Abu Dhabi Plans Welfare System Linked to Jobs: National - Bloomberg:
Abu Dhabi, the wealthiest of the United Arab Emirates, plans to offer its unemployed citizens a welfare program linked to job opportunities, the National newspaper reported.
Jobless citizens, who can receive monthly unemployment payments starting at 6,000 dirhams ($1,634), will have to accept one of three job offers arranged by the state or risk losing the government’s financial support, the newspaper reported. It cited Mugheer Al Khaili, the chairman of Abu Dhabi’s new Department of Community Development.
The newspaper originally reported that Abu Dhabi was going to cut benefits, but later replaced the article with an updated version.
Tuesday, 11 December 2018
#Dubai Stocks Nearing Valuation Low of Early 2016 Oil-Price Slump - Bloomberg
Dubai Stocks Nearing Valuation Low of Early 2016 Oil-Price Slump - Bloomberg:
The valuation for Dubai’s main stock index, the world’s worst performer in 2018, is about to sink beneath a level last seen when oil prices collapsed three years ago.
The average estimated price to earnings in the next 12 months for members of the main index has fallen nearly 20 percent this year and is set to sag below a multiple of 7. That figure was last breached in January 2016, when Brent crude traded at less than $30 a barrel, dragging the Dubai market valuation to the lowest in four years at that time. Real estate stocks have pressured the gauge the most this year.
The negative sentiment has spread throughout the market. Among the 37 members of the DFM General Index, only six are set to finish 2018 with a higher stock price. That’s the fewest gainers for a full year since 2011.
The valuation for Dubai’s main stock index, the world’s worst performer in 2018, is about to sink beneath a level last seen when oil prices collapsed three years ago.
The average estimated price to earnings in the next 12 months for members of the main index has fallen nearly 20 percent this year and is set to sag below a multiple of 7. That figure was last breached in January 2016, when Brent crude traded at less than $30 a barrel, dragging the Dubai market valuation to the lowest in four years at that time. Real estate stocks have pressured the gauge the most this year.
The negative sentiment has spread throughout the market. Among the 37 members of the DFM General Index, only six are set to finish 2018 with a higher stock price. That’s the fewest gainers for a full year since 2011.
Russia to Curb Oil Output in Baby Steps as Saudis Cut Faster - Bloomberg
Russia to Curb Oil Output in Baby Steps as Saudis Cut Faster - Bloomberg:
Russia played a big part in making possible a new OPEC+ deal to curb production, but initially it’s letting Saudi Arabia shoulder the bulk of actual cuts.
OPEC’s largest ally aims to reduce its January production by at least 50,000 to 60,000 barrels a day compared with October levels, Russian Energy Minister Alexander Novak said Tuesday. That’s about 11,000 barrels a day below November output, Bloomberg calculations based on government data show.
Russia played a big part in making possible a new OPEC+ deal to curb production, but initially it’s letting Saudi Arabia shoulder the bulk of actual cuts.
OPEC’s largest ally aims to reduce its January production by at least 50,000 to 60,000 barrels a day compared with October levels, Russian Energy Minister Alexander Novak said Tuesday. That’s about 11,000 barrels a day below November output, Bloomberg calculations based on government data show.
Saudi banks close to deal with authorities on Islamic tax: sources | Reuters
Saudi banks close to deal with authorities on Islamic tax: sources | Reuters:
Saudi Arabian banks are expected to reach a deal with Islamic tax authorities before the end of the year to resolve a dispute over increased liabilities, banking sources say.
Banks have been at loggerheads with the authorities since at least the start of the year over additional payments of zakat - the name of the tax - for years going back as far as 2002.
Banks have been contesting the extra payments, but a compromise is close, said the sources, with one adding that the tax will be calculated at 10 percent of each bank’s profit.
Saudi Arabian banks are expected to reach a deal with Islamic tax authorities before the end of the year to resolve a dispute over increased liabilities, banking sources say.
Banks have been at loggerheads with the authorities since at least the start of the year over additional payments of zakat - the name of the tax - for years going back as far as 2002.
Banks have been contesting the extra payments, but a compromise is close, said the sources, with one adding that the tax will be calculated at 10 percent of each bank’s profit.
UPDATE 1-Goldilocks Investment buys 29.5 pct stake in Dubai-listed Takaful Emarat | Reuters
UPDATE 1-Goldilocks Investment buys 29.5 pct stake in Dubai-listed Takaful Emarat | Reuters:
Goldilocks Investment Co, an indirect subsidiary of Abu Dhabi Financial Group (ADFG), has acquired a 29.5 percent stake in Dubai-listed Takaful Emarat Insurance, it said on Tuesday.
It is the third in a series of recent acquisitions by Goldilocks which said on Sunday it had increased its ownership in Dubai-listed Islamic Arab Insurance Company, known as Salama, to 14.1 percent.
On Monday it said it had acquired an 18.3 percent stake in Dubai-based shipping firm Gulf Navigation Holding.
Goldilocks Investment Co, an indirect subsidiary of Abu Dhabi Financial Group (ADFG), has acquired a 29.5 percent stake in Dubai-listed Takaful Emarat Insurance, it said on Tuesday.
It is the third in a series of recent acquisitions by Goldilocks which said on Sunday it had increased its ownership in Dubai-listed Islamic Arab Insurance Company, known as Salama, to 14.1 percent.
On Monday it said it had acquired an 18.3 percent stake in Dubai-based shipping firm Gulf Navigation Holding.
UPDATE 1- #UAE's yuan clearing centre clears $6.5 billion in transactions | Reuters
UPDATE 1-UAE's yuan clearing centre clears $6.5 billion in transactions | Reuters:
The renminbi clearing centre in the United Arab Emirates handled 44.57 billion yuan ($6.5 billion) in transactions between January and November, the UAE central bank said on Tuesday.
“This represents a good achievement after only 17 months of operation of the centre,” the central bank said. “However, it is still low compared to the aspirations of the two countries in this area.”
As both a major energy exporter and a hub for international trade, the UAE is an important part China’s “Belt and Road” initiative to invest in infrastructure linking Beijing by sea and land to markets in Asia and Europe.
The renminbi clearing centre in the United Arab Emirates handled 44.57 billion yuan ($6.5 billion) in transactions between January and November, the UAE central bank said on Tuesday.
“This represents a good achievement after only 17 months of operation of the centre,” the central bank said. “However, it is still low compared to the aspirations of the two countries in this area.”
As both a major energy exporter and a hub for international trade, the UAE is an important part China’s “Belt and Road” initiative to invest in infrastructure linking Beijing by sea and land to markets in Asia and Europe.
Doha Bank to cut construction exposure, keep UAE branches: CEO | Reuters
Doha Bank to cut construction exposure, keep UAE branches: CEO | Reuters:
Doha Bank will cut its exposure to construction companies to 10 percent from 17 percent of lending in the next three years, its CEO said on Tuesday, part of efforts to adjust to a building industry downturn following a slump in oil prices.
CEO Raghavan Seetharaman also said the bank, Qatar’s fifth largest by assets, would maintain its presence in the United Arab Emirates despite a protracted regional rift.
The UAE, Saudi Arabia, Bahrain and Egypt began a boycott of Qatar in June 2017, accusing the country of supporting militants, which Qatar has denied.
Doha Bank will cut its exposure to construction companies to 10 percent from 17 percent of lending in the next three years, its CEO said on Tuesday, part of efforts to adjust to a building industry downturn following a slump in oil prices.
CEO Raghavan Seetharaman also said the bank, Qatar’s fifth largest by assets, would maintain its presence in the United Arab Emirates despite a protracted regional rift.
The UAE, Saudi Arabia, Bahrain and Egypt began a boycott of Qatar in June 2017, accusing the country of supporting militants, which Qatar has denied.
U.S. expected to end 2018 as world's top oil producer: EIA | Reuters
U.S. expected to end 2018 as world's top oil producer: EIA | Reuters:
U.S. crude oil output growth was expected to slow slightly for this year compared with previous forecasts, the Energy Information Administration said on Tuesday, but at a record 10.88 million barrels per day, the nation will end 2018 as the world’s top producer.
Output this year was forecast to rise 1.53 million bpd to 10.88 million bpd, down from the EIA’s previous estimate of an increase of 1.55 million bpd. The current all-time U.S. annual output peak was in 1970 at 9.6 million bpd, according to federal energy data.
For 2019, U.S. crude oil production was expected to average 12.06 million bpd, the EIA said, up 1.18 million bpd from the prior year which is a small upward revision from the previous forecast of a 1.16-million bpd rise.
U.S. crude oil output growth was expected to slow slightly for this year compared with previous forecasts, the Energy Information Administration said on Tuesday, but at a record 10.88 million barrels per day, the nation will end 2018 as the world’s top producer.
Output this year was forecast to rise 1.53 million bpd to 10.88 million bpd, down from the EIA’s previous estimate of an increase of 1.55 million bpd. The current all-time U.S. annual output peak was in 1970 at 9.6 million bpd, according to federal energy data.
For 2019, U.S. crude oil production was expected to average 12.06 million bpd, the EIA said, up 1.18 million bpd from the prior year which is a small upward revision from the previous forecast of a 1.16-million bpd rise.
MIDEAST STOCKS-Banks propel Egypt gain, #Dubai recoups some losses | Reuters
MIDEAST STOCKS-Banks propel Egypt gain, Dubai recoups some losses | Reuters:
Egypt’s blue-chip index continued to gain on Tuesday after enjoying its biggest one-day gain in two years in the last session, while Dubai recovered partially from five-year lows, lifted by gains in real estate shares.
The Egyptian index rose 1.5 percent with gainers outnumbering losers by one to five as bank stocks rose.
Egypt’s annual urban consumer price inflation dipped to 15.7 percent in November from 17.7 percent in October, the official statistics agency CAPMAS said on Monday, exceeding analysts’ expectations.
Egypt’s blue-chip index continued to gain on Tuesday after enjoying its biggest one-day gain in two years in the last session, while Dubai recovered partially from five-year lows, lifted by gains in real estate shares.
The Egyptian index rose 1.5 percent with gainers outnumbering losers by one to five as bank stocks rose.
Egypt’s annual urban consumer price inflation dipped to 15.7 percent in November from 17.7 percent in October, the official statistics agency CAPMAS said on Monday, exceeding analysts’ expectations.
Mecca Developer's Stock Set for Worst Year in Decade in Slowdown - Bloomberg
Mecca Developer's Stock Set for Worst Year in Decade in Slowdown - Bloomberg:
The biggest listed property developer in the holiest city for the Islamic world is failing to lure investors amid a slowdown in the real estate market.
Mecca-based Jabal Omar Development Co.’s stock has lost about 40 percent this year, as investors balk at the high level of indebtedness in the industry and concern about the outlook. The company is also closed to foreign investment and, unlike some others, won’t benefit from inclusion in emerging-markets indexes next year.
Apartment rental prices in Mecca have dropped 5.1 percent and sales are 9.9 percent lower in the first half of the year compared with a year earlier, according to a report from real estate consultancy Jones Lang LaSalle Inc. Jabal Omar’s holdings include hotels, which have also been under pressure, though the sector could fare better in the second half during the peak season of hajj, the consultants said.
The biggest listed property developer in the holiest city for the Islamic world is failing to lure investors amid a slowdown in the real estate market.
Mecca-based Jabal Omar Development Co.’s stock has lost about 40 percent this year, as investors balk at the high level of indebtedness in the industry and concern about the outlook. The company is also closed to foreign investment and, unlike some others, won’t benefit from inclusion in emerging-markets indexes next year.
Apartment rental prices in Mecca have dropped 5.1 percent and sales are 9.9 percent lower in the first half of the year compared with a year earlier, according to a report from real estate consultancy Jones Lang LaSalle Inc. Jabal Omar’s holdings include hotels, which have also been under pressure, though the sector could fare better in the second half during the peak season of hajj, the consultants said.
#UAE’s Emirates Steel refinances $650 million of debt with new loan, sukuk – sources | Reuters
UAE’s Emirates Steel refinances $650 million of debt with new loan, sukuk – sources | Reuters:
Emirates Steel, the largest steel producer in the United Arab Emirates, has refinanced $650 million of debt with a new loan and sukuk or Islamic bond, sources close to the transaction told Reuters.
The company owned by Abu Dhabi’s Senaat, a state-owned investor in the emirate’s industrial sector, raised $1.3 billion in credit facilities in 2014, due in 2022.
It hired BNP Paribas to coordinate a $400 million sharia-compliant loan financing, Reuters reported in September
Emirates Steel, the largest steel producer in the United Arab Emirates, has refinanced $650 million of debt with a new loan and sukuk or Islamic bond, sources close to the transaction told Reuters.
The company owned by Abu Dhabi’s Senaat, a state-owned investor in the emirate’s industrial sector, raised $1.3 billion in credit facilities in 2014, due in 2022.
It hired BNP Paribas to coordinate a $400 million sharia-compliant loan financing, Reuters reported in September
UPDATE 1-UAE's Al Zorah project downsized in face of real estate slowdown | Reuters
UPDATE 1-UAE's Al Zorah project downsized in face of real estate slowdown | Reuters:
Ambitions for the $60 billion Al Zorah real estate project have been scaled down as the United Arab Emirates experiences a widespread real estate slump, two executives involved in the project said on Tuesday.
Al Zorah, located along the coastline of the UAE emirate of Ajman, will aim to accommodate some 50,000 people, down from an original goal of 200,000, Oussama Kabbani, the chief operating officer of Lebanese developer Solidere International Ltd, said.
Solidere is building Al Zorah jointly with the government of Ajman, one of the smallest emirates of the seven-member UAE federation, which has been trying to catch up with more developed neighbours in Dubai and Abu Dhabi.
Ambitions for the $60 billion Al Zorah real estate project have been scaled down as the United Arab Emirates experiences a widespread real estate slump, two executives involved in the project said on Tuesday.
Al Zorah, located along the coastline of the UAE emirate of Ajman, will aim to accommodate some 50,000 people, down from an original goal of 200,000, Oussama Kabbani, the chief operating officer of Lebanese developer Solidere International Ltd, said.
Solidere is building Al Zorah jointly with the government of Ajman, one of the smallest emirates of the seven-member UAE federation, which has been trying to catch up with more developed neighbours in Dubai and Abu Dhabi.
RPT-COLUMN-Oil traders focus on deteriorating economic outlook rather than OPEC: Kemp | Reuters
RPT-COLUMN-Oil traders focus on deteriorating economic outlook rather than OPEC: Kemp | Reuters:
The weakening outlook for oil consumption coupled with rising output from U.S. shale and softer than expected U.S. sanctions on Iran have convinced most traders the market is moving into a period of oversupply.
In the run up to last week’s OPEC meeting in Vienna, hedge fund managers had little confidence in the organisation’s ability to cut production by enough to avoid an oversupplied market next year.
Fund managers sold another 32 million barrels of Brent futures and options in the week to Dec. 4, bringing total sales over the last 10 weeks to a record 360 million barrels.
The weakening outlook for oil consumption coupled with rising output from U.S. shale and softer than expected U.S. sanctions on Iran have convinced most traders the market is moving into a period of oversupply.
In the run up to last week’s OPEC meeting in Vienna, hedge fund managers had little confidence in the organisation’s ability to cut production by enough to avoid an oversupplied market next year.
Fund managers sold another 32 million barrels of Brent futures and options in the week to Dec. 4, bringing total sales over the last 10 weeks to a record 360 million barrels.
Mideast Stocks: #Dubai edges up but tepid global sentiment weighs on Gulf | ZAWYA MENA Edition
Mideast Stocks: Dubai edges up but tepid global sentiment weighs on Gulf | ZAWYA MENA Edition:
Dubai's stock market rose on Tuesday after falling to five-year lows in the last few sessions, lifted by gains in some real estate shares, while weak global sentiment continued to weigh on other Gulf bourses.
Oil prices edged up, but overall sentiment towards crude prices remained weak on worries over global stock markets and doubts that supply cuts led by OPEC would be enough to rein in oversupply.
In Dubai, the index added 0.8 percent after hovering around five-year lows in the last four sessions. Emaar Properties gained 2.3 percent after saying it had started business development operations in China, while its unit Emaar Development increased 0.5 percent.
Dubai's stock market rose on Tuesday after falling to five-year lows in the last few sessions, lifted by gains in some real estate shares, while weak global sentiment continued to weigh on other Gulf bourses.
Oil prices edged up, but overall sentiment towards crude prices remained weak on worries over global stock markets and doubts that supply cuts led by OPEC would be enough to rein in oversupply.
In Dubai, the index added 0.8 percent after hovering around five-year lows in the last four sessions. Emaar Properties gained 2.3 percent after saying it had started business development operations in China, while its unit Emaar Development increased 0.5 percent.
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