Dubai should get a grip on Abraaj before somebody else does | Arab News:
"The unfolding events at Abraaj Group are taking on an air of fiasco. Not a week passes, it seems, without another high-profile executive departure from the Middle East’s biggest private equity investor, or another allegation of misuse of funds, or another investigation into the firm’s practices.
It is becoming a drip-feed of bad news that now threatens much more than the firm itself, or the position of its founder and chief executive, Arif Naqvi.
To understand how damaging it is — actually and potentially — you have to understand the unique position Abraaj occupies in Dubai, and in the Gulf’s financial services sector. Since 2002, when Naqvi launched the firm in Dubai, it has become the regional champion in private equity, showing the slick money managers of New York and London that the Middle East could match them."
'via Blog this'
Thursday, 31 May 2018
‘Qatar economy weathering year-old blockade’
‘Qatar economy weathering year-old blockade’:
"Qatar’s economy has managed to weather the diplomatic and trade boycott by four Arab nations thanks to a solid financial buffer and sound macroeconomic policies, the International Monetary Fund has said.
“Growth performance remains resilient,” the IMF said in a May 30 report, nearly a full year after the sanctions went into effect. “The direct economic and financial impact of the diplomatic rift between Qatar and some countries in the region has been manageable.”
On June 5 last year, Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic and transport links with Qatar. Mediation efforts by Kuwait and others have failed to resolve the dispute."
'via Blog this'
"Qatar’s economy has managed to weather the diplomatic and trade boycott by four Arab nations thanks to a solid financial buffer and sound macroeconomic policies, the International Monetary Fund has said.
“Growth performance remains resilient,” the IMF said in a May 30 report, nearly a full year after the sanctions went into effect. “The direct economic and financial impact of the diplomatic rift between Qatar and some countries in the region has been manageable.”
On June 5 last year, Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic and transport links with Qatar. Mediation efforts by Kuwait and others have failed to resolve the dispute."
'via Blog this'
Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg
Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg:
"Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.
The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.
A spokeswoman for Abraaj said discussions for the sale of the fund-management business “are at an advanced stage,” without disclosing the identity of the potential suitors or commenting specifically about Colony NorthStar. Representatives for Colony NorthStar and Cerberus declined to comment."
'via Blog this'
"Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.
The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.
A spokeswoman for Abraaj said discussions for the sale of the fund-management business “are at an advanced stage,” without disclosing the identity of the potential suitors or commenting specifically about Colony NorthStar. Representatives for Colony NorthStar and Cerberus declined to comment."
'via Blog this'
What Do Steel Tariffs Have to Do With Iran? Plenty - Bloomberg
What Do Steel Tariffs Have to Do With Iran? Plenty - Bloomberg:
"Europe’s temporary waiver from U.S. import quotas on steel and aluminum is about to expire, and most experts are pessimistic that a U.S.-EU trade war can be avoided. They can’t fathom a trade deal that would satisfy both U.S. President Donald Trump and European Union leaders — at least not a conventional trade deal.
But a conventional trade deal does not seem to be what the Trump White House really has in mind. Instead, it wants to exchange trade peace for foreign and security policy concessions. That’s a novel — and potentially fraught — way for an American president to do business with his closest allies. But in the short term, it might deliver some results that Trump can use to declare victory.
Trump’s hope seems to be that the threat of tariffs gives him leverage to get the cooperation he wants on European defense spending and sanctions on Iran. U.S. Treasury Secretary Steven Mnuchin recently told CNBC, the U.S. cable news network, that President Trump would factor military contributions to NATO into the application of a 25 percent tax on imported steel and 10 percent on aluminum. "
'via Blog this'
"Europe’s temporary waiver from U.S. import quotas on steel and aluminum is about to expire, and most experts are pessimistic that a U.S.-EU trade war can be avoided. They can’t fathom a trade deal that would satisfy both U.S. President Donald Trump and European Union leaders — at least not a conventional trade deal.
But a conventional trade deal does not seem to be what the Trump White House really has in mind. Instead, it wants to exchange trade peace for foreign and security policy concessions. That’s a novel — and potentially fraught — way for an American president to do business with his closest allies. But in the short term, it might deliver some results that Trump can use to declare victory.
Trump’s hope seems to be that the threat of tariffs gives him leverage to get the cooperation he wants on European defense spending and sanctions on Iran. U.S. Treasury Secretary Steven Mnuchin recently told CNBC, the U.S. cable news network, that President Trump would factor military contributions to NATO into the application of a 25 percent tax on imported steel and 10 percent on aluminum. "
'via Blog this'
Oman's electricity firm seeks advisers for $1.2 bln financing -sources | Reuters
Oman's electricity firm seeks advisers for $1.2 bln financing -sources | Reuters:
"Oman’s state-owned Electricity Holding Co. has approached banks to advise it on a capital expenditure programme worth around $1.2 billion, banking sources said on Thursday.
This would be the latest Omani foray in the international debt markets and another sign of a growing reliance on external funding after its finances were hit by a slump in oil prices.
The state company, known as Nama Holding, has sent a request for proposal to banks this week for what would be the third and final phase of a borrowing programme worth almost $6 billion, the sources said."
'via Blog this'
"Oman’s state-owned Electricity Holding Co. has approached banks to advise it on a capital expenditure programme worth around $1.2 billion, banking sources said on Thursday.
This would be the latest Omani foray in the international debt markets and another sign of a growing reliance on external funding after its finances were hit by a slump in oil prices.
The state company, known as Nama Holding, has sent a request for proposal to banks this week for what would be the third and final phase of a borrowing programme worth almost $6 billion, the sources said."
'via Blog this'
Etihad seeks funding for more than $1 billion in Boeing deliveries: sources | Reuters
Etihad seeks funding for more than $1 billion in Boeing deliveries: sources | Reuters:
"Abu Dhabi’s Etihad Airways is seeking to raise debt to help finance upcoming deliveries of Boeing (BA.N) aircraft on order worth more than $1 billion, banking sources familiar with the matter said.
The state carrier sent requests for proposals to banks about a month ago for 12-year secured funding for the delivery of 787 Dreamliner aircraft and a cargo plane, the sources said.
Etihad, which declined to comment on the financing, has 51 787 Dreamliner jets on order, including 21 787-9s and 30 of the larger 787-10 variant, according to Boeing’s website. Its only cargo plane on order is a 777 Freighter.
"
'via Blog this'
"Abu Dhabi’s Etihad Airways is seeking to raise debt to help finance upcoming deliveries of Boeing (BA.N) aircraft on order worth more than $1 billion, banking sources familiar with the matter said.
The state carrier sent requests for proposals to banks about a month ago for 12-year secured funding for the delivery of 787 Dreamliner aircraft and a cargo plane, the sources said.
Etihad, which declined to comment on the financing, has 51 787 Dreamliner jets on order, including 21 787-9s and 30 of the larger 787-10 variant, according to Boeing’s website. Its only cargo plane on order is a 777 Freighter.
"
'via Blog this'
Abraaj lenders seek legal advice on options against Dubai firm - sources | Reuters
Abraaj lenders seek legal advice on options against Dubai firm - sources | Reuters:
"Lenders to Dubai-based private equity firm Abraaj are seeking advice from law firm Clifford Chance on potential action they could take against the firm as concerns grow about its ability to repay its debt, two sources close to the matter said. Abraaj, the Middle East and Africa’s biggest private equity fund, is experiencing cashflow pressures, said the sources, as it faces an investigation by some investors into how it used some of their money in a $1 billion healthcare fund. Abraaj, which has denied any wrongdoing, said in a statement emailed to Reuters it is working constructively with creditors to resolve outstanding obligations."
'via Blog this'
"Lenders to Dubai-based private equity firm Abraaj are seeking advice from law firm Clifford Chance on potential action they could take against the firm as concerns grow about its ability to repay its debt, two sources close to the matter said. Abraaj, the Middle East and Africa’s biggest private equity fund, is experiencing cashflow pressures, said the sources, as it faces an investigation by some investors into how it used some of their money in a $1 billion healthcare fund. Abraaj, which has denied any wrongdoing, said in a statement emailed to Reuters it is working constructively with creditors to resolve outstanding obligations."
'via Blog this'
Italy's anti-establishment leaders revive governing coalition
Italy's anti-establishment leaders revive governing coalition:
"The Qatar central bank’s international reserves and foreign currency liquidity rose in April, official data showed on Thursday.
The reserves and liquidity, a measure of the central bank’s ability to support the riyal currency, climbed to $39.8 billion last month from $37.8 billion in March."
'via Blog this'
"The Qatar central bank’s international reserves and foreign currency liquidity rose in April, official data showed on Thursday.
The reserves and liquidity, a measure of the central bank’s ability to support the riyal currency, climbed to $39.8 billion last month from $37.8 billion in March."
'via Blog this'
UAE jails activist for ten years over social media posts: report #FreeAhmed @ahmed_mansoor
UAE jails activist for ten years over social media posts: report:
"Prominent Emirati activist Ahmed Mansoor has been sentenced to 10 years in jail and fined 1 million AED ($272,000) on charges of criticizing the United Arab Emirates government on social media, The National newspaper reported late on Wednesday.
A trade and tourism hub, the UAE is an absolute monarchy that tolerates little public criticism of its ruling system and has prosecuted Mansoor and other pro-democracy activists for making what it called insulting comments about the country’s leaders.
Mansoor was among five activists convicted of those charges in 2011 amid the “Arab Spring” protests calling for reform in other Arab states.
"
'via Blog this'
"Prominent Emirati activist Ahmed Mansoor has been sentenced to 10 years in jail and fined 1 million AED ($272,000) on charges of criticizing the United Arab Emirates government on social media, The National newspaper reported late on Wednesday.
A trade and tourism hub, the UAE is an absolute monarchy that tolerates little public criticism of its ruling system and has prosecuted Mansoor and other pro-democracy activists for making what it called insulting comments about the country’s leaders.
Mansoor was among five activists convicted of those charges in 2011 amid the “Arab Spring” protests calling for reform in other Arab states.
"
'via Blog this'
U.S. crude tumbles, widening Brent's premium to 3-year high | Reuters
U.S. crude tumbles, widening Brent's premium to 3-year high | Reuters:
"U.S. oil fell nearly 2 percent on Thursday, despite a larger-than-expected decline in U.S. crude inventories, while global benchmark Brent was little changed, pushing the spread between the two to its widest in more than three years.
U.S. crude stockpiles fell 3.6 million barrels last week, the Energy Information Administration said, exceeding expectations for a decline of 525,000 barrels. Gasoline and diesel stocks rose, but the crude drawdown was a salve for recent losses in U.S. futures. [EIA/S]
Brent crude losses were more limited, as the prospect that the Organization of the Petroleum Exporting Countries will bring its supply-cut deal to a close by the end of the year has had a greater effect on the U.S. benchmark due to ongoing worries about U.S. infrastructure constraints."
'via Blog this'
"U.S. oil fell nearly 2 percent on Thursday, despite a larger-than-expected decline in U.S. crude inventories, while global benchmark Brent was little changed, pushing the spread between the two to its widest in more than three years.
U.S. crude stockpiles fell 3.6 million barrels last week, the Energy Information Administration said, exceeding expectations for a decline of 525,000 barrels. Gasoline and diesel stocks rose, but the crude drawdown was a salve for recent losses in U.S. futures. [EIA/S]
Brent crude losses were more limited, as the prospect that the Organization of the Petroleum Exporting Countries will bring its supply-cut deal to a close by the end of the year has had a greater effect on the U.S. benchmark due to ongoing worries about U.S. infrastructure constraints."
'via Blog this'
MIDEAST STOCKS-Dubai and Saudi bourses lead Gulf gains, Egypt sinks | Reuters
MIDEAST STOCKS-Dubai and Saudi bourses lead Gulf gains, Egypt sinks | Reuters:
"Gulf markets mostly gained on Thursday, led by Dubai, which was carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB) , and Saudi Arabia. The Dubai index closed up 1.9 percent, with gains led by a 5.9 percent spike in DIB shares in heavy trade to 5.07 dirhams following the last day of trade in the bank’s rights issue, which allowed purchases of DIB shares at 3.11 dirhams. Investors had been selling DIB stock to buy the rights before the Wednesday deadline, contributing to its 13 percent decline this year."
'via Blog this'
"Gulf markets mostly gained on Thursday, led by Dubai, which was carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB) , and Saudi Arabia. The Dubai index closed up 1.9 percent, with gains led by a 5.9 percent spike in DIB shares in heavy trade to 5.07 dirhams following the last day of trade in the bank’s rights issue, which allowed purchases of DIB shares at 3.11 dirhams. Investors had been selling DIB stock to buy the rights before the Wednesday deadline, contributing to its 13 percent decline this year."
'via Blog this'
Mubadala Among Bidders for U.A.E.’s Amana Healthcare - Bloomberg
Mubadala Among Bidders for U.A.E.’s Amana Healthcare - Bloomberg:
"Abu Dhabi’s Mubadala Investment Co. is among potential bidders for the United Arab Emirates’ privately-held Amana Healthcare, people with knowledge of the matter said.
The fund’s healthcare unit is in advanced talks about the acquisition, the people said, asking not to be identified because the discussions are private. Amana, which operates in Abu Dhabi and Al Ain, has also drawn interest from other large healthcare providers and investors, some of the people said.
Bank of America Corp. was hired to work on the sale that could value the business at about $400 million, people said in 2016. Amana hopes to close a deal by the end of the year, some of the people said. A representative for Amana didn’t immediately respond to requests for comment, while Mubadala declined to comment."
'via Blog this'
"Abu Dhabi’s Mubadala Investment Co. is among potential bidders for the United Arab Emirates’ privately-held Amana Healthcare, people with knowledge of the matter said.
The fund’s healthcare unit is in advanced talks about the acquisition, the people said, asking not to be identified because the discussions are private. Amana, which operates in Abu Dhabi and Al Ain, has also drawn interest from other large healthcare providers and investors, some of the people said.
Bank of America Corp. was hired to work on the sale that could value the business at about $400 million, people said in 2016. Amana hopes to close a deal by the end of the year, some of the people said. A representative for Amana didn’t immediately respond to requests for comment, while Mubadala declined to comment."
'via Blog this'
IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg
IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg:
"Bahrain should consider implementing corporate income tax to shore up its finances as rising interest rates hinder its ability to borrow, the International Monetary Fund said.
“Notwithstanding notable measures implemented since 2015, a credibly large fiscal adjustment is a priority,” the IMF said in a report dated May 30. “The implementation of a value-added tax, as planned, would be important. Additional revenue measures -- including consideration of a corporate income tax -- would be welcome.”
Bahrain was one of the hardest-hit Gulf economies after oil prices began falling in 2014, with authorities seen slower to react than countries such as Saudi Arabia. Even as oil prices recovered this year, the country’s debt risk, as measured by five-year credit default swaps, climbed to a 2016 high of 385 basis points this month, according to CMA data compiled by Bloomberg."
'via Blog this'
"Bahrain should consider implementing corporate income tax to shore up its finances as rising interest rates hinder its ability to borrow, the International Monetary Fund said.
“Notwithstanding notable measures implemented since 2015, a credibly large fiscal adjustment is a priority,” the IMF said in a report dated May 30. “The implementation of a value-added tax, as planned, would be important. Additional revenue measures -- including consideration of a corporate income tax -- would be welcome.”
Bahrain was one of the hardest-hit Gulf economies after oil prices began falling in 2014, with authorities seen slower to react than countries such as Saudi Arabia. Even as oil prices recovered this year, the country’s debt risk, as measured by five-year credit default swaps, climbed to a 2016 high of 385 basis points this month, according to CMA data compiled by Bloomberg."
'via Blog this'
Mideast funds more positive on UAE equities than at any time since January 2017 | ZAWYA MENA Edition
Mideast funds more positive on UAE equities than at any time since January 2017 | ZAWYA MENA Edition:
"Middle East fund managers have turned very positive on equities in the United Arab Emirates and are now more bullish on that market than Saudi Arabia for the first time in eight months, a monthly Reuters poll showed on Thursday. UAE bourses have fared poorly this year, especially Dubai, where the stock index has tumbled 13.7 percent. They have been hurt by slumping real estate prices and an outflow of funds to Saudi Arabia, where investors are eagerly anticipating Riyadh's entry into emerging market indexes next year. Reuters' latest poll of 13 leading regional fund managers, conducted over the past week, suggests that trend may soon change, however."
'via Blog this'
"Middle East fund managers have turned very positive on equities in the United Arab Emirates and are now more bullish on that market than Saudi Arabia for the first time in eight months, a monthly Reuters poll showed on Thursday. UAE bourses have fared poorly this year, especially Dubai, where the stock index has tumbled 13.7 percent. They have been hurt by slumping real estate prices and an outflow of funds to Saudi Arabia, where investors are eagerly anticipating Riyadh's entry into emerging market indexes next year. Reuters' latest poll of 13 leading regional fund managers, conducted over the past week, suggests that trend may soon change, however."
'via Blog this'
Saudi housing crisis tests Crown Prince's reform drive | Reuters
Saudi housing crisis tests Crown Prince's reform drive | Reuters:
"Saudi Arabia’s crown prince wants to build a mega-city with the latest robotics under his grand plan to reform the kingdom.
Civil servant Amer al-Ghamdi has a simpler dream: to buy an affordable home.
Whether Ghamdi and some 1.2 million Saudis in a similar financial position manage to do so will be vital if Crown Prince Mohammed bin Salman is to convince his people that the reform plan will benefit not just the super-rich. "
'via Blog this'
"Saudi Arabia’s crown prince wants to build a mega-city with the latest robotics under his grand plan to reform the kingdom.
Civil servant Amer al-Ghamdi has a simpler dream: to buy an affordable home.
Whether Ghamdi and some 1.2 million Saudis in a similar financial position manage to do so will be vital if Crown Prince Mohammed bin Salman is to convince his people that the reform plan will benefit not just the super-rich. "
'via Blog this'
MIDEAST STOCKS-Dubai stocks up on DIB rights issue, other Gulf markets edge up | Reuters
MIDEAST STOCKS-Dubai stocks up on DIB rights issue, other Gulf markets edge up | Reuters:
"Dubai stocks rose in early trade on Thursday, carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB), and most other Gulf markets edged up. The Dubai index was up 1.4 percent as Dubai Islamic Bank jumped 4.6 percent to 5.01 dirhams in heavy trade. Wednesday was last day of trade in the bank’s rights issue, which allowed purchase of DIB shares at 3.11 dirhams. Investors had been selling the stock to buy the rights before the deadline, contributing to its 13 percent decline this year."
'via Blog this'
"Dubai stocks rose in early trade on Thursday, carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB), and most other Gulf markets edged up. The Dubai index was up 1.4 percent as Dubai Islamic Bank jumped 4.6 percent to 5.01 dirhams in heavy trade. Wednesday was last day of trade in the bank’s rights issue, which allowed purchase of DIB shares at 3.11 dirhams. Investors had been selling the stock to buy the rights before the deadline, contributing to its 13 percent decline this year."
'via Blog this'
Wednesday, 30 May 2018
28 jailed for Dh635-million bank swindle in Abu Dhabi | GulfNews.com
28 jailed for Dh635-million bank swindle in Abu Dhabi | GulfNews.com:
"The Abu Dhabi Criminal Court on Wednesday found 28 defendants guilty of the embezzlement of Dh635 million from an Abu Dhabi bank and awarded them jail terms ranging from one year to 15 years.
They were convicted of carrying out fraudulent activities and misappropriating the huge amount on different occasions from the bank.
The court ordered the convicts to pay back Dh9 million, which the bank has not been able to recover yet."
'via Blog this'
"The Abu Dhabi Criminal Court on Wednesday found 28 defendants guilty of the embezzlement of Dh635 million from an Abu Dhabi bank and awarded them jail terms ranging from one year to 15 years.
They were convicted of carrying out fraudulent activities and misappropriating the huge amount on different occasions from the bank.
The court ordered the convicts to pay back Dh9 million, which the bank has not been able to recover yet."
'via Blog this'
OECD highlights low Saudi corporate debt, but risks for Turkey
OECD highlights low Saudi corporate debt, but risks for Turkey:
"Saudi non-banking corporates have one of the lowest borrowing levels among the G-20 countries, according to the OECD’s latest global economic outlook. The report also showed that Turkey had the most foreign-denominated debt within the G-20, heaping pressure on President Recep Erdogan ahead of elections. But the next two years looked promising for global GDP growth running at its long-term average of about 4 percent, while world trade levels had recovered since the financial crisis. Unemployment within OECD countries was expected to drop to its lowest since 1980, although measures should be undertaken “to bring more people into the workforce.”"
'via Blog this'
"Saudi non-banking corporates have one of the lowest borrowing levels among the G-20 countries, according to the OECD’s latest global economic outlook. The report also showed that Turkey had the most foreign-denominated debt within the G-20, heaping pressure on President Recep Erdogan ahead of elections. But the next two years looked promising for global GDP growth running at its long-term average of about 4 percent, while world trade levels had recovered since the financial crisis. Unemployment within OECD countries was expected to drop to its lowest since 1980, although measures should be undertaken “to bring more people into the workforce.”"
'via Blog this'
Shale Surge Crashes Into Bottlenecks From Pipelines to Ports - Bloomberg
Shale Surge Crashes Into Bottlenecks From Pipelines to Ports - Bloomberg:
"The U.S. shale surge is crashing headlong into a barrage of bottlenecks. From West Texas pipelines to Oklahoma storage centers and Gulf Coast export terminals, the delivery system for American crude is straining to keep up with soaring production. That’s limiting the industry’s ability to take full advantage of growing worldwide demand, with U.S. barrels forced to take an a $9-a-barrel price discount to international crude. Barclays Plc analysts on Tuesday predicted “a new shock" for energy markets as a dearth of pipeline capacity near a key Oklahoma storage hub threatens the flow of oil. Pipeline shortages in Texas’ Permian basin, meanwhile, may not clear until late 2019. The problems undercut hopes American output will stabilize global prices as crude from Venezuela and Iran is increasingly at risk."
'via Blog this'
"The U.S. shale surge is crashing headlong into a barrage of bottlenecks. From West Texas pipelines to Oklahoma storage centers and Gulf Coast export terminals, the delivery system for American crude is straining to keep up with soaring production. That’s limiting the industry’s ability to take full advantage of growing worldwide demand, with U.S. barrels forced to take an a $9-a-barrel price discount to international crude. Barclays Plc analysts on Tuesday predicted “a new shock" for energy markets as a dearth of pipeline capacity near a key Oklahoma storage hub threatens the flow of oil. Pipeline shortages in Texas’ Permian basin, meanwhile, may not clear until late 2019. The problems undercut hopes American output will stabilize global prices as crude from Venezuela and Iran is increasingly at risk."
'via Blog this'
Two senior executives resign from Abraaj | ZAWYA MENA Edition
Two senior executives resign from Abraaj | ZAWYA MENA Edition:
"The departures come mere months following their appointment as part of the private-equity firm’s restructure
Two more senior executives at private-equity firm Abraaj Group have resigned in recent days, people familiar with the matter said, piling new pressure on the embattled former star of Dubai's financial centre, according to Private Equity News.
Bisher Barazi, the Chief Financial Officer of Abraaj's private-equity unit, and Matthew McGuire, the unit's Chief Operating Officer, resigned mere months after they were appointed to their respective roles as part of a wider reorganisation that saw the firm's founder and CEO Arif Naqvi step back from the day-to-day running of the private-equity business."
'via Blog this'
"The departures come mere months following their appointment as part of the private-equity firm’s restructure
Two more senior executives at private-equity firm Abraaj Group have resigned in recent days, people familiar with the matter said, piling new pressure on the embattled former star of Dubai's financial centre, according to Private Equity News.
Bisher Barazi, the Chief Financial Officer of Abraaj's private-equity unit, and Matthew McGuire, the unit's Chief Operating Officer, resigned mere months after they were appointed to their respective roles as part of a wider reorganisation that saw the firm's founder and CEO Arif Naqvi step back from the day-to-day running of the private-equity business."
'via Blog this'
How ‘Insolvent’ 1MDB's Debt Stacks Up and Who's Saddled With It - Bloomberg
How ‘Insolvent’ 1MDB's Debt Stacks Up and Who's Saddled With It - Bloomberg:
"Malaysia’s scandal-plagued state investment fund 1MDB has a 143.75 million ringgit ($36 million) bond coupon payment that may still be due this month. With the company unable to repay debt, the government has said it will honor 1MDB’s obligations as it had done since April 2017. This is what you need to know about 1MDB’s path to insolvency, the debt commitments that the government’s earmarked 38 billion ringgit for, and who else could be saddled with payments."
'via Blog this'
"Malaysia’s scandal-plagued state investment fund 1MDB has a 143.75 million ringgit ($36 million) bond coupon payment that may still be due this month. With the company unable to repay debt, the government has said it will honor 1MDB’s obligations as it had done since April 2017. This is what you need to know about 1MDB’s path to insolvency, the debt commitments that the government’s earmarked 38 billion ringgit for, and who else could be saddled with payments."
'via Blog this'
Dubai Aerospace says sold 16 aircraft worth $900 million | Reuters
Dubai Aerospace says sold 16 aircraft worth $900 million | Reuters:
"Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Wednesday it had signed three agreements to sell 16 aircraft worth $900 million.
Proceeds of the sale would be used to pay down debt and to support growth plans, DAE Chief Executive Firoz Tarapore said in a statement, which did not disclose who was buying the aircraft.
The agreements, which include Boeing 737 and Airbus A320, A330, and A350 aircraft, are expected to close in the second half of the year, the statement said."
'via Blog this'
"Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Wednesday it had signed three agreements to sell 16 aircraft worth $900 million.
Proceeds of the sale would be used to pay down debt and to support growth plans, DAE Chief Executive Firoz Tarapore said in a statement, which did not disclose who was buying the aircraft.
The agreements, which include Boeing 737 and Airbus A320, A330, and A350 aircraft, are expected to close in the second half of the year, the statement said."
'via Blog this'
Deutsche Bank looking to sell stake in Dubai-based Abraaj: sources | Reuters
Deutsche Bank looking to sell stake in Dubai-based Abraaj: sources | Reuters:
"Deutsche Bank (DBKGn.DE) is looking to sell its small stake in Dubai-based Abraaj, the embattled private equity firm involved in a row over alleged misuse of investor money, two sources familiar with the matter said.
The potential sale, which the German bank has been considering for some time, has become more urgent since Abraaj, the Middle East and Africa’s biggest private equity fund, has been locked in a dispute with investors, said the sources.
Deutsche, which is undergoing a restructuring and said last week it plans to cut at least 7,000 jobs worldwide, has an 8.8 percent stake in Abraaj Holdings, according to the bank’s latest annual report. "
'via Blog this'
"Deutsche Bank (DBKGn.DE) is looking to sell its small stake in Dubai-based Abraaj, the embattled private equity firm involved in a row over alleged misuse of investor money, two sources familiar with the matter said.
The potential sale, which the German bank has been considering for some time, has become more urgent since Abraaj, the Middle East and Africa’s biggest private equity fund, has been locked in a dispute with investors, said the sources.
Deutsche, which is undergoing a restructuring and said last week it plans to cut at least 7,000 jobs worldwide, has an 8.8 percent stake in Abraaj Holdings, according to the bank’s latest annual report. "
'via Blog this'
Dubai cancels corporate fines in fresh effort to boost business | Reuters
Dubai cancels corporate fines in fresh effort to boost business | Reuters:
"Dubai is exempting companies from administrative fines in a fresh effort to stimulate business, which has been dampened by new taxes and slumping asset markets. A decree by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum cancels fines imposed by the Department of Economic Development through the end of 2018, the DED said on Tuesday. It levies over 60 different fines for commercial violations, some worth thousands of dollars. “This decree is a positive step in promoting economic growth and consolidating Dubai’s position as one of the important commercial and economic centres internationally,” said Omar Bushahab, head of the DED’s business registration section."
'via Blog this'
"Dubai is exempting companies from administrative fines in a fresh effort to stimulate business, which has been dampened by new taxes and slumping asset markets. A decree by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum cancels fines imposed by the Department of Economic Development through the end of 2018, the DED said on Tuesday. It levies over 60 different fines for commercial violations, some worth thousands of dollars. “This decree is a positive step in promoting economic growth and consolidating Dubai’s position as one of the important commercial and economic centres internationally,” said Omar Bushahab, head of the DED’s business registration section."
'via Blog this'
Oil climbs more than two percent as tight supplies in focus | Reuters
Oil climbs more than two percent as tight supplies in focus | Reuters:
"Oil prices climbed on Wednesday, supported by tight supplies, forecasts of a drawdown in U.S. crude inventories, and a weaker dollar.
Brent LCOc1 rose $1.98, or 2.6 percent, to $77.37 a barrel by 11:52 a.m. EDT (1552 GMT). U.S. crude CLc1 gained $1.62, or 2.4 percent, to $68.35.
Oil has been pressured by reports that the Organization of the Petroleum Exporting Countries (OPEC) and Russia may ease up on output cuts that have been in place since January 2017. The supply reductions have driven down global inventories and boosted prices, with global benchmark Brent crude reaching a 3-1/2-year high of $80.50 a barrel on May 17."
'via Blog this'
"Oil prices climbed on Wednesday, supported by tight supplies, forecasts of a drawdown in U.S. crude inventories, and a weaker dollar.
Brent LCOc1 rose $1.98, or 2.6 percent, to $77.37 a barrel by 11:52 a.m. EDT (1552 GMT). U.S. crude CLc1 gained $1.62, or 2.4 percent, to $68.35.
Oil has been pressured by reports that the Organization of the Petroleum Exporting Countries (OPEC) and Russia may ease up on output cuts that have been in place since January 2017. The supply reductions have driven down global inventories and boosted prices, with global benchmark Brent crude reaching a 3-1/2-year high of $80.50 a barrel on May 17."
'via Blog this'
MIDEAST STOCKS-Qatar leads Gulf down in quiet trade, QNB retreats from high | Reuters
MIDEAST STOCKS-Qatar leads Gulf down in quiet trade, QNB retreats from high | Reuters:
"Gulf stock markets mostly dropped on Wednesday in modest volumes, led by Qatar, where top lender Qatar National Bank (QNB) and several other blue-chips fell sharply on profit-taking. Qatar’s index lost 2.3 percent as Qatar Islamic Bank (QIB) fell 4.7 percent in heavy trade; its unit QInvest reported first-quarter net profit of 1.7 million riyals, down from 15 million riyals a year ago. QNB, which had on Tuesday surged to its highest level since December 2014, fell back 2.1 percent in heavy volume. Qatar Electricity and Water declined 4.1 percent and heavyweight Industries Qatar ended 3.9 percent lower."
'via Blog this'
"Gulf stock markets mostly dropped on Wednesday in modest volumes, led by Qatar, where top lender Qatar National Bank (QNB) and several other blue-chips fell sharply on profit-taking. Qatar’s index lost 2.3 percent as Qatar Islamic Bank (QIB) fell 4.7 percent in heavy trade; its unit QInvest reported first-quarter net profit of 1.7 million riyals, down from 15 million riyals a year ago. QNB, which had on Tuesday surged to its highest level since December 2014, fell back 2.1 percent in heavy volume. Qatar Electricity and Water declined 4.1 percent and heavyweight Industries Qatar ended 3.9 percent lower."
'via Blog this'
MIDEAST STOCKS-Qatar falls as blue chip banks give up recent gains | Reuters
MIDEAST STOCKS-Qatar falls as blue chip banks give up recent gains | Reuters:
"Qatari stocks fell on Wednesday, weighed down by Qatar National Bank (QNB) and Qatar Islamic Bank, while other Gulf markets were mixed The Qatar index was trading 1.8 percent lower as blue-chip stock Qatar National Bank fell 3.5 percent, giving up some of the recent gains driven by a 7 percent rise in first-quarter net profit, helped by rapid loan growth. Other index heavyweights Qatar Islamic Bank and Industries Qatar were down 2.5 percent and 2.9 percent, respectively. The Qatari index is nevertheless up 4.7 percent so far this year."
'via Blog this'
"Qatari stocks fell on Wednesday, weighed down by Qatar National Bank (QNB) and Qatar Islamic Bank, while other Gulf markets were mixed The Qatar index was trading 1.8 percent lower as blue-chip stock Qatar National Bank fell 3.5 percent, giving up some of the recent gains driven by a 7 percent rise in first-quarter net profit, helped by rapid loan growth. Other index heavyweights Qatar Islamic Bank and Industries Qatar were down 2.5 percent and 2.9 percent, respectively. The Qatari index is nevertheless up 4.7 percent so far this year."
'via Blog this'
Oil prices steady after shake-out on supply worries | Reuters
Oil prices steady after shake-out on supply worries | Reuters:
"Oil prices steadied on Wednesday after falling steeply in recent days on concerns that Saudi Arabia and Russia will pump more crude in the second half of the year in response to falling global crude inventories and rising consumer prices.
Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by 1 million barrels per day (bpd) to counter potential supply shortfalls from Venezuela and Iran.
Brent crude LCOc1 clawed back early losses to be up 1 cent at $75.40 a barrel by 0619 GMT, after trading as low as $74.81 a barrel. "
'via Blog this'
"Oil prices steadied on Wednesday after falling steeply in recent days on concerns that Saudi Arabia and Russia will pump more crude in the second half of the year in response to falling global crude inventories and rising consumer prices.
Saudi Arabia and Russia have discussed raising OPEC and non-OPEC oil production by 1 million barrels per day (bpd) to counter potential supply shortfalls from Venezuela and Iran.
Brent crude LCOc1 clawed back early losses to be up 1 cent at $75.40 a barrel by 0619 GMT, after trading as low as $74.81 a barrel. "
'via Blog this'
Tuesday, 29 May 2018
MIDEAST STOCKS-Gulf stocks see limited gains, property shares weigh on Dubai | Reuters
MIDEAST STOCKS-Gulf stocks see limited gains, property shares weigh on Dubai | Reuters:
"Dubai shares were sluggish on Tuesday, dragged down by property stocks, while other Gulf markets closed in positive territory. Gains were modest amid very thin trading volumes during the holy month of Ramadan, a risk-off sentiment in foreign markets as well as slightly lower oil prices over the past few days. In Dubai where the index slipped 0.2 percent, property stocks such as Union Properties and blue-chip Emaar Properties lost 1.1 percent and 0.6 percent, respectively."
'via Blog this'
"Dubai shares were sluggish on Tuesday, dragged down by property stocks, while other Gulf markets closed in positive territory. Gains were modest amid very thin trading volumes during the holy month of Ramadan, a risk-off sentiment in foreign markets as well as slightly lower oil prices over the past few days. In Dubai where the index slipped 0.2 percent, property stocks such as Union Properties and blue-chip Emaar Properties lost 1.1 percent and 0.6 percent, respectively."
'via Blog this'
Oil Drops After Saudi-Russia Output Revival Plan Rattles Traders - Bloomberg
Oil Drops After Saudi-Russia Output Revival Plan Rattles Traders - Bloomberg:
"Oil headed for its longest run of losses since February as investors weighed Saudi Arabia and Russia’s proposal to boost output to ease concerns over supply shortages.
Crude futures in New York slid 1.6 percent on Tuesday after tumbling 4 percent on Friday. Saudi Arabia and Russia said on Friday that they may restore some of the output halted as part of a deal between OPEC to make up for potential losses from other members, most notably Venezuelan supply and Iran. There was no settlement Monday because of the U.S. Memorial Day holiday and all trades will be booked Tuesday."
'via Blog this'
"Oil headed for its longest run of losses since February as investors weighed Saudi Arabia and Russia’s proposal to boost output to ease concerns over supply shortages.
Crude futures in New York slid 1.6 percent on Tuesday after tumbling 4 percent on Friday. Saudi Arabia and Russia said on Friday that they may restore some of the output halted as part of a deal between OPEC to make up for potential losses from other members, most notably Venezuelan supply and Iran. There was no settlement Monday because of the U.S. Memorial Day holiday and all trades will be booked Tuesday."
'via Blog this'
UAE non-oil economic growth slows slightly: central bank | Reuters
UAE non-oil economic growth slows slightly: central bank | Reuters:
"Non-oil economic activity in the United Arab Emirates grew by 3.1 percent from a year earlier in the first quarter, slowing slightly from 3.4 percent in the final quarter of 2017, the central bank estimated on Tuesday.
Overall economic activity, which includes oil output, grew by 1.2 percent in the first quarter, accelerating from 0.1 percent in the previous quarter.
The central bank raised its forecast for gross domestic product growth in 2018 to 2.7 percent from its previous forecast of 2.5 percent."
'via Blog this'
"Non-oil economic activity in the United Arab Emirates grew by 3.1 percent from a year earlier in the first quarter, slowing slightly from 3.4 percent in the final quarter of 2017, the central bank estimated on Tuesday.
Overall economic activity, which includes oil output, grew by 1.2 percent in the first quarter, accelerating from 0.1 percent in the previous quarter.
The central bank raised its forecast for gross domestic product growth in 2018 to 2.7 percent from its previous forecast of 2.5 percent."
'via Blog this'
MIDEAST STOCKS-Dubai Islamic Bank weighs on Dubai index; Qatar keeps rising | Reuters
MIDEAST STOCKS-Dubai Islamic Bank weighs on Dubai index; Qatar keeps rising | Reuters:
"The Dubai stock market was sluggish on Tuesday, dragged down by building contractor Drake & Scull International and Dubai Islamic Bank, while other Gulf markets were up slightly in the first hour of trading.
The Dubai index shed 0.3 percent in early trade. Heavyweight Dubai Islamic Bank was down 0.2 percent, as shares continued to slip while trading in a rights issue, which started in mid-May and will end on May 30.
Building contractor Drake & Scull International was 0.8 percent lower, after making significant gains following positive first quarter results."
'via Blog this'
"The Dubai stock market was sluggish on Tuesday, dragged down by building contractor Drake & Scull International and Dubai Islamic Bank, while other Gulf markets were up slightly in the first hour of trading.
The Dubai index shed 0.3 percent in early trade. Heavyweight Dubai Islamic Bank was down 0.2 percent, as shares continued to slip while trading in a rights issue, which started in mid-May and will end on May 30.
Building contractor Drake & Scull International was 0.8 percent lower, after making significant gains following positive first quarter results."
'via Blog this'
Monday, 28 May 2018
Saudi Arabia’s sleepy city offers prince a cautionary tale
Saudi Arabia’s sleepy city offers prince a cautionary tale:
"With its pristine beaches, manicured lawns and rows of newly built villas, the King Abdullah Economic City bears all the hallmarks of the modern Saudi Arabia envisaged by Crown Prince Mohammed bin Salman. Women walk freely without the long, cloak-like abayas. A golf course nestles up against the Red Sea coastline and international companies including Pfizer and Mars have opened factories in the city. Yet the development instead serves as a cautionary tale of the challenges the young heir apparent faces as he pursues a highly ambitious programme to overhaul the conservative kingdom, including his own plans for a new $500bn megacity, Neom."
'via Blog this'
"With its pristine beaches, manicured lawns and rows of newly built villas, the King Abdullah Economic City bears all the hallmarks of the modern Saudi Arabia envisaged by Crown Prince Mohammed bin Salman. Women walk freely without the long, cloak-like abayas. A golf course nestles up against the Red Sea coastline and international companies including Pfizer and Mars have opened factories in the city. Yet the development instead serves as a cautionary tale of the challenges the young heir apparent faces as he pursues a highly ambitious programme to overhaul the conservative kingdom, including his own plans for a new $500bn megacity, Neom."
'via Blog this'
Lukoil posts 75% profit leap on crude strength
Lukoil posts 75% profit leap on crude strength:
"Lukoil, Russia’s second-largest oil producer, has reported a 75 per cent jump in first-quarter net profit, as a recent surge in global crude prices to near four-year highs helped push up revenue and margins. A 17-month-old deal between Russia and the Opec cartel to cap global oil production helped lift prices last year from historic lows, and in recent months a collapse in production in Venezuela and fears over Iran’s output pushed the benchmark Brent crude price temporarily to more than $80 a barrel, cheering oil majors and exporting countries. But concerns over a potentially overheating market saw the energy ministers of Russia and Saudi Arabia, Opec’s de facto leader, hold talks last week on easing that cap, amid calls from producers such as Lukoil to allow them to produce more."
'via Blog this'
"Lukoil, Russia’s second-largest oil producer, has reported a 75 per cent jump in first-quarter net profit, as a recent surge in global crude prices to near four-year highs helped push up revenue and margins. A 17-month-old deal between Russia and the Opec cartel to cap global oil production helped lift prices last year from historic lows, and in recent months a collapse in production in Venezuela and fears over Iran’s output pushed the benchmark Brent crude price temporarily to more than $80 a barrel, cheering oil majors and exporting countries. But concerns over a potentially overheating market saw the energy ministers of Russia and Saudi Arabia, Opec’s de facto leader, hold talks last week on easing that cap, amid calls from producers such as Lukoil to allow them to produce more."
'via Blog this'
UAE property developers ramp up Ramadan offers
UAE property developers ramp up Ramadan offers:
"UAE property developers are ramping up efforts to win over prospective buyers with discounts and attractive payment terms, hoping to counter the expected fall in sales during Ramadan.
The onslaught of deals come as the country is already grappling with declining real estate prices as well as an anticipated increase in the supply of residential units in the coming year.
“During the holy month, property transaction levels are known to dip and this when combined with a real estate market that is continuing to soften, developers will unsurprisingly, get creative to entice demand,” said Faisal Durrani, partner, head of research at property consultancy Cluttons."
'via Blog this'
"UAE property developers are ramping up efforts to win over prospective buyers with discounts and attractive payment terms, hoping to counter the expected fall in sales during Ramadan.
The onslaught of deals come as the country is already grappling with declining real estate prices as well as an anticipated increase in the supply of residential units in the coming year.
“During the holy month, property transaction levels are known to dip and this when combined with a real estate market that is continuing to soften, developers will unsurprisingly, get creative to entice demand,” said Faisal Durrani, partner, head of research at property consultancy Cluttons."
'via Blog this'
Crude calculation: Just how much oil does Saudi Aramco have in reserve? | Arab News
Crude calculation: Just how much oil does Saudi Aramco have in reserve? | Arab News:
"Now that the initial public offering of Saudi Aramco has been officially put back until 2019, the company can give preparations for what could be the biggest IPO in history the detail they deserve. Does it matter that the IPO will not go ahead on the original schedule that had it taking place, in some form, before the end of this year? Probably not. Policymakers like to stick to their pledges, but an event of this size and scale is surely too big and important for the future of the Kingdom to be rushed. With the oil price rising, the fiscal pressure is relaxed for the Saudi authorities, which in any case have shown themselves adept at raising revenue and capital through other means, be it from efficient tax collection or forays into the international capital markets."
'via Blog this'
"Now that the initial public offering of Saudi Aramco has been officially put back until 2019, the company can give preparations for what could be the biggest IPO in history the detail they deserve. Does it matter that the IPO will not go ahead on the original schedule that had it taking place, in some form, before the end of this year? Probably not. Policymakers like to stick to their pledges, but an event of this size and scale is surely too big and important for the future of the Kingdom to be rushed. With the oil price rising, the fiscal pressure is relaxed for the Saudi authorities, which in any case have shown themselves adept at raising revenue and capital through other means, be it from efficient tax collection or forays into the international capital markets."
'via Blog this'
Qatar’s trade surplus in April at QR14.7bn - The Peninsula Qatar
Qatar’s trade surplus in April at QR14.7bn - The Peninsula Qatar:
"Despite the ongoing siege against Qatar, country’s trade surplus witnessed a sharp jump in April 2018 year-on-year, mainly as a result of increase in exports with the significant rebound in energy prices. The foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR14.7bn, up by QR4.9bn, or 49.3 percent, compared to April 2017. When compared on monthly basis, the trade balance increased by nearly QR1.4bn, or 10.7 percent, against the previous month (March 2018), preliminary figures released by the Ministry of Development Planning and Statistics (MDPS) show."
'via Blog this'
"Despite the ongoing siege against Qatar, country’s trade surplus witnessed a sharp jump in April 2018 year-on-year, mainly as a result of increase in exports with the significant rebound in energy prices. The foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR14.7bn, up by QR4.9bn, or 49.3 percent, compared to April 2017. When compared on monthly basis, the trade balance increased by nearly QR1.4bn, or 10.7 percent, against the previous month (March 2018), preliminary figures released by the Ministry of Development Planning and Statistics (MDPS) show."
'via Blog this'
Siege fails to shake confidence of global investors in Qatar
Siege fails to shake confidence of global investors in Qatar:
"The almost one-year blockade imposed on Qatar appears not to have shaken the confidence of global investors as Qatar's top four investing countries' share in Doha's inbound foreign direct investment (FDI) continued to be "stable,", according to official data. The country's total inward FDI stocks amounted to QR130.5bn in 2017 with other American countries contributing QR46.6bn, or 36%, of the total, followed by European Union at QR38.4bn, or 29%; the US at QR30.2bn or 23%; and Asia (not including Gulf Co-operation Council) at QR6.4bn or 5%, according to figures released by the Ministry of Development Planning and Statistics (MDPS). "Over 60 countries contributed to the stock of FDI in Qatar at the end of 2017. The top four group of countries' relative share of total FDI continued to be stable and amounted to 93% of total at the end of 2017," MDPS said."
'via Blog this'
"The almost one-year blockade imposed on Qatar appears not to have shaken the confidence of global investors as Qatar's top four investing countries' share in Doha's inbound foreign direct investment (FDI) continued to be "stable,", according to official data. The country's total inward FDI stocks amounted to QR130.5bn in 2017 with other American countries contributing QR46.6bn, or 36%, of the total, followed by European Union at QR38.4bn, or 29%; the US at QR30.2bn or 23%; and Asia (not including Gulf Co-operation Council) at QR6.4bn or 5%, according to figures released by the Ministry of Development Planning and Statistics (MDPS). "Over 60 countries contributed to the stock of FDI in Qatar at the end of 2017. The top four group of countries' relative share of total FDI continued to be stable and amounted to 93% of total at the end of 2017," MDPS said."
'via Blog this'
Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg
Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg:
"Sliding oil prices are eroding the buffers that helped Russia withstand the emerging-market retreat.
Investors are pulling cash from the biggest exchange-traded fund tracking Russian assets at the fastest pace in almost a year. Redemptions from the VanEck Vectors Russia ETF, which invests in oil and gas companies including Gazprom PJSC, Rosneft PJSC and Lukoil PJSC, reached $88.9 million last week, the strongest since June 2017, according to data compiled by Bloomberg.
“There is a global outflow from emerging markets -- Russia isn’t an exception from the trend, but recently its market was supported by higher oil prices,” said Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow. “Now the factor of high crude price is diminishing.”
"
'via Blog this'
"Sliding oil prices are eroding the buffers that helped Russia withstand the emerging-market retreat.
Investors are pulling cash from the biggest exchange-traded fund tracking Russian assets at the fastest pace in almost a year. Redemptions from the VanEck Vectors Russia ETF, which invests in oil and gas companies including Gazprom PJSC, Rosneft PJSC and Lukoil PJSC, reached $88.9 million last week, the strongest since June 2017, according to data compiled by Bloomberg.
“There is a global outflow from emerging markets -- Russia isn’t an exception from the trend, but recently its market was supported by higher oil prices,” said Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow. “Now the factor of high crude price is diminishing.”
"
'via Blog this'
UAE cenbank pumps $3.8bln liquidity in April | ZAWYA MENA Edition
UAE cenbank pumps $3.8bln liquidity in April | ZAWYA MENA Edition:
"A total of Dh14 billion ($3.8 billion) in cash has been pumped onto the market by UAE’s Central Bank (CBUAE) in April, the highest liquidity injected by the country's primary financial regulator since the beginning of the year, a media report said. The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics. The fall in liquidity held by UAE banks over recent period has been attributed by industry analysts to tightened lending measures in addition to other arrangements adopted by CBUAE to ensure the smooth operation of the country's financial landscape."
'via Blog this'
"A total of Dh14 billion ($3.8 billion) in cash has been pumped onto the market by UAE’s Central Bank (CBUAE) in April, the highest liquidity injected by the country's primary financial regulator since the beginning of the year, a media report said. The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics. The fall in liquidity held by UAE banks over recent period has been attributed by industry analysts to tightened lending measures in addition to other arrangements adopted by CBUAE to ensure the smooth operation of the country's financial landscape."
'via Blog this'
MIDEAST STOCKS-Qatar biggest gainer as other Gulf markets subdued | ZAWYA MENA Edition
MIDEAST STOCKS-Qatar biggest gainer as other Gulf markets subdued | ZAWYA MENA Edition:
"Qatar's market outperformed Gulf peers on Monday, helped by a surge in blue-chip stocks and government plans to allow full foreign ownership of companies.
Other markets were more subdued as investors reacted to lower oil prices, which extended losses after Saudi Arabia and Russia said they may increase supplies. Trading volumes were also generally thin because of the holy month of Ramadan.
The Qatar index closed 1.5 percent higher, with Qatar National Bank rising 2.9 percent."
'via Blog this'
"Qatar's market outperformed Gulf peers on Monday, helped by a surge in blue-chip stocks and government plans to allow full foreign ownership of companies.
Other markets were more subdued as investors reacted to lower oil prices, which extended losses after Saudi Arabia and Russia said they may increase supplies. Trading volumes were also generally thin because of the holy month of Ramadan.
The Qatar index closed 1.5 percent higher, with Qatar National Bank rising 2.9 percent."
'via Blog this'
India says it only follows U.N. sanctions, not U.S. sanctions on Iran | Reuters
India says it only follows U.N. sanctions, not U.S. sanctions on Iran | Reuters:
"India said on Monday it abided by sanctions imposed by the United Nations but not those imposed by any other country, such as those announced by the United States against Iran.
U.S. President Donald Trump this month withdrew the United States from the Iran nuclear deal and ordered the reimposition of U.S. sanctions suspended under the 2015 accord.
Indian foreign minister Sushma Swaraj said New Delhi’s position was independent of any other country.
"
'via Blog this'
"India said on Monday it abided by sanctions imposed by the United Nations but not those imposed by any other country, such as those announced by the United States against Iran.
U.S. President Donald Trump this month withdrew the United States from the Iran nuclear deal and ordered the reimposition of U.S. sanctions suspended under the 2015 accord.
Indian foreign minister Sushma Swaraj said New Delhi’s position was independent of any other country.
"
'via Blog this'
Saudi c.bank reserves rise sharply on back of high oil prices | Reuters
Saudi c.bank reserves rise sharply on back of high oil prices | Reuters:
"The Saudi Arabian central bank’s foreign reserves rose last month at their fastest rate for four years, official data showed on Monday, revealing the extent to which a rebound in oil prices is strengthening the kingdom’s finances. Net foreign assets climbed by $13.3 billion month-on-month to $498.9 billion in April, their highest level in over a year. The assets peaked at $737 billion in August 2014 before the government began drawing them down to cover a budget deficit caused by a plunge in oil prices, and to build up its main sovereign wealth fund in preparation for overseas investments."
'via Blog this'
"The Saudi Arabian central bank’s foreign reserves rose last month at their fastest rate for four years, official data showed on Monday, revealing the extent to which a rebound in oil prices is strengthening the kingdom’s finances. Net foreign assets climbed by $13.3 billion month-on-month to $498.9 billion in April, their highest level in over a year. The assets peaked at $737 billion in August 2014 before the government began drawing them down to cover a budget deficit caused by a plunge in oil prices, and to build up its main sovereign wealth fund in preparation for overseas investments."
'via Blog this'
StanChart's private equity arm seeks exit from Saudi construction investment -sources | Reuters
StanChart's private equity arm seeks exit from Saudi construction investment -sources | Reuters:
"Standard Chartered’s private equity arm is seeking to sell its stake in a unit of Saudi Binladin Group, the construction group whose owners were entangled in Saudi Arabia’s anti-corruption purge, said three sources familiar with the matter. Construction Products Holding’s (CPC) parent company Binladin is undergoing a restructuring which will likely affect its hundreds of units, after the government took a stake in the conglomerate and formed a committee to oversee its management. Two of the sources said Standard Chartered was not comfortable with uncertainty over what the shake-up could mean for CPC, which specialises in building materials and services, in the absence of specific details about the restructuring."
'via Blog this'
"Standard Chartered’s private equity arm is seeking to sell its stake in a unit of Saudi Binladin Group, the construction group whose owners were entangled in Saudi Arabia’s anti-corruption purge, said three sources familiar with the matter. Construction Products Holding’s (CPC) parent company Binladin is undergoing a restructuring which will likely affect its hundreds of units, after the government took a stake in the conglomerate and formed a committee to oversee its management. Two of the sources said Standard Chartered was not comfortable with uncertainty over what the shake-up could mean for CPC, which specialises in building materials and services, in the absence of specific details about the restructuring."
'via Blog this'
Oil hits multi-week lows on fears of growing supplies | Reuters
Oil hits multi-week lows on fears of growing supplies | Reuters:
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains showed no sign of slowing.
FILE
Brent crude futures LCOc1 stood at $75.32 a barrel at 1805 GMT, down $1.12 from the previous close.
The contract touched a three-week low of $74.49 earlier in the session.
U.S. crude futures were at $66.47, down $1.41, after hitting a six-week low of $65.80."
'via Blog this'
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains showed no sign of slowing.
FILE
Brent crude futures LCOc1 stood at $75.32 a barrel at 1805 GMT, down $1.12 from the previous close.
The contract touched a three-week low of $74.49 earlier in the session.
U.S. crude futures were at $66.47, down $1.41, after hitting a six-week low of $65.80."
'via Blog this'
Opec and Russia Best Not Poke the Shale Oil Bear - Bloomberg
Opec and Russia Best Not Poke the Shale Oil Bear - Bloomberg:
"Here’s one under-reported factor that may explain Russian and Saudi Arabian willingness to turn their backs on almost 18 months of Opec oil supply cuts – the spread between Brent crude and West Texas Intermediate has reached its widest level in three years:
The simple reason for this is that the shale oil boom has left crude sloshing around the U.S., resulting in a local oversupply. While Brent prices have risen some 14 percent over the past three months, WTI is up just 7.5 percent and Midland crude – the version of WTI priced in the booming Permian basin rather than the benchmark delivery point in Cushing, Oklahoma -- is down 4.8 percent.
The last time we saw these sorts of spreads, there were sound legal reasons for it. The U.S. had forbidden almost all exports of crude oil for four decades until the end of 2015, so for many years its soaring shale oil production was trapped by the ban and the capacity limits of U.S. refineries that were able to convert it into exportable products."
'via Blog this'
"Here’s one under-reported factor that may explain Russian and Saudi Arabian willingness to turn their backs on almost 18 months of Opec oil supply cuts – the spread between Brent crude and West Texas Intermediate has reached its widest level in three years:
The simple reason for this is that the shale oil boom has left crude sloshing around the U.S., resulting in a local oversupply. While Brent prices have risen some 14 percent over the past three months, WTI is up just 7.5 percent and Midland crude – the version of WTI priced in the booming Permian basin rather than the benchmark delivery point in Cushing, Oklahoma -- is down 4.8 percent.
The last time we saw these sorts of spreads, there were sound legal reasons for it. The U.S. had forbidden almost all exports of crude oil for four decades until the end of 2015, so for many years its soaring shale oil production was trapped by the ban and the capacity limits of U.S. refineries that were able to convert it into exportable products."
'via Blog this'
China to host Iran to avoid project disruption amid nuclear deal doubt | Reuters
China to host Iran to avoid project disruption amid nuclear deal doubt | Reuters:
"China will host Iranian President Hassan Rouhani next month at a regional summit aimed at avoiding disruption of joint projects, its foreign ministry said on Monday, as major powers scramble to save Iran’s nuclear deal after the United States pulled out.
Rouhani will pay a working visit to China and attend the summit of the China and Russia-led security bloc the Shanghai Cooperation Organization, the ministry said.
It did not give exact dates for his visit, but the summit is scheduled to be held on the second weekend of June in the northern Chinese city of Qingdao.
"
'via Blog this'
"China will host Iranian President Hassan Rouhani next month at a regional summit aimed at avoiding disruption of joint projects, its foreign ministry said on Monday, as major powers scramble to save Iran’s nuclear deal after the United States pulled out.
Rouhani will pay a working visit to China and attend the summit of the China and Russia-led security bloc the Shanghai Cooperation Organization, the ministry said.
It did not give exact dates for his visit, but the summit is scheduled to be held on the second weekend of June in the northern Chinese city of Qingdao.
"
'via Blog this'
Dubai's port operator DP World expands operations in Peru
Dubai's port operator DP World expands operations in Peru:
"Dubai-based port operator DP World has completed a roughly $316 million deal to acquire a Peruvian container and logistics firm and a stake in one of the largest container terminals in the South American country.
The global port operator, which is majority owned by the Dubai government in the United Arab Emirates, said Monday the deal entails 100 percent acquisition of Cosmos Agencia Maritima, or CAM as it’s also known.
The purchase of CAM includes its logistics business, Triton Transports and Neptunia, as well as a 50 percent stake in the Portuários Euroandinos terminal in Peru’s Port of Paita."
'via Blog this'
"Dubai-based port operator DP World has completed a roughly $316 million deal to acquire a Peruvian container and logistics firm and a stake in one of the largest container terminals in the South American country.
The global port operator, which is majority owned by the Dubai government in the United Arab Emirates, said Monday the deal entails 100 percent acquisition of Cosmos Agencia Maritima, or CAM as it’s also known.
The purchase of CAM includes its logistics business, Triton Transports and Neptunia, as well as a 50 percent stake in the Portuários Euroandinos terminal in Peru’s Port of Paita."
'via Blog this'
Oil sinks further as OPEC and Russia look to raise output | Reuters
Oil sinks further as OPEC and Russia look to raise output | Reuters:
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no signs of slowing.
Brent crude futures LCOc1 stood at $75.35 a barrel at 0913 GMT, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $66.69, down $1.19, after hitting a six-week low of $65.80.
"
'via Blog this'
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no signs of slowing.
Brent crude futures LCOc1 stood at $75.35 a barrel at 0913 GMT, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $66.69, down $1.19, after hitting a six-week low of $65.80.
"
'via Blog this'
MIDEAST STOCKS-Qatar index leads region, lifted by foreign ownership plans | Reuters
MIDEAST STOCKS-Qatar index leads region, lifted by foreign ownership plans | Reuters:
"Qatari stocks led regional gains on Monday, with other markets generally subdued amid sluggish trading volumes during Ramadan. The Qatar index was up 1.2 percent in early trading, with Qatar National Bank rising by 2.9 percent. The region’s largest bank has been bolstered in recent months by its move to increase its foreign ownership ceiling to 49 percent from 25 percent to boost its weighting on global indexes."
'via Blog this'
"Qatari stocks led regional gains on Monday, with other markets generally subdued amid sluggish trading volumes during Ramadan. The Qatar index was up 1.2 percent in early trading, with Qatar National Bank rising by 2.9 percent. The region’s largest bank has been bolstered in recent months by its move to increase its foreign ownership ceiling to 49 percent from 25 percent to boost its weighting on global indexes."
'via Blog this'
Sunday, 27 May 2018
Saudi Arabia set to win MSCI emerging market status in June, says EFG Hermes - The National
Saudi Arabia set to win MSCI emerging market status in June, says EFG Hermes - The National:
"Saudi Arabia has a 100 per cent probability of being included in the MSCI’s emerging market index next month, after the kingdom was put on a watchlist for inclusion last year, according to investment bank EFG Hermes. “We see no reason why MSCI would not upgrade Saudi Arabia to emerging markets status this June,” the analysis on Sunday said. Index compiler MSCI is expected to announce a decision on whether to upgrade Saudi stocks to EM (emerging market) status next month, a move that would help the country attract billions of dollars into the Middle East and North Africa (Mena)’s biggest stock exchange, which has a market capitalisation of $500 billion."
'via Blog this'
"Saudi Arabia has a 100 per cent probability of being included in the MSCI’s emerging market index next month, after the kingdom was put on a watchlist for inclusion last year, according to investment bank EFG Hermes. “We see no reason why MSCI would not upgrade Saudi Arabia to emerging markets status this June,” the analysis on Sunday said. Index compiler MSCI is expected to announce a decision on whether to upgrade Saudi stocks to EM (emerging market) status next month, a move that would help the country attract billions of dollars into the Middle East and North Africa (Mena)’s biggest stock exchange, which has a market capitalisation of $500 billion."
'via Blog this'
Iran sanctions shadow falls on smaller German banks
Iran sanctions shadow falls on smaller German banks:
"Germany’s biggest lenders have shied away from business with Iran after past penalties for breaching US sanctions, but smaller banks have leapt on opportunities afforded by the nuclear deal rejected by Donald Trump.
There are just months to go until a November deadline issued by Washington after the US president abandoned a hard-fought agreement that loosened business restrictions on the Islamic Republic in exchange for Tehran giving up its pursuit of nuclear weapons.
But some firms plan to press on in their dealings with Iran despite the looming threat of penalties."
'via Blog this'
"Germany’s biggest lenders have shied away from business with Iran after past penalties for breaching US sanctions, but smaller banks have leapt on opportunities afforded by the nuclear deal rejected by Donald Trump.
There are just months to go until a November deadline issued by Washington after the US president abandoned a hard-fought agreement that loosened business restrictions on the Islamic Republic in exchange for Tehran giving up its pursuit of nuclear weapons.
But some firms plan to press on in their dealings with Iran despite the looming threat of penalties."
'via Blog this'
Saudi-Russia Oil Policy Shift Sets Stage for Tense OPEC Meeting - Bloomberg
Saudi-Russia Oil Policy Shift Sets Stage for Tense OPEC Meeting - Bloomberg:
"When Saudi Arabia and Russia announced a new policy to revive oil production last week, one thing was missing: most of the other partners in their grand coalition.
With oil supplies tightening and prices soaring, the two countries agreed to restore some of the output they halted as part of an accord with 22 other producers, drawn from the Organization of Petroleum Exporting Countries and beyond. The trouble is, officials from several producers, both inside OPEC and outside, said they disapproved of the proposal to raise output and saw difficulties in reaching a consensus when they meet in Vienna next month.
“It might be a contentious meeting,” said Ed Morse, head of commodities research at Citigroup Inc. in New York."
'via Blog this'
"When Saudi Arabia and Russia announced a new policy to revive oil production last week, one thing was missing: most of the other partners in their grand coalition.
With oil supplies tightening and prices soaring, the two countries agreed to restore some of the output they halted as part of an accord with 22 other producers, drawn from the Organization of Petroleum Exporting Countries and beyond. The trouble is, officials from several producers, both inside OPEC and outside, said they disapproved of the proposal to raise output and saw difficulties in reaching a consensus when they meet in Vienna next month.
“It might be a contentious meeting,” said Ed Morse, head of commodities research at Citigroup Inc. in New York."
'via Blog this'
Gulf Capital targets Middle East's new oil in consumer boom | Reuters
Gulf Capital targets Middle East's new oil in consumer boom | Reuters:
"Abu Dhabi-based Gulf Capital aims to invest $350 million over the next two years in areas such as consumer-led sectors and renewable energy, in a shift away from oil and gas and infrastructure. “The new oil in this region is the consumer. We have the youngest, fastest-growing and wealthiest consumer society, so there are huge opportunities investing in fast-growing, consumer-led sectors,” Karim El Solh told Reuters. Earlier this month, the private equity firm bought a stake in Geidea, the leading provider of electronic payment solutions in Saudi Arabia, for a deal value exceeding 1 billion riyals ($267 million)."
'via Blog this'
"Abu Dhabi-based Gulf Capital aims to invest $350 million over the next two years in areas such as consumer-led sectors and renewable energy, in a shift away from oil and gas and infrastructure. “The new oil in this region is the consumer. We have the youngest, fastest-growing and wealthiest consumer society, so there are huge opportunities investing in fast-growing, consumer-led sectors,” Karim El Solh told Reuters. Earlier this month, the private equity firm bought a stake in Geidea, the leading provider of electronic payment solutions in Saudi Arabia, for a deal value exceeding 1 billion riyals ($267 million)."
'via Blog this'
MIDEAST STOCKS-Oil price dip pressures Saudi index | Reuters
MIDEAST STOCKS-Oil price dip pressures Saudi index | Reuters:
"Saudi stocks slid below a key barrier on Sunday, hurt by the latest drop in oil prices and concerns over valuations of blue-chip companies, while property and banking shares slipped in Dubai and Abu Dhabi after big gains last week. The Saudi index dropped 0.8 percent to 7,972 points, below the psychological barrer of 8,000 points. Oil refiner Petro Rabigh fell 1.1 percent and property company Dar Al Arkan slid by 3.3 percent. “It appears the market is reacting negatively to the decline in international oil prices,” said Muhammad Faisal Potrik, head of research at Riyad Capital. "
'via Blog this'
"Saudi stocks slid below a key barrier on Sunday, hurt by the latest drop in oil prices and concerns over valuations of blue-chip companies, while property and banking shares slipped in Dubai and Abu Dhabi after big gains last week. The Saudi index dropped 0.8 percent to 7,972 points, below the psychological barrer of 8,000 points. Oil refiner Petro Rabigh fell 1.1 percent and property company Dar Al Arkan slid by 3.3 percent. “It appears the market is reacting negatively to the decline in international oil prices,” said Muhammad Faisal Potrik, head of research at Riyad Capital. "
'via Blog this'
Saudi dairy firm Almarai plans $2.8 billion five-year capital investment | Reuters
Saudi dairy firm Almarai plans $2.8 billion five-year capital investment | Reuters:
"Saudi Arabia’s Almarai 2280.SE, the Gulf’s largest dairy company, plans to spend 10.6 billion riyals ($2.8 billion) in capital investment under a five year business plan aimed at boosting its efficiency and expanding its geographic footprint.
The investment for the period from 2019 to 2023 will be financed through growing operating cash flow, bank funding, local and international sukuk programs, as well as the Saudi Industrial Development Fund and the Agricultural Development Fund, it said.
“Given the persistent challenging economic conditions across the region, the focus on efficiency and cost optimization measures will continue throughout the plan period to ensure continuous competitive advantage,” the company said in a statement. "
'via Blog this'
"Saudi Arabia’s Almarai 2280.SE, the Gulf’s largest dairy company, plans to spend 10.6 billion riyals ($2.8 billion) in capital investment under a five year business plan aimed at boosting its efficiency and expanding its geographic footprint.
The investment for the period from 2019 to 2023 will be financed through growing operating cash flow, bank funding, local and international sukuk programs, as well as the Saudi Industrial Development Fund and the Agricultural Development Fund, it said.
“Given the persistent challenging economic conditions across the region, the focus on efficiency and cost optimization measures will continue throughout the plan period to ensure continuous competitive advantage,” the company said in a statement. "
'via Blog this'
MIDEAST STOCKS-Gulf stocks hit by real estate and bank reversal | Reuters
MIDEAST STOCKS-Gulf stocks hit by real estate and bank reversal | Reuters:
"Gulf markets made a tentative start to the week, with Dubai and Abu Dhabi stocks weighed down on Sunday by profit taking in property and banking shares, which made big gains last week. The Dubai index dropped 0.4 percent with shares in Emaar Properties down nearly 1 percent at 5.14 dirhams ($1.40). The stock had risen to an intraday high of 5.42 dirhams on May 21 after a decision of the United Arab Emirates to grant residency visas of up to 10 years to investors and specialists."
'via Blog this'
"Gulf markets made a tentative start to the week, with Dubai and Abu Dhabi stocks weighed down on Sunday by profit taking in property and banking shares, which made big gains last week. The Dubai index dropped 0.4 percent with shares in Emaar Properties down nearly 1 percent at 5.14 dirhams ($1.40). The stock had risen to an intraday high of 5.42 dirhams on May 21 after a decision of the United Arab Emirates to grant residency visas of up to 10 years to investors and specialists."
'via Blog this'
Saturday, 26 May 2018
Under Pressure From Trump, Saudis Put Brakes on Oil's Rally - Bloomberg
Under Pressure From Trump, Saudis Put Brakes on Oil's Rally - Bloomberg:
"The world’s largest oil exporter just made quite a policy swerve. Within six weeks, Saudi Arabia has gone from advocating higher prices to trying to stop the rally at $80 a barrel. The U-turn scrambled the outlook for oil markets, hit the share prices of oil majors and shale producers and set up a diplomatic wrangle with other members of the Organization of Petroleum Exporting Countries. What changed? The supply threats posed by the re-imposition of U.S. sanctions on Iran oil exports earlier this month and the quickening collapse of Venezuela’s energy industry are both part of the answer, but they’re secondary to Donald Trump. On April 20, the president took to Twitter to lambaste the cartel’s push for higher prices. "Looks like OPEC is at it again," he tweeted. "Oil prices are artificially Very High!""
'via Blog this'
"The world’s largest oil exporter just made quite a policy swerve. Within six weeks, Saudi Arabia has gone from advocating higher prices to trying to stop the rally at $80 a barrel. The U-turn scrambled the outlook for oil markets, hit the share prices of oil majors and shale producers and set up a diplomatic wrangle with other members of the Organization of Petroleum Exporting Countries. What changed? The supply threats posed by the re-imposition of U.S. sanctions on Iran oil exports earlier this month and the quickening collapse of Venezuela’s energy industry are both part of the answer, but they’re secondary to Donald Trump. On April 20, the president took to Twitter to lambaste the cartel’s push for higher prices. "Looks like OPEC is at it again," he tweeted. "Oil prices are artificially Very High!""
'via Blog this'
Saudi minister Al-Falih says Aramco IPO likely in 2019 | ZAWYA MENA Edition
Saudi minister Al-Falih says Aramco IPO likely in 2019 | ZAWYA MENA Edition:
"Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.
“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.
“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”
"
'via Blog this'
"Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.
“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.
“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”
"
'via Blog this'
Friday, 25 May 2018
Exclusive: OPEC, Russia discuss raising oil output by about 1 million barrels per day - sources | Reuters
Exclusive: OPEC, Russia discuss raising oil output by about 1 million barrels per day - sources | Reuters:
"Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil output by around 1 million barrels per day (bpd), easing 17 months of strict supply curbs amid concerns that a price rally has gone too far, sources familiar with the matter said.
Such an increase would bring compliance with agreed supply curbs down to 100 percent from April’s level of around 152 percent, the sources said.
The initial talks are being led by the energy ministers of OPEC kingpin Saudi Arabia and Russia at St. Petersburg this week along with their counterpart from the United Arab Emirates, which holds the OPEC presidency this year, the sources said. "
'via Blog this'
"Saudi Arabia and Russia are discussing raising OPEC and non-OPEC oil output by around 1 million barrels per day (bpd), easing 17 months of strict supply curbs amid concerns that a price rally has gone too far, sources familiar with the matter said.
Such an increase would bring compliance with agreed supply curbs down to 100 percent from April’s level of around 152 percent, the sources said.
The initial talks are being led by the energy ministers of OPEC kingpin Saudi Arabia and Russia at St. Petersburg this week along with their counterpart from the United Arab Emirates, which holds the OPEC presidency this year, the sources said. "
'via Blog this'
Thursday, 24 May 2018
Committee to decide on UAE industries open to full foreign ownership
Committee to decide on UAE industries open to full foreign ownership:
"The UAE’s new law enabling foreigners to own 100 percent of onshore companies will be limited to specific industries deemed essential to the country’s economy, according to a senior government official.
Abdulla Al-Saleh, undersecretary for foreign trade & industry at the UAE’s Ministry of Economy, told Bloomberg that a final decision had not been taken on what industries to include in this week’s landmark decision to allow foreigners to fully own non-free zone companies.
Al-Saleh said a committee — made up of representatives of the country’s seven emirates — would make a decision on which industries to initially include, and would add further industries and companies in the future."
'via Blog this'
"The UAE’s new law enabling foreigners to own 100 percent of onshore companies will be limited to specific industries deemed essential to the country’s economy, according to a senior government official.
Abdulla Al-Saleh, undersecretary for foreign trade & industry at the UAE’s Ministry of Economy, told Bloomberg that a final decision had not been taken on what industries to include in this week’s landmark decision to allow foreigners to fully own non-free zone companies.
Al-Saleh said a committee — made up of representatives of the country’s seven emirates — would make a decision on which industries to initially include, and would add further industries and companies in the future."
'via Blog this'
Financial crime leads to billions of lost business in Middle East, survey finds
Financial crime leads to billions of lost business in Middle East, survey finds:
"Middle Eastern companies are losing billions of dollars in business opportunities because of fears about financial crime, according to a Thomson Reuters survey published on Thursday. Concern about the possibility of severe financial and reputational damage due to regulatory breaches leads foreign investors and firms to shun companies and entire regions where they see “heightened risk.” In the Middle East and North Africa (MENA), 77 percent of survey respondents said that they deliberately avoided customers, suppliers, countries or industries which they viewed as most exposed to financial crime."
'via Blog this'
"Middle Eastern companies are losing billions of dollars in business opportunities because of fears about financial crime, according to a Thomson Reuters survey published on Thursday. Concern about the possibility of severe financial and reputational damage due to regulatory breaches leads foreign investors and firms to shun companies and entire regions where they see “heightened risk.” In the Middle East and North Africa (MENA), 77 percent of survey respondents said that they deliberately avoided customers, suppliers, countries or industries which they viewed as most exposed to financial crime."
'via Blog this'
KPMG Is Said to Review Its Audits of Dubai Buyout Firm Abraaj - Bloomberg
KPMG Is Said to Review Its Audits of Dubai Buyout Firm Abraaj - Bloomberg:
"KPMG LLP is conducting an internal review into its audits of embattled Middle East buyout firm Abraaj Group following the alleged misuse of money, according to people with knowledge of the matter. The accounting firm’s U.K. branch is looking into its examination of Abraaj and its related companies for any potential irregularities in the valuation of assets by KPMG’s Middle East division, the people said, asking not to be identified because the information is private. KPMG is also studying its examination of Abraaj’s $1 billion health-care fund, which was completed in February, they said. The reviews are ongoing and the outcome isn’t clear, the people said. While KPMG said it couldn’t comment on the specifics of the matter because of client confidentiality, a spokesman added that KPMG has taken steps to ensure that investors in the fund have had the opportunity to receive a copy of the KPMG U.A.E. report from February to “see for themselves what it says.”"
'via Blog this'
"KPMG LLP is conducting an internal review into its audits of embattled Middle East buyout firm Abraaj Group following the alleged misuse of money, according to people with knowledge of the matter. The accounting firm’s U.K. branch is looking into its examination of Abraaj and its related companies for any potential irregularities in the valuation of assets by KPMG’s Middle East division, the people said, asking not to be identified because the information is private. KPMG is also studying its examination of Abraaj’s $1 billion health-care fund, which was completed in February, they said. The reviews are ongoing and the outcome isn’t clear, the people said. While KPMG said it couldn’t comment on the specifics of the matter because of client confidentiality, a spokesman added that KPMG has taken steps to ensure that investors in the fund have had the opportunity to receive a copy of the KPMG U.A.E. report from February to “see for themselves what it says.”"
'via Blog this'
Oil Falls Most in Two Weeks as Phase Out of Supply Cuts Looms - Bloomberg
Oil Falls Most in Two Weeks as Phase Out of Supply Cuts Looms - Bloomberg:
"Oil prices slid the most in more than two weeks after Russia signaled that phasing out historic supply curbs that eliminated a worldwide glut may be on the table. West Texas Intermediate futures fell 1.6 percent on Thursday, extending the pullback from a three-year high. Russia and the Organization of Petroleum Exporting Countries will discuss whether it’s appropriate to scale back output cuts, Russian Energy Minister Alexander Novak said in St. Petersburg, adding that Russia and Saudi Arabia agree market conditions will dictate any decision. Russia and allied oil producers are broaching the possibility of easing output limits at a time when American shale drillers are pumping record amounts of crude. Still, the dual threat of supply disruptions from Iran and Venezuela -- which together account for about 14 percent of OPEC’s production -- may arrest any steep price slide."
'via Blog this'
"Oil prices slid the most in more than two weeks after Russia signaled that phasing out historic supply curbs that eliminated a worldwide glut may be on the table. West Texas Intermediate futures fell 1.6 percent on Thursday, extending the pullback from a three-year high. Russia and the Organization of Petroleum Exporting Countries will discuss whether it’s appropriate to scale back output cuts, Russian Energy Minister Alexander Novak said in St. Petersburg, adding that Russia and Saudi Arabia agree market conditions will dictate any decision. Russia and allied oil producers are broaching the possibility of easing output limits at a time when American shale drillers are pumping record amounts of crude. Still, the dual threat of supply disruptions from Iran and Venezuela -- which together account for about 14 percent of OPEC’s production -- may arrest any steep price slide."
'via Blog this'
Exclusive: Saudi Binladin Group to be slimmed down, renamed: sources | Reuters
Exclusive: Saudi Binladin Group to be slimmed down, renamed: sources | Reuters:
"Saudi Binladin Group will be slimmed down and renamed, six sources familiar with the matter said, after the government seized management control of the construction giant from family members that were swept up in an anti-graft drive. The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent. The company, crucial to the state’s plans for major tourism and infrastructure projects, is now being run by a five-member committee appointed by the government to oversee the shake-up."
'via Blog this'
"Saudi Binladin Group will be slimmed down and renamed, six sources familiar with the matter said, after the government seized management control of the construction giant from family members that were swept up in an anti-graft drive. The moves would be the first in a broad restructuring planned for Saudi Arabia’s biggest builder as Riyadh takes a stake of at least 35 percent. The company, crucial to the state’s plans for major tourism and infrastructure projects, is now being run by a five-member committee appointed by the government to oversee the shake-up."
'via Blog this'
MIDEAST STOCKS-Qatar market up on foreign ownership hopes, other markets flat | Reuters
MIDEAST STOCKS-Qatar market up on foreign ownership hopes, other markets flat | Reuters:
"Qatari stocks led regional gains on Thursday after the government announced it was moving ahead with a draft law to allow full foreign ownership of companies.
Qatar’s index rose 0.6 percent, despite lingering questions about how the plan differed from a similar draft law proposed in 2016. Non-Qatari investors would still be limited to 49 percent stakes in listed companies.
Gains were led by Qatar Islamic Bank, which rose 2.1 percent."
'via Blog this'
"Qatari stocks led regional gains on Thursday after the government announced it was moving ahead with a draft law to allow full foreign ownership of companies.
Qatar’s index rose 0.6 percent, despite lingering questions about how the plan differed from a similar draft law proposed in 2016. Non-Qatari investors would still be limited to 49 percent stakes in listed companies.
Gains were led by Qatar Islamic Bank, which rose 2.1 percent."
'via Blog this'
Nasdaq Dubai's move to offer Saudi futures welcomed by market analysts | ZAWYA MENA Edition
Nasdaq Dubai's move to offer Saudi futures welcomed by market analysts | ZAWYA MENA Edition:
"The announcement by Nasdaq Dubai on Monday that it will begin offering futures contracts on some of Saudi Arabia's biggest stocks has been welcomed by market participants, who have told Zawya that they expect trading in these to be more robust than the futures trades that have so far taken place with stocks in the United Arab Emirates.
Nasdaq Dubai announced on Monday that it "is preparing to launch equity futures on leading companies listed in Saudi Arabia" in the third quarter of 2018, but did not give an exact date.
It said in a press statement that futures contracts would be offered on "some of the Middle East’s largest businesses active in sectors including petrochemicals, real estate, banking and transport", but did not name the firms for whom futures contracts will be created."
'via Blog this'
"The announcement by Nasdaq Dubai on Monday that it will begin offering futures contracts on some of Saudi Arabia's biggest stocks has been welcomed by market participants, who have told Zawya that they expect trading in these to be more robust than the futures trades that have so far taken place with stocks in the United Arab Emirates.
Nasdaq Dubai announced on Monday that it "is preparing to launch equity futures on leading companies listed in Saudi Arabia" in the third quarter of 2018, but did not give an exact date.
It said in a press statement that futures contracts would be offered on "some of the Middle East’s largest businesses active in sectors including petrochemicals, real estate, banking and transport", but did not name the firms for whom futures contracts will be created."
'via Blog this'
Russia and Saudi to discuss response to oil rally
Russia and Saudi to discuss response to oil rally:
"Russia and Saudi Arabia will discuss how to respond to the recent spike in global oil prices, Russia’s energy minister has said, adding that the two countries, which have brokered a global oil production deal, held a “common position”. Ahead of the US’s withdrawal from the Iranian nuclear deal, the Trump administration had held discussions with big producer countries, widely believed to have included Saudi Arabia, about stepping in to alleviate any market shortage and price spikes stemming from a drop in Iranian exports. “I think we have a common position here with our colleagues from Saudi Arabia, as before we have to look at the situation on the market, we have all the tools for responding and making decisions, so we just need to look, assess, exchange opinions - what is the current the situation, what is the forecast for three to six months,” Alexander Novak told reporters."
'via Blog this'
"Russia and Saudi Arabia will discuss how to respond to the recent spike in global oil prices, Russia’s energy minister has said, adding that the two countries, which have brokered a global oil production deal, held a “common position”. Ahead of the US’s withdrawal from the Iranian nuclear deal, the Trump administration had held discussions with big producer countries, widely believed to have included Saudi Arabia, about stepping in to alleviate any market shortage and price spikes stemming from a drop in Iranian exports. “I think we have a common position here with our colleagues from Saudi Arabia, as before we have to look at the situation on the market, we have all the tools for responding and making decisions, so we just need to look, assess, exchange opinions - what is the current the situation, what is the forecast for three to six months,” Alexander Novak told reporters."
'via Blog this'
UAE reboot raises concerns over ownership and tax | Arab News
UAE reboot raises concerns over ownership and tax | Arab News:
"At the iftar gathering held by the Dubai Media Office this week, all the conversation was about the big changes to the UAE’s visa and corporate structure announced a few days before, which were heralded as a “reboot” for the country’s economy and business environment.
It was on the mind of Sheikh Mohammed bin Rashid Al-Maktoum, prime minister of the UAE and ruler of Dubai, who has taken the lead in promoting the new measures. “Do you think it will work?” he asked when an iftar guest congratulated him on the initiatives.
It would have been a brave man or woman who answered “no,” but away from the formalities, there was much talk among expatriates and Emiratis about the pros and cons of the proposals, and the challenges they present for business in the UAE."
'via Blog this'
"At the iftar gathering held by the Dubai Media Office this week, all the conversation was about the big changes to the UAE’s visa and corporate structure announced a few days before, which were heralded as a “reboot” for the country’s economy and business environment.
It was on the mind of Sheikh Mohammed bin Rashid Al-Maktoum, prime minister of the UAE and ruler of Dubai, who has taken the lead in promoting the new measures. “Do you think it will work?” he asked when an iftar guest congratulated him on the initiatives.
It would have been a brave man or woman who answered “no,” but away from the formalities, there was much talk among expatriates and Emiratis about the pros and cons of the proposals, and the challenges they present for business in the UAE."
'via Blog this'
The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg
The Story of Malaysia's 1MDB, the Scandal That Shook the World of Finance - Bloomberg:
"Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under former Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions related to 1MDB. Najib was ousted from power in a May general election as the scandal contributed a voter backlash, ending his party’s 61 years of rule.
1. What is 1MDB?
It’s a government investment company -- full name, 1Malaysia Development Bhd. -- that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment."
'via Blog this'
"Malaysia’s state-owned investment fund, 1MDB, was supposed to attract foreign investment. Instead, it has spurred criminal and regulatory investigations around the world that have cast an unflattering spotlight on financial deal-making, election spending and political patronage under former Prime Minister Najib Razak. A Malaysian parliamentary committee identified at least $4.2 billion in irregular transactions related to 1MDB. Najib was ousted from power in a May general election as the scandal contributed a voter backlash, ending his party’s 61 years of rule.
1. What is 1MDB?
It’s a government investment company -- full name, 1Malaysia Development Bhd. -- that took shape in 2009 under Najib, who went on to lead its advisory board. Its early initiatives included buying privately owned power plants and planning a new financial district in Kuala Lumpur. The fund proved better at borrowing -- it accumulated $12 billion in debt -- than at luring large-scale investment."
'via Blog this'
Saudi billionaires' pockets hit after corruption crackdown - survey | ZAWYA MENA Edition
Saudi billionaires' pockets hit after corruption crackdown - survey | ZAWYA MENA Edition:
"The Middle East's billionaire population continued to rise last year, but those residing in Saudi Arabia took a hit to their income as the government rounded up key business and political figures in a crackdown on alleged corruption, according to a new report. The annual Billionaire Census produced by research consultancy Wealth-X found that the number of billionaires in the Middle East and North Africa grew to 189 (up 11.9 percent) in 2017, and that the wealth these individuals possess also grew by 2.1 percent to $474 billion. Both the United Arab Emirates and Saudi Arabia were among the top 10 nations for billionaire populations last year (joint ninth, with 62 billionaires each), and Dubai was one of the world's top cities where billionaires reside (ranked 8th, above Mumbai but below Singapore). However, while the combined wealth of those in the UAE grew by 4.3 percent, Saudi billionaires' wealth declined by 4.4 percent."
'via Blog this'
"The Middle East's billionaire population continued to rise last year, but those residing in Saudi Arabia took a hit to their income as the government rounded up key business and political figures in a crackdown on alleged corruption, according to a new report. The annual Billionaire Census produced by research consultancy Wealth-X found that the number of billionaires in the Middle East and North Africa grew to 189 (up 11.9 percent) in 2017, and that the wealth these individuals possess also grew by 2.1 percent to $474 billion. Both the United Arab Emirates and Saudi Arabia were among the top 10 nations for billionaire populations last year (joint ninth, with 62 billionaires each), and Dubai was one of the world's top cities where billionaires reside (ranked 8th, above Mumbai but below Singapore). However, while the combined wealth of those in the UAE grew by 4.3 percent, Saudi billionaires' wealth declined by 4.4 percent."
'via Blog this'
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters:
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters
UPDATE 1-UAE's Mubadala to take stake in subsidiary of Russia's Gazprom | Reuters:
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
"Abu Dhabi’s state-owned Mubadala Investment Company has acquired a 44 percent stake worth at least $271 million in an oil subsidiary of gas giant Gazprom, the Russian company said on Thursday. Middle East oil producers and Russia have forged closer ties since striking a deal to cut global crude output in a bid to remove a glut in supplies. The pact between OPEC, Russian and other producers has been implemented since January 2017. Gazprom said its board of directors had agreed to sell 44 percent of its subsidiary Gazprom Neft-Vostok to Mubadala Petroleum, which is owned by the Mubadala fund in the United Arab Emirates."
'via Blog this'
MIDEAST STOCKS-Gulf moves little early on, DXBE continues rebound in Dubai | Reuters
MIDEAST STOCKS-Gulf moves little early on, DXBE continues rebound in Dubai | Reuters:
"Gulf stock markets moved little in early trade on Thursday but in Dubai amusement park operator DXB Entertainments continued a rebound from record lows in heavy trade. The stock has been on a downtrend for almost two years because of losses suffered by the company and worse-than-expected attendance numbers. But it rose 3.4 percent to 0.424 dirham on Thursday morning, bringing its gains over the last four days to 16.5 percent. The median target price of seven analysts covering the stock is 0.73 dirham, according to Thomson Reuters data. The strength of DXB Entertainments helped the Dubai stock index rise 0.2 percent but most of the rest of the market was sluggish. Dubai property developers surged early this week after the United Arab Emirates cabinet decided to grant residency visas of up to 10 years to investors and some professionals. But the stocks have since lost momentum because of a lack of details of the plan, and uncertainty over whether it will make much difference to demand for local property. In Abu Dhabi, the index climbed 0.3 percent as energy investment firm TAQA jumped 6.6 percent; it is up 136 percent year-to-date on the back of strong oil prices."
'via Blog this'
"Gulf stock markets moved little in early trade on Thursday but in Dubai amusement park operator DXB Entertainments continued a rebound from record lows in heavy trade. The stock has been on a downtrend for almost two years because of losses suffered by the company and worse-than-expected attendance numbers. But it rose 3.4 percent to 0.424 dirham on Thursday morning, bringing its gains over the last four days to 16.5 percent. The median target price of seven analysts covering the stock is 0.73 dirham, according to Thomson Reuters data. The strength of DXB Entertainments helped the Dubai stock index rise 0.2 percent but most of the rest of the market was sluggish. Dubai property developers surged early this week after the United Arab Emirates cabinet decided to grant residency visas of up to 10 years to investors and some professionals. But the stocks have since lost momentum because of a lack of details of the plan, and uncertainty over whether it will make much difference to demand for local property. In Abu Dhabi, the index climbed 0.3 percent as energy investment firm TAQA jumped 6.6 percent; it is up 136 percent year-to-date on the back of strong oil prices."
'via Blog this'
The $100 a Barrel Oil Wager Comes Back to the Options Market - Bloomberg
The $100 a Barrel Oil Wager Comes Back to the Options Market - Bloomberg:
"Some options traders are betting on $100 oil again.
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months."
'via Blog this'
"Some options traders are betting on $100 oil again.
Whether it’s the specter of sanctions on Iran, Venezuela’s output plunge, or a momentum play on the back of the past year’s 46 percent surge in Brent, there are now the equivalent of about 93 million barrels wagering on the global benchmark hitting $100 at some point in the next 12 months."
'via Blog this'
Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle - Bloomberg
Qatari Lender Closes Gap on Abu Dhabi Rival in Mideast Shuffle - Bloomberg:
"Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock. A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year. The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index."
'via Blog this'
"Qatar National Bank QPSC is no longer being punished for a boycott imposed on the country by some of its neighbors as this month’s MSCI Inc. weighting change draws passive inflows to the stock. A 36 percent rally spurred by the decision to raise the foreign ownership limit in March means QNB now trades at a similar valuation to First Abu Dhabi Bank PJSC for the first time in more than a year. FAB had become one of the shares of choice in the United Arab Emirates after a deal that created the country’s biggest lender last year. The estimated price-to-earnings ratio for the Emirati bank has slipped to 10.3, matching the level for QNB, the dominant stock in Qatar’s benchmark index."
'via Blog this'
U.A.E. Foreign Ownership Law May Be More Limited Than You Think - Bloomberg
U.A.E. Foreign Ownership Law May Be More Limited Than You Think - Bloomberg:
"A landmark law that will allow foreign investors to own 100 percent of companies in the United Arab Emirates will be limited to specific industries deemed essential to the second-biggest Arab economy, a government official said on Wednesday.
Authorities are still weighing what industries are to be included in the law, and the decision will be based on factors such as the ability to create jobs and transfer technology, according to Abdulla Al Saleh, undersecretary for foreign trade & industry at the Economy Ministry.
Presently, foreigners can fully own a company if it’s located in a free zone. The changes, which also include offering some foreigners long-term residency permits, will take effect by the end of this year, the government said on Sunday."
'via Blog this'
"A landmark law that will allow foreign investors to own 100 percent of companies in the United Arab Emirates will be limited to specific industries deemed essential to the second-biggest Arab economy, a government official said on Wednesday.
Authorities are still weighing what industries are to be included in the law, and the decision will be based on factors such as the ability to create jobs and transfer technology, according to Abdulla Al Saleh, undersecretary for foreign trade & industry at the Economy Ministry.
Presently, foreigners can fully own a company if it’s located in a free zone. The changes, which also include offering some foreigners long-term residency permits, will take effect by the end of this year, the government said on Sunday."
'via Blog this'
Wednesday, 23 May 2018
Malaysia's 1MDB unable to repay debts; finance ministry picks PwC for audit | ZAWYA MENA Edition
Malaysia's 1MDB unable to repay debts; finance ministry picks PwC for audit | ZAWYA MENA Edition:
"Malaysia's newly appointed finance minister has asked for PricewaterhouseCoopers (PwC) to be appointed as auditors for scandal-hit state fund 1Malaysia Development Berhad (1MDB), he said on Wednesday.
1MDB is the subject of money laundering investigations in at least six countries, including the United States, Switzerland and Singapore.
Lim Guan Eng made the announcement in a statement issued after a meeting with some 1MDB directors and the fund's president, Arul Kanda."
'via Blog this'
"Malaysia's newly appointed finance minister has asked for PricewaterhouseCoopers (PwC) to be appointed as auditors for scandal-hit state fund 1Malaysia Development Berhad (1MDB), he said on Wednesday.
1MDB is the subject of money laundering investigations in at least six countries, including the United States, Switzerland and Singapore.
Lim Guan Eng made the announcement in a statement issued after a meeting with some 1MDB directors and the fund's president, Arul Kanda."
'via Blog this'
No compromise in sight on Iran nuclear deal, Germany says | Reuters
No compromise in sight on Iran nuclear deal, Germany says | Reuters:
"Europe and the United States remain deeply divided over how to proceed after Washington’s exit from the 2015 Iran nuclear accord, German Foreign Minister Heiko Maas said on Wednesday after back-to-back meetings with two senior U.S. officials.
Maas issued his sober assessment after a meeting with Secretary of State Mike Pompeo, saying the two officials had restated their known positions, but no new information emerged.
“I think we’re still far away from a compromise,” said Maas, who met earlier with John Bolton, U.S. President Donald Trump’s new security adviser, who is known for his hawkish views. “We’re pursuing two completely different paths.”
"
'via Blog this'
"Europe and the United States remain deeply divided over how to proceed after Washington’s exit from the 2015 Iran nuclear accord, German Foreign Minister Heiko Maas said on Wednesday after back-to-back meetings with two senior U.S. officials.
Maas issued his sober assessment after a meeting with Secretary of State Mike Pompeo, saying the two officials had restated their known positions, but no new information emerged.
“I think we’re still far away from a compromise,” said Maas, who met earlier with John Bolton, U.S. President Donald Trump’s new security adviser, who is known for his hawkish views. “We’re pursuing two completely different paths.”
"
'via Blog this'
Japan's Osaka Gas may sign new long-term LNG supplies to boost trading | Reuters
Japan's Osaka Gas may sign new long-term LNG supplies to boost trading | Reuters:
"Osaka Gas may sign new long-term liquefied natural gas (LNG) contracts as Japan’s second-biggest city gas supplier boosts its trading operations amid a shake-up in the Asian market for the fuel, a senior official said.
The comment signals there may be a willing buyer of long-term supplies in Japan, where utilities have been spurning such contracts because of a ready availability of the fuel on a short-term, or spot, basis, excess supplies and falling demand.
The resistance to long-term contracts among buyers in Japan, the world’s biggest importer of LNG, in recent years has been one factor for a dearth of new big export projects coming online, as developers need commitments over many years."
'via Blog this'
"Osaka Gas may sign new long-term liquefied natural gas (LNG) contracts as Japan’s second-biggest city gas supplier boosts its trading operations amid a shake-up in the Asian market for the fuel, a senior official said.
The comment signals there may be a willing buyer of long-term supplies in Japan, where utilities have been spurning such contracts because of a ready availability of the fuel on a short-term, or spot, basis, excess supplies and falling demand.
The resistance to long-term contracts among buyers in Japan, the world’s biggest importer of LNG, in recent years has been one factor for a dearth of new big export projects coming online, as developers need commitments over many years."
'via Blog this'
TPG in talks with Abraaj investors to manage healthcare fund assets -sources | Reuters
TPG in talks with Abraaj investors to manage healthcare fund assets -sources | Reuters:
"U.S. private equity firm TPG is in talks with investors in Abraaj’s healthcare fund to take over management of the assets of the $1 billion fund, which is embroiled in a scandal over alleged misuse of investor money, two sources familiar with the matter said.
These talks are separate from an ongoing sale process for Abraaj Investment Management Ltd (AIML), which has attracted bidders including Colony Northstar.
The talks come after Abraaj indicated it may step down as the manager of the fund following a dispute over how the Dubai-based private equity firm used the money of some of its investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), a member of World Bank Group."
'via Blog this'
"U.S. private equity firm TPG is in talks with investors in Abraaj’s healthcare fund to take over management of the assets of the $1 billion fund, which is embroiled in a scandal over alleged misuse of investor money, two sources familiar with the matter said.
These talks are separate from an ongoing sale process for Abraaj Investment Management Ltd (AIML), which has attracted bidders including Colony Northstar.
The talks come after Abraaj indicated it may step down as the manager of the fund following a dispute over how the Dubai-based private equity firm used the money of some of its investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), a member of World Bank Group."
'via Blog this'
Kuwait Petroleum plans $2.6 bln loan for LNG terminal -sources | Reuters
Kuwait Petroleum plans $2.6 bln loan for LNG terminal -sources | Reuters:
"A Kuwait Petroleum Corporation-owned firm plans to borrow up to $2.6 billion from banks and export credit agencies to build a liquefied natural gas import terminal, banking sources said.
Kuwait Integrated Petroleum Industries Company (KIPIC) will use the money raised to develop the terminal at Kuwait’s Al Zour complex, which also has a refinery and a petrochemical facility.
KPC did not respond to requests for comment on the planned loan for the LNG facility, which will be used to meet domestic demand for gas and is expected to be operating by 2020."
'via Blog this'
"A Kuwait Petroleum Corporation-owned firm plans to borrow up to $2.6 billion from banks and export credit agencies to build a liquefied natural gas import terminal, banking sources said.
Kuwait Integrated Petroleum Industries Company (KIPIC) will use the money raised to develop the terminal at Kuwait’s Al Zour complex, which also has a refinery and a petrochemical facility.
KPC did not respond to requests for comment on the planned loan for the LNG facility, which will be used to meet domestic demand for gas and is expected to be operating by 2020."
'via Blog this'
Cost of insuring Bahrain's debt jumps as deficit jitters increase | Reuters
Cost of insuring Bahrain's debt jumps as deficit jitters increase | Reuters:
"The cost of insuring Bahrain’s sovereign debt against default has jumped to near multi-year highs this week because of concern the country will lose access to international capital markets, bankers and debt traders said on Wednesday.
Bahrain credit default swaps soared to a 19-month high of 380 basis points on Tuesday from 283 bps at the end of April. On Wednesday, CDS pulled back slightly to 367 bps, implying a 23 percent chance of default in the next five years.
Their previous peak of 405 bps was reached in February 2016, when oil prices below $35 a barrel threatened Gulf economies. Oil is now around $80, but that is not easing worries about Bahrain."
'via Blog this'
"The cost of insuring Bahrain’s sovereign debt against default has jumped to near multi-year highs this week because of concern the country will lose access to international capital markets, bankers and debt traders said on Wednesday.
Bahrain credit default swaps soared to a 19-month high of 380 basis points on Tuesday from 283 bps at the end of April. On Wednesday, CDS pulled back slightly to 367 bps, implying a 23 percent chance of default in the next five years.
Their previous peak of 405 bps was reached in February 2016, when oil prices below $35 a barrel threatened Gulf economies. Oil is now around $80, but that is not easing worries about Bahrain."
'via Blog this'
IMF urges Saudi not to boost spending as oil rises as reforms progress | Reuters
IMF urges Saudi not to boost spending as oil rises as reforms progress | Reuters:
"Saudi Arabia’s economic reforms are going well, the International Monetary Fund said after annual consultations with authorities, urging the government not to boost spending in line with climbing oil prices.
“Saudi Arabia is making good progress in implementing its ambitious reform program under Vision 2030,” Tim Callen, head of an IMF team which held talks with Saudi officials over 12 days this month, said in a statement late on Tuesday.
He predicted economic growth would start picking up this year, after gross domestic product shrank last year for the first time since 2009. "
'via Blog this'
"Saudi Arabia’s economic reforms are going well, the International Monetary Fund said after annual consultations with authorities, urging the government not to boost spending in line with climbing oil prices.
“Saudi Arabia is making good progress in implementing its ambitious reform program under Vision 2030,” Tim Callen, head of an IMF team which held talks with Saudi officials over 12 days this month, said in a statement late on Tuesday.
He predicted economic growth would start picking up this year, after gross domestic product shrank last year for the first time since 2009. "
'via Blog this'
Pakistan hires UAE banks to raise $200 million loan | Reuters
Pakistan hires UAE banks to raise $200 million loan | Reuters:
"The government of Pakistan is raising a $200 million syndicated loan with three United Arab Emirates (UAE) banks, banking sources familiar with the matter said, as Islamabad clings to external funding to stave off the pressure of balance payments. The loan, with a one-year maturity, is being arranged by Commercial Bank of Dubai, Emirates NBD, and Noor Bank, said the sources. Pakistan needs to raise funds to offset a drop in international reserves and to fill a fiscal deficit which the International Monetary Fund estimates at 5.5 percent of gross domestic product this year."
'via Blog this'
"The government of Pakistan is raising a $200 million syndicated loan with three United Arab Emirates (UAE) banks, banking sources familiar with the matter said, as Islamabad clings to external funding to stave off the pressure of balance payments. The loan, with a one-year maturity, is being arranged by Commercial Bank of Dubai, Emirates NBD, and Noor Bank, said the sources. Pakistan needs to raise funds to offset a drop in international reserves and to fill a fiscal deficit which the International Monetary Fund estimates at 5.5 percent of gross domestic product this year."
'via Blog this'
MIDEAST STOCKS-Dubai market down on profit taking, other markets mixed | Reuters
MIDEAST STOCKS-Dubai market down on profit taking, other markets mixed | Reuters:
"The Dubai market closed lower on Wednesday, ending a two-day rally as investors took profit on a select number of stocks, while blue chips led by Jabal Omar pushed the Saudi market into weaker territory. Other markets were slightly higher, but volumes were generally low during the Muslim fasting month of Ramadan. The Saudi index was down 0.1 percent, with 98 declining stocks out of 181 stocks traded during the session."
'via Blog this'
"The Dubai market closed lower on Wednesday, ending a two-day rally as investors took profit on a select number of stocks, while blue chips led by Jabal Omar pushed the Saudi market into weaker territory. Other markets were slightly higher, but volumes were generally low during the Muslim fasting month of Ramadan. The Saudi index was down 0.1 percent, with 98 declining stocks out of 181 stocks traded during the session."
'via Blog this'
Emirates NBD's Turkish deal riskier than it looks | ZAWYA MENA Edition
Emirates NBD's Turkish deal riskier than it looks | ZAWYA MENA Edition:
" Emirates NBD is making a virtue out of Turkish turbulence. The United Arab Emirates lender has agreed to pay Russia’s Sberbank 14.6 billion lira ($3.2 billion) for Istanbul-based Denizbank. In the long term, NBD should benefit from diversification and increased trade between Turkey and the Arab world. Right now, erratic politics and economic decline mean it is by no means a bargain.
Sberbank, Russia’s largest bank by assets, bought Turkey’s fifth-largest bank by assets in 2012 signaling intentions to expand abroad. Western sanctions have halted all that. Morgan Stanley reckons Sberbank breaks even, but can also reallocate capital to Russia, where it makes a return on equity exceeding 20 percent.
NBD is paying a small premium to Denizbank’s 2017 book value. That looks cheap given Denizbank made a 15 percent and 13 percent return on equity over the last two years respectively, and acquisitions of fast-growing emerging markets lenders are often done at multiples of book. NBD also advances its strategy – roughly 30 percent of group revenue will now be overseas – and can link local clients doing business in Turkey into a network stretching via Dubai into Saudi Arabia, Egypt and India."
'via Blog this'
" Emirates NBD is making a virtue out of Turkish turbulence. The United Arab Emirates lender has agreed to pay Russia’s Sberbank 14.6 billion lira ($3.2 billion) for Istanbul-based Denizbank. In the long term, NBD should benefit from diversification and increased trade between Turkey and the Arab world. Right now, erratic politics and economic decline mean it is by no means a bargain.
Sberbank, Russia’s largest bank by assets, bought Turkey’s fifth-largest bank by assets in 2012 signaling intentions to expand abroad. Western sanctions have halted all that. Morgan Stanley reckons Sberbank breaks even, but can also reallocate capital to Russia, where it makes a return on equity exceeding 20 percent.
NBD is paying a small premium to Denizbank’s 2017 book value. That looks cheap given Denizbank made a 15 percent and 13 percent return on equity over the last two years respectively, and acquisitions of fast-growing emerging markets lenders are often done at multiples of book. NBD also advances its strategy – roughly 30 percent of group revenue will now be overseas – and can link local clients doing business in Turkey into a network stretching via Dubai into Saudi Arabia, Egypt and India."
'via Blog this'
Public sector investor assets surge 7.3 percent to $36 trillion, biggest jump in 5 years | Reuters
Public sector investor assets surge 7.3 percent to $36 trillion, biggest jump in 5 years | Reuters:
"Public sector investor assets surged $2.5 trillion or 7.3 percent in 2017 to $36.2 trillion, the biggest jump in five years, an annual report showed on Wednesday, helped by stellar equity market gains and a gold price rise. The Official Monetary and Financial Institutions Forum (OMFIF) tracks the assets of 750 institutional investors such as central banks, sovereign wealth funds (SWFs) and public sector pension funds and ranks them by size in its Global Public Investor report. In this year’s report, OMFIF noted that one-fifth of the $2.5 trillion rise was concentrated in four institutions - Norges Bank Investment Management, the People’s Bank of China (PBOC), the Swiss National Bank and Japan’s Government Pension Investment Fund."
'via Blog this'
"Public sector investor assets surged $2.5 trillion or 7.3 percent in 2017 to $36.2 trillion, the biggest jump in five years, an annual report showed on Wednesday, helped by stellar equity market gains and a gold price rise. The Official Monetary and Financial Institutions Forum (OMFIF) tracks the assets of 750 institutional investors such as central banks, sovereign wealth funds (SWFs) and public sector pension funds and ranks them by size in its Global Public Investor report. In this year’s report, OMFIF noted that one-fifth of the $2.5 trillion rise was concentrated in four institutions - Norges Bank Investment Management, the People’s Bank of China (PBOC), the Swiss National Bank and Japan’s Government Pension Investment Fund."
'via Blog this'
IMF urges Saudi not to boost spending as oil rises as reforms progress | Reuters
IMF urges Saudi not to boost spending as oil rises as reforms progress | Reuters:
"Saudi Arabia’s economic reforms are going well, the International Monetary Fund said after annual consultations with authorities, urging the government not to boost spending in line with climbing oil prices.
“Saudi Arabia is making good progress in implementing its ambitious reform program under Vision 2030,” Tim Callen, head of an IMF team which held talks with Saudi officials over 12 days this month, said in a statement late on Tuesday.
He predicted economic growth would start picking up this year, after gross domestic product shrank last year for the first time since 2009.
"
'via Blog this'
"Saudi Arabia’s economic reforms are going well, the International Monetary Fund said after annual consultations with authorities, urging the government not to boost spending in line with climbing oil prices.
“Saudi Arabia is making good progress in implementing its ambitious reform program under Vision 2030,” Tim Callen, head of an IMF team which held talks with Saudi officials over 12 days this month, said in a statement late on Tuesday.
He predicted economic growth would start picking up this year, after gross domestic product shrank last year for the first time since 2009.
"
'via Blog this'
MIDEAST STOCKS-Dubai markets flat after 2-day rally, SABIC pulls Saudi down | Reuters
MIDEAST STOCKS-Dubai markets flat after 2-day rally, SABIC pulls Saudi down | Reuters:
"Dubai markets edged lower in early trading on Wednesday as investors took profit from a two-day rally, while petrochemical stocks took a hit from easing oil prices and pushed the Saudi market into a weaker territory. Other markets were slightly higher, but volumes were generally low during the Muslim fasting month of Ramadan. The Saudi index was down 0.2 percent, with 63 declining stocks out of 124 stocks being traded."
'via Blog this'
"Dubai markets edged lower in early trading on Wednesday as investors took profit from a two-day rally, while petrochemical stocks took a hit from easing oil prices and pushed the Saudi market into a weaker territory. Other markets were slightly higher, but volumes were generally low during the Muslim fasting month of Ramadan. The Saudi index was down 0.2 percent, with 63 declining stocks out of 124 stocks being traded."
'via Blog this'
Tuesday, 22 May 2018
Kushner's Cadre Is in Talks With Saudi-Backed SoftBank Fund - Bloomberg
Kushner's Cadre Is in Talks With Saudi-Backed SoftBank Fund - Bloomberg:
"Cadre, a real estate technology startup co-founded and partly owned by White House senior adviser Jared Kushner, is discussing an investment of at least $100 million from a private fund that receives much of its capital from the governments of Saudi Arabia and the United Arab Emirates, according to people familiar with the discussions.
A top executive of Cadre, the people said, has met privately in recent months with representatives of the SoftBank Vision Fund, a technology investment vehicle that gets almost half of its $100 billion from the Saudi government’s Public Investment Fund. The United Arab Emirates has put at least $15 billion into the Vision Fund through its sovereign wealth fund as well.
Kushner doesn’t play an active role in Cadre’s operations, company officials say when asked about the president’s son-in-law. But he hasn’t divested his Cadre stake, valued at $5 million to $25 million on his most recent financial disclosure form. People close to Cadre -- whose founders include Jared’s younger brother, Josh, and his Harvard classmate, Ryan Williams -- said that neither Kushner had taken part in the recent funding discussions with SoftBank. It was SoftBank that approached Cadre, they added."
'via Blog this'
"Cadre, a real estate technology startup co-founded and partly owned by White House senior adviser Jared Kushner, is discussing an investment of at least $100 million from a private fund that receives much of its capital from the governments of Saudi Arabia and the United Arab Emirates, according to people familiar with the discussions.
A top executive of Cadre, the people said, has met privately in recent months with representatives of the SoftBank Vision Fund, a technology investment vehicle that gets almost half of its $100 billion from the Saudi government’s Public Investment Fund. The United Arab Emirates has put at least $15 billion into the Vision Fund through its sovereign wealth fund as well.
Kushner doesn’t play an active role in Cadre’s operations, company officials say when asked about the president’s son-in-law. But he hasn’t divested his Cadre stake, valued at $5 million to $25 million on his most recent financial disclosure form. People close to Cadre -- whose founders include Jared’s younger brother, Josh, and his Harvard classmate, Ryan Williams -- said that neither Kushner had taken part in the recent funding discussions with SoftBank. It was SoftBank that approached Cadre, they added."
'via Blog this'
Middle East Lenders Add Muscle With $8 Billion in Takeover Deals - Bloomberg
Middle East Lenders Add Muscle With $8 Billion in Takeover Deals - Bloomberg:
"The top ranks of Middle East banking is changing. In the past week alone, lenders in Saudi Arabia and Dubai have agreed to takeover deals worth just over $8 billion.
Saudi British Bank’s $5 billion all-stock deal to acquire Alawwal Bank last week will catapult the HSBC Holdings Plc-backed institution into one of the region’s top 10 lenders."
'via Blog this'
"The top ranks of Middle East banking is changing. In the past week alone, lenders in Saudi Arabia and Dubai have agreed to takeover deals worth just over $8 billion.
Saudi British Bank’s $5 billion all-stock deal to acquire Alawwal Bank last week will catapult the HSBC Holdings Plc-backed institution into one of the region’s top 10 lenders."
'via Blog this'
Banks Back Plan to Solve Turk Telekom Owner Debt - Bloomberg
Banks Back Plan to Solve Turk Telekom Owner Debt - Bloomberg:
"Banks that provided a $4.75 billion loan to the owner of Turk Telekomunikasyon AS are backing a proposal that would settle Turkey’s biggest default, people with knowledge of the matter said. Under the plan proposed by an advisory group for the lenders, creditors would get control of Ojer Telekomunikasyon AS, or Otas, which took out the loan, through a special purpose vehicle, said the people, asking not to be identified because the talks are private. Shares in the phone operator rose the most since it listed in 2008 as an agreement would end a year-long impasse between creditors and Turk Telekom. The companies have been locked in talks since Otas failed to pay a September 2016 installment on the loan, the country’s biggest ever syndicated facility. Banks, government officials and the companies were due to meet Tuesday to discuss the new proposal, the people said."
'via Blog this'
"Banks that provided a $4.75 billion loan to the owner of Turk Telekomunikasyon AS are backing a proposal that would settle Turkey’s biggest default, people with knowledge of the matter said. Under the plan proposed by an advisory group for the lenders, creditors would get control of Ojer Telekomunikasyon AS, or Otas, which took out the loan, through a special purpose vehicle, said the people, asking not to be identified because the talks are private. Shares in the phone operator rose the most since it listed in 2008 as an agreement would end a year-long impasse between creditors and Turk Telekom. The companies have been locked in talks since Otas failed to pay a September 2016 installment on the loan, the country’s biggest ever syndicated facility. Banks, government officials and the companies were due to meet Tuesday to discuss the new proposal, the people said."
'via Blog this'
Sovereign investor flows to global markets turn net positive in Q1 | ZAWYA MENA Edition
Sovereign investor flows to global markets turn net positive in Q1 | ZAWYA MENA Edition:
"Sovereign wealth fund (SWF) flows to stock and bond strategies managed by external asset managers turned net positive in the first quarter for the first time since 2014, data from research firm eVestment showed on Tuesday.
A net $4.3 billion was placed with third-party fund managers by sovereign investors in the first three months of 2018 compared with a net outflow of $8.3 billion in fourth quarter 2017, ending 14 consecutive quarters of net outflows.
The figures from eVestment, which collates data from about 4,400 firms managing money on behalf of institutional investors, showed that allocations to non-U.S. passive equity strategies were the main driver of the change."
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"Sovereign wealth fund (SWF) flows to stock and bond strategies managed by external asset managers turned net positive in the first quarter for the first time since 2014, data from research firm eVestment showed on Tuesday.
A net $4.3 billion was placed with third-party fund managers by sovereign investors in the first three months of 2018 compared with a net outflow of $8.3 billion in fourth quarter 2017, ending 14 consecutive quarters of net outflows.
The figures from eVestment, which collates data from about 4,400 firms managing money on behalf of institutional investors, showed that allocations to non-U.S. passive equity strategies were the main driver of the change."
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Banks' ploys on Gulf bond deals draw attention | Reuters
Banks' ploys on Gulf bond deals draw attention | Reuters:
"The way in which lead banks put orders into Middle East bond deals is coming under the spotlight, with some bankers arguing the practice is misleading investors as it is not clear how real those bids are. Order books containing lead orders is commonplace in the Middle East as banks use their financial firepower to muscle in on mandates. A $500 million five-year bond last week from Commercial Bank of Qatar, for example, had a $1 billion book with $200 million of lead interest made public during the deal’s execution. Often, though, the size of leads’ support is not disclosed. Furthermore, critics say, there is a distinction between an order from a lead bank’s treasury or trading operation reflecting genuine investor demand and one from the syndicate desk, which in essence is an underwriting position and therefore should not be included in the book."
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"The way in which lead banks put orders into Middle East bond deals is coming under the spotlight, with some bankers arguing the practice is misleading investors as it is not clear how real those bids are. Order books containing lead orders is commonplace in the Middle East as banks use their financial firepower to muscle in on mandates. A $500 million five-year bond last week from Commercial Bank of Qatar, for example, had a $1 billion book with $200 million of lead interest made public during the deal’s execution. Often, though, the size of leads’ support is not disclosed. Furthermore, critics say, there is a distinction between an order from a lead bank’s treasury or trading operation reflecting genuine investor demand and one from the syndicate desk, which in essence is an underwriting position and therefore should not be included in the book."
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