ADDED report: Oil price slump likely to continue | GulfNews.com:
"The slump in oil prices that began in mid-2014 is likely to continue in the foreseeable future, with oil prices expected to be challenged in the short-term by an increased supply from fracking (the process by which oil and gas are extracted from shale rocks).
According to the latest report by Abu Dhabi’s Department of Economic Development (ADDED) that was released Tuesday, oil prices will also be challenged in the longer term through efficiency gains from solar and battery technology.
“On the supply side, rising unconventional oil production enabled by new technologies and increasing production of biofuels have contributed to excess resources. On the demand side, China’s slowing economic growth has meant a double-digit decline in its import commodity growth. These underlying dynamics mean the slump is likely to continue in the foreseeable future,” the report said.
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Tuesday, 20 December 2016
Deal-making to drive 2017 Middle Eastern banking fee fest | Reuters
Deal-making to drive 2017 Middle Eastern banking fee fest | Reuters:
"A Middle Eastern investment banking fee bonanza should extend into 2017, spurred by a combination of bond and share sales and mergers and acquisitions as the region adjusts to lower oil prices, bankers say.
Deals such as Saudi Arabia's $17.5 billion debut international sovereign issue and the sale of a majority stake in retailer Kuwait Food Co (FOOD.KW) (Americana) to Gulf-based Adeptio have helped banks' earnings, off-setting falls in other regions due to economic uncertainty and volatile markets.
Fees from the Middle East reached $581 million during the first nine months of 2016, an 11 percent rise compared to the same period in 2015, according to Thomson Reuters data, while global fees for these services fell 11 percent to $60.9 billion."
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"A Middle Eastern investment banking fee bonanza should extend into 2017, spurred by a combination of bond and share sales and mergers and acquisitions as the region adjusts to lower oil prices, bankers say.
Deals such as Saudi Arabia's $17.5 billion debut international sovereign issue and the sale of a majority stake in retailer Kuwait Food Co (FOOD.KW) (Americana) to Gulf-based Adeptio have helped banks' earnings, off-setting falls in other regions due to economic uncertainty and volatile markets.
Fees from the Middle East reached $581 million during the first nine months of 2016, an 11 percent rise compared to the same period in 2015, according to Thomson Reuters data, while global fees for these services fell 11 percent to $60.9 billion."
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Exclusive: Financing hitches could delay Hapag Lloyd, UASC shipping tie-up - sources | Reuters
Exclusive: Financing hitches could delay Hapag Lloyd, UASC shipping tie-up - sources | Reuters:
"A merger of German container shipping line Hapag-Lloyd (HLAG.DE) and United Arab Shipping Company (UASC) is likely to take months to complete, partly due to financing issues blamed on a deep industry downturn, sources familiar with the deal say.
Hapag-Lloyd signed a binding agreement with UASC in July to form the world's fifth-largest line, valued at about 7 to 8 billion euros ($7.2-$8.3 billion), by the end of 2016.
But three sources told Reuters that timeline is being held up, partly because some banks want to pull out of loans, particularly to UASC, due to the sector crisis. One source said the sum totaled at least $500 million and could be as much as $900 million."
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"A merger of German container shipping line Hapag-Lloyd (HLAG.DE) and United Arab Shipping Company (UASC) is likely to take months to complete, partly due to financing issues blamed on a deep industry downturn, sources familiar with the deal say.
Hapag-Lloyd signed a binding agreement with UASC in July to form the world's fifth-largest line, valued at about 7 to 8 billion euros ($7.2-$8.3 billion), by the end of 2016.
But three sources told Reuters that timeline is being held up, partly because some banks want to pull out of loans, particularly to UASC, due to the sector crisis. One source said the sum totaled at least $500 million and could be as much as $900 million."
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MIDEAST STOCKS-Egypt hits record high, Qatar buoyed by $44 bln bank merger plan | Reuters
MIDEAST STOCKS-Egypt hits record high, Qatar buoyed by $44 bln bank merger plan | Reuters:
"Egypt's blue chip stock index surged to a record high on Tuesday while Qatar's market was supported by a potential $44 billion bank merger but other major Gulf bourses were dampened by profit- taking.
Cairo's index jumped 3.4 percent to 12,148 points, exceeding its previous all-time high of 12,039 points reached in April 2008. The index is up 6.6 percent over the last two days and up a spectacular 73.4 percent since the start of the year.
Shares favoured by foreign funds were the top performers, with Global Telecom Holding leaping 12.9 percent. The broader EGX100 index rose 1.0 percent."
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"Egypt's blue chip stock index surged to a record high on Tuesday while Qatar's market was supported by a potential $44 billion bank merger but other major Gulf bourses were dampened by profit- taking.
Cairo's index jumped 3.4 percent to 12,148 points, exceeding its previous all-time high of 12,039 points reached in April 2008. The index is up 6.6 percent over the last two days and up a spectacular 73.4 percent since the start of the year.
Shares favoured by foreign funds were the top performers, with Global Telecom Holding leaping 12.9 percent. The broader EGX100 index rose 1.0 percent."
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Gulf airline giants face job cuts as growth slows | Reuters
Gulf airline giants face job cuts as growth slows | Reuters:
"Emirates [EMIRA.UL], the world's biggest long-haul airline, and Abu Dhabi's Etihad Airways are reviewing their workforce as overcapacity and a stronger dollar put pressure on earnings.
The cutbacks show how the Gulf airlines' rapid expansion of the past few years is slowing down against a more challenging economic backdrop.
Dubai-based Emirates has offered redundancies to staff working in accounting, finance, IT and other departments in its head-office, sources familiar with the matter told Reuters. The airline did not immediately respond to requests for comment."
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"Emirates [EMIRA.UL], the world's biggest long-haul airline, and Abu Dhabi's Etihad Airways are reviewing their workforce as overcapacity and a stronger dollar put pressure on earnings.
The cutbacks show how the Gulf airlines' rapid expansion of the past few years is slowing down against a more challenging economic backdrop.
Dubai-based Emirates has offered redundancies to staff working in accounting, finance, IT and other departments in its head-office, sources familiar with the matter told Reuters. The airline did not immediately respond to requests for comment."
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Exclusive: Qatari bank trio in talks for potential $44 billion merger | Reuters
Exclusive: Qatari bank trio in talks for potential $44 billion merger | Reuters:
"Qatari banks Masraf Al Rayan MARK.QA, Barwa Bank IPO.BABK.QA and International Bank of Qatar have begun initial talks for a potential merger, the banks said on Monday, in a deal that would create the Gulf state's second-largest bank.
If the deal goes ahead, it would be a rare example of consolidation among banks in the Gulf, which have previously been reluctant to tie up but are facing challenging conditions due to the impact of lower oil prices on the region's economies.
The trio have begun initial discussions "to create a larger and stronger financial institution with a solid financial position and liquidity to support Qatar’s economic growth", according to a joint statement from the three banks sent to Reuters."
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"Qatari banks Masraf Al Rayan MARK.QA, Barwa Bank IPO.BABK.QA and International Bank of Qatar have begun initial talks for a potential merger, the banks said on Monday, in a deal that would create the Gulf state's second-largest bank.
If the deal goes ahead, it would be a rare example of consolidation among banks in the Gulf, which have previously been reluctant to tie up but are facing challenging conditions due to the impact of lower oil prices on the region's economies.
The trio have begun initial discussions "to create a larger and stronger financial institution with a solid financial position and liquidity to support Qatar’s economic growth", according to a joint statement from the three banks sent to Reuters."
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MIDEAST STOCKS-Qatar supported by $44 bln bank merger plan; other markets dip | Reuters
MIDEAST STOCKS-Qatar supported by $44 bln bank merger plan; other markets dip | Reuters:
"Banking shares in Qatar made strong gains on Tuesday morning after three Qatari banks said they were in talks on a potential $44 billion merger, but other markets in the Gulf retreated on profit-taking.
Masraf Al Rayan jumped 4.4 percent after the Islamic lender announced it was in initial talks with Barwa Bank IPO-BABK.QA and privately listed International Bank of Qatar to merge, in a deal that would create the second largest bank in Doha.
The possible consolidation spurred interest in other lenders, with the largest bank by assets, Qatar National Bank , adding 1.8 percent. The main Qatar equities index was up 0.4 percent."
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"Banking shares in Qatar made strong gains on Tuesday morning after three Qatari banks said they were in talks on a potential $44 billion merger, but other markets in the Gulf retreated on profit-taking.
Masraf Al Rayan jumped 4.4 percent after the Islamic lender announced it was in initial talks with Barwa Bank IPO-BABK.QA and privately listed International Bank of Qatar to merge, in a deal that would create the second largest bank in Doha.
The possible consolidation spurred interest in other lenders, with the largest bank by assets, Qatar National Bank , adding 1.8 percent. The main Qatar equities index was up 0.4 percent."
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