Abu Dhabi's Bank Merger Is Seen to Result in 1,000 Job Cuts - Bloomberg:
A proposed three-way bank merger in Abu Dhabi may lead to about a thousand jobs being cut, according to three people with knowledge of the matter.
Talks among Abu Dhabi Commercial Bank PJSC, Union National Bank PJSC and privately-held Al Hilal Bank are at an advanced stage, the people said on condition of anonymity because the topic is private. The lenders are working on issues such as valuation and are conducting due diligence, two of the people said.
No final agreements have been reached and the discussions may not result in a transaction, the people said. A combination of would create a lender with about $115 billion in assets. The potential tie-up would create the Gulf Cooperation Council’s fifth-largest bank.
Sunday 23 December 2018
OPEC Is in `Whatever It Takes' Moment to Prop Up Oil Prices - Bloomberg
OPEC Is in `Whatever It Takes' Moment to Prop Up Oil Prices - Bloomberg:
OPEC hasn’t even started implementing its new six-month agreement to cut output, and already members responsible for most of the reductions have pledged to extend or even deepen it.
Officials from Iraq, Kuwait and the United Arab Emirates agreed with Saudi Arabia’s expectation that the group, along with Russia and other oil producers, will extend the agreement for another six months. The U.A.E.’s energy minister, while stressing that the 1.2-million barrel-a-day cut will clear an inventory buildup in the first half, hinted additional curbs could be discussed.
“The planned cuts have been carefully studied, but if it doesn’t work, we always have the option to hold an extraordinary OPEC meeting and we have done so in the past,” Suhail Al Mazrouei, who is also OPEC president, said in Kuwait. “If we are required to extend for another six months, we will, if it requires more, we always discuss and come up with the right balance.”
OPEC hasn’t even started implementing its new six-month agreement to cut output, and already members responsible for most of the reductions have pledged to extend or even deepen it.
Officials from Iraq, Kuwait and the United Arab Emirates agreed with Saudi Arabia’s expectation that the group, along with Russia and other oil producers, will extend the agreement for another six months. The U.A.E.’s energy minister, while stressing that the 1.2-million barrel-a-day cut will clear an inventory buildup in the first half, hinted additional curbs could be discussed.
“The planned cuts have been carefully studied, but if it doesn’t work, we always have the option to hold an extraordinary OPEC meeting and we have done so in the past,” Suhail Al Mazrouei, who is also OPEC president, said in Kuwait. “If we are required to extend for another six months, we will, if it requires more, we always discuss and come up with the right balance.”
Saudi Arabia to privatize Jeddah airport by first half of 2019- authority | ZAWYA MENA Edition
Saudi Arabia to privatize Jeddah airport by first half of 2019- authority | ZAWYA MENA Edition:
The Saudi General Authority of Civil Aviation (GACA) plans to appoint a private company to manage King Abdulaziz International Airport in Jeddah by the first half of next year, the authority confirmed to Zawya by email.
Earlier this year, the GACA terminated a concession agreement with Singapore's Changi Airports International and Saudi Naval Services to operate the airport in Jeddah, after awarding the contract last year for a period of 20 years.
King Abdulaziz International Airport (KAIA) witnessed a record number of passengers in 2017 reaching 34 million, a 9.4 percent increase over the year earlier, Arab News reported, citing figures from a KAIA report.
The Saudi General Authority of Civil Aviation (GACA) plans to appoint a private company to manage King Abdulaziz International Airport in Jeddah by the first half of next year, the authority confirmed to Zawya by email.
Earlier this year, the GACA terminated a concession agreement with Singapore's Changi Airports International and Saudi Naval Services to operate the airport in Jeddah, after awarding the contract last year for a period of 20 years.
King Abdulaziz International Airport (KAIA) witnessed a record number of passengers in 2017 reaching 34 million, a 9.4 percent increase over the year earlier, Arab News reported, citing figures from a KAIA report.
#Bahrain's annual GDP growth slows to 1.6 pct in Q3 | Reuters
Bahrain's annual GDP growth slows to 1.6 pct in Q3 | Reuters:
Bahrain’s annual growth in gross domestic product, adjusted for inflation, slowed in the third quarter of this year as both the oil and non-oil sectors lost momentum, the government’s statistics website showed on Sunday.
GDP grew 1.6 percent from a year earlier in the third quarter, slowing from 2.5 percent in the second quarter. The oil sector shrank 1.5 percent in the third quarter, while the non-oil sector grew 2.4 percent.
Bahrain’s annual growth in gross domestic product, adjusted for inflation, slowed in the third quarter of this year as both the oil and non-oil sectors lost momentum, the government’s statistics website showed on Sunday.
GDP grew 1.6 percent from a year earlier in the third quarter, slowing from 2.5 percent in the second quarter. The oil sector shrank 1.5 percent in the third quarter, while the non-oil sector grew 2.4 percent.
OPEC+ will hold extra meeting if output cuts 'not enough': UAE | Reuters
OPEC+ will hold extra meeting if output cuts 'not enough': UAE | Reuters:
OPEC and allied oil producers are ready to hold an extraordinary meeting and will do what is needed if the current cut in oil output by 1.2 million barrels per day does not balance the market next year, the United Arab Emirates’ energy minister said on Sunday.
Extending the output agreement signed in early December will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at a gathering of the Organization of Arab Petroleum Exporting Countries in Kuwait.
“What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is enough and we will do it,” Mazrouei said.
OPEC and allied oil producers are ready to hold an extraordinary meeting and will do what is needed if the current cut in oil output by 1.2 million barrels per day does not balance the market next year, the United Arab Emirates’ energy minister said on Sunday.
Extending the output agreement signed in early December will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at a gathering of the Organization of Arab Petroleum Exporting Countries in Kuwait.
“What if the 1.2 million barrels of cuts are not enough? I am telling you that if it is not, we will meet and see what is enough and we will do it,” Mazrouei said.
MIDEAST STOCKS-Saudi banks decline on tax payments, Wall Street's decline weighs on Gulf | Reuters
MIDEAST STOCKS-Saudi banks decline on tax payments, Wall Street's decline weighs on Gulf | Reuters:
Saudi shares recovered some ground on Sunday after a sell-off in the banking sector when lenders said they had reached a deal with Islamic tax authorities to resolve a dispute over increased liabilities that would still result in big one-off payments.
Sentiment across Gulf markets was hurt by the plunge in Wall Street stocks on Friday as the U.S. government shutdown weighed on global markets.
The Saudi index opened more than 2 percent lower. At 0731 GMT, it was trading 1.6 percent down. But by the close, the benchmark ended down by 0.3 percent.
Saudi shares recovered some ground on Sunday after a sell-off in the banking sector when lenders said they had reached a deal with Islamic tax authorities to resolve a dispute over increased liabilities that would still result in big one-off payments.
Sentiment across Gulf markets was hurt by the plunge in Wall Street stocks on Friday as the U.S. government shutdown weighed on global markets.
The Saudi index opened more than 2 percent lower. At 0731 GMT, it was trading 1.6 percent down. But by the close, the benchmark ended down by 0.3 percent.
#Dubai strikes partnership with Uber rival Careem | Financial Times
Dubai strikes partnership with Uber rival Careem | Financial Times:
Dubai is to launch a company with Careem, the regional rival to Uber, to manage the ride-hailing system for all taxis operating in the Gulf’s commercial hub.
The emirate’s transport authority said on Sunday it would be the world’s first partnership between a government regulator and a private ride-hailing app. Dubai, like other regulatory authorities, has clashed with fast-growing ride-hailing companies challenging the dominance of traditional taxi services.
Dubai-based Careem, valued by bankers at about $2bn in its last fundraising round, said it would have a 49 per cent stake in the joint venture, which would manage e-hailing systems and online payments for almost 11,000 taxis.
Dubai is to launch a company with Careem, the regional rival to Uber, to manage the ride-hailing system for all taxis operating in the Gulf’s commercial hub.
The emirate’s transport authority said on Sunday it would be the world’s first partnership between a government regulator and a private ride-hailing app. Dubai, like other regulatory authorities, has clashed with fast-growing ride-hailing companies challenging the dominance of traditional taxi services.
Dubai-based Careem, valued by bankers at about $2bn in its last fundraising round, said it would have a 49 per cent stake in the joint venture, which would manage e-hailing systems and online payments for almost 11,000 taxis.
US shale’s financial blanket at risk of wearing thin in 2019 | Financial Times
US shale’s financial blanket at risk of wearing thin in 2019 | Financial Times:
All industrial revolutions need two things: technology and finance. The US shale revolution was made possible by the advances in horizontal drilling and hydraulic fracturing that allowed oil and gas to be released from previously unyielding rocks. But the industry’s financing was equally important in turning those innovations into a production boom that has shaken the world.
The financial model that has dominated the industry has been a highly competitive group of exploration and production companies using debt raised from bond markets and bank loans secured on oil and gas reserves. Often they use derivatives to hedge some or all of their revenues, giving lenders confidence in their ability to make interest payments if oil and gas prices fall.
For most of the shale boom, that financial infrastructure has been underpinned by the low interest rates and quantitative easing that followed the financial crisis. The surge in US oil production has been a result of monetary stimulus, just as much as the tech start-up boom and the rise in the S&P 500 have been.
All industrial revolutions need two things: technology and finance. The US shale revolution was made possible by the advances in horizontal drilling and hydraulic fracturing that allowed oil and gas to be released from previously unyielding rocks. But the industry’s financing was equally important in turning those innovations into a production boom that has shaken the world.
The financial model that has dominated the industry has been a highly competitive group of exploration and production companies using debt raised from bond markets and bank loans secured on oil and gas reserves. Often they use derivatives to hedge some or all of their revenues, giving lenders confidence in their ability to make interest payments if oil and gas prices fall.
For most of the shale boom, that financial infrastructure has been underpinned by the low interest rates and quantitative easing that followed the financial crisis. The surge in US oil production has been a result of monetary stimulus, just as much as the tech start-up boom and the rise in the S&P 500 have been.
#UAE: oil producers will have extraordinary meeting if output cuts "not enough" | ZAWYA MENA Edition
UAE: oil producers will have extraordinary meeting if output cuts "not enough" | ZAWYA MENA Edition:
If the agreed 1.2 million-barrel cut in oil production is not enough, OPEC and non-OPEC producers will hold an extraordinary meeting and do what is necessary to balance the market, the United Arab Emirate's energy minister said on Sunday.
Extending the agreement signed in early December on oil output cuts will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at the Organization of Arab Petroleum Exporting Countries in Kuwait.
If the agreed 1.2 million-barrel cut in oil production is not enough, OPEC and non-OPEC producers will hold an extraordinary meeting and do what is necessary to balance the market, the United Arab Emirate's energy minister said on Sunday.
Extending the agreement signed in early December on oil output cuts will not be a problem and producers will do as the market demands, Suhail al-Mazrouei told a news conference at the Organization of Arab Petroleum Exporting Countries in Kuwait.
Oil Price Drop Reflects Skepticism on OPEC and Dim Global View - Bloomberg
Oil Price Drop Reflects Skepticism on OPEC and Dim Global View - Bloomberg:
It wasn’t meant to be like this.
Not only are oil prices down nearly 40 percent since early October, they’re below where they were when the OPEC+ group of producers began their first round of output cuts in January 2017.
There are two main factors behind this pessimism. The first stems from an undue skepticism about the group's willingness to trim output. The second follows from a negative view about the global outlook that is subject to change – and if it does, a sharp rebound is in store.
It wasn’t meant to be like this.
Not only are oil prices down nearly 40 percent since early October, they’re below where they were when the OPEC+ group of producers began their first round of output cuts in January 2017.
There are two main factors behind this pessimism. The first stems from an undue skepticism about the group's willingness to trim output. The second follows from a negative view about the global outlook that is subject to change – and if it does, a sharp rebound is in store.
Turkish Banks Take Over Largest Phone Operator After Default - Bloomberg
Turkish Banks Take Over Largest Phone Operator After Default - Bloomberg:
A group of Turkey’s major banks took control of Turk Telekom AS, the nation’s largest phone company, setting it up for a likely sale after previous owner Otas defaulted on a multi-billion-dollar loan.
Akbank TAS will hold 35.6 percent of the special purpose vehicle set up to take on Otas’s 55 percent controlling stake, Turkiye Garanti Bankasi AS will have 22.1 percent of that entity, and Turkiye Is Bankasi AS’s share is 11.6 percent, according to filings Saturday. The other owners haven’t been disclosed, though almost 30 local and international banks signaled earlier this year that they’d participate in the SPV.
The lenders intend to sell the controlling stake, according to a separate statement from Lazard Ltd., which advised them on setting up the SPV. The lenders had previously signaled their plans to take control, with Akbank’s chief executive officer saying earlier this month that they intended to sell Turk Telekom to a “reasonable investor” rather than operate it themselves.
A group of Turkey’s major banks took control of Turk Telekom AS, the nation’s largest phone company, setting it up for a likely sale after previous owner Otas defaulted on a multi-billion-dollar loan.
Akbank TAS will hold 35.6 percent of the special purpose vehicle set up to take on Otas’s 55 percent controlling stake, Turkiye Garanti Bankasi AS will have 22.1 percent of that entity, and Turkiye Is Bankasi AS’s share is 11.6 percent, according to filings Saturday. The other owners haven’t been disclosed, though almost 30 local and international banks signaled earlier this year that they’d participate in the SPV.
The lenders intend to sell the controlling stake, according to a separate statement from Lazard Ltd., which advised them on setting up the SPV. The lenders had previously signaled their plans to take control, with Akbank’s chief executive officer saying earlier this month that they intended to sell Turk Telekom to a “reasonable investor” rather than operate it themselves.
Interview: #UAE's biggest fuel retailer still has plenty left in the tank - deputy CEO of ADNOC Distribution | ZAWYA MENA Edition
Interview: UAE's biggest fuel retailer still has plenty left in the tank - deputy CEO of ADNOC Distribution | ZAWYA MENA Edition:
In some ways, it was hardly surprising that the initial public offering of a 10 percent stake in Abu Dhabi National Oil Company’s fuel distribution arm this time last year was more than 20-times oversubscribed.
The firm enjoys a 67 percent share of the fuel retail market in the United Arab Emirates. It has a monopoly on fuel stations in the emirates of Abu Dhabi and Sharjah, and owns 90 percent of the fuel stations in northern Emirates (outside of Dubai).
Yet buying the company’s shares was not without its risks for investors. This was still a division of a state-owned enterprise which was retaining 90 percent of the shares (albeit one in the midst of its own transformation), and, according to its deputy CEO, John Carey, it had been loss-making prior to August 2015, when a removal of fuel subsidies across the country shook up the sector.
In some ways, it was hardly surprising that the initial public offering of a 10 percent stake in Abu Dhabi National Oil Company’s fuel distribution arm this time last year was more than 20-times oversubscribed.
The firm enjoys a 67 percent share of the fuel retail market in the United Arab Emirates. It has a monopoly on fuel stations in the emirates of Abu Dhabi and Sharjah, and owns 90 percent of the fuel stations in northern Emirates (outside of Dubai).
Yet buying the company’s shares was not without its risks for investors. This was still a division of a state-owned enterprise which was retaining 90 percent of the shares (albeit one in the midst of its own transformation), and, according to its deputy CEO, John Carey, it had been loss-making prior to August 2015, when a removal of fuel subsidies across the country shook up the sector.
Mideast Stocks: Saudi banks plunge on tax payments, Wall Street's decline weighs on Gulf | ZAWYA MENA Edition
Mideast Stocks: Saudi banks plunge on tax payments, Wall Street's decline weighs on Gulf | ZAWYA MENA Edition:
Saudi shares fell sharply on Sunday, with banking shares dropping after lenders said they had reached a deal with Islamic tax authorities to resolve a dispute over increased liabilities that would still result in big one-off payments.
Sentiment across Gulf markets was hurt by the plunge in Wall Street stocks on Friday as the threat of a U.S. government shutdown weighed on global markets.
The Saudi index opened more than 2 percent lower, At 0731 GMT, it was trading 1.6 percent down.
Saudi shares fell sharply on Sunday, with banking shares dropping after lenders said they had reached a deal with Islamic tax authorities to resolve a dispute over increased liabilities that would still result in big one-off payments.
Sentiment across Gulf markets was hurt by the plunge in Wall Street stocks on Friday as the threat of a U.S. government shutdown weighed on global markets.
The Saudi index opened more than 2 percent lower, At 0731 GMT, it was trading 1.6 percent down.
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