The GCC’s pension systems are ripe for reform - The National:
Providing generously for retirement is a source of pride for the region, but funding a financially secure future is an expensive proposition for any government.
With most of the world shifting to a defined contribution system, that places the onus on the individual to save and provide for their future, the GCC still relies on a defined benefit system – where the income is guaranteed until death.
These generous policies for the local populations now face a key problem: how to ensure they remain sustainable in the long-term.
Wednesday, 21 November 2018
Abu Dhabi index extends losses
Abu Dhabi index extends losses:
The Abu Dhabi index closed half a per cent lower due to continued weakness in heavy weights like First Abu Dhabi Bank and Etisalat. The Dubai index stabilised.
The Abu Dhabi Securities Exchange General index closed 0.4 per cent lower at 4,970.88. FAB closed nearly 1 per cent lower at Dh14.34. Etisalat closed 0.12 per cent higher at Dh16.94.
The Dubai Financial Market general index closed 0.24 per cent higher at 2,756.69. Arabtec shares closed 1.79 per cent higher at Dh2.27. “Traders may look to hold Arabtec with stop loss placed under the support at Dh2.14 level. The stock may gain strength towards the higher resistance at Dh2.35 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note.
The Abu Dhabi index closed half a per cent lower due to continued weakness in heavy weights like First Abu Dhabi Bank and Etisalat. The Dubai index stabilised.
The Abu Dhabi Securities Exchange General index closed 0.4 per cent lower at 4,970.88. FAB closed nearly 1 per cent lower at Dh14.34. Etisalat closed 0.12 per cent higher at Dh16.94.
The Dubai Financial Market general index closed 0.24 per cent higher at 2,756.69. Arabtec shares closed 1.79 per cent higher at Dh2.27. “Traders may look to hold Arabtec with stop loss placed under the support at Dh2.14 level. The stock may gain strength towards the higher resistance at Dh2.35 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said in a note.
Saudi Arabia's Wealth Fund Said to Plan Health-Care Investments - Bloomberg
Saudi Arabia's Wealth Fund Said to Plan Health-Care Investments - Bloomberg:
Saudi Arabia’s sovereign wealth fund is planning investments in the kingdom’s private health-care services and hospitals as it seeks to modernize domestic infrastructure, people familiar with the matter said.
The Public Investment Fund may appoint an adviser in the near future to help identify investment opportunities, the people said, asking not to be identified as the deliberations are private. The plan may require billions of dollars, though no final decisions have been made, they said. It could involve investments in existing health-care companies or partnering with foreign companies looking to establish operations in the kingdom, the people said.
“The Public Investment Fund regularly explores potential investment opportunities to support portfolio diversification efforts, but does not comment on specific discussions or activities,” a spokesman for the fund said.
Saudi Arabia’s sovereign wealth fund is planning investments in the kingdom’s private health-care services and hospitals as it seeks to modernize domestic infrastructure, people familiar with the matter said.
The Public Investment Fund may appoint an adviser in the near future to help identify investment opportunities, the people said, asking not to be identified as the deliberations are private. The plan may require billions of dollars, though no final decisions have been made, they said. It could involve investments in existing health-care companies or partnering with foreign companies looking to establish operations in the kingdom, the people said.
“The Public Investment Fund regularly explores potential investment opportunities to support portfolio diversification efforts, but does not comment on specific discussions or activities,” a spokesman for the fund said.
Dubai's Worst-Performing Stocks Indicate Mounting Local Woes - Bloomberg
Dubai's Worst-Performing Stocks Indicate Mounting Local Woes - Bloomberg:
Contractors, retail operators, theme parks and financial-services companies are among those that exemplify some of the pillars of Dubai’s economy. But they’re also the biggest losers in its stock market this year.
Shares of Drake & Scull International PJSC, Marka PJSC, DXB Entertainments PJSC and Amlak Finance lost at least 47 percent so far in 2018, more than twice the average of the main local stock index, which is headed for its worst performance in a decade.
Biggest Losers
Four biggest decliners in Dubai's market have fallen at least 47% Source:
The variety of sectors in the group of laggards indicates that the concerns aren’t necessarily tied to one specific industry. A slowdown in activity in the oil-rich region, an oversupply in Dubai’s residential real-estate market and surging cost of living and doing business are some of the factors crippling hopes that a recovery is on the way.
Contractors, retail operators, theme parks and financial-services companies are among those that exemplify some of the pillars of Dubai’s economy. But they’re also the biggest losers in its stock market this year.
Shares of Drake & Scull International PJSC, Marka PJSC, DXB Entertainments PJSC and Amlak Finance lost at least 47 percent so far in 2018, more than twice the average of the main local stock index, which is headed for its worst performance in a decade.
Biggest Losers
Four biggest decliners in Dubai's market have fallen at least 47% Source:
Bloomberg *As of Nov. 21
The variety of sectors in the group of laggards indicates that the concerns aren’t necessarily tied to one specific industry. A slowdown in activity in the oil-rich region, an oversupply in Dubai’s residential real-estate market and surging cost of living and doing business are some of the factors crippling hopes that a recovery is on the way.
UAE's Mubadala sovereign fund to open Moscow office next week- RIA | ZAWYA MENA Edition
UAE's Mubadala sovereign fund to open Moscow office next week- RIA | ZAWYA MENA Edition:
The United Arab Emirates' Mubadala sovereign wealth fund will open an office in Moscow next week, the RIA news agency cited the head of the office as saying on Wednesday.
The United Arab Emirates' Mubadala sovereign wealth fund will open an office in Moscow next week, the RIA news agency cited the head of the office as saying on Wednesday.
Mideast Stocks: Egypt slides on blue-chip sell-off, Most Gulf markets gain | ZAWYA MENA Edition
Mideast Stocks: Egypt slides on blue-chip sell-off, Most Gulf markets gain | ZAWYA MENA Edition:
The Egyptian index fell sharply on Wednesday, pressured by its banks amid weak global sentiment, while most major Gulf markets rose marginally.
Egypt's blue-chip index dropped 1.3 percent, with 23 of thirty stocks declining.
The country's largest lender Commercial International Bank fell 2.8 percent and Ezz Steel dropped 3.5 percent.
The Egyptian index fell sharply on Wednesday, pressured by its banks amid weak global sentiment, while most major Gulf markets rose marginally.
Egypt's blue-chip index dropped 1.3 percent, with 23 of thirty stocks declining.
The country's largest lender Commercial International Bank fell 2.8 percent and Ezz Steel dropped 3.5 percent.
Abu Dhabi's IPIC files lawsuit against Goldman Sachs, others over 1MDB case | Reuters
Abu Dhabi's IPIC files lawsuit against Goldman Sachs, others over 1MDB case | Reuters:
Abu Dhabi’s International Petroleum Investment Co (IPIC) said on Wednesday it had filed a lawsuit against U.S. investment bank Goldman Sachs (GS.N) and others to recover losses suffered through its dealings with Malaysian state fund 1MDB.
1Malaysia Development Bhd (1MDB) [TERRN.UL] is the subject of corruption and money-laundering investigations in at least six countries.
Government-owned IPIC said in a statement it filed a civil legal action in New York against Goldman, and others, alleging they “played a central role in a long-running effort to corrupt former executives of IPIC and its subsidiary Aabar Investments, and mislead IPIC and Aabar.”
Abu Dhabi’s International Petroleum Investment Co (IPIC) said on Wednesday it had filed a lawsuit against U.S. investment bank Goldman Sachs (GS.N) and others to recover losses suffered through its dealings with Malaysian state fund 1MDB.
1Malaysia Development Bhd (1MDB) [TERRN.UL] is the subject of corruption and money-laundering investigations in at least six countries.
Government-owned IPIC said in a statement it filed a civil legal action in New York against Goldman, and others, alleging they “played a central role in a long-running effort to corrupt former executives of IPIC and its subsidiary Aabar Investments, and mislead IPIC and Aabar.”
Oil rebounds after prior session's slide; glut worries persist | Reuters
Oil rebounds after prior session's slide; glut worries persist | Reuters:
Oil prices rose about $1 a barrel a barrel on Wednesday, bouncing from the lowest levels in months, after U.S. government data showed strong demand for refined fuel, but concerns remained over rising global crude supply.
Brent crude LCOc1 futures gained 95 cents to settle at $63.48 a barrel, up 1.52 percent. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.20 to settle at $54.63 a barrel, a 2.25 percent gain.
U.S. crude stocks USOILC=ECI rose 4.9 million barrels last week, the Energy Information Administration said, a larger-than-expected increase. Crude inventories have risen for nine straight weeks, the longest streak since March 2017.
Oil prices rose about $1 a barrel a barrel on Wednesday, bouncing from the lowest levels in months, after U.S. government data showed strong demand for refined fuel, but concerns remained over rising global crude supply.
Brent crude LCOc1 futures gained 95 cents to settle at $63.48 a barrel, up 1.52 percent. U.S. West Texas Intermediate (WTI) crude CLc1 futures rose $1.20 to settle at $54.63 a barrel, a 2.25 percent gain.
U.S. crude stocks USOILC=ECI rose 4.9 million barrels last week, the Energy Information Administration said, a larger-than-expected increase. Crude inventories have risen for nine straight weeks, the longest streak since March 2017.
Donald Trump stands by his Saudi man | Financial Times
Donald Trump stands by his Saudi man | Financial Times:
This is a big week for Saudi Arabia and its embattled young crown prince, Mohammed bin Salman, as it struggles to shake free from the scandal caused by the savage murder of the journalist Jamal Khashoggi by Saudi agents at its consulate in Istanbul last month.
The US Central Intelligence Agency last week concluded that Prince Mohammed ordered the killing of Khashoggi, an eloquent and measured critic who took sanctuary in the US last year and wrote columns for the Washington Post. President Donald Trump, by contrast, waffled for a while, saying the CIA finding was a “very premature report”.
Then on Tuesday he made up his mind: he is standing by his man. Yes, the crown prince may have ordered the hit (“maybe he did and maybe he didn’t”) but, frankly, this president does not care. It is all overwhelmed by the hundreds of billions of Saudi petrodollars he fondly believes will flow into the American economy, and the kingdom’s purported weight in the fight against Iran.
This is a big week for Saudi Arabia and its embattled young crown prince, Mohammed bin Salman, as it struggles to shake free from the scandal caused by the savage murder of the journalist Jamal Khashoggi by Saudi agents at its consulate in Istanbul last month.
The US Central Intelligence Agency last week concluded that Prince Mohammed ordered the killing of Khashoggi, an eloquent and measured critic who took sanctuary in the US last year and wrote columns for the Washington Post. President Donald Trump, by contrast, waffled for a while, saying the CIA finding was a “very premature report”.
Then on Tuesday he made up his mind: he is standing by his man. Yes, the crown prince may have ordered the hit (“maybe he did and maybe he didn’t”) but, frankly, this president does not care. It is all overwhelmed by the hundreds of billions of Saudi petrodollars he fondly believes will flow into the American economy, and the kingdom’s purported weight in the fight against Iran.
OPEC's Worst Nightmare: The Permian Is About to Pump a Lot More - Bloomberg
OPEC's Worst Nightmare: The Permian Is About to Pump a Lot More - Bloomberg: The map lays out OPEC’s nightmare in graphic form.
An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.
OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.
“The Permian will continue to grow and OPEC needs to learn to live with it,’’ said Mike Loya, the top executive in the Americas for Vitol Group, the world’s largest independent oil-trading house.
An infestation of dots, thousands of them, represent oil wells in the Permian basin of West Texas and a slice of New Mexico. In less than a decade, U.S. companies have drilled 114,000. Many of them would turn a profit even with crude prices as low as $30 a barrel.
OPEC’s bad dream only deepens next year, when Permian producers expect to iron out distribution snags that will add three pipelines and as much as 2 million barrels of oil a day.
“The Permian will continue to grow and OPEC needs to learn to live with it,’’ said Mike Loya, the top executive in the Americas for Vitol Group, the world’s largest independent oil-trading house.
Saudi's flyadeal focuses on domestic market, with IPO mooted for 2020 | ZAWYA MENA Edition
Saudi's flyadeal focuses on domestic market, with IPO mooted for 2020 | ZAWYA MENA Edition:
The Saudi Arabian domestic flight market offers ‘deep opportunities’ and flyadeal will continue to ‘go where the money is’, according to its chief customer and commercial officer.
Speaking on the sidelines of Aviation Show MEASA in Dubai last week, flyadeal’s Sudeep Ghai partly attributed the low cost carrier’s early success to the difficulties faced by the Saudi Arabian economy.
“We are focusing on our bread and butter, and we are finding that we had deeper traction in Saudi Arabia than we expected,” he said.
The Saudi Arabian domestic flight market offers ‘deep opportunities’ and flyadeal will continue to ‘go where the money is’, according to its chief customer and commercial officer.
Speaking on the sidelines of Aviation Show MEASA in Dubai last week, flyadeal’s Sudeep Ghai partly attributed the low cost carrier’s early success to the difficulties faced by the Saudi Arabian economy.
“We are focusing on our bread and butter, and we are finding that we had deeper traction in Saudi Arabia than we expected,” he said.
Oil claws back some losses after 6-pct plunge, but outlook still weak | Reuters
Oil claws back some losses after 6-pct plunge, but outlook still weak | Reuters:
Oil bounced by more than 1 percent on Wednesday to claw back some of the previous day’s 6-percent plunge, lifted by a report of an unexpected decline in U.S. commercial crude inventories and record Indian crude imports.
But investors remained on edge, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk.
International Brent crude oil futures LCOc1 were at $63.39 per barrel at 0747 GMT, up $86 per barrel, or 1.4 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1, were up 90 cents, or 1.7 percent, at $54.33 a barrel.
Oil bounced by more than 1 percent on Wednesday to claw back some of the previous day’s 6-percent plunge, lifted by a report of an unexpected decline in U.S. commercial crude inventories and record Indian crude imports.
But investors remained on edge, with the International Energy Agency (IEA) warning of unprecedented uncertainty in oil markets due to a difficult economic environment and political risk.
International Brent crude oil futures LCOc1 were at $63.39 per barrel at 0747 GMT, up $86 per barrel, or 1.4 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures CLc1, were up 90 cents, or 1.7 percent, at $54.33 a barrel.
MIDEAST STOCKS-Saudi hurt by petrochemicals, most of Gulf moves little | Reuters
MIDEAST STOCKS-Saudi hurt by petrochemicals, most of Gulf moves little | Reuters:
Saudi Arabia’s stock market edged down in early trade on Wednesday, pressured by petrochemical shares, while most major Gulf markets were little changed.
The Saudi index was down 0.3 percent after an hour with heavyweight Saudi Basic Industries dropping 1.4 percent and Saudi Kayan Petrochemical losing 2.7 percent.
Saudi Industrial Export dived 9.9 percent; it has been plunging for the past six days, after a speculative bubble in the stock pushed it up over 200 percent since early October.
Saudi Arabia’s stock market edged down in early trade on Wednesday, pressured by petrochemical shares, while most major Gulf markets were little changed.
The Saudi index was down 0.3 percent after an hour with heavyweight Saudi Basic Industries dropping 1.4 percent and Saudi Kayan Petrochemical losing 2.7 percent.
Saudi Industrial Export dived 9.9 percent; it has been plunging for the past six days, after a speculative bubble in the stock pushed it up over 200 percent since early October.