Aramco-Sabic deal to spur consolidation in regional petchems - The National:
The proposed stake sale of Sabic, the region’s biggest chemicals manufacturer, to the world's top oil producing company Saudi Aramco is expected to set into motion more consolidation in the regional industry, analysts said.
"If Aramco acquires a substantial stake in Sabic, a new consolidation will emerge in the Saudi petrochemicals sector," said Ehsan Khoman, head of Mena research and strategy at Japan's MUFG Bank. "In-turn, there will be a requirement to revisit the existing Aramco and Sabic joint-ventures currently prevailing, as these will be impacted by reassessments or ongoing amendments.”
Aramco in July said it was in talks to acquire a stake in Sabic as the state-owned oil company looks to become a more integrated energy player. Aramco, the primary feedstock supplier for Sabic, has already partnered with it to develop a $20 billion venture to process oil into chemicals on the kingdom's Red Sea coast.
Tuesday 28 August 2018
Abraaj founder settles $300m bounced check case
Abraaj founder settles $300m bounced check case:
Arif Naqvi, the founder and chief executive of the embattled Abraaj Group, has avoided a three-year prison sentence in the UAE with a last-minute deal struck with Hamid Jafar, the Sharjah based businessman, over $300 million of checks written by Naqvi and a lieutenant that were dishonored on presentation.
Lawyers for Naqvi and Jafar issued statements yesterday that halted proceedings over the bounced checks — a criminal offense in the UAE — after talks in London agreed the transfer of certain assets from Naqvi to Jafar as part-payment of the debts, and an agreement to potentially pay more on the disposal of Abraaj assets.
Habib Al-Mulla, Naqvi’s lawyer and executive chairman of the law firm Baker & McKenzie Habib Al Mulla, said: “I am pleased to inform you that the parties have reached a full settlement on all disputes with Jafar. Under UAE criminal law, charges based on bounced checks get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced checks.
Arif Naqvi, the founder and chief executive of the embattled Abraaj Group, has avoided a three-year prison sentence in the UAE with a last-minute deal struck with Hamid Jafar, the Sharjah based businessman, over $300 million of checks written by Naqvi and a lieutenant that were dishonored on presentation.
Lawyers for Naqvi and Jafar issued statements yesterday that halted proceedings over the bounced checks — a criminal offense in the UAE — after talks in London agreed the transfer of certain assets from Naqvi to Jafar as part-payment of the debts, and an agreement to potentially pay more on the disposal of Abraaj assets.
Habib Al-Mulla, Naqvi’s lawyer and executive chairman of the law firm Baker & McKenzie Habib Al Mulla, said: “I am pleased to inform you that the parties have reached a full settlement on all disputes with Jafar. Under UAE criminal law, charges based on bounced checks get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced checks.
Saudi Arabia’s inflation quickens on rising food costs
Saudi Arabia’s inflation quickens on rising food costs:
The rising cost of food and drink in Saudi Arabia helped push up the Kingdom’s inflation rate last month, though it still remained below its recent peak of 3 percent in January.
Consumer prices rose by 2.2 percent year-on-year in July compared to 2.1 percent in June, an increase driven by increasing food prices, particularly vegetables.
“The breakdown of the data showed that the slight rise in headline inflation last month was driven by a jump in food inflation,” read a note from Jason Tuvey, senior emerging markets economist at Capital Economics.
The rising cost of food and drink in Saudi Arabia helped push up the Kingdom’s inflation rate last month, though it still remained below its recent peak of 3 percent in January.
Consumer prices rose by 2.2 percent year-on-year in July compared to 2.1 percent in June, an increase driven by increasing food prices, particularly vegetables.
“The breakdown of the data showed that the slight rise in headline inflation last month was driven by a jump in food inflation,” read a note from Jason Tuvey, senior emerging markets economist at Capital Economics.
Qatar’s trade surplus hits QR16.9bn in July - The Peninsula Qatar
Qatar’s trade surplus hits QR16.9bn in July - The Peninsula Qatar:
Qatar’s trade surplus, which is the difference between total exports and imports, reached a surplus of QR16.9bn, showing an increase of QR5bn or 42.7 percent compared to July 2017. The huge rise in surplus shows that Qatar’s economy remains on firm footing.
According to preliminary figures of the value of exports of domestic goods, re-exports, and imports released yesterday by the Ministry of Development Planning and Statistics the trade balance decreased by nearly QR1.1bn or 6.1 percent compared to June 2018.
In July 2018, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR26.6bn, registering an increase of 45.3 percent compared to July last year, while it fell by 1.1 percent compared to June this year.
Qatar’s trade surplus, which is the difference between total exports and imports, reached a surplus of QR16.9bn, showing an increase of QR5bn or 42.7 percent compared to July 2017. The huge rise in surplus shows that Qatar’s economy remains on firm footing.
According to preliminary figures of the value of exports of domestic goods, re-exports, and imports released yesterday by the Ministry of Development Planning and Statistics the trade balance decreased by nearly QR1.1bn or 6.1 percent compared to June 2018.
In July 2018, the total exports of goods (including exports of goods of domestic origin and re-exports) amounted to around QR26.6bn, registering an increase of 45.3 percent compared to July last year, while it fell by 1.1 percent compared to June this year.
Credit Suisse to Buy Back $6 Billion in Qatar, Saudi Debt - Bloomberg
Credit Suisse to Buy Back $6 Billion in Qatar, Saudi Debt - Bloomberg:
Credit Suisse Group AG plans to buy back about 5.9 billion francs ($6 billion) of debt issued after the financial crisis to the Qatar Investment Authority and Saudi Arabia’s Olayan family to cut funding costs.
The bank will redeem the contingent convertible bonds -- which automatically become equity when reserves fall below pre-set levels -- on Oct. 23, the first opportunity to do so, according to a statement from the bank on Tuesday. Qatar holds about $4.2 billion of the debt and Olayan the remainder, with the two top shareholders entitled to interest of as much as 9.5 percent on the securities.
The withdrawal of the debt is another sign of Credit Suisse’s emergence from a three-year restructuring that’s cut its reliance on investment banking in favor of a pivot to wealth management, tapping shareholders for billions of francs in funding along the way. Chief Executive Officer Tidjane Thiam is refocusing the bank as new regulations after the financial crisis -- including higher capital requirements -- forced it to abandon the investment bank-led strategy.
Credit Suisse Group AG plans to buy back about 5.9 billion francs ($6 billion) of debt issued after the financial crisis to the Qatar Investment Authority and Saudi Arabia’s Olayan family to cut funding costs.
The bank will redeem the contingent convertible bonds -- which automatically become equity when reserves fall below pre-set levels -- on Oct. 23, the first opportunity to do so, according to a statement from the bank on Tuesday. Qatar holds about $4.2 billion of the debt and Olayan the remainder, with the two top shareholders entitled to interest of as much as 9.5 percent on the securities.
The withdrawal of the debt is another sign of Credit Suisse’s emergence from a three-year restructuring that’s cut its reliance on investment banking in favor of a pivot to wealth management, tapping shareholders for billions of francs in funding along the way. Chief Executive Officer Tidjane Thiam is refocusing the bank as new regulations after the financial crisis -- including higher capital requirements -- forced it to abandon the investment bank-led strategy.
Oil dips on profit-taking, trade deal limits decline | Reuters
Oil dips on profit-taking, trade deal limits decline | Reuters:
Oil prices fell on Tuesday as some investors took profits on recent strong gains, but losses were limited the day after a U.S.-Mexico trade agreement eased worries about tensions between the two countries.
Brent crude LCOc1 futures fell 26 cents to settle at $75.95 a barrel. The global benchmark touched $76.97 early in the session, the highest since July 11.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 34 cents to settle at $68.53 a barrel.
Oil prices fell on Tuesday as some investors took profits on recent strong gains, but losses were limited the day after a U.S.-Mexico trade agreement eased worries about tensions between the two countries.
Brent crude LCOc1 futures fell 26 cents to settle at $75.95 a barrel. The global benchmark touched $76.97 early in the session, the highest since July 11.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 34 cents to settle at $68.53 a barrel.
UPDATE 1-Abraaj founder's bounced cheque case settled after court ruling | Reuters
UPDATE 1-Abraaj founder's bounced cheque case settled after court ruling | Reuters:
A dispute over a $218 million bounced cheque signed by the founder of stricken private equity firm Abraaj and another executive has been settled, ending criminal proceedings against the two men, lawyers from both sides said on Tuesday.
The statements by the two lawyers came after a United Arab Emirates (UAE) court sentenced Abraaj founder Arif Naqvi and the other executive to three years in prison.
“Under UAE Criminal Law, charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases,” Naqvi’s lawyer Habib al-Mulla told Reuters.
A dispute over a $218 million bounced cheque signed by the founder of stricken private equity firm Abraaj and another executive has been settled, ending criminal proceedings against the two men, lawyers from both sides said on Tuesday.
The statements by the two lawyers came after a United Arab Emirates (UAE) court sentenced Abraaj founder Arif Naqvi and the other executive to three years in prison.
“Under UAE Criminal Law, charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases,” Naqvi’s lawyer Habib al-Mulla told Reuters.
MIDEAST STOCKS-Saudi index rise for third straight day, banks lift Qatar | Reuters
MIDEAST STOCKS-Saudi index rise for third straight day, banks lift Qatar | Reuters:
Saudi Arabia’s stock market rose on Tuesday for a third consecutive day, fuelled by gains in energy and telecommunications shares, while Qatari stocks were lifted by financials.
Saudi Arabia’s main index added 0.5 percent, with Saudi Telecom rising 1.8 percent and oil refiner Petro Rabigh up 1.4 percent.
Saudi market, which has added about 11 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Arabia’s stock market rose on Tuesday for a third consecutive day, fuelled by gains in energy and telecommunications shares, while Qatari stocks were lifted by financials.
Saudi Arabia’s main index added 0.5 percent, with Saudi Telecom rising 1.8 percent and oil refiner Petro Rabigh up 1.4 percent.
Saudi market, which has added about 11 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Abraaj founder reaches out-of-court settlement over bounced cheque case - The National
Abraaj founder reaches out-of-court settlement over bounced cheque case - The National:
Arif Naqvi, the founder of embattled private equity firm Abraaj Goup, has reached an out-of-court settlement with a founding shareholder, Hamid Jafar, in regards to a case over a Dh798 million bounced cheque, lawyers said on Tuesday.
"The parties have reached a full settlement on all disputes with Mr Jafar," Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, which is acting for Mr Naqvi. "Under UAE Criminal Law charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques."
Mr Al Mulla told The National an arrest warrant for Mr Naqvi has been lifted.
Arif Naqvi, the founder of embattled private equity firm Abraaj Goup, has reached an out-of-court settlement with a founding shareholder, Hamid Jafar, in regards to a case over a Dh798 million bounced cheque, lawyers said on Tuesday.
"The parties have reached a full settlement on all disputes with Mr Jafar," Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, which is acting for Mr Naqvi. "Under UAE Criminal Law charges based on bounced cheques get extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques."
Mr Al Mulla told The National an arrest warrant for Mr Naqvi has been lifted.
Second Abraaj cheque case nearing settlement | GulfNews.com
Second Abraaj cheque case nearing settlement | GulfNews.com:
A second cheque bounce case against Arif Naqvi, founder of the beleaguered private equity firm is settled out of court today, according to Dr Habib Al Mulla, executive chairman at Baker McKenzie Habib Al Mulla, who represents Naqvi.
The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
“I am pleased to inform you that the parties have reached a full settlement on all disputes with Mr. Jafar. Under UAE Criminal Law charges based on bounced cheques gets extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques,” Dr Al Mulla said in a statement to Gulf News.
A second cheque bounce case against Arif Naqvi, founder of the beleaguered private equity firm is settled out of court today, according to Dr Habib Al Mulla, executive chairman at Baker McKenzie Habib Al Mulla, who represents Naqvi.
The case relates to a cheque worth $217 million (Dh798 million) issued by Naqvi to Sharjah-based Crescent Group founder Hamid Jafar.
“I am pleased to inform you that the parties have reached a full settlement on all disputes with Mr. Jafar. Under UAE Criminal Law charges based on bounced cheques gets extinguished once parties reach a settlement. Accordingly, the parties will apply to the court and the public prosecution to withdraw the cases brought on the bounced cheques,” Dr Al Mulla said in a statement to Gulf News.
Qatar's Barwa Bank, International Bank of Qatar agree to merge | Reuters
Qatar's Barwa Bank, International Bank of Qatar agree to merge | Reuters:
Qatari lenders Barwa Bank and the International Bank of Qatar (IQB) have reached a final merger agreement, creating a combined group with total assets of 80 billion riyals ($22 billion), the banks said on Tuesday.
The unlisted banks will work to complete the necessary steps for the merger, including obtaining regulatory approval, before the end of the year, according to the statement carried on Barwa’s website.
The deal creates a sharia-compliant financial institution, with a shareholder equity base of over 12 billion riyals ($3.30 billion), the statement said.
Qatari lenders Barwa Bank and the International Bank of Qatar (IQB) have reached a final merger agreement, creating a combined group with total assets of 80 billion riyals ($22 billion), the banks said on Tuesday.
The unlisted banks will work to complete the necessary steps for the merger, including obtaining regulatory approval, before the end of the year, according to the statement carried on Barwa’s website.
The deal creates a sharia-compliant financial institution, with a shareholder equity base of over 12 billion riyals ($3.30 billion), the statement said.
UAE court sentences Abraaj CEO in bounced cheque case, lawyer says settlement reached | Reuters
UAE court sentences Abraaj CEO in bounced cheque case, lawyer says settlement reached | Reuters:
A United Arab Emirates court sentenced the founder of private equity firm Abraaj, Arif Naqvi, and another executive to three years in prison for issuing a cheque without sufficient funds, according to court documents and two court clerks on Tuesday.
But Naqvi’s lawyer Habib Al Mulla said in an email that the parties had reached a settlement.
The criminal case in the emirate of Sharjah relates to a cheque for 798.9 million dirhams ($218 million), signed by Naqvi and Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
A United Arab Emirates court sentenced the founder of private equity firm Abraaj, Arif Naqvi, and another executive to three years in prison for issuing a cheque without sufficient funds, according to court documents and two court clerks on Tuesday.
But Naqvi’s lawyer Habib Al Mulla said in an email that the parties had reached a settlement.
The criminal case in the emirate of Sharjah relates to a cheque for 798.9 million dirhams ($218 million), signed by Naqvi and Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in Abraaj.
Saudi Prince Salman Should Be More Practical About Reform - Bloomberg
Saudi Prince Salman Should Be More Practical About Reform - Bloomberg:
Two years ago, Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, began what he hoped would be a thoroughgoing reform of the country’s economy. Changes were certainly needed: The economy was too dependent on oil revenues, which were distributed inefficiently through patronage networks. It was clear that the country needed a vibrant, competitive private sector and to develop non-oil industries, the better to prepare for a future when it could no longer depend on the wealth lying beneath its sands.
The prince also recognized the need for social reforms. The conservative clergy had too much say in public life, whereas women had too little. He promised to bring to heel the more obscurantist preachers, and to allow women the right to drive.
But MBS, as the prince is known, got off on the wrong foot by deciding to make a public sale of shares in Saudi Arabian Oil Co., the world’s largest oil company. That plan was overly ambitious: the company was extravagantly valued at $2 trillion, and the enormous initial public offering was to have been completed by this year. Now that deal has been indefinitely postponed, giving the crown prince a chance to recalibrate his strategy for reform by pursuing more practical measures.
Two years ago, Crown Prince Mohammed bin Salman, the de facto ruler of Saudi Arabia, began what he hoped would be a thoroughgoing reform of the country’s economy. Changes were certainly needed: The economy was too dependent on oil revenues, which were distributed inefficiently through patronage networks. It was clear that the country needed a vibrant, competitive private sector and to develop non-oil industries, the better to prepare for a future when it could no longer depend on the wealth lying beneath its sands.
The prince also recognized the need for social reforms. The conservative clergy had too much say in public life, whereas women had too little. He promised to bring to heel the more obscurantist preachers, and to allow women the right to drive.
But MBS, as the prince is known, got off on the wrong foot by deciding to make a public sale of shares in Saudi Arabian Oil Co., the world’s largest oil company. That plan was overly ambitious: the company was extravagantly valued at $2 trillion, and the enormous initial public offering was to have been completed by this year. Now that deal has been indefinitely postponed, giving the crown prince a chance to recalibrate his strategy for reform by pursuing more practical measures.
Aramco's IPO Delay Brings Silver Lining for Saudi Stocks - Bloomberg
Aramco's IPO Delay Brings Silver Lining for Saudi Stocks - Bloomberg:
There’s a silver lining for Riyadh-traded stocks in the delay to Saudi Arabian Oil Co.’s massive initial public offering.
While putting the oil giant’s market debut on hold has reduced Saudi Arabia’s likely profile on emerging-market equity indexes when the kingdom joins them next year, the decision has also removed a threat to investments in other Saudi stocks from what was set to be the world’s largest IPO.
Listing Aramco would be “very positive long term, but at the time of the IPO, our biggest concern would be a drain of liquidity, because you would see a lot of investors selling off their shares in order to fund their applications for the IPO,” Fahd Iqbal, head of Middle East research at Credit Suisse Group AG, said in an interview with Bloomberg Television. “With the removal of that IPO for the time being, it removes a little bit of that overhang.”
There’s a silver lining for Riyadh-traded stocks in the delay to Saudi Arabian Oil Co.’s massive initial public offering.
While putting the oil giant’s market debut on hold has reduced Saudi Arabia’s likely profile on emerging-market equity indexes when the kingdom joins them next year, the decision has also removed a threat to investments in other Saudi stocks from what was set to be the world’s largest IPO.
Listing Aramco would be “very positive long term, but at the time of the IPO, our biggest concern would be a drain of liquidity, because you would see a lot of investors selling off their shares in order to fund their applications for the IPO,” Fahd Iqbal, head of Middle East research at Credit Suisse Group AG, said in an interview with Bloomberg Television. “With the removal of that IPO for the time being, it removes a little bit of that overhang.”
MIDEAST STOCKS-Saudi posts third-day of gains, Dubai weak on Emirates NBD | Reuters
MIDEAST STOCKS-Saudi posts third-day of gains, Dubai weak on Emirates NBD | Reuters:
The Saudi index edged up 0.13 percent on Tuesday morning trade, staying in positive territory for the third day running, while Dubai stocks fell, driven by Emirates NBD and Emaar Properties
The Saudi market, which has added 10.94 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Telecom rose 0.6 percnet and Samba Financial climbed 0.5 percent.
The Saudi index edged up 0.13 percent on Tuesday morning trade, staying in positive territory for the third day running, while Dubai stocks fell, driven by Emirates NBD and Emaar Properties
The Saudi market, which has added 10.94 percent in the year-to-date, has been buoyed by inflows of foreign funds in anticipation of Riyadh joining emerging market indexes next year. Recent exchange data indicates those inflows have slowed but not halted as stock valuations have risen.
Saudi Telecom rose 0.6 percnet and Samba Financial climbed 0.5 percent.
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