UAE's aluminium industry accounts for 1.4% of country's economy - The National:
Emirates Global Aluminium, the largest industrial company in the UAE outside oil and gas, and the country's aluminium sector, account for 1.4 per cent of the UAE economic output.
The company and industry have employed 60,950 people in 2017 with one in every 100 people working in the UAE being employed in the aluminium sector, according to a new study by Oxford Economics and EGA. No comparative figures or projections were provided.
"Over the past four decades, EGA has taken the UAE from no aluminium production to the fifth-largest aluminium producing nation in the world," said Abdulla Kalban, managing director and chief executive of EGA, to The National, adding that its UAE customers buy 10 per cent of production, its largest single market, and supplies the metal to more than 60 countries worldwide that make products using its metal, from car parts to window frames.
Wednesday, 19 December 2018
#Ajman offers highest gross rental yield in #UAE
Ajman offers highest gross rental yield in UAE:
Ajman’s real estate market has long been interlinked to Dubai’s performance, with rental and sales prices often seen swinging in tune with the latter. But the UAE’s smallest emirate is gradually coming into its own as a rising population and economic activities continue to attract buyers and tenants looking for quality residences at affordable prices.
Ajman was one of the first few emirates in the UAE to offer 100 per cent freehold to foreign investors. In fact, it was the second emirate after Dubai to introduce the freehold property law back in 2004. This has played a huge role in propelling the growth of the property market.
Ajman’s real estate market has long been interlinked to Dubai’s performance, with rental and sales prices often seen swinging in tune with the latter. But the UAE’s smallest emirate is gradually coming into its own as a rising population and economic activities continue to attract buyers and tenants looking for quality residences at affordable prices.
Ajman was one of the first few emirates in the UAE to offer 100 per cent freehold to foreign investors. In fact, it was the second emirate after Dubai to introduce the freehold property law back in 2004. This has played a huge role in propelling the growth of the property market.
The $259bn question: Saudi Arabia's 2019 budget under the microscope
The $259bn question: Saudi Arabia's 2019 budget under the microscope:
Saudi Arabia’s 2019 budget is undoubtedly ambitious — but is it realistic? That was a key question being asked on the sidelines of a forum held on Wednesday in Riyadh, where government ministers discussed how next year’s spending plan would play out.
According to the budget, Saudi Arabia will boost spending by about 7 percent to $295 billion in 2019, yet also reduce the deficit by 4.2 percent. Oil revenues are expected to reach $176.5 billion, compared with $162 billion this year.
That means oil is forecast to account for 68 percent of total state revenues next year. But as the Finance Ministry has not disclosed the average oil price on which its forecasts are based, it raises the question: Is the revenue forecast attainable, given the recent crash in energy prices?
Saudi Arabia’s 2019 budget is undoubtedly ambitious — but is it realistic? That was a key question being asked on the sidelines of a forum held on Wednesday in Riyadh, where government ministers discussed how next year’s spending plan would play out.
According to the budget, Saudi Arabia will boost spending by about 7 percent to $295 billion in 2019, yet also reduce the deficit by 4.2 percent. Oil revenues are expected to reach $176.5 billion, compared with $162 billion this year.
That means oil is forecast to account for 68 percent of total state revenues next year. But as the Finance Ministry has not disclosed the average oil price on which its forecasts are based, it raises the question: Is the revenue forecast attainable, given the recent crash in energy prices?
Saudi government to pay private sector dues 'within months'
Saudi government to pay private sector dues 'within months':
Outstanding payments owed by the Saudi government to private-sector firms will be made “within months,” the Kingdom’s economy minister has said.
The crash in oil prices from mid-2014 forced the government to slash projects and delay payments to some contractors and suppliers, while disputes have held up some other settlements.
The vast majority of claims have now been addressed, and the Kingdom is committed to settling all outstanding cases, said Mohammed Al-Tuwaijri, Saudi minister of economy and planning.
Outstanding payments owed by the Saudi government to private-sector firms will be made “within months,” the Kingdom’s economy minister has said.
The crash in oil prices from mid-2014 forced the government to slash projects and delay payments to some contractors and suppliers, while disputes have held up some other settlements.
The vast majority of claims have now been addressed, and the Kingdom is committed to settling all outstanding cases, said Mohammed Al-Tuwaijri, Saudi minister of economy and planning.
Oil Gains as Saudis Pledge to Extend Cuts, U.S. Supply Draw Seen - Bloomberg
Oil Gains as Saudis Pledge to Extend Cuts, U.S. Supply Draw Seen - Bloomberg:
Oil prices climbed as Saudi Arabia predicted that OPEC will extend supply cuts next year and optimistic economic growth prospects boosted U.S. equities.
Futures rose as much as 2.5 percent in New York on Wednesday, halting the deepest three-day slump since 2016. Saudi Energy Minister Khalid Al-Falih said he’s sure a production accord signed earlier this month will be extended in April. Analysts in a Bloomberg survey, meanwhile, predicted a third straight decrease for American crude stockpiles ahead of a government report Wednesday.
Al-Falih is doing all he can “to inject some bullish impact into oil prices,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
Oil prices climbed as Saudi Arabia predicted that OPEC will extend supply cuts next year and optimistic economic growth prospects boosted U.S. equities.
Futures rose as much as 2.5 percent in New York on Wednesday, halting the deepest three-day slump since 2016. Saudi Energy Minister Khalid Al-Falih said he’s sure a production accord signed earlier this month will be extended in April. Analysts in a Bloomberg survey, meanwhile, predicted a third straight decrease for American crude stockpiles ahead of a government report Wednesday.
Al-Falih is doing all he can “to inject some bullish impact into oil prices,” said Stephen Brennock, an analyst at PVM Oil Associates Ltd. in London.
Saudi Arabia insists it remains ‘attractive for investment’ | Financial Times
Saudi Arabia insists it remains ‘attractive for investment’ | Financial Times:
Saudi officials took to the stage on Wednesday to elaborate on next year’s state budget that will boost spending despite the kingdom’s stated aim of reducing its yawning fiscal deficit in the near future.
Speaking in the ornate ballrooms of the Ritz-Carlton hotel, ministers touted the economic reform programme launched by Crown Prince Mohammed bin Salman in 2016, which they said had moved from the planning stage to implementation.
The budget announcement came as Saudi Arabia continues to grapple with the aftermath of the killing of journalist Jamal Khashoggi in October, which sparked international condemnation.
Saudi officials took to the stage on Wednesday to elaborate on next year’s state budget that will boost spending despite the kingdom’s stated aim of reducing its yawning fiscal deficit in the near future.
Speaking in the ornate ballrooms of the Ritz-Carlton hotel, ministers touted the economic reform programme launched by Crown Prince Mohammed bin Salman in 2016, which they said had moved from the planning stage to implementation.
The budget announcement came as Saudi Arabia continues to grapple with the aftermath of the killing of journalist Jamal Khashoggi in October, which sparked international condemnation.
Mideast Stocks: Oil prices, budget weigh on Saudi while banks bolster #Dubai | ZAWYA MENA Edition
Mideast Stocks: Oil prices, budget weigh on Saudi while banks bolster Dubai | ZAWYA MENA Edition:
Saudi Arabia's stock market fell sharply on Wednesday after oil prices sank and the government released its 2019 budget, while Dubai rebounded on the back of a rise in bank shares.
Brent oil fell below $56 a barrel to its lowest level in more than a year, pushing the Saudi stock index down 1.1 percent in its biggest one-day drop since late November.
Petrochemical shares fell, with Saudi Basic Industries dropping 2.4 percent, and Al Rajhi Bank shedding 1.4 percent.
Saudi Arabia's stock market fell sharply on Wednesday after oil prices sank and the government released its 2019 budget, while Dubai rebounded on the back of a rise in bank shares.
Brent oil fell below $56 a barrel to its lowest level in more than a year, pushing the Saudi stock index down 1.1 percent in its biggest one-day drop since late November.
Petrochemical shares fell, with Saudi Basic Industries dropping 2.4 percent, and Al Rajhi Bank shedding 1.4 percent.
#Kuwait central bank decides to keep discount rate unchanged | Reuters
Kuwait central bank decides to keep discount rate unchanged | Reuters:
Kuwait’s central bank said on Wednesday that it had decided to maintain its discount rate unchanged at its current level of 3.0 percent.
Earlier, the U.S. Federal Reserve raised rates by 25 bps.
Kuwait’s central bank said on Wednesday that it had decided to maintain its discount rate unchanged at its current level of 3.0 percent.
Earlier, the U.S. Federal Reserve raised rates by 25 bps.
Little room to manoeuvre as Saudi slows drive to cut deficit | Reuters
Little room to manoeuvre as Saudi slows drive to cut deficit | Reuters:
Saudi Arabia is slowing a drive to cut its huge fiscal deficit in order to revive the economy, but the state budget plan for 2019 suggests it may not have room to boost growth by much.
With unemployment among Saudis at a record 12.9 percent, creating jobs is becoming increasingly important to justify reforms launched over two years ago by Crown Prince Mohammed bin Salman, who aims to diversify the economy beyond oil exports.
The 2019 budget, released on Tuesday, reflected that. It promised a 7 percent increase in spending, which officials said would lift growth in the non-oil part of the economy and start bringing down unemployment from next year.
Saudi Arabia is slowing a drive to cut its huge fiscal deficit in order to revive the economy, but the state budget plan for 2019 suggests it may not have room to boost growth by much.
With unemployment among Saudis at a record 12.9 percent, creating jobs is becoming increasingly important to justify reforms launched over two years ago by Crown Prince Mohammed bin Salman, who aims to diversify the economy beyond oil exports.
The 2019 budget, released on Tuesday, reflected that. It promised a 7 percent increase in spending, which officials said would lift growth in the non-oil part of the economy and start bringing down unemployment from next year.
Saudi Budget Estimate for Oil Is Seen as `Wishful Thinking' - Bloomberg
Saudi Budget Estimate for Oil Is Seen as `Wishful Thinking' - Bloomberg:
Some analysts say Saudi Arabia’s 2019 revenue forecast is surprising because they estimate it to be based on a relatively high price of oil.
The plan defies “the laws of arithmetic,” said Ziad Daoud, the Dubai-based chief Middle East economist at Bloomberg Economics. The government’s projections may be based on a crude price as high as $80 a barrel in 2019, and it would have to climb to $95 a barrel to balance the budget, he said. Brent crude traded near $56 a barrel on Wednesday.
The immediate reaction from stock investors is lackluster, with the main Saudi gauge falling 1.1 percent on Wednesday. Yields on Saudi Arabia’s $5 billion of bonds due 2028 climbed five basis points to 4.31 percent.
Some analysts say Saudi Arabia’s 2019 revenue forecast is surprising because they estimate it to be based on a relatively high price of oil.
The plan defies “the laws of arithmetic,” said Ziad Daoud, the Dubai-based chief Middle East economist at Bloomberg Economics. The government’s projections may be based on a crude price as high as $80 a barrel in 2019, and it would have to climb to $95 a barrel to balance the budget, he said. Brent crude traded near $56 a barrel on Wednesday.
The immediate reaction from stock investors is lackluster, with the main Saudi gauge falling 1.1 percent on Wednesday. Yields on Saudi Arabia’s $5 billion of bonds due 2028 climbed five basis points to 4.31 percent.
Party Time in Saudi Arabia Ends a Year of Fear - Bloomberg
Party Time in Saudi Arabia Ends a Year of Fear - Bloomberg:
It was time to showcase the new Saudi Arabia. Under pulsing lights, men and women danced to the bass line of house music superstar David Guetta after electric racing cars whizzed around a track.
Crown Prince Mohammed bin Salman, the 33-year-old de facto leader, toured the government-sponsored event over the weekend taking pictures with loyal followers. Then, on Tuesday, came the announcement of another year of handouts worth billions of dollars to citizens in the budget.
Yet the smiles and largess mask a darker side to the kingdom that’s emerged over the past year, one that was thrust into the spotlight with the gruesome murder of Washington Post columnist Jamal Khashoggi. And some Saudis quietly question whether the fun is just a distraction to change international opinion.
It was time to showcase the new Saudi Arabia. Under pulsing lights, men and women danced to the bass line of house music superstar David Guetta after electric racing cars whizzed around a track.
Crown Prince Mohammed bin Salman, the 33-year-old de facto leader, toured the government-sponsored event over the weekend taking pictures with loyal followers. Then, on Tuesday, came the announcement of another year of handouts worth billions of dollars to citizens in the budget.
Yet the smiles and largess mask a darker side to the kingdom that’s emerged over the past year, one that was thrust into the spotlight with the gruesome murder of Washington Post columnist Jamal Khashoggi. And some Saudis quietly question whether the fun is just a distraction to change international opinion.
Foreign investment in Saudi Arabia more than doubled in 2018: minister | Reuters
Foreign investment in Saudi Arabia more than doubled in 2018: minister | Reuters:
Foreign investment in Saudi Arabia more than doubled in 2018 to 13 billion riyals ($3.5 billion), its economy and planning minister said on Wednesday, despite a global furor following the murder of journalist Jamal Khashoggi in October.
Foreign investors have been rattled in recent weeks by the kingdom’s deteriorating relations with Western governments after the killing in the Saudi consulate in Istanbul of Khashoggi, a Washington Post columnist and critic of Crown Prince Mohammed bin Salman.
Economy and planning minister Mohammed al-Tuwaijri made no mention of the Khashoggi murder.
Foreign investment in Saudi Arabia more than doubled in 2018 to 13 billion riyals ($3.5 billion), its economy and planning minister said on Wednesday, despite a global furor following the murder of journalist Jamal Khashoggi in October.
Foreign investors have been rattled in recent weeks by the kingdom’s deteriorating relations with Western governments after the killing in the Saudi consulate in Istanbul of Khashoggi, a Washington Post columnist and critic of Crown Prince Mohammed bin Salman.
Economy and planning minister Mohammed al-Tuwaijri made no mention of the Khashoggi murder.
Franklin Templeton grabs more Gulf corporate debt after downturn | Reuters
Franklin Templeton grabs more Gulf corporate debt after downturn | Reuters:
Franklin Templeton Investments has raised its Gulf corporate debt exposure as a downturn in some sectors, largely real estate, has hit company valuations, Dino Kronfol, its chief investment officer of global sukuk and MENA fixed income, said.
“Some independent corporates really sold off over the past few months, that’s why we say there’s more value in the weaker, higher-yielding names,” Kronfol told Reuters.
Franklin Templeton, which had $683 billion in assets under management as of the end of November, has increased the exposure of its $350 million Gulf Cooperation Council (GCC) bond strategy to regional corporates by roughly 20 percent this year to 72 percent, of which 10 percent was in the last quarter.
Franklin Templeton Investments has raised its Gulf corporate debt exposure as a downturn in some sectors, largely real estate, has hit company valuations, Dino Kronfol, its chief investment officer of global sukuk and MENA fixed income, said.
“Some independent corporates really sold off over the past few months, that’s why we say there’s more value in the weaker, higher-yielding names,” Kronfol told Reuters.
Franklin Templeton, which had $683 billion in assets under management as of the end of November, has increased the exposure of its $350 million Gulf Cooperation Council (GCC) bond strategy to regional corporates by roughly 20 percent this year to 72 percent, of which 10 percent was in the last quarter.
Builders bruised by #Dubai's real estate market woes | Reuters
Builders bruised by Dubai's real estate market woes | Reuters:
Dubai’s real estate downturn is forcing construction and engineering firms to cut jobs and halt expansion plans, in turn raising fresh risks for the wider economy.
Known for its glittering skyscrapers and luxury villas, the Dubai property market is oversupplied, especially in the residential sector where prices have fallen steadily from a peak in mid-2014.
Many towers stand half-empty, and some construction sites have been left dormant.
Dubai’s real estate downturn is forcing construction and engineering firms to cut jobs and halt expansion plans, in turn raising fresh risks for the wider economy.
Known for its glittering skyscrapers and luxury villas, the Dubai property market is oversupplied, especially in the residential sector where prices have fallen steadily from a peak in mid-2014.
Many towers stand half-empty, and some construction sites have been left dormant.
Nasdaq Dubai to launch futures trading from mid-January | Reuters
Nasdaq Dubai to launch futures trading from mid-January | Reuters:
Nasdaq Dubai will launch futures trading on the MSCI United Arab Emirates equity index from mid-January, providing investors a new avenue to gain exposure to companies in the United Arab Emirates (UAE).
The benchmark index currently comprises 11 UAE companies including some of the largest ones. It will encourage further participation from investors including regional and international funds seeking to increase their exposure to the UAE’s investment landscape, Hamed Ali, chief executive of Nasdaq Dubai said in a statement.
Nasdaq Dubai’s derivatives market opened in 2016 and currently comprises stock futures on 17 top UAE listed companies as well as futures on Dubai Financial Market’s DFMGI share index and the ADI index of Abu Dhabi Securities Exchange.
Nasdaq Dubai will launch futures trading on the MSCI United Arab Emirates equity index from mid-January, providing investors a new avenue to gain exposure to companies in the United Arab Emirates (UAE).
The benchmark index currently comprises 11 UAE companies including some of the largest ones. It will encourage further participation from investors including regional and international funds seeking to increase their exposure to the UAE’s investment landscape, Hamed Ali, chief executive of Nasdaq Dubai said in a statement.
Nasdaq Dubai’s derivatives market opened in 2016 and currently comprises stock futures on 17 top UAE listed companies as well as futures on Dubai Financial Market’s DFMGI share index and the ADI index of Abu Dhabi Securities Exchange.
Oil steadies after sell-off but oversupply still drags | Reuters
Oil steadies after sell-off but oversupply still drags | Reuters:
Oil stabilized on Wednesday after one of its biggest falls in years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand.
Benchmark Brent crude oil was up 45 cents at $56.71 a barrel by 1215 GMT, after dropping 5.6 percent on Tuesday and at one point hitting a 14-month low.
U.S. light crude was 35 cents higher at $46.59, after plunging 7.3 percent in the previous session when it touched its lowest since August 2017.
Oil stabilized on Wednesday after one of its biggest falls in years, but remained under pressure from oversupply and concern that a slowing global economy would depress demand.
Benchmark Brent crude oil was up 45 cents at $56.71 a barrel by 1215 GMT, after dropping 5.6 percent on Tuesday and at one point hitting a 14-month low.
U.S. light crude was 35 cents higher at $46.59, after plunging 7.3 percent in the previous session when it touched its lowest since August 2017.
Aramco will double gas production and availability over ten years: energy minister
Aramco will double gas production and availability over ten years: energy minister:
Saudi Arabia’s oil giant Aramco will double its production and availability of gas over the next 10 years, energy minister Khalid al-Falih said at a post-budget event.
Saudi Arabia’s oil giant Aramco will double its production and availability of gas over the next 10 years, energy minister Khalid al-Falih said at a post-budget event.
#Switzerland prepares to launch #Iran payments channel | Financial Times
Switzerland prepares to launch Iran payments channel | Financial Times:
Switzerland is close to launching an initiative to let companies sell food, medicine and medical devices to Iran using a payments channel that would be the first such mechanism to win Washington’s approval since it reimposed sanctions against Tehran.
Bern’s humanitarian supplies plan — which is the subject of delicate ongoing talks with the US and Iran — comes as leading EU powers hope within weeks to set up a much-touted mechanism to finance broader trade with Tehran.
The simultaneous efforts highlight the transatlantic schism since President Donald Trump pulled out of a landmark international nuclear deal with Iran in May.
Switzerland is close to launching an initiative to let companies sell food, medicine and medical devices to Iran using a payments channel that would be the first such mechanism to win Washington’s approval since it reimposed sanctions against Tehran.
Bern’s humanitarian supplies plan — which is the subject of delicate ongoing talks with the US and Iran — comes as leading EU powers hope within weeks to set up a much-touted mechanism to finance broader trade with Tehran.
The simultaneous efforts highlight the transatlantic schism since President Donald Trump pulled out of a landmark international nuclear deal with Iran in May.
US shale juggernaut will stomp on Opec’s oil plans | Financial Times
US shale juggernaut will stomp on Opec’s oil plans | Financial Times:
Opec and Russia started the year cutting oil production, spent the middle of the year raising production and have ended the year by agreeing to cut it again.
That, in a nutshell, is the narrative of the oil market in 2018. But while it is the time of year for looking backwards, what it tells us about what lies in store for 2019 may be causing a few sleepless nights in Riyadh and Moscow.
Oil prices may still be on course to average near $70 a barrel for the first time since the market crashed in 2014, but they are exiting this year at a lower level than they started on January 1. It will take a brave trader to bet that crude will finish 2019 above $70 again.
Opec and Russia started the year cutting oil production, spent the middle of the year raising production and have ended the year by agreeing to cut it again.
That, in a nutshell, is the narrative of the oil market in 2018. But while it is the time of year for looking backwards, what it tells us about what lies in store for 2019 may be causing a few sleepless nights in Riyadh and Moscow.
Oil prices may still be on course to average near $70 a barrel for the first time since the market crashed in 2014, but they are exiting this year at a lower level than they started on January 1. It will take a brave trader to bet that crude will finish 2019 above $70 again.
Mideast Stocks: Emirates NBD boosts #Dubai, Saudi falls after budget | ZAWYA MENA Edition
Mideast Stocks: Emirates NBD boosts Dubai, Saudi falls after budget | ZAWYA MENA Edition:
The Dubai stock market rebounded on Wednesday as top bank Emirates NBD surged, while falling oil prices continued to weigh on other Gulf markets and Saudi Arabia dropped after the government announced its 2019 budget.
In Dubai, the index rose 1.0 percent in early trade after falling 2.1 percent in the last session. The index is the worst-performing in the Middle East and North Africa this year, down more than 25 percent and near its lowest levels since 2013.
Valuations are attractive but there is no rush for investors to build positions, said Vrajesh Bhandari, portfolio manager at Al Mal Capital in Dubai. However, some flows may be going into high-yielding stocks ahead of the annual dividend announcement season early next year, he added.
The Dubai stock market rebounded on Wednesday as top bank Emirates NBD surged, while falling oil prices continued to weigh on other Gulf markets and Saudi Arabia dropped after the government announced its 2019 budget.
In Dubai, the index rose 1.0 percent in early trade after falling 2.1 percent in the last session. The index is the worst-performing in the Middle East and North Africa this year, down more than 25 percent and near its lowest levels since 2013.
Valuations are attractive but there is no rush for investors to build positions, said Vrajesh Bhandari, portfolio manager at Al Mal Capital in Dubai. However, some flows may be going into high-yielding stocks ahead of the annual dividend announcement season early next year, he added.
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