UAE to expand recognition of fund licenses in bid to lure investment | Reuters:
United Arab Emirates regulators said they would expand their recognition of investment fund licenses in an effort to persuade more funds to base themselves in the country, in the face of competition for the business from other states in the region.
Funds can be licensed in three UAE jurisdictions: the Dubai International Financial Centre (DIFC), the Abu Dhabi Global Market (ADGM), or onshore in the UAE. At present a fund licensed in one area faces restrictions on how it can be marketed and sold in the other two areas, slowing sales and raising costs.
Authorities agreed to remove those barriers by recognizing a single license across the country, regardless of where it was issued, regulatory agencies for the three jurisdictions said in a statement this week.
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Friday 30 November 2018
Oil drops; losses limited by hopes of OPEC, Russia output cut | Reuters
Oil drops; losses limited by hopes of OPEC, Russia output cut | Reuters:
Oil prices edged lower on Friday due to concerns of oversupply and a strong dollar but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would agree some form of production cut next week.
The two benchmarks, North Sea Brent LCOc1 and U.S. crude CLc1, still have had their weakest month in more than 10 years in November, losing more than 20 percent as global supply has outstripped demand.
Front-month Brent futures fell 80 cents, or 1.3 percent, to settle at $58.71 a barrel, ahead of expiry. The more active February Brent crude futures LCOG9 lost 45 cents to settle at $59.46 a barrel. U.S. crude CLc1 dropped 52 cents, or 1 percent, to $50.93 a barrel.
Oil prices edged lower on Friday due to concerns of oversupply and a strong dollar but losses were limited by expectations that the Organization of the Petroleum Exporting Countries (OPEC) and Russia would agree some form of production cut next week.
The two benchmarks, North Sea Brent LCOc1 and U.S. crude CLc1, still have had their weakest month in more than 10 years in November, losing more than 20 percent as global supply has outstripped demand.
Front-month Brent futures fell 80 cents, or 1.3 percent, to settle at $58.71 a barrel, ahead of expiry. The more active February Brent crude futures LCOG9 lost 45 cents to settle at $59.46 a barrel. U.S. crude CLc1 dropped 52 cents, or 1 percent, to $50.93 a barrel.
Oil falls as high inventories outweigh likely OPEC cuts | Reuters
Oil falls as high inventories outweigh likely OPEC cuts | Reuters:
Oil prices fell further on Friday as swelling inventories depressed sentiment despite widespread expectations that OPEC and Russia would agree some form of production cut next week.
Both international oil benchmarks, North Sea Brent LCOc1 and U.S. light crude CLc1, have had their weakest month for more than 10 years in November, losing more than 20 percent as global supply has outstripped demand.
Brent was down 85 cents at $58.66 a barrel by 1210 GMT.
Oil prices fell further on Friday as swelling inventories depressed sentiment despite widespread expectations that OPEC and Russia would agree some form of production cut next week.
Both international oil benchmarks, North Sea Brent LCOc1 and U.S. light crude CLc1, have had their weakest month for more than 10 years in November, losing more than 20 percent as global supply has outstripped demand.
Brent was down 85 cents at $58.66 a barrel by 1210 GMT.
Oil Poised for Worst Month in 10 Years on Specter of Supply Glut - Bloomberg
Oil Poised for Worst Month in 10 Years on Specter of Supply Glut - Bloomberg:
Oil’s on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers.
Futures in New York are set to drop about 21 percent in November, falling for a second month. While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices. Meanwhile, the specter of expanding U.S. crude stockpiles has also been haunting the market.
After reaching a four-year high in early October, crude has collapsed more than 30 percent, marking the worst crash since 2015. While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the U.S. and China has threatened to hurt demand. Oil has remained in an oversold territory this month, and seesawed near the $50 threshold this week -- a key budgetary marker for shale drillers.
Oil’s on track for its worst month in a decade on growing fears over a global supply glut that’s been exacerbated by American waivers to Iranian crude buyers.
Futures in New York are set to drop about 21 percent in November, falling for a second month. While Russia showed a willingness to join Saudi Arabia in curbing output, the outcome of an OPEC meeting in Vienna next week is still unclear as the group is under pressure from President Donald Trump to lower prices. Meanwhile, the specter of expanding U.S. crude stockpiles has also been haunting the market.
After reaching a four-year high in early October, crude has collapsed more than 30 percent, marking the worst crash since 2015. While oversupply concerns were fueled by American exemptions on sanctioned Iranian oil, a trade dispute between the U.S. and China has threatened to hurt demand. Oil has remained in an oversold territory this month, and seesawed near the $50 threshold this week -- a key budgetary marker for shale drillers.
Don’t Punish America for Saudi Arabia’s Crimes - Bloomberg
Don’t Punish America for Saudi Arabia’s Crimes - Bloomberg:
If you want to understand why the Senate voted this week to move forward with a resolution ending U.S. support for the Saudi-led war in Yemen, read the speech that Bob Corker delivered from the Senate floor on Wednesday.
The outgoing chairman of the Senate Foreign Relations Committee has long been an ally of Saudi Arabia in Washington. And yet Corker voted to move the Yemen resolution out of his committee. Mind you, he didn’t say he would be supporting it when it comes to the floor for a vote. Rather, he was sending a message to the Trump administration to come down harder on Saudi crown prince Mohammed bin Salman for his role in the murder of Washington Post columnist Jamal Khashoggi.
Corker was disappointed by the briefing he and his colleagues received from Secretary of Defense James Mattis and Secretary of State Mike Pompeo. Some of this is about procedure: Many senators wanted a briefing about Khashoggi from CIA director Gina Haspel. Some of this is about style: Many senators were infuriated by President Donald Trump’s statement on the crown prince’s unknowable culpability in the murder. Both objections beg the question: What does any of this have to do with Saudi Arabia’s war in Yemen?
If you want to understand why the Senate voted this week to move forward with a resolution ending U.S. support for the Saudi-led war in Yemen, read the speech that Bob Corker delivered from the Senate floor on Wednesday.
The outgoing chairman of the Senate Foreign Relations Committee has long been an ally of Saudi Arabia in Washington. And yet Corker voted to move the Yemen resolution out of his committee. Mind you, he didn’t say he would be supporting it when it comes to the floor for a vote. Rather, he was sending a message to the Trump administration to come down harder on Saudi crown prince Mohammed bin Salman for his role in the murder of Washington Post columnist Jamal Khashoggi.
Corker was disappointed by the briefing he and his colleagues received from Secretary of Defense James Mattis and Secretary of State Mike Pompeo. Some of this is about procedure: Many senators wanted a briefing about Khashoggi from CIA director Gina Haspel. Some of this is about style: Many senators were infuriated by President Donald Trump’s statement on the crown prince’s unknowable culpability in the murder. Both objections beg the question: What does any of this have to do with Saudi Arabia’s war in Yemen?
Oil Hinges on Saudi Dilemma: Bust Budget or Anger Trump? - Bloomberg
Oil Hinges on Saudi Dilemma: Bust Budget or Anger Trump? - Bloomberg:
The choice facing Saudi Arabia at next week’s OPEC meeting is dramatic: cut oil production and enrage Donald Trump, or keep pumping and risk ultra-low prices blowing up its economy.
For Mohammed bin Salman, the kingdom’s crown prince and day-to-day ruler, the dilemma has been sharpened by the murder of Jamal Khashoggi in the Saudi consulate in Istanbul. Under pressure from angry senators and other Washington power players, he needs Trump’s political protection.
Things will come to a head this weekend at the Group of 20 summit in Buenos Aires, a meeting that could shape the oil market in 2019 and affect everything from the war in Yemen to the share price of Exxon Mobil Corp. Vladimir Putin will also play a key role -- Russia and Saudi Arabia have spent the last two years working together to manage the oil market.
The choice facing Saudi Arabia at next week’s OPEC meeting is dramatic: cut oil production and enrage Donald Trump, or keep pumping and risk ultra-low prices blowing up its economy.
For Mohammed bin Salman, the kingdom’s crown prince and day-to-day ruler, the dilemma has been sharpened by the murder of Jamal Khashoggi in the Saudi consulate in Istanbul. Under pressure from angry senators and other Washington power players, he needs Trump’s political protection.
Things will come to a head this weekend at the Group of 20 summit in Buenos Aires, a meeting that could shape the oil market in 2019 and affect everything from the war in Yemen to the share price of Exxon Mobil Corp. Vladimir Putin will also play a key role -- Russia and Saudi Arabia have spent the last two years working together to manage the oil market.
Oil steady as expected OPEC cuts balance high inventory | Reuters
Oil steady as expected OPEC cuts balance high inventory | Reuters:
Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.
Both international oil benchmarks, North Sea Brent LCOc1 and U.S. light crude CLc1, have had their weakest month for more than 10 years in November, losing 28 percent and 30 percent respectively as global supply has outstripped demand.
Brent was up 25 cents at $59.76 a barrel by 0910 GMT. U.S. crude was unchanged at $51.45. Both contracts are up about 1 percent this week, the first weekly gains in almost two months.
Oil prices steadied on Friday as expectations that OPEC and Russia would agree some form of production cut next week balanced pressure from swelling inventories.
Both international oil benchmarks, North Sea Brent LCOc1 and U.S. light crude CLc1, have had their weakest month for more than 10 years in November, losing 28 percent and 30 percent respectively as global supply has outstripped demand.
Brent was up 25 cents at $59.76 a barrel by 0910 GMT. U.S. crude was unchanged at $51.45. Both contracts are up about 1 percent this week, the first weekly gains in almost two months.
Thursday 29 November 2018
Traded value recover in Dubai ahead of long holidays
Traded value recover in Dubai ahead of long holidays:
Traders on the Dubai bourse resorted to continued selling and preferred to hold cash and move on the sidelines ahead of an extended weekend, causing a fall in the Dubai index on Thursday.
Traded value jumped fourfold to Dh434 million from a daily average of Dh100 million. The Dubai Financial Market general index closed 0.61 per cent lower at 2,668.66.
“The four-day weekend ahead could keep investors on the sidelines to avoid any global risk impacts,” Issam Kassabieh, Senior Financial Analyst, Menacorp said. The G20 meeting will be held over the weekend in Argentina.
Traders on the Dubai bourse resorted to continued selling and preferred to hold cash and move on the sidelines ahead of an extended weekend, causing a fall in the Dubai index on Thursday.
Traded value jumped fourfold to Dh434 million from a daily average of Dh100 million. The Dubai Financial Market general index closed 0.61 per cent lower at 2,668.66.
“The four-day weekend ahead could keep investors on the sidelines to avoid any global risk impacts,” Issam Kassabieh, Senior Financial Analyst, Menacorp said. The G20 meeting will be held over the weekend in Argentina.
QSE inches near 10,400 level on strong buying in telecom shares
QSE inches near 10,400 level on strong buying in telecom shares:
The Qatar Stock Exchange on Thursday inched near 10,400 levels, having gained 35 points mainly on the back of strong buying in telecom segment.
Foreign funds were increasingly bullish and non-Qatari individuals as well as domestic and Gulf funds turned net buyers as the 20-stock Qatar Index settled 0.34% higher at 10,364.54 points.
Foreign institutions were increasingly net buyers in the market, which is up 21.6% year-to-date.
The Qatar Stock Exchange on Thursday inched near 10,400 levels, having gained 35 points mainly on the back of strong buying in telecom segment.
Foreign funds were increasingly bullish and non-Qatari individuals as well as domestic and Gulf funds turned net buyers as the 20-stock Qatar Index settled 0.34% higher at 10,364.54 points.
Foreign institutions were increasingly net buyers in the market, which is up 21.6% year-to-date.
Oil Advances as Russia Shows Willingness to Join Saudis On Cuts - Bloomberg
Oil Advances as Russia Shows Willingness to Join Saudis On Cuts - Bloomberg:
Oil climbed for the first time in three days as Russia expressed a willingness to join Saudi Arabia in curbing global supplies.
Russia wants more predictability and “smooth price dynamics” in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina. The remarks presaged a G-20 summit where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.
West Texas Intermediate crude has fallen 21 percent this month, on track for its its worst monthly showing in a decade. Yet after sliding below $50 a barrel earlier on Thursday -- a key budgetary marker for U.S. shale drillers -- some traders saw an oversold market, said Bart Melek, head commodity strategist at TD Securities in Toronto.
Oil climbed for the first time in three days as Russia expressed a willingness to join Saudi Arabia in curbing global supplies.
Russia wants more predictability and “smooth price dynamics” in world crude markets, Deputy Foreign Minister Sergei Ryabkov said in an interview in Argentina. The remarks presaged a G-20 summit where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are expected to discuss oil supplies ahead of a broader meeting of top petroleum exporters next week.
West Texas Intermediate crude has fallen 21 percent this month, on track for its its worst monthly showing in a decade. Yet after sliding below $50 a barrel earlier on Thursday -- a key budgetary marker for U.S. shale drillers -- some traders saw an oversold market, said Bart Melek, head commodity strategist at TD Securities in Toronto.
OPEC Meeting Can't Reverse Larger Trend to Lower Oil Prices - Bloomberg
OPEC Meeting Can't Reverse Larger Trend to Lower Oil Prices - Bloomberg:
Some of us are starting to associate turkey with low oil prices.
Just four years ago, on Thanksgiving Day in 2014, OPEC held a meeting in Vienna, the outcome of which set off a dramatic slide in oil prices. The price of Brent crude dropped $6 a barrel, or 8 percent, in just the 24 hours after OPEC announced the outcome of its meeting. This Thanksgiving, there was no OPEC gathering, but on Friday, the Brent price still slid nearly $4, or 6 percent, to its lowest mark in a year. Although the price has since stabilized, we cannot rule out a further slip in the weeks or months ahead.
The recent decrease in oil prices is what academics like to call “over-determined.” Despite recent jitters about a looming spike in the price of oil, both supply and demand have conspired to bring down prices. New production has come on line in recent months, be it from Clair Ridge (BP’s new mega-oil field in the North Sea), record amounts of shale oil coming out of the U.S., or simply production increases by Saudi Arabia, Iraq and Russia. Other developments — like the hope to resolve infrastructure bottlenecks in the U.S. and a new agreement between Baghdad and the Kurds to allow the restart of exports from Kirkuk’s contested oil fields — promise even more oil in the months ahead. Unexpected sanctions waivers issued by the Trump administration mean Iranian oil will not be squeezed out of global markets just yet. Meanwhile, the robust growth in oil demand of the past years appears to be easing, especially with trade frictions looking persistent.
Some of us are starting to associate turkey with low oil prices.
Just four years ago, on Thanksgiving Day in 2014, OPEC held a meeting in Vienna, the outcome of which set off a dramatic slide in oil prices. The price of Brent crude dropped $6 a barrel, or 8 percent, in just the 24 hours after OPEC announced the outcome of its meeting. This Thanksgiving, there was no OPEC gathering, but on Friday, the Brent price still slid nearly $4, or 6 percent, to its lowest mark in a year. Although the price has since stabilized, we cannot rule out a further slip in the weeks or months ahead.
The recent decrease in oil prices is what academics like to call “over-determined.” Despite recent jitters about a looming spike in the price of oil, both supply and demand have conspired to bring down prices. New production has come on line in recent months, be it from Clair Ridge (BP’s new mega-oil field in the North Sea), record amounts of shale oil coming out of the U.S., or simply production increases by Saudi Arabia, Iraq and Russia. Other developments — like the hope to resolve infrastructure bottlenecks in the U.S. and a new agreement between Baghdad and the Kurds to allow the restart of exports from Kirkuk’s contested oil fields — promise even more oil in the months ahead. Unexpected sanctions waivers issued by the Trump administration mean Iranian oil will not be squeezed out of global markets just yet. Meanwhile, the robust growth in oil demand of the past years appears to be easing, especially with trade frictions looking persistent.
Saudi Contractor Said to Have Defaulted on $2 Billion of Debt - Bloomberg
Saudi Contractor Said to Have Defaulted on $2 Billion of Debt - Bloomberg:
One of Saudi Arabia’s major contractors defaulted on almost $2 billion after a falling out among its owners and delays in payments from the government, according to people with knowledge of the matter.
The Saudi unit of Cyprus-based Joannou & Paraskevaides Group defaulted on about 7 billion riyals ($1.9 billion) in bank loans about two months ago, said the people, asking not to be identified as the information is private. The defaults are largely the result of problems getting paid by the Ministry of Interior, the people said.
Lenders, which include Arab National Bank, Alawwal Bank, Banque Saudi Fransi, Emirates NBD PJSC, Saudi British Bank and Samba Financial Group, don’t expect to recover much of the money, the people said.
One of Saudi Arabia’s major contractors defaulted on almost $2 billion after a falling out among its owners and delays in payments from the government, according to people with knowledge of the matter.
The Saudi unit of Cyprus-based Joannou & Paraskevaides Group defaulted on about 7 billion riyals ($1.9 billion) in bank loans about two months ago, said the people, asking not to be identified as the information is private. The defaults are largely the result of problems getting paid by the Ministry of Interior, the people said.
Lenders, which include Arab National Bank, Alawwal Bank, Banque Saudi Fransi, Emirates NBD PJSC, Saudi British Bank and Samba Financial Group, don’t expect to recover much of the money, the people said.
Shares in Doha Bank drop 2.6 percent in November following MSCI decision, despite late rebound | ZAWYA MENA Edition
Shares in Doha Bank drop 2.6 percent in November following MSCI decision, despite late rebound | ZAWYA MENA Edition:
Shares in Doha Bank, Qatar’s fifth-biggest lender, have dropped 2.6 percent during the month of November, as index compiler MSCI moved the stock its small cap index.
“Doha Bank’s removal from MSCI EM triggered more than QAR300m of selling by index-related investors and has unsurprisingly pressured the stock,” Akber Khan, senior director of asset management at Al Rayan Investment, told Zawya by email.
Index compiler MSCI announced the results of its 2018 semi-annual index review on November 13, which saw Doha Bank removed from the MSCI Qatar Index and moved to a small cap index.
Shares in Doha Bank, Qatar’s fifth-biggest lender, have dropped 2.6 percent during the month of November, as index compiler MSCI moved the stock its small cap index.
“Doha Bank’s removal from MSCI EM triggered more than QAR300m of selling by index-related investors and has unsurprisingly pressured the stock,” Akber Khan, senior director of asset management at Al Rayan Investment, told Zawya by email.
Index compiler MSCI announced the results of its 2018 semi-annual index review on November 13, which saw Doha Bank removed from the MSCI Qatar Index and moved to a small cap index.
As rift lingers with neighbors, Qatar ramps up air and seapower | Reuters
As rift lingers with neighbors, Qatar ramps up air and seapower | Reuters:
Qatar will more than double its naval forces by 2025 as a massive new base comes online and it expands a national service program amid a protracted dispute with neighbors which it says requires greater self-reliance.
Like its larger neighbors, the tiny but gas-rich state has used its massive wealth to launch a sweeping modernization of its military, pouring tens of billions of dollars into some of the world’s most advanced weapons systems.
Qatari defense officials said the buildup has been planned for several years, and predates a Saudi Arabia-led political and economic boycott imposed since June 2017 over allegations that Doha supports terrorism - something which Qatar denies.
Qatar will more than double its naval forces by 2025 as a massive new base comes online and it expands a national service program amid a protracted dispute with neighbors which it says requires greater self-reliance.
Like its larger neighbors, the tiny but gas-rich state has used its massive wealth to launch a sweeping modernization of its military, pouring tens of billions of dollars into some of the world’s most advanced weapons systems.
Qatari defense officials said the buildup has been planned for several years, and predates a Saudi Arabia-led political and economic boycott imposed since June 2017 over allegations that Doha supports terrorism - something which Qatar denies.
Bidders line up for UAE-based Stanford Marine Group - sources | Reuters
Bidders line up for UAE-based Stanford Marine Group - sources | Reuters:
Gulf Navigation Holding, Tristar Group, Hineni Capital and BT Investment are among bidders for Dubai-based marine services firm Stanford Marine Group (SMG), sources familiar with the matter said. Banks now control SMG, which operates offshore supply vessels for the oil and gas industry, after it struggled to meet terms of its debt obligations following a steep fall in chartering rates.
Neither SMG nor the bidders named by the sources responded to requests for comment.
SMG is 51 percent owned by a fund managed by Dubai-based private equity firm Abraaj, which is in provisional liquidation after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Gulf Navigation Holding, Tristar Group, Hineni Capital and BT Investment are among bidders for Dubai-based marine services firm Stanford Marine Group (SMG), sources familiar with the matter said. Banks now control SMG, which operates offshore supply vessels for the oil and gas industry, after it struggled to meet terms of its debt obligations following a steep fall in chartering rates.
Neither SMG nor the bidders named by the sources responded to requests for comment.
SMG is 51 percent owned by a fund managed by Dubai-based private equity firm Abraaj, which is in provisional liquidation after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Oil rises after Russia leans towards output cut | Reuters
Oil rises after Russia leans towards output cut | Reuters:
Oil reversed course and rose as much as 3 percent on Thursday, after industry sources said Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week.
Prices in November were down nearly 22 percent so far, set for the biggest monthly fall since the depths of the financial crisis in 2008.
A steady rise in crude supply from the United States, now the world’s top producer, has pressured prices along with Saudi Arabia’s insistence that it will not cut output on its own to stabilize the market. Brent crude slid early to another 2018 low below $58 a barrel.
Oil reversed course and rose as much as 3 percent on Thursday, after industry sources said Russia had accepted the need to cut production, together with OPEC ahead of its meeting next week.
Prices in November were down nearly 22 percent so far, set for the biggest monthly fall since the depths of the financial crisis in 2008.
A steady rise in crude supply from the United States, now the world’s top producer, has pressured prices along with Saudi Arabia’s insistence that it will not cut output on its own to stabilize the market. Brent crude slid early to another 2018 low below $58 a barrel.
MIDEAST STOCKS-FAB drags down Abu Dhabi but banks boost Saudi | Reuters
MIDEAST STOCKS-FAB drags down Abu Dhabi but banks boost Saudi | Reuters:
Abu Dhabi’s stock market fell sharply to a four-month low on Thursday because of a slide in shares of First Abu Dhabi Bank, the United Arab Emirates’ largest lender, just before MSCI doubled its weighting of the stock in its indexes.
The Abu Dhabi index lost 2.3 percent amid record volume in FAB, which slumped 3 percent. A total of 57.9 million shares in the bank traded, by far the highest since its listing in April 2017.
MSCI decided on the weighting increase in its semi-annual index review in mid-November. Arqaam Capital estimated the increase, which takes effect at the end of this week, would attract $524 million of passive funds into the stock.
Abu Dhabi’s stock market fell sharply to a four-month low on Thursday because of a slide in shares of First Abu Dhabi Bank, the United Arab Emirates’ largest lender, just before MSCI doubled its weighting of the stock in its indexes.
The Abu Dhabi index lost 2.3 percent amid record volume in FAB, which slumped 3 percent. A total of 57.9 million shares in the bank traded, by far the highest since its listing in April 2017.
MSCI decided on the weighting increase in its semi-annual index review in mid-November. Arqaam Capital estimated the increase, which takes effect at the end of this week, would attract $524 million of passive funds into the stock.
Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg
Oil Drops Below $50 on Concern OPEC+ Won't Cut Output Decisively - Bloomberg:
Oil dropped below $50 a barrel in New York for the first time in more than a year as traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market.
All eyes are on this weekend’s G20 summit in Argentina, where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are likely to discuss how to coordinate oil policy, but both leaders have reasons for caution. Shielded by a budget surplus and a weak ruble, Putin said yesterday current prices suit Russia fine. The crown prince, under pressure after the killing of Jamal Khashoggi, can’t afford to alienate President Donald Trump.
Beyond politics, production from Saudi Arabia and America’s shale mean inventories are starting to rise again. U.S. crude stockpiles have now increased for 10 consecutive weeks. OPEC, Russia and other producers are due to meet in Vienna next week to discuss production policy for 2019.
Oil dropped below $50 a barrel in New York for the first time in more than a year as traders fretted that OPEC won’t act decisively to clear a resurgent surplus in the global crude market.
All eyes are on this weekend’s G20 summit in Argentina, where Russia’s Vladimir Putin and Saudi Arabia’s Mohammed bin Salman are likely to discuss how to coordinate oil policy, but both leaders have reasons for caution. Shielded by a budget surplus and a weak ruble, Putin said yesterday current prices suit Russia fine. The crown prince, under pressure after the killing of Jamal Khashoggi, can’t afford to alienate President Donald Trump.
Beyond politics, production from Saudi Arabia and America’s shale mean inventories are starting to rise again. U.S. crude stockpiles have now increased for 10 consecutive weeks. OPEC, Russia and other producers are due to meet in Vienna next week to discuss production policy for 2019.
Now Is the Time to Enter Dubai Property Market, Kanoo Group Says - Bloomberg
Now Is the Time to Enter Dubai Property Market, Kanoo Group Says - Bloomberg:
The downturn in Dubai’s property market is coming to an end, making it a good time to invest, the head of a Gulf family conglomerate said.
Real estate prices are stable and in some cases are rising, Mishal Kanoo, chairman of Bahrain-based Kanoo Group, said in a Bloomberg TV interview.
“When people perceive something to be low, this is the ideal time to come in,” Kanoo said. “We are at the beginning of an upward cycle, which you will see the effect of either this quarter or next quarter.” His company has interests in shipping, travel, chemicals, oil and gas.
The downturn in Dubai’s property market is coming to an end, making it a good time to invest, the head of a Gulf family conglomerate said.
Real estate prices are stable and in some cases are rising, Mishal Kanoo, chairman of Bahrain-based Kanoo Group, said in a Bloomberg TV interview.
“When people perceive something to be low, this is the ideal time to come in,” Kanoo said. “We are at the beginning of an upward cycle, which you will see the effect of either this quarter or next quarter.” His company has interests in shipping, travel, chemicals, oil and gas.
Dubai Hotel Mogul Habtoor Says Don't Build More Hotels in City - Bloomberg
Dubai Hotel Mogul Habtoor Says Don't Build More Hotels in City - Bloomberg:
Khalaf Al Habtoor, the Dubai billionaire who added 1,600 hotel rooms to the city through one project alone, said the market is now saturated and he’s looking to expand elsewhere.
“I would not recommend any expansion in hotels at all to anybody,” Al Habtoor said in an interview with Bloomberg TV. The group’s beach properties are doing well, “but with very low rates.” His city hotel occupancy is fluctuating and “the rates are not great,” he said.
The tycoon said he’s currently deciding whether it’s best to build or acquire between seven and 10 schools. He’s also studying building a specialized hospital with about 100 beds. Al Habtoor is planning to fund the investments through a mix of debt and equity.
Khalaf Al Habtoor, the Dubai billionaire who added 1,600 hotel rooms to the city through one project alone, said the market is now saturated and he’s looking to expand elsewhere.
“I would not recommend any expansion in hotels at all to anybody,” Al Habtoor said in an interview with Bloomberg TV. The group’s beach properties are doing well, “but with very low rates.” His city hotel occupancy is fluctuating and “the rates are not great,” he said.
The tycoon said he’s currently deciding whether it’s best to build or acquire between seven and 10 schools. He’s also studying building a specialized hospital with about 100 beds. Al Habtoor is planning to fund the investments through a mix of debt and equity.
Mideast Stocks: Abu Dhabi recovers slightly, Gulf inches up | ZAWYA MENA Edition
Mideast Stocks: Abu Dhabi recovers slightly, Gulf inches up | ZAWYA MENA Edition:
The Abu Dhabi stock market recovered some losses early on Thursday as blue chips rebounded. Other major Gulf markets inched up in quiet trade, getting only a minor boost from Wall Street's sharp rally because oil prices remain low.
Abu Dhabi's index added 0.5 percent, after falling 1.6 percent in the last session. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, gained 1.1 percent and Aldar Properties increased 1.9 percent.
Saudi Arabia's index inched up 0.3 percent in the first hour, with Saudi Basic Industries rising 0.7 percent and Alinma Bank adding 0.8 percent.
The Abu Dhabi stock market recovered some losses early on Thursday as blue chips rebounded. Other major Gulf markets inched up in quiet trade, getting only a minor boost from Wall Street's sharp rally because oil prices remain low.
Abu Dhabi's index added 0.5 percent, after falling 1.6 percent in the last session. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, gained 1.1 percent and Aldar Properties increased 1.9 percent.
Saudi Arabia's index inched up 0.3 percent in the first hour, with Saudi Basic Industries rising 0.7 percent and Alinma Bank adding 0.8 percent.
COLUMN-Crude oil focuses on Trump, Putin, Bin Salman nexus, but China looms: Russell | Reuters
COLUMN-Crude oil focuses on Trump, Putin, Bin Salman nexus, but China looms: Russell | Reuters:
The crude oil market is likely to be fixated in coming days on the interactions of U.S. President Donald Trump, his Russian counterpart Vladimir Putin and Saudi Arabia’s embattled Crown Prince Mohammed bin Salman at this weekend’s G20 meeting.
Throw in a dash of U.S.-China trade politics at a much anticipated dinner on Saturday between Trump and President Xi Jingping and the G20 gathering in Buenos Aires is potentially going to deliver a smorgasbord of juicy headlines to drive crude prices.
While the focus of crude oil market participants is correct, and indeed they have little choice but to focus on the machinations of Trump, Putin and Bin Salman, there is always a risk of placing too much emphasis on the politics of oil.
The crude oil market is likely to be fixated in coming days on the interactions of U.S. President Donald Trump, his Russian counterpart Vladimir Putin and Saudi Arabia’s embattled Crown Prince Mohammed bin Salman at this weekend’s G20 meeting.
Throw in a dash of U.S.-China trade politics at a much anticipated dinner on Saturday between Trump and President Xi Jingping and the G20 gathering in Buenos Aires is potentially going to deliver a smorgasbord of juicy headlines to drive crude prices.
While the focus of crude oil market participants is correct, and indeed they have little choice but to focus on the machinations of Trump, Putin and Bin Salman, there is always a risk of placing too much emphasis on the politics of oil.
Mideast funds become more defensive after oil prices tumble: Reuters poll | Reuters
Mideast funds become more defensive after oil prices tumble: Reuters poll | Reuters:
Middle East funds have become more defensive after November’s oil price plunge and now expect on balance to trim their equities exposure slightly while increasing their holdings of fixed income, a monthly Reuters poll showed on Thursday.
Hit by oversupply worries, Brent oil LCOc1 tumbled to below $60 a barrel at the end of this month from around $75 at the end of October and peaks around $85 in early October.
The poll of 13 leading regional fund managers, conducted over the past week, found 15 percent now expect to raise equity allocations in the next three months and 23 percent to reduce them.
Middle East funds have become more defensive after November’s oil price plunge and now expect on balance to trim their equities exposure slightly while increasing their holdings of fixed income, a monthly Reuters poll showed on Thursday.
Hit by oversupply worries, Brent oil LCOc1 tumbled to below $60 a barrel at the end of this month from around $75 at the end of October and peaks around $85 in early October.
The poll of 13 leading regional fund managers, conducted over the past week, found 15 percent now expect to raise equity allocations in the next three months and 23 percent to reduce them.
Wednesday 28 November 2018
The Real Cost Of Saudi Arabia’s Gas Ambitions | OilPrice.com
The Real Cost Of Saudi Arabia’s Gas Ambitions | OilPrice.com:
The world’s liquefied natural gas (LNG) market will become even more competitive within the next several years. Saudi Arabia, the world’s largest oil exporter, is now vying to become a major LNG exporter, joining the ranks of LNG heavyweights Qatar, Australia and the U.S.
State-owned Saudi Aramco’s chief executive said yesterday that the company needs $150 billion worth of investments over the next decade as the company plans to increase output and become an exporter. The company is also pushing ahead with gas development plans to offset domestic oil consumption to provide more oil available for export, a Reuters report said. Saudi Arabia also plans to produce 10 percent of its power from renewable sources in the next five to six years to diversify its energy mix and free up even more crude oil for export purposes.
The kingdom, and OPEC de facto leader, is developing around 30 solar and wind projects targeting 9.5 GW of renewable energy by 2023, as well as plans to build 17.6 GW of nuclear capacity by 2032.
The world’s liquefied natural gas (LNG) market will become even more competitive within the next several years. Saudi Arabia, the world’s largest oil exporter, is now vying to become a major LNG exporter, joining the ranks of LNG heavyweights Qatar, Australia and the U.S.
State-owned Saudi Aramco’s chief executive said yesterday that the company needs $150 billion worth of investments over the next decade as the company plans to increase output and become an exporter. The company is also pushing ahead with gas development plans to offset domestic oil consumption to provide more oil available for export, a Reuters report said. Saudi Arabia also plans to produce 10 percent of its power from renewable sources in the next five to six years to diversify its energy mix and free up even more crude oil for export purposes.
The kingdom, and OPEC de facto leader, is developing around 30 solar and wind projects targeting 9.5 GW of renewable energy by 2023, as well as plans to build 17.6 GW of nuclear capacity by 2032.
Khashoggi Case Makes MBS and Saudi Arabia 'Toxic,' Analyst Says - Bloomberg
Khashoggi Case Makes MBS and Saudi Arabia 'Toxic,' Analyst Says - Bloomberg:
Saudi Arabia's Crown Prince Mohammed bin Salman is miscalculating that the scandal over his role in the murder of a Washington Post columnist will fade away, starting with his presence this weekend at the G-20 meeting of global leaders in Argentina.
"He'll have his picture with world leaders and say, 'See, it's all coming back to normal,'" said Bruce Riedel, a leading U.S. expert on the Middle East. "He's wrong. Saudi Arabia and MBS now are toxic, and will be as long as he's in power."
Riedel's assessment is harsher on the crown prince than that of most other analysts, but his credentials make it well worth considering. Now a senior fellow at the Brookings Institution, he was for three decades a top Middle East expert at the Central Intelligence Agency and the White House. He wrote a book last year on U.S.-Saudi relations, "Kings and Presidents: Saudi Arabia and the United States Since FDR."
Saudi Arabia's Crown Prince Mohammed bin Salman is miscalculating that the scandal over his role in the murder of a Washington Post columnist will fade away, starting with his presence this weekend at the G-20 meeting of global leaders in Argentina.
"He'll have his picture with world leaders and say, 'See, it's all coming back to normal,'" said Bruce Riedel, a leading U.S. expert on the Middle East. "He's wrong. Saudi Arabia and MBS now are toxic, and will be as long as he's in power."
Riedel's assessment is harsher on the crown prince than that of most other analysts, but his credentials make it well worth considering. Now a senior fellow at the Brookings Institution, he was for three decades a top Middle East expert at the Central Intelligence Agency and the White House. He wrote a book last year on U.S.-Saudi relations, "Kings and Presidents: Saudi Arabia and the United States Since FDR."
Putin Says $60 Oil `Absolutely Fine,' Praises Saudi Crown Prince - Bloomberg
Putin Says $60 Oil `Absolutely Fine,' Praises Saudi Crown Prince - Bloomberg:
Russian President Vladimir Putin said current oil prices around $60 a barrel are “absolutely fine” for his country, adding that Moscow is ready if needed to work with OPEC on stabilizing the market after a major drop. Two weeks ago, Putin said a level of $70 suited Russia.
He pointed to the success of the OPEC+ agreement on output cuts, singling out Saudi Crown Prince Mohammed bin Salman for praise.
“This is effectively an achievement of Saudi Arabia and the crown prince, he was the initiator of this work,” Putin told an investment conference in Moscow on Wednesday. “It led to positive results.”
Russian President Vladimir Putin said current oil prices around $60 a barrel are “absolutely fine” for his country, adding that Moscow is ready if needed to work with OPEC on stabilizing the market after a major drop. Two weeks ago, Putin said a level of $70 suited Russia.
He pointed to the success of the OPEC+ agreement on output cuts, singling out Saudi Crown Prince Mohammed bin Salman for praise.
“This is effectively an achievement of Saudi Arabia and the crown prince, he was the initiator of this work,” Putin told an investment conference in Moscow on Wednesday. “It led to positive results.”
Exclusive: Abraaj founder Naqvi pitches last-ditch rescue bid to investors | Reuters
Exclusive: Abraaj founder Naqvi pitches last-ditch rescue bid to investors | Reuters:
Arif Naqvi, founder of troubled buyout firm Abraaj, is making a last-ditch effort to rescue the remaining business of what was once one of the largest investors in emerging markets.
The $13.6 billion company crumbled this year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a healthcare fund.
Naqvi has met limited partners and creditors in an effort to win back their support for a plan to restructure the debt of Abraaj Holdings and some of its older funds to avert liquidation for the Dubai-based firm, two sources said.
Arif Naqvi, founder of troubled buyout firm Abraaj, is making a last-ditch effort to rescue the remaining business of what was once one of the largest investors in emerging markets.
The $13.6 billion company crumbled this year following turmoil triggered by a row with investors, including the Gates Foundation, over the use of their money in a healthcare fund.
Naqvi has met limited partners and creditors in an effort to win back their support for a plan to restructure the debt of Abraaj Holdings and some of its older funds to avert liquidation for the Dubai-based firm, two sources said.
Bahrain readies austerity push, keeping wary eye on opposition | Reuters
Bahrain readies austerity push, keeping wary eye on opposition | Reuters:
Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.
The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.
But Bahrain, a cornerstone of U.S. military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.
Bahrain’s new parliament is expected to swiftly pass sensitive austerity measures needed to secure a Gulf aid package, but the U.S.-allied government may implement the belt-tightening in stages to avoid provoking public anger.
The Sunni-led authorities have kept a lid on dissent since a Shi’ite uprising in the island kingdom in 2011 was quelled with the help of neighboring Saudi Arabia, which fears instability in Bahrain will encourage unrest among its own Shi’ite minority.
But Bahrain, a cornerstone of U.S. military power in the region, could face a fresh test of its ability to curb opposition unrest as it implements reforms to subsidies and pensions required by Gulf Arab donors to avert a debt crisis.
France, Germany taking charge of EU-Iran trade move but oil sales in doubt | Reuters
France, Germany taking charge of EU-Iran trade move but oil sales in doubt | Reuters:
France and Germany are to take joint responsibility for an EU-Iran trade mechanism to minimize the risk of U.S. punishment but few now believe it will cover oil sales, heightening fears for the fate of the landmark international nuclear deal with Iran.
Diplomats said the French-German gambit is a “safety-in-numbers” tactic to overcome the refusal of individual EU states to host the mechanism to sidestep the risk of being targeted by the revived U.S. sanctions regime against Iran.
But with U.S. threats of retribution for sanctions-busting unrelenting, they told Reuters that the goals of the nascent trade mechanism could be scaled back to encompass only less sensitive items such as humanitarian and food products.
France and Germany are to take joint responsibility for an EU-Iran trade mechanism to minimize the risk of U.S. punishment but few now believe it will cover oil sales, heightening fears for the fate of the landmark international nuclear deal with Iran.
Diplomats said the French-German gambit is a “safety-in-numbers” tactic to overcome the refusal of individual EU states to host the mechanism to sidestep the risk of being targeted by the revived U.S. sanctions regime against Iran.
But with U.S. threats of retribution for sanctions-busting unrelenting, they told Reuters that the goals of the nascent trade mechanism could be scaled back to encompass only less sensitive items such as humanitarian and food products.
Oil falls below $60/bbl after 10th straight U.S. crude build | Reuters
Oil falls below $60/bbl after 10th straight U.S. crude build | Reuters:
Oil fell below $60 per barrel on Wednesday after U.S. crude inventories rose for the 10th straight week amid concerns about excess global supply.
Prices, however, rose from the day’s lows in tandem with a rally in stocks after a speech from Federal Reserve Chair Jerome Powell, who said risks to the U.S. economy are relatively balanced, suggesting the pace of interest-rate hikes may slow in coming months.
In the last three days, oil investors have been more willing to buy on declines after a rout that took crude futures down by 30 percent since the beginning of October.
Oil fell below $60 per barrel on Wednesday after U.S. crude inventories rose for the 10th straight week amid concerns about excess global supply.
Prices, however, rose from the day’s lows in tandem with a rally in stocks after a speech from Federal Reserve Chair Jerome Powell, who said risks to the U.S. economy are relatively balanced, suggesting the pace of interest-rate hikes may slow in coming months.
In the last three days, oil investors have been more willing to buy on declines after a rout that took crude futures down by 30 percent since the beginning of October.
MIDEAST STOCKS-Banks drag down Abu Dhabi, petrochems lift Saudi index | Reuters
MIDEAST STOCKS-Banks drag down Abu Dhabi, petrochems lift Saudi index | Reuters:
Banks led the Abu Dhabi stock market sharply lower on Wednesday, while Saudi Arabia gained on the back of a rise in petrochemical shares.
Abu Dhabi’s index fell 1.6 percent, with much of the loss coming in the final 10 minutes of trade. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, declined 2.6 percent and Abu Dhabi Commercial Bank shed 2.2 percent.
But Abu Dhabi National Hotels gained 6.9 percent. It said on Tuesday that it had acquired five hotels in Dubai from Emaar Properties, which edged up 0.2 percent.
Banks led the Abu Dhabi stock market sharply lower on Wednesday, while Saudi Arabia gained on the back of a rise in petrochemical shares.
Abu Dhabi’s index fell 1.6 percent, with much of the loss coming in the final 10 minutes of trade. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, declined 2.6 percent and Abu Dhabi Commercial Bank shed 2.2 percent.
But Abu Dhabi National Hotels gained 6.9 percent. It said on Tuesday that it had acquired five hotels in Dubai from Emaar Properties, which edged up 0.2 percent.
Abu Dhabi's New Move to Spur Economy: Waiving, Slashing Fees - Bloomberg
Abu Dhabi's New Move to Spur Economy: Waiving, Slashing Fees - Bloomberg:
Abu Dhabi is on another push to stimulate its economy.
This time the sheikhdom is waiving some business fees and slashing others after slowing growth in the non-oil economy has already pushed the United Arab Emirates to introduce a slew of measures, including longer-term visas for expatriates.
Abu Dhabi, the capital of the U.A.E., late Tuesday exempted private-sector companies from economic license fees for two years, waived municipal fees on 75 basic services and reduced others by 10 percent to 15 percent, state-news agency WAM reported. The changes take effect Dec. 1.
Abu Dhabi is on another push to stimulate its economy.
This time the sheikhdom is waiving some business fees and slashing others after slowing growth in the non-oil economy has already pushed the United Arab Emirates to introduce a slew of measures, including longer-term visas for expatriates.
Abu Dhabi, the capital of the U.A.E., late Tuesday exempted private-sector companies from economic license fees for two years, waived municipal fees on 75 basic services and reduced others by 10 percent to 15 percent, state-news agency WAM reported. The changes take effect Dec. 1.
Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg
Oil Pares Gains Before U.S. Inventory Data, Saudi-Russia Talks - Bloomberg:
Oil pared gains as traders awaited weekly U.S. inventory data and any signs of whether Saudi Arabia and Russia will take steps to prevent a global surplus.
Futures were 0.2 percent lower in New York after rising as much as 1.9 percent. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will meet at the Group of 20 summit in Argentina and may discuss oil markets before OPEC and its allies review output policy next week in Vienna. U.S. government data will probably show that crude inventories increased by 1 million barrels last week, according to a Bloomberg survey, while an industry report showed they rose by 3.45 million.
“A significant production cut on the part of OPEC and its allied non-OPEC producers at their meeting next week in Vienna will thus be needed to re-balance the oil market next year and ensure that stocks do not rise any further,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
Oil pared gains as traders awaited weekly U.S. inventory data and any signs of whether Saudi Arabia and Russia will take steps to prevent a global surplus.
Futures were 0.2 percent lower in New York after rising as much as 1.9 percent. Russian President Vladimir Putin and Saudi Crown Prince Mohammed bin Salman will meet at the Group of 20 summit in Argentina and may discuss oil markets before OPEC and its allies review output policy next week in Vienna. U.S. government data will probably show that crude inventories increased by 1 million barrels last week, according to a Bloomberg survey, while an industry report showed they rose by 3.45 million.
“A significant production cut on the part of OPEC and its allied non-OPEC producers at their meeting next week in Vienna will thus be needed to re-balance the oil market next year and ensure that stocks do not rise any further,” said Carsten Fritsch, an analyst at Commerzbank AG in Frankfurt.
Russian fund, UAE's Mubadala, Saudi Arabia in talks on drilling firm stake | Reuters
Russian fund, UAE's Mubadala, Saudi Arabia in talks on drilling firm stake | Reuters:
Russia’s sovereign wealth fund, Mubadala of the United Arab Emirates and Saudi Arabia are in talks to buy a 16 percent stake in Russian oil drilling firm Eurasia Drilling, the head of the Russian fund said on Wednesday.
The deal is awaiting approval from a government commission, Kirill Dmitriev, head of the Russian Direct Investment Fund, said at a conference in Moscow.
Russia’s sovereign wealth fund, Mubadala of the United Arab Emirates and Saudi Arabia are in talks to buy a 16 percent stake in Russian oil drilling firm Eurasia Drilling, the head of the Russian fund said on Wednesday.
The deal is awaiting approval from a government commission, Kirill Dmitriev, head of the Russian Direct Investment Fund, said at a conference in Moscow.
Falih says Saudi Arabia won't cut oil output alone | Reuters
Falih says Saudi Arabia won't cut oil output alone | Reuters:
Saudi Energy Minister Khalid al-Falih said on Wednesday his country would not cut oil output on its own to stabilise the market, as OPEC peer Nigeria said it was too early to signal whether it would take part in any decision to reduce production.
Falih was in Abuja for a meeting with Nigerian oil minister Emmanuel Ibe Kachikwu. The Saudi minister said signals from fellow OPEC members Iraq, Nigeria and Libya were positive ahead of the Dec. 6 OPEC meeting in Vienna as all ministers were keen to bring back stability to oil markets.
Kachikwu said it was too early to say whether Nigeria would participate in any cuts.
Saudi Energy Minister Khalid al-Falih said on Wednesday his country would not cut oil output on its own to stabilise the market, as OPEC peer Nigeria said it was too early to signal whether it would take part in any decision to reduce production.
Falih was in Abuja for a meeting with Nigerian oil minister Emmanuel Ibe Kachikwu. The Saudi minister said signals from fellow OPEC members Iraq, Nigeria and Libya were positive ahead of the Dec. 6 OPEC meeting in Vienna as all ministers were keen to bring back stability to oil markets.
Kachikwu said it was too early to say whether Nigeria would participate in any cuts.
Mideast Stocks: Dubai rebounds slightly, most of Gulf quiet | ZAWYA MENA Edition
Mideast Stocks: Dubai rebounds slightly, most of Gulf quiet | ZAWYA MENA Edition:
The Dubai stock market inched up early on Wednesday after sinking to a 34-month low in the last session, while most major Gulf marketswere little changed.
The Dubai index, which had lost 1.0 percent on Tuesday, added 0.4 percent on Wednesday morning with the emirate's largest lender, Emirates NBD, rising 2.1 percent.
But developer Union Properties , which has been hit by Dubai's weak real estate market, dived to a new 34-month low, dropping 7.0 percent.
The Dubai stock market inched up early on Wednesday after sinking to a 34-month low in the last session, while most major Gulf marketswere little changed.
The Dubai index, which had lost 1.0 percent on Tuesday, added 0.4 percent on Wednesday morning with the emirate's largest lender, Emirates NBD, rising 2.1 percent.
But developer Union Properties , which has been hit by Dubai's weak real estate market, dived to a new 34-month low, dropping 7.0 percent.
UAE financial regulators reach agreement on licensing, promoting investment funds | ZAWYA MENA Edition
UAE financial regulators reach agreement on licensing, promoting investment funds | ZAWYA MENA Edition:
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) announced today that they had reached an agreement on facilitating the licensing of domestic funds by each authority for promotion across the UAE.
The three authorities signed the regulatory agreement in Dubai in the presence of Sultan bin Saeed Al Mansouri, Minister of Economy, and the SCA Board Chairman, and Ahmed Ali Al Sayegh, Minister of State, and Chairman of the ADGM. The agreement was entered into by Dr. Obaid Al Zaabi, CEO of the SCA, Bryan Stirewalt, Chief Executive of the DFSA, and Richard Teng, CEO of the FSRA.
Following the signing, Al Mansouri said: "Signing this agreement and implementing its provisions will foster the relations between the three authorities. It will facilitate the licensing and promoting of investment funds to attract foreign investment. It will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds." He added that the agreement implements passporting "mutual recognition" as a regulatory mechanism for promoting and supervising investment funds as well as encouraging foreign firms licensed in financial free zones in other countries to operate in the UAE market. The agreement contributes to the fulfilment of one of the main roles assigned to the SCA, which is to provide the appropriate environment for the investment of savings and funds in securities, in line with the objectives of the country’s economic development.
The Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) of the Dubai International Financial Centre (DIFC), and the Financial Services Regulatory Authority (FSRA) of the Abu Dhabi Global Market (ADGM) announced today that they had reached an agreement on facilitating the licensing of domestic funds by each authority for promotion across the UAE.
The three authorities signed the regulatory agreement in Dubai in the presence of Sultan bin Saeed Al Mansouri, Minister of Economy, and the SCA Board Chairman, and Ahmed Ali Al Sayegh, Minister of State, and Chairman of the ADGM. The agreement was entered into by Dr. Obaid Al Zaabi, CEO of the SCA, Bryan Stirewalt, Chief Executive of the DFSA, and Richard Teng, CEO of the FSRA.
Following the signing, Al Mansouri said: "Signing this agreement and implementing its provisions will foster the relations between the three authorities. It will facilitate the licensing and promoting of investment funds to attract foreign investment. It will also pave the way for savings to be directed towards new financial instruments such as investment funds and activate a number of financial services and activities related to investment funds such as custodian, investment management, and promoting, as well as the management of investment funds." He added that the agreement implements passporting "mutual recognition" as a regulatory mechanism for promoting and supervising investment funds as well as encouraging foreign firms licensed in financial free zones in other countries to operate in the UAE market. The agreement contributes to the fulfilment of one of the main roles assigned to the SCA, which is to provide the appropriate environment for the investment of savings and funds in securities, in line with the objectives of the country’s economic development.
Oil prices edge lower ahead of G20, OPEC meetings | Reuters
Oil prices edge lower ahead of G20, OPEC meetings | Reuters:
Oil prices dipped on Tuesday, weighed down by uncertainty over the U.S.-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming OPEC meeting.
Brent crude LCOc1 futures fell 27 cents to settle at $60.21 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 7 cents to settle at $51.56 a barrel.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.
Oil prices dipped on Tuesday, weighed down by uncertainty over the U.S.-China trade war and signs of increased global crude production, but losses were limited by expectations that crude exporters would agree to cut output at an upcoming OPEC meeting.
Brent crude LCOc1 futures fell 27 cents to settle at $60.21 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 7 cents to settle at $51.56 a barrel.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.
Tuesday 27 November 2018
Oil prices tumble in midday trade | Financial Times
Oil prices tumble in midday trade | Financial Times:
Oil prices took an unexpected tumble on Tuesday, giving up their morning gains, as investors weighed the latest flare-up in US-China trade tensions against expectations that Opec and its allies could cut production targets when they meet next week.
Brent crude, which had been up by as much as 1.5 per cent earlier today, dived at around midday in New York to trade down by as much as 2.6 per cent at $58.92 a barrel. It later trimmed that decline to 1.2 per cent.
West Texas Intermediate also suffered a similar sell-off, notching a loss of as much as 2.6 per cent before recovering to trade down 1 per cent at $51.32. At its session high this morning, it had been sitting 1.5 per cent higher.
Oil prices took an unexpected tumble on Tuesday, giving up their morning gains, as investors weighed the latest flare-up in US-China trade tensions against expectations that Opec and its allies could cut production targets when they meet next week.
Brent crude, which had been up by as much as 1.5 per cent earlier today, dived at around midday in New York to trade down by as much as 2.6 per cent at $58.92 a barrel. It later trimmed that decline to 1.2 per cent.
West Texas Intermediate also suffered a similar sell-off, notching a loss of as much as 2.6 per cent before recovering to trade down 1 per cent at $51.32. At its session high this morning, it had been sitting 1.5 per cent higher.
Daman Securities joins Nasdaq Dubai to trade derivatives
Daman Securities joins Nasdaq Dubai to trade derivatives:
Daman Securities has joined Nasdaq Dubai as a member to trade equity derivatives.
The move enables clients of Daman Securities to make gains whether share prices rise or fall, by trading futures on the exchange, the bourse said in a statement.
The addition of Nasdaq Dubai futures trading is a further step in Daman Securities’ growth strategy, which included becoming a member of Nasdaq Dubai’s equity market in March 2017.
Daman Securities has joined Nasdaq Dubai as a member to trade equity derivatives.
The move enables clients of Daman Securities to make gains whether share prices rise or fall, by trading futures on the exchange, the bourse said in a statement.
The addition of Nasdaq Dubai futures trading is a further step in Daman Securities’ growth strategy, which included becoming a member of Nasdaq Dubai’s equity market in March 2017.
Emaar to sell five luxury hotels to Abu Dhabi National Hotels
Emaar to sell five luxury hotels to Abu Dhabi National Hotels:
Emaar Hospitality Group is to sell five of its hotels — including the iconic Address Dubai Mall and Address Boulevard — to Abu Dhabi National Hotels (ADNH), the company said on Tuesday.
The company — which is a subsidiary of the Dubai-listed real estate company Emaar Properties — has signed “definitive” documentation with ADNH, with the deal expected to be finalized this year or in early 2019, according to filings on the Dubai and Abu Dhabi stock exchanges.
Mohamed Alabbar, chairman of Emaar Properties, said in a statement, the sale was part of the company’s efforts to shift toward an “asset-light business model”.
Emaar Hospitality Group is to sell five of its hotels — including the iconic Address Dubai Mall and Address Boulevard — to Abu Dhabi National Hotels (ADNH), the company said on Tuesday.
The company — which is a subsidiary of the Dubai-listed real estate company Emaar Properties — has signed “definitive” documentation with ADNH, with the deal expected to be finalized this year or in early 2019, according to filings on the Dubai and Abu Dhabi stock exchanges.
Mohamed Alabbar, chairman of Emaar Properties, said in a statement, the sale was part of the company’s efforts to shift toward an “asset-light business model”.
#Qatar to open up more sectors for 100% foreign ownership - The Peninsula Qatar
Qatar to open up more sectors for 100% foreign ownership - The Peninsula Qatar:
Qatar is set to further expand its investment ecosystem allowing foreign investors for 100 percent ownership in more sectors.
Opening Qatar-France Business and Investment Forum here yesterday, Yahya bin Saeed Al Nuaimi, Assistant Undersecretary for Commerce Affairs at the Ministry of Commerce and Industry said the country is working towards the issuance of a new investment law that would represent an important step in the journey to attract foreign investors.
The Forum which was organized by the French Embassy in Doha, in partnership with the Ministry of Commerce and Industry, the Qatar Businessmen Association and Qatar Financial Centre (QFC), kicked off yesterday.
Qatar is set to further expand its investment ecosystem allowing foreign investors for 100 percent ownership in more sectors.
Opening Qatar-France Business and Investment Forum here yesterday, Yahya bin Saeed Al Nuaimi, Assistant Undersecretary for Commerce Affairs at the Ministry of Commerce and Industry said the country is working towards the issuance of a new investment law that would represent an important step in the journey to attract foreign investors.
The Forum which was organized by the French Embassy in Doha, in partnership with the Ministry of Commerce and Industry, the Qatar Businessmen Association and Qatar Financial Centre (QFC), kicked off yesterday.
#Qatar trade surplus surges to QR18.99bn year-on-year in October
Qatar trade surplus surges to QR18.99bn year-on-year in October:
Robust surge in the shipments of crude and non-crude helped Qatar more than double its trade surplus year-on-year to QR18.99bn in October 2018, according to official figures.
The country's trade surplus registered a healthy 22.9% increase on monthly basis, said the figures released by the Ministry of Development Planning and Statistics.
In absolute terms, South Korea, Japan, India, China and Singapore were among the largest export markets of Qatar; while imports mainly came from the US, China, the UK, Germany and India in the review period.
Robust surge in the shipments of crude and non-crude helped Qatar more than double its trade surplus year-on-year to QR18.99bn in October 2018, according to official figures.
The country's trade surplus registered a healthy 22.9% increase on monthly basis, said the figures released by the Ministry of Development Planning and Statistics.
In absolute terms, South Korea, Japan, India, China and Singapore were among the largest export markets of Qatar; while imports mainly came from the US, China, the UK, Germany and India in the review period.
Dubai, Abu Dhabi Stocks' Yearly Moves to Diverge for First Time - Bloomberg
Dubai, Abu Dhabi Stocks' Yearly Moves to Diverge for First Time - Bloomberg:
The fates of the two biggest stock gauges in the United Arab Emirates are set to diverge this year for the first time on record.
Abu Dhabi’s ADX General Index has climbed almost 13 percent this year, putting it among the world’s best performers. Headed in the opposite direction, Dubai’s main gauge has slumped 20 percent and is set for its worst annual performance in a decade.
The performance in the U.A.E. capital was boosted mostly by a 40 percent increase of First Abu Dhabi Bank PJSC. The country’s biggest lender obtained a higher weighting in the benchmark MSCI Emerging Markets Index earlier this month, with estimated passive inflows of around $400 million. In Dubai, real estate stocks slumped, pressuring the index the most, amid growing concern of an oversupply in the residential market.
The fates of the two biggest stock gauges in the United Arab Emirates are set to diverge this year for the first time on record.
Abu Dhabi’s ADX General Index has climbed almost 13 percent this year, putting it among the world’s best performers. Headed in the opposite direction, Dubai’s main gauge has slumped 20 percent and is set for its worst annual performance in a decade.
The performance in the U.A.E. capital was boosted mostly by a 40 percent increase of First Abu Dhabi Bank PJSC. The country’s biggest lender obtained a higher weighting in the benchmark MSCI Emerging Markets Index earlier this month, with estimated passive inflows of around $400 million. In Dubai, real estate stocks slumped, pressuring the index the most, amid growing concern of an oversupply in the residential market.
Mobius Says Fear of What Saudis Might Do Next Deters Investors - Bloomberg
Mobius Says Fear of What Saudis Might Do Next Deters Investors - Bloomberg:
Saudi Arabia will find it hard to attract foreign money as the murder of columnist Jamal Khashoggi raises concerns about governance and other political risks, said Mark Mobius, a veteran investor in developing nations.
The 82-year-old, who set up Mobius Capital Partners LLP this year after three decades at Franklin Templeton Investments, said he’s concerned about Saudi Arabia’s governance and commitment to reforms. Foreign investors dumped a record amount of stocks in October as the kingdom insulated Crown Prince Mohammed bin Salman from Khashoggi’s killing in the Saudi consulate in Istanbul.
“If the leadership has questionable governance, how about the companies?” Mobius said in an interview in Dubai. “There are other things going on that are very risky.”
Saudi Arabia will find it hard to attract foreign money as the murder of columnist Jamal Khashoggi raises concerns about governance and other political risks, said Mark Mobius, a veteran investor in developing nations.
The 82-year-old, who set up Mobius Capital Partners LLP this year after three decades at Franklin Templeton Investments, said he’s concerned about Saudi Arabia’s governance and commitment to reforms. Foreign investors dumped a record amount of stocks in October as the kingdom insulated Crown Prince Mohammed bin Salman from Khashoggi’s killing in the Saudi consulate in Istanbul.
“If the leadership has questionable governance, how about the companies?” Mobius said in an interview in Dubai. “There are other things going on that are very risky.”
#Saudi Money Lost Faith in Prince Long Before #Khashoggi's Murder - Bloomberg
Saudi Money Lost Faith in Prince Long Before Khashoggi's Murder - Bloomberg:
The murder of Saudi columnist Jamal Khashoggi last month has soured the world’s politicians on the once-feted Crown Prince Mohammed Bin Salman. Private capital turned against him long before that.
Ever since dozens of royals and business chiefs were detained in November 2017 as part of a declared crackdown on corruption, a growing number of rich Saudis have been trying to move money out of the kingdom or draw up plans to leave, according to interviews with more than 10 people familiar with the matter. They all spoke on condition of anonymity because the issue is sensitive.
Saudis who stayed put are mostly parking their cash instead of increasing investments, adding to the headwinds buffeting the biggest Arab economy. Khashoggi’s killing has only intensified the trends, some of the people said.
The murder of Saudi columnist Jamal Khashoggi last month has soured the world’s politicians on the once-feted Crown Prince Mohammed Bin Salman. Private capital turned against him long before that.
Ever since dozens of royals and business chiefs were detained in November 2017 as part of a declared crackdown on corruption, a growing number of rich Saudis have been trying to move money out of the kingdom or draw up plans to leave, according to interviews with more than 10 people familiar with the matter. They all spoke on condition of anonymity because the issue is sensitive.
Saudis who stayed put are mostly parking their cash instead of increasing investments, adding to the headwinds buffeting the biggest Arab economy. Khashoggi’s killing has only intensified the trends, some of the people said.
Brookfield Is Said to Be in Talks to Invest in Dubai's Meraas - Bloomberg
Brookfield Is Said to Be in Talks to Invest in Dubai's Meraas - Bloomberg:
Brookfield Asset Management Inc. is in early talks for an investment in Dubai property developer Meraas Holding, according to people with knowledge of the matter, in a deal that would signal a vote of confidence in the emirate’s ailing property market.
The Canadian firm is weighing options that would give it control of some retail properties from Meraas, including entering into a joint venture for those developments, the people said, declining to be identified as the deliberations are confidential. Brookfield is considering taking a stake in the state-run conglomerate as part of such a deal, they said. The discussions are in preliminary stages and may not result in an accord, they said.
Representatives for Brookfield and Meraas declined to comment.
Brookfield Asset Management Inc. is in early talks for an investment in Dubai property developer Meraas Holding, according to people with knowledge of the matter, in a deal that would signal a vote of confidence in the emirate’s ailing property market.
The Canadian firm is weighing options that would give it control of some retail properties from Meraas, including entering into a joint venture for those developments, the people said, declining to be identified as the deliberations are confidential. Brookfield is considering taking a stake in the state-run conglomerate as part of such a deal, they said. The discussions are in preliminary stages and may not result in an accord, they said.
Representatives for Brookfield and Meraas declined to comment.
"They've got to get bigger": GCC markets need better governance, more listings- Mobius | ZAWYA MENA Edition
"They've got to get bigger": GCC markets need better governance, more listings- Mobius | ZAWYA MENA Edition:
Renowned emerging markets fund manager Mark Mobius has said that the Gulf region needs both better governance and more sizeable initial public offerings (IPOs) if it is to attractive more investment flows from active money managers into regional markets.
Speaking to Zawya on the sidelines of the Alternative Investment Meeting Summit in Dubai on Monday, Mobius, who left his role as executive chairman of Franklin Templeton late last year to set up Mobius Capital Partners in January, said that for emerging market investors, "the GCC is small".
"They've got to get bigger," he said. "They've got to get more listings, and they've got to (make) big improvements in governance."
Renowned emerging markets fund manager Mark Mobius has said that the Gulf region needs both better governance and more sizeable initial public offerings (IPOs) if it is to attractive more investment flows from active money managers into regional markets.
Speaking to Zawya on the sidelines of the Alternative Investment Meeting Summit in Dubai on Monday, Mobius, who left his role as executive chairman of Franklin Templeton late last year to set up Mobius Capital Partners in January, said that for emerging market investors, "the GCC is small".
"They've got to get bigger," he said. "They've got to get more listings, and they've got to (make) big improvements in governance."
Dubai Aerospace authorised to buy back $300 mln in bonds | Reuters
Dubai Aerospace authorised to buy back $300 mln in bonds | Reuters:
State-controlled Dubai Aerospace Enterprise (DAE) said on Tuesday its board and shareholders had authorised the repurchase of an additional $300 million of its bonds through open market transactions.
“The current trading levels of our bonds are not consistent with our current credit ratings, strong financial performance or our projected ratings trajectory,” DAE Chief Executive Firoz Tarapore said in a statement.
DAE said it had already bought back $295 million of principal amount of its public bonds under a previous limit of $300 million.
State-controlled Dubai Aerospace Enterprise (DAE) said on Tuesday its board and shareholders had authorised the repurchase of an additional $300 million of its bonds through open market transactions.
“The current trading levels of our bonds are not consistent with our current credit ratings, strong financial performance or our projected ratings trajectory,” DAE Chief Executive Firoz Tarapore said in a statement.
DAE said it had already bought back $295 million of principal amount of its public bonds under a previous limit of $300 million.
Saudi Aramco aims to become gas exporter with $150 billion investment drive | Reuters
Saudi Aramco aims to become gas exporter with $150 billion investment drive | Reuters:
Saudi Aramco’s gas expansion strategy needs $150 billion worth of investments over the next decade as the company plans to increase output and become an exporter, its chief executive said on Tuesday.
Aramco is pushing ahead with its conventional and unconventional gas exploration and production program to feed its fast growing industries, freeing up more crude oil to export or turn into chemicals.
The state oil giant plans to boost its gas production to 23 billion standard cubic feet (scf) a day from 14 billion scf now, its CEO Amin Nasser told a chemicals industry event in Dubai.
Saudi Aramco’s gas expansion strategy needs $150 billion worth of investments over the next decade as the company plans to increase output and become an exporter, its chief executive said on Tuesday.
Aramco is pushing ahead with its conventional and unconventional gas exploration and production program to feed its fast growing industries, freeing up more crude oil to export or turn into chemicals.
The state oil giant plans to boost its gas production to 23 billion standard cubic feet (scf) a day from 14 billion scf now, its CEO Amin Nasser told a chemicals industry event in Dubai.
#Saudi's Almarai delays debut dollar bond on #Khashoggi fallout - sources | Reuters
Saudi's Almarai delays debut dollar bond on Khashoggi fallout - sources | Reuters:
Saudi Arabian dairy company Almarai has postponed a sale of international Islamic bonds because it faced having to pay a higher interest rate after the murder of Saudi journalist Jamal Khashoggi, banking sources familiar with the matter said.
The Gulf’s biggest dairy company had hired banks to arrange the issue, but the deal, which would have marked Almarai’s debut in international debt markets, has been delayed to next year, the sources said.
Almarai did not respond to a request for comment.
Saudi Arabian dairy company Almarai has postponed a sale of international Islamic bonds because it faced having to pay a higher interest rate after the murder of Saudi journalist Jamal Khashoggi, banking sources familiar with the matter said.
The Gulf’s biggest dairy company had hired banks to arrange the issue, but the deal, which would have marked Almarai’s debut in international debt markets, has been delayed to next year, the sources said.
Almarai did not respond to a request for comment.
DBS to almost double staff, triple revenue of Mideast private banking | Reuters
DBS to almost double staff, triple revenue of Mideast private banking | Reuters:
DBS (DBSM.SI), Southeast Asia’s largest bank, said it would almost double its Dubai private banking staff in its bid to triple revenue for those operations in the Middle East by 2023, capitalizing on a shift of investments towards Asia.
The Singapore bank is joining Citibank (C.N) and other global lenders expanding wealth management operations in the region. The prospective client base includes wealthy Middle East business people, family offices and non-resident Indians.
DBS said it planned to double headcount for its private bank in Dubai by 2023 from about 11 now to about 20.
DBS (DBSM.SI), Southeast Asia’s largest bank, said it would almost double its Dubai private banking staff in its bid to triple revenue for those operations in the Middle East by 2023, capitalizing on a shift of investments towards Asia.
The Singapore bank is joining Citibank (C.N) and other global lenders expanding wealth management operations in the region. The prospective client base includes wealthy Middle East business people, family offices and non-resident Indians.
DBS said it planned to double headcount for its private bank in Dubai by 2023 from about 11 now to about 20.
Column: Oil prices steady as funds near end of liquidation - Kemp | Reuters
Column: Oil prices steady as funds near end of liquidation - Kemp | Reuters:
Hedge fund managers continued to exit from their former bullish positions in crude oil and fuels last week but the worst of the selling may be over, which has helped steady futures prices.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by another 54 million barrels in the week to Nov. 20.
Portfolio managers have slashed their combined net long position by a total of 607 million barrels over the last eight weeks, the largest reduction over a comparable period since at least 2013, when the current data series began, and very likely the largest ever.
Hedge fund managers continued to exit from their former bullish positions in crude oil and fuels last week but the worst of the selling may be over, which has helped steady futures prices.
Hedge funds and other money managers cut their combined net long position in the six most important petroleum futures and options contracts by another 54 million barrels in the week to Nov. 20.
Portfolio managers have slashed their combined net long position by a total of 607 million barrels over the last eight weeks, the largest reduction over a comparable period since at least 2013, when the current data series began, and very likely the largest ever.
UAE’s rail project back on track with financing sealed | Reuters
UAE’s rail project back on track with financing sealed | Reuters:
Etihad Rail, the developer and operator of the United Arab Emirates’ national rail network, said on Tuesday the government has agreed financing for phase two of the project which was put on hold in 2016.
The financing deal signals that the project is back on track after delays partly due to bureaucracy, technical difficulties and financing issues as the government slowed spending due to low oil prices.
State-owned Etihad Rail had suspended the tendering process for phase two of the project in 2016, saying it was reviewing options for the timing and delivery.
Etihad Rail, the developer and operator of the United Arab Emirates’ national rail network, said on Tuesday the government has agreed financing for phase two of the project which was put on hold in 2016.
The financing deal signals that the project is back on track after delays partly due to bureaucracy, technical difficulties and financing issues as the government slowed spending due to low oil prices.
State-owned Etihad Rail had suspended the tendering process for phase two of the project in 2016, saying it was reviewing options for the timing and delivery.
Oil prices fall more than 1 percent ahead of G20, OPEC meeting | Reuters
Oil prices fall more than 1 percent ahead of G20, OPEC meeting | Reuters:
Oil prices fell more than 1 percent on Tuesday, in conjunction with sagging stock markets after U.S. President Donald Trump threatened more tariffs on Chinese imports ahead of the coming G20 summit.
Brent crude LCOc1 futures fell $1.00 to $59.48 a barrel, a 1.7 percent loss, 12:53 p.m. EST (1753 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 84 cents to $50.79 a barrel, a 1.6 percent loss.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.
Oil prices fell more than 1 percent on Tuesday, in conjunction with sagging stock markets after U.S. President Donald Trump threatened more tariffs on Chinese imports ahead of the coming G20 summit.
Brent crude LCOc1 futures fell $1.00 to $59.48 a barrel, a 1.7 percent loss, 12:53 p.m. EST (1753 GMT). U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 84 cents to $50.79 a barrel, a 1.6 percent loss.
Prices fell to their lowest since October 2017 last week - Brent at $58.41 and WTI at $50.15.
MIDEAST STOCKS-Real estate weighs on #Dubai, Egypt ends losing streak | Reuters
MIDEAST STOCKS-Real estate weighs on Dubai, Egypt ends losing streak | Reuters:
Dubai’s stock market tumbled to a 34-month low on Tuesday as real estate shares continued to slide, while Egyptian blue chips rebounded after five straight sessions of losses.
The Dubai index fell 1.0 percent to 2,700 points, its lowest level since January 2016; it slipped below technical support on the October low of 2,707 points. Emaar Properties shed 3.2 percent after a unit agreed to sell five hotels in Dubai to Abu Dhabi National Hotels for an undisclosed amount.
Union Properties lost 3.4 percent, though another major property firm, DAMAC, added 1.0 percent. Dubai’s largest bank, Emirates NBD, lost 2.2 percent.
Dubai’s stock market tumbled to a 34-month low on Tuesday as real estate shares continued to slide, while Egyptian blue chips rebounded after five straight sessions of losses.
The Dubai index fell 1.0 percent to 2,700 points, its lowest level since January 2016; it slipped below technical support on the October low of 2,707 points. Emaar Properties shed 3.2 percent after a unit agreed to sell five hotels in Dubai to Abu Dhabi National Hotels for an undisclosed amount.
Union Properties lost 3.4 percent, though another major property firm, DAMAC, added 1.0 percent. Dubai’s largest bank, Emirates NBD, lost 2.2 percent.
Mideast Stocks: Dubai falls for fourth day, banks aid Saudi | ZAWYA MENA Edition
Mideast Stocks: Dubai falls for fourth day, banks aid Saudi | ZAWYA MENA Edition:
The Dubai stock market fell for a fourth straight session to a 34-month low on Tuesday morning as real estate shares continued to slide, while Saudi Arabia inched up on support from recovering bank stocks.
In Dubai, the index fell 1.0 percent to 2,699 points, its lowest level since January 2016. Emaar Properties shed 1.9 percent after a unit agreed to sell five hospitality assets in Dubai for an undisclosed amount to Abu Dhabi National Hotels , which did not trade.
Emirates NBD , Dubai's largest bank, lost 2.2 percent.
The Dubai stock market fell for a fourth straight session to a 34-month low on Tuesday morning as real estate shares continued to slide, while Saudi Arabia inched up on support from recovering bank stocks.
In Dubai, the index fell 1.0 percent to 2,699 points, its lowest level since January 2016. Emaar Properties shed 1.9 percent after a unit agreed to sell five hospitality assets in Dubai for an undisclosed amount to Abu Dhabi National Hotels , which did not trade.
Emirates NBD , Dubai's largest bank, lost 2.2 percent.
Low oil prices may not be good for global growth, says Abu Dhabi sovereign wealth fund research head | ZAWYA MENA Edition
Low oil prices may not be good for global growth, says Abu Dhabi sovereign wealth fund research head | ZAWYA MENA Edition:
The typical assumption that low oil prices are good for the global economy can no longer be held to be true, especially in the United States, according to Abu Dhabi Investment Authority's head of research.
In an opening address at the Alternative Investment Management Summit in Dubai on Monday, Christof Ruhl, head of global research for the world's third-biggest sovereign wealth fund, said that the shale revolution which has taken place over the past five years in the U.S. "alters the equation in a time-honoured way" between growth and oil.
He said that, traditionally, economists have said that a $10 decline in the price of oil equates to a 0.2 percent boost in global economic growth. "That relationship seems to have disappeared," he said, stating that in the U.S., at least, higher oil prices now equate to higher trade levels and higher investment. "The old thing that higher oil prices hurt consumption and vice versa is disappearing, as the U.S. consumer benefits from higher prices in some parts of the country and suffers from them in other parts.
The typical assumption that low oil prices are good for the global economy can no longer be held to be true, especially in the United States, according to Abu Dhabi Investment Authority's head of research.
In an opening address at the Alternative Investment Management Summit in Dubai on Monday, Christof Ruhl, head of global research for the world's third-biggest sovereign wealth fund, said that the shale revolution which has taken place over the past five years in the U.S. "alters the equation in a time-honoured way" between growth and oil.
He said that, traditionally, economists have said that a $10 decline in the price of oil equates to a 0.2 percent boost in global economic growth. "That relationship seems to have disappeared," he said, stating that in the U.S., at least, higher oil prices now equate to higher trade levels and higher investment. "The old thing that higher oil prices hurt consumption and vice versa is disappearing, as the U.S. consumer benefits from higher prices in some parts of the country and suffers from them in other parts.
Dubai's Emaar picks Standard Chartered to advise on sale of hotel assets | ZAWYA MENA Edition
Dubai's Emaar picks Standard Chartered to advise on sale of hotel assets | ZAWYA MENA Edition:
Standard Chartered has been appointed as financial adviser by Dubai's Emaar Properties on the sale of its hotel assets, the British lender said on Tuesday.
Emaar said in a separate statement on Tuesday that it plans to sell to Abu Dhabi National Hotels its interest in five hospitality assets in Dubai and that the transaction is expected to close at the beginning of next year at the latest.
The deal "helps achieve strategic priorities and unlocks shareholder value for both Emaar and ADNH," Rola Abu Manneh, chief executive officer of Standard Chartered Bank UAE said in a statement.
Standard Chartered has been appointed as financial adviser by Dubai's Emaar Properties on the sale of its hotel assets, the British lender said on Tuesday.
Emaar said in a separate statement on Tuesday that it plans to sell to Abu Dhabi National Hotels its interest in five hospitality assets in Dubai and that the transaction is expected to close at the beginning of next year at the latest.
The deal "helps achieve strategic priorities and unlocks shareholder value for both Emaar and ADNH," Rola Abu Manneh, chief executive officer of Standard Chartered Bank UAE said in a statement.
Monday 26 November 2018
U.S. lawmakers' concern on Saudi Arabia prompts Pompeo, Mattis briefing | Reuters
U.S. lawmakers' concern on Saudi Arabia prompts Pompeo, Mattis briefing | Reuters:
Secretary of State Mike Pompeo and Secretary of Defense Jim Mattis will brief the U.S. Senate on Wednesday on the latest developments related to Saudi Arabia, Senator John Cornyn, the number two Senate Republican, told reporters on Monday.
Many U.S. lawmakers, including some of President Donald Trump’s fellow Republicans, have rejected Trump’s embrace of Saudi Arabia. They have called for a strong U.S. response to the murder of prominent Saudi journalist Jamal Khashoggi, and the war in Yemen, which has created one of the world’s most urgent humanitarian disasters.
Trump vowed last week to remain a “steadfast partner” of Saudi Arabia and said it was not clear whether Saudi Crown Prince Mohammed bin Salman knew about the plan to kill Khashoggi last month at the Saudi consulate in Istanbul.
Secretary of State Mike Pompeo and Secretary of Defense Jim Mattis will brief the U.S. Senate on Wednesday on the latest developments related to Saudi Arabia, Senator John Cornyn, the number two Senate Republican, told reporters on Monday.
Many U.S. lawmakers, including some of President Donald Trump’s fellow Republicans, have rejected Trump’s embrace of Saudi Arabia. They have called for a strong U.S. response to the murder of prominent Saudi journalist Jamal Khashoggi, and the war in Yemen, which has created one of the world’s most urgent humanitarian disasters.
Trump vowed last week to remain a “steadfast partner” of Saudi Arabia and said it was not clear whether Saudi Crown Prince Mohammed bin Salman knew about the plan to kill Khashoggi last month at the Saudi consulate in Istanbul.
Oil breaks above $60/bbl, but doubts about growth curb gains | Reuters
Oil breaks above $60/bbl, but doubts about growth curb gains | Reuters:
Oil prices rose nearly 3 percent on Monday, clawing back some of last week’s steep losses, but gains were capped by uncertainty over global economic growth and further signs of increasing supply, including record Saudi production.
Brent crude LCOc1 futures rose $1.68 to settle at $60.48 a barrel, a 2.9 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.21, or 2.4 percent, to close at $51.63 a barrel.
Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Brent sank to $58.41 a barrel, while WTI fell to $50.15 a barrel.
Oil prices rose nearly 3 percent on Monday, clawing back some of last week’s steep losses, but gains were capped by uncertainty over global economic growth and further signs of increasing supply, including record Saudi production.
Brent crude LCOc1 futures rose $1.68 to settle at $60.48 a barrel, a 2.9 percent gain. U.S. West Texas Intermediate (WTI) crude CLc1 gained $1.21, or 2.4 percent, to close at $51.63 a barrel.
Prices on Friday hit their lowest since October 2017 amid intensifying fears of a supply glut. Brent sank to $58.41 a barrel, while WTI fell to $50.15 a barrel.
Dubai bourse sees continued selling
Dubai bourse sees continued selling:
The Dubai Financial Market (DFM) witnessed another round of selling on Monday as traders remained cautious ahead of a long holidays.
The DFM general index closed 0.44 per cent lower at 2,727.41, as it managed to stay above the support level of 2.706 that has proved critical after the gauged bounced back from these levels twice.
Emaar Properties closed 1.2 per cent lower at Dh4.74.
The Dubai Financial Market (DFM) witnessed another round of selling on Monday as traders remained cautious ahead of a long holidays.
The DFM general index closed 0.44 per cent lower at 2,727.41, as it managed to stay above the support level of 2.706 that has proved critical after the gauged bounced back from these levels twice.
Emaar Properties closed 1.2 per cent lower at Dh4.74.
Abu Dhabi's Al Hilal Bank uses blockchain to sell sukuk in secondary market | Reuters
Abu Dhabi's Al Hilal Bank uses blockchain to sell sukuk in secondary market | Reuters:
Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
Abu Dhabi’s Al Hilal Bank has executed the world’s first sukuk transaction using blockchain technology, it said on Monday.
The Islamic bank used the distributed ledger technology, best known as the underpinning of crypto-currency Bitcoin, to sell and settle in the secondary market a small portion of its $500 million five-year sukuk, issued in September.
“Al Hilal Bank is aiming to transform the sukuk market through embracing blockchain and integrating it into their infrastructure, paving the way for innovative digitized Islamic sukuk,” it said.
Foreign institutional buying interests lifts Qatar shares
Foreign institutional buying interests lifts Qatar shares:
Foreign institutions’ strengthened buying interests lifted the Qatar Stock Exchange as its key index on Monday surpassed the 10,350 levels.
An across the board buying – particularly in telecom, real estate and banking – helped the 20-stock Qatar Index to gain more than 1% to 10,356.62 points.
However, there was increased net selling pressure from domestic institutions and local retail investors in the market, which is up 21.51% year-to-date.
Foreign institutions’ strengthened buying interests lifted the Qatar Stock Exchange as its key index on Monday surpassed the 10,350 levels.
An across the board buying – particularly in telecom, real estate and banking – helped the 20-stock Qatar Index to gain more than 1% to 10,356.62 points.
However, there was increased net selling pressure from domestic institutions and local retail investors in the market, which is up 21.51% year-to-date.
Crude Jumps Most in Five Months on Optimism Over End to Oil Glut - Bloomberg
Crude Jumps Most in Five Months on Optimism Over End to Oil Glut - Bloomberg:
Crude is on track for its biggest advance in five months as the world’s biggest oil exporters prepare to discuss global supplies.
Futures rose as much as 3.6 percent in New York on Monday, clawing back almost half of Friday’s loss. All eyes are on this week’s G20 gathering in Argentina that will include Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin. That event will be followed by a key OPEC meeting next week in Vienna.
“There has been sufficient commentary out of various OPEC members about addressing this oversupply situation, either at the G20 or at the upcoming OPEC meeting,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC.
Crude is on track for its biggest advance in five months as the world’s biggest oil exporters prepare to discuss global supplies.
Futures rose as much as 3.6 percent in New York on Monday, clawing back almost half of Friday’s loss. All eyes are on this week’s G20 gathering in Argentina that will include Saudi Crown Prince Mohammed Bin Salman and Russian President Vladimir Putin. That event will be followed by a key OPEC meeting next week in Vienna.
“There has been sufficient commentary out of various OPEC members about addressing this oversupply situation, either at the G20 or at the upcoming OPEC meeting,” said John Kilduff, a partner at New York-based hedge fund Again Capital LLC.
UAE Dangles Billions of Dollars Before Brazil, With One Catch - Bloomberg
UAE Dangles Billions of Dollars Before Brazil, With One Catch - Bloomberg:
The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy.
The UAE Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should the nation be removed from the list.
"Our sovereign funds would like to see that there are incentives for people to come and invest", she said in an interview in Brazil’s capital city, Brasilia. "Singapore and Switzerland have been removed from the tax haven list. Why not UAE?"
The United Arab Emirates is willing to expand its multi-billion dollar investments in Brazil as long as it’s no longer labeled a tax haven by Latin America’s largest economy.
The UAE Ambassador to Brazil, Hafsa Abdulla Al Ulama, said her country’s sovereign wealth funds are ready to boost investments in infrastructure, energy and agriculture should the nation be removed from the list.
"Our sovereign funds would like to see that there are incentives for people to come and invest", she said in an interview in Brazil’s capital city, Brasilia. "Singapore and Switzerland have been removed from the tax haven list. Why not UAE?"
Interview: Saudi's SEDCO Capital looking to create its own ethical fund | ZAWYA MENA Edition
Interview: Saudi's SEDCO Capital looking to create its own ethical fund | ZAWYA MENA Edition:
A decision taken last year by one of Saudi Arabia's biggest asset managers to adopt a new Prudent Ethical Investing strategy has already had a significant effect on its investment decisions, with the firm now sizing up the launch of a new ethical fund, the company's senior director of business development has said.
In an interview with Zawya on the sidelines of the Global Islamic Economy Summit on October 31, SEDCO Capital’s Ayman Al Bashir said that the Jeddah-based asset management firm has already reviewed its line-up of existing asset managers, and no longer invests with firms unless they are either signatories to the United Nations-based Principles for Responsible Investing (PRI), or have an environmental, social and governance layer within their investment offerings.
"In the past, we used just to follow performance. So this is a new change. Any active manager has to have one of these two options," he said.
A decision taken last year by one of Saudi Arabia's biggest asset managers to adopt a new Prudent Ethical Investing strategy has already had a significant effect on its investment decisions, with the firm now sizing up the launch of a new ethical fund, the company's senior director of business development has said.
In an interview with Zawya on the sidelines of the Global Islamic Economy Summit on October 31, SEDCO Capital’s Ayman Al Bashir said that the Jeddah-based asset management firm has already reviewed its line-up of existing asset managers, and no longer invests with firms unless they are either signatories to the United Nations-based Principles for Responsible Investing (PRI), or have an environmental, social and governance layer within their investment offerings.
"In the past, we used just to follow performance. So this is a new change. Any active manager has to have one of these two options," he said.
Breakingviews - Trump’s Saudi amorality can make Gulf great again | Reuters
Breakingviews - Trump’s Saudi amorality can make Gulf great again | Reuters:
U.S. President Donald Trump’s Thanksgiving-week absolution of Mohammed bin Salman for the murder of journalist Jamal Khashoggi by Saudi agents has undermined any claims to global moral leadership by the U.S. administration. But America’s reputational loss today may benefit the Gulf in 2019.
Though Trump gave MbS a pass on Khashoggi’s killing, the 33-year-old monarch surely realises how close a call he faced and may owe his eventual accession to the U.S. president alone. That gives Trump leverage to undo many of MbS’s recent blunders.
Start with forcing an end to the pointless four-nation blockade of Qatar, where the United States has a military base. Pressuring Saudi to lift this embargo would improve a regional economy hurt by lost Qatari business, ratchet down tensions in the Gulf that have concerned global investors and reunite families.
U.S. President Donald Trump’s Thanksgiving-week absolution of Mohammed bin Salman for the murder of journalist Jamal Khashoggi by Saudi agents has undermined any claims to global moral leadership by the U.S. administration. But America’s reputational loss today may benefit the Gulf in 2019.
Though Trump gave MbS a pass on Khashoggi’s killing, the 33-year-old monarch surely realises how close a call he faced and may owe his eventual accession to the U.S. president alone. That gives Trump leverage to undo many of MbS’s recent blunders.
Start with forcing an end to the pointless four-nation blockade of Qatar, where the United States has a military base. Pressuring Saudi to lift this embargo would improve a regional economy hurt by lost Qatari business, ratchet down tensions in the Gulf that have concerned global investors and reunite families.
Column: Oil market power ebbs from OPEC to the troika - Kemp | Reuters
Column: Oil market power ebbs from OPEC to the troika - Kemp | Reuters:
The Organization of the Petroleum Exporting Countries has been marginalized as critical decisions about the oil market are taken by a troika of the United States, Russia and Saudi Arabia.
The rise and subsequent fall in oil prices this year has been almost entirely driven by production decisions in these three countries and their policies towards managing the impact of renewed sanctions on Iran.
The troika accounted for 36 million barrels per day of crude and condensates production in 2017 (39 percent of the global total) compared with just 27 million bpd from the rest of OPEC (30 percent of the global total).
The Organization of the Petroleum Exporting Countries has been marginalized as critical decisions about the oil market are taken by a troika of the United States, Russia and Saudi Arabia.
The rise and subsequent fall in oil prices this year has been almost entirely driven by production decisions in these three countries and their policies towards managing the impact of renewed sanctions on Iran.
The troika accounted for 36 million barrels per day of crude and condensates production in 2017 (39 percent of the global total) compared with just 27 million bpd from the rest of OPEC (30 percent of the global total).
The wealthy Middle Eastern families who want their daughters to inherit more | Financial Times
The wealthy Middle Eastern families who want their daughters to inherit more | Financial Times:
When the founder of an immensely successful family business in Kuwait passed leaving no will or foundation to manage his wealth, his estate and business were distributed to his wife, three sons and daughter according to the inheritance principles set forth by Sharia law.
His daughter had worked with him, while his sons had not been involved. Despite the expertise that made her an obvious candidate to take over the business operations, the application of the distribution law meant that she received just one small share of the business, while her brothers collectively received the vast majority. Jealous of their sister’s relationship with their father, her brothers quickly voted her out of the business.
“They ran it into the ground,” says Mahmoud Selim, a lawyer with Pinsent Masons in Dubai and Islamic law scholar. “That’s a typical example. There were no protections for her.”
When the founder of an immensely successful family business in Kuwait passed leaving no will or foundation to manage his wealth, his estate and business were distributed to his wife, three sons and daughter according to the inheritance principles set forth by Sharia law.
His daughter had worked with him, while his sons had not been involved. Despite the expertise that made her an obvious candidate to take over the business operations, the application of the distribution law meant that she received just one small share of the business, while her brothers collectively received the vast majority. Jealous of their sister’s relationship with their father, her brothers quickly voted her out of the business.
“They ran it into the ground,” says Mahmoud Selim, a lawyer with Pinsent Masons in Dubai and Islamic law scholar. “That’s a typical example. There were no protections for her.”
MIDEAST STOCKS-Egypt falls for fifth day, banks boost Qatar | Reuters
MIDEAST STOCKS-Egypt falls for fifth day, banks boost Qatar | Reuters:
Egypt’s blue-chip stock index fell for a fifth straight day on Monday, while Saudi Arabia edged up as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week.
The Egyptian index, which had plunged 3.8 percent on Sunday, fell a further 0.8 percent on Monday with the country’s biggest lender, Commercial International Bank (COMI) , losing 1.8 percent.
All eight traded banking stocks fell. Investors have been spooked partly by concern about authorities’ proposed changes to the way banks’ earnings from Egyptian Treasury bonds are calculated for tax purposes; a report released by Pharos Holding on Sunday said this would raise banks’ effective tax rates, shaving 17 percent off COMI’s bottom line last year.
Egypt’s blue-chip stock index fell for a fifth straight day on Monday, while Saudi Arabia edged up as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week.
The Egyptian index, which had plunged 3.8 percent on Sunday, fell a further 0.8 percent on Monday with the country’s biggest lender, Commercial International Bank (COMI) , losing 1.8 percent.
All eight traded banking stocks fell. Investors have been spooked partly by concern about authorities’ proposed changes to the way banks’ earnings from Egyptian Treasury bonds are calculated for tax purposes; a report released by Pharos Holding on Sunday said this would raise banks’ effective tax rates, shaving 17 percent off COMI’s bottom line last year.
Oil Rises From One-Year Low Even as Concerns of Glut Persist - Bloomberg
Oil Rises From One-Year Low Even as Concerns of Glut Persist - Bloomberg:
Oil rose from its lowest settlement in more than a year in New York, though signs of record output from Saudi Arabia amid pressure from President Donald Trump continued to weigh on the market.
Futures added 1.5 percent, after slumping 7.7 percent on Friday. Saudi Arabia is pumping as much as 11.2 million barrels of crude a day, the most since the kingdom extracted its first oil eight decades ago, according to a person familiar with the matter. Trump has reiterated his view that falling oil prices are great after the U.S. benchmark plunged the most last week since January 2016.
The American crude marker teeters near the $50 threshold as the Saudi output surge combines with larger-than-expected exports of Iranian oil after Trump granted sanctions waivers to some nations. In the U.S., growing inventories have added to the pressure on prices. Traders are assessing whether the Organization of Petroleum Exporting Countries and its allies will decide to trim output when they meet early next month in Vienna.
Oil rose from its lowest settlement in more than a year in New York, though signs of record output from Saudi Arabia amid pressure from President Donald Trump continued to weigh on the market.
Futures added 1.5 percent, after slumping 7.7 percent on Friday. Saudi Arabia is pumping as much as 11.2 million barrels of crude a day, the most since the kingdom extracted its first oil eight decades ago, according to a person familiar with the matter. Trump has reiterated his view that falling oil prices are great after the U.S. benchmark plunged the most last week since January 2016.
The American crude marker teeters near the $50 threshold as the Saudi output surge combines with larger-than-expected exports of Iranian oil after Trump granted sanctions waivers to some nations. In the U.S., growing inventories have added to the pressure on prices. Traders are assessing whether the Organization of Petroleum Exporting Countries and its allies will decide to trim output when they meet early next month in Vienna.
Mideast Stocks: Saudi, other bourses gains marginally as oil edges up | ZAWYA MENA Edition
Mideast Stocks: Saudi, other bourses gains marginally as oil edges up | ZAWYA MENA Edition:
Saudi Arabia's stock market gained marginally early on Monday as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week. Most other Gulf bourses were also firm.
The Saudi index was up 0.2 percent after an hour of trade; it had dropped 1.3 percent on Sunday. Top petrochemical producer Saudi Basic Industries was up 0.5 percent and National Commercial Bank added 0.4 percent.
Tabuk Cement initially rose 1.7 percent after signing a memorandum of understanding to export 6,000 tonnes of cement to Yemen, where Saudi authorities have announced infrastructure projects in areas they control. But the stock later pulled back to stand flat.
Saudi Arabia's stock market gained marginally early on Monday as oil prices rebounded moderately after plunging nearly 8 percent at the end of last week. Most other Gulf bourses were also firm.
The Saudi index was up 0.2 percent after an hour of trade; it had dropped 1.3 percent on Sunday. Top petrochemical producer Saudi Basic Industries was up 0.5 percent and National Commercial Bank added 0.4 percent.
Tabuk Cement initially rose 1.7 percent after signing a memorandum of understanding to export 6,000 tonnes of cement to Yemen, where Saudi authorities have announced infrastructure projects in areas they control. But the stock later pulled back to stand flat.
Qatar General Insurance to stop issuing new insurance policies in Dubai | Reuters
Qatar General Insurance to stop issuing new insurance policies in Dubai | Reuters:
Qatar General Insurance and Reinsurance Company said on Monday it would stop issuing any new insurance policies from its Dubai office and start winding down its business at the branch.
The company gave no detail as to whether the move was linked to a regional rift that started in June 2017 when Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and trade links with Qatar.
The firm, which said in December last year it had decided to exit the Dubai insurance market, said it would cease issuing new insurance policies as of Monday.
Qatar General Insurance and Reinsurance Company said on Monday it would stop issuing any new insurance policies from its Dubai office and start winding down its business at the branch.
The company gave no detail as to whether the move was linked to a regional rift that started in June 2017 when Saudi Arabia, the United Arab Emirates, Egypt and Bahrain cut diplomatic and trade links with Qatar.
The firm, which said in December last year it had decided to exit the Dubai insurance market, said it would cease issuing new insurance policies as of Monday.
Aramco eyes bigger market share in Asia ahead of possible OPEC cut - CEO | Reuters
Aramco eyes bigger market share in Asia ahead of possible OPEC cut - CEO | Reuters:
Saudi Aramco will expand its market share in Asia despite likely OPEC limits on output next year, and is eyeing deals in China and Africa as it aims to become a global leader in chemicals, the head of the world’s top oil producer said on Monday.
Amin Nasser, chief executive of the state oil giant, told Reuters that his company would abide by any OPEC agreement to cut crude production in 2019, less than two weeks before the exporter group meets to decide output policy.
But he added that he still sees growth opportunities in Asia - identifying China, India, Malaysia and Indonesia - and will push ahead with refining ventures to guarantee new outlets for Aramco’s crude.
Saudi Aramco will expand its market share in Asia despite likely OPEC limits on output next year, and is eyeing deals in China and Africa as it aims to become a global leader in chemicals, the head of the world’s top oil producer said on Monday.
Amin Nasser, chief executive of the state oil giant, told Reuters that his company would abide by any OPEC agreement to cut crude production in 2019, less than two weeks before the exporter group meets to decide output policy.
But he added that he still sees growth opportunities in Asia - identifying China, India, Malaysia and Indonesia - and will push ahead with refining ventures to guarantee new outlets for Aramco’s crude.
General Atlantic leads $120 mln investment in Dubai's Property Finder | Reuters
General Atlantic leads $120 mln investment in Dubai's Property Finder | Reuters:
Private equity firm General Atlantic has led a $120 million investment and acquired a minority stake in Middle East real estate classifieds website Property Finder.
Property Finder’s chief executive told Reuters the money would be invested in product and technology.
“We want to continue building the best product and data information available to the public,” Michael Lahyani said at the company’s headquarters in Dubai.
Private equity firm General Atlantic has led a $120 million investment and acquired a minority stake in Middle East real estate classifieds website Property Finder.
Property Finder’s chief executive told Reuters the money would be invested in product and technology.
“We want to continue building the best product and data information available to the public,” Michael Lahyani said at the company’s headquarters in Dubai.
Saudi Arabia oil pumping at record high as Trump raises pressure | Reuters
Saudi Arabia oil pumping at record high as Trump raises pressure | Reuters:
Saudi Arabia raised oil production to an all-time high in November, an industry source said on Monday, as U.S. President Donald Trump piled pressure on the kingdom to refrain from production cuts at an OPEC meeting next week.
The industry source, who is familiar with the matter, said Saudi crude oil production hit 11.1-11.3 million barrels per day (bpd) in November, although it will not be clear what the exact average November output is until the month is over.
Those levels are up around 0.5 million bpd - equal to 0.5 percent of global demand - from October and more than 1 million bpd higher than in early 2018, when Riyadh was curtailing production together with other OPEC members.
Saudi Arabia raised oil production to an all-time high in November, an industry source said on Monday, as U.S. President Donald Trump piled pressure on the kingdom to refrain from production cuts at an OPEC meeting next week.
The industry source, who is familiar with the matter, said Saudi crude oil production hit 11.1-11.3 million barrels per day (bpd) in November, although it will not be clear what the exact average November output is until the month is over.
Those levels are up around 0.5 million bpd - equal to 0.5 percent of global demand - from October and more than 1 million bpd higher than in early 2018, when Riyadh was curtailing production together with other OPEC members.
Leaders of Qatar and Turkey meet for strategic dialogue as partnership strengthens | Foreign Brief
Leaders of Qatar and Turkey meet for strategic dialogue as partnership strengthens | Foreign Brief:
Qatari Emir Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan will meet in Istanbul today for the fourth Turkey-Qatar Supreme Strategic Committee meeting.
The two leaders will likely discuss, among other things, a more unified response to the murder of Saudi journalist Jamal Khashoggi. Erdogan has demanded accountability from Riyadh, which continues to deny that Crown Prince Mohammed bin Salman had any involvement in the killing.
Last week, Doha called for similar accountability from the Saudi regime, an indication that it has few intentions of precipitating a thaw in tensions between itself and the other gulf monarchies and will continue strengthening relations with Turkey and Iran.
Qatari Emir Sheikh Tamim bin Hamad Al-Thani and Turkish President Recep Tayyip Erdogan will meet in Istanbul today for the fourth Turkey-Qatar Supreme Strategic Committee meeting.
The two leaders will likely discuss, among other things, a more unified response to the murder of Saudi journalist Jamal Khashoggi. Erdogan has demanded accountability from Riyadh, which continues to deny that Crown Prince Mohammed bin Salman had any involvement in the killing.
Last week, Doha called for similar accountability from the Saudi regime, an indication that it has few intentions of precipitating a thaw in tensions between itself and the other gulf monarchies and will continue strengthening relations with Turkey and Iran.
Sunday 25 November 2018
Battered oil roils Saudi’s Tadawul index
Battered oil roils Saudi’s Tadawul index:
Saudi Arabia’s Tadawul index closed more than 1 per cent lower on Sunday due to an 8 per cent fall in oil prices.
The Tadawul index closed 1.25 per cent lower at 7,512.57. The energy index closed 1.96 per cent lower at 4,723.21. The market breadth was negative with declines seen in 147 shares. Alinma Bank closed 0.77 per cent lower at 20.66 Saudi riyals, while Saudi Basic Industries Corp. closed 1.70 per cent lower at 115.40 riyals. Saudi Kayan Petrochemical Co. closed 3 per cent lower at 13.28 riyals.
Al Hassan Ghazi Ibrahim Shaker Co. closed 0.34 per cent lower at 8.77 riyals. “The trend still remains strong in Shaker and a break over shall push its way up towards the next target at 9.90 riyals in the short term. Traders may look to book partial profits and balance hold with stop loss trailed higher to the breakeven,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note.
Saudi Arabia’s Tadawul index closed more than 1 per cent lower on Sunday due to an 8 per cent fall in oil prices.
The Tadawul index closed 1.25 per cent lower at 7,512.57. The energy index closed 1.96 per cent lower at 4,723.21. The market breadth was negative with declines seen in 147 shares. Alinma Bank closed 0.77 per cent lower at 20.66 Saudi riyals, while Saudi Basic Industries Corp. closed 1.70 per cent lower at 115.40 riyals. Saudi Kayan Petrochemical Co. closed 3 per cent lower at 13.28 riyals.
Al Hassan Ghazi Ibrahim Shaker Co. closed 0.34 per cent lower at 8.77 riyals. “The trend still remains strong in Shaker and a break over shall push its way up towards the next target at 9.90 riyals in the short term. Traders may look to book partial profits and balance hold with stop loss trailed higher to the breakeven,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note.
INTERVIEW: UAE'S NMC Health's Prasanth Manghat has big plans for healthcare in Saudi Arabia
INTERVIEW: UAE'S NMC Health's Prasanth Manghat has big plans for healthcare in Saudi Arabia:
NMC Health has a reasonable claim to be the most successful company to emerge from the UAE on the global stage.
Started by the legendary Indian entrepreneur BR Shetty out of a door-to-door business selling basic medical supplies in the 1970s, NMC gradually became a universal health-care provider, expanding from the UAE capital across the region. For Emiratis, it was the closest they got to a national health service, obviating the need in many cases to travel abroad for medical treatment.
In a corporate sense, NMC is a standard bearer too. Its 2012 listing on the London stock market was a wealth creator for its backers — mainly prominent Emirati investors — who have seen the value of their shares more than triple.
NMC Health has a reasonable claim to be the most successful company to emerge from the UAE on the global stage.
Started by the legendary Indian entrepreneur BR Shetty out of a door-to-door business selling basic medical supplies in the 1970s, NMC gradually became a universal health-care provider, expanding from the UAE capital across the region. For Emiratis, it was the closest they got to a national health service, obviating the need in many cases to travel abroad for medical treatment.
In a corporate sense, NMC is a standard bearer too. Its 2012 listing on the London stock market was a wealth creator for its backers — mainly prominent Emirati investors — who have seen the value of their shares more than triple.
Qatar emerges stronger despite blockade: Canada’s Ambassador - The Peninsula Qatar
Qatar emerges stronger despite blockade: Canada’s Ambassador - The Peninsula Qatar:
Qatar and Canada bilateral trade volume is expected to witness sharp growth in 2018 and beyond as both sides are working very actively to deepen and expand bilateral cooperation in almost all fields, including economics, trade, investment and diplomacy, noted a top Canadian diplomat in Qatar at an event.
Although the bilateral trade volume between Qatar and Canada is modest at C$174m (about QR480m) but there is a huge untapped potential to enhance economic and commercial ties in a variety of sectors. In addition, both sides are also working for exchange of delegations, including high-level political visits between Qatar and Canada.
“There is a renewed interest and enthusiasm on both sides to strengthen economic, commercial and diplomatic ties between Canada and Qatar. We are also working to have exchange of high-level political visits which will help pave the way for expanding cooperation,” said Stefanie McCollum, Canada’s Ambassador to Qatar.
Qatar and Canada bilateral trade volume is expected to witness sharp growth in 2018 and beyond as both sides are working very actively to deepen and expand bilateral cooperation in almost all fields, including economics, trade, investment and diplomacy, noted a top Canadian diplomat in Qatar at an event.
Although the bilateral trade volume between Qatar and Canada is modest at C$174m (about QR480m) but there is a huge untapped potential to enhance economic and commercial ties in a variety of sectors. In addition, both sides are also working for exchange of delegations, including high-level political visits between Qatar and Canada.
“There is a renewed interest and enthusiasm on both sides to strengthen economic, commercial and diplomatic ties between Canada and Qatar. We are also working to have exchange of high-level political visits which will help pave the way for expanding cooperation,” said Stefanie McCollum, Canada’s Ambassador to Qatar.
U.A.E. Long-Term Visa Rules Bypass Most of Country's Residents - Bloomberg
U.A.E. Long-Term Visa Rules Bypass Most of Country's Residents - Bloomberg:
The United Arab Emirates’ plan to grant long-term visas to the country’s largely expatriate population excludes most foreign residents, benefiting only the affluent and people with specialized expertise.
The long-awaited program falls short of many people’s expectations after the Arab world’s second-largest economy said it plans to ease residency rules earlier this year. Foreigners make up close to 90 percent of the U.A.E.’s 9.7 million people, and the policy shift was meant to give expatriates a bigger stake in the economy and foster long-term growth.
Long-term visas of five to 10 years will be limited to wealthy property investors, entrepreneurs and “specialized talents and researchers,” according to a statement on state-run WAM news agency. A minimum investment of 5 million dirhams ($1.4 million) is needed to obtain a five-year visa, and double that amount is necessary for a decade-long visa.
The United Arab Emirates’ plan to grant long-term visas to the country’s largely expatriate population excludes most foreign residents, benefiting only the affluent and people with specialized expertise.
The long-awaited program falls short of many people’s expectations after the Arab world’s second-largest economy said it plans to ease residency rules earlier this year. Foreigners make up close to 90 percent of the U.A.E.’s 9.7 million people, and the policy shift was meant to give expatriates a bigger stake in the economy and foster long-term growth.
Long-term visas of five to 10 years will be limited to wealthy property investors, entrepreneurs and “specialized talents and researchers,” according to a statement on state-run WAM news agency. A minimum investment of 5 million dirhams ($1.4 million) is needed to obtain a five-year visa, and double that amount is necessary for a decade-long visa.
Donald Trump and America Can't Live Without OPEC - Bloomberg
Donald Trump and America Can't Live Without OPEC - Bloomberg: The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the kingdom and its young leader-in-waiting and put at risk those arms sales the president is so keen on.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the kingdom and its young leader-in-waiting and put at risk those arms sales the president is so keen on.
House Panel to Probe Trump's Financial Ties With Saudi Arabia - Bloomberg
House Panel to Probe Trump's Financial Ties With Saudi Arabia - Bloomberg:
Democrats will probe whether President Donald Trump has financial ties with Saudi Arabia that colored his response to the murder of a U.S.-based journalist, said the top Democrat on the House Intelligence Committee.
“Is his personal financial interest driving U.S. policy in the Gulf?’’ Representative Adam Schiff of California, who’s expected to chair the panel in the new Congress, said on CNN’s “State of the Union” Sunday. “We don’t know, but it would be irresponsible not to find out.’’
Democratic Representative Elijah Cummings of Maryland, in line to lead the House Oversight and Government Reform Committee, also said on NBC’s “Meet the Press” that “it’s definitely something that we need to look into.”
Democrats will probe whether President Donald Trump has financial ties with Saudi Arabia that colored his response to the murder of a U.S.-based journalist, said the top Democrat on the House Intelligence Committee.
“Is his personal financial interest driving U.S. policy in the Gulf?’’ Representative Adam Schiff of California, who’s expected to chair the panel in the new Congress, said on CNN’s “State of the Union” Sunday. “We don’t know, but it would be irresponsible not to find out.’’
Democratic Representative Elijah Cummings of Maryland, in line to lead the House Oversight and Government Reform Committee, also said on NBC’s “Meet the Press” that “it’s definitely something that we need to look into.”
Abu Dhabi's FAB set for asset growth as cost synergies improve | ZAWYA MENA Edition
Abu Dhabi's FAB set for asset growth as cost synergies improve | ZAWYA MENA Edition:
Bahrain-based investment bank SICO has raised its target price on First Abu Dhabi Bank, citing stronger conditions, but maintained its 'Neutral' rating on the stock, arguing that the benefits of the likely improvement in its performance has already been priced into its stock.
A note published on Tuesday by banking analyst Chiradeep Ghose increased SICO's target price on FAB to 15 UAE dirhams ($4.08) per share, up from 12 dirhams previously. The stock closed on Sunday down 8 fils to 14.40 dirhams per share.
Ghose's note stated that the reason for the uplift in its target price is that it expects the bank's balance sheet to continue its recent growth. It anticipates loan book growth of 8 percent for the bank this year, in line with management guidance. It also expects sustainable growth of around 7 percent over the next three years, which is marginally higher than the forecast rate of 5-6 percent for the rest of the United Arab Emirates' banking sector.
Bahrain-based investment bank SICO has raised its target price on First Abu Dhabi Bank, citing stronger conditions, but maintained its 'Neutral' rating on the stock, arguing that the benefits of the likely improvement in its performance has already been priced into its stock.
A note published on Tuesday by banking analyst Chiradeep Ghose increased SICO's target price on FAB to 15 UAE dirhams ($4.08) per share, up from 12 dirhams previously. The stock closed on Sunday down 8 fils to 14.40 dirhams per share.
Ghose's note stated that the reason for the uplift in its target price is that it expects the bank's balance sheet to continue its recent growth. It anticipates loan book growth of 8 percent for the bank this year, in line with management guidance. It also expects sustainable growth of around 7 percent over the next three years, which is marginally higher than the forecast rate of 5-6 percent for the rest of the United Arab Emirates' banking sector.
Trade Bank of Iraq, StanChart, GE close $600 million power finance deal | Reuters
Trade Bank of Iraq, StanChart, GE close $600 million power finance deal | Reuters:
Trade Bank of Iraq, Standard Chartered (STAN.L) and General Electric (GE.N) closed a $600 million financing agreement to fund a power project in Iraq, the trio said on Sunday.
Aimed at delivering more than two gigawatts of new power to Iraq, the ‘Power up Plan’ was part of the country’s rebuilding and modernization scheme, the parties said in a statement.
The financing agreement is the largest bespoke letter of credit confirmation and discounting transaction of its kind in the region.
Trade Bank of Iraq, Standard Chartered (STAN.L) and General Electric (GE.N) closed a $600 million financing agreement to fund a power project in Iraq, the trio said on Sunday.
Aimed at delivering more than two gigawatts of new power to Iraq, the ‘Power up Plan’ was part of the country’s rebuilding and modernization scheme, the parties said in a statement.
The financing agreement is the largest bespoke letter of credit confirmation and discounting transaction of its kind in the region.
Saudi Aramco to sign 30 deals worth about $25 billion as part of local content push: executive | Reuters
Saudi Aramco to sign 30 deals worth about $25 billion as part of local content push: executive | Reuters:
Saudi Aramco will sign this week 30 agreements worth about $25 billion with local and foreign companies as part of a drive to expand the kingdom’s industrial base and manufacture a bigger share of products domestically, an Aramco executive said on Sunday.
The agreements will be signed on the sidelines of Aramco’s In-Kingdom Total Value Add Program (IKTVA), which will take place on Monday and Tuesday.
IKTVA is a plan outlined by the state oil giant a few years ago, aimed at doubling the percentage of locally produced energy-related goods and services to 70 percent of the total spent by 2021.
Saudi Aramco will sign this week 30 agreements worth about $25 billion with local and foreign companies as part of a drive to expand the kingdom’s industrial base and manufacture a bigger share of products domestically, an Aramco executive said on Sunday.
The agreements will be signed on the sidelines of Aramco’s In-Kingdom Total Value Add Program (IKTVA), which will take place on Monday and Tuesday.
IKTVA is a plan outlined by the state oil giant a few years ago, aimed at doubling the percentage of locally produced energy-related goods and services to 70 percent of the total spent by 2021.
Donald Trump and America Can't Live Without OPEC - Bloomberg
Donald Trump and America Can't Live Without OPEC - Bloomberg:
The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the
The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the
Saudi Prince’s Protectors Can’t Stop Speculation Over His Fate - Bloomberg
Saudi Prince’s Protectors Can’t Stop Speculation Over His Fate - Bloomberg:
Saudi Crown Prince Mohammed bin Salman has been spending remarkably more time with his father in public since the international condemnation of last month’s murder of a U.S.-based newspaper columnist. They pressed the flesh with Saudis on a tour of conservative heartlands and last week inaugurated a giant industrial park together.
Donald Trump, meanwhile, did his bit to shield the prince. He has repeatedly avoided laying blame for the Oct. 2 killing of Jamal Khashoggi and lauded Saudi Arabia for a sharp drop in oil prices.
With such powerful people in his corner, the conventional wisdom may be that Prince Mohammed will survive the fallout from the brutal dispatching of a critic. Indeed, he headed next door to the United Arab Emirates on Thursday for talks with a key ally and looks increasingly likely to attend the Group of 20 summit in Argentina. But there are still many unknowns, and the fate of the young leader is the talk of the town in Riyadh.
Saudi Crown Prince Mohammed bin Salman has been spending remarkably more time with his father in public since the international condemnation of last month’s murder of a U.S.-based newspaper columnist. They pressed the flesh with Saudis on a tour of conservative heartlands and last week inaugurated a giant industrial park together.
Donald Trump, meanwhile, did his bit to shield the prince. He has repeatedly avoided laying blame for the Oct. 2 killing of Jamal Khashoggi and lauded Saudi Arabia for a sharp drop in oil prices.
With such powerful people in his corner, the conventional wisdom may be that Prince Mohammed will survive the fallout from the brutal dispatching of a critic. Indeed, he headed next door to the United Arab Emirates on Thursday for talks with a key ally and looks increasingly likely to attend the Group of 20 summit in Argentina. But there are still many unknowns, and the fate of the young leader is the talk of the town in Riyadh.
Donald Trump and America Can't Live Without OPEC - Bloomberg
Donald Trump and America Can't Live Without OPEC - Bloomberg:
The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the kingdom and its young leader-in-waiting and put at risk those arms sales the president is so keen on.
The U.S. Department of Justice is formally reviewing antitrust laws aimed at curbing OPEC’s power over oil markets, raising the prospect of anti-OPEC legislation landing on President Donald Trump’s desk for signature. Tempting as it might be, the long-term cost of ending the group’s influence over prices would far outweigh any quick gains.
Bipartisan anti-OPEC bills have been introduced in both the House and Senate, although neither chamber has voted on them yet. The House Judiciary Committee in June approved the “No Oil Producing and Exporting Cartels Act,” or NOPEC bill. That would amend the Sherman Antitrust Act of 1890 to give the U.S. Attorney General authority to file a suit against OPEC for trying to control oil production or affect crude prices. Previous presidents said they would veto any such legislation. How Trump would react is, as so often, impossible to predict.
His love of cheap gasoline and frequent Twitter rants against OPEC suggest that lawmakers have more of a friend in the White House. But Trump’s equally public support for Saudi Arabia’s embattled Crown Prince Mohammed bin Salman hints that even he may balk at signing into law an act that would damage the kingdom and its young leader-in-waiting and put at risk those arms sales the president is so keen on.
Dubai Investments expands healthcare portfolio | ZAWYA MENA Edition
Dubai Investments expands healthcare portfolio | ZAWYA MENA Edition:
Dubai Investments announced that it has expanded its healthcare portfolio with a 20 percent stake in an equity partnership in the AED465 million Clemenceau Medical Centre, a new development which will offer specialty care across multiple disciplines in Dubai Healthcare City Phase 2.
The equity partnership with Khansaheb Investments (55%) and CMC SAL (25%) is the latest addition to the Dubai Investments healthcare portfolio, which also includes an equity partnership for a multi-disciplinary hospital and day care clinics in Dubai, operated under the world renowned British teaching hospital, King’s College Hospital London. Construction at the Clemenceau Medical Centre is now 68 percent complete, and the 110-bed specialty care facility is expected to open in June 2019. "Healthcare is one of the core development sectors of the nation, and there are concerted initiatives to strengthen it and bring world-class medical facilities to the region. Through our equity participation in the new Clemenceau Medical Centre in Dubai, we are underpinning our focus on strategic investments in the sector that will contribute to the well-being of the people and improve upon the reputation of the Emirateas a hub for world-class medical care.
Dubai Investments announced that it has expanded its healthcare portfolio with a 20 percent stake in an equity partnership in the AED465 million Clemenceau Medical Centre, a new development which will offer specialty care across multiple disciplines in Dubai Healthcare City Phase 2.
The equity partnership with Khansaheb Investments (55%) and CMC SAL (25%) is the latest addition to the Dubai Investments healthcare portfolio, which also includes an equity partnership for a multi-disciplinary hospital and day care clinics in Dubai, operated under the world renowned British teaching hospital, King’s College Hospital London. Construction at the Clemenceau Medical Centre is now 68 percent complete, and the 110-bed specialty care facility is expected to open in June 2019. "Healthcare is one of the core development sectors of the nation, and there are concerted initiatives to strengthen it and bring world-class medical facilities to the region. Through our equity participation in the new Clemenceau Medical Centre in Dubai, we are underpinning our focus on strategic investments in the sector that will contribute to the well-being of the people and improve upon the reputation of the Emirateas a hub for world-class medical care.
Trade Bank of Iraq, StanChart, GE close $600 million power finance deal | Reuters
Trade Bank of Iraq, StanChart, GE close $600 million power finance deal | Reuters:
Trade Bank of Iraq, Standard Chartered (STAN.L) and General Electric (GE.N) closed a $600 million financing agreement to fund a power project in Iraq, the trio said on Sunday.
Aimed at delivering more than two gigawatts of new power to Iraq, the ‘Power up Plan’ was part of the country’s rebuilding and modernization scheme, the parties said in a statement.
The financing agreement is the largest bespoke letter of credit confirmation and discounting transaction of its kind in the region.
Trade Bank of Iraq, Standard Chartered (STAN.L) and General Electric (GE.N) closed a $600 million financing agreement to fund a power project in Iraq, the trio said on Sunday.
Aimed at delivering more than two gigawatts of new power to Iraq, the ‘Power up Plan’ was part of the country’s rebuilding and modernization scheme, the parties said in a statement.
The financing agreement is the largest bespoke letter of credit confirmation and discounting transaction of its kind in the region.
UPDATE 1-Iran says China's CNPC replacing France's Total in gas project | Reuters
UPDATE 1-Iran says China's CNPC replacing France's Total in gas project | Reuters:
China’s state-owned CNPC has replaced France’s Total in Iran’s multibillion-dollar South Pars gas project, Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ICANA on Sunday.
“China’s CNPC has officially replaced Total in phase 11 of South Pars but it has not started work practically. Talks need to be held with CNPC ... about when it will start operations,” Zanganeh told ICANA, without giving further details.
Total, which had a 50.1 percent stake in the project, and CNPC could not immediately be reached for comment.
China’s state-owned CNPC has replaced France’s Total in Iran’s multibillion-dollar South Pars gas project, Iranian Oil Minister Bijan Zanganeh said, according to the semi-official news agency ICANA on Sunday.
“China’s CNPC has officially replaced Total in phase 11 of South Pars but it has not started work practically. Talks need to be held with CNPC ... about when it will start operations,” Zanganeh told ICANA, without giving further details.
Total, which had a 50.1 percent stake in the project, and CNPC could not immediately be reached for comment.
UAE seeks rich, educated foreigners with long-term visa scheme | Reuters
UAE seeks rich, educated foreigners with long-term visa scheme | Reuters:
The United Arab Emirates will offer long-term visas to rich property investors, senior scientists and entrepreneurs in an effort to support its economy and real estate market, which have been hurt by low oil prices.
Until now, visas for foreigners to live in the Arab world’s second biggest economy have generally been valid for only a few years, and have depended on the main visa holder in each family remaining employed. The government said in May it planned to ease that policy.
Detailed rules approved by the cabinet on Saturday offer five-year residency to owners of UAE real estate worth at least 5 million dirhams ($1.4 million), as long as ownership is not based on loans, state news agency WAM reported.
The United Arab Emirates will offer long-term visas to rich property investors, senior scientists and entrepreneurs in an effort to support its economy and real estate market, which have been hurt by low oil prices.
Until now, visas for foreigners to live in the Arab world’s second biggest economy have generally been valid for only a few years, and have depended on the main visa holder in each family remaining employed. The government said in May it planned to ease that policy.
Detailed rules approved by the cabinet on Saturday offer five-year residency to owners of UAE real estate worth at least 5 million dirhams ($1.4 million), as long as ownership is not based on loans, state news agency WAM reported.
UAE lender UNB hires JPMorgan for merger talks: sources | Reuters
UAE lender UNB hires JPMorgan for merger talks: sources | Reuters:
Abu Dhabi lender Union National Bank (UNB) UNB.AD has hired JPMorgan (JPM.N) to advise on its merger talks with Abu Dhabi Commercial Bank (ADCB) ADCB.AD, three sources familiar with the move said.
The merger, which will also involve unlisted Al Hilal Bank, was announced by the banks in September and is the latest consolidation among state-owned companies in the United Arab Emirates’ capital.
If it goes ahead, a merger of the trio could create an entity with about $113 billion in assets, according to Refinitiv data, and the UAE’s third-biggest lender after First Abu Dhabi Bank (FAB) FAB.AD and Emirates NBD ENBD.DU.
Abu Dhabi lender Union National Bank (UNB) UNB.AD has hired JPMorgan (JPM.N) to advise on its merger talks with Abu Dhabi Commercial Bank (ADCB) ADCB.AD, three sources familiar with the move said.
The merger, which will also involve unlisted Al Hilal Bank, was announced by the banks in September and is the latest consolidation among state-owned companies in the United Arab Emirates’ capital.
If it goes ahead, a merger of the trio could create an entity with about $113 billion in assets, according to Refinitiv data, and the UAE’s third-biggest lender after First Abu Dhabi Bank (FAB) FAB.AD and Emirates NBD ENBD.DU.
Weekly Q&A: "The GCC construction sector is showing the first signs of recovery" | ZAWYA MENA Edition
Weekly Q&A: "The GCC construction sector is showing the first signs of recovery" | ZAWYA MENA Edition:
1. What is the general outlook for the real estate sector in the MENA region?
Giving the cyclicality of the sector, currently characterised by an oversupply in most of the countries in the regions, the global picture for the real estate sector has taken a serious hit. Apart from the significant pressure on margins, due to a severe price decline in properties and soaring prices of construction materials, the outlook is less rosier than we had expected following the oil rebound.
Another aspect that the majority of market observers neglect is the collapse of the purchasing power among youth taking their first steps in the world of work and that access to credit is even more problematic (particularly with the tightening of capital requirements). It is a structural problem, where the solutions are not easy to implement.
1. What is the general outlook for the real estate sector in the MENA region?
Giving the cyclicality of the sector, currently characterised by an oversupply in most of the countries in the regions, the global picture for the real estate sector has taken a serious hit. Apart from the significant pressure on margins, due to a severe price decline in properties and soaring prices of construction materials, the outlook is less rosier than we had expected following the oil rebound.
Another aspect that the majority of market observers neglect is the collapse of the purchasing power among youth taking their first steps in the world of work and that access to credit is even more problematic (particularly with the tightening of capital requirements). It is a structural problem, where the solutions are not easy to implement.
Mideast Stocks - Saudi petchems lead Gulf lower on oil price tumble | ZAWYA MENA Edition
Mideast Stocks - Saudi petchems lead Gulf lower on oil price tumble | ZAWYA MENA Edition:
Saudi Arabia's stock market led Gulf bourses lower early on Sunday after oil prices plunged nearly 8 percent at the end of last week because of intensifying fears of a supply glut.
The slide of the Brent oil price from $85 a barrel at the start of October to below $65 has wiped $130 billion or 9 percent of gross domestic product off the Gulf's oil export revenues on an annualised basis, London-based Capital Economics estimated last week.
That may do little direct damage to Gulf economies; fiscal reforms in the last few years mean most governments will remain able to spend more on economic growth next year, and do not face balance of payments crises.
Saudi Arabia's stock market led Gulf bourses lower early on Sunday after oil prices plunged nearly 8 percent at the end of last week because of intensifying fears of a supply glut.
The slide of the Brent oil price from $85 a barrel at the start of October to below $65 has wiped $130 billion or 9 percent of gross domestic product off the Gulf's oil export revenues on an annualised basis, London-based Capital Economics estimated last week.
That may do little direct damage to Gulf economies; fiscal reforms in the last few years mean most governments will remain able to spend more on economic growth next year, and do not face balance of payments crises.
Saturday 24 November 2018
AP Interview: Saudi royal says crown prince is here to stay
AP Interview: Saudi royal says crown prince is here to stay:
A prominent Saudi royal said Saturday that whether or not heads of state gathered in Argentina next week for the Group of 20 summit warmly engage with Crown Prince Mohammed bin Salman, he is someone “that they have to deal with.”
Prince Turki al-Faisal told The Associated Press the killing of Saudi writer Jamal Khashoggi in the kingdom’s consulate in Istanbul last month is “an unacceptable incident that tars and mars the long record of Saudi Arabia’s own standing in the world.”
“We will have to bear that. It’s not something that should not be faced. And we do face it,” he said.
A prominent Saudi royal said Saturday that whether or not heads of state gathered in Argentina next week for the Group of 20 summit warmly engage with Crown Prince Mohammed bin Salman, he is someone “that they have to deal with.”
Prince Turki al-Faisal told The Associated Press the killing of Saudi writer Jamal Khashoggi in the kingdom’s consulate in Istanbul last month is “an unacceptable incident that tars and mars the long record of Saudi Arabia’s own standing in the world.”
“We will have to bear that. It’s not something that should not be faced. And we do face it,” he said.
Friday 23 November 2018
Dubai property market should find its own solution for oversupply
Dubai property market should find its own solution for oversupply:
In recent weeks, there appears to have been a plethora of commentary suggesting that the government should take measures to halt the supply of real estate. This has contributed to a flood of negative media that has captured the attention of commentators who are concerned about the current state of the economy.
I find these reactions to be incredulous; the focus appears to always be on the government interfering with the state of the economy in order to somehow “improve” things. However, what is not appreciated is that Dubai, and the UAE, are in an ecosystem, a framework of laws and regulations that is known for its thriving business and entrepreneurial sector.
Granted, this has been a system where there has been a symbiosis between the government and the private sector. However, it is clear that the private sector has always led the way in cementing the city — and the country’s — image of being a pioneer in the fields of business creativity.
In recent weeks, there appears to have been a plethora of commentary suggesting that the government should take measures to halt the supply of real estate. This has contributed to a flood of negative media that has captured the attention of commentators who are concerned about the current state of the economy.
I find these reactions to be incredulous; the focus appears to always be on the government interfering with the state of the economy in order to somehow “improve” things. However, what is not appreciated is that Dubai, and the UAE, are in an ecosystem, a framework of laws and regulations that is known for its thriving business and entrepreneurial sector.
Granted, this has been a system where there has been a symbiosis between the government and the private sector. However, it is clear that the private sector has always led the way in cementing the city — and the country’s — image of being a pioneer in the fields of business creativity.
As Oil Plunges, the Real OPEC Meeting Will Be at Next Week's G20 - Bloomberg
As Oil Plunges, the Real OPEC Meeting Will Be at Next Week's G20 - Bloomberg:
For the oil market, it looks like the real OPEC meeting will come a week ahead of schedule.
The cartel is set to meet on Dec. 6 in Vienna, but days earlier the key decision makers are set to gather on the sidelines of the G20 summit in Buenos Aires in a meeting that may well decide the direction of oil prices in 2019.
Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin, who lead the world’s two largest oil exporters and have been working together to manage the oil market for the past two years, both plan to be in the Argentinian capital at the end of next week. Just as important will be U.S. President Donald Trump, who’s made his opposition to OPEC a regular theme in his Twitter diplomacy.
For the oil market, it looks like the real OPEC meeting will come a week ahead of schedule.
The cartel is set to meet on Dec. 6 in Vienna, but days earlier the key decision makers are set to gather on the sidelines of the G20 summit in Buenos Aires in a meeting that may well decide the direction of oil prices in 2019.
Saudi Crown Prince Mohammed bin Salman and Russian President Vladimir Putin, who lead the world’s two largest oil exporters and have been working together to manage the oil market for the past two years, both plan to be in the Argentinian capital at the end of next week. Just as important will be U.S. President Donald Trump, who’s made his opposition to OPEC a regular theme in his Twitter diplomacy.
Oil plunges nearly 8 percent despite talk of output cut | Reuters
Oil plunges nearly 8 percent despite talk of output cut | Reuters:
Oil prices slumped up to nearly 8 percent to the lowest in more than a year on Friday, posting the seventh consecutive weekly loss, amid intensifying fears of a supply glut even as major producers consider cutting output.
Oil supply, led by U.S. producers, is growing faster than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries is expected to start trimming output after a meeting on Dec. 6.
But this has done little so far to prop up prices, which have dropped more than 20 percent so far in November, in a seven-week streak of losses. Prices were on course for their biggest one-month decline since late 2014.
Oil prices slumped up to nearly 8 percent to the lowest in more than a year on Friday, posting the seventh consecutive weekly loss, amid intensifying fears of a supply glut even as major producers consider cutting output.
Oil supply, led by U.S. producers, is growing faster than demand and to prevent a build-up of unused fuel such as the one that emerged in 2015, the Organization of the Petroleum Exporting Countries is expected to start trimming output after a meeting on Dec. 6.
But this has done little so far to prop up prices, which have dropped more than 20 percent so far in November, in a seven-week streak of losses. Prices were on course for their biggest one-month decline since late 2014.
Brent crude futures settled down $3.80 a barrel, or 6.1 percent at $58.80. During the session, the benchmark dropped to $58.41, the lowest since October 2017.
U.S. West Texas Intermediate crude (WTI) lost $4.21, or 7.7 percent, to trade at $50.42, also the weakest since October 2017. In post-settlement trade, the contract continued to fall.