Saudi Arabia’s sleepy city offers prince a cautionary tale:
"With its pristine beaches, manicured lawns and rows of newly built villas, the King Abdullah Economic City bears all the hallmarks of the modern Saudi Arabia envisaged by Crown Prince Mohammed bin Salman. Women walk freely without the long, cloak-like abayas. A golf course nestles up against the Red Sea coastline and international companies including Pfizer and Mars have opened factories in the city. Yet the development instead serves as a cautionary tale of the challenges the young heir apparent faces as he pursues a highly ambitious programme to overhaul the conservative kingdom, including his own plans for a new $500bn megacity, Neom."
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Monday 28 May 2018
Lukoil posts 75% profit leap on crude strength
Lukoil posts 75% profit leap on crude strength:
"Lukoil, Russia’s second-largest oil producer, has reported a 75 per cent jump in first-quarter net profit, as a recent surge in global crude prices to near four-year highs helped push up revenue and margins. A 17-month-old deal between Russia and the Opec cartel to cap global oil production helped lift prices last year from historic lows, and in recent months a collapse in production in Venezuela and fears over Iran’s output pushed the benchmark Brent crude price temporarily to more than $80 a barrel, cheering oil majors and exporting countries. But concerns over a potentially overheating market saw the energy ministers of Russia and Saudi Arabia, Opec’s de facto leader, hold talks last week on easing that cap, amid calls from producers such as Lukoil to allow them to produce more."
'via Blog this'
"Lukoil, Russia’s second-largest oil producer, has reported a 75 per cent jump in first-quarter net profit, as a recent surge in global crude prices to near four-year highs helped push up revenue and margins. A 17-month-old deal between Russia and the Opec cartel to cap global oil production helped lift prices last year from historic lows, and in recent months a collapse in production in Venezuela and fears over Iran’s output pushed the benchmark Brent crude price temporarily to more than $80 a barrel, cheering oil majors and exporting countries. But concerns over a potentially overheating market saw the energy ministers of Russia and Saudi Arabia, Opec’s de facto leader, hold talks last week on easing that cap, amid calls from producers such as Lukoil to allow them to produce more."
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UAE property developers ramp up Ramadan offers
UAE property developers ramp up Ramadan offers:
"UAE property developers are ramping up efforts to win over prospective buyers with discounts and attractive payment terms, hoping to counter the expected fall in sales during Ramadan.
The onslaught of deals come as the country is already grappling with declining real estate prices as well as an anticipated increase in the supply of residential units in the coming year.
“During the holy month, property transaction levels are known to dip and this when combined with a real estate market that is continuing to soften, developers will unsurprisingly, get creative to entice demand,” said Faisal Durrani, partner, head of research at property consultancy Cluttons."
'via Blog this'
"UAE property developers are ramping up efforts to win over prospective buyers with discounts and attractive payment terms, hoping to counter the expected fall in sales during Ramadan.
The onslaught of deals come as the country is already grappling with declining real estate prices as well as an anticipated increase in the supply of residential units in the coming year.
“During the holy month, property transaction levels are known to dip and this when combined with a real estate market that is continuing to soften, developers will unsurprisingly, get creative to entice demand,” said Faisal Durrani, partner, head of research at property consultancy Cluttons."
'via Blog this'
Crude calculation: Just how much oil does Saudi Aramco have in reserve? | Arab News
Crude calculation: Just how much oil does Saudi Aramco have in reserve? | Arab News:
"Now that the initial public offering of Saudi Aramco has been officially put back until 2019, the company can give preparations for what could be the biggest IPO in history the detail they deserve. Does it matter that the IPO will not go ahead on the original schedule that had it taking place, in some form, before the end of this year? Probably not. Policymakers like to stick to their pledges, but an event of this size and scale is surely too big and important for the future of the Kingdom to be rushed. With the oil price rising, the fiscal pressure is relaxed for the Saudi authorities, which in any case have shown themselves adept at raising revenue and capital through other means, be it from efficient tax collection or forays into the international capital markets."
'via Blog this'
"Now that the initial public offering of Saudi Aramco has been officially put back until 2019, the company can give preparations for what could be the biggest IPO in history the detail they deserve. Does it matter that the IPO will not go ahead on the original schedule that had it taking place, in some form, before the end of this year? Probably not. Policymakers like to stick to their pledges, but an event of this size and scale is surely too big and important for the future of the Kingdom to be rushed. With the oil price rising, the fiscal pressure is relaxed for the Saudi authorities, which in any case have shown themselves adept at raising revenue and capital through other means, be it from efficient tax collection or forays into the international capital markets."
'via Blog this'
Qatar’s trade surplus in April at QR14.7bn - The Peninsula Qatar
Qatar’s trade surplus in April at QR14.7bn - The Peninsula Qatar:
"Despite the ongoing siege against Qatar, country’s trade surplus witnessed a sharp jump in April 2018 year-on-year, mainly as a result of increase in exports with the significant rebound in energy prices. The foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR14.7bn, up by QR4.9bn, or 49.3 percent, compared to April 2017. When compared on monthly basis, the trade balance increased by nearly QR1.4bn, or 10.7 percent, against the previous month (March 2018), preliminary figures released by the Ministry of Development Planning and Statistics (MDPS) show."
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"Despite the ongoing siege against Qatar, country’s trade surplus witnessed a sharp jump in April 2018 year-on-year, mainly as a result of increase in exports with the significant rebound in energy prices. The foreign merchandise trade balance, which represents the difference between total exports and imports, showed a surplus of QR14.7bn, up by QR4.9bn, or 49.3 percent, compared to April 2017. When compared on monthly basis, the trade balance increased by nearly QR1.4bn, or 10.7 percent, against the previous month (March 2018), preliminary figures released by the Ministry of Development Planning and Statistics (MDPS) show."
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Siege fails to shake confidence of global investors in Qatar
Siege fails to shake confidence of global investors in Qatar:
"The almost one-year blockade imposed on Qatar appears not to have shaken the confidence of global investors as Qatar's top four investing countries' share in Doha's inbound foreign direct investment (FDI) continued to be "stable,", according to official data. The country's total inward FDI stocks amounted to QR130.5bn in 2017 with other American countries contributing QR46.6bn, or 36%, of the total, followed by European Union at QR38.4bn, or 29%; the US at QR30.2bn or 23%; and Asia (not including Gulf Co-operation Council) at QR6.4bn or 5%, according to figures released by the Ministry of Development Planning and Statistics (MDPS). "Over 60 countries contributed to the stock of FDI in Qatar at the end of 2017. The top four group of countries' relative share of total FDI continued to be stable and amounted to 93% of total at the end of 2017," MDPS said."
'via Blog this'
"The almost one-year blockade imposed on Qatar appears not to have shaken the confidence of global investors as Qatar's top four investing countries' share in Doha's inbound foreign direct investment (FDI) continued to be "stable,", according to official data. The country's total inward FDI stocks amounted to QR130.5bn in 2017 with other American countries contributing QR46.6bn, or 36%, of the total, followed by European Union at QR38.4bn, or 29%; the US at QR30.2bn or 23%; and Asia (not including Gulf Co-operation Council) at QR6.4bn or 5%, according to figures released by the Ministry of Development Planning and Statistics (MDPS). "Over 60 countries contributed to the stock of FDI in Qatar at the end of 2017. The top four group of countries' relative share of total FDI continued to be stable and amounted to 93% of total at the end of 2017," MDPS said."
'via Blog this'
Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg
Russia Loses Its Edge as Oil Drop Spurs Worst ETF Flows in Year - Bloomberg:
"Sliding oil prices are eroding the buffers that helped Russia withstand the emerging-market retreat.
Investors are pulling cash from the biggest exchange-traded fund tracking Russian assets at the fastest pace in almost a year. Redemptions from the VanEck Vectors Russia ETF, which invests in oil and gas companies including Gazprom PJSC, Rosneft PJSC and Lukoil PJSC, reached $88.9 million last week, the strongest since June 2017, according to data compiled by Bloomberg.
“There is a global outflow from emerging markets -- Russia isn’t an exception from the trend, but recently its market was supported by higher oil prices,” said Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow. “Now the factor of high crude price is diminishing.”
"
'via Blog this'
"Sliding oil prices are eroding the buffers that helped Russia withstand the emerging-market retreat.
Investors are pulling cash from the biggest exchange-traded fund tracking Russian assets at the fastest pace in almost a year. Redemptions from the VanEck Vectors Russia ETF, which invests in oil and gas companies including Gazprom PJSC, Rosneft PJSC and Lukoil PJSC, reached $88.9 million last week, the strongest since June 2017, according to data compiled by Bloomberg.
“There is a global outflow from emerging markets -- Russia isn’t an exception from the trend, but recently its market was supported by higher oil prices,” said Vadim Bit-Avragim, a money manager at Kapital Asset Management LLC in Moscow. “Now the factor of high crude price is diminishing.”
"
'via Blog this'
UAE cenbank pumps $3.8bln liquidity in April | ZAWYA MENA Edition
UAE cenbank pumps $3.8bln liquidity in April | ZAWYA MENA Edition:
"A total of Dh14 billion ($3.8 billion) in cash has been pumped onto the market by UAE’s Central Bank (CBUAE) in April, the highest liquidity injected by the country's primary financial regulator since the beginning of the year, a media report said. The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics. The fall in liquidity held by UAE banks over recent period has been attributed by industry analysts to tightened lending measures in addition to other arrangements adopted by CBUAE to ensure the smooth operation of the country's financial landscape."
'via Blog this'
"A total of Dh14 billion ($3.8 billion) in cash has been pumped onto the market by UAE’s Central Bank (CBUAE) in April, the highest liquidity injected by the country's primary financial regulator since the beginning of the year, a media report said. The move resulted in reducing the value of CBUAE's certificates of deposit to Dh118.3 billion from Dh134.3 billion in March, reported Emirates news agency Wam, citing official statistics. The fall in liquidity held by UAE banks over recent period has been attributed by industry analysts to tightened lending measures in addition to other arrangements adopted by CBUAE to ensure the smooth operation of the country's financial landscape."
'via Blog this'
MIDEAST STOCKS-Qatar biggest gainer as other Gulf markets subdued | ZAWYA MENA Edition
MIDEAST STOCKS-Qatar biggest gainer as other Gulf markets subdued | ZAWYA MENA Edition:
"Qatar's market outperformed Gulf peers on Monday, helped by a surge in blue-chip stocks and government plans to allow full foreign ownership of companies.
Other markets were more subdued as investors reacted to lower oil prices, which extended losses after Saudi Arabia and Russia said they may increase supplies. Trading volumes were also generally thin because of the holy month of Ramadan.
The Qatar index closed 1.5 percent higher, with Qatar National Bank rising 2.9 percent."
'via Blog this'
"Qatar's market outperformed Gulf peers on Monday, helped by a surge in blue-chip stocks and government plans to allow full foreign ownership of companies.
Other markets were more subdued as investors reacted to lower oil prices, which extended losses after Saudi Arabia and Russia said they may increase supplies. Trading volumes were also generally thin because of the holy month of Ramadan.
The Qatar index closed 1.5 percent higher, with Qatar National Bank rising 2.9 percent."
'via Blog this'
India says it only follows U.N. sanctions, not U.S. sanctions on Iran | Reuters
India says it only follows U.N. sanctions, not U.S. sanctions on Iran | Reuters:
"India said on Monday it abided by sanctions imposed by the United Nations but not those imposed by any other country, such as those announced by the United States against Iran.
U.S. President Donald Trump this month withdrew the United States from the Iran nuclear deal and ordered the reimposition of U.S. sanctions suspended under the 2015 accord.
Indian foreign minister Sushma Swaraj said New Delhi’s position was independent of any other country.
"
'via Blog this'
"India said on Monday it abided by sanctions imposed by the United Nations but not those imposed by any other country, such as those announced by the United States against Iran.
U.S. President Donald Trump this month withdrew the United States from the Iran nuclear deal and ordered the reimposition of U.S. sanctions suspended under the 2015 accord.
Indian foreign minister Sushma Swaraj said New Delhi’s position was independent of any other country.
"
'via Blog this'
Saudi c.bank reserves rise sharply on back of high oil prices | Reuters
Saudi c.bank reserves rise sharply on back of high oil prices | Reuters:
"The Saudi Arabian central bank’s foreign reserves rose last month at their fastest rate for four years, official data showed on Monday, revealing the extent to which a rebound in oil prices is strengthening the kingdom’s finances. Net foreign assets climbed by $13.3 billion month-on-month to $498.9 billion in April, their highest level in over a year. The assets peaked at $737 billion in August 2014 before the government began drawing them down to cover a budget deficit caused by a plunge in oil prices, and to build up its main sovereign wealth fund in preparation for overseas investments."
'via Blog this'
"The Saudi Arabian central bank’s foreign reserves rose last month at their fastest rate for four years, official data showed on Monday, revealing the extent to which a rebound in oil prices is strengthening the kingdom’s finances. Net foreign assets climbed by $13.3 billion month-on-month to $498.9 billion in April, their highest level in over a year. The assets peaked at $737 billion in August 2014 before the government began drawing them down to cover a budget deficit caused by a plunge in oil prices, and to build up its main sovereign wealth fund in preparation for overseas investments."
'via Blog this'
StanChart's private equity arm seeks exit from Saudi construction investment -sources | Reuters
StanChart's private equity arm seeks exit from Saudi construction investment -sources | Reuters:
"Standard Chartered’s private equity arm is seeking to sell its stake in a unit of Saudi Binladin Group, the construction group whose owners were entangled in Saudi Arabia’s anti-corruption purge, said three sources familiar with the matter. Construction Products Holding’s (CPC) parent company Binladin is undergoing a restructuring which will likely affect its hundreds of units, after the government took a stake in the conglomerate and formed a committee to oversee its management. Two of the sources said Standard Chartered was not comfortable with uncertainty over what the shake-up could mean for CPC, which specialises in building materials and services, in the absence of specific details about the restructuring."
'via Blog this'
"Standard Chartered’s private equity arm is seeking to sell its stake in a unit of Saudi Binladin Group, the construction group whose owners were entangled in Saudi Arabia’s anti-corruption purge, said three sources familiar with the matter. Construction Products Holding’s (CPC) parent company Binladin is undergoing a restructuring which will likely affect its hundreds of units, after the government took a stake in the conglomerate and formed a committee to oversee its management. Two of the sources said Standard Chartered was not comfortable with uncertainty over what the shake-up could mean for CPC, which specialises in building materials and services, in the absence of specific details about the restructuring."
'via Blog this'
Oil hits multi-week lows on fears of growing supplies | Reuters
Oil hits multi-week lows on fears of growing supplies | Reuters:
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains showed no sign of slowing.
FILE
Brent crude futures LCOc1 stood at $75.32 a barrel at 1805 GMT, down $1.12 from the previous close.
The contract touched a three-week low of $74.49 earlier in the session.
U.S. crude futures were at $66.47, down $1.41, after hitting a six-week low of $65.80."
'via Blog this'
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains showed no sign of slowing.
FILE
Brent crude futures LCOc1 stood at $75.32 a barrel at 1805 GMT, down $1.12 from the previous close.
The contract touched a three-week low of $74.49 earlier in the session.
U.S. crude futures were at $66.47, down $1.41, after hitting a six-week low of $65.80."
'via Blog this'
Opec and Russia Best Not Poke the Shale Oil Bear - Bloomberg
Opec and Russia Best Not Poke the Shale Oil Bear - Bloomberg:
"Here’s one under-reported factor that may explain Russian and Saudi Arabian willingness to turn their backs on almost 18 months of Opec oil supply cuts – the spread between Brent crude and West Texas Intermediate has reached its widest level in three years:
The simple reason for this is that the shale oil boom has left crude sloshing around the U.S., resulting in a local oversupply. While Brent prices have risen some 14 percent over the past three months, WTI is up just 7.5 percent and Midland crude – the version of WTI priced in the booming Permian basin rather than the benchmark delivery point in Cushing, Oklahoma -- is down 4.8 percent.
The last time we saw these sorts of spreads, there were sound legal reasons for it. The U.S. had forbidden almost all exports of crude oil for four decades until the end of 2015, so for many years its soaring shale oil production was trapped by the ban and the capacity limits of U.S. refineries that were able to convert it into exportable products."
'via Blog this'
"Here’s one under-reported factor that may explain Russian and Saudi Arabian willingness to turn their backs on almost 18 months of Opec oil supply cuts – the spread between Brent crude and West Texas Intermediate has reached its widest level in three years:
The simple reason for this is that the shale oil boom has left crude sloshing around the U.S., resulting in a local oversupply. While Brent prices have risen some 14 percent over the past three months, WTI is up just 7.5 percent and Midland crude – the version of WTI priced in the booming Permian basin rather than the benchmark delivery point in Cushing, Oklahoma -- is down 4.8 percent.
The last time we saw these sorts of spreads, there were sound legal reasons for it. The U.S. had forbidden almost all exports of crude oil for four decades until the end of 2015, so for many years its soaring shale oil production was trapped by the ban and the capacity limits of U.S. refineries that were able to convert it into exportable products."
'via Blog this'
China to host Iran to avoid project disruption amid nuclear deal doubt | Reuters
China to host Iran to avoid project disruption amid nuclear deal doubt | Reuters:
"China will host Iranian President Hassan Rouhani next month at a regional summit aimed at avoiding disruption of joint projects, its foreign ministry said on Monday, as major powers scramble to save Iran’s nuclear deal after the United States pulled out.
Rouhani will pay a working visit to China and attend the summit of the China and Russia-led security bloc the Shanghai Cooperation Organization, the ministry said.
It did not give exact dates for his visit, but the summit is scheduled to be held on the second weekend of June in the northern Chinese city of Qingdao.
"
'via Blog this'
"China will host Iranian President Hassan Rouhani next month at a regional summit aimed at avoiding disruption of joint projects, its foreign ministry said on Monday, as major powers scramble to save Iran’s nuclear deal after the United States pulled out.
Rouhani will pay a working visit to China and attend the summit of the China and Russia-led security bloc the Shanghai Cooperation Organization, the ministry said.
It did not give exact dates for his visit, but the summit is scheduled to be held on the second weekend of June in the northern Chinese city of Qingdao.
"
'via Blog this'
Dubai's port operator DP World expands operations in Peru
Dubai's port operator DP World expands operations in Peru:
"Dubai-based port operator DP World has completed a roughly $316 million deal to acquire a Peruvian container and logistics firm and a stake in one of the largest container terminals in the South American country.
The global port operator, which is majority owned by the Dubai government in the United Arab Emirates, said Monday the deal entails 100 percent acquisition of Cosmos Agencia Maritima, or CAM as it’s also known.
The purchase of CAM includes its logistics business, Triton Transports and Neptunia, as well as a 50 percent stake in the Portuários Euroandinos terminal in Peru’s Port of Paita."
'via Blog this'
"Dubai-based port operator DP World has completed a roughly $316 million deal to acquire a Peruvian container and logistics firm and a stake in one of the largest container terminals in the South American country.
The global port operator, which is majority owned by the Dubai government in the United Arab Emirates, said Monday the deal entails 100 percent acquisition of Cosmos Agencia Maritima, or CAM as it’s also known.
The purchase of CAM includes its logistics business, Triton Transports and Neptunia, as well as a 50 percent stake in the Portuários Euroandinos terminal in Peru’s Port of Paita."
'via Blog this'
Oil sinks further as OPEC and Russia look to raise output | Reuters
Oil sinks further as OPEC and Russia look to raise output | Reuters:
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no signs of slowing.
Brent crude futures LCOc1 stood at $75.35 a barrel at 0913 GMT, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $66.69, down $1.19, after hitting a six-week low of $65.80.
"
'via Blog this'
"Oil prices extended losses on Monday as Saudi Arabia and Russia said they may increase supplies while U.S. production gains show no signs of slowing.
Brent crude futures LCOc1 stood at $75.35 a barrel at 0913 GMT, down $1.09 from the previous close and after touching a three-week low of $74.49 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were at $66.69, down $1.19, after hitting a six-week low of $65.80.
"
'via Blog this'
MIDEAST STOCKS-Qatar index leads region, lifted by foreign ownership plans | Reuters
MIDEAST STOCKS-Qatar index leads region, lifted by foreign ownership plans | Reuters:
"Qatari stocks led regional gains on Monday, with other markets generally subdued amid sluggish trading volumes during Ramadan. The Qatar index was up 1.2 percent in early trading, with Qatar National Bank rising by 2.9 percent. The region’s largest bank has been bolstered in recent months by its move to increase its foreign ownership ceiling to 49 percent from 25 percent to boost its weighting on global indexes."
'via Blog this'
"Qatari stocks led regional gains on Monday, with other markets generally subdued amid sluggish trading volumes during Ramadan. The Qatar index was up 1.2 percent in early trading, with Qatar National Bank rising by 2.9 percent. The region’s largest bank has been bolstered in recent months by its move to increase its foreign ownership ceiling to 49 percent from 25 percent to boost its weighting on global indexes."
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