Sharjah lenders say they are not engaged in talks for a three-way merger - The National:
Abu Dhabi-listed United Arab Bank and InvestBank are not engaged in talks with Bank of Sharjah for a three-way merger that would create a lender with Dh66.2bn in assets in the northern emirate.
The banks denied media reports which suggested they are at an initial stage of engagement to combine their balance sheet with BoS, a deal driven by the government of Sharjah, which owns a stake in the Sharjah-headquartered lender. The report citing un-named sources said that JPMorgan is advising BoS on the potential deal.
The reports in the media “related to the commencement of negotiations regarding a potential merger...UAB hereby denies the news and confirms its invalidity,” the lender said in a regulatory filing to Abu Dhabi Securities Exchange.
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Sunday 30 September 2018
Qatari investments in US exceed $45bn: Minister - The Peninsula Qatar
Qatari investments in US exceed $45bn: Minister - The Peninsula Qatar:
Qatari investments in the US have exceeded $45bn (about QR164bn), the equivalent to 23 percent of Qatar’s GDP, the Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim Al Thani noted yesterday in New York City.
The Minister also noted that Qatar Airways alone provided a $92bn boost to the US economy through the purchase of 332 American aircraft a deal that supports more than 527,000 jobs.
Qatar-US bilateral relations are historic and very strong. The trade exchange between the two countries has touched new highs. The US has become one of Qatar’s most valued and largest global partners with the combined value of $24bn (QR87.39bn) worth of goods traded over the last five years while 84 percent of the trade balance is in favour of the US.
Qatari investments in the US have exceeded $45bn (about QR164bn), the equivalent to 23 percent of Qatar’s GDP, the Minister of Economy and Commerce H E Sheikh Ahmed bin Jassim Al Thani noted yesterday in New York City.
The Minister also noted that Qatar Airways alone provided a $92bn boost to the US economy through the purchase of 332 American aircraft a deal that supports more than 527,000 jobs.
Qatar-US bilateral relations are historic and very strong. The trade exchange between the two countries has touched new highs. The US has become one of Qatar’s most valued and largest global partners with the combined value of $24bn (QR87.39bn) worth of goods traded over the last five years while 84 percent of the trade balance is in favour of the US.
QSE opens week on stronger note on buying interests; index crosses 9,800
QSE opens week on stronger note on buying interests; index crosses 9,800:
The Qatar Stock Exchange on Sunday opened the week on a stronger note to cross the 9,800 levels, mainly on the back of buying interests in industrials, transport, consumer goods and telecom.
The 20-stock Qatar Index gained for the third consecutive session by 0.3% to 9,813.32 points as domestic institutions and non-Qatari individuals turned marginally bullish.
Doha Bank-sponsored exchange-traded fund QETF witnessed 0.56% gains, while Masraf Al Rayan-sponsored QATR declined 1.93%.
The Qatar Stock Exchange on Sunday opened the week on a stronger note to cross the 9,800 levels, mainly on the back of buying interests in industrials, transport, consumer goods and telecom.
The 20-stock Qatar Index gained for the third consecutive session by 0.3% to 9,813.32 points as domestic institutions and non-Qatari individuals turned marginally bullish.
Doha Bank-sponsored exchange-traded fund QETF witnessed 0.56% gains, while Masraf Al Rayan-sponsored QATR declined 1.93%.
Qatar shows ‘remarkable resilience’ post-blockade, says Doha Bank CEO
Qatar shows ‘remarkable resilience’ post-blockade, says Doha Bank CEO:
Qatar has demonstrated “remarkable resilience” since the June 2017 economic blockade by implementing a series of legislative reforms, including achievements in finance and infrastructure development, according to Doha Bank CEO Dr R Seetharaman.
At the Doha Bank forum titled ‘Qatar’s Resilience Post Blockade – A Year On’ held on Wednesday at the Four Seasons Hotel Doha, Seetharaman spoke on reforms implemented in the past year such as the new Investment Law, permanent residency, food security, Qatar sovereign bond issuance, and other key developments like the Metro Rail project.
“In recent times, Qatar’s long-term issuer ratings have been changed from negative to stable by Moody’s Investors Service, which affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.
Qatar has demonstrated “remarkable resilience” since the June 2017 economic blockade by implementing a series of legislative reforms, including achievements in finance and infrastructure development, according to Doha Bank CEO Dr R Seetharaman.
At the Doha Bank forum titled ‘Qatar’s Resilience Post Blockade – A Year On’ held on Wednesday at the Four Seasons Hotel Doha, Seetharaman spoke on reforms implemented in the past year such as the new Investment Law, permanent residency, food security, Qatar sovereign bond issuance, and other key developments like the Metro Rail project.
“In recent times, Qatar’s long-term issuer ratings have been changed from negative to stable by Moody’s Investors Service, which affirmed the long-term issuer and foreign-currency senior unsecured debt ratings at Aa3.
Qatar's Stock Gauge Posts Best Quarter Since 2014: Inside EM - Bloomberg
Qatar's Stock Gauge Posts Best Quarter Since 2014: Inside EM - Bloomberg:
Qatar’s main equity gauge advanced, adding to the index’s gains as it posts its biggest quarterly jump in four years. Benchmarks in Saudi Arabia, Dubai and Oman also rose.
The QE Index stocks will probably outperform peers in the last quarter as MSCI Inc.’s rebalancing in November attracts foreign cash, said Talal Samhouri, head of asset management at Doha-based Amwal LLC. Investors also will re-position in December for the dividend season in the first quarter, which should lead to further upside, he said.
“We like petrochemicals, local banks and new entrants into the EM indices,” Samhouri added.
Amwal is also bullish on fixed income markets in the Gulf.
Qatar’s main equity gauge advanced, adding to the index’s gains as it posts its biggest quarterly jump in four years. Benchmarks in Saudi Arabia, Dubai and Oman also rose.
The QE Index stocks will probably outperform peers in the last quarter as MSCI Inc.’s rebalancing in November attracts foreign cash, said Talal Samhouri, head of asset management at Doha-based Amwal LLC. Investors also will re-position in December for the dividend season in the first quarter, which should lead to further upside, he said.
“We like petrochemicals, local banks and new entrants into the EM indices,” Samhouri added.
Amwal is also bullish on fixed income markets in the Gulf.
UAE approves $49bln federal budget for next three years: Sheikh Mohammed bin Rashid | ZAWYA MENA Edition
UAE approves $49bln federal budget for next three years: Sheikh Mohammed bin Rashid | ZAWYA MENA Edition:
The United Arab Emirates cabinet on Sunday approved a big increase in the federal budget for next year, in a sign that the government aims to spend more actively to boost economic growth.
The 2019 federal budget of 60.3 billion dirhams ($16.4 billion) is 17.3 percent higher than the 51.4 billion dirhams approved for 2018, and is the UAE's largest ever, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
The federal budget accounts for only a small fraction of consolidated state spending in the UAE; individual emirates such as Abu Dhabi and Dubai also have their own budgets.
The United Arab Emirates cabinet on Sunday approved a big increase in the federal budget for next year, in a sign that the government aims to spend more actively to boost economic growth.
The 2019 federal budget of 60.3 billion dirhams ($16.4 billion) is 17.3 percent higher than the 51.4 billion dirhams approved for 2018, and is the UAE's largest ever, Prime Minister Sheikh Mohammed bin Rashid al-Maktoum said on Twitter.
The federal budget accounts for only a small fraction of consolidated state spending in the UAE; individual emirates such as Abu Dhabi and Dubai also have their own budgets.
Middle East funds less positive on equities, particularly in Egypt | ZAWYA MENA Edition
Middle East funds less positive on equities, particularly in Egypt | ZAWYA MENA Edition:
Middle East funds have become less positive toward regional equities, particularly in Egypt, because of concern about instability in emerging markets globally, a monthly Reuters poll showed on Sunday.
The latest poll of 13 leading fund managers, conducted in the past week, showed 15 percent now expect to cut their allocations to regional equities in the next three months while 8 percent expect to raise them.
That is the most negative balance since May 2016. In the previous survey, taken a month ago, 38 percent expected to raise allocations and none expected to implement reductions.
Middle East funds have become less positive toward regional equities, particularly in Egypt, because of concern about instability in emerging markets globally, a monthly Reuters poll showed on Sunday.
The latest poll of 13 leading fund managers, conducted in the past week, showed 15 percent now expect to cut their allocations to regional equities in the next three months while 8 percent expect to raise them.
That is the most negative balance since May 2016. In the previous survey, taken a month ago, 38 percent expected to raise allocations and none expected to implement reductions.
Saudi expects to boost state spending 7 percent next year | Reuters
Saudi expects to boost state spending 7 percent next year | Reuters:
Saudi Arabia’s government aims to increase spending by over 7 percent next year in an effort to boost sluggish economic growth, while continuing to cut its budget deficit gradually, finance ministry figures released on Sunday showed.
The ministry forecast state spending would climb to 1.106 trillion riyals ($295 billion) in 2019 from its latest estimate for 2018 of 1.030 trillion riyals.
But it also projected a jump in revenues to 978 billion riyals, up 11 percent from 2018. That would leave a deficit of 128 billion riyals or 4.1 percent of gross domestic product next year, compared to 148 billion riyals and 5.0 percent this year.
Saudi Arabia’s government aims to increase spending by over 7 percent next year in an effort to boost sluggish economic growth, while continuing to cut its budget deficit gradually, finance ministry figures released on Sunday showed.
The ministry forecast state spending would climb to 1.106 trillion riyals ($295 billion) in 2019 from its latest estimate for 2018 of 1.030 trillion riyals.
But it also projected a jump in revenues to 978 billion riyals, up 11 percent from 2018. That would leave a deficit of 128 billion riyals or 4.1 percent of gross domestic product next year, compared to 148 billion riyals and 5.0 percent this year.
Saudi Crown Prince arrives in Kuwait for talks | Reuters
Saudi Crown Prince arrives in Kuwait for talks | Reuters:
Saudi Crown Prince Mohammed bin Salman arrived in Kuwait on Sunday, state media reported, amid expectation that he will discuss oil supplies and a Kuwaiti mediation effort to resolve Saudi Arabia’s conflict with Qatar.
Prince Mohammed will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, state news agency KUNA reported.
The Saudi prince is expected to discuss the resumption of oil output from a neutral zone which Saudi Arabia shares with Kuwait, a source familiar with the matter told Reuters.
Saudi Crown Prince Mohammed bin Salman arrived in Kuwait on Sunday, state media reported, amid expectation that he will discuss oil supplies and a Kuwaiti mediation effort to resolve Saudi Arabia’s conflict with Qatar.
Prince Mohammed will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, state news agency KUNA reported.
The Saudi prince is expected to discuss the resumption of oil output from a neutral zone which Saudi Arabia shares with Kuwait, a source familiar with the matter told Reuters.
Lebanon bond rout ramps up currency concerns, pressure for fiscal reform | Reuters
Lebanon bond rout ramps up currency concerns, pressure for fiscal reform | Reuters:
Lebanon’s worst bond market shock in a decade has raised doubts about whether the country’s banks are willing and able to continue to bankroll the government, raising pressure on Beirut to step up reforms or risk a destabilizing currency crisis.
In September the cost of insuring Lebanese sovereign debt against default LBGV5YUSAC=MG soared to its highest level since the global financial crisis of 2008, implying a more than 40 percent chance of default in the next five years. Many of the government’s dollar-denominated bonds hit record lows, while yield spreads over U.S. Treasury debt scaled historic peaks.
The panic was triggered partly by a wider selloff in global emerging market debt. But when Lebanon’s international bonds have fallen in the past, local banks could typically be relied upon to buy up the securities. Not so this time.
Lebanon’s worst bond market shock in a decade has raised doubts about whether the country’s banks are willing and able to continue to bankroll the government, raising pressure on Beirut to step up reforms or risk a destabilizing currency crisis.
In September the cost of insuring Lebanese sovereign debt against default LBGV5YUSAC=MG soared to its highest level since the global financial crisis of 2008, implying a more than 40 percent chance of default in the next five years. Many of the government’s dollar-denominated bonds hit record lows, while yield spreads over U.S. Treasury debt scaled historic peaks.
The panic was triggered partly by a wider selloff in global emerging market debt. But when Lebanon’s international bonds have fallen in the past, local banks could typically be relied upon to buy up the securities. Not so this time.
Saudi shelves $200 billion SoftBank Solar project: WSJ | Reuters
Saudi shelves $200 billion SoftBank Solar project: WSJ | Reuters:
Saudi Arabia has shelved a $200 billion plan with SoftBank Group Corp (9984.T) to build the world’s biggest solar-power-generation project, the Wall Street journal reported on Sunday, citing Saudi government officials.
No one is actively working on the project, and instead, the Saudi kingdom is working up a broader, more practical strategy to boost renewable energy, to be announced in late October, the WSJ reported on.wsj.com/2NW8wlH.
SoftBank Chief Executive Masayoshi Son had announced in March a plan to invest in creating the world’s biggest solar power project in Saudi Arabia, a project expected to have the capacity to produce up to 200 gigawatts (GW) by 2030.
Saudi Arabia has shelved a $200 billion plan with SoftBank Group Corp (9984.T) to build the world’s biggest solar-power-generation project, the Wall Street journal reported on Sunday, citing Saudi government officials.
No one is actively working on the project, and instead, the Saudi kingdom is working up a broader, more practical strategy to boost renewable energy, to be announced in late October, the WSJ reported on.wsj.com/2NW8wlH.
SoftBank Chief Executive Masayoshi Son had announced in March a plan to invest in creating the world’s biggest solar power project in Saudi Arabia, a project expected to have the capacity to produce up to 200 gigawatts (GW) by 2030.
Saudi misses out on joining anti-illicit funding body for now | Reuters
Saudi misses out on joining anti-illicit funding body for now | Reuters:
Saudi Arabia has missed out on gaining full membership of the Financial Action Task Force (FATF) after the global body dedicated to fighting illicit money flows found the kingdom fell short in combating money laundering and terror financing.
The decision by the 37-member inter-governmental body is a setback for Saudi at a time when it is striving to bolster its international reputation in order to encourage foreign investors to participate in its huge transformation plan and improve financial ties for its banks.
But after undergoing a process called “mutual evaluation”, the kingdom was found to have a low or moderate level of effectiveness for 7 of the 11 criteria it was assessed on for anti-money laundering and counter terror financing, a FATF spokeswoman told Reuters.
Saudi Arabia has missed out on gaining full membership of the Financial Action Task Force (FATF) after the global body dedicated to fighting illicit money flows found the kingdom fell short in combating money laundering and terror financing.
The decision by the 37-member inter-governmental body is a setback for Saudi at a time when it is striving to bolster its international reputation in order to encourage foreign investors to participate in its huge transformation plan and improve financial ties for its banks.
But after undergoing a process called “mutual evaluation”, the kingdom was found to have a low or moderate level of effectiveness for 7 of the 11 criteria it was assessed on for anti-money laundering and counter terror financing, a FATF spokeswoman told Reuters.
Saudi economy accelerates in second-quarter but private sector still sluggish | Reuters
Saudi economy accelerates in second-quarter but private sector still sluggish | Reuters:
Saudi Arabia’s economy grew in the second quarter at its fastest pace for over a year but the private sector remained sluggish, weighed down by austerity steps and a drive to push more Saudi citizens into jobs, official data showed on Sunday.
Gross domestic product, adjusted for inflation, expanded 1.6 percent from a year earlier in the April-June quarter. That was up from 1.2 percent in the first quarter and the fastest growth since the fourth quarter of 2016.
But the pick-up was mainly due to the government sector, where growth jumped to 4.0 percent from 2.7 percent as authorities boosted spending, the data showed.
Saudi Arabia’s economy grew in the second quarter at its fastest pace for over a year but the private sector remained sluggish, weighed down by austerity steps and a drive to push more Saudi citizens into jobs, official data showed on Sunday.
Gross domestic product, adjusted for inflation, expanded 1.6 percent from a year earlier in the April-June quarter. That was up from 1.2 percent in the first quarter and the fastest growth since the fourth quarter of 2016.
But the pick-up was mainly due to the government sector, where growth jumped to 4.0 percent from 2.7 percent as authorities boosted spending, the data showed.
MIDEAST STOCKS-Saudi gains on oil price rally, state spending boost | Reuters
MIDEAST STOCKS-Saudi gains on oil price rally, state spending boost | Reuters:
Saudi shares rose 1.3 percent on Sunday to their highest close in more than a month, fueled by an oil price rally and the kingdom’s plans to boost state spending.
The Saudi index closed at 7,999.5 points, the highest level since August 29, with petrochemicals giant Saudi Basic Industries closing 1.5 percent higher and refiner Petro Rabigh up 2.6 percent. Banks also gained with Al Rajhi Bank up nearly 2 percent and Samba Financial Group rising 1.1 percent
On Friday Brent crude futures rose $1 to settle at $82.72 a barrel, with the session high of $82.87 the contract’s highest since Nov. 10, 2014.
Saudi shares rose 1.3 percent on Sunday to their highest close in more than a month, fueled by an oil price rally and the kingdom’s plans to boost state spending.
The Saudi index closed at 7,999.5 points, the highest level since August 29, with petrochemicals giant Saudi Basic Industries closing 1.5 percent higher and refiner Petro Rabigh up 2.6 percent. Banks also gained with Al Rajhi Bank up nearly 2 percent and Samba Financial Group rising 1.1 percent
On Friday Brent crude futures rose $1 to settle at $82.72 a barrel, with the session high of $82.87 the contract’s highest since Nov. 10, 2014.
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg:
Rising oil prices are prompting forecasts of a return to $100 a barrel for the first time since 2014, creating both winners and losers in the world economy.
Exporters of the fuel would enjoy bumper returns, giving a fillip to companies and government coffers. By contrast, consuming nations would bear the cost at the pump, potentially fanning inflation and hurting demand.
The good news is that Bloomberg Economics found that oil at $100 would mean less for global growth in 2018 than it did after the 2011 spike. That’s partly because economies are less reliant on energy and because the shale revolution cushioning the U.S.
Rising oil prices are prompting forecasts of a return to $100 a barrel for the first time since 2014, creating both winners and losers in the world economy.
Exporters of the fuel would enjoy bumper returns, giving a fillip to companies and government coffers. By contrast, consuming nations would bear the cost at the pump, potentially fanning inflation and hurting demand.
The good news is that Bloomberg Economics found that oil at $100 would mean less for global growth in 2018 than it did after the 2011 spike. That’s partly because economies are less reliant on energy and because the shale revolution cushioning the U.S.
Saudi Crown Prince to discuss Neutral Zone oil output during Kuwait trip: source | Reuters
Saudi Crown Prince to discuss Neutral Zone oil output during Kuwait trip: source | Reuters:
Saudi Arabia’s Crown Prince Mohammad bin Salman is expected to discuss the resumption of oil output from the Neutral Zone, which the kingdom’s shares with Kuwait, during a trip to the Gulf Arab state on Sunday, a source familiar with the matter told Reuters.
Prince Mohammad will be accompanied by Energy Minister Khalid al-Falih during his trip to Kuwait, two separate sources said.
The Saudi crown prince will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the Kuwaiti News Agency has reported.
Saudi Arabia’s Crown Prince Mohammad bin Salman is expected to discuss the resumption of oil output from the Neutral Zone, which the kingdom’s shares with Kuwait, during a trip to the Gulf Arab state on Sunday, a source familiar with the matter told Reuters.
Prince Mohammad will be accompanied by Energy Minister Khalid al-Falih during his trip to Kuwait, two separate sources said.
The Saudi crown prince will hold talks with Kuwaiti Emir Sheikh Sabah al-Ahmad al-Jaber al-Sabah, the Kuwaiti News Agency has reported.
MIDEAST STOCKS-Firm oil prices lift Saudi, Bank of Sharjah boosted by merger talk | Reuters
MIDEAST STOCKS-Firm oil prices lift Saudi, Bank of Sharjah boosted by merger talk | Reuters:
Firm oil prices lifted most Gulf stocks on Sunday, led by Qatar and Saudi Arabia, while Bank of Sharjah shares surged on news that the bank may get involved in three-way merger talks.
The Saudi index was up 0.5 percent in early trade, lifted by a 0.7 percent rise in Saudi Basic Industries and a 1 percent rise in Al Rajhi Bank.
A gain of more than 1 percent in Industries Qatar and Qatar National Bank lifted Qatari stocks by 0.8 percent in early trade.
Firm oil prices lifted most Gulf stocks on Sunday, led by Qatar and Saudi Arabia, while Bank of Sharjah shares surged on news that the bank may get involved in three-way merger talks.
The Saudi index was up 0.5 percent in early trade, lifted by a 0.7 percent rise in Saudi Basic Industries and a 1 percent rise in Al Rajhi Bank.
A gain of more than 1 percent in Industries Qatar and Qatar National Bank lifted Qatari stocks by 0.8 percent in early trade.