Three-way merger of UAE banks 'credit positive' for industry, says Moody’s - The National:
The potential merger of Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank would be credit positive for the country’s banking industry, according to Moody’s Investors Service.
“The merger would increase banks’ pricing power, reduce pressure on their funding costs and increase their ability to meet sizeable investments,” the rating agency said in a report on Monday.
It would also contribute to consolidation of the “overbanked” sector in the UAE.
Tuesday, 11 September 2018
Emaar denies plans to offer 10-year visa to UAE investors | GulfNews.com
Emaar denies plans to offer 10-year visa to UAE investors | GulfNews.com:
UAE-based property developer Emaar has denied reports that it is planning to grant a multi-year residence visa to its investors.
An Arabic newspaper reported on Tuesday that according to a source, the company intends to provide a 10-year residence visa to those who invest in some of its real estate developments.
According to the report, those who acquire a property in certain developments, such as Dubai Creek, Arabian Ranches 2 and Emaar Beachfront, among others, can benefit from a long-term visa.
UAE-based property developer Emaar has denied reports that it is planning to grant a multi-year residence visa to its investors.
An Arabic newspaper reported on Tuesday that according to a source, the company intends to provide a 10-year residence visa to those who invest in some of its real estate developments.
According to the report, those who acquire a property in certain developments, such as Dubai Creek, Arabian Ranches 2 and Emaar Beachfront, among others, can benefit from a long-term visa.
Crescent raises its stake in Dana to over 20% | GulfNews.com
Crescent raises its stake in Dana to over 20% | GulfNews.com:
Crescent Petroleum has been granted permission to raise its stake in Dana Gas to more than 20 per cent and retain its position as the largest founding shareholder.
The Sharjah-based energy company said in a statement Tuesday that it has permission to acquire additional shares in Dana Gas as an insider.
“The purchase underscores Crescent Petroleum’s confidence in Dana Gas and in the continued growth of the company’s business. The share purchase follows the dilution of Crescent’s holding after the conversion of Dana convertible Sukuk shares,” the statement said.
Crescent Petroleum has been granted permission to raise its stake in Dana Gas to more than 20 per cent and retain its position as the largest founding shareholder.
The Sharjah-based energy company said in a statement Tuesday that it has permission to acquire additional shares in Dana Gas as an insider.
“The purchase underscores Crescent Petroleum’s confidence in Dana Gas and in the continued growth of the company’s business. The share purchase follows the dilution of Crescent’s holding after the conversion of Dana convertible Sukuk shares,” the statement said.
QSE index surpasses 9,900 on weakened selling pressure
QSE index surpasses 9,900 on weakened selling pressure:
The Qatar Stock Exchange on Tuesday saw its key index surpass 9,900 levels mainly on the back of weakened selling pressure from domestic funds and local retail investors.
Telecom, banking and transport counters witnessed higher than average demand, leading to a 0.42% jump in 20-stock Qatar Index to 9,931.07 points.
Masraf Al Rayan and Doha Bank sponsored exchange traded funds QATR and QETF saw 0.21% and 0.66% gains respectively.
The Qatar Stock Exchange on Tuesday saw its key index surpass 9,900 levels mainly on the back of weakened selling pressure from domestic funds and local retail investors.
Telecom, banking and transport counters witnessed higher than average demand, leading to a 0.42% jump in 20-stock Qatar Index to 9,931.07 points.
Masraf Al Rayan and Doha Bank sponsored exchange traded funds QATR and QETF saw 0.21% and 0.66% gains respectively.
Iran Resorts to Floating Storage for Its Oil as Buyers Retreat - Bloomberg
Iran Resorts to Floating Storage for Its Oil as Buyers Retreat - Bloomberg:
Iran is starting to store oil on its fleet of supertankers again as impending U.S. sanctions force the Persian Gulf country to revive a strategy it deployed under previous curbs.
The build-up of crude in floating storage offshore Iran signals the effectiveness of the new sanctions imposed by U.S. President Donald Trump on the Persian Gulf country’s oil. The measures are due to start in early November, but buyers including France, South Korea and others have already started to cut back sharply.
“We can expect floating storage to increase under the growing impact of U.S. sanctions in the coming months,” Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA, said from London.
Iran is starting to store oil on its fleet of supertankers again as impending U.S. sanctions force the Persian Gulf country to revive a strategy it deployed under previous curbs.
The build-up of crude in floating storage offshore Iran signals the effectiveness of the new sanctions imposed by U.S. President Donald Trump on the Persian Gulf country’s oil. The measures are due to start in early November, but buyers including France, South Korea and others have already started to cut back sharply.
“We can expect floating storage to increase under the growing impact of U.S. sanctions in the coming months,” Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA, said from London.
More foreign money expected to flow into GCC funds- survey | ZAWYA MENA Edition
More foreign money expected to flow into GCC funds- survey | ZAWYA MENA Edition:
Three quarters (75 percent) of regional investment professionals expect more money from foreign investors to pour into locally-domiciled funds over the next five years, according to a new study.
United States-based financial services firm State Street’s 2018 Middle East and North Africa Regional Survey found that 14 percent of professionals felt that foreign investment into funds domiciled in Gulf Cooperation Council (GCC) countries would increase by 20 percent or more, while 24 percent felt it would increase by 10-20 percent and 37 percent expected an increase of under 10 percent. Only 7 percent of respondents thought foreign allocations into GCC funds would decline.
The survey covered 306 investment professionals representing sovereign funds, central banks, asset managers and pension funds from around the region, State Street said.
Three quarters (75 percent) of regional investment professionals expect more money from foreign investors to pour into locally-domiciled funds over the next five years, according to a new study.
United States-based financial services firm State Street’s 2018 Middle East and North Africa Regional Survey found that 14 percent of professionals felt that foreign investment into funds domiciled in Gulf Cooperation Council (GCC) countries would increase by 20 percent or more, while 24 percent felt it would increase by 10-20 percent and 37 percent expected an increase of under 10 percent. Only 7 percent of respondents thought foreign allocations into GCC funds would decline.
The survey covered 306 investment professionals representing sovereign funds, central banks, asset managers and pension funds from around the region, State Street said.
Saudi Arabia expected to announce dollar sukuk sale soon – sources | Reuters
Saudi Arabia expected to announce dollar sukuk sale soon – sources | Reuters:
Saudi Arabia is expected to announce soon a potential new U.S. dollar-denominated sukuk deal, sources familiar with the matter said.
The size of the planned sukuk, or Islamic bond, is to be determined and depends on market appetite, but it is unlikely to match Saudi Arabia’s previous jumbo debt transactions, said the sources.
Saudi Arabia, whose debt management office did not immediately respond to a request for comment on the transaction, has established itself as a top regional debt issuer over the past two years after its first move into the international markets in late 2016, when it sold $17.5 billion in conventional notes – the largest bond ever issued across emerging markets.
Saudi Arabia is expected to announce soon a potential new U.S. dollar-denominated sukuk deal, sources familiar with the matter said.
The size of the planned sukuk, or Islamic bond, is to be determined and depends on market appetite, but it is unlikely to match Saudi Arabia’s previous jumbo debt transactions, said the sources.
Saudi Arabia, whose debt management office did not immediately respond to a request for comment on the transaction, has established itself as a top regional debt issuer over the past two years after its first move into the international markets in late 2016, when it sold $17.5 billion in conventional notes – the largest bond ever issued across emerging markets.
Traders bet Iran sanctions will leave market short of crude: Kemp | Reuters
Traders bet Iran sanctions will leave market short of crude: Kemp | Reuters:
Oil traders have become much more concerned in recent weeks about the potential impact of U.S. sanctions on Iran and the effect on the availability of crude at the end of the year.
Brent futures for November have moved to a premium of 45 cents a barrel over the December contract, in a sharp reversal from early last month, when the earlier contract traded at a 20 cent discount.
The gyrations in the futures curve are linked closely to traders’ perceptions of the availability of seaborne crude once sanctions are re-imposed from early November (tmsnrt.rs/2oZ5MoB).
Oil traders have become much more concerned in recent weeks about the potential impact of U.S. sanctions on Iran and the effect on the availability of crude at the end of the year.
Brent futures for November have moved to a premium of 45 cents a barrel over the December contract, in a sharp reversal from early last month, when the earlier contract traded at a 20 cent discount.
The gyrations in the futures curve are linked closely to traders’ perceptions of the availability of seaborne crude once sanctions are re-imposed from early November (tmsnrt.rs/2oZ5MoB).
Oil up over two percent on concerns over Iran, slower U.S. output growth | Reuters
Oil up over two percent on concerns over Iran, slower U.S. output growth | Reuters:
Oil prices rose more than 2 percent on Tuesday as U.S. sanctions squeezed Iranian crude exports and after U.S. crude oil production in 2019 was forecast to grow at a slower rate than previously expected, prompting supply concerns.
Since spring when the Trump Administration said it would impose sanctions on Iran, crude traders have priced in a risk premium reflecting the supply shortages that may occur when exports from the third-largest OPEC member are cut. As the Nov. 4 date for imposing sanctions draws nearer, the premium has increased.
Brent crude futures rose $1.69, or 2.2 percent, to settle at $79.06 a barrel. U.S. West Texas Intermediate (WTI) crude settled $1.71, or 2.5 percent, higher at $69.25 a barrel.
Oil prices rose more than 2 percent on Tuesday as U.S. sanctions squeezed Iranian crude exports and after U.S. crude oil production in 2019 was forecast to grow at a slower rate than previously expected, prompting supply concerns.
Since spring when the Trump Administration said it would impose sanctions on Iran, crude traders have priced in a risk premium reflecting the supply shortages that may occur when exports from the third-largest OPEC member are cut. As the Nov. 4 date for imposing sanctions draws nearer, the premium has increased.
Brent crude futures rose $1.69, or 2.2 percent, to settle at $79.06 a barrel. U.S. West Texas Intermediate (WTI) crude settled $1.71, or 2.5 percent, higher at $69.25 a barrel.
Saudi Arabia's sovereign wealth fund raises $11 bln loan with 15 banks -Maaal | Reuters
Saudi Arabia's sovereign wealth fund raises $11 bln loan with 15 banks -Maaal | Reuters:
Saudi Arabia’s sovereign wealth has raised an $11 billion loan from a total of 15 banks, the Maaal financial news website reported on Tuesday, citing unnamed sources.
A source with direct knowledge of the matter told Reuters last month that the Public Investment Fund (PIF) will pay a margin of 75 basis points over the London Interbank Offered Rate on the loan, but the PIF has yet to announce the deal or name the participating banks.
The deal is the first commercial loan for the PIF, which has been tasked with helping to deliver the government’s Vision 2030 reforms. The ambitious economic reform programme announced in 2016 aims to free the kingdom from its dependence on oil exports.
Saudi Arabia’s sovereign wealth has raised an $11 billion loan from a total of 15 banks, the Maaal financial news website reported on Tuesday, citing unnamed sources.
A source with direct knowledge of the matter told Reuters last month that the Public Investment Fund (PIF) will pay a margin of 75 basis points over the London Interbank Offered Rate on the loan, but the PIF has yet to announce the deal or name the participating banks.
The deal is the first commercial loan for the PIF, which has been tasked with helping to deliver the government’s Vision 2030 reforms. The ambitious economic reform programme announced in 2016 aims to free the kingdom from its dependence on oil exports.
MIDEAST STOCKS-Saudi stocks slump amid emerging markets sell-off | Reuters
MIDEAST STOCKS-Saudi stocks slump amid emerging markets sell-off | Reuters:
Saudi Arabia’s stock market dipped on Tuesday as lingering trade disputes weighed on emerging markets.
MSCI’s emerging-market index sank 0.6 percent to a 15-month low amid investor concern over the potential fallout from any escalation in the trade dispute between the United States and China.
The Saudi index swung between gains and losses before finishing the day 0.2 percent down. Banks were the market laggards, with Arab National Bank dropping 2.4 percent, Samba Financial Group down 0.9 percent and National Commercial Bank declining by 1.2 percent.
Saudi Arabia’s stock market dipped on Tuesday as lingering trade disputes weighed on emerging markets.
MSCI’s emerging-market index sank 0.6 percent to a 15-month low amid investor concern over the potential fallout from any escalation in the trade dispute between the United States and China.
The Saudi index swung between gains and losses before finishing the day 0.2 percent down. Banks were the market laggards, with Arab National Bank dropping 2.4 percent, Samba Financial Group down 0.9 percent and National Commercial Bank declining by 1.2 percent.
Kuwait Investment Authority chief navigates politics and trendy tech | Financial Times
Kuwait Investment Authority chief navigates politics and trendy tech | Financial Times:
It has now been well over a year since Farouk Bastaki took over as head of the Kuwait Investment Authority, the oldest and one of the five largest sovereign wealth funds in the world.
The 65-year-old KIA is also among the most professional of such funds. For example, while many other Gulf funds exist at the whim of local rulers, the KIA is entitled by law to at least 10 per cent of state revenues a year. Moreover, whereas many state-controlled investment funds are headed by political appointees, Mr Bastaki is the first KIA managing director to have been promoted from within the KIA itself. His elevation came at least partly at the behest of his respected predecessor Bader al-Saad. Mr al-Saad is widely credited with making the KIA a more meritocratic organisation, in the face of resistance from influential vested interests.
Being the managing director of a sovereign wealth fund in the Gulf is no easy task, however.
It has now been well over a year since Farouk Bastaki took over as head of the Kuwait Investment Authority, the oldest and one of the five largest sovereign wealth funds in the world.
The 65-year-old KIA is also among the most professional of such funds. For example, while many other Gulf funds exist at the whim of local rulers, the KIA is entitled by law to at least 10 per cent of state revenues a year. Moreover, whereas many state-controlled investment funds are headed by political appointees, Mr Bastaki is the first KIA managing director to have been promoted from within the KIA itself. His elevation came at least partly at the behest of his respected predecessor Bader al-Saad. Mr al-Saad is widely credited with making the KIA a more meritocratic organisation, in the face of resistance from influential vested interests.
Being the managing director of a sovereign wealth fund in the Gulf is no easy task, however.
‘The banking sector in Kuwait is in a sweet spot’ | Financial Times
‘The banking sector in Kuwait is in a sweet spot’ | Financial Times:
Theirs is one of the hottest cities on the planet, but Kuwait’s banks had a long wait for their day in the sun.
From 2011 to 2014, a succession of governments meant Kuwait’s public spending stagnated at a time when other Gulf countries were turbo-charging their economies — and their banks — with big infrastructure projects.
Now Kuwait’s banking industry is enjoying a renaissance, as long-awaited political stability has produced a flurry of public sector projects to be financed by banks and built by their customers.
Theirs is one of the hottest cities on the planet, but Kuwait’s banks had a long wait for their day in the sun.
From 2011 to 2014, a succession of governments meant Kuwait’s public spending stagnated at a time when other Gulf countries were turbo-charging their economies — and their banks — with big infrastructure projects.
Now Kuwait’s banking industry is enjoying a renaissance, as long-awaited political stability has produced a flurry of public sector projects to be financed by banks and built by their customers.
Private equity: inside the fall of Abraaj | Financial Times
Private equity: inside the fall of Abraaj | Financial Times:
It was a deal that should have provided Abraaj Group with one of its biggest ever paydays. Instead the failure to sell a majority stake in Pakistan’s K-Electric to a Chinese group has all but crippled the Dubai-based private equity group.
Had the $1.8bn sale gone through at the end of 2017, its parent, Abraaj Holdings, would have received almost $450m. It didn’t. And within six months, the holding company had filed for provisional liquidation — a Cayman Islands court-driven restructuring process — to protect itself against a winding up order brought by two creditors. It had debts of over $1.1bn, and faced allegations of misusing investor money held in Abraaj’s $1bn healthcare fund to support the business of founder Arif Naqvi.
Abraaj claims that it had followed procedures, but the loss of confidence sent the firm into a death spiral.
It was a deal that should have provided Abraaj Group with one of its biggest ever paydays. Instead the failure to sell a majority stake in Pakistan’s K-Electric to a Chinese group has all but crippled the Dubai-based private equity group.
Had the $1.8bn sale gone through at the end of 2017, its parent, Abraaj Holdings, would have received almost $450m. It didn’t. And within six months, the holding company had filed for provisional liquidation — a Cayman Islands court-driven restructuring process — to protect itself against a winding up order brought by two creditors. It had debts of over $1.1bn, and faced allegations of misusing investor money held in Abraaj’s $1bn healthcare fund to support the business of founder Arif Naqvi.
Abraaj claims that it had followed procedures, but the loss of confidence sent the firm into a death spiral.
Emaar to Offer Buyers 10-Year Visas in Some New Projects: Bayan - Bloomberg
Emaar to Offer Buyers 10-Year Visas in Some New Projects: Bayan - Bloomberg:
Dubai’s Emaar Properties PJSC, the developer of the world’s tallest skyscraper, will offer 10-year investor visas to buyers in six residential projects under development, Al Bayan newspaper reported, citing people familiar with the matter.
The visa incentive, offered to buyers and their families, is part of a stimulus package announced by the United Arab Emirates in June to attract more investors, the people said, according to the government-backed newspaper.
Projects in the plan include those in Dubai Creek Harbour and Downtown Dubai. Emaar will also pay half of the 4 percent property registration fee and will offer a three-year payment plan that starts after handover, Al Bayan said.
Dubai’s Emaar Properties PJSC, the developer of the world’s tallest skyscraper, will offer 10-year investor visas to buyers in six residential projects under development, Al Bayan newspaper reported, citing people familiar with the matter.
The visa incentive, offered to buyers and their families, is part of a stimulus package announced by the United Arab Emirates in June to attract more investors, the people said, according to the government-backed newspaper.
Projects in the plan include those in Dubai Creek Harbour and Downtown Dubai. Emaar will also pay half of the 4 percent property registration fee and will offer a three-year payment plan that starts after handover, Al Bayan said.
Saudi Group Seeks to Stop Banks Claiming Assets After Default - Bloomberg
Saudi Group Seeks to Stop Banks Claiming Assets After Default - Bloomberg:
Ahmad Hamad Algosaibi & Brothers Co. will seek to prevent Arab National Bank and another lender from claiming assets of the Saudi Arabian company to settle outstanding loans, according to its acting chief executive officer.
Algosaibi will oppose the move because the assets are meant to be frozen by a royal decree to ensure all creditors are treated fairly, Simon Charlton said in an interview in Dubai, without naming the second bank. The dispute over the portfolio of publicly-traded Saudi equities and accumulated dividends is now before a Saudi court appointed to oversee claims against the company, he said.
Algosaibi and billionaire Maan al-Sanea’s Saad Group, two Saudi family holding companies, defaulted on about $15 billion of loans in 2009 as the global economic crisis froze credit markets and asset prices slumped. The companies and banks are now in talks over how to resolve what was the Middle East’s largest-ever default.
Ahmad Hamad Algosaibi & Brothers Co. will seek to prevent Arab National Bank and another lender from claiming assets of the Saudi Arabian company to settle outstanding loans, according to its acting chief executive officer.
Algosaibi will oppose the move because the assets are meant to be frozen by a royal decree to ensure all creditors are treated fairly, Simon Charlton said in an interview in Dubai, without naming the second bank. The dispute over the portfolio of publicly-traded Saudi equities and accumulated dividends is now before a Saudi court appointed to oversee claims against the company, he said.
Algosaibi and billionaire Maan al-Sanea’s Saad Group, two Saudi family holding companies, defaulted on about $15 billion of loans in 2009 as the global economic crisis froze credit markets and asset prices slumped. The companies and banks are now in talks over how to resolve what was the Middle East’s largest-ever default.
Oil prices climb ahead of U.S. sanctions on Iran | Reuters
Oil prices climb ahead of U.S. sanctions on Iran | Reuters:
Oil prices rose on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.
Benchmark Brent crude oil LCOc1 was up 50 cents at $77.87 a barrel by 0750 GMT. U.S. light crude CLc1 was 15 cents higher at $67.69.
“The path of least resistance for oil prices, given the supply fundamentals, remains up,” Harry Tchilinguirian, oil strategist at BNP Paribas, told Reuters Global Oil Forum.
Oil prices rose on Tuesday as U.S. sanctions squeezed Iranian crude exports, tightening global supply despite efforts by Washington to get other producers to increase output.
Benchmark Brent crude oil LCOc1 was up 50 cents at $77.87 a barrel by 0750 GMT. U.S. light crude CLc1 was 15 cents higher at $67.69.
“The path of least resistance for oil prices, given the supply fundamentals, remains up,” Harry Tchilinguirian, oil strategist at BNP Paribas, told Reuters Global Oil Forum.
MIDEAST STOCKS-Gulf stocks hampered by Sino-U.S. trade worries | Reuters
MIDEAST STOCKS-Gulf stocks hampered by Sino-U.S. trade worries | Reuters:
Gulf stocks slipped in early trade on Tuesday as concerns about a further escalation in the trade war between the United States and China weighed on investors.
The Saudi index was down a fractional 0.02 percent in early trade. Shares in Saudi Basic Industries Corp (SABIC) edged up 0.3 percent after it signed a memorandum of understanding (MOU) with China’s Fujian provincial government to build a petrochemical complex.
MedGulf jumped the 10 percent daily limit in early trade after the company’s extraordinary general meeting approved a doubling of MedGulf’s capital to 800 million riyals ($213 million) via a rights issue for 40 million new shares.
Gulf stocks slipped in early trade on Tuesday as concerns about a further escalation in the trade war between the United States and China weighed on investors.
The Saudi index was down a fractional 0.02 percent in early trade. Shares in Saudi Basic Industries Corp (SABIC) edged up 0.3 percent after it signed a memorandum of understanding (MOU) with China’s Fujian provincial government to build a petrochemical complex.
MedGulf jumped the 10 percent daily limit in early trade after the company’s extraordinary general meeting approved a doubling of MedGulf’s capital to 800 million riyals ($213 million) via a rights issue for 40 million new shares.
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