INTERVIEW: SABB Managing Director David Dew steering through historic transaction in Saudi banking:
David Dew has been working in banking in the Middle East and other emerging markets for 40 years, and you might think he has seen it all. But the merger between SABB and Alawwal in Saudi Arabia — which he is steering through to completion next year — is a career achievement for him.
“I think it’s a clear case of a win-win situation, and all our stakeholders will get benefit from it. It’s a genuinely exciting landmark transaction, and a significant transformation for the Kingdom,” he said.
It is a historic transaction, Dew explains. “It is the third biggest banking merger in the history of the region — the other two were in the UAE with significant government ownership — so SABB-Alawwal is also the biggest private banking merger for 20 years. It’s the first since the Capital Market Authority (CMA) was formed and the first since the new takeover rules came in.”
Sunday 21 October 2018
Asset management has $35bn opportunity in Qatar - The Peninsula Qatar
Asset management has $35bn opportunity in Qatar - The Peninsula Qatar:
Valued at an estimated $97bn by the end of 2017, the banking system holds the largest share (81 percent) of Qatar’s total Islamic finance assets. Collectively, Qatar’s four Islamic banks posted 9.1 percent year-on-year growth in assets during the year, resuming its medium-term trend of outpacing conventional banking asset growth.
The increase in Islamic banking growth translated to an increase in Islamic banking penetration reaching 43 percent of real GDP in 2017, up from 4 percent the previous year, according to QFC’s ‘Qatar Islamic Finance Report 2018’.
The report noted that the Asset management industry has a $35bn opportunity in Qatar. “Domestic private wealth is estimated at $35bn, with 290 ultra-high net worth individuals with more than $30m in investable assets. These individuals are being targeted by the QFCRA through special licences granted for foundations and investment clubs, in the former case giving legal.”
Valued at an estimated $97bn by the end of 2017, the banking system holds the largest share (81 percent) of Qatar’s total Islamic finance assets. Collectively, Qatar’s four Islamic banks posted 9.1 percent year-on-year growth in assets during the year, resuming its medium-term trend of outpacing conventional banking asset growth.
The increase in Islamic banking growth translated to an increase in Islamic banking penetration reaching 43 percent of real GDP in 2017, up from 4 percent the previous year, according to QFC’s ‘Qatar Islamic Finance Report 2018’.
The report noted that the Asset management industry has a $35bn opportunity in Qatar. “Domestic private wealth is estimated at $35bn, with 290 ultra-high net worth individuals with more than $30m in investable assets. These individuals are being targeted by the QFCRA through special licences granted for foundations and investment clubs, in the former case giving legal.”
Forex reserves more than enough to face blockade challenges: QCB Governor - The Peninsula Qatar
Forex reserves more than enough to face blockade challenges: QCB Governor - The Peninsula Qatar:
The Governor of Qatar Central Bank (QCB) H E Sheikh Abdullah bin Saoud Al Thani affirmed yesterday that the international reserves at the Bank amounted to QR144.7bn by the end of April, noting that these reserves are more than enough to face challenges arising from the unjust blockade imposed on Qatar.
The QCB Governor also noted that they (reserves) do not represent the international reserves of the State; they are only a small part used for monetary policy purposes and to meet the currency issued and local banks’ purchases of dollars as part of the Bank’s exchange rate policy.
Therefore, Qatar’s financial reserves are very strong and capable of countering any negative effects of the blockade.
The Governor of Qatar Central Bank (QCB) H E Sheikh Abdullah bin Saoud Al Thani affirmed yesterday that the international reserves at the Bank amounted to QR144.7bn by the end of April, noting that these reserves are more than enough to face challenges arising from the unjust blockade imposed on Qatar.
The QCB Governor also noted that they (reserves) do not represent the international reserves of the State; they are only a small part used for monetary policy purposes and to meet the currency issued and local banks’ purchases of dollars as part of the Bank’s exchange rate policy.
Therefore, Qatar’s financial reserves are very strong and capable of countering any negative effects of the blockade.
Saudi Arabia Summit Loses Its Swagger as Elites Question Kingdom - Bloomberg
Saudi Arabia Summit Loses Its Swagger as Elites Question Kingdom - Bloomberg:
It’s an investment summit in the shadow of a killing: stripped of the glitz and glamour of business titans who last year flew in to woo a young prince and be a part of his grand plans to transform his country’s economy.
Hosted by the kingdom’s sovereign wealth fund, the three-day conference that kicks off in Riyadh on Tuesday was meant to showcase the opportunities created by reform efforts to break the economy’s dependence on oil and unveil billion-dollar contracts in front of the world’s business elite. That was until the killing of government critic Jamal Khashoggi prompted dozens of finance and business leaders to pull out.
Saudi Arabia and Crown Prince Mohammed bin Salman -- who posed for selfies with hundreds of delegates at last year’s conference -- will be keen to show that it’s business as usual in the kingdom, even as European leaders and President Donald Trump demand more information on how the Washington Post columnist was killed at its consulate in Istanbul.
It’s an investment summit in the shadow of a killing: stripped of the glitz and glamour of business titans who last year flew in to woo a young prince and be a part of his grand plans to transform his country’s economy.
Hosted by the kingdom’s sovereign wealth fund, the three-day conference that kicks off in Riyadh on Tuesday was meant to showcase the opportunities created by reform efforts to break the economy’s dependence on oil and unveil billion-dollar contracts in front of the world’s business elite. That was until the killing of government critic Jamal Khashoggi prompted dozens of finance and business leaders to pull out.
Saudi Arabia and Crown Prince Mohammed bin Salman -- who posed for selfies with hundreds of delegates at last year’s conference -- will be keen to show that it’s business as usual in the kingdom, even as European leaders and President Donald Trump demand more information on how the Washington Post columnist was killed at its consulate in Istanbul.
Foreigners sell net $1.1 billion of Saudi stocks as journalist disappearance rattles investors | Reuters
Foreigners sell net $1.1 billion of Saudi stocks as journalist disappearance rattles investors | Reuters:
Foreigners sold a net 4.01 billion riyals ($1.07 billion) in Saudi stocks in the week ending Oct. 18, exchange data showed on Sunday - one of the biggest selloffs since the market opened to direct foreign buying in mid-2015.
The selloff came during a week when investors were rattled by Saudi Arabia’s deteriorating relations with foreign governments following the disappearance of journalist Jamal Khashoggi.
Riyadh said on Saturday that Khashoggi died in a fight inside its Istanbul consulate, its first acknowledgement of his death after denying for two weeks that it was involved in his disappearance.
Foreigners sold a net 4.01 billion riyals ($1.07 billion) in Saudi stocks in the week ending Oct. 18, exchange data showed on Sunday - one of the biggest selloffs since the market opened to direct foreign buying in mid-2015.
The selloff came during a week when investors were rattled by Saudi Arabia’s deteriorating relations with foreign governments following the disappearance of journalist Jamal Khashoggi.
Riyadh said on Saturday that Khashoggi died in a fight inside its Istanbul consulate, its first acknowledgement of his death after denying for two weeks that it was involved in his disappearance.
AP Analysis: Saudi prince likely to survive worst crisis yet
AP Analysis: Saudi prince likely to survive worst crisis yet:
The killing of Saudi journalist Jamal Khashoggi at the kingdom’s consulate in Istanbul is unlikely to halt Crown Prince Mohammed bin Salman’s rise to power, but could cause irreparable harm to relations with Western governments and businesses, potentially endangering his ambitious reform plans.
International outrage over Khashoggi’s Oct. 2 slaying at the hands of Saudi officials, under still-disputed circumstances, has marked the greatest crisis in the 33-year-old’s rapid rise, already tarnished by a catastrophic war in Yemen and a sweeping roundup of Saudi businessmen and activists.
The prince had hoped to galvanize world support for his efforts to revamp the country’s oil-dependent economy, but now the monarchy faces possible sanctions over the killing. Saudi Arabia has threatened to retaliate against any punitive action, but analysts say that wielding its main weapon — oil production — could backfire, putting the prince’s economic goals even further out of reach.
The killing of Saudi journalist Jamal Khashoggi at the kingdom’s consulate in Istanbul is unlikely to halt Crown Prince Mohammed bin Salman’s rise to power, but could cause irreparable harm to relations with Western governments and businesses, potentially endangering his ambitious reform plans.
International outrage over Khashoggi’s Oct. 2 slaying at the hands of Saudi officials, under still-disputed circumstances, has marked the greatest crisis in the 33-year-old’s rapid rise, already tarnished by a catastrophic war in Yemen and a sweeping roundup of Saudi businessmen and activists.
The prince had hoped to galvanize world support for his efforts to revamp the country’s oil-dependent economy, but now the monarchy faces possible sanctions over the killing. Saudi Arabia has threatened to retaliate against any punitive action, but analysts say that wielding its main weapon — oil production — could backfire, putting the prince’s economic goals even further out of reach.
Abu Dhabi Commercial Bank Q3 profit up 5.5 percent | Reuters
Abu Dhabi Commercial Bank Q3 profit up 5.5 percent | Reuters:
Abu Dhabi Commercial Bank (ADCB) , which is in merger talks with two other banks, on Sunday reported a 5.5 percent rise in third-quarter profit, roughly in line with analyst forecasts.
ADCB made a net profit of 1.15 billion dirhams ($313.1 million) in the three months ending Sept. 30, up from 1.09 billion dirhams in the same period of last year.
The mean estimate from three analysts polled by Refinitiv for the third quarter was 1.2 billion dirhams.
Abu Dhabi Commercial Bank (ADCB) , which is in merger talks with two other banks, on Sunday reported a 5.5 percent rise in third-quarter profit, roughly in line with analyst forecasts.
ADCB made a net profit of 1.15 billion dirhams ($313.1 million) in the three months ending Sept. 30, up from 1.09 billion dirhams in the same period of last year.
The mean estimate from three analysts polled by Refinitiv for the third quarter was 1.2 billion dirhams.
UAE business loan demand up in Q3, personal loans fall | Reuters
UAE business loan demand up in Q3, personal loans fall | Reuters:
Demand for business loans in the United Arab Emirates increased in the July-September quarter but demand for personal loans shrank, a central bank survey showed on Sunday.
The net balance measure for business lending - the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall - rose to plus 14.0 in the quarter from plus 11.8 in the previous quarter.
For the current quarter, companies expect a further rise to plus 22.4, with demand anticipated to increase in all emirates.
Demand for business loans in the United Arab Emirates increased in the July-September quarter but demand for personal loans shrank, a central bank survey showed on Sunday.
The net balance measure for business lending - the weighted percentage of respondents reporting an increase in demand for loans minus those reporting a fall - rose to plus 14.0 in the quarter from plus 11.8 in the previous quarter.
For the current quarter, companies expect a further rise to plus 22.4, with demand anticipated to increase in all emirates.
Saudi Arabia calls Khashoggi killing 'grave mistake', says prince not aware | Reuters
Saudi Arabia calls Khashoggi killing 'grave mistake', says prince not aware | Reuters:
Saudi Arabia on Sunday called the killing of journalist Jamal Khashoggi at its Istanbul consulate a “huge and grave mistake”, but sought to shield its powerful crown prince from the widening crisis, saying Mohammed bin Salman had not been aware.
The comments from Foreign Minister Adel al-Jubeir were some of the most direct yet from Riyadh, which has given multiple and conflicting accounts about Khashoggi’s killing on Oct.2, first denying his death before admitting it on Saturday amid an international outcry.
The kingdom’s weeks of denial and lack of credible evidence in the face of allegations from Turkish officials that Khashoggi had been killed have shaken global confidence in ties with the world’s top oil exporter, Western governments say.
Saudi Arabia on Sunday called the killing of journalist Jamal Khashoggi at its Istanbul consulate a “huge and grave mistake”, but sought to shield its powerful crown prince from the widening crisis, saying Mohammed bin Salman had not been aware.
The comments from Foreign Minister Adel al-Jubeir were some of the most direct yet from Riyadh, which has given multiple and conflicting accounts about Khashoggi’s killing on Oct.2, first denying his death before admitting it on Saturday amid an international outcry.
The kingdom’s weeks of denial and lack of credible evidence in the face of allegations from Turkish officials that Khashoggi had been killed have shaken global confidence in ties with the world’s top oil exporter, Western governments say.
MIDEAST STOCKS-Saudi stocks close up slightly after account of Khashoggi death | Reuters
MIDEAST STOCKS-Saudi stocks close up slightly after account of Khashoggi death | Reuters:
Saudi Arabia’s stock market survived an early sell-off to close in positive territory on Sunday after the kingdom said Saudi dissident Jamal Khashoggi died in a fight at its consulate in Istanbul.
The Saudi index closed up 0.2 percent after falling as much as 3.5 percent earlier in the session. Analysts said the market was likely supported by buying from state-linked Saudi funds.
U.S. and European government officials on Sunday continued to push Saudi Arabia for more answers about Jamal Khashoggi after Riyadh early on Saturday acknowledged that the journalist died more than two weeks ago at the consulate.
Saudi Arabia’s stock market survived an early sell-off to close in positive territory on Sunday after the kingdom said Saudi dissident Jamal Khashoggi died in a fight at its consulate in Istanbul.
The Saudi index closed up 0.2 percent after falling as much as 3.5 percent earlier in the session. Analysts said the market was likely supported by buying from state-linked Saudi funds.
U.S. and European government officials on Sunday continued to push Saudi Arabia for more answers about Jamal Khashoggi after Riyadh early on Saturday acknowledged that the journalist died more than two weeks ago at the consulate.
International investors back away from Saudi Arabia | Financial Times
International investors back away from Saudi Arabia | Financial Times:
International investors have begun withdrawing funds from Saudi Arabia in response to the geopolitical crisis surrounding its involvement in the death of a journalist and critic of the country’s leadership.
The Gulf nation has courted foreign investors in recent years and is expecting a windfall from its inclusion in the widely tracked MSCI emerging markets index next June. But last week global fund managers withdrew $650m from the country’s equity market, damping Saudi ambitions to move away from its heavy reliance on domestic investors.
“It’s a market I would rather not invest in unless I have to,” said Daniel Vaughan, an investment consultant and fund selector at Morningstar, the data provider and investment manager. “But it’s such a big economy in the region we have to have some investment in Saudi.”
International investors have begun withdrawing funds from Saudi Arabia in response to the geopolitical crisis surrounding its involvement in the death of a journalist and critic of the country’s leadership.
The Gulf nation has courted foreign investors in recent years and is expecting a windfall from its inclusion in the widely tracked MSCI emerging markets index next June. But last week global fund managers withdrew $650m from the country’s equity market, damping Saudi ambitions to move away from its heavy reliance on domestic investors.
“It’s a market I would rather not invest in unless I have to,” said Daniel Vaughan, an investment consultant and fund selector at Morningstar, the data provider and investment manager. “But it’s such a big economy in the region we have to have some investment in Saudi.”
Saudi Shares Slump as Crisis Over Khashoggi Killing Roils Market - Bloomberg
Saudi Shares Slump as Crisis Over Khashoggi Killing Roils Market - Bloomberg:
Saudi stocks dropped as world leaders press the kingdom to come clean about how and why government critic Jamal Khashoggi was killed.
The Tadawul All Share Index fell as much as 3.8 percent in Riyadh, with Al Rajhi Bank and Saudi Basic Industries Corp. contributing the most to the decline. The gauge climbed 1.6 percent last week in volatile trading sessions, with some speculating state-linked funds were propping up shares.
Saudi Arabia said Saturday an initial probe showed that Khashoggi was killed at its consulate in Istanbul after “discussions” turned physical, reversing earlier denials of involvement in his disappearance.
Saudi stocks dropped as world leaders press the kingdom to come clean about how and why government critic Jamal Khashoggi was killed.
The Tadawul All Share Index fell as much as 3.8 percent in Riyadh, with Al Rajhi Bank and Saudi Basic Industries Corp. contributing the most to the decline. The gauge climbed 1.6 percent last week in volatile trading sessions, with some speculating state-linked funds were propping up shares.
Saudi Arabia said Saturday an initial probe showed that Khashoggi was killed at its consulate in Istanbul after “discussions” turned physical, reversing earlier denials of involvement in his disappearance.
Saudi Crisis Shows Wall Street Struggle Between Ethics and Cash - Bloomberg
Saudi Crisis Shows Wall Street Struggle Between Ethics and Cash - Bloomberg:
As chief executive of the world’s biggest asset manager, Larry Fink began the year with a call to the thousands of companies that the firm holds stakes in: Show how they make a “positive contribution to society.”
Now Fink’s BlackRock Inc., overseeing more than $6 trillion of other people’s money, is facing a comparable challenge, stuck between conscience and the implacable demands of the bottom line.
While BlackRock and the rest of the financial industry have targeted Saudi Arabia as a massive revenue generator, they were compelled to act in the wake of reports that U.S.-based journalist Jamal Khashoggi was allegedly killed inside the Saudi consulate in Istanbul. On Saturday, the Saudi government confirmed that Khashoggi had died after an argument at the consulate.
As chief executive of the world’s biggest asset manager, Larry Fink began the year with a call to the thousands of companies that the firm holds stakes in: Show how they make a “positive contribution to society.”
Now Fink’s BlackRock Inc., overseeing more than $6 trillion of other people’s money, is facing a comparable challenge, stuck between conscience and the implacable demands of the bottom line.
While BlackRock and the rest of the financial industry have targeted Saudi Arabia as a massive revenue generator, they were compelled to act in the wake of reports that U.S.-based journalist Jamal Khashoggi was allegedly killed inside the Saudi consulate in Istanbul. On Saturday, the Saudi government confirmed that Khashoggi had died after an argument at the consulate.
Iran's Rouhani appoints new economy minister in reshuffle | Reuters
Iran's Rouhani appoints new economy minister in reshuffle | Reuters:
Iranian President Hassan Rouhani appointed academic Farhad Dejpasand as the new economy and finance minister in a cabinet reshuffle on Sunday, state television reported.
The proposed cabinet changes come as the government faces intense pressure over the economic instability mostly caused by U.S. sanctions. The economy has markedly deteriorated in the past year, suffering rising inflation and unemployment, a slump in the rial currency and state corruption.
Rouhani also appointed a new urban development and roads minister, an industry, mines, and trade minister, and a new labor minister.
Iranian President Hassan Rouhani appointed academic Farhad Dejpasand as the new economy and finance minister in a cabinet reshuffle on Sunday, state television reported.
The proposed cabinet changes come as the government faces intense pressure over the economic instability mostly caused by U.S. sanctions. The economy has markedly deteriorated in the past year, suffering rising inflation and unemployment, a slump in the rial currency and state corruption.
Rouhani also appointed a new urban development and roads minister, an industry, mines, and trade minister, and a new labor minister.
Amid skepticism, Saudi official provides another version of Khashoggi death | Reuters
Amid skepticism, Saudi official provides another version of Khashoggi death | Reuters:
As Saudi Arabia faced intensifying international scepticism over its story about the death of journalist Jamal Khashoggi, a senior government official laid out a new version of the death inside the Saudi consulate in Istanbul that in key respects contradicts previous explanations.
The latest account, provided by a Saudi official who requested anonymity, includes details on how the team of 15 Saudi nationals sent to confront Khashoggi on Oct. 2 had threatened him with being drugged and kidnapped and then killed him in a chokehold when he resisted. A member of the team then dressed in Khashoggi’s clothes to make it appear as if he had left the consulate.
After denying any involvement in the disappearance of Khashoggi, 59, for two weeks, Saudi Arabia on Saturday morning said he had died in a fistfight at the consulate. An hour later, another Saudi official attributed the death to a chokehold, which the senior official reiterated.
As Saudi Arabia faced intensifying international scepticism over its story about the death of journalist Jamal Khashoggi, a senior government official laid out a new version of the death inside the Saudi consulate in Istanbul that in key respects contradicts previous explanations.
The latest account, provided by a Saudi official who requested anonymity, includes details on how the team of 15 Saudi nationals sent to confront Khashoggi on Oct. 2 had threatened him with being drugged and kidnapped and then killed him in a chokehold when he resisted. A member of the team then dressed in Khashoggi’s clothes to make it appear as if he had left the consulate.
After denying any involvement in the disappearance of Khashoggi, 59, for two weeks, Saudi Arabia on Saturday morning said he had died in a fistfight at the consulate. An hour later, another Saudi official attributed the death to a chokehold, which the senior official reiterated.
MIDEAST STOCKS-Saudi falls in early trading after account of Khashoggi death | Reuters
MIDEAST STOCKS-Saudi falls in early trading after account of Khashoggi death | Reuters:
Saudi Arabia’s stock index was down 3.5 percent in early trading on Sunday after the kingdom said Saudi dissident Jamal Khashoggi died in a fight at its consulate in Istanbul.
Al Rajhi Bank fell 2.4 percent, while Saudi Basic Industries Corp dropped 3.7 percent. The Saudi index slumped as much as 3.5 percent in early trading, before reducing losses later in the morning.
U.S. President Donald Trump joined European leaders on Saturday in pushing Saudi Arabia for more answers about Jamal Khashoggi after Riyadh acknowledged that the journalist died more than two weeks ago at its consulate in Istanbul.
Saudi Arabia’s stock index was down 3.5 percent in early trading on Sunday after the kingdom said Saudi dissident Jamal Khashoggi died in a fight at its consulate in Istanbul.
Al Rajhi Bank fell 2.4 percent, while Saudi Basic Industries Corp dropped 3.7 percent. The Saudi index slumped as much as 3.5 percent in early trading, before reducing losses later in the morning.
U.S. President Donald Trump joined European leaders on Saturday in pushing Saudi Arabia for more answers about Jamal Khashoggi after Riyadh acknowledged that the journalist died more than two weeks ago at its consulate in Istanbul.
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