Uber Is in Advanced Talks to Buy Mideast Rival Careem - Bloomberg:
Uber Technologies Inc. is in advanced discussions to buy its Dubai-based rival Careem Networks FZ, a deal that would expand the ride-hailing giant’s operations in the Middle East, according to people familiar with the matter.
The companies may announce a cash-and-shares transaction that values Careem at about $3 billion in the coming weeks, the people said, asking not to be identified because the talks are private.
Negotiations are ongoing and no final agreements have been reached, the people said. Representatives for the companies declined to comment.
Thursday 28 February 2019
#Kuwait Is Said to Plan $10 Billion Investment Fund With China - Bloomberg
Kuwait Is Said to Plan $10 Billion Investment Fund With China - Bloomberg:
Kuwait is planning to create a $10 billion fund with China to invest in the two countries, according to people with knowledge of the matter.
The Gulf state is discussing the creation of a Kuwait-China Silk Road Fund that would invest in Kuwaiti projects related to the Silk City and islands development, according to the people. It could also be used for strategic investments in China and other areas under the Asian country’s “One Belt, One Road” initiative, the people said, asking not to be identified because the information is private.
China and Kuwait would each be responsible for raising around $5 billion for the fund, the people said. The Asian country would also work with Chinese strategic partners to arrange debt financing for projects, which could give the fund an investment capacity of as much as $30 billion, they said.
Kuwait is planning to create a $10 billion fund with China to invest in the two countries, according to people with knowledge of the matter.
The Gulf state is discussing the creation of a Kuwait-China Silk Road Fund that would invest in Kuwaiti projects related to the Silk City and islands development, according to the people. It could also be used for strategic investments in China and other areas under the Asian country’s “One Belt, One Road” initiative, the people said, asking not to be identified because the information is private.
China and Kuwait would each be responsible for raising around $5 billion for the fund, the people said. The Asian country would also work with Chinese strategic partners to arrange debt financing for projects, which could give the fund an investment capacity of as much as $30 billion, they said.
Exxon's Cyprus gas discovery adds another giant to East Med collection | Reuters
Exxon's Cyprus gas discovery adds another giant to East Med collection | Reuters:
ExxonMobil added another giant gas discovery to the east Mediterranean region after finding a gas-bearing reservoir offshore Cyprus but infrastructure bottlenecks and geopolitical disputes mean output from the field could be far off.
Exxon, together with partner Qatar Petroleum (QP), estimated in-place gas resources in the reservoir at 5 to 8 trillion cubic feet (tcf) of gas, similar order of magnitude to the Aphrodite and Calypso gas finds nearby, also in Cypriot waters.
The region’s gas output has begun to soar thanks to older discoveries finally bearing fruit. Israel’s Leviathan field, found in 2010 with around 22 tcf, will fully come online in November, though the 2015 Zohr discovery offshore Egypt with up to 30 tcf is already producing.
ExxonMobil added another giant gas discovery to the east Mediterranean region after finding a gas-bearing reservoir offshore Cyprus but infrastructure bottlenecks and geopolitical disputes mean output from the field could be far off.
Exxon, together with partner Qatar Petroleum (QP), estimated in-place gas resources in the reservoir at 5 to 8 trillion cubic feet (tcf) of gas, similar order of magnitude to the Aphrodite and Calypso gas finds nearby, also in Cypriot waters.
The region’s gas output has begun to soar thanks to older discoveries finally bearing fruit. Israel’s Leviathan field, found in 2010 with around 22 tcf, will fully come online in November, though the 2015 Zohr discovery offshore Egypt with up to 30 tcf is already producing.
Brent eases as trade talks drag, China's economy shows weakness | Reuters
Brent eases as trade talks drag, China's economy shows weakness | Reuters:
Brent oil fell while U.S. crude futures steadied on Thursday as U.S.-China trade tensions persisted, both Chinese and Indian economies showed signs of slowing and news of surging U.S. production undermined OPEC-led output curbs.
Global benchmark Brent crude futures for April ended the session down 36 cents, or 0.5 percent, at $66.03 a barrel. The more active May Brent contract fell 27 cents, or 0.4 percent, to settled at $66.31.
U.S. West Texas Intermediate (WTI) crude for April delivery rose 28 cents, or 0.5 percent, to settle at $57.22.
Brent oil fell while U.S. crude futures steadied on Thursday as U.S.-China trade tensions persisted, both Chinese and Indian economies showed signs of slowing and news of surging U.S. production undermined OPEC-led output curbs.
Global benchmark Brent crude futures for April ended the session down 36 cents, or 0.5 percent, at $66.03 a barrel. The more active May Brent contract fell 27 cents, or 0.4 percent, to settled at $66.31.
U.S. West Texas Intermediate (WTI) crude for April delivery rose 28 cents, or 0.5 percent, to settle at $57.22.
MIDEAST STOCKS-Real estate pressures #Dubai, most Gulf markets drop | Reuters
MIDEAST STOCKS-Real estate pressures Dubai, most Gulf markets drop | Reuters:
Dubai's stock market slid on Thursday, pulled lower by property and financial stocks, while most major Gulf bourses also fell.
The Dubai index fell 1.5 percent, with lender Emirates NBD down 4.2 percent and Emaar Development 4.7 percent lower.
Emaar Malls slid 3.9 percent. On Monday, it bought 49 percent of e-commerce fashion website Namshi from Global Fashion Group for 475.5 million dirhams ($129.47 million).
Dubai's stock market slid on Thursday, pulled lower by property and financial stocks, while most major Gulf bourses also fell.
The Dubai index fell 1.5 percent, with lender Emirates NBD down 4.2 percent and Emaar Development 4.7 percent lower.
Emaar Malls slid 3.9 percent. On Monday, it bought 49 percent of e-commerce fashion website Namshi from Global Fashion Group for 475.5 million dirhams ($129.47 million).
At Oil Industry's Big Summit, Uncomfortable Truths Creep In - Bloomberg
At Oil Industry's Big Summit, Uncomfortable Truths Creep In - Bloomberg:
Right from the start of London’s biggest gathering of oil traders and producers, uncomfortable truths began to intrude upon the usual round of business meetings and cocktail parties.
Three climate-change protesters who glued their hands to the doors of the conference venue found that nature was making their point for them. “Why is it so warm?” one shouted to people walking in off streets that were basking in a record winter heat wave, which was causing wildfires in the north of the country.
The protest outside the InterContinental hotel on Wednesday highlighted the oil industry’s existential crisis. It is under increasing pressure to course correct and align itself to the demands of the energy transition. While Big Oil is no stranger to demonstrations at conferences, CEOs are finally acknowledging they face real consequences to their ability to retain shareholders if they don’t respond.
Right from the start of London’s biggest gathering of oil traders and producers, uncomfortable truths began to intrude upon the usual round of business meetings and cocktail parties.
Three climate-change protesters who glued their hands to the doors of the conference venue found that nature was making their point for them. “Why is it so warm?” one shouted to people walking in off streets that were basking in a record winter heat wave, which was causing wildfires in the north of the country.
The protest outside the InterContinental hotel on Wednesday highlighted the oil industry’s existential crisis. It is under increasing pressure to course correct and align itself to the demands of the energy transition. While Big Oil is no stranger to demonstrations at conferences, CEOs are finally acknowledging they face real consequences to their ability to retain shareholders if they don’t respond.
Darkening economic outlook threatens to cap oil price in 2019: Reuters poll | Reuters
Darkening economic outlook threatens to cap oil price in 2019: Reuters poll | Reuters:
Oil analysts have grown more pessimistic over the prospects for a significant price rally this year, as booming U.S. shale output and a deteriorating global economic backdrop threaten to offset the boost from OPEC’s crude supply cuts.
A Reuters survey of 36 economists and analysts on Thursday forecast Brent crude oil futures to average $66.44 a barrel in 2019, slightly below the $67.32 projected in January’s poll. That also compares with the $62 average for the global benchmark this year.
This is the fourth straight month in which analysts have cut their oil price forecasts.
Oil analysts have grown more pessimistic over the prospects for a significant price rally this year, as booming U.S. shale output and a deteriorating global economic backdrop threaten to offset the boost from OPEC’s crude supply cuts.
A Reuters survey of 36 economists and analysts on Thursday forecast Brent crude oil futures to average $66.44 a barrel in 2019, slightly below the $67.32 projected in January’s poll. That also compares with the $62 average for the global benchmark this year.
This is the fourth straight month in which analysts have cut their oil price forecasts.
Exxon Mobil finds natural gas off Cyprus | Reuters
Exxon Mobil finds natural gas off Cyprus | Reuters:
U.S. oil and gas major Exxon Mobil Corp said on Thursday it had found natural gas offshore Cyprus, a region already known for some of the world’s largest such discoveries.
The east Mediterranean island is located in the Levant basin, where both Israel and Egypt have found some of the largest reserves of natural gas in the past decade.
Exxon’s discovery could represent natural gas resources of between 5 trillion and 8 trillion cubic feet, it said.
U.S. oil and gas major Exxon Mobil Corp said on Thursday it had found natural gas offshore Cyprus, a region already known for some of the world’s largest such discoveries.
The east Mediterranean island is located in the Levant basin, where both Israel and Egypt have found some of the largest reserves of natural gas in the past decade.
Exxon’s discovery could represent natural gas resources of between 5 trillion and 8 trillion cubic feet, it said.
#Iran Gets a Little Sweet Relief From Oil-Money Headache in India - Bloomberg
Iran Gets a Little Sweet Relief From Oil-Money Headache in India - Bloomberg:
Sanctioned by the U.S., Iran’s found a sweet way to use the cash it’s accumulated from trading oil: Purchase sugar from India.
Iran is struggling to spend the rupees it’s made from oil sales to India that are sitting in the south Asian nation’s banks. Meanwhile, sugar stockpiles are stacking up in India after a bumper crop. Now the two have struck a deal that eases each other’s woes -- albeit only to some extent.
The Government Trading Corporation of Iran will buy 150,000 tons of raw sugar from Indian mills for delivery in March-April, paying in rupees from escrow accounts held at UCO Bank. Indian sweeteners regain access to an old market, which has been dominated by Brazil, the world’s biggest producer and exporter.
Sanctioned by the U.S., Iran’s found a sweet way to use the cash it’s accumulated from trading oil: Purchase sugar from India.
Iran is struggling to spend the rupees it’s made from oil sales to India that are sitting in the south Asian nation’s banks. Meanwhile, sugar stockpiles are stacking up in India after a bumper crop. Now the two have struck a deal that eases each other’s woes -- albeit only to some extent.
The Government Trading Corporation of Iran will buy 150,000 tons of raw sugar from Indian mills for delivery in March-April, paying in rupees from escrow accounts held at UCO Bank. Indian sweeteners regain access to an old market, which has been dominated by Brazil, the world’s biggest producer and exporter.
#Saudi Bourse Reforms Small-Cap Market Before Index Promotion - Bloomberg
Saudi Bourse Reforms Small-Cap Market Before Index Promotion - Bloomberg:
The Saudi stock exchange is making changes to its platform for trading in small- and medium-size companies, just before the country’s inclusion in major emerging-market benchmarks.
The Tadawul, as the bourse is known, aims to increase the number of listed companies in the segment and improve liquidity in trading, according to a statement on Wednesday. The changes include allowing companies to list without an initial public offering and by reducing trade thresholds.
Changes to Nomu, as the platform started in 2017 is known, are among reforms adopted by the $530 billion bourse to better align itself with international markets and open up to foreign investors. Last year, FTSE Russell and MSCI Inc. announced the inclusion of the kingdom in their emerging-market benchmarks, with the upgrade happening over several tranches, starting next month. Investors and analysts expect billions of dollars in inflows as a result.
The Saudi stock exchange is making changes to its platform for trading in small- and medium-size companies, just before the country’s inclusion in major emerging-market benchmarks.
The Tadawul, as the bourse is known, aims to increase the number of listed companies in the segment and improve liquidity in trading, according to a statement on Wednesday. The changes include allowing companies to list without an initial public offering and by reducing trade thresholds.
Changes to Nomu, as the platform started in 2017 is known, are among reforms adopted by the $530 billion bourse to better align itself with international markets and open up to foreign investors. Last year, FTSE Russell and MSCI Inc. announced the inclusion of the kingdom in their emerging-market benchmarks, with the upgrade happening over several tranches, starting next month. Investors and analysts expect billions of dollars in inflows as a result.
#SaudiArabia's Crude Supply to U.S. Gulf Falling Fast and Hard - Bloomberg
Saudi Arabia's Crude Supply to U.S. Gulf Falling Fast and Hard - Bloomberg:
Saudi Arabia sliced its crude supply to plants located on the U.S. Gulf Coast, the world’s largest refining center, by more than half from a year ago. And shipments may grind to a complete halt soon.
The Middle East’s largest producer is making good on its pledge to reduce deliveries to its biggest American customers in an effort to comply with OPEC’s deal to cut output. Saudi Aramco shipped just 1.6 million barrels of its oil to U.S. Gulf Coast buyers this month compared with 5.75 million a year ago, according to U.S. Customs data compiled by Bloomberg. In January, shipments were at 2.69 million.
"We could see Saudi oil imports declining to zero into the U.S. Gulf Coast," said Andy Lipow, president of Lipow Oil Associates in Houston. U.S. President Donald Trump’s recent comment via Twitter that oil prices are too high won’t stem the current declining trend, as "OPEC and non-OPEC members feel prices are too low, and they will do what it takes to put the market back in balance."
Saudi Arabia sliced its crude supply to plants located on the U.S. Gulf Coast, the world’s largest refining center, by more than half from a year ago. And shipments may grind to a complete halt soon.
The Middle East’s largest producer is making good on its pledge to reduce deliveries to its biggest American customers in an effort to comply with OPEC’s deal to cut output. Saudi Aramco shipped just 1.6 million barrels of its oil to U.S. Gulf Coast buyers this month compared with 5.75 million a year ago, according to U.S. Customs data compiled by Bloomberg. In January, shipments were at 2.69 million.
"We could see Saudi oil imports declining to zero into the U.S. Gulf Coast," said Andy Lipow, president of Lipow Oil Associates in Houston. U.S. President Donald Trump’s recent comment via Twitter that oil prices are too high won’t stem the current declining trend, as "OPEC and non-OPEC members feel prices are too low, and they will do what it takes to put the market back in balance."
#AbuDhabi's ADIA unit partners with India's Kotak Investment to launch fund | ZAWYA MENA Edition
Abu Dhabi's ADIA unit partners with India's Kotak Investment to launch fund | ZAWYA MENA Edition:
Abu Dhabi's sovereign wealth fund said on Thursday its subsidiary was launching a fund with India's Kotak Investment Advisors.
The fund will target a range of non-performing loan (NPL) opportunities in India, ADIA said in a statement.
The fund will "target both pre-stress and distressed opportunities, with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency," it said.
Abu Dhabi's sovereign wealth fund said on Thursday its subsidiary was launching a fund with India's Kotak Investment Advisors.
The fund will target a range of non-performing loan (NPL) opportunities in India, ADIA said in a statement.
The fund will "target both pre-stress and distressed opportunities, with a key focus on providing financial support to pre-stress businesses to prevent them from entering insolvency," it said.
Mideast Stocks: Emirates NBD weighs on #Dubai, banks lift #Qatar | ZAWYA MENA Edition
Mideast Stocks: Emirates NBD weighs on Dubai, banks lift Qatar | ZAWYA MENA Edition:
Dubai's stock market fell on Thursday as lender Emirates NBD and real estate stocks slipped, while Qatar was lifted by its banks.
The Dubai index was down 1.1 percent, with Emirates NBD sliding 4.4 percent. The bank's shares have seen a sell-off in recent sessions.
Property shares also fell, with Emaar Properties shedding 0.8 percent and its unit Emaar Malls losing 2.2 percent.
Dubai's stock market fell on Thursday as lender Emirates NBD and real estate stocks slipped, while Qatar was lifted by its banks.
The Dubai index was down 1.1 percent, with Emirates NBD sliding 4.4 percent. The bank's shares have seen a sell-off in recent sessions.
Property shares also fell, with Emaar Properties shedding 0.8 percent and its unit Emaar Malls losing 2.2 percent.
Even China may not be able to soak up all 2019's new LNG: Russell | Reuters
Even China may not be able to soak up all 2019's new LNG: Russell | Reuters:
Not even China’s voracious appetite for liquefied natural gas may be enough to absorb the additional supplies hitting the market this year, with the price of the super-chilled fuel potentially a casualty.
While China’s LNG imports got off to a rollicking start in 2019, it’s unlikely that will match the 41-percent growth experienced in 2018.
Imports were 6.58 million tonnes in January, a record-high and up 27.8 percent from the same month in 2018, according to customs data released on Feb. 23.
Not even China’s voracious appetite for liquefied natural gas may be enough to absorb the additional supplies hitting the market this year, with the price of the super-chilled fuel potentially a casualty.
While China’s LNG imports got off to a rollicking start in 2019, it’s unlikely that will match the 41-percent growth experienced in 2018.
Imports were 6.58 million tonnes in January, a record-high and up 27.8 percent from the same month in 2018, according to customs data released on Feb. 23.
#Saudi bourse expects $15-$20 bln in passive fund inflows in 2019 | Reuters
Saudi bourse expects $15-$20 bln in passive fund inflows in 2019 | Reuters:
Saudi Arabia’s stock exchange expects $15 to $20 billion in passive fund inflows this year, its chief executive told Reuters on Thursday.
Tadawul, Saudi Arabia’s main stock exchange, will join the FTSE Russell and MSCI’s emerging market indexes later this year which has heightened the interest of foreign investors in the Saudi market.
Khalid al-Hussan, chief executive officer of Tadawul, also told Reuters that he is still committed to the listing of the stock exchange, but a planned initial public offering will not happen this year.
Saudi Arabia’s stock exchange expects $15 to $20 billion in passive fund inflows this year, its chief executive told Reuters on Thursday.
Tadawul, Saudi Arabia’s main stock exchange, will join the FTSE Russell and MSCI’s emerging market indexes later this year which has heightened the interest of foreign investors in the Saudi market.
Khalid al-Hussan, chief executive officer of Tadawul, also told Reuters that he is still committed to the listing of the stock exchange, but a planned initial public offering will not happen this year.
#Saudi market cross-listing regulations expected in second quarter | Reuters
Saudi market cross-listing regulations expected in second quarter | Reuters:
Regulations to allow companies from other Gulf countries to list on Saudi Arabia’s stock market are expected to be finalised in the second quarter of this year, the chief executive of the Saudi bourse, Tadawul, said on Thursday.
Saudi Arabia’s Capital Market Authority and Tadawul are working with potential investors in the Gulf countries on the new cross-listing rules, Khalid al-Hussan, chief executive officer of Tadawul told a news conference.
Regulations to allow companies from other Gulf countries to list on Saudi Arabia’s stock market are expected to be finalised in the second quarter of this year, the chief executive of the Saudi bourse, Tadawul, said on Thursday.
Saudi Arabia’s Capital Market Authority and Tadawul are working with potential investors in the Gulf countries on the new cross-listing rules, Khalid al-Hussan, chief executive officer of Tadawul told a news conference.
Wednesday 27 February 2019
Aldar to acquire Etihad properties for Dh1.2b
Aldar to acquire Etihad properties for Dh1.2b:
Aldar Investments announced on Wednesday it will be acquiring full ownership of Etihad Plaza and Etihad Airways Centre from Abu Dhabi’s Etihad Group for Dh1.2 billion.
The transaction is expected to complete in the second quarter of this year, and will come in exchange for transfer of full ownership of Etihad Headquarters to Etihad Airways. The three buildings were previously held in 50/50 joint ventures between Aldar and Etihad.
As part of the transaction, Aldar Investments, a subsidiary under the publicly-listed Aldar Properties, will assume existing debt within the Etihad Plaza and Etihad Airways Centre.
Aldar Investments announced on Wednesday it will be acquiring full ownership of Etihad Plaza and Etihad Airways Centre from Abu Dhabi’s Etihad Group for Dh1.2 billion.
The transaction is expected to complete in the second quarter of this year, and will come in exchange for transfer of full ownership of Etihad Headquarters to Etihad Airways. The three buildings were previously held in 50/50 joint ventures between Aldar and Etihad.
As part of the transaction, Aldar Investments, a subsidiary under the publicly-listed Aldar Properties, will assume existing debt within the Etihad Plaza and Etihad Airways Centre.
QCB’s foreign exchange reserves at $49.3bn - The Peninsula #Qatar
QCB’s foreign exchange reserves at $49.3bn - The Peninsula Qatar:
Qatar Central Bank’s (QCB) foreign exchange reserves rose 1.8 percent month-on-month to reach $49.3bn in December 2018, equating to 8.8 months of import cover. Qatar’s bank asset growth was 1.8 percent y-o-y in January.
QNB monthly report noted yesterday credit growth was 3.1 percent y/y in January. Bank deposit growth was down 1.7 percent y/y in January. Private sector, public sector and non-resident deposits declined respectively 0.3 percent, 4.3 percent and 4.4 percent m/m in January. Broad money supply (M2) declined 6.5 percent y/y in December. Interbank rates remained stable.
Qatar’s real GDP growth has accelerated in Q3 on the back of a stabilisation in hydrocarbon output. Construction as well as finance & real estate led the way for a 4.3 percent growth in non-hydrocarbon GDP over Q3 2018. Industrial production was broadly flat at 0.3 percent in December. The real estate price index is signaling prices are stabilising. 5-star and 4-star hotel occupancy rates were stable at 56 percent and 62 percent respectively in December.
Qatar Central Bank’s (QCB) foreign exchange reserves rose 1.8 percent month-on-month to reach $49.3bn in December 2018, equating to 8.8 months of import cover. Qatar’s bank asset growth was 1.8 percent y-o-y in January.
QNB monthly report noted yesterday credit growth was 3.1 percent y/y in January. Bank deposit growth was down 1.7 percent y/y in January. Private sector, public sector and non-resident deposits declined respectively 0.3 percent, 4.3 percent and 4.4 percent m/m in January. Broad money supply (M2) declined 6.5 percent y/y in December. Interbank rates remained stable.
Qatar’s real GDP growth has accelerated in Q3 on the back of a stabilisation in hydrocarbon output. Construction as well as finance & real estate led the way for a 4.3 percent growth in non-hydrocarbon GDP over Q3 2018. Industrial production was broadly flat at 0.3 percent in December. The real estate price index is signaling prices are stabilising. 5-star and 4-star hotel occupancy rates were stable at 56 percent and 62 percent respectively in December.
#Qatar banks' assets, credit grow in January: QNB
Qatar banks' assets, credit grow in January: QNB:
Qatar’s banks have seen their assets and credit growing in January, at 1.8% and 3.1% year-on-year (y-o-y) respectively, QNB said in its latest "Qatar Monthly Monitor".
However, local banks’ deposit growth was negative last month at -1.7% year-on-year. Private sector, public sector and non-resident deposits declined 0.3%, 4.3% and 4.4% month-on-month respectively in January, the report showed. Interbank rates remained stable in December.
Qatar's sovereign five-year credit default swap spread (CDS Spreads) remained stable at around 75 bps; QIBOR three-month interest rates remained stable while Libor three-month interest rates declined.
Qatar’s banks have seen their assets and credit growing in January, at 1.8% and 3.1% year-on-year (y-o-y) respectively, QNB said in its latest "Qatar Monthly Monitor".
However, local banks’ deposit growth was negative last month at -1.7% year-on-year. Private sector, public sector and non-resident deposits declined 0.3%, 4.3% and 4.4% month-on-month respectively in January, the report showed. Interbank rates remained stable in December.
Qatar's sovereign five-year credit default swap spread (CDS Spreads) remained stable at around 75 bps; QIBOR three-month interest rates remained stable while Libor three-month interest rates declined.
#Bahrain bailout tied to "general assessment" of rebalancing, not specific numbers: FinMin | ZAWYA MENA Edition
Bahrain bailout tied to "general assessment" of rebalancing, not specific numbers: FinMin | ZAWYA MENA Edition:
A $10 billion bailout pledged to Bahrain – one of the Gulf's weakest economies – from Saudi Arabia, Kuwait and the United Arab Emirates is tied to a "general assessment" of its progress in rebalancing its fiscal position rather than to specific numbers, its finance minister said.
Bahrain in October was promised the $10 billion in assistance over five years from the three Gulf allies after experiencing severe pressure in currency and debt markets.
"We put together a fiscal balance plan for Bahrain, by Bahrain, which was then presented to the three countries. The main thing with regards to the support attached to that plan is an assessment of us staying on plan," Sheikh Salman bin Khalifa Al Khalifa told Reuters on the sidelines of an investment conference in Manama.
A $10 billion bailout pledged to Bahrain – one of the Gulf's weakest economies – from Saudi Arabia, Kuwait and the United Arab Emirates is tied to a "general assessment" of its progress in rebalancing its fiscal position rather than to specific numbers, its finance minister said.
Bahrain in October was promised the $10 billion in assistance over five years from the three Gulf allies after experiencing severe pressure in currency and debt markets.
"We put together a fiscal balance plan for Bahrain, by Bahrain, which was then presented to the three countries. The main thing with regards to the support attached to that plan is an assessment of us staying on plan," Sheikh Salman bin Khalifa Al Khalifa told Reuters on the sidelines of an investment conference in Manama.
#Qatar Airways suspended some destinations planned for Africa after Gulf boycott | Reuters
Qatar Airways suspended some destinations planned for Africa after Gulf boycott | Reuters:
Qatar Airways said on Wednesday that it had decided not to go ahead with routes to some planned destinations following a Gulf boycott, particularly in West and Central Africa, the company said in a Twitter post.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with the Gulf state in 2017 and closed their airspace to Qatari planes as part of their attempt to isolate it.
“Due to the unjust blockade against Qatar, we had to suspend some planned new destinations especially in West and Central Africa,” the post said, referring to the boycott.
Qatar Airways said on Wednesday that it had decided not to go ahead with routes to some planned destinations following a Gulf boycott, particularly in West and Central Africa, the company said in a Twitter post.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed ties with the Gulf state in 2017 and closed their airspace to Qatari planes as part of their attempt to isolate it.
“Due to the unjust blockade against Qatar, we had to suspend some planned new destinations especially in West and Central Africa,” the post said, referring to the boycott.
UPDATE 1- #UAE's EDB sets final price guidance for debut dollar bond -document | Reuters
UPDATE 1-UAE's EDB sets final price guidance for debut dollar bond -document | Reuters:
Emirates Development Bank (EDB), owned by the United Arab Emirates federal government, set final price guidance for its $750 million dollar bond issue at 98 basis points over midswaps, a document issued by one of the banks leading the deal showed on Wednesday.
Orders for the five-year senior unsecured bonds, EDB’s debut dollar issue, totalled almost $3.5 billion. Emirates NBD Capital and Standard Chartered Bank are coordinating the sale. Emirates Development Bank is rated AA-(minus) by Fitch.
The pricing for the issue was revised from earlier guidance of around 130 basis points over mid-swaps.
Emirates Development Bank (EDB), owned by the United Arab Emirates federal government, set final price guidance for its $750 million dollar bond issue at 98 basis points over midswaps, a document issued by one of the banks leading the deal showed on Wednesday.
Orders for the five-year senior unsecured bonds, EDB’s debut dollar issue, totalled almost $3.5 billion. Emirates NBD Capital and Standard Chartered Bank are coordinating the sale. Emirates Development Bank is rated AA-(minus) by Fitch.
The pricing for the issue was revised from earlier guidance of around 130 basis points over mid-swaps.
#Saudi Aramco adds Goldman Sachs as bookrunner for planned bond: sources | Reuters
Saudi Aramco adds Goldman Sachs as bookrunner for planned bond: sources | Reuters:
Saudi Aramco has added Goldman Sachs as a bookrunner for a planned bond which will help finance its purchase of a stake in Saudi Arabian Basic Industries Corp (SABIC), two sources familiar with the matter told Reuters.
The U.S. investment bank flew out a team of senior executives including partner Dina Powell, a veteran of the administration of U.S. President Donald Trump, to pitch for the deal, the sources said.
Saudi Aramco did not respond to queries for immediate comment. Goldman Sachs declined to comment.
Saudi Aramco has added Goldman Sachs as a bookrunner for a planned bond which will help finance its purchase of a stake in Saudi Arabian Basic Industries Corp (SABIC), two sources familiar with the matter told Reuters.
The U.S. investment bank flew out a team of senior executives including partner Dina Powell, a veteran of the administration of U.S. President Donald Trump, to pitch for the deal, the sources said.
Saudi Aramco did not respond to queries for immediate comment. Goldman Sachs declined to comment.
Oil rises 2 percent as U.S. crude stocks plunge, OPEC brushes off Trump | Reuters
Oil rises 2 percent as U.S. crude stocks plunge, OPEC brushes off Trump | Reuters:
Oil futures gained about 2 percent on Wednesday after U.S. crude inventories unexpectedly plummeted and as Saudi Arabia brushed aside comments from U.S. President Donald Trump seeking to keep oil prices from climbing.
U.S. crude stockpiles fell 8.6 million barrels last week, in contrast to expectations for an increase of 2.8 million barrels, government data showed.
The drawdown, which breaks five consecutive weeks of builds, was due to net crude imports slowing to a record low of 2.6 million barrels per day in the wake of declining OPEC production and U.S. sanctions against Venezuela.
U.S. crude futures settled at $56.94 a barrel, up $1.44, or 2.6 percent, the biggest daily percentage rise in nearly four weeks. Brent crude futures rose $1.18, or 1.8 percent, to end at $66.39 a barrel.
Oil futures gained about 2 percent on Wednesday after U.S. crude inventories unexpectedly plummeted and as Saudi Arabia brushed aside comments from U.S. President Donald Trump seeking to keep oil prices from climbing.
U.S. crude stockpiles fell 8.6 million barrels last week, in contrast to expectations for an increase of 2.8 million barrels, government data showed.
The drawdown, which breaks five consecutive weeks of builds, was due to net crude imports slowing to a record low of 2.6 million barrels per day in the wake of declining OPEC production and U.S. sanctions against Venezuela.
U.S. crude futures settled at $56.94 a barrel, up $1.44, or 2.6 percent, the biggest daily percentage rise in nearly four weeks. Brent crude futures rose $1.18, or 1.8 percent, to end at $66.39 a barrel.
MIDEAST STOCKS- #Qatar slides on sell-off, rest of Gulf mixed | Reuters
MIDEAST STOCKS-Qatar slides on sell-off, rest of Gulf mixed | Reuters:
Qatar's index fell on Wednesday as it witnessed heavy selling from local and GCC investors, while Saudi Arabia inched up, partly lifted by corporate results.
The Qatar index fell 1.2 percent, with 16 of its 20 stocks dropping.
Blue-chips Qatar Insurance slid 6 percent and Qatar Islamic Bank was down 2 percent.
The Qatar exchange, which jumped 21 percent in 2018, was one of the world's best-performing markets for the year, after limits were lifted on foreign ownership of shares.
Qatar's index fell on Wednesday as it witnessed heavy selling from local and GCC investors, while Saudi Arabia inched up, partly lifted by corporate results.
The Qatar index fell 1.2 percent, with 16 of its 20 stocks dropping.
Blue-chips Qatar Insurance slid 6 percent and Qatar Islamic Bank was down 2 percent.
The Qatar exchange, which jumped 21 percent in 2018, was one of the world's best-performing markets for the year, after limits were lifted on foreign ownership of shares.
#Dubai Property Giant's Fabulous February Triggers Sentiment Test - Bloomberg
Dubai Property Giant's Fabulous February Triggers Sentiment Test - Bloomberg:
A rally in Emaar Properties PJSC, Dubai’s biggest listed real-estate company, has pushed the stock beyond a key level for the first time since 2017, testing sentiment among investors still wary about the health of the sector.
The shares had climbed 14 percent in February before Wednesday’s session, headed for the best month in three years. The gains have taken the stock beyond its 200-day moving average, a level it held for some five months the last time this happened.
Emaar Properties is seen as a bellwether for Dubai’s real-estate market. The recent recovery comes after a 40 percent drop last year, the worst loss in a decade, as the stock was dragged lower by worries about an increase in supply at a time of falling demand in the emirate.
A rally in Emaar Properties PJSC, Dubai’s biggest listed real-estate company, has pushed the stock beyond a key level for the first time since 2017, testing sentiment among investors still wary about the health of the sector.
The shares had climbed 14 percent in February before Wednesday’s session, headed for the best month in three years. The gains have taken the stock beyond its 200-day moving average, a level it held for some five months the last time this happened.
Emaar Properties is seen as a bellwether for Dubai’s real-estate market. The recent recovery comes after a 40 percent drop last year, the worst loss in a decade, as the stock was dragged lower by worries about an increase in supply at a time of falling demand in the emirate.
Bahrain Fund Open to McLaren IPO Even as It Grapples With Brexit - Bloomberg
Bahrain Fund Open to McLaren IPO Even as It Grapples With Brexit - Bloomberg:
Bahrain’s sovereign wealth fund remains open to an initial public offering of McLaren Group Ltd., though it isn’t in a rush to sell its controlling stake in the supercar maker and Formula One racing team.
“When we think it’s the right time, we’ll go” for an IPO, said Mahmood Al Kooheji, chief executive officer of Bahrain Mumtalakat Holding Co. “We’re a happy investor in McLaren.”
While U.K.-based McLaren will be affected by the uncertainty surrounding Brexit, it will need to “redefine a solution for it,” Al Kooheji said in an interview with Bloomberg TV in Manama, Bahrain. “Life goes on.”
Bahrain’s sovereign wealth fund remains open to an initial public offering of McLaren Group Ltd., though it isn’t in a rush to sell its controlling stake in the supercar maker and Formula One racing team.
“When we think it’s the right time, we’ll go” for an IPO, said Mahmood Al Kooheji, chief executive officer of Bahrain Mumtalakat Holding Co. “We’re a happy investor in McLaren.”
While U.K.-based McLaren will be affected by the uncertainty surrounding Brexit, it will need to “redefine a solution for it,” Al Kooheji said in an interview with Bloomberg TV in Manama, Bahrain. “Life goes on.”
Saudis Hold Firm on Oil Output Cuts After Trump Says `Relax' - Bloomberg
Saudis Hold Firm on Oil Output Cuts After Trump Says `Relax' - Bloomberg:
Saudi Arabia is leaning toward extending OPEC cuts into the second half of 2019, potentially pitting the group against U.S. President Donald Trump’s demand to keep prices down.
Oil inventories in the U.S. are “brimming,” and reducing that glut remains the main goal for the group, Saudi Arabian Energy Minister Khalid Al-Falih said in Riyadh. The kingdom plans further curbs to output in March, he said.
Trump has renewed his pressure on OPEC and its allies, a coalition referred to as OPEC+, after they started a new round of production cuts last month. The group’s supply reduction, plus U.S. sanctions on Venezuela and Iran, have contributed to a crude-price rally of more than 20 percent this year.
Saudi Arabia is leaning toward extending OPEC cuts into the second half of 2019, potentially pitting the group against U.S. President Donald Trump’s demand to keep prices down.
Oil inventories in the U.S. are “brimming,” and reducing that glut remains the main goal for the group, Saudi Arabian Energy Minister Khalid Al-Falih said in Riyadh. The kingdom plans further curbs to output in March, he said.
Trump has renewed his pressure on OPEC and its allies, a coalition referred to as OPEC+, after they started a new round of production cuts last month. The group’s supply reduction, plus U.S. sanctions on Venezuela and Iran, have contributed to a crude-price rally of more than 20 percent this year.
The impact consolidation will have on #AbuDhabi's banking sector | ZAWYA MENA Edition
The impact consolidation will have on Abu Dhabi's banking sector | ZAWYA MENA Edition:
Planned mergers are set to create a more consolidated and robust banking sector in Abu Dhabi, strengthening its position as a leader in the regional financial market.
In January Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) issued a statement to the Abu Dhabi Securities Exchange stating that they had formalised plans to merge, and that the new entity would continue to trade under the ADCB name.
Furthermore, they announced that the merged bank would acquire the sharia-compliant lender Al Hilal Bank.
Planned mergers are set to create a more consolidated and robust banking sector in Abu Dhabi, strengthening its position as a leader in the regional financial market.
In January Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) issued a statement to the Abu Dhabi Securities Exchange stating that they had formalised plans to merge, and that the new entity would continue to trade under the ADCB name.
Furthermore, they announced that the merged bank would acquire the sharia-compliant lender Al Hilal Bank.
#Iran's president rejects resignation of his foreign minister
Iran's president rejects resignation of his foreign minister:
Iran’s president rejected the resignation of his foreign minister on Wednesday, throwing his full support behind the diplomat who negotiated the country’s nuclear deal with world powers as both men face growing pressure from hard-liners as the accord unravels under American pressure.
President Hassan Rouhani earlier gave a speech praising Mohammad Javad Zarif after the foreign minister’s sudden resignation shocked the Islamic Republic late on Monday night. His rejection of the resignation, reported by the state-run IRNA news agency, continued that praise.
“Since I consider you in the front line of resistance against broad pressures by the U.S., I consider acceptance of your resignation against the expedience of the country and I do not agree with it,” Rouhani reportedly told Zarif.
Iran’s president rejected the resignation of his foreign minister on Wednesday, throwing his full support behind the diplomat who negotiated the country’s nuclear deal with world powers as both men face growing pressure from hard-liners as the accord unravels under American pressure.
President Hassan Rouhani earlier gave a speech praising Mohammad Javad Zarif after the foreign minister’s sudden resignation shocked the Islamic Republic late on Monday night. His rejection of the resignation, reported by the state-run IRNA news agency, continued that praise.
“Since I consider you in the front line of resistance against broad pressures by the U.S., I consider acceptance of your resignation against the expedience of the country and I do not agree with it,” Rouhani reportedly told Zarif.
#UAE's EDB starts marketing debut dollar bond - document | Reuters
UAE's EDB starts marketing debut dollar bond - document | Reuters:
Emirates Development Bank (EDB), owned by the United Arab Emirates federal government, started marketing its debut dollar bond issue at around 130 basis points over mid-swaps, a document issued by one of the banks leading the deal showed on Wednesday.
The five-year senior, unsecured bonds are expected to be priced later on Wednesday. Emirates NBD Capital and Standard Chartered Bank are coordinating the debt sale. Emirates Development Bank is rated AA-(minus) by Fitch.
Emirates Development Bank (EDB), owned by the United Arab Emirates federal government, started marketing its debut dollar bond issue at around 130 basis points over mid-swaps, a document issued by one of the banks leading the deal showed on Wednesday.
The five-year senior, unsecured bonds are expected to be priced later on Wednesday. Emirates NBD Capital and Standard Chartered Bank are coordinating the debt sale. Emirates Development Bank is rated AA-(minus) by Fitch.
MIDEAST STOCKS- #Dubai's property stocks drop, most Gulf markets slide | Reuters
MIDEAST STOCKS-Dubai's property stocks drop, most Gulf markets slide | Reuters:
Dubai’s stock market fell in early trading on Wednesday, a day after reaching a three-month high, as all its property shares declined.
Most major Gulf markets slid. The Dubai index dipped 0.4 percent, with Emaar Properties losing 0.8 percent and its retail arm, Emaar Malls, falling 2.2 percent.
Emaar Malls bought the 49 percent of e-commerce fashion website Namshi it did not own from Global Fashion Group for 475.5 million dirhams ($129.47 million).
Dubai’s stock market fell in early trading on Wednesday, a day after reaching a three-month high, as all its property shares declined.
Most major Gulf markets slid. The Dubai index dipped 0.4 percent, with Emaar Properties losing 0.8 percent and its retail arm, Emaar Malls, falling 2.2 percent.
Emaar Malls bought the 49 percent of e-commerce fashion website Namshi it did not own from Global Fashion Group for 475.5 million dirhams ($129.47 million).
Tuesday 26 February 2019
QIIB’s $500mn sukuk oversubscribed more than 6 times
QIIB’s $500mn sukuk oversubscribed more than 6 times:
QIIB has announced the successful issuance of its $500mn sukuk under the bank’s $2bn sukuk programme.
The offering was oversubscribed six times with investors bidding for more than six times the amount offered and reflects the positive outlook of the Qatari economy and the strength of its financial position, the bank said last night.
The offering was oversubscribed by investors, mostly from outside the Middle East, with a total of $3.3bn.
QIIB has announced the successful issuance of its $500mn sukuk under the bank’s $2bn sukuk programme.
The offering was oversubscribed six times with investors bidding for more than six times the amount offered and reflects the positive outlook of the Qatari economy and the strength of its financial position, the bank said last night.
The offering was oversubscribed by investors, mostly from outside the Middle East, with a total of $3.3bn.
QIC pins hopes on #Qatar’s economic resilience, ‘fading’ impact of blockade
QIC pins hopes on Qatar’s economic resilience, ‘fading’ impact of blockade:
Qatar Insurance Group has pinned hopes on the country’s robust economic resilience and the “fading” impact of the blockade, yet it is “cautiously” optimistic this year as it plans global expansion through the newly formed QIC Global.
“We are encouraged by Qatar’s strengthened economic resilience and the fading impact of the blockade as well as signs of improving trading conditions in global insurance and reinsurance markets,” QIC board said in its report presented before shareholders at the annual general assembly (GA) meeting, which was chaired by Abdulla bin Khalifa al-Attiya, deputy chairman of QIC Group. The shareholders endorsed the recommended distribution of cash dividend payout of 15% for 2018.
Global financial markets are poised to remain volatile as economic growth is slowing, it said, adding trade conflicts are brewing and central banks are adopting a “less accommodative” stand.
Qatar Insurance Group has pinned hopes on the country’s robust economic resilience and the “fading” impact of the blockade, yet it is “cautiously” optimistic this year as it plans global expansion through the newly formed QIC Global.
“We are encouraged by Qatar’s strengthened economic resilience and the fading impact of the blockade as well as signs of improving trading conditions in global insurance and reinsurance markets,” QIC board said in its report presented before shareholders at the annual general assembly (GA) meeting, which was chaired by Abdulla bin Khalifa al-Attiya, deputy chairman of QIC Group. The shareholders endorsed the recommended distribution of cash dividend payout of 15% for 2018.
Global financial markets are poised to remain volatile as economic growth is slowing, it said, adding trade conflicts are brewing and central banks are adopting a “less accommodative” stand.
#Dubai Ports Ease #Qatar Cargo Ban After Similar #AbuDhabi Measure - Bloomberg
Dubai Ports Ease Qatar Cargo Ban After Similar Abu Dhabi Measure - Bloomberg:
Dubai’s biggest port operator has followed Abu Dhabi in advising that third-party shippers can now move cargo to and from Qatar, seemingly easing restrictions in place for nearly two years.
Qatari-flagged ships and vessels with Qatari owners are still prohibited, DP World Ltd., which runs the Jebel Ali port, said in a circular dated Feb. 21. Other vessels coming from or traveling to Qatar and ships carrying cargo between Qatar and the United Arab Emirates are not barred. Abu Dhabi Ports issued a similar statement to shippers on Feb. 12.
The U.A.E., Saudi Arabia, Bahrain and Egypt cut diplomatic and trade links with Qatar in 2017, accusing the gas-rich country of maintaining close ties with Iran and supporting terrorism. Qatar denies both charges.
Dubai’s biggest port operator has followed Abu Dhabi in advising that third-party shippers can now move cargo to and from Qatar, seemingly easing restrictions in place for nearly two years.
Qatari-flagged ships and vessels with Qatari owners are still prohibited, DP World Ltd., which runs the Jebel Ali port, said in a circular dated Feb. 21. Other vessels coming from or traveling to Qatar and ships carrying cargo between Qatar and the United Arab Emirates are not barred. Abu Dhabi Ports issued a similar statement to shippers on Feb. 12.
The U.A.E., Saudi Arabia, Bahrain and Egypt cut diplomatic and trade links with Qatar in 2017, accusing the gas-rich country of maintaining close ties with Iran and supporting terrorism. Qatar denies both charges.
Everbright Bank Is Said in Talks to Back $20 Billion #Saudi Fund - Bloomberg
Everbright Bank Is Said in Talks to Back $20 Billion Saudi Fund - Bloomberg:
Everbright Bank Co., the Beijing-based lender, is among parties in talks to contribute capital to a joint investment fund being set up by China and Saudi Arabia that’s targeting as much as $20 billion, people with knowledge of the matter said.
China’s state-owned Silk Road Fund is separately discussing participating in the investment vehicle, the people said, asking not to be identified because the information is private. The Gulf kingdom’s Saudi Industrial Development Fund is also backing the pool of capital, according to the people.
The joint fund will be used to invest in strategic projects in the two countries, one of the people said. It may first raise a smaller amount in the range of around $14 billion to $16 billion, though the exact size and investors are still being determined, the people said.
Everbright Bank Co., the Beijing-based lender, is among parties in talks to contribute capital to a joint investment fund being set up by China and Saudi Arabia that’s targeting as much as $20 billion, people with knowledge of the matter said.
China’s state-owned Silk Road Fund is separately discussing participating in the investment vehicle, the people said, asking not to be identified because the information is private. The Gulf kingdom’s Saudi Industrial Development Fund is also backing the pool of capital, according to the people.
The joint fund will be used to invest in strategic projects in the two countries, one of the people said. It may first raise a smaller amount in the range of around $14 billion to $16 billion, though the exact size and investors are still being determined, the people said.
Aramco CEO Amin Nasser: Investors Tuning Out of Oil Industry - Bloomberg
Aramco CEO Amin Nasser: Investors Tuning Out of Oil Industry - Bloomberg:
The oil industry faces a "crisis of perception" and there’s a growing risk the financial community will turn against fossil fuels, the chief executive officer of Saudi Aramco said as the world’s largest oil producer prepares for its first foray into capital markets.
"There is a worrying and growing belief among policy makers and regulators, investment houses, NGOs, and many others that we are an industry with little or no future," Amin Nasser said in a speech in London on Tuesday, arguing fossil fuels still had a vital role to play in delivering global economic growth.
Other oil industry leaders have expressed similar concerns, but it’s particularly important for Saudi Aramco because it plans to raise tens of billions of dollars from global capital markets in the next three years: tapping the international bond market for the first time this year before moving on to an initial public offering in 2020 or 2021.
The oil industry faces a "crisis of perception" and there’s a growing risk the financial community will turn against fossil fuels, the chief executive officer of Saudi Aramco said as the world’s largest oil producer prepares for its first foray into capital markets.
"There is a worrying and growing belief among policy makers and regulators, investment houses, NGOs, and many others that we are an industry with little or no future," Amin Nasser said in a speech in London on Tuesday, arguing fossil fuels still had a vital role to play in delivering global economic growth.
Other oil industry leaders have expressed similar concerns, but it’s particularly important for Saudi Aramco because it plans to raise tens of billions of dollars from global capital markets in the next three years: tapping the international bond market for the first time this year before moving on to an initial public offering in 2020 or 2021.
Libyans Remain Divided on When to Restart Biggest Oil Field - Bloomberg
Libyans Remain Divided on When to Restart Biggest Oil Field - Bloomberg:
A meeting between Libya’s top oil executive and prime minister in Abu Dhabi ended without a clear agreement on when to restart the country’s biggest oil field.
Tripoli-based Prime Minister Fayez al-Serraj’s office said in a statement that an agreement was reached that could end the halt. Mustafa Sanalla, chairman of Libya’s National Oil Corp., reiterated his position that “force majeure” can’t be lifted until all militants leave the deposit.
The impasse over Sharara, which can pump about 300,000 barrels of crude a day, is entering its third month. NOC insists that it won’t resume production while armed groups are there. The self-styled Libyan National Army, loyal to eastern leader Khalifa Haftar, controls the field and has said it’s ready to restart. The U.A.E. backs Haftar, who is struggling with the internationally recognized government in Tripoli for control in Libya.
A meeting between Libya’s top oil executive and prime minister in Abu Dhabi ended without a clear agreement on when to restart the country’s biggest oil field.
Tripoli-based Prime Minister Fayez al-Serraj’s office said in a statement that an agreement was reached that could end the halt. Mustafa Sanalla, chairman of Libya’s National Oil Corp., reiterated his position that “force majeure” can’t be lifted until all militants leave the deposit.
The impasse over Sharara, which can pump about 300,000 barrels of crude a day, is entering its third month. NOC insists that it won’t resume production while armed groups are there. The self-styled Libyan National Army, loyal to eastern leader Khalifa Haftar, controls the field and has said it’s ready to restart. The U.A.E. backs Haftar, who is struggling with the internationally recognized government in Tripoli for control in Libya.
#SaudiArabia's Almarai set to raise $500mln in sukuk | ZAWYA MENA Edition
Saudi Arabia's Almarai set to raise $500mln in sukuk | ZAWYA MENA Edition:
Saudi Arabian dairy company Almarai2280.SE is set to raise $500 million in sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.
The Gulf’s biggest dairy company is offering investors 180 basis points over mid-swaps for the debt sale, which has received offers of around $5.3 billion, according to the document.
Almarai had hired banks to arrange the issue last year, but the deal, which marks its debut in international debt markets, was delayed because the company faced having to pay a higher interest rate after the murder of Saudi journalist Jamal Khashoggi, banking sources familiar with the matter told Reuters at the time.
Saudi Arabian dairy company Almarai2280.SE is set to raise $500 million in sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed.
The Gulf’s biggest dairy company is offering investors 180 basis points over mid-swaps for the debt sale, which has received offers of around $5.3 billion, according to the document.
Almarai had hired banks to arrange the issue last year, but the deal, which marks its debut in international debt markets, was delayed because the company faced having to pay a higher interest rate after the murder of Saudi journalist Jamal Khashoggi, banking sources familiar with the matter told Reuters at the time.
Nasdaq #Dubai CEO says "a lot more products" to come from FTSE Russell tie-up | ZAWYA MENA Edition
Nasdaq Dubai CEO says "a lot more products" to come from FTSE Russell tie-up | ZAWYA MENA Edition:
The launch of a new FTSE Russell Saudi Arabia Index on Nasdaq Dubai is "the beginning of a partnership" that will lead to the development of many other indices tracking Middle East assets, the exchange's head has said.
Speaking to reporters after the launch of the new index in Dubai on Tuesday morning, Nasdaq Dubai's chief executive, Hamed Ali, said: "There will be a lot more products that come out of this partnership.
“We are going to be looking at different niches and different asset classes where we can benefit from this partnership and the know-how and the intellectual capacity between the two teams,” Ali said.
The launch of a new FTSE Russell Saudi Arabia Index on Nasdaq Dubai is "the beginning of a partnership" that will lead to the development of many other indices tracking Middle East assets, the exchange's head has said.
Speaking to reporters after the launch of the new index in Dubai on Tuesday morning, Nasdaq Dubai's chief executive, Hamed Ali, said: "There will be a lot more products that come out of this partnership.
“We are going to be looking at different niches and different asset classes where we can benefit from this partnership and the know-how and the intellectual capacity between the two teams,” Ali said.
First #AbuDhabi Bank's shareholders approve plan to lift foreign ownership limit | ZAWYA MENA Edition
First Abu Dhabi Bank's shareholders approve plan to lift foreign ownership limit | ZAWYA MENA Edition:
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, said in a statement to the Abu Dhabi Securities Exchange on Tuesday that its shareholders have approved a raise to the bank’s foreign ownership limit.
FAB’s general assembly approved in its meeting an increase to the bank’s foreign ownership limit to 40 percent, up from 25 percent, subject to the Securities and Commodities Authority and other competent authorities’ approval.
“The move should increase FAB’s eight in MSCI and FTSE’s emerging market indices and trigger passive flows into the stock,” Shabbir Malik, banking analyst at EFG-Hermes told Zawya by email.
First Abu Dhabi Bank (FAB), the largest bank in the United Arab Emirates, said in a statement to the Abu Dhabi Securities Exchange on Tuesday that its shareholders have approved a raise to the bank’s foreign ownership limit.
FAB’s general assembly approved in its meeting an increase to the bank’s foreign ownership limit to 40 percent, up from 25 percent, subject to the Securities and Commodities Authority and other competent authorities’ approval.
“The move should increase FAB’s eight in MSCI and FTSE’s emerging market indices and trigger passive flows into the stock,” Shabbir Malik, banking analyst at EFG-Hermes told Zawya by email.
#Bahrain talking to U.S. oil companies about tight oil deal: minister | Reuters
Bahrain talking to U.S. oil companies about tight oil deal: minister | Reuters:
Bahrain is talking to U.S. oil companies with shale oil expertise about developing a huge oil and gas field discovered last year, and hopes to have an interested company by the end of the year, the oil minister said on Tuesday.
Last April Bahrain said it had discovered its largest oil and gas find since 1932 off its west coast, estimated to contain at least 80 billion barrels of tight oil.
The first test well is being drilled now, Oil Minister Sheikh Mohammed bin Khalifa Al Khalifa told Reuters in an interview. “We should have it flowing ... maybe by the end of April.”
Bahrain is talking to U.S. oil companies with shale oil expertise about developing a huge oil and gas field discovered last year, and hopes to have an interested company by the end of the year, the oil minister said on Tuesday.
Last April Bahrain said it had discovered its largest oil and gas find since 1932 off its west coast, estimated to contain at least 80 billion barrels of tight oil.
The first test well is being drilled now, Oil Minister Sheikh Mohammed bin Khalifa Al Khalifa told Reuters in an interview. “We should have it flowing ... maybe by the end of April.”
StanChart gets approval to open unit in #SaudiArabia | Reuters
StanChart gets approval to open unit in Saudi Arabia | Reuters:
Saudi Arabia’s cabinet approved a license for Standard Chartered to open a unit in the kingdom, the state news agency reported on Tuesday.
Under its strategy to wean economy off oil, the Saudi government is seeking to boost private sector participation and is reforming its financial sector to allow more foreign banks to access the kingdom to meet the private sector’s financing needs.
“This will help provide modern banking technology, create more jobs and meet the increasing financing needs in the sector, especially in light of the ambitious plans of Vision 2030,” central bank chief Ahmed al-Kholifey told state TV on Tuesday.
Saudi Arabia’s cabinet approved a license for Standard Chartered to open a unit in the kingdom, the state news agency reported on Tuesday.
Under its strategy to wean economy off oil, the Saudi government is seeking to boost private sector participation and is reforming its financial sector to allow more foreign banks to access the kingdom to meet the private sector’s financing needs.
“This will help provide modern banking technology, create more jobs and meet the increasing financing needs in the sector, especially in light of the ambitious plans of Vision 2030,” central bank chief Ahmed al-Kholifey told state TV on Tuesday.
#Saudi Aramco strives to be ‘top three’ oil trader | Financial Times
Saudi Aramco strives to be ‘top three’ oil trader | Financial Times:
Saudi Aramco has vowed to transform itself into a “top three” oil trader, setting its sights on challenging established players such as BP, Royal Dutch Shell and Vitol.
Amin Nasser, chief executive of the Saudi state giant, said that it planned to be among the biggest traders by 2022 as part of a broader strategy to build a more robust energy company that can withstand market downturns.
“Over the next three years, we should be one of the top three traders. We are increasing year on year,” said Mr Nasser in an interview at Saudi Aramco’s London office, which houses part of its European trading business.
Saudi Aramco has vowed to transform itself into a “top three” oil trader, setting its sights on challenging established players such as BP, Royal Dutch Shell and Vitol.
Amin Nasser, chief executive of the Saudi state giant, said that it planned to be among the biggest traders by 2022 as part of a broader strategy to build a more robust energy company that can withstand market downturns.
“Over the next three years, we should be one of the top three traders. We are increasing year on year,” said Mr Nasser in an interview at Saudi Aramco’s London office, which houses part of its European trading business.
Barclays executive unaware of £320m fees paid to #Qatar | Financial Times
Barclays executive unaware of £320m fees paid to Qatar | Financial Times:
Barclays’ head of sovereign wealth funds at the time of the bank’s emergency capital calls in 2008 knew nothing of an advisory agreement to pay £320m in fees to the Qatari sovereign wealth fund, a court has heard during a landmark fraud trial.
A jury at Southwark Crown Court heard evidence from Gay Huey Evans, the deputy chair of the UK’s accounting watchdog, who in 2008 was tasked by Barclays with developing stronger ties with SWFs. They dominated investing at the time as oil prices rocketed.
She was unaware of services provided by Qatar despite a so-called advisory services agreement with Barclays, according to evidence read on Tuesday by Annabel Darlow QC for the UK’s Serious Fraud Office.
Barclays’ head of sovereign wealth funds at the time of the bank’s emergency capital calls in 2008 knew nothing of an advisory agreement to pay £320m in fees to the Qatari sovereign wealth fund, a court has heard during a landmark fraud trial.
A jury at Southwark Crown Court heard evidence from Gay Huey Evans, the deputy chair of the UK’s accounting watchdog, who in 2008 was tasked by Barclays with developing stronger ties with SWFs. They dominated investing at the time as oil prices rocketed.
She was unaware of services provided by Qatar despite a so-called advisory services agreement with Barclays, according to evidence read on Tuesday by Annabel Darlow QC for the UK’s Serious Fraud Office.
MIDEAST STOCKS- #Dubai hits 3-month high, COMI pressures Egypt | Reuters
MIDEAST STOCKS-Dubai hits 3-month high, COMI pressures Egypt | Reuters:
Dubai shares hit a three-month high on Tuesday as all but one of its real estate firms gained, while Egypt's blue-chip index declined, primarily led by Commercial International Bank (COMI).
The Dubai index rose 0.9 percent to reach its highest in nearly three months. The index, which was one of the world's worst performing markets last year, has risen 6.1 percent year-to-date, mainly triggered by strong fourth-quarter earnings from real estate firms.
Emaar Properties added 2.5 percent in heavy volume and its unit Emaar Development surged 6.8 percent.
Dubai shares hit a three-month high on Tuesday as all but one of its real estate firms gained, while Egypt's blue-chip index declined, primarily led by Commercial International Bank (COMI).
The Dubai index rose 0.9 percent to reach its highest in nearly three months. The index, which was one of the world's worst performing markets last year, has risen 6.1 percent year-to-date, mainly triggered by strong fourth-quarter earnings from real estate firms.
Emaar Properties added 2.5 percent in heavy volume and its unit Emaar Development surged 6.8 percent.
Can Oil Reinvent Itself? Shell's Power Push Divides Investors - Bloomberg
Can Oil Reinvent Itself? Shell's Power Push Divides Investors - Bloomberg:
When a few hundred Royal Dutch Shell Plc shareholders piled into a Methodist church in Westminster for their 2018 annual meeting, they got a lot more than the usual free sandwiches and PowerPoint slides.
As half a dozen pensioner activists hogged the microphones to warn of the dangers of fossil fuels and the merits of renewables, Chief Executive Officer Ben van Beurden gave them a lesson on the risks of Big Oil embracing clean energy.
Turning to Chief Financial Officer Jessica Uhl, he asked her to tell the crowd how she began her career at the company some 15 years ago.
When a few hundred Royal Dutch Shell Plc shareholders piled into a Methodist church in Westminster for their 2018 annual meeting, they got a lot more than the usual free sandwiches and PowerPoint slides.
As half a dozen pensioner activists hogged the microphones to warn of the dangers of fossil fuels and the merits of renewables, Chief Executive Officer Ben van Beurden gave them a lesson on the risks of Big Oil embracing clean energy.
Turning to Chief Financial Officer Jessica Uhl, he asked her to tell the crowd how she began her career at the company some 15 years ago.
Africa’s Oil Hub Woos Global Traders With New Million-Barrel Tanks - Bloomberg
Africa’s Oil Hub Woos Global Traders With New Million-Barrel Tanks - Bloomberg:
What started as a strategic oil storage for South Africa during apartheid is now gearing up to attract the biggest traders as it turns into a global center for crude.
A venture building a dozen new interconnected tanks on Africa’s southern tip will add to neighboring government-owned capacity, making it one of the world’s biggest hubs. They are on some of the busiest energy transit routes, giving traders the option to store and blend various crude grades to help maximize profits at a time earnings have taken a beating.
“The location is key, and then the flexibility is the other main selling point,” said Johnny Stewart, principal analyst at consultant Wood Mackenzie Ltd. The tanks are able to accommodate a wider market with the blending capability and configuration, he said.
The partially underground tanks tucked away in Saldanha Bay are a monument to oil trading. A big advantage is their strategic position between the Atlantic and Indian Oceans, giving merchants relatively easy access to markets in Asia, Europe and America.
What started as a strategic oil storage for South Africa during apartheid is now gearing up to attract the biggest traders as it turns into a global center for crude.
A venture building a dozen new interconnected tanks on Africa’s southern tip will add to neighboring government-owned capacity, making it one of the world’s biggest hubs. They are on some of the busiest energy transit routes, giving traders the option to store and blend various crude grades to help maximize profits at a time earnings have taken a beating.
“The location is key, and then the flexibility is the other main selling point,” said Johnny Stewart, principal analyst at consultant Wood Mackenzie Ltd. The tanks are able to accommodate a wider market with the blending capability and configuration, he said.
The partially underground tanks tucked away in Saldanha Bay are a monument to oil trading. A big advantage is their strategic position between the Atlantic and Indian Oceans, giving merchants relatively easy access to markets in Asia, Europe and America.
Mideast Stocks: Weak oil weighs on #Saudi, developer Emaar aids #Dubai | ZAWYA MENA Edition
Mideast Stocks: Weak oil weighs on Saudi, developer Emaar aids Dubai | ZAWYA MENA Edition:
Saudi Arabia's stock market fell on Tuesday, pressured by its banks amid falling oil prices, while Dubai was supported by gains in its largest listed developer Emaar Properties.
Oil prices fell more than 3 percent overnight after U.S. President Donald Trump called on OPEC to rein in its efforts to boost prices.
Saudi Arabia's index slid 0.3 percent with Riyad Bank losing 2.1 percent and Al Rajhi Bank falling 0.3 percent.
Saudi Arabia's stock market fell on Tuesday, pressured by its banks amid falling oil prices, while Dubai was supported by gains in its largest listed developer Emaar Properties.
Oil prices fell more than 3 percent overnight after U.S. President Donald Trump called on OPEC to rein in its efforts to boost prices.
Saudi Arabia's index slid 0.3 percent with Riyad Bank losing 2.1 percent and Al Rajhi Bank falling 0.3 percent.
#SaudiArabia aims to export 3bln cubic feet/day of gas before 2030 | ZAWYA MENA Edition
Saudi Arabia aims to export 3bln cubic feet/day of gas before 2030 | ZAWYA MENA Edition:
Saudi Aramco's chief executive said on Tuesday that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030, from conventional and non-conventional resources.
Speaking in London, Amin Nasser told reporters that future gas export options would include pipelined gas and liquefied natural gas (LNG) and that Aramco solely would develop the kingdom’s gas assets.
Saudi Aramco's chief executive said on Tuesday that Saudi Arabia aims to export 3 billion cubic feet per day of gas before 2030, from conventional and non-conventional resources.
Speaking in London, Amin Nasser told reporters that future gas export options would include pipelined gas and liquefied natural gas (LNG) and that Aramco solely would develop the kingdom’s gas assets.
Iranian stocks drop 2,000 points on Zarif resignation - IRNA | Reuters
Iranian stocks drop 2,000 points on Zarif resignation - IRNA | Reuters:
Iran’s stock market dropped around 2,000 points on Tuesday on news that Foreign Minister Mohammad Javad Zarif had announced his resignation, the Islamic Republic News Agency (IRNA) reported.
Zarif announced his resignation in an Instagram post on Monday but President Hassan Rouhani did not confirm that he had accepted the resignation.
Iran’s stock market dropped around 2,000 points on Tuesday on news that Foreign Minister Mohammad Javad Zarif had announced his resignation, the Islamic Republic News Agency (IRNA) reported.
Zarif announced his resignation in an Instagram post on Monday but President Hassan Rouhani did not confirm that he had accepted the resignation.
Oil edges up to $65 as OPEC seen rebuffing Trump pressure | Reuters
Oil edges up to $65 as OPEC seen rebuffing Trump pressure | Reuters:
Brent oil edged up to $65 a barrel on Tuesday as Saudi Arabia and the rest of OPEC were expected to stick to their production cuts, despite renewed pressure from U.S. President Donald Trump.
Prices slid on Monday, when many traders were out of the office attending IP Week, a series of industry events in London, after Trump called on OPEC to ease its efforts to boost the oil market. Prices were “getting too high”, the president said.
“Yesterday was a typical price action you see during IP Week when you have a headline,” said Olivier Jakob, oil analyst at Petromatrix. “But I don’t think it will change anything in current OPEC supply policy.”
Brent oil edged up to $65 a barrel on Tuesday as Saudi Arabia and the rest of OPEC were expected to stick to their production cuts, despite renewed pressure from U.S. President Donald Trump.
Prices slid on Monday, when many traders were out of the office attending IP Week, a series of industry events in London, after Trump called on OPEC to ease its efforts to boost the oil market. Prices were “getting too high”, the president said.
“Yesterday was a typical price action you see during IP Week when you have a headline,” said Olivier Jakob, oil analyst at Petromatrix. “But I don’t think it will change anything in current OPEC supply policy.”
UPDATE 1-Emirates Steel expects 2019 slowdown in regional construction | Reuters
UPDATE 1-Emirates Steel expects 2019 slowdown in regional construction | Reuters:
Emirates Steel, the largest steel producer in the United Arab Emirates, expects a slowdown in regional construction in 2019 and rising iron ore prices, its chief executive said on Tuesday.
Growth in the Gulf economies have slowed due to oil output cuts, lower crude prices and weaker global growth.
Emirates Steel produced 3.1 million tonnes of steel in 2018, matching 2017 volumes. About 20 percent of production is exported, most of it going to Gulf states.
Emirates Steel, the largest steel producer in the United Arab Emirates, expects a slowdown in regional construction in 2019 and rising iron ore prices, its chief executive said on Tuesday.
Growth in the Gulf economies have slowed due to oil output cuts, lower crude prices and weaker global growth.
Emirates Steel produced 3.1 million tonnes of steel in 2018, matching 2017 volumes. About 20 percent of production is exported, most of it going to Gulf states.
Monday 25 February 2019
How the shale revolution is reshaping world markets | Financial Times
How the shale revolution is reshaping world markets | Financial Times:
The latest short-term outlook for US oil production published by the Energy Information Administration shows output rising to 13.2m barrels a day by the end of 2020. If this is achieved (and the EIA is traditionally cautious), the US will be the largest producer in the world, by a clear margin over Saudi Arabia and Russia.
Two-thirds of that production will come from “tight oil” — that produced by fracking shale rocks. Ten years after the shale business began, the revolution is as dynamic as ever.
Commentators who said shale was a marginal short-term phenomenon that would be killed off by falling prices, or rapid reservoir depletion, have been proved wrong. What began as a gas play now supplies the US with the bulk of its oil and gas needs.
The latest short-term outlook for US oil production published by the Energy Information Administration shows output rising to 13.2m barrels a day by the end of 2020. If this is achieved (and the EIA is traditionally cautious), the US will be the largest producer in the world, by a clear margin over Saudi Arabia and Russia.
Two-thirds of that production will come from “tight oil” — that produced by fracking shale rocks. Ten years after the shale business began, the revolution is as dynamic as ever.
Commentators who said shale was a marginal short-term phenomenon that would be killed off by falling prices, or rapid reservoir depletion, have been proved wrong. What began as a gas play now supplies the US with the bulk of its oil and gas needs.
#Dubai lessor DAE annual net profit soars 116% - The National
Dubai lessor DAE annual net profit soars 116% - The National:
Dubai Aerospace Enterprise, the Middle East's biggest aircraft lessor, more than doubled its annual profit due to gains from disposal of jets and a rise in revenue-generating fleet.
The Dubai lessor made $372.9 million (Dh1.37 billion) in profit attributable to shareholders in 2018, up from $172.6m the previous year, it said in a statement on Monday. Annual revenue jumped 70 per cent to $1.4bn year-on-year.
"During 2018, we recorded strong financial and operational performance across our businesses," said Firoz Tarapore, chief executive of DAE.
Dubai Aerospace Enterprise, the Middle East's biggest aircraft lessor, more than doubled its annual profit due to gains from disposal of jets and a rise in revenue-generating fleet.
The Dubai lessor made $372.9 million (Dh1.37 billion) in profit attributable to shareholders in 2018, up from $172.6m the previous year, it said in a statement on Monday. Annual revenue jumped 70 per cent to $1.4bn year-on-year.
"During 2018, we recorded strong financial and operational performance across our businesses," said Firoz Tarapore, chief executive of DAE.
Azerbaijan wants stable oil price before any further output cut - The Peninsula Qatar
Azerbaijan wants stable oil price before any further output cut - The Peninsula Qatar:
Azerbaijan, the third-biggest former Soviet oil producer, wants to see stability in oil prices before deciding whether to support any extension of global cuts in crude output, the country's energy minister said.
The Organization of the Petroleum Exporting Countries and several other exporters, including Azerbaijan, are cutting oil production jointly by 1.2 million barrels per day (bpd) in an effort to stabilise oil markets and boost the price of crude.
The current arrangement runs until the end of June and is the subject of further discussion on whether it should be extended into the second half of 2019. For non-OPEC producers, Russia is leading the deal and making the biggest cuts.
Azerbaijan, the third-biggest former Soviet oil producer, wants to see stability in oil prices before deciding whether to support any extension of global cuts in crude output, the country's energy minister said.
The Organization of the Petroleum Exporting Countries and several other exporters, including Azerbaijan, are cutting oil production jointly by 1.2 million barrels per day (bpd) in an effort to stabilise oil markets and boost the price of crude.
The current arrangement runs until the end of June and is the subject of further discussion on whether it should be extended into the second half of 2019. For non-OPEC producers, Russia is leading the deal and making the biggest cuts.
#Qatar shares edge up to cross 10,200 level
Qatar shares edge up to cross 10,200 level:
An across-the-board buying on Monday lifted the Qatar Stock Exchange 37 points to cross the 10,200 level.
Increased buying interests from foreign and domestic institutions led the 20-stock Qatar Index to gain 0.36% to 10,226.69 points.
Gulf individuals’ weakened net profit booking also had its role in the market, whose sensitive index has registered a 0.7% decline year-to-date.
An across-the-board buying on Monday lifted the Qatar Stock Exchange 37 points to cross the 10,200 level.
Increased buying interests from foreign and domestic institutions led the 20-stock Qatar Index to gain 0.36% to 10,226.69 points.
Gulf individuals’ weakened net profit booking also had its role in the market, whose sensitive index has registered a 0.7% decline year-to-date.
Persian Gulf Countries Are Having Their Own Oil Crisis - Bloomberg
Persian Gulf Countries Are Having Their Own Oil Crisis - Bloomberg:
Countries one through four on the list of the world’s biggest oil consumers in 2017 are pretty much who you’d expect them to be — the world’s four biggest economies. 1 No. 5 is something else:
Saudi Arabia has just 33 million people, less than one-fourth as many as Russia, the country just below it on the list. Yes, it’s rich, but its gross domestic product ranks in the high teens worldwide, not fifth. By global standards, then, it clearly uses an inordinate amount of oil.
That amount, though, was actually down in 2017 from the year before. And therein lies a story, one that is told — quite well — in a new book titled “Energy Kingdoms: Oil and Political Survival in the Persian Gulf.” It’s by Jim Krane, a former journalist who is now a fellow at Rice University’s Baker Institute for Public Policy in Houston, and it combines a concise history of the region’s oil and gas boom and its consequences with an illuminating critique of the two main political science theories that have attempted to explain what oil riches mean for the region’s politics.
Countries one through four on the list of the world’s biggest oil consumers in 2017 are pretty much who you’d expect them to be — the world’s four biggest economies. 1 No. 5 is something else:
Saudi Arabia has just 33 million people, less than one-fourth as many as Russia, the country just below it on the list. Yes, it’s rich, but its gross domestic product ranks in the high teens worldwide, not fifth. By global standards, then, it clearly uses an inordinate amount of oil.
That amount, though, was actually down in 2017 from the year before. And therein lies a story, one that is told — quite well — in a new book titled “Energy Kingdoms: Oil and Political Survival in the Persian Gulf.” It’s by Jim Krane, a former journalist who is now a fellow at Rice University’s Baker Institute for Public Policy in Houston, and it combines a concise history of the region’s oil and gas boom and its consequences with an illuminating critique of the two main political science theories that have attempted to explain what oil riches mean for the region’s politics.
OPEC Again Faces Choice Between Trump's Wrath and Oil Slump - Bloomberg
OPEC Again Faces Choice Between Trump's Wrath and Oil Slump - Bloomberg:
It’s becoming a familiar choice for OPEC: risk the pain of an oil-price slump, or provoke the wrath of President Donald Trump.
After another warning on Twitter on Monday to avoid pushing crude higher, Saudi Arabia and fellow Organization of Petroleum Exporting Countries producers again are faced with a dilemma: suffer a market rout that batters their export-dependent economies or defy the president, who could enforce legislation that shakes the group to its foundations.
OPEC and its allies started a new round of output cuts last month to avert a surplus being created by record U.S. shale-oil output and fragile global fuel demand. Crude prices have rallied more than 20 percent this year, an obstacle for Trump while he exerts diplomatic pressure on two major OPEC nations: Iran and Venezuela.
It’s becoming a familiar choice for OPEC: risk the pain of an oil-price slump, or provoke the wrath of President Donald Trump.
After another warning on Twitter on Monday to avoid pushing crude higher, Saudi Arabia and fellow Organization of Petroleum Exporting Countries producers again are faced with a dilemma: suffer a market rout that batters their export-dependent economies or defy the president, who could enforce legislation that shakes the group to its foundations.
OPEC and its allies started a new round of output cuts last month to avert a surplus being created by record U.S. shale-oil output and fragile global fuel demand. Crude prices have rallied more than 20 percent this year, an obstacle for Trump while he exerts diplomatic pressure on two major OPEC nations: Iran and Venezuela.
Rouhani Wants #Iran's Largest Pension Fund Manager Privatized - Bloomberg
Rouhani Wants Iran's Largest Pension Fund Manager Privatized - Bloomberg:
President Hassan Rouhani said the investment arm of Iran’s main social security provider must be privatized as part of a wider effort to scale back inefficient public-sector involvement in the economy.
“The promise I have made to the parliament and people is that next year will be the year of privatization of large companies, including Shasta,” Rouhani said on Monday, according to the state-run Iranian Labour News Agency. The company’s formal name is Social Security Investment Co. Iran’s new calendar year begins March 21.
Shasta has investments in pharmaceuticals, oil and gas, steel and cement. After international sanctions against Iran were lifted in 2016, the company said it was seeking foreign partners to help manage and expand $15 billion of assets in addition to selling stakes in almost half of 120 companies in its portfolio through public offerings or private equity investments.
President Hassan Rouhani said the investment arm of Iran’s main social security provider must be privatized as part of a wider effort to scale back inefficient public-sector involvement in the economy.
“The promise I have made to the parliament and people is that next year will be the year of privatization of large companies, including Shasta,” Rouhani said on Monday, according to the state-run Iranian Labour News Agency. The company’s formal name is Social Security Investment Co. Iran’s new calendar year begins March 21.
Shasta has investments in pharmaceuticals, oil and gas, steel and cement. After international sanctions against Iran were lifted in 2016, the company said it was seeking foreign partners to help manage and expand $15 billion of assets in addition to selling stakes in almost half of 120 companies in its portfolio through public offerings or private equity investments.
#Dubai's SellAnyCar.com hires bank to advise on possible stake sale -sources | Reuters
Dubai's SellAnyCar.com hires bank to advise on possible stake sale -sources | Reuters:
Dubai’s SellAnyCar.com, an online marketplace for used cars, has hired boutique investment bank Evercore to advise the company on strategic options that may include a stake sale, sources told Reuters.
Shareholders will determine the size of the stake after proposals are submitted which are due in the next few weeks, which could be a strategic stake, said two sources, who spoke on conditions of anonymity due to commercial sensitivities.
The company is fundraising to expand and increase the number of products it offers, a third source said.
Dubai’s SellAnyCar.com, an online marketplace for used cars, has hired boutique investment bank Evercore to advise the company on strategic options that may include a stake sale, sources told Reuters.
Shareholders will determine the size of the stake after proposals are submitted which are due in the next few weeks, which could be a strategic stake, said two sources, who spoke on conditions of anonymity due to commercial sensitivities.
The company is fundraising to expand and increase the number of products it offers, a third source said.
UPDATE 2- #Bahrain sees budget deficit falling to $1.6 bln in 2020 | Reuters
UPDATE 2-Bahrain sees budget deficit falling to $1.6 bln in 2020 | Reuters:
Bahrain’s cabinet on Monday approved a draft state budget for the next two years that projects a further reduction in its deficit to reach $1.63 billion by 2020 as part of a fiscal reform programme.
Bahrain, which does not have the vast oil wealth of other Gulf Arab states, last year released a plan to fix its debt-burdened finances after securing a $10 billion Gulf aid pledge. It aims to eliminate its budget deficit by 2022.
The draft forecast spending at 3.25 billion dinars ($8.62 billion) in 2019 and 3.28 billion dinars in 2020. It also announced additional public investments of 670 million dinars in 2019, with an equal amount allocated for 2020.
Bahrain’s cabinet on Monday approved a draft state budget for the next two years that projects a further reduction in its deficit to reach $1.63 billion by 2020 as part of a fiscal reform programme.
Bahrain, which does not have the vast oil wealth of other Gulf Arab states, last year released a plan to fix its debt-burdened finances after securing a $10 billion Gulf aid pledge. It aims to eliminate its budget deficit by 2022.
The draft forecast spending at 3.25 billion dinars ($8.62 billion) in 2019 and 3.28 billion dinars in 2020. It also announced additional public investments of 670 million dinars in 2019, with an equal amount allocated for 2020.
UPDATE 1- #Dubai's Emaar buys remaining 49 pct of website Namshi | Reuters
UPDATE 1-Dubai's Emaar buys remaining 49 pct of website Namshi | Reuters:
Dubai’s Emaar Malls on Monday bought the 49 percent of e-commerce fashion website Namshi it did not own from Global Fashion Group (GFG) for 475.5 million dirhams ($129.5 million).
The owner of Dubai Mall, the Middle East’s largest shopping centre, said it bought the stake in an all-cash transaction.
“We have ambitions throughout the region with Namshi so I think they are going to give us a geographic outreach that we do not have with the Dubai Mall today. So that is fundamental,” Emaar Malls CEO Patrick Bousquet-Chavanne told Reuters.
Dubai’s Emaar Malls on Monday bought the 49 percent of e-commerce fashion website Namshi it did not own from Global Fashion Group (GFG) for 475.5 million dirhams ($129.5 million).
The owner of Dubai Mall, the Middle East’s largest shopping centre, said it bought the stake in an all-cash transaction.
“We have ambitions throughout the region with Namshi so I think they are going to give us a geographic outreach that we do not have with the Dubai Mall today. So that is fundamental,” Emaar Malls CEO Patrick Bousquet-Chavanne told Reuters.
Oil slumps 3 percent after Trump again criticizes OPEC | Reuters
Oil slumps 3 percent after Trump again criticizes OPEC | Reuters:
Oil futures tumbled 3 percent on Monday after U.S. President Donald Trump called for OPEC to “relax and take it easy” on boosting crude prices, which he said were climbing too high.
Brent crude oil futures were down $2.03 at $65.09 a barrel by 11:20 a.m. EST (1620 GMT). West Texas Intermediate (WTI) crude futures fell $1.73 to $55.53 a barrel.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!” Trump tweeted, his latest in a series of tweets or comments made regarding oil prices since April 2018.
Oil futures tumbled 3 percent on Monday after U.S. President Donald Trump called for OPEC to “relax and take it easy” on boosting crude prices, which he said were climbing too high.
Brent crude oil futures were down $2.03 at $65.09 a barrel by 11:20 a.m. EST (1620 GMT). West Texas Intermediate (WTI) crude futures fell $1.73 to $55.53 a barrel.
“Oil prices getting too high. OPEC, please relax and take it easy. World cannot take a price hike - fragile!” Trump tweeted, his latest in a series of tweets or comments made regarding oil prices since April 2018.
MIDEAST STOCKS-Blue-chip banks pressure Saudi, property stocks impede Dubai | Reuters
MIDEAST STOCKS-Blue-chip banks pressure Saudi, property stocks impede Dubai | Reuters:
Saudi Arabia's stock market fell on Monday as most of its blue-chip bank shares slid, while Dubai snapped an eight-day winning streak, pulled down by its real estate stocks.
Saudi Arabia's index decreased 0.9 percent with Al Rajhi Bank falling 0.6 percent and Riyad Bank losing 3.1 percent.
The Saudi market is consolidating after a strong rally last month due to an increase in foreign fund flows ahead of the market's inclusion in key emerging market benchmarks later this year. The index is up nearly 8 percent year to date.
Saudi Arabia's stock market fell on Monday as most of its blue-chip bank shares slid, while Dubai snapped an eight-day winning streak, pulled down by its real estate stocks.
Saudi Arabia's index decreased 0.9 percent with Al Rajhi Bank falling 0.6 percent and Riyad Bank losing 3.1 percent.
The Saudi market is consolidating after a strong rally last month due to an increase in foreign fund flows ahead of the market's inclusion in key emerging market benchmarks later this year. The index is up nearly 8 percent year to date.
First Abu Dhabi Bank plans to issue $2 to $4 bln in bonds in 2019- exec | ZAWYA MENA Edition
First Abu Dhabi Bank plans to issue $2 to $4 bln in bonds in 2019- exec | ZAWYA MENA Edition:
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates, plans to issue $2 billion to $4 billion in bonds in 2019, the group chief financial officer said on Monday.
James Burdett told reporters that the bank expects high single-digit loan growth in 2019, while the bank's profit will be in the mid-single digit range after it reported a 10 percent rise in annual profit in 2018.
First Abu Dhabi Bank, the biggest lender in the United Arab Emirates, plans to issue $2 billion to $4 billion in bonds in 2019, the group chief financial officer said on Monday.
James Burdett told reporters that the bank expects high single-digit loan growth in 2019, while the bank's profit will be in the mid-single digit range after it reported a 10 percent rise in annual profit in 2018.
#UAE's Gulf Capital plans five private equity deals in 2019- CEO | ZAWYA MENA Edition
UAE's Gulf Capital plans five private equity deals in 2019- CEO | ZAWYA MENA Edition:
Abu Dhabi-based buyout firm Gulf Capital is planning a least five new private equity deals this year, with two new deals to be announced in the next two months, its chief executive said.
With $3 billion in assets under management, Gulf Capital is one of the largest private equity players in the Middle East North Africa region.
“We will soon announce an exit transaction in healthcare which we are working on… probably in two months,” Karim El-Solh, CEO of Gulf Capital, told Zawya at the sidelines of a conference in Abu Dhabi last week.
Abu Dhabi-based buyout firm Gulf Capital is planning a least five new private equity deals this year, with two new deals to be announced in the next two months, its chief executive said.
With $3 billion in assets under management, Gulf Capital is one of the largest private equity players in the Middle East North Africa region.
“We will soon announce an exit transaction in healthcare which we are working on… probably in two months,” Karim El-Solh, CEO of Gulf Capital, told Zawya at the sidelines of a conference in Abu Dhabi last week.
COLUMN-Hedge funds bet cautiously on even higher oil prices: Kemp | Reuters
COLUMN-Hedge funds bet cautiously on even higher oil prices: Kemp | Reuters:
Hedge funds added more bullish positions in crude and fuels in the most recent week in the expectation that positive trade talks between the United States and China would keep the global economy expanding.
Saudi Arabia’s substantial output cuts and U.S. sanctions on Iran and Venezuela also are restricting crude supplies and helping eliminate a previously expected surplus in the market in 2019.
Hedge funds and other money managers were net buyers of Brent crude futures and options equivalent to 9 million barrels in the week to Feb. 19, data from ICE Futures Europe showed.
Hedge funds added more bullish positions in crude and fuels in the most recent week in the expectation that positive trade talks between the United States and China would keep the global economy expanding.
Saudi Arabia’s substantial output cuts and U.S. sanctions on Iran and Venezuela also are restricting crude supplies and helping eliminate a previously expected surplus in the market in 2019.
Hedge funds and other money managers were net buyers of Brent crude futures and options equivalent to 9 million barrels in the week to Feb. 19, data from ICE Futures Europe showed.
Evening Standard investor unveiled as #Saudi businessman | Media | The Guardian
Evening Standard investor unveiled as Saudi businessman | Media | The Guardian:
The mysterious off-shore purchaser of a stake in the Evening Standard newspaper has been unveiled as a Saudi businessman with ties to the country’s state-owned bank.
Sultan Mohamed Abuljadayel bought a third of the news outlet’s parent company from Evgeny Lebedev, son of a Russia oligarch, for £25m at the end of last year, according to the FT. A spokesperson for the Evening Standard did not dispute that Abuljadayel was behind the purchase, which was made through a company registered in the Cayman Islands.
The confirmation of Saudi investment in London’s main newspaper, edited by the former Conservative chancellor George Osborne and distributes 860,000 copies a day for free across the capital, comes as scrutiny is growing of Middle Eastern investments in British media outlets.
The mysterious off-shore purchaser of a stake in the Evening Standard newspaper has been unveiled as a Saudi businessman with ties to the country’s state-owned bank.
Sultan Mohamed Abuljadayel bought a third of the news outlet’s parent company from Evgeny Lebedev, son of a Russia oligarch, for £25m at the end of last year, according to the FT. A spokesperson for the Evening Standard did not dispute that Abuljadayel was behind the purchase, which was made through a company registered in the Cayman Islands.
The confirmation of Saudi investment in London’s main newspaper, edited by the former Conservative chancellor George Osborne and distributes 860,000 copies a day for free across the capital, comes as scrutiny is growing of Middle Eastern investments in British media outlets.
Foreigners Slow #Saudi Share Spree Even as Index Upgrade Nears - Bloomberg
Foreigners Slow Saudi Share Spree Even as Index Upgrade Nears - Bloomberg:
Foreign investors are slowing the pace at which they are buying Saudi stocks, even as the kingdom’s inclusion in major emerging-markets benchmarks lies just around the corner.
Foreign investors were net buyers of about 443 million riyals ($118 million) in Saudi shares last week, a drop of 47 percent from the previous five days and the second straight week of slower purchases. Analysts and traders are closely monitoring the appetite for the country’s shares as they are about to begin to be included in emerging-market benchmarks compiled by FTSE Russell and MSCI Inc. next month and in June, respectively.
As investors anticipate purchases before the upgrades, some emerging-markets money managers view Saudi stock valuations as too high compared with the category they’re about to join. In January, the Tadawul All Share Index reached the most expensive level relative to the MSCI Emerging Markets Index since 2015, when measured using estimated price-to-earnings in the next 12 months.
Foreign investors are slowing the pace at which they are buying Saudi stocks, even as the kingdom’s inclusion in major emerging-markets benchmarks lies just around the corner.
Foreign investors were net buyers of about 443 million riyals ($118 million) in Saudi shares last week, a drop of 47 percent from the previous five days and the second straight week of slower purchases. Analysts and traders are closely monitoring the appetite for the country’s shares as they are about to begin to be included in emerging-market benchmarks compiled by FTSE Russell and MSCI Inc. next month and in June, respectively.
As investors anticipate purchases before the upgrades, some emerging-markets money managers view Saudi stock valuations as too high compared with the category they’re about to join. In January, the Tadawul All Share Index reached the most expensive level relative to the MSCI Emerging Markets Index since 2015, when measured using estimated price-to-earnings in the next 12 months.
Saudi Bonds Look Fairly Priced, Emirates NBD's Yadav Says – Bloomberg
Saudi Bonds Look Fairly Priced, Emirates NBD's Yadav Says – Bloomberg:
Anita Yadav, the head of fixed-income research at Emirates NBD PJSC, talks about Oman and Saudi Arabian bonds. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Anita Yadav, the head of fixed-income research at Emirates NBD PJSC, talks about Oman and Saudi Arabian bonds. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil dips amid record U.S. exports, but trade talk hopes offer some support | Reuters
Oil dips amid record U.S. exports, but trade talk hopes offer some support | Reuters:
Oil prices dipped on Monday, dragged down by plentiful supply as U.S. exports soar and compete with traditional producers from the Middle East in key markets such as Asia.
But markets were supported by optimism that Washington and Beijing would soon resolve a series of trade disputes that have dented global economic growth, analysts said.
International Brent crude oil futures were at $66.94 a barrel at 0747 GMT, down 18 cents, or 0.3 percent, from their last close. They ended Friday little changed after touching their highest since Nov. 16 at $67.73 a barrel.
Oil prices dipped on Monday, dragged down by plentiful supply as U.S. exports soar and compete with traditional producers from the Middle East in key markets such as Asia.
But markets were supported by optimism that Washington and Beijing would soon resolve a series of trade disputes that have dented global economic growth, analysts said.
International Brent crude oil futures were at $66.94 a barrel at 0747 GMT, down 18 cents, or 0.3 percent, from their last close. They ended Friday little changed after touching their highest since Nov. 16 at $67.73 a barrel.
Goldman Sachs says near-term oil view modestly bullish on tightening market | Reuters
Goldman Sachs says near-term oil view modestly bullish on tightening market | Reuters:
The near-term outlook for oil is modestly bullish as the market continues to tighten significantly, Goldman Sachs said on Monday, helped by the impact of output cuts by producers in the Organization of Petroleum Export Countries (OPEC) and Russia.
The upside potential for benchmark Brent crude prices exceeds the near-term outlook of $67.50/bbl and could easily trade between $70 and $75 per barrel, the U.S. bank said in a research note.
OPEC and its allies, including Russia, agreed in December to cut oil production steeply under a global supply deal to prevent a glut this year.
The near-term outlook for oil is modestly bullish as the market continues to tighten significantly, Goldman Sachs said on Monday, helped by the impact of output cuts by producers in the Organization of Petroleum Export Countries (OPEC) and Russia.
The upside potential for benchmark Brent crude prices exceeds the near-term outlook of $67.50/bbl and could easily trade between $70 and $75 per barrel, the U.S. bank said in a research note.
OPEC and its allies, including Russia, agreed in December to cut oil production steeply under a global supply deal to prevent a glut this year.
Mideast Stocks: Real estate halts #Dubai's momentum, banks pressure #Saudi | ZAWYA MENA Edition
Mideast Stocks: Real estate halts Dubai's momentum, banks pressure Saudi | ZAWYA MENA Edition:
Dubai's stock market inched down in early trading on Monday, ending an eight day winning streak, while Saudi Arabia was pulled down by its banks.
The Dubai index edged 0.1 percent lower, with Emaar Malls shedding 2.2 percent and Aramex declining 1.8 percent.
Dubai snapped its longest stretch of gains since Jan 2018, mainly triggered by strong fourth-quarter earnings from real estate firms.
Dubai's stock market inched down in early trading on Monday, ending an eight day winning streak, while Saudi Arabia was pulled down by its banks.
The Dubai index edged 0.1 percent lower, with Emaar Malls shedding 2.2 percent and Aramex declining 1.8 percent.
Dubai snapped its longest stretch of gains since Jan 2018, mainly triggered by strong fourth-quarter earnings from real estate firms.
Sunday 24 February 2019
Sovereign borrowing in MENA to soar to $136bn in 2019: S&P
Sovereign borrowing in MENA to soar to $136bn in 2019: S&P:
Sovereign borrowing by 13 states in the Middle East and North Africa is set to rise by 20 percent this year, as states look to refinance long-term debt and cover fiscal deficits, a report by S&P Global Ratings found.
The countries’ long-term borrowing is estimated to hit about $136 billion in 2019 compared with $109 billion in 2018, when issuances fell by 38 percent, the ratings agency said.
Countries covered by the report include Saudi Arabia, Egypt, Lebanon, Kuwait and Morocco.
Sovereign borrowing by 13 states in the Middle East and North Africa is set to rise by 20 percent this year, as states look to refinance long-term debt and cover fiscal deficits, a report by S&P Global Ratings found.
The countries’ long-term borrowing is estimated to hit about $136 billion in 2019 compared with $109 billion in 2018, when issuances fell by 38 percent, the ratings agency said.
Countries covered by the report include Saudi Arabia, Egypt, Lebanon, Kuwait and Morocco.
Why #SaudiArabia is tilting East | Arab News
Why Saudi Arabia is tilting East | Arab News:
The ineluctable process of what a wise man called “easternization” continued with the visit of Saudi Crown Prince Mohammed bin Salman to three of Asia’s biggest economies. But it would be a mistake to see it as a reaction to any perceived hiccup in relations between the Kingdom and the West.
In truth, the tilt of the global economy toward the fast-growing economies of Asia has been an unstoppable force in the world since Deng Xiaoping, the former president of China, opened up the country to entrepreneurial capitalism at the end of the 1980s.
It was given a huge impetus in 2008, when the global financial crisis made many in the eastern hemisphere realize that perhaps the old ways of the West were not the best for the world economy. There were other economic models that could be adopted, and they were already in effective service in the fast-growing economies of Asia.
The ineluctable process of what a wise man called “easternization” continued with the visit of Saudi Crown Prince Mohammed bin Salman to three of Asia’s biggest economies. But it would be a mistake to see it as a reaction to any perceived hiccup in relations between the Kingdom and the West.
In truth, the tilt of the global economy toward the fast-growing economies of Asia has been an unstoppable force in the world since Deng Xiaoping, the former president of China, opened up the country to entrepreneurial capitalism at the end of the 1980s.
It was given a huge impetus in 2008, when the global financial crisis made many in the eastern hemisphere realize that perhaps the old ways of the West were not the best for the world economy. There were other economic models that could be adopted, and they were already in effective service in the fast-growing economies of Asia.
Libor scandal lessons unleash volatility in #UAE’s bank rate
Libor scandal lessons unleash volatility in UAE’s bank rate:
The UAE wanted to inoculate its banking benchmark against manipulation after Europe’s rate-rigging scandal.
The result: a lending reference rate so volatile it’s a challenge to derivatives traders. Under the new method implemented last year, the Gulf state’s central bank gives priority to data from actual executed transactions between lenders and large companies. Previously it relied largely on estimates to determine the rates they would charge each other for short-term loans.
The Emirates Interbank Offered Rate underpins many dirham-denominated loans and is also a benchmark for derivative products such as swaps, used to hedge against floating interest rates. After the changes, the Opec’s third-biggest producer ended up with an official reference rate whose spread over Libor has swung in the past month from eight basis points to minus 22, according to data compiled by Bloomberg.
The UAE wanted to inoculate its banking benchmark against manipulation after Europe’s rate-rigging scandal.
The result: a lending reference rate so volatile it’s a challenge to derivatives traders. Under the new method implemented last year, the Gulf state’s central bank gives priority to data from actual executed transactions between lenders and large companies. Previously it relied largely on estimates to determine the rates they would charge each other for short-term loans.
The Emirates Interbank Offered Rate underpins many dirham-denominated loans and is also a benchmark for derivative products such as swaps, used to hedge against floating interest rates. After the changes, the Opec’s third-biggest producer ended up with an official reference rate whose spread over Libor has swung in the past month from eight basis points to minus 22, according to data compiled by Bloomberg.
Rise of Shale Oil and OPEC Cuts Leave Supertankers Empty - Bloomberg
Rise of Shale Oil and OPEC Cuts Leave Supertankers Empty - Bloomberg:
Supertankers hauling seawater across the Atlantic? That's just one of the odder results of the U.S. shale boom.
Crude oil has always flowed backwards and forwards across the world’s oceans. A typical voyage by one of the global fleet of around 750 of the giant ships currently in service might see it haul Middle Eastern exports across the Atlantic to a refinery on the U.S. Gulf coast, then pick up a cargo from Venezuela for delivery to China or India, before returning to the Persian Gulf.
Vessels only earn money when they’re full, so being able to haul cargoes in both directions across the seas makes a great deal of sense for ship owners. But soaring U.S. production, OPEC output cuts and sanctions on Iran and Venezuela are turning the global crude oil trade on its head.
Supertankers hauling seawater across the Atlantic? That's just one of the odder results of the U.S. shale boom.
Crude oil has always flowed backwards and forwards across the world’s oceans. A typical voyage by one of the global fleet of around 750 of the giant ships currently in service might see it haul Middle Eastern exports across the Atlantic to a refinery on the U.S. Gulf coast, then pick up a cargo from Venezuela for delivery to China or India, before returning to the Persian Gulf.
Vessels only earn money when they’re full, so being able to haul cargoes in both directions across the seas makes a great deal of sense for ship owners. But soaring U.S. production, OPEC output cuts and sanctions on Iran and Venezuela are turning the global crude oil trade on its head.
#Dubai Stocks Cross Resistance Level Held For a Year: Inside EM - Bloomberg
Dubai Stocks Cross Resistance Level Held For a Year: Inside EM - Bloomberg:
Dubai’s main stock index ended Sunday’s session above a resistance level that it had held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It has crossed above its 100-day moving average for the first time since Jan. 18, 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
Dubai’s main stock index ended Sunday’s session above a resistance level that it had held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It has crossed above its 100-day moving average for the first time since Jan. 18, 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
#Saudi Prince Shows Grip on Power, Names First Female U.S. Envoy - Bloomberg
Saudi Prince Shows Grip on Power, Names First Female U.S. Envoy - Bloomberg:
Saudi Crown Prince Mohammed bin Salman solidified his immediate family’s sway by promoting his full brother and tried to turn the page on relations with the U.S. by appointing the kingdom’s first female ambassador to America.
Princess Reema bint Bandar bin Sultan will replace Prince Khalid bin Salman, who was named vice defense minister. The decision to pick the daughter of a longtime Saudi envoy in Washington suggests the government is trying to soften its image at a time of tense relations with Congress over the murder of Saudi insider-turned-critic Jamal Khashoggi as well as outrage over the arrest of women activists and Yemen’s humanitarian crisis.
The royal order announcing the appointments was made late on Saturday by the crown prince, who is also the defense minister, on behalf of King Salman.
Saudi Crown Prince Mohammed bin Salman solidified his immediate family’s sway by promoting his full brother and tried to turn the page on relations with the U.S. by appointing the kingdom’s first female ambassador to America.
Princess Reema bint Bandar bin Sultan will replace Prince Khalid bin Salman, who was named vice defense minister. The decision to pick the daughter of a longtime Saudi envoy in Washington suggests the government is trying to soften its image at a time of tense relations with Congress over the murder of Saudi insider-turned-critic Jamal Khashoggi as well as outrage over the arrest of women activists and Yemen’s humanitarian crisis.
The royal order announcing the appointments was made late on Saturday by the crown prince, who is also the defense minister, on behalf of King Salman.
INTERVIEW: #Saudi grocery retailer BinDawood Group expanding aggressively - CEO | ZAWYA MENA Edition
INTERVIEW: Saudi grocery retailer BinDawood Group expanding aggressively - CEO | ZAWYA MENA Edition:
Saudi Arabia’s BinDawood Group, the owner of the Danube & BinDawood supermarket brands, is gearing up for an aggressive online and offline expansion within the kingdom, and is also looking at opportunities to grow physical stores beyond the Saudi borders, the group’s chief executive has told Zawya.
Despite the fact that many physical retail companies are struggling worldwide, BinDawood Group’s CEO Ahmad A.R. BinDawood believes that there is still room for traditional retail to grow, especially in Saudi Arabia, where the lifting of the ban on women driving ‘offers a rare opportunity for Saudi retailers’.
And while the CEO expects a minimal negative impact from a combination of last year’s value-added tax, the introduction of expat dependents’ fees and a Saudisation drive in retail, he believes this could play into the hands of stronger companies, with more consolidation in the sector anticipated in 2019, especially among small retailers in the kingdom.
Saudi Arabia’s BinDawood Group, the owner of the Danube & BinDawood supermarket brands, is gearing up for an aggressive online and offline expansion within the kingdom, and is also looking at opportunities to grow physical stores beyond the Saudi borders, the group’s chief executive has told Zawya.
Despite the fact that many physical retail companies are struggling worldwide, BinDawood Group’s CEO Ahmad A.R. BinDawood believes that there is still room for traditional retail to grow, especially in Saudi Arabia, where the lifting of the ban on women driving ‘offers a rare opportunity for Saudi retailers’.
And while the CEO expects a minimal negative impact from a combination of last year’s value-added tax, the introduction of expat dependents’ fees and a Saudisation drive in retail, he believes this could play into the hands of stronger companies, with more consolidation in the sector anticipated in 2019, especially among small retailers in the kingdom.
#Dubai tourism grows marginally in 2018, China tourists up 12 percent: data | Reuters
Dubai tourism grows marginally in 2018, China tourists up 12 percent: data | Reuters:
Gulf tourism hub Dubai had 15.92 million overnight tourist visitors in 2018, up 0.8 percent from 2017, official data showed on Sunday, with tourist numbers from China rose 12 percent.
The number of visitors from Nigeria soared 36 percent.
Gulf tourism hub Dubai had 15.92 million overnight tourist visitors in 2018, up 0.8 percent from 2017, official data showed on Sunday, with tourist numbers from China rose 12 percent.
The number of visitors from Nigeria soared 36 percent.
REFILE-MIDEAST STOCKS- #Dubai hits 2-month high, #Saudi hurt by financials | Reuters
REFILE-MIDEAST STOCKS-Dubai hits 2-month high, Saudi hurt by financials | Reuters:
Dubai stocks rose to a more than 2-month high on Sunday after falling in the previous session, helped by strong gains in property stocks, while financials weighed on both the Saudi and Qatari markets.
Dubai's index was up 1.3 percent, supported by Emaar Properties, which gained 3.2 percent, DAMAC Properties surged 8.4 percent and Emaar Malls rose 5.1 percent.
Emirates NBD Bank fell 5.3 percent after the bank last week announced it has received approval from its shareholders to issue new shares.
Dubai stocks rose to a more than 2-month high on Sunday after falling in the previous session, helped by strong gains in property stocks, while financials weighed on both the Saudi and Qatari markets.
Dubai's index was up 1.3 percent, supported by Emaar Properties, which gained 3.2 percent, DAMAC Properties surged 8.4 percent and Emaar Malls rose 5.1 percent.
Emirates NBD Bank fell 5.3 percent after the bank last week announced it has received approval from its shareholders to issue new shares.
#Dubai Stocks Poised to End Above Resistance Level: Inside EM - Bloomberg
Dubai Stocks Poised to End Above Resistance Level: Inside EM - Bloomberg:
Dubai’s main stock index is poised to end above a resistance level that it has held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It was poised to finish above its 100-day moving average for the first time since early 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
Dubai’s main stock index is poised to end above a resistance level that it has held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It was poised to finish above its 100-day moving average for the first time since early 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
#UAE's ADNOC seals $4 billion pipeline infrastructure deal with KKR, BlackRock | Reuters
UAE's ADNOC seals $4 billion pipeline infrastructure deal with KKR, BlackRock | Reuters:
Abu Dhabi National Oil Company (ADNOC) has sealed a $4 billion midstream pipeline infrastructure deal with U.S. investment firms KKR and BlackRock, the Abu Dhabi government owned company said on Sunday.
A new entity called ADNOC Oil Pipelines will lease the oil firm’s interest in 18 pipelines, transporting crude oil and condensates across Adnoc’s offshore and onshore upstream concessions for a 23-year period, ADNOC said in a statement.
Funds managed by KKR and BlackRock will form a consortium to hold a 40 percent stake in the entity with ADNOC owning the remainder. ADNOC will have sovereignty over the pipelines and management of pipeline operations.
Abu Dhabi National Oil Company (ADNOC) has sealed a $4 billion midstream pipeline infrastructure deal with U.S. investment firms KKR and BlackRock, the Abu Dhabi government owned company said on Sunday.
A new entity called ADNOC Oil Pipelines will lease the oil firm’s interest in 18 pipelines, transporting crude oil and condensates across Adnoc’s offshore and onshore upstream concessions for a 23-year period, ADNOC said in a statement.
Funds managed by KKR and BlackRock will form a consortium to hold a 40 percent stake in the entity with ADNOC owning the remainder. ADNOC will have sovereignty over the pipelines and management of pipeline operations.
UPDATE 1- #Saudi c.bank governor says does not see more bank mergers | Reuters
UPDATE 1-Saudi c.bank governor says does not see more bank mergers | Reuters:
Saudi Arabia’s central bank does not see more bank mergers for the time being beyond those already announced, its governor Ahmed al-Kholifey said on Sunday.
His comments came after National Commercial Bank, the kingdom’s biggest lender by assets, and Riyad Bank said in December they had begun preliminary talks to potentially create a combined group with $183 billion in assets.
That move came two months after Saudi British Bank (SABB) and smaller rival Alawwal Bank agreed a binding deal to create Saudi Arabia’s third-biggest lender in the first major tie-up for the country’s banking sector in recent times.
Saudi Arabia’s central bank does not see more bank mergers for the time being beyond those already announced, its governor Ahmed al-Kholifey said on Sunday.
His comments came after National Commercial Bank, the kingdom’s biggest lender by assets, and Riyad Bank said in December they had begun preliminary talks to potentially create a combined group with $183 billion in assets.
That move came two months after Saudi British Bank (SABB) and smaller rival Alawwal Bank agreed a binding deal to create Saudi Arabia’s third-biggest lender in the first major tie-up for the country’s banking sector in recent times.
MIDEAST STOCKS- #Dubai lifted by Emaar Properties, #Saudi hurt by banks | Reuters
MIDEAST STOCKS-Dubai lifted by Emaar Properties, Saudi hurt by banks | Reuters:
Dubai stocks rebounded on Sunday after falling in the previous session, helped by strong gains in market heavyweight Emaar Properties, while financials weighed on both the Saudi and Qatari markets.
Dubai’s index was up 0.4 percent, supported by Emaar Properties, which gained 2.6 percent.
Property firms have led a recent rally after signs of recovery in their fourth-quarter results and more construction contracts. However they remain vulnerable to falling property prices.
Dubai stocks rebounded on Sunday after falling in the previous session, helped by strong gains in market heavyweight Emaar Properties, while financials weighed on both the Saudi and Qatari markets.
Dubai’s index was up 0.4 percent, supported by Emaar Properties, which gained 2.6 percent.
Property firms have led a recent rally after signs of recovery in their fourth-quarter results and more construction contracts. However they remain vulnerable to falling property prices.
Saturday 23 February 2019
Debt settlement fund exempts 3,310 Emiratis
Debt settlement fund exempts 3,310 Emiratis:
The debt settlement fund in the UAE has announced the exemption of 3,310 Emiratis from their debt in cooperation with 13 local banks, the state news agency WAM announced on Saturday.
Jaber Mohammed Al-Suwaidi, Director General of Abu Dhabi Crown Prince's Court, Chairman of the Higher Committee for the Treatment of Distressed Debt, said this initiative comes within the framework of the keen leadership of the United Arab Emirates to secure the living conditions of citizens and their interest in enhancing their family stability.
He explained that the initiative is particularly important to coincide with the "Year of Tolerance" announced by His Highness Shaikh Khalifa Bin Zayed Al Nahyan, President of the UAE.
The debt settlement fund in the UAE has announced the exemption of 3,310 Emiratis from their debt in cooperation with 13 local banks, the state news agency WAM announced on Saturday.
Jaber Mohammed Al-Suwaidi, Director General of Abu Dhabi Crown Prince's Court, Chairman of the Higher Committee for the Treatment of Distressed Debt, said this initiative comes within the framework of the keen leadership of the United Arab Emirates to secure the living conditions of citizens and their interest in enhancing their family stability.
He explained that the initiative is particularly important to coincide with the "Year of Tolerance" announced by His Highness Shaikh Khalifa Bin Zayed Al Nahyan, President of the UAE.
‘White knight’ investors rescue #Dubai’s distressed projects
‘White knight’ investors rescue Dubai’s distressed projects:
“White knights” are again getting active in Dubai’s real estate market, picking up distressed plots and projects and trying to make them viable again.
Such investors are also providing a much-needed safety net to the wider market, ensuring that delayed or shelved projects — and the ensuing angry property buyers who have put money into these — are as few as possible.
Dubai’s real estate authorities are also doing their bit by signing off on the revival plans as soon as the new investor manages to clear all payments and other legal obligations on the distressed asset. There is a review process underway to “expedite revival of stalled projects, and this could lead to renewed interest in distressed projects,” one source said.
“White knights” are again getting active in Dubai’s real estate market, picking up distressed plots and projects and trying to make them viable again.
Such investors are also providing a much-needed safety net to the wider market, ensuring that delayed or shelved projects — and the ensuing angry property buyers who have put money into these — are as few as possible.
Dubai’s real estate authorities are also doing their bit by signing off on the revival plans as soon as the new investor manages to clear all payments and other legal obligations on the distressed asset. There is a review process underway to “expedite revival of stalled projects, and this could lead to renewed interest in distressed projects,” one source said.
Shareholders of India’s Jet Airways approve debt-for-equity swap
Shareholders of India’s Jet Airways approve debt-for-equity swap:
India’s Jet Airways said late on Friday that its shareholders approved a plan to convert existing debt to equity, paving the way for the troubled company’s lenders to infuse funds and nominate directors to its board.
Jet’s board last week approved a plan by lenders, led by State Bank of India, for an equity infusion, debt restructuring and the sale or sale-and-lease-back of aircraft.
The plan will mean the lenders will have a bigger holding than any other shareholder.
India’s Jet Airways said late on Friday that its shareholders approved a plan to convert existing debt to equity, paving the way for the troubled company’s lenders to infuse funds and nominate directors to its board.
Jet’s board last week approved a plan by lenders, led by State Bank of India, for an equity infusion, debt restructuring and the sale or sale-and-lease-back of aircraft.
The plan will mean the lenders will have a bigger holding than any other shareholder.
The week in energy: #SaudiArabia’s nuclear ambitions | Financial Times
The week in energy: Saudi Arabia’s nuclear ambitions | Financial Times:
It was the US that started Iran’s nuclear programme in the 1950s, providing Mohammad Reza Shah Pahlavi with the country’s first research reactor and the enriched uranium needed to fuel it. The intention was always to support a civil rather than a military programme, and both the Ford and Carter administrations sought to stop the Shah acquiring nuclear weapons. But the US remained prepared to help him develop reactors for electricity generation, provided concerns about the risks of proliferation could be assuaged. In 1976, US utilities even used the Iranian nuclear programme in adverts to make the case for investment in new reactors at home. “The Shah of Iran is sitting on top of one of the largest reservoirs of oil in the world. Yet he’s building two nuclear plants,” the text read. “He knows the oil is running out — and time with it.” The US and Iran eventually reached an agreement that satisfied the Carter administration’s concerns in 1978, but the Shah’s downfall in the Iranian revolution the following year brought nuclear co-operation to a halt.
It was the US that started Iran’s nuclear programme in the 1950s, providing Mohammad Reza Shah Pahlavi with the country’s first research reactor and the enriched uranium needed to fuel it. The intention was always to support a civil rather than a military programme, and both the Ford and Carter administrations sought to stop the Shah acquiring nuclear weapons. But the US remained prepared to help him develop reactors for electricity generation, provided concerns about the risks of proliferation could be assuaged. In 1976, US utilities even used the Iranian nuclear programme in adverts to make the case for investment in new reactors at home. “The Shah of Iran is sitting on top of one of the largest reservoirs of oil in the world. Yet he’s building two nuclear plants,” the text read. “He knows the oil is running out — and time with it.” The US and Iran eventually reached an agreement that satisfied the Carter administration’s concerns in 1978, but the Shah’s downfall in the Iranian revolution the following year brought nuclear co-operation to a halt.
The Next Shale Fracker Revolution Has Begun - Bloomberg
The Next Shale Fracker Revolution Has Begun - Bloomberg:
Successful revolutions must eventually grapple with the question of what to do with that success. The shale revolution is grappling with that right now.
Two veteran shale executives, Tim Dove and Floyd Wilson, have just stepped down from the top jobs at Pioneer Natural Resources Co. and Halcón Resources Corp., respectively. Dove had set a goal of quadrupling Pioneer’s output to 1 million barrels of oil equivalent within a decade, but the spending required has started to grate on investors. Wilson, meanwhile, sold his old company, Petrohawk Energy Corp. to BHP Group Plc (who eventually sold it onto BP Plc after some unhappy times), and then launched Halcón, which lost money, saw its stock collapse, and wound up drawing the attentions of an activist fund.
And that was just overnight. On Friday morning, another activist, Kimmeridge Energy Management Co., announced it had taken a stake in PDC Energy Inc., an exploration and production company with operations in Colorado and Texas. Kimmeridge wants PDC to overhaul its financial priorities, costs, governance and maybe, given the line about “considering all strategic alternatives,” its entire identity.
Successful revolutions must eventually grapple with the question of what to do with that success. The shale revolution is grappling with that right now.
Two veteran shale executives, Tim Dove and Floyd Wilson, have just stepped down from the top jobs at Pioneer Natural Resources Co. and Halcón Resources Corp., respectively. Dove had set a goal of quadrupling Pioneer’s output to 1 million barrels of oil equivalent within a decade, but the spending required has started to grate on investors. Wilson, meanwhile, sold his old company, Petrohawk Energy Corp. to BHP Group Plc (who eventually sold it onto BP Plc after some unhappy times), and then launched Halcón, which lost money, saw its stock collapse, and wound up drawing the attentions of an activist fund.
And that was just overnight. On Friday morning, another activist, Kimmeridge Energy Management Co., announced it had taken a stake in PDC Energy Inc., an exploration and production company with operations in Colorado and Texas. Kimmeridge wants PDC to overhaul its financial priorities, costs, governance and maybe, given the line about “considering all strategic alternatives,” its entire identity.
Oil Posts Weekly Advance on Trade Talks, OPEC Commitment - Bloomberg
Oil Posts Weekly Advance on Trade Talks, OPEC Commitment - Bloomberg:
Oil in New York posted a second straight weekly advance as investors focus on talks between the U.S. and China on trade and as OPEC shows commitment to curbing production.
Futures added 0.5 percent in New York on Friday to the highest in more than three months. Trade talks in Washington between a Chinese delegation led by Vice Premier Liu He and U.S. officials on Friday were extended after showing signs of progress. Speaking through an interpreter, Liu said a deal with the U.S. is very likely to happen.
In regards to a potential U.S.-China trade agreement, “there is certainly the expectation that it might occur in the not-too-distant future,” said Bart Melek, head of global commodity strategy at TD Securities in Toronto. “Saudi Arabia has expressed that they are willing to cut supply to make sure the market is balanced.”
Oil in New York posted a second straight weekly advance as investors focus on talks between the U.S. and China on trade and as OPEC shows commitment to curbing production.
Futures added 0.5 percent in New York on Friday to the highest in more than three months. Trade talks in Washington between a Chinese delegation led by Vice Premier Liu He and U.S. officials on Friday were extended after showing signs of progress. Speaking through an interpreter, Liu said a deal with the U.S. is very likely to happen.
In regards to a potential U.S.-China trade agreement, “there is certainly the expectation that it might occur in the not-too-distant future,” said Bart Melek, head of global commodity strategy at TD Securities in Toronto. “Saudi Arabia has expressed that they are willing to cut supply to make sure the market is balanced.”
Friday 22 February 2019
U.S. oil drillers cut rigs for first week in three: Baker Hughes | Reuters
U.S. oil drillers cut rigs for first week in three: Baker Hughes | Reuters:
U.S. energy firms this week cut the number of oil rigs operating for the first time in three weeks week after U.S. crude production hit an all-time high, boosting exports to a record high and stockpiles to their highest in over a year.
Drillers cut four oil rigs in the week to Feb. 22, bringing the total count down to 853, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
For the month, the rig count fell by nine. That was the first time drillers removed rigs for three months in a row since October 2017. The rig count declined by two in December and 23 in January.
U.S. energy firms this week cut the number of oil rigs operating for the first time in three weeks week after U.S. crude production hit an all-time high, boosting exports to a record high and stockpiles to their highest in over a year.
Drillers cut four oil rigs in the week to Feb. 22, bringing the total count down to 853, General Electric Co’s Baker Hughes energy services firm said in its closely followed report on Friday.
For the month, the rig count fell by nine. That was the first time drillers removed rigs for three months in a row since October 2017. The rig count declined by two in December and 23 in January.
#Saudi crown prince turns to Asia to rebuild his image | Financial Times
Saudi crown prince turns to Asia to rebuild his image | Financial Times:
Saudi Arabia’s Crown Prince Mohammed bin Salman this week sought to offset his rocky relationship with western powers on a five-day tour of Asia in which lavish receptions and investment pledges took precedence over the fate of Jamal Khashoggi.
As the young prince faces criticism in the US and Europe over the killing of Khashoggi, a journalist critical of Saudi rulers, the tour was an attempt to re-establish his credentials as a world leader and to boost Saudi commercial ties.
In contrast to a G20 meeting in Argentina in November last year, where the visiting prince faced outrage over the Khashoggi killing, the journalist’s death was barely mentioned as he passed through Pakistan, India and China this week.
Saudi Arabia’s Crown Prince Mohammed bin Salman this week sought to offset his rocky relationship with western powers on a five-day tour of Asia in which lavish receptions and investment pledges took precedence over the fate of Jamal Khashoggi.
As the young prince faces criticism in the US and Europe over the killing of Khashoggi, a journalist critical of Saudi rulers, the tour was an attempt to re-establish his credentials as a world leader and to boost Saudi commercial ties.
In contrast to a G20 meeting in Argentina in November last year, where the visiting prince faced outrage over the Khashoggi killing, the journalist’s death was barely mentioned as he passed through Pakistan, India and China this week.
Oil and gas groups set to revive spending on new production | Financial Times
Oil and gas groups set to revive spending on new production | Financial Times:
Oil and gas companies are set for a surge in spending on new production this year, with forecasts pointing to a near trebling in volume approved for development as higher crude prices encourage a loosening of purse strings.
Consultancy Rystad Energy said that excluding US shale oil and gas it expected more than 46bn barrels of oil equivalent to be given the green light, up from 17.5bn bo/e in 2018.
While the rise partly reflects a delay in project approvals late last year as the oil price dropped 40 per cent, it also shows a growing appetite to invest in gas and offshore oil projects.
Oil and gas companies are set for a surge in spending on new production this year, with forecasts pointing to a near trebling in volume approved for development as higher crude prices encourage a loosening of purse strings.
Consultancy Rystad Energy said that excluding US shale oil and gas it expected more than 46bn barrels of oil equivalent to be given the green light, up from 17.5bn bo/e in 2018.
While the rise partly reflects a delay in project approvals late last year as the oil price dropped 40 per cent, it also shows a growing appetite to invest in gas and offshore oil projects.
Europe Coddles #Iran With Special Purpose Vehicle - Bloomberg
Europe Coddles Iran With Special Purpose Vehicle - Bloomberg:
The European Union is trying to have it both ways on U.S. sanctions against Iran. It voices solidarity with the Trump administration’s concerns about the Islamic Republic’s rising threat to stability in the Middle East — most recently by expressing alarm at Iran’s ballistic-missile program and other “unacceptable behavior.” At the same time, EU leaders condone efforts by their member countries to skirt U.S. restrictions — as if to reassure the Iranian regime that trade can continue despite the U.S. decision to pull out of the 2015 nuclear deal.
Now, Germany, France and the U.K. have gone so far as to create a special purpose vehicle for trade with Iran that’s clearly designed to get around U.S. sanctions.
This strategy is doomed to fail. The Trump administration won’t be fooled by it — or to any extent mollified by European finger-wagging at the regime in Tehran.
The European Union is trying to have it both ways on U.S. sanctions against Iran. It voices solidarity with the Trump administration’s concerns about the Islamic Republic’s rising threat to stability in the Middle East — most recently by expressing alarm at Iran’s ballistic-missile program and other “unacceptable behavior.” At the same time, EU leaders condone efforts by their member countries to skirt U.S. restrictions — as if to reassure the Iranian regime that trade can continue despite the U.S. decision to pull out of the 2015 nuclear deal.
Now, Germany, France and the U.K. have gone so far as to create a special purpose vehicle for trade with Iran that’s clearly designed to get around U.S. sanctions.
This strategy is doomed to fail. The Trump administration won’t be fooled by it — or to any extent mollified by European finger-wagging at the regime in Tehran.
Oil Set for Second Weekly Gain on Trade Optimism and OPEC Curbs - Bloomberg
Oil Set for Second Weekly Gain on Trade Optimism and OPEC Curbs - Bloomberg:
Oil headed for a second weekly increase as the U.S. and China worked on resolving their trade impasse, and as output cuts by OPEC and its allies balanced surging American supply.
Futures in New York edged higher Friday, taking this week’s increase to 2.7 percent. President Donald Trump will meet with China’s vice premier and top trade negotiator on Friday as the world’s two biggest economies try to resolve their differences. While U.S. crude stockpiles have increased for five straight weeks and production has jumped to a new record, Saudi Arabia and its partners’ output cuts are creating some optimism among traders.
Oil has climbed this year with the Organization of Petroleum Exporting Countries and its allies estimating they delivered 83 percent of promised output reduction last month. Saudi Arabia has cut deeper than it agreed to and has said it expects oil markets to balance by April. Still, American supply growth is tempering that outlook.
Oil headed for a second weekly increase as the U.S. and China worked on resolving their trade impasse, and as output cuts by OPEC and its allies balanced surging American supply.
Futures in New York edged higher Friday, taking this week’s increase to 2.7 percent. President Donald Trump will meet with China’s vice premier and top trade negotiator on Friday as the world’s two biggest economies try to resolve their differences. While U.S. crude stockpiles have increased for five straight weeks and production has jumped to a new record, Saudi Arabia and its partners’ output cuts are creating some optimism among traders.
Oil has climbed this year with the Organization of Petroleum Exporting Countries and its allies estimating they delivered 83 percent of promised output reduction last month. Saudi Arabia has cut deeper than it agreed to and has said it expects oil markets to balance by April. Still, American supply growth is tempering that outlook.
Global watchdog gives #Iran until June to strengthen anti-money laundering rules | Reuters
Global watchdog gives Iran until June to strengthen anti-money laundering rules | Reuters:
Iran has until June to strengthen its anti-money laundering legislation, or financial institutions operating there will face increased international scrutiny, a global watchdog said on Friday.
Last October, the Paris-based Financial Action Task Force (FATF) watchdog had already given Iran until February to complete reforms that would bring it in line with global norms, or face consequences.
The FATF concluded this week at a meeting that “there are still items not completed” and said in a statement it “expects Iran to proceed swiftly in the reform path”.
Iran has until June to strengthen its anti-money laundering legislation, or financial institutions operating there will face increased international scrutiny, a global watchdog said on Friday.
Last October, the Paris-based Financial Action Task Force (FATF) watchdog had already given Iran until February to complete reforms that would bring it in line with global norms, or face consequences.
The FATF concluded this week at a meeting that “there are still items not completed” and said in a statement it “expects Iran to proceed swiftly in the reform path”.
UPDATE 1- #Saudi agrees $10 bln China refinery deal as crown prince visits | Reuters
UPDATE 1-Saudi agrees $10 bln China refinery deal as crown prince visits | Reuters:
State-owned oil company Saudi Aramco signed a $10 billion deal to build a refining and petrochemical complex in China on Friday, as Saudi Crown Prince Mohammed bin Salman wrapped up a two-day trip to Beijing.
The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India’s refining industry.
The crown prince will meet President Xi Jinping, who has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.
State-owned oil company Saudi Aramco signed a $10 billion deal to build a refining and petrochemical complex in China on Friday, as Saudi Crown Prince Mohammed bin Salman wrapped up a two-day trip to Beijing.
The Saudi delegation, including top executives from Aramco, arrived on Thursday on an Asia tour that has already seen the kingdom pledge investment of $20 billion in Pakistan and seek to make additional investments in India’s refining industry.
The crown prince will meet President Xi Jinping, who has made stepping up China’s presence in the Middle East a key foreign policy objective, despite its traditional low-key role there.
Thursday 21 February 2019
Gulf Capital CEO optimistic about 2019, even as fundraising challenges persist - The National
Gulf Capital CEO optimistic about 2019, even as fundraising challenges persist - The National:
Gulf Capital, one of the largest venture capital firms in the Middle East with more than $3 billion of assets under management, is eyeing investments in high-growth sectors such as e-commerce and logistics, where it sees attractive returns despite a challenging environment for private equity, its chief executive said.
“Personally, I'm very excited about 2019,” said Karim El Solh, who is also co-founder and managing partner of private equity at the Abu Dhabi-based firm. “We're seeing more deal flows, more interesting companies in new sectors, at very attractive multipliers, and for me that’s what makes a good vintage.”
Last May, Gulf Capital acquired a strategic stake in financial technology (FinTech) firm Saudi Geidea, an electronic payments provider, for more than 1 billion Saudi riyals (Dh980 million), among other investments.
Gulf Capital, one of the largest venture capital firms in the Middle East with more than $3 billion of assets under management, is eyeing investments in high-growth sectors such as e-commerce and logistics, where it sees attractive returns despite a challenging environment for private equity, its chief executive said.
“Personally, I'm very excited about 2019,” said Karim El Solh, who is also co-founder and managing partner of private equity at the Abu Dhabi-based firm. “We're seeing more deal flows, more interesting companies in new sectors, at very attractive multipliers, and for me that’s what makes a good vintage.”
Last May, Gulf Capital acquired a strategic stake in financial technology (FinTech) firm Saudi Geidea, an electronic payments provider, for more than 1 billion Saudi riyals (Dh980 million), among other investments.
#Turkey set to begin oil and gas drilling off Cyprus
Turkey set to begin oil and gas drilling off Cyprus:
Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
#UAE Says Will Issue New Circular to Ports on #Qatar Boycott - Bloomberg
U.A.E. Says Will Issue New Circular to Ports on Qatar Boycott - Bloomberg:
The United Arab Emirates said it will issue a clarifying memo to the country’s ports regarding a boycott of Qatar after an earlier circular eased cargo shipping restrictions between the two nations.
There is no change to its ports policy on Qatar, the Federal Transport Authority was cited as saying in state-run WAM news agency.
The United Arab Emirates said it will issue a clarifying memo to the country’s ports regarding a boycott of Qatar after an earlier circular eased cargo shipping restrictions between the two nations.
There is no change to its ports policy on Qatar, the Federal Transport Authority was cited as saying in state-run WAM news agency.
Twelve Empty Supertankers Reveal Truths About Today's Oil Market - Bloomberg
Twelve Empty Supertankers Reveal Truths About Today's Oil Market - Bloomberg:
They are slowly plowing their way across thousands of miles of ocean toward America’s Gulf of Mexico coastline. As they do, twelve empty supertankers are also revealing a few truths about today’s global oil market.
In normal times, the vessels would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries.
The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.
They are slowly plowing their way across thousands of miles of ocean toward America’s Gulf of Mexico coastline. As they do, twelve empty supertankers are also revealing a few truths about today’s global oil market.
In normal times, the vessels would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries.
The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.
KKR, BlackRock Are Set to Invest $4 Billion in Adnoc Pipeline - Bloomberg
KKR, BlackRock Are Set to Invest $4 Billion in Adnoc Pipeline - Bloomberg:
KKR & Co. and BlackRock Inc. are set to invest in Abu Dhabi National Oil Co.’s pipeline network in a deal valued at $4 billion to $4.5 billion, according to people familiar with knowledge of the matter.
The deal could be structured so that the two New York-based financial firms acquire leasing rights from the state oil company, the people said, asking not to be identified as the information is private. A transaction could be announced as early as Sunday and the bidders are in talks with banks about financing for the deal, they said.
Adnoc, as the state-owned energy giant is known, KKR and BlackRock declined to comment.
KKR & Co. and BlackRock Inc. are set to invest in Abu Dhabi National Oil Co.’s pipeline network in a deal valued at $4 billion to $4.5 billion, according to people familiar with knowledge of the matter.
The deal could be structured so that the two New York-based financial firms acquire leasing rights from the state oil company, the people said, asking not to be identified as the information is private. A transaction could be announced as early as Sunday and the bidders are in talks with banks about financing for the deal, they said.
Adnoc, as the state-owned energy giant is known, KKR and BlackRock declined to comment.
Sainsbury Snag Adds $336 Million to #Qatar's European Problems - Bloomberg
Sainsbury Snag Adds $336 Million to Qatar's European Problems - Bloomberg:
The day a major deal hits a snag is never a good one for investors, and Wednesday must have been particularly annoying for the Qatar Investment Authority.
QIA is J Sainsbury Plc’s largest shareholder, controlling more than a fifth of the British grocery chain. The value of that holding fell by about 257 million pounds ($336 million) Wednesday, data compiled by Bloomberg show, on news that the grocer’s planned tie-up with Asda hadn’t passed muster with regulators.
Supermarkets aren’t the only European investments looking dubious for Qatar, which has one of the world’s largest sovereign-wealth funds, with more than $320 billion in assets. In addition to U.K. real estate, which is in the midst of a slump as Brexit scares away buyers and a retail decline hurts shops, QIA’s publicly traded Europe portfolio also includes a number of firms that have been falling.
The day a major deal hits a snag is never a good one for investors, and Wednesday must have been particularly annoying for the Qatar Investment Authority.
QIA is J Sainsbury Plc’s largest shareholder, controlling more than a fifth of the British grocery chain. The value of that holding fell by about 257 million pounds ($336 million) Wednesday, data compiled by Bloomberg show, on news that the grocer’s planned tie-up with Asda hadn’t passed muster with regulators.
Supermarkets aren’t the only European investments looking dubious for Qatar, which has one of the world’s largest sovereign-wealth funds, with more than $320 billion in assets. In addition to U.K. real estate, which is in the midst of a slump as Brexit scares away buyers and a retail decline hurts shops, QIA’s publicly traded Europe portfolio also includes a number of firms that have been falling.
UPDATE 1-Saudi Alhokair's mall business seeks $1 bln from IPO - sources | Reuters
UPDATE 1-Saudi Alhokair's mall business seeks $1 bln from IPO - sources | Reuters:
Shopping malls operator Arabian Centres Company, owned by Fawaz Alhokair Group, is seeking $1 billion from a public share listing in the second quarter, sources told Reuters.
Arabian Centres, which has applied for an initial public offering with the Capital Market Authority, is looking to sell a 30 percent stake to investors on Riyadh’s stock exchange, the Tadawul, sources told Reuters in January.
Goldman Sachs and EFG Hermes have been appointed as bookrunners and Credit Suisse and Citigroup, may also join, two sources who declined to be named due to commercial sensitivities said on Thursday.
Shopping malls operator Arabian Centres Company, owned by Fawaz Alhokair Group, is seeking $1 billion from a public share listing in the second quarter, sources told Reuters.
Arabian Centres, which has applied for an initial public offering with the Capital Market Authority, is looking to sell a 30 percent stake to investors on Riyadh’s stock exchange, the Tadawul, sources told Reuters in January.
Goldman Sachs and EFG Hermes have been appointed as bookrunners and Credit Suisse and Citigroup, may also join, two sources who declined to be named due to commercial sensitivities said on Thursday.
COLUMN-Oil traders bet on Saudi Arabia and White House lifting prices: Kemp | Reuters
COLUMN-Oil traders bet on Saudi Arabia and White House lifting prices: Kemp | Reuters:
Oil traders are becoming very bullish on the outlook for prices, betting that Saudi Arabia will do whatever it takes to tighten the market even if consumption growth slows, helped by U.S. sanctions on Iran and Venezuela.
Brent’s calendar spread for the second half of 2019 has surged into a backwardation of 90 cents per barrel, the strongest for more than three months and a huge swing from a 70 cent contango near the end of last year.
For many traders, spreads rather than spot prices are a better indicator of expected balance between production and consumption (“Price relations between July and September Wheat Futures at Chicago”, Working, 1933).
Oil traders are becoming very bullish on the outlook for prices, betting that Saudi Arabia will do whatever it takes to tighten the market even if consumption growth slows, helped by U.S. sanctions on Iran and Venezuela.
Brent’s calendar spread for the second half of 2019 has surged into a backwardation of 90 cents per barrel, the strongest for more than three months and a huge swing from a 70 cent contango near the end of last year.
For many traders, spreads rather than spot prices are a better indicator of expected balance between production and consumption (“Price relations between July and September Wheat Futures at Chicago”, Working, 1933).
MIDEAST STOCKS- #Qatar rises as blue-chips climb, top lender weighs in Egypt | Reuters
MIDEAST STOCKS-Qatar rises as blue-chips climb, top lender weighs in Egypt | Reuters:
Qatar's stock market rose sharply on Thursday as its blue-chip shares gained after a spate of selling, while Egypt's index was driven lower partly by its top lender.
The Qatari index rose 1.1 percent, with 15 out of 20 stocks advancing. Heavyweights Qatar National Bank and Industries Qatar gained 2 percent and 1.9 percent respectively.
Qatar was the best performing Gulf market in 2018 after a limit on foreign ownership of stocks was raised. It continued last year's performance into January but began a downward trend in February.
Qatar's stock market rose sharply on Thursday as its blue-chip shares gained after a spate of selling, while Egypt's index was driven lower partly by its top lender.
The Qatari index rose 1.1 percent, with 15 out of 20 stocks advancing. Heavyweights Qatar National Bank and Industries Qatar gained 2 percent and 1.9 percent respectively.
Qatar was the best performing Gulf market in 2018 after a limit on foreign ownership of stocks was raised. It continued last year's performance into January but began a downward trend in February.
Iranian businesses devise creative ways to evade Trump sanctions | Financial Times
Iranian businesses devise creative ways to evade Trump sanctions | Financial Times:
Two years ago Hossein was optimistic about the future of his booming Iranian oil services businesses. Iran’s landmark nuclear agreement with world powers had lifted the economy out of recession, western companies were re-engaging with the Islamic republic and his revenue was surging. But in May last year everything changed.
US president Donald Trump pulled out of the nuclear deal and began the process of reimposing American sanctions. European partners with exposure to the US cut their ties to Hossein’s business and his annual revenue plunged 50 per cent. To prevent things from getting even worse, he has been forced into a complex web of global transactions in an effort to circumvent the sanctions.
Hossein likens the nuclear deal to a wonder drug in the 1990 film Awakenings, which brings patients out of a catatonic state but, tragically, only temporarily. “We had been all expecting to double our turnover very easily,” he said wistfully.
Two years ago Hossein was optimistic about the future of his booming Iranian oil services businesses. Iran’s landmark nuclear agreement with world powers had lifted the economy out of recession, western companies were re-engaging with the Islamic republic and his revenue was surging. But in May last year everything changed.
US president Donald Trump pulled out of the nuclear deal and began the process of reimposing American sanctions. European partners with exposure to the US cut their ties to Hossein’s business and his annual revenue plunged 50 per cent. To prevent things from getting even worse, he has been forced into a complex web of global transactions in an effort to circumvent the sanctions.
Hossein likens the nuclear deal to a wonder drug in the 1990 film Awakenings, which brings patients out of a catatonic state but, tragically, only temporarily. “We had been all expecting to double our turnover very easily,” he said wistfully.
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