Monday 4 April 2016

Saudi Arabia adapting to new economic realities | The National

Saudi Arabia adapting to new economic realities | The National:

"The first details of Saudi Arabia’s long-mooted economic plan to cope with this era of low oil prices have been described by Prince Mohammed bin Salman, the country’s deputy crown prince.

Speaking in an interview with Bloomberg, he said that the kingdom plans to raise US$100 billion per year in new revenues by 2020 through a combination of levies and subsidy reforms.

The economic reform measures include:"



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Developer-investors snap up Dubai’s delayed projects | GulfNews.com

Developer-investors snap up Dubai’s delayed projects | GulfNews.com:

"Investors seeking better-than-average yields are, once again, starting to line up behind delayed or distressed projects in Dubai.

“It happened in 2010-11 when there were a lot of such projects,” said Balaji Parthasarathy, director at Radiant Star, a recently created investment arm that has to date raised Dh150 million for local projects. “New investors could came into and revive — there are similar opportunities available now.”

“But there are differences in investor preferences between then and now. In 2010-11, the motivating factor was whether a project had attained a 70-80 per cent off-plan before it ran into problems. Location was secondary in their preferences."



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Saudi Arabia and Iran's Oil Production Proxy War - Bloomberg

Saudi Arabia and Iran's Oil Production Proxy War - Bloomberg:

"Angus Blair, chairman at Signet Institute, talks about the relationship between Saudi Arabia and Iran and optimism for the Saudi Aramco IPO. He speaks on "Bloomberg Surveillance." (Source: Bloomberg)"



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MIDEAST STOCKS-Most of Gulf gains despite weaker oil; Egypt recovers | Reuters

MIDEAST STOCKS-Most of Gulf gains despite weaker oil; Egypt recovers | Reuters:

"Investors in most Gulf stock markets shrugged off further losses in oil prices on Monday, while foreign buyers helped to lift Egypt's bourse.

Riyadh's index recouped most of the previous day's drop and rose 1.4 percent, as local retail investors bought back speculative stocks that they had dumped on Sunday. The insurance sub index jumped 2.3 percent after tumbling 3.5 percent on the previous day.

The petrochemical sector also rebounded, adding 1.5 percent as Saudi Basic Industries, the largest listed petrochemical producer, added 2.0 percent."



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Europe’s banks begin tentative return to Iran - FT.com

Europe’s banks begin tentative return to Iran - FT.com:

"European banks are tentatively re-engaging with Iran as the Middle East’s second-largest economy slowly emerges from a sanctions regime that has kept it in the financial wilderness for years.
Belgium’s KBC, Germany’s DZ Bank both confirmed when contacted by the Financial Times that they have started handling transactions on behalf of European clients doing business in Iran. Austria’s Erste Bank is preparing to do so."



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S&P takes rare step to explain Saudi banking downgrades | The National

S&P takes rare step to explain Saudi banking downgrades | The National:

"Standard & Poor’s has defended its credit downgrades of five of Saudi Arabia’s biggest banks, saying that more than a year-and-a-half of lower oil prices will start to take its toll on the earnings of lenders.

The agency yesterday took the rare step of explaining the move after Saudi Arabia, the world’s biggest oil producer, criticised S&P in October following a downgrade of the kingdom’s long-term rating.

“We expect credit conditions for Saudi banks will deteriorate through a correction cycle, leading to increased non-performing loans and credit losses, as well as a decline in profitability," wrote the analysts, led by Suha Urgan in Dubai."



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The Impact of Low Oil Prices on the Russian Economy - Bloomberg

The Impact of Low Oil Prices on the Russian Economy - Bloomberg:

"Andrey Kostin, chief executive officer at VTB Bank, discusses the impact of low oil prices on Russia and how the country’s economy is adjusting. He speaks with Hans Nichols and Guy Johnson on Bloomberg Television’s “On The Move.” "



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Shareholders of UAE Exchange and Travelex secure $890 mln loan - statement | Reuters

Shareholders of UAE Exchange and Travelex secure $890 mln loan - statement | Reuters:

"The majority shareholders of UAE Exchange and Travelex have closed a $890 million loan that will be used to support the two foreign exchange companies' growth plans, according to a statement on Monday.

The loan, which can be increased by an additional $75 million at the request of the shareholders, will also be used to refinance an existing bridge facility that was used to acquire Travelex in 2015, the statement said.

Centurion Investments, which is part of Abu Dhabi-based KBBO Group, and Indian-born billionaire Bavaguthu Raghuram Shetty, completed a deal to buy Travelex in January 2015 for 800 million pounds ($1.14 billion). The pair are now the majority shareholders in UAE Exchange and Travelex."



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MIDEAST STOCKS-Saudi up despite lower oil, Egypt edges lower | Reuters

MIDEAST STOCKS-Saudi up despite lower oil, Egypt edges lower | Reuters:

"Investors in Saudi Arabia's stock market shrugged off further losses in oil prices in early trade on Monday, while Egypt's bourse edged lower.

Riyadh's index recouped most of the prior session's losses in the first 75 minutes of trade, as local retail investors bought back speculative stocks which were dumped on Sunday. The insurance sub index jumped 2.2 percent after tumbling 3.5 percent on Sunday.

Almarai, the largest dairy producer in the Gulf, added 0.5 percent. The company said shareholders had approved a capital increase for the company through an issue of bonus shares."



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MIDEAST STOCKS-Dubai edges higher as other Gulf markets decline | Reuters

MIDEAST STOCKS-Dubai edges higher as other Gulf markets decline | Reuters:

"Dubai's stock market edged higher in early trade on Monday while other Gulf bourses weakened after oil prices slipped further below $39 a barrel.

The Dubai index added 0.3 percent, with most volume concentrated in small and mid-cap shares. Bahrain-based Islamic investment company GFH Financial added 1.7 percent and was the most heavily traded stock while builder Arabtec gained 0.6 percent.

Blue-chip companies have been largely dormant for several weeks as local speculative traders continue to steer markets."



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