Government amends DIFC laws | GulfNews.com:
Dubai His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, has enacted the DIFC Regulatory Amendment Law, No. 06 of 2018. The Law, which amends the Regulatory Law of 2004, will come into force on October 29 and, together with changes to DFSA (Dubai Financial Services Authority) Anti-Money Laundering Rules, will make a number of important changes to the regulatory regime in the Dubai International Financial Centre (DIFC).
The amendments follow a self-assessment of the DIFC framework in preparation for the upcoming UAE Financial Action Task Force (FATF), Mutual Evaluation in 2019. The amendments will enhance the anti-money laundering and counter-terrorist financing, AML/CTF, regime. This will support the ongoing alignment of the DIFC regime with the FATF recommendations.
The changes include updating the DFSA’s approach to registration and supervision of Designated Non-Financial Businesses or Professions (DNFBPs). This includes a prohibition from conducting any DNFBP activities, in or from the DIFC, without registration by the DFSA. The changes also include enhancements to the supervisory regime, which will enable the DFSA to suspend or withdraw the registration of a DNFBP, if it is in breach of the Law or the Rules or other AML legislation.
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Wednesday 3 October 2018
Aramco IPO delay a benefit for the country, says top banking executive
Aramco IPO delay a benefit for the country, says top banking executive:
The decision to delay the initial public offering of Saudi Aramco was a positive development for Saudi Arabia, one of the Kingdom’s leading financial advisers said yesterday.
Carmen Haddad, CEO of the Saudi business of American banking giant Citi, told a conference in Dubai that a takeover by Aramco of SABIC, the industrial conglomerate owned by the Public Investment Fund (PF), was a more rational option.
“The Aramco postponement is a benefit for the country, and the acquisition of SABIC makes more sense,” Haddad told the Citi Middle East Media Summit.
The decision to delay the initial public offering of Saudi Aramco was a positive development for Saudi Arabia, one of the Kingdom’s leading financial advisers said yesterday.
Carmen Haddad, CEO of the Saudi business of American banking giant Citi, told a conference in Dubai that a takeover by Aramco of SABIC, the industrial conglomerate owned by the Public Investment Fund (PF), was a more rational option.
“The Aramco postponement is a benefit for the country, and the acquisition of SABIC makes more sense,” Haddad told the Citi Middle East Media Summit.
QSE gains further, key index inching towards 9,900 levels
QSE gains further, key index inching towards 9,900 levels:
The Qatar Stock Exchange (QSE) gained for the second day, inching towards 9,900 levels mainly on the back of buying interests in transport, real estate and banking sectors.
Increased buying support from foreign institutions and lower net selling from the Gulf counterparts led the 20-stock Qatar Index gain 0.74% to 9,889.47 points.
The Islamic equities were seen gaining slower than the other indices in the market which is up 16.03% year-to-date.
The Qatar Stock Exchange (QSE) gained for the second day, inching towards 9,900 levels mainly on the back of buying interests in transport, real estate and banking sectors.
Increased buying support from foreign institutions and lower net selling from the Gulf counterparts led the 20-stock Qatar Index gain 0.74% to 9,889.47 points.
The Islamic equities were seen gaining slower than the other indices in the market which is up 16.03% year-to-date.
Iran's Oil Buyer and Rival, U.A.E. May Be Cracking Down on Trade - Bloomberg
Iran's Oil Buyer and Rival, U.A.E. May Be Cracking Down on Trade - Bloomberg:
The United Arab Emirates, which has a history of talking tough on Iran while still buying its oil, appears to be taking steps to comply with looming U.S. sanctions against the Islamic Republic’s energy industry.
Dubai is the U.A.E.’s main importer of Iranian oil. The country’s biggest city buys a light oil called condensate that’s produced in Iran’s natural gas fields and refines it into jet fuel and other products for local use. The U.A.E. port of Fujairah, the Middle East’s biggest oil-trading hub, provides storage for Iranian fuel oil that supplies vessels plying the Indian Ocean.
Both export streams may be at risk for Iran when U.S. sanctions take effect on Nov. 4. Condensate shipments to Dubai’s government-owned refiner Emirates National Oil Co. already dropped by half in September, according to Bloomberg tanker-tracking data. U.A.E. customs officials have started to require oil tankers docking at Fujairah’s fuel terminal to provide a certificate attesting to the origin of their cargoes, according to people with knowledge of the matter who asked not to be identified because the information is confidential.
The United Arab Emirates, which has a history of talking tough on Iran while still buying its oil, appears to be taking steps to comply with looming U.S. sanctions against the Islamic Republic’s energy industry.
Dubai is the U.A.E.’s main importer of Iranian oil. The country’s biggest city buys a light oil called condensate that’s produced in Iran’s natural gas fields and refines it into jet fuel and other products for local use. The U.A.E. port of Fujairah, the Middle East’s biggest oil-trading hub, provides storage for Iranian fuel oil that supplies vessels plying the Indian Ocean.
Both export streams may be at risk for Iran when U.S. sanctions take effect on Nov. 4. Condensate shipments to Dubai’s government-owned refiner Emirates National Oil Co. already dropped by half in September, according to Bloomberg tanker-tracking data. U.A.E. customs officials have started to require oil tankers docking at Fujairah’s fuel terminal to provide a certificate attesting to the origin of their cargoes, according to people with knowledge of the matter who asked not to be identified because the information is confidential.
Dubai's $36 billion Al Maktoum airport expansion put on hold: sources | Reuters
Dubai's $36 billion Al Maktoum airport expansion put on hold: sources | Reuters:
The expansion of Dubai’s second airport, Al Maktoum International, to handle 120 million passengers a year by 2025 has been delayed, according to sources familiar with the matter.
The airport, which opened to passenger traffic in 2013, aims to be one of the worlds’ biggest, but now only handles a fraction of Dubai’s passenger traffic.
Five sources told Reuters that the expansion had been delayed. They did not say why it was delayed or for how long. Two of the sources said the project was being redesigned.
The expansion of Dubai’s second airport, Al Maktoum International, to handle 120 million passengers a year by 2025 has been delayed, according to sources familiar with the matter.
The airport, which opened to passenger traffic in 2013, aims to be one of the worlds’ biggest, but now only handles a fraction of Dubai’s passenger traffic.
Five sources told Reuters that the expansion had been delayed. They did not say why it was delayed or for how long. Two of the sources said the project was being redesigned.
Exclusive: Saudi Arabia, Russia agreed in Sept to lift oil output, told U.S. | Reuters
Exclusive: Saudi Arabia, Russia agreed in Sept to lift oil output, told U.S. | Reuters:
Russia and Saudi Arabia struck a private deal in September to raise oil output to cool rising prices and informed the United States before a meeting in Algiers with other producers, four sources familiar with the plan said.
U.S. President Donald Trump has blamed the Organization of the Petroleum Exporting Countries (OPEC) for high crude prices and called on it to boost output to bring down fuel costs before the U.S. congressional elections on Nov. 6.
The deal underlines how Russia and Saudi Arabia are increasingly deciding oil output policies bilaterally, before consulting with the rest of OPEC.
Russia and Saudi Arabia struck a private deal in September to raise oil output to cool rising prices and informed the United States before a meeting in Algiers with other producers, four sources familiar with the plan said.
U.S. President Donald Trump has blamed the Organization of the Petroleum Exporting Countries (OPEC) for high crude prices and called on it to boost output to bring down fuel costs before the U.S. congressional elections on Nov. 6.
The deal underlines how Russia and Saudi Arabia are increasingly deciding oil output policies bilaterally, before consulting with the rest of OPEC.
Trade Bank of Iraq in talks to acquire a Gulf lender: chairman | Reuters
Trade Bank of Iraq in talks to acquire a Gulf lender: chairman | Reuters:
Trade Bank of Iraq (TBI) is in talks to buy a Gulf bank with branches in the United Arab Emirates and Qatar as part of a strategy to boost revenues outside its home market, its chairman said on Wednesday.
The talks are underway and the purchase is expected to be completed in six to eight months, Faisal al-Haimus told Reuters. He did not disclose the name of the bank.
The move comes after TBI said in August it had put on hold its plans to buy a commercial bank in Turkey due to the weak lira.
Trade Bank of Iraq (TBI) is in talks to buy a Gulf bank with branches in the United Arab Emirates and Qatar as part of a strategy to boost revenues outside its home market, its chairman said on Wednesday.
The talks are underway and the purchase is expected to be completed in six to eight months, Faisal al-Haimus told Reuters. He did not disclose the name of the bank.
The move comes after TBI said in August it had put on hold its plans to buy a commercial bank in Turkey due to the weak lira.
Saudi Arabia, UAE, Kuwait to sign agreement providing financial support to Jordan: KUNA | Reuters
Saudi Arabia, UAE, Kuwait to sign agreement providing financial support to Jordan: KUNA | Reuters:
The finance ministers of Saudi Arabia, Kuwait and the United Arab Emirates will sign on Thursday an agreement to provide credit guarantees and grants to Jordan, state-run Kuwait News Agency reported on Wednesday.
The agreement, which also provides for deposits by the Gulf Arab nations in the Jordanian central bank, will be signed in Amman, the agency said.
The three Gulf nations in June pledged $2.5 billion to help the Jordan implement austerity measures which had sparked massive protests.
The finance ministers of Saudi Arabia, Kuwait and the United Arab Emirates will sign on Thursday an agreement to provide credit guarantees and grants to Jordan, state-run Kuwait News Agency reported on Wednesday.
The agreement, which also provides for deposits by the Gulf Arab nations in the Jordanian central bank, will be signed in Amman, the agency said.
The three Gulf nations in June pledged $2.5 billion to help the Jordan implement austerity measures which had sparked massive protests.
Saudi Arabia plans oil output hike in October, November: Falih | Reuters
Saudi Arabia plans oil output hike in October, November: Falih | Reuters:
Saudi Arabia plans to raise oil production in November from an October output level of 10.7 million barrels per day (bpd) to meet rising crude demand, the energy minister of the world’s top exporter said on Wednesday.
Khalid al-Falih told a conference in Moscow attended by Russian President Vladimir Putin that the kingdom was in weekly communication with Russia to stabilize global oil markets, which touched a four-year high above $85 a barrel this week.
Saudi Arabia plans to raise oil production in November from an October output level of 10.7 million barrels per day (bpd) to meet rising crude demand, the energy minister of the world’s top exporter said on Wednesday.
Khalid al-Falih told a conference in Moscow attended by Russian President Vladimir Putin that the kingdom was in weekly communication with Russia to stabilize global oil markets, which touched a four-year high above $85 a barrel this week.
Brent crude at highest since October 2014, Iran sanctions drive buying | Reuters
Brent crude at highest since October 2014, Iran sanctions drive buying | Reuters:
Brent crude rose to a four-year high on Wednesday, as the market focused on upcoming U.S. sanctions on Iran while shrugging off the year’s largest weekly build in U.S. crude stockpiles and reports of higher Saudi Arabian and Russian production.
“Nothing matters between here and Nov. 4,” said Bob Yawger, director of futures at Mizuho in New York, referring to the date when U.S. sanctions take full effect. “You just had the biggest build this year, and the market rallied right through it.”
Brent crude LCOc1 rose $1.81 to $86.60 a barrel by 1:40 p.m. EDT (1740 GMT), touching a high of $86.74 a barrel, the most since Oct. 30, 2014. U.S. crude CLc1 was up $1.50 at $76.73 a barrel.
Brent crude rose to a four-year high on Wednesday, as the market focused on upcoming U.S. sanctions on Iran while shrugging off the year’s largest weekly build in U.S. crude stockpiles and reports of higher Saudi Arabian and Russian production.
“Nothing matters between here and Nov. 4,” said Bob Yawger, director of futures at Mizuho in New York, referring to the date when U.S. sanctions take full effect. “You just had the biggest build this year, and the market rallied right through it.”
Brent crude LCOc1 rose $1.81 to $86.60 a barrel by 1:40 p.m. EDT (1740 GMT), touching a high of $86.74 a barrel, the most since Oct. 30, 2014. U.S. crude CLc1 was up $1.50 at $76.73 a barrel.
MIDEAST STOCKS-Most Gulf markets inch up, Egypt slips on emerging market slump | Reuters
MIDEAST STOCKS-Most Gulf markets inch up, Egypt slips on emerging market slump | Reuters:
Most major Middle Eastern stock markets rose modestly on Wednesday, while real estate stocks continued to weigh on Dubai and Egypt’s blue-chip index reflected emerging market worries.
The Dubai index closed 0.8 percent lower, pressured by real estate and bank stocks. All six real estate stocks fell while Emirates NBD, the biggest lender, was the main drag on the index, shedding 2.1 percent.
DAMAC Properties fell 2.4 percent after saying it expects Dubai’s real estate market to face another few quarters of “soft market conditions” before starting to rebound from late 2019.
Most major Middle Eastern stock markets rose modestly on Wednesday, while real estate stocks continued to weigh on Dubai and Egypt’s blue-chip index reflected emerging market worries.
The Dubai index closed 0.8 percent lower, pressured by real estate and bank stocks. All six real estate stocks fell while Emirates NBD, the biggest lender, was the main drag on the index, shedding 2.1 percent.
DAMAC Properties fell 2.4 percent after saying it expects Dubai’s real estate market to face another few quarters of “soft market conditions” before starting to rebound from late 2019.
Can Russia stop using the US dollar? | Financial Times
Can Russia stop using the US dollar? | Financial Times:
President Vladimir Putin’s government says it is working on plans to de-dollarise Russia’s $1.6tn economy and wean its biggest industries off the US currency, following four years of US sanctions against the country and its expectation of new restrictions.
The US Senate is considering proposals, aimed at penalising Russia for alleged US election interference and international aggression, that would in essence cut off Russia’s biggest banks from the dollar and deny Moscow access to foreign debt markets.
US sanctions have in effect have barred Russia’s defence industry and some of its largest corporate groups from using the greenback, and have dramatically reduced the ability of the country’s big oil and gas players to borrow in dollars.
President Vladimir Putin’s government says it is working on plans to de-dollarise Russia’s $1.6tn economy and wean its biggest industries off the US currency, following four years of US sanctions against the country and its expectation of new restrictions.
The US Senate is considering proposals, aimed at penalising Russia for alleged US election interference and international aggression, that would in essence cut off Russia’s biggest banks from the dollar and deny Moscow access to foreign debt markets.
US sanctions have in effect have barred Russia’s defence industry and some of its largest corporate groups from using the greenback, and have dramatically reduced the ability of the country’s big oil and gas players to borrow in dollars.
Saudi Petrochemical Producers Sign $2.2 Billion Merger Agreement - Bloomberg
Saudi Petrochemical Producers Sign $2.2 Billion Merger Agreement - Bloomberg:
Saudi International Petrochemical Co. signed a non-binding agreement to acquire Sahara Petrochemical Co. in an all-share deal valued at just over $2 billion.
Saudi International Petrochemical Co., or Sipchem, will issue each Sahara shareholder with 0.8356 new Sipchem shares, the companies said in statements Wednesday. The deal is valued at about $2.2 billion, according to Tuesday’s closing price. Shareholders of the companies would each own 50 percent of Sipchem stock.
The agreement comes four years after the companies put a tie-up on hold, saying it was difficult to proceed with the merger using a structure acceptable to both sides under the regulatory framework at the time. Since then Saudi Arabia’s Capital Market Authority has introduced new rules intended to facilitate mergers and acquisitions.
Saudi International Petrochemical Co. signed a non-binding agreement to acquire Sahara Petrochemical Co. in an all-share deal valued at just over $2 billion.
Saudi International Petrochemical Co., or Sipchem, will issue each Sahara shareholder with 0.8356 new Sipchem shares, the companies said in statements Wednesday. The deal is valued at about $2.2 billion, according to Tuesday’s closing price. Shareholders of the companies would each own 50 percent of Sipchem stock.
The agreement comes four years after the companies put a tie-up on hold, saying it was difficult to proceed with the merger using a structure acceptable to both sides under the regulatory framework at the time. Since then Saudi Arabia’s Capital Market Authority has introduced new rules intended to facilitate mergers and acquisitions.
Oil Steady Near 4-Year High as Supply Fears Counter Stock Build - Bloomberg
Oil Steady Near 4-Year High as Supply Fears Counter Stock Build - Bloomberg:
Oil steadied near the highest level in almost four years as fears of a supply crunch outweighed expectations for an increase in American crude inventories.
Futures were trading around $75.50 a barrel in New York, up around 0.4 percent. Supply losses from Iran to Venezuela continued to rattle markets, boosting volatility and driving prices higher. The ongoing outlook for a tightening of crude markets overshadowed forecasts for a second weekly gain in U.S. stockpiles.
Crude has gained more than 20 percent this year on growing concerns that OPEC and its allies can’t pump enough crude to offset losses from American sanctions on Iranian oil. The Persian Gulf state’s exports appear to have declined by more than the market expected, with South Korea, Japan and India already shunning supplies before the sanctions due Nov. 4.
Oil steadied near the highest level in almost four years as fears of a supply crunch outweighed expectations for an increase in American crude inventories.
Futures were trading around $75.50 a barrel in New York, up around 0.4 percent. Supply losses from Iran to Venezuela continued to rattle markets, boosting volatility and driving prices higher. The ongoing outlook for a tightening of crude markets overshadowed forecasts for a second weekly gain in U.S. stockpiles.
Crude has gained more than 20 percent this year on growing concerns that OPEC and its allies can’t pump enough crude to offset losses from American sanctions on Iranian oil. The Persian Gulf state’s exports appear to have declined by more than the market expected, with South Korea, Japan and India already shunning supplies before the sanctions due Nov. 4.
Mideast Stocks: Banks boost Qatar, real estate weighs on Dubai | ZAWYA MENA Edition
Mideast Stocks: Banks boost Qatar, real estate weighs on Dubai | ZAWYA MENA Edition:
Most Gulf markets opened little changed on Wednesday as real estate stocks continued to pressure Dubai and banks propped up Qatar's index.
In Dubai, five out of 6 real estate stocks fell, sending the main index down 0.4 percent. Emaar Properties shed 0.8 percent while DAMAC Properties fell 1.5 percent after saying it expects Dubai's real estate market to face another few quarters of "soft market conditions" before starting to rebound from late 2019.
Construction firm Drake & Scull continued to surge, adding 3.6 percent in heavy trade ahead of its shareholder meeting this Thursday, which is expected to discuss ways to strengthen the company.
Most Gulf markets opened little changed on Wednesday as real estate stocks continued to pressure Dubai and banks propped up Qatar's index.
In Dubai, five out of 6 real estate stocks fell, sending the main index down 0.4 percent. Emaar Properties shed 0.8 percent while DAMAC Properties fell 1.5 percent after saying it expects Dubai's real estate market to face another few quarters of "soft market conditions" before starting to rebound from late 2019.
Construction firm Drake & Scull continued to surge, adding 3.6 percent in heavy trade ahead of its shareholder meeting this Thursday, which is expected to discuss ways to strengthen the company.
Build it and they will buy. The new world of LNG Canada: Russell | Reuters
Build it and they will buy. The new world of LNG Canada: Russell | Reuters:
The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of “she’ll be right, mate.”
The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell, which is leading the $31 billion venture along with partners Petronas, Mitsubishi, PetroChina and Korea Gas.
What makes the first export plant on Canada’s west coast different to the last wave of LNG projects is that it isn’t underpinned by long-term sales contracts.
The first major liquefied natural gas (LNG) project to be approved globally in five years will be built in Canada, but its underlying philosophy appears to be more closely allied to the Australian concept of “she’ll be right, mate.”
The LNG Canada project was given the green light on Tuesday by Royal Dutch Shell, which is leading the $31 billion venture along with partners Petronas, Mitsubishi, PetroChina and Korea Gas.
What makes the first export plant on Canada’s west coast different to the last wave of LNG projects is that it isn’t underpinned by long-term sales contracts.
Russian gas exports to boom despite U.S. pressure and rivalry | Reuters
Russian gas exports to boom despite U.S. pressure and rivalry | Reuters:
Russia is setting records in gas pipeline exports despite U.S. pressure on Europe to reduce imports, and aims to become the world’s leading liquefied gas exporter in the next decade thanks to technology it is developing at home.
Russian government officials and executives told an industry conference on Wednesday they expect Russia export a record amount of gas this year, potentially exceeding 200 billion cubic metres (bcm) and beating last year’s all-time high of 194 bcm.
Russia is setting records in gas pipeline exports despite U.S. pressure on Europe to reduce imports, and aims to become the world’s leading liquefied gas exporter in the next decade thanks to technology it is developing at home.
Russian government officials and executives told an industry conference on Wednesday they expect Russia export a record amount of gas this year, potentially exceeding 200 billion cubic metres (bcm) and beating last year’s all-time high of 194 bcm.