Khashoggi’s Killing Could Ease Saudi-Qatar Breach - Bloomberg:
When four Arab states led by Saudi Arabia cut diplomatic ties and transportation links with Qatar in June 2017, there were expectations that the rulers would resolve the spat quietly among themselves, as they did a similar dispute three years earlier. Instead, Saudi Arabia issued tough demands, Qatar -- a Turkish ally -- refused to kowtow to its powerful Arab neighbor, and the breach hardened. Now, in the first sign of a possible thaw, the heir to the Saudi throne softened his language in a surprisingly complimentary remark, suggesting the kingdom is eager to regain international goodwill after acknowledging that Saudi columnist Jamal Khashoggi was killed in its Istanbul consulate.
1. How does Khashoggi’s killing relate to Qatar’s isolation?
Saudi Crown Prince Mohammed bin Salman, who effectively runs the country on behalf of his father, King Salman bin Abdulaziz, has been blamed for both. Rejecting a Saudi claim that Khashoggi was killed accidentally after a brawl, Turkish President Recep Tayyip Erdogan said his government has “strong indications” the writer was the victim of a premeditated murder. A top Erdogan aide accused Prince Mohammed of having “blood on his hands.” Critics
Thursday, 25 October 2018
Chilled by Khashoggi Death, Saudi Summit Ends With Few Deals - Bloomberg
Chilled by Khashoggi Death, Saudi Summit Ends With Few Deals - Bloomberg:
The international outcry over the murder of U.S.-based columnist Jamal Khashoggi turned Saudi Arabia’s star turn on the world’s business stage into a sedate, mostly regional, affair.
Missing from the second edition of the Future Investment Initiative were global captains of industry, eye-popping contracts and even the inveterate optimism that dealmakers bring to such events. The $50 billion of signed agreements compares to more than half a trillion worth in 2017.
For the foreign investors who did show, the Khashoggi crisis cast a long shadow -- not just over the gathering but about doing business in the region’s biggest economy. The buzz in Riyadh wasn’t about futuristic cities, robots and money-making opportunities but about how 33-year-old Crown Prince Mohammed bin Salman would address the matter. Investors and Saudi officials talked about a "hideous crime," a "regrettable and abhorrent act."
The international outcry over the murder of U.S.-based columnist Jamal Khashoggi turned Saudi Arabia’s star turn on the world’s business stage into a sedate, mostly regional, affair.
Missing from the second edition of the Future Investment Initiative were global captains of industry, eye-popping contracts and even the inveterate optimism that dealmakers bring to such events. The $50 billion of signed agreements compares to more than half a trillion worth in 2017.
For the foreign investors who did show, the Khashoggi crisis cast a long shadow -- not just over the gathering but about doing business in the region’s biggest economy. The buzz in Riyadh wasn’t about futuristic cities, robots and money-making opportunities but about how 33-year-old Crown Prince Mohammed bin Salman would address the matter. Investors and Saudi officials talked about a "hideous crime," a "regrettable and abhorrent act."
Saudi's NEOM proceeding with prospective partners: CEO | Reuters
Saudi's NEOM proceeding with prospective partners: CEO | Reuters:
Saudi Arabia’s mega business zone called NEOM is still proceeding with prospective partners, despite the fallout from the death of Saudi journalist Jamal Khashoggi, NEOM’s chief executive Nadhmi al-Nasr said on Thursday.
Speaking at an investment conference in the kingdom, he didn’t name the prospective partners.
NEOM, a $500 billion project which was announced by |Crown Prince Mohammed bin Salman last year, is under development in the northwest of the kingdom.
Saudi Arabia’s mega business zone called NEOM is still proceeding with prospective partners, despite the fallout from the death of Saudi journalist Jamal Khashoggi, NEOM’s chief executive Nadhmi al-Nasr said on Thursday.
Speaking at an investment conference in the kingdom, he didn’t name the prospective partners.
NEOM, a $500 billion project which was announced by |Crown Prince Mohammed bin Salman last year, is under development in the northwest of the kingdom.
OPEC, allies may need to change course as oil inventories rise: panel | Reuters
OPEC, allies may need to change course as oil inventories rise: panel | Reuters:
OPEC signaled on Thursday it may have to return to oil production cuts as global inventories rise, in a statement that may further sour relations with U.S. President Donald Trump.
The president has repeatedly lashed out at the Organization of the Petroleum Exporting Countries, saying it is not supplying enough oil. OPEC, plus Russia and other allied non-OPEC producers agreed to pump more in June.
An OPEC and non-OPEC ministerial panel concluded that supply is “very comfortable” compared to demand and warned producers may need a change of tack because of rising inventories and economic uncertainties.
OPEC signaled on Thursday it may have to return to oil production cuts as global inventories rise, in a statement that may further sour relations with U.S. President Donald Trump.
The president has repeatedly lashed out at the Organization of the Petroleum Exporting Countries, saying it is not supplying enough oil. OPEC, plus Russia and other allied non-OPEC producers agreed to pump more in June.
An OPEC and non-OPEC ministerial panel concluded that supply is “very comfortable” compared to demand and warned producers may need a change of tack because of rising inventories and economic uncertainties.
Khashoggi crisis may test Saudi PIF's expansion ambitions | Reuters
Khashoggi crisis may test Saudi PIF's expansion ambitions | Reuters:
A year ago the Saudi sovereign investor Public Investment Fund (PIF) was a rising star among state-backed funds.
It poured billions of dollars into the SoftBank technology fund of Japanese tycoon Masayoshi Son and the infrastructure vehicle of U.S. private equity firm Blackstone, and was building a war chest for overseas deals.
PIF, chaired by Crown Prince Mohammed bin Salman, emerged as the most viable partner for foreign investors after an anti-corruption purge last year tainted many members of the Saudi business elite.
A year ago the Saudi sovereign investor Public Investment Fund (PIF) was a rising star among state-backed funds.
It poured billions of dollars into the SoftBank technology fund of Japanese tycoon Masayoshi Son and the infrastructure vehicle of U.S. private equity firm Blackstone, and was building a war chest for overseas deals.
PIF, chaired by Crown Prince Mohammed bin Salman, emerged as the most viable partner for foreign investors after an anti-corruption purge last year tainted many members of the Saudi business elite.
Breakingviews - Cox: Saudenfreude over Khashoggi absent from Doha | Reuters
Breakingviews - Cox: Saudenfreude over Khashoggi absent from Doha | Reuters:
An influential Saudi Arabian prince once called Qatar, a spit of sand sticking into the Persian Gulf like a thumb, nothing more than “300 people and a television channel.” Such disdain inspired Saudi Crown Prince Mohammed bin Salman to initiate a four-nation blockade of the country. But not a year and a half later, the young Saudi monarch has acknowledged what has become apparent to the world: Qatar is doing just fine.
It would be easy for this tiny-but-rich nation of 2.6 million people to gloat over the global public display of revulsion surrounding the killing of journalist Jamal Khashoggi by Saudi agents. Yet “Saudenfreude,” or satisfaction over condemnation of its neighbour’s alleged drawing-and-quartering of a prominent dissident in its Istanbul consulate, is in short supply in Doha.
That’s not because Qatar is especially humble. Emir Sheikh Tamim bin Hamad al-Thani’s visage is more ubiquitous in the capital than those of his counterparts in Abu Dhabi or Dubai. His silhouette adorns everything from skyscrapers to taxis. And Qatar has never been shy about flaunting its good fortune, embarking on flashy shopping sprees and acquiring trophy assets like Harrods and French soccer club, Paris Saint-Germain.
An influential Saudi Arabian prince once called Qatar, a spit of sand sticking into the Persian Gulf like a thumb, nothing more than “300 people and a television channel.” Such disdain inspired Saudi Crown Prince Mohammed bin Salman to initiate a four-nation blockade of the country. But not a year and a half later, the young Saudi monarch has acknowledged what has become apparent to the world: Qatar is doing just fine.
It would be easy for this tiny-but-rich nation of 2.6 million people to gloat over the global public display of revulsion surrounding the killing of journalist Jamal Khashoggi by Saudi agents. Yet “Saudenfreude,” or satisfaction over condemnation of its neighbour’s alleged drawing-and-quartering of a prominent dissident in its Istanbul consulate, is in short supply in Doha.
That’s not because Qatar is especially humble. Emir Sheikh Tamim bin Hamad al-Thani’s visage is more ubiquitous in the capital than those of his counterparts in Abu Dhabi or Dubai. His silhouette adorns everything from skyscrapers to taxis. And Qatar has never been shy about flaunting its good fortune, embarking on flashy shopping sprees and acquiring trophy assets like Harrods and French soccer club, Paris Saint-Germain.
Back to the future: Saudi investor forum saved by old mainstay oil | Reuters
Back to the future: Saudi investor forum saved by old mainstay oil | Reuters:
Saudi Arabia’s investment forum was designed to showcase the kingdom’s new future away from oil, but it was black gold and old allies that rescued this week’s event from the furor over the killing of journalist Jamal Khashoggi.
Riyadh inked multi-billion dollar agreements, mainly energy deals, despite a boycott of the event by dozens of high-level Western politicians, bankers and top executives scheduled to speak at the three-day gathering that ended on Thursday.
Yet the event paled in comparison to the 2017 inaugural investment conference, when robots roamed the venue as the kingdom turned its focus to the promise of new technology and announced plans to build a $500 billion mega city of the future.
Saudi Arabia’s investment forum was designed to showcase the kingdom’s new future away from oil, but it was black gold and old allies that rescued this week’s event from the furor over the killing of journalist Jamal Khashoggi.
Riyadh inked multi-billion dollar agreements, mainly energy deals, despite a boycott of the event by dozens of high-level Western politicians, bankers and top executives scheduled to speak at the three-day gathering that ended on Thursday.
Yet the event paled in comparison to the 2017 inaugural investment conference, when robots roamed the venue as the kingdom turned its focus to the promise of new technology and announced plans to build a $500 billion mega city of the future.
UAE's Etisalat Q3 profit falls on higher capital expenditure | Reuters
UAE's Etisalat Q3 profit falls on higher capital expenditure | Reuters:
Emirates Telecommunications Group (Etisalat) on Thursday reported a 4.2 percent drop in third-quarter net profit, hit by increased capital expenditure.
Etisalat made a net profit of 2.3 billion dirhams ($626 million) in the three months to Sept. 30, it said in a bourse filing. That compared with 2.4 billion dirhams in the same period last year.
SICO Bahrain had forecast that Etisalat would make a quarterly net profit of 2.1 billion dirhams.
Emirates Telecommunications Group (Etisalat) on Thursday reported a 4.2 percent drop in third-quarter net profit, hit by increased capital expenditure.
Etisalat made a net profit of 2.3 billion dirhams ($626 million) in the three months to Sept. 30, it said in a bourse filing. That compared with 2.4 billion dirhams in the same period last year.
SICO Bahrain had forecast that Etisalat would make a quarterly net profit of 2.1 billion dirhams.
Oil recover with stock markets, demand concerns weigh | Reuters
Oil recover with stock markets, demand concerns weigh | Reuters:
Oil prices rose on Thursday alongside U.S. stock markets as Wall Street recovered from the worst meltdown since 2011 the previous day, allaying some fears that a slowdown in global economic growth would hit demand for oil.
Brent crude futures LCOc1 crude rose 80 cents to $76.78 per barrel at 11:36 a.m. EDT (1556 GMT) as U.S. equities rose amid strong corporate earnings. The global benchmark has lost around $10 a barrel since hitting a high of $86.74 on Oct. 3.
U.S. crude CLc1 rose to $67.36, up 54 cents.
Oil prices rose on Thursday alongside U.S. stock markets as Wall Street recovered from the worst meltdown since 2011 the previous day, allaying some fears that a slowdown in global economic growth would hit demand for oil.
Brent crude futures LCOc1 crude rose 80 cents to $76.78 per barrel at 11:36 a.m. EDT (1556 GMT) as U.S. equities rose amid strong corporate earnings. The global benchmark has lost around $10 a barrel since hitting a high of $86.74 on Oct. 3.
U.S. crude CLc1 rose to $67.36, up 54 cents.
MIDEAST STOCKS-Saudi leaps on earnings and conference optimism, outperforms Gulf | Reuters
MIDEAST STOCKS-Saudi leaps on earnings and conference optimism, outperforms Gulf | Reuters:
Saudi Arabia’s stock market surged on Thursday, outperforming most major Gulf markets, boosted by strong corporate earnings and improved market sentiment after a three-day investment conference in Riyadh.
The index closed 4.3 percent higher in heavy volume at 7,836 points, the highest in two weeks.
A major international investment conference in Riyadh, boycotted by some top Western executives over the killing of Saudi dissident Jamal Khashoggi, drew to a close on Thursday with the government announcing the signing of billions of dollars worth of deals or memorandums of understanding.
Saudi Arabia’s stock market surged on Thursday, outperforming most major Gulf markets, boosted by strong corporate earnings and improved market sentiment after a three-day investment conference in Riyadh.
The index closed 4.3 percent higher in heavy volume at 7,836 points, the highest in two weeks.
A major international investment conference in Riyadh, boycotted by some top Western executives over the killing of Saudi dissident Jamal Khashoggi, drew to a close on Thursday with the government announcing the signing of billions of dollars worth of deals or memorandums of understanding.
Mideast Stocks: Saudi surges over 3% on strong results, outperforms Gulf | ZAWYA MENA Edition
Mideast Stocks: Saudi surges over 3% on strong results, outperforms Gulf | ZAWYA MENA Edition:
Saudi Arabia's stock market rose sharply in early trade on Thursday, outperforming other major Gulf markets as it was buoyed by a slew of strong corporate earnings.
The main index rose 3.5 percent in the first 75 minutes of trade, with banks and petrochemical firms gaining the most.
Al Rajhi Bank added 5.2 percent after its third-quarter profit rose and top petrochemical producer Saudi Basic Industries was up 4.6 percent.
Saudi Arabia's stock market rose sharply in early trade on Thursday, outperforming other major Gulf markets as it was buoyed by a slew of strong corporate earnings.
The main index rose 3.5 percent in the first 75 minutes of trade, with banks and petrochemical firms gaining the most.
Al Rajhi Bank added 5.2 percent after its third-quarter profit rose and top petrochemical producer Saudi Basic Industries was up 4.6 percent.
Rising steel sales help Industries Qatar Q3 profit jump | ZAWYA MENA Edition
Rising steel sales help Industries Qatar Q3 profit jump | ZAWYA MENA Edition:
Middle East petrochemicals, metals and fertiliser group Industries Qatar (IQ) saw a near 80 percent jump in earnings in the third quarter, a results release indicated on Thursday.
According to Reuters calculations - based on the company's release of January-September earnings - IQ made a net profit of 1.32 billion riyals ($363 million) in July-September. That was up from 747.8 million riyals in the corresponding period of last year.
The company reported a net profit of 3.8 billion riyals for January-September, up from 2.4 billion riyals a year earlier.
Middle East petrochemicals, metals and fertiliser group Industries Qatar (IQ) saw a near 80 percent jump in earnings in the third quarter, a results release indicated on Thursday.
According to Reuters calculations - based on the company's release of January-September earnings - IQ made a net profit of 1.32 billion riyals ($363 million) in July-September. That was up from 747.8 million riyals in the corresponding period of last year.
The company reported a net profit of 3.8 billion riyals for January-September, up from 2.4 billion riyals a year earlier.
Petro-States Have Got a Problem With Their Economies - Bloomberg
Petro-States Have Got a Problem With Their Economies - Bloomberg:
Countries heavily reliant on oil and gas for revenue must diversify their economies or face worsening finances, the International Energy Agency warns in a new report.
While revenue for petro-states has always fluctuated in boom-and-bust price cycles, this time is different. Surging U.S. shale production, the expansion of renewables and increases in energy efficiency pose a more fundamental challenge.
“Now, more than at any other point in recent history, fundamental changes to the development model look unavoidable,” IEA Executive Director Fatih Birol said in an interview. “Countries cannot afford to base their economies on oil and gas revenue only. It’s high time to diversify their economies.”
Countries heavily reliant on oil and gas for revenue must diversify their economies or face worsening finances, the International Energy Agency warns in a new report.
While revenue for petro-states has always fluctuated in boom-and-bust price cycles, this time is different. Surging U.S. shale production, the expansion of renewables and increases in energy efficiency pose a more fundamental challenge.
“Now, more than at any other point in recent history, fundamental changes to the development model look unavoidable,” IEA Executive Director Fatih Birol said in an interview. “Countries cannot afford to base their economies on oil and gas revenue only. It’s high time to diversify their economies.”
U.S to stay 'key part' of Saudi economy despite forum boycott: energy minister | Reuters
U.S to stay 'key part' of Saudi economy despite forum boycott: energy minister | Reuters:
The United States will remain “a key part” of the Saudi economy despite a boycott of the Future Investment Initiative conference, Saudi Energy Minister Khalid al Falih told Elekhbariya state-TV on Thursday.
A number of Western politicians and global business chiefs stayed away from Saudi Arabia’s premier investment event over the killing of dissident journalist Jamal Khashoggi, which has sparked an international outcry.
“The U.S. will remain a key part of the Saudi economy because the interests that tie us are bigger than what is being weakened by the failed boycotting campaign of the conference,” he said.
The United States will remain “a key part” of the Saudi economy despite a boycott of the Future Investment Initiative conference, Saudi Energy Minister Khalid al Falih told Elekhbariya state-TV on Thursday.
A number of Western politicians and global business chiefs stayed away from Saudi Arabia’s premier investment event over the killing of dissident journalist Jamal Khashoggi, which has sparked an international outcry.
“The U.S. will remain a key part of the Saudi economy because the interests that tie us are bigger than what is being weakened by the failed boycotting campaign of the conference,” he said.
Oil prices fall as stock markets plunge | Reuters
Oil prices fall as stock markets plunge | Reuters:
Oil prices fell on Thursday as Asian and European stock markets plunged in the wake of Wall Street’s biggest daily decline since 2011, with investors shedding risk in an uncertain political landscape.
Brent crude oil LCOc1 fell 82 cents, or 1.1 percent, to a low of $75.35 before recovering a little to trade at $75.87 by 0900 GMT. The global benchmark has lost more than $10 a barrel since hitting a high of $86.74 on Oct. 3.
Oil prices fell on Thursday as Asian and European stock markets plunged in the wake of Wall Street’s biggest daily decline since 2011, with investors shedding risk in an uncertain political landscape.
Brent crude oil LCOc1 fell 82 cents, or 1.1 percent, to a low of $75.35 before recovering a little to trade at $75.87 by 0900 GMT. The global benchmark has lost more than $10 a barrel since hitting a high of $86.74 on Oct. 3.
Saudi Arabia third-quarter non-oil revenue up 48 percent: finance minister | Reuters
Saudi Arabia third-quarter non-oil revenue up 48 percent: finance minister | Reuters:
Saudi Arabia’s third-quarter non-oil revenue jumped 48 percent from the same period last year, to 211 billion riyals ($56.25 billion), its finance minister said on Thursday.
The kingdom, which is working on a number of economic reforms to diversify its oil-reliant economy, had non-oil revenues of 89.4 billion riyals in the second quarter, up 42 percent year on year.
Speaking at an investment conference in Riyadh, Mohammed al-Jadaan said that spending in the third quarter went up by 25 percent.
Saudi Arabia’s third-quarter non-oil revenue jumped 48 percent from the same period last year, to 211 billion riyals ($56.25 billion), its finance minister said on Thursday.
The kingdom, which is working on a number of economic reforms to diversify its oil-reliant economy, had non-oil revenues of 89.4 billion riyals in the second quarter, up 42 percent year on year.
Speaking at an investment conference in Riyadh, Mohammed al-Jadaan said that spending in the third quarter went up by 25 percent.
UPDATE 1-Oman sells $1.5 billion sukuk as Khashoggi crisis raises funding costs | Reuters
UPDATE 1-Oman sells $1.5 billion sukuk as Khashoggi crisis raises funding costs | Reuters:
Oman sold $1.5 billion in sukuk, or Islamic bonds, on Wednesday but the generous investor returns it had to offer showed that the crisis over the killing of Saudi journalist Jamal Khashoggi is raising funding costs across the Gulf region, fund managers said.
The bond issue is Oman’s second public debt issuance this year, as the sultanate borrows internationally to finance a budget deficit caused by a slump in oil prices over the past few years. It follows a $6.5 billion conventional bond issue in January, the country’s largest ever debt sale.
Oman’s new debt issue came amid rising investor concerns over the deterioration of Saudi Arabia’s international relations after the killing of Khashoggi, a critic of the kingdom’s Crown Prince Mohammed bin Salman.
Oman sold $1.5 billion in sukuk, or Islamic bonds, on Wednesday but the generous investor returns it had to offer showed that the crisis over the killing of Saudi journalist Jamal Khashoggi is raising funding costs across the Gulf region, fund managers said.
The bond issue is Oman’s second public debt issuance this year, as the sultanate borrows internationally to finance a budget deficit caused by a slump in oil prices over the past few years. It follows a $6.5 billion conventional bond issue in January, the country’s largest ever debt sale.
Oman’s new debt issue came amid rising investor concerns over the deterioration of Saudi Arabia’s international relations after the killing of Khashoggi, a critic of the kingdom’s Crown Prince Mohammed bin Salman.
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