Exclusive: Damac to maintain Dh5bn of annual sales amid debt reduction plan - The National:
Damac Properties is targeting at least Dh5 billion ($1.36bn) of annual sales to cover its costs while it works to pay down debt over the next three years and increase its profits after a challenging period, its chief financial officer said.
“We’d like to maintain sales at a certain level to keep our overheads covered,” Adil Taqi told The National in an interview on Tuesday. “If you consider we reached around Dh7bn in 2016 when the market first softened, we believe [a target of] Dh5bn is reasonable during the current low cycle.”
Demand for Damac’s pipeline of luxury and affordable units remains strong, he added, and land values in Dubai as a percentage of gross development value remain low – around 30 per cent compared to 60 per cent in London or Hong Kong, making the emirate “an extremely attractive market”.
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Tuesday 2 October 2018
GCC banks’ financial profile to stabilise next year: S&P - The Peninsula Qatar
GCC banks’ financial profile to stabilise next year: S&P - The Peninsula Qatar:
After facing three years of significant pressure, the GCC banks’ financial profile should remain stable in 2019, absent any unexpected geopolitical or oil-price shock.
The banks’ lending growth should stabilise at around the 5 percent mark over the next 12 months, as higher oil prices and stronger public investments raise economic growth in the region overall, S&P Global said yesterday.
“We expect profitability to stabilise--with return on assets at about 1.5 percent-1.7 percent and net interest margins at 3 percent on average in 2018--benefitting from the higher interest rates and significant non-interest-bearing deposits on banks’ balance sheets,” the global ratings agency noted.
After facing three years of significant pressure, the GCC banks’ financial profile should remain stable in 2019, absent any unexpected geopolitical or oil-price shock.
The banks’ lending growth should stabilise at around the 5 percent mark over the next 12 months, as higher oil prices and stronger public investments raise economic growth in the region overall, S&P Global said yesterday.
“We expect profitability to stabilise--with return on assets at about 1.5 percent-1.7 percent and net interest margins at 3 percent on average in 2018--benefitting from the higher interest rates and significant non-interest-bearing deposits on banks’ balance sheets,” the global ratings agency noted.
QSE surpasses 9,800 levels on strong buy interests
QSE surpasses 9,800 levels on strong buy interests:
Strong buying interests, especially in the industrials and transport segments, on Tuesday led Qatar Stock Exchange surpassed 9,800 levels.
The bullish outlook of domestic funds and non-Qatari individuals as well as lower net selling by local retail investors were instrumental in lifting the 20-stock Qatar Index 0.27% to 9,817.07 points.
The Islamic equities were seen gaining marginally faster than the other indices in the market which is up 15.18% year-to-date.
Strong buying interests, especially in the industrials and transport segments, on Tuesday led Qatar Stock Exchange surpassed 9,800 levels.
The bullish outlook of domestic funds and non-Qatari individuals as well as lower net selling by local retail investors were instrumental in lifting the 20-stock Qatar Index 0.27% to 9,817.07 points.
The Islamic equities were seen gaining marginally faster than the other indices in the market which is up 15.18% year-to-date.
Qatar external, fiscal balances to show marked improvement this year: IIF
Qatar external, fiscal balances to show marked improvement this year: IIF:
Qatar’s external and fiscal balances are expected to show marked improvement this year despite the ongoing economic blockade and growing emerging market stress, according to a US-based economic think-tank.
Although the diplomatic rift with the Saudi-led bloc is well into its second year and shows no signs of abating, economic activity has continued to pick up in Qatar, said the Institute of International Finance (IIF).
Qatar's fiscal balance is on track to return to a surplus for the first time since 2015 and remain in surplus next year. Higher hydrocarbon prices are the major driver for 2018, while non-hydrocarbon revenues are likely to increase in 2019 with the scheduled introduction of a comprehensive value added tax (VAT).
Qatar’s external and fiscal balances are expected to show marked improvement this year despite the ongoing economic blockade and growing emerging market stress, according to a US-based economic think-tank.
Although the diplomatic rift with the Saudi-led bloc is well into its second year and shows no signs of abating, economic activity has continued to pick up in Qatar, said the Institute of International Finance (IIF).
Qatar's fiscal balance is on track to return to a surplus for the first time since 2015 and remain in surplus next year. Higher hydrocarbon prices are the major driver for 2018, while non-hydrocarbon revenues are likely to increase in 2019 with the scheduled introduction of a comprehensive value added tax (VAT).
Dubai Bank Said to Weigh Paying Sberbank Less for Turkish Lender - Bloomberg
Dubai Bank Said to Weigh Paying Sberbank Less for Turkish Lender - Bloomberg:
Emirates NBD PJSC is considering whether to renegotiate its offer for Sberbank PJSC’s wholly-owned Turkish unit after the lira lost almost 30 percent of its value since the deal was signed, according to people familiar with the negotiations.
Dubai’s biggest lender wants to complete its acquisition of Denizbank AS but is concerned that the price set in May is too high following the slump in the lira, the people said, asking not to be identified because the talks are private. Emirates NBD struck a deal to buy Denizbank for 14.6 billion liras, which was worth more than $3 billion on May 22.
A renegotiation is one option being considered, but nothing has been decided, the people said. Representatives for Sberbank and Denizbank declined to comment. Emirates NBD is “closely monitoring” events, a spokesman said, declining to provide further details.
Emirates NBD PJSC is considering whether to renegotiate its offer for Sberbank PJSC’s wholly-owned Turkish unit after the lira lost almost 30 percent of its value since the deal was signed, according to people familiar with the negotiations.
Dubai’s biggest lender wants to complete its acquisition of Denizbank AS but is concerned that the price set in May is too high following the slump in the lira, the people said, asking not to be identified because the talks are private. Emirates NBD struck a deal to buy Denizbank for 14.6 billion liras, which was worth more than $3 billion on May 22.
A renegotiation is one option being considered, but nothing has been decided, the people said. Representatives for Sberbank and Denizbank declined to comment. Emirates NBD is “closely monitoring” events, a spokesman said, declining to provide further details.
Emirates Adds Edinburgh -- Then Cuts Flights Amid Fleet Pinch - Bloomberg
Emirates Adds Edinburgh -- Then Cuts Flights Amid Fleet Pinch - Bloomberg:
Scottish capital Edinburgh is betting on a new daily air link operated by Persian Gulf carrier Emirates to bring in thousands of tourists from around the world while boosting exports of everything from smoked salmon to malt whisky. Trouble is, the service won’t stay daily for long.
Flights that began Monday will be cut to five a week from the end of this month through next May amid a plane and pilot availability crunch, Emirates said after the inaugural service landed. They’ll expand to seven again only from Dec. 10 until mid January for the busy Christmas and New Year travel period.
The truncated schedule -- which means Emirates will need to rebook or refund passengers with tickets for flights that will no longer operate -- has also been dictated by the shutdown of a runway at Dubai International airport next spring for upgrade work, Hubert Frach, the company’s head of commercial operations for the Americas and Europe, said in an interview.
Scottish capital Edinburgh is betting on a new daily air link operated by Persian Gulf carrier Emirates to bring in thousands of tourists from around the world while boosting exports of everything from smoked salmon to malt whisky. Trouble is, the service won’t stay daily for long.
Flights that began Monday will be cut to five a week from the end of this month through next May amid a plane and pilot availability crunch, Emirates said after the inaugural service landed. They’ll expand to seven again only from Dec. 10 until mid January for the busy Christmas and New Year travel period.
The truncated schedule -- which means Emirates will need to rebook or refund passengers with tickets for flights that will no longer operate -- has also been dictated by the shutdown of a runway at Dubai International airport next spring for upgrade work, Hubert Frach, the company’s head of commercial operations for the Americas and Europe, said in an interview.
Saudi-Kuwaiti Talks on Shared Oil Are Said to Stall Over Chevron - Bloomberg
Saudi-Kuwaiti Talks on Shared Oil Are Said to Stall Over Chevron - Bloomberg:
Talks between Saudi Arabia and Kuwait to restart two oil fields in a neutral zone between the countries have stalled again, this time over the role of Chevron Corp., according to people familiar with the matter.
Energy ministers from both nations met in Kuwait on Sunday, seeking a resolution over Khafji and Wafra, which were halted in 2014 and 2015, respectively. Among the unresolved issues is Kuwait’s insistence that Chevron no longer operate at Wafra, the people said, asking not to be identified discussing private matters.
The importance of the fields, which can pump a combined 500,000 barrels a day, is increasing as spare production capacity dwindles elsewhere. U.S. sanctions on Iran are constricting global oil supplies at a time when prices are already close to their highest in about four years.
Talks between Saudi Arabia and Kuwait to restart two oil fields in a neutral zone between the countries have stalled again, this time over the role of Chevron Corp., according to people familiar with the matter.
Energy ministers from both nations met in Kuwait on Sunday, seeking a resolution over Khafji and Wafra, which were halted in 2014 and 2015, respectively. Among the unresolved issues is Kuwait’s insistence that Chevron no longer operate at Wafra, the people said, asking not to be identified discussing private matters.
The importance of the fields, which can pump a combined 500,000 barrels a day, is increasing as spare production capacity dwindles elsewhere. U.S. sanctions on Iran are constricting global oil supplies at a time when prices are already close to their highest in about four years.
Mubadala owned Cepsa will return to Spanish market with $9.22bln valuation | ZAWYA MENA Edition
Mubadala owned Cepsa will return to Spanish market with $9.22bln valuation | ZAWYA MENA Edition:
Abu Dhabi state investor Mubadala aims to value Spanish oil major Cepsa at up to 8 billion euros ($9.22 billion) after setting the price range for the company's initial public offering, according to the prospectus filed on Tuesday.
Mubadala announced plans to float Cepsa on the Madrid stock exchange two weeks ago, putting it on track for a listing in late October. The final share price is expected be set on October 16, with the floating taking place two days later.
The Abu Dhabi investor is expected raise around 2 billion euros with the sale of a 25 per cent stake, taking into account the highest price from a range of between 13.1 euros to 15.1 euros per share.
Abu Dhabi state investor Mubadala aims to value Spanish oil major Cepsa at up to 8 billion euros ($9.22 billion) after setting the price range for the company's initial public offering, according to the prospectus filed on Tuesday.
Mubadala announced plans to float Cepsa on the Madrid stock exchange two weeks ago, putting it on track for a listing in late October. The final share price is expected be set on October 16, with the floating taking place two days later.
The Abu Dhabi investor is expected raise around 2 billion euros with the sale of a 25 per cent stake, taking into account the highest price from a range of between 13.1 euros to 15.1 euros per share.
SABIC tightens price guidance for dollar bonds | Reuters
SABIC tightens price guidance for dollar bonds | Reuters:
Saudi Basic Industries Corp has tightened price guidance for its planned U.S. dollar bond issue to 125 basis points over U.S. Treasuries for a five-year tranche and 165 bps over for a 10-year tranche, according to a bank document seen by Reuters.
SABIC, rated A1 by Moody’s and A-(minus) by S&P, is planning to issue the 144A/Regulation S bonds through SABIC Capital II B.V, a special purpose vehicle.
It received orders of $5.5 billion, the document showed.
Saudi Basic Industries Corp has tightened price guidance for its planned U.S. dollar bond issue to 125 basis points over U.S. Treasuries for a five-year tranche and 165 bps over for a 10-year tranche, according to a bank document seen by Reuters.
SABIC, rated A1 by Moody’s and A-(minus) by S&P, is planning to issue the 144A/Regulation S bonds through SABIC Capital II B.V, a special purpose vehicle.
It received orders of $5.5 billion, the document showed.
Iran clamps down on market in drive to rescue rial from record lows | Reuters
Iran clamps down on market in drive to rescue rial from record lows | Reuters:
Iran’s rial rose on Tuesday as authorities in Tehran sold U.S. dollars and clamped down on unofficial foreign exchange trade in a drive to rescue the currency from record lows hit because of U.S. economic sanctions, traders said.
The rial traded at 147,000 to the dollar in the unofficial market, up from 156,500 on Monday and a record low of 190,000 reached last Wednesday, according to foreign exchange website Bonbast.com.
The currency’s slide, from levels around 43,000 at the end of last year, has eroded the value of ordinary Iranians’ savings, triggering panic buying of dollars.
Iran’s rial rose on Tuesday as authorities in Tehran sold U.S. dollars and clamped down on unofficial foreign exchange trade in a drive to rescue the currency from record lows hit because of U.S. economic sanctions, traders said.
The rial traded at 147,000 to the dollar in the unofficial market, up from 156,500 on Monday and a record low of 190,000 reached last Wednesday, according to foreign exchange website Bonbast.com.
The currency’s slide, from levels around 43,000 at the end of last year, has eroded the value of ordinary Iranians’ savings, triggering panic buying of dollars.
Oil eases below four-year highs; U.S. inventory rise expected | Reuters
Oil eases below four-year highs; U.S. inventory rise expected | Reuters:
Oil prices eased slightly on Tuesday after rallying for three straight sessions, but remained close to four-year highs on worries that global supplies will drop due to Washington’s sanctions on Iran.
“This is the market catching its breath,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.
In addition to the worries that Iran, prices are being supported by global demand that has remained strong in the face of trade tensions.
Oil prices eased slightly on Tuesday after rallying for three straight sessions, but remained close to four-year highs on worries that global supplies will drop due to Washington’s sanctions on Iran.
“This is the market catching its breath,” said Gene McGillian, director of market research at Tradition Energy in Stamford, Connecticut.
In addition to the worries that Iran, prices are being supported by global demand that has remained strong in the face of trade tensions.
Massive Canada LNG project gets green light as Asia demand for fuel booms | Reuters
Massive Canada LNG project gets green light as Asia demand for fuel booms | Reuters:
A massive liquefied natural gas (LNG) export project in Canada has received final approval from its partners, LNG Canada said on Tuesday, making it the first major new project for the fuel to win approval in recent years.
First gas from the C$40 billion ($31 billion) project, led by Royal Dutch Shell Plc, is expected before 2025, aiming to feed an expected surge in demand for the super-chilled fuel from Asian buyers, mainly China.
LNG Canada is the largest private-sector investment project in Canadian history, Prime Minister Justin Trudeau said at a news conference in Vancouver.
A massive liquefied natural gas (LNG) export project in Canada has received final approval from its partners, LNG Canada said on Tuesday, making it the first major new project for the fuel to win approval in recent years.
First gas from the C$40 billion ($31 billion) project, led by Royal Dutch Shell Plc, is expected before 2025, aiming to feed an expected surge in demand for the super-chilled fuel from Asian buyers, mainly China.
LNG Canada is the largest private-sector investment project in Canadian history, Prime Minister Justin Trudeau said at a news conference in Vancouver.
DAMAC Properties calls bottom for weakened Dubai real estate | Reuters
DAMAC Properties calls bottom for weakened Dubai real estate | Reuters:
Dubai’s real estate market faces another few quarters of “soft market conditions” before starting to rebound from late 2019, DAMAC Properties’ DAMAC.DU chief financial officer said.
Residential prices in Dubai have fallen more than 15 percent since 2014 and this year DAMAC registered its worst quarter of booked sales since going public five years ago.
“There is a mood of positivity that we are closer to the end of the weak cycle ... Fundamentally prices cannot go down much further,” DAMAC CFO Adil Taqi told Reuters on Tuesday at the annual Cityscape property exhibition in Dubai.
Dubai’s real estate market faces another few quarters of “soft market conditions” before starting to rebound from late 2019, DAMAC Properties’ DAMAC.DU chief financial officer said.
Residential prices in Dubai have fallen more than 15 percent since 2014 and this year DAMAC registered its worst quarter of booked sales since going public five years ago.
“There is a mood of positivity that we are closer to the end of the weak cycle ... Fundamentally prices cannot go down much further,” DAMAC CFO Adil Taqi told Reuters on Tuesday at the annual Cityscape property exhibition in Dubai.
Citigroup plans to grow offshore booking center in UAE: executive | Reuters
Citigroup plans to grow offshore booking center in UAE: executive | Reuters:
Citigroup (C.N) plans to boost the United Arab Emirates’ role as an offshore booking center and is working towards a full banking license in Saudi Arabia, helping to propel its regional growth, a senior executive told Reuters.
Growth in the Middle East and Africa region is expected to be above the market average of around four percent in 2018 and 2019, driven by both countries, Atiq Rehman, Citi’s Chief Executive of Middle East and Africa, said in an interview.
“We are focused on what we can do within the UAE and very focused on what we can do from the UAE,” he said. “We want to grow our business here and make it into a regional offshore booking center for a lot of our loans.”
Citigroup (C.N) plans to boost the United Arab Emirates’ role as an offshore booking center and is working towards a full banking license in Saudi Arabia, helping to propel its regional growth, a senior executive told Reuters.
Growth in the Middle East and Africa region is expected to be above the market average of around four percent in 2018 and 2019, driven by both countries, Atiq Rehman, Citi’s Chief Executive of Middle East and Africa, said in an interview.
“We are focused on what we can do within the UAE and very focused on what we can do from the UAE,” he said. “We want to grow our business here and make it into a regional offshore booking center for a lot of our loans.”
Softbank says it is working with Saudi PIF on solar power project | Reuters
Softbank says it is working with Saudi PIF on solar power project | Reuters:
Japan’s SoftBank said on Tuesday it is working closely with Saudi Arabia’s sovereign wealth fund on a solar power-generation project, dismissing a Wall Street Journal report that it had shelved the $200 billion project with the Public Investment Fund (PIF).
“Progress continues to be in line with expectations for a project of this scale and complexity,” a SoftBank spokesman said in a written statement.
Softbank said its team has for months been working closely with the PIF and key government agencies to deliver on the New Solar Energy Plan 2030 “to transform the future of renewable energy production in the kingdom.”
Japan’s SoftBank said on Tuesday it is working closely with Saudi Arabia’s sovereign wealth fund on a solar power-generation project, dismissing a Wall Street Journal report that it had shelved the $200 billion project with the Public Investment Fund (PIF).
“Progress continues to be in line with expectations for a project of this scale and complexity,” a SoftBank spokesman said in a written statement.
Softbank said its team has for months been working closely with the PIF and key government agencies to deliver on the New Solar Energy Plan 2030 “to transform the future of renewable energy production in the kingdom.”
Mideast Stocks: Most Gulf markets slip on emerging market woes; energy lifts Qatar | ZAWYA MENA Edition
Mideast Stocks: Most Gulf markets slip on emerging market woes; energy lifts Qatar | ZAWYA MENA Edition:
Most Middle Eastern stock markets slipped on Tuesday as emerging markets slumped globally, although Abu Dhabi and Qatar rose marginally, boosted by banks and energy stocks.
The Saudi Arabian index reversed early gains to end 0.7 percent lower, weighed down by banks and petrochemicals. Most petrochemical stocks had risen in morning trade after Brent oil prices hit their highest in four years.
Eight of 14 petrochemical stocks closed lower with the biggest, Saudi Basic Industries, falling 0.2 percent.
Most Middle Eastern stock markets slipped on Tuesday as emerging markets slumped globally, although Abu Dhabi and Qatar rose marginally, boosted by banks and energy stocks.
The Saudi Arabian index reversed early gains to end 0.7 percent lower, weighed down by banks and petrochemicals. Most petrochemical stocks had risen in morning trade after Brent oil prices hit their highest in four years.
Eight of 14 petrochemical stocks closed lower with the biggest, Saudi Basic Industries, falling 0.2 percent.
Emirates Executive Says M&A Isn't in DNA of Long-Haul Carrier - Bloomberg
Emirates Executive Says M&A Isn't in DNA of Long-Haul Carrier - Bloomberg:
Dubai airline Emirates is focused on organic growth and remains averse to expanding through acquisitions, an executive said, repeating a denial that the Persian Gulf giant is in talks to take over the airline arm of unprofitable neighbor Etihad.
“Sure we want to lift synergies and create more efficiencies, but that is not a merger,” Hubert Frach, Emirates’s head of commercial operations for the Americas and Europe, said in an interview in Edinburgh Monday. “DNA-wise we come from a completely different angle. The key success formula for Emirates is organic growth."
"It gives us the speed, independence and agility," Frach said after the carrier’s inaugural flight to Edinburgh. "It’s not so much partnership, it’s not so much forming alliances.”
Dubai airline Emirates is focused on organic growth and remains averse to expanding through acquisitions, an executive said, repeating a denial that the Persian Gulf giant is in talks to take over the airline arm of unprofitable neighbor Etihad.
“Sure we want to lift synergies and create more efficiencies, but that is not a merger,” Hubert Frach, Emirates’s head of commercial operations for the Americas and Europe, said in an interview in Edinburgh Monday. “DNA-wise we come from a completely different angle. The key success formula for Emirates is organic growth."
"It gives us the speed, independence and agility," Frach said after the carrier’s inaugural flight to Edinburgh. "It’s not so much partnership, it’s not so much forming alliances.”
Saudi Fund Denies Report SoftBank Solar Project Is On Hold - Bloomberg
Saudi Fund Denies Report SoftBank Solar Project Is On Hold - Bloomberg:
Saudi Arabia’s Public Investment Fund said it’s working with the SoftBank Vision Fund and other institutions on a number of major multi-billion dollar solar projects and denied a Wall Street Journal report that said a $200 billion development was put on hold.
The kingdom is moving ahead with its renewable energy strategy as part of the oil-rich country’s economic transformation plan, the sovereign wealth fund said in an emailed statement.
Saudi Arabia and SoftBank in March signed a memorandum of understanding to develop the solar power project, which is set to become larger than any other. It was one of a number of announcements from Saudi Arabia as it promises to scale up its access to renewables. While the kingdom has for years sought to get a foothold in clean energy, it was only in 2017 that the country moved forward with projects.
Saudi Arabia’s Public Investment Fund said it’s working with the SoftBank Vision Fund and other institutions on a number of major multi-billion dollar solar projects and denied a Wall Street Journal report that said a $200 billion development was put on hold.
The kingdom is moving ahead with its renewable energy strategy as part of the oil-rich country’s economic transformation plan, the sovereign wealth fund said in an emailed statement.
Saudi Arabia and SoftBank in March signed a memorandum of understanding to develop the solar power project, which is set to become larger than any other. It was one of a number of announcements from Saudi Arabia as it promises to scale up its access to renewables. While the kingdom has for years sought to get a foothold in clean energy, it was only in 2017 that the country moved forward with projects.
Alwaleed to Sign $1 Billion Loan in First Borrowing Since Arrest - Bloomberg
Alwaleed to Sign $1 Billion Loan in First Borrowing Since Arrest - Bloomberg:
Kingdom Holding Co. will soon close a $1 billion loan, the first time Prince Alwaleed Bin Talal’s investment firm has borrowed since his detention last year.
Kingdom Holding will sign the deal “imminently” with a group of international and local banks, Chief Executive Officer Talal Bin Ibrahim Al Maiman said in a phone interview from Riyadh. The investment firm, which started discussions with banks about the borrowing last October, hasn’t been in a rush to close the loan because it’s had enough cash to finance its investments, he said.
Talks for the financing were put on hold in November after Alwaleed, the 67th-richest person in the world, was among princes, ministers and senior officials who were held at the Ritz-Carlton for almost three months. Kingdom Holding revived the talks with local and international banks in March and the loan was going to be backed by the company’s stake in Banque Saudi Fransi, people familiar said at the time.
Kingdom Holding Co. will soon close a $1 billion loan, the first time Prince Alwaleed Bin Talal’s investment firm has borrowed since his detention last year.
Kingdom Holding will sign the deal “imminently” with a group of international and local banks, Chief Executive Officer Talal Bin Ibrahim Al Maiman said in a phone interview from Riyadh. The investment firm, which started discussions with banks about the borrowing last October, hasn’t been in a rush to close the loan because it’s had enough cash to finance its investments, he said.
Talks for the financing were put on hold in November after Alwaleed, the 67th-richest person in the world, was among princes, ministers and senior officials who were held at the Ritz-Carlton for almost three months. Kingdom Holding revived the talks with local and international banks in March and the loan was going to be backed by the company’s stake in Banque Saudi Fransi, people familiar said at the time.
Mideast Stocks: Oil boosts Gulf petchems but markets mostly sluggish | ZAWYA MENA Edition
Mideast Stocks: Oil boosts Gulf petchems but markets mostly sluggish | ZAWYA MENA Edition:
Petrochemical firms and other oil-related stocks rose in the Gulf early on Tuesday after the Brent crude price surged almost 3 percent to around $85 a barrel overnight, but most stocks in the region were sluggish as emerging markets slumped globally.
The Saudi Arabian index was up 0.1 percent after an hour of trading, with 11 of 14 petrochemical stocks gaining. Saudi Basic Industries rose 0.5 percent.
The Dubai index dipped 0.5 percent, pulled down by real estate stocks on profit-taking after the sector had rebounded moderately in the last few days. Emaar Properties slid 1.9 percent.
Petrochemical firms and other oil-related stocks rose in the Gulf early on Tuesday after the Brent crude price surged almost 3 percent to around $85 a barrel overnight, but most stocks in the region were sluggish as emerging markets slumped globally.
The Saudi Arabian index was up 0.1 percent after an hour of trading, with 11 of 14 petrochemical stocks gaining. Saudi Basic Industries rose 0.5 percent.
The Dubai index dipped 0.5 percent, pulled down by real estate stocks on profit-taking after the sector had rebounded moderately in the last few days. Emaar Properties slid 1.9 percent.
RPT-Bill allowing U.S. to sue OPEC drawing renewed interest | Reuters
RPT-Bill allowing U.S. to sue OPEC drawing renewed interest | Reuters:
With oil prices hitting fresh four-year highs, long-dormant proposals to allow the United States to sue OPEC nations are getting a fresh look in Congress, though they were once considered a longshot to becoming law.
A U.S. Senate subcommittee on Wednesday will hear testimony on the so-called No Oil Producing and Exporting Cartels Act, or NOPEC, which would revoke the sovereign immunity that has long shielded OPEC members from U.S. legal action.
The bill would change U.S. antitrust law to allow OPEC producers to be sued for collusion; it would make it illegal to restrain oil or gas production or set those prices - removing sovereign immunity that U.S. courts have ruled exists under current law.
With oil prices hitting fresh four-year highs, long-dormant proposals to allow the United States to sue OPEC nations are getting a fresh look in Congress, though they were once considered a longshot to becoming law.
A U.S. Senate subcommittee on Wednesday will hear testimony on the so-called No Oil Producing and Exporting Cartels Act, or NOPEC, which would revoke the sovereign immunity that has long shielded OPEC members from U.S. legal action.
The bill would change U.S. antitrust law to allow OPEC producers to be sued for collusion; it would make it illegal to restrain oil or gas production or set those prices - removing sovereign immunity that U.S. courts have ruled exists under current law.
From sukuk to warrants, Iran works to deepen capital markets | Reuters
From sukuk to warrants, Iran works to deepen capital markets | Reuters:
Iran is developing a range of new financial products, from Islamic bonds to warrants and insurance-linked securities, in an effort to give local firms more funding options as sanctions put pressure on the economy.
The Iranian rial has plunged 70 percent against the U.S. dollar in the free market this year, inflation has risen and foreign trade has been disrupted after Washington repudiated an agreement on Tehran’s nuclear program and reimposed sanctions.
But Iran’s financial system has been able to ride out past periods of sanctions, and officials say they are working on new products to stimulate capital markets activity. All the products are structured to obey Islamic principles, such as a ban on interest payments.
Iran is developing a range of new financial products, from Islamic bonds to warrants and insurance-linked securities, in an effort to give local firms more funding options as sanctions put pressure on the economy.
The Iranian rial has plunged 70 percent against the U.S. dollar in the free market this year, inflation has risen and foreign trade has been disrupted after Washington repudiated an agreement on Tehran’s nuclear program and reimposed sanctions.
But Iran’s financial system has been able to ride out past periods of sanctions, and officials say they are working on new products to stimulate capital markets activity. All the products are structured to obey Islamic principles, such as a ban on interest payments.
Qatar's Al Khalij Commercial Bank sets final guidance for $500 mln bond | Reuters
Qatar's Al Khalij Commercial Bank sets final guidance for $500 mln bond | Reuters:
Qatar’s Al Khalij Commercial Bank has set the final price guidance for a planned $500 million bond sale at 180 basis points (bps) over mid-swaps, with the notes expected to price within 5 bps of that figure, a bank document seen by Reuters showed.
Orders for the Qatari lender’s debt issue topped $1.4 billion.
The bank, rated A3 by Moody’s and Fitch, has hired Barclays, QNB Capital, Standard Chartered Bank and Qatar’s Commercial Bank to arrange the issue, which is expected to price later on Tuesday.
Qatar’s Al Khalij Commercial Bank has set the final price guidance for a planned $500 million bond sale at 180 basis points (bps) over mid-swaps, with the notes expected to price within 5 bps of that figure, a bank document seen by Reuters showed.
Orders for the Qatari lender’s debt issue topped $1.4 billion.
The bank, rated A3 by Moody’s and Fitch, has hired Barclays, QNB Capital, Standard Chartered Bank and Qatar’s Commercial Bank to arrange the issue, which is expected to price later on Tuesday.
COLUMN-OPEC and traders in standoff over oil outlook: Kemp | Reuters
COLUMN-OPEC and traders in standoff over oil outlook: Kemp | Reuters:
OPEC and oil traders are now in fundamental disagreement about the market outlook and the standoff is fuelling a sharp rise in prices that could spell trouble for the global economy over the next 18 months.
The overall balance between supply and demand is “healthy” according to a statement from the Joint Ministerial Monitoring Committee of OPEC and non-OPEC producers last month.
The committee expressed its satisfaction regarding the current oil market outlook, according to a press statement released afterwards (“JMMC meets in Algiers to monitor developments in the oil market”, OPEC, Sept. 23).
OPEC and oil traders are now in fundamental disagreement about the market outlook and the standoff is fuelling a sharp rise in prices that could spell trouble for the global economy over the next 18 months.
The overall balance between supply and demand is “healthy” according to a statement from the Joint Ministerial Monitoring Committee of OPEC and non-OPEC producers last month.
The committee expressed its satisfaction regarding the current oil market outlook, according to a press statement released afterwards (“JMMC meets in Algiers to monitor developments in the oil market”, OPEC, Sept. 23).
Saudi economist who criticised Aramco IPO charged with terrorism: Activists - The Peninsula Qatar
Saudi economist who criticised Aramco IPO charged with terrorism: Activists - The Peninsula Qatar:
Saudi Arabia's public prosecutor has charged a man, identified by activists as a prominent economist who once criticised plans to float shares of Saudi Aramco, with joining a terrorist organisation and meeting with foreign diplomats.
Local media, including Arabic-language newspaper Okaz, reported on Monday that the accusations include membership of the banned Muslim Brotherhood as well as communicating with neighbouring Qatar and inciting protests inside Saudi Arabia.
The reports did not name the suspect, but a personal friend, London-based Saudi rights group ALQST, and a network of activists dedicated to monitoring and documenting people they describe as "prisoners of conscience" confirmed his identity.
Saudi Arabia's public prosecutor has charged a man, identified by activists as a prominent economist who once criticised plans to float shares of Saudi Aramco, with joining a terrorist organisation and meeting with foreign diplomats.
Local media, including Arabic-language newspaper Okaz, reported on Monday that the accusations include membership of the banned Muslim Brotherhood as well as communicating with neighbouring Qatar and inciting protests inside Saudi Arabia.
The reports did not name the suspect, but a personal friend, London-based Saudi rights group ALQST, and a network of activists dedicated to monitoring and documenting people they describe as "prisoners of conscience" confirmed his identity.
Kuwait stocks shine in the third quarter as market reforms pay off | Reuters
Kuwait stocks shine in the third quarter as market reforms pay off | Reuters:
Inclusion in an emerging market benchmark and surging oil prices have helped Kuwaiti stocks outshine their regional peers in the past three months, but some major active emerging-market investors are waiting on the sidelines for more reforms.
Kuwait’s main index is up nearly 9 percent in the third quarter, beating other Gulf markets, including oil producers Saudi Arabia and Abu Dhabi, and edging past Qatar, the MSCI emerging market index and Russia.
More good news could be in store. Next year, U.S. index provider MSCI will decide whether to reclassify its Kuwait index from the current frontier-market status to its widely used emerging-market benchmark. Analysts estimate such a move could trigger passive fund flows of $2 billion.
Inclusion in an emerging market benchmark and surging oil prices have helped Kuwaiti stocks outshine their regional peers in the past three months, but some major active emerging-market investors are waiting on the sidelines for more reforms.
Kuwait’s main index is up nearly 9 percent in the third quarter, beating other Gulf markets, including oil producers Saudi Arabia and Abu Dhabi, and edging past Qatar, the MSCI emerging market index and Russia.
More good news could be in store. Next year, U.S. index provider MSCI will decide whether to reclassify its Kuwait index from the current frontier-market status to its widely used emerging-market benchmark. Analysts estimate such a move could trigger passive fund flows of $2 billion.