UAE bank stocks offer better value than Saudi and Kuwaiti peers, EFG says - The National:
UAE bank shares offer better value than their Kuwaiti and Saudi peers that have received foreign interest after their upgrade to emerging market status, according to Egyptian investment bank EFG Hermes.
“Macro worries – pressure on the real estate, impact on consumer demand due to VAT, weak employment growth and soft RevPar [revenue per available room] for hotels – have weighed on UAE banks [shares],” EFG Hermes analysts Shabbir Malik and Rajae Aadel said in a report released on Wednesday.
"While these trends are expected to continue in the short-term, we note that non-performing loans formation has so far been manageable and the cost of risk is stable.”
Wednesday, 1 August 2018
Exclusive: Mubadala Ventures targets $1bn of tech assets by 2021 - The National
Exclusive: Mubadala Ventures targets $1bn of tech assets by 2021 - The National:
Mubadala Ventures, the venture capital arm of Mubadala Investment Company, expects to grow its portfolio of assets to about $1 billion (Dh3.67bn) by 2021 as it deploys capital from its existing and new funds, including a UAE technology vehicle.
Mubadala Ventures was set up in October last year to oversee its parent company’s $15bn commitment to Japan’s $100bn SoftBank Vision Fund, which counts Apple, Qualcomm and Saudi Arabia’s Public Investment Fund as investors.
Mubadala Ventures also manages the $400m Ventures Fund I targeting early stage US tech companies, a $200m fund-to-fund investment business with the aim to deploy $70m each year, and a $400m European fund due to launch in 2019.
Mubadala Ventures, the venture capital arm of Mubadala Investment Company, expects to grow its portfolio of assets to about $1 billion (Dh3.67bn) by 2021 as it deploys capital from its existing and new funds, including a UAE technology vehicle.
Mubadala Ventures was set up in October last year to oversee its parent company’s $15bn commitment to Japan’s $100bn SoftBank Vision Fund, which counts Apple, Qualcomm and Saudi Arabia’s Public Investment Fund as investors.
Mubadala Ventures also manages the $400m Ventures Fund I targeting early stage US tech companies, a $200m fund-to-fund investment business with the aim to deploy $70m each year, and a $400m European fund due to launch in 2019.
Stronger oil price to slash Saudi budget deficit says brokerage
Stronger oil price to slash Saudi budget deficit says brokerage:
Stronger oil prices could cut the Saudi budget deficit by as much as 28 percent this year according to a report from a top brokerage.
Al-Rajhi Capital expects oil revenues to reach SR134 billion ($35.7 billion) in the second quarter and some SR547.5 billion for the full year.
Oil traded down below $74 yesterday amid concerns that a trade row between the US and China could dampen global demand for oil.
Stronger oil prices could cut the Saudi budget deficit by as much as 28 percent this year according to a report from a top brokerage.
Al-Rajhi Capital expects oil revenues to reach SR134 billion ($35.7 billion) in the second quarter and some SR547.5 billion for the full year.
Oil traded down below $74 yesterday amid concerns that a trade row between the US and China could dampen global demand for oil.
Debt finance is a fact of life for modern economies, as PIF has recognized | Arab News
Debt finance is a fact of life for modern economies, as PIF has recognized | Arab News:
Suddenly, the senior echelons of the Saudi Arabian economy are in love with debt.
In a country that for most of its history lived off the considerable cash flow from oil, in the past couple of years the biggest entities in the Kingdom have changed their minds, and have either raised debt in international markets (like the government) or signaled their willingness to do so (like Saudi Aramco).
The latest member of Saudi Inc. to join the debt club looks like being the Public Investment Fund, the Kingdom’s pensions manager turned sovereign wealth fund.
Suddenly, the senior echelons of the Saudi Arabian economy are in love with debt.
In a country that for most of its history lived off the considerable cash flow from oil, in the past couple of years the biggest entities in the Kingdom have changed their minds, and have either raised debt in international markets (like the government) or signaled their willingness to do so (like Saudi Aramco).
The latest member of Saudi Inc. to join the debt club looks like being the Public Investment Fund, the Kingdom’s pensions manager turned sovereign wealth fund.
Oil at five-week low as supply worries compound trade war threat - The Peninsula Qatar
Oil at five-week low as supply worries compound trade war threat - The Peninsula Qatar:
Crude fell to the lowest in more than five weeks as a surprise rise in U.S. crude inventories and increases in production from OPEC and Russia has investors worried that global supply levels are on the upswing.
Futures in New York dropped 1.6 percent on Wednesday. While data from the Energy Information Administration showed U.S. crude inventories rose 3.8 million barrels last week, Saudi Arabia pumped near-record volumes in July and Russia increased its crude production to levels not seen since it joined OPEC in a coordinated output cut two years ago.
Meanwhile, the U.S. is considering more levies on Chinese imports, according to people familiar with the internal deliberations, imperiling demand growth.
Crude fell to the lowest in more than five weeks as a surprise rise in U.S. crude inventories and increases in production from OPEC and Russia has investors worried that global supply levels are on the upswing.
Futures in New York dropped 1.6 percent on Wednesday. While data from the Energy Information Administration showed U.S. crude inventories rose 3.8 million barrels last week, Saudi Arabia pumped near-record volumes in July and Russia increased its crude production to levels not seen since it joined OPEC in a coordinated output cut two years ago.
Meanwhile, the U.S. is considering more levies on Chinese imports, according to people familiar with the internal deliberations, imperiling demand growth.
Qatar stock market bull keeps raging, index inches to 10,000 levels - The Peninsula Qatar
Qatar stock market bull keeps raging, index inches to 10,000 levels - The Peninsula Qatar:
The run of gains on Qatar stock market extended to fourth consecutive session yesterday and the bull is expected to keep raging. Powered by foreign buying, the QSE benchmark index surged to 9,976.51, up 1.56, its highest levels for 14 months, to close the gap created back in June 2017, the day on which the Arab quartet imposed a blockade on Qatar. QSE said the index delivered highest return amongst emerging and developed world markets in 2018.
Banking and real estate stocks were the main drivers. Banking sector rose 2.20 percent with the Commercial Bank rising the most by 4.14 percent. QNB gained 2.29 percent and QIB advanced 2.25 percent. Ezdan, Doha Bank, QEWC and Barwa were among other top gainers. Ezdan surged 9.83 percent and Barwa jumped 2.48 percent.
QSE index delivered 17.05 percent since the beginning of the year until the close of yesterday’s trading session making it the best performing market across emerging and developed markets globally. In 2018 the market has seen $1.45bn in foreign net inflows demonstrating confidence in the outlook for Qatar, particularly amongst foreign investors, the bourse said.
The run of gains on Qatar stock market extended to fourth consecutive session yesterday and the bull is expected to keep raging. Powered by foreign buying, the QSE benchmark index surged to 9,976.51, up 1.56, its highest levels for 14 months, to close the gap created back in June 2017, the day on which the Arab quartet imposed a blockade on Qatar. QSE said the index delivered highest return amongst emerging and developed world markets in 2018.
Banking and real estate stocks were the main drivers. Banking sector rose 2.20 percent with the Commercial Bank rising the most by 4.14 percent. QNB gained 2.29 percent and QIB advanced 2.25 percent. Ezdan, Doha Bank, QEWC and Barwa were among other top gainers. Ezdan surged 9.83 percent and Barwa jumped 2.48 percent.
QSE index delivered 17.05 percent since the beginning of the year until the close of yesterday’s trading session making it the best performing market across emerging and developed markets globally. In 2018 the market has seen $1.45bn in foreign net inflows demonstrating confidence in the outlook for Qatar, particularly amongst foreign investors, the bourse said.
OPEC Oil Production Climbs as Saudi Arabia Pumps Near Record - Bloomberg
OPEC Oil Production Climbs as Saudi Arabia Pumps Near Record - Bloomberg:
OPEC’s crude output increased last month as Saudi Arabia pumped near-record volumes to make good on a pledge to consumers that demand would be met.
The kingdom’s oil production grew by 230,000 barrels a day in July, to 10.65 million barrels per day. This is just shy of an all-time peak reached in 2016, according to a Bloomberg survey of analysts, oil companies and ship-tracking data.
Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total production from the Organization of Petroleum Exporting Countries by 300,000 barrels a day, offsetting losses from a spiraling economic collapse in Venezuela, political clashes in Libya and the onset of U.S. sanctions against Iran. The group’s 15 members, which now include Congo, collectively produced 32.6 million barrels per day.
OPEC’s crude output increased last month as Saudi Arabia pumped near-record volumes to make good on a pledge to consumers that demand would be met.
The kingdom’s oil production grew by 230,000 barrels a day in July, to 10.65 million barrels per day. This is just shy of an all-time peak reached in 2016, according to a Bloomberg survey of analysts, oil companies and ship-tracking data.
Higher crude output from the Saudis, along with Nigeria and Iraq, pushed up total production from the Organization of Petroleum Exporting Countries by 300,000 barrels a day, offsetting losses from a spiraling economic collapse in Venezuela, political clashes in Libya and the onset of U.S. sanctions against Iran. The group’s 15 members, which now include Congo, collectively produced 32.6 million barrels per day.
Iran MPs summon Rouhani as U.S. pressure squeezes economy | Reuters
Iran MPs summon Rouhani as U.S. pressure squeezes economy | Reuters:
Iranian lawmakers have given President Hassan Rouhani one month to appear before parliament to answer questions on his government’s handling of Iran’s economic struggles, state media reported on Wednesday.
It is the first time parliament has summoned Rouhani, who is under pressure from hardline rivals to change his cabinet following a deterioration in relations with the United States and Iran’s growing economic difficulties.
Lawmakers want to question Rouhani on topics including the rial’s decline, which has lost more than half its value since April, weak economic growth and rising unemployment, according to semi-official ISNA news agency.
Iranian lawmakers have given President Hassan Rouhani one month to appear before parliament to answer questions on his government’s handling of Iran’s economic struggles, state media reported on Wednesday.
It is the first time parliament has summoned Rouhani, who is under pressure from hardline rivals to change his cabinet following a deterioration in relations with the United States and Iran’s growing economic difficulties.
Lawmakers want to question Rouhani on topics including the rial’s decline, which has lost more than half its value since April, weak economic growth and rising unemployment, according to semi-official ISNA news agency.
Dubai tourism growth slows in first half of 2018 | Reuters
Dubai tourism growth slows in first half of 2018 | Reuters:
The number of foreigners visiting Dubai, the Gulf’s tourism hub, grew by 0.5 percent in the first half of 2018, a substantially slower rate than the 10.6 percent growth recorded a year earlier, official date showed on Wednesday.
Dubai, which has spent billions building attractions including the world’s tallest tower, hosted 8.1 million international overnight tourists in the six months to June 30, the tourism department said without giving a comparative figure.
It had previously reported 8.06 million tourists for the first half of 2017 which it said constituted an increase of 10.6 percent year-on-year.
The number of foreigners visiting Dubai, the Gulf’s tourism hub, grew by 0.5 percent in the first half of 2018, a substantially slower rate than the 10.6 percent growth recorded a year earlier, official date showed on Wednesday.
Dubai, which has spent billions building attractions including the world’s tallest tower, hosted 8.1 million international overnight tourists in the six months to June 30, the tourism department said without giving a comparative figure.
It had previously reported 8.06 million tourists for the first half of 2017 which it said constituted an increase of 10.6 percent year-on-year.
MIDEAST STOCKS-Bank sector gains send Qatar to highest close for 14 months | Reuters
MIDEAST STOCKS-Bank sector gains send Qatar to highest close for 14 months | Reuters:
Qatar’s stock market closed at its highest level for 14 months, led by banking stocks and overtaking Saudi Arabia as the top-performing index in the Gulf region while other markets were mixed amid lacklustre trading.
The benchmark Qatari index jumped 1.5 percent to 9,977 points, its highest since late May 2017.
Qatar National Bank and Qatar Islamic Bank rose 2.3 percent, and Commercial Bank jumped 4.1 percent.
Qatar’s stock market closed at its highest level for 14 months, led by banking stocks and overtaking Saudi Arabia as the top-performing index in the Gulf region while other markets were mixed amid lacklustre trading.
The benchmark Qatari index jumped 1.5 percent to 9,977 points, its highest since late May 2017.
Qatar National Bank and Qatar Islamic Bank rose 2.3 percent, and Commercial Bank jumped 4.1 percent.
Quest for Size Has Gulf Banks Rushing to Seal Takeover Deals - Bloomberg
Quest for Size Has Gulf Banks Rushing to Seal Takeover Deals - Bloomberg:
After a long lull, deals between Gulf banks are kicking up a gear.
Lenders across the region are undergoing their biggest shake up since 2007, with almost a dozen of them involved in takeovers or mergers over the past two years. The companies are bulking up to cope with dwindling government revenues following a drop in oil prices that squeezed deposits. They’re also combining operations in a market seen as overbanked for the population size.
"We will see more bank consolidation in the Gulf Cooperation Council, with most activity likely in the United Arab Emirates," said Sergey Dergachev, who helps manage about $14 billion at Union Investment Privatfonds GmbH in Frankfurt. "Compared to Saudi Arabia, the population in the U.A.E. is excessively banked with a few large banks and lots of smaller ones.”
After a long lull, deals between Gulf banks are kicking up a gear.
Lenders across the region are undergoing their biggest shake up since 2007, with almost a dozen of them involved in takeovers or mergers over the past two years. The companies are bulking up to cope with dwindling government revenues following a drop in oil prices that squeezed deposits. They’re also combining operations in a market seen as overbanked for the population size.
"We will see more bank consolidation in the Gulf Cooperation Council, with most activity likely in the United Arab Emirates," said Sergey Dergachev, who helps manage about $14 billion at Union Investment Privatfonds GmbH in Frankfurt. "Compared to Saudi Arabia, the population in the U.A.E. is excessively banked with a few large banks and lots of smaller ones.”
Qatar Stocks Erase Losses Suffered Since Embargo Began Last Year - Bloomberg
Qatar Stocks Erase Losses Suffered Since Embargo Began Last Year - Bloomberg:
Qatar’s main stock benchmark has recovered all losses since a standoff with a group of neighboring countries started almost 14 months ago, as a softening of foreign ownership limits fueled a rally.
The QE Index rose 1.5 percent to 9,976.51 at the close Wednesday, reaching levels not seen since May 2017, before countries including Saudi Arabia and the United Arab Emirates severed economic and diplomatic ties with the gas-rich neighbor over its links to Iran and the alleged funding of terrorism. The benchmark is up 17 percent this year, recovering from a slump of 18 percent last year.
While the standoff shows no sign of ending, pressure on Qatari assets in general has eased. After plunging the most in almost a decade the day the embargo was announced, Qatar’s stock benchmark is outperforming its peers in Dubai and Abu Dhabi this year.
Qatar’s main stock benchmark has recovered all losses since a standoff with a group of neighboring countries started almost 14 months ago, as a softening of foreign ownership limits fueled a rally.
The QE Index rose 1.5 percent to 9,976.51 at the close Wednesday, reaching levels not seen since May 2017, before countries including Saudi Arabia and the United Arab Emirates severed economic and diplomatic ties with the gas-rich neighbor over its links to Iran and the alleged funding of terrorism. The benchmark is up 17 percent this year, recovering from a slump of 18 percent last year.
While the standoff shows no sign of ending, pressure on Qatari assets in general has eased. After plunging the most in almost a decade the day the embargo was announced, Qatar’s stock benchmark is outperforming its peers in Dubai and Abu Dhabi this year.
Bank Dhofar-NBO tie up could create lender with $20bln asset base | ZAWYA MENA Edition
Bank Dhofar-NBO tie up could create lender with $20bln asset base | ZAWYA MENA Edition:
A merger between Bank Dhofar and the National Bank of Oman offers the chance for one larger lender to combine with a more efficient one, bringing benefits to both, according to analysts.
The two banks announced in joint statements on Monday afternoon that their boards had met on Sunday and had resolved to begin talks "to explore the possibility of a merger between the two entities".
"If the two banks merge, then the combined entity will be the second-largest bank of Oman, with a total asset base of 7.68 billion Oman rials (~$20 billions), compared to the largest bank, Bank Muscat, which has total assets worth 11.54 billion rials, as at H1 2018," Hettish Karmani, head of research at Muscat-based U-Capital said in an emailed statement to Zawya.
A merger between Bank Dhofar and the National Bank of Oman offers the chance for one larger lender to combine with a more efficient one, bringing benefits to both, according to analysts.
The two banks announced in joint statements on Monday afternoon that their boards had met on Sunday and had resolved to begin talks "to explore the possibility of a merger between the two entities".
"If the two banks merge, then the combined entity will be the second-largest bank of Oman, with a total asset base of 7.68 billion Oman rials (~$20 billions), compared to the largest bank, Bank Muscat, which has total assets worth 11.54 billion rials, as at H1 2018," Hettish Karmani, head of research at Muscat-based U-Capital said in an emailed statement to Zawya.
Iran wary of Trump offer for talks, but not ruling them out
Iran wary of Trump offer for talks, but not ruling them out:
Iran reacted skeptically Tuesday to President Donald Trump saying that he’s willing to negotiate with his Iranian counterpart “anytime,” but top officials did not reject a sit-down out of hand.
Ali Akbar Nategh Nouri, a senior cleric and member of the influential Expediency Council, said Trump’s suggestion Monday that he would be willing to meet with Iranian President Hassan Rouhani should not be categorically rejected.
“It should be discussed in the Supreme National Security Council,” said Nategh Nouri, who is also a former aide to Supreme Leader Ayatollah Ali Khamenei. Nategh Nouri said “we have to contemplate” the gesture, but also cautioned “we should not rejoice over this offer and not get excited.”
Iran reacted skeptically Tuesday to President Donald Trump saying that he’s willing to negotiate with his Iranian counterpart “anytime,” but top officials did not reject a sit-down out of hand.
Ali Akbar Nategh Nouri, a senior cleric and member of the influential Expediency Council, said Trump’s suggestion Monday that he would be willing to meet with Iranian President Hassan Rouhani should not be categorically rejected.
“It should be discussed in the Supreme National Security Council,” said Nategh Nouri, who is also a former aide to Supreme Leader Ayatollah Ali Khamenei. Nategh Nouri said “we have to contemplate” the gesture, but also cautioned “we should not rejoice over this offer and not get excited.”
Founder of Middle East's Abraaj faces fresh criminal action | Reuters
Founder of Middle East's Abraaj faces fresh criminal action | Reuters:
Arif Naqvi, the founder of Abraaj, the Middle East’s largest private equity firm, is facing fresh criminal charges over accusations of issuing a cheque without sufficient funds, lawyers said.
The case brought by Hamid Jafar, another founding shareholder in United Arab Emirates-based Abraaj, comes as the company’s provisional liquidators seek to sell its investment management business.
The claim, which relates to a bounced cheque for 798 million dirhams ($217.3 million), is set to be heard by a Sharjah court on August 14, said Habib al-Mulla, a lawyer for Naqvi.
Arif Naqvi, the founder of Abraaj, the Middle East’s largest private equity firm, is facing fresh criminal charges over accusations of issuing a cheque without sufficient funds, lawyers said.
The case brought by Hamid Jafar, another founding shareholder in United Arab Emirates-based Abraaj, comes as the company’s provisional liquidators seek to sell its investment management business.
The claim, which relates to a bounced cheque for 798 million dirhams ($217.3 million), is set to be heard by a Sharjah court on August 14, said Habib al-Mulla, a lawyer for Naqvi.
Oil falls below $74 on U.S. inventories, OPEC supply | Reuters
Oil falls below $74 on U.S. inventories, OPEC supply | Reuters:
Oil slipped below $74 a barrel on Wednesday, pressured by an industry report that U.S. stockpiles of crude rose unexpectedly and by higher OPEC production, adding to indications of more ample supply.
On Tuesday, the American Petroleum Institute said crude inventories rose by 5.6 million barrels last week. Analysts had expected a decrease of 2.8 million. The U.S. government’s supply report is due on Wednesday. [EIA/S]
Brent crude LCOc1, the global benchmark, dropped 85 cents to $73.36 a barrel by 0938 GMT, having fallen as low as $73.15. U.S. crude CLc1 was down 73 cents at $68.03.
Oil slipped below $74 a barrel on Wednesday, pressured by an industry report that U.S. stockpiles of crude rose unexpectedly and by higher OPEC production, adding to indications of more ample supply.
On Tuesday, the American Petroleum Institute said crude inventories rose by 5.6 million barrels last week. Analysts had expected a decrease of 2.8 million. The U.S. government’s supply report is due on Wednesday. [EIA/S]
Brent crude LCOc1, the global benchmark, dropped 85 cents to $73.36 a barrel by 0938 GMT, having fallen as low as $73.15. U.S. crude CLc1 was down 73 cents at $68.03.
MIDEAST STOCKS-Qatar rises on positive sentiment, other markets mixed | Reuters
MIDEAST STOCKS-Qatar rises on positive sentiment, other markets mixed | Reuters:
Qatar’s stock market rose in early Wednesday trade on positive sentiment among investors, whereas other markets were mixed amid lacklustre trading as investors await positive news to make new positions.
The Qatari index rose 0.5 percent, backed by solid gains led by Qatar Islamic Bank and Masraf Al Rayan , which added 2.3 percent and 1.2 percent respectively.
The index has risen 15.7 percent year-to-date, overtaking Saudi Arabia as the best-performing index in the Gulf region. The Saudi stock market has risen 14.8 percent year-to-date.
Qatar’s stock market rose in early Wednesday trade on positive sentiment among investors, whereas other markets were mixed amid lacklustre trading as investors await positive news to make new positions.
The Qatari index rose 0.5 percent, backed by solid gains led by Qatar Islamic Bank and Masraf Al Rayan , which added 2.3 percent and 1.2 percent respectively.
The index has risen 15.7 percent year-to-date, overtaking Saudi Arabia as the best-performing index in the Gulf region. The Saudi stock market has risen 14.8 percent year-to-date.
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