Mashreqbank CEO Sees U.A.E. Bad Loan Provisions Peaking in 2016 - Bloomberg:
"Bad loan provisions by United Arab Emirates’ banks will peak this year as the industry increasingly works more with businesses to renegotiate terms instead of calling defaults, according to Abdul Aziz Al Ghurair, chairman of the nation’s Banks Federation.
About 7 billion dirhams ($1.9 billion) of loans to companies are being renegotiated under restructuring guidelines outlined by the federation earlier this year in the absence of a bankruptcy law, said Al Ghurair, also chief executive officer of Mashreqbank PSC. Problem loans have slowed “dramatically” in recent months, he said."
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Sunday, 30 October 2016
Dubai Financial Market Q3 net profit drops 22 pct | Reuters
Dubai Financial Market Q3 net profit drops 22 pct | Reuters:
"Dubai Financial Market (DFM), the Gulf's only listed stock exchange, reported a 22 percent fall in third-quarter net profit on Sunday.
* Net profit of 35.4 million dirhams ($9.6 million) in the three months to Sept. 30, down from 45.4 million dirhams a year earlier, it said in a statement.
* During the first nine months of the year, value of trades on DFM was 91.2 billion dirhams, down 31 percent from the same period of last year.
"
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"Dubai Financial Market (DFM), the Gulf's only listed stock exchange, reported a 22 percent fall in third-quarter net profit on Sunday.
* Net profit of 35.4 million dirhams ($9.6 million) in the three months to Sept. 30, down from 45.4 million dirhams a year earlier, it said in a statement.
* During the first nine months of the year, value of trades on DFM was 91.2 billion dirhams, down 31 percent from the same period of last year.
"
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Construction costs tumbling in Saudi Arabia, executive says | Reuters
Construction costs tumbling in Saudi Arabia, executive says | Reuters:
"One of Saudi Arabia's biggest urban development projects is paying as much as 15 percent less towards construction costs as cuts in state spending reduce pressure on supplies of building materials and labor in the kingdom.
Fahd Al Rasheed, group chief executive of Emaar the Economic City (EEC), said construction firms' pricing had become more competitive, leading to a drop in costs of 10 percent to 15 percent per square meter.
"Local production levels for all building materials - as well as imports - were set for a time of boom in contracting," which has caused oversupply, Rasheed said in an interview in Dubai."
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"One of Saudi Arabia's biggest urban development projects is paying as much as 15 percent less towards construction costs as cuts in state spending reduce pressure on supplies of building materials and labor in the kingdom.
Fahd Al Rasheed, group chief executive of Emaar the Economic City (EEC), said construction firms' pricing had become more competitive, leading to a drop in costs of 10 percent to 15 percent per square meter.
"Local production levels for all building materials - as well as imports - were set for a time of boom in contracting," which has caused oversupply, Rasheed said in an interview in Dubai."
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REUTERS SUMMIT-Qatar's Abu Issa Holding to enter Iran retail market in 2017 | Reuters
REUTERS SUMMIT-Qatar's Abu Issa Holding to enter Iran retail market in 2017 | Reuters:
"Abu Issa Holding, one of the largest retail and luxury goods firms in the Middle East, plans to expand into Iran next year and open stores in Tehran selling watches and confectionery as the market opens up after sanctions.
The family-run Qatari firm is an example of a Gulf Arab business that could benefit from the lifting last January of nuclear-related sanctions that largely closed Iran off for years.
Diplomatic tensions between Gulf Arab states and Iran over conflicts in Syria and Yemen are continuing to deter some investors. Another big obstacle to investment is that major international banks remain reluctant to do business with Iran."
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"Abu Issa Holding, one of the largest retail and luxury goods firms in the Middle East, plans to expand into Iran next year and open stores in Tehran selling watches and confectionery as the market opens up after sanctions.
The family-run Qatari firm is an example of a Gulf Arab business that could benefit from the lifting last January of nuclear-related sanctions that largely closed Iran off for years.
Diplomatic tensions between Gulf Arab states and Iran over conflicts in Syria and Yemen are continuing to deter some investors. Another big obstacle to investment is that major international banks remain reluctant to do business with Iran."
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MIDEAST STOCKS-Banks boost Saudi for eighth straight day | Reuters
MIDEAST STOCKS-Banks boost Saudi for eighth straight day | Reuters:
"Strong banking shares boosted Saudi Arabia's stock market for an eighth straight day on Sunday but the rest of the region was sluggish in response to soft oil prices and global bourses, while Qatari equities fell sharply.
Saudi banks have been rallying since Riyadh's mammoth international bond sale this month partly eased worries about the government's access to finance and its ability to cope with an era of low oil prices.
The Saudi stock index climbed 0.7 percent in active trade on Sunday, bringing its gains since the rally began to 9.5 percent - although it is still 10.8 percent below its July peak."
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"Strong banking shares boosted Saudi Arabia's stock market for an eighth straight day on Sunday but the rest of the region was sluggish in response to soft oil prices and global bourses, while Qatari equities fell sharply.
Saudi banks have been rallying since Riyadh's mammoth international bond sale this month partly eased worries about the government's access to finance and its ability to cope with an era of low oil prices.
The Saudi stock index climbed 0.7 percent in active trade on Sunday, bringing its gains since the rally began to 9.5 percent - although it is still 10.8 percent below its July peak."
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Saudi Stocks Extend Winning Streak as Cash Crunch Concern Eases - Bloomberg
Saudi Stocks Extend Winning Streak as Cash Crunch Concern Eases - Bloomberg:
"Saudi Arabian stocks rose the most among Gulf equities, poised to extend their longest winning streak in more than two years on investor optimism the outlook for the kingdom’s banks is improving.
Four of the five biggest contributors to an increase in the Tadawul All Share Index were lenders, as the main gauge added 0.7 percent at 1:15 p.m. in Riyadh. The measure has increased 9.5 percent in eight days, the longest string of gains since 2014, as Saudi Arabia sold the largest international sovereign bond in emerging-market history and said it would boost payments to contractors."
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"Saudi Arabian stocks rose the most among Gulf equities, poised to extend their longest winning streak in more than two years on investor optimism the outlook for the kingdom’s banks is improving.
Four of the five biggest contributors to an increase in the Tadawul All Share Index were lenders, as the main gauge added 0.7 percent at 1:15 p.m. in Riyadh. The measure has increased 9.5 percent in eight days, the longest string of gains since 2014, as Saudi Arabia sold the largest international sovereign bond in emerging-market history and said it would boost payments to contractors."
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Opec impasse prevents oil production deal in Vienna | The National
Opec impasse prevents oil production deal in Vienna | The National:
"Opec’s internal disagreements over how to implement oil-supply cuts agreed on last month prevented a deal to secure the cooperation of other major suppliers.
More than 18 hours of talks over two days in Vienna yielded little more than a promise that the world’s largest oil producers would keep on talking. Discussions will continue in late November, just days before the producer group is supposed to finalise the accord that lifted oil prices to one-year highs.
Non-Opec nations ended talks with the group on Saturday without making any supply commitments, Brazil’s oil and gas secretary Marcio Felix said after the meeting. The outcome of the process hinges on Iran and Iraq, two nations that are more interested in increasing production than reducing it, said Azerbaijan’s energy minister Natiq Aliyev."
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"Opec’s internal disagreements over how to implement oil-supply cuts agreed on last month prevented a deal to secure the cooperation of other major suppliers.
More than 18 hours of talks over two days in Vienna yielded little more than a promise that the world’s largest oil producers would keep on talking. Discussions will continue in late November, just days before the producer group is supposed to finalise the accord that lifted oil prices to one-year highs.
Non-Opec nations ended talks with the group on Saturday without making any supply commitments, Brazil’s oil and gas secretary Marcio Felix said after the meeting. The outcome of the process hinges on Iran and Iraq, two nations that are more interested in increasing production than reducing it, said Azerbaijan’s energy minister Natiq Aliyev."
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Saudi banks face growing challenges from contracting and construction sector | GulfNews.com
Saudi banks face growing challenges from contracting and construction sector | GulfNews.com:
"Saudi banks faced with shrinking liquidity, rising cost of funds and pressure on profitability are expected to face deterioration in asset quality, according to banking sector analysts.
Rising challenges in the Saudi construction sector is expected to result in a spike in non-performing loans (NPLs) and higher provisioning costs for the country’s banks, according to rating agencies.
“The Saudi construction sector has been negatively affected over the last two years by slowing economic activity and fiscal consolidation measures, stemming from a lower oil prices environment. We expect the pressures to continue as the Saudi government aims to reduce its large fiscal deficit,” said Olivier Panis, a Vice President — Senior Credit Officer, at Moody’s.
"
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"Saudi banks faced with shrinking liquidity, rising cost of funds and pressure on profitability are expected to face deterioration in asset quality, according to banking sector analysts.
Rising challenges in the Saudi construction sector is expected to result in a spike in non-performing loans (NPLs) and higher provisioning costs for the country’s banks, according to rating agencies.
“The Saudi construction sector has been negatively affected over the last two years by slowing economic activity and fiscal consolidation measures, stemming from a lower oil prices environment. We expect the pressures to continue as the Saudi government aims to reduce its large fiscal deficit,” said Olivier Panis, a Vice President — Senior Credit Officer, at Moody’s.
"
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MIDEAST STOCKS-Gulf markets consolidate but Saudi banks continue rebound | Reuters
MIDEAST STOCKS-Gulf markets consolidate but Saudi banks continue rebound | Reuters:
"Gulf stock markets consolidated in early trade on Sunday because of a lack of positive factors and sluggish global bourses, but Saudi Arabian banks continued to rally.
Saudi Arabia's index edged up 0.3 percent in the first 30 minutes as banks, which have led the market up for seven straight days in response to Riyadh's mammoth international bond sale, gained 0.6 percent.
The biggest lender, National Commercial Bank, surged 3.2 percent. Late on Thursday, the central bank announced fresh steps to ease a liquidity crunch caused by low oil prices, lowering the maximum volume for its Treasury bill issues and introducing a new 90-day repurchase instrument to inject funds into the money market when needed."
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"Gulf stock markets consolidated in early trade on Sunday because of a lack of positive factors and sluggish global bourses, but Saudi Arabian banks continued to rally.
Saudi Arabia's index edged up 0.3 percent in the first 30 minutes as banks, which have led the market up for seven straight days in response to Riyadh's mammoth international bond sale, gained 0.6 percent.
The biggest lender, National Commercial Bank, surged 3.2 percent. Late on Thursday, the central bank announced fresh steps to ease a liquidity crunch caused by low oil prices, lowering the maximum volume for its Treasury bill issues and introducing a new 90-day repurchase instrument to inject funds into the money market when needed."
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