Dubai should get a grip on Abraaj before somebody else does | Arab News:
"The unfolding events at Abraaj Group are taking on an air of fiasco. Not a week passes, it seems, without another high-profile executive departure from the Middle East’s biggest private equity investor, or another allegation of misuse of funds, or another investigation into the firm’s practices.
It is becoming a drip-feed of bad news that now threatens much more than the firm itself, or the position of its founder and chief executive, Arif Naqvi.
To understand how damaging it is — actually and potentially — you have to understand the unique position Abraaj occupies in Dubai, and in the Gulf’s financial services sector. Since 2002, when Naqvi launched the firm in Dubai, it has become the regional champion in private equity, showing the slick money managers of New York and London that the Middle East could match them."
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Thursday 31 May 2018
‘Qatar economy weathering year-old blockade’
‘Qatar economy weathering year-old blockade’:
"Qatar’s economy has managed to weather the diplomatic and trade boycott by four Arab nations thanks to a solid financial buffer and sound macroeconomic policies, the International Monetary Fund has said.
“Growth performance remains resilient,” the IMF said in a May 30 report, nearly a full year after the sanctions went into effect. “The direct economic and financial impact of the diplomatic rift between Qatar and some countries in the region has been manageable.”
On June 5 last year, Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic and transport links with Qatar. Mediation efforts by Kuwait and others have failed to resolve the dispute."
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"Qatar’s economy has managed to weather the diplomatic and trade boycott by four Arab nations thanks to a solid financial buffer and sound macroeconomic policies, the International Monetary Fund has said.
“Growth performance remains resilient,” the IMF said in a May 30 report, nearly a full year after the sanctions went into effect. “The direct economic and financial impact of the diplomatic rift between Qatar and some countries in the region has been manageable.”
On June 5 last year, Saudi Arabia, the UAE, Bahrain and Egypt severed diplomatic and transport links with Qatar. Mediation efforts by Kuwait and others have failed to resolve the dispute."
'via Blog this'
Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg
Colony NorthStar Is Said to Walk Away From Abraaj Fund Unit Deal - Bloomberg:
"Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.
The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.
A spokeswoman for Abraaj said discussions for the sale of the fund-management business “are at an advanced stage,” without disclosing the identity of the potential suitors or commenting specifically about Colony NorthStar. Representatives for Colony NorthStar and Cerberus declined to comment."
'via Blog this'
"Colony NorthStar Inc. has ended talks to buy a majority stake in the fund-management unit of embattled Abraaj Group, which has been roiled in recent months by allegations of misused funds, according to people with knowledge of the matter.
The U.S. asset manager walked away from a possible deal after its due diligence efforts raised concerns about the Middle East buyout firm, the people said, asking not to be identified because the talks are private. Cerberus Capital Management LP is still in discussions about the stake and is carrying out its own due diligence, the people said.
A spokeswoman for Abraaj said discussions for the sale of the fund-management business “are at an advanced stage,” without disclosing the identity of the potential suitors or commenting specifically about Colony NorthStar. Representatives for Colony NorthStar and Cerberus declined to comment."
'via Blog this'
What Do Steel Tariffs Have to Do With Iran? Plenty - Bloomberg
What Do Steel Tariffs Have to Do With Iran? Plenty - Bloomberg:
"Europe’s temporary waiver from U.S. import quotas on steel and aluminum is about to expire, and most experts are pessimistic that a U.S.-EU trade war can be avoided. They can’t fathom a trade deal that would satisfy both U.S. President Donald Trump and European Union leaders — at least not a conventional trade deal.
But a conventional trade deal does not seem to be what the Trump White House really has in mind. Instead, it wants to exchange trade peace for foreign and security policy concessions. That’s a novel — and potentially fraught — way for an American president to do business with his closest allies. But in the short term, it might deliver some results that Trump can use to declare victory.
Trump’s hope seems to be that the threat of tariffs gives him leverage to get the cooperation he wants on European defense spending and sanctions on Iran. U.S. Treasury Secretary Steven Mnuchin recently told CNBC, the U.S. cable news network, that President Trump would factor military contributions to NATO into the application of a 25 percent tax on imported steel and 10 percent on aluminum. "
'via Blog this'
"Europe’s temporary waiver from U.S. import quotas on steel and aluminum is about to expire, and most experts are pessimistic that a U.S.-EU trade war can be avoided. They can’t fathom a trade deal that would satisfy both U.S. President Donald Trump and European Union leaders — at least not a conventional trade deal.
But a conventional trade deal does not seem to be what the Trump White House really has in mind. Instead, it wants to exchange trade peace for foreign and security policy concessions. That’s a novel — and potentially fraught — way for an American president to do business with his closest allies. But in the short term, it might deliver some results that Trump can use to declare victory.
Trump’s hope seems to be that the threat of tariffs gives him leverage to get the cooperation he wants on European defense spending and sanctions on Iran. U.S. Treasury Secretary Steven Mnuchin recently told CNBC, the U.S. cable news network, that President Trump would factor military contributions to NATO into the application of a 25 percent tax on imported steel and 10 percent on aluminum. "
'via Blog this'
Oman's electricity firm seeks advisers for $1.2 bln financing -sources | Reuters
Oman's electricity firm seeks advisers for $1.2 bln financing -sources | Reuters:
"Oman’s state-owned Electricity Holding Co. has approached banks to advise it on a capital expenditure programme worth around $1.2 billion, banking sources said on Thursday.
This would be the latest Omani foray in the international debt markets and another sign of a growing reliance on external funding after its finances were hit by a slump in oil prices.
The state company, known as Nama Holding, has sent a request for proposal to banks this week for what would be the third and final phase of a borrowing programme worth almost $6 billion, the sources said."
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"Oman’s state-owned Electricity Holding Co. has approached banks to advise it on a capital expenditure programme worth around $1.2 billion, banking sources said on Thursday.
This would be the latest Omani foray in the international debt markets and another sign of a growing reliance on external funding after its finances were hit by a slump in oil prices.
The state company, known as Nama Holding, has sent a request for proposal to banks this week for what would be the third and final phase of a borrowing programme worth almost $6 billion, the sources said."
'via Blog this'
Etihad seeks funding for more than $1 billion in Boeing deliveries: sources | Reuters
Etihad seeks funding for more than $1 billion in Boeing deliveries: sources | Reuters:
"Abu Dhabi’s Etihad Airways is seeking to raise debt to help finance upcoming deliveries of Boeing (BA.N) aircraft on order worth more than $1 billion, banking sources familiar with the matter said.
The state carrier sent requests for proposals to banks about a month ago for 12-year secured funding for the delivery of 787 Dreamliner aircraft and a cargo plane, the sources said.
Etihad, which declined to comment on the financing, has 51 787 Dreamliner jets on order, including 21 787-9s and 30 of the larger 787-10 variant, according to Boeing’s website. Its only cargo plane on order is a 777 Freighter.
"
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"Abu Dhabi’s Etihad Airways is seeking to raise debt to help finance upcoming deliveries of Boeing (BA.N) aircraft on order worth more than $1 billion, banking sources familiar with the matter said.
The state carrier sent requests for proposals to banks about a month ago for 12-year secured funding for the delivery of 787 Dreamliner aircraft and a cargo plane, the sources said.
Etihad, which declined to comment on the financing, has 51 787 Dreamliner jets on order, including 21 787-9s and 30 of the larger 787-10 variant, according to Boeing’s website. Its only cargo plane on order is a 777 Freighter.
"
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Abraaj lenders seek legal advice on options against Dubai firm - sources | Reuters
Abraaj lenders seek legal advice on options against Dubai firm - sources | Reuters:
"Lenders to Dubai-based private equity firm Abraaj are seeking advice from law firm Clifford Chance on potential action they could take against the firm as concerns grow about its ability to repay its debt, two sources close to the matter said. Abraaj, the Middle East and Africa’s biggest private equity fund, is experiencing cashflow pressures, said the sources, as it faces an investigation by some investors into how it used some of their money in a $1 billion healthcare fund. Abraaj, which has denied any wrongdoing, said in a statement emailed to Reuters it is working constructively with creditors to resolve outstanding obligations."
'via Blog this'
"Lenders to Dubai-based private equity firm Abraaj are seeking advice from law firm Clifford Chance on potential action they could take against the firm as concerns grow about its ability to repay its debt, two sources close to the matter said. Abraaj, the Middle East and Africa’s biggest private equity fund, is experiencing cashflow pressures, said the sources, as it faces an investigation by some investors into how it used some of their money in a $1 billion healthcare fund. Abraaj, which has denied any wrongdoing, said in a statement emailed to Reuters it is working constructively with creditors to resolve outstanding obligations."
'via Blog this'
Italy's anti-establishment leaders revive governing coalition
Italy's anti-establishment leaders revive governing coalition:
"The Qatar central bank’s international reserves and foreign currency liquidity rose in April, official data showed on Thursday.
The reserves and liquidity, a measure of the central bank’s ability to support the riyal currency, climbed to $39.8 billion last month from $37.8 billion in March."
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"The Qatar central bank’s international reserves and foreign currency liquidity rose in April, official data showed on Thursday.
The reserves and liquidity, a measure of the central bank’s ability to support the riyal currency, climbed to $39.8 billion last month from $37.8 billion in March."
'via Blog this'
UAE jails activist for ten years over social media posts: report #FreeAhmed @ahmed_mansoor
UAE jails activist for ten years over social media posts: report:
"Prominent Emirati activist Ahmed Mansoor has been sentenced to 10 years in jail and fined 1 million AED ($272,000) on charges of criticizing the United Arab Emirates government on social media, The National newspaper reported late on Wednesday.
A trade and tourism hub, the UAE is an absolute monarchy that tolerates little public criticism of its ruling system and has prosecuted Mansoor and other pro-democracy activists for making what it called insulting comments about the country’s leaders.
Mansoor was among five activists convicted of those charges in 2011 amid the “Arab Spring” protests calling for reform in other Arab states.
"
'via Blog this'
"Prominent Emirati activist Ahmed Mansoor has been sentenced to 10 years in jail and fined 1 million AED ($272,000) on charges of criticizing the United Arab Emirates government on social media, The National newspaper reported late on Wednesday.
A trade and tourism hub, the UAE is an absolute monarchy that tolerates little public criticism of its ruling system and has prosecuted Mansoor and other pro-democracy activists for making what it called insulting comments about the country’s leaders.
Mansoor was among five activists convicted of those charges in 2011 amid the “Arab Spring” protests calling for reform in other Arab states.
"
'via Blog this'
U.S. crude tumbles, widening Brent's premium to 3-year high | Reuters
U.S. crude tumbles, widening Brent's premium to 3-year high | Reuters:
"U.S. oil fell nearly 2 percent on Thursday, despite a larger-than-expected decline in U.S. crude inventories, while global benchmark Brent was little changed, pushing the spread between the two to its widest in more than three years.
U.S. crude stockpiles fell 3.6 million barrels last week, the Energy Information Administration said, exceeding expectations for a decline of 525,000 barrels. Gasoline and diesel stocks rose, but the crude drawdown was a salve for recent losses in U.S. futures. [EIA/S]
Brent crude losses were more limited, as the prospect that the Organization of the Petroleum Exporting Countries will bring its supply-cut deal to a close by the end of the year has had a greater effect on the U.S. benchmark due to ongoing worries about U.S. infrastructure constraints."
'via Blog this'
"U.S. oil fell nearly 2 percent on Thursday, despite a larger-than-expected decline in U.S. crude inventories, while global benchmark Brent was little changed, pushing the spread between the two to its widest in more than three years.
U.S. crude stockpiles fell 3.6 million barrels last week, the Energy Information Administration said, exceeding expectations for a decline of 525,000 barrels. Gasoline and diesel stocks rose, but the crude drawdown was a salve for recent losses in U.S. futures. [EIA/S]
Brent crude losses were more limited, as the prospect that the Organization of the Petroleum Exporting Countries will bring its supply-cut deal to a close by the end of the year has had a greater effect on the U.S. benchmark due to ongoing worries about U.S. infrastructure constraints."
'via Blog this'
MIDEAST STOCKS-Dubai and Saudi bourses lead Gulf gains, Egypt sinks | Reuters
MIDEAST STOCKS-Dubai and Saudi bourses lead Gulf gains, Egypt sinks | Reuters:
"Gulf markets mostly gained on Thursday, led by Dubai, which was carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB) , and Saudi Arabia. The Dubai index closed up 1.9 percent, with gains led by a 5.9 percent spike in DIB shares in heavy trade to 5.07 dirhams following the last day of trade in the bank’s rights issue, which allowed purchases of DIB shares at 3.11 dirhams. Investors had been selling DIB stock to buy the rights before the Wednesday deadline, contributing to its 13 percent decline this year."
'via Blog this'
"Gulf markets mostly gained on Thursday, led by Dubai, which was carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB) , and Saudi Arabia. The Dubai index closed up 1.9 percent, with gains led by a 5.9 percent spike in DIB shares in heavy trade to 5.07 dirhams following the last day of trade in the bank’s rights issue, which allowed purchases of DIB shares at 3.11 dirhams. Investors had been selling DIB stock to buy the rights before the Wednesday deadline, contributing to its 13 percent decline this year."
'via Blog this'
Mubadala Among Bidders for U.A.E.’s Amana Healthcare - Bloomberg
Mubadala Among Bidders for U.A.E.’s Amana Healthcare - Bloomberg:
"Abu Dhabi’s Mubadala Investment Co. is among potential bidders for the United Arab Emirates’ privately-held Amana Healthcare, people with knowledge of the matter said.
The fund’s healthcare unit is in advanced talks about the acquisition, the people said, asking not to be identified because the discussions are private. Amana, which operates in Abu Dhabi and Al Ain, has also drawn interest from other large healthcare providers and investors, some of the people said.
Bank of America Corp. was hired to work on the sale that could value the business at about $400 million, people said in 2016. Amana hopes to close a deal by the end of the year, some of the people said. A representative for Amana didn’t immediately respond to requests for comment, while Mubadala declined to comment."
'via Blog this'
"Abu Dhabi’s Mubadala Investment Co. is among potential bidders for the United Arab Emirates’ privately-held Amana Healthcare, people with knowledge of the matter said.
The fund’s healthcare unit is in advanced talks about the acquisition, the people said, asking not to be identified because the discussions are private. Amana, which operates in Abu Dhabi and Al Ain, has also drawn interest from other large healthcare providers and investors, some of the people said.
Bank of America Corp. was hired to work on the sale that could value the business at about $400 million, people said in 2016. Amana hopes to close a deal by the end of the year, some of the people said. A representative for Amana didn’t immediately respond to requests for comment, while Mubadala declined to comment."
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IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg
IMF Asks Bahrain to Consider Corporate Tax as Risk Climbs - Bloomberg:
"Bahrain should consider implementing corporate income tax to shore up its finances as rising interest rates hinder its ability to borrow, the International Monetary Fund said.
“Notwithstanding notable measures implemented since 2015, a credibly large fiscal adjustment is a priority,” the IMF said in a report dated May 30. “The implementation of a value-added tax, as planned, would be important. Additional revenue measures -- including consideration of a corporate income tax -- would be welcome.”
Bahrain was one of the hardest-hit Gulf economies after oil prices began falling in 2014, with authorities seen slower to react than countries such as Saudi Arabia. Even as oil prices recovered this year, the country’s debt risk, as measured by five-year credit default swaps, climbed to a 2016 high of 385 basis points this month, according to CMA data compiled by Bloomberg."
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"Bahrain should consider implementing corporate income tax to shore up its finances as rising interest rates hinder its ability to borrow, the International Monetary Fund said.
“Notwithstanding notable measures implemented since 2015, a credibly large fiscal adjustment is a priority,” the IMF said in a report dated May 30. “The implementation of a value-added tax, as planned, would be important. Additional revenue measures -- including consideration of a corporate income tax -- would be welcome.”
Bahrain was one of the hardest-hit Gulf economies after oil prices began falling in 2014, with authorities seen slower to react than countries such as Saudi Arabia. Even as oil prices recovered this year, the country’s debt risk, as measured by five-year credit default swaps, climbed to a 2016 high of 385 basis points this month, according to CMA data compiled by Bloomberg."
'via Blog this'
Mideast funds more positive on UAE equities than at any time since January 2017 | ZAWYA MENA Edition
Mideast funds more positive on UAE equities than at any time since January 2017 | ZAWYA MENA Edition:
"Middle East fund managers have turned very positive on equities in the United Arab Emirates and are now more bullish on that market than Saudi Arabia for the first time in eight months, a monthly Reuters poll showed on Thursday. UAE bourses have fared poorly this year, especially Dubai, where the stock index has tumbled 13.7 percent. They have been hurt by slumping real estate prices and an outflow of funds to Saudi Arabia, where investors are eagerly anticipating Riyadh's entry into emerging market indexes next year. Reuters' latest poll of 13 leading regional fund managers, conducted over the past week, suggests that trend may soon change, however."
'via Blog this'
"Middle East fund managers have turned very positive on equities in the United Arab Emirates and are now more bullish on that market than Saudi Arabia for the first time in eight months, a monthly Reuters poll showed on Thursday. UAE bourses have fared poorly this year, especially Dubai, where the stock index has tumbled 13.7 percent. They have been hurt by slumping real estate prices and an outflow of funds to Saudi Arabia, where investors are eagerly anticipating Riyadh's entry into emerging market indexes next year. Reuters' latest poll of 13 leading regional fund managers, conducted over the past week, suggests that trend may soon change, however."
'via Blog this'
Saudi housing crisis tests Crown Prince's reform drive | Reuters
Saudi housing crisis tests Crown Prince's reform drive | Reuters:
"Saudi Arabia’s crown prince wants to build a mega-city with the latest robotics under his grand plan to reform the kingdom.
Civil servant Amer al-Ghamdi has a simpler dream: to buy an affordable home.
Whether Ghamdi and some 1.2 million Saudis in a similar financial position manage to do so will be vital if Crown Prince Mohammed bin Salman is to convince his people that the reform plan will benefit not just the super-rich. "
'via Blog this'
"Saudi Arabia’s crown prince wants to build a mega-city with the latest robotics under his grand plan to reform the kingdom.
Civil servant Amer al-Ghamdi has a simpler dream: to buy an affordable home.
Whether Ghamdi and some 1.2 million Saudis in a similar financial position manage to do so will be vital if Crown Prince Mohammed bin Salman is to convince his people that the reform plan will benefit not just the super-rich. "
'via Blog this'
MIDEAST STOCKS-Dubai stocks up on DIB rights issue, other Gulf markets edge up | Reuters
MIDEAST STOCKS-Dubai stocks up on DIB rights issue, other Gulf markets edge up | Reuters:
"Dubai stocks rose in early trade on Thursday, carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB), and most other Gulf markets edged up. The Dubai index was up 1.4 percent as Dubai Islamic Bank jumped 4.6 percent to 5.01 dirhams in heavy trade. Wednesday was last day of trade in the bank’s rights issue, which allowed purchase of DIB shares at 3.11 dirhams. Investors had been selling the stock to buy the rights before the deadline, contributing to its 13 percent decline this year."
'via Blog this'
"Dubai stocks rose in early trade on Thursday, carried upward by renewed buying of shares in heavyweight Dubai Islamic Bank (DIB), and most other Gulf markets edged up. The Dubai index was up 1.4 percent as Dubai Islamic Bank jumped 4.6 percent to 5.01 dirhams in heavy trade. Wednesday was last day of trade in the bank’s rights issue, which allowed purchase of DIB shares at 3.11 dirhams. Investors had been selling the stock to buy the rights before the deadline, contributing to its 13 percent decline this year."
'via Blog this'
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