Qatar riyal trading falls dramatically amid GCC dispute, say traders | The National:
"Trading in Qatar’s riyal in the UAE has dropped significantly since the GCC dispute erupted earlier this month, according to foreign exchange dealers. While most of the big exchange houses in the UAE continue to have the capacity to deal in the Qatari riyal some of the smaller companies have stopped as the volumes traded do not make it worth their while, a source said. "The flow has gone down substantially," said an executive at a UAE foreign exchange house who did not want to be named. "We expect trade in the Qatari riyal to remain subdued.""
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Wednesday, 28 June 2017
The mysterious (and continuing) fall in Saudi foreign reserves | GulfNews.com
The mysterious (and continuing) fall in Saudi foreign reserves | GulfNews.com:
"Net foreign assets at Saudi Arabia’s central bank, a measure of its ability to support its currency, look set to fall sharply this year as oil prices slump and Riyadh expands its sovereign wealth fund to invest abroad. They shrank from a record high of $737 billion (Dh2.71 trillion) in August 2014 to $529 billion at the end of 2016 as the government liquidated some assets to cover the huge budget deficit caused by the fall in oil prices. This year, an austerity drive and a partial rebound in oil prices have helped Riyadh make progress in cutting the deficit — which narrowed 71 per cent from a year ago to 26 billion riyals ($6.9 billion) in the first quarter."
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"Net foreign assets at Saudi Arabia’s central bank, a measure of its ability to support its currency, look set to fall sharply this year as oil prices slump and Riyadh expands its sovereign wealth fund to invest abroad. They shrank from a record high of $737 billion (Dh2.71 trillion) in August 2014 to $529 billion at the end of 2016 as the government liquidated some assets to cover the huge budget deficit caused by the fall in oil prices. This year, an austerity drive and a partial rebound in oil prices have helped Riyadh make progress in cutting the deficit — which narrowed 71 per cent from a year ago to 26 billion riyals ($6.9 billion) in the first quarter."
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MIDEAST STOCKS-Dubai underperforms, Egypt's TMGH jumps on appointment of CEO | Reuters
MIDEAST STOCKS-Dubai underperforms, Egypt's TMGH jumps on appointment of CEO | Reuters:
"Stocks prone to speculative trade dragged Dubai's equity index down on Wednesday while Egypt's blue chip developer Talaat Mostafa outperformed on news its former chairman has been pardoned and named chief executive. Dubai's index fell 0.7 percent in the lowest daily volume in one year. Shares of builder Arabtec dropped 8.5 percent; on Wednesday the company said it has raised 1.5 billion dirhams in equity as part of its recapitalisation programme and "extinguished the company’s accumulated losses of AED 4.6 billion as at December 31 2016"."
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"Stocks prone to speculative trade dragged Dubai's equity index down on Wednesday while Egypt's blue chip developer Talaat Mostafa outperformed on news its former chairman has been pardoned and named chief executive. Dubai's index fell 0.7 percent in the lowest daily volume in one year. Shares of builder Arabtec dropped 8.5 percent; on Wednesday the company said it has raised 1.5 billion dirhams in equity as part of its recapitalisation programme and "extinguished the company’s accumulated losses of AED 4.6 billion as at December 31 2016"."
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Arabtec share prices plunge 9% after capital reduction | GulfNews.com
Arabtec share prices plunge 9% after capital reduction | GulfNews.com:
"Arabtec share prices dropped as much as 9 per cent on Wednesday in the first few hours of trade as the company announced it has completed its recapitalisation programme, which involved a rights issue and capital reduction. Arabtec’s shares were among the most actively traded on the Dubai Financial Market (DFM) on the first day of trade this week after the three-day Eid Al Fitr holiday. The sell-off on Wednesday comes just after Arabtec slashed its capital by Dh4.6 billion to extinguish accumulated losses, thereby also cutting 4.6 billion shares off the bourse. "
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"Arabtec share prices dropped as much as 9 per cent on Wednesday in the first few hours of trade as the company announced it has completed its recapitalisation programme, which involved a rights issue and capital reduction. Arabtec’s shares were among the most actively traded on the Dubai Financial Market (DFM) on the first day of trade this week after the three-day Eid Al Fitr holiday. The sell-off on Wednesday comes just after Arabtec slashed its capital by Dh4.6 billion to extinguish accumulated losses, thereby also cutting 4.6 billion shares off the bourse. "
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Why Investors Shy Away From Saudi Arabia - Bloomberg
Why Investors Shy Away From Saudi Arabia - Bloomberg:
"As oil prices have slumped into the low $40s per barrel, a new economic model that would offset the losses for the Organization of Petroleum Exporting Countries is more urgent than ever, yet multiple Middle Eastern conflicts are making that tougher to achieve. It's clear that oil, gas, refining and petrochemicals alone cannot provide the jobs and diversification that the Middle East needs.
Put simply, a continual stream of bad news and threatened disruptions to business deters new investors, especially those from far away who lack the know-how to pick their way through local complexities. The scale of the challenge is stark, even for Saudi Arabia. "
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"As oil prices have slumped into the low $40s per barrel, a new economic model that would offset the losses for the Organization of Petroleum Exporting Countries is more urgent than ever, yet multiple Middle Eastern conflicts are making that tougher to achieve. It's clear that oil, gas, refining and petrochemicals alone cannot provide the jobs and diversification that the Middle East needs.
Put simply, a continual stream of bad news and threatened disruptions to business deters new investors, especially those from far away who lack the know-how to pick their way through local complexities. The scale of the challenge is stark, even for Saudi Arabia. "
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Saudi CDS hits 5-1/2-month high as spat with Qatar rumbles on | Reuters
Saudi CDS hits 5-1/2-month high as spat with Qatar rumbles on | Reuters:
"The cost of insuring exposure to Saudi Arabian debt rose on Wednesday to the highest level since January as the diplomatic crisis in the Gulf rumbled on. Qatari debt insurance costs also rose while its 2026 sovereign dollar bond slipped to a five-and-a-half month low. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt imposed a boycott on Qatar three weeks ago, accusing it of backing militants, then issued an ultimatum, including demands it shut down a Turkish military base in Doha, shutting the Al Jazeera TV channel and curbing ties with Iran."
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"The cost of insuring exposure to Saudi Arabian debt rose on Wednesday to the highest level since January as the diplomatic crisis in the Gulf rumbled on. Qatari debt insurance costs also rose while its 2026 sovereign dollar bond slipped to a five-and-a-half month low. Saudi Arabia, the United Arab Emirates, Bahrain and Egypt imposed a boycott on Qatar three weeks ago, accusing it of backing militants, then issued an ultimatum, including demands it shut down a Turkish military base in Doha, shutting the Al Jazeera TV channel and curbing ties with Iran."
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OPEC Not In A Hurry To Cut Deeper | OilPrice.com
OPEC Not In A Hurry To Cut Deeper | OilPrice.com:
"OPEC may be mulling over deeper oil production cuts, but they won’t be rushing to make that decision, even though a panel monitoring the cuts will be meeting next month, Reuters reported on Tuesday, citing OPEC delegates and sources familiar with the cartel’s thinking.
Russia is hosting a meeting of five oil ministers from countries supervising the production cut, plus Saudi Arabia in its capacity of OPEC president, on July 24. Although the officials could discuss options to prop up prices and draw down inventories, which may include levying production cuts on currently exempt Libya and Nigeria, OPEC sources do not believe that an outright deeper production cut will be considered soon.
“I doubt it will be considered soon,” one OPEC delegate told Reuters—a comment that leaves room for OPEC to exceed rather than just meet expectations, which was a problem the last go around when OPEC failed to meet the market expectations of cutting deeper."
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"OPEC may be mulling over deeper oil production cuts, but they won’t be rushing to make that decision, even though a panel monitoring the cuts will be meeting next month, Reuters reported on Tuesday, citing OPEC delegates and sources familiar with the cartel’s thinking.
Russia is hosting a meeting of five oil ministers from countries supervising the production cut, plus Saudi Arabia in its capacity of OPEC president, on July 24. Although the officials could discuss options to prop up prices and draw down inventories, which may include levying production cuts on currently exempt Libya and Nigeria, OPEC sources do not believe that an outright deeper production cut will be considered soon.
“I doubt it will be considered soon,” one OPEC delegate told Reuters—a comment that leaves room for OPEC to exceed rather than just meet expectations, which was a problem the last go around when OPEC failed to meet the market expectations of cutting deeper."
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MIDEAST STOCKS-GFH helps lift Dubai slightly higher in otherwise quiet region | Reuters
MIDEAST STOCKS-GFH helps lift Dubai slightly higher in otherwise quiet region | Reuters:
"Shares often traded by short-term speculative investors helped take Dubai's stock index slightly higher in early trade on Wednesday in an otherwise quiet region, with some major Gulf markets still on Eid al-Fitr holidays. The Dubai index was up 0.3 percent as GFH Financial , the most heavily traded stock, climbed 4.6 percent on news that it had agreed to exit part of its real estate portfolio, which it said had an "approximate value" of $55 million. The book value of the asset is $20 million. Builder Drake & Scull was up 1.1 percent but insurer Islamic Arab Insurance dropped 4.1 percent."
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"Shares often traded by short-term speculative investors helped take Dubai's stock index slightly higher in early trade on Wednesday in an otherwise quiet region, with some major Gulf markets still on Eid al-Fitr holidays. The Dubai index was up 0.3 percent as GFH Financial , the most heavily traded stock, climbed 4.6 percent on news that it had agreed to exit part of its real estate portfolio, which it said had an "approximate value" of $55 million. The book value of the asset is $20 million. Builder Drake & Scull was up 1.1 percent but insurer Islamic Arab Insurance dropped 4.1 percent."
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Saudi Aramco called on to improve data disclosure ahead of IPO
Saudi Aramco called on to improve data disclosure ahead of IPO:
"A leading governance body has called on Saudi Aramco to disclose closely-held data ahead of its planned 2018 initial public offering, after its new research ranked the kingdom among the world’s most opaque oil-producing nations. The Natural Resource Governance Institute, a non-profit policy group, analysed 74 state-owned enterprises operating in extractive industries as part of a broader assessment into how countries manage their oil, gas and minerals sectors. The world’s biggest copper miner, Codelco of Chile, was ranked the best with a score of 90 out of 100. But Saudi Arabia’s state energy giant, the world’s largest oil producer which pumps roughly one in every nine barrels of crude globally, came in 64th place out of 74 with just 27 points."
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"A leading governance body has called on Saudi Aramco to disclose closely-held data ahead of its planned 2018 initial public offering, after its new research ranked the kingdom among the world’s most opaque oil-producing nations. The Natural Resource Governance Institute, a non-profit policy group, analysed 74 state-owned enterprises operating in extractive industries as part of a broader assessment into how countries manage their oil, gas and minerals sectors. The world’s biggest copper miner, Codelco of Chile, was ranked the best with a score of 90 out of 100. But Saudi Arabia’s state energy giant, the world’s largest oil producer which pumps roughly one in every nine barrels of crude globally, came in 64th place out of 74 with just 27 points."
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