DSI working with bourse and market regulator for resumption of trading - The National:
Drake & Scull International, the loss-making contractor whose stock has lost 84 per cent of its value this year, is in talks with the Dubai bourse and the UAE’s market regulator to remove the trading suspension of its shares.
The company's shares were barred from trading on November 14 after DSI announced the appointment of external restructuring advisers as its third-quarter loss widened on the back of project costs.
DSI is in “continuous communication and co-operation with the Dubai Financial Market and the Securities and Commodities Authority to lift the suspension on the trading of the company's shares once the ongoing operational and financial restructuring plan is approved”, it said in a bourse filing on Tuesday. DSI will provide “any additional information that the authorities may require in this respect”, it added.
Tuesday 20 November 2018
Gulf ratings untarnished by growing GRE debt
Gulf ratings untarnished by growing GRE debt:
The sovereign ratings of Gulf countries remain unaffected for now by both the recent and planned debt-raising activities of government-related entities, according to S&P Global.
The agency published a research note on Tuesday following investor concerns about the implications of significant amounts of debt being raised by government-backed entities such as investment funds and oil companies.
Saudi Arabia’s Public Investment Fund (PIF) raised an $11 billion international syndicated loan in September this year, while in July, Saudi Aramco said it might consider acquiring a strategic stake in Saudi Basic Industries Corp. (Sabic) from PIF. This potential acquisition is likely to require funding of up to $70 billion, said S&P Global.
The sovereign ratings of Gulf countries remain unaffected for now by both the recent and planned debt-raising activities of government-related entities, according to S&P Global.
The agency published a research note on Tuesday following investor concerns about the implications of significant amounts of debt being raised by government-backed entities such as investment funds and oil companies.
Saudi Arabia’s Public Investment Fund (PIF) raised an $11 billion international syndicated loan in September this year, while in July, Saudi Aramco said it might consider acquiring a strategic stake in Saudi Basic Industries Corp. (Sabic) from PIF. This potential acquisition is likely to require funding of up to $70 billion, said S&P Global.
Bargain hunters eye Saudi debt amid pain over Khashoggi, oil
Bargain hunters eye Saudi debt amid pain over Khashoggi, oil:
As if the fallout over the killing of columnist Jamal Khashoggi wasn’t enough, oil’s decline has helped make Saudi bonds the worst performers among Gulf peers in the second half of this year. But all this panic has created buying opportunities.
“There are times when risks get overpriced,” said New York-based Shamaila Khan, director of developing-nation debt at AllianceBernstein. “We like to take advantage of that when it happens.”
The nation’s bonds have been roiled by the international outrage over the murder of Khashoggi at the Saudi consulate in Turkey. Meanwhile, the price of oil, the kingdom’s main source of income, plummeted into a bear market as the US granted surprise waivers for sanctioned Iranian crude, spurring the yield on Saudi Arabia’s $5bn bonds due 2028 to a record last week.
As if the fallout over the killing of columnist Jamal Khashoggi wasn’t enough, oil’s decline has helped make Saudi bonds the worst performers among Gulf peers in the second half of this year. But all this panic has created buying opportunities.
“There are times when risks get overpriced,” said New York-based Shamaila Khan, director of developing-nation debt at AllianceBernstein. “We like to take advantage of that when it happens.”
The nation’s bonds have been roiled by the international outrage over the murder of Khashoggi at the Saudi consulate in Turkey. Meanwhile, the price of oil, the kingdom’s main source of income, plummeted into a bear market as the US granted surprise waivers for sanctioned Iranian crude, spurring the yield on Saudi Arabia’s $5bn bonds due 2028 to a record last week.
Uber's Middle East rival Careem looks to raise up to $200 million in China: source | Reuters
Uber's Middle East rival Careem looks to raise up to $200 million in China: source | Reuters:
Careem, Uber’s main Middle East rival, is looking at raising between $100 million and $200 million from Chinese investors, a source with direct knowledge of the matter told Reuters.
Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalised, the source said, adding there was a lack of familiarity and interest among Chinese investors in Middle Eastern start-ups.
Beijing-based CICC and Careem both declined to comment.
Careem, Uber’s main Middle East rival, is looking at raising between $100 million and $200 million from Chinese investors, a source with direct knowledge of the matter told Reuters.
Investment bank China International Capital Corporation (CICC) is advising Dubai-based Careem, but it was not immediately clear when or if a deal would be finalised, the source said, adding there was a lack of familiarity and interest among Chinese investors in Middle Eastern start-ups.
Beijing-based CICC and Careem both declined to comment.
Saudi Arabia announces more new projects in royal investment spree | Reuters
Saudi Arabia announces more new projects in royal investment spree | Reuters:
Saudi Arabia’s King Salman announced $3 billion in investment projects on Tuesday, the latest in a royal spending spree as the ruling family seeks to shore up support during a crisis over the murder of a journalist last month.
King Salman inaugurated 151 projects in the northern province of Tabuk valued at more than 11 billion riyals ($2.9 billion), the Saudi state news agency SPA reported.
The king, 82, has been meeting citizens and launching development projects over several weeks on a domestic tour that has already included stops in Qassim and Hail provinces, north of the capital Riyadh.
Saudi Arabia’s King Salman announced $3 billion in investment projects on Tuesday, the latest in a royal spending spree as the ruling family seeks to shore up support during a crisis over the murder of a journalist last month.
King Salman inaugurated 151 projects in the northern province of Tabuk valued at more than 11 billion riyals ($2.9 billion), the Saudi state news agency SPA reported.
The king, 82, has been meeting citizens and launching development projects over several weeks on a domestic tour that has already included stops in Qassim and Hail provinces, north of the capital Riyadh.
Oil slumps 7 percent as equities slide fuels demand worries | Reuters
Oil slumps 7 percent as equities slide fuels demand worries | Reuters:
Oil prices tumbled about 7 percent on Tuesday, with U.S. crude plunging to its lowest level in more than a year, caught in a broader Wall Street selloff that was fed by rising concerns about slowing global economic growth.
U.S. West Texas Intermediate (WTI) crude futures were down $3.90, or 6.8 percent, at $53.30 per barrel by 2:01 p.m. EST (1901 GMT). The contract fell as much as 7.7 percent earlier in the session to $52.77 a barrel, the lowest since October 2017.
So far in the session, more than 868,000 front-month WTI contracts had changed hands, exceeding the daily average over the last 10 months.
Oil prices tumbled about 7 percent on Tuesday, with U.S. crude plunging to its lowest level in more than a year, caught in a broader Wall Street selloff that was fed by rising concerns about slowing global economic growth.
U.S. West Texas Intermediate (WTI) crude futures were down $3.90, or 6.8 percent, at $53.30 per barrel by 2:01 p.m. EST (1901 GMT). The contract fell as much as 7.7 percent earlier in the session to $52.77 a barrel, the lowest since October 2017.
So far in the session, more than 868,000 front-month WTI contracts had changed hands, exceeding the daily average over the last 10 months.
Senator Graham sees bipartisan support for Saudi sanctions | Reuters
Senator Graham sees bipartisan support for Saudi sanctions | Reuters:
Republican U.S. Senator Lindsey Graham, a Trump ally, said on Tuesday there is strong bipartisan support in Congress for serious sanctions against Saudi Arabia, “including appropriate members of the royal family.”
Graham’s statement comes hours after Trump reiterated his defense of Riyadh over the killing of U.S.-based journalist Jamal Khashoggi, even though the CIA believes Saudi Arabia’s crown prince ordered the killing.
Republican U.S. Senator Lindsey Graham, a Trump ally, said on Tuesday there is strong bipartisan support in Congress for serious sanctions against Saudi Arabia, “including appropriate members of the royal family.”
Graham’s statement comes hours after Trump reiterated his defense of Riyadh over the killing of U.S.-based journalist Jamal Khashoggi, even though the CIA believes Saudi Arabia’s crown prince ordered the killing.
MIDEAST STOCKS-Gulf drops on oil, weak global trend; banks hit Abu Dhabi | Reuters
MIDEAST STOCKS-Gulf drops on oil, weak global trend; banks hit Abu Dhabi | Reuters:
All major Gulf stock markets fell on Tuesday with Abu Dhabi suffering its biggest one-day drop since June as bank shares weighed on the index.
Oil prices fell on Tuesday and were set to snap a four-day winning streak because of concern about rising global supplies. Meanwhile, world stock markets declined on a tech sell-off.
“Weak sentiment is clear across the region. It’s accompanied by geopolitical issues, the recent developments in Saudi (with the killing of journalist Jamal Khashoggi) and the possible outcome from that incident,” said Tariq Qaqish, managing director for asset management at Menacorp Financial Services in Dubai.
All major Gulf stock markets fell on Tuesday with Abu Dhabi suffering its biggest one-day drop since June as bank shares weighed on the index.
Oil prices fell on Tuesday and were set to snap a four-day winning streak because of concern about rising global supplies. Meanwhile, world stock markets declined on a tech sell-off.
“Weak sentiment is clear across the region. It’s accompanied by geopolitical issues, the recent developments in Saudi (with the killing of journalist Jamal Khashoggi) and the possible outcome from that incident,” said Tariq Qaqish, managing director for asset management at Menacorp Financial Services in Dubai.
Four years to go: #Qatar on course for its improbable World Cup | Football | The Guardian
Four years to go: Qatar on course for its improbable World Cup | Football | The Guardian:
It began almost a decade ago as the most unfeasible bid ever to host a World Cup: an outlandish proposal for “air-cooled” stadiums in the desert summer heat of a tiny, obscure-seeming Arab emirate with one city, Doha, populated by just 300,000 citizens. Qatar is though, the richest per capita state on earth, and on that cold Zurich night in December 2010 its bid succeeded in garnering a majority of Fifa executive committee votes, and claimed the right to host the 2022 World Cup.
Since then Qatar’s planned hosting of the tournament – its ubiquitous slogan in Doha is “Deliver Amazing” with its stated mission to unify people in the Middle East and project a positive Arab experience – has survived a hurricane of challenges. There have been waves of corruption allegations, which the secretary general of the “supreme committee” organising the World Cup, Hassan al-Thawadi, repeatedly denied, denounced and angrily dismissed as anti-Arab prejudice.
Intensive Fifa inquiries into the vote did not find Qatar’s bid more irregular than Australia’s – or England’s for 2018 and the FBI’s criminal investigation into American Fifa football barons has produced nothing solid against Qatar. There has been international condemnation of Qatar’s regime for migrant workers, now part of a reform process the government is conducting in partnership with the International Labour Organisation. In June last year, political hostilities erupted in the immediate region and Qatar remains subject to an actual blockade led by its much bigger, looming neighbour, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.
It began almost a decade ago as the most unfeasible bid ever to host a World Cup: an outlandish proposal for “air-cooled” stadiums in the desert summer heat of a tiny, obscure-seeming Arab emirate with one city, Doha, populated by just 300,000 citizens. Qatar is though, the richest per capita state on earth, and on that cold Zurich night in December 2010 its bid succeeded in garnering a majority of Fifa executive committee votes, and claimed the right to host the 2022 World Cup.
Since then Qatar’s planned hosting of the tournament – its ubiquitous slogan in Doha is “Deliver Amazing” with its stated mission to unify people in the Middle East and project a positive Arab experience – has survived a hurricane of challenges. There have been waves of corruption allegations, which the secretary general of the “supreme committee” organising the World Cup, Hassan al-Thawadi, repeatedly denied, denounced and angrily dismissed as anti-Arab prejudice.
Intensive Fifa inquiries into the vote did not find Qatar’s bid more irregular than Australia’s – or England’s for 2018 and the FBI’s criminal investigation into American Fifa football barons has produced nothing solid against Qatar. There has been international condemnation of Qatar’s regime for migrant workers, now part of a reform process the government is conducting in partnership with the International Labour Organisation. In June last year, political hostilities erupted in the immediate region and Qatar remains subject to an actual blockade led by its much bigger, looming neighbour, Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.
Oman budget deficit shrinks 36% in first nine months | ZAWYA MENA Edition
Oman budget deficit shrinks 36% in first nine months | ZAWYA MENA Edition:
Oman's state budget deficit for the first nine months of 2018 shrank 36.1 percent from a year earlier to 1.92 billion rials ($5.0 billion) as oil revenues rose sharply, data from the Finance Ministry showed on Tuesday.
Oman's state budget deficit for the first nine months of 2018 shrank 36.1 percent from a year earlier to 1.92 billion rials ($5.0 billion) as oil revenues rose sharply, data from the Finance Ministry showed on Tuesday.
Aramco says bonds issuance on table for SABIC deal, to make needed disclosures | Reuters
Aramco says bonds issuance on table for SABIC deal, to make needed disclosures | Reuters:
Saudi Aramco said on Tuesday that all funding options, including the issuance of bonds, are being considered for its potential acquisition of a stake in petrochemicals firm SABIC, and that it would make related disclosures when it is appropriate to do so.
“The company is actively pursuing a strategy of enhancing its portfolio by investing further into downstream and the petrochemical sector in particular. This includes discussions underway with the Public Investment Fund regarding the potential acquisition of a strategic interest in SABIC,” Aramco said in a statement to Reuters.
“All funding options, including the issuance of bonds, are being examined. The company will make any related disclosures as and when it is appropriate to do so.”
Saudi Aramco said on Tuesday that all funding options, including the issuance of bonds, are being considered for its potential acquisition of a stake in petrochemicals firm SABIC, and that it would make related disclosures when it is appropriate to do so.
“The company is actively pursuing a strategy of enhancing its portfolio by investing further into downstream and the petrochemical sector in particular. This includes discussions underway with the Public Investment Fund regarding the potential acquisition of a strategic interest in SABIC,” Aramco said in a statement to Reuters.
“All funding options, including the issuance of bonds, are being examined. The company will make any related disclosures as and when it is appropriate to do so.”
UAE's Senaat hires banks for planned sukuk -document | Reuters
UAE's Senaat hires banks for planned sukuk -document | Reuters:
United Arab Emirates’ General Holding Corp PJSC (Senaat) has mandated banks to arrange a series of fixed-income investor meetings in Europe, Asia and the Middle East starting on Thursday, a document seen by Reuters showed.
Senaat has mandated Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank and Standard Chartered Bank as joint lead managers and bookrunners, it said.
The industrial group is planning a 5- to 7-year tenor fixed-rate U.S. dollar-denominated senior unsecured sukuk under their $3 billion Trust Certificate Issuance Programme, subject to market conditions.
United Arab Emirates’ General Holding Corp PJSC (Senaat) has mandated banks to arrange a series of fixed-income investor meetings in Europe, Asia and the Middle East starting on Thursday, a document seen by Reuters showed.
Senaat has mandated Abu Dhabi Islamic Bank, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank and Standard Chartered Bank as joint lead managers and bookrunners, it said.
The industrial group is planning a 5- to 7-year tenor fixed-rate U.S. dollar-denominated senior unsecured sukuk under their $3 billion Trust Certificate Issuance Programme, subject to market conditions.
Trump inflated importance of Saudi arms sales to US job market, report says | World news | The Guardian
Trump inflated importance of Saudi arms sales to US job market, report says | World news | The Guardian:
US arms sales to Saudi Arabia give Washington extensive leverage on Riyadh, while accounting for fewer than 20,000 US jobs a year – less than a twentieth of the employment boost Donald Trump has claimed – according to a new report.
Trump has repeatedly cited the importance of Saudi arms sales to the US economy as a reason not to cut the supply of weapons in response to the murder of the Saudi writer and Washington Post columnist, Jamal Khashoggi.
The president has frequently estimated the total extent of defence sales to the Saudi regime at $110bn, and variously said they would generate 450,000, 500,000 or 600,000 jobs.
US arms sales to Saudi Arabia give Washington extensive leverage on Riyadh, while accounting for fewer than 20,000 US jobs a year – less than a twentieth of the employment boost Donald Trump has claimed – according to a new report.
Trump has repeatedly cited the importance of Saudi arms sales to the US economy as a reason not to cut the supply of weapons in response to the murder of the Saudi writer and Washington Post columnist, Jamal Khashoggi.
The president has frequently estimated the total extent of defence sales to the Saudi regime at $110bn, and variously said they would generate 450,000, 500,000 or 600,000 jobs.
MIDEAST STOCKS-Gulf flat to lower although Nama Chemicals surges in Saudi | Reuters
MIDEAST STOCKS-Gulf flat to lower although Nama Chemicals surges in Saudi | Reuters:
Gulf stock markets were flat to lower in early trade on Tuesday although Saudi Arabia’s Nama Chemicals surged because of an effort to appoint a new board.
The Saudi index was flat after an hour with Saudi Arabian Mining (Ma’aden) gaining 2.2 percent. Nama added 3.4 percent after shareholders owning more than 5 percent of the firm requested a meeting to consider the dissolution of the current board and the election of a new one.
Al Sagr Cooperative Insurance added 3.2 percent after announcing a 19.9 million riyal ($5.3 million) contract with Mahara Human Resources to provide insurance services.
Gulf stock markets were flat to lower in early trade on Tuesday although Saudi Arabia’s Nama Chemicals surged because of an effort to appoint a new board.
The Saudi index was flat after an hour with Saudi Arabian Mining (Ma’aden) gaining 2.2 percent. Nama added 3.4 percent after shareholders owning more than 5 percent of the firm requested a meeting to consider the dissolution of the current board and the election of a new one.
Al Sagr Cooperative Insurance added 3.2 percent after announcing a 19.9 million riyal ($5.3 million) contract with Mahara Human Resources to provide insurance services.
RPT-COLUMN-Oil market bull run ends as hedge funds square up positions: Kemp | Reuters
RPT-COLUMN-Oil market bull run ends as hedge funds square up positions: Kemp | Reuters:
Hedge fund managers have exited from all the bullish positions in crude oil and fuels they accumulated in the second half of 2017 as the bull market has unwound.
Upside price potential from Iran sanctions and prospective production cuts by OPEC is matched by downside risks from rapidly rising U.S. shale production and a deteriorating economic outlook.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by a further 74 million barrels in the week to Nov. 13.
Hedge fund managers have exited from all the bullish positions in crude oil and fuels they accumulated in the second half of 2017 as the bull market has unwound.
Upside price potential from Iran sanctions and prospective production cuts by OPEC is matched by downside risks from rapidly rising U.S. shale production and a deteriorating economic outlook.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by a further 74 million barrels in the week to Nov. 13.
RPT-FOCUS -South Korean shipbuilders' lock on LNG tanker market to hold for years | Reuters
RPT-FOCUS -South Korean shipbuilders' lock on LNG tanker market to hold for years | Reuters:
South Korean shipyards have boxed out their Japanese rivals from the market for building large ships carrying liquefied natural gas (LNG), winning all of the orders for the next three years worth more than $9 billion.
Three South Korean yards - Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries and Samsung Heavy Industries - have won the more than 50 orders placed for new large-scale LNG tankers for delivery in the next three years, according to data from the companies and two tanker brokers.
The bulging orderbook illustrates the dominance the South Korean yards have achieved over their competitors, especially in Japan. It is also sign of how the companies have rebounded from a sector-wide slump only two years ago and how they are positioned to command the sector in the future.
South Korean shipyards have boxed out their Japanese rivals from the market for building large ships carrying liquefied natural gas (LNG), winning all of the orders for the next three years worth more than $9 billion.
Three South Korean yards - Daewoo Shipbuilding & Marine Engineering (DSME), Hyundai Heavy Industries and Samsung Heavy Industries - have won the more than 50 orders placed for new large-scale LNG tankers for delivery in the next three years, according to data from the companies and two tanker brokers.
The bulging orderbook illustrates the dominance the South Korean yards have achieved over their competitors, especially in Japan. It is also sign of how the companies have rebounded from a sector-wide slump only two years ago and how they are positioned to command the sector in the future.
UAE economy minister hopes to resolve U.S. tariffs issue next year | Reuters
UAE economy minister hopes to resolve U.S. tariffs issue next year | Reuters:
The UAE’s minister of economy said on Tuesday that his country should not be hit with U.S. tariffs on aluminum and steel as the balance of trade is in the United States’ favor.
“I hope next year we will resolve it. We will continue to explain our case,” Sultan bin Saeed Al Mansoori told reporters on the sidelines of an event in Abu Dhabi.
U.S. Secretary of Commerce Wilbur Ross has promised to look into the issue, he said.
The UAE’s minister of economy said on Tuesday that his country should not be hit with U.S. tariffs on aluminum and steel as the balance of trade is in the United States’ favor.
“I hope next year we will resolve it. We will continue to explain our case,” Sultan bin Saeed Al Mansoori told reporters on the sidelines of an event in Abu Dhabi.
U.S. Secretary of Commerce Wilbur Ross has promised to look into the issue, he said.
Oil stable amid expectations OPEC will cut supply to prevent glut forming | Reuters
Oil stable amid expectations OPEC will cut supply to prevent glut forming | Reuters:
Oil prices were stable on Tuesday on expectations that producer club OPEC will soon cut supply to prevent oversupply amid slowing demand growth and a surge in output from the United States.
U.S. West Texas Intermediate (WTI) crude futures, were at $57.21 per barrel at 0117 GMT, 1 cent above their last settlement.
Front-month Brent crude oil futures were at $66.75 a barrel, down 4 cents from their last close.
Oil prices were stable on Tuesday on expectations that producer club OPEC will soon cut supply to prevent oversupply amid slowing demand growth and a surge in output from the United States.
U.S. West Texas Intermediate (WTI) crude futures, were at $57.21 per barrel at 0117 GMT, 1 cent above their last settlement.
Front-month Brent crude oil futures were at $66.75 a barrel, down 4 cents from their last close.
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