Kuwait to raise oil output by 85,000 bpd — energy minister:
Kuwait will raise oil output by 85,000 barrels per day (bpd)starting on Sunday, part of an agreement between OPEC and non-OPEC producers to increase production by one million bpd, Energy Minister Bakhit Al-Rashidi told a local newspaper on Saturday. “Kuwait will raise its oil production from tomorrow to 2.785 million barrels, a daily increase of 85,000 compared to May, based on last week’s production cut agreement,” Rashidi told Arabic-language daily Al-Rai. OPEC agreed with Russia and other oil-producing allies this month to raise output from July by about 1 million bpd.
Saturday 30 June 2018
New York's Plaza Hotel Has Third Suitor Join Battle for Control - Bloomberg
New York's Plaza Hotel Has Third Suitor Join Battle for Control - Bloomberg:
The storied New York Plaza hotel’s ownership drama has taken another turn. United Capital Real Estate Development Corp. has emerged as a third suitor for the property, according to court filings. United Capital Real Estate is suing Subrata Roy, chairman of Sahara India Pariwar, as well as its U.S. entity, the property’s majority owner, alleging that they breached an agreement by seeking a separate deal, and fraudulently induced United to enter into contracts, show proof of funds and place money in escrow, according to a complaint filed in New York state court on June 22. United Capital Real Estate is seeking damages of $1 billion plus interest and attorney costs. The complaint says it was also in contract to buy Sahara’s 85 percent stake in the Dream Downtown hotel, located between New York’s Meatpacking and Chelsea neighborhoods. It also says the sales included so-called "drag along" rights in which minority owners of the properties would have their rights extinguished, beyond receipt of proportionate net proceeds.
The storied New York Plaza hotel’s ownership drama has taken another turn. United Capital Real Estate Development Corp. has emerged as a third suitor for the property, according to court filings. United Capital Real Estate is suing Subrata Roy, chairman of Sahara India Pariwar, as well as its U.S. entity, the property’s majority owner, alleging that they breached an agreement by seeking a separate deal, and fraudulently induced United to enter into contracts, show proof of funds and place money in escrow, according to a complaint filed in New York state court on June 22. United Capital Real Estate is seeking damages of $1 billion plus interest and attorney costs. The complaint says it was also in contract to buy Sahara’s 85 percent stake in the Dream Downtown hotel, located between New York’s Meatpacking and Chelsea neighborhoods. It also says the sales included so-called "drag along" rights in which minority owners of the properties would have their rights extinguished, beyond receipt of proportionate net proceeds.
Iran's leaders seek ways to defend economy from U.S. sanctions | Reuters
Iran's leaders seek ways to defend economy from U.S. sanctions | Reuters:
Iran is studying ways to keep exporting oil and other measures to counter U.S. economic sanctions, state news agency IRNA reported on Saturday.
Since last month, when U.S. President Donald Trump pulled out of the nuclear deal which lifted most sanctions in 2015, the rial currency has dropped up to 40 percent in value, prompting protests by bazaar traders usually loyal to the Islamist rulers.
Speaking after three days of those protests, supreme leader Ayatollah Ali Khamenei said the U.S. sanctions were aimed at turning Iranians against their government.
Iran is studying ways to keep exporting oil and other measures to counter U.S. economic sanctions, state news agency IRNA reported on Saturday.
Since last month, when U.S. President Donald Trump pulled out of the nuclear deal which lifted most sanctions in 2015, the rial currency has dropped up to 40 percent in value, prompting protests by bazaar traders usually loyal to the Islamist rulers.
Speaking after three days of those protests, supreme leader Ayatollah Ali Khamenei said the U.S. sanctions were aimed at turning Iranians against their government.
Trump says Saudi king agreed to raise oil output by up to 2 million barrels | Reuters
Trump says Saudi king agreed to raise oil output by up to 2 million barrels | Reuters:
U.S. President Donald Trump said on Saturday that Saudi Arabia’s King Salman had agreed to his request to increase oil production “maybe up to 2,000,000 barrels,” an extraordinary amount not confirmed by the kingdom and which would push the OPEC leader to a level of production never tested before.
In an early morning tweet, Trump said Saudi Arabia’s expanded production would help offset a decline in supply from Iran, after the United States pulled out of the Iran nuclear deal in May and moved to reimpose oil sanctions.
“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference ... Prices to high! He has agreed!” Trump tweeted.
U.S. President Donald Trump said on Saturday that Saudi Arabia’s King Salman had agreed to his request to increase oil production “maybe up to 2,000,000 barrels,” an extraordinary amount not confirmed by the kingdom and which would push the OPEC leader to a level of production never tested before.
In an early morning tweet, Trump said Saudi Arabia’s expanded production would help offset a decline in supply from Iran, after the United States pulled out of the Iran nuclear deal in May and moved to reimpose oil sanctions.
“Just spoke to King Salman of Saudi Arabia and explained to him that, because of the turmoil & disfunction in Iran and Venezuela, I am asking that Saudi Arabia increase oil production, maybe up to 2,000,000 barrels, to make up the difference ... Prices to high! He has agreed!” Trump tweeted.
Union Properties unit ServeU to launch IPO in September | ZAWYA MENA Edition
Union Properties unit ServeU to launch IPO in September | ZAWYA MENA Edition:
Facilities management company ServeU, a subsidiary of Union Properties, will launch its IPO in September and aims to double the number of its workforce to 10,000 in the next couple of years through organic and inorganic measures, its general manager said.
"All the governance and strategies have been aligned to make sure that everything is in right place ahead of IPO which is planned for September this year and listing will be on the Dubai Financial Market. It is difficult to give the size of IPO or how much stake will be floated," Gary Reader told Khaleej Times in an interview.
It was Reader's first interview since taking over in January 2018.
Facilities management company ServeU, a subsidiary of Union Properties, will launch its IPO in September and aims to double the number of its workforce to 10,000 in the next couple of years through organic and inorganic measures, its general manager said.
"All the governance and strategies have been aligned to make sure that everything is in right place ahead of IPO which is planned for September this year and listing will be on the Dubai Financial Market. It is difficult to give the size of IPO or how much stake will be floated," Gary Reader told Khaleej Times in an interview.
It was Reader's first interview since taking over in January 2018.
Friday 29 June 2018
Anti-money laundering body gives Iran until October to complete reforms | Reuters
Anti-money laundering body gives Iran until October to complete reforms | Reuters:
An international group that monitors money laundering worldwide said on Friday Iran had until October to complete reforms that would bring it into line with global norms or face consequences that could further deter investors from the country.
Tehran has tried to attract foreign investors after completing a landmark 2015 agreement with the United States, Russia, China, France, Germany and Britain under which a number of sanctions were lifted in exchange for Iran agreeing to curbs on its nuclear program.
Iran has been trying to implement standards set by the Financial Action Task Force (FATF), a global group of government anti-money-laundering (AML) and counter financing of terrorism regimes (CFT), in the hope it will be removed from a blacklist that makes some foreign investors reluctant to deal with it.
An international group that monitors money laundering worldwide said on Friday Iran had until October to complete reforms that would bring it into line with global norms or face consequences that could further deter investors from the country.
Tehran has tried to attract foreign investors after completing a landmark 2015 agreement with the United States, Russia, China, France, Germany and Britain under which a number of sanctions were lifted in exchange for Iran agreeing to curbs on its nuclear program.
Iran has been trying to implement standards set by the Financial Action Task Force (FATF), a global group of government anti-money-laundering (AML) and counter financing of terrorism regimes (CFT), in the hope it will be removed from a blacklist that makes some foreign investors reluctant to deal with it.
Oil set for fourth winning quarter in a row | Financial Times
Oil set for fourth winning quarter in a row | Financial Times:
Oil keeps marching higher, with both US and international benchmarks on track for their fourth consecutive quarter in the black. West Texas Intermediate was eyeing a gain of about 14 per cent in the second quarter of 2018. That would give the US benchmark its longest back-to-back quarterly gains since 2009 through the first quarter of 2010, according to Thomson Reuters data. Most of the gains came in the month of June, with WTI posting a roughly 10 per cent advance during that time, compared to a 2.2 per cent dip in May. Year-to-date, US crude is up about 22 per cent, topping the 12.4 per cent gain notched for 2017.
Oil keeps marching higher, with both US and international benchmarks on track for their fourth consecutive quarter in the black. West Texas Intermediate was eyeing a gain of about 14 per cent in the second quarter of 2018. That would give the US benchmark its longest back-to-back quarterly gains since 2009 through the first quarter of 2010, according to Thomson Reuters data. Most of the gains came in the month of June, with WTI posting a roughly 10 per cent advance during that time, compared to a 2.2 per cent dip in May. Year-to-date, US crude is up about 22 per cent, topping the 12.4 per cent gain notched for 2017.
US reliance on Opec endures despite shale boom | Financial Times
US reliance on Opec endures despite shale boom | Financial Times:
Greg Abbott, governor of the state of Texas, hailed the US as an energy independent country last week, saying on Twitter it would “NEVER AGAIN” be beholden to foreign oil producers.
Yet the day before, Saudi Arabia — backed by Russia — pledged a “measurable” rise in output, largely in response to a request by the US to offset a loss in Iranian barrels after the reimposition of oil sanctions.
As the US tries to reset the Middle East, with the withdrawal from the nuclear deal with Iran a key element of its strategy, it is still turning to the energy might of traditional producers abroad.
Greg Abbott, governor of the state of Texas, hailed the US as an energy independent country last week, saying on Twitter it would “NEVER AGAIN” be beholden to foreign oil producers.
Yet the day before, Saudi Arabia — backed by Russia — pledged a “measurable” rise in output, largely in response to a request by the US to offset a loss in Iranian barrels after the reimposition of oil sanctions.
As the US tries to reset the Middle East, with the withdrawal from the nuclear deal with Iran a key element of its strategy, it is still turning to the energy might of traditional producers abroad.
Iran Is Running Out of Options on Oil - Bloomberg
Iran Is Running Out of Options on Oil - Bloomberg:
Iran’s position in the oil market is looking weaker than ever as a bruising OPEC meeting and tightening net of U.S. sanctions leave it with fewer friends and fleeing customers.
Tehran is getting hit from all sides. Washington is telling buyers to stop all purchases of the country’s crude, while OPEC and its allies are bowing to U.S. pressure to raise output and fill the gap. Iran may be left with few options beyond convincing China to buy more of its oil, risking over-reliance on what’s already its biggest customer.
“Iran is in a really horrible position right now,” said Sara Vakhshouri, head of Washington, D.C.-based consultant SVB Energy International. “There’s not really much Iran can do to maintain its export level.”
Iran’s position in the oil market is looking weaker than ever as a bruising OPEC meeting and tightening net of U.S. sanctions leave it with fewer friends and fleeing customers.
Tehran is getting hit from all sides. Washington is telling buyers to stop all purchases of the country’s crude, while OPEC and its allies are bowing to U.S. pressure to raise output and fill the gap. Iran may be left with few options beyond convincing China to buy more of its oil, risking over-reliance on what’s already its biggest customer.
“Iran is in a really horrible position right now,” said Sara Vakhshouri, head of Washington, D.C.-based consultant SVB Energy International. “There’s not really much Iran can do to maintain its export level.”
Saudi Tadawul's market cap reached $528.6bln in June | ZAWYA MENA Edition
Saudi Tadawul's market cap reached $528.6bln in June | ZAWYA MENA Edition:
The Saudi Stock Exchange (Tadawul) saw a positive performance in June.
The Tadawul All Shares Index (TASI) went up by 1.88% or 153.1 points and ended the month at the level of 8,314.19 points.
Market capitalization increased by 1.26% or SAR 24.7 billion, to a total SAR 1.98 trillion ($528.6 billion).
The Saudi Stock Exchange (Tadawul) saw a positive performance in June.
The Tadawul All Shares Index (TASI) went up by 1.88% or 153.1 points and ended the month at the level of 8,314.19 points.
Market capitalization increased by 1.26% or SAR 24.7 billion, to a total SAR 1.98 trillion ($528.6 billion).
Oil prices ease on global trade frictions, but market remains tight | Reuters
Oil prices ease on global trade frictions, but market remains tight | Reuters:
Oil prices fell on Friday amid concerns about trade frictions between the United States and other major economies, although crude market conditions remain tight due to supply disruptions and generally high demand.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $73.06 a barrel at 0209 GMT, down 39 cents, or 0.5 percent from their last settlement. WTI on Thursday hit its highest since November 2014 at $74.03 per barrel.
Brent crude futures LCOc1 were at $77.54 per barrel, down 31 cents, or 0.4 percent from their last close.
Oil prices fell on Friday amid concerns about trade frictions between the United States and other major economies, although crude market conditions remain tight due to supply disruptions and generally high demand.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $73.06 a barrel at 0209 GMT, down 39 cents, or 0.5 percent from their last settlement. WTI on Thursday hit its highest since November 2014 at $74.03 per barrel.
Brent crude futures LCOc1 were at $77.54 per barrel, down 31 cents, or 0.4 percent from their last close.
Thursday 28 June 2018
Abraaj Holdings chairman resigns | GulfNews.com
Abraaj Holdings chairman resigns | GulfNews.com:
Abraaj Holdings’ Chairman Sean Cleary has resigned from the embattled private equity group.
The group is undergoing a court-supervised restructuring after allegations of misuse of funds.
“We can confirm that Sean Cleary has resigned from his position as chairman of Abraaj Holdings. Following the appointment of the Joint Provisional Liquidators, Sean determined that his role as an independent non-executive director would serve no further legal or fiduciary purpose in the interests of creditors or other stakeholders,” Abraaj said in a statement.
Abraaj Holdings’ Chairman Sean Cleary has resigned from the embattled private equity group.
The group is undergoing a court-supervised restructuring after allegations of misuse of funds.
“We can confirm that Sean Cleary has resigned from his position as chairman of Abraaj Holdings. Following the appointment of the Joint Provisional Liquidators, Sean determined that his role as an independent non-executive director would serve no further legal or fiduciary purpose in the interests of creditors or other stakeholders,” Abraaj said in a statement.
Virgin Atlantic says goodbye to Dubai as competition gets too fierce
Virgin Atlantic says goodbye to Dubai as competition gets too fierce:
Increasingly tough competition on London-Dubai flights pushed Virgin Atlantic out of the market, underscoring the dominance of Emirates on the prized route.
Having operated flights from Heathrow to Dubai for more than a decade, Virgin Atlantic said it was “no longer economically viable” to operate the route.
With Dubai’s flagship airline Emirates operating numerous daily flights to London’s Heathrow as well as serving six other UK airports, Virgin Atlantic was poorly positioned to compete, experts said.
Increasingly tough competition on London-Dubai flights pushed Virgin Atlantic out of the market, underscoring the dominance of Emirates on the prized route.
Having operated flights from Heathrow to Dubai for more than a decade, Virgin Atlantic said it was “no longer economically viable” to operate the route.
With Dubai’s flagship airline Emirates operating numerous daily flights to London’s Heathrow as well as serving six other UK airports, Virgin Atlantic was poorly positioned to compete, experts said.
Arif Naqvi secured $300m in ‘emergency’ loan to keep embattled Abraaj afloat, Jafar family claims
Arif Naqvi secured $300m in ‘emergency’ loan to keep embattled Abraaj afloat, Jafar family claims:
Arif Naqvi sought an “emergency short term loan” of $300 million from the Jafar family of Sharjah to keep the embattled private equity group Abraaj alive in February this year, according to a statement from the Jafar’s lawyers, Al Tamimi & Co. The allegation — rejected by Abraaj legal advisers — came after a court hearing in Sharjah, UAE, which kept in place an arrest warrant against Naqvi on grounds of dishonored cheques, a criminal offense in the Emirates. A further hearing will take place next week. The statement by Al Tamimi marks an escalation in the flashpoint confrontation between Naqvi and his erstwhile business partners, which is threatening to derail efforts to save the group, which last year declared assets under management of nearly $14 billion.
Arif Naqvi sought an “emergency short term loan” of $300 million from the Jafar family of Sharjah to keep the embattled private equity group Abraaj alive in February this year, according to a statement from the Jafar’s lawyers, Al Tamimi & Co. The allegation — rejected by Abraaj legal advisers — came after a court hearing in Sharjah, UAE, which kept in place an arrest warrant against Naqvi on grounds of dishonored cheques, a criminal offense in the Emirates. A further hearing will take place next week. The statement by Al Tamimi marks an escalation in the flashpoint confrontation between Naqvi and his erstwhile business partners, which is threatening to derail efforts to save the group, which last year declared assets under management of nearly $14 billion.
QSE’s main index gained 101.51 points last week - The Peninsula Qatar
QSE’s main index gained 101.51 points last week - The Peninsula Qatar:
Qatar Stock Exchange’s (QSE) benchmark index gained 101.51 points, or 1.14 percent, last week when the bourse closed yesterday at 9,024.03 points. Trading value last week increased by 73.35 percent to reach QR1.03bn compared to QR598.30m at the end of the previous week. Trading volume increased by 167.66 percent to reach 33.47 million shares, as against 12.50 million shares, while the number of transactions rose by 50.67 percent, to reach 13,586 compared to 9,017 transactions. Market cap rose by 0.99 percent to reach QR493.68bn as compared to QR488.85bn at the end of previous week.
Qatar Stock Exchange’s (QSE) benchmark index gained 101.51 points, or 1.14 percent, last week when the bourse closed yesterday at 9,024.03 points. Trading value last week increased by 73.35 percent to reach QR1.03bn compared to QR598.30m at the end of the previous week. Trading volume increased by 167.66 percent to reach 33.47 million shares, as against 12.50 million shares, while the number of transactions rose by 50.67 percent, to reach 13,586 compared to 9,017 transactions. Market cap rose by 0.99 percent to reach QR493.68bn as compared to QR488.85bn at the end of previous week.
Qatar banks’ cross-border assets in regions except GCC, Europe and N America grew 30% by end of 2017
Qatar banks’ cross-border assets in regions except GCC, Europe and N America grew 30% by end of 2017:
Qatar’s domestic banks saw declines in cross-border assets in the Gulf Co-operation Council (GCC), the European and North America; whereas they saw substantial expansion in the other countries, including Asia, during 2017, according to the central bank data. (Qatar’s) banking sector lowered their cross-border assets, in particular from the GCC region where the decline was the highest (39%), while assets with European countries and North America also shrank 19% and 22% respectively, Qatar Central Bank (QCB) said in its Financial Stability Review 2017. “As at end December 2017, however, assets with ‘other countries’ including Asian countries grew considerably by 30% thereby increasing their share to total cross-border asset to 21.1%,” it said.
Qatar’s domestic banks saw declines in cross-border assets in the Gulf Co-operation Council (GCC), the European and North America; whereas they saw substantial expansion in the other countries, including Asia, during 2017, according to the central bank data. (Qatar’s) banking sector lowered their cross-border assets, in particular from the GCC region where the decline was the highest (39%), while assets with European countries and North America also shrank 19% and 22% respectively, Qatar Central Bank (QCB) said in its Financial Stability Review 2017. “As at end December 2017, however, assets with ‘other countries’ including Asian countries grew considerably by 30% thereby increasing their share to total cross-border asset to 21.1%,” it said.
Oil at Three-Year High as U.S. Stock Decline Adds to Supply Risk - Bloomberg
Oil at Three-Year High as U.S. Stock Decline Adds to Supply Risk - Bloomberg:
Crude closed at a 3 1/2 year high amid shrinking stockpiles in the U.S., disruptions at Libyan ports and other worldwide supply risks. Futures rose 1 percent in New York on Thursday. Rapidly draining American surpluses are compounding real and envisioned supply interruptions in Canada, Iran, Venezuela and North Africa. Inventories stowed at the biggest U.S. pipeline hub in Cushing, Oklahoma, plunged more than 8 percent last week, the deepest cut since early February. “You had a very significant, almost overwhelming draw in Cushing,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida. “Nothing is getting better in Venezuela, Libya or Iran. The market’s got to go up.”
Crude closed at a 3 1/2 year high amid shrinking stockpiles in the U.S., disruptions at Libyan ports and other worldwide supply risks. Futures rose 1 percent in New York on Thursday. Rapidly draining American surpluses are compounding real and envisioned supply interruptions in Canada, Iran, Venezuela and North Africa. Inventories stowed at the biggest U.S. pipeline hub in Cushing, Oklahoma, plunged more than 8 percent last week, the deepest cut since early February. “You had a very significant, almost overwhelming draw in Cushing,” said Thomas Finlon, director of Energy Analytics Group LLC in Wellington, Florida. “Nothing is getting better in Venezuela, Libya or Iran. The market’s got to go up.”
Large and flexible Gulf aid will bolster Bahrain rating: Moody's | ZAWYA MENA Edition
Large and flexible Gulf aid will bolster Bahrain rating: Moody's | ZAWYA MENA Edition:
Ratings firm Moody's said on Thursday that Bahrain's B1 credit rating will be supported by aid pledged by other Gulf countries this week, as long as it is large and flexible. Saudi Arabia, Kuwait and the United Arab Emirates said on Tuesday that they would provide funding to struggling Bahrain. "New financial commitment from the GCC would provide effective support to the sovereign's credit profile if it is large, given the government's financing needs over the next 12-18 months," Moody's said.
Ratings firm Moody's said on Thursday that Bahrain's B1 credit rating will be supported by aid pledged by other Gulf countries this week, as long as it is large and flexible. Saudi Arabia, Kuwait and the United Arab Emirates said on Tuesday that they would provide funding to struggling Bahrain. "New financial commitment from the GCC would provide effective support to the sovereign's credit profile if it is large, given the government's financing needs over the next 12-18 months," Moody's said.
Saudi Arabia kick starts sale of state flour mills | Reuters
Saudi Arabia kick starts sale of state flour mills | Reuters:
Saudi Arabia on Thursday kicked off the sale of its flour mills, one of the first privatizations of the kingdom and a litmus test for other large state asset sales to follow. Saudi’s state grain buyer SAGO said it would start accepting applications for qualification of potential interested investors on Aug. 26. The kingdom will also make an announcement regarding the timeline for the qualification process on the same day, SAGO said in a statement. HSBC Saudi Arabia ― the financial advisor for the privatization ― said the launch of the qualification phase preceded the potential bidding phase.
Saudi Arabia on Thursday kicked off the sale of its flour mills, one of the first privatizations of the kingdom and a litmus test for other large state asset sales to follow. Saudi’s state grain buyer SAGO said it would start accepting applications for qualification of potential interested investors on Aug. 26. The kingdom will also make an announcement regarding the timeline for the qualification process on the same day, SAGO said in a statement. HSBC Saudi Arabia ― the financial advisor for the privatization ― said the launch of the qualification phase preceded the potential bidding phase.
United Arab Emirates asks World Court to dismiss Qatar discrimination suit | Reuters
United Arab Emirates asks World Court to dismiss Qatar discrimination suit | Reuters:
The United Arab Emirates argued before World Court judges on Thursday that a case brought against it by Qatar for alleged discrimination against Qatari citizens was without merit and should be dismissed. Qatar filed suit earlier this month at the court, formally known as the International Court of Justice, saying that measures the UAE put in place as part of a boycott against Qatar amount to forcible separation of families, in violation of an international treaty signed by both countries. But UAE lawyers challenged that in its response on Thursday.
The United Arab Emirates argued before World Court judges on Thursday that a case brought against it by Qatar for alleged discrimination against Qatari citizens was without merit and should be dismissed. Qatar filed suit earlier this month at the court, formally known as the International Court of Justice, saying that measures the UAE put in place as part of a boycott against Qatar amount to forcible separation of families, in violation of an international treaty signed by both countries. But UAE lawyers challenged that in its response on Thursday.
COLUMN-After OPEC, oil market enters a new era: Kemp | Reuters
COLUMN-After OPEC, oil market enters a new era: Kemp | Reuters:
OPEC is changing fundamentally as power in the oil market shifts towards Saudi Arabia, acting in concert with Russia, while the other members of the organisation are increasingly marginalised. In theory, all members of the Organization of the Petroleum Countries are equal, and the group has always taken decisions by consensus (“Statute of the Organization of the Petroleum Exporting Countries”, 1961 and 2012). OPEC’s founding statute stipulates that it “shall be guided by the principle of sovereign equality of its member countries” (Article 3).
OPEC is changing fundamentally as power in the oil market shifts towards Saudi Arabia, acting in concert with Russia, while the other members of the organisation are increasingly marginalised. In theory, all members of the Organization of the Petroleum Countries are equal, and the group has always taken decisions by consensus (“Statute of the Organization of the Petroleum Exporting Countries”, 1961 and 2012). OPEC’s founding statute stipulates that it “shall be guided by the principle of sovereign equality of its member countries” (Article 3).
UAE court to rule on Abraaj founder check case next week | Reuters
UAE court to rule on Abraaj founder check case next week | Reuters:
A United Arab Emirates court is expected to rule next week on a criminal case against Abraaj founder Arif Naqvi for issuing a check without sufficient funds, a lawyer involved in the case said on Thursday.
The Sharjah court case relates to a check for 177.1 million dirhams ($48 million), signed by Naqvi and fellow executive Muhammad Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in private equity firm Abraaj, according to a prosecution document and a clerk at the prosecutor’s office.
The public prosecutor’s office issued arrest warrants this month against Naqvi, who founded Abraaj in 2002, and Lakhani in the latest blow to the Middle East’s biggest private equity fund, which is in dispute with four investors over the use of their money in a $1 billion healthcare fund.
A United Arab Emirates court is expected to rule next week on a criminal case against Abraaj founder Arif Naqvi for issuing a check without sufficient funds, a lawyer involved in the case said on Thursday.
The Sharjah court case relates to a check for 177.1 million dirhams ($48 million), signed by Naqvi and fellow executive Muhammad Rafique Lakhani, and written to Hamid Jafar, another founding shareholder in private equity firm Abraaj, according to a prosecution document and a clerk at the prosecutor’s office.
The public prosecutor’s office issued arrest warrants this month against Naqvi, who founded Abraaj in 2002, and Lakhani in the latest blow to the Middle East’s biggest private equity fund, which is in dispute with four investors over the use of their money in a $1 billion healthcare fund.
Saudi-Russian axis rules oil markets as Trump fights Iran | Reuters
Saudi-Russian axis rules oil markets as Trump fights Iran | Reuters:
Iran may be Russia’s ally in the Syrian conflict but when it comes to oil, Tehran’s arch-enemy Saudi Arabia takes precedence - if last week’s OPEC meeting in Vienna is anything to go by.
Iran had been pushing hard for oil producers to hold output steady as U.S. sanctions are expected to hit its exports, meaning Tehran had little to gain from OPEC production increases that lower oil prices and cut its revenue.
But Saudi Arabia and Russia had other ideas. According to three sources close to OPEC and Russia, the world’s two biggest oil exporters agreed in May to work hand in glove to engineer a sizeable increase in oil output - albeit for different reasons.
Iran may be Russia’s ally in the Syrian conflict but when it comes to oil, Tehran’s arch-enemy Saudi Arabia takes precedence - if last week’s OPEC meeting in Vienna is anything to go by.
Iran had been pushing hard for oil producers to hold output steady as U.S. sanctions are expected to hit its exports, meaning Tehran had little to gain from OPEC production increases that lower oil prices and cut its revenue.
But Saudi Arabia and Russia had other ideas. According to three sources close to OPEC and Russia, the world’s two biggest oil exporters agreed in May to work hand in glove to engineer a sizeable increase in oil output - albeit for different reasons.
Saudi Arabia's SABIC working on tightening Clariant ties: sources | Reuters
Saudi Arabia's SABIC working on tightening Clariant ties: sources | Reuters:
Saudi Basic Industries Corp (SABIC) 2010.SE is considering increasing its holding in Clariant (CLN.S) and pursuing joint ventures as the Saudi firm looks to strengthen ties with the Swiss chemicals group, sources told Reuters.
The world’s number four chemical firm bought a 24.9 percent stake in Clariant this year and is expected to intensify research and development with the Swiss specialty chemicals maker as well as hike its stake over time, the sources said.
It already has a New Jersey-based partnership with Clariant that licenses chemical process technology to customers including Huntsman (HUN.N) and Akzo Nobel (AKZO.AS).
Saudi Basic Industries Corp (SABIC) 2010.SE is considering increasing its holding in Clariant (CLN.S) and pursuing joint ventures as the Saudi firm looks to strengthen ties with the Swiss chemicals group, sources told Reuters.
The world’s number four chemical firm bought a 24.9 percent stake in Clariant this year and is expected to intensify research and development with the Swiss specialty chemicals maker as well as hike its stake over time, the sources said.
It already has a New Jersey-based partnership with Clariant that licenses chemical process technology to customers including Huntsman (HUN.N) and Akzo Nobel (AKZO.AS).
MIDEAST STOCKS-Dubai recovers from 11-day losing streak; Saudi flat | Reuters
MIDEAST STOCKS-Dubai recovers from 11-day losing streak; Saudi flat | Reuters:
Dubai stocks closed on a positive note on Thursday after 11 straight days of losses, while the Saudi market was flat as investors held back from taking new positions ahead of announcements of second quarter company results. The Dubai index inched up 0.2 percent, recovering from a course of unbroken declines since it recorded a two-month high on June 12. Main support came from Union Properties which jumped 9.3 percent and Dubai Commercial Bank which rose 5.0 percent.
Dubai stocks closed on a positive note on Thursday after 11 straight days of losses, while the Saudi market was flat as investors held back from taking new positions ahead of announcements of second quarter company results. The Dubai index inched up 0.2 percent, recovering from a course of unbroken declines since it recorded a two-month high on June 12. Main support came from Union Properties which jumped 9.3 percent and Dubai Commercial Bank which rose 5.0 percent.
MIDEAST STOCKS-Dubai heads for 12-day losing streak as Saudi rises | Reuters
MIDEAST STOCKS-Dubai heads for 12-day losing streak as Saudi rises | Reuters:
Dubai stocks looked on course for a 12th straight day of losses on Thursday as construction shares fell, while the Saudi market rose modestly. The Saudi index rose 0.2 percent, with the main support coming from property Developers Jabal Omar and Dar Al Arkan which jumped 4.3 percent and 1.5 percent respectively. Makkah Construction rose 2.1 percent. Jabal Omar and Makkah have projects around the Grand Mosque in Mecca and often rise at this time of year as occupancy rates peak during the annual Haj pilgrimage which is expected to start in August.
Dubai stocks looked on course for a 12th straight day of losses on Thursday as construction shares fell, while the Saudi market rose modestly. The Saudi index rose 0.2 percent, with the main support coming from property Developers Jabal Omar and Dar Al Arkan which jumped 4.3 percent and 1.5 percent respectively. Makkah Construction rose 2.1 percent. Jabal Omar and Makkah have projects around the Grand Mosque in Mecca and often rise at this time of year as occupancy rates peak during the annual Haj pilgrimage which is expected to start in August.
Abraaj Liquidator Is Seeking Ways to Fund Payments to Employees - Bloomberg
Abraaj Liquidator Is Seeking Ways to Fund Payments to Employees - Bloomberg:
Abraaj Group’s liquidator is seeking ways to make payments owed to staff at the buyout firm, while it has raised funds to cover immediate payroll costs amid the company’s restructuring.
Employees are concerned they won’t get a lump-sum payment due to workers under U.A.E. law instead of a pension, according to people familiar with the matter, who asked not to be identified because the information is private. About 90 employees such as back-office staff, secretaries and receptionists are owed money after working for the buyout firm, they said. The amount owed may total as much as $20 million, one of the people said.
PwC, which has been appointed as a provisional liquidator, has raised finance “principally in order to fund Abraaj payroll costs this week,” Mike Jervis, restructuring partner at the accounting firm, said in a statement. “We are in contact with the Deloitte team appointed to Abraaj Investment Management Ltd. to work out how other employee payments can be met.”
Abraaj Group’s liquidator is seeking ways to make payments owed to staff at the buyout firm, while it has raised funds to cover immediate payroll costs amid the company’s restructuring.
Employees are concerned they won’t get a lump-sum payment due to workers under U.A.E. law instead of a pension, according to people familiar with the matter, who asked not to be identified because the information is private. About 90 employees such as back-office staff, secretaries and receptionists are owed money after working for the buyout firm, they said. The amount owed may total as much as $20 million, one of the people said.
PwC, which has been appointed as a provisional liquidator, has raised finance “principally in order to fund Abraaj payroll costs this week,” Mike Jervis, restructuring partner at the accounting firm, said in a statement. “We are in contact with the Deloitte team appointed to Abraaj Investment Management Ltd. to work out how other employee payments can be met.”
Dubai Investor Amanat Sees Deal Opportunity With Abraaj Collapse - Bloomberg
Dubai Investor Amanat Sees Deal Opportunity With Abraaj Collapse - Bloomberg:
Amanat Holdings PJSC is scouting for deals as the investment firm seeks to capitalize on the collapse of Dubai-based Abraaj Group. “We want to be number one and now is the real opportunity to gain that position,” Managing Director Shamsheer Vayalil said in an interview on Wednesday. “Amanat is well poised to lead the healthcare and education space in the region and abroad in the incumbent era.” The company is looking at a “couple more” healthcare and education deals in the Gulf region, India and Egypt after some of its biggest transactions in recent weeks, Vayalil said. Amanat has deployed less than 60 percent of its 2.5 billion-dirham ($680 million) paid-up capital without raising debt, which “positions us strongly to flex our financial muscle and gain market position,” he said.
Amanat Holdings PJSC is scouting for deals as the investment firm seeks to capitalize on the collapse of Dubai-based Abraaj Group. “We want to be number one and now is the real opportunity to gain that position,” Managing Director Shamsheer Vayalil said in an interview on Wednesday. “Amanat is well poised to lead the healthcare and education space in the region and abroad in the incumbent era.” The company is looking at a “couple more” healthcare and education deals in the Gulf region, India and Egypt after some of its biggest transactions in recent weeks, Vayalil said. Amanat has deployed less than 60 percent of its 2.5 billion-dirham ($680 million) paid-up capital without raising debt, which “positions us strongly to flex our financial muscle and gain market position,” he said.
World's LNG Giant Is Pumping $20 Billion Into U.S. Oil, Gas - Bloomberg
World's LNG Giant Is Pumping $20 Billion Into U.S. Oil, Gas - Bloomberg:
Qatar Petroleum, the world’s biggest seller of liquefied natural gas, is looking to get even larger, investing $20 billion in America’s oil and gas fields at a time when rival U.S. exporters are expanding.
The investments will be made over five years, Chief Executive Officer Saad Sherida al-Kaabi said in an interview with Bloomberg News in Washington. Some of that will likely go toward lining up gas supplies for the Golden Pass LNG export project in Texas, being developed with Exxon Mobil Corp.
Qatar Petroleum, the world’s biggest seller of liquefied natural gas, is looking to get even larger, investing $20 billion in America’s oil and gas fields at a time when rival U.S. exporters are expanding.
The investments will be made over five years, Chief Executive Officer Saad Sherida al-Kaabi said in an interview with Bloomberg News in Washington. Some of that will likely go toward lining up gas supplies for the Golden Pass LNG export project in Texas, being developed with Exxon Mobil Corp.
World-Beating Tunisia May Struggle to Hold 2018 Stock Gains - Bloomberg
World-Beating Tunisia May Struggle to Hold 2018 Stock Gains - Bloomberg:
The best-performing stock market this year may be running on empty. Tunisia’s main benchmark has advanced 22 percent in dollar terms so far in 2018, the most among major gauges globally. This week marked a milestone when the Tunindex, as it’s known, advanced beyond 8,000 points for the first time in a rally fueled mostly by banks and exporters. Steps by the central bank to counter inflation running at a 25-year high are helping lenders preserve their profit margins, while exporters are benefiting from a plunging dinar.
The best-performing stock market this year may be running on empty. Tunisia’s main benchmark has advanced 22 percent in dollar terms so far in 2018, the most among major gauges globally. This week marked a milestone when the Tunindex, as it’s known, advanced beyond 8,000 points for the first time in a rally fueled mostly by banks and exporters. Steps by the central bank to counter inflation running at a 25-year high are helping lenders preserve their profit margins, while exporters are benefiting from a plunging dinar.
Middle East mergers gain momentum through privatisation and regulatory reforms | ZAWYA MENA Edition
Middle East mergers gain momentum through privatisation and regulatory reforms | ZAWYA MENA Edition:
The activity of mergers and acquisitions deals in the Middle East and North Africa (MENA) has witnessed a pick-up in activity recently as governments increase the pace of privatisation and regulatory changes in an attempt to transform the investment environment in the region. The value of announced M&A transactions with any MENA involvement reached a three-year high in the first quarter of this year – up 7 percent year-on-year to $13.9 billion, according to Thomson Reuters data. Deals with a MENA company as a target increased to $11.2 billion - an eight-year high, and up 50 percent from the same period in 2017, the report added, while domestic MENA deals reached a 5-year high, up by 42 percent on a year-on-year basis.
The activity of mergers and acquisitions deals in the Middle East and North Africa (MENA) has witnessed a pick-up in activity recently as governments increase the pace of privatisation and regulatory changes in an attempt to transform the investment environment in the region. The value of announced M&A transactions with any MENA involvement reached a three-year high in the first quarter of this year – up 7 percent year-on-year to $13.9 billion, according to Thomson Reuters data. Deals with a MENA company as a target increased to $11.2 billion - an eight-year high, and up 50 percent from the same period in 2017, the report added, while domestic MENA deals reached a 5-year high, up by 42 percent on a year-on-year basis.
Colony's Cayman court showdown on Abraaj set for July 11: sources | Reuters
Colony's Cayman court showdown on Abraaj set for July 11: sources | Reuters:
A Cayman Islands court will decide on July 11 whether to approve Colony Capital’s deal to take control of four funds belonging to Middle East private equity firm Abraaj Group, three sources familiar with the matter said. Abraaj, which denies any wrongdoing, has been thrown into turmoil by a dispute with four investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), over the use of their money in a $1 billion healthcare fund. The row has shaken confidence in Abraaj, halted its fund raising and sparked debt repayment problems, forcing it to file for provisional liquidation in the Cayman Islands.
A Cayman Islands court will decide on July 11 whether to approve Colony Capital’s deal to take control of four funds belonging to Middle East private equity firm Abraaj Group, three sources familiar with the matter said. Abraaj, which denies any wrongdoing, has been thrown into turmoil by a dispute with four investors, including the Bill & Melinda Gates Foundation and International Finance Corp (IFC), over the use of their money in a $1 billion healthcare fund. The row has shaken confidence in Abraaj, halted its fund raising and sparked debt repayment problems, forcing it to file for provisional liquidation in the Cayman Islands.
UAE court adjourns criminal case against Abraaj founder, other executive | Reuters
UAE court adjourns criminal case against Abraaj founder, other executive | Reuters:
A Sharjah court has adjourned until July 5 a judgment against the founder of private equity firm Abraaj and another executive for issuing a cheque without sufficient funds, a lawyer close to the case told Reuters on Thursday. The public prosecutor’s office in Sharjah, one of the United Arab Emirates, issued arrest warrants earlier this month against Arif Naqvi, who founded Abraaj in 2002, and fellow executive Muhammad Rafique Lakhani for issuing a cheque that bounced.
A Sharjah court has adjourned until July 5 a judgment against the founder of private equity firm Abraaj and another executive for issuing a cheque without sufficient funds, a lawyer close to the case told Reuters on Thursday. The public prosecutor’s office in Sharjah, one of the United Arab Emirates, issued arrest warrants earlier this month against Arif Naqvi, who founded Abraaj in 2002, and fellow executive Muhammad Rafique Lakhani for issuing a cheque that bounced.
U.S. oil prices steady ahead of sanctions on Iran | Reuters
U.S. oil prices steady ahead of sanctions on Iran | Reuters:
U.S. oil prices steadied on Thursday, pulling back from 3-1/2-year highs, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions.
U.S. light crude CLc1 was 15 cents lower at $72.61 per barrel by 0815 GMT, after hitting $73.06 on Wednesday, its highest since November 2014.
Benchmark Brent LCOc1 was unchanged at $77.62 a barrel.
U.S. oil prices steadied on Thursday, pulling back from 3-1/2-year highs, but supply remained tight with investors concerned by the prospect of a big fall in crude exports from Iran due to U.S. sanctions.
U.S. light crude CLc1 was 15 cents lower at $72.61 per barrel by 0815 GMT, after hitting $73.06 on Wednesday, its highest since November 2014.
Benchmark Brent LCOc1 was unchanged at $77.62 a barrel.
MOVES-Britain's largest Islamic bank Al Rayan appoints new COO | Reuters
MOVES-Britain's largest Islamic bank Al Rayan appoints new COO | Reuters:
Birmingham-based Al Rayan Bank, Britain’s oldest and largest Islamic lender, said on Wednesday it had appointed Paul McMillan as chief operating officer as part of the bank’s expansion efforts. McMillan will oversee operations, an area the bank is investing heavily to grow its business, after the lender tapped the capital markets in February raising 250 million pounds ($352 million) via a debut sale of Islamic bonds. McMillan, a former chief executive of mortgage servicing firm Acenden, takes over the role from the bank’s previous COO Venkat Chandrasekar.
Birmingham-based Al Rayan Bank, Britain’s oldest and largest Islamic lender, said on Wednesday it had appointed Paul McMillan as chief operating officer as part of the bank’s expansion efforts. McMillan will oversee operations, an area the bank is investing heavily to grow its business, after the lender tapped the capital markets in February raising 250 million pounds ($352 million) via a debut sale of Islamic bonds. McMillan, a former chief executive of mortgage servicing firm Acenden, takes over the role from the bank’s previous COO Venkat Chandrasekar.
Wednesday 27 June 2018
ICAO Council rejects blockading countries’ appeals against Qatar - The Peninsula Qatar
ICAO Council rejects blockading countries’ appeals against Qatar - The Peninsula Qatar:
The International Civil Aviation Organization (ICAO) Council has decided to reject the appeals submitted by the blockading countries regarding the incompetence of the ICAO to consider Qatar’s complaints. This came during an ICAO session held today to hear the two complaints Qatar had submitted about the negative impacts caused by the blockading countries on aviation and air safety and security.
Minister of Transport and Communications H E Jassim Saif Ahmed Al-Sulaiti hailed the vote by the majority of ICAO Member States in favour of examining and looking into Qatar’s complaints and against the blockading countries’ appeals. He also praised ICAO’s efforts in preserving air safety and security and air traffic.
He also stressed that the blockade countries’ encroachments of aviation safety and security contradict all norms and agreements binding on all parties, in addition to the serious consequences such encroachments cause to air safety and security.
The International Civil Aviation Organization (ICAO) Council has decided to reject the appeals submitted by the blockading countries regarding the incompetence of the ICAO to consider Qatar’s complaints. This came during an ICAO session held today to hear the two complaints Qatar had submitted about the negative impacts caused by the blockading countries on aviation and air safety and security.
Minister of Transport and Communications H E Jassim Saif Ahmed Al-Sulaiti hailed the vote by the majority of ICAO Member States in favour of examining and looking into Qatar’s complaints and against the blockading countries’ appeals. He also praised ICAO’s efforts in preserving air safety and security and air traffic.
He also stressed that the blockade countries’ encroachments of aviation safety and security contradict all norms and agreements binding on all parties, in addition to the serious consequences such encroachments cause to air safety and security.
MIDEAST STOCKS-Real estate, construction drag Dubai down, Saudi rises | Reuters
MIDEAST STOCKS-Real estate, construction drag Dubai down, Saudi rises | Reuters:
Real estate and construction companies continued to weigh on the Dubai market on Wednesday as Drake & Scull (DSI) extended losses and the Abu Dhabi market also dropped. DSI shares plunged 10 percent for a third consecutive day to close at 0.73 dirhams ($0.19) per share, its lowest ever. The shares are down 68 percent so far this year as retail investors have offloaded the stock amid concerns about its business outlook and investors worried about the outcome of an investigation into its former management team.
Real estate and construction companies continued to weigh on the Dubai market on Wednesday as Drake & Scull (DSI) extended losses and the Abu Dhabi market also dropped. DSI shares plunged 10 percent for a third consecutive day to close at 0.73 dirhams ($0.19) per share, its lowest ever. The shares are down 68 percent so far this year as retail investors have offloaded the stock amid concerns about its business outlook and investors worried about the outcome of an investigation into its former management team.
Bahrain to receive second economic package from the GCC - The National
Bahrain to receive second economic package from the GCC - The National:
Bahrain, the GCC's smallest economy, is set to receive support from Saudi Arabia, the UAE and Kuwait to ensure fiscal stability of its financial institutions as the Arabian Gulf state pressured by high external borrowings struggles to recover from a three-year slump in oil prices. A new programme "designed to strengthen Bahrain's fiscal stability", will be announced by the three states, finance minister Sheikh Ahmed bin Mohammed Al Khalifa said in a statement carried by the state-run Bahrain News Agency on Wednesday. It did not give further details of the financial aid package or when it was expected to be announced. Meanwhile, a joint statement on the Saudi Press Agency by the trio said they were “in discussions with the authorities in the kingdom of Bahrain to enhance the stability of the financial situation”. They will “consider all options to support Bahrain and to finalise an integrated programme ... to support its economic reforms and fiscal stability,” the statement said.
Bahrain, the GCC's smallest economy, is set to receive support from Saudi Arabia, the UAE and Kuwait to ensure fiscal stability of its financial institutions as the Arabian Gulf state pressured by high external borrowings struggles to recover from a three-year slump in oil prices. A new programme "designed to strengthen Bahrain's fiscal stability", will be announced by the three states, finance minister Sheikh Ahmed bin Mohammed Al Khalifa said in a statement carried by the state-run Bahrain News Agency on Wednesday. It did not give further details of the financial aid package or when it was expected to be announced. Meanwhile, a joint statement on the Saudi Press Agency by the trio said they were “in discussions with the authorities in the kingdom of Bahrain to enhance the stability of the financial situation”. They will “consider all options to support Bahrain and to finalise an integrated programme ... to support its economic reforms and fiscal stability,” the statement said.
Who should be worried more about exposures to Abraaj? | GulfNews.com
Who should be worried more about exposures to Abraaj? | GulfNews.com:
A dramatic turn of events in lender claims against embattled private equity firm Abraaj has increased ambiguity on the company’s ability to meet its obligations to investors and lenders. Analysts and private equity industry sources said lenders to Abraaj will have more to worry about the court cases and the liquidity crunch than investors in funds managed by Abraaj. “Most Abraaj managed funds’ underlying assets are robust. The current legal troubles are unlikely to affect their valuations and investors in these funds are better off than lenders in the overall context the new developments relating to the company,” said the CEO of a UAE-based private equity firm, who asked that his name be withheld.
A dramatic turn of events in lender claims against embattled private equity firm Abraaj has increased ambiguity on the company’s ability to meet its obligations to investors and lenders. Analysts and private equity industry sources said lenders to Abraaj will have more to worry about the court cases and the liquidity crunch than investors in funds managed by Abraaj. “Most Abraaj managed funds’ underlying assets are robust. The current legal troubles are unlikely to affect their valuations and investors in these funds are better off than lenders in the overall context the new developments relating to the company,” said the CEO of a UAE-based private equity firm, who asked that his name be withheld.
Countries Boycotting Qatar Want Flying-Rights Case Moved to ICJ - Bloomberg
Countries Boycotting Qatar Want Flying-Rights Case Moved to ICJ - Bloomberg:
A Saudi-led bloc is seeking to move a case on reopening its airspace to Qatari planes to the International Court of Justice from a United Nations aviation agency. Saudi Arabia, Bahrain, the United Arab Emirates and Egypt say the International Civil Aviation Organization "was not competent to consider that dispute,” the Saudi Press Agency reported. The four Arab nations cut diplomatic and transport links with Qatar in June last year, accusing the country of supporting terrorism and cozying up to Iran, charges Qatar denies. They also barred Qatar-registered planes from their airspace.
A Saudi-led bloc is seeking to move a case on reopening its airspace to Qatari planes to the International Court of Justice from a United Nations aviation agency. Saudi Arabia, Bahrain, the United Arab Emirates and Egypt say the International Civil Aviation Organization "was not competent to consider that dispute,” the Saudi Press Agency reported. The four Arab nations cut diplomatic and transport links with Qatar in June last year, accusing the country of supporting terrorism and cozying up to Iran, charges Qatar denies. They also barred Qatar-registered planes from their airspace.
Trump Lights a Fire Under Oil the Saudis Can't Douse - Bloomberg
Trump Lights a Fire Under Oil the Saudis Can't Douse - Bloomberg:
President Trump didn't disappoint. His lack of concern about the likely collateral damage from re-imposing sanctions on Iran meant that the latest curbs on the country's oil exports were always likely to be much tougher than the originals. The U.S. is pressing allies to completely halt their purchases of Iranian oil by the end of the wind-down period on Nov. 4. Rather than make waivers of sanctions more difficult to get -- the Obama administration required a 20 percent reduction in purchases every six months -- the Trump team has decided to ditch them altogether. This time, it's all or nothing. At least that's the narrative at the moment.
President Trump didn't disappoint. His lack of concern about the likely collateral damage from re-imposing sanctions on Iran meant that the latest curbs on the country's oil exports were always likely to be much tougher than the originals. The U.S. is pressing allies to completely halt their purchases of Iranian oil by the end of the wind-down period on Nov. 4. Rather than make waivers of sanctions more difficult to get -- the Obama administration required a 20 percent reduction in purchases every six months -- the Trump team has decided to ditch them altogether. This time, it's all or nothing. At least that's the narrative at the moment.
UPDATE 2-Bahrain dinar, bonds rebound after GCC allies promise to avert debt crisis | Reuters
UPDATE 2-Bahrain dinar, bonds rebound after GCC allies promise to avert debt crisis | Reuters:
Bahrain’s dinar recovered from 17-year lows and its bond prices rebounded on Wednesday after the country’s diplomatic allies in the Gulf pledged to prevent its ballooning public debt from triggering a financial crisis.
Bankers said the pledge of aid to Bahrain by Saudi Arabia, the United Arab Emirates and Kuwait eased fears that Manama might be unable to redeem a $750 million Islamic bond that will mature in November.
“It’s time to buy Bahrain,” Barclays said in an analyst report, predicting the aid pledge would ease international investors’ worries about the country’s solvency.
Bahrain’s dinar recovered from 17-year lows and its bond prices rebounded on Wednesday after the country’s diplomatic allies in the Gulf pledged to prevent its ballooning public debt from triggering a financial crisis.
Bankers said the pledge of aid to Bahrain by Saudi Arabia, the United Arab Emirates and Kuwait eased fears that Manama might be unable to redeem a $750 million Islamic bond that will mature in November.
“It’s time to buy Bahrain,” Barclays said in an analyst report, predicting the aid pledge would ease international investors’ worries about the country’s solvency.
MIDEAST STOCKS-UAE stocks move after firms disclose exposure to embattled firm Abraaj | Reuters
MIDEAST STOCKS-UAE stocks move after firms disclose exposure to embattled firm Abraaj | Reuters:
Dubai’s Union Properties rose in early trade after it said on Wednesday the company and its unit does not have any exposure to embattled private equity firm Abraaj, which filed for provisional liquidation earlier this month. United Arab Emirates’ top securities regulator has asked UAE-listed companies to declare their exposure to Abraaj, Reuters reported on June 21. Air Arabia was down 0.7 percent, bringing its total losses to 5.3 percent for the week in the wake of disclosing it had a $336 million overall exposure to Abraaj.
Dubai’s Union Properties rose in early trade after it said on Wednesday the company and its unit does not have any exposure to embattled private equity firm Abraaj, which filed for provisional liquidation earlier this month. United Arab Emirates’ top securities regulator has asked UAE-listed companies to declare their exposure to Abraaj, Reuters reported on June 21. Air Arabia was down 0.7 percent, bringing its total losses to 5.3 percent for the week in the wake of disclosing it had a $336 million overall exposure to Abraaj.
Dubai launches new freelance work permit for Dh7,500 | GulfNews.com
Dubai launches new freelance work permit for Dh7,500 | GulfNews.com:
Residents can now obtain a new freelance package for an annual fee of Dh7,500 in media and education sectors with Dubai Media City (DMC) and Dubai Knowledge Park (DKP), officials announced on Tuesday. The package, called Gofreelance, was launched by TECOM Group, a member of Dubai Holding, in partnership with Dubai Creative Clusters Authority. The annual fee includes the Freelancer Permit and access to the Business Centre. If the candidates requires a visa, such as if they are non-residents who want to freelance here, relevant “assistance” will be provided. However, the visa will cost separately as per the normal associated fees.
Residents can now obtain a new freelance package for an annual fee of Dh7,500 in media and education sectors with Dubai Media City (DMC) and Dubai Knowledge Park (DKP), officials announced on Tuesday. The package, called Gofreelance, was launched by TECOM Group, a member of Dubai Holding, in partnership with Dubai Creative Clusters Authority. The annual fee includes the Freelancer Permit and access to the Business Centre. If the candidates requires a visa, such as if they are non-residents who want to freelance here, relevant “assistance” will be provided. However, the visa will cost separately as per the normal associated fees.
Abu Dhabi's Eshraq Properties drops merger plans with Reem Investments - The National
Abu Dhabi's Eshraq Properties drops merger plans with Reem Investments - The National:
Eshraq Properties has dropped plans to merge with fellow Abu Dhabi developer Reem Investments, after the two companies could not agree on the terms of the transaction, the company said on Tuesday. "The strategic investment of Reem Investments in Eshraq Properties will not be completed," Eshraq board said in a statement to Abu Dhabi Securities Exchange, where its shares are traded. “Further to discussions and deliberations, the parties have not been able to agree on major commercial matters underpinning the deal,” the company said without giving further details. Eshraq, which has a market capitalisation of Dh2.325 billion and privately-held Reem Investments, with a paid-up capital of Dh1.55bn announced a possible consolidation of their holdings in 2017, in a deal that would have created the emirate’s second-largest listed developer.
Eshraq Properties has dropped plans to merge with fellow Abu Dhabi developer Reem Investments, after the two companies could not agree on the terms of the transaction, the company said on Tuesday. "The strategic investment of Reem Investments in Eshraq Properties will not be completed," Eshraq board said in a statement to Abu Dhabi Securities Exchange, where its shares are traded. “Further to discussions and deliberations, the parties have not been able to agree on major commercial matters underpinning the deal,” the company said without giving further details. Eshraq, which has a market capitalisation of Dh2.325 billion and privately-held Reem Investments, with a paid-up capital of Dh1.55bn announced a possible consolidation of their holdings in 2017, in a deal that would have created the emirate’s second-largest listed developer.
Tuesday 26 June 2018
Curiouser and curiouser as bounced cheques push Abraaj affair to scandal status | Arab News
Curiouser and curiouser as bounced cheques push Abraaj affair to scandal status | Arab News:
When does an “affair” become a “scandal”? Usually when the forces of law and order get involved, and that is why the four-month-old Abraaj “affair” is now veering toward “scandal” status. Until now, there has been no suggestion of criminal wrongdoing in the precipitous decline of Abraaj, once the leading lights of emerging markets investment and a flag-bearer for the UAE financial industry, but now increasingly seen as a value-destructive embarrassment for Dubai. But writing a cheque without sufficient funds in the bank is a criminal offense in the UAE, and it appears that was what Arif Naqvi, founder and chief executive of Abraaj, did toward the end of February, to the tune of $48.2m in at least one cheque.
When does an “affair” become a “scandal”? Usually when the forces of law and order get involved, and that is why the four-month-old Abraaj “affair” is now veering toward “scandal” status. Until now, there has been no suggestion of criminal wrongdoing in the precipitous decline of Abraaj, once the leading lights of emerging markets investment and a flag-bearer for the UAE financial industry, but now increasingly seen as a value-destructive embarrassment for Dubai. But writing a cheque without sufficient funds in the bank is a criminal offense in the UAE, and it appears that was what Arif Naqvi, founder and chief executive of Abraaj, did toward the end of February, to the tune of $48.2m in at least one cheque.
Doha Bank showcases Qatar’s economic resilience in Geneva - The Peninsula Qatar
Doha Bank showcases Qatar’s economic resilience in Geneva - The Peninsula Qatar:
Doha Bank CEO, Dr R Seetharaman, participated in the commencement ceremonies of EU Business School in Geneva, Switzerland and Munich, Germany, recently and showcased Qatar’s sustainability one year after the blockade, and also highlighted Qatar’s economic resilience and strong macroeconomic fundamentals that helped weather the impact of the unjust siege. He also did a workshop on June 14, 2018 in Geneva for EU Business School Students. In the workshop, Dr Seetharaman gave insight on Qatar economy and Banking System. He said: “According to recent IMF Outlook, Qatar’s gross domestic product (GDP) is set to grow 2.6 percent this year. Qatar will raise LNG production by 30 percent to 100mtpa within five to seven years after lifting a moratorium on gas development earlier in 2017.
Doha Bank CEO, Dr R Seetharaman, participated in the commencement ceremonies of EU Business School in Geneva, Switzerland and Munich, Germany, recently and showcased Qatar’s sustainability one year after the blockade, and also highlighted Qatar’s economic resilience and strong macroeconomic fundamentals that helped weather the impact of the unjust siege. He also did a workshop on June 14, 2018 in Geneva for EU Business School Students. In the workshop, Dr Seetharaman gave insight on Qatar economy and Banking System. He said: “According to recent IMF Outlook, Qatar’s gross domestic product (GDP) is set to grow 2.6 percent this year. Qatar will raise LNG production by 30 percent to 100mtpa within five to seven years after lifting a moratorium on gas development earlier in 2017.
Abraaj Founder Naqvi Faces Criminal Case Over Bounced Check - Bloomberg
Abraaj Founder Naqvi Faces Criminal Case Over Bounced Check - Bloomberg:
Arif Naqvi, the founder of Abraaj Group that has been roiled by allegations of misused investor money, faces a criminal case in the United Arab Emirates for issuing a check without sufficient funds. A complaint against Naqvi and another Abraaj director, Muhammed Rafique Lakhani, was filed in Sharjah over a bounced check, according to a court document seen by Bloomberg. Checks were issued as a security on a loan of about $200 million to Abraaj and $100 million to Naqvi by the U.A.E.-based Jafar family, according to Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, who is representing Naqvi. The U.A.E. treats bounced checks as a criminal offense. A hearing is scheduled for Thursday. The Financial Times previously reported the criminal case.
Arif Naqvi, the founder of Abraaj Group that has been roiled by allegations of misused investor money, faces a criminal case in the United Arab Emirates for issuing a check without sufficient funds. A complaint against Naqvi and another Abraaj director, Muhammed Rafique Lakhani, was filed in Sharjah over a bounced check, according to a court document seen by Bloomberg. Checks were issued as a security on a loan of about $200 million to Abraaj and $100 million to Naqvi by the U.A.E.-based Jafar family, according to Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla, who is representing Naqvi. The U.A.E. treats bounced checks as a criminal offense. A hearing is scheduled for Thursday. The Financial Times previously reported the criminal case.
Saudi Stocks Are the Most Expensive Versus Dubai in 7 Years - Bloomberg
Saudi Stocks Are the Most Expensive Versus Dubai in 7 Years - Bloomberg:
The valuation gap between stocks in Saudi Arabia and Dubai has expanded to the widest since 2011.
Saudi shares have traded at a premium compared to those in Dubai most part of the time in the past seven years, but the gap has widened in 2018 as bets that the kingdom would be included in emerging-market benchmarks by MSCI Inc. and FTSE Russell fueled a rally, pushing valuations higher. In Dubai, which is already part of those indexes, concerns tied to the emirate’s real estate market have been weighing on stocks.
The valuation gap between stocks in Saudi Arabia and Dubai has expanded to the widest since 2011.
Saudi shares have traded at a premium compared to those in Dubai most part of the time in the past seven years, but the gap has widened in 2018 as bets that the kingdom would be included in emerging-market benchmarks by MSCI Inc. and FTSE Russell fueled a rally, pushing valuations higher. In Dubai, which is already part of those indexes, concerns tied to the emirate’s real estate market have been weighing on stocks.
World's LNG Giant Is Pumping $20 Billion Into U.S. Oil, Gas - Bloomberg
World's LNG Giant Is Pumping $20 Billion Into U.S. Oil, Gas - Bloomberg:
Qatar Petroleum, the world’s biggest seller of liquefied natural gas, is looking to get even larger, investing $20 billion in America’s oil and gas fields at a time when rival U.S. exporters are expanding.
The investments will be made over five years, Chief Executive Officer Saad Sherida al-Kaabi said in an interview with Bloomberg News in Washington. Some of that will likely go toward lining up gas supplies for the Golden Pass LNG export project in Texas, being developed with Exxon Mobil Corp.
Al-Kaabi said Qatar will probably be announcing a deal in the U.S. “before the end of the year,” but he declined to say whether it would involve oil or gas. Qatar is also looking to invest an additional $5 billion in so-called downstream assets, such as chemicals projects, he said.
Qatar Petroleum, the world’s biggest seller of liquefied natural gas, is looking to get even larger, investing $20 billion in America’s oil and gas fields at a time when rival U.S. exporters are expanding.
The investments will be made over five years, Chief Executive Officer Saad Sherida al-Kaabi said in an interview with Bloomberg News in Washington. Some of that will likely go toward lining up gas supplies for the Golden Pass LNG export project in Texas, being developed with Exxon Mobil Corp.
Al-Kaabi said Qatar will probably be announcing a deal in the U.S. “before the end of the year,” but he declined to say whether it would involve oil or gas. Qatar is also looking to invest an additional $5 billion in so-called downstream assets, such as chemicals projects, he said.
New Saudi Arabia ETF Emerges - Bloomberg
New Saudi Arabia ETF Emerges - Bloomberg:
Saudi Arabia’s addition to indexer MSCI Inc.’s group of emerging markets starting in June 2019 is expected to lure $40 billion in foreign investment to country. Now, U.S. investment firms are looking to get in on the action. Franklin Templeton Investments, a long-time active asset manager, is seeking approval for a Saudi Arabia ETF, according to a filing with the U.S. Securities and Exchange Commission on Friday. Currently, there’s only one such fund, the iShares MSCI Saudi Arabia ETF, or KSA. It has $269 million in assets, a figure that’s ballooned by as much as 1,700 percent this year, the most among all single-country funds. This comes at a time when investors are pulling billions from broad emerging market funds and investing in single-country ETFs.
Saudi Arabia’s addition to indexer MSCI Inc.’s group of emerging markets starting in June 2019 is expected to lure $40 billion in foreign investment to country. Now, U.S. investment firms are looking to get in on the action. Franklin Templeton Investments, a long-time active asset manager, is seeking approval for a Saudi Arabia ETF, according to a filing with the U.S. Securities and Exchange Commission on Friday. Currently, there’s only one such fund, the iShares MSCI Saudi Arabia ETF, or KSA. It has $269 million in assets, a figure that’s ballooned by as much as 1,700 percent this year, the most among all single-country funds. This comes at a time when investors are pulling billions from broad emerging market funds and investing in single-country ETFs.
Saudi bourse may see a correction after MSCI decision - Al Masah Capital | ZAWYA MENA Edition
Saudi bourse may see a correction after MSCI decision - Al Masah Capital | ZAWYA MENA Edition:
Saudi Arabia’s stock market may witness a correction following global index compiler MSCI’s decision to incorporate the Kingdom into its global emerging markets index, according to an executive at a Dubai-based asset management firm. Foreign institutional investors have already been buying into the Saudi market, with trading activity analysis during the first quarter of 2018 indicating that foreign institutional investors purchased approximately $2.1 billion worth of Saudi equities, according to Akber Naqvi, managing director and head of asset management at Al Masah Capital. Saudi Arabia’s Tadawul All Share Index has been the best-performing Gulf stockmarket so far this year, posting gains of over 15 percent since the start of 2018 as investors anticipate a significant amount of fund inflows. Yet Naqvi said that there may be reversals in prices as investors seek to lock in gains.
Saudi Arabia’s stock market may witness a correction following global index compiler MSCI’s decision to incorporate the Kingdom into its global emerging markets index, according to an executive at a Dubai-based asset management firm. Foreign institutional investors have already been buying into the Saudi market, with trading activity analysis during the first quarter of 2018 indicating that foreign institutional investors purchased approximately $2.1 billion worth of Saudi equities, according to Akber Naqvi, managing director and head of asset management at Al Masah Capital. Saudi Arabia’s Tadawul All Share Index has been the best-performing Gulf stockmarket so far this year, posting gains of over 15 percent since the start of 2018 as investors anticipate a significant amount of fund inflows. Yet Naqvi said that there may be reversals in prices as investors seek to lock in gains.
WRAPUP 1-Debt jitters push Bahraini dinar to 17-year low as hedge funds sell | Reuters
WRAPUP 1-Debt jitters push Bahraini dinar to 17-year low as hedge funds sell | Reuters:
Bahrain’s dinar sank to a 17-year low against the U.S. dollar on Tuesday as hedge funds dumped Bahraini bonds because of concern about the country’s rising public debt, regional bankers said. The dinar dropped as low as 0.38261 to the dollar in the spot market. The bankers said they did not detect any concerted attack on the currency, but a plunge in Bahrain’s international bond prices in recent weeks had fuelled jitters in the foreign exchange market. The central bank, which pegs the dinar at 0.37608 and sells dollars when needed to keep its currency close to that level, said in a brief statement that it was committed to the peg and had no plans to alter the dinar’s value.
Bahrain’s dinar sank to a 17-year low against the U.S. dollar on Tuesday as hedge funds dumped Bahraini bonds because of concern about the country’s rising public debt, regional bankers said. The dinar dropped as low as 0.38261 to the dollar in the spot market. The bankers said they did not detect any concerted attack on the currency, but a plunge in Bahrain’s international bond prices in recent weeks had fuelled jitters in the foreign exchange market. The central bank, which pegs the dinar at 0.37608 and sells dollars when needed to keep its currency close to that level, said in a brief statement that it was committed to the peg and had no plans to alter the dinar’s value.
Iran says it can handle fresh sanctions amid national strike | Reuters
Iran says it can handle fresh sanctions amid national strike | Reuters:
President Hassan Rouhani promised Iranians on Tuesday the government would be able to handle the economic pressure of new U.S. sanctions amid a second day of demonstrations in protest at financial hardship and a weakening rial.
Parts of Tehran’s Grand Bazaar were on strike for the second day running, state media reported, after traders massed outside parliament on Monday to complain about a sharp fall in the value of the national currency.
Video footage posted on social media showed protesters setting fire to garbage dumpsters in Tehran streets to block riot police from attacking them. Reuters was unable to verify the authenticity of the footage.
President Hassan Rouhani promised Iranians on Tuesday the government would be able to handle the economic pressure of new U.S. sanctions amid a second day of demonstrations in protest at financial hardship and a weakening rial.
Parts of Tehran’s Grand Bazaar were on strike for the second day running, state media reported, after traders massed outside parliament on Monday to complain about a sharp fall in the value of the national currency.
Video footage posted on social media showed protesters setting fire to garbage dumpsters in Tehran streets to block riot police from attacking them. Reuters was unable to verify the authenticity of the footage.
JP Morgan consults on including Gulf states in key bond index | Reuters
JP Morgan consults on including Gulf states in key bond index | Reuters:
JP Morgan has started a consultation on including Gulf states in its widely tracked emerging market government bond indexes, although a number of issues remain sticking points.
JP Morgan’s EMBI bond index is a key performance benchmark for emerging market investors. Inclusion in the index can encourage hundreds of billions of dollars of buying of that country’s bonds, lowering its borrowing costs.
Slides produced as part of the bank’s annual index “governance consultation” first looked at various metrics for Gulf states, whose relatively high incomes don’t always fit the standard definition of an “emerging” market.
JP Morgan has started a consultation on including Gulf states in its widely tracked emerging market government bond indexes, although a number of issues remain sticking points.
JP Morgan’s EMBI bond index is a key performance benchmark for emerging market investors. Inclusion in the index can encourage hundreds of billions of dollars of buying of that country’s bonds, lowering its borrowing costs.
Slides produced as part of the bank’s annual index “governance consultation” first looked at various metrics for Gulf states, whose relatively high incomes don’t always fit the standard definition of an “emerging” market.
UAE authorities issue arrest warrant against Abraaj founder | Reuters
UAE authorities issue arrest warrant against Abraaj founder | Reuters:
Authorities in the United Arab Emirates have issued arrest warrants for the founder of private equity firm Abraaj and another executive for issuing a check without sufficient funds, according to a prosecution document seen by Reuters.
The warrants are the latest setback for the Middle East and Africa’s biggest private equity fund, which has been locked in a dispute with four investors over the use of their money in a $1 billion healthcare fund. Abraaj has denied misusing funds.
The row has shaken investor confidence in the Dubai-based firm, halted its fund raising activities and sparked debt repayment problems, forcing Abraaj to file for provisional liquidation in the Cayman Islands.
Authorities in the United Arab Emirates have issued arrest warrants for the founder of private equity firm Abraaj and another executive for issuing a check without sufficient funds, according to a prosecution document seen by Reuters.
The warrants are the latest setback for the Middle East and Africa’s biggest private equity fund, which has been locked in a dispute with four investors over the use of their money in a $1 billion healthcare fund. Abraaj has denied misusing funds.
The row has shaken investor confidence in the Dubai-based firm, halted its fund raising activities and sparked debt repayment problems, forcing Abraaj to file for provisional liquidation in the Cayman Islands.
UPDATE 1-Saudi, Kuwait and UAE to announce measures to support Bahrain's economy | Reuters
UPDATE 1-Saudi, Kuwait and UAE to announce measures to support Bahrain's economy | Reuters:
Saudi Arabia, Kuwait and the United Arab Emirates will soon announce an integrated program to support Bahrain’s economic reforms and its fiscal stability, a joint statement from the three Gulf states said on Tuesday.
Bahrain’s finances have been hit hard by a slump in oil prices in 2014. On Tuesday, Bahrain’s dinar plunged to a 17-year low against the U.S. dollar as hedge funds dumped Bahraini bonds because of concern about rising public debt.
Many bankers said expectations that Saudi Arabia and perhaps other regional allies of Bahrain would eventually provide it with additional financial support were preventing worse instability in the markets.
Saudi Arabia, Kuwait and the United Arab Emirates will soon announce an integrated program to support Bahrain’s economic reforms and its fiscal stability, a joint statement from the three Gulf states said on Tuesday.
Bahrain’s finances have been hit hard by a slump in oil prices in 2014. On Tuesday, Bahrain’s dinar plunged to a 17-year low against the U.S. dollar as hedge funds dumped Bahraini bonds because of concern about rising public debt.
Many bankers said expectations that Saudi Arabia and perhaps other regional allies of Bahrain would eventually provide it with additional financial support were preventing worse instability in the markets.
Oil surges as U.S. pushes allies to halt imports of Iranian crude | Reuters
Oil surges as U.S. pushes allies to halt imports of Iranian crude | Reuters:
Crude futures jumped over 2 percent on Tuesday and U.S. oil topped $70 for the first time in two months as Washington pushed allies to halt imports of Iranian crude, which would constrain global supplies.
The market rallied further in post-settlement trading, after the American Petroleum Institute said U.S. crude inventories fell a surprising 9.2 million barrels, far exceeding the decline of 2.6 million barrels that had been expected. [API/S]
Brent crude LCOc1 gained $1.58 to settle at $76.31 a barrel, while West Texas Intermediate crude CLc1 climbed $2.45 to settle at $70.53. In post-settlement trading, where volumes are small, Brent extended gains to $76.61 a barrel, while U.S. crude rose to $70.76 a barrel.
Crude futures jumped over 2 percent on Tuesday and U.S. oil topped $70 for the first time in two months as Washington pushed allies to halt imports of Iranian crude, which would constrain global supplies.
The market rallied further in post-settlement trading, after the American Petroleum Institute said U.S. crude inventories fell a surprising 9.2 million barrels, far exceeding the decline of 2.6 million barrels that had been expected. [API/S]
Brent crude LCOc1 gained $1.58 to settle at $76.31 a barrel, while West Texas Intermediate crude CLc1 climbed $2.45 to settle at $70.53. In post-settlement trading, where volumes are small, Brent extended gains to $76.61 a barrel, while U.S. crude rose to $70.76 a barrel.
MIDEAST STOCKS-Real estate and construction weigh on Dubai; Saudi slips | Reuters
MIDEAST STOCKS-Real estate and construction weigh on Dubai; Saudi slips | Reuters:
Real estate and construction companies weighed on the Dubai market on Tuesday as Drake & Scull mined new multi-year lows and Saudi stocks also slipped. DSI shares fell ten percent for a second day running to close at 0.81 dirhams ($0.22) per share, its lowest for at least five years. Retail investors have been offloading the stock amid concerns about its business outlook, while investors have also been worried about the outcome of an ongoing investigation into its former management team. Emaar Properties, the largest stock on the index, fell 1.2 percent, while Damac Properties fell 2.2 percent and Union Properties was down 4.3 percent.
Real estate and construction companies weighed on the Dubai market on Tuesday as Drake & Scull mined new multi-year lows and Saudi stocks also slipped. DSI shares fell ten percent for a second day running to close at 0.81 dirhams ($0.22) per share, its lowest for at least five years. Retail investors have been offloading the stock amid concerns about its business outlook, while investors have also been worried about the outcome of an ongoing investigation into its former management team. Emaar Properties, the largest stock on the index, fell 1.2 percent, while Damac Properties fell 2.2 percent and Union Properties was down 4.3 percent.
All eyes on oil supply after Opec deal to boost output | Financial Times
All eyes on oil supply after Opec deal to boost output | Financial Times:
The prospect of an extra 1m barrels per day of oil hitting the market would normally be considered uniformly bearish for prices.
But part of the Saudi-led decision to raise production stems from the risk of less global supplies later this year.
Venezuela’s economic and political crisis has already cut the Opec member’s output by 700,000 b/d in the past 12 months, taking producer curbs well over their initial targets and helping to propel prices above $80 a barrel last month.
The prospect of an extra 1m barrels per day of oil hitting the market would normally be considered uniformly bearish for prices.
But part of the Saudi-led decision to raise production stems from the risk of less global supplies later this year.
Venezuela’s economic and political crisis has already cut the Opec member’s output by 700,000 b/d in the past 12 months, taking producer curbs well over their initial targets and helping to propel prices above $80 a barrel last month.
Huge Saudi Generator Considering an IPO 'Sooner Rather than Later' - Bloomberg
Huge Saudi Generator Considering an IPO 'Sooner Rather than Later' - Bloomberg:
Saudi Arabia’s largest independent power plant developer is considering an initial public offering “sooner rather than later” to help feed its growing need for cash, according to the company’s chief executive officer. Paddy Padmanathan estimated ACWA Power International needs about $800 million a year in cash to help fund its goals for developing $6 billion to $8 billion a year of electricity generation plants. Additional funds could come from partners taking equity stakes in projects, from additional debt and a revolving credit line ACWA has. He declined to put a date on when the IPO might go forward. ACWA sold $814 million of bonds last year and sees an IPO as a way to “add a new currency” to its efforts to finance the business. The move would also increase the transparency of the closely-held company, which is based in Riyadh, and has some 37 operating power plants across eight nations.
Saudi Arabia’s largest independent power plant developer is considering an initial public offering “sooner rather than later” to help feed its growing need for cash, according to the company’s chief executive officer. Paddy Padmanathan estimated ACWA Power International needs about $800 million a year in cash to help fund its goals for developing $6 billion to $8 billion a year of electricity generation plants. Additional funds could come from partners taking equity stakes in projects, from additional debt and a revolving credit line ACWA has. He declined to put a date on when the IPO might go forward. ACWA sold $814 million of bonds last year and sees an IPO as a way to “add a new currency” to its efforts to finance the business. The move would also increase the transparency of the closely-held company, which is based in Riyadh, and has some 37 operating power plants across eight nations.
Mideast stocks update: Drake & Scull again weighs on Dubai index, Saudi slips | ZAWYA MENA Edition
Mideast stocks update: Drake & Scull again weighs on Dubai index, Saudi slips | ZAWYA MENA Edition:
Dubai contractor Drake & Scull slumped again in early trading on Tuesday, dragging the wider index down, while a retreat among some Saudi blue-chips pulled the kingdom's index down. Drake & Scull shares slid 10 percent to 0.81 dirhams ($0.22) as retail sellers shed the stock amid concerns about its business outlook. Investors are also worried about the outcome of an ongoing investigation into its former management team. Dubai Investments was another stock down, losing 1.6 percent. Air Arabia was trading 0.6 percent up. The stock has been under pressure in recent sessions as investors remained anxious about its exposure to private equity firm Abraaj, which this month filed for provisional liquidation.
Dubai contractor Drake & Scull slumped again in early trading on Tuesday, dragging the wider index down, while a retreat among some Saudi blue-chips pulled the kingdom's index down. Drake & Scull shares slid 10 percent to 0.81 dirhams ($0.22) as retail sellers shed the stock amid concerns about its business outlook. Investors are also worried about the outcome of an ongoing investigation into its former management team. Dubai Investments was another stock down, losing 1.6 percent. Air Arabia was trading 0.6 percent up. The stock has been under pressure in recent sessions as investors remained anxious about its exposure to private equity firm Abraaj, which this month filed for provisional liquidation.
Malaysia's 1MDB audits from 2010 to 2012 did not give 'true and fair' assessment, KPMG says | Reuters
Malaysia's 1MDB audits from 2010 to 2012 did not give 'true and fair' assessment, KPMG says | Reuters:
Auditors KPMG have notified Malaysia’s scandal-hit state fund 1Malaysia Development Berhad (1MDB) [TERRN.UL] that its audits for three years do not provide a “true and fair” assessment of the company, the fund said on Tuesday.
1MDB, which faces money-laundering probes in at least six countries, including the United States, was founded by former prime minister Najib Razak, who suffered a stunning election defeat by Prime Minister Mahathir Mohamad last month.
In reopening an investigation into the 1MDB case, Mahathir has vowed to bring back billions of dollars allegedly siphoned out of the fund and punish those responsible.
Auditors KPMG have notified Malaysia’s scandal-hit state fund 1Malaysia Development Berhad (1MDB) [TERRN.UL] that its audits for three years do not provide a “true and fair” assessment of the company, the fund said on Tuesday.
1MDB, which faces money-laundering probes in at least six countries, including the United States, was founded by former prime minister Najib Razak, who suffered a stunning election defeat by Prime Minister Mahathir Mohamad last month.
In reopening an investigation into the 1MDB case, Mahathir has vowed to bring back billions of dollars allegedly siphoned out of the fund and punish those responsible.
Abraaj founder faces criminal complaint over loan | Financial Times
Abraaj founder faces criminal complaint over loan | Financial Times:
A public prosecutor in the United Arab Emirates has accepted a criminal complaint against Abraaj’s Arif Naqvi for issuing a cheque without sufficient funds in a further blow to the founder of the embattled private equity firm. Mr Naqvi could face a custodial sentence in the UAE if he does not settle the debt. A judge in Sharjah is scheduled on Thursday to rule on whether Mr Naqvi, who is in the UK but a Dubai resident, and his colleague Muhammad Rafique Lakhani issued the cheque without the necessary funds, according to a prosecution clerk and copies of court documents. The value of the claim is Dh177m ($48.2m), the clerk said. The hearing is a further twist in the unravelling of Abraaj, the Dubai-based emerging markets specialist that says it has returned $6.5bn to investors over 16 years, but has been reeling for months over investor complaints that it mishandled their funds.
A public prosecutor in the United Arab Emirates has accepted a criminal complaint against Abraaj’s Arif Naqvi for issuing a cheque without sufficient funds in a further blow to the founder of the embattled private equity firm. Mr Naqvi could face a custodial sentence in the UAE if he does not settle the debt. A judge in Sharjah is scheduled on Thursday to rule on whether Mr Naqvi, who is in the UK but a Dubai resident, and his colleague Muhammad Rafique Lakhani issued the cheque without the necessary funds, according to a prosecution clerk and copies of court documents. The value of the claim is Dh177m ($48.2m), the clerk said. The hearing is a further twist in the unravelling of Abraaj, the Dubai-based emerging markets specialist that says it has returned $6.5bn to investors over 16 years, but has been reeling for months over investor complaints that it mishandled their funds.
Adnoc and Aramco to partner on $44bn Indian refinery - The National
Adnoc and Aramco to partner on $44bn Indian refinery - The National:
State-owned Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco signed an agreement to jointly invest in a $44 billion refinery on the west coast of India, the companies said on Monday.
Aramco, which in April signed an agreement to jointly develop the 1.2 million barrel per day Ratnagiri refining and chemicals complex in the western Indian state of Maharashtra with a group of Indian refiners, will share its stake with Adnoc, making it the first such agreement between the two energy companies.
"By investing in this project, we will both secure off-take of our crude to a key market for Adnoc, as well as strengthen access in one of the world’s largest and fastest growing refining and petrochemical markets," said Sultan Ahmed Al Jaber, UAE State Minister and Adnoc Group chief executive.
State-owned Abu Dhabi National Oil Company (Adnoc) and Saudi Aramco signed an agreement to jointly invest in a $44 billion refinery on the west coast of India, the companies said on Monday.
Aramco, which in April signed an agreement to jointly develop the 1.2 million barrel per day Ratnagiri refining and chemicals complex in the western Indian state of Maharashtra with a group of Indian refiners, will share its stake with Adnoc, making it the first such agreement between the two energy companies.
"By investing in this project, we will both secure off-take of our crude to a key market for Adnoc, as well as strengthen access in one of the world’s largest and fastest growing refining and petrochemical markets," said Sultan Ahmed Al Jaber, UAE State Minister and Adnoc Group chief executive.
Fitch Ratings upgrades QIB’s rating to stable - The Peninsula Qatar
Fitch Ratings upgrades QIB’s rating to stable - The Peninsula Qatar:
Fitch Ratings has upgraded Qatar Islamic Bank’s (QIB), Qatar’s leading Islamic Bank, outlook to ‘stable’. The action follows the revision of the Qatari sovereign’s Outlook to Stable from Negative and affirmation of the country’s Long-Term IDR at ‘AA-’ and reflects Fitch’s view that Qatar has successfully managed the fallout from last year’s rupture of trade, financial and diplomatic relations. Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding. The fiscal deficit has narrowed sharply and we expect it to turn into a surplus in 2019. The economy has reconfigured its supply chains and continues to grow at a robust pace, the ratings agency noted.
Fitch Ratings has upgraded Qatar Islamic Bank’s (QIB), Qatar’s leading Islamic Bank, outlook to ‘stable’. The action follows the revision of the Qatari sovereign’s Outlook to Stable from Negative and affirmation of the country’s Long-Term IDR at ‘AA-’ and reflects Fitch’s view that Qatar has successfully managed the fallout from last year’s rupture of trade, financial and diplomatic relations. Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding. The fiscal deficit has narrowed sharply and we expect it to turn into a surplus in 2019. The economy has reconfigured its supply chains and continues to grow at a robust pace, the ratings agency noted.
Monday 25 June 2018
Oil Falls Below $75 in London After Saudis Pledge to Boost Supply - Bloomberg
Oil Falls Below $75 in London After Saudis Pledge to Boost Supply - Bloomberg:
Crude fell after Saudi Arabia and Russia signaled an impending production increase by OPEC and allied nations will be larger than some estimated. Futures slid 1.1 percent in London on Monday. Oil chiefs from the world’s top two crude exporters indicated that last week’s 24-nation accord will add 1 million barrels to daily supplies, more than the 700,000-barrel figure cited by several cartel members. Meanwhile, U.S. crude futures for prompt delivery fell less than other contracts amid concern supplies may tighten at a key American storage complex in Oklahoma. “It’s really just the OPEC volumes coming to market pressuring” prices, said Michael Loewen, a commodities strategist at Scotiabank in Toronto.
Crude fell after Saudi Arabia and Russia signaled an impending production increase by OPEC and allied nations will be larger than some estimated. Futures slid 1.1 percent in London on Monday. Oil chiefs from the world’s top two crude exporters indicated that last week’s 24-nation accord will add 1 million barrels to daily supplies, more than the 700,000-barrel figure cited by several cartel members. Meanwhile, U.S. crude futures for prompt delivery fell less than other contracts amid concern supplies may tighten at a key American storage complex in Oklahoma. “It’s really just the OPEC volumes coming to market pressuring” prices, said Michael Loewen, a commodities strategist at Scotiabank in Toronto.
Saudi Aramco CEO says has 2 million barrels per day of spare capacity | Reuters
Saudi Aramco CEO says has 2 million barrels per day of spare capacity | Reuters:
Oil giant Saudi Aramco has spare capacity of 2 million barrels per day (bpd) and can meet additional oil demand in case of any interruption in supplies, the company head said on Monday, days after OPEC agreed a modest increase in oil output from July.
Aramco, the world’s third-largest crude oil producer, is producing about 10 million bpd and has the capacity to produce 12 million bpd, Amin Nasser, the company’s chief executive, said on the sidelines of a conference in New Delhi.
The Organization of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, and non-OPEC producers including Russia agreed over the last few days on a modest increase in oil production from July, following calls from major consumers to curb rising fuel costs.
Oil giant Saudi Aramco has spare capacity of 2 million barrels per day (bpd) and can meet additional oil demand in case of any interruption in supplies, the company head said on Monday, days after OPEC agreed a modest increase in oil output from July.
Aramco, the world’s third-largest crude oil producer, is producing about 10 million bpd and has the capacity to produce 12 million bpd, Amin Nasser, the company’s chief executive, said on the sidelines of a conference in New Delhi.
The Organization of the Petroleum Exporting Countries (OPEC), de facto led by Saudi Arabia, and non-OPEC producers including Russia agreed over the last few days on a modest increase in oil production from July, following calls from major consumers to curb rising fuel costs.
Amid Arab boycott, Qatar's new friends find rich openings | Reuters
Amid Arab boycott, Qatar's new friends find rich openings | Reuters:
Six months ago Serkan Ucar arrived in Doha to scope out business opportunities - away from his usual patch. The mission looks set to pay off handsomely, as the Turkish entrepreneur expects to win a first contract to help build an iconic 2022 World Cup stadium.
Since several Arab countries launched an economic boycott of Qatar a year ago, the tiny Gulf state has had to find alternative partners for trade and investment. Aided by its massive natural gas wealth, it has rapidly made new friends.
A year ago Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut transport and trade links with Doha, accusing it of backing terrorism - a charge it strongly denies.
Six months ago Serkan Ucar arrived in Doha to scope out business opportunities - away from his usual patch. The mission looks set to pay off handsomely, as the Turkish entrepreneur expects to win a first contract to help build an iconic 2022 World Cup stadium.
Since several Arab countries launched an economic boycott of Qatar a year ago, the tiny Gulf state has had to find alternative partners for trade and investment. Aided by its massive natural gas wealth, it has rapidly made new friends.
A year ago Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut transport and trade links with Doha, accusing it of backing terrorism - a charge it strongly denies.
India plans to participate in oil block auctions in UAE, says oil minister | Reuters
India plans to participate in oil block auctions in UAE, says oil minister | Reuters:
India is in talks with some UAE-based companies to jointly bid for oil blocks in UAE, India’s oil minister said on Monday.
“We are in talks that India could bid in the next licensing round of UAE with some Middle Eastern nation companies like Mubadala,” Dharmendra Pradhan, India’s oil minister said.
“Oil producers don’t want to miss India’s bus,” Pradhan said referring to India’s enhanced role in global markets.
India is in talks with some UAE-based companies to jointly bid for oil blocks in UAE, India’s oil minister said on Monday.
“We are in talks that India could bid in the next licensing round of UAE with some Middle Eastern nation companies like Mubadala,” Dharmendra Pradhan, India’s oil minister said.
“Oil producers don’t want to miss India’s bus,” Pradhan said referring to India’s enhanced role in global markets.
MIDEAST DEBT-Bahrain bond-sukuk spread balloons as investors disagree on credit outlook | Reuters
MIDEAST DEBT-Bahrain bond-sukuk spread balloons as investors disagree on credit outlook | Reuters:
The price gap between Bahrain’s U.S. dollar conventional and Islamic bonds has widened to record levels, indicating a sharp disagreement between global investors and regional institutions over the country’s ability to avoid a funding crunch. Bahrain’s international sukuk have traditionally yielded less than its conventional paper. But that gap has ballooned in the past few months, suggesting European and U.S. investors - who focus on the conventional bonds - have been dumping the debt while Islamic investors, who are mostly from the Gulf region, have largely maintained their exposure. A huge budget deficit relative to the small size of its economy, and delays in fiscal reforms, have increasingly forced Bahrain to rely on international debt markets since oil prices slumped in 2014.
The price gap between Bahrain’s U.S. dollar conventional and Islamic bonds has widened to record levels, indicating a sharp disagreement between global investors and regional institutions over the country’s ability to avoid a funding crunch. Bahrain’s international sukuk have traditionally yielded less than its conventional paper. But that gap has ballooned in the past few months, suggesting European and U.S. investors - who focus on the conventional bonds - have been dumping the debt while Islamic investors, who are mostly from the Gulf region, have largely maintained their exposure. A huge budget deficit relative to the small size of its economy, and delays in fiscal reforms, have increasingly forced Bahrain to rely on international debt markets since oil prices slumped in 2014.
MIDEAST STOCKS-Dubai hits lowest since Jan 2016 on DSI, Saudi loses momentum | Reuters
MIDEAST STOCKS-Dubai hits lowest since Jan 2016 on DSI, Saudi loses momentum | Reuters:
Dubai stocks slumped on Monday to its lowest since January 2016, led by losses in contractor Drake & Scull, while Saudi stocks slipped after gains ahead of index compiler MSCI’s move to lift Riyadh to its emerging markets benchmark. Drake & Scull shares fell ten percent to close at 0.9 dirhams on retail selling after it fell below a key support level of one dirham. Concerns about Drake & Scull’s business outlook and ongoing investigations against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Dubai stocks slumped on Monday to its lowest since January 2016, led by losses in contractor Drake & Scull, while Saudi stocks slipped after gains ahead of index compiler MSCI’s move to lift Riyadh to its emerging markets benchmark. Drake & Scull shares fell ten percent to close at 0.9 dirhams on retail selling after it fell below a key support level of one dirham. Concerns about Drake & Scull’s business outlook and ongoing investigations against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Russia-Saudi oil cooperation to bring stability to markets - RDIF's Dmitriev | ZAWYA MENA Edition
Russia-Saudi oil cooperation to bring stability to markets - RDIF's Dmitriev | ZAWYA MENA Edition:
The joint deal by OPEC and other oil-producing allies to raise output demonstrates the strength of the Russia-Saudi energy alliance, which will help stabilise the market for many years to come, the head of Russia's sovereign wealth fund said on Monday.
The Organization of the Petroleum Exporting Countries and other top crude producers agreed to raise output from July by about 1 million barrels per day (bpd), after Saudi Arabia persuaded arch-rival Iran to cooperate.
Ahead of OPEC's Vienna meeting, Saudi Arabia and Russia, the world's top oil producers, said they had a general consensus that the OPEC+ format should be "institutionalised" and extended until 2019 and beyond to monitor the market and change output if needed.
The joint deal by OPEC and other oil-producing allies to raise output demonstrates the strength of the Russia-Saudi energy alliance, which will help stabilise the market for many years to come, the head of Russia's sovereign wealth fund said on Monday.
The Organization of the Petroleum Exporting Countries and other top crude producers agreed to raise output from July by about 1 million barrels per day (bpd), after Saudi Arabia persuaded arch-rival Iran to cooperate.
Ahead of OPEC's Vienna meeting, Saudi Arabia and Russia, the world's top oil producers, said they had a general consensus that the OPEC+ format should be "institutionalised" and extended until 2019 and beyond to monitor the market and change output if needed.
Co-CEOs of Abraaj investment management business resign from board | ZAWYA MENA Edition
Co-CEOs of Abraaj investment management business resign from board | ZAWYA MENA Edition:
The co-chief executives of Abraaj Investment Management Ltd (AIML) are stepping down from the board of the unit, days after the Dubai-based firm agreed to sell the bulk of the business to Colony Capital.
This is the latest shakeup at Abraaj, the Middle East and Africa's largest private equity firm, which has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund.
The group has denied it misused the funds.
The co-chief executives of Abraaj Investment Management Ltd (AIML) are stepping down from the board of the unit, days after the Dubai-based firm agreed to sell the bulk of the business to Colony Capital.
This is the latest shakeup at Abraaj, the Middle East and Africa's largest private equity firm, which has been bruised by a dispute with some of its investors over the use of their money in a $1 billion healthcare fund.
The group has denied it misused the funds.
Dubai’s Abraaj Sells Middlesex Campus to Amanat for $100 Million - Bloomberg
Dubai’s Abraaj Sells Middlesex Campus to Amanat for $100 Million - Bloomberg:
Abraaj Group, the buyout fund that’s undergoing a court-supervised restructuring, reached an agreement to sell its stake in Middlesex University’s Dubai campus to Amanat Holdings PJSC for about $100 million, people with knowledge of the matter said.
An initial agreement has been signed and the deal is yet to close, the people said, asking not to be identified because the information is private. Dubai-based Amanat would own all of the U.K.-based university’s campus, which had annual revenue of about $40 million, one of the people said. Spokespeople for Dubai-based Abraaj and Amanat declined to comment.
Amanat shares climbed as much as 3.9 percent in Dubai, before paring gains to 1.6 percent at 11:30 a.m. The shares were poised for their biggest increase in more than a month. Dubai’s main stock gauge declined as much as 1.2 percent.
Abraaj Group, the buyout fund that’s undergoing a court-supervised restructuring, reached an agreement to sell its stake in Middlesex University’s Dubai campus to Amanat Holdings PJSC for about $100 million, people with knowledge of the matter said.
An initial agreement has been signed and the deal is yet to close, the people said, asking not to be identified because the information is private. Dubai-based Amanat would own all of the U.K.-based university’s campus, which had annual revenue of about $40 million, one of the people said. Spokespeople for Dubai-based Abraaj and Amanat declined to comment.
Amanat shares climbed as much as 3.9 percent in Dubai, before paring gains to 1.6 percent at 11:30 a.m. The shares were poised for their biggest increase in more than a month. Dubai’s main stock gauge declined as much as 1.2 percent.
Future of Big Oil Increasingly Shaped by the Fate of Global Gas - Bloomberg
Future of Big Oil Increasingly Shaped by the Fate of Global Gas - Bloomberg:
Big Oil’s fortunes are becoming tied more closely to natural gas than ever before.
Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied natural gas projects and Exxon is punching back with two major projects of its own, in Papua New Guinea and Mozambique.
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Big Oil’s fortunes are becoming tied more closely to natural gas than ever before.
Majors including Royal Dutch Shell Plc and BP Plc have boosted their proportion of gas output in recent years, helping them trim Exxon Mobil Corp.’s lead as the world’s most valuable oil company. Meanwhile Chevron Corp. added two giant Australian liquefied natural gas projects and Exxon is punching back with two major projects of its own, in Papua New Guinea and Mozambique.
Natural gas, seen as a clean bridge from coal to renewables, offers the best long-term demand growth among fossil fuels, particularly in its easy-to-transport liquefied form. At the same time, gas exploration comes with high upfront costs and long payback periods. How the majors handle those issues will become key drivers for success moving forward.
Fresh-Out-on-Bail Jeweler Vows to Revive Empire - Bloomberg
Fresh-Out-on-Bail Jeweler Vows to Revive Empire - Bloomberg:
Shares of Atlas Jewellery India Ltd. are set for their biggest monthly gain this year as investors bet on a quick resolution of its financial troubles now that the founder is out of prison.
M.M. Ramachandran was released on bail in June more than two years after a Dubai court sentenced him to three years for defaulting on loans. He said the company has paid off part of the money owed to a consortium of banks by selling some assets in Oman.
At a time when Indian authorities are seeking to bring to book absconding jeweler Nirav Modi for allegedly masterminding a $2 billion bank fraud, investors are cheering the release of Ramachandran on hopes he may hasten debt repayment. Shares of the company surged as much as 88 percent in June to a three-year high before paring the advance to 26 percent as of Monday.
Shares of Atlas Jewellery India Ltd. are set for their biggest monthly gain this year as investors bet on a quick resolution of its financial troubles now that the founder is out of prison.
M.M. Ramachandran was released on bail in June more than two years after a Dubai court sentenced him to three years for defaulting on loans. He said the company has paid off part of the money owed to a consortium of banks by selling some assets in Oman.
At a time when Indian authorities are seeking to bring to book absconding jeweler Nirav Modi for allegedly masterminding a $2 billion bank fraud, investors are cheering the release of Ramachandran on hopes he may hasten debt repayment. Shares of the company surged as much as 88 percent in June to a three-year high before paring the advance to 26 percent as of Monday.
Oddity in Bahrain Bonds a Sign Faith in Gulf Aid Not Enough - Bloomberg
Oddity in Bahrain Bonds a Sign Faith in Gulf Aid Not Enough - Bloomberg:
There’s an anomaly forming in Bahrain’s debt market.
The yield on the island kingdom’s dollar bonds maturing July 2022 is about 150 basis points higher than Islamic securities due two years later, according to data compiled by Bloomberg. That’s unusual because longer-dated notes typically have higher yields.
The reason is that demand for the nation’s conventional bonds has waned from investors who were once satisfied with the implicit support Bahrain received from its Gulf allies. Meanwhile, a slowdown in Islamic debt sales has kept demand for Bahrain’s sukuk buoyant by Shariah-compliant investors, who usually buy and hold the notes till maturity.
There’s an anomaly forming in Bahrain’s debt market.
The yield on the island kingdom’s dollar bonds maturing July 2022 is about 150 basis points higher than Islamic securities due two years later, according to data compiled by Bloomberg. That’s unusual because longer-dated notes typically have higher yields.
The reason is that demand for the nation’s conventional bonds has waned from investors who were once satisfied with the implicit support Bahrain received from its Gulf allies. Meanwhile, a slowdown in Islamic debt sales has kept demand for Bahrain’s sukuk buoyant by Shariah-compliant investors, who usually buy and hold the notes till maturity.
MIDEAST STOCKS-Dubai dragged down by DSI, Saudi flat after recent gains | ZAWYA MENA Edition
MIDEAST STOCKS-Dubai dragged down by DSI, Saudi flat after recent gains | ZAWYA MENA Edition:
Dubai stocks fell more than one percent in early trade on Monday, led by losses in contractor Drake & Scull, while Saudi stocks were flat after gains ahead of index compiler MSCI's move to lift Riyadh to its emerging markets benchmark.
Drake & Scull shares were down nine percent at 0.910 dirhams ($0.2478) in morning trade on retail selling after it fell below a key support level of one dirham.
Concerns about Drake & Scull's business outlook and ongoing investigation against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Dubai stocks fell more than one percent in early trade on Monday, led by losses in contractor Drake & Scull, while Saudi stocks were flat after gains ahead of index compiler MSCI's move to lift Riyadh to its emerging markets benchmark.
Drake & Scull shares were down nine percent at 0.910 dirhams ($0.2478) in morning trade on retail selling after it fell below a key support level of one dirham.
Concerns about Drake & Scull's business outlook and ongoing investigation against its previous management are weighing on the stock, traders said. The stock is down over 60 percent so far this year.
Saudi Aramco eyes presence in India's entire energy sector, says CEO | Reuters
Saudi Aramco eyes presence in India's entire energy sector, says CEO | Reuters:
Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire “value chain” of India’s energy sector, its Chief Executive Officer Amin Nasser said on Monday in New Delhi.
The company did not spell out specifics of the plan but indicated that fuel marketing is one of them.
The company is looking at “all options” to enter fuel retailing through partnerships with Indian oil companies, Nasser said.
Saudi Arabian state-owned oil company Saudi Aramco wants to be present in the entire “value chain” of India’s energy sector, its Chief Executive Officer Amin Nasser said on Monday in New Delhi.
The company did not spell out specifics of the plan but indicated that fuel marketing is one of them.
The company is looking at “all options” to enter fuel retailing through partnerships with Indian oil companies, Nasser said.
Malaysia arrests Najib ex-aide in 1MDB probe: media | Reuters
Malaysia arrests Najib ex-aide in 1MDB probe: media | Reuters:
Malaysian authorities have made the first arrest in a renewed probe into the multi-billion dollar scandal at state fund 1MDB, remanding a former aide of ousted prime minister Najib Razak to assist in investigations, Bernama news reported on Monday.
Malaysia’s new government led by the 92-year-old Mahathir Mohamad reopened investigations into billions of dollars allegedly siphoned out of 1Malaysia Development Berhad (1MDB)after Najib’s administration lost a general election in May, fuelled by anger over the scandal and rising living costs.
On Monday, a magistrate’s court granted an application by anti-graft officials to remand Najib’s former aide for a week to assist in their investigations into 1MDB, according to a report by national newswire Bernama.
Malaysian authorities have made the first arrest in a renewed probe into the multi-billion dollar scandal at state fund 1MDB, remanding a former aide of ousted prime minister Najib Razak to assist in investigations, Bernama news reported on Monday.
Malaysia’s new government led by the 92-year-old Mahathir Mohamad reopened investigations into billions of dollars allegedly siphoned out of 1Malaysia Development Berhad (1MDB)after Najib’s administration lost a general election in May, fuelled by anger over the scandal and rising living costs.
On Monday, a magistrate’s court granted an application by anti-graft officials to remand Najib’s former aide for a week to assist in their investigations into 1MDB, according to a report by national newswire Bernama.
Oil prices drop on OPEC's output deal, but markets to stay tight | Reuters
Oil prices drop on OPEC's output deal, but markets to stay tight | Reuters:
Oil prices fell on Monday as traders factored in an expected 1 million barrels per day (bpd) output increase in the wake of an Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna last week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
Oil prices fell on Monday as traders factored in an expected 1 million barrels per day (bpd) output increase in the wake of an Organization of the Petroleum Exporting Countries (OPEC) meeting in Vienna last week.
Despite this, analysts said global oil markets would likely remain relatively tight this year.
Brent crude futures LCOc1 were at $74.25 per barrel at 0636 GMT, down 1.7 percent from their last close.
Western business schools push into Iran | Financial Times
Western business schools push into Iran | Financial Times:
As the daughter of a company founder, Solmaz Mohammadlou had long harboured ambitions to establish her own business. Shortly after joining her father’s manufacturing company, the 34-year-old chemistry graduate looked for a masters degree that would give her the confidence and technical skills she needed.
However, as an Iranian living in Tehran, Ms Mohammadlou’s business school options were limited. So she signed up for a part-time executive MBA course run by France’s Neoma Business School. The course opened last year.
Now she flies to Paris every month to spend three days attending lectures on campus. Between French visits, she has teaching sessions in Tehran.
As the daughter of a company founder, Solmaz Mohammadlou had long harboured ambitions to establish her own business. Shortly after joining her father’s manufacturing company, the 34-year-old chemistry graduate looked for a masters degree that would give her the confidence and technical skills she needed.
However, as an Iranian living in Tehran, Ms Mohammadlou’s business school options were limited. So she signed up for a part-time executive MBA course run by France’s Neoma Business School. The course opened last year.
Now she flies to Paris every month to spend three days attending lectures on campus. Between French visits, she has teaching sessions in Tehran.
Sunday 24 June 2018
Exclusive: NMC Health eyes profit increase in 2018, fuelled by $2bn warchest - The National
Exclusive: NMC Health eyes profit increase in 2018, fuelled by $2bn warchest - The National
UAE-based NMC Health, which joined the UK’s FTSE 100 list of the companies with the highest market capitalisation last September, has $2 billion of funding available for investments and acquisitions in the coming years, and expects another profitable year in 2018 as it expands its operations globally, its chairman said.
“I have $2bn at my disposal to acquire companies as and when we can get them,” BR Shetty, who is also the founder of NMC Health, told The National. “For the want of money we will not eject anybody. We are waiting for a good chance.”
NMC is in negotiations with several parties and expects deals to be announced before the end of the year. Africa is a “good opportunity”, Mr Shetty said, as are Turkey, Europe, America, and the UK – which NMC hopes to enter by 2019. The company prefers to acquire “running hospitals that require funding and our assistance, for example through a management contract”, rather than greenfield projects - building a new hospital from scratch - which takes a long time, he added.
Diversification and FDI drive Sharjah’s economy
Sharjah’s policy of diversification and its success in attracting foreign direct investment is driving the economy towards new heights, according to a new report revealed on Sunday.
The Report Sharjah 2018 by Oxford Business Group stated that Sharjah authorities have been undertaking a range of measures to boost foreign investment flows, supported by competitive advantages such as strong connectivity … and a culture of entrepreneurship.
According to the Sharjah FDI Office, the emirate attracted Dh5.97 billion of foreign direct investment in 2017 compared to Dh912 million in 2016.
After MSCI upgrade, Tadawul chief turns to the next challenge for Saudi Arabia
Khalid Al-Hussan seemed to be enjoying himself last Thursday at the Riyadh headquarters of Tadawul, the Saudi Arabia stock exchange, of which he is chief executive. In fact, a quiet smile of satisfaction rarely left his face, even under the bright glare of the television lights of the international media.
“We’ve all worked very hard and we’re very pleased,” he told Arab News once the TV cameras had left, adding that it had been “one of the best days” of his professional career.
Al-Hussan had just left the podium of a press conference — shared with Tadawul chairperson Sarah Al-Suhaimi and the chairman of the Capital Markets Authority, Mohammed Al-Kuwaiz — to announce the fact that, after three years of preparation, Saudi Arabia had finally been included in MSCI’s Emerging Markets index.
“We’ve all worked very hard and we’re very pleased,” he told Arab News once the TV cameras had left, adding that it had been “one of the best days” of his professional career.
Al-Hussan had just left the podium of a press conference — shared with Tadawul chairperson Sarah Al-Suhaimi and the chairman of the Capital Markets Authority, Mohammed Al-Kuwaiz — to announce the fact that, after three years of preparation, Saudi Arabia had finally been included in MSCI’s Emerging Markets index.
Why women behind the wheel will drive the Saudi economy
The women of Saudi Arabia won’t be the only ones celebrating the lifting of the driving ban by taking the wheel in big numbers.
The “teenage scribblers” — as one British politician famously described the cadre of analysts who deliver their verdicts on economic policy decisions — will also be reaching for their keyboards to assess what it means for gross domestic product (GDP), the industrial and services sectors, and the standard of living indices in the Kingdom.
So far, the effects have been regarded as almost wholly beneficial. In a nutshell, allowing women to drive will increase GDP significantly, boost the quantity and quality of the Saudi workforce, and enhance parts of the economy — like automotive production and sales, the insurance business, and the retail and medical sectors — that have been identified as crucial to the success of the Vision 2030 plan to diversify away from oil dependency.
The “teenage scribblers” — as one British politician famously described the cadre of analysts who deliver their verdicts on economic policy decisions — will also be reaching for their keyboards to assess what it means for gross domestic product (GDP), the industrial and services sectors, and the standard of living indices in the Kingdom.
So far, the effects have been regarded as almost wholly beneficial. In a nutshell, allowing women to drive will increase GDP significantly, boost the quantity and quality of the Saudi workforce, and enhance parts of the economy — like automotive production and sales, the insurance business, and the retail and medical sectors — that have been identified as crucial to the success of the Vision 2030 plan to diversify away from oil dependency.
Fitch upgrades Doha Bank’s outlook to stable from negative
Fitch Ratings has upgraded the outlook of Doha Bank from ‘Negative’ to ‘Stable’ and affirmed the long-term Issuer Default Ratings (IDR) at ‘A’.
The upgrade to stable, follows the revision of the Qatari sovereign’s Outlook to Stable from Negative and affirmation of the country’s Long-Term IDR at ‘AA-’, and reflects Fitch’s view that Qatar has successfully managed the fallout from last year’s rupture of trade, financial and diplomatic relations with the Arab quartet consisting of the UAE, Saudi Arabia, Bahrain and Egypt.
Public sector liquidity injections have stabilised the banking sector and stemmed the outflow of non-domestic funding.
Local retail investors help QSE surpass 9,000 mark
The Qatar Stock Exchange on Sunday opened the week strong to surpass 9,000 points, mainly on the back of buying interests of local retail investors.
An across-the-board-buying – particularly in consumer goods, telecom, real estate, insurance and banks – led the 20-stock Qatar Index to gain 0.93% to 9,005.34 points.
Doha Bank-sponsored exchange traded fund QETF gained 0.49%, while Masraf Al Rayan-sponsored QATR fell 2.28%.
Doha Bank-sponsored exchange traded fund QETF gained 0.49%, while Masraf Al Rayan-sponsored QATR fell 2.28%.
Saudi Arabia's $90 Billion Reason to Allow Women to Drive
Allowing Saudi women to drive could help the kingdom reap as much income as selling shares in Saudi Aramco.
The move, which went into effect on Sunday, could add as much as $90 billion to economic output by 2030, with the benefits extending beyond that date, according to Bloomberg Economics. Selling as much as 5 percent stake in Saudi Arabian Oil Co. -- at the most optimistic valuation -- could generate about $100 billion.
Saudi Arabia ended its status as the last country on earth to prohibit women from taking to the wheel. Some women drove through the still-packed streets of the capital early Sunday while others drove in convoys around Riyadh neighborhoods in celebration of the ban’s end.
Boursa Kuwait eyes MSCI emerging markets status
Morgan Stanley Capital International (MSCI) has announced that it will include the Boursa Kuwait in the MSCI Kuwait Index in its 2019 Annual Market Classification Review for a potential reclassification from Frontier Markets to Emerging Markets status.
MSCI is one of the world’s top providers of research-driven insights and tools for institutional investors.
The reclassification from frontier to emerging markets is a major achievement for any country which typically brings with it large capital inflows from international investors.
JPMorgan subsidiary to sell Saudi Investment Bank stake for $203 million
A subsidiary of JPMorgan Chase & Co (JPM.N) has agreed to sell its minority stake in Saudi Investment Bank 1030.SE for 759.3 million riyals ($203 million), Saudi Investment Bank said in a statement on Sunday.
JPMorgan International Finance, which has held a minority stake in Saudi Investment Bank since 1976, will divest its holding by selling its shares back to Saudi Investment Bank, JPMorgan said in a separate statement about the deal.
JPMorgan, which is the only U.S. bank providing both commercial banking and securities services in the kingdom, did not disclose the size of the stake or the financial terms of the deal.
Etihad tells pilots they can join rival Emirates on secondment
Etihad Airways has told its pilots they can join rival Emirates on a temporary basis for two years, according to an internal Etihad email seen by Reuters, as the downsizing of the Abu Dhabi carrier’s operations helps fill a pilot shortage for Dubai’s Emirates.
Etihad, which last week reported a $1.5 billion annual loss, has been overhauling its business since 2016, replacing its top executive, dropping unprofitable routes and shrinking its fleet.
The agreement is also likely to help Emirates, where a pilot shortage forced it to cancel some flights this summer. Management had said the shortage was a short-term issue.
MIDEAST STOCKS-Saudi insurance stocks soar as ban on female drivers is lifted
Saudi insurers posted significant gains on Sunday, on hopes that insurance volumes will rise as women began driving in Saudi Arabia, in the end of the world’s last ban on female drivers.
This lifted the Saudi exchange, which outperformed other regional markets, and which was still riding the wave of MSCI’s announcement last week that it would add the kingdom’s stock market to its emerging markets benchmark.
Saudi Arabia’s addition could help attract $40 billion from foreign funds, the chairman of the Saudi Capital Market Authority told Reuters last week. The move followed the decision by another index provider, FTSE Russell, to give Saudi Arabia emerging market status earlier this year.
Saudis Pledge Decisive Oil Supply Boost to Comfort Consumers
Saudi Arabia promised to act decisively to keep oil prices under control, signaling a real supply boost approaching 1 million barrels a day is on the way to global markets.
“We will do whatever is necessary to keep the market in balance,” Saudi Energy Minister Khalid Al-Falih told reporters on Saturday, while sitting alongside his Russian counterpart Alexander Novak at OPEC headquarters in Vienna. Consumers can rest assured that “their energy supplies are available, are being stewarded by a responsible group of producers.”
Al-Falih went out of his way to give a detailed explanation of how the so-called OPEC+ deal will work, clarifying a vaguely worded agreement and contradictory statements from other ministers that spurred a rally in crude futures on Friday. It would be troubling if that jump in prices became a trend, the minister said, adding that producers with spare capacity, such as Saudi Arabia, can fill any gap left by falling production elsewhere.
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