Emirates NBD reveals $38.9m exposure to Abraaj | GulfNews.com:
Emirates NBD on Sunday said its exposure to Abraaj stands at $38.9 million (Dh142.87 million), raising total exposure to the embattled private equity firm to more than $2 billion.
Emirates NBD has an exposure of $21.3 million through an equity investment in the management company. In addition, the bank has a total exposure of $17.6 million invested across three of the Abraaj funds, the bank said in a statement posted on Dubai Financial Market’s website.
This brings listed companies’ total exposure to Abraaj to the tune of $2.4 billion.
Sunday, 15 July 2018
Gulf airlines Emirates, Etihad, Qatar Airways seen flying under radar at Farnborough Airshow
Gulf airlines Emirates, Etihad, Qatar Airways seen flying under radar at Farnborough Airshow:
The aviation industry heads to the UK’s Farnborough International Airshow on Monday in rude health, with higher oil prices and a strong global economy leading to predictions of a large number of orders at the week-long show.
But this time around, significant orders from Gulf carriers such as Etihad, Emirates and Qatar Airways are unlikely to materialize, as the region’s carriers continue to take stock after a period of bruising losses.
Over 1,500 exhibitors and 100,000 trade visitors are expected to attend this week’s airshow, one of the most important events for the global aviation industry.
The aviation industry heads to the UK’s Farnborough International Airshow on Monday in rude health, with higher oil prices and a strong global economy leading to predictions of a large number of orders at the week-long show.
But this time around, significant orders from Gulf carriers such as Etihad, Emirates and Qatar Airways are unlikely to materialize, as the region’s carriers continue to take stock after a period of bruising losses.
Over 1,500 exhibitors and 100,000 trade visitors are expected to attend this week’s airshow, one of the most important events for the global aviation industry.
Charges dropped against Abraaj founder over $48m bounced cheque | Financial Times
Charges dropped against Abraaj founder over $48m bounced cheque | Financial Times:
A court in the United Arab Emirates has dropped a criminal complaint against Arif Naqvi, the founder of Abraaj, for issuing cheques with not enough funds, as the embattled private equity company struggles to recover from a damaging few months.
A judge in Sharjah said on Sunday that the case, pertaining to a $48.2m cheque, had been dismissed at the request of the complainant Hamid Jafar, a businessman in Sharjah and founding shareholder in Abraaj.
The settlement relieves some personal pressure on Mr Naqvi as Abraaj tries to implement a restructuring process overseen by liquidators appointed by a Cayman Islands court. This process followed investor concerns over claims of mismanagement.
A court in the United Arab Emirates has dropped a criminal complaint against Arif Naqvi, the founder of Abraaj, for issuing cheques with not enough funds, as the embattled private equity company struggles to recover from a damaging few months.
A judge in Sharjah said on Sunday that the case, pertaining to a $48.2m cheque, had been dismissed at the request of the complainant Hamid Jafar, a businessman in Sharjah and founding shareholder in Abraaj.
The settlement relieves some personal pressure on Mr Naqvi as Abraaj tries to implement a restructuring process overseen by liquidators appointed by a Cayman Islands court. This process followed investor concerns over claims of mismanagement.
Liquidators probe Abraaj as complaints disrupt asset sales | Financial Times
Liquidators probe Abraaj as complaints disrupt asset sales | Financial Times:
Abraaj’s liquidators are investigating “serious allegations” against the troubled private equity company as investor concerns over claims of mismanagement disrupt the group’s efforts to sell assets.
PwC said several parties had raised issues such as “mismanagement, commingling of funds and misappropriation of assets”, according to its first report to the Cayman Court.
Dubai-based Abraaj has been reeling since claims early this year that it had mishandled investors’ money in its $1bn healthcare fund. A confidence crisis and mounting debt defaults forced the firm, founded by Arif Naqvi in 2002, into provisional liquidation last month in the Cayman Islands.
Abraaj’s liquidators are investigating “serious allegations” against the troubled private equity company as investor concerns over claims of mismanagement disrupt the group’s efforts to sell assets.
PwC said several parties had raised issues such as “mismanagement, commingling of funds and misappropriation of assets”, according to its first report to the Cayman Court.
Dubai-based Abraaj has been reeling since claims early this year that it had mishandled investors’ money in its $1bn healthcare fund. A confidence crisis and mounting debt defaults forced the firm, founded by Arif Naqvi in 2002, into provisional liquidation last month in the Cayman Islands.
Iran's supreme leader calls for government to be backed in face of U.S. sanctions | Reuters
Iran's supreme leader calls for government to be backed in face of U.S. sanctions | Reuters:
Iran’s supreme leader on Sunday called on state bodies to support the government of President Hassan Rouhani in fighting looming U.S. economic sanctions, saying America’s “conspiracy” could be defeated, according to his official website.
Ayatollah Ali Khamenei used a speech to members of Rouhani’s cabinet to call for support for the government and action against alleged financial crime to ease popular concerns fueled by U.S. President Donald Trump’s decision to withdraw from world powers’ 2015 deal with Iran on its nuclear program.
The likely return of U.S. economic sanctions has triggered a rapid fall of Iran’s currency and protests by bazaar traders usually loyal to the Islamist rulers, and a public outcry over alleged price gouging and profiteering.
Iran’s supreme leader on Sunday called on state bodies to support the government of President Hassan Rouhani in fighting looming U.S. economic sanctions, saying America’s “conspiracy” could be defeated, according to his official website.
Ayatollah Ali Khamenei used a speech to members of Rouhani’s cabinet to call for support for the government and action against alleged financial crime to ease popular concerns fueled by U.S. President Donald Trump’s decision to withdraw from world powers’ 2015 deal with Iran on its nuclear program.
The likely return of U.S. economic sanctions has triggered a rapid fall of Iran’s currency and protests by bazaar traders usually loyal to the Islamist rulers, and a public outcry over alleged price gouging and profiteering.
U.S. oil boom delivers surprise for traders - and it's costly | Reuters
U.S. oil boom delivers surprise for traders - and it's costly | Reuters:
The world’s biggest oil traders are counting hefty losses after a surprise doubling in the price discount of U.S. light crude to benchmark Brent WTCLc1-LCOc1 in just a month, as surging U.S production upends the market.
Trading desks of oil major BP (BP.L) and merchants Vitol [VITOLV.UL], Gunvor [GGL.UL] and Trafigura [TRAFG.UL] have recorded losses in the tens of millions of dollars each as a result of the “whipsaw” move when the spread reached more than $11.50 a barrel in June, insiders familiar with their performance told Reuters.
The sources did not give precise figures for the losses, but they said they were enough for Gunvor and BP to fire at least one trader each.
The world’s biggest oil traders are counting hefty losses after a surprise doubling in the price discount of U.S. light crude to benchmark Brent WTCLc1-LCOc1 in just a month, as surging U.S production upends the market.
Trading desks of oil major BP (BP.L) and merchants Vitol [VITOLV.UL], Gunvor [GGL.UL] and Trafigura [TRAFG.UL] have recorded losses in the tens of millions of dollars each as a result of the “whipsaw” move when the spread reached more than $11.50 a barrel in June, insiders familiar with their performance told Reuters.
The sources did not give precise figures for the losses, but they said they were enough for Gunvor and BP to fire at least one trader each.
Qatar Islamic Bank Q2 net profit rises, beats estimates | Reuters
Qatar Islamic Bank Q2 net profit rises, beats estimates | Reuters:
Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, beat the average forecast of analysts as it reported a 14.8 percent jump in second-quarter net profit on Sunday, according to Reuters calculations.
It made a net profit of 700.1 million riyals ($192.3 million) during the three months to June 30, compared with 609.7 million riyals in the same period a year earlier, Reuters calculated from financial statements in the absence of a quarterly earnings breakdown.
Three analysts polled by Reuters had forecast on average the bank to make a quarterly net profit of 619.0 million riyals. The bank is the second major Qatari lender to report earnings this quarter after Qatar National Bank, which reported a 6.3 percent gain in second-quarter profit.
Qatar Islamic Bank (QIB), the Gulf state’s largest sharia-compliant lender by assets, beat the average forecast of analysts as it reported a 14.8 percent jump in second-quarter net profit on Sunday, according to Reuters calculations.
It made a net profit of 700.1 million riyals ($192.3 million) during the three months to June 30, compared with 609.7 million riyals in the same period a year earlier, Reuters calculated from financial statements in the absence of a quarterly earnings breakdown.
Three analysts polled by Reuters had forecast on average the bank to make a quarterly net profit of 619.0 million riyals. The bank is the second major Qatari lender to report earnings this quarter after Qatar National Bank, which reported a 6.3 percent gain in second-quarter profit.
MIDEAST STOCKS-Gulf stocks rise on higher oil prices, Q2 results | Reuters
MIDEAST STOCKS-Gulf stocks rise on higher oil prices, Q2 results | Reuters:
Most Gulf stock markets closed higher on Sunday, bolstered by firmer oil prices and a clutch of positive financial results.
Oil prices edged up about 1 percent on Friday as strike actions in Norway and Iraq hit supplies. But prices on course for a second straight week of falls after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions.
The Saudi index gained 0.5 percent, with petrochemical group Saudi Basic Industries Corporation (SABIC) rising 1.1 percent and Al Rajhi Bank climbing 0.5 percent. Other banks were also big gainers, with Banque Saudi Fransi climbing 1.7 percent.
Most Gulf stock markets closed higher on Sunday, bolstered by firmer oil prices and a clutch of positive financial results.
Oil prices edged up about 1 percent on Friday as strike actions in Norway and Iraq hit supplies. But prices on course for a second straight week of falls after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions.
The Saudi index gained 0.5 percent, with petrochemical group Saudi Basic Industries Corporation (SABIC) rising 1.1 percent and Al Rajhi Bank climbing 0.5 percent. Other banks were also big gainers, with Banque Saudi Fransi climbing 1.7 percent.
Abraaj's `Unusual' Ways Revealed as PwC Seeks Missing Documents - Bloomberg
Abraaj's `Unusual' Ways Revealed as PwC Seeks Missing Documents - Bloomberg:
Abraaj Holdings had an “unusual” business model reliant on short-term borrowing, and key financial statements are missing or nonexistent, according to one of the firms tasked with salvaging the Dubai-based private-equity firm’s assets.
In a report seen by Bloomberg News, PricewaterhouseCoopers said it has “been unable to obtain standalone annual financial statements or management accounts for the company.” It noted “multiple layers of leverage” as the company borrowed to offset a "long-running liquidity shortfall between the investment management fees and operating expenses.”
This is “an unusual practice for a structure operating in a private equity capacity,” PwC said. “It creates a highly unstable business model, sensitive to volatility and potential liquidity crises, particularly where the cost base cannot be funded by ongoing revenues,” according to the report, which was filed to a Cayman Islands court on July 11.
Abraaj Holdings had an “unusual” business model reliant on short-term borrowing, and key financial statements are missing or nonexistent, according to one of the firms tasked with salvaging the Dubai-based private-equity firm’s assets.
In a report seen by Bloomberg News, PricewaterhouseCoopers said it has “been unable to obtain standalone annual financial statements or management accounts for the company.” It noted “multiple layers of leverage” as the company borrowed to offset a "long-running liquidity shortfall between the investment management fees and operating expenses.”
This is “an unusual practice for a structure operating in a private equity capacity,” PwC said. “It creates a highly unstable business model, sensitive to volatility and potential liquidity crises, particularly where the cost base cannot be funded by ongoing revenues,” according to the report, which was filed to a Cayman Islands court on July 11.
Abraaj Founder Reaches Initial Deal on $300 Million Loan - Bloomberg
Abraaj Founder Reaches Initial Deal on $300 Million Loan - Bloomberg:
Arif Naqvi, the founder of embattled Dubai-based private equity firm Abraaj Group, reached an interim settlement with a creditor on a $300 million loan, his lawyer and a person close to the creditor said.
A deal was reached last week on the entire loan although it has yet to be signed, said Naqvi’s lawyer Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla. The settlement is only interim and not final, said the person close to creditor Hamid Jafar. They didn’t disclose the terms of the deal.
On Sunday, a court in Sharjah, the United Arab Emirates dismissed a bounced check case against Naqvi and Abraaj director Muhammad Rafique Lakhani after the complainant dropped the case. Checks had been issued as a security on a loan of about $200 million to Abraaj and $100 million to Naqvi, Al Mulla said last month.
Arif Naqvi, the founder of embattled Dubai-based private equity firm Abraaj Group, reached an interim settlement with a creditor on a $300 million loan, his lawyer and a person close to the creditor said.
A deal was reached last week on the entire loan although it has yet to be signed, said Naqvi’s lawyer Habib Al Mulla, executive chairman of Baker McKenzie Habib Al Mulla. The settlement is only interim and not final, said the person close to creditor Hamid Jafar. They didn’t disclose the terms of the deal.
On Sunday, a court in Sharjah, the United Arab Emirates dismissed a bounced check case against Naqvi and Abraaj director Muhammad Rafique Lakhani after the complainant dropped the case. Checks had been issued as a security on a loan of about $200 million to Abraaj and $100 million to Naqvi, Al Mulla said last month.
Iranian Official Urges Trump Not to Use U.S. Strategic Oil Reserve - Bloomberg
Iranian Official Urges Trump Not to Use U.S. Strategic Oil Reserve - Bloomberg:
A senior Iranian oil official urged U.S. President Donald Trump not to use the nation’s Strategic Petroleum Reserve to push prices lower, and instead drop sanctions on Iran’s crude exports.
“My advice to you, Mr. President, is to avoid touching the SPR - to cool down and give up sanctioning Iranian oil," Hossein Kazempour Ardebili, Iran’s representative to OPEC, said by email.
The Trump administration is actively considering tapping into the nation’s emergency oil inventories as political pressure grows before congressional elections in November, according to people familiar with the matter. Trump is also trying to choke off Iran’s oil exports after quitting a nuclear deal with the country.
A senior Iranian oil official urged U.S. President Donald Trump not to use the nation’s Strategic Petroleum Reserve to push prices lower, and instead drop sanctions on Iran’s crude exports.
“My advice to you, Mr. President, is to avoid touching the SPR - to cool down and give up sanctioning Iranian oil," Hossein Kazempour Ardebili, Iran’s representative to OPEC, said by email.
The Trump administration is actively considering tapping into the nation’s emergency oil inventories as political pressure grows before congressional elections in November, according to people familiar with the matter. Trump is also trying to choke off Iran’s oil exports after quitting a nuclear deal with the country.
CEO Interview: RAK Ceramics' image overhaul has helped it to avoid price battles | ZAWYA MENA Edition
CEO Interview: RAK Ceramics' image overhaul has helped it to avoid price battles | ZAWYA MENA Edition:
The past couple of years have been tough for any company operating in the Gulf's construction sector - especially for those with exposure to Saudi Arabia.
The value of contract awards in the kingdom fell dramatically in 2015 and 2016 as the government stopped signing any new deals and reviewed its spending commitments following a dramatic fall in oil prices in 2014.
According to project and cost consultancy Faithful + Gould, the value of contracts awarded fell to $22 billion in 2016 and 2017, declining from $35.5 billion in 2015, $49.1 billion in 2014 and $69.1 billion in 2013.
The past couple of years have been tough for any company operating in the Gulf's construction sector - especially for those with exposure to Saudi Arabia.
The value of contract awards in the kingdom fell dramatically in 2015 and 2016 as the government stopped signing any new deals and reviewed its spending commitments following a dramatic fall in oil prices in 2014.
According to project and cost consultancy Faithful + Gould, the value of contracts awarded fell to $22 billion in 2016 and 2017, declining from $35.5 billion in 2015, $49.1 billion in 2014 and $69.1 billion in 2013.
After Saudi, Kuwait sees prospects of MSCI bourse upgrade improving | ZAWYA MENA Edition
After Saudi, Kuwait sees prospects of MSCI bourse upgrade improving | ZAWYA MENA Edition:
Despite facing low levels of liquidity, Kuwait's stock exchange has an increasing probability of joining its peer GCC stock markets in Saudi, UAE and Qatar in gaining a market status upgrade by global index compiler Morgan Stanley Capital International (MSCI), analysts argue, especially with the intensive market reforms it has undergone.
MSCI announced in late June that it will include the Kuwait index in its 2019 Annual Market Classification Review for a potential reclassification from frontier to emerging market status. The index compiler will consult with market participants on the proposed reclassification of the Kuwait index, and will announce its decision in June 2019, with a potential implementation in May 2020.
Last year, the governance board of the Financial Times Stock Exchange (FTSE) Russell index compiler added Kuwait to its Secondary Emerging Market Index, in a transition that is set to take place in two stages in September and December in 2018.
Despite facing low levels of liquidity, Kuwait's stock exchange has an increasing probability of joining its peer GCC stock markets in Saudi, UAE and Qatar in gaining a market status upgrade by global index compiler Morgan Stanley Capital International (MSCI), analysts argue, especially with the intensive market reforms it has undergone.
MSCI announced in late June that it will include the Kuwait index in its 2019 Annual Market Classification Review for a potential reclassification from frontier to emerging market status. The index compiler will consult with market participants on the proposed reclassification of the Kuwait index, and will announce its decision in June 2019, with a potential implementation in May 2020.
Last year, the governance board of the Financial Times Stock Exchange (FTSE) Russell index compiler added Kuwait to its Secondary Emerging Market Index, in a transition that is set to take place in two stages in September and December in 2018.
UAE says sanctioned exchange houses not linked to Iran crackdown | Reuters
UAE says sanctioned exchange houses not linked to Iran crackdown | Reuters:
The United Arab Emirates’ decision to punish seven currency exchange houses is unrelated to a crackdown on a network funneling illicit funds to Iran, the UAE central bank said on Sunday.
“The seven exchange houses had their licenses downgraded because they were found to be in violation of central bank regulations, including anti-money laundering regulations, and then failed to regularize their status during a grace period,” a central bank statement to Reuters said.
It added that the downgrade, originally announced in June, was not linked to a disclosure by Washington that the United States and the UAE had disrupted a currency exchange network transferring funds to Iran’s Islamic Revolutionary Guards.
The United Arab Emirates’ decision to punish seven currency exchange houses is unrelated to a crackdown on a network funneling illicit funds to Iran, the UAE central bank said on Sunday.
“The seven exchange houses had their licenses downgraded because they were found to be in violation of central bank regulations, including anti-money laundering regulations, and then failed to regularize their status during a grace period,” a central bank statement to Reuters said.
It added that the downgrade, originally announced in June, was not linked to a disclosure by Washington that the United States and the UAE had disrupted a currency exchange network transferring funds to Iran’s Islamic Revolutionary Guards.
UPDATE 1-Court dismisses criminal case against founder of UAE's Abraaj | Reuters
UPDATE 1-Court dismisses criminal case against founder of UAE's Abraaj | Reuters:
A United Arab Emirates court on Sunday dismissed a criminal case against the founder of private equity firm Abraaj, Arif Naqvi, and another executive for issuing a cheque without sufficient funds, after the claimant dropped the complaint.
The dismissal of the case provides breathing room for Naqvi as Dubai-based Abraaj tries to sell its investment management business after filing for provisional liquidation in the Cayman Islands last month.
Investor confidence in the Middle East’s largest private equity fund had already been shaken by a dispute with investors over the use of their money in a $1 billion healthcare fund, which has led to a halt in fund-raising activities and sparked debt repayment problems. Abraaj denies any wrongdoing.
A United Arab Emirates court on Sunday dismissed a criminal case against the founder of private equity firm Abraaj, Arif Naqvi, and another executive for issuing a cheque without sufficient funds, after the claimant dropped the complaint.
The dismissal of the case provides breathing room for Naqvi as Dubai-based Abraaj tries to sell its investment management business after filing for provisional liquidation in the Cayman Islands last month.
Investor confidence in the Middle East’s largest private equity fund had already been shaken by a dispute with investors over the use of their money in a $1 billion healthcare fund, which has led to a halt in fund-raising activities and sparked debt repayment problems. Abraaj denies any wrongdoing.
MIDEAST STOCKS-Saudi up on higher oil prices; Aramex down in Dubai | Reuters
MIDEAST STOCKS-Saudi up on higher oil prices; Aramex down in Dubai | Reuters:
Gulf markets were mixed on Sunday as investors digested a late rise in oil prices that still left the commodity lower for the week.
Oil prices edged up about 1 percent on Friday as strike actions in Norway and Iraq hit supplies. Still, futures were set for a second straight week of decline after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions.
The Saudi index gained 0.1 percent, with petrochemical giant Saudi Basic Industries Corporation rising 0.2 percent and Jabal Omar Development climbing 0.5 percent.
Gulf markets were mixed on Sunday as investors digested a late rise in oil prices that still left the commodity lower for the week.
Oil prices edged up about 1 percent on Friday as strike actions in Norway and Iraq hit supplies. Still, futures were set for a second straight week of decline after Libyan ports reopened and on the view that Iran might still export some crude despite U.S. sanctions.
The Saudi index gained 0.1 percent, with petrochemical giant Saudi Basic Industries Corporation rising 0.2 percent and Jabal Omar Development climbing 0.5 percent.
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