Saudi-UAE business forum kicks off in Riyadh:
Saudi Arabia’s minister of commerce and investment has praised relations with the United Arab Emirates during the second Saudi-UAE Business Forum which kicked off on Thursday in Riyadh.
Majid bin Abdullah Al-Qasabi stressed that distinguished relations in all fields between Saudi Arabia and the UAE derive their strength from brotherly ties between the two countries and their leaderships.
“The vision of the two brotherly countries seeks sustainable development and diversified economies, in order to become among the world’s major economies. It has also contributed in opening wider domains for the private sector considering it an important partner for the economy and a major recruitment player, and a source to achieve prosperity and the well-being of the nation,” the minister said.
Thursday, 31 January 2019
#Qatar shares close flat despite buying interests from foreign institutions
Qatar shares close flat despite buying interests from foreign institutions:
Foreign institutions’ substantial buying interests were largely contained by strong selling pressure from local retail investors and domestic funds, leading the Qatar Stock Exchange tread a flat course on Thursday.
Notwithstanding robust buying interests at the telecom, real estate and banking counters, the 20-stock Qatar Index settled mere 0.01% higher at 10,720.31 points.
Gulf institutions were seen bearish in the market, whose sensitive index is up 4.09% year-to-date.
Foreign institutions’ substantial buying interests were largely contained by strong selling pressure from local retail investors and domestic funds, leading the Qatar Stock Exchange tread a flat course on Thursday.
Notwithstanding robust buying interests at the telecom, real estate and banking counters, the 20-stock Qatar Index settled mere 0.01% higher at 10,720.31 points.
Gulf institutions were seen bearish in the market, whose sensitive index is up 4.09% year-to-date.
#Dubai Holding to Develop Mega Project Near Burj Al Arab - Bloomberg
Dubai Holding to Develop Mega Project Near Burj Al Arab - Bloomberg:
Dubai Holding LLC, the investment firm owned by the emirate’s ruler, will develop an area close to its iconic Burj al Arab hotel.
Downtown Jumeira will include a 550 meter (1,640 foot) high tower called Burj Jumeira, the company said in a statement, confirming an earlier story by Bloomberg News. The construction will start immediately and the first phase of the development will be delivered in 2023.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. Burj Jumeira will have multiple observation decks giving visitors a panoramic views of Dubai. There have been previous attempts to develop the site.
Dubai Holding LLC, the investment firm owned by the emirate’s ruler, will develop an area close to its iconic Burj al Arab hotel.
Downtown Jumeira will include a 550 meter (1,640 foot) high tower called Burj Jumeira, the company said in a statement, confirming an earlier story by Bloomberg News. The construction will start immediately and the first phase of the development will be delivered in 2023.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. Burj Jumeira will have multiple observation decks giving visitors a panoramic views of Dubai. There have been previous attempts to develop the site.
Airbus A380 Future on Line as Emirates Considers A350 Switch - Bloomberg
Airbus A380 Future on Line as Emirates Considers A350 Switch - Bloomberg:
A year after Airbus SE won what appeared to be a lifesaving order for its A380 double-decker, the flagship program’s future is once again on the line.
Gulf carrier Emirates may convert some or all of its most recent 20 superjumbo orders into smaller A350s, people familiar with the matter said. That would slash the backlog and lead Airbus to kill off a plane that’s had limited interest from other airlines, just 11 years after it entered commercial service.
Airbus would keep the superjumbo going until other outstanding orders for the model were fulfilled, mostly from an earlier Emirates deal, according to the people, who asked not to be named as the talks are private. But the move would ultimately mean shuttering a production line the manufacturer has fought to retain in anticipation of a revival in demand.
A year after Airbus SE won what appeared to be a lifesaving order for its A380 double-decker, the flagship program’s future is once again on the line.
Gulf carrier Emirates may convert some or all of its most recent 20 superjumbo orders into smaller A350s, people familiar with the matter said. That would slash the backlog and lead Airbus to kill off a plane that’s had limited interest from other airlines, just 11 years after it entered commercial service.
Airbus would keep the superjumbo going until other outstanding orders for the model were fulfilled, mostly from an earlier Emirates deal, according to the people, who asked not to be named as the talks are private. But the move would ultimately mean shuttering a production line the manufacturer has fought to retain in anticipation of a revival in demand.
#SaudiArabia Is Said to Seek Funding for Mega Tourism Projects - Bloomberg
Saudi Arabia Is Said to Seek Funding for Mega Tourism Projects - Bloomberg:
Saudi Arabia has approached banks to raise financing for two mega tourism projects as the kingdom pushes ahead with ambitious plans for life after oil, according to people familiar with the matter.
Red Sea Development Co. and Qiddiya Investment Co., which are managing the developments, have sent out so-called request for proposals to banks to see how much they could lend, the people said, asking not to be identified because the matter is private. The companies haven’t said how much they plan to borrow and are gauging how much they could raise, the people said.
Representatives for Red Sea Development and Qiddiya Investment didn’t immediately respond to requests for comment.
Saudi Arabia has approached banks to raise financing for two mega tourism projects as the kingdom pushes ahead with ambitious plans for life after oil, according to people familiar with the matter.
Red Sea Development Co. and Qiddiya Investment Co., which are managing the developments, have sent out so-called request for proposals to banks to see how much they could lend, the people said, asking not to be identified because the matter is private. The companies haven’t said how much they plan to borrow and are gauging how much they could raise, the people said.
Representatives for Red Sea Development and Qiddiya Investment didn’t immediately respond to requests for comment.
Barclays trial judge says SFO claims implicate #Qatar | Financial Times
Barclays trial judge says SFO claims implicate Qatar | Financial Times:
Qatari entities must be just as dishonest as the Barclays bankers on trial for fraud if the prosecution is correct, a judge told a jury hearing a criminal trial over the UK lender’s attempts to avoid a government bailout during the financial crisis.
Mr Justice Jay intervened in a jury trial at Southwark Crown Court on Thursday to spell out that the logic behind the Serious Fraud Office’s case against John Varley, the former chief executive of Barclays, and three other top bankers, rests on the allegation that side deals struck with the prime minister and sovereign-wealth fund of Qatar at the same time as two emergency capital calls in 2008 were shams.
“A sham agreement is one that does not mean what it says,” Mr Justice Jay said on the seventh day of trial. “It requires two parties.
Qatari entities must be just as dishonest as the Barclays bankers on trial for fraud if the prosecution is correct, a judge told a jury hearing a criminal trial over the UK lender’s attempts to avoid a government bailout during the financial crisis.
Mr Justice Jay intervened in a jury trial at Southwark Crown Court on Thursday to spell out that the logic behind the Serious Fraud Office’s case against John Varley, the former chief executive of Barclays, and three other top bankers, rests on the allegation that side deals struck with the prime minister and sovereign-wealth fund of Qatar at the same time as two emergency capital calls in 2008 were shams.
“A sham agreement is one that does not mean what it says,” Mr Justice Jay said on the seventh day of trial. “It requires two parties.
First Abu Dhabi Bank to raise foreign shareholder limit | Reuters
First Abu Dhabi Bank to raise foreign shareholder limit | Reuters:
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, beat analysts’ forecasts with a 4 percent rise in fourth-quarter profit on Thursday and said it planned to raise its foreign ownership limit.
FAB said it proposed to its board increasing its foreign ownership limit to 40 percent from 25 percent, the latest Abu Dhabi bank hoping to attract foreign investors after Abu Dhabi Islamic Bank lifted its foreign ownership limit to 25 percent in November.
After a mixed year for UAE stock markets in 2018, analysts say moves by companies to raise foreign ownership limits could help boost investor appetite in 2019.
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, beat analysts’ forecasts with a 4 percent rise in fourth-quarter profit on Thursday and said it planned to raise its foreign ownership limit.
FAB said it proposed to its board increasing its foreign ownership limit to 40 percent from 25 percent, the latest Abu Dhabi bank hoping to attract foreign investors after Abu Dhabi Islamic Bank lifted its foreign ownership limit to 25 percent in November.
After a mixed year for UAE stock markets in 2018, analysts say moves by companies to raise foreign ownership limits could help boost investor appetite in 2019.
MIDEAST STOCKS-New #Saudi-MSCI index dips; earnings boost Dubai | Reuters
MIDEAST STOCKS-New Saudi-MSCI index dips; earnings boost Dubai | Reuters:
Saudi Arabia's stock market, which introduced the MSCI Tadawul 30 index, fell on Thursday as its bank stocks slid, while Dubai gained sharply lifted by corporate earnings results.
Saudi Arabia's main index fell 0.3 percent. National Shipping Company of Saudi Arabia dropped 2.5 percent after its fourth-quarter net profit more than halved.
But Riyad Bank rose 2.1 percent after posting a 39 percent gain in its fourth-quarter net profit, according to Reuters calculations.
Saudi Arabia's stock market, which introduced the MSCI Tadawul 30 index, fell on Thursday as its bank stocks slid, while Dubai gained sharply lifted by corporate earnings results.
Saudi Arabia's main index fell 0.3 percent. National Shipping Company of Saudi Arabia dropped 2.5 percent after its fourth-quarter net profit more than halved.
But Riyad Bank rose 2.1 percent after posting a 39 percent gain in its fourth-quarter net profit, according to Reuters calculations.
With its Iran SPV, Europe Protects Itself From American Caprice - Bloomberg
With its Iran SPV, Europe Protects Itself From American Caprice - Bloomberg:
It’s been a surprisingly short time in coming. It was only last September that Federica Mogherini, the European Union’s high representative for foreign affairs, announced that the European parties to the Iranian nuclear deal—formally known as the Joint Comprehensive Plan of Action—would establish an a special purpose vehicle to “assist and reassure economic operators pursuing legitimate business with Iran,” giving them a route around secondary sanctions imposed by the Trump administration.
Just four months later, France, Germany, and the United Kingdom are ready to launch the much-anticipated SPV, a first-of-its-kind state-owned trade intermediary. It will initially facilitate what French Foreign Minister Jean-Yves Le Drian has described as trade in “essential goods”—mostly European exports of food and medicine to Iran. These, although not technically sanctioned by the U.S., have been restricted by the reluctance of European banks to facilitate payments for fear of American retribution.
The SPV, called INSTEX, or Instrument in Support of Trade Exchanges, is registered in France with a German managing director. It will take some months to become operational, but its registration marks an important milestone in the European effort to counterbalance U.S. economic power.
It’s been a surprisingly short time in coming. It was only last September that Federica Mogherini, the European Union’s high representative for foreign affairs, announced that the European parties to the Iranian nuclear deal—formally known as the Joint Comprehensive Plan of Action—would establish an a special purpose vehicle to “assist and reassure economic operators pursuing legitimate business with Iran,” giving them a route around secondary sanctions imposed by the Trump administration.
Just four months later, France, Germany, and the United Kingdom are ready to launch the much-anticipated SPV, a first-of-its-kind state-owned trade intermediary. It will initially facilitate what French Foreign Minister Jean-Yves Le Drian has described as trade in “essential goods”—mostly European exports of food and medicine to Iran. These, although not technically sanctioned by the U.S., have been restricted by the reluctance of European banks to facilitate payments for fear of American retribution.
The SPV, called INSTEX, or Instrument in Support of Trade Exchanges, is registered in France with a German managing director. It will take some months to become operational, but its registration marks an important milestone in the European effort to counterbalance U.S. economic power.
Biggest U.A.E. Bank Posts 10% Increase in Profit on Forex Gains - Bloomberg
Biggest U.A.E. Bank Posts 10% Increase in Profit on Forex Gains - Bloomberg:
First Abu Dhabi Bank PJSC reported a 10 percent jump in full-year profit, meeting analysts estimates, as foreign exchange gains doubled and impairment charges dropped.
The United Arab Emirates’ biggest lender recommended a dividend of 74 fils a share. That compares with 70 fils for 2017.
First Abu Dhabi Bank PJSC reported a 10 percent jump in full-year profit, meeting analysts estimates, as foreign exchange gains doubled and impairment charges dropped.
The United Arab Emirates’ biggest lender recommended a dividend of 74 fils a share. That compares with 70 fils for 2017.
#Dubai Holding Is Said Set to Unveil Mega Project This Week - Bloomberg
Dubai Holding Is Said Set to Unveil Mega Project This Week - Bloomberg:
Dubai Holding LLC, the investment firm owned by the emirate’s ruler, is set to announce a development close to its iconic Burj al Arab hotel, according to a person with knowledge of the plans.
Downtown Jumeira will include a 550 meter high tower called Burj Jumeira, the person said, asking not to be identified because the plans are private. The project could be announced as soon as this week and construction will start immediately, the person said.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. The first phase is due to be completed in 2023, the person said. There have been previous attempts to develop the site.
Dubai Holding LLC, the investment firm owned by the emirate’s ruler, is set to announce a development close to its iconic Burj al Arab hotel, according to a person with knowledge of the plans.
Downtown Jumeira will include a 550 meter high tower called Burj Jumeira, the person said, asking not to be identified because the plans are private. The project could be announced as soon as this week and construction will start immediately, the person said.
The development in the Al Sufouh district of Dubai will include homes, office space, as well as hotels. The first phase is due to be completed in 2023, the person said. There have been previous attempts to develop the site.
Emirates Global Aluminium secures $6.5bln loan | ZAWYA MENA Edition
Emirates Global Aluminium secures $6.5bln loan | ZAWYA MENA Edition:
Emirates Global Aluminium (EGA), one of the largest industrial companies in the United Arab Emirates, said on Thursday it had secured a $6.5 billion seven-year loan from a group of international and regional banks to refinance part of its debt.
The loan refinances an existing $4.9 billion debt facility agreed in December 2015 and will also be used to fully repay a $1.8 billion loan raised by EGA's subsidiary Dubai Aluminium.
"Building on the previous transaction in 2015, this transaction further consolidates our debt at the EGA level, and strengthens our credit profile," Danny Dweik, EGA's chief financial officer, said in a statement.
Emirates Global Aluminium (EGA), one of the largest industrial companies in the United Arab Emirates, said on Thursday it had secured a $6.5 billion seven-year loan from a group of international and regional banks to refinance part of its debt.
The loan refinances an existing $4.9 billion debt facility agreed in December 2015 and will also be used to fully repay a $1.8 billion loan raised by EGA's subsidiary Dubai Aluminium.
"Building on the previous transaction in 2015, this transaction further consolidates our debt at the EGA level, and strengthens our credit profile," Danny Dweik, EGA's chief financial officer, said in a statement.
#Saudi economy grows 2.21 percent in 2018, modest growth seen in 2019 | Reuters
Saudi economy grows 2.21 percent in 2018, modest growth seen in 2019 | Reuters:
Saudi Arabia’s economy grew at a pace of 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a contraction in 2017 when the economy was hurt by weak oil prices and austerity measures, government data showed on Thursday.
In 2017, it shrank 0.74 percent, the first annual decline since the global financial crisis nearly a decade earlier.
The oil sector grew 2.85 percent, from a contraction in 2017, while the non-oil sector grew 2.05 percent, the data showed here
Saudi Arabia’s economy grew at a pace of 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a contraction in 2017 when the economy was hurt by weak oil prices and austerity measures, government data showed on Thursday.
In 2017, it shrank 0.74 percent, the first annual decline since the global financial crisis nearly a decade earlier.
The oil sector grew 2.85 percent, from a contraction in 2017, while the non-oil sector grew 2.05 percent, the data showed here
#Qatar Airways upgrades Airbus A321 order to include longer range jets | Reuters
Qatar Airways upgrades Airbus A321 order to include longer range jets | Reuters:
Qatar Airways has upgraded an existing order for 50 Airbus A321neo jets to include 10 long-range models, as a regional diplomatic rift has forced the airline to fly longer routes.
The airline said on Thursday that 10 of those 50 aircraft would now be the A321LR, to be delivered from 2020.
A321s are the larger version of Airbus’ best-selling A320 narrow-body jet.
Qatar Airways has upgraded an existing order for 50 Airbus A321neo jets to include 10 long-range models, as a regional diplomatic rift has forced the airline to fly longer routes.
The airline said on Thursday that 10 of those 50 aircraft would now be the A321LR, to be delivered from 2020.
A321s are the larger version of Airbus’ best-selling A320 narrow-body jet.
China calls for harmony as it welcomes #Qatar emir amid Gulf dispute | Reuters
China calls for harmony as it welcomes Qatar emir amid Gulf dispute | Reuters:
Chinese President Xi Jinping called for a return to “unity and harmony” on Thursday as he welcomed gas-rich Qatar’s emir to Beijing, amid a festering dispute that has seen some Arab states lead by Saudi Arabia severing relations with Doha.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic, trade and transport ties with Qatar in June 2017. They accuse Qatar of supporting terrorism and cultivating ties with Saudi Arabia’s regional foe, Iran.
Qatar, which denies the charge, says the boycott seeks to curtail its sovereignty, while the row has defied mediation efforts by Kuwait and the United States which sees Gulf unity as essential to containing Iran.
Chinese President Xi Jinping called for a return to “unity and harmony” on Thursday as he welcomed gas-rich Qatar’s emir to Beijing, amid a festering dispute that has seen some Arab states lead by Saudi Arabia severing relations with Doha.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic, trade and transport ties with Qatar in June 2017. They accuse Qatar of supporting terrorism and cultivating ties with Saudi Arabia’s regional foe, Iran.
Qatar, which denies the charge, says the boycott seeks to curtail its sovereignty, while the row has defied mediation efforts by Kuwait and the United States which sees Gulf unity as essential to containing Iran.
Mideast Stocks: Earnings lift #Dubai; new #Saudi-MSCI index begins trade | ZAWYA MENA Edition
Mideast Stocks: Earnings lift Dubai; new Saudi-MSCI index begins trade | ZAWYA MENA Edition:
Saudi Arabia's stock market rose on Thursday as banks gained, and it introduced the MSCI Tadawul 30 index. Dubai was lifted by corporate earnings.
Saudi Arabia's main index rose 0.3 percent. Riyad Bank rose 1.2 percent after posting a 39 percent gain in its fourth-quarter net profit, according to Reuters calculations.
The MSCI Tadawul 30 Index (MT30) rose 0.3 percent. The index of the 30 largest securities listed on the Saudi Arabian Equity Market live on Wednesday.
Saudi Arabia's stock market rose on Thursday as banks gained, and it introduced the MSCI Tadawul 30 index. Dubai was lifted by corporate earnings.
Saudi Arabia's main index rose 0.3 percent. Riyad Bank rose 1.2 percent after posting a 39 percent gain in its fourth-quarter net profit, according to Reuters calculations.
The MSCI Tadawul 30 Index (MT30) rose 0.3 percent. The index of the 30 largest securities listed on the Saudi Arabian Equity Market live on Wednesday.
Wednesday, 30 January 2019
Trump's Two-Front War on OPEC May Clash With Love of Cheap Oil - Bloomberg
Trump's Two-Front War on OPEC May Clash With Love of Cheap Oil - Bloomberg:
President Donald Trump may soon need to choose between two recurring fixations: battling OPEC nations, and cheap oil.
After announcing sanctions on Venezuela’s state-run oil company PDVSA this week, the president is now in conflict with two of the cartel’s founding members, having imposed similar measures against Iran late last year. Trump is pressuring the Islamic Republic over its nuclear program, and squeezing Venezuela’s President Nicolas Maduro for fraudulently clinging to power.
Iranian shipments have already slumped by 1.3 million barrels a day, and about 500,000 barrels a day of Venezuelan crude which has been banned by the U.S. will soon need to find new buyers. The overall disruption could be much bigger if America succeeds in choking off Iran’s exports entirely, or if sanctions on Venezuelan oil are applied more broadly, as suggested in a tweet from National Security Adviser John Bolton.
President Donald Trump may soon need to choose between two recurring fixations: battling OPEC nations, and cheap oil.
After announcing sanctions on Venezuela’s state-run oil company PDVSA this week, the president is now in conflict with two of the cartel’s founding members, having imposed similar measures against Iran late last year. Trump is pressuring the Islamic Republic over its nuclear program, and squeezing Venezuela’s President Nicolas Maduro for fraudulently clinging to power.
Iranian shipments have already slumped by 1.3 million barrels a day, and about 500,000 barrels a day of Venezuelan crude which has been banned by the U.S. will soon need to find new buyers. The overall disruption could be much bigger if America succeeds in choking off Iran’s exports entirely, or if sanctions on Venezuelan oil are applied more broadly, as suggested in a tweet from National Security Adviser John Bolton.
Crude Vaults to Yearly High as Saudi Shipments to U.S. Dwindle - Bloomberg
Crude Vaults to Yearly High as Saudi Shipments to U.S. Dwindle - Bloomberg:
Oil prices vaulted above $54 a barrel, the highest since November, as a steep drop in U.S. imports from Saudi Arabia showed OPEC putting its supply cut plans into action.
Futures in New York rose 1.7 percent after the U.S. Energy Information Administration said domestic crude stockpiles rose by about 920,000 barrels last week, less than forecast by industry and private analysts. Imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels a day, the second-lowest in data going back to 2010.
“There’s a lot of good in here, if you’re a market bull,” said Rob Thummel, managing director at Tortoise, a Kansas-based money manager with $16 billion in energy investments. “OPEC’s made it very clear: lower exports of oil are coming to the U.S.”
Oil prices vaulted above $54 a barrel, the highest since November, as a steep drop in U.S. imports from Saudi Arabia showed OPEC putting its supply cut plans into action.
Futures in New York rose 1.7 percent after the U.S. Energy Information Administration said domestic crude stockpiles rose by about 920,000 barrels last week, less than forecast by industry and private analysts. Imports from Saudi Arabia fell by more than half from the previous week to 442,000 barrels a day, the second-lowest in data going back to 2010.
“There’s a lot of good in here, if you’re a market bull,” said Rob Thummel, managing director at Tortoise, a Kansas-based money manager with $16 billion in energy investments. “OPEC’s made it very clear: lower exports of oil are coming to the U.S.”
ADCB, UNB shares move in opposite directions post-merger announcement | ZAWYA MENA Edition
ADCB, UNB shares move in opposite directions post-merger announcement | ZAWYA MENA Edition:
Shares in Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) moved in opposite directions on Wednesday, a day after both banks announced that they agreed to merge and for the combined entity to acquire Al Hilal Bank. (Read more here).
In a statement to the exchange, the banks said that ADCB will issue 0.5966 ADCB shares for every UNB share held. The merger is expected to take place within the first six months of the year, subject to regulatory and shareholder approvals.
ADCB’s shares rose 1.12 percent on Wednesday, while UNB’s shares dropped 1.7 percent, dragging Abu Dhabi’s index to close 0.56 percent lower.
Shares in Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) moved in opposite directions on Wednesday, a day after both banks announced that they agreed to merge and for the combined entity to acquire Al Hilal Bank. (Read more here).
In a statement to the exchange, the banks said that ADCB will issue 0.5966 ADCB shares for every UNB share held. The merger is expected to take place within the first six months of the year, subject to regulatory and shareholder approvals.
ADCB’s shares rose 1.12 percent on Wednesday, while UNB’s shares dropped 1.7 percent, dragging Abu Dhabi’s index to close 0.56 percent lower.
#SaudiArabia winds down 15-month anti-corruption campaign | Reuters
Saudi Arabia winds down 15-month anti-corruption campaign | Reuters:
Saudi Arabia has ended a sprawling crackdown on corruption ordered by Crown Prince Mohammed bin Salman that it said had recovered more than $106 billion through settlements with scores of senior princes, ministers and top businessmen.
A royal court statement said the government had summoned 381 people, some as witnesses, under the campaign launched in November 2017, but it provided no names. It said 87 people confessed to charges against them and reached secret settlements that included the forfeiture of real estate, companies, cash and other assets.
The campaign ended as abruptly as it began, despite speculation within the local business community that a new round of arrests was imminent.
Saudi Arabia has ended a sprawling crackdown on corruption ordered by Crown Prince Mohammed bin Salman that it said had recovered more than $106 billion through settlements with scores of senior princes, ministers and top businessmen.
A royal court statement said the government had summoned 381 people, some as witnesses, under the campaign launched in November 2017, but it provided no names. It said 87 people confessed to charges against them and reached secret settlements that included the forfeiture of real estate, companies, cash and other assets.
The campaign ended as abruptly as it began, despite speculation within the local business community that a new round of arrests was imminent.
MIDEAST STOCKS-Dubai Islamic drags #Dubai, Global Telecom lifts Egypt | Reuters
MIDEAST STOCKS-Dubai Islamic drags Dubai, Global Telecom lifts Egypt | Reuters:
Dubai's stock market fell sharply on Wednesday, hurt by a fall in Dubai Islamic Bank, while Egypt rose, partly lifted by Global Telecom Holding rising on the prospect of going private.
The Dubai index dropped 1.1 percent, with Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, sliding 4.4 percent in heavy trade, its biggest intra-day loss in nine months.
The bank reported a 15 percent rise in fourth-quarter net profit, but investors were disappointed when it proposed a cash dividend of 35 fils per share for 2018 after 45 fils in 2017, said Marwan Shurrab, head of high net worth and retail equities brokage at AlRamz Capital.
Dubai's stock market fell sharply on Wednesday, hurt by a fall in Dubai Islamic Bank, while Egypt rose, partly lifted by Global Telecom Holding rising on the prospect of going private.
The Dubai index dropped 1.1 percent, with Dubai Islamic Bank, the largest Islamic lender in the United Arab Emirates, sliding 4.4 percent in heavy trade, its biggest intra-day loss in nine months.
The bank reported a 15 percent rise in fourth-quarter net profit, but investors were disappointed when it proposed a cash dividend of 35 fils per share for 2018 after 45 fils in 2017, said Marwan Shurrab, head of high net worth and retail equities brokage at AlRamz Capital.
#Saudi and #Kuwait remain top picks for cautious Mideast funds: poll | ZAWYA MENA Edition
Saudi and Kuwait remain top picks for cautious Mideast funds: poll | ZAWYA MENA Edition:
Middle Eastern funds will invest in Saudi and Kuwaiti stocks this year but remain cautious about other regional markets and are at their least bullish in a January since 2013, according to a Reuters poll.
Saudi Arabia's impending entry into emerging market indexes should mean a $15 billion inflow of "passive" benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Kuwait will hear in mid-2019 if MSCI will upgrade it to emerging market status. A positive decision could see its stocks gain immediately although entry wouldn't occur until mid-2020.
Middle Eastern funds will invest in Saudi and Kuwaiti stocks this year but remain cautious about other regional markets and are at their least bullish in a January since 2013, according to a Reuters poll.
Saudi Arabia's impending entry into emerging market indexes should mean a $15 billion inflow of "passive" benchmark-linked funds, which will attract billions more of active funds, regardless of low oil prices or geopolitical tensions.
Kuwait will hear in mid-2019 if MSCI will upgrade it to emerging market status. A positive decision could see its stocks gain immediately although entry wouldn't occur until mid-2020.
UPDATE 1- #Dubai Investments Park postpones Islamic bonds sale | Reuters
UPDATE 1-Dubai Investments Park postpones Islamic bonds sale | Reuters:
Dubai Investments Park (DIP), a subsidiary of Dubai Investments, has postponed its planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, saying more attractive funding alternatives were available.
DIP, a residential, commercial and industrial development, had mandated Citi, HSBC, Dubai Islamic Bank , Emirates NBD Capital and First Abu Dhabi Bank as lead managers and bookrunners for the planned debt issue, it said last week.
It was planning a five-year sukuk sale to refinance outstanding notes, according to a statement issued on Wednesday by one of the banks leading the deal.
Dubai Investments Park (DIP), a subsidiary of Dubai Investments, has postponed its planned issue of U.S. dollar-denominated sukuk, or Islamic bonds, saying more attractive funding alternatives were available.
DIP, a residential, commercial and industrial development, had mandated Citi, HSBC, Dubai Islamic Bank , Emirates NBD Capital and First Abu Dhabi Bank as lead managers and bookrunners for the planned debt issue, it said last week.
It was planning a five-year sukuk sale to refinance outstanding notes, according to a statement issued on Wednesday by one of the banks leading the deal.
The Middle East's Once-Hot LNG Market Faces a Decade-Long Slump - Bloomberg
The Middle East's Once-Hot LNG Market Faces a Decade-Long Slump - Bloomberg:
The Middle East was a bright spot for global liquefied natural gas demand in 2015. Now imports have plummeted so much that it could take a decade to recover.
Last year’s 37 percent slump and the prolonged negative outlook is in contrast to the region’s two-year LNG demand surge that outpaced global growth, according to BloombergNEF and ship-broker Poten & Partners Inc. data. The Middle East is now expected to make up less than 4 percent of global imports for at least eight years.
There are only five importers -- Egypt, Kuwait, Jordan, the United Arab Emirates and Israel -- of LNG in the Middle East. Bahrain is expected to join the group this year.
The Middle East was a bright spot for global liquefied natural gas demand in 2015. Now imports have plummeted so much that it could take a decade to recover.
Last year’s 37 percent slump and the prolonged negative outlook is in contrast to the region’s two-year LNG demand surge that outpaced global growth, according to BloombergNEF and ship-broker Poten & Partners Inc. data. The Middle East is now expected to make up less than 4 percent of global imports for at least eight years.
There are only five importers -- Egypt, Kuwait, Jordan, the United Arab Emirates and Israel -- of LNG in the Middle East. Bahrain is expected to join the group this year.
Prospects for local currency bonds in #UAE "very interesting" - experts | ZAWYA MENA Edition
Prospects for local currency bonds in UAE "very interesting" - experts | ZAWYA MENA Edition:
The UAE announced that it had passed a federal debt law in October last year, and providing a benchmark yield curve for dirham-denominated debt was one of the reasons given by the governor of the central bank for passing the law.
Speaking at a media roundtable launching a white paper on the MENA debt market held at Nasdaq Dubai's headquarters on Monday, Emirates NBD Asset Management's director of fixed income, Parth Kikani, said: "I think the local currency issuance could be very interesting.
“With this law being passed in the UAE, you could see more local currency issuance in the UAE. So the government forms a local currency curve and the corporates can borrow based on the local currency curve of the government. Since the corporates have local dirham-denominated revenues, it is better for them to borrow in dirham(s).”
The UAE announced that it had passed a federal debt law in October last year, and providing a benchmark yield curve for dirham-denominated debt was one of the reasons given by the governor of the central bank for passing the law.
Speaking at a media roundtable launching a white paper on the MENA debt market held at Nasdaq Dubai's headquarters on Monday, Emirates NBD Asset Management's director of fixed income, Parth Kikani, said: "I think the local currency issuance could be very interesting.
“With this law being passed in the UAE, you could see more local currency issuance in the UAE. So the government forms a local currency curve and the corporates can borrow based on the local currency curve of the government. Since the corporates have local dirham-denominated revenues, it is better for them to borrow in dirham(s).”
#Iran facing the toughest economic situation in 40 years: president | Reuters
Iran facing the toughest economic situation in 40 years: president | Reuters:
Iran’s president said on Wednesday the country was facing its toughest economic situation in 40 years, and the United States, not the government, was to blame.
U.S. President Donald Trump last year pulled out of an international nuclear deal with Iran and re-imposed sanctions.
Workers, including truck drivers, farmers and merchants, have since launched sporadic protests against economic hardships, which have occasionally led to confrontations with security forces.
Iran’s president said on Wednesday the country was facing its toughest economic situation in 40 years, and the United States, not the government, was to blame.
U.S. President Donald Trump last year pulled out of an international nuclear deal with Iran and re-imposed sanctions.
Workers, including truck drivers, farmers and merchants, have since launched sporadic protests against economic hardships, which have occasionally led to confrontations with security forces.
#Dubai Islamic Bank's profit rises 15 pct in fourth quarter | Reuters
Dubai Islamic Bank's profit rises 15 pct in fourth quarter | Reuters:
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, reported a 15 percent rise in fourth-quarter net profit on Wednesday, in line with forecasts, according to Reuters calculations.
The bank made 1.30 billion dirhams ($354 million) in the three months to Dec. 31, Reuters calculated from financial statements in the absence of a quarterly breakdown. This compares with a profit of 1.13 billion dirhams in the corresponding period of 2017.
The average forecast of three analysts was for DIB to make a quarterly profit of 1.22 billion dirhams, according to Refinitiv data.
Dubai Islamic Bank (DIB), the United Arab Emirates’ largest sharia-compliant lender, reported a 15 percent rise in fourth-quarter net profit on Wednesday, in line with forecasts, according to Reuters calculations.
The bank made 1.30 billion dirhams ($354 million) in the three months to Dec. 31, Reuters calculated from financial statements in the absence of a quarterly breakdown. This compares with a profit of 1.13 billion dirhams in the corresponding period of 2017.
The average forecast of three analysts was for DIB to make a quarterly profit of 1.22 billion dirhams, according to Refinitiv data.
MIDEAST STOCKS-ADCB-UNB merger weighs on #AbuDhabi, #Saudi inches up | Reuters
MIDEAST STOCKS-ADCB-UNB merger weighs on Abu Dhabi, Saudi inches up | Reuters:
Saudi Arabia’s stock market rose on Wednesday, bolstered by petrochemicals, while Abu Dhabi was pulled down by Union National Bank and Abu Dhabi Commercial Bank after announcing a three-way banking merger.
Abu Dhabi’s index slid 0.5, with Abu Dhabi Commercial (ADCB) Bank losing 2 percent and Union National Bank (UNB) dropping 4.5 percent to its biggest intraday loss since May 2017.
ADCB, UNB and Al Hilal Bank agreed a merger to create the third-largest bank in the United Arab Emirates with $114 billion of assets.
Saudi Arabia’s stock market rose on Wednesday, bolstered by petrochemicals, while Abu Dhabi was pulled down by Union National Bank and Abu Dhabi Commercial Bank after announcing a three-way banking merger.
Abu Dhabi’s index slid 0.5, with Abu Dhabi Commercial (ADCB) Bank losing 2 percent and Union National Bank (UNB) dropping 4.5 percent to its biggest intraday loss since May 2017.
ADCB, UNB and Al Hilal Bank agreed a merger to create the third-largest bank in the United Arab Emirates with $114 billion of assets.
Tuesday, 29 January 2019
#AbuDhabi to control majority stake in new mega bank
Abu Dhabi to control majority stake in new mega bank:
The Government of Abu Dhabi will own 60.2 per cent of the new bank that will be formed following the completion of a merger between Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), with the new entity acquiring Al Hilal Bank.
The Abu Dhabi government’s ownership in the banking group will be through the Abu Dhabi Investment Council. Other ADCB shareholders will own 28 per cent, while other UNB shareholders will own 11.8 per cent in the new entity.
The new board and management will assume their new roles when the transaction becomes effective following regulatory approvals.
The Government of Abu Dhabi will own 60.2 per cent of the new bank that will be formed following the completion of a merger between Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB), with the new entity acquiring Al Hilal Bank.
The Abu Dhabi government’s ownership in the banking group will be through the Abu Dhabi Investment Council. Other ADCB shareholders will own 28 per cent, while other UNB shareholders will own 11.8 per cent in the new entity.
The new board and management will assume their new roles when the transaction becomes effective following regulatory approvals.
Etihad ‘could own 40% of India’s Jet Airways’
Etihad ‘could own 40% of India’s Jet Airways’:
Jet Airways creditor State Bank of India is likely to own 15 percent of the airline if the cash-strapped carrier’s plan for a debt-for-equity swap is approved, Indian TV channels reported on Tuesday.
With debts of about $1.14 billion, Jet has been hit by fierce competition from other low-cost carriers, a rupee depreciation and high oil prices. It owes money to banks, pilots, vendors and lessors, some of whom are considering taking back aircraft, sources have told Reuters.
Jet said on Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board to help resolve its financial problems.
Jet Airways creditor State Bank of India is likely to own 15 percent of the airline if the cash-strapped carrier’s plan for a debt-for-equity swap is approved, Indian TV channels reported on Tuesday.
With debts of about $1.14 billion, Jet has been hit by fierce competition from other low-cost carriers, a rupee depreciation and high oil prices. It owes money to banks, pilots, vendors and lessors, some of whom are considering taking back aircraft, sources have told Reuters.
Jet said on Monday it would seek shareholder approval next month to convert debt into equity, increase its share capital and allow lenders to nominate a director on its board to help resolve its financial problems.
Corporate profits will remain strong in 2019 - The Peninsula Qatar
Corporate profits will remain strong in 2019 - The Peninsula Qatar:
Amidst muted growth expectations in global markets, economic outlook for the GCC region as a whole remains positive, as the surge in oil revenues and fiscal reforms will provide the necessary cushion for GCC countries to support economic growth through capital expenditure. With the exception of Bahrain, where there is weakness in government finances, economic factors remain largely favourable for the region.
Markaz noted in its “GCC Stock Market Outlook 2019” that the growth in corporate earnings is expected to witness an uptick in the GCC during 2019 with the exception of Bahrain and Saudi Arabia. Banks will be the primary growth drivers, as the sector is expected to see a rise in profitability and credit growth due to tailwinds such as rising interest rates and new infrastructure projects. Commodity related companies are likely to see their earnings drop due to the fall in oil prices while the construction sector is expected to mildly rebound after years of underperformance.
Amidst muted growth expectations in global markets, economic outlook for the GCC region as a whole remains positive, as the surge in oil revenues and fiscal reforms will provide the necessary cushion for GCC countries to support economic growth through capital expenditure. With the exception of Bahrain, where there is weakness in government finances, economic factors remain largely favourable for the region.
Markaz noted in its “GCC Stock Market Outlook 2019” that the growth in corporate earnings is expected to witness an uptick in the GCC during 2019 with the exception of Bahrain and Saudi Arabia. Banks will be the primary growth drivers, as the sector is expected to see a rise in profitability and credit growth due to tailwinds such as rising interest rates and new infrastructure projects. Commodity related companies are likely to see their earnings drop due to the fall in oil prices while the construction sector is expected to mildly rebound after years of underperformance.
M&A Bankers Wanted for Gulf Merger Boom - Bloomberg
M&A Bankers Wanted for Gulf Merger Boom - Bloomberg:
It’s a good time to be an M&A banker in the Middle East.
Just one month into the year, five banks are merging: a three-way merger in oil-rich Abu Dhabi and a cross-country combination in Kuwait and Bahrain. More deals are in the works.
As oil prices settle at a new normal that’s barely enough to balance the budget of Gulf Arab monarchies, governments are engineering ways to stay competitive, prompting an unprecedented consolidation wave. Abu Dhabi, home to 6 percent of global oil reserves, combined three of its investment firms to create a wealth fund with about $250 billion of assets, shortly after another mega-merger between two of its largest lenders.
It’s a good time to be an M&A banker in the Middle East.
Just one month into the year, five banks are merging: a three-way merger in oil-rich Abu Dhabi and a cross-country combination in Kuwait and Bahrain. More deals are in the works.
As oil prices settle at a new normal that’s barely enough to balance the budget of Gulf Arab monarchies, governments are engineering ways to stay competitive, prompting an unprecedented consolidation wave. Abu Dhabi, home to 6 percent of global oil reserves, combined three of its investment firms to create a wealth fund with about $250 billion of assets, shortly after another mega-merger between two of its largest lenders.
Oil prices rise as U.S. imposes sanctions on Venezuela | Reuters
Oil prices rise as U.S. imposes sanctions on Venezuela | Reuters:
Oil prices rose on Tuesday after Washington imposed sanctions on state-owned Venezuelan oil company PDVSA in a move likely to curb the OPEC member’s crude exports, but gains were capped by abundant supply and signs of a slowing Chinese economy.
The upward momentum in the global benchmarks gathered pace in afternoon trading. International Brent crude oil futures were up $1.31 at $61.24 a barrel by 1438 GMT and on track for its biggest monthly rise since April 2016.
U.S. West Texas Intermediate (WTI) crude futures were up $1.32 at $53.31.
Oil prices rose on Tuesday after Washington imposed sanctions on state-owned Venezuelan oil company PDVSA in a move likely to curb the OPEC member’s crude exports, but gains were capped by abundant supply and signs of a slowing Chinese economy.
The upward momentum in the global benchmarks gathered pace in afternoon trading. International Brent crude oil futures were up $1.31 at $61.24 a barrel by 1438 GMT and on track for its biggest monthly rise since April 2016.
U.S. West Texas Intermediate (WTI) crude futures were up $1.32 at $53.31.
UPDATE 1- #Saudi NEOM set up as joint stock company run by state fund - SPA | Reuters
UPDATE 1-Saudi NEOM set up as joint stock company run by state fund - SPA | Reuters:
Saudi Arabia has set up a closed joint-stock company, called NEOM, that aims to develop a $500 billion economic zone and which will be owned by the government’s Public Investment Fund, the state news agency SPA reported on Tuesday.
NEOM is part of Crown Prince Mohammed bin Salman’s Vision 2030 plan that aims to attract foreign investment and create jobs in a bid to wean the kingdom off reliance on oil.
The new legal status of NEOM will enable the company to create 16 key economic areas, including energy, manufacturing and tourism, SPA said.
Saudi Arabia has set up a closed joint-stock company, called NEOM, that aims to develop a $500 billion economic zone and which will be owned by the government’s Public Investment Fund, the state news agency SPA reported on Tuesday.
NEOM is part of Crown Prince Mohammed bin Salman’s Vision 2030 plan that aims to attract foreign investment and create jobs in a bid to wean the kingdom off reliance on oil.
The new legal status of NEOM will enable the company to create 16 key economic areas, including energy, manufacturing and tourism, SPA said.
MIDEAST STOCKS-Banks pressure #Saudi, Global Telecom leads Egypt gains | Reuters
MIDEAST STOCKS-Banks pressure Saudi, Global Telecom leads Egypt gains | Reuters:
Saudi Arabia's stock market fell on Tuesday as most of its bank shares dropped while Egypt's blue-chip index gained, partly helped by Global Telecom on the prospect of it going private.
Market sentiment was also hurt by weak global markets, as prospects for a long-awaited Sino-U.S. trade deal were dealt another blow after the United States levelled sweeping criminal charges against China's telecom giant Huawei.
Saudi Arabia's index lost 0.5 percent with Al Rajhi Bank dropping 0.8 percent and Samba Financial Group shedding 1.6 percent.
Saudi Arabia's stock market fell on Tuesday as most of its bank shares dropped while Egypt's blue-chip index gained, partly helped by Global Telecom on the prospect of it going private.
Market sentiment was also hurt by weak global markets, as prospects for a long-awaited Sino-U.S. trade deal were dealt another blow after the United States levelled sweeping criminal charges against China's telecom giant Huawei.
Saudi Arabia's index lost 0.5 percent with Al Rajhi Bank dropping 0.8 percent and Samba Financial Group shedding 1.6 percent.
Abu Dhabi Three-Way Merger to Form $114 Billion U.A.E. Bank - Bloomberg
Abu Dhabi Three-Way Merger to Form $114 Billion U.A.E. Bank - Bloomberg:
Abu Dhabi Commercial Bank PJSC agreed to merge with Union National Bank PJSC and Al Hilal Bank to create the Gulf’s fifth-biggest lender with about $114 billion in assets.
ADCB offered 0.5966 share for every UNB share, according to a statement. The combined entity will buy privately-held Al Hilal Bank for about 1 billion dirhams ($272 million) by issuing a mandatory convertible note. The deal is expected to close in the first half.
The merger "makes a lot of strategic sense," said Richard Segal, a senior analyst at Manulife Asset Management in London. "The first-half closing timetable seems ambitious, unless some of the preliminary work has already been undertaken."
Abu Dhabi Commercial Bank PJSC agreed to merge with Union National Bank PJSC and Al Hilal Bank to create the Gulf’s fifth-biggest lender with about $114 billion in assets.
ADCB offered 0.5966 share for every UNB share, according to a statement. The combined entity will buy privately-held Al Hilal Bank for about 1 billion dirhams ($272 million) by issuing a mandatory convertible note. The deal is expected to close in the first half.
The merger "makes a lot of strategic sense," said Richard Segal, a senior analyst at Manulife Asset Management in London. "The first-half closing timetable seems ambitious, unless some of the preliminary work has already been undertaken."
Oil gains as U.S. imposes sanctions on Venezuela, global supplies weigh | Reuters
Oil gains as U.S. imposes sanctions on Venezuela, global supplies weigh | Reuters:
Oil prices rose on Tuesday after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the OPEC member’s crude exports, but price rises were capped by ample global supply and signs of a slowing Asian economy.
International Brent crude oil futures were up 61 cents at $60.54 per barrel by 0941 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 48 cents at $52.47 per barrel.
Oil prices rose on Tuesday after Washington imposed sanctions on Venezuelan state-owned oil firm PDVSA in a move that may curb the OPEC member’s crude exports, but price rises were capped by ample global supply and signs of a slowing Asian economy.
International Brent crude oil futures were up 61 cents at $60.54 per barrel by 0941 GMT.
U.S. West Texas Intermediate (WTI) crude futures were up 48 cents at $52.47 per barrel.
Three #AbuDhabi lenders agree to merge, creating a $114 billion bank | Reuters
Three Abu Dhabi lenders agree to merge, creating a $114 billion bank | Reuters:
Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank said on Tuesday the banks have agreed on a three-way merger, creating the third-largest bank in the United Arab Emirates.
Under the deal, ADCB will issue 0.5966 shares for every UNB share, corresponding to a total of 1.64 billion new shares issued to UNB shareholders. The exchange ratio implies a premium to UNB shareholders of 0.6 percent versus the closing price of the previous trading day, the statement said, valuing UNB at nearly $4 billion. Al Hilal Bank will operate as a separate Islamic entity within the merged bank.
The banks announced in September that they were in preliminary talks about a three-way merger, which will create a bank with assets of $114 billion.
Abu Dhabi Commercial Bank, Union National Bank and Al Hilal Bank said on Tuesday the banks have agreed on a three-way merger, creating the third-largest bank in the United Arab Emirates.
Under the deal, ADCB will issue 0.5966 shares for every UNB share, corresponding to a total of 1.64 billion new shares issued to UNB shareholders. The exchange ratio implies a premium to UNB shareholders of 0.6 percent versus the closing price of the previous trading day, the statement said, valuing UNB at nearly $4 billion. Al Hilal Bank will operate as a separate Islamic entity within the merged bank.
The banks announced in September that they were in preliminary talks about a three-way merger, which will create a bank with assets of $114 billion.
#UAE accuses #Qatar of banning its products, files WTO complaint | Reuters
UAE accuses Qatar of banning its products, files WTO complaint | Reuters:
The United Arab Emirates has filed a complaint against Qatar at the World Trade Organization saying Doha has imposed a ban on Emirati products, UAE state news agency WAM said on Tuesday.
The UAE, Saudi Arabia, Bahrain, and Egypt have imposed a diplomatic, trade and transport boycott of Qatar since June 2017 over allegations Doha supports terrorism, a charge Qatar denies.
Qatar filed in July 2017 a wide-ranging legal complaint at the WTO to challenge the trade boycott by the UAE, Saudi Arabia and Bahrain. The case is still ongoing.
The United Arab Emirates has filed a complaint against Qatar at the World Trade Organization saying Doha has imposed a ban on Emirati products, UAE state news agency WAM said on Tuesday.
The UAE, Saudi Arabia, Bahrain, and Egypt have imposed a diplomatic, trade and transport boycott of Qatar since June 2017 over allegations Doha supports terrorism, a charge Qatar denies.
Qatar filed in July 2017 a wide-ranging legal complaint at the WTO to challenge the trade boycott by the UAE, Saudi Arabia and Bahrain. The case is still ongoing.
Abu Dhabi Commercial Bank, UNB, Al Hilal Bank Agree to $114 Billion Merger - Bloomberg
Abu Dhabi Commercial Bank, UNB, Al Hilal Bank Agree to $114 Billion Merger - Bloomberg:
Abu Dhabi Commercial Bank, Union National Bank and privately-held Al Hilal Bank have agreed to a merger, Bloomberg News reports. The combination that will create the Gulf’s fifth-biggest lender with about $114 billion in assets.
Abu Dhabi Commercial Bank, Union National Bank and privately-held Al Hilal Bank have agreed to a merger, Bloomberg News reports. The combination that will create the Gulf’s fifth-biggest lender with about $114 billion in assets.
#Qatar seeks to muscle its way back on to diplomatic stage | Financial Times
Qatar seeks to muscle its way back on to diplomatic stage | Financial Times:
Qatar is seeking to reassert itself on the regional stage by wielding its financial clout and launching a flurry of diplomatic activity 18 months after it was rocked by a Saudi-led blockade intended to isolate the gas-rich state.
Exuding renewed confidence underpinned by petrodollars, Doha has this month welcomed two foreign leaders desperate for financial support, offered $500m to embattled Lebanon, and hosted talks between the Taliban and the US.
“They are starting to be punchy again,” said Neil Quilliam, a Gulf expert at Chatham House. “There will still be red lines about where they go, but they have weathered the storm [of the embargo] and they are certainly feeling confident.”
Qatar is seeking to reassert itself on the regional stage by wielding its financial clout and launching a flurry of diplomatic activity 18 months after it was rocked by a Saudi-led blockade intended to isolate the gas-rich state.
Exuding renewed confidence underpinned by petrodollars, Doha has this month welcomed two foreign leaders desperate for financial support, offered $500m to embattled Lebanon, and hosted talks between the Taliban and the US.
“They are starting to be punchy again,” said Neil Quilliam, a Gulf expert at Chatham House. “There will still be red lines about where they go, but they have weathered the storm [of the embargo] and they are certainly feeling confident.”
Saudi Stocks to Outperform Rest of Emerging Markets, Credit Suisse Says – Bloomberg
Saudi Stocks to Outperform Rest of Emerging Markets, Credit Suisse Says – Bloomberg:
Ahmed Badr, managing director at Credit Suisse Group AG in Dubai, talks about oil, Saudi Arabia's infrastructure projects, and the country's stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Ahmed Badr, managing director at Credit Suisse Group AG in Dubai, talks about oil, Saudi Arabia's infrastructure projects, and the country's stocks. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Time to Talk About Lebanese Debt Restructuring for Templeton - Bloomberg
Time to Talk About Lebanese Debt Restructuring for Templeton - Bloomberg:
Lebanon should consider a voluntary debt restructuring to avert a financial crisis despite pledges of aid from Gulf benefactors, according to Franklin Templeton Investments, which manages $650 billion in assets worldwide.
A debt overhaul needs to be part of a reform program backed by lenders such as the International Monetary Fund, said Mohieddine Kronfol, the firm’s chief investment officer for global sukuk and Middle East and North Africa fixed income. Even better if that’s accompanied by a change in leadership at the Finance Ministry and the central bank, he said in an interview in Dubai.
“My biggest worry is that the runway is getting shorter,” Kronfol said. “The medium-term challenges and the need to create fiscal space through a voluntary debt restructuring or re-profiling remain, as does a multi-lateral backstop to provide credibility for an inevitable structural reform agenda.”
Lebanon should consider a voluntary debt restructuring to avert a financial crisis despite pledges of aid from Gulf benefactors, according to Franklin Templeton Investments, which manages $650 billion in assets worldwide.
A debt overhaul needs to be part of a reform program backed by lenders such as the International Monetary Fund, said Mohieddine Kronfol, the firm’s chief investment officer for global sukuk and Middle East and North Africa fixed income. Even better if that’s accompanied by a change in leadership at the Finance Ministry and the central bank, he said in an interview in Dubai.
“My biggest worry is that the runway is getting shorter,” Kronfol said. “The medium-term challenges and the need to create fiscal space through a voluntary debt restructuring or re-profiling remain, as does a multi-lateral backstop to provide credibility for an inevitable structural reform agenda.”
Fixed income: MENA region bond issuance forecast at $80-85bln for 2019 - report | ZAWYA MENA Edition
Fixed income: MENA region bond issuance forecast at $80-85bln for 2019 - report | ZAWYA MENA Edition:
The amount of U.S, dollar-denominated bonds and sukuk issued in the Middle East and North Africa (MENA) is likely to reach $80-$85 billion in 2019 - similar to the $84 billion of issuance recorded last year, according to a new study, but there is potential for this figure to climb higher if Saudi Aramco embarks on its anticipated journey into debt capital markets with a maiden $10 billion bond issuance.
Speaking at the launch of a white paper on the MENA fixed income market, Parth Kikani, director of fixed income at Emirates NBD Asset Management, said that the $84 billion of hard currency issuance which took place last year was a decline on the $100 billion issued a year earlier, but the market still witnessed some "jumbo" issuances, including a $12 billion, multi-tranche issuance by the State of Qatar in April and an $11 billion, multi-tranche sovereign issuance by Saudi Arabia in the same month.
“Sovereign issuance has been the dominant factor in 2018. While there was so much issuance, the deals were well-covered - on an average 2-2.5 times oversubscribed,” Kikani said.
The amount of U.S, dollar-denominated bonds and sukuk issued in the Middle East and North Africa (MENA) is likely to reach $80-$85 billion in 2019 - similar to the $84 billion of issuance recorded last year, according to a new study, but there is potential for this figure to climb higher if Saudi Aramco embarks on its anticipated journey into debt capital markets with a maiden $10 billion bond issuance.
Speaking at the launch of a white paper on the MENA fixed income market, Parth Kikani, director of fixed income at Emirates NBD Asset Management, said that the $84 billion of hard currency issuance which took place last year was a decline on the $100 billion issued a year earlier, but the market still witnessed some "jumbo" issuances, including a $12 billion, multi-tranche issuance by the State of Qatar in April and an $11 billion, multi-tranche sovereign issuance by Saudi Arabia in the same month.
“Sovereign issuance has been the dominant factor in 2018. While there was so much issuance, the deals were well-covered - on an average 2-2.5 times oversubscribed,” Kikani said.
Aramco's rating ambitions face #Saudi economic curb | Reuters
Aramco's rating ambitions face Saudi economic curb | Reuters:
Saudi Aramco is pushing for a top credit rating ahead of its first international bond sale, but Saudi Arabia’s sluggish economy may curb the state-owned oil firm’s ambitions.
Aramco intends to issue its first U.S. dollar-denominated bonds, expected to be at least $10 billion, in the second quarter to help finance the acquisition of a stake in SABIC, the world’s fourth-largest petrochemicals maker.
Chief Executive Amin Nasser said last week that Aramco was talking to credit rating agencies ahead of its debut on the international capital markets, which comes after it last year pulled what would have been the biggest ever stock flotation.
Saudi Aramco is pushing for a top credit rating ahead of its first international bond sale, but Saudi Arabia’s sluggish economy may curb the state-owned oil firm’s ambitions.
Aramco intends to issue its first U.S. dollar-denominated bonds, expected to be at least $10 billion, in the second quarter to help finance the acquisition of a stake in SABIC, the world’s fourth-largest petrochemicals maker.
Chief Executive Amin Nasser said last week that Aramco was talking to credit rating agencies ahead of its debut on the international capital markets, which comes after it last year pulled what would have been the biggest ever stock flotation.
MIDEAST STOCKS-Banks pull #Saudi down, financials drag most Gulf markets | Reuters
MIDEAST STOCKS-Banks pull Saudi down, financials drag most Gulf markets | Reuters:
Saudi Arabia’s stock market fell on Tuesday weighed down by its banks, while all major Gulf bourses slipped, pressured by financial stocks as the markets took a breather after two days of gains.
Sentiment was also hurt by weak global markets, as prospects for a long-awaited Sino-U.S. trade deal were dealt another blow after the United States levelled sweeping criminal charges against China’s telecom giant Huawei.
Saudi Arabia’s index fell 0.5 percent with Al Rajhi Bank dropping 0.6 percent and Samba Financial Group slipping 1.6 percent. Al Khodari lost 0.4 percent after the Capital Market Authority said it would impose a fine of 40,000 riyals following its failure to disclose financial results within the specified time frame.
Saudi Arabia’s stock market fell on Tuesday weighed down by its banks, while all major Gulf bourses slipped, pressured by financial stocks as the markets took a breather after two days of gains.
Sentiment was also hurt by weak global markets, as prospects for a long-awaited Sino-U.S. trade deal were dealt another blow after the United States levelled sweeping criminal charges against China’s telecom giant Huawei.
Saudi Arabia’s index fell 0.5 percent with Al Rajhi Bank dropping 0.6 percent and Samba Financial Group slipping 1.6 percent. Al Khodari lost 0.4 percent after the Capital Market Authority said it would impose a fine of 40,000 riyals following its failure to disclose financial results within the specified time frame.
Monday, 28 January 2019
INTERVIEW: #SaudiArabia open for business, says SAGIA governor Ibrahim Al-Omar
INTERVIEW: Saudi Arabia open for business, says SAGIA governor Ibrahim Al-Omar:
Saudi Arabia is open for business, and wants the world to be involved in the multibillion-dollar transformation underway in the Kingdom as part of the Vision 2030 strategy.
That was the message from Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA), to leading decision-makers at the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, last week.
On the sidelines of the event, Al-Omar told Arab News that there had been “huge” interest from international investors to be partners in the strategy to diversify the economy away from oil dependency.
Saudi Arabia is open for business, and wants the world to be involved in the multibillion-dollar transformation underway in the Kingdom as part of the Vision 2030 strategy.
That was the message from Ibrahim Al-Omar, governor of the Saudi Arabian General Investment Authority (SAGIA), to leading decision-makers at the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, last week.
On the sidelines of the event, Al-Omar told Arab News that there had been “huge” interest from international investors to be partners in the strategy to diversify the economy away from oil dependency.
Doha Bank reports QR830m full-year net profit for 2018 - The Peninsula Qatar
Doha Bank reports QR830m full-year net profit for 2018 - The Peninsula Qatar:
Doha Bank, one of the leading conventional lenders in Qatar, reported a net profit of QR830m for the last financial year ended December 31, 2018, down by over 25 percent compared with QR1.11bn achieved for same period in 2017 after taking significant loan loss provision.
Sheikh Fahad bin Mohammad bin Jabor Al Thani, Chairman of the Board of Directors of Doha Bank, announced that the Board of Directors (BoD) in its meeting held yesterday approved the draft of the Bank’s audited financial statements for the year 2018.
At the same meeting, the Board decided to present a recommendation to the General Assembly to approve the distribution of cash dividends of QR1 per share to the shareholders.
Doha Bank, one of the leading conventional lenders in Qatar, reported a net profit of QR830m for the last financial year ended December 31, 2018, down by over 25 percent compared with QR1.11bn achieved for same period in 2017 after taking significant loan loss provision.
Sheikh Fahad bin Mohammad bin Jabor Al Thani, Chairman of the Board of Directors of Doha Bank, announced that the Board of Directors (BoD) in its meeting held yesterday approved the draft of the Bank’s audited financial statements for the year 2018.
At the same meeting, the Board decided to present a recommendation to the General Assembly to approve the distribution of cash dividends of QR1 per share to the shareholders.
QCB’s forex reserves rise 2.2% to $48.4bn in November: QNB
QCB’s forex reserves rise 2.2% to $48.4bn in November: QNB:
Qatar Central Bank’s foreign exchange reserves totalled $48.4bn in November, a 2.2% increase month-on-month, a new report by QNB has shown.
This, QNB said, equates to 8.7 months of import cover.
The country’s crude oil production marginally ticked down to 599,000 barrels per day (bpd) in November from 609,000bpd in October, QNB said in its latest ‘Qatar Monthly Monitor’.
Qatar Central Bank’s foreign exchange reserves totalled $48.4bn in November, a 2.2% increase month-on-month, a new report by QNB has shown.
This, QNB said, equates to 8.7 months of import cover.
The country’s crude oil production marginally ticked down to 599,000 barrels per day (bpd) in November from 609,000bpd in October, QNB said in its latest ‘Qatar Monthly Monitor’.
Doha Bank-sponsored QETF achieves return of 20% during 2018
Doha Bank-sponsored QETF achieves return of 20% during 2018:
Doha Bank-sponsored exchange traded fund, QETF, has achieved a total return of 20% during 2018, outperforming most ETFs in the world.
“This achievement is the culmination of untiring efforts of various parties who contributed to the QETF’s success in its first year of operations. This is a testament of the strength in the Qatari economy and market resilience, post the blockade,” Doha Bank Group chief executive Dr R Seetharaman said.
The QETF is a Qatari domiciled fund listed on the Qatar Stock Exchange and is one of the largest ETFs in the Gulf region. It is managed by Amwal.
Doha Bank-sponsored exchange traded fund, QETF, has achieved a total return of 20% during 2018, outperforming most ETFs in the world.
“This achievement is the culmination of untiring efforts of various parties who contributed to the QETF’s success in its first year of operations. This is a testament of the strength in the Qatari economy and market resilience, post the blockade,” Doha Bank Group chief executive Dr R Seetharaman said.
The QETF is a Qatari domiciled fund listed on the Qatar Stock Exchange and is one of the largest ETFs in the Gulf region. It is managed by Amwal.
Aramco Could Stagger Payments for Sabic Deal, Oil Minister Says - Bloomberg
Aramco Could Stagger Payments for Sabic Deal, Oil Minister Says - Bloomberg:
Saudi Aramco could stagger payments for the acquisition of chemical giant Sabic, offering flexibility in how to finance the largest deal in the kingdom’s history, energy minister Khalid Al-Falih said.
Aramco is close to agreeing on the purchase of a 70 percent stake in Sabic from the Public Investment Fund for as much as $70 billion. The state-run oil company carries almost no debt, but plans an unprecedented international bond issue in the second-quarter and has also asked banks to submit proposals for loans.
"We are negotiating with the PIF on what are the payment terms," Al-Falih, who’s also Aramco’s chairman, said in an interview in Riyadh on Monday. "If the payment terms are extended over a period of time that allows us to pay for a lot of it with self-generated cash."
Saudi Aramco could stagger payments for the acquisition of chemical giant Sabic, offering flexibility in how to finance the largest deal in the kingdom’s history, energy minister Khalid Al-Falih said.
Aramco is close to agreeing on the purchase of a 70 percent stake in Sabic from the Public Investment Fund for as much as $70 billion. The state-run oil company carries almost no debt, but plans an unprecedented international bond issue in the second-quarter and has also asked banks to submit proposals for loans.
"We are negotiating with the PIF on what are the payment terms," Al-Falih, who’s also Aramco’s chairman, said in an interview in Riyadh on Monday. "If the payment terms are extended over a period of time that allows us to pay for a lot of it with self-generated cash."
Oil Dips Most in a Month as China Slowdown Signals Demand Drop - Bloomberg
Oil Dips Most in a Month as China Slowdown Signals Demand Drop - Bloomberg:
Crude skidded to its worst loss in a month as disappointing corporate profit forecasts stoked concern about the economy, bruising a market already anxious about booming American oil supplies.
Futures dropped 3.2 percent in New York on Monday, joining a slide in equities after microchip-maker Nvidia Corp. and heavy-equipment giant Caterpillar Inc. warned of slowing growth in China and elsewhere. Saudi Arabia’s pledge to pump oil “well below” its self-imposed limit did little to mollify traders.
Oil has advanced 15 percent this year as the Organization of Petroleum Exporting Countries and allies curbed output to ease glut concerns. Nevertheless, price gains have been capped by record American output, expanding stockpiles and the U.S.-China trade war. Talks between the world’s two biggest economies later this week may provide the catalyst for crude to break through its recent narrow trading range.
Crude skidded to its worst loss in a month as disappointing corporate profit forecasts stoked concern about the economy, bruising a market already anxious about booming American oil supplies.
Futures dropped 3.2 percent in New York on Monday, joining a slide in equities after microchip-maker Nvidia Corp. and heavy-equipment giant Caterpillar Inc. warned of slowing growth in China and elsewhere. Saudi Arabia’s pledge to pump oil “well below” its self-imposed limit did little to mollify traders.
Oil has advanced 15 percent this year as the Organization of Petroleum Exporting Countries and allies curbed output to ease glut concerns. Nevertheless, price gains have been capped by record American output, expanding stockpiles and the U.S.-China trade war. Talks between the world’s two biggest economies later this week may provide the catalyst for crude to break through its recent narrow trading range.
In Dubai, Avalanche of New Homes Extends Stubborn Property Slump - Bloomberg
In #Dubai, Avalanche of New Homes Extends Stubborn Property Slump - Bloomberg:
Dubai’s homeowners will have to wait at least a couple more years for a long-running property slump to hit bottom as developers put a record number of new residences on the market this year.
About 31,500 homes will probably be completed this year, more than twice the city’s average annual demand over the last five years, according to Craig Plumb, head of Middle East research at broker Jones Lang Lasalle. That compares with the 22,000 homes finished in 2018.
The Dubai property market’s long decline since a peak in October 2014 has defied all predictions of a rebound over the last several years. While an oil price slump, fiscal austerity in Saudi Arabia and a strong dollar have driven away potential buyers, construction -- much of it by state controlled developers -- hasn’t slowed to meet the weaker demand.
Dubai’s homeowners will have to wait at least a couple more years for a long-running property slump to hit bottom as developers put a record number of new residences on the market this year.
About 31,500 homes will probably be completed this year, more than twice the city’s average annual demand over the last five years, according to Craig Plumb, head of Middle East research at broker Jones Lang Lasalle. That compares with the 22,000 homes finished in 2018.
The Dubai property market’s long decline since a peak in October 2014 has defied all predictions of a rebound over the last several years. While an oil price slump, fiscal austerity in Saudi Arabia and a strong dollar have driven away potential buyers, construction -- much of it by state controlled developers -- hasn’t slowed to meet the weaker demand.
Saudis Pledge Even Deeper Oil Cuts in February Under OPEC+ Deal - Bloomberg
Saudis Pledge Even Deeper Oil Cuts in February Under OPEC+ Deal - Bloomberg:
Saudi Arabia expects to reduce oil output once again in February and pump for six months at levels “well below” the production limit it accepted under OPEC’s oil-cuts accord, Energy Minister Khalid Al-Falih said.
The world’s biggest exporter targeted production of 10.2 million barrels a day in January and is aiming to pump about 10.1 million in February, he said. Saudi Arabia’s voluntary limit under the December cuts deal with Russia and other producers was 10.33 million barrels a day.
“Saudi Arabia will be well below the voluntary cap that we agreed to” and will pump beneath its ceiling “for the full six months” of the December cuts accord, he said in a Bloomberg Television interview in Riyadh.
Saudi Arabia expects to reduce oil output once again in February and pump for six months at levels “well below” the production limit it accepted under OPEC’s oil-cuts accord, Energy Minister Khalid Al-Falih said.
The world’s biggest exporter targeted production of 10.2 million barrels a day in January and is aiming to pump about 10.1 million in February, he said. Saudi Arabia’s voluntary limit under the December cuts deal with Russia and other producers was 10.33 million barrels a day.
“Saudi Arabia will be well below the voluntary cap that we agreed to” and will pump beneath its ceiling “for the full six months” of the December cuts accord, he said in a Bloomberg Television interview in Riyadh.
ADCB's chairman, CEO to fill top positions in new Abu Dhabi merged bank-sources | ZAWYA MENA Edition
ADCB's chairman, CEO to fill top positions in new Abu Dhabi merged bank-sources | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank's chairman and chief executive will fill the top positions within the company to be created after the merger with Union National Bank UNB.AD and Al Hilal Bank, three sources aware of the merger said.
ADCB is the largest bank within the three-way tie-up, which could form a bank with around $113 billion in assets and become the third largest lender in the United Arab Emirates after First Abu Dhabi Bank and Emirates NBD.
Eissa Mohamed al Suwaidi, chairman of ADCB, will take the same post at the new bank, with Ala'a Eraiqat, ADCB's chief executive, assuming the role of CEO, the sources said. Both have been in their current positions for roughly a decade.
Abu Dhabi Commercial Bank's chairman and chief executive will fill the top positions within the company to be created after the merger with Union National Bank UNB.AD and Al Hilal Bank, three sources aware of the merger said.
ADCB is the largest bank within the three-way tie-up, which could form a bank with around $113 billion in assets and become the third largest lender in the United Arab Emirates after First Abu Dhabi Bank and Emirates NBD.
Eissa Mohamed al Suwaidi, chairman of ADCB, will take the same post at the new bank, with Ala'a Eraiqat, ADCB's chief executive, assuming the role of CEO, the sources said. Both have been in their current positions for roughly a decade.
#Qatar International Islamic Bank's results roughly in line with its Islamic banking peers in Qatar, analyst says | ZAWYA MENA Edition
Qatar International Islamic Bank's results roughly in line with its Islamic banking peers in Qatar, analyst says | ZAWYA MENA Edition:
Qatar International Islamic Bank reported on Monday a 6 percent rise in net profit for 2018 and an 11.3 percent rise in fourth quarter earnings (Q4).
Net profit for the year 2018 amounted to 882.1 million Qatari riyals ($242.24 million), compared to 832.2 million Qatari riyals for 2017. Net profit for Q4 2018 was 147.01 million Qatari riyals, versus 132.09 million Qatari riyals in the same period a year earlier.
“QIIB (Qatar International Islamic Bank) delivered a result roughly in line with its Islamic banking peers in Qatar,” Akber Khan, senior director of asset management at Qatari-based Al Rayan Investment, told Zawya by email.
Qatar International Islamic Bank reported on Monday a 6 percent rise in net profit for 2018 and an 11.3 percent rise in fourth quarter earnings (Q4).
Net profit for the year 2018 amounted to 882.1 million Qatari riyals ($242.24 million), compared to 832.2 million Qatari riyals for 2017. Net profit for Q4 2018 was 147.01 million Qatari riyals, versus 132.09 million Qatari riyals in the same period a year earlier.
“QIIB (Qatar International Islamic Bank) delivered a result roughly in line with its Islamic banking peers in Qatar,” Akber Khan, senior director of asset management at Qatari-based Al Rayan Investment, told Zawya by email.
#Saudi signs $54.4 billion of deals, offers manufacturing incentives | Reuters
Saudi signs $54.4 billion of deals, offers manufacturing incentives | Reuters:
Saudi Arabia said on Monday it had signed agreements worth 204 billion riyals ($54.4 billion) and offered fresh incentives to attract capital as part of a 10-year program that would help diversify the economy of the world’s top oil exporter.
The kingdom is offering investment opportunities in mining, industry, logistics and energy through its National Industrial Development and Logistics Program (NIDLP).
That is part of an economic plan launched by Crown Prince Mohammed bin Salman in 2016 to end dependence on hydrocarbons and create jobs for young Saudis.
Saudi Arabia said on Monday it had signed agreements worth 204 billion riyals ($54.4 billion) and offered fresh incentives to attract capital as part of a 10-year program that would help diversify the economy of the world’s top oil exporter.
The kingdom is offering investment opportunities in mining, industry, logistics and energy through its National Industrial Development and Logistics Program (NIDLP).
That is part of an economic plan launched by Crown Prince Mohammed bin Salman in 2016 to end dependence on hydrocarbons and create jobs for young Saudis.
#SaudiArabia slashes exposure to Tesla via hedging deal | Financial Times
Saudi Arabia slashes exposure to Tesla via hedging deal | Financial Times:
Saudi Arabia has slashed its exposure to Tesla less than four months after the carmaker’s chief executive Elon Musk settled fraud charges over his claim the kingdom was ready to back a management buyout.
The Saudis’ Public Investment Fund hedged most of its 4.9 per cent stake in Tesla with the help of bankers at JPMorgan Chase after the market closed on January 17, according to four people with direct knowledge of the trade.
The arrangement means that, although it still holds the shares, the Saudi sovereign wealth fund is left with little exposure should the price fall. Its potential gains are also capped if the stock rises, freezing its $2.9bn bet on the company.
Saudi Arabia has slashed its exposure to Tesla less than four months after the carmaker’s chief executive Elon Musk settled fraud charges over his claim the kingdom was ready to back a management buyout.
The Saudis’ Public Investment Fund hedged most of its 4.9 per cent stake in Tesla with the help of bankers at JPMorgan Chase after the market closed on January 17, according to four people with direct knowledge of the trade.
The arrangement means that, although it still holds the shares, the Saudi sovereign wealth fund is left with little exposure should the price fall. Its potential gains are also capped if the stock rises, freezing its $2.9bn bet on the company.
MIDEAST STOCKS-Banks lift #Saudi, blue-chips elevate major Gulf markets | Reuters
MIDEAST STOCKS-Banks lift Saudi, blue-chips elevate major Gulf markets | Reuters:
Saudi Arabia's stock market rose sharply on Monday to a three- and-a-half year high boosted by blue-chip bank shares, while Dubai was buoyed by financials and real estate stocks.
Saudi Arabia's index rose 1.4 percent to its highest since Aug. 2015, with Al Rajhi Bank adding 2.2 percent and Riyad Bank increasing 4.2 percent.
Saudi exchange data released late on Sunday showed that foreigners were the net-buyers of 958.3 million riyals ($256 million) of stocks last week.
Saudi Arabia's stock market rose sharply on Monday to a three- and-a-half year high boosted by blue-chip bank shares, while Dubai was buoyed by financials and real estate stocks.
Saudi Arabia's index rose 1.4 percent to its highest since Aug. 2015, with Al Rajhi Bank adding 2.2 percent and Riyad Bank increasing 4.2 percent.
Saudi exchange data released late on Sunday showed that foreigners were the net-buyers of 958.3 million riyals ($256 million) of stocks last week.
#Qatar National Bank hires banks for U.S. dollar bond deal: sources | Reuters
Qatar National Bank hires banks for U.S. dollar bond deal: sources | Reuters:
Qatar National Bank, the largest bank by assets in the Middle East and Africa, is planning to issue shortly U.S. dollar-denominated bonds and has hired banks to arrange the debt sale, sources familiar with the matter said.
The planned bond issue would be QNB’s first public dollar bond transaction in over two years.
The lender has hired a group of banks including Barclays, Deutsche Bank, ING and Standard Chartered to arrange the transaction, said the sources.
Qatar National Bank, the largest bank by assets in the Middle East and Africa, is planning to issue shortly U.S. dollar-denominated bonds and has hired banks to arrange the debt sale, sources familiar with the matter said.
The planned bond issue would be QNB’s first public dollar bond transaction in over two years.
The lender has hired a group of banks including Barclays, Deutsche Bank, ING and Standard Chartered to arrange the transaction, said the sources.
Deutsche Bank Gets Qatari Commitment For More Funds - Bloomberg
Deutsche Bank Gets Qatari Commitment For More Funds - Bloomberg:
Deutsche Bank AG won a commitment for new investment from Qatar as the troubled German lender moves toward a potential merger with Commerzbank AG.
The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, according to people familiar with the matter, who asked not to be identified because the talks are private. Two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake in Deutsche Bank.
Germany is backing a Deutsche Bank merger with Commerzbank to ensure the country has a strong domestic lender to help fund the country’s export-oriented economy even during a crisis. While it’s viewed by some as an imperfect solution that forces two weakened entities together, a combination may allow Qatar to recover part of its investment in Deutsche Bank after the stock last more than half its value last year. A big domestic bank may also appeal to Qatar because of its plans to boost investment in the German economy.
Deutsche Bank AG won a commitment for new investment from Qatar as the troubled German lender moves toward a potential merger with Commerzbank AG.
The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, according to people familiar with the matter, who asked not to be identified because the talks are private. Two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake in Deutsche Bank.
Germany is backing a Deutsche Bank merger with Commerzbank to ensure the country has a strong domestic lender to help fund the country’s export-oriented economy even during a crisis. While it’s viewed by some as an imperfect solution that forces two weakened entities together, a combination may allow Qatar to recover part of its investment in Deutsche Bank after the stock last more than half its value last year. A big domestic bank may also appeal to Qatar because of its plans to boost investment in the German economy.
Oil Snaps 3-Day Rally as U.S. Rigs Climb for First Time in 2019 - Bloomberg
Oil Snaps 3-Day Rally as U.S. Rigs Climb for First Time in 2019 - Bloomberg:
Oil fell to near $53 a barrel as America’s rig count rose for the first time this year, signaling further increases in the nation’s crude production, while Venezuela’s rival leaders jockeyed for control of the military.
Futures in New York dropped as much as 1.6 percent after climbing 2.1 percent over the previous three sessions. The number of rigs targeting oil rose by 10 to 862, data from oilfield-services provider Baker Hughes showed, as this year’s rising crude prices buoyed optimism. Venezuela abandoned its decision to sever diplomatic ties with the U.S., while President Nicolas Maduro and National Assembly leader Juan Guaido sought the backing of the country’s armed forces.
Oil has advanced 17 percent in 2019 as the Organization of Petroleum Exporting Countries and its allies began cutting production to ease concerns over a supply glut, although record U.S. production, rising stockpiles and the trade war are capping gains. A deepening crisis in Venezuela had a small upward impact on prices last week, and the prospect of U.S. sanctions on the nation is also threatening to make it more challenging for OPEC to manage markets.
Oil fell to near $53 a barrel as America’s rig count rose for the first time this year, signaling further increases in the nation’s crude production, while Venezuela’s rival leaders jockeyed for control of the military.
Futures in New York dropped as much as 1.6 percent after climbing 2.1 percent over the previous three sessions. The number of rigs targeting oil rose by 10 to 862, data from oilfield-services provider Baker Hughes showed, as this year’s rising crude prices buoyed optimism. Venezuela abandoned its decision to sever diplomatic ties with the U.S., while President Nicolas Maduro and National Assembly leader Juan Guaido sought the backing of the country’s armed forces.
Oil has advanced 17 percent in 2019 as the Organization of Petroleum Exporting Countries and its allies began cutting production to ease concerns over a supply glut, although record U.S. production, rising stockpiles and the trade war are capping gains. A deepening crisis in Venezuela had a small upward impact on prices last week, and the prospect of U.S. sanctions on the nation is also threatening to make it more challenging for OPEC to manage markets.
Aramco's $1.6 Billion Korea Deal Deepens Asian Refining Ties - Bloomberg
Aramco's $1.6 Billion Korea Deal Deepens Asian Refining Ties - Bloomberg:
Saudi Arabian Oil Co. is taking a nearly 20 percent stake in South Korean oil refiner Hyundai Oilbank Co. for $1.6 billion, tightening the grip of the world’s top crude exporter on the biggest oil consuming region.
The Saudi state-owned giant, known as Aramco, is seeking to firm up its customer base and market share in Asia as it moves toward a partial listing in what could be the biggest-ever initial public offering.
The Hyundai Oilbank purchase announced Monday would be the latest in Aramco’s refining asset spree across the region in recent years, eyeing stakes in plants in China, India, Indonesia, Malaysia and Pakistan. Aramco has also taken equity positions in whole refining companies, such as its 15 percent share in Japan’s Showa Shell Sekiyu KK or its 63 percent of the common stock in South Korea’s S-Oil Corp.
Saudi Arabian Oil Co. is taking a nearly 20 percent stake in South Korean oil refiner Hyundai Oilbank Co. for $1.6 billion, tightening the grip of the world’s top crude exporter on the biggest oil consuming region.
The Saudi state-owned giant, known as Aramco, is seeking to firm up its customer base and market share in Asia as it moves toward a partial listing in what could be the biggest-ever initial public offering.
The Hyundai Oilbank purchase announced Monday would be the latest in Aramco’s refining asset spree across the region in recent years, eyeing stakes in plants in China, India, Indonesia, Malaysia and Pakistan. Aramco has also taken equity positions in whole refining companies, such as its 15 percent share in Japan’s Showa Shell Sekiyu KK or its 63 percent of the common stock in South Korea’s S-Oil Corp.
#SaudiArabia put on EU blacklist for money laundering failures | Financial Times
Saudi Arabia put on EU blacklist for money laundering failures | Financial Times:
Brussels will name Saudi Arabia on a blacklist of countries and jurisdictions that are failing in the fight against money laundering and terrorist financing, a move that will require European banks to carry out intrusive vetting of customers from the Gulf state.
EU officials said the European Commission was in the final stages of adopting the 23-country list, which is likely to be politically contentious and will accuse governments of “strategic deficiencies” in their efforts to combat dirty money.
Also on the list is the US Virgin Islands, American Samoa, Libya and Panama, although Russia is not listed despite revelations last year of billions in criminal funds being transferred from the country through EU banks. EU officials said Russia was being kept under review.
Brussels will name Saudi Arabia on a blacklist of countries and jurisdictions that are failing in the fight against money laundering and terrorist financing, a move that will require European banks to carry out intrusive vetting of customers from the Gulf state.
EU officials said the European Commission was in the final stages of adopting the 23-country list, which is likely to be politically contentious and will accuse governments of “strategic deficiencies” in their efforts to combat dirty money.
Also on the list is the US Virgin Islands, American Samoa, Libya and Panama, although Russia is not listed despite revelations last year of billions in criminal funds being transferred from the country through EU banks. EU officials said Russia was being kept under review.
Ailing Jet Air Seeks Investor Approval to Swap Debt for Shares - Bloomberg
Ailing Jet Air Seeks Investor Approval to Swap Debt for Shares - Bloomberg:
Jet Airways India Ltd. is seeking the approval of shareholders to convert loans into equity as the ailing carrier saddled with $1.1 billion of debt negotiates a rescue deal with its lenders and partner Etihad Airways PJSC.
India’s biggest full-service carrier has called an extraordinary general meeting on Feb. 21 in Mumbai, during which it will also seek consent for lenders to appoint company directors and boost its capital, according to a filing Monday. The airline, 24 percent owned by Etihad, didn’t say whether the three sides have reached an agreement over the terms of the rescue.
Jet Airways, Etihad and lenders have been in talks for weeks to work out a revival plan, although no commonly agreed proposal was presented to the government, a ministry official said Jan. 25 in New Delhi. The Mumbai-based carrier has struggled with low fares in an increasingly competitive market, losing money in all but two of the past 11 years.
Jet Airways India Ltd. is seeking the approval of shareholders to convert loans into equity as the ailing carrier saddled with $1.1 billion of debt negotiates a rescue deal with its lenders and partner Etihad Airways PJSC.
India’s biggest full-service carrier has called an extraordinary general meeting on Feb. 21 in Mumbai, during which it will also seek consent for lenders to appoint company directors and boost its capital, according to a filing Monday. The airline, 24 percent owned by Etihad, didn’t say whether the three sides have reached an agreement over the terms of the rescue.
Jet Airways, Etihad and lenders have been in talks for weeks to work out a revival plan, although no commonly agreed proposal was presented to the government, a ministry official said Jan. 25 in New Delhi. The Mumbai-based carrier has struggled with low fares in an increasingly competitive market, losing money in all but two of the past 11 years.
INTERVIEW: #UAE-based solar developer raises $65mln from global investors, eyes larger funding by 2020 - CEO | ZAWYA MENA Edition
INTERVIEW: UAE-based solar developer raises $65mln from global investors, eyes larger funding by 2020 - CEO | ZAWYA MENA Edition:
Dubai-based Yellow Door Energy (YDE), a provider of solar energy solutions in the Middle East and Africa, has raised $65 million from international investors in Series A funding, its chief executive said.
“We have five global investors that are funding this equity in Yellow Door Energy,” Jeremy Crane, CEO and co-founder of Yellow Door Energy (YDE), told Zawya in a telephone interview.
“This amount is going to provide the growth capital that we need to expand our operations in the Middle East, Africa, and South Asia,” he said adding that the firm, which is a developer of solar projecs, aims to build 300 megawatts of solar installations in the next two years.
Dubai-based Yellow Door Energy (YDE), a provider of solar energy solutions in the Middle East and Africa, has raised $65 million from international investors in Series A funding, its chief executive said.
“We have five global investors that are funding this equity in Yellow Door Energy,” Jeremy Crane, CEO and co-founder of Yellow Door Energy (YDE), told Zawya in a telephone interview.
“This amount is going to provide the growth capital that we need to expand our operations in the Middle East, Africa, and South Asia,” he said adding that the firm, which is a developer of solar projecs, aims to build 300 megawatts of solar installations in the next two years.
#Dubai airport handles 89.1 million passengers in 2018, misses target | Reuters
Dubai airport handles 89.1 million passengers in 2018, misses target | Reuters:
Dubai International Airport handled 89.1 million passengers in 2018, missing its target but remaining the world’s busiest for international travelers.
Passenger traffic rose one percent last year, operator Dubai Airports said on Monday, its weakest annual growth rate in at least a decade and short of its 90.3 million target.
Dubai airport, the hub for airlines Emirates and flydubai, saw growth slow throughout 2018 after 15 years of strong increases. Among other factors, the Gulf’s economic slowdown because of low oil prices has dented the region’s travel industry.
Dubai International Airport handled 89.1 million passengers in 2018, missing its target but remaining the world’s busiest for international travelers.
Passenger traffic rose one percent last year, operator Dubai Airports said on Monday, its weakest annual growth rate in at least a decade and short of its 90.3 million target.
Dubai airport, the hub for airlines Emirates and flydubai, saw growth slow throughout 2018 after 15 years of strong increases. Among other factors, the Gulf’s economic slowdown because of low oil prices has dented the region’s travel industry.
#Qatar energy minister says plans to order 60 new LNG carriers: South Korea | Reuters
Qatar energy minister says plans to order 60 new LNG carriers: South Korea | Reuters:
South Korea’s presidential office said on Monday that Qatar’s energy minister outlined plans during a bilateral summit for Doha to order 60 new liquefied natural gas (LNG) carriers.
The energy minister, Saad Sherida Al-Kaabi, who also serves as deputy chairman of Qatar Petroleum, said he expects cooperation with experienced Korean shipbuilders on constructing the LNG carriers, according to a statement issued by South Korea’s presidential office. Financial details of the plan weren’t disclosed.
Speaking during a luncheon after the summit, the chief executive of South Korea’s Daewoo Shipbuilding & Marine Engineering Co said most of the LNG carriers owned by Qatar were built by Korea’s top three shipbuilders.
South Korea’s presidential office said on Monday that Qatar’s energy minister outlined plans during a bilateral summit for Doha to order 60 new liquefied natural gas (LNG) carriers.
The energy minister, Saad Sherida Al-Kaabi, who also serves as deputy chairman of Qatar Petroleum, said he expects cooperation with experienced Korean shipbuilders on constructing the LNG carriers, according to a statement issued by South Korea’s presidential office. Financial details of the plan weren’t disclosed.
Speaking during a luncheon after the summit, the chief executive of South Korea’s Daewoo Shipbuilding & Marine Engineering Co said most of the LNG carriers owned by Qatar were built by Korea’s top three shipbuilders.
#SaudiArabia to build metal smelter with Trafigura worth $2.8 billion: statement | Reuters
Saudi Arabia to build metal smelter with Trafigura worth $2.8 billion: statement | Reuters:
Saudi Arabia signed an agreement to build a metal smelter with global commodities trader Trafigura worth $2.8 billion, according to a statement reviewed by Reuters on Monday.
The project with Trafigura Singapore will be the first copper smelter in a GCC country and it aims to produce 400,000 tons of copper, 200,000 tons of zinc, and 55,000 tons of lead annually.
Saudi Arabia signed an agreement to build a metal smelter with global commodities trader Trafigura worth $2.8 billion, according to a statement reviewed by Reuters on Monday.
The project with Trafigura Singapore will be the first copper smelter in a GCC country and it aims to produce 400,000 tons of copper, 200,000 tons of zinc, and 55,000 tons of lead annually.
#Saudi government to spend 100 billion riyals on industry plan | Reuters
Saudi government to spend 100 billion riyals on industry plan | Reuters:
The Saudi Arabian government will spend 100 billion riyals ($27 billion) in 2019 and 2020 as part of its industrial development program, Aabed Abdullah al-Saadoun, deputy minister of Energy, Industry and Mineral Resources said on Monday.
The program is offering investment opportunities in mining, industry, logistics and energy sectors inside the kingdom, according to a document distributed to participants at an investment conference the deputy minister was addressing in Riyadh.
The program is offering investors the opportunity to invest in projects such as plants that manufacture rubber, catalysts and vehicles, it said.
The Saudi Arabian government will spend 100 billion riyals ($27 billion) in 2019 and 2020 as part of its industrial development program, Aabed Abdullah al-Saadoun, deputy minister of Energy, Industry and Mineral Resources said on Monday.
The program is offering investment opportunities in mining, industry, logistics and energy sectors inside the kingdom, according to a document distributed to participants at an investment conference the deputy minister was addressing in Riyadh.
The program is offering investors the opportunity to invest in projects such as plants that manufacture rubber, catalysts and vehicles, it said.
MIDEAST STOCKS-Banks Propel #Saudi, most Gulf markets up | Reuters
MIDEAST STOCKS-Banks Propel Saudi, most Gulf markets up | Reuters:
Saudi Arabia’s stock market rose on Monday aided by rising bank shares, while Dubai was lifted as most of its real estate stocks rebounded.
The Saudi Arabia index was up 0.6 percent with Al Rajhi Bank adding 1.2 percent and the country’s largest lender, National Commercial Bank (NCB), gaining 0.8 percent. NCB had last week reported a 3.5 percent increase in its fourth-quarter net profit.
Saudi exchange data released late Sunday showed that foreigners were the net-buyers of 958.3 million riyals ($256 million) of stocks last week.
Saudi Arabia’s stock market rose on Monday aided by rising bank shares, while Dubai was lifted as most of its real estate stocks rebounded.
The Saudi Arabia index was up 0.6 percent with Al Rajhi Bank adding 1.2 percent and the country’s largest lender, National Commercial Bank (NCB), gaining 0.8 percent. NCB had last week reported a 3.5 percent increase in its fourth-quarter net profit.
Saudi exchange data released late Sunday showed that foreigners were the net-buyers of 958.3 million riyals ($256 million) of stocks last week.
Sunday, 27 January 2019
UNB, ADCB surge ahead of possible merger
UNB, ADCB surge ahead of possible merger:
The Abu Dhabi story has been a far cry from that of its regional peers, but only selectively.
Most of the banks such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Union National Bank have surged multi-folds ahead of a possible merger, resulting in out performance of the Abu Dhabi index.
Abu Dhabi Commercial Bank has gained 24 per cent to its highest level in 52 weeks of Dh9.15 from a low of Dh7.41 seen on October 23. Union National Bank shares have gained 23 per cent since December 2018. FAB has been trading in a range of near to its near all-time high of Dh15.15. FAB had gained 46 per cent in the last 13 months since the merger news was announced. The ADX index has gained 18 per cent in the past 13 months, while the Dubai index has been on declining trend, shedding 25 per cent in the same time period.
The Abu Dhabi story has been a far cry from that of its regional peers, but only selectively.
Most of the banks such as First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Union National Bank have surged multi-folds ahead of a possible merger, resulting in out performance of the Abu Dhabi index.
Abu Dhabi Commercial Bank has gained 24 per cent to its highest level in 52 weeks of Dh9.15 from a low of Dh7.41 seen on October 23. Union National Bank shares have gained 23 per cent since December 2018. FAB has been trading in a range of near to its near all-time high of Dh15.15. FAB had gained 46 per cent in the last 13 months since the merger news was announced. The ADX index has gained 18 per cent in the past 13 months, while the Dubai index has been on declining trend, shedding 25 per cent in the same time period.
#UAE cabinet to allow trading companies to issue IPOs
UAE cabinet to allow trading companies to issue IPOs:
The UAE Cabinet on Sunday adopted an amendment to the country’s Commercial Agencies Law, which would allow trade agencies to convert into public shareholding companies.
Trade agencies are a popular method of doing business in the country, created when a UAE entity, typically a family-owned business, entered into an agreement with international agents or distributors.
The change in the law would allow trading agencies to raise fund from local stock markets.
The UAE Cabinet on Sunday adopted an amendment to the country’s Commercial Agencies Law, which would allow trade agencies to convert into public shareholding companies.
Trade agencies are a popular method of doing business in the country, created when a UAE entity, typically a family-owned business, entered into an agreement with international agents or distributors.
The change in the law would allow trading agencies to raise fund from local stock markets.
INTERVIEW: Amin Nasser, #Saudi Aramco’s Davos man, spells out blueprint for IPO
INTERVIEW: Amin Nasser, Saudi Aramco’s Davos man, spells out blueprint for IPO:
Amin Nasser, the president and CEO of Saudi Aramco, had a busy few days at last week’s World Economic Forum (WEF) annual meeting in Davos.
“We had about six hours at the International Business Council, three hours at the oil and gas community, two hours on the climate change initiative — and then about 40 bilateral meetings. In Davos, you make every minute count,” he said.
Nasser was speaking in a private meeting salon at the Hotel Grischa near the main railway station of the Swiss Alpine town. He had a plane to catch, but spent some of his precious remaining minutes at Davos speaking to Arab News — about the Fourth Industrial Revolution, technology, the environment, carbon emissions and sustainability.
Amin Nasser, the president and CEO of Saudi Aramco, had a busy few days at last week’s World Economic Forum (WEF) annual meeting in Davos.
“We had about six hours at the International Business Council, three hours at the oil and gas community, two hours on the climate change initiative — and then about 40 bilateral meetings. In Davos, you make every minute count,” he said.
Nasser was speaking in a private meeting salon at the Hotel Grischa near the main railway station of the Swiss Alpine town. He had a plane to catch, but spent some of his precious remaining minutes at Davos speaking to Arab News — about the Fourth Industrial Revolution, technology, the environment, carbon emissions and sustainability.
CI affirms #Qatar’s foreign and local currency issuer ratings; upgrades outlook to 'stable'
CI affirms Qatar’s foreign and local currency issuer ratings; upgrades outlook to 'stable':
Capital Intelligence (CI), the international credit rating agency, has affirmed Qatar’s long-term foreign and local currency issuer ratings at ‘AA-’ and short-term foreign and local currency ratings at ‘A1+’, while upgrading the outlook on them to "stable" from "negative".
The ratings and "stable" outlook reflect substantial improvements in the budget and current account balances in 2018, as well as CI’s expectation that the country’s fiscal and external positions will remain relatively stable in the coming years.
Qatar’s ratings continue to be primarily supported by very large hydrocarbon reserves and substantial government assets under the management of Qatar Investment Authority, the sovereign wealth fund.
Capital Intelligence (CI), the international credit rating agency, has affirmed Qatar’s long-term foreign and local currency issuer ratings at ‘AA-’ and short-term foreign and local currency ratings at ‘A1+’, while upgrading the outlook on them to "stable" from "negative".
The ratings and "stable" outlook reflect substantial improvements in the budget and current account balances in 2018, as well as CI’s expectation that the country’s fiscal and external positions will remain relatively stable in the coming years.
Qatar’s ratings continue to be primarily supported by very large hydrocarbon reserves and substantial government assets under the management of Qatar Investment Authority, the sovereign wealth fund.
Europe Set to Announce #Iran Funding Vehicle, Defying Trump - Bloomberg
Europe Set to Announce Iran Funding Vehicle, Defying Trump - Bloomberg:
Three key European Union nations are set to make good on a pledge to help their companies trade with Iran despite U.S. sanctions, a move that could help to salvage a nuclear deal with the Islamic Republic but may have more political symbolism than economic impact.
The announcement of the so-called special purpose vehicle could come as soon as Monday, two diplomats familiar with the matter said, asking not to be identified as last-minute negotiations on the wording of the EU statement continued. The mechanism is key to the EU’s effort to keep Iran from quitting the 2015 accord to constrain its nuclear activities in exchange for sanctions relief. The U.S. pulled out of the deal in May and has since reimposed sanctions.
A draft EU statement seen by Bloomberg welcomes the initiative by U.K, France and Germany as providing “a positive impact on trade and economic relations with Iran, but most importantly on the lives of Iranian people.” The statement is going to be discussed by EU government envoys in Brussels on Monday morning and may be released soon after, if all 28 member states approve.
Three key European Union nations are set to make good on a pledge to help their companies trade with Iran despite U.S. sanctions, a move that could help to salvage a nuclear deal with the Islamic Republic but may have more political symbolism than economic impact.
The announcement of the so-called special purpose vehicle could come as soon as Monday, two diplomats familiar with the matter said, asking not to be identified as last-minute negotiations on the wording of the EU statement continued. The mechanism is key to the EU’s effort to keep Iran from quitting the 2015 accord to constrain its nuclear activities in exchange for sanctions relief. The U.S. pulled out of the deal in May and has since reimposed sanctions.
A draft EU statement seen by Bloomberg welcomes the initiative by U.K, France and Germany as providing “a positive impact on trade and economic relations with Iran, but most importantly on the lives of Iranian people.” The statement is going to be discussed by EU government envoys in Brussels on Monday morning and may be released soon after, if all 28 member states approve.
#Saudi-Ethiopian tycoon Amoudi freed from detention | Reuters
Saudi-Ethiopian tycoon Amoudi freed from detention | Reuters:
Saudi-Ethiopian businessman Mohammed Hussein al-Amoudi, arrested more than 14 months ago in a crackdown on corruption, has been released from detention in Saudi Arabia, two Saudi sources and Ethiopian state television said on Sunday.
“He was released today and is heading to Jeddah,” one of the sources told Reuters.
Ethiopian Television cited Arega Yirdaw, chief executive of Al Amoudi’s MIDROC Technology Group, as its source.
Saudi-Ethiopian businessman Mohammed Hussein al-Amoudi, arrested more than 14 months ago in a crackdown on corruption, has been released from detention in Saudi Arabia, two Saudi sources and Ethiopian state television said on Sunday.
“He was released today and is heading to Jeddah,” one of the sources told Reuters.
Ethiopian Television cited Arega Yirdaw, chief executive of Al Amoudi’s MIDROC Technology Group, as its source.
MIDEAST STOCKS-Egypt's EGX30 index rises, most Gulf markets firm | Reuters
MIDEAST STOCKS-Egypt's EGX30 index rises, most Gulf markets firm | Reuters:
Gulf markets closed mainly higher on Sunday thanks to strong financials, while Egypt's blue-chip index rose sharply, helping it catch up with gains in other emerging markets.
"Egypt is finally catching up with the risk-off trade emerging markets are witnessing," said Mohammed al-Hajj, senior macro strategy analyst at EFG Hermes, noting that the index was up around 6 percent year-to-date compared with around 7 percent for other emerging markets.
"There are also local drivers for the move such as the continuation of positive macro figures and falling T-bill yields," he added.
Gulf markets closed mainly higher on Sunday thanks to strong financials, while Egypt's blue-chip index rose sharply, helping it catch up with gains in other emerging markets.
"Egypt is finally catching up with the risk-off trade emerging markets are witnessing," said Mohammed al-Hajj, senior macro strategy analyst at EFG Hermes, noting that the index was up around 6 percent year-to-date compared with around 7 percent for other emerging markets.
"There are also local drivers for the move such as the continuation of positive macro figures and falling T-bill yields," he added.
#Dubai Commodity Centre DMCC's CEO Sashittal replaced by Bin Sulayem- statement | ZAWYA MENA Edition
Dubai Commodity Centre DMCC's CEO Sashittal replaced by Bin Sulayem- statement | ZAWYA MENA Edition:
The Dubai Multi Commodities Centre (DMCC) said on Sunday Gautam Sashittal is stepping down from his role as chief executive officer and was replaced by Ahmed Bin Sulayem.
Bin Sulayem will combine the position with his Executive Chairman role, the DMCC said in a statement, adding that Sashittal will leave in April.
The DMCC was established by the government in 2002 to provide the infrastructure required to establish a global commodities trade hub.
The Dubai Multi Commodities Centre (DMCC) said on Sunday Gautam Sashittal is stepping down from his role as chief executive officer and was replaced by Ahmed Bin Sulayem.
Bin Sulayem will combine the position with his Executive Chairman role, the DMCC said in a statement, adding that Sashittal will leave in April.
The DMCC was established by the government in 2002 to provide the infrastructure required to establish a global commodities trade hub.
ADNOC seals $5.8bln refining and trading deal with ENI, OMV | ZAWYA MENA Edition
ADNOC seals $5.8bln refining and trading deal with ENI, OMV | ZAWYA MENA Edition:
Italy's Eni and Austria's OMV have agreed to pay a combined $5.8 billion to take a stake in Abu Dhabi National Oil Company's (ADNOC) refining business and establish a new trading operation owned by the three partners.
The transaction, which expands ADNOC's access to European markets, furthers Eni's diversification away from Africa and gives OMV a downstream oil business outside Europe. It was hailed as a "one of a kind" deal by ADNOC's Chief Executive Sultan al-Jaber.
"The whole oil and gas industry hasn't seen a transaction of this size and sophistication," he said.
Italy's Eni and Austria's OMV have agreed to pay a combined $5.8 billion to take a stake in Abu Dhabi National Oil Company's (ADNOC) refining business and establish a new trading operation owned by the three partners.
The transaction, which expands ADNOC's access to European markets, furthers Eni's diversification away from Africa and gives OMV a downstream oil business outside Europe. It was hailed as a "one of a kind" deal by ADNOC's Chief Executive Sultan al-Jaber.
"The whole oil and gas industry hasn't seen a transaction of this size and sophistication," he said.
SABIC says challenges remain, views Aramco deal positively | Reuters
SABIC says challenges remain, views Aramco deal positively | Reuters:
Saudi Basic Industries Corp (SABIC) expects to face challenges this year due to uncertainty over the impact of a global trade war on the United States and China, its major markets, the company’s chief executive said on Sunday.
However, the world’s fourth-biggest petrochemicals company said it has the ability to deal with such challenges and started to see stabilization in prices of some products after a steep decline toward the end of 2018.
SABIC reported a 12.4 percent drop in fourth-quarter profit compared to the year earlier period, missing analyst forecasts. The company attributed the fall to lower average selling prices and a decrease in the share of results of associates.
Saudi Basic Industries Corp (SABIC) expects to face challenges this year due to uncertainty over the impact of a global trade war on the United States and China, its major markets, the company’s chief executive said on Sunday.
However, the world’s fourth-biggest petrochemicals company said it has the ability to deal with such challenges and started to see stabilization in prices of some products after a steep decline toward the end of 2018.
SABIC reported a 12.4 percent drop in fourth-quarter profit compared to the year earlier period, missing analyst forecasts. The company attributed the fall to lower average selling prices and a decrease in the share of results of associates.
REFILE- #Saudi SABIC misses forecasts with 12.4 pct profit drop | Reuters
REFILE-Saudi SABIC misses forecasts with 12.4 pct profit drop | Reuters:
Saudi Basic Industries Corp (SABIC) posted a 12.4 percent profit drop in the fourth quarter from a year earlier, citing lower average selling prices and a decrease in the share of results of associates.
SABIC made a net profit of 3.24 billion riyals ($864 million) in the three months to Dec. 31, down from 3.7 billion riyals in the year-earlier period, the company said in a bourse statement.
That was lower than the average forecasts of three analysts polled by Refinitiv, who expected SABIC to make a net profit of 4.92 billion riyals.
Saudi Basic Industries Corp (SABIC) posted a 12.4 percent profit drop in the fourth quarter from a year earlier, citing lower average selling prices and a decrease in the share of results of associates.
SABIC made a net profit of 3.24 billion riyals ($864 million) in the three months to Dec. 31, down from 3.7 billion riyals in the year-earlier period, the company said in a bourse statement.
That was lower than the average forecasts of three analysts polled by Refinitiv, who expected SABIC to make a net profit of 4.92 billion riyals.
#Saudi unemployment at 12.8 pct in Q3 2018 | Reuters
Saudi unemployment at 12.8 pct in Q3 2018 | Reuters:
Unemployment among Saudi Arabian citizens eased marginally to 12.8 percent in the third quarter of 2018, official figures released on Sunday showed.
The jobless rate first hit 12.9 percent, the highest level recorded by the statistics agency in data going back to 1999, in the first quarter of 2018 as private employers were hit by a new sales tax and a domestic fuel price hike.
Unemployment among Saudi Arabian citizens eased marginally to 12.8 percent in the third quarter of 2018, official figures released on Sunday showed.
The jobless rate first hit 12.9 percent, the highest level recorded by the statistics agency in data going back to 1999, in the first quarter of 2018 as private employers were hit by a new sales tax and a domestic fuel price hike.
MIDEAST STOCKS-SABIC weighs on #Saudi, most major Gulf markets mixed | Reuters
MIDEAST STOCKS-SABIC weighs on Saudi, most major Gulf markets mixed | Reuters:
Saudi Arabia’s stock index was little changed at Sunday’s open, with Saudi Basic Industries Corp (SABIC) weighing on the market.
SABIC was down 0.7 percent after reporting a drop in fourth-quarter net profit to 3.24 billion riyals ($863.88 million)versus 3.7 billion riyals a year ago.
The company attributed the fall to lower average selling prices and a decrease in the share of the results of associates and joint ventures.
Saudi Arabia’s stock index was little changed at Sunday’s open, with Saudi Basic Industries Corp (SABIC) weighing on the market.
SABIC was down 0.7 percent after reporting a drop in fourth-quarter net profit to 3.24 billion riyals ($863.88 million)versus 3.7 billion riyals a year ago.
The company attributed the fall to lower average selling prices and a decrease in the share of the results of associates and joint ventures.
Saturday, 26 January 2019
#Saudi Crown Prince to Launch $425 Billion Infrastructure Plan - Bloomberg
Saudi Crown Prince to Launch $425 Billion Infrastructure Plan - Bloomberg:
Saudi Arabia is seeking 1.6 trillion riyals ($425 billion) in investment by 2030 for infrastructure as well as energy, mining and other industrial projects, as part of an effort to cut its reliance on oil, Energy Minister Khalid Al-Falih said Saturday in Riyadh.
Crown Prince Mohammed bin Salman, who is behind reforms known as Vision 2030, will present details of the infrastructure plan on Monday. The kingdom could sign about 70 deals worth more than 200 billion riyals at the same time.
Saudi Arabia is among nations in the Middle East working to diversify government income away from oil sales and build new industries. The kingdom will focus on chemicals, power and natural gas businesses in its industry plan, Al-Falih said.
Saudi Arabia is seeking 1.6 trillion riyals ($425 billion) in investment by 2030 for infrastructure as well as energy, mining and other industrial projects, as part of an effort to cut its reliance on oil, Energy Minister Khalid Al-Falih said Saturday in Riyadh.
Crown Prince Mohammed bin Salman, who is behind reforms known as Vision 2030, will present details of the infrastructure plan on Monday. The kingdom could sign about 70 deals worth more than 200 billion riyals at the same time.
Saudi Arabia is among nations in the Middle East working to diversify government income away from oil sales and build new industries. The kingdom will focus on chemicals, power and natural gas businesses in its industry plan, Al-Falih said.
Deutsche Bank Gets #Qatari Commitment For More Funds - Bloomberg
Deutsche Bank Gets Qatari Commitment For More Funds - Bloomberg:
Deutsche Bank AG has secured a commitment for additional investment from Qatar as the bank seeks to bolster its finances, according to people with knowledge of the matter.
The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, the people said, asking not to be identified because the talks are private. Two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake in the troubled German lender.
While the discussions are at an advanced stage, no final agreement has been reached, said the people. The timing and the size of the investment aren’t clear.
Deutsche Bank AG has secured a commitment for additional investment from Qatar as the bank seeks to bolster its finances, according to people with knowledge of the matter.
The investment is likely to be made through the Qatar Investment Authority, the country’s sovereign wealth fund, the people said, asking not to be identified because the talks are private. Two other Qatari investment vehicles, controlled by members of the royal family and other prominent politicians, already own a stake in the troubled German lender.
While the discussions are at an advanced stage, no final agreement has been reached, said the people. The timing and the size of the investment aren’t clear.
Etihad hires turnaround expert Alvarez & Marsal as it weighs Jet Airways bailout | ZAWYA MENA Edition
Etihad hires turnaround expert Alvarez & Marsal as it weighs Jet Airways bailout | ZAWYA MENA Edition:
Etihad Airways has appointed turnaround specialist Alvarez & Marsal to conduct due diligence on Jet Airways Ltd as it weighs bailing out the cash-strapped Indian carrier, three sources familiar with the matter told Reuters.
Executives from Alvarez & Marsal are camped in Jet Airways’ offices in Mumbai and are taking stock of the airline’s operations and looking into its financial health and records, one of the sources said.
The Abu Dhabi-based carrier plans to raise its stake in Jet Airways from the current 24 percent but it wants the airline’s founder and chairman Naresh Goyal to give up control, sources have told Reuters.
Etihad Airways has appointed turnaround specialist Alvarez & Marsal to conduct due diligence on Jet Airways Ltd as it weighs bailing out the cash-strapped Indian carrier, three sources familiar with the matter told Reuters.
Executives from Alvarez & Marsal are camped in Jet Airways’ offices in Mumbai and are taking stock of the airline’s operations and looking into its financial health and records, one of the sources said.
The Abu Dhabi-based carrier plans to raise its stake in Jet Airways from the current 24 percent but it wants the airline’s founder and chairman Naresh Goyal to give up control, sources have told Reuters.
#Saudi Tadawul to be ready for IPO by end-2020 – Chairperson | ZAWYA MENA Edition
Saudi Tadawul to be ready for IPO by end-2020 – Chairperson | ZAWYA MENA Edition:
Saudi Arabia’s plan to list the Saudi Stock Exchange (Tadawul) for initial public offering (IPO) is not cancelled, regardless of the entry of foreign investors, Tadawul’s chairperson said.
Tadawul still awaits the completion of the listing procedures, Sarah Al Suhaimi added on the sidelines of the World Economic Forum (WEF) in Davos on Thursday. Al Suhaimi expected the completion of these procedures by the end of 2020 in order to take a decision regarding the IPO when it is ready.
Saudi Arabia’s plan to list the Saudi Stock Exchange (Tadawul) for initial public offering (IPO) is not cancelled, regardless of the entry of foreign investors, Tadawul’s chairperson said.
Tadawul still awaits the completion of the listing procedures, Sarah Al Suhaimi added on the sidelines of the World Economic Forum (WEF) in Davos on Thursday. Al Suhaimi expected the completion of these procedures by the end of 2020 in order to take a decision regarding the IPO when it is ready.
Friday, 25 January 2019
Oil Rises as U.S. Shutdown Ends While Venezuela Tensions Mount - Bloomberg
Oil Rises as U.S. Shutdown Ends While Venezuela Tensions Mount - Bloomberg:
Oil closed higher for the third day in a row as a deal to reopen the U.S. government eased investor fears while political turmoil in Venezuela roiled one of the world’s biggest suppliers of heavy crude.
Futures in New York rose 1.1 percent, gaining steam on reports President Donald Trump agreed to a three-week pause in the government shutdown to pursue border-security talks with Democrats. In Caracas, President Nicolas Maduro and Juan Guaido, the opposition leader, gave dueling speeches while the United Nations Security Council prepared to meet tomorrow on the crisis.
“There’s some optimism now that the government shutdown, at least temporarily, may be behind us," said Brian Kessens, who helps manage $16 billion in energy assets at Tortoise in Leawood, Kansas. “That’s got markets feeling a little bit better."
Oil closed higher for the third day in a row as a deal to reopen the U.S. government eased investor fears while political turmoil in Venezuela roiled one of the world’s biggest suppliers of heavy crude.
Futures in New York rose 1.1 percent, gaining steam on reports President Donald Trump agreed to a three-week pause in the government shutdown to pursue border-security talks with Democrats. In Caracas, President Nicolas Maduro and Juan Guaido, the opposition leader, gave dueling speeches while the United Nations Security Council prepared to meet tomorrow on the crisis.
“There’s some optimism now that the government shutdown, at least temporarily, may be behind us," said Brian Kessens, who helps manage $16 billion in energy assets at Tortoise in Leawood, Kansas. “That’s got markets feeling a little bit better."
Russia's Novatek says sees LNG from U.S. as its chief threat- Ifx | Reuters
Russia's Novatek says sees LNG from U.S. as its chief threat- Ifx | Reuters:
Leonid Mikhelson, the head of Russia’s Novatek said on Friday that liquefied natural gas (LNG) from the United States as its chief threat, Interfax news agency reported.
He said, according to Interfax, that LNG production in the U.S. enjoys cheap financing, while LNG production in Russia has a competitive edge thanks to its low production costs.
Qatar is the world’s biggest LNG producer.
Leonid Mikhelson, the head of Russia’s Novatek said on Friday that liquefied natural gas (LNG) from the United States as its chief threat, Interfax news agency reported.
He said, according to Interfax, that LNG production in the U.S. enjoys cheap financing, while LNG production in Russia has a competitive edge thanks to its low production costs.
Qatar is the world’s biggest LNG producer.
RPT-EU adds #SaudiArabia to draft terrorism financing list - sources | Reuters
RPT-EU adds Saudi Arabia to draft terrorism financing list - sources | Reuters:
The European Commission has added Saudi Arabia to an EU draft list of countries that pose a threat to the bloc because of lax controls against terrorism financing and money laundering, two sources told Reuters on Friday.
The move comes amid heightened international pressure on Saudi Arabia after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate on Oct. 2.
The EU’s list currently consists of 16 countries, including Iran, Iraq, Syria, Afghanistan, Yemen and North Korea, and is mostly based on criteria used by the Financial Action Task Force (FATF), a global body composed by wealthy nations meant to combat money laundering and terrorism financing.
The European Commission has added Saudi Arabia to an EU draft list of countries that pose a threat to the bloc because of lax controls against terrorism financing and money laundering, two sources told Reuters on Friday.
The move comes amid heightened international pressure on Saudi Arabia after the murder of Saudi journalist Jamal Khashoggi in the kingdom’s Istanbul consulate on Oct. 2.
The EU’s list currently consists of 16 countries, including Iran, Iraq, Syria, Afghanistan, Yemen and North Korea, and is mostly based on criteria used by the Financial Action Task Force (FATF), a global body composed by wealthy nations meant to combat money laundering and terrorism financing.
#Saudi, #UAE Loans to Help Pakistan Avert Financial Crisis - Bloomberg
Saudi, U.A.E. Loans to Help Pakistan Avert Financial Crisis - Bloomberg:
Pakistan received $1 billion from Saudi Arabia Friday, a day after the United Arab Emirates deposited the first installment of a $3 billion financial support package aimed at helping the South Asian nation tide over a balance-of-payment crisis.
The U.A.E. transferred $1 billion as part of an agreement between Pakistan and the Abu Dhabi Fund for Development this month, the central bank said in a statement on Twitter Thursday. The total transfers so far from the U.A.E and Saudi Arabia stand at $4 billion, and will boost Pakistan’s reserves that had fallen to $6.64 billion, or less than two months of import cover, in the week ended Jan. 18. Riyadh also has pledged to supply oil worth $3 billion on deferred payments.
“It’s a short-term relief,” Mohammed Sohail, chief executive officer at Topline Securities Pakistan Ltd., said in Karachi. Pakistan will need more funding as the nation’s external account gap next fiscal year will again swell to as much as $20 billion, he said.
Pakistan received $1 billion from Saudi Arabia Friday, a day after the United Arab Emirates deposited the first installment of a $3 billion financial support package aimed at helping the South Asian nation tide over a balance-of-payment crisis.
The U.A.E. transferred $1 billion as part of an agreement between Pakistan and the Abu Dhabi Fund for Development this month, the central bank said in a statement on Twitter Thursday. The total transfers so far from the U.A.E and Saudi Arabia stand at $4 billion, and will boost Pakistan’s reserves that had fallen to $6.64 billion, or less than two months of import cover, in the week ended Jan. 18. Riyadh also has pledged to supply oil worth $3 billion on deferred payments.
“It’s a short-term relief,” Mohammed Sohail, chief executive officer at Topline Securities Pakistan Ltd., said in Karachi. Pakistan will need more funding as the nation’s external account gap next fiscal year will again swell to as much as $20 billion, he said.
Thursday, 24 January 2019
#Dubai index records a last gasp recovery to end volatile week
Dubai index records a last gasp recovery to end volatile week:
Emaar Properties weighed on investor sentiments for the most part of Thursday on the Dubai index, until the final hour of trade, when the gauge saw a sharp recovery. The Dubai Financial Market general index closed 0.10 per cent lower at 2,514.36, recovering from a low of 2,501.20.
The developer closed 0.48 per cent lower at Dh4.11, after hitting a low of Dh3.85. Its other unit, Emaar Development, closed 1.32 per cent lower at Dh3.75, while Emaar Malls was steady at Dh1.57. “Investors have not shied away from displaying their concerns as selling resumes on Emaar Malls, Emaar’s retail arm, which despite superior results and multiple calls to “buy” maintains a downtrend,” Issam Kassabieh, Senior Financial Analyst at Menacorp said.
Emaar Properties has been one of the worst performing stocks with shares losing nearly 40 per cent of its value. Among other stocks, Dubai Islamic Bank closed 0.39 per cent higher at Dh5.14, while DP World closed more than 2 per cent lower at $16.09. Aramex was nearly 1 per cent lower at Dh4.05. Banks again came to the rescue on the Abu Dhabi index, which closed 0.97 per cent higher at 5,019.16.
Emaar Properties weighed on investor sentiments for the most part of Thursday on the Dubai index, until the final hour of trade, when the gauge saw a sharp recovery. The Dubai Financial Market general index closed 0.10 per cent lower at 2,514.36, recovering from a low of 2,501.20.
The developer closed 0.48 per cent lower at Dh4.11, after hitting a low of Dh3.85. Its other unit, Emaar Development, closed 1.32 per cent lower at Dh3.75, while Emaar Malls was steady at Dh1.57. “Investors have not shied away from displaying their concerns as selling resumes on Emaar Malls, Emaar’s retail arm, which despite superior results and multiple calls to “buy” maintains a downtrend,” Issam Kassabieh, Senior Financial Analyst at Menacorp said.
Emaar Properties has been one of the worst performing stocks with shares losing nearly 40 per cent of its value. Among other stocks, Dubai Islamic Bank closed 0.39 per cent higher at Dh5.14, while DP World closed more than 2 per cent lower at $16.09. Aramex was nearly 1 per cent lower at Dh4.05. Banks again came to the rescue on the Abu Dhabi index, which closed 0.97 per cent higher at 5,019.16.
Private sector must ‘step up’ for Saudi Vision 2030 goals, says Crescent’s Badr Jafar
Private sector must ‘step up’ for Saudi Vision 2030 goals, says Crescent’s Badr Jafar:
One of the Arabian Gulf’s leading businessmen believes the private sector in Saudi Arabia must play a greater role in the Vision 2030 strategy to diversify the nation’s economy and reduce its dependency on oil revenue.
“The private sector in Saudi Arabia has to step up and take authentic ownership of the Saudi Vision 2030,” said Badr Jafar, president of Crescent Petroleum, the Sharjah-based international conglomerate with interests in shipping, ports, energy and several other industrial sectors.
Speaking to Arab News on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, he added: “When people think of a country in the Middle East region, they tend to think of just its government but I like to think of the whole ecosystem, both public and private sector. I believe the private sector has to play a bigger part in both Saudi Arabia and the UAE.”
One of the Arabian Gulf’s leading businessmen believes the private sector in Saudi Arabia must play a greater role in the Vision 2030 strategy to diversify the nation’s economy and reduce its dependency on oil revenue.
“The private sector in Saudi Arabia has to step up and take authentic ownership of the Saudi Vision 2030,” said Badr Jafar, president of Crescent Petroleum, the Sharjah-based international conglomerate with interests in shipping, ports, energy and several other industrial sectors.
Speaking to Arab News on the sidelines of the World Economic Forum (WEF) Annual Meeting in Davos, he added: “When people think of a country in the Middle East region, they tend to think of just its government but I like to think of the whole ecosystem, both public and private sector. I believe the private sector has to play a bigger part in both Saudi Arabia and the UAE.”
QSE index closes at 10,712.39 points - The Peninsula Qatar
QSE index closes at 10,712.39 points - The Peninsula Qatar:
Qatar Stock Exchange’s (QSE) benchmark index lost 75.36 points, or 0.70 percent, last week when the bourse closed yesterday at 10,712.39 points.
Trading value during last week decreased by 20.58 percent to reach QR1.15bn compared to QR1.45bn.
Trading volume decreased by 20.64 percent to reach 39.06 million shares, as against 49.22 million shares, while the number of transactions fell by 24.07 percent, to reach 25,624 transactions as compared to 33,745 transactions.
Qatar Stock Exchange’s (QSE) benchmark index lost 75.36 points, or 0.70 percent, last week when the bourse closed yesterday at 10,712.39 points.
Trading value during last week decreased by 20.58 percent to reach QR1.15bn compared to QR1.45bn.
Trading volume decreased by 20.64 percent to reach 39.06 million shares, as against 49.22 million shares, while the number of transactions fell by 24.07 percent, to reach 25,624 transactions as compared to 33,745 transactions.
EU Says Preparations for #Iran SPV Are at `Advanced Stage' - Bloomberg
EU Says Preparations for Iran SPV Are at `Advanced Stage' - Bloomberg:
The European Commission said it’s seeking to launch “very soon” a special purpose vehicle to help European companies bypass U.S. sanctions on Iran, with three European diplomats saying the official unveiling could come as early as Monday.
Progress has been slow in developing the SPV, a key element of the European Union’s effort to keep Iran from quitting the Joint Comprehensive Plan of Action, the 2015 accord to constrain the nation’s nuclear activities in exchange for sanctions relief. The U.S. pulled out of the deal in May and has since reimposed sanctions.
The EU, led by France, Germany and the U.K., has struggled to find a government willing to host the vehicle, which risks drawing criticism from the American administration. Still, EU foreign policy chief Federica Mogherini had said in December that the SPV would be established by the start of 2019.
The European Commission said it’s seeking to launch “very soon” a special purpose vehicle to help European companies bypass U.S. sanctions on Iran, with three European diplomats saying the official unveiling could come as early as Monday.
Progress has been slow in developing the SPV, a key element of the European Union’s effort to keep Iran from quitting the Joint Comprehensive Plan of Action, the 2015 accord to constrain the nation’s nuclear activities in exchange for sanctions relief. The U.S. pulled out of the deal in May and has since reimposed sanctions.
The EU, led by France, Germany and the U.K., has struggled to find a government willing to host the vehicle, which risks drawing criticism from the American administration. Still, EU foreign policy chief Federica Mogherini had said in December that the SPV would be established by the start of 2019.
Wall Street Embraces #Saudi Bid for Rehabilitation at Davos - Bloomberg
Wall Street Embraces Saudi Bid for Rehabilitation at Davos - Bloomberg:
As Davos delegates walk to their meetings, they’re overlooked by the largest billboard in town. The message mixes confidence and defiance -- "Invest Saudi: The Future-Forward Economy."
Only three months ago, the global elite largely shunned Saudi Arabia’s own version of Davos after the murder of Jamal Khashoggi. Now, Riyadh is using the real thing to attempt a reconciliation with the business world, making nice in the Swiss mountain resort’s universal language: money. Plans for economic reform, big capital market deals and global investments mean A-list bankers and executives are inclined to listen.
At an event where success is often measured by who’s seen at a reception or speaks on a panel, the Saudis aren’t getting the cold shoulder any more. James Gorman, the head of Morgan Stanley, spoke on Thursday in a debate alongside two Saudi ministers. And the likes of Jamie Dimon of JPMorgan Chase & Co. and John Flint of HSBC Holdings Plc attended the annual Davos party thrown by Saudi oil giant Aramco, according to a person present.
As Davos delegates walk to their meetings, they’re overlooked by the largest billboard in town. The message mixes confidence and defiance -- "Invest Saudi: The Future-Forward Economy."
Only three months ago, the global elite largely shunned Saudi Arabia’s own version of Davos after the murder of Jamal Khashoggi. Now, Riyadh is using the real thing to attempt a reconciliation with the business world, making nice in the Swiss mountain resort’s universal language: money. Plans for economic reform, big capital market deals and global investments mean A-list bankers and executives are inclined to listen.
At an event where success is often measured by who’s seen at a reception or speaks on a panel, the Saudis aren’t getting the cold shoulder any more. James Gorman, the head of Morgan Stanley, spoke on Thursday in a debate alongside two Saudi ministers. And the likes of Jamie Dimon of JPMorgan Chase & Co. and John Flint of HSBC Holdings Plc attended the annual Davos party thrown by Saudi oil giant Aramco, according to a person present.
Kuwait Finance Said to Offer 35% Premium in $8 Billion Deal - Bloomberg
Kuwait Finance Said to Offer 35% Premium in $8 Billion Deal - Bloomberg:
Kuwait Finance House is considering offering a premium of about 35 percent to buy Bahrain’s Ahli United Bank BSC in a share swap deal that could create the Gulf’s sixth-biggest lender with $92 billion of assets, according to people familiar with the matter.
The Kuwaiti lender may offer one share for every 2.1 in Ahli United Bank, the people said, asking not to be identified because the matter is private. That would value the deal at about $8 billion, according Bloomberg calculations.
The premium is based on the companies’ closing share prices on Wednesday. Ahli United Bank has advanced about 11 percent since the banks started talks in July, while Kuwait Finance House has gained around 0.5 percent. The Bahraini bank may not accept the offer and the final terms of the deal could change, the people said.
Kuwait Finance House is considering offering a premium of about 35 percent to buy Bahrain’s Ahli United Bank BSC in a share swap deal that could create the Gulf’s sixth-biggest lender with $92 billion of assets, according to people familiar with the matter.
The Kuwaiti lender may offer one share for every 2.1 in Ahli United Bank, the people said, asking not to be identified because the matter is private. That would value the deal at about $8 billion, according Bloomberg calculations.
The premium is based on the companies’ closing share prices on Wednesday. Ahli United Bank has advanced about 11 percent since the banks started talks in July, while Kuwait Finance House has gained around 0.5 percent. The Bahraini bank may not accept the offer and the final terms of the deal could change, the people said.
Oil edges higher on Venezuela turmoil, but weighed by U.S. crude stock build | Reuters
Oil edges higher on Venezuela turmoil, but weighed by U.S. crude stock build | Reuters:
Oil prices rose on Thursday, boosted by the U.S. threat of sanctions on OPEC member Venezuela, but gains were limited by U.S. data showing record high gasoline inventories and an unexpected big build in crude.
Brent crude futures rose 14 cents to $61.28 a barrel by 12:12 p.m. EST (1712 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 62 cents to $53.24 a barrel.
Washington signaled it could impose sanctions on Venezuela’s crude exports as Caracas descends further into political and economic turmoil. The threat to reduce supplies supported futures prices.
Oil prices rose on Thursday, boosted by the U.S. threat of sanctions on OPEC member Venezuela, but gains were limited by U.S. data showing record high gasoline inventories and an unexpected big build in crude.
Brent crude futures rose 14 cents to $61.28 a barrel by 12:12 p.m. EST (1712 GMT). U.S. West Texas Intermediate (WTI) crude futures rose 62 cents to $53.24 a barrel.
Washington signaled it could impose sanctions on Venezuela’s crude exports as Caracas descends further into political and economic turmoil. The threat to reduce supplies supported futures prices.
#Qatar banks weigh U.S. dollar bond issuance from Q1 onwards -sources | Reuters
Qatar banks weigh U.S. dollar bond issuance from Q1 onwards -sources | Reuters:
Qatar banks are expected to issue U.S. dollar bonds from this quarter onwards, hoping to take advantage of any easing in global volatility casued by geopolitical tensions, three sources familiar with the matter said.
Qatar National Bank, the largest bank by assets in the Middle East and Africa, and Qatar Islamic Bank have all held talks with banks about potential issues during the first quarter, the sources said.
In an emailed statement Commercial Bank said: “We have a U.S. dollar bond maturing in Q2 2019 (June 2019) and plan to do a replacement issuance around the maturity date of this bond.”
Qatar banks are expected to issue U.S. dollar bonds from this quarter onwards, hoping to take advantage of any easing in global volatility casued by geopolitical tensions, three sources familiar with the matter said.
Qatar National Bank, the largest bank by assets in the Middle East and Africa, and Qatar Islamic Bank have all held talks with banks about potential issues during the first quarter, the sources said.
In an emailed statement Commercial Bank said: “We have a U.S. dollar bond maturing in Q2 2019 (June 2019) and plan to do a replacement issuance around the maturity date of this bond.”
Bakr bin Laden temporarily released from #Saudi detention: sources | Reuters
Bakr bin Laden temporarily released from Saudi detention: sources | Reuters:
Bakr bin Laden, former chairman of construction giant Saudi Binladin Group, has been temporarily released nearly 15 months after his arrest in Saudi Arabia’s anti-corruption campaign, three sources with knowledge of the matter said on Thursday.
The sources said he was taken from Riyadh’s Ha’ir prison on Wednesday and then flown to the western city of Jeddah to attend a close relative’s funeral. He is expected to return to detention but the sources said they did not know when.
“He is out, but we’re not sure if it’s for good or not,” said one of the sources, who all requested anonymity.
Bakr bin Laden, former chairman of construction giant Saudi Binladin Group, has been temporarily released nearly 15 months after his arrest in Saudi Arabia’s anti-corruption campaign, three sources with knowledge of the matter said on Thursday.
The sources said he was taken from Riyadh’s Ha’ir prison on Wednesday and then flown to the western city of Jeddah to attend a close relative’s funeral. He is expected to return to detention but the sources said they did not know when.
“He is out, but we’re not sure if it’s for good or not,” said one of the sources, who all requested anonymity.
Oil prices in 2019? It's all about the economy: Kemp | Reuters
Oil prices in 2019? It's all about the economy: Kemp | Reuters:
Oil prices this year will be influenced primarily by the health of the global economy, which is why prices have closely tracked equity and bond markets in recent months.
U.S. shale production growth, the policy of OPEC and its allies, U.S. sanctions on Iran, and the threat of sanctions on Venezuela may all have an impact on the price of a barrel.
But that impact will be secondary and it is more likely to be crude prices that determine what happens with U.S. shale, OPEC+ policy and U.S. sanctions (tmsnrt.rs/2TbHKnA).
Oil prices this year will be influenced primarily by the health of the global economy, which is why prices have closely tracked equity and bond markets in recent months.
U.S. shale production growth, the policy of OPEC and its allies, U.S. sanctions on Iran, and the threat of sanctions on Venezuela may all have an impact on the price of a barrel.
But that impact will be secondary and it is more likely to be crude prices that determine what happens with U.S. shale, OPEC+ policy and U.S. sanctions (tmsnrt.rs/2TbHKnA).
'Under siege', oil industry mulls raising returns and PR game | Reuters
'Under siege', oil industry mulls raising returns and PR game | Reuters:
When the global oil industry held its biggest annual gathering this week in the Swiss town of Davos, it invited banking bosses and fund managers to discuss two key topics - climate change and pressure from investors.
The conclusion of the discussions was worrying for those present - pressure is rising and the industry is losing a battle not to be seen as one of the world’s biggest evils.
The answer? Lure investors with higher returns and raise the PR game.
When the global oil industry held its biggest annual gathering this week in the Swiss town of Davos, it invited banking bosses and fund managers to discuss two key topics - climate change and pressure from investors.
The conclusion of the discussions was worrying for those present - pressure is rising and the industry is losing a battle not to be seen as one of the world’s biggest evils.
The answer? Lure investors with higher returns and raise the PR game.
MIDEAST STOCKS-ADCB merger update lifts #AbuDhabi, most Gulf markets up | Reuters
MIDEAST STOCKS-ADCB merger update lifts Abu Dhabi, most Gulf markets up | Reuters:
Abu Dhabi's stock market rose sharply on Thursday, lifted by financials and Abu Dhabi Commercial Bank's update on a three-way bank merger, while Saudi Arabia edged down as its petrochemical firms slid.
The Abu Dhabi index was up one percent, partially lifted by a 5.3 percent hike in Abu Dhabi Commercial bank (ADCB), which enjoyed a four-year high, and a 2.4 percent gain by Union National Bank.
ADCB said its board will meet next week to discuss the potential merger between the firm, Union National Bank and Al Hilal Bank.
Abu Dhabi's stock market rose sharply on Thursday, lifted by financials and Abu Dhabi Commercial Bank's update on a three-way bank merger, while Saudi Arabia edged down as its petrochemical firms slid.
The Abu Dhabi index was up one percent, partially lifted by a 5.3 percent hike in Abu Dhabi Commercial bank (ADCB), which enjoyed a four-year high, and a 2.4 percent gain by Union National Bank.
ADCB said its board will meet next week to discuss the potential merger between the firm, Union National Bank and Al Hilal Bank.
The Big Oil Agencies’ Verdict on OPEC+ Pact: Glut Averted - Bloomberg
The Big Oil Agencies’ Verdict on OPEC+ Pact: Glut Averted - Bloomberg:
Oil producing states in OPEC and beyond are going to prevent a buildup of global crude inventories in the first half of this year—assuming they can resist the temptation to cheat on a December pact to restrict supplies.
That’s the main takeaway from supply-and-demand studies of the oil industry’s most-watched organizations: the International Energy Agency, the U.S. Energy Information Administration, and the Organization of Petroleum Exporting Countries. This story will monitor and compare the evolution of the three agencies’ key market interpretations on an on-going basis.
The main agencies' implied supply-demand estimates for the first half of 2019 are set out in the chart below. Output curtailments in December — before OPEC and allied producers embarked on a fresh plan to curb production starting this month—already slashed the implied surplus in the first half of this year to about 750,000 barrels a day (the green columns).
Oil producing states in OPEC and beyond are going to prevent a buildup of global crude inventories in the first half of this year—assuming they can resist the temptation to cheat on a December pact to restrict supplies.
That’s the main takeaway from supply-and-demand studies of the oil industry’s most-watched organizations: the International Energy Agency, the U.S. Energy Information Administration, and the Organization of Petroleum Exporting Countries. This story will monitor and compare the evolution of the three agencies’ key market interpretations on an on-going basis.
The main agencies' implied supply-demand estimates for the first half of 2019 are set out in the chart below. Output curtailments in December — before OPEC and allied producers embarked on a fresh plan to curb production starting this month—already slashed the implied surplus in the first half of this year to about 750,000 barrels a day (the green columns).
Kuwait Finance Said to Offer 35% Premium in $8 Billion Deal - Bloomberg
Kuwait Finance Said to Offer 35% Premium in $8 Billion Deal - Bloomberg:
Kuwait Finance House is considering offering a premium of about 35 percent to buy Bahrain’s Ahli United Bank BSC in a share swap deal that could create the Gulf’s sixth-biggest lender with $92 billion of assets, according to people familiar with the matter.
The Kuwaiti lender may offer one share for every 2.1 in Ahli United Bank, the people said, asking not to be identified because the matter is private. That would value the deal at about $8 billion, according Bloomberg calculations.
The premium is based on the companies’ closing share prices on Wednesday. Ahli United Bank has advanced about 11 percent since the banks started talks in July, while Kuwait Finance House has gained around 0.5 percent. The Bahraini bank may not accept the offer and the final terms of the deal could change, the people said.
Kuwait Finance House is considering offering a premium of about 35 percent to buy Bahrain’s Ahli United Bank BSC in a share swap deal that could create the Gulf’s sixth-biggest lender with $92 billion of assets, according to people familiar with the matter.
The Kuwaiti lender may offer one share for every 2.1 in Ahli United Bank, the people said, asking not to be identified because the matter is private. That would value the deal at about $8 billion, according Bloomberg calculations.
The premium is based on the companies’ closing share prices on Wednesday. Ahli United Bank has advanced about 11 percent since the banks started talks in July, while Kuwait Finance House has gained around 0.5 percent. The Bahraini bank may not accept the offer and the final terms of the deal could change, the people said.
These #Dubai Stocks Are Seen Slumping Deeper Amid MSCI Review - Bloomberg
These Dubai Stocks Are Seen Slumping Deeper Amid MSCI Review - Bloomberg:
Three of Dubai’s biggest real-estate and development companies are at risk of being removed from one of the world’s most popular emerging-market benchmarks this year as a slowing economy drags down the emirate’s property values.
Damac Properties PJSC’s stock has plunged by about two-thirds in the past 12 months, while Emaar Malls PJSC and Emaar Development PJSC are both down 34 percent. That performance sets them up for exclusion from the MSCI Emerging Markets Index in May under the compiler’s criteria for membership in the gauge, according to Mohamad Al Hajj, equities strategist at the research arm of EFG-Hermes Holding Co. Their departure could lead to combined investment outflows of about $220 million, he said.
The three companies are by far the worst performers in 2019 among the eight stocks on Dubai’s real estate and construction index, a gauge that’s dropped in the past year as building in the emirate outpaced expected demand growth. The housing component of Dubai’s consumer-price index has fallen for all but three months since at least May 2016, according to data compiled by Bloomberg.
Three of Dubai’s biggest real-estate and development companies are at risk of being removed from one of the world’s most popular emerging-market benchmarks this year as a slowing economy drags down the emirate’s property values.
Damac Properties PJSC’s stock has plunged by about two-thirds in the past 12 months, while Emaar Malls PJSC and Emaar Development PJSC are both down 34 percent. That performance sets them up for exclusion from the MSCI Emerging Markets Index in May under the compiler’s criteria for membership in the gauge, according to Mohamad Al Hajj, equities strategist at the research arm of EFG-Hermes Holding Co. Their departure could lead to combined investment outflows of about $220 million, he said.
The three companies are by far the worst performers in 2019 among the eight stocks on Dubai’s real estate and construction index, a gauge that’s dropped in the past year as building in the emirate outpaced expected demand growth. The housing component of Dubai’s consumer-price index has fallen for all but three months since at least May 2016, according to data compiled by Bloomberg.
Sight of #Saudi Bailout Bazooka Enough for Record Bond Rally - Bloomberg
Sight of Saudi Bailout Bazooka Enough for Record Bond Rally - Bloomberg:
When Saudi Arabia vows to go “all the way” for a country in need, the rest is just noise for investors.
A day after Lebanon’s bonds sank following a credit rating downgrade by Moody’s Investors Service, a show of support by Saudi Arabia was enough to undo the damage. With the kingdom’s regional rival Qatar also agreeing to throw a $500 million lifeline to Lebanon earlier this week, its dollar bonds due 2028 jumped the most ever on Wednesday, despite the Saudi finance minister skimping on details in a pledge made on CNBC.
Even if Saudi Arabia is all talk for now, investors know the kingdom can easily back it up with action. Bahrain’s battered bonds recovered to become the best performer in the Persian Gulf last year after Saudi Arabia and other wealthy allies came to the rescue in October with a $10 billion package.
When Saudi Arabia vows to go “all the way” for a country in need, the rest is just noise for investors.
A day after Lebanon’s bonds sank following a credit rating downgrade by Moody’s Investors Service, a show of support by Saudi Arabia was enough to undo the damage. With the kingdom’s regional rival Qatar also agreeing to throw a $500 million lifeline to Lebanon earlier this week, its dollar bonds due 2028 jumped the most ever on Wednesday, despite the Saudi finance minister skimping on details in a pledge made on CNBC.
Even if Saudi Arabia is all talk for now, investors know the kingdom can easily back it up with action. Bahrain’s battered bonds recovered to become the best performer in the Persian Gulf last year after Saudi Arabia and other wealthy allies came to the rescue in October with a $10 billion package.
World’s Worst Economy Is a Threat to Mideast Rulers Rich or Poor - Bloomberg
World’s Worst Economy Is a Threat to Mideast Rulers Rich or Poor - Bloomberg:
Saudi ministers had just finished presenting an upbeat view of the kingdom’s economic prospects for 2019 at a December conference in Riyadh when a businessman sitting in the audience burst their bubble. After congratulating the officials on their growth predictions, Abdulaziz Al-Ajlan, a textile manufacturer, politely pointed out how little their outlook resembles reality. “Many small and medium-sized companies are shutting down,” he said.
“We see companies firing Saudis.”
Four years of low crude oil prices have taken a toll on the Arab world’s biggest economy and other oil exporters, exacerbating a malaise that’s gripped the region since 2011. That year the Arab Spring protests swept across the Middle East, toppling regimes and wrecking economies. The oil-rich nations of the Persian Gulf mostly escaped the worst of it, but they weren’t going to take any chances and spent heavily to ward off unrest. Now, after four years of lower crude oil prices, they’re in financial trouble, too. The International Monetary Fund ranks the Middle East and North Africa as the worst-performing corner of the world economy since 2011, along with Latin America. Over the next few years, the IMF forecasts, the region will hold that title on its own.
Saudi ministers had just finished presenting an upbeat view of the kingdom’s economic prospects for 2019 at a December conference in Riyadh when a businessman sitting in the audience burst their bubble. After congratulating the officials on their growth predictions, Abdulaziz Al-Ajlan, a textile manufacturer, politely pointed out how little their outlook resembles reality. “Many small and medium-sized companies are shutting down,” he said.
“We see companies firing Saudis.”
Four years of low crude oil prices have taken a toll on the Arab world’s biggest economy and other oil exporters, exacerbating a malaise that’s gripped the region since 2011. That year the Arab Spring protests swept across the Middle East, toppling regimes and wrecking economies. The oil-rich nations of the Persian Gulf mostly escaped the worst of it, but they weren’t going to take any chances and spent heavily to ward off unrest. Now, after four years of lower crude oil prices, they’re in financial trouble, too. The International Monetary Fund ranks the Middle East and North Africa as the worst-performing corner of the world economy since 2011, along with Latin America. Over the next few years, the IMF forecasts, the region will hold that title on its own.
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