Arabian Gulf aid a 'lifeline' to Bahrain but reform targets must be met, analysts say - The National:
Arabian Gulf allies have provided Bahrain a "lifeline" to stabilise its economy and prevent a potential credit crunch with a $10 billion aid package but it needs to deliver on fiscal reform targets to ensure sustainable progress, analysts said.
The assistance to Bahrain will provide short-term relief to the smallest Gulf economy, help avoid a currency devaluation, meet immediate debt payments, dispel speculation on the currency peg to the US dollar and allow it borrow on international debt markets at cheaper interest rates, analysts said. The support, which is tied to fiscal reforms, will allow Bahrain to focus on implementing measures to rein in its budget deficit.
"This is an important lifeline for the Bahraini economy and should allow policy makers time to continue the implementation of the reforms necessary to restructure the economy," Tarek Fadlallah, chief executive of Nomura Asset Management Middle East, said. "In the short term it will restore confidence but Bahrain will still have to successfully implement additional reform measures to convince long-term investors."
Sunday 7 October 2018
Bahrain's GFH gets central bank approval for $1bn property sale - The National
Bahrain's GFH gets central bank approval for $1bn property sale - The National:
GFH Financial Group, the Bahraini Sharia-compliant investment company, said it got "conditional approval" from the central bank on an offer to sell its real estate portfolio.
The Manama-based company has received a $1 billion (Dh3.67bn) offer to sell its property portfolio, GFH said in a statement to the Dubai Financial Market on Sunday, where its shares are traded. It expects to receive an upfront payment ranging from $259 million to $380m, with the remainder based on a joint development agreement over five years.
"The transaction will be subject to GFH’s shareholders approval prior to execution," the company said.
GFH Financial Group, the Bahraini Sharia-compliant investment company, said it got "conditional approval" from the central bank on an offer to sell its real estate portfolio.
The Manama-based company has received a $1 billion (Dh3.67bn) offer to sell its property portfolio, GFH said in a statement to the Dubai Financial Market on Sunday, where its shares are traded. It expects to receive an upfront payment ranging from $259 million to $380m, with the remainder based on a joint development agreement over five years.
"The transaction will be subject to GFH’s shareholders approval prior to execution," the company said.
QSE index retreats below 9,900 levels as Gulf funds turn bearish
QSE index retreats below 9,900 levels as Gulf funds turn bearish:
The Qatar Stock Exchange opened the week weak with its key index retreating below 9,900 levels as Gulf funds turned bearish and there was weakened net buying support from non-Qatari institutions.
An across the board selling — particularly telecom, banking and real estate — led the 20-stock Qatar Index decline 0.56% to 9,847.05 points.
The Islamic equities were seen declining slower than the other indices in the market which is up 15.53% year-to-date.
The Qatar Stock Exchange opened the week weak with its key index retreating below 9,900 levels as Gulf funds turned bearish and there was weakened net buying support from non-Qatari institutions.
An across the board selling — particularly telecom, banking and real estate — led the 20-stock Qatar Index decline 0.56% to 9,847.05 points.
The Islamic equities were seen declining slower than the other indices in the market which is up 15.53% year-to-date.
Saudi Stocks Lead Gulf Drop as Aramco IPO Confirmed: Inside EM - Bloomberg
Saudi Stocks Lead Gulf Drop as Aramco IPO Confirmed: Inside EM - Bloomberg:
Saudi Arabian equities retreated the most in the Middle East, even after Crown Prince Mohammed bin Salman said the kingdom’s plan to overhaul its oil-dependent economy is on track. All other major stock gauges in the region also fell.
The Tadawul All Share Index rose briefly before slipping more than 1 percent, led by a decline in Saudi Basic Industries Corporation. The gauge’s 120-day correlation with Brent crude, which fell for a second day on Friday, is the highest since July 2017.
The Saudi crown prince said in an interview that the stalled plan to sell shares in oil giant Aramco will go ahead, promising an initial public offering by 2021 and sticking to his ambitious view the state-run company is worth $2 trillion or more.
Saudi Arabian equities retreated the most in the Middle East, even after Crown Prince Mohammed bin Salman said the kingdom’s plan to overhaul its oil-dependent economy is on track. All other major stock gauges in the region also fell.
The Tadawul All Share Index rose briefly before slipping more than 1 percent, led by a decline in Saudi Basic Industries Corporation. The gauge’s 120-day correlation with Brent crude, which fell for a second day on Friday, is the highest since July 2017.
The Saudi crown prince said in an interview that the stalled plan to sell shares in oil giant Aramco will go ahead, promising an initial public offering by 2021 and sticking to his ambitious view the state-run company is worth $2 trillion or more.
Saudi fund PIF purchases $578.6 mln land plot in northern Riyadh | Reuters
Saudi fund PIF purchases $578.6 mln land plot in northern Riyadh | Reuters:
Saudi Arabia’s sovereign wealth fund has purchased a huge plot of land in northern Riyadh for 2.17 billion riyals ($578.64 million) in what the auction operator and Saudi media described as the largest real estate transaction in the kingdom.
The Public Investment Fund (PIF) purchased the Al Ghadir plot at an auction of the property of late businessman Saleh Abdulaziz al-Rajhi, the Etqan real estate company, which handled the process, said.
The undeveloped plot is located at a prime spot in northern Riyadh, opposite the capital’s glitzy financial centre the King Abdullah Financial District (KFAD).
Saudi Arabia’s sovereign wealth fund has purchased a huge plot of land in northern Riyadh for 2.17 billion riyals ($578.64 million) in what the auction operator and Saudi media described as the largest real estate transaction in the kingdom.
The Public Investment Fund (PIF) purchased the Al Ghadir plot at an auction of the property of late businessman Saleh Abdulaziz al-Rajhi, the Etqan real estate company, which handled the process, said.
The undeveloped plot is located at a prime spot in northern Riyadh, opposite the capital’s glitzy financial centre the King Abdullah Financial District (KFAD).
Oil market is balanced, says Qatar energy minister | Reuters
Oil market is balanced, says Qatar energy minister | Reuters:
The oil market is balanced in terms of supply and demand, Qatar’s Energy Minister Mohammed al-Sada said on Sunday.
“Geopolitical changes” are the reason for the recent rise in crude prices, the state-run Qatar News Agency quoted him as saying.
“There are developments in the oil market including supply and the increase in global demand, and these considerations will be taken into account at the next meeting of OPEC (the Organization of the Petroleum Exporting Countries),” he said.
The oil market is balanced in terms of supply and demand, Qatar’s Energy Minister Mohammed al-Sada said on Sunday.
“Geopolitical changes” are the reason for the recent rise in crude prices, the state-run Qatar News Agency quoted him as saying.
“There are developments in the oil market including supply and the increase in global demand, and these considerations will be taken into account at the next meeting of OPEC (the Organization of the Petroleum Exporting Countries),” he said.
Bahrain's Gulf International Bank cancels bond due to market conditions
Bahrain's Gulf International Bank cancels bond due to market conditions:
Bahrain’s Gulf International Bank, indirectly owned by the government of Saudi Arabia through the Public Investment Fund, said it had decided not to proceed with a planned U.S. dollar bond issue because of market conditions.
“GIB has decided not to proceed with the planned bond issue due to prevailing market conditions despite strong investor demand,” the bank said in an emailed statement to Reuters.
“This has been recognised by investors as an understandable and wise decision.”
Bahrain’s Gulf International Bank, indirectly owned by the government of Saudi Arabia through the Public Investment Fund, said it had decided not to proceed with a planned U.S. dollar bond issue because of market conditions.
“GIB has decided not to proceed with the planned bond issue due to prevailing market conditions despite strong investor demand,” the bank said in an emailed statement to Reuters.
“This has been recognised by investors as an understandable and wise decision.”
MIDEAST STOCKS-Saudi petchems down as first quarterly results weigh on soft market | Reuters
MIDEAST STOCKS-Saudi petchems down as first quarterly results weigh on soft market | Reuters:
Gulf stock markets mostly slipped on Sunday, following a series of disappointing corporate results in Saudi Arabia and a slide in global stocks.
The Saudi index lost 1.3 percent, with the whole petrochemicals sector in negative territory, despite a rise in oil prices late last week.
Advanced Petrochemical dropped 2.8 percent after reporting a slight decline in quarterly net income to 202 million riyals ($53.86 million). This was above analysts’ median forecast of 188 million riyals, according to Refinitiv data.
Gulf stock markets mostly slipped on Sunday, following a series of disappointing corporate results in Saudi Arabia and a slide in global stocks.
The Saudi index lost 1.3 percent, with the whole petrochemicals sector in negative territory, despite a rise in oil prices late last week.
Advanced Petrochemical dropped 2.8 percent after reporting a slight decline in quarterly net income to 202 million riyals ($53.86 million). This was above analysts’ median forecast of 188 million riyals, according to Refinitiv data.
Standard Life Said in Talks With Saudis Over Seeding Local Funds - Bloomberg
Standard Life Said in Talks With Saudis Over Seeding Local Funds - Bloomberg:
Standard Life Aberdeen Plc is in talks with Saudi Arabia about starting one or more investment vehicles that would be seeded by the kingdom’s sovereign wealth fund and could raise billions of dollars, according to people familiar with the matter.
Under the proposal, Standard Life Aberdeen would manage the funds, which would be topped-up by money from other investors, the people said, asking not to be identified as the information is private. Standard Life Aberdeen is studying opening an office in Riyadh to manage the new funds from there, the people said.
The talks are at an early stage and could fall apart, the people said. Officials for Standard Life Aberdeen declined to comment.
Standard Life Aberdeen Plc is in talks with Saudi Arabia about starting one or more investment vehicles that would be seeded by the kingdom’s sovereign wealth fund and could raise billions of dollars, according to people familiar with the matter.
Under the proposal, Standard Life Aberdeen would manage the funds, which would be topped-up by money from other investors, the people said, asking not to be identified as the information is private. Standard Life Aberdeen is studying opening an office in Riyadh to manage the new funds from there, the people said.
The talks are at an early stage and could fall apart, the people said. Officials for Standard Life Aberdeen declined to comment.
Credit Suisse Is Said to Rehire Badr to Sharpen Focus on Saudi - Bloomberg
Credit Suisse Is Said to Rehire Badr to Sharpen Focus on Saudi - Bloomberg:
Ahmed Badr is set to rejoin Credit Suisse Group AG in Dubai four years after Renaissance Capital hired him from the Swiss bank as part of a push into Saudi Arabian stocks.
Badr will become a managing director and be responsible for boosting the Zurich-based lender’s equity operations in the Middle East and North Africa, according to two people with knowledge of his move. They asked not to be identified because the information isn’t public. The Saudi Arabian equities market will be his biggest priority, according to one of the people.
Renaissance confirmed that Badr is leaving the company, without giving details. Badr and Credit Suisse declined to comment.
Ahmed Badr is set to rejoin Credit Suisse Group AG in Dubai four years after Renaissance Capital hired him from the Swiss bank as part of a push into Saudi Arabian stocks.
Badr will become a managing director and be responsible for boosting the Zurich-based lender’s equity operations in the Middle East and North Africa, according to two people with knowledge of his move. They asked not to be identified because the information isn’t public. The Saudi Arabian equities market will be his biggest priority, according to one of the people.
Renaissance confirmed that Badr is leaving the company, without giving details. Badr and Credit Suisse declined to comment.
Iran parliament passes measures against funding terrorism | Reuters
Iran parliament passes measures against funding terrorism | Reuters:
Iran’s parliament approved new measures against funding terrorism on Sunday, changes that officials hope will move Tehran closer to global norms and help remove it from investment blacklists as it faces renewed U.S. sanctions.
The measures, which allow Iran to join a convention against the funding of terrorism (CFT), still have to be approved by a clerical body before they become law.
Tehran says it has been trying to implement international standards against money laundering and the funding of terrorism set by the Financial Action Task Force (FATF), but it has struggled to get the measures passed.
Iran’s parliament approved new measures against funding terrorism on Sunday, changes that officials hope will move Tehran closer to global norms and help remove it from investment blacklists as it faces renewed U.S. sanctions.
The measures, which allow Iran to join a convention against the funding of terrorism (CFT), still have to be approved by a clerical body before they become law.
Tehran says it has been trying to implement international standards against money laundering and the funding of terrorism set by the Financial Action Task Force (FATF), but it has struggled to get the measures passed.
MIDEAST STOCKS-Drake and Scull jumps in Dubai, outperforming weak Gulf markets | Reuters
MIDEAST STOCKS-Drake and Scull jumps in Dubai, outperforming weak Gulf markets | Reuters:
Gulf markets opened in negative territory on Sunday mirroring a slump in global stocks late last week.
In Dubai the index shed 0.2 percent in early trade, but contractor Drake and Scull International (DSI) outperformed, jumping 7.3 percent to 0.44 dirhams ($0.1198) after the company said a majority of shareholders approved the company continuing its business at a general assembly last Thursday.
DSI, which has faced mounting losses since 2015, called a shareholder meeting in accordance with UAE companies’ law, which states that shareholders must decide on whether to dissolve a company if its losses amount to half of its issued share capital.
Gulf markets opened in negative territory on Sunday mirroring a slump in global stocks late last week.
In Dubai the index shed 0.2 percent in early trade, but contractor Drake and Scull International (DSI) outperformed, jumping 7.3 percent to 0.44 dirhams ($0.1198) after the company said a majority of shareholders approved the company continuing its business at a general assembly last Thursday.
DSI, which has faced mounting losses since 2015, called a shareholder meeting in accordance with UAE companies’ law, which states that shareholders must decide on whether to dissolve a company if its losses amount to half of its issued share capital.
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