Saturday 24 January 2015

Why Abu Dhabi faces a balancing act in the property market - FT.com

Why Abu Dhabi faces a balancing act in the property market - FT.com:



"The view from the 74th floor of Etihad Towers, a local landmark in Abu Dhabi, reveals that for every completed apartment scheme there is a construction site in full swing.



And no wonder: the city’s population is expected to grow from about 1.3m today to 3m then 5m over the next 15 years. The figures come from “Vision 2030”, a scheme set up by the urban planning council of Abu Dhabi, capital of the United Arab Emirates.



With a large majority of its population being expats from the Middle East, Africa and western Europe, this is not a straightforward property market."



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Oil plunge may delay new IPOs in UAE | GulfNews.com

Oil plunge may delay new IPOs in UAE | GulfNews.com:



"Plunging crude oil prices may delay the initial public offerings (IPOs) in the GCC as valuations remains compressed, market participants said.



Last year, about 6 companies got listed on the local exchange after a hiatus of 5 years in which investors poured billion of dollars looking at the underlying strength of the UAE economy. In the wider Middle East and North Africa (Mena) region, companies raised $11.5 billion in 2014 through 27 IPOs, almost four times more than the $3 billion raised in 2013 through 25 IPOs.



However, investor sentiment has taken a hit due to falling oil prices, which may trigger a delay in primary market issuances."



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GCC surpluses capable of withstanding oil slump | GulfNews.com

GCC surpluses capable of withstanding oil slump | GulfNews.com:



"The sharp fall in oil prices during the last quarter and the volatility on the regional financial markets have triggered the fear of another regional economic slump.



From public policy forums to private chats, people are discussing the future of Gulf economies in the context of falling oil prices. Clearly decline in oil prices has cast doubts on the GCC governments’ ability to sustain the planned level of spending in 2015.



While few expect massive spending cuts in the short term, many analysts and policy experts say a sustained fall in oil prices over a very long period of time could force some fiscal adjustments in the region; the impact on the planned government spending will be minimal over the next two years."



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Oil Falls to Lowest Since ’09 as Saudis Signal Continuity - Bloomberg

Oil Falls to Lowest Since ’09 as Saudis Signal Continuity - Bloomberg:



"Oil fell to the lowest in almost six years on speculation the death of King Abdullah of Saudi Arabia won’t signal any change in strategy for the world’s largest crude exporter.



U.S. benchmark oil futures slid 1.6 percent, reversing an initial gain of as much as 3.1 percent. Salman Bin Abdulaziz Al Saud, who succeeds Abdullah on the throne, said he would maintain his predecessor’s policies. The kingdom will not cut production to boost prices because other producers would fill in the gap, Saudi Prince Alwaleed Bin Talal Al Saud said. U.S. crude inventories rose the most since 2001 last week, according to a government report on Thursday.



“There already has been a pretty well established succession plan so it’s not a big deal,” said Kyle Cooper, director of commodities research at IAF Advisors in Houston. “Supply has been very stout and demand’s not been what people had expected. It highlights the bearish sentiment in the market.”"



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New Saudi King Seen Allowing Foreigners Into Stocks as Promised - Bloomberg

New Saudi King Seen Allowing Foreigners Into Stocks as Promised - Bloomberg:



"The new Saudi Arabian king’s pledge to maintain the oil-rich nation’s policies is giving money managers confidence that plans to open up the region’s biggest stock market to foreigners won’t be derailed by the royal transition.



Former monarch Abdullah -- who died yesterday at the age of 90 -- helped drive a 26 percent stock rally in the past four years with a $130 billion spending plan to boost non-oil industries. King Salman, his 79-year-old successor, said he will continue the strategy, while a royal decree signaled continuity in oil policy by affirming the minister won’t be replaced as part of the transition.



“King Salman is viewed as being pro-business and part of the reformist camp, which supports our expectation for no material change in policy,” Salah Shamma, co-head of equity asset management at Franklin Templeton Investments Middle East in Dubai, said by e-mail. Plans will be maintained, “most notably job creation and the long-term investment program, and policies to promote growth. We do not expect a change to plans to open up the market,” he said."



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