New debt law will help UAE financial markets - The National:
The new Public Debt Law enabling the UAE to issue sovereign bonds will help to deepen the capital markets in the second-biggest Arabian Gulf economy, enabling the country to tap a wider pool of financing options and creating a government yield curve to bolster secondary debt market in the UAE.
“The debt law represents a further fillip to the UAE’s plans to deepen the breadth of the financial and debt capital markets,” said Ehsan Khoman, the head of Middle East and North Africa research and strategy at the Japanese MUFG Bank. “The bonds [issued under the new law] will act as a central mechanism in the creation of a government yield curve in the secondary debt market.”
The UAE on Saturday issued the law permitting the Federal Government to sell sovereign debt for the first time, a move that will boost banking liquidity and enable individual emirates - which currently issue debt at the state level - to benefit from higher issuer ratings than they could achieve on their own, said Sheikh Hamdan bin Rashid Al Maktoum, Deputy Ruler of Dubai and Minister of Finance, in a statement from the Ministry of Finance.
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Sunday, 14 October 2018
Local retail investors and Gulf funds turned bearish on QSE
Local retail investors and Gulf funds turned bearish on QSE:
The Qatar Stock Exchange on Sunday opened the week weak to remain below 9,900 levels, mainly dragged by telecom, transport, real estate and banking sectors.
Local retail investors and Gulf funds turned bearish as the 20-stock Qatar Index settled 0.38% lower for the second consecutive day to 9,824.2 points, which is however up 15.26% year-to-date.
The buying interests of foreign institutions and Gulf individuals were seen weakening in the market, which saw Islamic equities decline slower than the other indices. Micro, large and small cap equities witnessed higher selling pressure.
The Qatar Stock Exchange on Sunday opened the week weak to remain below 9,900 levels, mainly dragged by telecom, transport, real estate and banking sectors.
Local retail investors and Gulf funds turned bearish as the 20-stock Qatar Index settled 0.38% lower for the second consecutive day to 9,824.2 points, which is however up 15.26% year-to-date.
The buying interests of foreign institutions and Gulf individuals were seen weakening in the market, which saw Islamic equities decline slower than the other indices. Micro, large and small cap equities witnessed higher selling pressure.
Saudis reject threats as stocks plunge after Trump comments
Saudis reject threats as stocks plunge after Trump comments:
Saudi Arabia warned on Sunday that it will respond to threats and political pressure with tough measures of its own after President Donald Trump said the oil-rich kingdom deserves “severe punishment” if responsible for the disappearance and suspected murder of Washington Post contributor Jamal Khashoggi.
The apparent threat of economic retaliation from the world’s top oil exporter came after a turbulent day on the Saudi stock exchange, which plunged as much as 7 percent at one point.
The statement was issued as international concern grew over the writer who vanished on a visit to the Saudi Consulate in Istanbul over a week ago. American lawmakers have threated sanctions against the Saudis, and Germany, France and Britain jointly called on Sunday for a “credible investigation” into Khashoggi’s disappearance.
Saudi Arabia warned on Sunday that it will respond to threats and political pressure with tough measures of its own after President Donald Trump said the oil-rich kingdom deserves “severe punishment” if responsible for the disappearance and suspected murder of Washington Post contributor Jamal Khashoggi.
The apparent threat of economic retaliation from the world’s top oil exporter came after a turbulent day on the Saudi stock exchange, which plunged as much as 7 percent at one point.
The statement was issued as international concern grew over the writer who vanished on a visit to the Saudi Consulate in Istanbul over a week ago. American lawmakers have threated sanctions against the Saudis, and Germany, France and Britain jointly called on Sunday for a “credible investigation” into Khashoggi’s disappearance.
Saudi threatens to retaliate against any sanctions over Khashoggi disappearance | Reuters
Saudi threatens to retaliate against any sanctions over Khashoggi disappearance | Reuters:
Saudi Arabia rejected threats to punish it over the disappearance of journalist Jamal Khashoggi in Istanbul, saying the kingdom would retaliate against any sanctions with tougher measures, the official state news agency said on Sunday.
The comments came after U.S. President Donald Trump threatened “severe punishment” for Riyadh if it turned out Khashoggi, a prominent critic of Saudi authorities and a legal resident of the United States, was killed in the Saudi consulate in Istanbul.
“The Kingdom affirms its total rejection of any threats and attempts to undermine it, whether by threatening to impose economic sanctions, using political pressures, or repeating false accusations...” the official Saudi Press Agency quoted an unnamed government source as saying.
Saudi Arabia rejected threats to punish it over the disappearance of journalist Jamal Khashoggi in Istanbul, saying the kingdom would retaliate against any sanctions with tougher measures, the official state news agency said on Sunday.
The comments came after U.S. President Donald Trump threatened “severe punishment” for Riyadh if it turned out Khashoggi, a prominent critic of Saudi authorities and a legal resident of the United States, was killed in the Saudi consulate in Istanbul.
“The Kingdom affirms its total rejection of any threats and attempts to undermine it, whether by threatening to impose economic sanctions, using political pressures, or repeating false accusations...” the official Saudi Press Agency quoted an unnamed government source as saying.
MIDEAST STOCKS-Saudi stocks fall amid investor concerns over Khashoggi fallout | Reuters
MIDEAST STOCKS-Saudi stocks fall amid investor concerns over Khashoggi fallout | Reuters:
Saudi Arabia’s shares plunged as much as 7 percent on Sunday as investors worried about deteriorating relations with the international community after the disappearance of Saudi journalist Jamal Khashoggi.
The index suffered its biggest intraday decline since December 2014, when oil prices were crashing, with the Gulf region’s biggest petrochemical producer, Saudi Basic Industries, tumbling as much as 7.9 percent.
By the close, the market had recovered some of its losses, ending down 3.5 percent. Saudi Arabia’s stock market is due to be reclassified by MSCI as an emerging market next year.
Saudi Arabia’s shares plunged as much as 7 percent on Sunday as investors worried about deteriorating relations with the international community after the disappearance of Saudi journalist Jamal Khashoggi.
The index suffered its biggest intraday decline since December 2014, when oil prices were crashing, with the Gulf region’s biggest petrochemical producer, Saudi Basic Industries, tumbling as much as 7.9 percent.
By the close, the market had recovered some of its losses, ending down 3.5 percent. Saudi Arabia’s stock market is due to be reclassified by MSCI as an emerging market next year.
Insurance Stocks Provide Haven in Stormy Year for Dubai Equities - Bloomberg
Insurance Stocks Provide Haven in Stormy Year for Dubai Equities - Bloomberg:
Insurance stocks traded in Dubai are proving a haven in an unforgiving market as investors increase their bets on mergers and acquisitions in the industry after recent reforms.
Just six of the 37 members of the emirate’s benchmark equities index have gained this year, and four of those are insurers. They have all advanced by at least 4.9 percent, while the DFM General Index has slumped 18 percent, under pressure from weak real-estate developers.
The prospects of mergers and acquisitions are increasing after Dubai gave the industry a boost by making health insurance mandatory among foreign employees, including their dependents and domestic workers, under changes that started in 2014. Foreigners make up more than 80 percent of the population in the United Arab Emirates, last measured at 9.1 million in 2016.
Insurance stocks traded in Dubai are proving a haven in an unforgiving market as investors increase their bets on mergers and acquisitions in the industry after recent reforms.
Just six of the 37 members of the emirate’s benchmark equities index have gained this year, and four of those are insurers. They have all advanced by at least 4.9 percent, while the DFM General Index has slumped 18 percent, under pressure from weak real-estate developers.
The prospects of mergers and acquisitions are increasing after Dubai gave the industry a boost by making health insurance mandatory among foreign employees, including their dependents and domestic workers, under changes that started in 2014. Foreigners make up more than 80 percent of the population in the United Arab Emirates, last measured at 9.1 million in 2016.
Oil Demand Is Cooling. Just Don't Expect Prices to Follow - Bloomberg
Oil Demand Is Cooling. Just Don't Expect Prices to Follow - Bloomberg:
The world's two big intergovernmental energy groups have updated their outlooks for the oil market to the end of next year – and they don't make comfortable reading. High prices, trade wars and weakening currencies are taking their toll on demand growth.
That doesn't necessarily mean that prices will fall. Concern that there isn't enough spare production capacity should continue to support oil for a while yet.
The world's two big intergovernmental energy groups have updated their outlooks for the oil market to the end of next year – and they don't make comfortable reading. High prices, trade wars and weakening currencies are taking their toll on demand growth.
That doesn't necessarily mean that prices will fall. Concern that there isn't enough spare production capacity should continue to support oil for a while yet.
UAE's new visa system to come into effect on October 15 | ZAWYA MENA Edition
UAE's new visa system to come into effect on October 15 | ZAWYA MENA Edition:
Private companies in the UAE will soon be able to opt for a Dh60 insurance scheme to recruit workers instead of depositing Dh3,000 per worker as bank guarantee as is the practice now. The Ministry of Human Resources and Emiratisation will start implementing the low-cost insurance scheme from mid-October, it was announced earlier this month.
The Ministry of Human Resources and Emiratisation (MoHRE) has said that the issuance of employee insurance will begin on October 15.
The ministry said it would also begin disbursing the bank guarantees that is worth Dh14 billion when companies opt for the insurance scheme. The reimbursement will not apply to companies that have committed salary-related violations six months before renewing work permits.
Private companies in the UAE will soon be able to opt for a Dh60 insurance scheme to recruit workers instead of depositing Dh3,000 per worker as bank guarantee as is the practice now. The Ministry of Human Resources and Emiratisation will start implementing the low-cost insurance scheme from mid-October, it was announced earlier this month.
The Ministry of Human Resources and Emiratisation (MoHRE) has said that the issuance of employee insurance will begin on October 15.
The ministry said it would also begin disbursing the bank guarantees that is worth Dh14 billion when companies opt for the insurance scheme. The reimbursement will not apply to companies that have committed salary-related violations six months before renewing work permits.
Etihad and Abu Dhabi likely to reject bondholder complaints -sources | Reuters
Etihad and Abu Dhabi likely to reject bondholder complaints -sources | Reuters:
Etihad Airways and Abu Dhabi’s Department of Finance are likely to reject calls for a meeting with disgruntled bond investors in the belief that their complaints have no legal merit, sources close to the matter told Reuters.
In 2015 and 2016 Etihad issued $1.2 billion in bonds in a partnership with airlines it partly owned at the time, including Alitalia and Air Berlin. The bonds are now in default because the European airlines, which are now insolvent, have not honoured their part of the obligations.
The sources said that a group of international institutional creditors have complained to Etihad and the Abu Dhabi Department of Finance that, when the bonds were marketed, Etihad had promised to support the other airlines to make them profitable.
Etihad Airways and Abu Dhabi’s Department of Finance are likely to reject calls for a meeting with disgruntled bond investors in the belief that their complaints have no legal merit, sources close to the matter told Reuters.
In 2015 and 2016 Etihad issued $1.2 billion in bonds in a partnership with airlines it partly owned at the time, including Alitalia and Air Berlin. The bonds are now in default because the European airlines, which are now insolvent, have not honoured their part of the obligations.
The sources said that a group of international institutional creditors have complained to Etihad and the Abu Dhabi Department of Finance that, when the bonds were marketed, Etihad had promised to support the other airlines to make them profitable.
UPDATE 1-UAE deepens money market with law allowing federal debt issues | Reuters
UPDATE 1-UAE deepens money market with law allowing federal debt issues | Reuters:
The United Arab Emirates has taken a major step towards deepening its financial markets by issuing a law permitting the federal government to begin issuing sovereign debt, the finance ministry said on Saturday.
Several of the seven emirates in the UAE, including rich Abu Dhabi and Dubai, already sell bonds in international markets. Allowing the central government to issue could benefit the poorer emirates as federal bonds would carry higher credit ratings than those emirates could achieve individually.
Banks in the UAE will be able to buy government bonds in dirhams or foreign currencies, giving them highly-rated assets with which they can manage their liquidity and obey global Basel III regulatory standards for banks, the ministry said.
The United Arab Emirates has taken a major step towards deepening its financial markets by issuing a law permitting the federal government to begin issuing sovereign debt, the finance ministry said on Saturday.
Several of the seven emirates in the UAE, including rich Abu Dhabi and Dubai, already sell bonds in international markets. Allowing the central government to issue could benefit the poorer emirates as federal bonds would carry higher credit ratings than those emirates could achieve individually.
Banks in the UAE will be able to buy government bonds in dirhams or foreign currencies, giving them highly-rated assets with which they can manage their liquidity and obey global Basel III regulatory standards for banks, the ministry said.
MIDEAST STOCKS-Saudi stocks plunge 7 pct on Khashoggi fallout; biggest drop since 2014 | Reuters
MIDEAST STOCKS-Saudi stocks plunge 7 pct on Khashoggi fallout; biggest drop since 2014 | Reuters:
Saudi Arabia’s stock market plunged on Sunday as investors worried about deteriorating relations with the international community after the disappearance of Saudi journalist Jamal Khashoggi.
After nearly two hours of trade the index was down 7.0 percent, its biggest drop since December 2014, when oil prices were crashing. Shares in the region’s biggest petrochemical producer, Saudi Basic Industries, tumbled 7.9 percent.
“It’s the political environment. The market is reacting negatively to sentiment around the Khashoggi case and the political noise around it,” said Salah Shamma, head of investment for the region at Franklin Templeton Emerging Markets Equity, a big global fund manager.
Saudi Arabia’s stock market plunged on Sunday as investors worried about deteriorating relations with the international community after the disappearance of Saudi journalist Jamal Khashoggi.
After nearly two hours of trade the index was down 7.0 percent, its biggest drop since December 2014, when oil prices were crashing. Shares in the region’s biggest petrochemical producer, Saudi Basic Industries, tumbled 7.9 percent.
“It’s the political environment. The market is reacting negatively to sentiment around the Khashoggi case and the political noise around it,” said Salah Shamma, head of investment for the region at Franklin Templeton Emerging Markets Equity, a big global fund manager.
MIDEAST STOCKS-Saudi drops on fallout from journalist disappearance | Reuters
MIDEAST STOCKS-Saudi drops on fallout from journalist disappearance | Reuters:
Saudi Arabia’s stock market tumbled in early Sunday trade, as investors worried about deteriorating relations with the international community following the disappearance of a Saudi journalist, while markets in Abu Dhabi and Dubai rose.
Jamal Khashoggi, a prominent critic of Riyadh and a U.S. resident, disappeared on Oct. 2 after visiting the Saudi consulate in Turkey. Ankara believes he was deliberately killed inside the building and his body removed.
Media companies and some technology executives pulled out of a Saudi investment conference because of growing outrage over the disappearance and U.S. lawmakers have demanded firm action, although President Donald Trump said Washington would be hurting itself if it halted arms sales to Riyadh.
Saudi Arabia’s stock market tumbled in early Sunday trade, as investors worried about deteriorating relations with the international community following the disappearance of a Saudi journalist, while markets in Abu Dhabi and Dubai rose.
Jamal Khashoggi, a prominent critic of Riyadh and a U.S. resident, disappeared on Oct. 2 after visiting the Saudi consulate in Turkey. Ankara believes he was deliberately killed inside the building and his body removed.
Media companies and some technology executives pulled out of a Saudi investment conference because of growing outrage over the disappearance and U.S. lawmakers have demanded firm action, although President Donald Trump said Washington would be hurting itself if it halted arms sales to Riyadh.