oman invited bids for the license earlier this year, eliciting interest from Saudi Telecom Co., Emirates Telecommunications Group, Sudatel Telecom Group and Mobile Telecommunications Co. The decision on a winning bidder was initially due Sept. 4."



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Abu Dhabi state investor Mubadala sets up venture capital arm

Abu Dhabi state investor Mubadala sets up venture capital arm:

"Abu Dhabi’s state fund Mubadala Investment Company said it has launched a venture capital arm that will oversee an early growth fund set up with Japan’s SoftBank, and a fund of funds focusing on emerging fund managers.

A ventures investment team will be based in San Francisco, the first Mubadala office in the United States, it said in a statement on Wednesday.

The team will also oversee and manage Mubadala’s $15 billion commitment to the SoftBank Vision Fund, working in close partnership with SoftBank executives in California."



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MIDEAST STOCKS-Petchems pull down Saudi, Dubai developers active on earnings

MIDEAST STOCKS-Petchems pull down Saudi, Dubai developers active on earnings:

"Petrochemical shares dragged down Saudi Arabia’s stock market on Wednesday while Dubai real estate developers were actively traded after two of them reported third-quarter earnings.

The Saudi index fell 0.7 percent as 12 of 14 listed petrochemical producers dropped, with Yanbu Petrochemical down 1.9 percent.

Most have yet to report third-quarter earnings and will do so in the next few weeks. The biggest producer, Saudi Basic Industries, edged up 0.1 percent, however."



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Qatar’s wealth fund brings $20bn home to ease impact of embargo

Qatar’s wealth fund brings $20bn home to ease impact of embargo:

"Qatar’s sovereign wealth fund has brought more than $20bn back onshore to cushion the impact of a regional embargo imposed on the Gulf state. Ali Shareef al-Emadi, Qatar’s finance minister, told the Financial Times that Qatar Investment Authority deposits were being used to create a “buffer” and provide liquidity in the banking system after the gas-rich state suffered capital outflows of more than $30bn. That followed the decision by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt to cut diplomatic and transport links with the nation in June. The move has triggered the Gulf’s worst crisis in years."



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Will Dubai deals turn into a house of cards?

Will Dubai deals turn into a house of cards?:

"Those who have made a killing on bitcoin this year may be looking for somewhere to deploy their cash winnings. At the time of writing in mid-September, the cryptocurrency was up more than 300 per cent against the dollar since the start of 2017. I would be loath to speculate where it will be by the time you read these words, given its habit of moving 5 per cent or more in a day. For those looking for somewhere less volatile to park their cash, a British underwear tycoon is offering a solution. Michelle Mone, known for her Ultimo bra empire, has apartments in Dubai for sale in the cryptocurrency. “Don’t miss out on the chance to realise your bitcoin gains with a good quality, appreciating asset,” urges the website for the project, Aston Plaza & Residences. The scheme uses the payment processor BitPay to spare bitcoin buyers the inconvenience of converting their digital currency into a regular government-backed currency such as dollars. This helps buyers because the bitcoin exchange market is illiquid and volatile, so such conversions must be carried out gradually over time and might still result in a very different dollar sum to the one the owner of the cash expected."



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Profits — and pitfalls — of a China deal for Saudi Aramco | Arab News

Profits — and pitfalls — of a China deal for Saudi Aramco | Arab News:

"The official position of Saudi Aramco and its advisers has not altered. The initial public offering (IPO) scheduled for 2018 is on track and plans are advancing toward that end, with a number of foreign stock exchanges lined up in addition to the Tadawul as a potential venue.
But behind the scenes, a lot has changed since the Financial Times reported at the end of last week that Aramco was considering a private deal with Chinese investors to take a chunk of its equity before an international IPO.
Since then, further reports have emerged that name two Chinese oil companies, PetroChina and Sinopec, as being part of a consortium that has offered to buy 5 percent of Aramco — exactly the amount slated for the IPO. "



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Qatar emir says open to dialogue to resolve Gulf crisis

Qatar emir says open to dialogue to resolve Gulf crisis:

"Qatar is “open to dialogue” in resolving a dispute that has seen the Gulf state isolated from its Arab neighbors, its emir said during a visit to Indonesia on Wednesday.

Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and trade ties with Qatar on June 5, accusing it of financing terrorism and maintaining too close of ties to their arch-rival Iran. Doha denies the charges.

Qatari Emir Sheikh Tamim bin Hamad al-Thani said he discussed the issue with President Joko Widodo of Indonesia, which has the world’s largest population of Muslims and has close ties to the Arab world. "



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Saudi Oil Minister Says Full Aramco IPO Is on Track for 2018 - Bloomberg

Saudi Oil Minister Says Full Aramco IPO Is on Track for 2018 - Bloomberg:

"Saudi Arabia is still aiming to complete both international and domestic portions of the initial public offering of its state oil company in 2018, Oil Minister Khalid Al-Falih said Tuesday.

Asked whether both parts of the IPO will happen next year, Al-Falih said: "Yes of course; it is on track." He declined to answer questions on whether Chinese investors were interested in buying ahead of the IPO as cornerstone investors.

People familiar with the situation said last week that the kingdom is wondering whether to delay the international portion of the offering until at least 2019. A two-stage Saudi Aramco IPO is one of several options being considered, they said, asking not to be identified because discussions are private. Another plan would include listing in Riyadh next year and privately selling a stake to one or several cornerstone investors, one of the people said. "



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Qatar's CBQ swings to profit in third quarter | ZAWYA MENA Edition

Qatar's CBQ swings to profit in third quarter | ZAWYA MENA Edition:

"DUBAI - Commercial Bank of Qatar (CBQ), the Gulf Arab state's third-largest lender by assets, swung to a third-quarter net profit on Wednesday but missed analysts' average forecasts. CBQ reported net profit of 79.4 million riyals ($21.8 million) in the three months to Sept. 30. That compares with a net loss of 1.0 million riyals in the same period a year earlier. The average of three analysts polled by Reuters had forecast CBQ would make a quarterly profit of 88.5 million riyals. "



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Dubai's DAMAC Properties third-quarter profit down 20% | ZAWYA MENA Edition

Dubai's DAMAC Properties third-quarter profit down 20% | ZAWYA MENA Edition:

"Dubai's DAMAC Properties , the owner and operator of the only Trump-branded golf club in the Middle East, reported a third consecutive profit decline on Wednesday as costs of sales rose. The developer's profit fell 20 percent in the July-September period to 719.34 million dirhams ($195.86 million) compared with the same quarter a year prior when it reported a 902 million dirham profit. Revenue rose by 31 percent to 2.29 billion dirhams, and the cost of sales increased to 1.3 billion dirhams, from 788.6 billion in the year-earlier period. "



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MIDEAST STOCKS-Petchems drag down Saudi, Dubai developers in focus | ZAWYA MENA Edition

MIDEAST STOCKS-Petchems drag down Saudi, Dubai developers in focus | ZAWYA MENA Edition:

"Petrochemical shares dragged down Saudi Arabia's stock market in early trade on Wednesday while Dubai real estate developers traded actively after they reported third-quarter earnings.

The Saudi index fell 0.6 percent in the first half-hour as Saudi Basic Industries sank 1.8 percent and Yanbu Petrochemical dropped 1.4 percent.

Insurer Malath, which had surged its 10 percent daily limit on Tuesday after trading in its rights issue ended, jumped a further 10 percent. "



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