UAE bank assets rise 6% to Dh2.85tn led by growth from conventional lenders - The National:
The UAE’s bank assets rose 6 per cent to Dh2.85 trillion in the first 11 months of this year from the end of December 2017, led by growth in conventional bank assets, latest Central Bank figures showed.
Conventional banking assets rose 6.1 per cent to Dh2.275tn in the 11 eleven months of this year from the end of December 2017, while Islamic bank assets increased 5.3 per cent to Dh579.2 billion during the same period, according to the figures posted on state-run news agency Wam.
Conventional banking assets accounted for more than three-quarters (79.7 per cent) of total banking assets in the country as of end of November, while Sharia-compliant assets accounted for a fifth (20.3 per cent) o the total. There are 60 banks operating in the UAE, and eight of them are Sharia-compliant.
Tuesday 25 December 2018
Exclusive: Former Abraaj venture Wamda Capital to launch second $70m VC fund - The National
Exclusive: Former Abraaj venture Wamda Capital to launch second $70m VC fund - The National:
Wamda Capital, the venture capital company that emerged out of an entrepreneurship platform set up by Abraaj Capital, is planning the first close of its second $70 million (Dh257m) investment fund in early 2019, a partner at the firm said.
The Dubai VC company, which launched an inaugural $70m fund in 2015, is courting the same set of investors but hopes to attract new partners, said Fares Ghandour. The first fund, which is estimated to have allotted at least 80 per cent of its money by the end of this year, counted: now-embattled private equity firm Abraaj; the International Finance Corporation, an arm of the World Bank; Kuwaiti telco, the Zain Group; family offices; and other partners, as investors.
The new vehicle “will be the continuation of funding for the young demographic shift that is happening in these markets and companies that are looking to solve challenges for the up and coming, connected generation,” said Mr Ghandour.
Wamda Capital, the venture capital company that emerged out of an entrepreneurship platform set up by Abraaj Capital, is planning the first close of its second $70 million (Dh257m) investment fund in early 2019, a partner at the firm said.
The Dubai VC company, which launched an inaugural $70m fund in 2015, is courting the same set of investors but hopes to attract new partners, said Fares Ghandour. The first fund, which is estimated to have allotted at least 80 per cent of its money by the end of this year, counted: now-embattled private equity firm Abraaj; the International Finance Corporation, an arm of the World Bank; Kuwaiti telco, the Zain Group; family offices; and other partners, as investors.
The new vehicle “will be the continuation of funding for the young demographic shift that is happening in these markets and companies that are looking to solve challenges for the up and coming, connected generation,” said Mr Ghandour.
Is off-plan losing its shine? #Dubai #UAE
Is off-plan losing its shine?:
The past few years saw a sharp rise in off-plan property sales across Dubai, driven in part by competitive prices and flexible payment terms offered by developers. Off-plan sales accounted for 58 per cent of transactions in 2016, increasing to 67 per cent last year, according to research by ValuStrat. As of the third quarter this year, off-plan sales already account for 60 per cent of transactions.
Off-plan particularly dominated property sales in established communities such as Downtown Dubai, which saw 85 per cent of total sales in the third quarter being off-plan, Business Bay (84 per cent) and Remraam (75 per cent), ValuStrat further reported. According to analysts, this reflects a general sentiment of buyers and underlines the most glaring concerns towards off-plan units.
“There are still various uncertainties surrounding the off-plan market, which means it also has risks,” said Jenny Weidling, research and advisory manager at Asteco. “Delays remain an issue, with developers having limited obligations to pay penalties if the project is not handed over on time. This causes issues for buyers who are end users and are looking to live in their units, rather than rent them out or sell them as an investment, since any delay can affect their ability to vacate their current property, which may be rented.”
The past few years saw a sharp rise in off-plan property sales across Dubai, driven in part by competitive prices and flexible payment terms offered by developers. Off-plan sales accounted for 58 per cent of transactions in 2016, increasing to 67 per cent last year, according to research by ValuStrat. As of the third quarter this year, off-plan sales already account for 60 per cent of transactions.
Off-plan particularly dominated property sales in established communities such as Downtown Dubai, which saw 85 per cent of total sales in the third quarter being off-plan, Business Bay (84 per cent) and Remraam (75 per cent), ValuStrat further reported. According to analysts, this reflects a general sentiment of buyers and underlines the most glaring concerns towards off-plan units.
“There are still various uncertainties surrounding the off-plan market, which means it also has risks,” said Jenny Weidling, research and advisory manager at Asteco. “Delays remain an issue, with developers having limited obligations to pay penalties if the project is not handed over on time. This causes issues for buyers who are end users and are looking to live in their units, rather than rent them out or sell them as an investment, since any delay can affect their ability to vacate their current property, which may be rented.”
#SaudiArabia Plans Spate of Water Project Privatizations in 2019 - Bloomberg
Saudi Arabia Plans Spate of Water Project Privatizations in 2019 - Bloomberg:
Saudi Arabia plans to tender or award six water-related projects in 2019 as it pushes ahead with a privatization program that got off to a slow start.
The cabinet recently approved the tendering of seven desalination and wastewater projects. One was awarded this week, three are in various stages of tender process and three more will be offered to investors next year, the government’s National Center for Privatization and PPP said in a statement.
So far, more than 40 percent of the bids have come from international companies relying heavily on financing from international banks, the center said. It didn’t provide details on the monetary value of the water projects, but said the total value of all public-private partnerships to be tendered by 2020 is expected to be 24 billion to 28 billion riyals ($6.4 billion to $7.5 billion).
Saudi Arabia plans to tender or award six water-related projects in 2019 as it pushes ahead with a privatization program that got off to a slow start.
The cabinet recently approved the tendering of seven desalination and wastewater projects. One was awarded this week, three are in various stages of tender process and three more will be offered to investors next year, the government’s National Center for Privatization and PPP said in a statement.
So far, more than 40 percent of the bids have come from international companies relying heavily on financing from international banks, the center said. It didn’t provide details on the monetary value of the water projects, but said the total value of all public-private partnerships to be tendered by 2020 is expected to be 24 billion to 28 billion riyals ($6.4 billion to $7.5 billion).
#Saudi's SAFCO seeks banks for role in acquisition of SABIC stakes in agri-nutrients businesses | ZAWYA MENA Edition
Saudi's SAFCO seeks banks for role in acquisition of SABIC stakes in agri-nutrients businesses | ZAWYA MENA Edition:
Saudi Arabia Fertilizers Co (SAFCO) has invited banks to pitch for an advisory role in its potential acquisition of stakes in five agri-nutrients businesses now held by Saudi Basic Industries Corp (SABIC), two sources told Reuters.
SAFCO wants to buy SABIC's stakes in Al-Jubail Fertilizer Company (Al-Bayroni), National Fertilizer Company (Ibn al-Baytar), Gulf Petrochemicals Industries Company, Ma'aden Phosphate Company, and Ma'aden Wa'ad al Shamal Phosphate Company, said the sources, who declined to be named due to commercial sensitivities.
SABIC owns 43 percent in SAFCO. Neither company responded to requests for comment.
Saudi Arabia Fertilizers Co (SAFCO) has invited banks to pitch for an advisory role in its potential acquisition of stakes in five agri-nutrients businesses now held by Saudi Basic Industries Corp (SABIC), two sources told Reuters.
SAFCO wants to buy SABIC's stakes in Al-Jubail Fertilizer Company (Al-Bayroni), National Fertilizer Company (Ibn al-Baytar), Gulf Petrochemicals Industries Company, Ma'aden Phosphate Company, and Ma'aden Wa'ad al Shamal Phosphate Company, said the sources, who declined to be named due to commercial sensitivities.
SABIC owns 43 percent in SAFCO. Neither company responded to requests for comment.
Mideast Stocks: Global market woes hurt Gulf, merger talk sends Riyad Bank to 4-year high | ZAWYA MENA Edition
Mideast Stocks: Global market woes hurt Gulf, merger talk sends Riyad Bank to 4-year high | ZAWYA MENA Edition:
The Saudi market fell on Tuesday, as plunging oil prices pressured petrochemical stocks, while Riyad Bank was the top gainer, reaching a four-year high after saying it was in merger talks with National Commercial Bank (NCB).
The Dubai index was the sole gainer of the session, inching up on the back of rises in its banking shares, with most major Gulf bourses slipping on tepid global sentiment and weak oil prices.
Oil prices plunged to their lowest level in more than a year on Monday, as fears of an economic slowdown weighed on the market.
The Saudi market fell on Tuesday, as plunging oil prices pressured petrochemical stocks, while Riyad Bank was the top gainer, reaching a four-year high after saying it was in merger talks with National Commercial Bank (NCB).
The Dubai index was the sole gainer of the session, inching up on the back of rises in its banking shares, with most major Gulf bourses slipping on tepid global sentiment and weak oil prices.
Oil prices plunged to their lowest level in more than a year on Monday, as fears of an economic slowdown weighed on the market.
#Iran budget proposals point to revenue decline | Financial Times
Iran budget proposals point to revenue decline | Financial Times:
Iran’s proposed state budget for the coming year points to a 3.7 per cent decline in revenues in rial terms, as US sanctions continue to bite.
The budget bill — proposed by president Hassan Rouhani on Tuesday, but yet to be approved by parliament — forecasts 2,086tn rials in revenues for the next Iranian fiscal year — down from the 2,161tn rials forecast for mid-March when the financial year ends.
“This budget is drafted based on the impact of sanctions while the economy will definitely shrink next year,” said one economic analyst. “The government has not only taken the current sanctions into consideration but is preparing for tougher sanctions to come.”
Iran’s proposed state budget for the coming year points to a 3.7 per cent decline in revenues in rial terms, as US sanctions continue to bite.
The budget bill — proposed by president Hassan Rouhani on Tuesday, but yet to be approved by parliament — forecasts 2,086tn rials in revenues for the next Iranian fiscal year — down from the 2,161tn rials forecast for mid-March when the financial year ends.
“This budget is drafted based on the impact of sanctions while the economy will definitely shrink next year,” said one economic analyst. “The government has not only taken the current sanctions into consideration but is preparing for tougher sanctions to come.”
Four Charts That Show the Impact of #SaudiArabia's New Mega Bank - Bloomberg
Four Charts That Show the Impact of Saudi Arabia's New Mega Bank - Bloomberg:
Two of Saudi Arabia’s biggest banks are exploring a merger that will dwarf their competitors and could prompt other lenders to combine and fight for market share in the oil-rich kingdom.
The proposed merger of National Commercial Bank and Riyad Bank, the first and fourth biggest Saudi banks, would create an institution with $182 billion in assets. The giant lender could gain an edge against local and foreign rivals in an economy that continues to suffer from tight liquidity following the plunge in oil prices in 2014.
Here is look at the impact of the possible merger in four charts:
Two of Saudi Arabia’s biggest banks are exploring a merger that will dwarf their competitors and could prompt other lenders to combine and fight for market share in the oil-rich kingdom.
The proposed merger of National Commercial Bank and Riyad Bank, the first and fourth biggest Saudi banks, would create an institution with $182 billion in assets. The giant lender could gain an edge against local and foreign rivals in an economy that continues to suffer from tight liquidity following the plunge in oil prices in 2014.
Here is look at the impact of the possible merger in four charts:
Nikkei Enters Bear Market to Extend Global Rout: Markets Wrap - Bloomberg
Nikkei Enters Bear Market to Extend Global Rout: Markets Wrap - Bloomberg:
The Nikkei 225 Stock Average slid into a bear market, as a global equity rout continued unabated in the last week of the year, with renewed turmoil in Washington rattling investors. Israeli stocks sank for a fourth day, while the yen and Japanese bonds rose.
The Japanese benchmark fell 5 percent on Tuesday, widening its drop to 21 percent from its Oct. 2 peak, taking its cue from the S&P 500’s worst trading session before the Christmas holiday. Chinese shares, the other major Asian market open on Tuesday, also declined as investors shrugged off a pledge by the government to do more to support companies.
Investors looking to Washington for signs of stability that might bolster confidence instead got further unnerved on Monday. President Donald Trump blasted the Federal Reserve, blaming the central bank for the three-month equity rout days after Bloomberg reported he inquired about firing the chairman, while Treasury Secretary Steven Mnuchin sought to assuage rising anxiety with a hastily called meeting of top financial regulators.
The Nikkei 225 Stock Average slid into a bear market, as a global equity rout continued unabated in the last week of the year, with renewed turmoil in Washington rattling investors. Israeli stocks sank for a fourth day, while the yen and Japanese bonds rose.
The Japanese benchmark fell 5 percent on Tuesday, widening its drop to 21 percent from its Oct. 2 peak, taking its cue from the S&P 500’s worst trading session before the Christmas holiday. Chinese shares, the other major Asian market open on Tuesday, also declined as investors shrugged off a pledge by the government to do more to support companies.
Investors looking to Washington for signs of stability that might bolster confidence instead got further unnerved on Monday. President Donald Trump blasted the Federal Reserve, blaming the central bank for the three-month equity rout days after Bloomberg reported he inquired about firing the chairman, while Treasury Secretary Steven Mnuchin sought to assuage rising anxiety with a hastily called meeting of top financial regulators.
Rouhani presents Iran budget, says U.S. sanctions to hit lives, growth | Reuters
Rouhani presents Iran budget, says U.S. sanctions to hit lives, growth | Reuters:
Iran’s President Hassan Rouhani on Tuesday presented a $47 billion state budget, about a third of it consisting of subsidies for low income groups, saying U.S. sanctions would affect people’s lives and economic growth but not bring the government to its knees.
U.S. President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on it, including on its vital oil industry.
“America’s goal is to bring Iran’s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people’s lives, and the country’s development and economic growth,” Rouhani told parliament in a speech carried live on state television.
Iran’s President Hassan Rouhani on Tuesday presented a $47 billion state budget, about a third of it consisting of subsidies for low income groups, saying U.S. sanctions would affect people’s lives and economic growth but not bring the government to its knees.
U.S. President Donald Trump pulled the United States out of a multilateral nuclear deal with Iran in May and reimposed sanctions on it, including on its vital oil industry.
“America’s goal is to bring Iran’s Islamic system to its knees... and it will fail in this, but sanctions will no doubt affect people’s lives, and the country’s development and economic growth,” Rouhani told parliament in a speech carried live on state television.
#UAE's Empower settles $728 mln loan in full- statement | ZAWYA MENA Edition
UAE's Empower settles $728 mln loan in full- statement | ZAWYA MENA Edition:
United Arab Emirates-based district cooling firm Emirates Central Cooling Systems Corporation (Empower) has settled a $728 million loan, a company statement said on Tuesday.
"Empower has fully settled its term loan facilities for a total amount of AED 2.67 billion ($728 million) and the company will have zero debt in its books at the end of the year," the statement added.
United Arab Emirates-based district cooling firm Emirates Central Cooling Systems Corporation (Empower) has settled a $728 million loan, a company statement said on Tuesday.
"Empower has fully settled its term loan facilities for a total amount of AED 2.67 billion ($728 million) and the company will have zero debt in its books at the end of the year," the statement added.
Mideast Stocks: Riyad Bank jumps to 4-year high on deal talk, oil drags down Gulf | ZAWYA MENA Edition
Mideast Stocks: Riyad Bank jumps to 4-year high on deal talk, oil drags down Gulf | ZAWYA MENA Edition:
The Saudi stock market fell on Tuesday, pressured by sliding oil prices, but Riyad Bank was one of the top gainers, hitting a four-year high after announcing merger talks with National Commercial Bank
All major Middle Eastern markets dropped on weak oil prices and tepid global sentiment, with Dubai's index continuing to hover at a five-year low, weighed down by property stocks.
Oil prices plunged to their lowest level in more than a year on Monday, as fears of an economic slowdown weighed on the market.
The Saudi stock market fell on Tuesday, pressured by sliding oil prices, but Riyad Bank was one of the top gainers, hitting a four-year high after announcing merger talks with National Commercial Bank
All major Middle Eastern markets dropped on weak oil prices and tepid global sentiment, with Dubai's index continuing to hover at a five-year low, weighed down by property stocks.
Oil prices plunged to their lowest level in more than a year on Monday, as fears of an economic slowdown weighed on the market.
Crude Spirals to 18-Month Low Amid Global Economic Concerns - Bloomberg
Crude Spirals to 18-Month Low Amid Global Economic Concerns - Bloomberg:
Crude fell to the lowest level in a year and a half as concerns over the global economy and turbulence in Washington overshadowed signals from OPEC that it may deepen output cuts.
Futures slid 6.7 percent in a shortened Christmas Eve session in New York, joining a rout in U.S. stocks as investors assess the threat from a government shutdown. The latest tumble left crude prices down 44 percent since reaching a four-year peak in October -- including a 19 percent falloff since OPEC and Russia announced major output cuts earlier this month.
“As stocks get taken down and there is nervousness across financial markets, it’s just undercutting prices here,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC. "The demand outlook continues to be called into question."
Crude fell to the lowest level in a year and a half as concerns over the global economy and turbulence in Washington overshadowed signals from OPEC that it may deepen output cuts.
Futures slid 6.7 percent in a shortened Christmas Eve session in New York, joining a rout in U.S. stocks as investors assess the threat from a government shutdown. The latest tumble left crude prices down 44 percent since reaching a four-year peak in October -- including a 19 percent falloff since OPEC and Russia announced major output cuts earlier this month.
“As stocks get taken down and there is nervousness across financial markets, it’s just undercutting prices here,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC. "The demand outlook continues to be called into question."
Sotheby’s in Talks to Help Saudi Prince Build Desert Art Oasis - Bloomberg #MbS
Sotheby’s in Talks to Help Saudi Prince Build Desert Art Oasis - Bloomberg:
Saudi Crown Prince Mohammed Bin Salman has set multiple ambitious agendas for his desert kingdom. Turning it into a major cultural destination may end up being one of the highest-profile.
For part of the plan, the Saudi government has turned to Sotheby’s, the biggest U.S. auction house, and Allan Schwartzman, the co-chairman of its fine art division. He rose to fame by creating an arts dreamland in the Brazilian jungle for a mining magnate who was later convicted of money laundering.
The Saudi cultural center would take root in Al-Ula, an archaeologically rich region in the northwest of the country. There, the Nabateans, a formerly nomadic tribe of skilled craftsman and traders, carved elaborate buildings out of sandstone more than 2,000 years ago. The region contains an ancient city, Mada’in Salih, which was Saudi Arabia’s first Unesco World Heritage Site.
Saudi Crown Prince Mohammed Bin Salman has set multiple ambitious agendas for his desert kingdom. Turning it into a major cultural destination may end up being one of the highest-profile.
For part of the plan, the Saudi government has turned to Sotheby’s, the biggest U.S. auction house, and Allan Schwartzman, the co-chairman of its fine art division. He rose to fame by creating an arts dreamland in the Brazilian jungle for a mining magnate who was later convicted of money laundering.
The Saudi cultural center would take root in Al-Ula, an archaeologically rich region in the northwest of the country. There, the Nabateans, a formerly nomadic tribe of skilled craftsman and traders, carved elaborate buildings out of sandstone more than 2,000 years ago. The region contains an ancient city, Mada’in Salih, which was Saudi Arabia’s first Unesco World Heritage Site.
Saudi Said to Weigh More Bank Mergers as NCB Announces Talks - Bloomberg
Saudi Said to Weigh More Bank Mergers as NCB Announces Talks - Bloomberg:
Saudi Arabia is exploring potential mergers to boost its financial services industry after the combination of Saudi British Bank and Alawwal Bank, according to people with knowledge of the matter.
The kingdom’s main sovereign wealth fund, which owns stakes in some of the biggest lenders, is weighing which banks could be merged to increase scale and competition, the people said, asking not to be identified because the talks are private. Authorities are also likely to look favorably upon potential mergers among banks outside the state’s control.
Shortly after the Bloomberg report, National Commercial Bank, the kingdom’s largest, announced the start of merger talks with Riyad Bank. A deal would create a lender with $182 billion in assets, according to data compiled by Bloomberg.
Other lenders weighing possible mergers include Banque Saudi Fransi, whose largest shareholder is Prince Alwaleed bin Talal’s Kingdom Holding Co., Al Rajhi Bank and Samba Financial, the people said. The deliberations about consolidation are preliminary and may not result in a transaction, the people said.
Saudi Arabia is exploring potential mergers to boost its financial services industry after the combination of Saudi British Bank and Alawwal Bank, according to people with knowledge of the matter.
The kingdom’s main sovereign wealth fund, which owns stakes in some of the biggest lenders, is weighing which banks could be merged to increase scale and competition, the people said, asking not to be identified because the talks are private. Authorities are also likely to look favorably upon potential mergers among banks outside the state’s control.
Shortly after the Bloomberg report, National Commercial Bank, the kingdom’s largest, announced the start of merger talks with Riyad Bank. A deal would create a lender with $182 billion in assets, according to data compiled by Bloomberg.
Other lenders weighing possible mergers include Banque Saudi Fransi, whose largest shareholder is Prince Alwaleed bin Talal’s Kingdom Holding Co., Al Rajhi Bank and Samba Financial, the people said. The deliberations about consolidation are preliminary and may not result in a transaction, the people said.
Ghana's first oil exploration licensing round attracts global majors | Reuters
Ghana's first oil exploration licensing round attracts global majors | Reuters:
Sixteen oil and gas firms have submitted applications for one or more of five Ghanaian offshore blocks in the West African country’s first exploration licensing round, its energy ministry said.
The interest is a major vote of confidence in Ghana, which is keen to unlock more resources after it began pumping from its flagship offshore Jubilee field in 2010.
The companies that have submitted applications are Tullow Oil, Total, ENI, Cairn, Harmony Oil and Gas Corporation, ExxonMobil, CNOOC, Qatar Petroleum [QATPE.UL], BP, Vitol [VITOLV.UL], Global Petroleum Group, Aker Energy, First E&P, Kosmos, Sasol and Equinor.
Sixteen oil and gas firms have submitted applications for one or more of five Ghanaian offshore blocks in the West African country’s first exploration licensing round, its energy ministry said.
The interest is a major vote of confidence in Ghana, which is keen to unlock more resources after it began pumping from its flagship offshore Jubilee field in 2010.
The companies that have submitted applications are Tullow Oil, Total, ENI, Cairn, Harmony Oil and Gas Corporation, ExxonMobil, CNOOC, Qatar Petroleum [QATPE.UL], BP, Vitol [VITOLV.UL], Global Petroleum Group, Aker Energy, First E&P, Kosmos, Sasol and Equinor.
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