Merger of two Omani banks will form an entity with 25% share of loan market - The National:
The merger of Bank Dhofar and National Bank of Oman will create a lender that will account for 25 per cent of the aggregate banking assets and the Oman’s loans market, according to a research report.
The merged entity, with $20 billion (Dh74bn) in combined assets, will be the second-largest financial institution in the country, behind Bank Muscat, EFH Hermes said in a report released on Monday.
Bank Muscat currently accounts for 36 per cent each of the banking assets and loans market in the country.
Monday, 6 August 2018
Moody’s upgrades DP World ratings | GulfNews.com
Moody’s upgrades DP World ratings | GulfNews.com:
Ratings agency Moody’s has upgraded the long-term issuer rating of Dubai-based port operator DP World from Baa2 to Baa1, with a stable outlook.
The agency said the upgrade reflected DP World’s diversified global operations, the expected long-term growth in international container shipping, solid profitability and liquidity, management track record in adherence to leverage targets, and its flexibility to delay capital expenditure to support its balance sheet if required.
“Our decision to upgrade DP World’s ratings reflects a strong track record in managing its business through industry cycles as well as achieving its growth ambitions, while maintaining a healthy financial profile,” said Rehan Akbar, a Moody’s vice-president and senior analyst.
Ratings agency Moody’s has upgraded the long-term issuer rating of Dubai-based port operator DP World from Baa2 to Baa1, with a stable outlook.
The agency said the upgrade reflected DP World’s diversified global operations, the expected long-term growth in international container shipping, solid profitability and liquidity, management track record in adherence to leverage targets, and its flexibility to delay capital expenditure to support its balance sheet if required.
“Our decision to upgrade DP World’s ratings reflects a strong track record in managing its business through industry cycles as well as achieving its growth ambitions, while maintaining a healthy financial profile,” said Rehan Akbar, a Moody’s vice-president and senior analyst.
Oil price could become weapon in US trade battle with China | Arab News
Oil price could become weapon in US trade battle with China | Arab News:
It is no longer appropriate to talk about an imminent, looming or possible trade war between China and the US.
As of last week, when the Chinese retaliated with tariffs on $60 billion of American goods — a response to US President Donald Trump’s plan for higher tariffs on $200 billion of Chinese imports — the global economic system is right in the thick of a trade conflict that looks only likely to escalate.
The Middle East, though not one of the principal protagonists in a conflict that will wreak damage on the global economy, is caught in the crossfire, and could yet become one of the main battlefields.
It is no longer appropriate to talk about an imminent, looming or possible trade war between China and the US.
As of last week, when the Chinese retaliated with tariffs on $60 billion of American goods — a response to US President Donald Trump’s plan for higher tariffs on $200 billion of Chinese imports — the global economic system is right in the thick of a trade conflict that looks only likely to escalate.
The Middle East, though not one of the principal protagonists in a conflict that will wreak damage on the global economy, is caught in the crossfire, and could yet become one of the main battlefields.
Qatar new business growth hits nine-month high: QFC
Qatar new business growth hits nine-month high: QFC:
Qatar’s non-hydrocarbon private sector started the third quarter on a solid footing, according to the latest QFC Qatar PMI data.
A survey-record rate of job creation alongside marked new order growth contributed to July’s findings. Furthermore, business confidence improved to the highest level recorded since the survey’s inception in April 2017.
The survey, compiled for the Qatar Financial Centre by IHS Markit, has been conducted since April 2017 and provides an early indication of operating conditions in Qatar. The headline figure derived from the survey is the Purchasing Managers’ Index (PMI).
Qatar’s non-hydrocarbon private sector started the third quarter on a solid footing, according to the latest QFC Qatar PMI data.
A survey-record rate of job creation alongside marked new order growth contributed to July’s findings. Furthermore, business confidence improved to the highest level recorded since the survey’s inception in April 2017.
The survey, compiled for the Qatar Financial Centre by IHS Markit, has been conducted since April 2017 and provides an early indication of operating conditions in Qatar. The headline figure derived from the survey is the Purchasing Managers’ Index (PMI).
Analysts Say Saudi-Canada Fuss Is Noise, But Doesn't Look Good - Bloomberg
Analysts Say Saudi-Canada Fuss Is Noise, But Doesn't Look Good - Bloomberg:
Not helpful, but unlikely to have much immediate market impact.
That’s how investors are describing Saudi Arabia’s decision to suspend diplomatic ties and new trade dealings with Canada over that country’s call for the release of a women’s rights activist. The spat came as the Middle East’s biggest economy, which allowed foreign investors direct access to stocks in 2015, steps up measures to lure investors as it tries to diversify its oil-dependent economy.
“There are some things that look positive while there are others that look as regressive as we have seen in the past,” said Marie Owens Thomsen, global head of investment intelligence at Indosuez Wealth Management in Geneva. “As an international investor, arguably, you really don’t know at which leg to stand on. Even if it doesn’t necessarily have a direct impact on business dealings, it doesn’t help.’’
Not helpful, but unlikely to have much immediate market impact.
That’s how investors are describing Saudi Arabia’s decision to suspend diplomatic ties and new trade dealings with Canada over that country’s call for the release of a women’s rights activist. The spat came as the Middle East’s biggest economy, which allowed foreign investors direct access to stocks in 2015, steps up measures to lure investors as it tries to diversify its oil-dependent economy.
“There are some things that look positive while there are others that look as regressive as we have seen in the past,” said Marie Owens Thomsen, global head of investment intelligence at Indosuez Wealth Management in Geneva. “As an international investor, arguably, you really don’t know at which leg to stand on. Even if it doesn’t necessarily have a direct impact on business dealings, it doesn’t help.’’
Saudi Arabia Crude Flows to U.S. Swell as Venezuela Output Falls - Bloomberg
Saudi Arabia Crude Flows to U.S. Swell as Venezuela Output Falls - Bloomberg:
Saudi Arabia is sending the most crude oil to the U.S. in 15 months.
The world’s largest oil exporter loaded 1 million barrels a day onto tankers bound for the U.S. in July, according to preliminary vessel-tracking data compiled by Bloomberg. That’s a 36 percent jump from June and the single biggest monthly flow to the U.S. since April 2017.
The surge in flows might help officials in Riyadh to argue that they’re responding after U.S. President Donald Trump blamed OPEC for high oil prices and called on Saudi Arabia to add supply. It also helps replace barrels that have been lost by the collapse in Venezuela, normally a major source of U.S. crude imports, according to Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland.
Saudi Arabia is sending the most crude oil to the U.S. in 15 months.
The world’s largest oil exporter loaded 1 million barrels a day onto tankers bound for the U.S. in July, according to preliminary vessel-tracking data compiled by Bloomberg. That’s a 36 percent jump from June and the single biggest monthly flow to the U.S. since April 2017.
The surge in flows might help officials in Riyadh to argue that they’re responding after U.S. President Donald Trump blamed OPEC for high oil prices and called on Saudi Arabia to add supply. It also helps replace barrels that have been lost by the collapse in Venezuela, normally a major source of U.S. crude imports, according to Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland.
China’s Gas Tariffs Are a Permian-Size Problem for Oil - Bloomberg
China’s Gas Tariffs Are a Permian-Size Problem for Oil - Bloomberg:
Energy dominance sure does seem to come with a hefty dose of self-flagellation.
The latest bit of America’s energy sector to feel the over-the-shoulder lash is the liquefied natural gas-export business. On Friday, LNG joined the list of goods that China will hit with tariffs in retaliation for U.S. ones. This is problematic when you consider China has taken 13 percent of U.S. LNG exports (and more like a quarter last winter), according to Bloomberg New Energy Finance.
As I wrote here about U.S. oil, a tariff imposed by one of the world’s largest importers of fuel will act as an effective tax on exporters. China buys U.S. LNG on the spot market, so its demand is very sensitive to the spread between benchmark U.S. natural gas prices and Asian prices. That spread has to absorb the cost of converting U.S. gas into a liquid (typically a 15 percent premium) and shipping it across the world (about $2 per million BTU via the Panama Canal, according to BNEF’s LNG Shipping Calculator).
Energy dominance sure does seem to come with a hefty dose of self-flagellation.
The latest bit of America’s energy sector to feel the over-the-shoulder lash is the liquefied natural gas-export business. On Friday, LNG joined the list of goods that China will hit with tariffs in retaliation for U.S. ones. This is problematic when you consider China has taken 13 percent of U.S. LNG exports (and more like a quarter last winter), according to Bloomberg New Energy Finance.
As I wrote here about U.S. oil, a tariff imposed by one of the world’s largest importers of fuel will act as an effective tax on exporters. China buys U.S. LNG on the spot market, so its demand is very sensitive to the spread between benchmark U.S. natural gas prices and Asian prices. That spread has to absorb the cost of converting U.S. gas into a liquid (typically a 15 percent premium) and shipping it across the world (about $2 per million BTU via the Panama Canal, according to BNEF’s LNG Shipping Calculator).
Crude Advances After Saudi Restraint Sparks Renewed Supply Fears - Bloomberg
Crude Advances After Saudi Restraint Sparks Renewed Supply Fears - Bloomberg:
Crude closed at the highest in a week after Saudi Arabian production cuts heightened concerns about tightening worldwide supplies.
Futures in New York advanced 0.8 percent on Monday. OPEC’s largest producer curbed output last month, according to OPEC delegates, despite Energy Minister Khalid al-Falih pledge to add about 1 million barrels to forestall any shortages. Labor strikes also resumed in the North Sea, fueling worries about an additional supply hitch.
“Reports that the Saudi output in July had dropped, seemed to catch a bid in the market,” said Gene McGillian, manager of market research at Tradition Energy.
Crude closed at the highest in a week after Saudi Arabian production cuts heightened concerns about tightening worldwide supplies.
Futures in New York advanced 0.8 percent on Monday. OPEC’s largest producer curbed output last month, according to OPEC delegates, despite Energy Minister Khalid al-Falih pledge to add about 1 million barrels to forestall any shortages. Labor strikes also resumed in the North Sea, fueling worries about an additional supply hitch.
“Reports that the Saudi output in July had dropped, seemed to catch a bid in the market,” said Gene McGillian, manager of market research at Tradition Energy.
New wave of mega LNG projects is approaching | Reuters
New wave of mega LNG projects is approaching | Reuters:
A new race to build multi-billion dollar liquefied natural gas (LNG) plants is gaining momentum after a long hiatus in investments as energy giants sense a widening supply gap within five years.
Spending on new, complex facilities that super-chill gas into liquid in order to allow its transportation dried up following the collapse in energy prices in 2014.
Appetite was further dampened by fears that a plethora of LNG plants built since the late 2000s would lead to a large supply glut until early in the next decade.
A new race to build multi-billion dollar liquefied natural gas (LNG) plants is gaining momentum after a long hiatus in investments as energy giants sense a widening supply gap within five years.
Spending on new, complex facilities that super-chill gas into liquid in order to allow its transportation dried up following the collapse in energy prices in 2014.
Appetite was further dampened by fears that a plethora of LNG plants built since the late 2000s would lead to a large supply glut until early in the next decade.
Saudi Arabia's Savola Group Q2 profit falls 39 pct | Reuters
Saudi Arabia's Savola Group Q2 profit falls 39 pct | Reuters:
Saudi food producer Savola Group , the country’s largest food products company, reported a 39 percent fall in second-quarter net profit on Monday, as lower sales in its food and retail sectors and higher operating costs hurt the business.
Net profit in the three months to June 30 was 140.6 million riyals ($37.5 million), compared with 229.3 million riyals in the same period a year earlier, Savola said in a bourse statement.
EFG Hermes forecast Savola would make a quarterly net profit of 177.0 million riyals.
Saudi food producer Savola Group , the country’s largest food products company, reported a 39 percent fall in second-quarter net profit on Monday, as lower sales in its food and retail sectors and higher operating costs hurt the business.
Net profit in the three months to June 30 was 140.6 million riyals ($37.5 million), compared with 229.3 million riyals in the same period a year earlier, Savola said in a bourse statement.
EFG Hermes forecast Savola would make a quarterly net profit of 177.0 million riyals.
MIDEAST STOCKS-Abu Dhabi index at highest in almost three years on energy, banks | Reuters
MIDEAST STOCKS-Abu Dhabi index at highest in almost three years on energy, banks | Reuters:
Gains in energy and banking stocks lifted the Abu Dhabi index to its highest level in almost three years, while financial stocks lifted Kuwaiti shares, as the two markets led gains across most Gulf exchanges on Monday.
The Abu Dhabi index ended 1.6 percent higher at 4,884 points, the highest mark since late July 2015.
The Abu Dhabi National Energy Co (TAQA) surged 4.2 percent and First Abu Dhabi Bank (FAB) rose 3.3 percent.
Gains in energy and banking stocks lifted the Abu Dhabi index to its highest level in almost three years, while financial stocks lifted Kuwaiti shares, as the two markets led gains across most Gulf exchanges on Monday.
The Abu Dhabi index ended 1.6 percent higher at 4,884 points, the highest mark since late July 2015.
The Abu Dhabi National Energy Co (TAQA) surged 4.2 percent and First Abu Dhabi Bank (FAB) rose 3.3 percent.
Sanctions Threat Forces Iran to End Brief Effort to Support Rial - Bloomberg
Sanctions Threat Forces Iran to End Brief Effort to Support Rial - Bloomberg:
Iran’s central bank, acting on the eve of U.S. sanctions, scrapped most currency controls introduced this year in a bid to halt a plunge in the rial that has stirred protests against the government of President Hassan Rouhani.
Under the measures, the central bank will allow the market to determine the rate of foreign-exchange transactions except the imports of essential goods and drugs, Governor Abdolnaser Hemmati told state television Sunday night. Licensed currency houses whose trading had been halted will be allowed to resume operations from Tuesday, he said.
Iran’s central bank, acting on the eve of U.S. sanctions, scrapped most currency controls introduced this year in a bid to halt a plunge in the rial that has stirred protests against the government of President Hassan Rouhani.
Under the measures, the central bank will allow the market to determine the rate of foreign-exchange transactions except the imports of essential goods and drugs, Governor Abdolnaser Hemmati told state television Sunday night. Licensed currency houses whose trading had been halted will be allowed to resume operations from Tuesday, he said.
Iran’s Oil-Market Realities: How Buyers Are Positioning for U.S. Sanctions - Bloomberg
Iran’s Oil-Market Realities: How Buyers Are Positioning for U.S. Sanctions - Bloomberg:
In three months’ time, U.S. sanctions on Iran are due to enter into force that could drive the Persian Gulf nation’s exports down toward zero and upend the global oil market. There are already signs that it will be harder for the country to export, as some international insurers stop covering shipments.
The U.S. measures require buyers to cut purchases or run the risk of their banks being excluded from the American financial system. If they do scale back, then there’s a risk of spiraling crude prices.
In three months’ time, U.S. sanctions on Iran are due to enter into force that could drive the Persian Gulf nation’s exports down toward zero and upend the global oil market. There are already signs that it will be harder for the country to export, as some international insurers stop covering shipments.
The U.S. measures require buyers to cut purchases or run the risk of their banks being excluded from the American financial system. If they do scale back, then there’s a risk of spiraling crude prices.
Graphic: TAQA pushes Abu Dhabi's stock market higher on Monday, as its stock price more than doubles in 2018 | ZAWYA MENA Edition
Graphic: TAQA pushes Abu Dhabi's stock market higher on Monday, as its stock price more than doubles in 2018 | ZAWYA MENA Edition:
Energy stocks in Abu Dhabi were among the main benefactors of rising oil prices on Monday, as the market anticipated the possibility of renewed sanctions on Iran.
Abu Dhabi’s National Energy Company (TAQA), the best performer in Abu Dhabi, closed 4.24 percent higher at the end of Monday’s trading session, while Dana gas added 0.93 percent.
The rise in energy shares helped the Abu Dhabi index to add 1.79 percent on Monday, after dropping close to 0.1 percent in the previous session.
Energy stocks in Abu Dhabi were among the main benefactors of rising oil prices on Monday, as the market anticipated the possibility of renewed sanctions on Iran.
Abu Dhabi’s National Energy Company (TAQA), the best performer in Abu Dhabi, closed 4.24 percent higher at the end of Monday’s trading session, while Dana gas added 0.93 percent.
The rise in energy shares helped the Abu Dhabi index to add 1.79 percent on Monday, after dropping close to 0.1 percent in the previous session.
UAE's Stanford Marine creditors in talks about sale of business -sources | Reuters
UAE's Stanford Marine creditors in talks about sale of business -sources | Reuters:
Creditors of Stanford Marine Group (SMG), which has links to troubled private equity firm Abraaj, are in talks with three potential buyers, sources familiar with the matter say.
Banks are overseeing control of Dubai-based SMG after it failed to meet the terms of its debt obligations due to financial stress linked to a steep fall in chartering rates, the sources said.
SMG, which operates offshore supply vessels that service the oil and gas industry, is 51 percent owned by a fund managed by Abraaj. Dubai-based Abraaj filed for provisional liquidation in June after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Creditors of Stanford Marine Group (SMG), which has links to troubled private equity firm Abraaj, are in talks with three potential buyers, sources familiar with the matter say.
Banks are overseeing control of Dubai-based SMG after it failed to meet the terms of its debt obligations due to financial stress linked to a steep fall in chartering rates, the sources said.
SMG, which operates offshore supply vessels that service the oil and gas industry, is 51 percent owned by a fund managed by Abraaj. Dubai-based Abraaj filed for provisional liquidation in June after a row with investors over the use of their money in a $1 billion healthcare fund. Abraaj denies any wrongdoing.
Oil gains after monthly Saudi output shows surprise drop | Reuters
Oil gains after monthly Saudi output shows surprise drop | Reuters:
Oil rose on Monday after Saudi crude production registered an unexpected decline in July and U.S. drilling appeared to slow, although the price is still almost 10 percent below its 2018 high of more than $80 a barrel.
Markets also anticipated an announcement from Washington later on Monday on renewed U.S. sanctions against major oil exporter Iran. So-called “snapback” sanctions are due to be reinstated at 12:01 a.m. EDT on Tuesday, according to a U.S. Treasury official.
Saudi Arabia pumped around 10.29 million barrels per day (bpd) of crude in July, two OPEC sources said on Friday, down about 200,000 bpd from a month earlier.
Oil rose on Monday after Saudi crude production registered an unexpected decline in July and U.S. drilling appeared to slow, although the price is still almost 10 percent below its 2018 high of more than $80 a barrel.
Markets also anticipated an announcement from Washington later on Monday on renewed U.S. sanctions against major oil exporter Iran. So-called “snapback” sanctions are due to be reinstated at 12:01 a.m. EDT on Tuesday, according to a U.S. Treasury official.
Saudi Arabia pumped around 10.29 million barrels per day (bpd) of crude in July, two OPEC sources said on Friday, down about 200,000 bpd from a month earlier.
MIDEAST STOCKS-Energy stocks lift Abu Dhabi, Saudi, Qatar flat | Reuters
MIDEAST STOCKS-Energy stocks lift Abu Dhabi, Saudi, Qatar flat | Reuters:
Firm oil prices boosted energy shares in the Abu Dhabi market and financials boosted Kuwaiti stocks on Monday, however the Gulf’s two star performers, Saudi and Qatari stocks, were little changed in the absence of major corporate or economic news.
Abu Dhabi index was up 1.4 percent, with Abu Dhabi National Energy Co up 1.7 percent. Dana Gas also rose 0.9 percent, fueled by higher oil prices.
Oil prices held firm on Monday after Saudi crude production registered a surprising dip in July and as American shale drilling appeared to plateau. Markets also expecting an announcement from Washington later on Monday on renewed U.S. sanctions against major oil exporter Iran.
Firm oil prices boosted energy shares in the Abu Dhabi market and financials boosted Kuwaiti stocks on Monday, however the Gulf’s two star performers, Saudi and Qatari stocks, were little changed in the absence of major corporate or economic news.
Abu Dhabi index was up 1.4 percent, with Abu Dhabi National Energy Co up 1.7 percent. Dana Gas also rose 0.9 percent, fueled by higher oil prices.
Oil prices held firm on Monday after Saudi crude production registered a surprising dip in July and as American shale drilling appeared to plateau. Markets also expecting an announcement from Washington later on Monday on renewed U.S. sanctions against major oil exporter Iran.
NMC Health eyes expansion in Saudi Arabia | GulfNews.com
NMC Health eyes expansion in Saudi Arabia | GulfNews.com:
Abu Dhabi-based NMC Health is planning to expand in Saudi Arabia due to growing opportunities and strong demand in the health-care sector, its chief executive officer told Gulf News.
The London-listed company has significantly increased its presence in Saudi Arabia in recent times and currently owns five hospitals with a combined bed capacity of 650.
“With a population of 33 million, increasing levels of health insurance and disposable incomes on the rise, the Kingdom of Saudi Arabia is a highly attractive market with strong demographic demand. Hence the reason for our expansion into the kingdom, making us the second largest player in the private sector,” said Prasanth Manghat, CEO and executive director of NMC Health.
Abu Dhabi-based NMC Health is planning to expand in Saudi Arabia due to growing opportunities and strong demand in the health-care sector, its chief executive officer told Gulf News.
The London-listed company has significantly increased its presence in Saudi Arabia in recent times and currently owns five hospitals with a combined bed capacity of 650.
“With a population of 33 million, increasing levels of health insurance and disposable incomes on the rise, the Kingdom of Saudi Arabia is a highly attractive market with strong demographic demand. Hence the reason for our expansion into the kingdom, making us the second largest player in the private sector,” said Prasanth Manghat, CEO and executive director of NMC Health.
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