Abraaj woes put Gulf’s corporate governance under spotlight | Financial Times:
When the pressure intensified on Abraaj over allegations that it had mishandled investors’ funds, Arif Naqvi, the private equity group’s founder, handed over the reins of the company’s fund business to “drive the necessary operational and governance changes”.
The Dubai-based buyout house said the move would “ensure that the firm continues to perform at the highest levels”.
But six months on, Abraaj is being broken apart as a court-appointed liquidator oversees a restructuring and Mr Naqvi’s fall from grace has renewed scrutiny on the standards of corporate governance in the oil-rich Gulf.
Tuesday, 31 July 2018
Qatar spends £3bn as vote of confidence in post-Brexit Britain | Financial Times
Qatar spends £3bn as vote of confidence in post-Brexit Britain | Financial Times:
Qatar has poured almost £3bn into UK real estate and infrastructure during the past 16 months in a vote of confidence in post-Brexit Britain.
Doha has made the investments even as it grappled with its own financial challenges, triggered after Saudi Arabia and three other nations imposed a regional blockade on the gas-rich Gulf state just over a year ago. They include £1.1bn into infrastructure projects and £1.7bn into real estate, Qatari officials said, and are part of a £5bn investment pledge Doha made to the UK in March last year.
“We committed we would do £5bn in three years and we are already ahead of this,” Ali Shareef al-Emadi, Qatar’s finance minister, told the Financial Times. “We expect during the [next] few months [going] forward we are going to do more investments.”
Qatar has poured almost £3bn into UK real estate and infrastructure during the past 16 months in a vote of confidence in post-Brexit Britain.
Doha has made the investments even as it grappled with its own financial challenges, triggered after Saudi Arabia and three other nations imposed a regional blockade on the gas-rich Gulf state just over a year ago. They include £1.1bn into infrastructure projects and £1.7bn into real estate, Qatari officials said, and are part of a £5bn investment pledge Doha made to the UK in March last year.
“We committed we would do £5bn in three years and we are already ahead of this,” Ali Shareef al-Emadi, Qatar’s finance minister, told the Financial Times. “We expect during the [next] few months [going] forward we are going to do more investments.”
Abraaj founder faces fresh criminal complaint over $300m loan | Financial Times
Abraaj founder faces fresh criminal complaint over $300m loan | Financial Times:
The founder of Abraaj has been hit with another criminal case in the United Arab Emirates for allegedly issuing a $217m cheque with insufficient funds, as the private equity group struggles to effect a court-driven restructuring.
Hamid Jafar, a prominent businessman, has opened another bounced cheque case in Sharjah only two weeks after the apparent resolution of an earlier $48m case.
The cheques relate to a $300m loan issued by Mr Jafar to Dubai-based Abraaj. Habib al-Mulla, lawyer for Abraaj founder Arif Naqvi, said the case was scheduled to be heard by a Sharjah court on August 14.
The founder of Abraaj has been hit with another criminal case in the United Arab Emirates for allegedly issuing a $217m cheque with insufficient funds, as the private equity group struggles to effect a court-driven restructuring.
Hamid Jafar, a prominent businessman, has opened another bounced cheque case in Sharjah only two weeks after the apparent resolution of an earlier $48m case.
The cheques relate to a $300m loan issued by Mr Jafar to Dubai-based Abraaj. Habib al-Mulla, lawyer for Abraaj founder Arif Naqvi, said the case was scheduled to be heard by a Sharjah court on August 14.
Deyaar makes profit but cash pile is reduced | ZAWYA MENA Edition
Deyaar makes profit but cash pile is reduced | ZAWYA MENA Edition:
Dubai-based Deyaar Development published its second quarter accounts on Monday which show that the developer continued to make a profit, but that its earnings continued to rely on one-off factors, such as writebacks against previously-made provisions for potential bad debts.
The company reported a 25.2 million United Arab Emirates dirham ($6.9 million) profit for the second quarter of 2018, a 28 percent decline on the 35.2 million dirham profit made in the same period a year ago. Revenue for the quarter also declined by 21 percent to 137.6 million dirhams, although it remained largely flat for the half-year at 314.1 million dirhams.
The company wrote back a 26.7 million dirham provision it had previously made against an investment in a joint venture during the period, and its cash flow statement showed a 102.7 million outflow for the six-month period, leaving it with a positive cash balance of 237.8 million.
Dubai-based Deyaar Development published its second quarter accounts on Monday which show that the developer continued to make a profit, but that its earnings continued to rely on one-off factors, such as writebacks against previously-made provisions for potential bad debts.
The company reported a 25.2 million United Arab Emirates dirham ($6.9 million) profit for the second quarter of 2018, a 28 percent decline on the 35.2 million dirham profit made in the same period a year ago. Revenue for the quarter also declined by 21 percent to 137.6 million dirhams, although it remained largely flat for the half-year at 314.1 million dirhams.
The company wrote back a 26.7 million dirham provision it had previously made against an investment in a joint venture during the period, and its cash flow statement showed a 102.7 million outflow for the six-month period, leaving it with a positive cash balance of 237.8 million.
Sharjah Publishing City unveils first dual licence | GulfNews.com
Sharjah Publishing City unveils first dual licence | GulfNews.com:
The Sharjah Publishing City (SPC) under the umbrella of the Sharjah Book Authority and the world’s first publishing free zone, have signed an agreement with the Sharjah Economic Development Department (SEDD) to launch a new dual trade licence system for businesses operating in the SPC.
The new dual licence is another investment advantage that the SPC provides.
The dual licence will grant companies two different approvals; the first is issued by the SPC administration, and the second by SEDD, which will allow companies to take advantage of investment opportunities within the free zone as well as the UAE’s mainland markets.
The Sharjah Publishing City (SPC) under the umbrella of the Sharjah Book Authority and the world’s first publishing free zone, have signed an agreement with the Sharjah Economic Development Department (SEDD) to launch a new dual trade licence system for businesses operating in the SPC.
The new dual licence is another investment advantage that the SPC provides.
The dual licence will grant companies two different approvals; the first is issued by the SPC administration, and the second by SEDD, which will allow companies to take advantage of investment opportunities within the free zone as well as the UAE’s mainland markets.
Abraaj founder Arif Naqvi faces new bounced cheque case | GulfNews.com
Abraaj founder Arif Naqvi faces new bounced cheque case | GulfNews.com:
Arif Naqvi, founder of the beleaguered private equity firm Abraaj, is facing a fresh charge of bounced cheque, according to lawyers close to the case.
Sharjah-based Crescent Group founder Hamid Jafar has filed a $217 million (Dh798m) bounced cheque case against Naqvi. The new case comes after a similar case relating to a cheque bounce of $300 million was settled out of court on July 15.
Last month, the public prosecutor’s office in Sharjah had issued an arrest warrant against Naqvi and the case was heard by a Sharjah court before it was dismissed following an ‘agreement’ reached by both parties to settle it out of court on mutually agreed terms.
Arif Naqvi, founder of the beleaguered private equity firm Abraaj, is facing a fresh charge of bounced cheque, according to lawyers close to the case.
Sharjah-based Crescent Group founder Hamid Jafar has filed a $217 million (Dh798m) bounced cheque case against Naqvi. The new case comes after a similar case relating to a cheque bounce of $300 million was settled out of court on July 15.
Last month, the public prosecutor’s office in Sharjah had issued an arrest warrant against Naqvi and the case was heard by a Sharjah court before it was dismissed following an ‘agreement’ reached by both parties to settle it out of court on mutually agreed terms.
Tadawul earnings surge in ‘pivotal year’ for Saudi stock market
Tadawul earnings surge in ‘pivotal year’ for Saudi stock market:
The Saudi Stock Exchange, Tadawul, enjoyed a surge in revenue and profit last year, boosted by increased interest by foreign institutIons, greater diversification of the range of services offered to investors and cost controls.
Tadawul yesterday published its annual report for 2017 — under the theme “expansion and diversification” — showing a 543 percent increase in net profits to SR130 million, on consolidated revenues 74 percent ahead at AR545.4 million.
Earnings before interest, tax, depreciation and amortization (ebitda) rose nearly 300 percent to SR72.5 million.
The Saudi Stock Exchange, Tadawul, enjoyed a surge in revenue and profit last year, boosted by increased interest by foreign institutIons, greater diversification of the range of services offered to investors and cost controls.
Tadawul yesterday published its annual report for 2017 — under the theme “expansion and diversification” — showing a 543 percent increase in net profits to SR130 million, on consolidated revenues 74 percent ahead at AR545.4 million.
Earnings before interest, tax, depreciation and amortization (ebitda) rose nearly 300 percent to SR72.5 million.
Iran currency drops 18% in two days - The Peninsula Qatar
Iran currency drops 18% in two days - The Peninsula Qatar:
Iran's currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.
The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.
It hit 100,000 to the dollar for the first time on Sunday and continued its decline, losing 18 percent of its value in less than two days.
Iran's currency traded at a fresh record-low of 119,000 to the dollar on Tuesday, a loss of nearly two-thirds of its value since the start of the year as US sanctions loom.
The Iranian rial has been crashing in recent days as the country anxiously awaits the reimposition of full US sanctions, starting on August 6.
It hit 100,000 to the dollar for the first time on Sunday and continued its decline, losing 18 percent of its value in less than two days.
Qatar leads GCC bonds & sukuk issuance in H1 - The Peninsula Qatar
Qatar leads GCC bonds & sukuk issuance in H1 - The Peninsula Qatar:
The aggregate primary issuance of bonds and sukuk by GCC entities, including central banks local issuances, GCC sovereign and corporate issuances, totaled $95.25bn in H1 2018, a 9.64 percent increase from the total amount raised in H1 2017.
Qatar led the GCC issuances in terms of total value raised, Kuwait Financial Centre (Markaz) noted in its ‘GCC Bonds & Sukuk Market Survey.’
Central Bank local issuances are Fixed Income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity.
The aggregate primary issuance of bonds and sukuk by GCC entities, including central banks local issuances, GCC sovereign and corporate issuances, totaled $95.25bn in H1 2018, a 9.64 percent increase from the total amount raised in H1 2017.
Qatar led the GCC issuances in terms of total value raised, Kuwait Financial Centre (Markaz) noted in its ‘GCC Bonds & Sukuk Market Survey.’
Central Bank local issuances are Fixed Income securities issued by GCC central banks in local currencies and with short maturities for the purpose of regulating levels of domestic liquidity.
QFC witnesses 69% jump in new firms in first half of 2018
QFC witnesses 69% jump in new firms in first half of 2018:
Qatar Financial Centre (QFC), one of the world’s fastest-growing onshore business and financial centres, has witnessed a 69% year-on-year jump in new firms registered under it during the first half (H1) of this year.
The total number of firms on the QFC platform was recorded as 532 at the end of H1 ended June 30, 2018. The majority of the new firms joining the QFC platform have come from Europe, India and Pakistan.
There have also been a number of firms joining from the US and Middle East and North Africa regions, a QFC spokesman said.
Qatar Financial Centre (QFC), one of the world’s fastest-growing onshore business and financial centres, has witnessed a 69% year-on-year jump in new firms registered under it during the first half (H1) of this year.
The total number of firms on the QFC platform was recorded as 532 at the end of H1 ended June 30, 2018. The majority of the new firms joining the QFC platform have come from Europe, India and Pakistan.
There have also been a number of firms joining from the US and Middle East and North Africa regions, a QFC spokesman said.
MIDEAST STOCKS-Banks weigh on Saudi and Dubai, as Qatar rebound continues | Reuters
MIDEAST STOCKS-Banks weigh on Saudi and Dubai, as Qatar rebound continues | Reuters:
Shares of blue chip banks and petrochemical companies weighed on the Saudi stock market on Tuesday, while Qatar’s benchmark index continued to recover.
Saudi Arabia, the region’s biggest stock market, ended down 0.2 percent. The index’s two biggest market movers, Al-Rajhi Bank and petrochemicals giant SABIC , both shed 0.5 percent.
Riyad Bank and Saudi British Bank (SABB) also closed down 1.1 percent and 1.6 percent respectively.
Shares of blue chip banks and petrochemical companies weighed on the Saudi stock market on Tuesday, while Qatar’s benchmark index continued to recover.
Saudi Arabia, the region’s biggest stock market, ended down 0.2 percent. The index’s two biggest market movers, Al-Rajhi Bank and petrochemicals giant SABIC , both shed 0.5 percent.
Riyad Bank and Saudi British Bank (SABB) also closed down 1.1 percent and 1.6 percent respectively.
Dubai Stock Index Posts the Biggest Monthly Increase in a Year - Bloomberg
Dubai Stock Index Posts the Biggest Monthly Increase in a Year - Bloomberg:
Dubai’s main equity gauge posted its biggest monthly gain in a year, powered by a revival in the banking sector as better-than-estimated earnings help U.A.E. stocks escape this year’s doldrums.
The DFM General Index has surged 4.8 percent in July, ending five straight months of losses. In Abu Dhabi, the ADX General Index posted its largest monthly gain in more than two years, advancing 6.6 percent.
The country’s biggest banks led the rally in both markets. Last week, First Abu Dhabi Bank PJSC delivered estimate-beating results for the quarter ended in June and raised its forecasts for the year. Dubai’s two biggest lenders, Emirates NBD PJSC and Dubai Islamic Bank PJSC, also reported higher-than-expected results, as a recovery in construction activity helped boost lending.
Dubai’s main equity gauge posted its biggest monthly gain in a year, powered by a revival in the banking sector as better-than-estimated earnings help U.A.E. stocks escape this year’s doldrums.
The DFM General Index has surged 4.8 percent in July, ending five straight months of losses. In Abu Dhabi, the ADX General Index posted its largest monthly gain in more than two years, advancing 6.6 percent.
The country’s biggest banks led the rally in both markets. Last week, First Abu Dhabi Bank PJSC delivered estimate-beating results for the quarter ended in June and raised its forecasts for the year. Dubai’s two biggest lenders, Emirates NBD PJSC and Dubai Islamic Bank PJSC, also reported higher-than-expected results, as a recovery in construction activity helped boost lending.
Dubai Malls Operator Revenue Climbs as Expansion Offsets VAT - Bloomberg
Dubai Malls Operator Revenue Climbs as Expansion Offsets VAT - Bloomberg:
Majid Al Futtaim Holding LLC, the Dubai-based conglomerate which operates Carrefour SA stores in the Middle East, posted a 13 percent increase in revenue during the first half, as the company’s regional expansion helped weather the impact of value-added taxation at home.
Sales climbed to 17.8 billion dirhams ($4.85 billion) from a year earlier despite “adverse market conditions,” Chief Executive Officer Alain Bejjani told Bloomberg TV on Tuesday in Dubai. Earnings before interest, taxation, depreciation and amortization grew 4 percent to 2.1 billion dirhams.
MAF, as the group is known, has steadily extended its presence beyond Dubai to countries including Egypt, Lebanon and Oman. The group is opening 100 new Carrefour supermarkets in Egypt, 600 cinemas in Saudi Arabia and is expanding in Kenya, Bejjani said.
Majid Al Futtaim Holding LLC, the Dubai-based conglomerate which operates Carrefour SA stores in the Middle East, posted a 13 percent increase in revenue during the first half, as the company’s regional expansion helped weather the impact of value-added taxation at home.
Sales climbed to 17.8 billion dirhams ($4.85 billion) from a year earlier despite “adverse market conditions,” Chief Executive Officer Alain Bejjani told Bloomberg TV on Tuesday in Dubai. Earnings before interest, taxation, depreciation and amortization grew 4 percent to 2.1 billion dirhams.
MAF, as the group is known, has steadily extended its presence beyond Dubai to countries including Egypt, Lebanon and Oman. The group is opening 100 new Carrefour supermarkets in Egypt, 600 cinemas in Saudi Arabia and is expanding in Kenya, Bejjani said.
S&P reaffirms positive outlook credit ratings on Sharjah | ZAWYA MENA Edition
S&P reaffirms positive outlook credit ratings on Sharjah | ZAWYA MENA Edition:
Standard & Poor’s (S&P) has reaffirmed Sharjah’s BBB + sovereign credit ratings with a positive outlook.
In a statement, S&P said that it expected the Emirate's economy to grow two per cent between 2018 and 2021 as well as the acceleration of GDP growth in 2018 based on the growth of business in the real estate and construction sectors.
The credit ratings agency lauded Sharjah’s diverse economic structure, compared to many economies of the region. The industrial sector contributes as much as 17 per cent to the Emirate’s GDP, followed by real estate, retail, wholesale and financial services, each accounting for about 10 per cent of the Emirate's GDP.
Standard & Poor’s (S&P) has reaffirmed Sharjah’s BBB + sovereign credit ratings with a positive outlook.
In a statement, S&P said that it expected the Emirate's economy to grow two per cent between 2018 and 2021 as well as the acceleration of GDP growth in 2018 based on the growth of business in the real estate and construction sectors.
The credit ratings agency lauded Sharjah’s diverse economic structure, compared to many economies of the region. The industrial sector contributes as much as 17 per cent to the Emirate’s GDP, followed by real estate, retail, wholesale and financial services, each accounting for about 10 per cent of the Emirate's GDP.
Saudi's PIF aims to raise between $6-8 bln in first loan -sources | Reuters
Saudi's PIF aims to raise between $6-8 bln in first loan -sources | Reuters:
Saudi Arabia’s top sovereign wealth fund is seeking to raise between $6 and $8 billion from banks as it seeks to boost its firepower to help finance the kingdom’s economic transformation plans, according to sources familiar with the matter.
The Public Investment Fund (PIF) issued a request for proposals to banks several weeks ago about raising money for a syndicated loan, said two of the sources, with a third adding the deal is not expected to close before September.
A spokesman for PIF declined to comment.
Saudi Arabia’s top sovereign wealth fund is seeking to raise between $6 and $8 billion from banks as it seeks to boost its firepower to help finance the kingdom’s economic transformation plans, according to sources familiar with the matter.
The Public Investment Fund (PIF) issued a request for proposals to banks several weeks ago about raising money for a syndicated loan, said two of the sources, with a third adding the deal is not expected to close before September.
A spokesman for PIF declined to comment.
Oil to hold steady into 2019 as OPEC, U.S. compensate for supply hitches: Reuters poll | Reuters
Oil to hold steady into 2019 as OPEC, U.S. compensate for supply hitches: Reuters poll | Reuters:
Oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the U.S. meets growing demand led by Asia and helps to offset supply disruptions from Iran and elsewhere, a Reuters poll showed on Tuesday.
A survey of 44 economists and analysts forecast Brent crude LCOc1 to average $72.87 a barrel in 2018, 29 cents higher than the $72.58 projected in the previous month’s poll and above the $71.68 average so far this year.
U.S. crude futures CLc1 were seen averaging $67.32 a barrel in 2018, compared with $66.79 forecast last month and an average of $66.16 until now.
Oil prices are likely to hold fairly steady this year and next as increased output from OPEC and the U.S. meets growing demand led by Asia and helps to offset supply disruptions from Iran and elsewhere, a Reuters poll showed on Tuesday.
A survey of 44 economists and analysts forecast Brent crude LCOc1 to average $72.87 a barrel in 2018, 29 cents higher than the $72.58 projected in the previous month’s poll and above the $71.68 average so far this year.
U.S. crude futures CLc1 were seen averaging $67.32 a barrel in 2018, compared with $66.79 forecast last month and an average of $66.16 until now.
Iran: Trump needs to rejoin nuclear deal if he wants talks
Iran: Trump needs to rejoin nuclear deal if he wants talks:
Iranian officials reacted skeptically on Tuesday to President Donald Trump’s comments that he’s willing to negotiate with his Iranian counterpart, saying instead that if Trump wants talks, he needs to rejoin the international nuclear deal he unilaterally pulled out of earlier this year.
Trump on Monday said he’d meet with Iranian President Hassan Rouhani “anytime” if the Iranian leader were willing.
In his first public remarks after the comment, Rouhani did not mention Trump at all but instead stressed the need for the other nations involved in the nuclear deal to forge ahead with their pledges of trying to salvage it.
Iranian officials reacted skeptically on Tuesday to President Donald Trump’s comments that he’s willing to negotiate with his Iranian counterpart, saying instead that if Trump wants talks, he needs to rejoin the international nuclear deal he unilaterally pulled out of earlier this year.
Trump on Monday said he’d meet with Iranian President Hassan Rouhani “anytime” if the Iranian leader were willing.
In his first public remarks after the comment, Rouhani did not mention Trump at all but instead stressed the need for the other nations involved in the nuclear deal to forge ahead with their pledges of trying to salvage it.
Nasdaq Dubai to launch futures trading of 12 Saudi firms from Sept | Reuters
Nasdaq Dubai to launch futures trading of 12 Saudi firms from Sept | Reuters:
Nasdaq Dubai will launch equity futures trading of 12 Saudi Arabian companies from September, stimulating investor interest in the kingdom’s capital markets, the exchange said.
Nasdaq Dubai, which launched UAE futures trading in 2016, announced in May this year it would add Saudi single futures.
On Tuesday, it identified the 12 Saudi companies, which have a combined market capitalization of 859 billion Saudi riyals ($229 billion), representing 43 percent of the Saudi stock exchange.
Nasdaq Dubai will launch equity futures trading of 12 Saudi Arabian companies from September, stimulating investor interest in the kingdom’s capital markets, the exchange said.
Nasdaq Dubai, which launched UAE futures trading in 2016, announced in May this year it would add Saudi single futures.
On Tuesday, it identified the 12 Saudi companies, which have a combined market capitalization of 859 billion Saudi riyals ($229 billion), representing 43 percent of the Saudi stock exchange.
CEO confirms Credit Suisse seeking Saudi banking license | Reuters
CEO confirms Credit Suisse seeking Saudi banking license | Reuters:
Credit Suisse (CSGN.S) Chief Executive Tidjane Thiam personally traveled to Saudi Arabia to apply for a banking license, he said on Tuesday, confirming Reuters information the Swiss bank is seeking a full banking license in the Middle East’s biggest economy.
“I have been to Riyadh, I met the head of SAMA (the Saudi Arabian Monetary Authority), I made the application myself,” Thiam said in response to a query during the bank’s second-quarter news conference.
An increasing number of western banks and fund managers are looking to expand in the kingdom since the government unveiled a transformation plan aimed at privatizing vast swathes of the economy.
Credit Suisse (CSGN.S) Chief Executive Tidjane Thiam personally traveled to Saudi Arabia to apply for a banking license, he said on Tuesday, confirming Reuters information the Swiss bank is seeking a full banking license in the Middle East’s biggest economy.
“I have been to Riyadh, I met the head of SAMA (the Saudi Arabian Monetary Authority), I made the application myself,” Thiam said in response to a query during the bank’s second-quarter news conference.
An increasing number of western banks and fund managers are looking to expand in the kingdom since the government unveiled a transformation plan aimed at privatizing vast swathes of the economy.
MIDEAST STOCKS-Saudi bank shares up as most Gulf markets open weak | Reuters
MIDEAST STOCKS-Saudi bank shares up as most Gulf markets open weak | Reuters:
Shares in Saudi blue-chip banks rose in early trade on Tuesday, while materials and real estate companies slipped as most Gulf markets opened lower.
Among the biggest gainers on the Saudi index were financial firms Alinma and Samba, which rose 1.1 and 0.5 percent respectively.
Banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks. But because demand for loans is also low, there is little risk of a funding shortage.
Shares in Saudi blue-chip banks rose in early trade on Tuesday, while materials and real estate companies slipped as most Gulf markets opened lower.
Among the biggest gainers on the Saudi index were financial firms Alinma and Samba, which rose 1.1 and 0.5 percent respectively.
Banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks. But because demand for loans is also low, there is little risk of a funding shortage.
Monday, 30 July 2018
Bank Dhofar and National Bank of Oman in talks for latest GCC banking merger - The National
Bank Dhofar and National Bank of Oman in talks for latest GCC banking merger - The National:
Bank Dhofar and National Bank of Oman will discuss a potential merger that could create a new financial institution in Oman with $20 billion (Dh74bn) in assets.
The board of Bank Dhofar gave the nod in its July 29 meeting and “resolved to commence discussions with National Bank of Oman to explore the possibility of a merger between the two entities”, the lender said in a regulatory filing to Muscat Securities Market, where its shares are traded.
NBO confirmed its intentions on talks for the possible deal, which the two lenders said is subject to obtaining “final approval from respective boards, shareholders, stakeholders and regulators”.
Bank Dhofar and National Bank of Oman will discuss a potential merger that could create a new financial institution in Oman with $20 billion (Dh74bn) in assets.
The board of Bank Dhofar gave the nod in its July 29 meeting and “resolved to commence discussions with National Bank of Oman to explore the possibility of a merger between the two entities”, the lender said in a regulatory filing to Muscat Securities Market, where its shares are traded.
NBO confirmed its intentions on talks for the possible deal, which the two lenders said is subject to obtaining “final approval from respective boards, shareholders, stakeholders and regulators”.
Qatar big banks’ combined net profit grows by 10.6% in H1 - The Peninsula Qatar
Qatar big banks’ combined net profit grows by 10.6% in H1 - The Peninsula Qatar:
Qatar’s top banks delivered a combined net profit of a solid QR12bn for the first half of 2018, up 10.6 percent compared to QR10.85bn reported during the same period a year ago. Among the largest eight banks, QNB led the pack by recording QR6.65bn net profit or 6.67 percent up from H1, 2017, Qatar Stock Exchange (QSE) disclosed.
The Commercial Bank, which delivered QR855m in net profit, recorded an impressive 376.1 percent year-on-year growth. While the Islamic lender QIB posted 13.75 percent growth, the net profits of other two Islamic banks Masraf Al Rayan and QIIB grew by 4.5 percent and 4.02 percent, respectively.
Qatar banks asset quality indicators will stabilise or deteriorate slightly for 2018 barring any significant disruption to the banks; operating conditions that could come from geopolitical risks. Cost of risk will trend toward normalised levels because of IFRS 9 implementation during 2018, though real estate and hospitality sectors are under pressure in Qatar, according to market analysts. The banks’ combined assets (and liabilities) rose by 6.6 percent in June from a year ago. Bank deposit growth, at 3 percent year-on-year in May, is also on the rise, having benefi
Qatar’s top banks delivered a combined net profit of a solid QR12bn for the first half of 2018, up 10.6 percent compared to QR10.85bn reported during the same period a year ago. Among the largest eight banks, QNB led the pack by recording QR6.65bn net profit or 6.67 percent up from H1, 2017, Qatar Stock Exchange (QSE) disclosed.
The Commercial Bank, which delivered QR855m in net profit, recorded an impressive 376.1 percent year-on-year growth. While the Islamic lender QIB posted 13.75 percent growth, the net profits of other two Islamic banks Masraf Al Rayan and QIIB grew by 4.5 percent and 4.02 percent, respectively.
Qatar banks asset quality indicators will stabilise or deteriorate slightly for 2018 barring any significant disruption to the banks; operating conditions that could come from geopolitical risks. Cost of risk will trend toward normalised levels because of IFRS 9 implementation during 2018, though real estate and hospitality sectors are under pressure in Qatar, according to market analysts. The banks’ combined assets (and liabilities) rose by 6.6 percent in June from a year ago. Bank deposit growth, at 3 percent year-on-year in May, is also on the rise, having benefi
QSE continues its bull run on strong buying interests of foreign institutions
QSE continues its bull run on strong buying interests of foreign institutions:
The Qatar Stock Exchange on Monday continued its bullish run for the second day, mainly on the back of strong buying interests of foreign institutions.
Buying interests — especially in transport, industrials, insurance, realty and banking — led the 20-stock Qatar Index gain 0.22% to 9,651.77 points.
Doha Bank and Masraf Al Rayan sponsored exchange traded funds QETF and QATR reported 2.74% and 0.9% declines respectively.
The Qatar Stock Exchange on Monday continued its bullish run for the second day, mainly on the back of strong buying interests of foreign institutions.
Buying interests — especially in transport, industrials, insurance, realty and banking — led the 20-stock Qatar Index gain 0.22% to 9,651.77 points.
Doha Bank and Masraf Al Rayan sponsored exchange traded funds QETF and QATR reported 2.74% and 0.9% declines respectively.
Iran's Rial Tumbles Ahead of U.S. Sanctions, Dozens Arrested - Bloomberg
Iran's Rial Tumbles Ahead of U.S. Sanctions, Dozens Arrested - Bloomberg:
Iran’s rial tumbled to another historic low, resisting government efforts to shore up the economy as the restoration of U.S. sanctions looms.
In an effort to signal they’re taking action to fight profiteering and cushion the blow of the U.S. economic offensive, authorities have rounded up more than two dozen merchants who they say exploited government currency measures for personal gain.
Iran’s national currency, whose yearlong depreciation has gained momentum in recent weeks, set a new low this week against the dollar, trading on average at 112,000 rials on the black market on Monday, the Iranian Labour News Agency reported, from around 90,000 last week. The rial has also weakened against the euro.
Iran’s rial tumbled to another historic low, resisting government efforts to shore up the economy as the restoration of U.S. sanctions looms.
In an effort to signal they’re taking action to fight profiteering and cushion the blow of the U.S. economic offensive, authorities have rounded up more than two dozen merchants who they say exploited government currency measures for personal gain.
Iran’s national currency, whose yearlong depreciation has gained momentum in recent weeks, set a new low this week against the dollar, trading on average at 112,000 rials on the black market on Monday, the Iranian Labour News Agency reported, from around 90,000 last week. The rial has also weakened against the euro.
The Decline and Fall of the American Empire - Bloomberg
The Decline and Fall of the American Empire - Bloomberg:
So what would the decline of America look like? I don’t ask the question because I think it’s happening (yet?), but because even the most inveterate optimist should be interested in the dangers, if only to ward them off.
Here’s the cleanest tale of hypothetical decline I could come up with, keeping away from the more partisan or hysterical scenarios, or those involving a catastrophic deus ex machina.
Imagine that the United States gets through the presidency of Donald Trump without a crippling constitutional crisis. Still, the shrill public debate — which will continue well past Trump’s time in office — will continue to prove unequal to the task of addressing the nation’s most pressing problems.
So what would the decline of America look like? I don’t ask the question because I think it’s happening (yet?), but because even the most inveterate optimist should be interested in the dangers, if only to ward them off.
Here’s the cleanest tale of hypothetical decline I could come up with, keeping away from the more partisan or hysterical scenarios, or those involving a catastrophic deus ex machina.
Imagine that the United States gets through the presidency of Donald Trump without a crippling constitutional crisis. Still, the shrill public debate — which will continue well past Trump’s time in office — will continue to prove unequal to the task of addressing the nation’s most pressing problems.
Saudi’s Aramco plan B is too clever by half | ZAWYA MENA Edition
Saudi’s Aramco plan B is too clever by half | ZAWYA MENA Edition:
Mohammed bin Salman’s financial engineers are earning their fees. Plans for the Saudi crown prince to spearhead a triumphant listing of domestic oil titan Aramco are on ice, but his advisers have a workaround - Aramco may now create the cash itself by borrowing money and buying a stake in chemicals group. It’s a clever idea, but no substitute for plan A.
Looked at as a piece of corporate strategy, splicing together Aramco’s huge oil reserves with SABIC doesn’t automatically create much value. It makes more sense to see the leveraged acquisition as a way to replace the $100 billion that won’t materialize if Riyadh fails to list Aramco. If the similarly state-owned Aramco buys the stake then the Public Investment Fund, earmarked as the engine for the crown prince’s Vision 2030 drive to diversify away from oil, would still have a chunk of cash for pursuits such as investing with Masayoshi Son’s Vision Fund.
Aramco can probably afford the move. It has minimal debt, Bloomberg reported on April 13, and made over $34 billion of net income in the first half of 2017. With a probable value exceeding $1 trillion, bond markets and banks would be happy to provide it with the roughly $70 billi
Mohammed bin Salman’s financial engineers are earning their fees. Plans for the Saudi crown prince to spearhead a triumphant listing of domestic oil titan Aramco are on ice, but his advisers have a workaround - Aramco may now create the cash itself by borrowing money and buying a stake in chemicals group. It’s a clever idea, but no substitute for plan A.
Looked at as a piece of corporate strategy, splicing together Aramco’s huge oil reserves with SABIC doesn’t automatically create much value. It makes more sense to see the leveraged acquisition as a way to replace the $100 billion that won’t materialize if Riyadh fails to list Aramco. If the similarly state-owned Aramco buys the stake then the Public Investment Fund, earmarked as the engine for the crown prince’s Vision 2030 drive to diversify away from oil, would still have a chunk of cash for pursuits such as investing with Masayoshi Son’s Vision Fund.
Aramco can probably afford the move. It has minimal debt, Bloomberg reported on April 13, and made over $34 billion of net income in the first half of 2017. With a probable value exceeding $1 trillion, bond markets and banks would be happy to provide it with the roughly $70 billi
RPT-COLUMN-LNG becomes more volatile on heat wave, Trump's trade war: Russell | Reuters
RPT-COLUMN-LNG becomes more volatile on heat wave, Trump's trade war: Russell | Reuters:
Prices for spot cargoes of liquefied natural gas (LNG) in top-consuming region Asia have become more volatile amid a northern hemisphere heat wave, China’s switch to cleaner fuels and a side-helping of Donald Trump-inspired trade disruptions.
The spot LNG price LNG-AS for September delivery in North Asia rose to $9.75 per million British thermal units (mmBtu) in the week to July 27, the first increase in six weeks.
Soaring temperatures in Japan and South Korea were behind the move higher, as utilities ramped up electricity output to meet demand for air-conditioning. Japan even resorted to restarting old and dirty oil-fired power plants, in addition to boosting natural gas generation.
Prices for spot cargoes of liquefied natural gas (LNG) in top-consuming region Asia have become more volatile amid a northern hemisphere heat wave, China’s switch to cleaner fuels and a side-helping of Donald Trump-inspired trade disruptions.
The spot LNG price LNG-AS for September delivery in North Asia rose to $9.75 per million British thermal units (mmBtu) in the week to July 27, the first increase in six weeks.
Soaring temperatures in Japan and South Korea were behind the move higher, as utilities ramped up electricity output to meet demand for air-conditioning. Japan even resorted to restarting old and dirty oil-fired power plants, in addition to boosting natural gas generation.
In Iran, economic worries grow as new US sanctions loom
In Iran, economic worries grow as new US sanctions loom:
Iran’s currency plummeted to a record low Monday, a week before the United States restores sanctions lifted under the unraveling nuclear deal, giving rise to fears of prolonged economic suffering and further civil unrest.
Already last month, protesters clashed with police outside parliament in Tehran in three days of demonstrations sparked by the Iranian rial plunging to nearly 90,000 to the dollar. That followed country-wide economic protests in December and January, in which 25 protesters were killed and nearly 5,000 people were arrested.
The currency hit a new low on Monday, closing at 122,000 to the dollar on the thriving black market, rapidly dropping from 116,000 on Sunday and 98,000 on Saturday. The official exchange rate, available only to businesses with import and export licenses, was about 44,000 to the dollar on Monday, down from 35,000 on Jan. 1.
Iran’s currency plummeted to a record low Monday, a week before the United States restores sanctions lifted under the unraveling nuclear deal, giving rise to fears of prolonged economic suffering and further civil unrest.
Already last month, protesters clashed with police outside parliament in Tehran in three days of demonstrations sparked by the Iranian rial plunging to nearly 90,000 to the dollar. That followed country-wide economic protests in December and January, in which 25 protesters were killed and nearly 5,000 people were arrested.
The currency hit a new low on Monday, closing at 122,000 to the dollar on the thriving black market, rapidly dropping from 116,000 on Sunday and 98,000 on Saturday. The official exchange rate, available only to businesses with import and export licenses, was about 44,000 to the dollar on Monday, down from 35,000 on Jan. 1.
OPEC July oil output hits 2018 peak, but outages weigh: Reuters survey | Reuters
OPEC July oil output hits 2018 peak, but outages weigh: Reuters survey | Reuters:
OPEC oil output has risen this month to a 2018 high as Gulf members pumped more after a deal to ease supply curbs and Congo Republic joined the group, a Reuters survey found, although losses from Iran and Libya limited the increase.
The Organization of the Petroleum Exporting Countries has pumped 32.64 million barrels per day in July, the survey on Monday found, up 70,000 bpd from June’s revised level and the highest this year with Congo added.
OPEC and allies agreed last month to boost supply as U.S. President Donald Trump urged producers to offset losses caused by new U.S. sanctions on Iran and to dampen prices LCOc1, which this year hit $80 a barrel for the first time since 2014.
OPEC oil output has risen this month to a 2018 high as Gulf members pumped more after a deal to ease supply curbs and Congo Republic joined the group, a Reuters survey found, although losses from Iran and Libya limited the increase.
The Organization of the Petroleum Exporting Countries has pumped 32.64 million barrels per day in July, the survey on Monday found, up 70,000 bpd from June’s revised level and the highest this year with Congo added.
OPEC and allies agreed last month to boost supply as U.S. President Donald Trump urged producers to offset losses caused by new U.S. sanctions on Iran and to dampen prices LCOc1, which this year hit $80 a barrel for the first time since 2014.
Trump says he is willing to talk to Iran's leader without preconditions | Reuters
Trump says he is willing to talk to Iran's leader without preconditions | Reuters:
U.S. President Donald Trump said on Monday he would be willing to meet Iran’s leader without preconditions to discuss how to improve ties after he pulled the United States out of the 2015 Iran nuclear deal, saying, “If they want to meet, we’ll meet.”
“I’d meet with anybody. I believe in meetings,” especially in cases where war is at stake, Trump said at a White House news conference when asked whether he was willing to meet with Iranian President Hassan Rouhani.
No U.S. president has met with an Iranian leader since the United States cut diplomatic relations with Tehran a year after the 1979 revolution that toppled the shah, a U.S. ally. President Barack Obama broke a three-decade freeze with a phone call to Rouhani in 2013.
U.S. President Donald Trump said on Monday he would be willing to meet Iran’s leader without preconditions to discuss how to improve ties after he pulled the United States out of the 2015 Iran nuclear deal, saying, “If they want to meet, we’ll meet.”
“I’d meet with anybody. I believe in meetings,” especially in cases where war is at stake, Trump said at a White House news conference when asked whether he was willing to meet with Iranian President Hassan Rouhani.
No U.S. president has met with an Iranian leader since the United States cut diplomatic relations with Tehran a year after the 1979 revolution that toppled the shah, a U.S. ally. President Barack Obama broke a three-decade freeze with a phone call to Rouhani in 2013.
Oil rises on tight supply outlook | Reuters
Oil rises on tight supply outlook | Reuters:
Oil prices rose on Monday, with U.S. crude futures jumping more than 2 percent, as traders continued to focus on supply disruptions and a possible hit to crude output from U.S. sanctions on Iran.
October Brent crude futures LCOV8, the most actively traded contract, settled at $75.55 a barrel, up 79 cents. The September Brent contract, which expires on Tuesday, settled at $74.97, up 68 cents, or 0.9 percent. Volumes in an expiring contract tend to dwindle in the last few days before it goes off the board.
U.S. West Texas Intermediate crude futures (WTI) CLc1 rose $1.44, or 2.1 percent, to settle at $70.13 a barrel.
Oil prices rose on Monday, with U.S. crude futures jumping more than 2 percent, as traders continued to focus on supply disruptions and a possible hit to crude output from U.S. sanctions on Iran.
October Brent crude futures LCOV8, the most actively traded contract, settled at $75.55 a barrel, up 79 cents. The September Brent contract, which expires on Tuesday, settled at $74.97, up 68 cents, or 0.9 percent. Volumes in an expiring contract tend to dwindle in the last few days before it goes off the board.
U.S. West Texas Intermediate crude futures (WTI) CLc1 rose $1.44, or 2.1 percent, to settle at $70.13 a barrel.
Saudi banks' deposits shrink as government pulls back funds | Reuters
Saudi banks' deposits shrink as government pulls back funds | Reuters:
Deposits at Saudi Arabian banks have shrunk as the government withdraws emergency funds injected when oil prices slumped, although weak loan demand makes a liquidity crunch unlikely.
Eight of the top 12 Saudi banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks.
Deposits at Alawaal Bank tumbled 19 percent from a year ago to 66.2 billion riyals ($18 billion), the bank said on Monday. Deposits at Bank Aljazira fell 3 percent to 47.8 billion riyals.
Deposits at Saudi Arabian banks have shrunk as the government withdraws emergency funds injected when oil prices slumped, although weak loan demand makes a liquidity crunch unlikely.
Eight of the top 12 Saudi banks reported lower deposits in their second-quarter earnings, released over the past couple of weeks.
Deposits at Alawaal Bank tumbled 19 percent from a year ago to 66.2 billion riyals ($18 billion), the bank said on Monday. Deposits at Bank Aljazira fell 3 percent to 47.8 billion riyals.
MIDEAST STOCKS-Property lifts Dubai, Saudi lacklustre on valuation concerns | Reuters
MIDEAST STOCKS-Property lifts Dubai, Saudi lacklustre on valuation concerns | Reuters:
Strong earnings by Emaar Malls lifted Dubai shares and selective buying in top blue-chip companies helped Qatar rebound from early losses, as most Gulf markets ended in positive territory.
The region’s biggest stock market, Saudi Arabia, ended flat as investors tried to digest quarterly earnings and were cautious about valuations for top companies after the index’s nearly 15 percent rise so far this year.
The Dubai index ended 0.8 percent higher, supported by property stocks after Emaar Malls reported a 15 percent rise in second-quarter net profit, broadly in line with market forecasts.
Strong earnings by Emaar Malls lifted Dubai shares and selective buying in top blue-chip companies helped Qatar rebound from early losses, as most Gulf markets ended in positive territory.
The region’s biggest stock market, Saudi Arabia, ended flat as investors tried to digest quarterly earnings and were cautious about valuations for top companies after the index’s nearly 15 percent rise so far this year.
The Dubai index ended 0.8 percent higher, supported by property stocks after Emaar Malls reported a 15 percent rise in second-quarter net profit, broadly in line with market forecasts.
Rising tide of recovery for North Sea oil and gas | Financial Times
Rising tide of recovery for North Sea oil and gas | Financial Times:
In a remote harbour just north of Inverness, contractors are busy working on a giant metal structure whose bright colours stand out against the horizon. The Maersk Innovator offshore oil rig is getting ready to leave Cromarty Firth to drill at least three development wells in the North Sea.
It was a very different scene two years ago when the Cromarty Firth was full of idle rigs. The oil price crash which began in late 2014 and saw Brent crude plummet from $115 a barrel to less than $30 in January 2016, drastically reducing exploration drilling in the North Sea. Oil and gas producers battened down the hatches, cut costs and curtailed operations in what was one of the world’s most expensive places for extracting fossil fuels.
The Maersk rig is one of five that has arrived in Cromarty Firth since the start of the year for maintenance and repair — the highest number to come in for this sort of work since 2010. Three of the rigs have already departed to drill. The numbers may be small but the increased activity is being greeted by industry executives as evidence of the first green shoots of a wider recovery across the North Sea.
In a remote harbour just north of Inverness, contractors are busy working on a giant metal structure whose bright colours stand out against the horizon. The Maersk Innovator offshore oil rig is getting ready to leave Cromarty Firth to drill at least three development wells in the North Sea.
It was a very different scene two years ago when the Cromarty Firth was full of idle rigs. The oil price crash which began in late 2014 and saw Brent crude plummet from $115 a barrel to less than $30 in January 2016, drastically reducing exploration drilling in the North Sea. Oil and gas producers battened down the hatches, cut costs and curtailed operations in what was one of the world’s most expensive places for extracting fossil fuels.
The Maersk rig is one of five that has arrived in Cromarty Firth since the start of the year for maintenance and repair — the highest number to come in for this sort of work since 2010. Three of the rigs have already departed to drill. The numbers may be small but the increased activity is being greeted by industry executives as evidence of the first green shoots of a wider recovery across the North Sea.
Behind the Spectacular Collapse of a Private Equity Titan - Bloomberg
Behind the Spectacular Collapse of a Private Equity Titan - Bloomberg:
Days before rubbing elbows with global business titans in Davos in January, Arif Naqvi set out to charm another circle of friends—Gulf Arab tycoons—in a last-ditch attempt to save his Dubai private equity firm.
But things were already on the cusp of spiraling out of control. Dogged by allegations Abraaj had mismanaged investors’ money, Dubai’s star financier soon couldn’t pay the rent.
After Naqvi, 58, surrendered control of Abraaj in June, it was revealed that for years, its main revenues didn’t cover operating costs. Abraaj borrowed to fill the gaps and now owes creditors over $1 billion. Once lenders turned off the taps, the firm collapsed, leaving losses, lawsuits and shattered reputations in its wake.
Days before rubbing elbows with global business titans in Davos in January, Arif Naqvi set out to charm another circle of friends—Gulf Arab tycoons—in a last-ditch attempt to save his Dubai private equity firm.
But things were already on the cusp of spiraling out of control. Dogged by allegations Abraaj had mismanaged investors’ money, Dubai’s star financier soon couldn’t pay the rent.
After Naqvi, 58, surrendered control of Abraaj in June, it was revealed that for years, its main revenues didn’t cover operating costs. Abraaj borrowed to fill the gaps and now owes creditors over $1 billion. Once lenders turned off the taps, the firm collapsed, leaving losses, lawsuits and shattered reputations in its wake.
What Now for Saudi Arabia's Planned $2 Trillion Fund? - Bloomberg
What Now for Saudi Arabia's Planned $2 Trillion Fund? - Bloomberg:
Saudi Arabia is now looking for Plan B to propel its sovereign wealth fund into the ranks of global giants. The initial plan was to raise at least $100 billion through an initial public offering of a small stake in Saudi Aramco, the state-owned oil company, in the second half of 2018. Though the IPO is not going ahead as originally planned, the nation’s Public Investment Fund still hopes to control more than $2 trillion by 2030.
1. Why is Saudi Arabia trying to grow its fund?
PIF, as it’s known, is central to the government’s effort to diversify the economy away from oil, under a plan known as Vision 2030. The fund was set up in 1971 to support projects of strategic significance to the Saudi economy and for most of its history focused mainly on its home market. It holds about $150 billion of assets in listed Saudi companies, including stakes in Saudi Basic Industries Corp., the world’s second-biggest chemicals manufacturer; Saudi Telecom Co.; and National Commercial Bank, the kingdom’s largest lender by assets. But in recent years, it has made headline-making investments around the globe. It currently has assets of about $230 billion.
Saudi Arabia is now looking for Plan B to propel its sovereign wealth fund into the ranks of global giants. The initial plan was to raise at least $100 billion through an initial public offering of a small stake in Saudi Aramco, the state-owned oil company, in the second half of 2018. Though the IPO is not going ahead as originally planned, the nation’s Public Investment Fund still hopes to control more than $2 trillion by 2030.
1. Why is Saudi Arabia trying to grow its fund?
PIF, as it’s known, is central to the government’s effort to diversify the economy away from oil, under a plan known as Vision 2030. The fund was set up in 1971 to support projects of strategic significance to the Saudi economy and for most of its history focused mainly on its home market. It holds about $150 billion of assets in listed Saudi companies, including stakes in Saudi Basic Industries Corp., the world’s second-biggest chemicals manufacturer; Saudi Telecom Co.; and National Commercial Bank, the kingdom’s largest lender by assets. But in recent years, it has made headline-making investments around the globe. It currently has assets of about $230 billion.
Saudi Leejam Sports IPO successful | ZAWYA MENA Edition
Saudi Leejam Sports IPO successful | ZAWYA MENA Edition:
SAMBA Capital & Investment Management Company, the Financial Advisor, Bookrunner, Lead Manager and Sole Underwriter for Leejam Sports Company’s IPO, announced that the institutional book building process was successfully completed in compliance with the guidelines of the Capital Market Authority, with a price set at SR52 per share.
The book building process generated an order book of around SR6.8 billion and resulted in a subscription of 831% of the total offered shares as per the following breakdown:
SAMBA Capital & Investment Management Company, the Financial Advisor, Bookrunner, Lead Manager and Sole Underwriter for Leejam Sports Company’s IPO, announced that the institutional book building process was successfully completed in compliance with the guidelines of the Capital Market Authority, with a price set at SR52 per share.
The book building process generated an order book of around SR6.8 billion and resulted in a subscription of 831% of the total offered shares as per the following breakdown:
COLUMN-LNG becomes more volatile on heat wave, Trump's trade war: Russell | Reuters
COLUMN-LNG becomes more volatile on heat wave, Trump's trade war: Russell | Reuters:
Prices for spot cargoes of liquefied natural gas (LNG) in top-consuming region Asia have become more volatile amid a northern hemisphere heat wave, China’s switch to cleaner fuels and a side-helping of Donald Trump-inspired trade disruptions.
The spot LNG price LNG-AS for September delivery in North Asia rose to $9.75 per million British thermal units (mmBtu) in the week to July 27, the first increase in six weeks.
Soaring temperatures in Japan and South Korea were behind the move higher, as utilities ramped up electricity output to meet demand for air-conditioning. Japan even resorted to restarting old and dirty oil-fired power plants, in addition to boosting natural gas generation.
Prices for spot cargoes of liquefied natural gas (LNG) in top-consuming region Asia have become more volatile amid a northern hemisphere heat wave, China’s switch to cleaner fuels and a side-helping of Donald Trump-inspired trade disruptions.
The spot LNG price LNG-AS for September delivery in North Asia rose to $9.75 per million British thermal units (mmBtu) in the week to July 27, the first increase in six weeks.
Soaring temperatures in Japan and South Korea were behind the move higher, as utilities ramped up electricity output to meet demand for air-conditioning. Japan even resorted to restarting old and dirty oil-fired power plants, in addition to boosting natural gas generation.
Oil prices edge higher but trade row caps gains | Reuters
Oil prices edge higher but trade row caps gains | Reuters:
Oil prices rose on Monday with U.S. benchmark WTI moving higher after four weeks of declines, but gains were limited as the fallout from trade tensions weighed on markets.
Brent crude futures rose 13 cents, or 0.2 percent, to $74.42 by 0638 GMT, after trading lower most of the Asian session. Brent rose rose 1.7 percent last week, the first gain in four weeks.
U.S. West Texas Intermediate (WTI) crude futures were up 31 cents, or 0.5 percent, at $69 a barrel. WTI fell 1.3 percent on Friday.
Oil prices rose on Monday with U.S. benchmark WTI moving higher after four weeks of declines, but gains were limited as the fallout from trade tensions weighed on markets.
Brent crude futures rose 13 cents, or 0.2 percent, to $74.42 by 0638 GMT, after trading lower most of the Asian session. Brent rose rose 1.7 percent last week, the first gain in four weeks.
U.S. West Texas Intermediate (WTI) crude futures were up 31 cents, or 0.5 percent, at $69 a barrel. WTI fell 1.3 percent on Friday.
MIDEAST STOCKS-Gulf markets start on weak note, Qatar hit by Ooredoo results | Reuters
MIDEAST STOCKS-Gulf markets start on weak note, Qatar hit by Ooredoo results | Reuters:
Qatari stocks were among the major losers in Gulf markets in early Monday trade, hurt by heavy selling in shares of Ooredoo after the telecommunications company posted a 60 percent drop in quarterly earnings.
The Dubai index was little changed, supported by a 1.5 percent gain in Emaar Malls after the property firm reported a 15 percent rise in second-quarter net profit, broadly in line with market forecasts.
Shares in Ooredoo plunged 5.4 percent after reporting a 60 percent decline in second-quarter net profit a day earlier.
Qatari stocks were among the major losers in Gulf markets in early Monday trade, hurt by heavy selling in shares of Ooredoo after the telecommunications company posted a 60 percent drop in quarterly earnings.
The Dubai index was little changed, supported by a 1.5 percent gain in Emaar Malls after the property firm reported a 15 percent rise in second-quarter net profit, broadly in line with market forecasts.
Shares in Ooredoo plunged 5.4 percent after reporting a 60 percent decline in second-quarter net profit a day earlier.
Sunday, 29 July 2018
Deyaar’s first-half net profit at Dh65.2m | GulfNews.com
Deyaar’s first-half net profit at Dh65.2m | GulfNews.com:
Deyaar Development on Sunday posted a net profit of Dh65.2 million for the six months ending June 30, 2018, a 2.6 per cent decrease over Dh67 million profit it made in the first half of last year. In the same period, the property developer reaped Dh314 million in revenues, 0.7 per cent less than Dh316 million revenue in the first half of 2017.
Deyaar said numbers indicate a “solid start” to the year. The company’s shares on Sunday closed down 0.7 per cent at Dh0.427 on the Dubai bourse. Chief executive Saeed Al Qatami said in a statement that the company is “confident about our ability to further expand Deyaar’s portfolio and continue to see positive results”.
Deyaar Development on Sunday posted a net profit of Dh65.2 million for the six months ending June 30, 2018, a 2.6 per cent decrease over Dh67 million profit it made in the first half of last year. In the same period, the property developer reaped Dh314 million in revenues, 0.7 per cent less than Dh316 million revenue in the first half of 2017.
Deyaar said numbers indicate a “solid start” to the year. The company’s shares on Sunday closed down 0.7 per cent at Dh0.427 on the Dubai bourse. Chief executive Saeed Al Qatami said in a statement that the company is “confident about our ability to further expand Deyaar’s portfolio and continue to see positive results”.
Abu Dhabi expands company licence package to boost growth | GulfNews.com
Abu Dhabi expands company licence package to boost growth | GulfNews.com:
The Abu Dhabi Department of Economic Development announced on Sunday that it has expanded Tajer Abu Dhabi licence package scheme by opening it up to all GCC nationals and UAE residents, in addition to increasing the number of commercial activities to more than 1,000.
Tajer Abu Dhabi was originally launched late last year, allowing only Emiratis to establish businesses in 100 different business activities without the need of an office.
The scheme has now been expanded to 1,057 commercial activities, with GCC nationals and UAE residents being allowed to start their business without having an office space or physical presence, according to a statement from the department. Legal formats accepted under Tajer Abu Dhabi licence have also been expanded to include a one-person company for Emiratis, a one-person company for GCC nationals, and limited liability company for residents in partnership with Emiratis.
The Abu Dhabi Department of Economic Development announced on Sunday that it has expanded Tajer Abu Dhabi licence package scheme by opening it up to all GCC nationals and UAE residents, in addition to increasing the number of commercial activities to more than 1,000.
Tajer Abu Dhabi was originally launched late last year, allowing only Emiratis to establish businesses in 100 different business activities without the need of an office.
The scheme has now been expanded to 1,057 commercial activities, with GCC nationals and UAE residents being allowed to start their business without having an office space or physical presence, according to a statement from the department. Legal formats accepted under Tajer Abu Dhabi licence have also been expanded to include a one-person company for Emiratis, a one-person company for GCC nationals, and limited liability company for residents in partnership with Emiratis.
Saudi stock market basking in global investor interest
Saudi stock market basking in global investor interest:
Is the Saudi stock market in the middle of a spectacular bull run? Some leading market experts think so.
Analysts at Jadwa Investments, the Riyadh-based financial group, believe it “totally plausible” that the Tadawul All Share Index (TASI), the main equity performance measure in the Kingdom, could be set for a 20 percent rise between now and early 2019, lifting it above the 10,000 point level for the first time since the heady days of 2014, before the oil price collapsed. It currently stands at around 8,400 points.
That would top an already strong performance in the first half of this year, boosted by inclusion in the top-three emerging market (EM) indices. The TASI is 17 percent ahead already this year, making it one of the best performing markets in the world, and the leading market in the Gulf.
Is the Saudi stock market in the middle of a spectacular bull run? Some leading market experts think so.
Analysts at Jadwa Investments, the Riyadh-based financial group, believe it “totally plausible” that the Tadawul All Share Index (TASI), the main equity performance measure in the Kingdom, could be set for a 20 percent rise between now and early 2019, lifting it above the 10,000 point level for the first time since the heady days of 2014, before the oil price collapsed. It currently stands at around 8,400 points.
That would top an already strong performance in the first half of this year, boosted by inclusion in the top-three emerging market (EM) indices. The TASI is 17 percent ahead already this year, making it one of the best performing markets in the world, and the leading market in the Gulf.
Foreign business leaders in UAE must be careful what they wish for | Arab News
Foreign business leaders in UAE must be careful what they wish for | Arab News:
Something is not quite right in the economy of the UAE, and policymakers in the country are increasingly looking to intervene with stimulus packages to lift it out of the rut it has fallen into over the past couple of years.
In June, the first tranche of stimulus was announced in Dubai and Abu Dhabi, with measures decreed to make the UAE more attractive to foreign investors and the foreign expatriates it depends on.
Now, there is much talk in Dubai financial circles that policymakers in both cities have decided there is a need for further action, and that another package of economic incentives is being prepared for the autumn.
Something is not quite right in the economy of the UAE, and policymakers in the country are increasingly looking to intervene with stimulus packages to lift it out of the rut it has fallen into over the past couple of years.
In June, the first tranche of stimulus was announced in Dubai and Abu Dhabi, with measures decreed to make the UAE more attractive to foreign investors and the foreign expatriates it depends on.
Now, there is much talk in Dubai financial circles that policymakers in both cities have decided there is a need for further action, and that another package of economic incentives is being prepared for the autumn.
Qatar banks’ total assets grow by QR54.3bn in June - The Peninsula Qatar
Qatar banks’ total assets grow by QR54.3bn in June - The Peninsula Qatar:
Qatar banks’ assets (and liabilities) increased by QR54.3bn to QR1.39trillion by the end of June 2018, compared to QR1.34trillion by the end of May, 6.6 percent higher than a year earlier.
Government and public sector deposits have increased by QR25.5bn to QR313.3bn. Government deposits recorded QR79.5bn, and Government Institutions made QR187.4bn, while the deposits of Semi-Government Institutions, in which government share is less than 100 percent and more than 50 percent, stood at QR28.5bn, The Group Securities noted in its reading of Qatar banks’ consolidated balance sheet figures for the month of June 2018.
On the other hand, the total loans of the government and public sector increased by QR27.4bn to reach QR330.8bn.
Qatar banks’ assets (and liabilities) increased by QR54.3bn to QR1.39trillion by the end of June 2018, compared to QR1.34trillion by the end of May, 6.6 percent higher than a year earlier.
Government and public sector deposits have increased by QR25.5bn to QR313.3bn. Government deposits recorded QR79.5bn, and Government Institutions made QR187.4bn, while the deposits of Semi-Government Institutions, in which government share is less than 100 percent and more than 50 percent, stood at QR28.5bn, The Group Securities noted in its reading of Qatar banks’ consolidated balance sheet figures for the month of June 2018.
On the other hand, the total loans of the government and public sector increased by QR27.4bn to reach QR330.8bn.
S&P affirms sovereign ratings on Qatar - The Peninsula Qatar
S&P affirms sovereign ratings on Qatar - The Peninsula Qatar:
S&P Global Ratings has affirmed its ‘AA-/A-1+’ long- and short-term foreign and local currency sovereign ratings on Qatar.
The ratings affirmation reflects the global ratings agency’s expectation that the Qatari authorities will continue to actively manage the boycott while preserving Qatar’s core rating strengths, including its strong public sector balance sheet.
The government has taken measures to ease the immediate economic and financial effects of the blockade. In particular, it has established new trade routes through other countries in the region, resulting in a recovery in imports, S&P said yesterday. The outlook is negative.
S&P Global Ratings has affirmed its ‘AA-/A-1+’ long- and short-term foreign and local currency sovereign ratings on Qatar.
The ratings affirmation reflects the global ratings agency’s expectation that the Qatari authorities will continue to actively manage the boycott while preserving Qatar’s core rating strengths, including its strong public sector balance sheet.
The government has taken measures to ease the immediate economic and financial effects of the blockade. In particular, it has established new trade routes through other countries in the region, resulting in a recovery in imports, S&P said yesterday. The outlook is negative.
Debt Is the Easy Way for Aramco - Bloomberg
Debt Is the Easy Way for Aramco - Bloomberg:
Saudi Arabian Oil Co. is a gigantic company that owns gigantic oil reserves and makes gigantic amounts of money every year by pumping and selling that oil. It is also a state-owned company whose fortunes are intertwined with Saudi Arabia’s ruling dynasty, and that has some history of confusing the desires of that dynasty with the business needs of the company. Also it, or rather they—Saudi Aramco and the Saudi rulers, jointly—want to raise something on the order of $100 billion to diversify the Saudi economy. The rough idea is that investors would give Aramco a lot of money, and Aramco would give it to the Saudi state, and the Saudi state would invest the money in its Public Investment Fund. The outside investors would then have an investment in Aramco, and the state would reduce its investment in Aramco and would diversify itself by using the PIF money to buy, like, stakes in tech startups or whatever.
Given that simplified background, here is a question: Should Aramco raise debt or equity? There are, it seems to me, some really good arguments for debt:
Aramco is a giant company with oceans of oil reserves and tons of cash flow, so it can probably pay back any money it borrows.
Saudi Arabian Oil Co. is a gigantic company that owns gigantic oil reserves and makes gigantic amounts of money every year by pumping and selling that oil. It is also a state-owned company whose fortunes are intertwined with Saudi Arabia’s ruling dynasty, and that has some history of confusing the desires of that dynasty with the business needs of the company. Also it, or rather they—Saudi Aramco and the Saudi rulers, jointly—want to raise something on the order of $100 billion to diversify the Saudi economy. The rough idea is that investors would give Aramco a lot of money, and Aramco would give it to the Saudi state, and the Saudi state would invest the money in its Public Investment Fund. The outside investors would then have an investment in Aramco, and the state would reduce its investment in Aramco and would diversify itself by using the PIF money to buy, like, stakes in tech startups or whatever.
Given that simplified background, here is a question: Should Aramco raise debt or equity? There are, it seems to me, some really good arguments for debt:
Aramco is a giant company with oceans of oil reserves and tons of cash flow, so it can probably pay back any money it borrows.
Dubai's DAFZA reduces free zone business set up fees by up to 65% | ZAWYA MENA Edition
Dubai's DAFZA reduces free zone business set up fees by up to 65% | ZAWYA MENA Edition:
Dubai Airport Freezone Authority (DAFZA) has reduced business setup cost by up to 65 per cent, as part of its aim to increase DAFZA’s regional competitiveness and activate several key sectors by attracting foreign direct investment (FDI).
Supporting Dubai’s efforts to become an ideal destination for investment and prosperity, the decision will help achieve further stability for the operational processes of free zone companies and consequently sustain and drive investment growth.
“These incentives were agreed upon following comprehensive studies and polls evaluating the free zone’s initiatives, services, and business environment. This has allowed us to ensure flexibility at DAFZA in meeting the requirements of new foreign investors and current customers. We are offering unique services that take into account the global economic climate and allow customers to increase earnings and operational profits as well as achieve business growth and prosperity. The ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP,” said HE Dr. Mohammed Al Zarooni, Director General, DAFZA.
Dubai Airport Freezone Authority (DAFZA) has reduced business setup cost by up to 65 per cent, as part of its aim to increase DAFZA’s regional competitiveness and activate several key sectors by attracting foreign direct investment (FDI).
Supporting Dubai’s efforts to become an ideal destination for investment and prosperity, the decision will help achieve further stability for the operational processes of free zone companies and consequently sustain and drive investment growth.
“These incentives were agreed upon following comprehensive studies and polls evaluating the free zone’s initiatives, services, and business environment. This has allowed us to ensure flexibility at DAFZA in meeting the requirements of new foreign investors and current customers. We are offering unique services that take into account the global economic climate and allow customers to increase earnings and operational profits as well as achieve business growth and prosperity. The ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP,” said HE Dr. Mohammed Al Zarooni, Director General, DAFZA.
Iran currency extends record fall as U.S. sanctions loom | Reuters
Iran currency extends record fall as U.S. sanctions loom | Reuters:
Iran’s currency hit a new record low on Sunday, dropping past 100,000 rials to the U.S. dollar as Iranians brace for Aug. 7 when Washington is due to reimpose a first lot of economic sanctions.
In May, the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions were lifted in return for curbs on its nuclear programme.
Washington decided to reimpose sanctions upon its withdrawal, accusing it of posing a security threat. It has told countries they must halt imports of Iranian oil from Nov. 4 or face U.S. financial measures.
Iran’s currency hit a new record low on Sunday, dropping past 100,000 rials to the U.S. dollar as Iranians brace for Aug. 7 when Washington is due to reimpose a first lot of economic sanctions.
In May, the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions were lifted in return for curbs on its nuclear programme.
Washington decided to reimpose sanctions upon its withdrawal, accusing it of posing a security threat. It has told countries they must halt imports of Iranian oil from Nov. 4 or face U.S. financial measures.
Iran's currency in free fall as American sanctions loom
Iran's currency in free fall as American sanctions loom:
Iran’s currency is continuing its downward spiral as increased American sanctions loom, hitting a new low on the thriving black market exchange.
The Iranian rial fell to 112,000 to the dollar on Sunday, from 98,000 to $1 on Saturday. The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on Jan. 1.
The Iranian rial has been declining steadily for years but the drop has accelerated in recent months after the U.S. decision to pull out of the nuclear deal with Iran in May and announcement of increased sanctions beginning next month.
Iran’s currency is continuing its downward spiral as increased American sanctions loom, hitting a new low on the thriving black market exchange.
The Iranian rial fell to 112,000 to the dollar on Sunday, from 98,000 to $1 on Saturday. The government-set exchange rate was 44,070 to the dollar, compared to 35,186 on Jan. 1.
The Iranian rial has been declining steadily for years but the drop has accelerated in recent months after the U.S. decision to pull out of the nuclear deal with Iran in May and announcement of increased sanctions beginning next month.
UPDATE 1-Saudi's SABIC expects H2 positive growth; eyes overseas expansion | Reuters
UPDATE 1-Saudi's SABIC expects H2 positive growth; eyes overseas expansion | Reuters:
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, said on Sunday it expects positive growth in the second half of this year, backed by an increase in production and enhanced global economic outlook.
The comments came after SABIC reported an 81 percent leap in second-quarter net profit, citing higher selling prices and a jump in sales volumes.
The first half of 2018 was “very positive” and SABIC expects the second half of the year to be “equally positive,” CEO Yousef al-Benyan told a news conference.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, said on Sunday it expects positive growth in the second half of this year, backed by an increase in production and enhanced global economic outlook.
The comments came after SABIC reported an 81 percent leap in second-quarter net profit, citing higher selling prices and a jump in sales volumes.
The first half of 2018 was “very positive” and SABIC expects the second half of the year to be “equally positive,” CEO Yousef al-Benyan told a news conference.
MIDEAST STOCKS-SABIC beat fails to lift Saudi; Dubai, Abu Dhabi lower | Reuters
MIDEAST STOCKS-SABIC beat fails to lift Saudi; Dubai, Abu Dhabi lower | Reuters:
Saudi Arabia’s stock market slid on Sunday as better-than-expected earnings from Saudi Basic Industries Corp (SABIC), the largest listed company in the Gulf, failed to lift investor sentiment.
The mood among investors was not helped by a decline in oil prices, weighed down by a fall in the U.S. equities market.
Shares in SABIC were flat after the company reported an 81 percent year-on-year jump in second-quarter net profit to 6.70 billion riyals ($1.79 billion). Analysts had on average expected 5.8 billion riyals.
Saudi Arabia’s stock market slid on Sunday as better-than-expected earnings from Saudi Basic Industries Corp (SABIC), the largest listed company in the Gulf, failed to lift investor sentiment.
The mood among investors was not helped by a decline in oil prices, weighed down by a fall in the U.S. equities market.
Shares in SABIC were flat after the company reported an 81 percent year-on-year jump in second-quarter net profit to 6.70 billion riyals ($1.79 billion). Analysts had on average expected 5.8 billion riyals.
Saudi's SABIC CEO says Aramco acquisition talks are only with PIF | Reuters
Saudi's SABIC CEO says Aramco acquisition talks are only with PIF | Reuters:
Talks on the potential acquisition of a stake in Saudi Basic Industries Corp 2010.SE are taking place solely between national oil firm Saudi Aramco and the kingdom’s top sovereign wealth fund, SABIC’s chief executive said on Sunday.
“Hard to expect anything in this regard — Aramco-PIF talks are between an owner and a future investor,” Yousef al-Benyan told a news conference. “I can assure you we have trust in our regulators.”
This month, Aramco confirmed a Reuters report that it was working on the possible purchase of a “strategic stake” in SABIC from the Public Investment Fund.
Talks on the potential acquisition of a stake in Saudi Basic Industries Corp 2010.SE are taking place solely between national oil firm Saudi Aramco and the kingdom’s top sovereign wealth fund, SABIC’s chief executive said on Sunday.
“Hard to expect anything in this regard — Aramco-PIF talks are between an owner and a future investor,” Yousef al-Benyan told a news conference. “I can assure you we have trust in our regulators.”
This month, Aramco confirmed a Reuters report that it was working on the possible purchase of a “strategic stake” in SABIC from the Public Investment Fund.
Iran woos local investors as U.S. sanctions loom, currency falls | Reuters
Iran woos local investors as U.S. sanctions loom, currency falls | Reuters:
Iran plans to offer price and tax incentives to private investors to take over idle state projects and help boost the economy, state media reported on Saturday, as the country faces likely U.S. sanctions and the exit of many foreign companies.
In May the United States pulled out of a multinational deal to lift sanctions against Iran in return for curbs on its nuclear program, and Washington has told countries they must halt all imports of Iranian oil from Nov. 4 or face U.S. financial measures.
The new Iranian plan, along with action against alleged financial crime, appears to be aimed at easing concern over the U.S. decision.
Iran plans to offer price and tax incentives to private investors to take over idle state projects and help boost the economy, state media reported on Saturday, as the country faces likely U.S. sanctions and the exit of many foreign companies.
In May the United States pulled out of a multinational deal to lift sanctions against Iran in return for curbs on its nuclear program, and Washington has told countries they must halt all imports of Iranian oil from Nov. 4 or face U.S. financial measures.
The new Iranian plan, along with action against alleged financial crime, appears to be aimed at easing concern over the U.S. decision.
Saudi Basic Industries Q2 net profit jumps 81 pct, beats estimates | Reuters
Saudi Basic Industries Q2 net profit jumps 81 pct, beats estimates | Reuters:
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, reported an 81 percent leap in second-quarter net profit on Sunday, citing higher selling prices and a jump in sales volumes.
SABIC made a net profit of 6.70 billion riyals ($1.79 billion) in the three months to June 30, up from 3.71 billion riyals in the year-earlier period, it said in a bourse statement.
Analysts had on average expected SABIC to make a net profit of 5.8 billion riyals.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, reported an 81 percent leap in second-quarter net profit on Sunday, citing higher selling prices and a jump in sales volumes.
SABIC made a net profit of 6.70 billion riyals ($1.79 billion) in the three months to June 30, up from 3.71 billion riyals in the year-earlier period, it said in a bourse statement.
Analysts had on average expected SABIC to make a net profit of 5.8 billion riyals.
MIDEAST STOCKS-Saudi stocks edge down as SABIC shares move sideways | Reuters
MIDEAST STOCKS-Saudi stocks edge down as SABIC shares move sideways | Reuters:
Saudi Arabia’s stock index opened slightly lower on Sunday as Saudi Basic Industries Corp (SABIC) and Saudi Electricity Co (SEC) dragged down the market.
Most other Gulf indexes were also lower after oil prices fell on Friday, weighed down by a drop in the U.S. equities market.
Shares in SABIC edged down 0.3 pct in quiet, early trade after the company reported an 81 pct year-on-year leap in second-quarter net profit to 6.70 billion riyals ($1.79 billion). Analysts had on average expected 5.8 billion riyals, and some believe the stock is over-valued.
Saudi Arabia’s stock index opened slightly lower on Sunday as Saudi Basic Industries Corp (SABIC) and Saudi Electricity Co (SEC) dragged down the market.
Most other Gulf indexes were also lower after oil prices fell on Friday, weighed down by a drop in the U.S. equities market.
Shares in SABIC edged down 0.3 pct in quiet, early trade after the company reported an 81 pct year-on-year leap in second-quarter net profit to 6.70 billion riyals ($1.79 billion). Analysts had on average expected 5.8 billion riyals, and some believe the stock is over-valued.
Saturday, 28 July 2018
Mideast set to emerge as major oil product exporters - The Peninsula Qatar
Mideast set to emerge as major oil product exporters - The Peninsula Qatar:
The Middle East has been actively building refineries, not only to displace product imports, but to become a net refined product exporter.
In the Middle East, the willingness to increase the vertical integration of national oil companies (NOCs) and to diversify oil revenue streams are important factors in the drive to increase refining capacity. Several Middle Eastern NOCs are also involved in overseas projects, predominantly in the growing Asian markets.
International Energy Agency (IEA) noted in its “World Energy Investment 2018” report that global investments in oil refining rebounded by 10 percent in 2017 and are set to rise by another 40 percent in 2018 to about $90bn, driven by rising demand in the emerging economies and improved profitability. The bulk of investments continue to go to construction of new units in these regions either with strong demand growth perspective or oil industry diversification objectives.
The Middle East has been actively building refineries, not only to displace product imports, but to become a net refined product exporter.
In the Middle East, the willingness to increase the vertical integration of national oil companies (NOCs) and to diversify oil revenue streams are important factors in the drive to increase refining capacity. Several Middle Eastern NOCs are also involved in overseas projects, predominantly in the growing Asian markets.
International Energy Agency (IEA) noted in its “World Energy Investment 2018” report that global investments in oil refining rebounded by 10 percent in 2017 and are set to rise by another 40 percent in 2018 to about $90bn, driven by rising demand in the emerging economies and improved profitability. The bulk of investments continue to go to construction of new units in these regions either with strong demand growth perspective or oil industry diversification objectives.
Crude Posts Weekly Drop as Trade Tensions Take Center Stage - Bloomberg
Crude Posts Weekly Drop as Trade Tensions Take Center Stage - Bloomberg:
Crude posted a fourth straight weekly drop amid concerns over how significantly U.S.-China trade tensions will affect demand.
Futures closed 1.3 percent lower Friday amid low-volume trading. Concerns over global trade continue to weigh on investor sentiment, with U.S. Federal Reserve Chairman Jerome Powell saying earlier this month that trade barriers threaten productivity and wages, while BlackRock Inc. boss Larry Fink warned intensifying tensions could spur a broad market downturn.
We’re seeing “an underlying concern especially about demand growth and worries about what could happen on the global trade issue," said Gene McGillian, manager of market research at Tradition Energy. "Now, with the uncertainty coming from our president’s administration and his trade policy, part of the demand growth picture is being brought under the spotlight."
Crude posted a fourth straight weekly drop amid concerns over how significantly U.S.-China trade tensions will affect demand.
Futures closed 1.3 percent lower Friday amid low-volume trading. Concerns over global trade continue to weigh on investor sentiment, with U.S. Federal Reserve Chairman Jerome Powell saying earlier this month that trade barriers threaten productivity and wages, while BlackRock Inc. boss Larry Fink warned intensifying tensions could spur a broad market downturn.
We’re seeing “an underlying concern especially about demand growth and worries about what could happen on the global trade issue," said Gene McGillian, manager of market research at Tradition Energy. "Now, with the uncertainty coming from our president’s administration and his trade policy, part of the demand growth picture is being brought under the spotlight."
GCC Equities Review: Foreign buyers underpin Qatar market's continued growth | ZAWYA MENA Edition
GCC Equities Review: Foreign buyers underpin Qatar market's continued growth | ZAWYA MENA Edition:
Qatar appears to be coping well with the economic fallout from blockade imposed on it just over a year ago by a quartet of neighbouring countries including Bahrain, Egypt, Saudi Arabia and the United Arab Emirates. The quartet began the blockade in June last year accusing Qatar of sponsoring terrorism, a claim the state has denied.
On July 15, ratings agency Moody’s lifted its outlook on Qatar’s sovereign outlook to ‘stable’ from ‘negative’, citing the state’s ability to withstand the impact from the blockade “for an extended period of time without a material deterioration of the sovereign's credit profile”.
The country’s stockmarket has proved equally resilient. The Qatar Exchange All Share Index gained in value by 6.9 percent in the first half of the year, making it the region’s second-best performing market behind Saudi Arabia.
Qatar appears to be coping well with the economic fallout from blockade imposed on it just over a year ago by a quartet of neighbouring countries including Bahrain, Egypt, Saudi Arabia and the United Arab Emirates. The quartet began the blockade in June last year accusing Qatar of sponsoring terrorism, a claim the state has denied.
On July 15, ratings agency Moody’s lifted its outlook on Qatar’s sovereign outlook to ‘stable’ from ‘negative’, citing the state’s ability to withstand the impact from the blockade “for an extended period of time without a material deterioration of the sovereign's credit profile”.
The country’s stockmarket has proved equally resilient. The Qatar Exchange All Share Index gained in value by 6.9 percent in the first half of the year, making it the region’s second-best performing market behind Saudi Arabia.
GCC Equities Review: Investors pile into Saudi stocks after upgrades, but does the market still offer value? | ZAWYA MENA Edition
GCC Equities Review: Investors pile into Saudi stocks after upgrades, but does the market still offer value? | ZAWYA MENA Edition:
The 15.1 percent gain made by the Tadawul All Share Index in the first half of 2018 meant that the market not only outperformed its regional peers, but was one of the top-performers globally.
“It’s one of the three best markets in the world in terms of performance in the first six months,” Mazen Al Sudairi, the head of research at Riyadh-based Al Rajhi Capital, told Zawya in a telephone interview.
Al-Sudairi attributed the gains to two main factors – the 19.3 percent increase in oil prices experienced over the first six months, and the twin boosts that exchange bosses received from index compilers FTSE Russell and MSCI – both of whom have announced that they will upgrade Tadawul to emerging market status next year.
The 15.1 percent gain made by the Tadawul All Share Index in the first half of 2018 meant that the market not only outperformed its regional peers, but was one of the top-performers globally.
“It’s one of the three best markets in the world in terms of performance in the first six months,” Mazen Al Sudairi, the head of research at Riyadh-based Al Rajhi Capital, told Zawya in a telephone interview.
Al-Sudairi attributed the gains to two main factors – the 19.3 percent increase in oil prices experienced over the first six months, and the twin boosts that exchange bosses received from index compilers FTSE Russell and MSCI – both of whom have announced that they will upgrade Tadawul to emerging market status next year.
GCC Equities Review: Dubai the worst performer as property shares slide | ZAWYA MENA Edition
GCC Equities Review: Dubai the worst performer as property shares slide | ZAWYA MENA Edition:
Trading in stocks listed both in Dubai and Abu Dhabi slumped during the first half of the year as investors who would normally be buying its shares opted for potentially more lucrative returns elsewhere. Data from Thomson Reuters Eikon showed that trading volumes in both of the equity markets in the United Arab Emirates remained weak, with the Dubai Financial Market down 55 percent in volume terms in the first half of the year, while volumes of trades on the Abu Dhabi Securities Exchange dropped by 49 percent.
Mohamad Al-Hajj, vice-president and head of MENA strategy at EFG Hermes, said the decline in volumes was mainly a result of “a lack of catalysts” spurring investment.
“If we look at the macroeconomic fundamentals and even the valuation, the UAE is the most attractive from a valuation perspective. Dubai is trading at 7x forward earnings and a 6 percent dividend yield, and that is a valuation it was trading at when oil was around $27 a barrel,” he said in a telephone interview.
Trading in stocks listed both in Dubai and Abu Dhabi slumped during the first half of the year as investors who would normally be buying its shares opted for potentially more lucrative returns elsewhere. Data from Thomson Reuters Eikon showed that trading volumes in both of the equity markets in the United Arab Emirates remained weak, with the Dubai Financial Market down 55 percent in volume terms in the first half of the year, while volumes of trades on the Abu Dhabi Securities Exchange dropped by 49 percent.
Mohamad Al-Hajj, vice-president and head of MENA strategy at EFG Hermes, said the decline in volumes was mainly a result of “a lack of catalysts” spurring investment.
“If we look at the macroeconomic fundamentals and even the valuation, the UAE is the most attractive from a valuation perspective. Dubai is trading at 7x forward earnings and a 6 percent dividend yield, and that is a valuation it was trading at when oil was around $27 a barrel,” he said in a telephone interview.
GCC Equities Review: Bahrain banks feel the pressure as investors focus on sovereign debt | ZAWYA MENA Edition
GCC Equities Review: Bahrain banks feel the pressure as investors focus on sovereign debt | ZAWYA MENA Edition:
The Bahrain All-Share Index declined in value during the first six months of 2018, but the decline – at 1.6 percent – was not particularly dramatic.
A sovereign debt scare in May, when spreads on credit default swaps ballooned due to fears over the scale of the country’s debt, before receding after neighbouring countries, including Saudi Arabia, the United Arab Emirates and Kuwait all pledged financial support to the kingdom, if required, impacted on the performance of many of Bahrain’s financial firms.
Unsurprisingly, given concerns over the government’s ability to repay its debt, a number of the country’s banks found that their shares came under pressure, with Ithmaar Bank and Khaleeji Bank both witnessing a 31 percent decline in their share price.
The Bahrain All-Share Index declined in value during the first six months of 2018, but the decline – at 1.6 percent – was not particularly dramatic.
A sovereign debt scare in May, when spreads on credit default swaps ballooned due to fears over the scale of the country’s debt, before receding after neighbouring countries, including Saudi Arabia, the United Arab Emirates and Kuwait all pledged financial support to the kingdom, if required, impacted on the performance of many of Bahrain’s financial firms.
Unsurprisingly, given concerns over the government’s ability to repay its debt, a number of the country’s banks found that their shares came under pressure, with Ithmaar Bank and Khaleeji Bank both witnessing a 31 percent decline in their share price.
Bankers weigh giant Saudi Aramco-Sabic debt financing | ZAWYA MENA Edition
Bankers weigh giant Saudi Aramco-Sabic debt financing | ZAWYA MENA Edition:
Bankers are discussing a potential jumbo financing of up to US$70bn to back oil giant Saudi Aramco’s acquisition of a majority stake in Saudi Arabia Basic Industries Corp (Sabic).
Aramco is aiming to buy a controlling stake in petrochemical outfit Sabic, and could buy all of the 70% stake owned by the Public Investment Fund, Saudi Arabia's top sovereign wealth fund.
Riyadh-listed Sabic, the world's fourth-biggest petrochemicals company, has a market capitalisation of SR385.2bn (US$103bn) and a 70% stake would cost roughly US$70bn.
Bankers are discussing a potential jumbo financing of up to US$70bn to back oil giant Saudi Aramco’s acquisition of a majority stake in Saudi Arabia Basic Industries Corp (Sabic).
Aramco is aiming to buy a controlling stake in petrochemical outfit Sabic, and could buy all of the 70% stake owned by the Public Investment Fund, Saudi Arabia's top sovereign wealth fund.
Riyadh-listed Sabic, the world's fourth-biggest petrochemicals company, has a market capitalisation of SR385.2bn (US$103bn) and a 70% stake would cost roughly US$70bn.
Saudi Aramco bond makes sense in Kingdom’s changing circumstances
Saudi Aramco bond makes sense in Kingdom’s changing circumstances:
Reports that Saudi Aramco is to tap the international bond markets for the first time were met with the customary official tight lips from the company and its spokespeople, but from the reaction of “people familiar with the situation” it is at least an option being considered by the world’s biggest oil company in a fast-changing global environment for energy and finance.
If the detail of the reports is true, Aramco will this week ask the Saudi Capital Markets Authority for approval for a $2 billion tranche of Islamic debt in the form of sukuk, to be followed soon after by an international bond issue of maybe four times that size.
Aramco has raised debt on local markets before, as have various joint ventures in which it is a partmer, but this would be the first time this debt is traded, showing the increasingly sophistication of the Kingdom’s capital markets.
Reports that Saudi Aramco is to tap the international bond markets for the first time were met with the customary official tight lips from the company and its spokespeople, but from the reaction of “people familiar with the situation” it is at least an option being considered by the world’s biggest oil company in a fast-changing global environment for energy and finance.
If the detail of the reports is true, Aramco will this week ask the Saudi Capital Markets Authority for approval for a $2 billion tranche of Islamic debt in the form of sukuk, to be followed soon after by an international bond issue of maybe four times that size.
Aramco has raised debt on local markets before, as have various joint ventures in which it is a partmer, but this would be the first time this debt is traded, showing the increasingly sophistication of the Kingdom’s capital markets.
U.S. not pursuing regime change, collapse in Iran: Mattis | Reuters
U.S. not pursuing regime change, collapse in Iran: Mattis | Reuters:
The United States has not instituted a policy of regime change or collapse in Iran, U.S. Defense Secretary Jim Mattis said on Friday, saying the goal was still to curb what Washington sees as Iran’s threatening behavior in the Middle East.
Mattis made his comments after days of back-and-forth bellicose rhetoric between Iranian and U.S. officials, with President Donald Trump promising dire consequences for Iran if it continues to make threats toward the United States.
Asked at the Pentagon whether the Trump administration had instituted a policy of regime change or collapse toward Iran, Mattis said, “There’s none that’s been instituted.”
The United States has not instituted a policy of regime change or collapse in Iran, U.S. Defense Secretary Jim Mattis said on Friday, saying the goal was still to curb what Washington sees as Iran’s threatening behavior in the Middle East.
Mattis made his comments after days of back-and-forth bellicose rhetoric between Iranian and U.S. officials, with President Donald Trump promising dire consequences for Iran if it continues to make threats toward the United States.
Asked at the Pentagon whether the Trump administration had instituted a policy of regime change or collapse toward Iran, Mattis said, “There’s none that’s been instituted.”
Exxon Mobil, Chevron earnings miss Wall Street expectations | Reuters
Exxon Mobil, Chevron earnings miss Wall Street expectations | Reuters:
Exxon Mobil Corp and Chevron Corp, two of the world’s largest oil producers, reported quarterly profit on Friday that fell far short of Wall Street’s expectations.
The disappointing results come as much of the U.S. oil industry has been recovering from a three-year downturn in the energy sector, bolstered by higher production and crude prices.
Exxon’s troubles highlight ongoing issues the company has been having to boost operations, whereas Chevron’s miss was fueled by a slight rise in expenses that likely will not be repeated, analysts said.
Exxon Mobil Corp and Chevron Corp, two of the world’s largest oil producers, reported quarterly profit on Friday that fell far short of Wall Street’s expectations.
The disappointing results come as much of the U.S. oil industry has been recovering from a three-year downturn in the energy sector, bolstered by higher production and crude prices.
Exxon’s troubles highlight ongoing issues the company has been having to boost operations, whereas Chevron’s miss was fueled by a slight rise in expenses that likely will not be repeated, analysts said.
Friday, 27 July 2018
The World's Biggest Mining Company Is Selling Out of U.S. Shale - Bloomberg
The World's Biggest Mining Company Is Selling Out of U.S. Shale - Bloomberg:
BP Plc agreed to pay $10.5 billion, its biggest acquisition in almost two decades, for most of BHP Billiton Ltd.’s onshore U.S. oil and natural gas assets, including in the prized Permian Basin.
The deal gives the London-based energy giant a position in the Permian, a swath of west Texas and New Mexico that’s the world’s fastest-growing major oil region. It’s another sign that BP has mostly rebounded from crude’s price crash and the fatal 2010 accident in the Gulf of Mexico that left it with a more than $60 billion bill.
“We’ve just got access to some of the best acreage in some of the best basins in the onshore U.S.,” BP’s Upstream Chief Executive Officer Bernard Looney said in a statement. The Permian produces about 3.4 million barrels a day, which would make it the fourth-largest member of OPEC, behind Saudi Arabia, Iraq and Iran.
BP Plc agreed to pay $10.5 billion, its biggest acquisition in almost two decades, for most of BHP Billiton Ltd.’s onshore U.S. oil and natural gas assets, including in the prized Permian Basin.
The deal gives the London-based energy giant a position in the Permian, a swath of west Texas and New Mexico that’s the world’s fastest-growing major oil region. It’s another sign that BP has mostly rebounded from crude’s price crash and the fatal 2010 accident in the Gulf of Mexico that left it with a more than $60 billion bill.
“We’ve just got access to some of the best acreage in some of the best basins in the onshore U.S.,” BP’s Upstream Chief Executive Officer Bernard Looney said in a statement. The Permian produces about 3.4 million barrels a day, which would make it the fourth-largest member of OPEC, behind Saudi Arabia, Iraq and Iran.
Oil markets slip after 3 days of gains; U.S.-Europe trade tension eases | ZAWYA MENA Edition
Oil markets slip after 3 days of gains; U.S.-Europe trade tension eases | ZAWYA MENA Edition:
Oil prices slipped on Friday in quiet trading after three days of gains, but took support from Saudi Arabia halting crude transport through a key shipping lane, falling U.S. inventories and easing trade tensions between Washington and Europe.
Brent futures were down 22 cents, or 0.3 percent, at $74.32 a barrel by 0236 GMT, after gaining 0.8 percent on Thursday.
U.S. West Texas Intermediate futures were 7 cents lower, at $69.54, after posting a nearly 0.5-percent gain the previous session.
Oil prices slipped on Friday in quiet trading after three days of gains, but took support from Saudi Arabia halting crude transport through a key shipping lane, falling U.S. inventories and easing trade tensions between Washington and Europe.
Brent futures were down 22 cents, or 0.3 percent, at $74.32 a barrel by 0236 GMT, after gaining 0.8 percent on Thursday.
U.S. West Texas Intermediate futures were 7 cents lower, at $69.54, after posting a nearly 0.5-percent gain the previous session.
Saudi stocks could gain 20% in a year says brokerage | ZAWYA MENA Edition
Saudi stocks could gain 20% in a year says brokerage | ZAWYA MENA Edition:
Saudi stocks could gain as much as 20 percent by early 2019, according to a top brokerage.
Jadwa Investment said it was “totally plausible” that the Tadawul All Share Index could breach the 10,000 points barrier by early 2019. It stood at 8,367.70 at Thursday's close.
The Riyadh bourse has gained about 17 percent so far this year, beating other measures including the Nasdaq, S&P 500 and the MSCI World Index.
Saudi stocks could gain as much as 20 percent by early 2019, according to a top brokerage.
Jadwa Investment said it was “totally plausible” that the Tadawul All Share Index could breach the 10,000 points barrier by early 2019. It stood at 8,367.70 at Thursday's close.
The Riyadh bourse has gained about 17 percent so far this year, beating other measures including the Nasdaq, S&P 500 and the MSCI World Index.
Factbox: Risks to Middle East oil and gas shipping routes | Reuters
Factbox: Risks to Middle East oil and gas shipping routes | Reuters:
Saudi Arabia said on Thursday it was suspending oil shipments through the Red Sea after Yemen’s Iran-aligned Houthis attacked two crude tankers, underscoring risks caused by the conflict in the world’s top oil exporting region.
Iran, in its row with the United States over sanctions, has also threatened to block the Strait of Hormuz, the other major strategic shipping route for oil from the region and the main route for Iranian crude exports.
Below are facts about region’s shipping routes:
Saudi Arabia said on Thursday it was suspending oil shipments through the Red Sea after Yemen’s Iran-aligned Houthis attacked two crude tankers, underscoring risks caused by the conflict in the world’s top oil exporting region.
Iran, in its row with the United States over sanctions, has also threatened to block the Strait of Hormuz, the other major strategic shipping route for oil from the region and the main route for Iranian crude exports.
Below are facts about region’s shipping routes:
Thursday, 26 July 2018
Dubai’s ICD says to buy stake in Corporación América Airports subsidiary - The National
Dubai’s ICD says to buy stake in Corporación América Airports subsidiary - The National:
Investment Corporation of Dubai, the emirate’s sovereign wealth fund, has agreed to buy 25 per cent of Corporación America Italia, a unit of New York-listed Corporación América Airports, the world’s largest private airport operator, for an undisclosed sum.
“The purchase of shares in CAI gives ICD access to Toscana Aeroporti, an established, well-performing airport group in a mature economy with development potential,” said ICD chief executive Mohammed Al Shaibani in a statement.
CAI is the controlling entity of Toscana Aeroporti, a publicly-traded Italian company that holds and manages the concessions for Florence and Pisa airports in Italy.
Investment Corporation of Dubai, the emirate’s sovereign wealth fund, has agreed to buy 25 per cent of Corporación America Italia, a unit of New York-listed Corporación América Airports, the world’s largest private airport operator, for an undisclosed sum.
“The purchase of shares in CAI gives ICD access to Toscana Aeroporti, an established, well-performing airport group in a mature economy with development potential,” said ICD chief executive Mohammed Al Shaibani in a statement.
CAI is the controlling entity of Toscana Aeroporti, a publicly-traded Italian company that holds and manages the concessions for Florence and Pisa airports in Italy.
Nakheel to invest Dh5bn in new hotels in five years, chairman says - The National
Nakheel to invest Dh5bn in new hotels in five years, chairman says - The National:
Nakheel, the Dubai-based real estate developer behind the Palm Jumeirah, plans to invest Dh5 billion in new hotel projects over the next five years as part of a Dh27bn retail and hospitality expansion to diversify its offerings, its chairman said.
The private company, which is building the Deira Islands mixed-use scheme, signed a Dh500m deal on Thursday with Thailand-based Centara Hotels & Resorts, to develop a four-star beach hotel in the scheme, with construction starting next week.
“The four-star hotel segment is the fastest-growing hotel segment in Dubai at present, with 10 per cent year-on-year growth in hotel rooms last year,” Nakheel chairman Ali Rashid Lootah told reporters at the company's headquarters.
Nakheel, the Dubai-based real estate developer behind the Palm Jumeirah, plans to invest Dh5 billion in new hotel projects over the next five years as part of a Dh27bn retail and hospitality expansion to diversify its offerings, its chairman said.
The private company, which is building the Deira Islands mixed-use scheme, signed a Dh500m deal on Thursday with Thailand-based Centara Hotels & Resorts, to develop a four-star beach hotel in the scheme, with construction starting next week.
“The four-star hotel segment is the fastest-growing hotel segment in Dubai at present, with 10 per cent year-on-year growth in hotel rooms last year,” Nakheel chairman Ali Rashid Lootah told reporters at the company's headquarters.
The industrial logic behind Saudi Aramco’s ‘chemical attraction’
The industrial logic behind Saudi Aramco’s ‘chemical attraction’:
News that Saudi Aramco, the world’s biggest oil company and the mainstay of the Kingdom’s economy, was in talks to buy a controlling stake in Saudi Basic Industries Corporation (SABIC), the diversified chemicals giant, caused some surprise.
Not only was the move, which could cost Aramco about $70 billion if it acquires the whole stake held by the Public Investment Fund, an apparent step outside the traditional energy business; it looks like a further distraction from the initial public offering (IPO) of shares in Aramco, the flagship project of the economic transformation of the Kingdom set in train by the Vision 2030 strategy.
One prestigious commentator talked of Aramco’s “strange chemical attraction” for a deal some said had been dreamt up by the armies of investment bankers hired by Aramco for the history-setting IPO but now underemployed as the deadline for the flotation has slipped.
News that Saudi Aramco, the world’s biggest oil company and the mainstay of the Kingdom’s economy, was in talks to buy a controlling stake in Saudi Basic Industries Corporation (SABIC), the diversified chemicals giant, caused some surprise.
Not only was the move, which could cost Aramco about $70 billion if it acquires the whole stake held by the Public Investment Fund, an apparent step outside the traditional energy business; it looks like a further distraction from the initial public offering (IPO) of shares in Aramco, the flagship project of the economic transformation of the Kingdom set in train by the Vision 2030 strategy.
One prestigious commentator talked of Aramco’s “strange chemical attraction” for a deal some said had been dreamt up by the armies of investment bankers hired by Aramco for the history-setting IPO but now underemployed as the deadline for the flotation has slipped.
Saudi Aramco Is Weighing a Global Bond Sale for the First Time - Bloomberg
Saudi Aramco Is Weighing a Global Bond Sale for the First Time - Bloomberg:
Saudi Aramco is weighing tapping the international bond market for the first time to finance the acquisition of petrochemical giant Sabic, a move into global capital markets that could offer an alternative to an initial public offering, according to people familiar with the talks.
If Aramco goes ahead with an international bond -- potentially among the biggest ever done by a corporate issuer -- the sale would force the world’s largest oil producer to disclose its accounts to investors for the first time since nationalization four decades ago as well as many other details about oil reserves and operations.
The plans for a bond, likely to be combined with banks loans, are very preliminary but would allow the state-owned company to raise cash to pay the country’s sovereign wealth fund for the 70 percent stake it owns in Sabic, valued at about $70 billion. In turn, the Public Investment Fund would obtain the money it had initially hoped to raise from the Aramco IPO, the same people said, asking not to be named because the talks are private.
Saudi Aramco is weighing tapping the international bond market for the first time to finance the acquisition of petrochemical giant Sabic, a move into global capital markets that could offer an alternative to an initial public offering, according to people familiar with the talks.
If Aramco goes ahead with an international bond -- potentially among the biggest ever done by a corporate issuer -- the sale would force the world’s largest oil producer to disclose its accounts to investors for the first time since nationalization four decades ago as well as many other details about oil reserves and operations.
The plans for a bond, likely to be combined with banks loans, are very preliminary but would allow the state-owned company to raise cash to pay the country’s sovereign wealth fund for the 70 percent stake it owns in Sabic, valued at about $70 billion. In turn, the Public Investment Fund would obtain the money it had initially hoped to raise from the Aramco IPO, the same people said, asking not to be named because the talks are private.
Corp. America Weighs Brazil Airports, Plans Florence Runway - Bloomberg
Corp. America Weighs Brazil Airports, Plans Florence Runway - Bloomberg:
Fresh from selling a 25 percent stake in its Italian operations, Corporacion America Airports SA said it may bid on new airport projects in Brazil and plans to start construction on a new runway in Florence. Shares gained the most in two months.
The expansion at the Florence airport will allow larger planes to land in one of the country’s prime tourist destinations, Chief Executive Officer Martin Eurnekian said in an interview. On Friday, construction will start on an extension of the Pisa airport terminal, he said.
Buenos Aires-based Corp. America sold a quarter of its stake in its Italian company to Investment Corp. of Dubai and formed an alliance to explore additional opportunities with the sovereign wealth fund on Wednesday. ICD paid EUR48.9 million ($56.9) for its stake. Shares in Corp. America rose as much as 10 percent to $11.69 per share on Thursday.
Fresh from selling a 25 percent stake in its Italian operations, Corporacion America Airports SA said it may bid on new airport projects in Brazil and plans to start construction on a new runway in Florence. Shares gained the most in two months.
The expansion at the Florence airport will allow larger planes to land in one of the country’s prime tourist destinations, Chief Executive Officer Martin Eurnekian said in an interview. On Friday, construction will start on an extension of the Pisa airport terminal, he said.
Buenos Aires-based Corp. America sold a quarter of its stake in its Italian company to Investment Corp. of Dubai and formed an alliance to explore additional opportunities with the sovereign wealth fund on Wednesday. ICD paid EUR48.9 million ($56.9) for its stake. Shares in Corp. America rose as much as 10 percent to $11.69 per share on Thursday.
MIDEAST STOCKS-Saudi falls slightly after oil tanker attack, rest of Gulf mixed | ZAWYA MENA Edition
MIDEAST STOCKS-Saudi falls slightly after oil tanker attack, rest of Gulf mixed | ZAWYA MENA Edition:
Saudi Arabia's stock market fell slightly on Thursday after Riyadh reported an attack on two oil tankers by Yemen's Houthi movement, while other Gulf bourses moved little, suggesting investors don't expect the event to have much economic impact.
Riyadh said it would temporarily stop shipping oil through a Red Sea strait following the attack. But oil prices rose only modestly, with Brent crude adding 0.9 percent to $74.59 a barrel after gaining 0.7 percent on Wednesday, when the attack reportedly occurred.
"Saudi's oil shipments that did go via the strait can easily be rerouted via the Cape of Good Hope at little additional cost and minimal delay," London-based Capital Economics said.
Saudi Arabia's stock market fell slightly on Thursday after Riyadh reported an attack on two oil tankers by Yemen's Houthi movement, while other Gulf bourses moved little, suggesting investors don't expect the event to have much economic impact.
Riyadh said it would temporarily stop shipping oil through a Red Sea strait following the attack. But oil prices rose only modestly, with Brent crude adding 0.9 percent to $74.59 a barrel after gaining 0.7 percent on Wednesday, when the attack reportedly occurred.
"Saudi's oil shipments that did go via the strait can easily be rerouted via the Cape of Good Hope at little additional cost and minimal delay," London-based Capital Economics said.
Emirates NBD in talks to roll over $1.7bln loan | ZAWYA MENA Edition
Emirates NBD in talks to roll over $1.7bln loan | ZAWYA MENA Edition:
Emirates NBD (ENBD), Dubai's largest lender, is discussing with several international banks a roll-over of a $1.7 billion syndicated loan it signed in 2016, sources familiar with the matter said.
A spokesman for the bank confirmed the information and said: "this borrowing is from a set of relationship banks and has been rolled over twice before, though the amounts and individual bank participation vary."
The 2016 loan, due in June 2019, saw the participation of 19 banks and offered a margin of 145 basis points over the London interbank offered rate (Libor), Thomson Reuters data show.
Emirates NBD (ENBD), Dubai's largest lender, is discussing with several international banks a roll-over of a $1.7 billion syndicated loan it signed in 2016, sources familiar with the matter said.
A spokesman for the bank confirmed the information and said: "this borrowing is from a set of relationship banks and has been rolled over twice before, though the amounts and individual bank participation vary."
The 2016 loan, due in June 2019, saw the participation of 19 banks and offered a margin of 145 basis points over the London interbank offered rate (Libor), Thomson Reuters data show.
Abu Dhabi Commercial Bank Q2 profit up 12% | ZAWYA MENA Edition
Abu Dhabi Commercial Bank Q2 profit up 12% | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank on Thursday reported a 12 percent rise in second-quarter net profit, due to higher net interest, increased Islamic financing and non-interest income.
ADCB made a net profit of 1.13 billion dirhams ($307.7 million) in the three months ending June 30, up from 1.01 billion dirhams in the same period of last year, it said in a statement. SICO Bahrain had forecast ADCB would make a second quarter profit of 1.12 billion dirhams
It is the second major Abu Dhabi bank to report earnings after First Abu Dhabi Bank, which earlier this week posted a 19 percent rise in second-quarter profit.
Abu Dhabi Commercial Bank on Thursday reported a 12 percent rise in second-quarter net profit, due to higher net interest, increased Islamic financing and non-interest income.
ADCB made a net profit of 1.13 billion dirhams ($307.7 million) in the three months ending June 30, up from 1.01 billion dirhams in the same period of last year, it said in a statement. SICO Bahrain had forecast ADCB would make a second quarter profit of 1.12 billion dirhams
It is the second major Abu Dhabi bank to report earnings after First Abu Dhabi Bank, which earlier this week posted a 19 percent rise in second-quarter profit.
Saudi launches primary dealer scheme with 3.5 bln riyal sukuk issue | Reuters
Saudi launches primary dealer scheme with 3.5 bln riyal sukuk issue | Reuters:
Saudi Arabia has begun selling local currency government bonds through a new “primary dealer” scheme designed to increase demand for the debt and widen the range of investors holding it, the Ministry of Finance said.
The ministry’s Debt Management Office issued 3.5 billion riyals ($925 million) of five-, seven- and 10-year Islamic bonds under the system this week in its monthly auction, the ministry said in a statement late on Wednesday.
Five local banks — Alinma Bank, Bank Aljazira , Samba Financial Group, National Commercial Bank and Saudi British Bank — for the first time acted as primary dealers, buying the sukuk directly from the government and then immediately making a market in them by quoting two-way prices to other investors.
Saudi Arabia has begun selling local currency government bonds through a new “primary dealer” scheme designed to increase demand for the debt and widen the range of investors holding it, the Ministry of Finance said.
The ministry’s Debt Management Office issued 3.5 billion riyals ($925 million) of five-, seven- and 10-year Islamic bonds under the system this week in its monthly auction, the ministry said in a statement late on Wednesday.
Five local banks — Alinma Bank, Bank Aljazira , Samba Financial Group, National Commercial Bank and Saudi British Bank — for the first time acted as primary dealers, buying the sukuk directly from the government and then immediately making a market in them by quoting two-way prices to other investors.
Qatar First Bank sells 20 pct stake in Memorial Health Group -statement | Reuters
Qatar First Bank sells 20 pct stake in Memorial Health Group -statement | Reuters:
Qatar First Bank sold its 20 percent stake in Turkey’s Memorial Health Group to majority shareholder Turgut Aydin and his family, Memorial said in a statement on Thursday.
Aydin and his family now own 80 percent of the shares in the group, it said, adding that the other 20 percent share belongs to U.K.-based Argus Capital.
The shares will be transferred after the deal is approved by Turkey’s competition authority, it said.
Qatar First Bank sold its 20 percent stake in Turkey’s Memorial Health Group to majority shareholder Turgut Aydin and his family, Memorial said in a statement on Thursday.
Aydin and his family now own 80 percent of the shares in the group, it said, adding that the other 20 percent share belongs to U.K.-based Argus Capital.
The shares will be transferred after the deal is approved by Turkey’s competition authority, it said.
Oil prices rise as Saudi Arabia suspends shipments through Red Sea lane | Reuters
Oil prices rise as Saudi Arabia suspends shipments through Red Sea lane | Reuters:
Brent crude led oil prices higher on Thursday, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed U.S. inventories fell to a 3-1/2 year low.
Brent crude futures had risen 42 cents, or 0.6 percent, to $74.35 a barrel by 0648 GMT, after gaining 0.7 percent on Wednesday.
U.S. West Texas Intermediate crude futures were up 5 cents at $69.35 a barrel, after climbing more than 1 percent in the previous session.
Brent crude led oil prices higher on Thursday, extending gains into a third day after Saudi Arabia suspended crude shipments through a strategic Red Sea shipping lane and as data showed U.S. inventories fell to a 3-1/2 year low.
Brent crude futures had risen 42 cents, or 0.6 percent, to $74.35 a barrel by 0648 GMT, after gaining 0.7 percent on Wednesday.
U.S. West Texas Intermediate crude futures were up 5 cents at $69.35 a barrel, after climbing more than 1 percent in the previous session.
MIDEAST STOCKS-Saudi stocks barely move after oil shipping lane closed by attack | Reuters
MIDEAST STOCKS-Saudi stocks barely move after oil shipping lane closed by attack | Reuters:
Saudi Arabia’s stock market barely moved early on Thursday after Riyadh reported an attack on two oil tankers by Yemen’s Iran-aligned Houthi movement, suggesting investors do not expect the incident to have much of an economic impact.
The main stock index fell 0.3 percent in the first hour of trade and shares in National Shipping Co of Saudi Arabia (Bahri) was 0.2 percent lower after it said one of its vessels suffered minor damage in the attack.
Oil prices rose only modestly after Saudi Arabia said it was suspending crude shipments through one Red Sea shipping lane because of the attack. Brent crude futures added 0.9 percent to $74.59 a barrel on Thursday morning after gaining 0.7 percent on Wednesday, when the attack reportedly occurred.
Saudi Arabia’s stock market barely moved early on Thursday after Riyadh reported an attack on two oil tankers by Yemen’s Iran-aligned Houthi movement, suggesting investors do not expect the incident to have much of an economic impact.
The main stock index fell 0.3 percent in the first hour of trade and shares in National Shipping Co of Saudi Arabia (Bahri) was 0.2 percent lower after it said one of its vessels suffered minor damage in the attack.
Oil prices rose only modestly after Saudi Arabia said it was suspending crude shipments through one Red Sea shipping lane because of the attack. Brent crude futures added 0.9 percent to $74.59 a barrel on Thursday morning after gaining 0.7 percent on Wednesday, when the attack reportedly occurred.
Wednesday, 25 July 2018
Iran replaces central bank chief as economy faces crisis | GulfNews.com
Iran replaces central bank chief as economy faces crisis | GulfNews.com:
Iran replaced its central bank chief on Wednesday, local media reported, amid fallout over banking scandals and the crisis facing the country’s economy.
Valiollah Seif, who had served as the bank’s governor since President Hassan Rouhani took power in August 2013, was replaced by Abdolnasser Hemati following a cabinet meeting, according to the official IRNA news agency.
Hemati, 61, previously served as head of Central Insurance of Iran, as well as both Sina Bank and Bank Melli. He had been slated to become ambassador to China until he was recalled at the last minute.
Iran replaced its central bank chief on Wednesday, local media reported, amid fallout over banking scandals and the crisis facing the country’s economy.
Valiollah Seif, who had served as the bank’s governor since President Hassan Rouhani took power in August 2013, was replaced by Abdolnasser Hemati following a cabinet meeting, according to the official IRNA news agency.
Hemati, 61, previously served as head of Central Insurance of Iran, as well as both Sina Bank and Bank Melli. He had been slated to become ambassador to China until he was recalled at the last minute.
Dubai Shariah court to decide fate of $460m super-yacht Luna
Dubai Shariah court to decide fate of $460m super-yacht Luna:
Dubai’s judicial authorities have ruled that a controversial case involving the $460 million super-yacht Luna must be decided in a UAE Shariah court and not in the Dubai International Financial Center’s common-law courts system.
Ownership of the yacht — once the property of billionaire Russian oligarch Roman Abramovich — is a key part in bitter divorce proceedings between wealthy Azerbaijan-born businessman Farkhad Akhmedov and his former wife Tatiana Akhmedova.
The super-yacht was impounded by DIFC courts while docked in the UAE for maintenance after a London court handed it to Akhmedova as part of a £453 million ($600 million) divorce settlement in 2016.
Dubai’s judicial authorities have ruled that a controversial case involving the $460 million super-yacht Luna must be decided in a UAE Shariah court and not in the Dubai International Financial Center’s common-law courts system.
Ownership of the yacht — once the property of billionaire Russian oligarch Roman Abramovich — is a key part in bitter divorce proceedings between wealthy Azerbaijan-born businessman Farkhad Akhmedov and his former wife Tatiana Akhmedova.
The super-yacht was impounded by DIFC courts while docked in the UAE for maintenance after a London court handed it to Akhmedova as part of a £453 million ($600 million) divorce settlement in 2016.
Qatari Diar to build legacy hotel at former site of US Embassy in London’s Mayfair neighbourhood - The Peninsula Qatar
Qatari Diar to build legacy hotel at former site of US Embassy in London’s Mayfair neighbourhood - The Peninsula Qatar:
Globally renowned developer, Qatari Diar Europe LLP has broken ground at 30 Grosvenor Square – the former site of the historic US Embassy - as it commences construction on London’s second Rosewood hotel in the heart of Mayfair.
The world-class hotel will comprise 137 guest rooms, five restaurants, six flagship retail units, a spa and a ballroom with space for 1,000 guests, at the prestigious and historic location. Prominent British architect, Sir David Chipperfield, will breathe new life into the Grade II listed building whilst retaining the unique external façade to reimagine the spirit of its original pioneering architect Eero Saarinen.
The new design will delicately showcase the mid-20th century heritage of the building, combining traditional and contemporary craftsmanship through exquisite and refined interiors.
Globally renowned developer, Qatari Diar Europe LLP has broken ground at 30 Grosvenor Square – the former site of the historic US Embassy - as it commences construction on London’s second Rosewood hotel in the heart of Mayfair.
The world-class hotel will comprise 137 guest rooms, five restaurants, six flagship retail units, a spa and a ballroom with space for 1,000 guests, at the prestigious and historic location. Prominent British architect, Sir David Chipperfield, will breathe new life into the Grade II listed building whilst retaining the unique external façade to reimagine the spirit of its original pioneering architect Eero Saarinen.
The new design will delicately showcase the mid-20th century heritage of the building, combining traditional and contemporary craftsmanship through exquisite and refined interiors.
Qatar signs over 50 bilateral agreements to protect overseas investments
Qatar signs over 50 bilateral agreements to protect overseas investments:
Qatar has signed more than 50 bilateral agreements aimed at safeguarding and protecting investments abroad, according to a member of the International Court of Arbitration of the International Chamber of Commerce (ICC).
Sheikh Dr Thani bin Ali al-Thani said the agreements represent a basic guarantee for all Qatari investors, including the Qatar investment Authority, economic entities, government-owned corporations, and private companies on establishing investments in projects being implemented in other countries.
Sheikh Thani stressed on the key role played by international policies in safeguarding foreign investments worldwide, noting that all international organisations and agreements are keen on setting up unified rules to provide equal treatment for all investments without discrimination between local and foreign investors.
Qatar has signed more than 50 bilateral agreements aimed at safeguarding and protecting investments abroad, according to a member of the International Court of Arbitration of the International Chamber of Commerce (ICC).
Sheikh Dr Thani bin Ali al-Thani said the agreements represent a basic guarantee for all Qatari investors, including the Qatar investment Authority, economic entities, government-owned corporations, and private companies on establishing investments in projects being implemented in other countries.
Sheikh Thani stressed on the key role played by international policies in safeguarding foreign investments worldwide, noting that all international organisations and agreements are keen on setting up unified rules to provide equal treatment for all investments without discrimination between local and foreign investors.
Oil Rises as Shrinking U.S. Crude Stockpiles Signal Tightness - Bloomberg
Oil Rises as Shrinking U.S. Crude Stockpiles Signal Tightness - Bloomberg:
Oil climbed as plunging crude and gasoline inventories in the world’s biggest economy heightened supply concerns.
Futures advanced 1.1 percent in New York on Wednesday. Nationwide crude stockpiles dropped to the lowest since 2015 last week and gasoline supplies fell for a fourth week, according to the Energy Information Administration. The bullish nature of the data was tempered by the fact that more than 70 percent of the inventory decline occurred in U.S. western markets that are too isolated to have much impact on the rest of the nation.
“They tend to put a little less weight on that type of inventory draw,” said Craig Bethune, a senior portfolio manager at Manulife Asset Management. But still, the report “is still a net positive relative to the past few.”
Oil climbed as plunging crude and gasoline inventories in the world’s biggest economy heightened supply concerns.
Futures advanced 1.1 percent in New York on Wednesday. Nationwide crude stockpiles dropped to the lowest since 2015 last week and gasoline supplies fell for a fourth week, according to the Energy Information Administration. The bullish nature of the data was tempered by the fact that more than 70 percent of the inventory decline occurred in U.S. western markets that are too isolated to have much impact on the rest of the nation.
“They tend to put a little less weight on that type of inventory draw,” said Craig Bethune, a senior portfolio manager at Manulife Asset Management. But still, the report “is still a net positive relative to the past few.”
UAE’s Etihad confirms 5-aircraft sale; buyer not revealed | ZAWYA MENA Edition
UAE’s Etihad confirms 5-aircraft sale; buyer not revealed | ZAWYA MENA Edition:
Etihad Airways said it was in the process of selling a fleet of five A330-200(F) jets.
“The widebody freighters were withdrawn from service effective 1 January and have been placed into storage in Abu Dhabi Int'l and Teruel ever since,” Ch-Aviation.com reported.
An Etihad spokesperson told Ch-Aviation.com that the five aircraft were “in advanced stages of being sold to a new owner” but did not give further details about the buyers or the cost of the transaction.
Etihad Airways said it was in the process of selling a fleet of five A330-200(F) jets.
“The widebody freighters were withdrawn from service effective 1 January and have been placed into storage in Abu Dhabi Int'l and Teruel ever since,” Ch-Aviation.com reported.
An Etihad spokesperson told Ch-Aviation.com that the five aircraft were “in advanced stages of being sold to a new owner” but did not give further details about the buyers or the cost of the transaction.
Oil prices rise after U.S. crude inventories fall | ZAWYA MENA Edition
Oil prices rise after U.S. crude inventories fall | ZAWYA MENA Edition:
Oil prices rose for a second day on Wednesday after data showed U.S. crude inventories fell more than expected, easing worries about oversupply that have dragged on markets in recent weeks.
Brent crude was up 40 cents, or 0.55 percent, at $73.84 a barrel by 1310 GMT, after gaining 0.5 percent on Tuesday. U.S. light crude was 20 cents higher at $68.72, having risen nearly 1 percent in the previous session.
U.S. crude and fuel stockpiles fell more than expected last week, industry group the American Petroleum Institute (API) reported late on Tuesday.
Oil prices rose for a second day on Wednesday after data showed U.S. crude inventories fell more than expected, easing worries about oversupply that have dragged on markets in recent weeks.
Brent crude was up 40 cents, or 0.55 percent, at $73.84 a barrel by 1310 GMT, after gaining 0.5 percent on Tuesday. U.S. light crude was 20 cents higher at $68.72, having risen nearly 1 percent in the previous session.
U.S. crude and fuel stockpiles fell more than expected last week, industry group the American Petroleum Institute (API) reported late on Tuesday.
Kuwait's Agility bid for part of Abraaj's investment business - document | Reuters
Kuwait's Agility bid for part of Abraaj's investment business - document | Reuters:
Kuwait’s Agility, one of the largest Gulf logistics companies, submitted a bid to acquire part of the investment management business of troubled Middle East private equity firm Abraaj, a document seen by Reuters on Wednesday showed.
Agility is one of several potential buyers of the investment management unit of Dubai-based Abraaj, which filed for provisional liquidation in the Cayman Islands in June after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund.
Abraaj denies any wrongdoing.
Kuwait’s Agility, one of the largest Gulf logistics companies, submitted a bid to acquire part of the investment management business of troubled Middle East private equity firm Abraaj, a document seen by Reuters on Wednesday showed.
Agility is one of several potential buyers of the investment management unit of Dubai-based Abraaj, which filed for provisional liquidation in the Cayman Islands in June after months of turmoil related to a row with investors over the use of their money in a $1 billion healthcare fund.
Abraaj denies any wrongdoing.
Qatar to build sugar refinery to avoid boycott disruptions: sources | Reuters
Qatar to build sugar refinery to avoid boycott disruptions: sources | Reuters:
Qatar is building a sugar refinery in a bid to avoid supply disruptions after neighboring Gulf Arab states severed economic and political ties with Doha more than a year ago, sources say.
In normal trading conditions, building a refinery in Qatar would make little commercial sense because of depressed sugar prices, surplus world stocks and the presence of regional refineries that could provide supplies, the sources said.
But they said Qatar, with its huge financial resources generated from gas exports and as host of the 2022 World Cup, wanted to avoid any shortfall for the desert nation that depends heavily on imports to feed its 2.7 million population.
Qatar is building a sugar refinery in a bid to avoid supply disruptions after neighboring Gulf Arab states severed economic and political ties with Doha more than a year ago, sources say.
In normal trading conditions, building a refinery in Qatar would make little commercial sense because of depressed sugar prices, surplus world stocks and the presence of regional refineries that could provide supplies, the sources said.
But they said Qatar, with its huge financial resources generated from gas exports and as host of the 2022 World Cup, wanted to avoid any shortfall for the desert nation that depends heavily on imports to feed its 2.7 million population.
Saudi Arabia suspends oil exports through Bab El-Mandeb after Houthi attack | Reuters
Saudi Arabia suspends oil exports through Bab El-Mandeb after Houthi attack | Reuters:
Saudi Arabia’s Energy Minister Khalid al-Falih said on Thursday that the world’s top exporter was “temporarily halting” all oil shipments through Bab El-Mandeb strait immediately, after an earlier attack on two crude vessels by the Iran-aligned Houthi movement.
“Saudi Arabia is temporarily halting all oil shipments through Bab El-Mandeb Strait immediately until the situation becomes clearer and the maritime transit through Bab El-Mandeb is safe,” Falih said in a statement sent by his ministry.
Saudi Arabia’s Energy Minister Khalid al-Falih said on Thursday that the world’s top exporter was “temporarily halting” all oil shipments through Bab El-Mandeb strait immediately, after an earlier attack on two crude vessels by the Iran-aligned Houthi movement.
“Saudi Arabia is temporarily halting all oil shipments through Bab El-Mandeb Strait immediately until the situation becomes clearer and the maritime transit through Bab El-Mandeb is safe,” Falih said in a statement sent by his ministry.
MIDEAST STOCKS-Banks drag down Saudi, Qatar stock markets | Reuters
MIDEAST STOCKS-Banks drag down Saudi, Qatar stock markets | Reuters:
Banking shares slipped in Saudi Arabia and Qatar on Wednesday as investors digested a mixed bag of results.
Banque Saudi Fransi, which reported lower second quarter earnings on Tuesday, was down 4.1 percent. The lender disclosed a profit of 921 million riyals ($246 million) in the three months to June 30, down from 1.01 billion riyals in the same period of 2017.
National Commercial Bank lost 0.6 percent, even after the kingdom’s largest lender on Tuesday reported a 6.7 percent rise in second-quarter profit to 2.58 billion riyals.
Banking shares slipped in Saudi Arabia and Qatar on Wednesday as investors digested a mixed bag of results.
Banque Saudi Fransi, which reported lower second quarter earnings on Tuesday, was down 4.1 percent. The lender disclosed a profit of 921 million riyals ($246 million) in the three months to June 30, down from 1.01 billion riyals in the same period of 2017.
National Commercial Bank lost 0.6 percent, even after the kingdom’s largest lender on Tuesday reported a 6.7 percent rise in second-quarter profit to 2.58 billion riyals.
Bigger than Dubai Mall: Emaar and Dubai Holding announce Dh10b mega mall | GulfNews.com
Bigger than Dubai Mall: Emaar and Dubai Holding announce Dh10b mega mall | GulfNews.com:
State-linked developer Emaar Properties and Dubai Holding will build a new mall, said to be larger than Dubai Mall, at their flagship project Dubai Creek Harbour.
Dubai Square, as the developer has named the project, will also have around 1,500 hotel rooms and thousands more apartment units.
The project is expected to cost Dh10 billion, according to Mohammad Alabbar, chairman and CEO of Emaar Properties, speaking to members of the press. Half of this will be funded by debt, while the other half will be funded by Emaar capital, he added.
State-linked developer Emaar Properties and Dubai Holding will build a new mall, said to be larger than Dubai Mall, at their flagship project Dubai Creek Harbour.
Dubai Square, as the developer has named the project, will also have around 1,500 hotel rooms and thousands more apartment units.
The project is expected to cost Dh10 billion, according to Mohammad Alabbar, chairman and CEO of Emaar Properties, speaking to members of the press. Half of this will be funded by debt, while the other half will be funded by Emaar capital, he added.
Saudis Load Up on Debt as Government's Austerity Program Bites - Bloomberg
Saudis Load Up on Debt as Government's Austerity Program Bites - Bloomberg:
Saudi nationals are borrowing two to three times more money than last year as government moves to shore up public finances push living costs through the roof.
Since the beginning of 2018, the government has raised fuel and utility prices, introduced value added tax and imposed a levy on some temporary foreign workers not under an employer’s sponsorship. But while the authorities’ aim is to boost revenue without snuffing out economic growth, the latest official loan data suggest the policy is hitting ordinary citizens in their wallets.
Saudi nationals are borrowing two to three times more money than last year as government moves to shore up public finances push living costs through the roof.
Since the beginning of 2018, the government has raised fuel and utility prices, introduced value added tax and imposed a levy on some temporary foreign workers not under an employer’s sponsorship. But while the authorities’ aim is to boost revenue without snuffing out economic growth, the latest official loan data suggest the policy is hitting ordinary citizens in their wallets.
Clariant's update on SABIC tie-up faces delay, CEO says | ZAWYA MENA Edition
Clariant's update on SABIC tie-up faces delay, CEO says | ZAWYA MENA Edition:
Clariant's update on its ties with Saudi Basic Industries (SABIC) may be delayed, as antitrust approvals for the Saudi company's 25 percent stake in the Swiss speciality chemical maker take longer than expected.
The timing of the long-awaited strategy update, planned for early September, is now uncertain, Clariant Chief Executive Hariolf Kottmann told Reuters on Wednesday after the company released first-half 2018 results.
The Saudi chemicals company bought a quarter of Clariant in January, ending the Swiss company's fight with activist investors who had blocked its planned merger with Huntsman.
Clariant's update on its ties with Saudi Basic Industries (SABIC) may be delayed, as antitrust approvals for the Saudi company's 25 percent stake in the Swiss speciality chemical maker take longer than expected.
The timing of the long-awaited strategy update, planned for early September, is now uncertain, Clariant Chief Executive Hariolf Kottmann told Reuters on Wednesday after the company released first-half 2018 results.
The Saudi chemicals company bought a quarter of Clariant in January, ending the Swiss company's fight with activist investors who had blocked its planned merger with Huntsman.
Analysts express mixed opinions over UAE bourses on Trump’s comments | ZAWYA MENA Edition
Analysts express mixed opinions over UAE bourses on Trump’s comments | ZAWYA MENA Edition:
Analysts expressed different opinions on the performance of the UAE stock markets on Wednesday following the US president Donald Trump’s recent comments on diplomatic relations with Iran.
On Tuesday, Trump said the US is ready to make a "real deal" with Iran two days after he threatened the country.
In May, Trump decided to walk away from the Iran nuclear deal, stressing he would reinstate the US economic sanctions imposed on Iran before the deal was signed in 2015.
Analysts expressed different opinions on the performance of the UAE stock markets on Wednesday following the US president Donald Trump’s recent comments on diplomatic relations with Iran.
On Tuesday, Trump said the US is ready to make a "real deal" with Iran two days after he threatened the country.
In May, Trump decided to walk away from the Iran nuclear deal, stressing he would reinstate the US economic sanctions imposed on Iran before the deal was signed in 2015.
Dubai airport passenger traffic climbs in June on Ramadan effect | Reuters
Dubai airport passenger traffic climbs in June on Ramadan effect | Reuters:
The number of passengers travelling through Dubai International Airport rose 11.7 percent in June, rebounding from declines in April and May, largely because of the impact of the holy month of Ramadan on traffic.
The world’s busiest airport for international travellers handled 6.80 million passengers last month compared with 6.08 million a year earlier, its operator said on Wednesday.
The sharp increase was largely due to the timing of Ramadan, when passenger traffic typically slows, Dubai Airports said in a statement. Ramadan fell mostly in June 2017 but was more evenly split between May and June this year.
The number of passengers travelling through Dubai International Airport rose 11.7 percent in June, rebounding from declines in April and May, largely because of the impact of the holy month of Ramadan on traffic.
The world’s busiest airport for international travellers handled 6.80 million passengers last month compared with 6.08 million a year earlier, its operator said on Wednesday.
The sharp increase was largely due to the timing of Ramadan, when passenger traffic typically slows, Dubai Airports said in a statement. Ramadan fell mostly in June 2017 but was more evenly split between May and June this year.
With economy faltering, Iran appoints two new heads of key agencies | Reuters
With economy faltering, Iran appoints two new heads of key agencies | Reuters:
Iran’s cabinet appointed new heads at two of the government’s top economic institutions, as the country grapples with a faltering economy and a sliding currency that have provoked public protests.
President Hassan Rouhani has come under increasing pressure from hardliners to reshuffle his economic team, and senior government officials had suggested a shakeup was imminent.
The new appointments suggest Rouhani, who has mostly touted the economic successes of his administration, is acknowledging a need for change to stifle criticism and tamp down ongoing protests.
Iran’s cabinet appointed new heads at two of the government’s top economic institutions, as the country grapples with a faltering economy and a sliding currency that have provoked public protests.
President Hassan Rouhani has come under increasing pressure from hardliners to reshuffle his economic team, and senior government officials had suggested a shakeup was imminent.
The new appointments suggest Rouhani, who has mostly touted the economic successes of his administration, is acknowledging a need for change to stifle criticism and tamp down ongoing protests.
S&P Dow Jones to upgrade Saudi stocks to emerging market next year | Reuters
S&P Dow Jones to upgrade Saudi stocks to emerging market next year | Reuters:
Global equity index compiler S&P Dow Jones Indices will upgrade Saudi Arabia’s bourse to emerging market status from a stand-alone market next year, becoming the latest in a series of index firms to promote Riyadh.
S&P Dow Jones will add major Saudi stocks to its global indexes with a 50 percent weighting in March 2019 and raise their weightings to 100 percent in September, the company said in a statement late on Tuesday.
The company had been considering a Saudi upgrade for several years but decided against one last year because of limited market access for foreign investors.
Global equity index compiler S&P Dow Jones Indices will upgrade Saudi Arabia’s bourse to emerging market status from a stand-alone market next year, becoming the latest in a series of index firms to promote Riyadh.
S&P Dow Jones will add major Saudi stocks to its global indexes with a 50 percent weighting in March 2019 and raise their weightings to 100 percent in September, the company said in a statement late on Tuesday.
The company had been considering a Saudi upgrade for several years but decided against one last year because of limited market access for foreign investors.
CORRECTED-Saudi lender NCB lifted by rise in fees and investment income | Reuters
CORRECTED-Saudi lender NCB lifted by rise in fees and investment income | Reuters:
Saudi Arabia’s National Commercial Bank(NCB), the kingdom’s largest lender, reported a 6.7 percent rise in second-quarter net profit on Tuesday on increased fees, commission and investments.
It was the fourth Saudi bank to report earnings on Tuesday, with the other two reporting higher profit and the third, Banque Saudi Fransi(BSF), the kingdom’s fifth-largest bank by assets, posting an 8.4 percent profit fall.
Despite limited credit growth, Saudi banking industry profitability is expected to edge up this year as higher public spending helps to lift interest margins.
Saudi Arabia’s National Commercial Bank(NCB), the kingdom’s largest lender, reported a 6.7 percent rise in second-quarter net profit on Tuesday on increased fees, commission and investments.
It was the fourth Saudi bank to report earnings on Tuesday, with the other two reporting higher profit and the third, Banque Saudi Fransi(BSF), the kingdom’s fifth-largest bank by assets, posting an 8.4 percent profit fall.
Despite limited credit growth, Saudi banking industry profitability is expected to edge up this year as higher public spending helps to lift interest margins.
RPT-COLUMN-Oil market hits a cyclical pause: Kemp | Reuters
RPT-COLUMN-Oil market hits a cyclical pause: Kemp | Reuters:
Brent crude futures prices are trading in contango for the first time in 10 months, as traders anticipate an increase in crude availability during the remainder of 2018.
The Brent calendar spread for the first six months slumped into a contango of 43 cents per barrel on Monday, from a backwardation of $3.50 as recently as April 26.
Brent futures are trading in contango for the four contracts closest to delivery, from September 2018 through January 2019 (tmsnrt.rs/2JP7ykb).
Brent crude futures prices are trading in contango for the first time in 10 months, as traders anticipate an increase in crude availability during the remainder of 2018.
The Brent calendar spread for the first six months slumped into a contango of 43 cents per barrel on Monday, from a backwardation of $3.50 as recently as April 26.
Brent futures are trading in contango for the four contracts closest to delivery, from September 2018 through January 2019 (tmsnrt.rs/2JP7ykb).
MIDEAST STOCKS-Bank shares drag Saudi and Qatar indices, Dubai developers boost benchmark | Reuters
MIDEAST STOCKS-Bank shares drag Saudi and Qatar indices, Dubai developers boost benchmark | Reuters:
Banking shares slipped in Saudi Arabia and Qatar early on Wednesday as investors digested a mixed bag of results.
Banque Saudi Fransi, which reported lower second quarter earnings on Tuesday, was down 2.5 percent. The lender disclosed a profit of 921 million riyals ($245.58 million) in the three months to June 30, down from 1.01 billion riyals in the same period of 2017.
National Commercial Bank lost 0.6 percent, even after the kingdom’s largest lender on Tuesday reported a 6.7 percent rise in second-quarter profit to 2.58 billion riyals.
Banking shares slipped in Saudi Arabia and Qatar early on Wednesday as investors digested a mixed bag of results.
Banque Saudi Fransi, which reported lower second quarter earnings on Tuesday, was down 2.5 percent. The lender disclosed a profit of 921 million riyals ($245.58 million) in the three months to June 30, down from 1.01 billion riyals in the same period of 2017.
National Commercial Bank lost 0.6 percent, even after the kingdom’s largest lender on Tuesday reported a 6.7 percent rise in second-quarter profit to 2.58 billion riyals.
Tuesday, 24 July 2018
First Abu Dhabi Bank Q2 profit up 19% | ZAWYA MENA Edition
First Abu Dhabi Bank Q2 profit up 19% | ZAWYA MENA Edition:
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, on Tuesday reported a 19 percent rise in second-quarter 2018 profit, boosted by higher foreign exchange and investment income, as well as lower impairment charges.
FAB made a net profit of 3.06 billion dirhams ($845 million) in the three months ending June 30, compared to 2.56 billion dirhams in the prior-year period, it said in a statement.
SICO Bahrain and EFG Hermes had forecast FAB would make a second-quarter profit of 2.88 billion dirhams and 2.80 billion dirhams respectively .
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, on Tuesday reported a 19 percent rise in second-quarter 2018 profit, boosted by higher foreign exchange and investment income, as well as lower impairment charges.
FAB made a net profit of 3.06 billion dirhams ($845 million) in the three months ending June 30, compared to 2.56 billion dirhams in the prior-year period, it said in a statement.
SICO Bahrain and EFG Hermes had forecast FAB would make a second-quarter profit of 2.88 billion dirhams and 2.80 billion dirhams respectively .
Oil rises as oversupply and trade tension fears abate | Reuters
Oil rises as oversupply and trade tension fears abate | Reuters:
Oil prices rose on Tuesday as the market shifted focus to the possibility of increased Chinese demand, drawing attention away from trade tensions between that country and the United States after a series of tariffs imposed by both countries.
Brent crude was up 57 cents at $73.63 a barrel by 10:50 a.m. EDT (1450 GMT). U.S. West Texas Intermediate (WTI) was up 86 cents at $68.75.
Reports on Tuesday that China will increase infrastructure spending helped lessen fears that U.S.-China trade tensions will reduce the country’s demand for oil, said Phil Flynn, analyst at Price Futures Group in Chicago.
Oil prices rose on Tuesday as the market shifted focus to the possibility of increased Chinese demand, drawing attention away from trade tensions between that country and the United States after a series of tariffs imposed by both countries.
Brent crude was up 57 cents at $73.63 a barrel by 10:50 a.m. EDT (1450 GMT). U.S. West Texas Intermediate (WTI) was up 86 cents at $68.75.
Reports on Tuesday that China will increase infrastructure spending helped lessen fears that U.S.-China trade tensions will reduce the country’s demand for oil, said Phil Flynn, analyst at Price Futures Group in Chicago.
Saudi lender NCB lifted by rise in fees and investment income | Reuters
Saudi lender NCB lifted by rise in fees and investment income | Reuters:
Saudi Arabia’s National Commercial Bank(NCB), the kingdom’s largest lender, reported a 6.7 percent rise in first-quarter net profit on Tuesday on increased fees, commission and investments.
It was the fourth Saudi bank to report earnings on Tuesday, with the other two reporting higher profit and the third, Banque Saudi Fransi(BSF), the kingdom’s fifth-largest bank by assets, posting an 8.4 percent profit fall.
Despite limited credit growth, Saudi banking industry profitability is expected to edge up this year as higher public spending helps to lift interest margins.
Saudi Arabia’s National Commercial Bank(NCB), the kingdom’s largest lender, reported a 6.7 percent rise in first-quarter net profit on Tuesday on increased fees, commission and investments.
It was the fourth Saudi bank to report earnings on Tuesday, with the other two reporting higher profit and the third, Banque Saudi Fransi(BSF), the kingdom’s fifth-largest bank by assets, posting an 8.4 percent profit fall.
Despite limited credit growth, Saudi banking industry profitability is expected to edge up this year as higher public spending helps to lift interest margins.
MIDEAST STOCKS-Saudi banks up while some petchems weigh on index; FAB rises in Abu Dhabi | Reuters
MIDEAST STOCKS-Saudi banks up while some petchems weigh on index; FAB rises in Abu Dhabi | Reuters:
Shares in Saudi banks rose on Tuesday on the back of positive second-quarter results, while some petrochemical companies dropped, reflecting a fall in oil prices.
The Saudi index shed 0.5 percent, as companies such as Saudi Kayan Petrochemical Co and National Industrialization Company weighed on the index.
Saudi Kayan published its second-quarter financial results on Sunday, showing a net profit of 878.7 million riyals ($234.30 million), up from 242 million riyals during the same period a year earlier. The results were well above average analysts’ expectations of 470 million riyals.
Shares in Saudi banks rose on Tuesday on the back of positive second-quarter results, while some petrochemical companies dropped, reflecting a fall in oil prices.
The Saudi index shed 0.5 percent, as companies such as Saudi Kayan Petrochemical Co and National Industrialization Company weighed on the index.
Saudi Kayan published its second-quarter financial results on Sunday, showing a net profit of 878.7 million riyals ($234.30 million), up from 242 million riyals during the same period a year earlier. The results were well above average analysts’ expectations of 470 million riyals.
Wealthy Saudis sit on cash as purge casts shadow over investment | Financial Times
Wealthy Saudis sit on cash as purge casts shadow over investment | Financial Times:
Wealthy Saudi merchant families are holding back from investing in the kingdom as nervousness triggered by Riyadh’s anti-corruption purge exacerbates a fragile business climate.
According to bankers, private businesses have resorted to sitting on their cash, while some are looking for ways to shift funds offshore. Yet some wealthy Saudis fear their financial affairs, especially attempts to transfer money, are being monitored to prevent them moving assets overseas, the bankers say.
“A $30,000 transfer being made by a relative [of a well-connected businessman] was questioned by a government official at the bank,” said a Saudi wealth manager. “These are targeted — but huge scale — capital controls.”
Wealthy Saudi merchant families are holding back from investing in the kingdom as nervousness triggered by Riyadh’s anti-corruption purge exacerbates a fragile business climate.
According to bankers, private businesses have resorted to sitting on their cash, while some are looking for ways to shift funds offshore. Yet some wealthy Saudis fear their financial affairs, especially attempts to transfer money, are being monitored to prevent them moving assets overseas, the bankers say.
“A $30,000 transfer being made by a relative [of a well-connected businessman] was questioned by a government official at the bank,” said a Saudi wealth manager. “These are targeted — but huge scale — capital controls.”
Oil steady as U.S.-Iran row balances trade worries | Reuters
Oil steady as U.S.-Iran row balances trade worries | Reuters:
Oil prices steadied on Tuesday as rising tension between the United States and Iran highlighted risks to supply while escalating trade disputes raised the prospect of slower economic growth and perhaps weaker energy demand.
Brent crude oil was unchanged at $73.06 a barrel by 0840 GMT. U.S. light crude was up 15 cents at $68.04.
Both oil benchmarks have fallen this month as crude supplies from Russia, Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries have increased and unscheduled production losses have eased.
Oil prices steadied on Tuesday as rising tension between the United States and Iran highlighted risks to supply while escalating trade disputes raised the prospect of slower economic growth and perhaps weaker energy demand.
Brent crude oil was unchanged at $73.06 a barrel by 0840 GMT. U.S. light crude was up 15 cents at $68.04.
Both oil benchmarks have fallen this month as crude supplies from Russia, Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries have increased and unscheduled production losses have eased.
Rising oil revenues lift outlook for Gulf finances but not growth | Reuters
Rising oil revenues lift outlook for Gulf finances but not growth | Reuters:
Rising oil revenues are greatly improving the outlook for budget and trade balances among Gulf Arab countries but will do very little to boost economic growth, a quarterly Reuters poll of economists showed.
The benchmark Brent oil price LCOc1 has averaged about $71.60 a barrel so far this year, up from $55 last year. Also, Gulf states are set to export more oil this year after global producers agreed last month to boost output, partly to compensate for anticipated losses in production by Iran, which faces U.S. sanctions.
That is a boon for state finances and external surpluses across the region, especially in Saudi Arabia, the top exporter. Saudi investment bank Jadwa forecasts Riyadh’s oil revenues at $154 billion this year, instead of the $131 billion which the government budgeted last December.
Rising oil revenues are greatly improving the outlook for budget and trade balances among Gulf Arab countries but will do very little to boost economic growth, a quarterly Reuters poll of economists showed.
The benchmark Brent oil price LCOc1 has averaged about $71.60 a barrel so far this year, up from $55 last year. Also, Gulf states are set to export more oil this year after global producers agreed last month to boost output, partly to compensate for anticipated losses in production by Iran, which faces U.S. sanctions.
That is a boon for state finances and external surpluses across the region, especially in Saudi Arabia, the top exporter. Saudi investment bank Jadwa forecasts Riyadh’s oil revenues at $154 billion this year, instead of the $131 billion which the government budgeted last December.
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