Return of senior Saudi prince sparks speculation over role of MBS | Financial Times:
The return home of a senior Saudi Arabian prince has raised speculation of a rebalancing of power in the ruling family as it grapples with a political crisis caused by the killing of Jamal Khashoggi.
The return from London of Prince Ahmed bin Abdulaziz, a younger brother of King Salman, comes as questions are raised over the position of Crown Prince Mohammed bin Salman, the kingdom’s de facto ruler. Fears over his involvement in Khashoggi’s death, allegedly authorised by the prince’s close advisers, have cast doubt on his judgment and competence.
The government has pledged to hold those responsible for the killing to account.
Wednesday 31 October 2018
Exclusive: Kuwait bourse expects wave of IPOs and 15% more capital inflows post-FTSE upgrade - The National
Exclusive: Kuwait bourse expects wave of IPOs and 15% more capital inflows post-FTSE upgrade - The National:
Kuwait’s stock exchange, which will see two public offerings by year end, still intends to list in 2019 and expects to record as much as 15 per cent more in capital inflows following its inclusion in the FTSE Russell Emerging Market index, its chief executive said.
“The country saw an influx of foreign investors even before the inclusion and now we are seeing a lot of interest from international investors who are contacting us and our local listed companies … more frequently,” said Khaled Al Khaled of Boursa Kuwait.
It is too early to calculate the exact rise in flows since September, and there is a second tranche of inclusion in December, but the chief executive said gaining emerging market status together with capital market reforms Kuwait has been implementing since 2016, will boost liquidity and encourage more public listings.
Kuwait’s stock exchange, which will see two public offerings by year end, still intends to list in 2019 and expects to record as much as 15 per cent more in capital inflows following its inclusion in the FTSE Russell Emerging Market index, its chief executive said.
“The country saw an influx of foreign investors even before the inclusion and now we are seeing a lot of interest from international investors who are contacting us and our local listed companies … more frequently,” said Khaled Al Khaled of Boursa Kuwait.
It is too early to calculate the exact rise in flows since September, and there is a second tranche of inclusion in December, but the chief executive said gaining emerging market status together with capital market reforms Kuwait has been implementing since 2016, will boost liquidity and encourage more public listings.
UAE banks require minimum 60 per cent national shareholding | GulfNews.com
UAE banks require minimum 60 per cent national shareholding | GulfNews.com:
The new Federal Law (Law No. 14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities requires a minimum of 60 per cent UAE ownership for local banks licenced to operate in the country.
Article 74 of the law requires all UAE banks to be formed as public joint-stock companies. However, branches of foreign banks operating in the country are exempt from this requirement.
Other financial institutions are free to be formed as joint-stock companies or limited-liability companies, in accordance with the rules and conditions issued by the central bank’s board. Exchange houses and monetary intermediaries are allowed under sole proprietorship, or take any other legal form in accordance with the rules and conditions issued by the central bank’s board of directors.
The new Federal Law (Law No. 14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities requires a minimum of 60 per cent UAE ownership for local banks licenced to operate in the country.
Article 74 of the law requires all UAE banks to be formed as public joint-stock companies. However, branches of foreign banks operating in the country are exempt from this requirement.
Other financial institutions are free to be formed as joint-stock companies or limited-liability companies, in accordance with the rules and conditions issued by the central bank’s board. Exchange houses and monetary intermediaries are allowed under sole proprietorship, or take any other legal form in accordance with the rules and conditions issued by the central bank’s board of directors.
QSE surpasses 10,300 levels on increased buying interests of foreign and Gulf institutions
QSE surpasses 10,300 levels on increased buying interests of foreign and Gulf institutions:
Increased buying interests of foreign and Gulf institutions Wednesday handed a 138 points jump to the Qatar Stock Exchange, which surpassed 10,300 levels.
Banking, real estate, telecom and insurance counters saw higher-than-average demand, leading the 20-stock Qatar Index surge 1.35% to 10,300.92 points, which is up 20.85% year-to-date.
Market capitalisation expanded about QR13bn or 2.27% to QR580.5bn, mainly owing to heavy demand, especially for large cap equities.
Increased buying interests of foreign and Gulf institutions Wednesday handed a 138 points jump to the Qatar Stock Exchange, which surpassed 10,300 levels.
Banking, real estate, telecom and insurance counters saw higher-than-average demand, leading the 20-stock Qatar Index surge 1.35% to 10,300.92 points, which is up 20.85% year-to-date.
Market capitalisation expanded about QR13bn or 2.27% to QR580.5bn, mainly owing to heavy demand, especially for large cap equities.
Qatar Opens Struggling Property Market to Foreign Ownership - Bloomberg
Qatar Opens Struggling Property Market to Foreign Ownership - Bloomberg:
Qatar will allow foreigners to own property, the latest in a series of measures aimed to stimulate the gas-rich country’s economy more than a year into its boycott by Gulf neighbors.
Under a new law issued Tuesday by Qatar’s Emir Sheikh Tamim Bin Hamad Bin Al Thani, foreigners will be able to own property in areas designated by Qatar’s cabinet, according to the official Qatar News Agency.
Qatar, the world’s biggest exporter of liquefied natural gas, has used its wealth to blunt the effects of an embargoed imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June 2017. Its economy is growing, the stock index recouped losses, and its $200 billion infrastructure upgrade to prepare for the 2022 World Cup hasn’t been interrupted.
Qatar will allow foreigners to own property, the latest in a series of measures aimed to stimulate the gas-rich country’s economy more than a year into its boycott by Gulf neighbors.
Under a new law issued Tuesday by Qatar’s Emir Sheikh Tamim Bin Hamad Bin Al Thani, foreigners will be able to own property in areas designated by Qatar’s cabinet, according to the official Qatar News Agency.
Qatar, the world’s biggest exporter of liquefied natural gas, has used its wealth to blunt the effects of an embargoed imposed by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt in June 2017. Its economy is growing, the stock index recouped losses, and its $200 billion infrastructure upgrade to prepare for the 2022 World Cup hasn’t been interrupted.
Airbus in talks to unjam some HNA, Emirates deliveries: sources | Reuters
Airbus in talks to unjam some HNA, Emirates deliveries: sources | Reuters:
Airbus faces new headaches delivering A330s to airlines tied to China’s cash-strapped HNA Group and is in separate talks with Emirates over the timing of undelivered A380 superjumbos.
Industry sources pinpointed the unrelated problems as the reasons for commercial “challenges” disclosed by Airbus on Wednesday.
The planemaker said with quarterly earnings that it hoped to resolve by year-end unidentified commercial issues surrounding the current-generation A330ceo and the A380 superjumbo as it tries to soften the decline of two key long-haul models.
Airbus faces new headaches delivering A330s to airlines tied to China’s cash-strapped HNA Group and is in separate talks with Emirates over the timing of undelivered A380 superjumbos.
Industry sources pinpointed the unrelated problems as the reasons for commercial “challenges” disclosed by Airbus on Wednesday.
The planemaker said with quarterly earnings that it hoped to resolve by year-end unidentified commercial issues surrounding the current-generation A330ceo and the A380 superjumbo as it tries to soften the decline of two key long-haul models.
Abu Dhabi National Hotels in talks to buy Emaar's hotel assets -sources | Reuters
Abu Dhabi National Hotels in talks to buy Emaar's hotel assets -sources | Reuters:
Abu Dhabi National Hotels (ADNH) is in talks to buy some hotel buildings from Dubai’s Emaar Properties, two sources familiar with the matter said, as Emaar increasingly focuses on its core businesses.
ADNH, one of the biggest hotel owners in the emirate of Abu Dhabi, has been in advanced discussions with Emaar over the last two months, the sources said, adding Emaar would continue to manage the hotels.
ADNH declined to comment. Emaar said: “we are in discussion with a number of parties who have shown interest”, without giving details.
Abu Dhabi National Hotels (ADNH) is in talks to buy some hotel buildings from Dubai’s Emaar Properties, two sources familiar with the matter said, as Emaar increasingly focuses on its core businesses.
ADNH, one of the biggest hotel owners in the emirate of Abu Dhabi, has been in advanced discussions with Emaar over the last two months, the sources said, adding Emaar would continue to manage the hotels.
ADNH declined to comment. Emaar said: “we are in discussion with a number of parties who have shown interest”, without giving details.
Abu Dhabi's Mubadala sets final price guidance for 10-yr dollar bond- document | Reuters
Abu Dhabi's Mubadala sets final price guidance for 10-yr dollar bond- document | Reuters:
Abu Dhabi’s Mubadala plans to raise $800 million through a 10-year bond issue, a document by one of the banks leading the deal showed. Mubadala Development Company, the state investment fund, has set the final price guidance for the planned bond at 135-140 basis points over mid-swaps. The deal, expected to price later on Wednesday, received orders in excess of $1.5 billion, according to the document.
Abu Dhabi’s Mubadala plans to raise $800 million through a 10-year bond issue, a document by one of the banks leading the deal showed. Mubadala Development Company, the state investment fund, has set the final price guidance for the planned bond at 135-140 basis points over mid-swaps. The deal, expected to price later on Wednesday, received orders in excess of $1.5 billion, according to the document.
Saudi posts big decline in fiscal deficit in third-quarter as oil revenues rise | Reuters
Saudi posts big decline in fiscal deficit in third-quarter as oil revenues rise | Reuters:
Saudi Arabia on Wednesday reported a third-quarter fiscal deficit of 7.3 billion riyals ($1.95 billion), a big drop from the 48.7 billion riyals reported a year earlier thanks to a surge in oil revenues.
The latest deficit figure was close to the 7.36 billion riyals recorded in the second quarter.
“The improvement in fiscal performance is reflected by the decrease in the deficit with positive oil and non-oil growth, compared to the same period in 2017, and the planned budget,” Finance Minister Mohammed al-Jadaan said in a statement.
Saudi Arabia on Wednesday reported a third-quarter fiscal deficit of 7.3 billion riyals ($1.95 billion), a big drop from the 48.7 billion riyals reported a year earlier thanks to a surge in oil revenues.
The latest deficit figure was close to the 7.36 billion riyals recorded in the second quarter.
“The improvement in fiscal performance is reflected by the decrease in the deficit with positive oil and non-oil growth, compared to the same period in 2017, and the planned budget,” Finance Minister Mohammed al-Jadaan said in a statement.
U.S. crude stocks rise for a sixth week, fuel draws down: EIA | Reuters
U.S. crude stocks rise for a sixth week, fuel draws down: EIA | Reuters:
U.S. crude oil inventories climbed for a sixth straight week, but grew less than forecast last week, amid a drop in net imports and the government’s sale of barrels from its reserve, while gasoline and distillate stocks drew down.
The Energy Information Administration said on Wednesday that crude inventories, excluding the Strategic Petroleum Reserve, rose 3.2 million barrels in the week to Oct. 26, less than analyst forecasts for a 4.1 million-barrel build.
U.S. crude oil inventories climbed for a sixth straight week, but grew less than forecast last week, amid a drop in net imports and the government’s sale of barrels from its reserve, while gasoline and distillate stocks drew down.
The Energy Information Administration said on Wednesday that crude inventories, excluding the Strategic Petroleum Reserve, rose 3.2 million barrels in the week to Oct. 26, less than analyst forecasts for a 4.1 million-barrel build.
Commentary: Five reasons why Trump’s Iran sanctions will fail | Reuters
Commentary: Five reasons why Trump’s Iran sanctions will fail | Reuters:
The next round of economic sanctions on Iran, which will start going into effect on Nov.4, will mainly target the country’s oil and gas industries. These sanctions were eased after the 2015 signing of the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, but are being phased back in following President Donald Trump’s decision to withdraw from the accord six months ago.
Trump’s goal in reinstituting the sanctions is to kill the nuclear deal, to bring Iran’s economy to the point of total collapse, to contain Iran’s regional involvement in Syria, Iraq and Yemen, and, in spite of Washington’s denials, presumably to celebrate the collapse of Iran’s ruling regime. The White House’s official position is that, by increasing economic and political pressure, it aims to bring Iran back to the negotiating table in order to replace the JCPOA with a new deal that bears Trump’s name.
There are at least five reasons why Trump’s strategy will fail.
The next round of economic sanctions on Iran, which will start going into effect on Nov.4, will mainly target the country’s oil and gas industries. These sanctions were eased after the 2015 signing of the Joint Comprehensive Plan of Action (JCPOA), commonly known as the Iran nuclear deal, but are being phased back in following President Donald Trump’s decision to withdraw from the accord six months ago.
Trump’s goal in reinstituting the sanctions is to kill the nuclear deal, to bring Iran’s economy to the point of total collapse, to contain Iran’s regional involvement in Syria, Iraq and Yemen, and, in spite of Washington’s denials, presumably to celebrate the collapse of Iran’s ruling regime. The White House’s official position is that, by increasing economic and political pressure, it aims to bring Iran back to the negotiating table in order to replace the JCPOA with a new deal that bears Trump’s name.
There are at least five reasons why Trump’s strategy will fail.
OPEC oil output rises to highest since 2016 despite Iran: Reuters survey | Reuters
OPEC oil output rises to highest since 2016 despite Iran: Reuters survey | Reuters:
OPEC has boosted oil production in October to the highest since 2016, a Reuters survey found, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to U.S. sanctions.
The 15-member Organization of the Petroleum Exporting Countries has pumped 33.31 million barrels per day this month, the survey on Wednesday found, up 390,000 bpd from September and the highest by OPEC as a group since December 2016.
OPEC agreed in June to pump more oil after pressure from U.S. President Donald Trump to curb rising prices and make up for an expected shortfall in Iranian exports. Oil LCOc1 hit a four-year high of $86.74 a barrel on Oct. 3 but has since eased to $76 as concerns over tight supplies faded.
OPEC has boosted oil production in October to the highest since 2016, a Reuters survey found, as higher output led by the United Arab Emirates and Libya more than offset a cut in Iranian shipments due to U.S. sanctions.
The 15-member Organization of the Petroleum Exporting Countries has pumped 33.31 million barrels per day this month, the survey on Wednesday found, up 390,000 bpd from September and the highest by OPEC as a group since December 2016.
OPEC agreed in June to pump more oil after pressure from U.S. President Donald Trump to curb rising prices and make up for an expected shortfall in Iranian exports. Oil LCOc1 hit a four-year high of $86.74 a barrel on Oct. 3 but has since eased to $76 as concerns over tight supplies faded.
Kuwait bourse seeks to create VC platform to finance startups-CEO | Reuters
Kuwait bourse seeks to create VC platform to finance startups-CEO | Reuters:
The Kuwait Stock Exchange plans to set up a venture capital market to attract and support the country’s growing startups, the first idea of its kind in the Gulf region, the bourse’s chief executive said.
Khaled al-Khaled, the chief executive of Boursa Kuwait, wants to build a platform that can attract, keep and grow these companies so that they can eventually list on its main market.
“We are working closely with Kuwaiti young entrepreneurs to introduce a venture capital market,” he said in an interview in Dubai. “I want these entrepreneurs to grow locally. If they grow enough they will be listed in the Kuwaiti market.”
The Kuwait Stock Exchange plans to set up a venture capital market to attract and support the country’s growing startups, the first idea of its kind in the Gulf region, the bourse’s chief executive said.
Khaled al-Khaled, the chief executive of Boursa Kuwait, wants to build a platform that can attract, keep and grow these companies so that they can eventually list on its main market.
“We are working closely with Kuwaiti young entrepreneurs to introduce a venture capital market,” he said in an interview in Dubai. “I want these entrepreneurs to grow locally. If they grow enough they will be listed in the Kuwaiti market.”
Iran sanctions seen keeping oil above $75, but 2019 demand outlook darkens | Reuters
Iran sanctions seen keeping oil above $75, but 2019 demand outlook darkens | Reuters:
Oil is likely to stay above $75 a barrel, fueled by supply disruptions exacerbated by U.S. sanctions on Iran, but further gains could be limited as economists and analysts see demand growth slowing next year due to trade wars and economic weakness.
A survey of 46 economists and analysts forecast Brent crude LCOc1 to average $76.88 a barrel in 2019, up from the $73.75 forecast in September. The price is expected to average $74.48 in 2018, versus the $73.57 average so far this year.
Analysts who spoke to Reuters said demand is expected to decelerate in 2019, if concern over a widespread economic slowdown proves to be justified.
Oil is likely to stay above $75 a barrel, fueled by supply disruptions exacerbated by U.S. sanctions on Iran, but further gains could be limited as economists and analysts see demand growth slowing next year due to trade wars and economic weakness.
A survey of 46 economists and analysts forecast Brent crude LCOc1 to average $76.88 a barrel in 2019, up from the $73.75 forecast in September. The price is expected to average $74.48 in 2018, versus the $73.57 average so far this year.
Analysts who spoke to Reuters said demand is expected to decelerate in 2019, if concern over a widespread economic slowdown proves to be justified.
Yngve Slyngstad: decision time for Norway’s oil fund | Financial Times
Yngve Slyngstad: decision time for Norway’s oil fund | Financial Times:
The head of the world’s largest sovereign wealth fund has no secretary. Yngve Slyngstad, chief executive of Norges Bank Investment Management, which oversees Norway’s $1tn oil fund, books his own travel and arranges his own meetings.
The 55-year-old took a similarly idiosyncratic path to the top. He has four masters degrees — law, business management, economics and political sciences.
Studies over, he went on the road for four years, aiming to travel from Patagonia to Alaska (he stopped in New York), and Alexandria to Cape Town, before spending six months alone in an Arctic cabin studying German philosophy.
The head of the world’s largest sovereign wealth fund has no secretary. Yngve Slyngstad, chief executive of Norges Bank Investment Management, which oversees Norway’s $1tn oil fund, books his own travel and arranges his own meetings.
The 55-year-old took a similarly idiosyncratic path to the top. He has four masters degrees — law, business management, economics and political sciences.
Studies over, he went on the road for four years, aiming to travel from Patagonia to Alaska (he stopped in New York), and Alexandria to Cape Town, before spending six months alone in an Arctic cabin studying German philosophy.
Trump's Success in Isolating Iran Can Be Seen on a Dubai Menu - Bloomberg
Trump's Success in Isolating Iran Can Be Seen on a Dubai Menu - Bloomberg:
Anyone wanting to gauge Donald Trump’s success in isolating Iran would do well to study the menu at Maryam Sharifi’s restaurant in Dubai.
Iranian businessmen are leaving the city as links with the Islamic Republic are slowly severed, and in July, she began offering pasta and biryani alongside Persian favorites like kebabs and saffron rice to attract a broader clientele. “We had to train our cook to make different dishes,” said Sharifi, an Iranian who moved to Dubai 12 years ago.
The Homa Iranian eatery’s changing fortunes highlight the U.A.E’s crucial role in enforcing U.S. sanctions on Iran, a historic trade partner situated a short sail across the Strait of Hormuz, the narrow entrance to the world’s oil-exporting nexus.
Anyone wanting to gauge Donald Trump’s success in isolating Iran would do well to study the menu at Maryam Sharifi’s restaurant in Dubai.
Iranian businessmen are leaving the city as links with the Islamic Republic are slowly severed, and in July, she began offering pasta and biryani alongside Persian favorites like kebabs and saffron rice to attract a broader clientele. “We had to train our cook to make different dishes,” said Sharifi, an Iranian who moved to Dubai 12 years ago.
The Homa Iranian eatery’s changing fortunes highlight the U.A.E’s crucial role in enforcing U.S. sanctions on Iran, a historic trade partner situated a short sail across the Strait of Hormuz, the narrow entrance to the world’s oil-exporting nexus.
MIDEAST STOCKS-Saudi profits from corporate results, most Gulf markets inch up | Reuters
MIDEAST STOCKS-Saudi profits from corporate results, most Gulf markets inch up | Reuters:
Saudi Arabia’s stock market rose on Wednesday, aided by strong corporate earnings, while market heavyweights Emaar Properties and Emirates NBD helped support Dubai’s index.
The main Saudi index was up 0.6 percent, thanks in part to a nearly 8 percent jump in Lazurde Company For Jewelry after it posted a third-quarter profit.
Middle East funds are not entirely bearish toward Saudi Arabia’s stock market but have become more wary because of concerns over the fallout from the killing of Khashoggi, a Reuters poll showed on Wednesday.
Saudi Arabia’s stock market rose on Wednesday, aided by strong corporate earnings, while market heavyweights Emaar Properties and Emirates NBD helped support Dubai’s index.
The main Saudi index was up 0.6 percent, thanks in part to a nearly 8 percent jump in Lazurde Company For Jewelry after it posted a third-quarter profit.
Middle East funds are not entirely bearish toward Saudi Arabia’s stock market but have become more wary because of concerns over the fallout from the killing of Khashoggi, a Reuters poll showed on Wednesday.
Abu Dhabi's Mubadala markets 10-year dollar bond | ZAWYA MENA Edition
Abu Dhabi's Mubadala markets 10-year dollar bond | ZAWYA MENA Edition:
Abu Dhabi's Mubadala is marketing a 10-year U.S. dollar-denominated bond issue with an initial price guidance of around 150 basis points over mid-swaps, a document by one of the banks leading the deal showed.
The senior unsecured bond will be of benchmark size, which generally means upwards of $500 million, and proceeds will be used for general corporate purposes.
Mubadala Development Company, a state investment fund, is rated A2 by Moody's, and AA by S&P and Fitch.
Abu Dhabi's Mubadala is marketing a 10-year U.S. dollar-denominated bond issue with an initial price guidance of around 150 basis points over mid-swaps, a document by one of the banks leading the deal showed.
The senior unsecured bond will be of benchmark size, which generally means upwards of $500 million, and proceeds will be used for general corporate purposes.
Mubadala Development Company, a state investment fund, is rated A2 by Moody's, and AA by S&P and Fitch.
Poll: Mideast funds wary, not bearish on Saudi | ZAWYA MENA Edition
Poll: Mideast funds wary, not bearish on Saudi | ZAWYA MENA Edition:
Middle East funds have become more wary but not outright bearish toward Saudi Arabia's stock market because of concern over the fallout from the killing of Jamal Khashoggi, a monthly Reuters poll showed on Wednesday.
Foreign investors, including those from other Gulf states, were net sellers of Saudi equities for most of this month, partly because of fear that Khashoggi's death could damage Saudi ties with the West and conceivably lead to economic sanctions.
Gulf investors sold a net $147 million of Saudi stocks last week, after net sales of $98 million in the previous week and $28 million in the week before that, according to exchange data.
Middle East funds have become more wary but not outright bearish toward Saudi Arabia's stock market because of concern over the fallout from the killing of Jamal Khashoggi, a monthly Reuters poll showed on Wednesday.
Foreign investors, including those from other Gulf states, were net sellers of Saudi equities for most of this month, partly because of fear that Khashoggi's death could damage Saudi ties with the West and conceivably lead to economic sanctions.
Gulf investors sold a net $147 million of Saudi stocks last week, after net sales of $98 million in the previous week and $28 million in the week before that, according to exchange data.
Bahrain's oil company targets $1 bln through dual-tranche bond | Reuters
Bahrain's oil company targets $1 bln through dual-tranche bond | Reuters:
Bahrain’s state-owned oil company Nogaholding plans to raise $1 billion through a dual-tranche U.S. dollar-denominated bond on Wednesday, a document by one of the banks leading the transaction showed.
The deal is the first foray by a Bahraini entity into the international debt markets since the government obtained an aid package from its Gulf neighbours earlier this month.
Nogaholding, the investment arm of Bahrain’s National Oil and Gas Authority, tried to raise international funds in April, but that deal was delayed, partly by emerging-market weakness and partly by doubts among investors that Bahrain could repay its debt.
Bahrain’s state-owned oil company Nogaholding plans to raise $1 billion through a dual-tranche U.S. dollar-denominated bond on Wednesday, a document by one of the banks leading the transaction showed.
The deal is the first foray by a Bahraini entity into the international debt markets since the government obtained an aid package from its Gulf neighbours earlier this month.
Nogaholding, the investment arm of Bahrain’s National Oil and Gas Authority, tried to raise international funds in April, but that deal was delayed, partly by emerging-market weakness and partly by doubts among investors that Bahrain could repay its debt.
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