SCA to issue new regulations on bonds, sukuk | GulfNews.com:
The UAE’s capital markets regulator will issue new regulations on bonds, sukuk and securitisation in the first half of next year, Obaid Al Za’abi, chief executive officer of the Securities and Commodities Authority (SCA), said in Abu Dhabi on Monday.
“We will put solid requirements on sukuk issuance. Also the governance laws will be local laws. They should comply with the local laws, not the common English laws or the other foreign laws,” he said while speaking to reporters on the sidelines of an event organised by the SCA on Monday.
The authority also has submitted proposals to the competent authorities to scrap the maximum cap set for the sale of shares by shareholders when companies convert to joint-stock businesses.
Monday, 8 October 2018
Saudi Aramco, Total sign agreement for giant petrochemicals complex in Jubail
Saudi Aramco, Total sign agreement for giant petrochemicals complex in Jubail:
Saudi Aramco and Total signed on Monday a joint development agreement for a giant petrochemical complex in the Kingdom’s Jubail Industrial City.
President and CEO of Saudi Aramco, Amin H. Nasser, and the CEO of Total, Jean Pouyanné, have signed the agreement in Dhahran to build the world-class complex announced last April.
The site will be located next to the cutting edge SATORP refinery and will be joint operated by Saudi Aramco and Total.
Saudi Aramco and Total signed on Monday a joint development agreement for a giant petrochemical complex in the Kingdom’s Jubail Industrial City.
President and CEO of Saudi Aramco, Amin H. Nasser, and the CEO of Total, Jean Pouyanné, have signed the agreement in Dhahran to build the world-class complex announced last April.
The site will be located next to the cutting edge SATORP refinery and will be joint operated by Saudi Aramco and Total.
Doha Bank seeks to maintain ‘stable loan-deposit ratio’
Doha Bank seeks to maintain ‘stable loan-deposit ratio’:
Doha Bank seeks to maintain a stable loan-to-deposit ratio even as its lending remains relatively stable of late, according to Group CEO Dr R Seetharaman.
“Doha Bank’s lending has been relatively stable of late, although we are currently reviewing a number of potential assets. Whilst any growth on the asset side of the balance sheet can be accommodated from existing Qatari riyal funds, the bank seeks to maintain a stable loan to deposit ratio,” Seetharaman said in an interview with Gulf Times.
“Hence, as the asset side of the balance sheet adjusts, we look to adjust the liability side as well. Given the improving fundamentals of the market, these adjustments can be accommodated,” he said.
Doha Bank seeks to maintain a stable loan-to-deposit ratio even as its lending remains relatively stable of late, according to Group CEO Dr R Seetharaman.
“Doha Bank’s lending has been relatively stable of late, although we are currently reviewing a number of potential assets. Whilst any growth on the asset side of the balance sheet can be accommodated from existing Qatari riyal funds, the bank seeks to maintain a stable loan to deposit ratio,” Seetharaman said in an interview with Gulf Times.
“Hence, as the asset side of the balance sheet adjusts, we look to adjust the liability side as well. Given the improving fundamentals of the market, these adjustments can be accommodated,” he said.
Etihad is said to face investor challenge on bond commitment
Etihad is said to face investor challenge on bond commitment:
A group of creditors to entities set up to finance affiliates of Etihad Airways said in a letter to the airline they were misled on its commitments to support part-owned carriers, two of which are now insolvent, a person familiar with the matter said.
The investors say they bought bonds issued by EA Partners between 2015 and 2016 after Etihad implied it would back the affiliates including struggling carriers Alitalia and Air Berlin, according to the person, who asked not to be identified because it’s private.
The group, represented by law firm Dechert, have sent a letter to Etihad asking to discuss the matter with its management and Abu Dhabi’s Department of Finance, the person said.
A group of creditors to entities set up to finance affiliates of Etihad Airways said in a letter to the airline they were misled on its commitments to support part-owned carriers, two of which are now insolvent, a person familiar with the matter said.
The investors say they bought bonds issued by EA Partners between 2015 and 2016 after Etihad implied it would back the affiliates including struggling carriers Alitalia and Air Berlin, according to the person, who asked not to be identified because it’s private.
The group, represented by law firm Dechert, have sent a letter to Etihad asking to discuss the matter with its management and Abu Dhabi’s Department of Finance, the person said.
Etihad is said to face investor challenge on bond commitment
Etihad is said to face investor challenge on bond commitment:
A group of creditors to entities set up to finance affiliates of Etihad Airways said in a letter to the airline they were misled on its commitments to support part-owned carriers, two of which are now insolvent, a person familiar with the matter said.
The investors say they bought bonds issued by EA Partners between 2015 and 2016 after Etihad implied it would back the affiliates including struggling carriers Alitalia and Air Berlin, according to the person, who asked not to be identified because it’s private.
The group, represented by law firm Dechert, have sent a letter to Etihad asking to discuss the matter with its management and Abu Dhabi’s Department of Finance, the person said.
A group of creditors to entities set up to finance affiliates of Etihad Airways said in a letter to the airline they were misled on its commitments to support part-owned carriers, two of which are now insolvent, a person familiar with the matter said.
The investors say they bought bonds issued by EA Partners between 2015 and 2016 after Etihad implied it would back the affiliates including struggling carriers Alitalia and Air Berlin, according to the person, who asked not to be identified because it’s private.
The group, represented by law firm Dechert, have sent a letter to Etihad asking to discuss the matter with its management and Abu Dhabi’s Department of Finance, the person said.
Andurand's Oil Hedge Fund Gains 15% in Best Month in Four Years - Bloomberg
Andurand's Oil Hedge Fund Gains 15% in Best Month in Four Years - Bloomberg:
Pierre Andurand, one of the most bullish oil investors, recorded the best monthly gain in his hedge fund in almost four years and erased 2018 losses as crude prices surged in September.
The $1.2 billion Andurand Commodities Master Fund gained 14.7 percent last month, the most since December 2014, according to a letter to investors seen by Bloomberg. That boosted the return for this year to 11.3 percent. A spokesman for the London-based money manager declined to comment.
Andurand benefited from a surge in energy prices in late September that took oil to above $80 a barrel. Major oil trading houses predicted that Brent, the global oil benchmark, was likely to hit $100 a barrel in late 2018 or early 2019.
Pierre Andurand, one of the most bullish oil investors, recorded the best monthly gain in his hedge fund in almost four years and erased 2018 losses as crude prices surged in September.
The $1.2 billion Andurand Commodities Master Fund gained 14.7 percent last month, the most since December 2014, according to a letter to investors seen by Bloomberg. That boosted the return for this year to 11.3 percent. A spokesman for the London-based money manager declined to comment.
Andurand benefited from a surge in energy prices in late September that took oil to above $80 a barrel. Major oil trading houses predicted that Brent, the global oil benchmark, was likely to hit $100 a barrel in late 2018 or early 2019.
Airbus’s Emirates Deal to Save A380 Jumbo Is Said to Stall - Bloomberg
Airbus’s Emirates Deal to Save A380 Jumbo Is Said to Stall - Bloomberg:
Airbus SE’s latest order for the A380 superjumbo has reached an impasse amid drawn-out talks involving the engines, according to people familiar with the matter, possibly imperiling a crucial deal seen as a life-saver for the giant aircraft.
The $16 billion accord for as many as 36 additional double-decker aircraft has hit a snag as Emirates negotiates with Rolls-Royce Holdings Plc on price and fuel burn on an engine that’s already falling short of performance parameters, said the people, who asked not to be named discussing confidential information. The companies have missed a deadline to select the engines, possibly delaying first delivery in 2020 -- and even threatening the deal outright.
Emirates, the A380’s only major customer, came to the rescue in January, signing on for more after months of tense back-and-forth. The Dubai carrier accounts for about half the total order book, having switched to Rolls-Royce as its engine provider a few years ago after using a joint venture between General Electric Co. and Pratt & Whitney on the first batch of the aircraft.
Airbus SE’s latest order for the A380 superjumbo has reached an impasse amid drawn-out talks involving the engines, according to people familiar with the matter, possibly imperiling a crucial deal seen as a life-saver for the giant aircraft.
The $16 billion accord for as many as 36 additional double-decker aircraft has hit a snag as Emirates negotiates with Rolls-Royce Holdings Plc on price and fuel burn on an engine that’s already falling short of performance parameters, said the people, who asked not to be named discussing confidential information. The companies have missed a deadline to select the engines, possibly delaying first delivery in 2020 -- and even threatening the deal outright.
Emirates, the A380’s only major customer, came to the rescue in January, signing on for more after months of tense back-and-forth. The Dubai carrier accounts for about half the total order book, having switched to Rolls-Royce as its engine provider a few years ago after using a joint venture between General Electric Co. and Pratt & Whitney on the first batch of the aircraft.
Bin Salman's $2 Trillion Saudi Aramco IPO Vow Still Unrealistic - Bloomberg
Bin Salman's $2 Trillion Saudi Aramco IPO Vow Still Unrealistic - Bloomberg:
Friday’s news that Saudi Arabia’s crown prince vows a $2 trillion IPO of Saudi Aramco within a few years may provoke a sense of déjà vu. It’s essentially the same headline that flashed around the world in early 2016, when he first raised the idea. Back then, it provoked a reaction of “Wow! Really?” Now it’s more “Huh. Really?”
Prince Mohammed Bin Salman reaffirmed plans for the biggest-ever IPO, and talked about much else besides, in a Bloomberg News interview late last week. Might it actually happen in “late 2020, early 2021,” as he now says? Maybe, but we’ve gone through a few deadlines already for the debut of Saudi Arabian Oil Co. (to give it its full name).
The prince’s rationale for this delay — that Aramco must first acquire the state’s majority stake in petrochemicals producer Saudi Basic Industries Corp. — seems contrived. Aramco’s valuation is tied overwhelmingly to the value of its upstream business. There is some industrial logic to combining this with Sabic’s downstream operations, though consolidating the country’s industrial assets even further under Aramco runs counter to the prince’s objective of making the economy more competitive. But Sabic’s market capitalization of $100 billion is just 5 percent of the $2 trillion valuation the prince still assigns to Aramco. Even assuming wildly valuable synergies, the idea that absorbing Sabic is critical to the oil giant’s IPO isn’t credible.
Friday’s news that Saudi Arabia’s crown prince vows a $2 trillion IPO of Saudi Aramco within a few years may provoke a sense of déjà vu. It’s essentially the same headline that flashed around the world in early 2016, when he first raised the idea. Back then, it provoked a reaction of “Wow! Really?” Now it’s more “Huh. Really?”
Prince Mohammed Bin Salman reaffirmed plans for the biggest-ever IPO, and talked about much else besides, in a Bloomberg News interview late last week. Might it actually happen in “late 2020, early 2021,” as he now says? Maybe, but we’ve gone through a few deadlines already for the debut of Saudi Arabian Oil Co. (to give it its full name).
The prince’s rationale for this delay — that Aramco must first acquire the state’s majority stake in petrochemicals producer Saudi Basic Industries Corp. — seems contrived. Aramco’s valuation is tied overwhelmingly to the value of its upstream business. There is some industrial logic to combining this with Sabic’s downstream operations, though consolidating the country’s industrial assets even further under Aramco runs counter to the prince’s objective of making the economy more competitive. But Sabic’s market capitalization of $100 billion is just 5 percent of the $2 trillion valuation the prince still assigns to Aramco. Even assuming wildly valuable synergies, the idea that absorbing Sabic is critical to the oil giant’s IPO isn’t credible.
#Qatar Sets Aside $2 Billion in Bid to Rival Dubai Financial Hub - Bloomberg
Qatar Sets Aside $2 Billion in Bid to Rival Dubai Financial Hub - Bloomberg:
Qatar has allocated $2 billion to attract multi-national companies to its financial center in its latest effort to rival Dubai.
Companies that set up a hub in Doha will be provided free offices and tax incentives as well as seed capital to cover five years of operating expenses in return for a commitment of at least a decade, Yousuf Al Jaida, chief executive officer of the Qatar Financial Centre Authority, told Bloomberg TV. Qatar’s financial hub is targeting to launch the incentive plan in the first quarter once all the governance structures have been put in place.
“It’s there, ready to be tapped, sitting in a bank account under government supervision,” he said. “We expect every single QFC company to have full access to government tenders and have unlimited access to the local market be it corporate and retail.”
Qatar has allocated $2 billion to attract multi-national companies to its financial center in its latest effort to rival Dubai.
Companies that set up a hub in Doha will be provided free offices and tax incentives as well as seed capital to cover five years of operating expenses in return for a commitment of at least a decade, Yousuf Al Jaida, chief executive officer of the Qatar Financial Centre Authority, told Bloomberg TV. Qatar’s financial hub is targeting to launch the incentive plan in the first quarter once all the governance structures have been put in place.
“It’s there, ready to be tapped, sitting in a bank account under government supervision,” he said. “We expect every single QFC company to have full access to government tenders and have unlimited access to the local market be it corporate and retail.”
Dubai's DMCC to launch coffee centre in November | ZAWYA MENA Edition
Dubai's DMCC to launch coffee centre in November | ZAWYA MENA Edition:
The Dubai Multi Commodities Centre (DMCC) will next month launch a centre to handle shipments of coffee from Latin America, China, Africa and Greece, executive chairman Ahmed Bin Sulayem said on Monday.
"We are looking to launch the Coffee Centre in November. It is ready and built. We are just waiting for the certification to go ahead," Sulayem told Reuters.
The centre, near Dubai's Jebel Ali port, is a temperature-controlled facility offering infrastructure and services for green bean storage and processing and delivery of coffee.
The Dubai Multi Commodities Centre (DMCC) will next month launch a centre to handle shipments of coffee from Latin America, China, Africa and Greece, executive chairman Ahmed Bin Sulayem said on Monday.
"We are looking to launch the Coffee Centre in November. It is ready and built. We are just waiting for the certification to go ahead," Sulayem told Reuters.
The centre, near Dubai's Jebel Ali port, is a temperature-controlled facility offering infrastructure and services for green bean storage and processing and delivery of coffee.
London-based offshore driller Ensco to buy Rowan in $2.38bln deal | ZAWYA MENA Edition
London-based offshore driller Ensco to buy Rowan in $2.38bln deal | ZAWYA MENA Edition:
Offshore driller Ensco Plc said on Monday it plans to buy smaller rival Rowan Cos Plc in an all-stock deal valued at $2.38 billion, as it looks to expand its fleet and benefit from a partnership with Saudi Aramco.
This is Ensco's second deal since OPEC-led efforts boosted oil prices in the second half of 2016. Ensco bought rival Atwood Oceanics in a similar deal last year.
Rowan shareholders will receive Ensco shares for each share held. Following the close of the deal, Ensco shareholders will own 60.5 percent of the combined company.
Offshore driller Ensco Plc said on Monday it plans to buy smaller rival Rowan Cos Plc in an all-stock deal valued at $2.38 billion, as it looks to expand its fleet and benefit from a partnership with Saudi Aramco.
This is Ensco's second deal since OPEC-led efforts boosted oil prices in the second half of 2016. Ensco bought rival Atwood Oceanics in a similar deal last year.
Rowan shareholders will receive Ensco shares for each share held. Following the close of the deal, Ensco shareholders will own 60.5 percent of the combined company.
Abraaj's stake in $1 bln healthcare fund to be split among other investors - sources | Reuters
Abraaj's stake in $1 bln healthcare fund to be split among other investors - sources | Reuters:
AlixPartners, the interim manager of Abraaj’s $1 billion healthcare fund, has decided to redistribute the troubled private equity firm’s stake in the fund to its other investors, sources familiar with the matter said.
The move reflects a desire by some of the fund’s other investors to sever ties with Dubai-based Abraaj ahead of TPG taking over the management of the fund, said the sources.
However, it has prompted local banks whose loans to Abraaj were secured against the stake in the fund to consider legal action against AlixPartners, as the decision leaves them facing the prospect of no returns, the sources added.
AlixPartners, the interim manager of Abraaj’s $1 billion healthcare fund, has decided to redistribute the troubled private equity firm’s stake in the fund to its other investors, sources familiar with the matter said.
The move reflects a desire by some of the fund’s other investors to sever ties with Dubai-based Abraaj ahead of TPG taking over the management of the fund, said the sources.
However, it has prompted local banks whose loans to Abraaj were secured against the stake in the fund to consider legal action against AlixPartners, as the decision leaves them facing the prospect of no returns, the sources added.
Eni to acquire half of BP's Libya oil and gas assets | Reuters
Eni to acquire half of BP's Libya oil and gas assets | Reuters:
Italy’s Eni has agreed to buy half of BP’s 85 percent stake in a Libyan oil and gas license with the aim of resuming exploration next year, the companies said on Monday.
Eni will acquire the 42.5 percent stake and become the operator of the exploration and production sharing agreement (EPSA) in Libya, in which the Libyan Investment Authority holds the remaining 15 percent, the companies said in a statement.
The companies, along with state-owned National Oil Corp (NOC), signed a letter of intent in London on Monday paving the way for the final deal. They did not disclose financial terms of the transaction.
Italy’s Eni has agreed to buy half of BP’s 85 percent stake in a Libyan oil and gas license with the aim of resuming exploration next year, the companies said on Monday.
Eni will acquire the 42.5 percent stake and become the operator of the exploration and production sharing agreement (EPSA) in Libya, in which the Libyan Investment Authority holds the remaining 15 percent, the companies said in a statement.
The companies, along with state-owned National Oil Corp (NOC), signed a letter of intent in London on Monday paving the way for the final deal. They did not disclose financial terms of the transaction.
QNB's dollar liquidity excellent, has no funding need, CEO says | Reuters
QNB's dollar liquidity excellent, has no funding need, CEO says | Reuters:
Qatar National Bank’s U.S. dollar liquidity is “excellent” and the bank has no funding need at the moment, the bank’s chief executive told Reuters.
“We’re not in need of funding right now but once we see an opportunity we’ll tap the market,” said Ali Ahmed al-Kuwari.
QNB, the largest bank by assets in the Middle East and Africa, is in talks to refinance a 2.25 billion euro loan due in May next year, sources told Reuters last month.
Qatar National Bank’s U.S. dollar liquidity is “excellent” and the bank has no funding need at the moment, the bank’s chief executive told Reuters.
“We’re not in need of funding right now but once we see an opportunity we’ll tap the market,” said Ali Ahmed al-Kuwari.
QNB, the largest bank by assets in the Middle East and Africa, is in talks to refinance a 2.25 billion euro loan due in May next year, sources told Reuters last month.
UAE investment law to apply selectively, won't hurt locals -officials | Reuters
UAE investment law to apply selectively, won't hurt locals -officials | Reuters:
A new law allowing 100 percent foreign ownership of companies in the United Arab Emirates will only apply to some sectors of the economy, limiting the risk that it could disrupt existing business, Dubai investment officials told Reuters.
The UAE cabinet, chaired by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum, said in May that it would permit 100 percent foreign ownership of some UAE-based businesses, up from the current 49 percent limit, by the end of 2018.
Few details of the law have been revealed so far. But Raed Safadi, chief economic advisor at Dubai’s Department of Economic Development, said on Monday that it would only apply to “strategic sectors” of the economy.
A new law allowing 100 percent foreign ownership of companies in the United Arab Emirates will only apply to some sectors of the economy, limiting the risk that it could disrupt existing business, Dubai investment officials told Reuters.
The UAE cabinet, chaired by Dubai ruler Sheikh Mohammed bin Rashid al-Maktoum, said in May that it would permit 100 percent foreign ownership of some UAE-based businesses, up from the current 49 percent limit, by the end of 2018.
Few details of the law have been revealed so far. But Raed Safadi, chief economic advisor at Dubai’s Department of Economic Development, said on Monday that it would only apply to “strategic sectors” of the economy.
Qatar Airways considers fuel surcharge to help return to profit | Reuters
Qatar Airways considers fuel surcharge to help return to profit | Reuters:
Qatar Airways may consider a fuel surcharge on tickets to help it return to profit amid a regional dispute and rising oil prices, Chief Executive Akbar al-Baker told Reuters on Monday.
Qatar Airways reported last month a 252 million riyal ($69 million) loss for the financial year ended March 31, citing a political dispute that has seen it banned from four Arab countries, and has suggested it could make a loss again.
Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Bahrain have all banned Qatar Airways since June 2017 as part of a dispute they have with the government of Qatar.
Qatar Airways may consider a fuel surcharge on tickets to help it return to profit amid a regional dispute and rising oil prices, Chief Executive Akbar al-Baker told Reuters on Monday.
Qatar Airways reported last month a 252 million riyal ($69 million) loss for the financial year ended March 31, citing a political dispute that has seen it banned from four Arab countries, and has suggested it could make a loss again.
Saudi Arabia, the United Arab Emirates (UAE), Egypt, and Bahrain have all banned Qatar Airways since June 2017 as part of a dispute they have with the government of Qatar.
UAE plans initial coin offerings to boost capital markets - regulator | Reuters
UAE plans initial coin offerings to boost capital markets - regulator | Reuters:
The United Arab Emirates plans to introduce initial coin offerings (ICOs) next year to provide companies with a fresh way to raise money, the head of the securities regulator said on Monday.
In ICOs, companies issue cryptocurrency tokens to investors, in much the same way as they issue shares in an initial public offer of equity.
“The board of the Emirates Securities & Commodities Authority has approved considering ICOs as securities. As per our plan we should have regulations on the ground in the first half of 2019,” Obaid Saif al-Zaabi told a seminar.
The United Arab Emirates plans to introduce initial coin offerings (ICOs) next year to provide companies with a fresh way to raise money, the head of the securities regulator said on Monday.
In ICOs, companies issue cryptocurrency tokens to investors, in much the same way as they issue shares in an initial public offer of equity.
“The board of the Emirates Securities & Commodities Authority has approved considering ICOs as securities. As per our plan we should have regulations on the ground in the first half of 2019,” Obaid Saif al-Zaabi told a seminar.
MIDEAST STOCKS-Egypt sinks to 12-month low as margin calls weigh | Reuters
MIDEAST STOCKS-Egypt sinks to 12-month low as margin calls weigh | Reuters:
Egypt’s blue-chip stock index plunged 3.6 percent on Monday to its lowest level in 12 months, dragged down by weakness in emerging markets and margin calls among local investors, while banking shares boosted Saudi Arabia.
Twenty-nine of 30 stocks in the Egyptian index fell. It has fallen 15 percent since the end of August, leaving it down 9.4 percent year-to-date. The broader EGX100 index fared better on Monday, losing only 1.9 percent.
Egypt’s market far underperformed the MSCI index of emerging market stocks, which was down nearly 1 percent. Among big blue-chip losers were tobacco firm Eastern Co, down 4.9 percent.
Egypt’s blue-chip stock index plunged 3.6 percent on Monday to its lowest level in 12 months, dragged down by weakness in emerging markets and margin calls among local investors, while banking shares boosted Saudi Arabia.
Twenty-nine of 30 stocks in the Egyptian index fell. It has fallen 15 percent since the end of August, leaving it down 9.4 percent year-to-date. The broader EGX100 index fared better on Monday, losing only 1.9 percent.
Egypt’s market far underperformed the MSCI index of emerging market stocks, which was down nearly 1 percent. Among big blue-chip losers were tobacco firm Eastern Co, down 4.9 percent.
Blackstone launches Africa-Middle East power venture | Financial Times
Blackstone launches Africa-Middle East power venture | Financial Times:
Blackstone, the world's largest buyout group, is launching a standalone company to invest “hundreds of millions of dollars” in renewable power assets in the Middle East and north Africa, said people familiar with the plans.
The new business, named Zarou after an ancient bridge built on the River Nile to connect Africa and Asia, aims to tap into rising electricity demand in the region by buying and developing renewable and thermal power generation.
The projects’ enterprise value, a measure that includes net debt, could be in the billions of dollars, the people familiar with the venture said. “There is plenty of appetite.” Zarou will also invest in oil and gas assets and water infrastructure.
Blackstone, the world's largest buyout group, is launching a standalone company to invest “hundreds of millions of dollars” in renewable power assets in the Middle East and north Africa, said people familiar with the plans.
The new business, named Zarou after an ancient bridge built on the River Nile to connect Africa and Asia, aims to tap into rising electricity demand in the region by buying and developing renewable and thermal power generation.
The projects’ enterprise value, a measure that includes net debt, could be in the billions of dollars, the people familiar with the venture said. “There is plenty of appetite.” Zarou will also invest in oil and gas assets and water infrastructure.
What Two Years of IPO Drama Reveals About Saudi Arabia's Future - Bloomberg
What Two Years of IPO Drama Reveals About Saudi Arabia's Future - Bloomberg:
Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.
A little over two years ago, Saudi Arabia revealed plans to IPO part of its huge state-owned national oil company, Saudi Aramco. With a potential valuation of $2 trillion dollars, the listing would have been the largest in history and a centerpiece of the Kingdom's efforts to reduce its reliance on oil income and open its economy to the wider world. But in recent weeks, there've been reports that the IPO has been put on ice. So what does this mean for Saudi Arabia's future? On this edition of Odd Lots, we speak to Ayham Kamel, head of Middle East and North Africa Research at Eurasia Group, about all things Saudi.
Every week, hosts Joe Weisenthal and Tracy Alloway take you on a not-so-random walk through hot topics in markets, finance and economics.
A little over two years ago, Saudi Arabia revealed plans to IPO part of its huge state-owned national oil company, Saudi Aramco. With a potential valuation of $2 trillion dollars, the listing would have been the largest in history and a centerpiece of the Kingdom's efforts to reduce its reliance on oil income and open its economy to the wider world. But in recent weeks, there've been reports that the IPO has been put on ice. So what does this mean for Saudi Arabia's future? On this edition of Odd Lots, we speak to Ayham Kamel, head of Middle East and North Africa Research at Eurasia Group, about all things Saudi.
Saudi Crown Prince's 2021 Aramco IPO Deadline Is a Daunting Test - Bloomberg
Saudi Crown Prince's 2021 Aramco IPO Deadline Is a Daunting Test - Bloomberg:
One of the biggest-ever mergers in the oil industry. The largest corporate bond sale on record. The most lucrative initial public offering in "human history." The timetable: two and a half years.
After a summer when the IPO of Saudi Arabia’s state oil-giant Aramco appeared set for semi-permanent limbo, Crown Prince Mohammed bin Salman has not only revived it, but imposed a schedule for achieving a series of deals that would test any management team.
The 33-year-old heir to the Saudi throne wants Aramco to complete a deal to buy a $70 billion stake in the kingdom’s biggest petrochemical company, Sabic, issue debt to finance the acquisition and go public by late 2020 or early 2021.
One of the biggest-ever mergers in the oil industry. The largest corporate bond sale on record. The most lucrative initial public offering in "human history." The timetable: two and a half years.
After a summer when the IPO of Saudi Arabia’s state oil-giant Aramco appeared set for semi-permanent limbo, Crown Prince Mohammed bin Salman has not only revived it, but imposed a schedule for achieving a series of deals that would test any management team.
The 33-year-old heir to the Saudi throne wants Aramco to complete a deal to buy a $70 billion stake in the kingdom’s biggest petrochemical company, Sabic, issue debt to finance the acquisition and go public by late 2020 or early 2021.
Oman could announce U.S. dollar sukuk sale as early as Monday | ZAWYA MENA Edition
Oman could announce U.S. dollar sukuk sale as early as Monday | ZAWYA MENA Edition:
The government of Oman could announce a plan to issue new U.S. dollar-denominted sukuk, or Islamic bonds, as early as Monday, sources familiar with the matter said, speaking on condition of anonymity.
One of the financially weakest states in the Gulf, Oman has borrowed extensively in the international markets over the past few years to finance state spending and development projects at a time of lower oil prices.
Its latest foray in the foreign debt markets was a $6.5 billion conventional bond, the country's largest ever, sold in January this year.
The government of Oman could announce a plan to issue new U.S. dollar-denominted sukuk, or Islamic bonds, as early as Monday, sources familiar with the matter said, speaking on condition of anonymity.
One of the financially weakest states in the Gulf, Oman has borrowed extensively in the international markets over the past few years to finance state spending and development projects at a time of lower oil prices.
Its latest foray in the foreign debt markets was a $6.5 billion conventional bond, the country's largest ever, sold in January this year.
#Qatar sees 2019 budget surplus given moderate oil price, lower spending | Reuters
Qatar sees 2019 budget surplus given moderate oil price, lower spending | Reuters:
Qatar’s finance minister said on Monday he expects the 2019 budget to have a surplus, given moderate oil prices and lower expenditure.
Ali Shareef al-Emadi told a conference in Doha that during the last nine months Qatar had achieved its first budget surplus in two years.
The Gulf Arab state’s economy has largely recovered from a boycott imposed by its powerful Arab states last June.
Qatar’s finance minister said on Monday he expects the 2019 budget to have a surplus, given moderate oil prices and lower expenditure.
Ali Shareef al-Emadi told a conference in Doha that during the last nine months Qatar had achieved its first budget surplus in two years.
The Gulf Arab state’s economy has largely recovered from a boycott imposed by its powerful Arab states last June.
UPDATE 1-Baker Hughes acquires 5 pct of ADNOC Drilling for $550 million | Reuters
UPDATE 1-Baker Hughes acquires 5 pct of ADNOC Drilling for $550 million | Reuters:
Baker Hughes, the world’s second-largest oil services company, will take a 5 percent stake in Abu Dhabi National Oil Company’s (ADNOC) drilling unit for $550 million under a tie-up announced on Monday.
Baker Hughes (BHGE) becomes the first foreign company to take a stake in one of state-owned ADNOC’s services companies under the agreement which values ADNOC Drilling at about $11 billion.
It will allow Baker Hughes to cement its presence in the Middle East, the fastest growing region for oil and gas operations, and enable ADNOC Drilling to gain access to the know-how and technical expertise of a global player.
Baker Hughes, the world’s second-largest oil services company, will take a 5 percent stake in Abu Dhabi National Oil Company’s (ADNOC) drilling unit for $550 million under a tie-up announced on Monday.
Baker Hughes (BHGE) becomes the first foreign company to take a stake in one of state-owned ADNOC’s services companies under the agreement which values ADNOC Drilling at about $11 billion.
It will allow Baker Hughes to cement its presence in the Middle East, the fastest growing region for oil and gas operations, and enable ADNOC Drilling to gain access to the know-how and technical expertise of a global player.
Oil drops to around $83 on expectations Iran will maintain some exports | Reuters
Oil drops to around $83 on expectations Iran will maintain some exports | Reuters:
Oil dropped to around $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. reimposes sanctions, easing a strain on supplies.
Two companies in India, a big buyer of Iranian oil, have ordered barrels in November, India’s oil minister said on Monday.
The Trump administration is considering waivers on sanctions, a U.S. government official said on Friday.
Oil dropped to around $83 a barrel on Monday, pressured by expectations that some Iranian oil exports will keep flowing after the U.S. reimposes sanctions, easing a strain on supplies.
Two companies in India, a big buyer of Iranian oil, have ordered barrels in November, India’s oil minister said on Monday.
The Trump administration is considering waivers on sanctions, a U.S. government official said on Friday.
Exotix partners up with Saudi Arabia's NCB Capital | Reuters
Exotix partners up with Saudi Arabia's NCB Capital | Reuters:
Exotix Capital, an investment bank specialising in developing markets, has teamed up with Saudi Arabia’s NCB Capital to provide frontier and emerging markets research and local execution services.
“The Kingdom of Saudi Arabia has entered a new phase, characterized by economic reforms to diversify, strengthen and grow the economy,” NCB Capital’s head of securities division, Mohammed Al-Nory, said in a statement on Monday.
“We believe that this transformation, together with recent upgrades to key emerging market benchmark indices, will lead to tactical and long term stock market opportunities for equity investors.”
Exotix Capital, an investment bank specialising in developing markets, has teamed up with Saudi Arabia’s NCB Capital to provide frontier and emerging markets research and local execution services.
“The Kingdom of Saudi Arabia has entered a new phase, characterized by economic reforms to diversify, strengthen and grow the economy,” NCB Capital’s head of securities division, Mohammed Al-Nory, said in a statement on Monday.
“We believe that this transformation, together with recent upgrades to key emerging market benchmark indices, will lead to tactical and long term stock market opportunities for equity investors.”
MIDEAST STOCKS-Most Gulf markets move sideways, Dubai's Drake and Scull falls | Reuters
MIDEAST STOCKS-Most Gulf markets move sideways, Dubai's Drake and Scull falls | Reuters:
Most major Middle Eastern stock markets opened little changed on Monday, while Dubai’s Drake and Scull erased earlier gains to fall in heavy trade, despite approval from a majority of its shareholders to continue business at a general assembly last Thursday.
The Saudi Arabian index shed 0.2 percent in the first half hour of trading, pressured by its banks and petrochemical stocks. Saudi Basic Industries dipped 0.5 percent.
Etihad Etisalat fell 2.8 percent after it said Saudi’s Communications and Information Technology Commission (CITC) would suspend some of its services. CITC’s decision includes the suspension of sales for prepaid and postpaid mobile services packages to new customers. The company also said it could not determine the impact of the decision at this stage.
Most major Middle Eastern stock markets opened little changed on Monday, while Dubai’s Drake and Scull erased earlier gains to fall in heavy trade, despite approval from a majority of its shareholders to continue business at a general assembly last Thursday.
The Saudi Arabian index shed 0.2 percent in the first half hour of trading, pressured by its banks and petrochemical stocks. Saudi Basic Industries dipped 0.5 percent.
Etihad Etisalat fell 2.8 percent after it said Saudi’s Communications and Information Technology Commission (CITC) would suspend some of its services. CITC’s decision includes the suspension of sales for prepaid and postpaid mobile services packages to new customers. The company also said it could not determine the impact of the decision at this stage.
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