Putin pledges deeper ties with Iran and other Caspian Sea states | Financial Times:
Russia has pledged to deepen co-operation with Iran and its Central Asian neighbours through a landmark deal on carving up the Caspian Sea, potentially paving the way for long-stalled energy projects and confirming Russia’s military supremacy over the world’s biggest lake.
The Caspian’s littoral states of Azerbaijan, Iran, Kazakhstan, Russia and Turkmenistan have quarrelled for more than two decades since the collapse of the Soviet Union over how to divide the strategically-important landlocked sea. On Sunday they signed a deal to manage a resource that holds large hydrocarbon resources and is a bridge between Central Asia, the Middle East and Europe.
“This is an exceptional summit with milestone significance for the fate of the Caspian Sea,” Russian president Vladimir Putin told his fellow leaders. “This gives an opportunity for us to be on a different level of partnership to develop our co-operation in various new directions.”
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Sunday 12 August 2018
Abraaj founder Arif Naqvi resigns from Air Arabia board | GulfNews.com
Abraaj founder Arif Naqvi resigns from Air Arabia board | GulfNews.com:
Arif Naqvi, the founder of beleaguered private equity firm Abraaj, has resigned from the board of directors of Air Arabia, according to a statement filed by the airline on the Dubai Financial Market (DFM) on Sunday.
According to the statement, the board discussed Naqvi’s resignation at meeting held on August 9. The board will nominate a replacing member within the coming weeks, the statement added.
In mid-June, the Sharjah-based airline had disclose that it had $336 million (Dh1.2 billion) invested in Abraaj funds but said its exposure to the embattled group would not impact its operations. Air Arabia’s exposure to Abraaj was through fund portfolios and short-term investments.
Arif Naqvi, the founder of beleaguered private equity firm Abraaj, has resigned from the board of directors of Air Arabia, according to a statement filed by the airline on the Dubai Financial Market (DFM) on Sunday.
According to the statement, the board discussed Naqvi’s resignation at meeting held on August 9. The board will nominate a replacing member within the coming weeks, the statement added.
In mid-June, the Sharjah-based airline had disclose that it had $336 million (Dh1.2 billion) invested in Abraaj funds but said its exposure to the embattled group would not impact its operations. Air Arabia’s exposure to Abraaj was through fund portfolios and short-term investments.
Russia, Iran, and 3 others agree Caspian status, but not borders | GulfNews.com
Russia, Iran, and 3 others agree Caspian status, but not borders | GulfNews.com:
Iran and four ex-Soviet nations, including Russia, agreed in principle on Sunday how to divide up the potentially huge oil and gas resources of the Caspian Sea, paving way for more energy exploration and pipeline projects.
However, the delimitation of the seabed — which has caused most disputes — will require additional agreements between littoral nations, Iranian President Hassan Rouhani said.
For almost three decades, the five littoral states — Russia, Iran, Kazakhstan, Turkmenistan and Azerbaijan — have argued over how to divide the world’s biggest enclosed body of water.
Iran and four ex-Soviet nations, including Russia, agreed in principle on Sunday how to divide up the potentially huge oil and gas resources of the Caspian Sea, paving way for more energy exploration and pipeline projects.
However, the delimitation of the seabed — which has caused most disputes — will require additional agreements between littoral nations, Iranian President Hassan Rouhani said.
For almost three decades, the five littoral states — Russia, Iran, Kazakhstan, Turkmenistan and Azerbaijan — have argued over how to divide the world’s biggest enclosed body of water.
State Street banker sees pace of reforms in Arabian Gulf accelerating
State Street banker sees pace of reforms in Arabian Gulf accelerating:
The rapid economic changes taking place in the Arabian Gulf economies require a cadre of top global financial institutions to help see them through, and State Street Corporation fits the bill completely.
The 226-year-old American financial group, ranked among the biggest banking businesses in the world, recently joined the Dubai International Financial Center (DIFC) through its investment banking and asset management unit State Street Global Advisers (SSGA), cementing a presence in the region it has held for 26 years.
Emmanuel Laurina, the 43-year-old Belgian who heads up the Middle East business for State Street, told Arab News that the UAE was a good place to be based to exploit the new economic environment in the region, and especially the business opportunities in Saudi Arabia, undergoing rapid change as a result of the Vision 2030 strategy to diversify away from oil dependency.
The rapid economic changes taking place in the Arabian Gulf economies require a cadre of top global financial institutions to help see them through, and State Street Corporation fits the bill completely.
The 226-year-old American financial group, ranked among the biggest banking businesses in the world, recently joined the Dubai International Financial Center (DIFC) through its investment banking and asset management unit State Street Global Advisers (SSGA), cementing a presence in the region it has held for 26 years.
Emmanuel Laurina, the 43-year-old Belgian who heads up the Middle East business for State Street, told Arab News that the UAE was a good place to be based to exploit the new economic environment in the region, and especially the business opportunities in Saudi Arabia, undergoing rapid change as a result of the Vision 2030 strategy to diversify away from oil dependency.
Saudi Fund in Talks to Invest in Tesla Buyout Deal - Bloomberg
Saudi Fund in Talks to Invest in Tesla Buyout Deal - Bloomberg:
Saudi Arabia’s sovereign wealth fund is in talks that could see it becoming a significant investor in Tesla as part of Elon Musk’s plan to take the electric car maker private, according to people with knowledge of the fund’s plans.
The Public Investment Fund, which has built up a stake just shy of 5 percent in Tesla in recent months, is exploring how it can be involved in the potential deal, said the people, who asked not to be identified talking about the matter. Discussions began before the controversial Aug. 7 tweet by Musk, who is Tesla’s co-founder and chief executive officer, saying he was weighing a plan to take the company private.
The PIF sees its investment in Tesla as a strategic way for the world’s biggest crude producer to hedge against oil, the people said. The Saudi fund hasn’t made any firm decisions on whether to increase its stake, or by how much, but talks are ongoing, they said. It wasn’t immediately clear how much the fund would invest in Tesla.
Saudi Arabia’s sovereign wealth fund is in talks that could see it becoming a significant investor in Tesla as part of Elon Musk’s plan to take the electric car maker private, according to people with knowledge of the fund’s plans.
The Public Investment Fund, which has built up a stake just shy of 5 percent in Tesla in recent months, is exploring how it can be involved in the potential deal, said the people, who asked not to be identified talking about the matter. Discussions began before the controversial Aug. 7 tweet by Musk, who is Tesla’s co-founder and chief executive officer, saying he was weighing a plan to take the company private.
The PIF sees its investment in Tesla as a strategic way for the world’s biggest crude producer to hedge against oil, the people said. The Saudi fund hasn’t made any firm decisions on whether to increase its stake, or by how much, but talks are ongoing, they said. It wasn’t immediately clear how much the fund would invest in Tesla.
Dubai's Emirates NBD says closely monitoring Turkey situation | Reuters
Dubai's Emirates NBD says closely monitoring Turkey situation | Reuters:
Emirates NBD, Dubai’s largest bank, said on Sunday it was closely monitoring the situation in Turkey.
The bank declined to comment on whether it was renegotiating the terms of its acquisition of Turkey’s Denizbank from Russia’s state-owned Sberbank, a $3.2 billion deal announced in May.
In a research note, Arqaam Capital said the 37 percent plunge in the Turkish lira since the announcement of the deal provided Emirates NBD “an opportunity to reduce the acquisition price by as much as 27 percent.”
Emirates NBD, Dubai’s largest bank, said on Sunday it was closely monitoring the situation in Turkey.
The bank declined to comment on whether it was renegotiating the terms of its acquisition of Turkey’s Denizbank from Russia’s state-owned Sberbank, a $3.2 billion deal announced in May.
In a research note, Arqaam Capital said the 37 percent plunge in the Turkish lira since the announcement of the deal provided Emirates NBD “an opportunity to reduce the acquisition price by as much as 27 percent.”
Iran arrests 67 people for suspected financial crimes | Reuters
Iran arrests 67 people for suspected financial crimes | Reuters:
Iranian authorities have arrested 67 people in a drive against financial crime, the judiciary said on Sunday, as the country faces renewed U.S. sanctions and a public outcry against profiteering and corruption.
Special Islamic revolutionary courts were being set up to try suspects quickly after Supreme Leader Ayatollah Ali Khamenei called on Saturday for “swift and just” legal action to confront an “economic war” by foreign enemies, state television quoted a judiciary spokesman as saying.
The rial currency has lost about half of its value since April over worries about the sanctions, with heavy demand for dollars among ordinary Iranians trying to protect their savings.
Iranian authorities have arrested 67 people in a drive against financial crime, the judiciary said on Sunday, as the country faces renewed U.S. sanctions and a public outcry against profiteering and corruption.
Special Islamic revolutionary courts were being set up to try suspects quickly after Supreme Leader Ayatollah Ali Khamenei called on Saturday for “swift and just” legal action to confront an “economic war” by foreign enemies, state television quoted a judiciary spokesman as saying.
The rial currency has lost about half of its value since April over worries about the sanctions, with heavy demand for dollars among ordinary Iranians trying to protect their savings.
UPDATE 1-Aramco, Air Products, ACWA to form JV in Saudi Arabia | Reuters
UPDATE 1-Aramco, Air Products, ACWA to form JV in Saudi Arabia | Reuters:
Saudi Aramco, Air Products and ACWA Power signed on Sunday an agreement outlining terms for setting up a gasification/power joint venture in Saudi Arabia with assets bought from the state energy giant.
“The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for approximately $8 billion,” they said a statement.
According to the term sheet, U.S.-based Air Products will own at least 55 percent of the joint venture, to be set up in Jazan Economic City (JEC), with Saudi Aramco and ACWA Power owning the balance, the statement said.
Saudi Aramco, Air Products and ACWA Power signed on Sunday an agreement outlining terms for setting up a gasification/power joint venture in Saudi Arabia with assets bought from the state energy giant.
“The JV will purchase the gasification assets, power block and the associated utilities from Saudi Aramco for approximately $8 billion,” they said a statement.
According to the term sheet, U.S.-based Air Products will own at least 55 percent of the joint venture, to be set up in Jazan Economic City (JEC), with Saudi Aramco and ACWA Power owning the balance, the statement said.
MIDEAST STOCKS-Gulf markets hit by Turkey turmoil, banks roiled | Reuters
MIDEAST STOCKS-Gulf markets hit by Turkey turmoil, banks roiled | Reuters:
Gulf stocks fell on Sunday, pressured by general weakness across emerging markets as investors steered clear of assets perceived as risky due to a diplomatic and economic spat between the United States and Turkey.
The Turkish lira plunged last week after U.S. President Donald Trump doubled tariffs on Turkish steel and aluminium imports. On Friday, the lira fell 18 percent to a record low.
Other geopolitical factors, such as the reintroduction of U.S. sanctions on Tehran, as well as the diplomatic dispute between Saudi Arabia and Canada, added further pressure to the markets.
Gulf stocks fell on Sunday, pressured by general weakness across emerging markets as investors steered clear of assets perceived as risky due to a diplomatic and economic spat between the United States and Turkey.
The Turkish lira plunged last week after U.S. President Donald Trump doubled tariffs on Turkish steel and aluminium imports. On Friday, the lira fell 18 percent to a record low.
Other geopolitical factors, such as the reintroduction of U.S. sanctions on Tehran, as well as the diplomatic dispute between Saudi Arabia and Canada, added further pressure to the markets.
Trump takes deployment of sanctions to new level | Financial Times
Trump takes deployment of sanctions to new level | Financial Times:
The White House is unsettling markets and US allies as it makes increasing use of powerful sanctions, underscoring President Donald Trump’s willingness to act alone on foreign policy even at the expense of heightening global instability.
Russian and Turkish markets were hit hard this week as US sanctions exacerbated concerns about the fragility of emerging markets.
Washington’s dispute with Ankara over the detention of a US pastor contributed to the 28 per cent slump in the Turkish lira this month. The Russian rouble has fallen 6 per cent since the US announced sweeping sanctions on Wednesday over the near-fatal poisoning in the UK of a former Russian spy.
The White House is unsettling markets and US allies as it makes increasing use of powerful sanctions, underscoring President Donald Trump’s willingness to act alone on foreign policy even at the expense of heightening global instability.
Russian and Turkish markets were hit hard this week as US sanctions exacerbated concerns about the fragility of emerging markets.
Washington’s dispute with Ankara over the detention of a US pastor contributed to the 28 per cent slump in the Turkish lira this month. The Russian rouble has fallen 6 per cent since the US announced sweeping sanctions on Wednesday over the near-fatal poisoning in the UK of a former Russian spy.
Iran Oil Sanctions Will Hurt More Than You Think - Bloomberg
Iran Oil Sanctions Will Hurt More Than You Think - Bloomberg:
The first U.S. sanctions have been reimposed on Iran with little sign of either side softening its position. Curbs on oil exports will follow in early November and the effect will be bigger and swifter than last time around. Oil forecasters don't seem to have grasped that yet.
There’s no doubt that President Donald Trump will be tougher on Iran than Barack Obama was, with no gradual ratcheting-up of pressure. Importers are expected to have tapered off oil purchases by Nov. 5, when the curbs come into effect.
Any waivers granted to buyers will still require much bigger cuts than they did last time, when a 20 percent reduction every six months was enough to win exemption from retaliation. And this time, Iran's exports of condensates, a light form of crude extracted from gas fields, will be covered by the sanctions.
The first U.S. sanctions have been reimposed on Iran with little sign of either side softening its position. Curbs on oil exports will follow in early November and the effect will be bigger and swifter than last time around. Oil forecasters don't seem to have grasped that yet.
There’s no doubt that President Donald Trump will be tougher on Iran than Barack Obama was, with no gradual ratcheting-up of pressure. Importers are expected to have tapered off oil purchases by Nov. 5, when the curbs come into effect.
Any waivers granted to buyers will still require much bigger cuts than they did last time, when a 20 percent reduction every six months was enough to win exemption from retaliation. And this time, Iran's exports of condensates, a light form of crude extracted from gas fields, will be covered by the sanctions.
Biggest U.A.E. Lender Seen Extending Rally as Index Review Nears - Bloomberg
Biggest U.A.E. Lender Seen Extending Rally as Index Review Nears - Bloomberg:
First Abu Dhabi Bank PJSC’s stock has gained in six of the past seven weeks, bringing the rally for the year to 37 percent. A beckoning index-weighting upgrade means more joy could be in store for shareholders.
The biggest lender in the United Arab Emirates is expected to have its weighting in the MSCI Emerging Markets Index doubled to almost 0.2 percent in November, when the index compiler announces the results of a review. The stock now meets liquidity requirements that fulfill an increase in representation, opening room for it to attract as much as $455 million in inflows, according to estimates by EFG-Hermes Holding and Arqaam Capital Ltd.
First Abu Dhabi Bank PJSC’s stock has gained in six of the past seven weeks, bringing the rally for the year to 37 percent. A beckoning index-weighting upgrade means more joy could be in store for shareholders.
The biggest lender in the United Arab Emirates is expected to have its weighting in the MSCI Emerging Markets Index doubled to almost 0.2 percent in November, when the index compiler announces the results of a review. The stock now meets liquidity requirements that fulfill an increase in representation, opening room for it to attract as much as $455 million in inflows, according to estimates by EFG-Hermes Holding and Arqaam Capital Ltd.
U.S.-Iran Sanctions Give China Lead in World's Top Gas Field - Bloomberg
U.S.-Iran Sanctions Give China Lead in World's Top Gas Field - Bloomberg:
China National Petroleum Corp. is expected to take the lead on a $5 billion project to develop Iran’s share of the world’s biggest gas deposit, taking over from France’s Total SA, which halted operations after U.S. President Donald Trump reimposed sanctions on the Islamic Republic.
State-owned CNPC, which joined a consortium with Total and Iran’s Petropars Ltd. in 2016 to develop Phase 11 of the South Pars Gas field, is set to increase its stake in the project from the current 30 percent. Total had originally agreed to take a 50.1 percent interest.
CNPC will become the lead operating partner, the state-run Islamic Republic News Agency reported, citing Mohammad Mostafavi, National Iranian Oil Co.’s investments and business head. Terms of the contract haven’t yet officially changed, according to Shana, the Oil Ministry’s news service. Calls to CNPC went unanswered on Sunday. Total declined to comment.
China National Petroleum Corp. is expected to take the lead on a $5 billion project to develop Iran’s share of the world’s biggest gas deposit, taking over from France’s Total SA, which halted operations after U.S. President Donald Trump reimposed sanctions on the Islamic Republic.
State-owned CNPC, which joined a consortium with Total and Iran’s Petropars Ltd. in 2016 to develop Phase 11 of the South Pars Gas field, is set to increase its stake in the project from the current 30 percent. Total had originally agreed to take a 50.1 percent interest.
CNPC will become the lead operating partner, the state-run Islamic Republic News Agency reported, citing Mohammad Mostafavi, National Iranian Oil Co.’s investments and business head. Terms of the contract haven’t yet officially changed, according to Shana, the Oil Ministry’s news service. Calls to CNPC went unanswered on Sunday. Total declined to comment.
Dubai hotel room rates hit 14-year low | ZAWYA MENA Edition
Dubai hotel room rates hit 14-year low | ZAWYA MENA Edition:
The average room rates of Dubai hotels dropped due to an increase in supply, hitting a 14-year low during the month of July.
According to STR data, the average daily rate fell 9.7 per cent to Dh423.63 while demand expanded by 7.2 per cent and supply grew by 6.3 per cent. Occupancy levels rose 0.9 per cent to 66 per cent.
"Although growth in demand was significant, performance levels remained low due to pressure from increased supply. The average daily rate level would be the lowest for any month in the market since August 2004," STR said.
The average room rates of Dubai hotels dropped due to an increase in supply, hitting a 14-year low during the month of July.
According to STR data, the average daily rate fell 9.7 per cent to Dh423.63 while demand expanded by 7.2 per cent and supply grew by 6.3 per cent. Occupancy levels rose 0.9 per cent to 66 per cent.
"Although growth in demand was significant, performance levels remained low due to pressure from increased supply. The average daily rate level would be the lowest for any month in the market since August 2004," STR said.
Saudi stock index technicals deteriorating; falls below 100-day average | ZAWYA MENA Edition
Saudi stock index technicals deteriorating; falls below 100-day average | ZAWYA MENA Edition:
** Saudi Arabian stock index drops 1.2 pct to 8,080 points in early trade; short-term technicals are deteriorating
** Index falls below 100-day average, now at 8,149 points, for first time this year
** Breaks below uptrend line from last November
** Drops below technical support on mid-June low of 8,154 points; two straight closes below that level would trigger double top formed by June and July highs, and pointing down to 7,847 points
** Saudi Arabian stock index drops 1.2 pct to 8,080 points in early trade; short-term technicals are deteriorating
** Index falls below 100-day average, now at 8,149 points, for first time this year
** Breaks below uptrend line from last November
** Drops below technical support on mid-June low of 8,154 points; two straight closes below that level would trigger double top formed by June and July highs, and pointing down to 7,847 points
UPDATE 1-Qatar's QIA raises stake in Credit Suisse to 5.21 pct - QNA | Reuters
UPDATE 1-Qatar's QIA raises stake in Credit Suisse to 5.21 pct - QNA | Reuters:
Qatar’s sovereign wealth fund, the Qatar Investment Authority, has increased its stake in Swiss bank Credit Suisse to 5.21 percent, the Qatar state news agency QNA said on Saturday.
“Qatar Investment Authority (QIA) has become the largest investor in Switzerland’s Credit Suisse, after increasing its stake to 5.21 percent,” the agency said, without providing further details.
QIA’s stake in Credit Suisse Group had fallen below 5 percent last August, but an SEC filing on Friday showed it had reported a 5.07 percent passive stake as of Aug. 6, 2018.
Qatar’s sovereign wealth fund, the Qatar Investment Authority, has increased its stake in Swiss bank Credit Suisse to 5.21 percent, the Qatar state news agency QNA said on Saturday.
“Qatar Investment Authority (QIA) has become the largest investor in Switzerland’s Credit Suisse, after increasing its stake to 5.21 percent,” the agency said, without providing further details.
QIA’s stake in Credit Suisse Group had fallen below 5 percent last August, but an SEC filing on Friday showed it had reported a 5.07 percent passive stake as of Aug. 6, 2018.
Exclusive: Saudi Arabia's PIF has shown no interest in bankrolling Tesla buyout | Reuters
Exclusive: Saudi Arabia's PIF has shown no interest in bankrolling Tesla buyout | Reuters:
Saudi Arabia’s Public Investment Fund (PIF) has shown no interest so far in financing Tesla Inc (TSLA.O) CEO Elon Musk’s proposed $72 billion deal to take the U.S. electric car maker private, despite acquiring a minority stake in the company this year, two sources familiar with the matter said.
The 47-year-old investor and engineer stunned financial markets on Tuesday when he said on Twitter that he was considering a take-private deal for Tesla, an auto manufacturing pioneer that developed the world’s first luxury all-electric sedan car. He also said he had secured funding for the proposal, without providing details.
Investors and analysts viewed PIF as a natural financing partner. Beyond amassing a stake of just below 5 percent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group Corp’s (9984.T) Vision Fund over five years.
Saudi Arabia’s Public Investment Fund (PIF) has shown no interest so far in financing Tesla Inc (TSLA.O) CEO Elon Musk’s proposed $72 billion deal to take the U.S. electric car maker private, despite acquiring a minority stake in the company this year, two sources familiar with the matter said.
The 47-year-old investor and engineer stunned financial markets on Tuesday when he said on Twitter that he was considering a take-private deal for Tesla, an auto manufacturing pioneer that developed the world’s first luxury all-electric sedan car. He also said he had secured funding for the proposal, without providing details.
Investors and analysts viewed PIF as a natural financing partner. Beyond amassing a stake of just below 5 percent in Tesla, the sovereign wealth fund has poured tens of billions of dollars into technology investments, including $45 billion in SoftBank Group Corp’s (9984.T) Vision Fund over five years.
MIDEAST STOCKS-Gulf stocks drop in early trade amid emerging markets weakness | Reuters
MIDEAST STOCKS-Gulf stocks drop in early trade amid emerging markets weakness | Reuters:
Gulf stocks opened in negative territory on Sunday reflecting general weakness across emerging markets mainly caused by a diplomatic and economic spat between the United States and Turkey.
The Turkish lira plunged last week after U.S. President Donald Trump doubled tariffs on Turkish steel and aluminium imports. On Friday, the lira fell 18 percent to a record low.
Other geopolitical factors, such as the reintroduction of sanctions on Tehran, as well as the diplomatic dispute between Saudi Arabia and Canada, contributed to the risk-off sentiment.
Gulf stocks opened in negative territory on Sunday reflecting general weakness across emerging markets mainly caused by a diplomatic and economic spat between the United States and Turkey.
The Turkish lira plunged last week after U.S. President Donald Trump doubled tariffs on Turkish steel and aluminium imports. On Friday, the lira fell 18 percent to a record low.
Other geopolitical factors, such as the reintroduction of sanctions on Tehran, as well as the diplomatic dispute between Saudi Arabia and Canada, contributed to the risk-off sentiment.