Sharjah lenders say they are not engaged in talks for a three-way merger - The National:
Abu Dhabi-listed United Arab Bank and InvestBank are not engaged in talks with Bank of Sharjah for a three-way merger that would create a lender with Dh66.2bn in assets in the northern emirate.
The banks denied media reports which suggested they are at an initial stage of engagement to combine their balance sheet with BoS, a deal driven by the government of Sharjah, which owns a stake in the Sharjah-headquartered lender. The report citing un-named sources said that JPMorgan is advising BoS on the potential deal.
The reports in the media “related to the commencement of negotiations regarding a potential merger...UAB hereby denies the news and confirms its invalidity,” the lender said in a regulatory filing to Abu Dhabi Securities Exchange.
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Sunday 30 September 2018
Qatari investments in US exceed $45bn: Minister - The Peninsula Qatar
Qatari investments in US exceed $45bn: Minister - The Peninsula Qatar:
Qatari investments in the US have exceeded $45bn (about QR164bn), the equivalent to 23 percent of Qatar’s GDP, the Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim Al Thani noted yesterday in New York City.
The Minister also noted that Qatar Airways alone provided a $92bn boost to the US economy through the purchase of 332 American aircraft a deal that supports more than 527,000 jobs.
Qatar-US bilateral relations are historic and very strong. The trade exchange between the two countries has touched new highs. The US has become one of Qatar’s most valued and largest global partners with the combined value of $24bn (QR87.39bn) worth of goods traded over the last five years while 84 percent of the trade balance is in favour of the US.
Qatari investments in the US have exceeded $45bn (about QR164bn), the equivalent to 23 percent of Qatar’s GDP, the Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim Al Thani noted yesterday in New York City.
The Minister also noted that Qatar Airways alone provided a $92bn boost to the US economy through the purchase of 332 American aircraft a deal that supports more than 527,000 jobs.
Qatar-US bilateral relations are historic and very strong. The trade exchange between the two countries has touched new highs. The US has become one of Qatar’s most valued and largest global partners with the combined value of $24bn (QR87.39bn) worth of goods traded over the last five years while 84 percent of the trade balance is in favour of the US.
QSE opens week on stronger note on buying interests; index crosses 9,800
QSE opens week on stronger note on buying interests; index crosses 9,800:
The Qatar Stock Exchange on Sunday opened the week on a stronger note to cross the 9,800 levels, mainly on the back of buying interests in industrials, transport, consumer goods and telecom.
The 20-stock Qatar Index gained for the third consecutive session by 0.3% to 9,813.32 points as domestic institutions and non-Qatari individuals turned marginally bullish.
Doha Bank-sponsored exchange-traded fund QETF witnessed 0.56% gains, while Masraf Al Rayan-sponsored QATR declined 1.93%.
The Qatar Stock Exchange on Sunday opened the week on a stronger note to cross the 9,800 levels, mainly on the back of buying interests in industrials, transport, consumer goods and telecom.
The 20-stock Qatar Index gained for the third consecutive session by 0.3% to 9,813.32 points as domestic institutions and non-Qatari individuals turned marginally bullish.
Doha Bank-sponsored exchange-traded fund QETF witnessed 0.56% gains, while Masraf Al Rayan-sponsored QATR declined 1.93%.
Qatar shows ‘remarkable resilience’ post-blockade, says Doha Bank CEO
Qatar shows ‘remarkable resilience’ post-blockade, says Doha Bank CEO:
Qatar has demonstrated “remarkable resilience” since the June 2017 economic blockade by implementing a series of legislative reforms, including achievements in finance and infrastructure development, according to Doha Bank CEO Dr R Seetharaman.
At the Doha Bank forum titled ‘Qatar’s Resilience Post Blockade – A Year On’ held on Wednesday at the Four Seasons Hotel Doha, Seetharaman spoke on reforms implemented in the past year such as the new Investment Law, permanent residency, food security, Qatar sovereign bond issuance, and other key developments like the Metro Rail project.
“In recent times, Qatar’s long-term issuer ratings have been changed from negative to stable by Moody’s Investors Service, which affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.
Qatar has demonstrated “remarkable resilience” since the June 2017 economic blockade by implementing a series of legislative reforms, including achievements in finance and infrastructure development, according to Doha Bank CEO Dr R Seetharaman.
At the Doha Bank forum titled ‘Qatar’s Resilience Post Blockade – A Year On’ held on Wednesday at the Four Seasons Hotel Doha, Seetharaman spoke on reforms implemented in the past year such as the new Investment Law, permanent residency, food security, Qatar sovereign bond issuance, and other key developments like the Metro Rail project.
“In recent times, Qatar’s long-term issuer ratings have been changed from negative to stable by Moody’s Investors Service, which affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.
Qatar's Stock Gauge Posts Best Quarter Since 2014: Inside EM - Bloomberg
Qatar's Stock Gauge Posts Best Quarter Since 2014: Inside EM - Bloomberg:
Qatar’s main equity gauge advanced, adding to the index’s gains as it posts its biggest quarterly jump in four years. Benchmarks in Saudi Arabia, Dubai and Oman also rose.
The QE Index stocks will probably outperform peers in the last quarter as MSCI Inc.’s rebalancing in November attracts foreign cash, said Talal Samhouri, head of asset management at Doha-based Amwal LLC. Investors also will re-position in December for the dividend season in the first quarter, which should lead to further upside, he said.
“We like petrochemicals, local banks and new entrants into the EM indices,” Samhouri added.
Amwal is also bullish on fixed income markets in the Gulf.
Qatar’s main equity gauge advanced, adding to the index’s gains as it posts its biggest quarterly jump in four years. Benchmarks in Saudi Arabia, Dubai and Oman also rose.
The QE Index stocks will probably outperform peers in the last quarter as MSCI Inc.’s rebalancing in November attracts foreign cash, said Talal Samhouri, head of asset management at Doha-based Amwal LLC. Investors also will re-position in December for the dividend season in the first quarter, which should lead to further upside, he said.
“We like petrochemicals, local banks and new entrants into the EM indices,” Samhouri added.
Amwal is also bullish on fixed income markets in the Gulf.
UAE approves $49bln federal budget for next three years: Sheikh Mohammed bin Rashid | ZAWYA MENA Edition
UAE approves $49bln federal budget for next three years: Sheikh Mohammed bin Rashid | ZAWYA MENA Edition:
The United Arab Emirates cabinet on Sunday approved a big increase in the federal budget for next year, in a sign that the government aims to spend more actively to boost economic growth.
The 2019 federal budget of 60.3 billion dirhams ($16.4 billion) is 17.3 percent higher than the 51.4 billion dirhams approved for 2018, and is the UAE's largest ever, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
The federal budget accounts for only a small fraction of consolidated state spending in the UAE; individual emirates such as Abu Dhabi and Dubai also have their own budgets.
The United Arab Emirates cabinet on Sunday approved a big increase in the federal budget for next year, in a sign that the government aims to spend more actively to boost economic growth.
The 2019 federal budget of 60.3 billion dirhams ($16.4 billion) is 17.3 percent higher than the 51.4 billion dirhams approved for 2018, and is the UAE's largest ever, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
The federal budget accounts for only a small fraction of consolidated state spending in the UAE; individual emirates such as Abu Dhabi and Dubai also have their own budgets.
Middle East funds less positive on equities, particularly in Egypt | ZAWYA MENA Edition
Middle East funds less positive on equities, particularly in Egypt | ZAWYA MENA Edition:
Middle East funds have become less positive toward regional equities, particularly in Egypt, because of concern about instability in emerging markets globally, a monthly Reuters poll showed on Sunday.
The latest poll of 13 leading fund managers, conducted in the past week, showed 15 percent now expect to cut their allocations to regional equities in the next three months while 8 percent expect to raise them.
That is the most negative balance since May 2016. In the previous survey, taken a month ago, 38 percent expected to raise allocations and none expected to implement reductions.
Middle East funds have become less positive toward regional equities, particularly in Egypt, because of concern about instability in emerging markets globally, a monthly Reuters poll showed on Sunday.
The latest poll of 13 leading fund managers, conducted in the past week, showed 15 percent now expect to cut their allocations to regional equities in the next three months while 8 percent expect to raise them.
That is the most negative balance since May 2016. In the previous survey, taken a month ago, 38 percent expected to raise allocations and none expected to implement reductions.
Saudi expects to boost state spending 7 percent next year | Reuters
Saudi expects to boost state spending 7 percent next year | Reuters:
Saudi Arabia’s government aims to increase spending by over 7 percent next year in an effort to boost sluggish economic growth, while continuing to cut its budget deficit gradually, finance ministry figures released on Sunday showed.
The ministry forecast state spending would climb to 1.106 trillion riyals ($295 billion) in 2019 from its latest estimate for 2018 of 1.030 trillion riyals.
But it also projected a jump in revenues to 978 billion riyals, up 11 percent from 2018. That would leave a deficit of 128 billion riyals or 4.1 percent of gross domestic product next year, compared to 148 billion riyals and 5.0 percent this year.
Saudi Arabia’s government aims to increase spending by over 7 percent next year in an effort to boost sluggish economic growth, while continuing to cut its budget deficit gradually, finance ministry figures released on Sunday showed.
The ministry forecast state spending would climb to 1.106 trillion riyals ($295 billion) in 2019 from its latest estimate for 2018 of 1.030 trillion riyals.
But it also projected a jump in revenues to 978 billion riyals, up 11 percent from 2018. That would leave a deficit of 128 billion riyals or 4.1 percent of gross domestic product next year, compared to 148 billion riyals and 5.0 percent this year.
Saudi Crown Prince arrives in Kuwait for talks | Reuters
Saudi Crown Prince arrives in Kuwait for talks | Reuters:
Saudi Crown Prince Mohammed bin Salman arrived in Kuwait on Sunday, state media reported, amid expectation that he will discuss oil supplies and a Kuwaiti mediation effort to resolve Saudi Arabia’s conflict with Qatar.
Prince Mohammed will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, state news agency KUNA reported.
The Saudi prince is expected to discuss the resumption of oil output from a neutral zone which Saudi Arabia shares with Kuwait, a source familiar with the matter told Reuters.
Saudi Crown Prince Mohammed bin Salman arrived in Kuwait on Sunday, state media reported, amid expectation that he will discuss oil supplies and a Kuwaiti mediation effort to resolve Saudi Arabia’s conflict with Qatar.
Prince Mohammed will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, state news agency KUNA reported.
The Saudi prince is expected to discuss the resumption of oil output from a neutral zone which Saudi Arabia shares with Kuwait, a source familiar with the matter told Reuters.
Lebanon bond rout ramps up currency concerns, pressure for fiscal reform | Reuters
Lebanon bond rout ramps up currency concerns, pressure for fiscal reform | Reuters:
Lebanon’s worst bond market shock in a decade has raised doubts about whether the country’s banks are willing and able to continue to bankroll the government, raising pressure on Beirut to step up reforms or risk a destabilizing currency crisis.
In September the cost of insuring Lebanese sovereign debt against default LBGV5YUSAC=MG soared to its highest level since the global financial crisis of 2008, implying a more than 40 percent chance of default in the next five years. Many of the government’s dollar-denominated bonds hit record lows, while yield spreads over U.S. Treasury debt scaled historic peaks.
The panic was triggered partly by a wider selloff in global emerging market debt. But when Lebanon’s international bonds have fallen in the past, local banks could typically be relied upon to buy up the securities. Not so this time.
Lebanon’s worst bond market shock in a decade has raised doubts about whether the country’s banks are willing and able to continue to bankroll the government, raising pressure on Beirut to step up reforms or risk a destabilizing currency crisis.
In September the cost of insuring Lebanese sovereign debt against default LBGV5YUSAC=MG soared to its highest level since the global financial crisis of 2008, implying a more than 40 percent chance of default in the next five years. Many of the government’s dollar-denominated bonds hit record lows, while yield spreads over U.S. Treasury debt scaled historic peaks.
The panic was triggered partly by a wider selloff in global emerging market debt. But when Lebanon’s international bonds have fallen in the past, local banks could typically be relied upon to buy up the securities. Not so this time.
Saudi shelves $200 billion SoftBank Solar project: WSJ | Reuters
Saudi shelves $200 billion SoftBank Solar project: WSJ | Reuters:
Saudi Arabia has shelved a $200 billion plan with SoftBank Group Corp (9984.T) to build the world’s biggest solar-power-generation project, the Wall Street journal reported on Sunday, citing Saudi government officials.
No one is actively working on the project, and instead, the Saudi kingdom is working up a broader, more practical strategy to boost renewable energy, to be announced in late October, the WSJ reported on.wsj.com/2NW8wlH.
SoftBank Chief Executive Masayoshi Son had announced in March a plan to invest in creating the world’s biggest solar power project in Saudi Arabia, a project expected to have the capacity to produce up to 200 gigawatts (GW) by 2030.
Saudi Arabia has shelved a $200 billion plan with SoftBank Group Corp (9984.T) to build the world’s biggest solar-power-generation project, the Wall Street journal reported on Sunday, citing Saudi government officials.
No one is actively working on the project, and instead, the Saudi kingdom is working up a broader, more practical strategy to boost renewable energy, to be announced in late October, the WSJ reported on.wsj.com/2NW8wlH.
SoftBank Chief Executive Masayoshi Son had announced in March a plan to invest in creating the world’s biggest solar power project in Saudi Arabia, a project expected to have the capacity to produce up to 200 gigawatts (GW) by 2030.
Saudi misses out on joining anti-illicit funding body for now | Reuters
Saudi misses out on joining anti-illicit funding body for now | Reuters:
Saudi Arabia has missed out on gaining full membership of the Financial Action Task Force (FATF) after the global body dedicated to fighting illicit money flows found the kingdom fell short in combating money laundering and terror financing.
The decision by the 37-member inter-governmental body is a setback for Saudi at a time when it is striving to bolster its international reputation in order to encourage foreign investors to participate in its huge transformation plan and improve financial ties for its banks.
But after undergoing a process called “mutual evaluation”, the kingdom was found to have a low or moderate level of effectiveness for 7 of the 11 criteria it was assessed on for anti-money laundering and counter terror financing, a FATF spokeswoman told Reuters.
Saudi Arabia has missed out on gaining full membership of the Financial Action Task Force (FATF) after the global body dedicated to fighting illicit money flows found the kingdom fell short in combating money laundering and terror financing.
The decision by the 37-member inter-governmental body is a setback for Saudi at a time when it is striving to bolster its international reputation in order to encourage foreign investors to participate in its huge transformation plan and improve financial ties for its banks.
But after undergoing a process called “mutual evaluation”, the kingdom was found to have a low or moderate level of effectiveness for 7 of the 11 criteria it was assessed on for anti-money laundering and counter terror financing, a FATF spokeswoman told Reuters.
Saudi economy accelerates in second-quarter but private sector still sluggish | Reuters
Saudi economy accelerates in second-quarter but private sector still sluggish | Reuters:
Saudi Arabia’s economy grew in the second quarter at its fastest pace for over a year but the private sector remained sluggish, weighed down by austerity steps and a drive to push more Saudi citizens into jobs, official data showed on Sunday.
Gross domestic product, adjusted for inflation, expanded 1.6 percent from a year earlier in the April-June quarter. That was up from 1.2 percent in the first quarter and the fastest growth since the fourth quarter of 2016.
But the pick-up was mainly due to the government sector, where growth jumped to 4.0 percent from 2.7 percent as authorities boosted spending, the data showed.
Saudi Arabia’s economy grew in the second quarter at its fastest pace for over a year but the private sector remained sluggish, weighed down by austerity steps and a drive to push more Saudi citizens into jobs, official data showed on Sunday.
Gross domestic product, adjusted for inflation, expanded 1.6 percent from a year earlier in the April-June quarter. That was up from 1.2 percent in the first quarter and the fastest growth since the fourth quarter of 2016.
But the pick-up was mainly due to the government sector, where growth jumped to 4.0 percent from 2.7 percent as authorities boosted spending, the data showed.
MIDEAST STOCKS-Saudi gains on oil price rally, state spending boost | Reuters
MIDEAST STOCKS-Saudi gains on oil price rally, state spending boost | Reuters:
Saudi shares rose 1.3 percent on Sunday to their highest close in more than a month, fueled by an oil price rally and the kingdom’s plans to boost state spending.
The Saudi index closed at 7,999.5 points, the highest level since August 29, with petrochemicals giant Saudi Basic Industries closing 1.5 percent higher and refiner Petro Rabigh up 2.6 percent. Banks also gained with Al Rajhi Bank up nearly 2 percent and Samba Financial Group rising 1.1 percent
On Friday Brent crude futures rose $1 to settle at $82.72 a barrel, with the session high of $82.87 the contract’s highest since Nov. 10, 2014.
Saudi shares rose 1.3 percent on Sunday to their highest close in more than a month, fueled by an oil price rally and the kingdom’s plans to boost state spending.
The Saudi index closed at 7,999.5 points, the highest level since August 29, with petrochemicals giant Saudi Basic Industries closing 1.5 percent higher and refiner Petro Rabigh up 2.6 percent. Banks also gained with Al Rajhi Bank up nearly 2 percent and Samba Financial Group rising 1.1 percent
On Friday Brent crude futures rose $1 to settle at $82.72 a barrel, with the session high of $82.87 the contract’s highest since Nov. 10, 2014.
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg:
Rising oil prices are prompting forecasts of a return to $100 a barrel for the first time since 2014, creating both winners and losers in the world economy.
Exporters of the fuel would enjoy bumper returns, giving a fillip to companies and government coffers. By contrast, consuming nations would bear the cost at the pump, potentially fanning inflation and hurting demand.
The good news is that Bloomberg Economics found that oil at $100 would mean less for global growth in 2018 than it did after the 2011 spike. That’s partly because economies are less reliant on energy and because the shale revolution cushioning the U.S.
Rising oil prices are prompting forecasts of a return to $100 a barrel for the first time since 2014, creating both winners and losers in the world economy.
Exporters of the fuel would enjoy bumper returns, giving a fillip to companies and government coffers. By contrast, consuming nations would bear the cost at the pump, potentially fanning inflation and hurting demand.
The good news is that Bloomberg Economics found that oil at $100 would mean less for global growth in 2018 than it did after the 2011 spike. That’s partly because economies are less reliant on energy and because the shale revolution cushioning the U.S.
Saudi Crown Prince to discuss Neutral Zone oil output during Kuwait trip: source | Reuters
Saudi Crown Prince to discuss Neutral Zone oil output during Kuwait trip: source | Reuters:
Saudi Arabia’s Crown Prince Mohammad bin Salman is expected to discuss the resumption of oil output from the Neutral Zone, which the kingdom’s shares with Kuwait, during a trip to the Gulf Arab state on Sunday, a source familiar with the matter told Reuters.
Prince Mohammad will be accompanied by Energy Minister Khalid al-Falih during his trip to Kuwait, two separate sources said.
The Saudi crown prince will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the Kuwaiti News Agency has reported.
Saudi Arabia’s Crown Prince Mohammad bin Salman is expected to discuss the resumption of oil output from the Neutral Zone, which the kingdom’s shares with Kuwait, during a trip to the Gulf Arab state on Sunday, a source familiar with the matter told Reuters.
Prince Mohammad will be accompanied by Energy Minister Khalid al-Falih during his trip to Kuwait, two separate sources said.
The Saudi crown prince will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the Kuwaiti News Agency has reported.
MIDEAST STOCKS-Firm oil prices lift Saudi, Bank of Sharjah boosted by merger talk | Reuters
MIDEAST STOCKS-Firm oil prices lift Saudi, Bank of Sharjah boosted by merger talk | Reuters:
Firm oil prices lifted most Gulf stocks on Sunday, led by Qatar and Saudi Arabia, while Bank of Sharjah shares surged on news that the bank may get involved in three-way merger talks.
The Saudi index was up 0.5 percent in early trade, lifted by a 0.7 percent rise in Saudi Basic Industries and a 1 percent rise in Al Rajhi Bank.
A gain of more than 1 percent in Industries Qatar and Qatar National Bank lifted Qatari stocks by 0.8 percent in early trade.
Firm oil prices lifted most Gulf stocks on Sunday, led by Qatar and Saudi Arabia, while Bank of Sharjah shares surged on news that the bank may get involved in three-way merger talks.
The Saudi index was up 0.5 percent in early trade, lifted by a 0.7 percent rise in Saudi Basic Industries and a 1 percent rise in Al Rajhi Bank.
A gain of more than 1 percent in Industries Qatar and Qatar National Bank lifted Qatari stocks by 0.8 percent in early trade.
Saturday 29 September 2018
Saudi Arabia expects $11 billion inflows from JP Morgan bond index entry | Reuters
Saudi Arabia expects $11 billion inflows from JP Morgan bond index entry | Reuters:
Saudi Arabia said it expects inflows of around $11 billion into the country’s debt as a result of the inclusion of its international bond issues in JP Morgan’s emerging markets bond indexes.
Saudi Arabia, together with the United Arab Emirates, Qatar, Bahrain and Kuwait, will enter JP Morgan’s emerging market government bond indexes next year, JP Morgan announced last week.
The move is expected to attract a total of around $30 billion of new foreign investment into their debt.
Saudi Arabia said it expects inflows of around $11 billion into the country’s debt as a result of the inclusion of its international bond issues in JP Morgan’s emerging markets bond indexes.
Saudi Arabia, together with the United Arab Emirates, Qatar, Bahrain and Kuwait, will enter JP Morgan’s emerging market government bond indexes next year, JP Morgan announced last week.
The move is expected to attract a total of around $30 billion of new foreign investment into their debt.
Brent hits 4-year high as U.S. sanctions on Iran tighten supply | Reuters
Brent hits 4-year high as U.S. sanctions on Iran tighten supply | Reuters:
Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
Brent crude LCOc1 futures rose $1 to settle at $82.72 a barrel. The session high of $82.87 was the contract’s highest since Nov. 10, 2014. In the third quarter, Brent has gained about 4 percent.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.13 to settle at $73.25 a barrel. The session high of $73.73 was the highest since July 11. The contract is up about 5 percent this month but down around 1 percent for the quarter.
Oil prices rose more than 1 percent on Friday, with Brent climbing to a four-year high, as U.S. sanctions on Tehran squeezed Iranian crude exports, tightening supply even as other key exporters increased production.
Brent crude LCOc1 futures rose $1 to settle at $82.72 a barrel. The session high of $82.87 was the contract’s highest since Nov. 10, 2014. In the third quarter, Brent has gained about 4 percent.
U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.13 to settle at $73.25 a barrel. The session high of $73.73 was the highest since July 11. The contract is up about 5 percent this month but down around 1 percent for the quarter.
Friday 28 September 2018
How Much Oil Can Saudi Arabia Really Pump? We're Set to Find Out - Bloomberg
How Much Oil Can Saudi Arabia Really Pump? We're Set to Find Out - Bloomberg:
Does Saudi Arabia have the extra oil?
For the first time since Saddam Hussein invaded Kuwait in 1990, Saudi Arabia could face the ultimate petroleum test: pushing its complex network of oilfields, processing plants, pipelines, tank farms and export terminals to the limit, pumping every possible barrel of oil.
Today another Middle East crisis is stretching the Saudi oil machine. U.S. sanctions on Iran are crippling exports from the Islamic Republic, prompting buyers to look to the world’s largest exporter for replacement barrels.
Does Saudi Arabia have the extra oil?
For the first time since Saddam Hussein invaded Kuwait in 1990, Saudi Arabia could face the ultimate petroleum test: pushing its complex network of oilfields, processing plants, pipelines, tank farms and export terminals to the limit, pumping every possible barrel of oil.
Today another Middle East crisis is stretching the Saudi oil machine. U.S. sanctions on Iran are crippling exports from the Islamic Republic, prompting buyers to look to the world’s largest exporter for replacement barrels.
Oil to rise as Iran sanctions outweigh demand risks from trade wars: Reuters poll | Reuters
Oil to rise as Iran sanctions outweigh demand risks from trade wars: Reuters poll | Reuters:
Oil prices are likely to climb continuously into next year, as concerns over drops in supply from the likes of Iran and Venezuela outweigh any worry that global trade disputes could undermine demand, a Reuters poll showed on Friday.
A survey of 50 economists and analysts forecast Brent crude to average $73.48 a barrel in 2018, up from the $72.71 forecast in August and the $72.68 average so far this year. Brent was forecast to average $73.75 in 2019.
This is the highest projection for the benchmark for both 2018 and 2019 in the polls this year.
Oil prices are likely to climb continuously into next year, as concerns over drops in supply from the likes of Iran and Venezuela outweigh any worry that global trade disputes could undermine demand, a Reuters poll showed on Friday.
A survey of 50 economists and analysts forecast Brent crude to average $73.48 a barrel in 2018, up from the $72.71 forecast in August and the $72.68 average so far this year. Brent was forecast to average $73.75 in 2019.
This is the highest projection for the benchmark for both 2018 and 2019 in the polls this year.
Thursday 27 September 2018
The Next Cycle of LNG Investments Is Set to Start in Canada - Bloomberg
The Next Cycle of LNG Investments Is Set to Start in Canada - Bloomberg:
The next LNG investment cycle may be primed for a liftoff.
Royal Dutch Shell Plc and its partners are set to announce a final investment decision on their C$40 billion ($31 billion) liquefied natural gas terminal in western Canada as early as next week, Bloomberg reported Wednesday. This would be the first FID for a greenfield, onshore project since Corpus Christi LNG in May 2015, according to Fauziah Marzuki, an analyst at Bloomberg NEF.
“We think 2019 could be the biggest year of LNG FIDs ever,” Nicholas Browne, an analyst with Wood Mackenzie Ltd., said by email.
The next LNG investment cycle may be primed for a liftoff.
Royal Dutch Shell Plc and its partners are set to announce a final investment decision on their C$40 billion ($31 billion) liquefied natural gas terminal in western Canada as early as next week, Bloomberg reported Wednesday. This would be the first FID for a greenfield, onshore project since Corpus Christi LNG in May 2015, according to Fauziah Marzuki, an analyst at Bloomberg NEF.
“We think 2019 could be the biggest year of LNG FIDs ever,” Nicholas Browne, an analyst with Wood Mackenzie Ltd., said by email.
Gulf Powers Are Said to Weigh Five-Year Bahrain Aid Package - Bloomberg
Gulf Powers Are Said to Weigh Five-Year Bahrain Aid Package - Bloomberg:
Bahrain’s Gulf Arab allies are weighing plans for a five-year aid package to steady its finances and protect a currency peg seen as vital to regional economic stability, according to three people with knowledge of the matter. Bonds gained.
The assistance would help Bahrain meet its financing needs over the period while it carries out fiscal reforms, the people said on condition of anonymity. The amount under negotiation is $10 billion, though a final agreement has yet to be reached, one of the people said.
The deal is taking shape after months of negotiations over the measures Bahrain would take to receive support from Saudi Arabia, the United Arab Emirates and Kuwait. The package may include deposits and low-interest loans, one of the people said.
Bahrain’s Gulf Arab allies are weighing plans for a five-year aid package to steady its finances and protect a currency peg seen as vital to regional economic stability, according to three people with knowledge of the matter. Bonds gained.
The assistance would help Bahrain meet its financing needs over the period while it carries out fiscal reforms, the people said on condition of anonymity. The amount under negotiation is $10 billion, though a final agreement has yet to be reached, one of the people said.
The deal is taking shape after months of negotiations over the measures Bahrain would take to receive support from Saudi Arabia, the United Arab Emirates and Kuwait. The package may include deposits and low-interest loans, one of the people said.
Saudi Arabia's legal revamp offers hope for cautious investors | Reuters
Saudi Arabia's legal revamp offers hope for cautious investors | Reuters:
Saudi Arabia’s first comprehensive bankruptcy law went into effect last month, one of many reforms to the legal system that economists say may be more important in the long run than high-profile privatizations.
Crown Prince Mohammed bin Salman’s Vision 2030 push to diversify the economy away from oil has grabbed attention for its big-ticket initiatives, such as a $500 billion business zone and a plan, now shelved, to sell part of the state oil firm.
The legal reforms have attracted less media coverage because they are highly technical, but they are extensive, ranging from new laws to the creation of courts and training of judges, and they have accelerated over the past couple of years.
Saudi Arabia’s first comprehensive bankruptcy law went into effect last month, one of many reforms to the legal system that economists say may be more important in the long run than high-profile privatizations.
Crown Prince Mohammed bin Salman’s Vision 2030 push to diversify the economy away from oil has grabbed attention for its big-ticket initiatives, such as a $500 billion business zone and a plan, now shelved, to sell part of the state oil firm.
The legal reforms have attracted less media coverage because they are highly technical, but they are extensive, ranging from new laws to the creation of courts and training of judges, and they have accelerated over the past couple of years.
Oil rises as investors fret over Iranian supply gaps | Reuters
Oil rises as investors fret over Iranian supply gaps | Reuters:
Oil edged higher on Thursday, driven by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in five weeks.
U.S. President Donald Trump this week demanded that the Organization of the Petroleum Exporting Countries raise production to prevent further price rises ahead of midterm elections in November for U.S. Congress members.
“The market continues to move higher on fears that the loss of Iranian exports is not going to be made up,” said Gene McGillian, director of market research at Tradition Energy, in Stamford Connecticut.
Oil edged higher on Thursday, driven by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in five weeks.
U.S. President Donald Trump this week demanded that the Organization of the Petroleum Exporting Countries raise production to prevent further price rises ahead of midterm elections in November for U.S. Congress members.
“The market continues to move higher on fears that the loss of Iranian exports is not going to be made up,” said Gene McGillian, director of market research at Tradition Energy, in Stamford Connecticut.
Abu Dhabi’s Mubadala plans bond transaction soon - sources | Reuters
Abu Dhabi’s Mubadala plans bond transaction soon - sources | Reuters:
Abu Dhabi state fund Mubadala is working on a bond transaction which could be announced as soon as next week, sources familiar with the matter said.
Unlisted Mubadala, which has stakes in General Electric and private equity firm Carlyle Group, is working with a number of banks, including Bank of America Merril Lynch (BAML), on the planned deal, said three of the sources.
A spokesman at Mubadala told Reuters: “we are looking at various ways to optimize and simplify our organizational and capital structure.”
Abu Dhabi state fund Mubadala is working on a bond transaction which could be announced as soon as next week, sources familiar with the matter said.
Unlisted Mubadala, which has stakes in General Electric and private equity firm Carlyle Group, is working with a number of banks, including Bank of America Merril Lynch (BAML), on the planned deal, said three of the sources.
A spokesman at Mubadala told Reuters: “we are looking at various ways to optimize and simplify our organizational and capital structure.”
Special Report: As a Saudi prince rose, the Bin Laden business empire crumbled | Reuters
Special Report: As a Saudi prince rose, the Bin Laden business empire crumbled | Reuters:
Soon after Prince Mohammed bin Salman became second in line to the throne of Saudi Arabia, he turned his sights to the sprawling empire of the Saudi Binladin Group.
In 2015, the prince, then 29, approached Bakr bin Laden, chairman of the family-owned construction giant, and told him he wanted to become a partner in the firm, according to six people briefed on the exchange.
The prince pitched his offer as a patriotic opportunity to help transform the kingdom’s oil-dependent economy. It would also, he said, ease the financial strain on the company as the government reined in infrastructure spending to cope with a drop in oil prices.
Soon after Prince Mohammed bin Salman became second in line to the throne of Saudi Arabia, he turned his sights to the sprawling empire of the Saudi Binladin Group.
In 2015, the prince, then 29, approached Bakr bin Laden, chairman of the family-owned construction giant, and told him he wanted to become a partner in the firm, according to six people briefed on the exchange.
The prince pitched his offer as a patriotic opportunity to help transform the kingdom’s oil-dependent economy. It would also, he said, ease the financial strain on the company as the government reined in infrastructure spending to cope with a drop in oil prices.
UPDATE 1-UAE's Bank of Sharjah, Invest Bank, UAB in merger plan –sources | Reuters
UPDATE 1-UAE's Bank of Sharjah, Invest Bank, UAB in merger plan –sources | Reuters:
The Sharjah government is weighing a merger between three of the emirate’s banks that could create a lender with about 66.2 billion dirhams ($ 18.0 billion) of assets, sources aware of the matter told Reuters.
The potential merger between Bank of Sharjah, Invest Bank and United Arab Bank (UAB) reinforces the consolidation already underway in the United Arab Emirates’ crowded banking industry. About 50 banks operate in the UAE with a population of about 9 million people.
Three Abu Dhabi banks are currently in talks to merge, while last year two of the emirate’s biggest banks linked up to create First Abu Dhabi Bank.
The Sharjah government is weighing a merger between three of the emirate’s banks that could create a lender with about 66.2 billion dirhams ($ 18.0 billion) of assets, sources aware of the matter told Reuters.
The potential merger between Bank of Sharjah, Invest Bank and United Arab Bank (UAB) reinforces the consolidation already underway in the United Arab Emirates’ crowded banking industry. About 50 banks operate in the UAE with a population of about 9 million people.
Three Abu Dhabi banks are currently in talks to merge, while last year two of the emirate’s biggest banks linked up to create First Abu Dhabi Bank.
Emirates NBD lifts Dubai, rest of Gulf modestly firmer | Reuters
Emirates NBD lifts Dubai, rest of Gulf modestly firmer | Reuters:
A leap by Dubai’s biggest bank boosted the stock market index sharply on Thursday while most Gulf bourses registered only marginal gains.
The Dubai index closed up 1.8 percent, its biggest gain since May, as Emirates NBD jumped 6.2 percent to 9.50 dirhams. It was the market’s strongest stock; 5.6 million of its shares changed hands, or 7.3 times the 30-day average for volume.
Many analysts consider the stock undervalued. Eleven analysts covering the stock have a median target price of 13.20 dirhams, according to Thomson Reuters data.
A leap by Dubai’s biggest bank boosted the stock market index sharply on Thursday while most Gulf bourses registered only marginal gains.
The Dubai index closed up 1.8 percent, its biggest gain since May, as Emirates NBD jumped 6.2 percent to 9.50 dirhams. It was the market’s strongest stock; 5.6 million of its shares changed hands, or 7.3 times the 30-day average for volume.
Many analysts consider the stock undervalued. Eleven analysts covering the stock have a median target price of 13.20 dirhams, according to Thomson Reuters data.
Qatar boycott puts it at highest risk of downgrade globally: S&P | Reuters
Qatar boycott puts it at highest risk of downgrade globally: S&P | Reuters:
Qatar is the country at highest risk of being downgraded by S&P Global Ratings as it continues to feel the impact of a boycott by other Arab states, the rating agency said in a research note.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar last year, accusing it of backing terrorism, a charge which Doha denies.
The move disrupted Qatar’s imports and led to the withdrawal of billions of dollars from Qatari banks by depositors from the four states, hurting the economy.
Qatar is the country at highest risk of being downgraded by S&P Global Ratings as it continues to feel the impact of a boycott by other Arab states, the rating agency said in a research note.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and transport ties with Qatar last year, accusing it of backing terrorism, a charge which Doha denies.
The move disrupted Qatar’s imports and led to the withdrawal of billions of dollars from Qatari banks by depositors from the four states, hurting the economy.
Saudi Arabia in short-term oil fix, fears extra U.S. supply next year | ZAWYA MENA Edition
Saudi Arabia in short-term oil fix, fears extra U.S. supply next year | ZAWYA MENA Edition:
Saudi Arabia will quietly add extra oil to the market over the next couple of months to offset a drop in Iranian production but is worried it might need to limit output next year to balance global supply and demand as the United States pumps more crude.
The kingdom, OPEC's top producer, came under renewed pressure last week from U.S. President Donald Trump to cool oil prices ahead of a meeting in Algiers between a number of OPEC ministers and allies including Russia.
Two sources familiar with OPEC policy said Saudi Arabia and other producers discussed a possible production increase of about 500,000 barrels per day (bpd) among the Organization of the Petroleum Exporting Countries and non-OPEC allies.
Saudi Arabia will quietly add extra oil to the market over the next couple of months to offset a drop in Iranian production but is worried it might need to limit output next year to balance global supply and demand as the United States pumps more crude.
The kingdom, OPEC's top producer, came under renewed pressure last week from U.S. President Donald Trump to cool oil prices ahead of a meeting in Algiers between a number of OPEC ministers and allies including Russia.
Two sources familiar with OPEC policy said Saudi Arabia and other producers discussed a possible production increase of about 500,000 barrels per day (bpd) among the Organization of the Petroleum Exporting Countries and non-OPEC allies.
Ferrari World Cooling Provider Sees Analysts Bet on Rebound - Bloomberg
Ferrari World Cooling Provider Sees Analysts Bet on Rebound - Bloomberg:
A company that literally cools down some of the most-popular tourist attractions in the United Arab Emirates is trading in the stock market with a potential upside of more than 40 percent, according to an analyst consensus.
Shares of Abu Dhabi-based National Central Cooling Co. PJSC, or Tabreed, which provides air-conditioning services in the Gulf region, closed at the lowest price in nearly six months earlier this week and close to its cheapest level relative to future earnings since 2016.
The retracement could be flashing a buying opportunity, as six analysts tracking the stock have either a buy or overweight rating with return potential in the next year of 44 percent, data compiled by Bloomberg show.
A company that literally cools down some of the most-popular tourist attractions in the United Arab Emirates is trading in the stock market with a potential upside of more than 40 percent, according to an analyst consensus.
Shares of Abu Dhabi-based National Central Cooling Co. PJSC, or Tabreed, which provides air-conditioning services in the Gulf region, closed at the lowest price in nearly six months earlier this week and close to its cheapest level relative to future earnings since 2016.
The retracement could be flashing a buying opportunity, as six analysts tracking the stock have either a buy or overweight rating with return potential in the next year of 44 percent, data compiled by Bloomberg show.
Total Sees $100 Oil Coming, And Says It May Not Be a Good Thing - Bloomberg
Total Sees $100 Oil Coming, And Says It May Not Be a Good Thing - Bloomberg:
Total SA is among a growing chorus that sees $100 oil on the horizon. But the French energy giant isn’t thrilled about it.
Chief Executive Officer Patrick Pouyanne sees supportive elements, such as looming sanctions on Iran and disruptions in Venezuela, that are stripping supply from the market and pushing prices back into triple digits for the first time seen since 2014, he said in a Bloomberg television interview.
“I’m not sure it’s a good news” for the global economy, Pouyanne said. “Even for the oil industry, because you know, when price goes too high then you open the door to your competitors” and demand will fall, he said.
Total SA is among a growing chorus that sees $100 oil on the horizon. But the French energy giant isn’t thrilled about it.
Chief Executive Officer Patrick Pouyanne sees supportive elements, such as looming sanctions on Iran and disruptions in Venezuela, that are stripping supply from the market and pushing prices back into triple digits for the first time seen since 2014, he said in a Bloomberg television interview.
“I’m not sure it’s a good news” for the global economy, Pouyanne said. “Even for the oil industry, because you know, when price goes too high then you open the door to your competitors” and demand will fall, he said.
MIDEAST STOCKS-Banks lift Dubai, most Gulf markets gain modestly | Reuters
MIDEAST STOCKS-Banks lift Dubai, most Gulf markets gain modestly | Reuters:
Dubai’s stock market rose sharply early on Thursday, boosted by banks and property stocks, while most other Gulf markets gained by much more modest margins.
The Dubai index climbed 1.3 percent as the largest bank in Dubai, Emirates NBD, jumped 4.5 percent to 9.35 dirhams in unusually heavy trade. Many analysts consider it undervalued; 11 analysts covering the stock have a median target price of 13.20 dirhams, according to Thomson Reuters data.
ENBD’s unit Emirates Islamic on Tuesday said it would launch mortgages to help non-residents buy property in the United Arab Emirates.
Dubai’s stock market rose sharply early on Thursday, boosted by banks and property stocks, while most other Gulf markets gained by much more modest margins.
The Dubai index climbed 1.3 percent as the largest bank in Dubai, Emirates NBD, jumped 4.5 percent to 9.35 dirhams in unusually heavy trade. Many analysts consider it undervalued; 11 analysts covering the stock have a median target price of 13.20 dirhams, according to Thomson Reuters data.
ENBD’s unit Emirates Islamic on Tuesday said it would launch mortgages to help non-residents buy property in the United Arab Emirates.
Wednesday 26 September 2018
Qatar’s trade balance rises 39.5% to QR17.5bn in August - The Peninsula Qatar
Qatar’s trade balance rises 39.5% to QR17.5bn in August - The Peninsula Qatar:
Qatar’s trade balance, the difference between exports and imports, recorded a surplus of QR17.5bn for the month of August. This is QR5bn higher compared to the same period of last year, or 39.5 percent year-on-year (y-o-y).
Sequentially, it represents a growth of QR0.6bn, or 3.7 percent, according to data released by the Ministry of Development Planning and Statistics, yesterday.
The report showed that the month of August 2018 showed total exports of goods (including exports of goods of domestic origin and re-exports) amounting to around QR26.4bn, showing an increase of 23.3 percent compared to August 2017, and decreased by 0.7percent compared to July 2018.
Qatar’s trade balance, the difference between exports and imports, recorded a surplus of QR17.5bn for the month of August. This is QR5bn higher compared to the same period of last year, or 39.5 percent year-on-year (y-o-y).
Sequentially, it represents a growth of QR0.6bn, or 3.7 percent, according to data released by the Ministry of Development Planning and Statistics, yesterday.
The report showed that the month of August 2018 showed total exports of goods (including exports of goods of domestic origin and re-exports) amounting to around QR26.4bn, showing an increase of 23.3 percent compared to August 2017, and decreased by 0.7percent compared to July 2018.
Abraaj was Dubai’s star investor; now it can’t pay rent
Abraaj was Dubai’s star investor; now it can’t pay rent:
Abraaj, once one of the most influential emerging-market investors, plans to vacate its headquarters in Dubai’s business hub after the embattled buyout firm failed to pay rent, people with the knowledge of the matter said.
Dubai International Financial Centre told Abraaj to vacate its main office in the financial freezone by the end of the month, the people said, asking not to be identified as the information is private. The lease on one of the company’s offices has expired, one of the people said. Employees have been informed and Abraaj is looking for temporary office space, another person said.
Employees at Abraaj’s $1bn healthcare fund, which is being taken over by TPG, will continue to work from a separate office in the financial centre, the people said. Abraaj, which is in the midst of a court-appointed restructuring, has about 50 people and liquidators working from its headquarters, one person said.
Abraaj, once one of the most influential emerging-market investors, plans to vacate its headquarters in Dubai’s business hub after the embattled buyout firm failed to pay rent, people with the knowledge of the matter said.
Dubai International Financial Centre told Abraaj to vacate its main office in the financial freezone by the end of the month, the people said, asking not to be identified as the information is private. The lease on one of the company’s offices has expired, one of the people said. Employees have been informed and Abraaj is looking for temporary office space, another person said.
Employees at Abraaj’s $1bn healthcare fund, which is being taken over by TPG, will continue to work from a separate office in the financial centre, the people said. Abraaj, which is in the midst of a court-appointed restructuring, has about 50 people and liquidators working from its headquarters, one person said.
New FDI law is set to make Qatar a hub for trade and re-exports
New FDI law is set to make Qatar a hub for trade and re-exports:
The new foreign direct investment (FDI) law, which is expected to be in place by the end of this year, and the economic zones, is expected to make Qatar a perfect hub for trade/re-exports, according to a top government official.
Although, Qatar is opening up almost all the economic sectors through 100% FDI; banking and insurance, which are critical to the country’s economy, will however require the Prime Minister’s approval, Abdulbasit Talib al-Ajji, Director of the Business Development and Investment Promotion Department at the Ministry of Economy and Commerce (MEC), told a roundtable.
Addressing ‘Qatar’s business climate and new FDI law’, organised by the MEC in association with The Business Year, to discuss the key incentives and advantages that Qatar is offering to investors on the organisational level; he highlighted Qatar’s economic growth and efforts to enhance co-ordination and co-operation among government agencies in a bid to provide an attractive investment environment to investors.
The new foreign direct investment (FDI) law, which is expected to be in place by the end of this year, and the economic zones, is expected to make Qatar a perfect hub for trade/re-exports, according to a top government official.
Although, Qatar is opening up almost all the economic sectors through 100% FDI; banking and insurance, which are critical to the country’s economy, will however require the Prime Minister’s approval, Abdulbasit Talib al-Ajji, Director of the Business Development and Investment Promotion Department at the Ministry of Economy and Commerce (MEC), told a roundtable.
Addressing ‘Qatar’s business climate and new FDI law’, organised by the MEC in association with The Business Year, to discuss the key incentives and advantages that Qatar is offering to investors on the organisational level; he highlighted Qatar’s economic growth and efforts to enhance co-ordination and co-operation among government agencies in a bid to provide an attractive investment environment to investors.
Oil Rebounds After Rick Perry Rules Out Tapping Strategic Crude - Bloomberg
Oil Rebounds After Rick Perry Rules Out Tapping Strategic Crude - Bloomberg:
Crude erased most of the day’s losses after U.S. Energy Secretary Rick Perry said the nation’s strategic oil reserves won’t be tapped to expand global supplies.
Selling some of those reserves would have a “fairly minor and short-term impact,” Perry told reporters in Washington on Wednesday. As sanctions squeeze Iranian crude out of global markets, there are opportunities for other major crude producers to fill supply voids, he said.
“This is a situation where the market expected U.S. President Trump to release oil from the reserves in November but that’s not going to happen,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The market all of a sudden looks a lot tighter.”
Crude erased most of the day’s losses after U.S. Energy Secretary Rick Perry said the nation’s strategic oil reserves won’t be tapped to expand global supplies.
Selling some of those reserves would have a “fairly minor and short-term impact,” Perry told reporters in Washington on Wednesday. As sanctions squeeze Iranian crude out of global markets, there are opportunities for other major crude producers to fill supply voids, he said.
“This is a situation where the market expected U.S. President Trump to release oil from the reserves in November but that’s not going to happen,” said Phil Flynn, senior market analyst at Price Futures Group in Chicago. “The market all of a sudden looks a lot tighter.”
Qatar Said to See $40 Billion Income Gain From Gas Expansion - Bloomberg
Qatar Said to See $40 Billion Income Gain From Gas Expansion - Bloomberg:
Qatar will generate $40 billion in additional export revenue once it completes its natural gas expansion project in 2024, according to a person with direct knowledge of the matter.
Rising income from sales of liquefied natural gas will leave the government with a budget surplus of about $44 billion in 2024, with the bulk of the extra cash going to the $320 billion Qatar Investment Authority, the country’s sovereign wealth fund, the person said, asking not to be identified because the information is private.
The world’s biggest LNG producer wants to bulk up as competing supplies from Australia and the U.S. are also set to come to the market over the next decade. State-owned Qatar Petroleum will build four new liquefaction plants, known as trains, by 2025, up from a previously announced three, Chief Executive Officer Saad Sherida Al Kaabi told reporters in Doha on Wednesday.
Qatar will generate $40 billion in additional export revenue once it completes its natural gas expansion project in 2024, according to a person with direct knowledge of the matter.
Rising income from sales of liquefied natural gas will leave the government with a budget surplus of about $44 billion in 2024, with the bulk of the extra cash going to the $320 billion Qatar Investment Authority, the country’s sovereign wealth fund, the person said, asking not to be identified because the information is private.
The world’s biggest LNG producer wants to bulk up as competing supplies from Australia and the U.S. are also set to come to the market over the next decade. State-owned Qatar Petroleum will build four new liquefaction plants, known as trains, by 2025, up from a previously announced three, Chief Executive Officer Saad Sherida Al Kaabi told reporters in Doha on Wednesday.
Saudi Sovereign Fund Plans to Build 'Riviera of the Middle East' - Bloomberg
Saudi Sovereign Fund Plans to Build 'Riviera of the Middle East' - Bloomberg:
Saudi Arabia’s sovereign wealth fund plans to build an "ultra-luxury" destination for international tourists in addition to two other mega-projects already planned for the kingdom’s Red Sea coast.
The Public Investment Fund said it will provide the initial funding for the development of "Amaala," a 3,800 square kilometer project that will be focused on "wellness, healthy living and meditation." Private companies will be expected to provide the rest of the funding and operate the project’s facilities, the fund said in a statement late on Wednesday, without specifying the scale of investment.
Saudi Arabia’s sovereign wealth fund plans to build an "ultra-luxury" destination for international tourists in addition to two other mega-projects already planned for the kingdom’s Red Sea coast.
The Public Investment Fund said it will provide the initial funding for the development of "Amaala," a 3,800 square kilometer project that will be focused on "wellness, healthy living and meditation." Private companies will be expected to provide the rest of the funding and operate the project’s facilities, the fund said in a statement late on Wednesday, without specifying the scale of investment.
UPDATE 1-Kuwait central bank keeps rates on hold after Fed hike | Reuters
UPDATE 1-Kuwait central bank keeps rates on hold after Fed hike | Reuters:
Kuwait’s central bank decided to keep its key discount rate unchanged at 3.0 percent, it said on Wednesday.
The decision followed the announcement of a 25 basis point interest rate hike by the U.S. Federal Reserve.
In contrast to the other rich Gulf Arab oil exporting states, which peg their currencies to the U.S. dollar and have little room for an independent monetary policy, Kuwait manages its dinar against an undisclosed basket of currencies in which the dollar plays a major role.
Kuwait’s central bank decided to keep its key discount rate unchanged at 3.0 percent, it said on Wednesday.
The decision followed the announcement of a 25 basis point interest rate hike by the U.S. Federal Reserve.
In contrast to the other rich Gulf Arab oil exporting states, which peg their currencies to the U.S. dollar and have little room for an independent monetary policy, Kuwait manages its dinar against an undisclosed basket of currencies in which the dollar plays a major role.
EU's Mogherini eyes Iran SPV for trade 'before November' | Reuters
EU's Mogherini eyes Iran SPV for trade 'before November' | Reuters:
The European Union’s foreign policy chief, Federica Mogherini, said on Wednesday a so-called Special Purpose Vehicle (SPV) under consideration to facilitate trade with Iran could be in place “before November.”
The SPV aims to keep trade flowing even if possible U.S. sanctions hit Tehran. Asked at an event in New York when it could be established, Mogherini said: “I believe before November.”
Asked if the United States’ pulling out of the Iran deal could be a serious challenge to the U.S. dollar as reserve currency in the context of the creation of the SPV, Mogherini said “it is still an initial stage, but this could be a result of that. For sure, it has made us and other parts of the world wonder what kind of (financial) autonomy we have.”
The European Union’s foreign policy chief, Federica Mogherini, said on Wednesday a so-called Special Purpose Vehicle (SPV) under consideration to facilitate trade with Iran could be in place “before November.”
The SPV aims to keep trade flowing even if possible U.S. sanctions hit Tehran. Asked at an event in New York when it could be established, Mogherini said: “I believe before November.”
Asked if the United States’ pulling out of the Iran deal could be a serious challenge to the U.S. dollar as reserve currency in the context of the creation of the SPV, Mogherini said “it is still an initial stage, but this could be a result of that. For sure, it has made us and other parts of the world wonder what kind of (financial) autonomy we have.”
UAE central bank raises interest rates by 25 bps | Reuters
UAE central bank raises interest rates by 25 bps | Reuters:
The United Arab Emirates central bank said on Wednesday it was raising its repo rate by 25 basis points, and also raising interest rates on the issuance of its certificates of deposit in line with the increase in U.S. dollar rates.
The central bank was acting after the U.S. Federal Reserve hiked rates by 25 bps.
The United Arab Emirates central bank said on Wednesday it was raising its repo rate by 25 basis points, and also raising interest rates on the issuance of its certificates of deposit in line with the increase in U.S. dollar rates.
The central bank was acting after the U.S. Federal Reserve hiked rates by 25 bps.
Saudi central bank raises rates 25 bps, following Fed | Reuters
Saudi central bank raises rates 25 bps, following Fed | Reuters:
Saudi Arabia’s central bank said on Wednesday it was raising its reverse repo rate by 25 basis points to 2.25 percent, and its repo rate by the same margin to to 2.75 percent.
It was acting after the U.S. Federal Reserve hiked rates by 25 bps.
Saudi Arabia’s central bank said on Wednesday it was raising its reverse repo rate by 25 basis points to 2.25 percent, and its repo rate by the same margin to to 2.75 percent.
It was acting after the U.S. Federal Reserve hiked rates by 25 bps.
Qatar to boost gas output in sign of strength amid Gulf rift | Reuters
Qatar to boost gas output in sign of strength amid Gulf rift | Reuters:
Qatar announced plans on Wednesday to boost its liquefied natural gas (LNG) production capacity, which will put the tiny state on a par with top energy exporters in an apparent show of strength amid a protracted political row with Gulf neighbors.
Qatar is one of the Organization of the Petroleum Exporting countries’ smallest producers but is also one of the most influential players in the global LNG market due to its massive output capacity and gas reserves.
Qatar Petroleum (QP), the world’s top supplier of LNG, said it was adding a fourth LNG production line to raise its output capacity from the North Field, to 110 million tonnes a year.
Qatar announced plans on Wednesday to boost its liquefied natural gas (LNG) production capacity, which will put the tiny state on a par with top energy exporters in an apparent show of strength amid a protracted political row with Gulf neighbors.
Qatar is one of the Organization of the Petroleum Exporting countries’ smallest producers but is also one of the most influential players in the global LNG market due to its massive output capacity and gas reserves.
Qatar Petroleum (QP), the world’s top supplier of LNG, said it was adding a fourth LNG production line to raise its output capacity from the North Field, to 110 million tonnes a year.
MIDEAST STOCKS-Saudi stocks slip on profit-taking, other markets up | Reuters
MIDEAST STOCKS-Saudi stocks slip on profit-taking, other markets up | Reuters:
Saudi Arabian stocks dipped on Wednesday as investors booked profits, while shares in most other parts of the Middle East gained ground led by Egypt, where Commercial International Bank continued its recent surge.
Profit-taking in Saudi followed the index on Tuesday closing above its 200-day average, which analysts say is a positive technical signal for the market.
Market heavyweight Saudi Basic Industries Corp (SABIC) slipped 1.4 percent, while Saudi Arabian Mining Co (Ma’aden) and Savola Group 2050.SE> both fell 2.1 percent. The Saudi index dropped 0.2 percent.
Saudi Arabian stocks dipped on Wednesday as investors booked profits, while shares in most other parts of the Middle East gained ground led by Egypt, where Commercial International Bank continued its recent surge.
Profit-taking in Saudi followed the index on Tuesday closing above its 200-day average, which analysts say is a positive technical signal for the market.
Market heavyweight Saudi Basic Industries Corp (SABIC) slipped 1.4 percent, while Saudi Arabian Mining Co (Ma’aden) and Savola Group 2050.SE> both fell 2.1 percent. The Saudi index dropped 0.2 percent.
Arab women left in inheritance trap by delayed reforms | Financial Times
Arab women left in inheritance trap by delayed reforms | Financial Times:
When Beji Caid Sebsi, Tunisia’s president, backed legislation to ensure equality of inheritance between men and women, he was challenging a tenet of Islamic law. The Koran spells out in detail how legacies are to be divided, dictating that brothers receive twice the share of sisters. Mr Sebsi’s law would have been the first of its kind in the Arab world to defy that dictate.
Modernisers cheered, but Muslim clerics decried an attack on Islam. Tunisia’s main conservative party, Nahda, deemed it a step too far. “There is strong opposition within the party and in Tunisian society at large,” said Said Ferjani, a senior Nahda leader. “No political party can make this gamble, particularly with elections next year.”
The passage of the law in Tunisia is now in doubt. But the debate it ignited across the Arab world continues to rage. It has underlined the difficulty of upending a centuries-old status quo that shapes the contours of power and wealth across the Arab world.
When Beji Caid Sebsi, Tunisia’s president, backed legislation to ensure equality of inheritance between men and women, he was challenging a tenet of Islamic law. The Koran spells out in detail how legacies are to be divided, dictating that brothers receive twice the share of sisters. Mr Sebsi’s law would have been the first of its kind in the Arab world to defy that dictate.
Modernisers cheered, but Muslim clerics decried an attack on Islam. Tunisia’s main conservative party, Nahda, deemed it a step too far. “There is strong opposition within the party and in Tunisian society at large,” said Said Ferjani, a senior Nahda leader. “No political party can make this gamble, particularly with elections next year.”
The passage of the law in Tunisia is now in doubt. But the debate it ignited across the Arab world continues to rage. It has underlined the difficulty of upending a centuries-old status quo that shapes the contours of power and wealth across the Arab world.
Oil Trades Near Three-Year High as U.S. Raises Iran Pressure - Bloomberg
Oil Trades Near Three-Year High as U.S. Raises Iran Pressure - Bloomberg:
Oil traded near $82 a barrel as pressure on Iran escalated, with President Trump hardening rhetoric against the country and crude customer India cutting its imports to zero.
Brent futures were little changed in London after settling in the previous session at the highest since November 2014. With U.S. sanctions on Iran taking effect in less than two months, Trump told the United Nations General Assembly on Tuesday that the leaders of the Islamic Republic “sow chaos, death and destruction.” Buyers are increasingly wary of Iranian crude, and India is not planning to import any in November, according to company officials.
Oil prices rose on Monday after OPEC signaled it won’t rush to release more oil into the market, shrugging off pressure from Trump who has been calling on the group to do more to temper gains. The prospect of tightening supplies due to a steep drop in Iran’s exports, Venezuela’s slumping output, and production bottlenecks in the U.S. prompted trading giants Mercuria Energy Group Ltd. and Trafigura Group to warn that oil could surge back above $100 a barrel.
Oil traded near $82 a barrel as pressure on Iran escalated, with President Trump hardening rhetoric against the country and crude customer India cutting its imports to zero.
Brent futures were little changed in London after settling in the previous session at the highest since November 2014. With U.S. sanctions on Iran taking effect in less than two months, Trump told the United Nations General Assembly on Tuesday that the leaders of the Islamic Republic “sow chaos, death and destruction.” Buyers are increasingly wary of Iranian crude, and India is not planning to import any in November, according to company officials.
Oil prices rose on Monday after OPEC signaled it won’t rush to release more oil into the market, shrugging off pressure from Trump who has been calling on the group to do more to temper gains. The prospect of tightening supplies due to a steep drop in Iran’s exports, Venezuela’s slumping output, and production bottlenecks in the U.S. prompted trading giants Mercuria Energy Group Ltd. and Trafigura Group to warn that oil could surge back above $100 a barrel.
Mideast Stocks: Stocks in Saudi up on banks, corporate announcements | ZAWYA MENA Edition
Mideast Stocks: Stocks in Saudi up on banks, corporate announcements | ZAWYA MENA Edition:
Saudi Arabia's stock market edged up on Wednesday boosted by banks and corporate announcements, while a contract win for a unit of construction giant Arabtec lifted Dubai's bourse.
In Saudi Arabia, National Commercial Bank and Samba Financial Group were the main drivers, climbing 1.1 percent and 0.7 percent, respectively. Al Rajhi Bank was up 0.4 percent.
Saudi Steel Pipe Co was up 0.5 percent after it said minority shareholders had agreed to sell a 47.8 percent stake in the company to Luxembourg-based steel pipe maker Tenaris for $144 million.
Saudi Arabia's stock market edged up on Wednesday boosted by banks and corporate announcements, while a contract win for a unit of construction giant Arabtec lifted Dubai's bourse.
In Saudi Arabia, National Commercial Bank and Samba Financial Group were the main drivers, climbing 1.1 percent and 0.7 percent, respectively. Al Rajhi Bank was up 0.4 percent.
Saudi Steel Pipe Co was up 0.5 percent after it said minority shareholders had agreed to sell a 47.8 percent stake in the company to Luxembourg-based steel pipe maker Tenaris for $144 million.
Saudi bonds lead Gulf rally after JP Morgan index inclusion | Reuters
Saudi bonds lead Gulf rally after JP Morgan index inclusion | Reuters:
Dollar bonds from Saudi Arabia and Qatar led a rally in Gulf debt markets on Wednesday, after they gained entry into JP Morgan’s widely- followed emerging market indexes.
Saudi Arabia’s 2046 bond rose 1.5 cents while a 2042 Qatar bond climbed 0.8 cents, data from Tradeweb showed.
Sovereign and quasi-sovereign debt issuers from Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will all become eligible for the EMBI Global Diversified (EMBIGD), EMBI Global (EMBIG) and EURO-EMBIG indexes.
Dollar bonds from Saudi Arabia and Qatar led a rally in Gulf debt markets on Wednesday, after they gained entry into JP Morgan’s widely- followed emerging market indexes.
Saudi Arabia’s 2046 bond rose 1.5 cents while a 2042 Qatar bond climbed 0.8 cents, data from Tradeweb showed.
Sovereign and quasi-sovereign debt issuers from Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will all become eligible for the EMBI Global Diversified (EMBIGD), EMBI Global (EMBIG) and EURO-EMBIG indexes.
Column: Looming loss of Iranian crude is latest in a long line of disruptions - Russell | Reuters
Column: Looming loss of Iranian crude is latest in a long line of disruptions - Russell | Reuters:
If there was any hope of an early resolution to the reanimated dispute between the United States and Iran, it was extinguished by the testy exchanges between the countries’ leaders at the United Nations.
U.S. President Donald Trump promised more sanctions against what he called the “corrupt dictatorship” in Tehran, while his Iranian counterpart Hassan Rouhani responded by saying his rival suffers from a “weakness of intellect.”
For oil markets, this seems to lock in the loss of Iranian crude supplies when the U.S. sanctions ramp up in November, although there is still some doubt as to exactly how much the Islamic Republic’s usual exports of some 2.1 million barrels per day (bpd) will be sidelined.
If there was any hope of an early resolution to the reanimated dispute between the United States and Iran, it was extinguished by the testy exchanges between the countries’ leaders at the United Nations.
U.S. President Donald Trump promised more sanctions against what he called the “corrupt dictatorship” in Tehran, while his Iranian counterpart Hassan Rouhani responded by saying his rival suffers from a “weakness of intellect.”
For oil markets, this seems to lock in the loss of Iranian crude supplies when the U.S. sanctions ramp up in November, although there is still some doubt as to exactly how much the Islamic Republic’s usual exports of some 2.1 million barrels per day (bpd) will be sidelined.
Brent oil trades near four-year high, but U.S. crude retreats | Reuters
Brent oil trades near four-year high, but U.S. crude retreats | Reuters:
Brent crude was trading around its highest in nearly four years on Wednesday, while U.S. crude futures fell as Washington tried to assure consumers that the market would be well supplied before sanctions are re-imposed on producer Iran.
Brent crude futures were up 10 cents, or 0.1 percent, at $81.87 a barrel by 0645 GMT, after gaining nearly 1 percent the previous session. Brent rose on Tuesday to its highest since November 2014 at $82.55 per barrel.
U.S. crude futures were down 4 cents at $72.24 a barrel. They climbed 0.3 percent on Tuesday to close at their highest level since July 11.
Brent crude was trading around its highest in nearly four years on Wednesday, while U.S. crude futures fell as Washington tried to assure consumers that the market would be well supplied before sanctions are re-imposed on producer Iran.
Brent crude futures were up 10 cents, or 0.1 percent, at $81.87 a barrel by 0645 GMT, after gaining nearly 1 percent the previous session. Brent rose on Tuesday to its highest since November 2014 at $82.55 per barrel.
U.S. crude futures were down 4 cents at $72.24 a barrel. They climbed 0.3 percent on Tuesday to close at their highest level since July 11.
Saudi Arabia, Qatar, UAE, Bahrain and Kuwait eligible for JP Morgan key bond index | Reuters
Saudi Arabia, Qatar, UAE, Bahrain and Kuwait eligible for JP Morgan key bond index | Reuters:
Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will become eligible for the JP Morgan emerging market government bond indexes starting from Jan. 31, 2019, acording to a JP Morgan statement sent to investors and reviewed by Reuters.
JP Morgan’s EMBI bond index is a key performance benchmark for emerging market investors.
The eligible new bonds will be included in a phased approach ending on Sept. 30, 2019, the statement said.
Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will become eligible for the JP Morgan emerging market government bond indexes starting from Jan. 31, 2019, acording to a JP Morgan statement sent to investors and reviewed by Reuters.
JP Morgan’s EMBI bond index is a key performance benchmark for emerging market investors.
The eligible new bonds will be included in a phased approach ending on Sept. 30, 2019, the statement said.
Tuesday 25 September 2018
GCC Sukuk issuance drops 15% in 2018 on rising cost of borrowings, S&P says - The National
GCC Sukuk issuance drops 15% in 2018 on rising cost of borrowings, S&P says - The National:
The issuance of Sharia-compliant bonds in the Arabian Gulf region have slowed by around 15 per cent in the first three quarters of this year and are likely to remain lower than $95.9 billion in 2017 on the back of tightening international liquidity and rising borrowing costs as the US Federal Reserve hikes interest rates.
Sovereigns, financial institutions and the corporate issuers in the region are expected to sell about $70bn to $80bn worth of Shariah-compliant debt in 2018, said Mohammed Damak, senior director and global head of Islamic finance at S&P Global Ratings. The number may climb to as high as $100bn if other sukuk deals are included as part of total sales in 2018, he added.
“Global liquidity is becoming more scarce and more expensive," said Mr Damak who was speaking in Dubai on Tuesday. "The Fed is increasing the rates and the ECB [European Central Bank] will start to reduce its asset purchase programme base…. because of that we think the cost of funding for the issuers is increasing,” he said. “All the liquidity that used to be channelled to emerging markets, including the GCC is, somewhat, reduced because of that.”
The issuance of Sharia-compliant bonds in the Arabian Gulf region have slowed by around 15 per cent in the first three quarters of this year and are likely to remain lower than $95.9 billion in 2017 on the back of tightening international liquidity and rising borrowing costs as the US Federal Reserve hikes interest rates.
Sovereigns, financial institutions and the corporate issuers in the region are expected to sell about $70bn to $80bn worth of Shariah-compliant debt in 2018, said Mohammed Damak, senior director and global head of Islamic finance at S&P Global Ratings. The number may climb to as high as $100bn if other sukuk deals are included as part of total sales in 2018, he added.
“Global liquidity is becoming more scarce and more expensive," said Mr Damak who was speaking in Dubai on Tuesday. "The Fed is increasing the rates and the ECB [European Central Bank] will start to reduce its asset purchase programme base…. because of that we think the cost of funding for the issuers is increasing,” he said. “All the liquidity that used to be channelled to emerging markets, including the GCC is, somewhat, reduced because of that.”
SABIC prepares to meet investors to offer bond
SABIC prepares to meet investors to offer bond:
Saudi Basic Industries Corp. (SABIC) is preparing to offer its dollar-denominated unsecured bond to the global market with investor meetings due to start this week.
The Kingdom’s petrochemical giant will be meeting investors in London, New York, Los Angeles and Boston from Sept. 25, according to a filing on the Saudi stock exchange on Tuesday.
The Saudi company is likely to be keen to tap into the heightened international interest in the Kingdom’s financial markets following the lifting of some restrictions on foreign investors’ activities at the start of the year.
Saudi Basic Industries Corp. (SABIC) is preparing to offer its dollar-denominated unsecured bond to the global market with investor meetings due to start this week.
The Kingdom’s petrochemical giant will be meeting investors in London, New York, Los Angeles and Boston from Sept. 25, according to a filing on the Saudi stock exchange on Tuesday.
The Saudi company is likely to be keen to tap into the heightened international interest in the Kingdom’s financial markets following the lifting of some restrictions on foreign investors’ activities at the start of the year.
Gulftainer port deal shows tide has turned for UAE business in US | Arab News
Gulftainer port deal shows tide has turned for UAE business in US | Arab News:
Time was ultimately on the side of UAE-based port operators in their efforts to break into the US business. A $600 million deal between Gulftainer, the Sharjah-based ports group that ranks among the largest independent terminal operators in the world, and the authorities in Delaware, on the US Atlantic seaboard, sets the seal on a successful campaign of persistence and industrial logic over political prejudice and opportunism.
In 2006, the attempt by DP World to buy the US ports then owned by British shipping group P&O fell foul of a well-orchestrated political campaign featuring none other than Hillary Clinton, then senator for New York where some of the port facilities were located. In the febrile atmosphere of the time, when memories of 9/11 were still intense and the war in Iraq was at its height, Clinton argued that ownership of US ports by a UAE government entity would be a threat to national security.
Her efforts were successful in so far as the US ports were eventually excluded from the global transaction and sold separately to private equity groups. Once bitten, DP World has never since looked seriously at adding US ports to its global portfolio.
Time was ultimately on the side of UAE-based port operators in their efforts to break into the US business. A $600 million deal between Gulftainer, the Sharjah-based ports group that ranks among the largest independent terminal operators in the world, and the authorities in Delaware, on the US Atlantic seaboard, sets the seal on a successful campaign of persistence and industrial logic over political prejudice and opportunism.
In 2006, the attempt by DP World to buy the US ports then owned by British shipping group P&O fell foul of a well-orchestrated political campaign featuring none other than Hillary Clinton, then senator for New York where some of the port facilities were located. In the febrile atmosphere of the time, when memories of 9/11 were still intense and the war in Iraq was at its height, Clinton argued that ownership of US ports by a UAE government entity would be a threat to national security.
Her efforts were successful in so far as the US ports were eventually excluded from the global transaction and sold separately to private equity groups. Once bitten, DP World has never since looked seriously at adding US ports to its global portfolio.
Macron tells Trump oil prices would fall if Iran could sell its oil
Macron tells Trump oil prices would fall if Iran could sell its oil:
French President Emmanuel Macron on Tuesday responded to U.S. President Donald Trump’s criticism of high oil prices, saying that if he had not reimposed sanctions on Tehran, prices would not have risen as much.
“If he goes to the end of his logic, he’ll see that it’s good for the oil price that Iran can sell it,” Macron said. “It’s good for peace and global oil prices. Otherwise there is an impasse in the rationale for which I don’t have the answer. It’s an economic reality ... supply and demand.”
French President Emmanuel Macron on Tuesday responded to U.S. President Donald Trump’s criticism of high oil prices, saying that if he had not reimposed sanctions on Tehran, prices would not have risen as much.
“If he goes to the end of his logic, he’ll see that it’s good for the oil price that Iran can sell it,” Macron said. “It’s good for peace and global oil prices. Otherwise there is an impasse in the rationale for which I don’t have the answer. It’s an economic reality ... supply and demand.”
MIDEAST STOCKS-Saudi surges on oil prices, Kuwait gains on FTSE Russell inclusion | Reuters
MIDEAST STOCKS-Saudi surges on oil prices, Kuwait gains on FTSE Russell inclusion | Reuters:
Saudi stocks rose 1.8 percent on Tuesday on the back of a surge in oil prices, while Kuwaiti shares gained on hopes of more foreign fund flows after inclusion in the FTSE Russell emerging market index.
Oil prices jumped to a fresh four-year high, helping push Petrochemicals giant Saudi Basic Industries up 2.8 percent, refiner Petro Rabigh 1.6 percent and Al Rajhi Bank 2.6 percent.
The Saudi index closed at 7,905 points on Tuesday above its 200-day average, which analysts see as a positive technical signal for the index.
Saudi stocks rose 1.8 percent on Tuesday on the back of a surge in oil prices, while Kuwaiti shares gained on hopes of more foreign fund flows after inclusion in the FTSE Russell emerging market index.
Oil prices jumped to a fresh four-year high, helping push Petrochemicals giant Saudi Basic Industries up 2.8 percent, refiner Petro Rabigh 1.6 percent and Al Rajhi Bank 2.6 percent.
The Saudi index closed at 7,905 points on Tuesday above its 200-day average, which analysts see as a positive technical signal for the index.
EU, Russia and China agree special payments system for Iran | Financial Times
EU, Russia and China agree special payments system for Iran | Financial Times:
The EU’s three biggest member states have agreed a deal with Russia and China to set up a special payments system to facilitate trade with Iran as global powers step up measures to protect a nuclear deal with Tehran after the US reimposed sanctions.
In a joint statement on Tuesday, the foreign ministers of China, Russia, Germany, the UK and France agreed to “assist and reassure economic operators pursuing legitimate business with Iran” including its oil exports.
The five countries remain signatories to a 2015 Iran nuclear deal which Donald Trump withdrew from earlier this year after calling it the “worst deal ever”.
The EU’s three biggest member states have agreed a deal with Russia and China to set up a special payments system to facilitate trade with Iran as global powers step up measures to protect a nuclear deal with Tehran after the US reimposed sanctions.
In a joint statement on Tuesday, the foreign ministers of China, Russia, Germany, the UK and France agreed to “assist and reassure economic operators pursuing legitimate business with Iran” including its oil exports.
The five countries remain signatories to a 2015 Iran nuclear deal which Donald Trump withdrew from earlier this year after calling it the “worst deal ever”.
TPG in talks to take over Abraaj’s healthcare fund | Financial Times
TPG in talks to take over Abraaj’s healthcare fund | Financial Times:
US private equity firm TPG has entered exclusive negotiations to take over management of Abraaj’s $1bn healthcare fund, another step in the dismantling of the Dubai-based group’s emerging markets empire.
TPG’s Rise Fund, described as the world’s biggest impact investing fund with $2.1bn assets under management, is in talks to replace Abraaj as general partner and manager, according to a letter sent to employees by AlixPartners, the healthcare fund’s interim manager.
Abraaj, once one of the world’s largest emerging markets specialists with more than $13bn under management, has been in a tailspin since it emerged that investors were concerned that money held in the healthcare fund had been misused.
US private equity firm TPG has entered exclusive negotiations to take over management of Abraaj’s $1bn healthcare fund, another step in the dismantling of the Dubai-based group’s emerging markets empire.
TPG’s Rise Fund, described as the world’s biggest impact investing fund with $2.1bn assets under management, is in talks to replace Abraaj as general partner and manager, according to a letter sent to employees by AlixPartners, the healthcare fund’s interim manager.
Abraaj, once one of the world’s largest emerging markets specialists with more than $13bn under management, has been in a tailspin since it emerged that investors were concerned that money held in the healthcare fund had been misused.
Saudi Aramco CEO defends Sabic deal | Financial Times
Saudi Aramco CEO defends Sabic deal | Financial Times:
Saudi Aramco’s planned acquisition of a majority stake in Sabic, the Saudi state-controlled chemicals and materials group, is central to its plans to diversify its revenues and prepare for tighter constraints on greenhouse gas emissions, its chief executive says.
Amin Nasser, who has been chief executive of the Saudi national energy company since 2015, told the Financial Times that talks were at an “early stage”, but that the Sabic deal would help accelerate Saudi Aramco’s plans to develop its chemicals operations.
“Sabic has a strong market position, [and is] vertically integrated: there’s a lot of synergy with Saudi Aramco,” Mr Nasser said. Though some senior executives at the group have questioned how it adds value, he said: “It’s a very strategically [good] fit with what we are aspiring to be, which is [to be] deeper in the downstream sector.”
Saudi Aramco’s planned acquisition of a majority stake in Sabic, the Saudi state-controlled chemicals and materials group, is central to its plans to diversify its revenues and prepare for tighter constraints on greenhouse gas emissions, its chief executive says.
Amin Nasser, who has been chief executive of the Saudi national energy company since 2015, told the Financial Times that talks were at an “early stage”, but that the Sabic deal would help accelerate Saudi Aramco’s plans to develop its chemicals operations.
“Sabic has a strong market position, [and is] vertically integrated: there’s a lot of synergy with Saudi Aramco,” Mr Nasser said. Though some senior executives at the group have questioned how it adds value, he said: “It’s a very strategically [good] fit with what we are aspiring to be, which is [to be] deeper in the downstream sector.”
Oil hits four-year peak after OPEC+ shows no sign of turning on the taps | Reuters
Oil hits four-year peak after OPEC+ shows no sign of turning on the taps | Reuters:
Crude oil prices shot to a four-year high on Tuesday, catapulted by imminent U.S. sanctions on Iranian crude exports and the apparent reluctance of OPEC and Russia to raise output to offset the potential hit to global supply.
Brent crude futures LCOc1 were up 61 cents at $81.81 a barrel by 1121 GMT, having touched a session peak of $82.20, the highest price since November 2014.
The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
Crude oil prices shot to a four-year high on Tuesday, catapulted by imminent U.S. sanctions on Iranian crude exports and the apparent reluctance of OPEC and Russia to raise output to offset the potential hit to global supply.
Brent crude futures LCOc1 were up 61 cents at $81.81 a barrel by 1121 GMT, having touched a session peak of $82.20, the highest price since November 2014.
The oil price is on course for its fifth consecutive quarterly increase, the longest stretch of gains since early 2007, when a six-quarter run led to a record high of $147.50 a barrel.
Qatar's Al Khalij Commercial Bank hires banks before dollar bond issue | Reuters
Qatar's Al Khalij Commercial Bank hires banks before dollar bond issue | Reuters:
Qatar’s Al Khalij Commercial Bank mandated Barclays, QNB Capital, Standard Chartered and Qatar’s Commercial Bank to arrange fixed income investor meetings in Asia and Europe, a document issued by one of the banks leading the deal said.
The document seen by Reuters said the Qatari lender, rated A3 by Moody’s and A by Fitch, would start meeting investors on Sept. 27, before a potential U.S. dollar-denominated benchmark bond issue. Benchmark deals are generally meant to be upwards of $500 million.
Qatar’s Al Khalij Commercial Bank mandated Barclays, QNB Capital, Standard Chartered and Qatar’s Commercial Bank to arrange fixed income investor meetings in Asia and Europe, a document issued by one of the banks leading the deal said.
The document seen by Reuters said the Qatari lender, rated A3 by Moody’s and A by Fitch, would start meeting investors on Sept. 27, before a potential U.S. dollar-denominated benchmark bond issue. Benchmark deals are generally meant to be upwards of $500 million.
UPDATE 1-UAE's Majid Al Futtaim raises $1 billion revolving credit facility | Reuters
UPDATE 1-UAE's Majid Al Futtaim raises $1 billion revolving credit facility | Reuters:
Dubai’s Majid Al Futtaim, a company that owns and operates shopping centres in the Middle East and North Africa, has raised a $1 billion loan from a group of regional and international banks, the firm said in a statement.
The loan, a revolving credit facility, has a six-year maturity and refinances an $800 million loan raised in 2014 for general corporate purposes.
A number of companies in the Gulf are refinancing their debt obligations ahead of maturity, or adding new leverage to their balance sheets, to avoid having to pay higher debt costs at a later stage due to expected increases in global interest rates.
Dubai’s Majid Al Futtaim, a company that owns and operates shopping centres in the Middle East and North Africa, has raised a $1 billion loan from a group of regional and international banks, the firm said in a statement.
The loan, a revolving credit facility, has a six-year maturity and refinances an $800 million loan raised in 2014 for general corporate purposes.
A number of companies in the Gulf are refinancing their debt obligations ahead of maturity, or adding new leverage to their balance sheets, to avoid having to pay higher debt costs at a later stage due to expected increases in global interest rates.
Delays and lack of transparency among banking challenges for Dubai entrepreneurs | ZAWYA MENA Edition
Delays and lack of transparency among banking challenges for Dubai entrepreneurs | ZAWYA MENA Edition:
The process of setting up a corporate bank account for small and medium-sized enterprises in the United Arab Emirates can be ‘painful’, taking up to three months, according to a new white paper published on Sunday.
The white paper said the primary pain points during the banking setup process were inadequate transparency, inconsistency around what documents are required and ‘insufficient guidance by bankers throughout the account opening process’.
While the need to comply with stringent banking regulations - to combat terrorist financing, money laundering and tax evasion - was suggested as a reason for the slow process, recommendations were made, including greater transparency around paperwork and processes, offering a ‘one-stop solution for a trade licence and bank account’, and a ‘basic no-frills’ bank account providing an IBAN number with a limited service, including caps on transaction amounts and offering domestic transactions only.
The process of setting up a corporate bank account for small and medium-sized enterprises in the United Arab Emirates can be ‘painful’, taking up to three months, according to a new white paper published on Sunday.
The white paper said the primary pain points during the banking setup process were inadequate transparency, inconsistency around what documents are required and ‘insufficient guidance by bankers throughout the account opening process’.
While the need to comply with stringent banking regulations - to combat terrorist financing, money laundering and tax evasion - was suggested as a reason for the slow process, recommendations were made, including greater transparency around paperwork and processes, offering a ‘one-stop solution for a trade licence and bank account’, and a ‘basic no-frills’ bank account providing an IBAN number with a limited service, including caps on transaction amounts and offering domestic transactions only.
MIDEAST STOCKS-Kuwait up 0.8 pct on expectations of foreign inflows | Reuters
MIDEAST STOCKS-Kuwait up 0.8 pct on expectations of foreign inflows | Reuters:
Kuwaiti stocks rose nearly 0.8 percent in early trade on Tuesday, helped by expectations that its inclusion in the FTSE Russell emerging market index will trigger more foreign fund flows.
The first phase of its entry to the index began on Monday and the second stage will be on Dec. 24.
“There’s more activity due to Kuwait’s inclusion in the emerging market index,” said Marie Salem, director of capital markets at FFA Dubai.
Kuwaiti stocks rose nearly 0.8 percent in early trade on Tuesday, helped by expectations that its inclusion in the FTSE Russell emerging market index will trigger more foreign fund flows.
The first phase of its entry to the index began on Monday and the second stage will be on Dec. 24.
“There’s more activity due to Kuwait’s inclusion in the emerging market index,” said Marie Salem, director of capital markets at FFA Dubai.
Monday 24 September 2018
BP Says $100 Oil to Prove Fleeting as U.S.-China Trade War Bites - Bloomberg
BP Says $100 Oil to Prove Fleeting as U.S.-China Trade War Bites - Bloomberg:
Oil bulls cheered by the prospect of $100 oil beware. A rally in prices may be short-lived.
That’s according to Janet Kong, who heads energy giant BP Plc’s trading business in Asia. Any spike on the loss of Iranian supply due to U.S. sanctions probably won’t be sustainable in the long run, she said. That’s because the negative impact on demand from a trade war between the world’s two biggest economies hasn’t been priced into crude yet.
Kong’s comments stand in contrast to views from officials at major oil-trading firms Trafigura Group and Mercuria Energy Group Ltd., who see a looming supply crunch driving global benchmark Brent crude to $100 a barrel for the first time in four years. In recent weeks, prices have largely shrugged off escalating U.S.-China trade tensions, with speculation over the impact of American sanctions on Iran dominating investor sentiment.
Oil bulls cheered by the prospect of $100 oil beware. A rally in prices may be short-lived.
That’s according to Janet Kong, who heads energy giant BP Plc’s trading business in Asia. Any spike on the loss of Iranian supply due to U.S. sanctions probably won’t be sustainable in the long run, she said. That’s because the negative impact on demand from a trade war between the world’s two biggest economies hasn’t been priced into crude yet.
Kong’s comments stand in contrast to views from officials at major oil-trading firms Trafigura Group and Mercuria Energy Group Ltd., who see a looming supply crunch driving global benchmark Brent crude to $100 a barrel for the first time in four years. In recent weeks, prices have largely shrugged off escalating U.S.-China trade tensions, with speculation over the impact of American sanctions on Iran dominating investor sentiment.
OPEC World Oil Outlook Sees An Unlikely Future - Bloomberg
OPEC World Oil Outlook Sees An Unlikely Future - Bloomberg:
By delivering a half-shrug to President Donald Trump over the weekend, OPEC’s other message was somewhat lost in the shuffle.
Sunday’s meeting of the committee overseeing the oil exporters’ club’s supply agreement with some other producers (Russia, mainly) didn’t produce the output hike Trump’s latest tweet all but demanded. Oil prices duly rallied Monday morning.
This weekend also saw the release of OPEC’s World Oil Outlook, its annual forecast-fest known colloquially as the “WOO.” The 400-odd pages actually frame the weekend’s main event quite nicely.
By delivering a half-shrug to President Donald Trump over the weekend, OPEC’s other message was somewhat lost in the shuffle.
Sunday’s meeting of the committee overseeing the oil exporters’ club’s supply agreement with some other producers (Russia, mainly) didn’t produce the output hike Trump’s latest tweet all but demanded. Oil prices duly rallied Monday morning.
This weekend also saw the release of OPEC’s World Oil Outlook, its annual forecast-fest known colloquially as the “WOO.” The 400-odd pages actually frame the weekend’s main event quite nicely.
UAE's Al Dahra to invest further $500 mln in Romania | Reuters
UAE's Al Dahra to invest further $500 mln in Romania | Reuters:
Abu Dhabi-based Al Dahra Holding said on Monday it will invest a further $500 million in various sectors in the Romanian market after acquiring the largest farm producer there.
Al Dahra, which has been expanding aggressively in eastern Europe in the last five years, said it had bought Romania’s Agricost and Braila Island “recently”, but did not disclose a figure for the transactions.
Countries in the Gulf, one of the world’s biggest food importing regions, have stepped up efforts to buy and lease farmland in emerging economies to secure food supplies since 2007-2008, when food prices rose to record levels.
Abu Dhabi-based Al Dahra Holding said on Monday it will invest a further $500 million in various sectors in the Romanian market after acquiring the largest farm producer there.
Al Dahra, which has been expanding aggressively in eastern Europe in the last five years, said it had bought Romania’s Agricost and Braila Island “recently”, but did not disclose a figure for the transactions.
Countries in the Gulf, one of the world’s biggest food importing regions, have stepped up efforts to buy and lease farmland in emerging economies to secure food supplies since 2007-2008, when food prices rose to record levels.
UAE banks group considers asking for ease in mortgage rules
UAE banks group considers asking for ease in mortgage rules:
The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said.
At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners.
The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said. They added that the CEO Advisory Council, made up of bank chief executives, is considering the proposal and, if approved, will suggest it to the central bank.
The United Arab Emirates’ banking group is considering whether to ask the central bank to relax mortgage lending rules to stimulate a fragile real estate market, sources familiar with the matter said.
At the moment, first-time buyers of a home worth up to 5 million dirhams can only borrow up to 80 percent of the property value if they are UAE citizens, while the cap is 75 percent for foreigners.
The UAE Banks Federation’s retail banking committee has proposed that the limit be raised to 85 percent for UAE nationals and 80 percent for foreigners, the sources said. They added that the CEO Advisory Council, made up of bank chief executives, is considering the proposal and, if approved, will suggest it to the central bank.
Oil prices surge as Saudis, Russia won't open spigots | Reuters
Oil prices surge as Saudis, Russia won't open spigots | Reuters:
Global Benchmark Brent crude jumped more than 3 percent on Monday to a four-year high above $80 a barrel after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
The Organization of the Petroleum Exporting Countries and non-OPEC states, including top producer Russia, gathered in Algiers on Sunday for a meeting that ended with no formal recommendation for any additional supply boost to counter falling supply from Iran.
“The market’s still being driven by concerns about Iranian and Venezuelan supply,” said Gene McGillian, director of market research at Tradition Energy in Stamford. “The failure of the producers to address that adequately this weekend is creating a buying opportunity.”
Global Benchmark Brent crude jumped more than 3 percent on Monday to a four-year high above $80 a barrel after Saudi Arabia and Russia ruled out any immediate increase in production despite calls by U.S. President Donald Trump for action to raise global supply.
The Organization of the Petroleum Exporting Countries and non-OPEC states, including top producer Russia, gathered in Algiers on Sunday for a meeting that ended with no formal recommendation for any additional supply boost to counter falling supply from Iran.
“The market’s still being driven by concerns about Iranian and Venezuelan supply,” said Gene McGillian, director of market research at Tradition Energy in Stamford. “The failure of the producers to address that adequately this weekend is creating a buying opportunity.”
MIDEAST STOCKS-Trade concerns weigh on Dubai DP World; Orascom Investment shines in Egypt | Reuters
MIDEAST STOCKS-Trade concerns weigh on Dubai DP World; Orascom Investment shines in Egypt | Reuters:
Gulf stocks traded in negative territory on Monday, mirroring a dip in global market as concerns increased over a trade row between the United States and China.
In Dubai, where the index shed 0.3 percent, contractor Drake and Scull International (DSI) continued to weigh on the index.
Shares in the company dropped 2.6 percent, continuing their downward trend after DSI said this month its shareholders would meet on Sept. 27 to decide whether to dissolve it.
Gulf stocks traded in negative territory on Monday, mirroring a dip in global market as concerns increased over a trade row between the United States and China.
In Dubai, where the index shed 0.3 percent, contractor Drake and Scull International (DSI) continued to weigh on the index.
Shares in the company dropped 2.6 percent, continuing their downward trend after DSI said this month its shareholders would meet on Sept. 27 to decide whether to dissolve it.
Oil Traders Say $100 Coming as OPEC Struggles to Fill Iran Gap - Bloomberg
Oil Traders Say $100 Coming as OPEC Struggles to Fill Iran Gap - Bloomberg:
Major oil trading houses are predicting the return of $100 crude for the first time since 2014 as OPEC and its allies struggle to compensate for U.S. sanctions on Iran’s exports.
With Brent crude already jumping to an almost four-year high on Monday, that’s exactly the kind of price surge President Donald Trump has been seeking to prevent by pressuring the Organization of Petroleum Exporting Countries to raise production. Yet the cartel and its allies gave mixed signals at a meeting in Algiers on Sunday, ultimately showing little sign they would heed U.S. demands to rapidly push down crude prices.
OPEC’s reticence, combined with signs of accelerating supply losses from Iran, created a bullish mood the the annual gathering of the Asian oil industry, traders, refiners and bankers in Singapore on Monday.
Major oil trading houses are predicting the return of $100 crude for the first time since 2014 as OPEC and its allies struggle to compensate for U.S. sanctions on Iran’s exports.
With Brent crude already jumping to an almost four-year high on Monday, that’s exactly the kind of price surge President Donald Trump has been seeking to prevent by pressuring the Organization of Petroleum Exporting Countries to raise production. Yet the cartel and its allies gave mixed signals at a meeting in Algiers on Sunday, ultimately showing little sign they would heed U.S. demands to rapidly push down crude prices.
OPEC’s reticence, combined with signs of accelerating supply losses from Iran, created a bullish mood the the annual gathering of the Asian oil industry, traders, refiners and bankers in Singapore on Monday.
Actis picked to take over Abraaj's Africa funds -sources | Reuters
Actis picked to take over Abraaj's Africa funds -sources | Reuters:
Actis has been picked as the preferred bidder for the management rights of Abraaj’s Africa funds, sources familiar with the matter said, as liquidators begin breaking up the operations of what was once the Middle East’s largest private equity firm.
Among Abraaj’s other operations, Canada’s Brookfield Asset Management is in the frame to take over its Turkey fund, while United States-based Colony Capital its Latin America fund, two of the sources told Reuters.
Abraaj was a $13.6 billion emerging market specialist with more than 200 investments, but late last year four investors questioned its use of their money in a healthcare fund triggering a crisis at Abraaj and its provisional liquidation.
Actis has been picked as the preferred bidder for the management rights of Abraaj’s Africa funds, sources familiar with the matter said, as liquidators begin breaking up the operations of what was once the Middle East’s largest private equity firm.
Among Abraaj’s other operations, Canada’s Brookfield Asset Management is in the frame to take over its Turkey fund, while United States-based Colony Capital its Latin America fund, two of the sources told Reuters.
Abraaj was a $13.6 billion emerging market specialist with more than 200 investments, but late last year four investors questioned its use of their money in a healthcare fund triggering a crisis at Abraaj and its provisional liquidation.
Private equity investors weigh exit from UAE school operator GEMS-sources | Reuters
Private equity investors weigh exit from UAE school operator GEMS-sources | Reuters:
A group of private equity investors, including Fajr Capital, Blackstone and Bahrain’s Mumtalakat, is weighing the sale of their combined stake in the emerging market business of UAE-based GEMS Education, three sources said.
The consortium has held preliminary talks with investors about an outright sale of the more than 20 percent stake after GEMS shelved its plan to list the schools operator in London, which deprived them of an exit in their more than four-year old investment, the sources familiar with the talks said.
The stake is valued at about $1 billion, two of the sources said.
A group of private equity investors, including Fajr Capital, Blackstone and Bahrain’s Mumtalakat, is weighing the sale of their combined stake in the emerging market business of UAE-based GEMS Education, three sources said.
The consortium has held preliminary talks with investors about an outright sale of the more than 20 percent stake after GEMS shelved its plan to list the schools operator in London, which deprived them of an exit in their more than four-year old investment, the sources familiar with the talks said.
The stake is valued at about $1 billion, two of the sources said.
Dubai developer Nakheel plans sukuk sale, mall financing - sources | Reuters
Dubai developer Nakheel plans sukuk sale, mall financing - sources | Reuters:
Nakheel, the developer of the palm shaped islands off Dubai, is working with a group of banks to raise a loan for a new mall and, separately, it is planning to issue U.S. dollar-denominated sukuk, sources familiar with the matter said.
The state-owned firm was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade, forcing it into a massive debt restructuring.
The company is now planning to return to the debt market with a new public issue of U.S. dollar-denominated sukuk, or Islamic bonds, which it could sell over the next few months, said the sources. Asked to comment on its sukuk plans, Nakheel said it does not comment on speculation.
Nakheel, the developer of the palm shaped islands off Dubai, is working with a group of banks to raise a loan for a new mall and, separately, it is planning to issue U.S. dollar-denominated sukuk, sources familiar with the matter said.
The state-owned firm was one of the developers worst hit by Dubai’s real estate crash at the turn of the decade, forcing it into a massive debt restructuring.
The company is now planning to return to the debt market with a new public issue of U.S. dollar-denominated sukuk, or Islamic bonds, which it could sell over the next few months, said the sources. Asked to comment on its sukuk plans, Nakheel said it does not comment on speculation.
SABIC hires banks ahead of dual-tenor dollar bond issue | ZAWYA MENA Edition
SABIC hires banks ahead of dual-tenor dollar bond issue | ZAWYA MENA Edition:
Saudi Basic Industries Corp (SABIC) has hired banks to arrange a series of fixed income investor meetings ahead of a planned dual-tenor U.S. dollar-denominated bond issue, a bank document seen by Reuters shows on Monday.
The world's fourth-largest petrochemicals company has mandated BNP Paribas and Citi as global coordinators for the planned debt issue, together with HSBC, MUFG and Standard Chartered as joint lead managers.
It will meet investors in London, New York, Los Angeles and Boston starting on Sept. 25.
Saudi Basic Industries Corp (SABIC) has hired banks to arrange a series of fixed income investor meetings ahead of a planned dual-tenor U.S. dollar-denominated bond issue, a bank document seen by Reuters shows on Monday.
The world's fourth-largest petrochemicals company has mandated BNP Paribas and Citi as global coordinators for the planned debt issue, together with HSBC, MUFG and Standard Chartered as joint lead managers.
It will meet investors in London, New York, Los Angeles and Boston starting on Sept. 25.
RPT-UPDATE 4-Oil jumps 2 pct as market tightens, more gains seen | Reuters
RPT-UPDATE 4-Oil jumps 2 pct as market tightens, more gains seen | Reuters:
Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. U.S. light crude was $1.18 higher at $71.96.
U.S. commercial crude oil inventories C-STK-T-EIA are at their lowest since early 2015 and although U.S. oil production C-OUT-T-EIA is near a record high of 11 million barrels per day (bpd), subdued U.S. drilling activity points towards a slowdown in output.
Oil prices rose 2 percent on Monday as U.S. sanctions restricted Iranian crude exports, tightening global supply, with some traders forecasting a spike in crude to as much as $100 per barrel.
Brent crude hit its highest since May at $80.47 per barrel, up $1.63 or more than 2 percent, before easing back slightly to around $80.40 by 0730 GMT. U.S. light crude was $1.18 higher at $71.96.
U.S. commercial crude oil inventories C-STK-T-EIA are at their lowest since early 2015 and although U.S. oil production C-OUT-T-EIA is near a record high of 11 million barrels per day (bpd), subdued U.S. drilling activity points towards a slowdown in output.
MIDEAST STOCKS-Kuwait slides on day of FTSE entry, DSI continues to hurt Dubai | Reuters
MIDEAST STOCKS-Kuwait slides on day of FTSE entry, DSI continues to hurt Dubai | Reuters:
Gulf stocks opened in negative territory on Monday, mirroring a slide in Asian shares after China’s decision to cancel talks with the United States increased concerns about a protracted trade war.
The Kuwaiti main index slipped 0.3 percent in early trade, reversing some of its recent gains ahead of joining of the FTSE Russell emerging market index this week, a development expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Monday and on Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Gulf stocks opened in negative territory on Monday, mirroring a slide in Asian shares after China’s decision to cancel talks with the United States increased concerns about a protracted trade war.
The Kuwaiti main index slipped 0.3 percent in early trade, reversing some of its recent gains ahead of joining of the FTSE Russell emerging market index this week, a development expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Monday and on Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Sunday 23 September 2018
Abraaj’s fund management rights to be transferred to investors | Financial Times
Abraaj’s fund management rights to be transferred to investors | Financial Times:
Abraaj’s fund management rights are set to be broken up and transferred to investors including UK-based Actis, signalling an end for the group’s stewardship over its emerging markets funds.
Provisional liquidators have granted exclusivity to Actis for Abraaj’s Africa funds, citing the emerging market investor’s “level of on the ground diligence undertaken, flexibility in their approach and immediate working capital support,” according to an email sent by liquidators to Abraaj staff on Sunday.
The liquidators are also working to hand over the Latin American fund to Colony Capital of the US, saying the transaction has the “lowest execution risk,” and are pushing for the Turkish fund to move to Canada-based Brookfield Asset Management “once terms are agreed,” the email said.
Abraaj’s fund management rights are set to be broken up and transferred to investors including UK-based Actis, signalling an end for the group’s stewardship over its emerging markets funds.
Provisional liquidators have granted exclusivity to Actis for Abraaj’s Africa funds, citing the emerging market investor’s “level of on the ground diligence undertaken, flexibility in their approach and immediate working capital support,” according to an email sent by liquidators to Abraaj staff on Sunday.
The liquidators are also working to hand over the Latin American fund to Colony Capital of the US, saying the transaction has the “lowest execution risk,” and are pushing for the Turkish fund to move to Canada-based Brookfield Asset Management “once terms are agreed,” the email said.
#UAE’s bad loan days ‘are behind us,’ says country’s top banking head Abdul Aziz Al-Ghurair
UAE’s bad loan days ‘are behind us,’ says country’s top banking head Abdul Aziz Al-Ghurair:
The UAE banking sector is well-positioned for future growth, with the days of “bad loans” dragging down bank balance sheets “behind us,” according to the country’s top banking head Abdul Aziz Al-Ghurair.
“I think banking in the UAE is in a very good position,” said Al-Ghurair, who is the CEO of Mashreq Bank in Dubai and the chairman of the UAE Banks Federation.
“Our capital adequacy is at 17 percent so this is pretty high around the world. The cost to income ratio is below 40, which is a really fantastic number so ability to generate profit is high,” he said, speaking to Arab News on the sidelines of a conference in London.
The UAE banking sector is well-positioned for future growth, with the days of “bad loans” dragging down bank balance sheets “behind us,” according to the country’s top banking head Abdul Aziz Al-Ghurair.
“I think banking in the UAE is in a very good position,” said Al-Ghurair, who is the CEO of Mashreq Bank in Dubai and the chairman of the UAE Banks Federation.
“Our capital adequacy is at 17 percent so this is pretty high around the world. The cost to income ratio is below 40, which is a really fantastic number so ability to generate profit is high,” he said, speaking to Arab News on the sidelines of a conference in London.
Qatar’s investment in the UK soars to over QR180bn - The Peninsula Qatar
Qatar’s investment in the UK soars to over QR180bn - The Peninsula Qatar:
Qatar’s investment in the UK has surged to about QR180bn (£38bn), which is expected to cross over Q200bn very soon as the country has reaffirmed its commitment to complete the £5bn worth of investment Qatar pledged to make, said the Lord Mayor of the City of London.
The trade and investment relations and economic cooperation between Qatar and the UK is set to reach new highs in the coming years as both sides have agreed to host a ‘Qatar Day’ event in London early January next year. At the upcoming event both sides will be showcasing the opportunities of investments and cooperation in the two economies.
The visiting Charles Bowman, the 690th The Lord Mayor of the City of London, and his accompanying trade delegation held meetings with top government and private officials, including Deputy Amir H H Sheikh Abdullah bin Hamad Al Thani, Minister of Finance H E Ali Shareef Al Emadi, Qatar Central Bank (QCB) Governor H E Sheikh Abdullah bin Saoud Al Thani, and leading bankers and top executives of private entities.
Qatar’s investment in the UK has surged to about QR180bn (£38bn), which is expected to cross over Q200bn very soon as the country has reaffirmed its commitment to complete the £5bn worth of investment Qatar pledged to make, said the Lord Mayor of the City of London.
The trade and investment relations and economic cooperation between Qatar and the UK is set to reach new highs in the coming years as both sides have agreed to host a ‘Qatar Day’ event in London early January next year. At the upcoming event both sides will be showcasing the opportunities of investments and cooperation in the two economies.
The visiting Charles Bowman, the 690th The Lord Mayor of the City of London, and his accompanying trade delegation held meetings with top government and private officials, including Deputy Amir H H Sheikh Abdullah bin Hamad Al Thani, Minister of Finance H E Ali Shareef Al Emadi, Qatar Central Bank (QCB) Governor H E Sheikh Abdullah bin Saoud Al Thani, and leading bankers and top executives of private entities.
Trump Aluminum Tariffs Said to Prompt U.A.E.'s EGA to Delay IPO - Bloomberg
Trump Aluminum Tariffs Said to Prompt U.A.E.'s EGA to Delay IPO - Bloomberg: A planned share sale in the United Arab Emirates may be the latest casualty of President Donald Trump’s trade policies.
U.S. tariffs on aluminum imports have prompted Emirates Global Aluminium, which produces about 4 percent of the metal globally, to delay an initial public offering, according to people with knowledge of the matter who spoke on condition of anonymity. The company confirmed the decision but attributed it to unfavorable market conditions.
Khaldoon Al Mubarak, the chief executive officer of Abu Dhabi’s sovereign fund Mubadala Investment Co., said in May that EGA could go public in the second half of the year or early 2019. EGA, owned equally by Mubadala and the Investment Corp. of Dubai, exports about 90 percent of its output and considers the U.S. a “key market.”
U.S. tariffs on aluminum imports have prompted Emirates Global Aluminium, which produces about 4 percent of the metal globally, to delay an initial public offering, according to people with knowledge of the matter who spoke on condition of anonymity. The company confirmed the decision but attributed it to unfavorable market conditions.
Khaldoon Al Mubarak, the chief executive officer of Abu Dhabi’s sovereign fund Mubadala Investment Co., said in May that EGA could go public in the second half of the year or early 2019. EGA, owned equally by Mubadala and the Investment Corp. of Dubai, exports about 90 percent of its output and considers the U.S. a “key market.”
Kuwaiti Stocks Retreat Ahead of FTSE Implementation: Inside EM - Bloomberg
Kuwaiti Stocks Retreat Ahead of FTSE Implementation: Inside EM - Bloomberg:
Kuwait’s main equities index fell a day before its inclusion in FTSE Russell’s emerging-markets gauge, trimming one of the best rallies in Middle Eastern stock markets this year.
A drop just before inclusion isn’t surprising: the same thing happened to stocks in Qatar and the United Arab Emirates when they were upgraded to emerging-market status by MSCI Inc. in 2014. In Pakistan, the main index lost 15 percent last year even after an upgrade.
EFG-Hermes expects $930 million in inflows to Kuwaiti stocks as a result of FTSE’s upgrade, which was first announced last year.
Kuwait’s main equities index fell a day before its inclusion in FTSE Russell’s emerging-markets gauge, trimming one of the best rallies in Middle Eastern stock markets this year.
A drop just before inclusion isn’t surprising: the same thing happened to stocks in Qatar and the United Arab Emirates when they were upgraded to emerging-market status by MSCI Inc. in 2014. In Pakistan, the main index lost 15 percent last year even after an upgrade.
EFG-Hermes expects $930 million in inflows to Kuwaiti stocks as a result of FTSE’s upgrade, which was first announced last year.
OPEC, Russia rebuff Trump's call for immediate boost to oil output | Reuters
OPEC, Russia rebuff Trump's call for immediate boost to oil output | Reuters:
OPEC’s leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing U.S. President Donald Trump’s calls for action to cool the market.
“I do not influence prices,” Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.
Benchmark Brent oil LCOc1 reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.
OPEC’s leader Saudi Arabia and its biggest oil-producer ally outside the group, Russia, ruled out on Sunday any immediate, additional increase in crude output, effectively rebuffing U.S. President Donald Trump’s calls for action to cool the market.
“I do not influence prices,” Saudi Energy Minister Khalid al-Falih told reporters as OPEC and non-OPEC energy ministers gathered in Algiers for a meeting that ended with no formal recommendation for any additional supply boost.
Benchmark Brent oil LCOc1 reached $80 a barrel this month, prompting Trump to reiterate on Thursday his demand that the Organization of the Petroleum Exporting Countries lower prices.
MIDEAST STOCKS-Kuwait down ahead of FTSE entry, other Middle East markets mixed | Reuters
MIDEAST STOCKS-Kuwait down ahead of FTSE entry, other Middle East markets mixed | Reuters:
Kuwait’s stock market fell on Sunday, pausing after recent gains ahead of joining of the FTSE Russell emerging market index this week, which is expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Sept. 24 and Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Kuwait’s main index closed 1.4 percent down, pressured by telecoms and financial stocks.
Kuwait’s stock market fell on Sunday, pausing after recent gains ahead of joining of the FTSE Russell emerging market index this week, which is expected to draw investment from passive funds.
Entry to the emerging market index will be in two phases, on Sept. 24 and Dec. 24. Arqaam Capital estimates the inflows in across the two phases will reach $1 billion.
Kuwait’s main index closed 1.4 percent down, pressured by telecoms and financial stocks.
OPEC, Like a Dying Star, Is About to Go Supernova - Bloomberg
OPEC, Like a Dying Star, Is About to Go Supernova - Bloomberg:
OPEC is dying. President Donald Trump will probably rejoice. But he may not like what takes its place any better.
For a while, in its youth, the group burned so very bright, helping members wrest control over their oil industries and stand up to foreign producers — and their governments. But now, like every star, it is about to implode.
When a star runs out of hydrogen fuel its core contracts and heats up, while the outer layers expand. It will then go one of two ways — either collapsing into insignificance to become a black dwarf, or exploding as a supernova.
OPEC is dying. President Donald Trump will probably rejoice. But he may not like what takes its place any better.
For a while, in its youth, the group burned so very bright, helping members wrest control over their oil industries and stand up to foreign producers — and their governments. But now, like every star, it is about to implode.
When a star runs out of hydrogen fuel its core contracts and heats up, while the outer layers expand. It will then go one of two ways — either collapsing into insignificance to become a black dwarf, or exploding as a supernova.
Dubai real estate transactions top $35bln in 8 months | ZAWYA MENA Edition
Dubai real estate transactions top $35bln in 8 months | ZAWYA MENA Edition:
Dubai Land Department (DLD) said that its service centres across Dubai have served more than 39,000 investors, after helping them complete their investments with a total value of Dh131 billion ($35.6 billion) from January to August.
In the latest report issued by DLD, the number of transactions provided in service centres during the period mentioned amounted to 42,000, distributed between 24,000 transactions for the transfer of ownership, and 18,000 that provided excellent services to investors.
Sultan Butti bin Mejren, director general of Dubai Land Department commented: “The demand for service centres is evident due to the completed transactions of more than 39,000 investors, valued at more than Dh131 billion. This confirms the success of this project, which aims primarily to provide the department's services throughout Dubai to achieve the strategic vision of the Dubai Plan 2021 which aims to position the Emirate as the best global destination for living, working, and visiting.”
Dubai Land Department (DLD) said that its service centres across Dubai have served more than 39,000 investors, after helping them complete their investments with a total value of Dh131 billion ($35.6 billion) from January to August.
In the latest report issued by DLD, the number of transactions provided in service centres during the period mentioned amounted to 42,000, distributed between 24,000 transactions for the transfer of ownership, and 18,000 that provided excellent services to investors.
Sultan Butti bin Mejren, director general of Dubai Land Department commented: “The demand for service centres is evident due to the completed transactions of more than 39,000 investors, valued at more than Dh131 billion. This confirms the success of this project, which aims primarily to provide the department's services throughout Dubai to achieve the strategic vision of the Dubai Plan 2021 which aims to position the Emirate as the best global destination for living, working, and visiting.”
Saudi energy minister: I do not influence oil prices | ZAWYA MENA Edition
Saudi energy minister: I do not influence oil prices | ZAWYA MENA Edition:
Saudi Arabian Energy Minister Khalid al-Falih said on Sunday he does not influence oil prices, just two days after U.S. President Donald Trump called on OPEC to bring down the cost of fuel.
"I do not influence prices," Falih told reporters in Algiers ahead of a meeting of OPEC ministers and allies such as Russia to discuss the situation in oil markets.
Benchmark Brent oil reached $80 a barrel this month, prompting Trump to call again on the Organization of the Petroleum Exporting Countries to lower prices.
Saudi Arabian Energy Minister Khalid al-Falih said on Sunday he does not influence oil prices, just two days after U.S. President Donald Trump called on OPEC to bring down the cost of fuel.
"I do not influence prices," Falih told reporters in Algiers ahead of a meeting of OPEC ministers and allies such as Russia to discuss the situation in oil markets.
Benchmark Brent oil reached $80 a barrel this month, prompting Trump to call again on the Organization of the Petroleum Exporting Countries to lower prices.
MIDEAST STOCKS-Kuwait falls ahead of FTSE entry, other Gulf markets mostly rise | Reuters
MIDEAST STOCKS-Kuwait falls ahead of FTSE entry, other Gulf markets mostly rise | Reuters:
Kuwait’s stock market fell on Sunday, pausing after recent gains ahead of joining of the FTSE Russell emerging market index this week, which is expected to draw passive fund inflows.
Kuwait will join the emerging market index in two phases, on Sept. 24 and Dec. 24. Arqaam Capital estimates the inflows in the two phases combined at $1 billion.
Kuwait’s main index was down by 0.8 percent as National Bank of Kuwait (NBK) fell 1.5 percent and logistics company Agility dropped 1.9 percent.
Kuwait’s stock market fell on Sunday, pausing after recent gains ahead of joining of the FTSE Russell emerging market index this week, which is expected to draw passive fund inflows.
Kuwait will join the emerging market index in two phases, on Sept. 24 and Dec. 24. Arqaam Capital estimates the inflows in the two phases combined at $1 billion.
Kuwait’s main index was down by 0.8 percent as National Bank of Kuwait (NBK) fell 1.5 percent and logistics company Agility dropped 1.9 percent.
Saturday 22 September 2018
Iran sends out ghost tankers as US oil sanctions loom | Financial Times
Iran sends out ghost tankers as US oil sanctions loom | Financial Times:
A supertanker called Happiness is carrying 2m barrels of trouble for Iran. The crude vessel filled up at a terminal operated by Iran’s national oil company on Kharg Island at the start of this month, before setting off on a journey for Asia, according to ship tracking data. But it was sailing into a global market where Iranian oil is acquiring pariah status.
When Happiness I — its official name — exited the Strait of Hormuz the tanker turned off the system that allows traders to track its movements. As the US prepares to reimpose sanctions on Tehran’s energy sector in November, the vessel joins a fleet of ghost ships that symbolises the pressure growing on Iran to hide the identity of its buyers.
Following President Donald Trump’s withdrawal from a nuclear deal Iran signed with world powers, he is seeking to cripple the Iranian economy with sanctions that impose severe financial penalties on any party involved in trading its crude.
A supertanker called Happiness is carrying 2m barrels of trouble for Iran. The crude vessel filled up at a terminal operated by Iran’s national oil company on Kharg Island at the start of this month, before setting off on a journey for Asia, according to ship tracking data. But it was sailing into a global market where Iranian oil is acquiring pariah status.
When Happiness I — its official name — exited the Strait of Hormuz the tanker turned off the system that allows traders to track its movements. As the US prepares to reimpose sanctions on Tehran’s energy sector in November, the vessel joins a fleet of ghost ships that symbolises the pressure growing on Iran to hide the identity of its buyers.
Following President Donald Trump’s withdrawal from a nuclear deal Iran signed with world powers, he is seeking to cripple the Iranian economy with sanctions that impose severe financial penalties on any party involved in trading its crude.
OPEC and allies struggle to pump more oil as Iran supply falls | Reuters
OPEC and allies struggle to pump more oil as Iran supply falls | Reuters:
OPEC and its allies reduced oil output in August as a drop in Iranian supply due to U.S. sanctions derailed their attempts to raise production to agreed levels, delegates said on Saturday as the energy producers prepared to hold talks in Algiers.
The development further raises pressure on the Organization of the Petroleum Exporting Countries to boost supply amid calls from U.S. President Donald Trump to lower oil prices.
On Friday, a source familiar with the discussions told Reuters OPEC and its allies led by Russia were considering the possibility of raising crude supplies by a further 500,000 barrels per day (bpd) as U.S. sanctions on OPEC’s third-largest producer, Iran, bite into Tehran’s exports.
OPEC and its allies reduced oil output in August as a drop in Iranian supply due to U.S. sanctions derailed their attempts to raise production to agreed levels, delegates said on Saturday as the energy producers prepared to hold talks in Algiers.
The development further raises pressure on the Organization of the Petroleum Exporting Countries to boost supply amid calls from U.S. President Donald Trump to lower oil prices.
On Friday, a source familiar with the discussions told Reuters OPEC and its allies led by Russia were considering the possibility of raising crude supplies by a further 500,000 barrels per day (bpd) as U.S. sanctions on OPEC’s third-largest producer, Iran, bite into Tehran’s exports.
Friday 21 September 2018
Iran looms large over OPEC summit
Iran looms large over OPEC summit:
The Opec summit in Algiers on Sunday meets amid widespread fears of a supply crunch when a forecast 1.4 million barrels a day of crude is lost from Iran in November when US sanctions kick in.
If, on top of that, more supply shocks hit the market in worse-than-expected disruption from Libya and Iraq, the price of crude could surge, said Andy Critchlow, head of energy news at S&P Global Platts. “At the moment, the market looks finely balanced,” he said.
There isn’t a lot of slack in the system. As Critchlow points out: “Upstream investment in infrastructure and new wells is historically low and it will take a long time to turn that around.”
The Opec summit in Algiers on Sunday meets amid widespread fears of a supply crunch when a forecast 1.4 million barrels a day of crude is lost from Iran in November when US sanctions kick in.
If, on top of that, more supply shocks hit the market in worse-than-expected disruption from Libya and Iraq, the price of crude could surge, said Andy Critchlow, head of energy news at S&P Global Platts. “At the moment, the market looks finely balanced,” he said.
There isn’t a lot of slack in the system. As Critchlow points out: “Upstream investment in infrastructure and new wells is historically low and it will take a long time to turn that around.”
Qatar capital inflows rebound in 2018: IIF - The Peninsula Qatar
Qatar capital inflows rebound in 2018: IIF - The Peninsula Qatar:
A strong rebound in capital inflows to Qatar was the key driver to the overall rise in the non-resident capital flows to a ‘group of 26 countries’ in 2018, estimated at $145bn, up from about $125bn in 2017.
This amounts to over 5 percent of the Frontier Market (FM) GDP—higher than the 3-4 percent we see for larger Emerging Markets…The upturn is due mainly to a strong rebound in flows to Qatar, from outflows of $23bn in 2017 to some $20bn this year, Institute of International Finance (IIF) noted.
IIF’s Frontier Market includes 26 countries, covering five in the Middle East region.Excluding Qatar, non-resident capital flows to these 26-group countries are projected to decline by nearly 20 percent to some $120bn in 2018.
A strong rebound in capital inflows to Qatar was the key driver to the overall rise in the non-resident capital flows to a ‘group of 26 countries’ in 2018, estimated at $145bn, up from about $125bn in 2017.
This amounts to over 5 percent of the Frontier Market (FM) GDP—higher than the 3-4 percent we see for larger Emerging Markets…The upturn is due mainly to a strong rebound in flows to Qatar, from outflows of $23bn in 2017 to some $20bn this year, Institute of International Finance (IIF) noted.
IIF’s Frontier Market includes 26 countries, covering five in the Middle East region.Excluding Qatar, non-resident capital flows to these 26-group countries are projected to decline by nearly 20 percent to some $120bn in 2018.
Emirates-Etihad May Be Airline Deal of the Decade. Here's Why. - Bloomberg
Emirates-Etihad May Be Airline Deal of the Decade. Here's Why. - Bloomberg:
A combination of Dubai-based Emirates and Abu Dhabi’s Etihad would be the airline industry’s deal of the decade, if it can be pulled off.
Executives at the two companies have been quietly laying plans to create what would be the world’s biggest airline by passenger traffic, according to people familiar with the discussions. The group would have combined revenue of $29.3 billion and control almost 5 percent of the world’s airline routes.
Etihad and Emirates publicly deny merger talks, but an exploratory look at Emirates taking over Etihad’s airline operations remains on the table, according to the people, who asked not to be identified discussing private considerations. Talks have occurred on-and-off for some time, one of the people said, and any deal would face antitrust as well as political challenges.
A combination of Dubai-based Emirates and Abu Dhabi’s Etihad would be the airline industry’s deal of the decade, if it can be pulled off.
Executives at the two companies have been quietly laying plans to create what would be the world’s biggest airline by passenger traffic, according to people familiar with the discussions. The group would have combined revenue of $29.3 billion and control almost 5 percent of the world’s airline routes.
Etihad and Emirates publicly deny merger talks, but an exploratory look at Emirates taking over Etihad’s airline operations remains on the table, according to the people, who asked not to be identified discussing private considerations. Talks have occurred on-and-off for some time, one of the people said, and any deal would face antitrust as well as political challenges.
Hedge funds pare bullish bets on U.S. crude to 1-month low | Reuters
Hedge funds pare bullish bets on U.S. crude to 1-month low | Reuters:
Hedge funds trimmed their bullish wagers on U.S. crude to the lowest in about a month, data showed on Friday, as trade tensions between the United States and China continued to escalate, raising concerns about oil demand.
The speculator group cut its combined futures and options position in New York and London by 15,972 contracts to 342,839 in the week to Sept. 18, the U.S. Commodity Futures Trading Commission (CFTC) said.
Money managers slashed gross long positions to the lowest levels in a year, driving the reduction.
Hedge funds trimmed their bullish wagers on U.S. crude to the lowest in about a month, data showed on Friday, as trade tensions between the United States and China continued to escalate, raising concerns about oil demand.
The speculator group cut its combined futures and options position in New York and London by 15,972 contracts to 342,839 in the week to Sept. 18, the U.S. Commodity Futures Trading Commission (CFTC) said.
Money managers slashed gross long positions to the lowest levels in a year, driving the reduction.
Oil pares gains in volatile trade ahead of OPEC meet | Reuters
Oil pares gains in volatile trade ahead of OPEC meet | Reuters:
Oil prices see-sawed in a volatile, heavy day of trading on Friday, selling off after news that major producers would consider additional supply one day after U.S. President Donald Trump again blasted the cartel.
Investors grappled with the Organization of the Petroleum Exporting Countries and non-OPEC producers’ ability to offset a shortfall from Iran due to U.S. sanctions that go into full force Nov. 4. The major producers are scheduled to gather in Algeria on Sunday.
Concerns that the cartel and its allies would fall short sent global benchmark Brent crude LCOc1 $1.00 higher to $80.12 per barrel early in the session.
Oil prices see-sawed in a volatile, heavy day of trading on Friday, selling off after news that major producers would consider additional supply one day after U.S. President Donald Trump again blasted the cartel.
Investors grappled with the Organization of the Petroleum Exporting Countries and non-OPEC producers’ ability to offset a shortfall from Iran due to U.S. sanctions that go into full force Nov. 4. The major producers are scheduled to gather in Algeria on Sunday.
Concerns that the cartel and its allies would fall short sent global benchmark Brent crude LCOc1 $1.00 higher to $80.12 per barrel early in the session.
Exclusive: OPEC and allies consider oil output boost as Iranian supply falls - source | Reuters
Exclusive: OPEC and allies consider oil output boost as Iranian supply falls - source | Reuters:
OPEC and other oil producers are discussing the possibility of raising output by 500,000 barrels per day (bpd) to counter falling supply from Iran because of U.S. sanctions, a source familiar with the discussions told Reuters.
The development comes as oil reached $80 a barrel this month, prompting U.S. President Donald Trump to call again on the Organization of the Petroleum Exporting Countries (OPEC) to help to bring down prices.
OPEC, Russia and other allies agreed a deal in late 2016 to cut supply, but after months of cutting by more than the pact had called for, they agreed in June to boost output by returning to 100 percent compliance. That equates to an increase of about 1 million bpd.
OPEC and other oil producers are discussing the possibility of raising output by 500,000 barrels per day (bpd) to counter falling supply from Iran because of U.S. sanctions, a source familiar with the discussions told Reuters.
The development comes as oil reached $80 a barrel this month, prompting U.S. President Donald Trump to call again on the Organization of the Petroleum Exporting Countries (OPEC) to help to bring down prices.
OPEC, Russia and other allies agreed a deal in late 2016 to cut supply, but after months of cutting by more than the pact had called for, they agreed in June to boost output by returning to 100 percent compliance. That equates to an increase of about 1 million bpd.
Trump's Blow to Iranian Oil Sparks Curious Price Divergence - Bloomberg
Trump's Blow to Iranian Oil Sparks Curious Price Divergence - Bloomberg:
The relationship between two major oil benchmarks is charting an unexpected course as U.S. sanctions take Iranian crude out of the market.
As demand for alternative Middle Eastern supply increases, regional marker Dubai crude has reason to strengthen. Yet it’s weakening against London’s Brent -- an oil grade with very different chemical characteristics that’s used to price barrels from Europe to Africa.
Brent’s gaining more because futures and derivatives linked to it are accessible to an array of financial investors and traders via a highly liquid market, compared with relatively niche over-the-counter and clearing-house platforms for Dubai. So broader concerns over a potential supply crunch are being reflected to a greater extent in the London marker.
The relationship between two major oil benchmarks is charting an unexpected course as U.S. sanctions take Iranian crude out of the market.
As demand for alternative Middle Eastern supply increases, regional marker Dubai crude has reason to strengthen. Yet it’s weakening against London’s Brent -- an oil grade with very different chemical characteristics that’s used to price barrels from Europe to Africa.
Brent’s gaining more because futures and derivatives linked to it are accessible to an array of financial investors and traders via a highly liquid market, compared with relatively niche over-the-counter and clearing-house platforms for Dubai. So broader concerns over a potential supply crunch are being reflected to a greater extent in the London marker.
Emirates, Etihad Potential Merger Has Many Stumbling Blocks - Bloomberg
Emirates, Etihad Potential Merger Has Many Stumbling Blocks - Bloomberg:
A takeover by Emirates of Etihad Airways PJSC is the megadeal that has to happen in the global airline industry. At the same time, it’s a poisoned chalice for the suitor that may hobble its growth plans for a generation.
The two carriers are in preliminary talks over a deal, people familiar with the matter told Layan Odeh, Dinesh Nair and Benjamin Katz of Bloomberg News on Thursday. Any discussions may be protracted because combining these two airlines will be as difficult and risky as getting hedgehogs to mate.
While countries the size of China and the U.S. have domestic markets large enough to sustain multiple global hub carriers, the United Arab Emirates is a much smaller beast, with a population of just 9.4 million. Trying to establish not one, but two world-connecting airlines there (just down the road from a third global hub airline in Qatar, population 2.6 million) is a bit like trying to do the same thing in Hong Kong or Singapore
A takeover by Emirates of Etihad Airways PJSC is the megadeal that has to happen in the global airline industry. At the same time, it’s a poisoned chalice for the suitor that may hobble its growth plans for a generation.
The two carriers are in preliminary talks over a deal, people familiar with the matter told Layan Odeh, Dinesh Nair and Benjamin Katz of Bloomberg News on Thursday. Any discussions may be protracted because combining these two airlines will be as difficult and risky as getting hedgehogs to mate.
While countries the size of China and the U.S. have domestic markets large enough to sustain multiple global hub carriers, the United Arab Emirates is a much smaller beast, with a population of just 9.4 million. Trying to establish not one, but two world-connecting airlines there (just down the road from a third global hub airline in Qatar, population 2.6 million) is a bit like trying to do the same thing in Hong Kong or Singapore
ENOC's jet fuel storage plans show how Iranian sanctions upending oil market | Reuters
ENOC's jet fuel storage plans show how Iranian sanctions upending oil market | Reuters:
Emirates National Oil Company (ENOC) has chartered at least one vessel to store jet fuel to ensure supply to airlines in Dubai as pending U.S. sanctions on Iran have cut off its access to feedstocks for producing the aviation fuel, said several industry sources.
ENOC has chartered the Suezmax-sized tankers Portman Square and NS Africa for 30 to 60 days with an option to store oil products, according to two shipbrokers.
The company will store jet fuel onboard at least one of the vessels, which can store about 100,000 tonnes of jet fuel, two industry sources said.
Emirates National Oil Company (ENOC) has chartered at least one vessel to store jet fuel to ensure supply to airlines in Dubai as pending U.S. sanctions on Iran have cut off its access to feedstocks for producing the aviation fuel, said several industry sources.
ENOC has chartered the Suezmax-sized tankers Portman Square and NS Africa for 30 to 60 days with an option to store oil products, according to two shipbrokers.
The company will store jet fuel onboard at least one of the vessels, which can store about 100,000 tonnes of jet fuel, two industry sources said.
Oil edges up on supply worries, but Trump's call for lower prices drags | Reuters
Oil edges up on supply worries, but Trump's call for lower prices drags | Reuters:
Oil futures inched up on Friday amid concerns over supply as U.S. sanctions on Iran’s crude exports loom, although calls by U.S. President Donald Trump for lower oil prices dragged.
International benchmark Brent crude for November delivery LCOc1 was up 26 cents, or 0.33 percent, at $78.96 a barrel by 0647 GMT.
U.S. West Texas Intermediate crude for October delivery CLc1 was up 7 cents, or 0.10 percent, at $70.39 a barrel.
Oil futures inched up on Friday amid concerns over supply as U.S. sanctions on Iran’s crude exports loom, although calls by U.S. President Donald Trump for lower oil prices dragged.
International benchmark Brent crude for November delivery LCOc1 was up 26 cents, or 0.33 percent, at $78.96 a barrel by 0647 GMT.
U.S. West Texas Intermediate crude for October delivery CLc1 was up 7 cents, or 0.10 percent, at $70.39 a barrel.
Thursday 20 September 2018
Saudi Electricity sets price guidance for sukuk | GulfNews.com
Saudi Electricity sets price guidance for sukuk | GulfNews.com:
State-controlled Saudi Electricity Co has set the final price guidance for a planned sale of dual-tenor US dollar-denominated sukuk, or Islamic bonds, according to documents seen by Reuters.
The company is marketing five-year sukuk, due in January 2024, and 10-year sukuk with a final price guidance of around 120 basis points over mid-swaps and 165 bps over mid-swaps, respectively.
The bonds are expected to price within a range of 5 bps above or below the set guidance. Orders for the issues topped $5 billion, the documents showed.
State-controlled Saudi Electricity Co has set the final price guidance for a planned sale of dual-tenor US dollar-denominated sukuk, or Islamic bonds, according to documents seen by Reuters.
The company is marketing five-year sukuk, due in January 2024, and 10-year sukuk with a final price guidance of around 120 basis points over mid-swaps and 165 bps over mid-swaps, respectively.
The bonds are expected to price within a range of 5 bps above or below the set guidance. Orders for the issues topped $5 billion, the documents showed.
QFC officials discuss strengthening ties with Lord Mayor of London City - The Peninsula Qatar
QFC officials discuss strengthening ties with Lord Mayor of London City - The Peninsula Qatar:
Qatar Financial Centre (QFC) officials discussed with Lord Mayor of the City of London, Charles Bowman, the means to promote cooperation especially in doing business in the State of Qatar. The meeting took place during the visit of the the Lord Mayor and his accompanying delegation to the premises of QFC.
Senior officials from QFC, one of the world’s leading and fastest growing onshore business and financial centers, met with Lord Mayor of the City of London and his accompanying delegation to discuss a number of available fields of cooperation between the QFC and London in the near future.
The meeting comes as part of the QFC’s commitment to further reinforce the strong historical relationship that exist between the UK and Qatar and to continue to enhance relations with the City of London.
Qatar Financial Centre (QFC) officials discussed with Lord Mayor of the City of London, Charles Bowman, the means to promote cooperation especially in doing business in the State of Qatar. The meeting took place during the visit of the the Lord Mayor and his accompanying delegation to the premises of QFC.
Senior officials from QFC, one of the world’s leading and fastest growing onshore business and financial centers, met with Lord Mayor of the City of London and his accompanying delegation to discuss a number of available fields of cooperation between the QFC and London in the near future.
The meeting comes as part of the QFC’s commitment to further reinforce the strong historical relationship that exist between the UK and Qatar and to continue to enhance relations with the City of London.
Emirates Is Said to Explore Etihad Deal to Forge Biggest Airline - Bloomberg
Emirates Is Said to Explore Etihad Deal to Forge Biggest Airline - Bloomberg:
Dubai’s flagship airline Emirates is looking at taking over unprofitable neighbor Etihad, according to four people familiar with the matter, in a move that would create the world’s biggest carrier by passenger traffic.
The talks, which are at a preliminary stage, would see Emirates acquire the main airline business of Abu Dhabi’s Etihad, which would keep its maintenance arm, according to the people, who asked not to be named because the matter is confidential. The negotiations could yet fall through, they said.
Both airlines initially declined to comment, before later denying that any talks were underway. Were a transaction to go ahead the enlarged airline operation would be bigger than that of American Airlines Group Inc., which has a market value of $19.2 billion.
Dubai’s flagship airline Emirates is looking at taking over unprofitable neighbor Etihad, according to four people familiar with the matter, in a move that would create the world’s biggest carrier by passenger traffic.
The talks, which are at a preliminary stage, would see Emirates acquire the main airline business of Abu Dhabi’s Etihad, which would keep its maintenance arm, according to the people, who asked not to be named because the matter is confidential. The negotiations could yet fall through, they said.
Both airlines initially declined to comment, before later denying that any talks were underway. Were a transaction to go ahead the enlarged airline operation would be bigger than that of American Airlines Group Inc., which has a market value of $19.2 billion.
Iran Rant Reveals How Powerless It Really Is in OPEC: Julian Lee - Bloomberg
Iran Rant Reveals How Powerless It Really Is in OPEC: Julian Lee - Bloomberg:
Iranian oil minister Bijan Namdar Zanganeh’s threat to veto any OPEC decision that harms the Islamic Republic will have no impact on oil supply and will be ignored by those producers who are able to boost their oil production, just as happened in 2011, writes Bloomberg oil strategist Julian Lee.
Zanganeh is right to say that the Joint Ministerial Monitoring Committee, which will meet in Algeria on Sunday, does not have the authority to make any decision on a new production agreement. Its job is to oversee the implementation of an existing deal, reached in 2016 with a group of non-OPEC countries, to cut supply by around 1.8 million barrels a day to reduce excess stockpiles of oil.
By June 2018, the group’s output had come down more than intended and the deal was tweaked when oil ministers met in Vienna that month. According to Saudi Arabia and Russia, they decided to bring the group’s collective production into line with the level agreed in 2016, adding about 1 million barrels a day to supply. Under Iran’s interpretation, though, the agreement was for each country to bring its own production into line with its its individual target, yielding a smaller increase. The difference is important.
Iranian oil minister Bijan Namdar Zanganeh’s threat to veto any OPEC decision that harms the Islamic Republic will have no impact on oil supply and will be ignored by those producers who are able to boost their oil production, just as happened in 2011, writes Bloomberg oil strategist Julian Lee.
Zanganeh is right to say that the Joint Ministerial Monitoring Committee, which will meet in Algeria on Sunday, does not have the authority to make any decision on a new production agreement. Its job is to oversee the implementation of an existing deal, reached in 2016 with a group of non-OPEC countries, to cut supply by around 1.8 million barrels a day to reduce excess stockpiles of oil.
By June 2018, the group’s output had come down more than intended and the deal was tweaked when oil ministers met in Vienna that month. According to Saudi Arabia and Russia, they decided to bring the group’s collective production into line with the level agreed in 2016, adding about 1 million barrels a day to supply. Under Iran’s interpretation, though, the agreement was for each country to bring its own production into line with its its individual target, yielding a smaller increase. The difference is important.
UPDATE 1-Qatar's Commercial Bank says targets $750 million loan refinancing | Reuters
UPDATE 1-Qatar's Commercial Bank says targets $750 million loan refinancing | Reuters:
Commercial Bank, Qatar’s third-largest lender by assets, aims to raise $750 million through a syndicated loan, a bank spokesman said on Thursday.
The deal would be the second significant syndicated loan raised by Qatari banks over the next few months, as sources told Reuters this week that Qatar National Bank, the Middle East’s largest lender, plans to refinance a 2.25 billion euro ($2.64 billion) facility due in May next year.
The Commercial Bank loan is “business as usual” and would be used to refinance an existing loan, the bank spokesman said.
Commercial Bank, Qatar’s third-largest lender by assets, aims to raise $750 million through a syndicated loan, a bank spokesman said on Thursday.
The deal would be the second significant syndicated loan raised by Qatari banks over the next few months, as sources told Reuters this week that Qatar National Bank, the Middle East’s largest lender, plans to refinance a 2.25 billion euro ($2.64 billion) facility due in May next year.
The Commercial Bank loan is “business as usual” and would be used to refinance an existing loan, the bank spokesman said.
UPDATE 1-Saudi's ACWA Power delays plans for IPO - sources | Reuters
UPDATE 1-Saudi's ACWA Power delays plans for IPO - sources | Reuters:
Saudi Arabian utility developer ACWA Power IPO-ACPO.SE has delayed plans for an initial public offering (IPO), originally envisaged for this year, sources familiar with the matter said on Thursday.
It is the latest company to delay a public listing in Saudi Arabia at a time when the government is focused on attracting more investment to the stock market under its push to move the economy away from a dependence on oil revenues.
A spokesman for ACWA Power declined to comment. The company has $30 billion of assets under management and counts Saudi sovereign wealth fund Public Investment Fund as a shareholder.
Saudi Arabian utility developer ACWA Power IPO-ACPO.SE has delayed plans for an initial public offering (IPO), originally envisaged for this year, sources familiar with the matter said on Thursday.
It is the latest company to delay a public listing in Saudi Arabia at a time when the government is focused on attracting more investment to the stock market under its push to move the economy away from a dependence on oil revenues.
A spokesman for ACWA Power declined to comment. The company has $30 billion of assets under management and counts Saudi sovereign wealth fund Public Investment Fund as a shareholder.
VW rejects Trump envoy's take on Iran pullout | Reuters
VW rejects Trump envoy's take on Iran pullout | Reuters:
Carmaker Volkswagen AG (VOWG_p.DE) rejected on Thursday a report suggesting it had decided against doing business in Iran after coming under pressure from Donald Trump’s ambassador to Germany, saying its position on the country had not changed.
U.S. sanctions against Iran, introduced by President Trump after his decision to pull the United States out of the Iran nuclear deal, have forced companies in Germany and across Europe to reconsider their investments there.
Ambassador Richard Grenell has appeared to take credit for this shift in a series of tweets and interviews over the past weeks, announcing the withdrawal of German blue chips like Siemens (SIEGn.DE), BASF (BASFn.DE) and now Volkswagen, to the surprise of the companies themselves.
Carmaker Volkswagen AG (VOWG_p.DE) rejected on Thursday a report suggesting it had decided against doing business in Iran after coming under pressure from Donald Trump’s ambassador to Germany, saying its position on the country had not changed.
U.S. sanctions against Iran, introduced by President Trump after his decision to pull the United States out of the Iran nuclear deal, have forced companies in Germany and across Europe to reconsider their investments there.
Ambassador Richard Grenell has appeared to take credit for this shift in a series of tweets and interviews over the past weeks, announcing the withdrawal of German blue chips like Siemens (SIEGn.DE), BASF (BASFn.DE) and now Volkswagen, to the surprise of the companies themselves.
Oil prices pull back as Trump tweet shifts focus to OPEC | Reuters
Oil prices pull back as Trump tweet shifts focus to OPEC | Reuters:
Oil prices eased on Thursday, pulling back after U.S. President Donald Trump urged OPEC to increase production at its meeting in Algeria, and slowing bullish momentum that had previously propelled the market toward four-year highs.
Brent crude oil LCOc1 settled down 78 cents at $78.70 a barrel. U.S. light crude CLc1 was down 32 cents to settle at $70.80 a barrel after rising nearly 2 percent on Wednesday.
Global benchmark Brent has been trading just below $80 a barrel, near its highest level in almost four years, on expectations that U.S. sanctions against Iran, OPEC’s third biggest producer, will reduce global supply.
Oil prices eased on Thursday, pulling back after U.S. President Donald Trump urged OPEC to increase production at its meeting in Algeria, and slowing bullish momentum that had previously propelled the market toward four-year highs.
Brent crude oil LCOc1 settled down 78 cents at $78.70 a barrel. U.S. light crude CLc1 was down 32 cents to settle at $70.80 a barrel after rising nearly 2 percent on Wednesday.
Global benchmark Brent has been trading just below $80 a barrel, near its highest level in almost four years, on expectations that U.S. sanctions against Iran, OPEC’s third biggest producer, will reduce global supply.