Saudi Arabia raises the alarm over rising unemployment:
"A senior Saudi official has sounded the alarm over rising unemployment as Crown Prince Mohammed bin Salman pushes ahead with an ambitious plan to overhaul the economy and create private sector jobs. Ahmed Kattan, deputy minister for labour, told a business forum on Tuesday that the job market in the oil-dependent nation suffered from “structural problems”, coupled with a deep-rooted addiction to foreign low-wage workers. “As a government, it is an extremely big concern that unemployment is increasing while number of visas is also increasing,” Mr Kattan said. “That means the economy is creating jobs but we don’t give jobs to our citizens.”"
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Tuesday 24 April 2018
Wealthy Gulf individuals feel more confident about regional prospects
Wealthy Gulf individuals feel more confident about regional prospects:
"Survey finds growing optimism on region’s economies, but Saudi investors remain wary. Wealthy individuals in the Gulf are more optimistic over the future of the region and the global economy compared with last year, and are increasing likely to invest in their own countries and other emerging markets in Asia than in western economies. These are among the main findings of an annual survey by Dubai-based Emirates Investment Bank (EIB), released on Tuesday, of the sentiment among high net worth individuals (HNWIs) in the region. After two years of falling confidence, some 60 percent of regional HNWIs now believe things will improve or stay the same. Fewer are pessimistic about both regional and global economic prospects than last year, while nearly 80 percent of respondents said they would prefer to invest in Gulf assets, rather than looking abroad."
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"Survey finds growing optimism on region’s economies, but Saudi investors remain wary. Wealthy individuals in the Gulf are more optimistic over the future of the region and the global economy compared with last year, and are increasing likely to invest in their own countries and other emerging markets in Asia than in western economies. These are among the main findings of an annual survey by Dubai-based Emirates Investment Bank (EIB), released on Tuesday, of the sentiment among high net worth individuals (HNWIs) in the region. After two years of falling confidence, some 60 percent of regional HNWIs now believe things will improve or stay the same. Fewer are pessimistic about both regional and global economic prospects than last year, while nearly 80 percent of respondents said they would prefer to invest in Gulf assets, rather than looking abroad."
'via Blog this'
Nakilat Q1 net profit jumps more than 13% to QR217mn
Nakilat Q1 net profit jumps more than 13% to QR217mn:
"Nakilat has reported more than 13% year-on-year growth in net profit to QR217mn in the first quarter of this year.
The company has managed to achieve positive results across its operations through rationalisation of operational costs, enhanced operational efficiency, and growth of international portfolio through the recent expansion with Maran Gas Ventures to include two additional liquefied natural gas (LNG) carriers.
This most recent strategic alliance further strengthens Nakilat’s fleet to a total of 69 vessels."
'via Blog this'
"Nakilat has reported more than 13% year-on-year growth in net profit to QR217mn in the first quarter of this year.
The company has managed to achieve positive results across its operations through rationalisation of operational costs, enhanced operational efficiency, and growth of international portfolio through the recent expansion with Maran Gas Ventures to include two additional liquefied natural gas (LNG) carriers.
This most recent strategic alliance further strengthens Nakilat’s fleet to a total of 69 vessels."
'via Blog this'
Saudi Shares Are the Most Expensive Since 2015 - Bloomberg
Saudi Shares Are the Most Expensive Since 2015 - Bloomberg:
"Saudi Arabian stocks are trading at the most expensive level since 2015 relative to emerging markets as foreign investors continue buying into a potential status upgrade by MSCI Inc. as oil surges.
The Tadawul All Share Index is trading at 15 times estimated earnings per share for the coming year, versus 12 times for the MSCI Emerging Markets Index. The spread between the measures is the widest since August 2015.
As of April 19, foreign investors were net buyers of Saudi stocks for the 16th straight week. They were net purchasers of 1.4 billion riyals ($370 million), more than any other week since at least October 2015, when Bloomberg started compiling the data."
'via Blog this'
"Saudi Arabian stocks are trading at the most expensive level since 2015 relative to emerging markets as foreign investors continue buying into a potential status upgrade by MSCI Inc. as oil surges.
The Tadawul All Share Index is trading at 15 times estimated earnings per share for the coming year, versus 12 times for the MSCI Emerging Markets Index. The spread between the measures is the widest since August 2015.
As of April 19, foreign investors were net buyers of Saudi stocks for the 16th straight week. They were net purchasers of 1.4 billion riyals ($370 million), more than any other week since at least October 2015, when Bloomberg started compiling the data."
'via Blog this'
Trump and France's Macron seek new measures on Iran as deadline looms
Trump and France's Macron seek new measures on Iran as deadline looms:
"President Donald Trump and French President Emmanuel Macron pledged on Tuesday to seek stronger measures to contain Iran, as the U.S. leader considers whether to ditch an international accord meant to prevent Tehran from obtaining a nuclear weapon.
At a joint news conference after lengthy talks, Trump did not repeat threats to withdraw from the 2015 agreement with Iran which was negotiated by his predecessor, former President Barack Obama, but made clear he has little patience for staying in the deal.
Midway through a three-day state visit by Macron, the two leaders were remarkably chummy, repeatedly shaking hands and extolling each other’s friendship."
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"President Donald Trump and French President Emmanuel Macron pledged on Tuesday to seek stronger measures to contain Iran, as the U.S. leader considers whether to ditch an international accord meant to prevent Tehran from obtaining a nuclear weapon.
At a joint news conference after lengthy talks, Trump did not repeat threats to withdraw from the 2015 agreement with Iran which was negotiated by his predecessor, former President Barack Obama, but made clear he has little patience for staying in the deal.
Midway through a three-day state visit by Macron, the two leaders were remarkably chummy, repeatedly shaking hands and extolling each other’s friendship."
'via Blog this'
Saudi privatization program targets $11 billion non-oil revenues by 2020
Saudi privatization program targets $11 billion non-oil revenues by 2020:
"Saudi Arabia aims to generate 35 billion to 40 billion riyals ($9 billion to $11 billion) in non-oil revenues from its privatization program by 2020 and create up to 12,000 jobs, according to a document published by the official Saudi Press Agency on Tuesday.
The initiative targets 14 public-private partnership (PPP) investments worth 24 billion to 28 billion riyals. It includes the corporatization of Saudi ports and the privatization of the production sector at the Saudi Saline Water Conversion Corp (SWCC) and the Ras Al Khair desalination and power plant, the document showed.
The government has said it plans to raise about $200 billion through privatization in coming years as part of “Vision 2030” reforms that aim to transform the economy of the world’s top oil exporter. It separately wants to raise another $100 billion through the sale of a five percent stake in Saudi Aramco IPO-ARMO.SE."
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"Saudi Arabia aims to generate 35 billion to 40 billion riyals ($9 billion to $11 billion) in non-oil revenues from its privatization program by 2020 and create up to 12,000 jobs, according to a document published by the official Saudi Press Agency on Tuesday.
The initiative targets 14 public-private partnership (PPP) investments worth 24 billion to 28 billion riyals. It includes the corporatization of Saudi ports and the privatization of the production sector at the Saudi Saline Water Conversion Corp (SWCC) and the Ras Al Khair desalination and power plant, the document showed.
The government has said it plans to raise about $200 billion through privatization in coming years as part of “Vision 2030” reforms that aim to transform the economy of the world’s top oil exporter. It separately wants to raise another $100 billion through the sale of a five percent stake in Saudi Aramco IPO-ARMO.SE."
'via Blog this'
Crude Slumps as Macron Iran Deal Proposal Eases Sanction Worries - Bloomberg
Crude Slumps as Macron Iran Deal Proposal Eases Sanction Worries - Bloomberg:
"Oil dropped to a one-week low after French President Emmanuel Macron proposed negotiating a new deal with Iran to contain its nuclear program in a bid to keep the U.S. on board.
Futures in New York, which had briefly climbed as President Donald Trump talked about Iran sanctions, ended the session 1.4 percent lower after Macron spoke during a visit to Washington. Meanwhile, the American Petroleum Institute was said to have reported U.S. crude inventories rose by 1.1 million barrels last week.
Macron “has quickly switched to ‘let’s negotiate a new deal.’ It was a bit of a surprise,” said Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York. “It would be a deal that would get everyone involved and try to avoid a confrontational situation. It does seem to be a situation that would hopefully not involve taking barrels off the market.”"
'via Blog this'
"Oil dropped to a one-week low after French President Emmanuel Macron proposed negotiating a new deal with Iran to contain its nuclear program in a bid to keep the U.S. on board.
Futures in New York, which had briefly climbed as President Donald Trump talked about Iran sanctions, ended the session 1.4 percent lower after Macron spoke during a visit to Washington. Meanwhile, the American Petroleum Institute was said to have reported U.S. crude inventories rose by 1.1 million barrels last week.
Macron “has quickly switched to ‘let’s negotiate a new deal.’ It was a bit of a surprise,” said Bob Yawger, director of futures at Mizuho Securities USA Inc. in New York. “It would be a deal that would get everyone involved and try to avoid a confrontational situation. It does seem to be a situation that would hopefully not involve taking barrels off the market.”"
'via Blog this'
Permian Basin Is Growing Into the Largest Oil Patch in the World - Bloomberg
Permian Basin Is Growing Into the Largest Oil Patch in the World - Bloomberg:
"The Permian shale play is all about setting records. Now, the region will probably become the world’s largest oil patch over the next decade.
Output in the basin is forecast to reach 3.18 million barrels a day in May, according to the Energy Information Administration. That’s the highest since the agency began compiling records in 2007. The size of the oil deposits coupled with increased technology and efficiency are fueling the rampant growth.
“The technology is the biggest driver,” said Rob Thummel, managing director at Tortoise, which handles $16 billion in energy-related assets. “The basin in and of itself could end up being the largest oil field in the world.""
'via Blog this'
"The Permian shale play is all about setting records. Now, the region will probably become the world’s largest oil patch over the next decade.
Output in the basin is forecast to reach 3.18 million barrels a day in May, according to the Energy Information Administration. That’s the highest since the agency began compiling records in 2007. The size of the oil deposits coupled with increased technology and efficiency are fueling the rampant growth.
“The technology is the biggest driver,” said Rob Thummel, managing director at Tortoise, which handles $16 billion in energy-related assets. “The basin in and of itself could end up being the largest oil field in the world.""
'via Blog this'
Aries Group plans $10bln investment in India, Middle East | ZAWYA MENA Edition
Aries Group plans $10bln investment in India, Middle East | ZAWYA MENA Edition:
"The UAE-based Aries Group's Indywood Consortium has initiated $10 billion investment in India and Middle East as part of Vision 2020, said Aries Group chairman and CEO Sohan Roy. "We will increase our market share in marine, tourism and entertainment sector by 2020. In entertainment, we will set up top notch multiplex screens, home cinemas, animation/films schools in India and Middle East. We will invest $10 billion in the next five years and it would generate 1,00,000 job opportunities. The details of other ventures will be announced soon," said Roy. In addition to this, the group will produce international movies using advanced technology and worldwide distribution. "We will promote young talents through movies and it would be a golden opportunity for them to showcase their talents," said Roy, who is also a Hollywood Director."
'via Blog this'
"The UAE-based Aries Group's Indywood Consortium has initiated $10 billion investment in India and Middle East as part of Vision 2020, said Aries Group chairman and CEO Sohan Roy. "We will increase our market share in marine, tourism and entertainment sector by 2020. In entertainment, we will set up top notch multiplex screens, home cinemas, animation/films schools in India and Middle East. We will invest $10 billion in the next five years and it would generate 1,00,000 job opportunities. The details of other ventures will be announced soon," said Roy. In addition to this, the group will produce international movies using advanced technology and worldwide distribution. "We will promote young talents through movies and it would be a golden opportunity for them to showcase their talents," said Roy, who is also a Hollywood Director."
'via Blog this'
Abu Dhabi's Mubadala and MIP to sell 50% stake in Abu Dhabi Terminals- statement | ZAWYA MENA Edition
Abu Dhabi's Mubadala and MIP to sell 50% stake in Abu Dhabi Terminals- statement | ZAWYA MENA Edition:
"Abu Dhabi state investor Mubadala Investment Co and Mubadala Infrastructure Partners (MIP), an emerging markets infrastructure fund manager, have reached a deal to sell their combined 50 percent stake in Abu Dhabi Terminals to Abu Dhabi Ports, the remaining shareholder, for an undisclosed amount, the two companies said on Tuesday.
Abu Dhabi Terminals operates and manages a 30-year concession at Khalifa Port Container Terminal in the emirate."
'via Blog this'
"Abu Dhabi state investor Mubadala Investment Co and Mubadala Infrastructure Partners (MIP), an emerging markets infrastructure fund manager, have reached a deal to sell their combined 50 percent stake in Abu Dhabi Terminals to Abu Dhabi Ports, the remaining shareholder, for an undisclosed amount, the two companies said on Tuesday.
Abu Dhabi Terminals operates and manages a 30-year concession at Khalifa Port Container Terminal in the emirate."
'via Blog this'
MIDEAST STOCKS-Saudi soft after hitting multi-year high, property hurts Dubai
MIDEAST STOCKS-Saudi soft after hitting multi-year high, property hurts Dubai:
"Saudi Arabia’s stock index fell back on Tuesday as many blue chips were seen as fully valued or expensive after the market hit a more than two-year high the previous day. Other Gulf markets were mixed, with property stocks dragging Dubai lower. The Saudi index ended 0.2 percent lower, remaining near levels last seen in August 2015. The index is up 15 percent this year because of inflows of foreign funds and strong corporate earnings. Saudi Basic Industries (SABIC) and Al Rajhi Bank both dropped 0.3 percent."
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"Saudi Arabia’s stock index fell back on Tuesday as many blue chips were seen as fully valued or expensive after the market hit a more than two-year high the previous day. Other Gulf markets were mixed, with property stocks dragging Dubai lower. The Saudi index ended 0.2 percent lower, remaining near levels last seen in August 2015. The index is up 15 percent this year because of inflows of foreign funds and strong corporate earnings. Saudi Basic Industries (SABIC) and Al Rajhi Bank both dropped 0.3 percent."
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Here Come the Petrodollars, Back to Save Global Asset Prices - Bloomberg
Here Come the Petrodollars, Back to Save Global Asset Prices - Bloomberg:
"The recent surge in oil prices is poised to boost global assets as crude-producing states deploy replenished stashes of petrodollars, according to a growing chorus of analysts. It’s the potential reversal of part of the global "quantitative tightening" that was said to have occurred as oil prices dropped precipitously, and could amount to an extra shot of liquidity at a time when central banks are beginning to normalize monetary policy. "The increase in oil prices is generating a shift in flows and incomes across the world, effectively reversing the previous big shift seen between 2014 and 2016," wrote JPMorgan Chase & Co. analysts led by Nikolaos Panigirtzoglou. They estimate that energy producers stretching from the Middle East to Norway saw their oil-related revenues plunge from $1.6 trillion in 2014 -- when crude reached $115 a barrel -- to less than $800 billion in 2016, when it fell to $27."
'via Blog this'
"The recent surge in oil prices is poised to boost global assets as crude-producing states deploy replenished stashes of petrodollars, according to a growing chorus of analysts. It’s the potential reversal of part of the global "quantitative tightening" that was said to have occurred as oil prices dropped precipitously, and could amount to an extra shot of liquidity at a time when central banks are beginning to normalize monetary policy. "The increase in oil prices is generating a shift in flows and incomes across the world, effectively reversing the previous big shift seen between 2014 and 2016," wrote JPMorgan Chase & Co. analysts led by Nikolaos Panigirtzoglou. They estimate that energy producers stretching from the Middle East to Norway saw their oil-related revenues plunge from $1.6 trillion in 2014 -- when crude reached $115 a barrel -- to less than $800 billion in 2016, when it fell to $27."
'via Blog this'
QFC is launching Qatar PMI report by IHS Markit
QFC is launching Qatar PMI report by IHS Markit:
"The Qatar Financial Centre (QFC) has launched a new PMI (Purchasing Managers’ Index) for the non-oil private sector, compiled by IHS Markit, a world leader in critical information, analytics and solutions.
The PMI series produced by IHS Markit is one of the most closely watched signals of business activity and is valued worldwide by central banks, financial markets and business decision makers for providing timely and often unique monthly indicators of economic trends.
The indices are based on monthly surveys of more than 28,000 senior business executives to quantify variables such as output, new orders, employment and prices. Qatar marks the 43rd country covered by the global PMI series from IHS Markit."
'via Blog this'
"The Qatar Financial Centre (QFC) has launched a new PMI (Purchasing Managers’ Index) for the non-oil private sector, compiled by IHS Markit, a world leader in critical information, analytics and solutions.
The PMI series produced by IHS Markit is one of the most closely watched signals of business activity and is valued worldwide by central banks, financial markets and business decision makers for providing timely and often unique monthly indicators of economic trends.
The indices are based on monthly surveys of more than 28,000 senior business executives to quantify variables such as output, new orders, employment and prices. Qatar marks the 43rd country covered by the global PMI series from IHS Markit."
'via Blog this'
MIDEAST STOCKS-Saudi pauses after hitting multi-year high as Gulf moves sideways
MIDEAST STOCKS-Saudi pauses after hitting multi-year high as Gulf moves sideways:
"Saudi stocks paused in early trade on Tuesday after hitting a more than two-year high on the previous day as key blue-chip stocks were seen as expensive. Other Gulf markets moved in narrow ranges as investors digested first-quarter earnings.
The Saudi index was almost flat at 8,321 points, hovering near levels last seen in August 2015. The index has gained 15 percent this year because of inflows of foreign funds and strong corporate earnings.
The main blue chips such as banks and Saudi Basic Industries (SABIC) were flat early on Tuesday."
'via Blog this'
"Saudi stocks paused in early trade on Tuesday after hitting a more than two-year high on the previous day as key blue-chip stocks were seen as expensive. Other Gulf markets moved in narrow ranges as investors digested first-quarter earnings.
The Saudi index was almost flat at 8,321 points, hovering near levels last seen in August 2015. The index has gained 15 percent this year because of inflows of foreign funds and strong corporate earnings.
The main blue chips such as banks and Saudi Basic Industries (SABIC) were flat early on Tuesday."
'via Blog this'
Saudi Arabia Is Delaying Stock Exchange IPO on Higher Valuation Hopes - Bloomberg
Saudi Arabia Is Delaying Stock Exchange IPO on Higher Valuation Hopes - Bloomberg:
"Saudi Arabia is delaying the initial public offering of its stock exchange on hopes that a potential MSCI Inc. upgrade could boost its value, according to people with knowledge of the matter.
The Tadawul, as the Middle East’s biggest stock exchange is known, has pushed back plans to sell shares to 2019 at the earliest, from this year, said the people, asking not to be identified because the information is private.
Waiting until after a possible classification as an emerging market in June could improve trading volumes and help the bourse achieve a better valuation for its owner, the Public Investment Fund, they said.
The exchange’s main stock gauge, the Tadawul All Share Index, is among the world’s top 10 best performers this year after FTSE Russell classified the country as a secondary emerging market in March. That helped boost the gauge’s 12-month price-to-earnings ratio to the highest since 2015, the most expensive compared to emerging-market stocks in almost
three years.
"
'via Blog this'
"Saudi Arabia is delaying the initial public offering of its stock exchange on hopes that a potential MSCI Inc. upgrade could boost its value, according to people with knowledge of the matter.
The Tadawul, as the Middle East’s biggest stock exchange is known, has pushed back plans to sell shares to 2019 at the earliest, from this year, said the people, asking not to be identified because the information is private.
Waiting until after a possible classification as an emerging market in June could improve trading volumes and help the bourse achieve a better valuation for its owner, the Public Investment Fund, they said.
The exchange’s main stock gauge, the Tadawul All Share Index, is among the world’s top 10 best performers this year after FTSE Russell classified the country as a secondary emerging market in March. That helped boost the gauge’s 12-month price-to-earnings ratio to the highest since 2015, the most expensive compared to emerging-market stocks in almost
three years.
"
'via Blog this'
Oil Rises on Flaring Geopolitical Risks and Shrinking Stockpiles - Bloomberg
Oil Rises on Flaring Geopolitical Risks and Shrinking Stockpiles - Bloomberg:
"Flaring geopolitical tensions in the Middle East coupled with expectations for a decline in U.S. stockpiles are boosting oil to trade near $70 a barrel.
Futures in New York climbed as much as 1 percent, set for the highest close since November 2014. A measure of oil volatility rose the most in two weeks as the conflict between Saudi Arabia and Iran-backed Houthis in Yemen worsened, raising concerns over supply disruptions in the energy-rich Mideast region. Expectations for a drop in U.S. crude inventories added to the gains, with analysts forecasting a second weekly decline.
Oil has rallied this month as the Organization of Petroleum Exporting Countries and its allies concluded that they have all but wiped out a global crude surplus, and Iran signaled the group can end cuts if prices rise more. Still, with production in the U.S. continuing to reach record levels, investors are wary that expanding output from shale producers could thwart OPEC’s efforts to reduce a global glut."
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"Flaring geopolitical tensions in the Middle East coupled with expectations for a decline in U.S. stockpiles are boosting oil to trade near $70 a barrel.
Futures in New York climbed as much as 1 percent, set for the highest close since November 2014. A measure of oil volatility rose the most in two weeks as the conflict between Saudi Arabia and Iran-backed Houthis in Yemen worsened, raising concerns over supply disruptions in the energy-rich Mideast region. Expectations for a drop in U.S. crude inventories added to the gains, with analysts forecasting a second weekly decline.
Oil has rallied this month as the Organization of Petroleum Exporting Countries and its allies concluded that they have all but wiped out a global crude surplus, and Iran signaled the group can end cuts if prices rise more. Still, with production in the U.S. continuing to reach record levels, investors are wary that expanding output from shale producers could thwart OPEC’s efforts to reduce a global glut."
'via Blog this'
NMC Health's $450mln bond to boost Saudi expansion | ZAWYA MENA Edition
NMC Health's $450mln bond to boost Saudi expansion | ZAWYA MENA Edition:
"The UAE-based private health care operator NMC Health has launched a $450 million senior unsecured guaranteed bond to help pay off an existing $1 billion bridge facility and support its expansion plans into Saudi Arabia. The earlier bridging loan was part of the $2 billion capital structure refinancing put in place at the start of the year, the company said. The bond is due in 2025 and is convertible into ordinary shares. JP Morgan is the sole bookrunner on the issuance. Bonds will have a fixed coupon rate of 1.875 percent, paid semi-annually."
'via Blog this'
"The UAE-based private health care operator NMC Health has launched a $450 million senior unsecured guaranteed bond to help pay off an existing $1 billion bridge facility and support its expansion plans into Saudi Arabia. The earlier bridging loan was part of the $2 billion capital structure refinancing put in place at the start of the year, the company said. The bond is due in 2025 and is convertible into ordinary shares. JP Morgan is the sole bookrunner on the issuance. Bonds will have a fixed coupon rate of 1.875 percent, paid semi-annually."
'via Blog this'
UAE's EGA says IPO on track for H2 2018 | ZAWYA MENA Edition
UAE's EGA says IPO on track for H2 2018 | ZAWYA MENA Edition:
"The planned initial public offering of Emirates Global Aluminium (EGA) is on track for the second half of 2018, the company's chief executive said on Tuesday. Talks between the governments of United Arab Emirates and the United States on aluminium import tariffs imposed by President Donald Trump are "progressing very well", EGA's CEO Abdulla Jassem Kalban told reporters. Owned by Mubadala and Investment Corporation of Dubai (ICD), aluminium producer EGA was created in 2013 when state-owned companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium merged."
'via Blog this'
"The planned initial public offering of Emirates Global Aluminium (EGA) is on track for the second half of 2018, the company's chief executive said on Tuesday. Talks between the governments of United Arab Emirates and the United States on aluminium import tariffs imposed by President Donald Trump are "progressing very well", EGA's CEO Abdulla Jassem Kalban told reporters. Owned by Mubadala and Investment Corporation of Dubai (ICD), aluminium producer EGA was created in 2013 when state-owned companies Dubai Aluminium (Dubal) and Abu Dhabi's Emirates Aluminium merged."
'via Blog this'
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