MIDEAST STOCKS-Middle East joins global equities rally | Reuters:
"Stock markets across the Middle
East rose on Wednesday, moving in line with global equities and
largely ignoring oil prices, which gave up early gains and fell.
Global shares rose on Wednesday, led by an 8 percent surge
in Japanese stocks as the prospect of more economic stimulus
from China soothed investors rattled by recent market turmoil.
Saudi Arabia's stock index jumped 2.3 percent and
most stocks in Riyadh were positive. National Commercial Bank
, the kingdom's top lender, was one of the main
supports, jumping 3.2 percent. Another large lender, Al Rajhi
, climbed 2.6 percent."
'via Blog this'
Wednesday, 9 September 2015
The Gulf’s Castles of Sand | Foreign Policy
The Gulf’s Castles of Sand | Foreign Policy:
"Jeddah’s glittering kilometer-high Kingdom Tower, set for completion in 2018, looms over a Saudi Arabia just beginning to confront the challenge of lower oil prices. The construction of ultra-tall buildings, however, has famously heralded economic crashes in the past: Just five years ago, Dubai’s $1.5 billion Burj Khalifa, the world’s current tallest tower, opened amid the emirate’s financial crisis, part of the worldwide meltdown of property, commodity, and stock prices.
Now Saudi Arabia and its seven Persian Gulf neighbors are hoping history doesn’t repeat itself. Oil prices, above $100 per barrel as recently as June 2014, have plummeted to less than $50 per barrel.
The price drop was a result of rampant U.S. shale oil growth colliding with tepid demand, which was exacerbated this August by the Chinese currency devaluation and stock market crash. With no OPEC consensus on production cuts, Saudi Arabia and its Gulf allies have stumbled into their only strategy — to increase output and try to smoke out their high-cost competitors. Prices may well creep upwards during 2015 and 2016 as shale output declines, but this is counterweighed by slowing Chinese economic growth and its shift to a less energy-intensive track."
'via Blog this'
"Jeddah’s glittering kilometer-high Kingdom Tower, set for completion in 2018, looms over a Saudi Arabia just beginning to confront the challenge of lower oil prices. The construction of ultra-tall buildings, however, has famously heralded economic crashes in the past: Just five years ago, Dubai’s $1.5 billion Burj Khalifa, the world’s current tallest tower, opened amid the emirate’s financial crisis, part of the worldwide meltdown of property, commodity, and stock prices.
Now Saudi Arabia and its seven Persian Gulf neighbors are hoping history doesn’t repeat itself. Oil prices, above $100 per barrel as recently as June 2014, have plummeted to less than $50 per barrel.
The price drop was a result of rampant U.S. shale oil growth colliding with tepid demand, which was exacerbated this August by the Chinese currency devaluation and stock market crash. With no OPEC consensus on production cuts, Saudi Arabia and its Gulf allies have stumbled into their only strategy — to increase output and try to smoke out their high-cost competitors. Prices may well creep upwards during 2015 and 2016 as shale output declines, but this is counterweighed by slowing Chinese economic growth and its shift to a less energy-intensive track."
'via Blog this'
MIDEAST STOCKS-Global rally lifts Egypt, Saudi Arabia | Reuters
MIDEAST STOCKS-Global rally lifts Egypt, Saudi Arabia | Reuters:
"Egypt's stock market rebounded in early trade on Wednesday, supported by a global equities rally, and Saudi Arabia's bourse also rose broadly.
The Cairo index jumped 2.2 percent with most components positive. Heavyweight lender Commercial International Bank rose 2.8 percent.
Egypt's stock market had fallen sharply on Tuesday after the country's agriculture minister was arrested on suspicion of corruption, with the sell-off largely driven by sentiment rather than fundamentals."
'via Blog this'
"Egypt's stock market rebounded in early trade on Wednesday, supported by a global equities rally, and Saudi Arabia's bourse also rose broadly.
The Cairo index jumped 2.2 percent with most components positive. Heavyweight lender Commercial International Bank rose 2.8 percent.
Egypt's stock market had fallen sharply on Tuesday after the country's agriculture minister was arrested on suspicion of corruption, with the sell-off largely driven by sentiment rather than fundamentals."
'via Blog this'
Queen Elizabeth’s investment portfolio - FT.com
Queen Elizabeth’s investment portfolio - FT.com:
"If anyone can afford to take the long view on investment, it’s surely the British monarch. Queen Elizabeth II on Wednesday passes Queen Victoria as the longest-reigning British head of state, after 63 years on the throne.
She’s seen 13 prime ministers, 12 US presidents and the invention of modern portfolio theory.
Her predilection for horseracing is well known. But how’s her investment strategy?"
'via Blog this'
"If anyone can afford to take the long view on investment, it’s surely the British monarch. Queen Elizabeth II on Wednesday passes Queen Victoria as the longest-reigning British head of state, after 63 years on the throne.
She’s seen 13 prime ministers, 12 US presidents and the invention of modern portfolio theory.
Her predilection for horseracing is well known. But how’s her investment strategy?"
'via Blog this'
UAE government to see surplus in budget in 2016, 2017 | GulfNews.com
UAE government to see surplus in budget in 2016, 2017 | GulfNews.com:
"Though the UAE government is expected to face a 2.9 per cent budget deficit in 2015 on the back of lower oil prices, the next year is projected to see a 0.2 per cent [budget] surplus while 2017 will see a 1.5 per cent surplus.
According to a World Bank official, the surplus in the next two years is a result of the government’s amendments and strategies to focus on boosting non-oil sectors.
“We’re not necessarily expecting oil prices to climb back, but governments are starting to adjust to the lower prices by changing their strategies, so we saw the announcement about reducing fuel subsidies in the UAE, which is an excellent policy … Such new strategies will improve the deficit and even result in a budget surplus,” said Hafez Ghanem, the World Bank’s vice president for the Middle East and North Africa region."
'via Blog this'
"Though the UAE government is expected to face a 2.9 per cent budget deficit in 2015 on the back of lower oil prices, the next year is projected to see a 0.2 per cent [budget] surplus while 2017 will see a 1.5 per cent surplus.
According to a World Bank official, the surplus in the next two years is a result of the government’s amendments and strategies to focus on boosting non-oil sectors.
“We’re not necessarily expecting oil prices to climb back, but governments are starting to adjust to the lower prices by changing their strategies, so we saw the announcement about reducing fuel subsidies in the UAE, which is an excellent policy … Such new strategies will improve the deficit and even result in a budget surplus,” said Hafez Ghanem, the World Bank’s vice president for the Middle East and North Africa region."
'via Blog this'
MIDEAST STOCKS-Gulf bourses rise alongside oil, global equities | Reuters
MIDEAST STOCKS-Gulf bourses rise alongside oil, global equities | Reuters:
"Gulf stock markets rose in early trade on Wednesday, tracking oil prices and global shares which rallied hard on Japanese tax cut hopes and a rebound in China.
Japan's Nikkei soared 7.7 percent, its biggest single-day gain since October 2008, apparently galvanized by comments from Prime Minister Shinzo Abe who said the government aimed to lower the corporate tax rate by a cumulative 3.3 percentage points over two years.
MSCI's emerging markets index jumped 2.5 percent and Brent oil edged up towards $50 per barrel."
'via Blog this'
"Gulf stock markets rose in early trade on Wednesday, tracking oil prices and global shares which rallied hard on Japanese tax cut hopes and a rebound in China.
Japan's Nikkei soared 7.7 percent, its biggest single-day gain since October 2008, apparently galvanized by comments from Prime Minister Shinzo Abe who said the government aimed to lower the corporate tax rate by a cumulative 3.3 percentage points over two years.
MSCI's emerging markets index jumped 2.5 percent and Brent oil edged up towards $50 per barrel."
'via Blog this'
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