Dubai rents stabilize for the first time in two years:
"Dubai residential rents stabilized for the first time in two years last quarter, according to real estate consultancy Cluttons, even as the imminent delivery of new rental stock is likely to further depress rates throughout the year.
Rental rates were unchanged for the first quarter of the year, Cluttons reported on Sunday, with 3.1 percent lower than the year-ago period. But rents are expected to fall by 5-7 percent over the remainder of the year, the consultancy forecast.
“We expect newly completed rental properties to command the attention of tenants, while older and more secondary property will register rent falls,” said Murray Strang, Head of Cluttons Dubai."
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Sunday 22 April 2018
Gulf companies challenged by debt and rising interest rates
Gulf companies challenged by debt and rising interest rates:
"There has been an uptick in recent months in heavily-borrowed companies in the Gulf seeking to restructure their debts with lenders. Although the pressure on companies is not comparable to levels witnessed in the region following the 2008 global financial crisis, rising interest rates will eventually begin to have a greater impact, say experts. Speaking exclusively to Arab news, Matthew Wilde, a partner at consultancy PwC in Dubai, said: “We do expect that interest rate increases will gradually start to impact companies over the next 12 months, but to date the impact of hedging and the runoff of older fixed rate deals has meant the impact is fairly muted so far.” The Central Bank of the UAE has raised interest rates four times since the start of last year, in line with action taken by the US Federal Reserve. The Fed has signalled that it will raise interest rates at least twice more before the end of the year."
'via Blog this'
"There has been an uptick in recent months in heavily-borrowed companies in the Gulf seeking to restructure their debts with lenders. Although the pressure on companies is not comparable to levels witnessed in the region following the 2008 global financial crisis, rising interest rates will eventually begin to have a greater impact, say experts. Speaking exclusively to Arab news, Matthew Wilde, a partner at consultancy PwC in Dubai, said: “We do expect that interest rate increases will gradually start to impact companies over the next 12 months, but to date the impact of hedging and the runoff of older fixed rate deals has meant the impact is fairly muted so far.” The Central Bank of the UAE has raised interest rates four times since the start of last year, in line with action taken by the US Federal Reserve. The Fed has signalled that it will raise interest rates at least twice more before the end of the year."
'via Blog this'
Where does the Middle East stand in the new world trade disorder? | Arab News
Where does the Middle East stand in the new world trade disorder? | Arab News:
"Who could possibly be against trade? It is one of the great unifying and civilizing activities of human beings, it allows for cultural interaction that surely promotes world peace, and it contributes to the material well-being of humanity. It is a no-brainer. A top level forum took place in Dubai on Sunday under the auspices of Asia House, a UK-based think tank, and the Dubai Multi Commodities Center, the UAE’s fastest growing free zone, which decided that actually, quite a few people in the early 21st century were turning increasingly against the very idea of global free trade. President Trump, of course, with his America First dogma, was often mentioned as the main threat to the 200-year trend toward greater trade liberalization; those pesky British Brexiters were named and shamed; and China, which preaches its championship of global free trade but often behaves in contradictory manner, was also highlighted. "
'via Blog this'
"Who could possibly be against trade? It is one of the great unifying and civilizing activities of human beings, it allows for cultural interaction that surely promotes world peace, and it contributes to the material well-being of humanity. It is a no-brainer. A top level forum took place in Dubai on Sunday under the auspices of Asia House, a UK-based think tank, and the Dubai Multi Commodities Center, the UAE’s fastest growing free zone, which decided that actually, quite a few people in the early 21st century were turning increasingly against the very idea of global free trade. President Trump, of course, with his America First dogma, was often mentioned as the main threat to the 200-year trend toward greater trade liberalization; those pesky British Brexiters were named and shamed; and China, which preaches its championship of global free trade but often behaves in contradictory manner, was also highlighted. "
'via Blog this'
QSE declines on selling pressure, weak buying interests by funds
QSE declines on selling pressure, weak buying interests by funds:
"The Qatar Stock Exchange on Sunday opened the week weak, after four consecutive days of bearish spell, mainly on substantially weakened buying interests of foreign and Gulf funds. Selling pressure – especially in real estate, industrials and insurance – led the 20-stock Qatar Index decline 0.45% to 9,155.55 points. Doha Bank and Masraf Al Rayan sponsored exchange traded funds QETF and QATR witnessed 0.66% and 0.55% declines respectively."
'via Blog this'
"The Qatar Stock Exchange on Sunday opened the week weak, after four consecutive days of bearish spell, mainly on substantially weakened buying interests of foreign and Gulf funds. Selling pressure – especially in real estate, industrials and insurance – led the 20-stock Qatar Index decline 0.45% to 9,155.55 points. Doha Bank and Masraf Al Rayan sponsored exchange traded funds QETF and QATR witnessed 0.66% and 0.55% declines respectively."
'via Blog this'
Effects of blockade fade on resilience of Qatar: Aamal
Effects of blockade fade on resilience of Qatar: Aamal:
"Qatar has successfully navigated through the continuing blockade, which “undoubtedly created some challenging headwinds”, according to a top official of Aamal Company. “I believe this is testimony not only to the resilience of the Qatari economy but also to the strong and clear leadership that our national government provides as we strive to achieve the holistic goals set out in the Qatar National Vision 2030, including diversification of the economy,” Aamal Company vice-chairman Sheikh Mohamed bin Faisal al-Thani told shareholders at the general assembly meeting in Doha yesterday, which approved 6% cash dividend. Aamal Company chairman HE Sheikh Faisal bin Qassim al-Thani said the company witnessed a number of progressive developments and achievements last year, which positively affected the financial, operational and internal controls of the company. “This resulted in achieving excellent financial results despite the current conditions Qatar is facing as a result of the blockade on Qatar,” he added."
'via Blog this'
"Qatar has successfully navigated through the continuing blockade, which “undoubtedly created some challenging headwinds”, according to a top official of Aamal Company. “I believe this is testimony not only to the resilience of the Qatari economy but also to the strong and clear leadership that our national government provides as we strive to achieve the holistic goals set out in the Qatar National Vision 2030, including diversification of the economy,” Aamal Company vice-chairman Sheikh Mohamed bin Faisal al-Thani told shareholders at the general assembly meeting in Doha yesterday, which approved 6% cash dividend. Aamal Company chairman HE Sheikh Faisal bin Qassim al-Thani said the company witnessed a number of progressive developments and achievements last year, which positively affected the financial, operational and internal controls of the company. “This resulted in achieving excellent financial results despite the current conditions Qatar is facing as a result of the blockade on Qatar,” he added."
'via Blog this'
Iran warns US against pulling out of nuclear deal
Iran warns US against pulling out of nuclear deal:
"Iran’s foreign minister Mohammad Javad Zarif said it was “highly unlikely” Tehran would stay in the international deal constraining its nuclear ambitions if the US drops out and added that it could immediately begin enriching uranium but would stop short of developing a bomb. European governments have been racing to preserve the landmark nuclear pact since US President Donald Trump described it as the “worst deal ever”. Mr Trump last year vowed to abandon it by May 12 if the parties could not “fix” what he sees as its shortcomings. French President Emmanuel Macron and German Chancellor Angela Merkel are due to visit Washington this week to press Mr Trump to stay in the accord."
'via Blog this'
"Iran’s foreign minister Mohammad Javad Zarif said it was “highly unlikely” Tehran would stay in the international deal constraining its nuclear ambitions if the US drops out and added that it could immediately begin enriching uranium but would stop short of developing a bomb. European governments have been racing to preserve the landmark nuclear pact since US President Donald Trump described it as the “worst deal ever”. Mr Trump last year vowed to abandon it by May 12 if the parties could not “fix” what he sees as its shortcomings. French President Emmanuel Macron and German Chancellor Angela Merkel are due to visit Washington this week to press Mr Trump to stay in the accord."
'via Blog this'
Foreigners are record net buyers of Saudi stocks in latest week
Foreigners are record net buyers of Saudi stocks in latest week:
"Foreigners bought a record $384 million of Saudi Arabian stocks on a net basis last week, showing international interest in the market is continuing to grow ahead of the planned listing of oil giant Saudi Aramco in Riyadh late this year or early next. Foreign investors purchased $615 million of stocks and sold $231 million in the week through Thursday, compared to net buying of $206 million in the previous week, exchange data showed on Sunday. The previous record for net buying was $367 million in the week to March 15. Foreigners have been net buyers every week this year for a total of $2.76 billion."
'via Blog this'
"Foreigners bought a record $384 million of Saudi Arabian stocks on a net basis last week, showing international interest in the market is continuing to grow ahead of the planned listing of oil giant Saudi Aramco in Riyadh late this year or early next. Foreign investors purchased $615 million of stocks and sold $231 million in the week through Thursday, compared to net buying of $206 million in the previous week, exchange data showed on Sunday. The previous record for net buying was $367 million in the week to March 15. Foreigners have been net buyers every week this year for a total of $2.76 billion."
'via Blog this'
Arab World's Top-Performing Stock Joins the $10 Billion Club - Bloomberg
Arab World's Top-Performing Stock Joins the $10 Billion Club - Bloomberg:
"It has risen a whopping 1,650 percent since it started trading six years ago, more than any other company based in the Arab world.
Abu Dhabi-based NMC Health Plc closed at a record on Friday in London, boosting its market value to $10.8 billion. That’s about $200 million less than Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai.
NMC Health is now one of 24 equities in the region with a market cap above $10 billion."
'via Blog this'
"It has risen a whopping 1,650 percent since it started trading six years ago, more than any other company based in the Arab world.
Abu Dhabi-based NMC Health Plc closed at a record on Friday in London, boosting its market value to $10.8 billion. That’s about $200 million less than Emaar Properties PJSC, the developer of the world’s tallest tower in Dubai.
NMC Health is now one of 24 equities in the region with a market cap above $10 billion."
'via Blog this'
Down In Saudi Arabia, They're Partying Like It's 2008 - Bloomberg
Down In Saudi Arabia, They're Partying Like It's 2008 - Bloomberg:
"Is this really 2018? It started to sound a lot like 2008 in Saudi Arabia on Friday, as the kingdom's oil minister argued that the world could tolerate a higher crude price.
"I haven't seen any impact on demand with current prices," Khali Al-Falih told reporters at the meeting of OPEC and non-OPEC producers in Jeddah. Arguing that the energy intensity of global economic growth hadn't declined, he offered the view that "there is the capacity for higher prices."
President Trump certainly didn't appreciate the sentiment, firing off a tweet that accused OPEC of promoting "artificially high prices" which "will not be accepted.""
'via Blog this'
"Is this really 2018? It started to sound a lot like 2008 in Saudi Arabia on Friday, as the kingdom's oil minister argued that the world could tolerate a higher crude price.
"I haven't seen any impact on demand with current prices," Khali Al-Falih told reporters at the meeting of OPEC and non-OPEC producers in Jeddah. Arguing that the energy intensity of global economic growth hadn't declined, he offered the view that "there is the capacity for higher prices."
President Trump certainly didn't appreciate the sentiment, firing off a tweet that accused OPEC of promoting "artificially high prices" which "will not be accepted.""
'via Blog this'
Libya examines Total-Marathon purchase, casting doubt on deal- sources | ZAWYA MENA Edition
Libya examines Total-Marathon purchase, casting doubt on deal- sources | ZAWYA MENA Edition:
"Libya is considering whether to intervene in a $450 million deal that French major Total announced last month to buy Marathon Oil's stake in the country's Waha concessions, several sources familiar with the matter told Reuters. Officials were considering a range of options ranging from pushing for better terms - after some in the oil industry and the media said the price was too low - to a counter-offer from the state National Oil Corporation (NOC), the sources said. "The NOC wants to buy the Total part," one source from the leadership of Libya's internationally recognised government, the Presidency Council, said."
'via Blog this'
"Libya is considering whether to intervene in a $450 million deal that French major Total announced last month to buy Marathon Oil's stake in the country's Waha concessions, several sources familiar with the matter told Reuters. Officials were considering a range of options ranging from pushing for better terms - after some in the oil industry and the media said the price was too low - to a counter-offer from the state National Oil Corporation (NOC), the sources said. "The NOC wants to buy the Total part," one source from the leadership of Libya's internationally recognised government, the Presidency Council, said."
'via Blog this'
Oman set to see balanced budgets from 2023 | ZAWYA MENA Edition
Oman set to see balanced budgets from 2023 | ZAWYA MENA Edition:
"With rising oil prices helping whittle down a debt burden presently equal to as much as 50 per cent of GDP, the Sultanate will likely see balanced budgets from 2023 onwards, according to an economist of the State General Reserve Fund (SGRF), a sovereign wealth fund of the Sultanate of Oman. Samra al Harthy, Acting Senior Manager — Economic Research, attributed the positive outlook to, among other things, expectations that oil prices will remain stable on the back of a sustained joint Opec / non-Opec effort to rebalance oil markets. Restrained spending, coupled with the introduction of new revenue streams like Value Added Tax (VAT), are also key factors, she noted. Samra offered the assessment during a presentation of the theme, ‘Oman/GCC Regional Economic Outlook’, at the Oman Debt Capital Markets Conference held in Muscat on Wednesday. The day-long event was organised by The Gulf Bond and Sukuk Association (GBSA) in collaboration with Oman’s Capital Market Authority (CMA). The economist characterized 2018 as a “Year of Improvements” capping three years of fiscal turbulence kicked off by the collapse in international oil prices in 2014. “The past three years have, no doubt, been testing and challenging times for the region’s policymakers,” said Samra. “This has been a region that grew accustomed to high oil revenues, fiscal and current account surpluses, and stable financial conditions, and almost overnight the region found itself having to deal with new challenges and problems.” Between 2015 and 2017, the GCC region accumulated over $350 billion in fiscal deficit, $76 billion in current account deficits, over $270 billion in foreign exchange losses, and an over $200 billion drop in governments’ financial net worth, she pointed out. "
'via Blog this'
"With rising oil prices helping whittle down a debt burden presently equal to as much as 50 per cent of GDP, the Sultanate will likely see balanced budgets from 2023 onwards, according to an economist of the State General Reserve Fund (SGRF), a sovereign wealth fund of the Sultanate of Oman. Samra al Harthy, Acting Senior Manager — Economic Research, attributed the positive outlook to, among other things, expectations that oil prices will remain stable on the back of a sustained joint Opec / non-Opec effort to rebalance oil markets. Restrained spending, coupled with the introduction of new revenue streams like Value Added Tax (VAT), are also key factors, she noted. Samra offered the assessment during a presentation of the theme, ‘Oman/GCC Regional Economic Outlook’, at the Oman Debt Capital Markets Conference held in Muscat on Wednesday. The day-long event was organised by The Gulf Bond and Sukuk Association (GBSA) in collaboration with Oman’s Capital Market Authority (CMA). The economist characterized 2018 as a “Year of Improvements” capping three years of fiscal turbulence kicked off by the collapse in international oil prices in 2014. “The past three years have, no doubt, been testing and challenging times for the region’s policymakers,” said Samra. “This has been a region that grew accustomed to high oil revenues, fiscal and current account surpluses, and stable financial conditions, and almost overnight the region found itself having to deal with new challenges and problems.” Between 2015 and 2017, the GCC region accumulated over $350 billion in fiscal deficit, $76 billion in current account deficits, over $270 billion in foreign exchange losses, and an over $200 billion drop in governments’ financial net worth, she pointed out. "
'via Blog this'
Talks to sell 70% of Kuwait's Global Investment House underway- deputy CEO | ZAWYA MENA Edition
Talks to sell 70% of Kuwait's Global Investment House underway- deputy CEO | ZAWYA MENA Edition:
"Negotiations are under way to sell 70 percent of the shares of Kuwait's Global Investment House, two company officials said at a shareholder meeting on Sunday. Talks are ongoing, said deputy chief executive Sulaiman M. Al-Rubaie at the company's annual general meeting in Kuwait. The party that is interested in buying the stake is not a current investor in Global Investment House, chief executive Abdul wahab Al-Halabi said after the meeting ended. "
'via Blog this'
"Negotiations are under way to sell 70 percent of the shares of Kuwait's Global Investment House, two company officials said at a shareholder meeting on Sunday. Talks are ongoing, said deputy chief executive Sulaiman M. Al-Rubaie at the company's annual general meeting in Kuwait. The party that is interested in buying the stake is not a current investor in Global Investment House, chief executive Abdul wahab Al-Halabi said after the meeting ended. "
'via Blog this'
MIDEAST STOCKS-Saudi petchems fall in weak region but UAE's TAQA keeps rising
MIDEAST STOCKS-Saudi petchems fall in weak region but UAE's TAQA keeps rising:
"Middle Eastern stock markets mostly fell on Sunday, with Saudi Arabian petrochemical shares hit particularly hard, in response to a drop by global bourses at the end of last week. The Saudi index slipped 0.3 percent as Saudi Basic Industries, the biggest petrochemical firm, slid 0.6 percent and Sahara Petrochemicals, the worst performer, dropped 5.1 percent as it went ex-dividend. Yanbu National Petrochemicals was down 2.1 percent after announcing a net profit of 630.6 million riyals ($168 million) in the first quarter, 3.7 percent higher year-on-year. Analysts surveyed by Reuters had forecast on average a 750 million riyal profit."
'via Blog this'
"Middle Eastern stock markets mostly fell on Sunday, with Saudi Arabian petrochemical shares hit particularly hard, in response to a drop by global bourses at the end of last week. The Saudi index slipped 0.3 percent as Saudi Basic Industries, the biggest petrochemical firm, slid 0.6 percent and Sahara Petrochemicals, the worst performer, dropped 5.1 percent as it went ex-dividend. Yanbu National Petrochemicals was down 2.1 percent after announcing a net profit of 630.6 million riyals ($168 million) in the first quarter, 3.7 percent higher year-on-year. Analysts surveyed by Reuters had forecast on average a 750 million riyal profit."
'via Blog this'
Russia eyes an exit, while Saudi Arabia holds oil output curbs together - The National
Russia eyes an exit, while Saudi Arabia holds oil output curbs together - The National:
"Opec kingpin Saudi Arabia is set to maintain a global pact to curb oil output as prices top three-year highs even as Russia looks to ease off production restrictions to meet fiscal targets. It was “premature” to even talk about gradual easing of cuts at the Opec meeting in June, Saudi oil minister Khalid Al Falih told reporters after the exporter group’s monitoring committee meeting in Jeddah on Friday. He acknowledged, though, that any relaxation of current curbs will be done in a “gradual” and not a “binary manner”. His Russian counterpart Alexander Novak on the other hand, pressured amid threats of US sanctions over Moscow and a weak rouble, said a recalibration of the accord was in order."
'via Blog this'
"Opec kingpin Saudi Arabia is set to maintain a global pact to curb oil output as prices top three-year highs even as Russia looks to ease off production restrictions to meet fiscal targets. It was “premature” to even talk about gradual easing of cuts at the Opec meeting in June, Saudi oil minister Khalid Al Falih told reporters after the exporter group’s monitoring committee meeting in Jeddah on Friday. He acknowledged, though, that any relaxation of current curbs will be done in a “gradual” and not a “binary manner”. His Russian counterpart Alexander Novak on the other hand, pressured amid threats of US sanctions over Moscow and a weak rouble, said a recalibration of the accord was in order."
'via Blog this'
All-American banker heads back to the Kingdom
All-American banker heads back to the Kingdom:
"If anybody deserves the description “all-American”, it is surely Mike Corbat, chief executive officer of Citigroup. New England origins, a Harvard education, Ivy League American footballer and a Wall Street career are all evidence of the fact he was very definitely “born in the USA”, as is the in-bank nickname of “Clark Kent” — the alter-ego of Superman — due to his athletic physique and spectacles. But last week Corbat was turning his mind away from the USA and toward Saudi Arabia, as the bank formally ended a 14-year self-imposed exile from the Kingdom with a ceremony at its new offices in Riyadh, symbolizing its return to the lucrative markets it first entered in the 1950s, among the first American banks to do business in the region."
'via Blog this'
"If anybody deserves the description “all-American”, it is surely Mike Corbat, chief executive officer of Citigroup. New England origins, a Harvard education, Ivy League American footballer and a Wall Street career are all evidence of the fact he was very definitely “born in the USA”, as is the in-bank nickname of “Clark Kent” — the alter-ego of Superman — due to his athletic physique and spectacles. But last week Corbat was turning his mind away from the USA and toward Saudi Arabia, as the bank formally ended a 14-year self-imposed exile from the Kingdom with a ceremony at its new offices in Riyadh, symbolizing its return to the lucrative markets it first entered in the 1950s, among the first American banks to do business in the region."
'via Blog this'
Arab states finalize regional payment and settlement system
Arab states finalize regional payment and settlement system:
"Arab countries have finalised plans to create an independent, regional cross-border payments system after current arrangements were hit by a rise in compliance costs and downsizing by some international banks.
At present, many cross-border payments and settlements among Arab countries are carried out by correspondent banks, which act as agents for foreign financial institutions that do not have a local presence in a given country.
A tightening of anti-money laundering rules by U.S. and European banks in the last several years has added to the cost of this practice, while some banks have quit the market to focus on more lucrative areas."
'via Blog this'
"Arab countries have finalised plans to create an independent, regional cross-border payments system after current arrangements were hit by a rise in compliance costs and downsizing by some international banks.
At present, many cross-border payments and settlements among Arab countries are carried out by correspondent banks, which act as agents for foreign financial institutions that do not have a local presence in a given country.
A tightening of anti-money laundering rules by U.S. and European banks in the last several years has added to the cost of this practice, while some banks have quit the market to focus on more lucrative areas."
'via Blog this'
Dubai's GDP grew 2.6% in 2017 | ZAWYA MENA Edition
Dubai's GDP grew 2.6% in 2017 | ZAWYA MENA Edition:
"Dubai's gross domestic product (GDP) grew by 2.6 per cent or Dh10 billion to reach Dh389 billion last year, with the wholesale and retail trade and transportation and storage sector leading the pack. According to figures released by the Dubai Statistics Centre (DSC) on Saturday, the wholesale and retail sector contributed 26.6 per cent, or Dh103.6 billion, to Dubai's real GDP. The transportation and storage sector's contribution to the total growth achieved was 18.5 per cent in 2017. It contributed Dh46.1 billion last year as compared to Dh44.1 billion in the previous year. Arif Al Mehairi, executive director of Dubai Statistics Centre, said total imports and re-exports grew by 2.2 per cent, which can be attributed to a growth in industrial inputs and capital goods."
'via Blog this'
"Dubai's gross domestic product (GDP) grew by 2.6 per cent or Dh10 billion to reach Dh389 billion last year, with the wholesale and retail trade and transportation and storage sector leading the pack. According to figures released by the Dubai Statistics Centre (DSC) on Saturday, the wholesale and retail sector contributed 26.6 per cent, or Dh103.6 billion, to Dubai's real GDP. The transportation and storage sector's contribution to the total growth achieved was 18.5 per cent in 2017. It contributed Dh46.1 billion last year as compared to Dh44.1 billion in the previous year. Arif Al Mehairi, executive director of Dubai Statistics Centre, said total imports and re-exports grew by 2.2 per cent, which can be attributed to a growth in industrial inputs and capital goods."
'via Blog this'
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