Saudi Arabia’s unemployment rate drops to 12.7%:
The unemployment rate in Saudi Arabia fell to 12.7 percent in the fourth quarter of 2018, according to official data published on Sunday by the General Authority for Statistics.
A quarterly bulletin indicated a slight improvement in the rate, which stood at 12.8 percent in the third quarter of last year.
The unemployment rate among Saudi males stood at 6.6 percent, compared to 32.5 percent among Saudi females during the fourth quarter.
Sunday, 31 March 2019
#UAE announces new family sponsorship policy for expats | ZAWYA MENA Edition
UAE announces new family sponsorship policy for expats | ZAWYA MENA Edition:
The UAE Cabinet has adopted a decision to amend provisions of the resolution on sponsoring of foreign workers to their families in the country.
According to a statement by the General Secretariat of the Cabinet, the amended provisions now indicate "income" as a requirement for sponsoring family members, as opposed to the previously listed "professions" which allowed workers to sponsor their families. The amendment is in line with international developments and accordance with best practices, it added.
"The decision aims at enhancing family stability of foreign workers and social cohesion, as well as attracting highly skilled workers while maintaining a healthy balance between professional and personal life," the statement continued.
The UAE Cabinet has adopted a decision to amend provisions of the resolution on sponsoring of foreign workers to their families in the country.
According to a statement by the General Secretariat of the Cabinet, the amended provisions now indicate "income" as a requirement for sponsoring family members, as opposed to the previously listed "professions" which allowed workers to sponsor their families. The amendment is in line with international developments and accordance with best practices, it added.
"The decision aims at enhancing family stability of foreign workers and social cohesion, as well as attracting highly skilled workers while maintaining a healthy balance between professional and personal life," the statement continued.
MIDEAST STOCKS- #AbuDhabi slips further, banks support #Saudi market | Reuters
MIDEAST STOCKS-Abu Dhabi slips further, banks support Saudi market | Reuters:
Stock markets in the Gulf were mixed on Sunday with Abu Dhabi experiencing losses after some shares traded ex-dividend last week, while the Saudi market was lifted by the banking sector.
The Saudi index added 0.4 percent, with Al Rajhi Banking & Investment Corporation up 1.7 percent and registering the highest trading volume on Sunday.
In a research note, Dubai-based Arqaam Capital said it expects credit growth to strengthen in Saudi Arabia this year, a positive for the banking sector.
Stock markets in the Gulf were mixed on Sunday with Abu Dhabi experiencing losses after some shares traded ex-dividend last week, while the Saudi market was lifted by the banking sector.
The Saudi index added 0.4 percent, with Al Rajhi Banking & Investment Corporation up 1.7 percent and registering the highest trading volume on Sunday.
In a research note, Dubai-based Arqaam Capital said it expects credit growth to strengthen in Saudi Arabia this year, a positive for the banking sector.
#Saudi economy expands in Q4 on boost from crude; non-oil growth slows | ZAWYA MENA Edition
Saudi economy expands in Q4 on boost from crude; non-oil growth slows | ZAWYA MENA Edition:
Saudi Arabia's economy grew in the fourth quarter of last year at its fastest rate since early 2016 due to an expansion in the oil sector, while non-oil growth was sluggish, statistics agency data showed on Sunday.
Fourth-quarter gross domestic product grew by 3.59 percent from a year earlier. In the third quarter, annual growth was 2.5 percent.
"The oil sector led the recovery in the final quarter, reflecting stronger production, particularly at the beginning of the quarter," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Saudi Arabia's economy grew in the fourth quarter of last year at its fastest rate since early 2016 due to an expansion in the oil sector, while non-oil growth was sluggish, statistics agency data showed on Sunday.
Fourth-quarter gross domestic product grew by 3.59 percent from a year earlier. In the third quarter, annual growth was 2.5 percent.
"The oil sector led the recovery in the final quarter, reflecting stronger production, particularly at the beginning of the quarter," said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
#UAE Economic Growth Accelerates in 2018 But Misses Estimates - Bloomberg
U.A.E. Economic Growth Accelerates in 2018 But Misses Estimates - Bloomberg:
The United Arab Emirates’ economy grew 1.7 percent in 2018, picking up pace on the back of higher oil prices but falling short of expectations.
Growth was 0.8 percent in 2017 and had been forecast to accelerate to 2.9 percent last year, according to data on Bloomberg.
Higher oil and gas income was one of the main drivers of overall growth, Minister of Economy Sultan bin Saeed Al Mansouri was cited as saying by the state-run WAM news agency. The sector contributed to 25.9 percent of the country’s gross domestic product.
The United Arab Emirates’ economy grew 1.7 percent in 2018, picking up pace on the back of higher oil prices but falling short of expectations.
Growth was 0.8 percent in 2017 and had been forecast to accelerate to 2.9 percent last year, according to data on Bloomberg.
Higher oil and gas income was one of the main drivers of overall growth, Minister of Economy Sultan bin Saeed Al Mansouri was cited as saying by the state-run WAM news agency. The sector contributed to 25.9 percent of the country’s gross domestic product.
Shares in Tabuk Cement drop following earnings miss | ZAWYA MENA Edition
Shares in Tabuk Cement drop following earnings miss | ZAWYA MENA Edition:
Shares in Saudi Arabia’s Tabuk Cement fell early on Sunday, as the company announced a drop in earnings for the year 2018.
The company reported a net loss of 32.45 million Saudi riyals ($8.65 million) for the fourth quarter (Q4) of the year 2018, compared to 21.53 million riyals for Q4 2017, missing EFG Hermes’ Q4 2018 estimate of 2 million riyals loss.
“Very disappointing set of results. Although sales volumes recovered modestly Q-o-Q (quarter-on-quarter), they faltered the Y-o-Y (year-on-year) trend of a constant cement demand,” Sameer Kattiparambil, an analyst at EFG Hermes based in Muscat, told Zawya by email.
Shares in Saudi Arabia’s Tabuk Cement fell early on Sunday, as the company announced a drop in earnings for the year 2018.
The company reported a net loss of 32.45 million Saudi riyals ($8.65 million) for the fourth quarter (Q4) of the year 2018, compared to 21.53 million riyals for Q4 2017, missing EFG Hermes’ Q4 2018 estimate of 2 million riyals loss.
“Very disappointing set of results. Although sales volumes recovered modestly Q-o-Q (quarter-on-quarter), they faltered the Y-o-Y (year-on-year) trend of a constant cement demand,” Sameer Kattiparambil, an analyst at EFG Hermes based in Muscat, told Zawya by email.
Ocean LNG to offtake and market all LNG volumes produced and exported from Golden Pass project | Reuters
Ocean LNG to offtake and market all LNG volumes produced and exported from Golden Pass project | Reuters:
Ocean LNG Limited will be responsible for the offtake and marketing of all LNG volumes to be produced and exported from the Golden Pass LNG Export Project in Sabine Pass, Texas, Qatar Petroleum said in a statement on Sunday.
Ocean LNG is an international joint venture marketing company in which Qatar Petroleum affiliates own 70 percent and Exxon Mobil owns 30 percent.
Ocean LNG Limited will be responsible for the offtake and marketing of all LNG volumes to be produced and exported from the Golden Pass LNG Export Project in Sabine Pass, Texas, Qatar Petroleum said in a statement on Sunday.
Ocean LNG is an international joint venture marketing company in which Qatar Petroleum affiliates own 70 percent and Exxon Mobil owns 30 percent.
#UAE economy grew 1.7 percent in 2018 - state news agency | Reuters
UAE economy grew 1.7 percent in 2018 - state news agency | Reuters:
The United Arab Emirates’ (UAE) economy grew by 1.7 percent at constant prices in 2018 compared to the previous year, slower than projected, according to state news agency WAM, which cited preliminary 2018 data.
The UAE growth figures follow Dubai’s disclosure last week that its economy grew 1.94 percent in 2018, its slowest pace since a contraction in 2009 when the economy was hobbled by a debt crisis.
Oil producer UAE had projected in December growth between 2.5 percent and 3 percent for 2018 with Gulf economies benefiting from higher oil prices after OPEC members and other producers cut output to tackle a supply glut.
The United Arab Emirates’ (UAE) economy grew by 1.7 percent at constant prices in 2018 compared to the previous year, slower than projected, according to state news agency WAM, which cited preliminary 2018 data.
The UAE growth figures follow Dubai’s disclosure last week that its economy grew 1.94 percent in 2018, its slowest pace since a contraction in 2009 when the economy was hobbled by a debt crisis.
Oil producer UAE had projected in December growth between 2.5 percent and 3 percent for 2018 with Gulf economies benefiting from higher oil prices after OPEC members and other producers cut output to tackle a supply glut.
#SaudiArabia to raise around $31 billion in debt this year | Reuters
Saudi Arabia to raise around $31 billion in debt this year | Reuters:
Saudi Arabia plans to issue 118 billion riyals ($31.5 billion) in debt this year to help finance the national budget deficit, the country’s Debt Management Office (DMO), part of the ministry of finance, said.
Saudi Arabia has borrowed extensively over the past few years to refill state coffers depleted by a drop in oil prices.
At the end of 2018, it had around $150 billion in outstanding government debt, 54 percent of which was in local currency and the rest denominated in U.S. dollars.
Saudi Arabia plans to issue 118 billion riyals ($31.5 billion) in debt this year to help finance the national budget deficit, the country’s Debt Management Office (DMO), part of the ministry of finance, said.
Saudi Arabia has borrowed extensively over the past few years to refill state coffers depleted by a drop in oil prices.
At the end of 2018, it had around $150 billion in outstanding government debt, 54 percent of which was in local currency and the rest denominated in U.S. dollars.
Saturday, 30 March 2019
Omani oil minister sees prices staying in $65-$75 range until year-end | Reuters
Omani oil minister sees prices staying in $65-$75 range until year-end | Reuters:
Omani Energy Minister Mohammed bin Hamad al-Rumhy said he expected global oil prices to stay in a range between $65 and $75 a barrel until the end of the year, the state-run Oman News Agency (ONA) reported on Saturday.
He was also quoted as saying Oman remained committed to the OPEC+ agreement until the end of 2019.
Under the accord reached in December 2018, members of the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other non-OPEC producers — an alliance known as OPEC+ — agreed to reduce oil supply by 1.2 million barrels per day from Jan. 1 for six months.
Omani Energy Minister Mohammed bin Hamad al-Rumhy said he expected global oil prices to stay in a range between $65 and $75 a barrel until the end of the year, the state-run Oman News Agency (ONA) reported on Saturday.
He was also quoted as saying Oman remained committed to the OPEC+ agreement until the end of 2019.
Under the accord reached in December 2018, members of the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other non-OPEC producers — an alliance known as OPEC+ — agreed to reduce oil supply by 1.2 million barrels per day from Jan. 1 for six months.
#SaudiArabia’s Sabic to become Aramco’s chemicals arm | Financial Times
Saudi Arabia’s Sabic to become Aramco’s chemicals arm | Financial Times:
Saudi Arabia’s Sabic will become the chemicals business of the state energy company Saudi Aramco, which this week acquired a majority stake as part of a deal to transfer funds to the country’s sovereign wealth fund.
Yousef Al-Benyan, chief executive of Sabic, said in an interview that the business would be “the future chemical arm of Aramco”.
“It will serve Aramco’s strategy to become a fully integrated energy company and it will also serve Sabic to make it stronger,” said Mr Benyan.
Saudi Arabia’s Sabic will become the chemicals business of the state energy company Saudi Aramco, which this week acquired a majority stake as part of a deal to transfer funds to the country’s sovereign wealth fund.
Yousef Al-Benyan, chief executive of Sabic, said in an interview that the business would be “the future chemical arm of Aramco”.
“It will serve Aramco’s strategy to become a fully integrated energy company and it will also serve Sabic to make it stronger,” said Mr Benyan.
Friday, 29 March 2019
Sabic, Aramco Plan `Discovery Phase' to Lock In Merger Savings - Bloomberg
Sabic, Aramco Plan `Discovery Phase' to Lock In Merger Savings - Bloomberg:
Sabic’s chief executive officer said the chemical company’s $69 billion takeover by oil giant Saudi Aramco will yield cost savings for both sides -- it may just take a bit of time.
Once the deal gets antitrust approval, Aramco and Saudi Basic Industries Corp. will set up a team to work on the potential spending reductions, though it’s too early to give an estimate, CEO Yousef Al Benyan said in a phone interview. Proximity will help, as Aramco’s refineries are close to Sabic’s chemical plants in the port of Jubail, and savings are likely to increase over time as the partners pursue growth projects.
“I’m very optimistic on this,” Al Benyan said. “We need to go through a discovery phase to see what exactly are the synergies that will materialize and how can we bring them efficiently and commercially into Sabic.”
Sabic’s chief executive officer said the chemical company’s $69 billion takeover by oil giant Saudi Aramco will yield cost savings for both sides -- it may just take a bit of time.
Once the deal gets antitrust approval, Aramco and Saudi Basic Industries Corp. will set up a team to work on the potential spending reductions, though it’s too early to give an estimate, CEO Yousef Al Benyan said in a phone interview. Proximity will help, as Aramco’s refineries are close to Sabic’s chemical plants in the port of Jubail, and savings are likely to increase over time as the partners pursue growth projects.
“I’m very optimistic on this,” Al Benyan said. “We need to go through a discovery phase to see what exactly are the synergies that will materialize and how can we bring them efficiently and commercially into Sabic.”
Oil Caps Best Quarter in Decade as Siberia to Shale Cut Drilling - Bloomberg
Oil Caps Best Quarter in Decade as Siberia to Shale Cut Drilling - Bloomberg:
Oil closed above $60 for the first time since early November, capping its best quarter since 2009, amid signs of thinning supplies from Siberia to the U.S. shale fields.
Futures rose 1.4 percent in New York on Friday as Russian Energy Minister Alexander Novak said the world’s second-biggest producer would deepen the output cuts its imposed along with OPEC this year to resurrect the market. In the U.S., drillers sidelined more drilling rigs for the sixth straight week.
Fears of an economic slowdown eased, meanwhile, as trade talks between China and the U.S. resumed and two Federal Reserve presidents predicted continuing growth this year.
Oil closed above $60 for the first time since early November, capping its best quarter since 2009, amid signs of thinning supplies from Siberia to the U.S. shale fields.
Futures rose 1.4 percent in New York on Friday as Russian Energy Minister Alexander Novak said the world’s second-biggest producer would deepen the output cuts its imposed along with OPEC this year to resurrect the market. In the U.S., drillers sidelined more drilling rigs for the sixth straight week.
Fears of an economic slowdown eased, meanwhile, as trade talks between China and the U.S. resumed and two Federal Reserve presidents predicted continuing growth this year.
Nine banks win dismissal of #Iran terrorism financing lawsuit: U.S. judge | Reuters
Nine banks win dismissal of Iran terrorism financing lawsuit: U.S. judge | Reuters:
A U.S. judge has dismissed a lawsuit seeking to hold nine large European banks liable for allegedly providing banking services to Iran that enabled militants to conduct 55 attacks against U.S. armed forces in neighboring Iraq.
In a decision on Thursday, U.S. District Judge Laura Taylor Swain in Manhattan said the banks’ alleged misconduct was too far removed from the attacks, which occurred from 2003 to 2011, to support civil liability under federal anti-terrorism laws.
The U.S. Department of State has designated Iran a state sponsor of terrorism since 1984.
A U.S. judge has dismissed a lawsuit seeking to hold nine large European banks liable for allegedly providing banking services to Iran that enabled militants to conduct 55 attacks against U.S. armed forces in neighboring Iraq.
In a decision on Thursday, U.S. District Judge Laura Taylor Swain in Manhattan said the banks’ alleged misconduct was too far removed from the attacks, which occurred from 2003 to 2011, to support civil liability under federal anti-terrorism laws.
The U.S. Department of State has designated Iran a state sponsor of terrorism since 1984.
#Saudi's Kingdom Holding to invest Careem proceeds in Europe, Saudi: CEO | Reuters
Saudi's Kingdom Holding to invest Careem proceeds in Europe, Saudi: CEO | Reuters:
Saudi Arabian investment firm Kingdom Holding will put the proceeds from the sale of its stake in ride-hailing startup Careem toward $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.
Kingdom, which is 95 percent owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for 1.25 billion riyals ($333 million). It will receive 565 million riyals in cash, plus convertible bonds in Uber Technologies worth 685 million riyals.
“We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks,” Talal Ibrahim al-Maiman said in a phone interview.
Saudi Arabian investment firm Kingdom Holding will put the proceeds from the sale of its stake in ride-hailing startup Careem toward $600 million in investments in the kingdom and Europe, its chief executive told Reuters on Friday.
Kingdom, which is 95 percent owned by billionaire Price Alwaleed bin Talal, sold its stake in Careem this week for 1.25 billion riyals ($333 million). It will receive 565 million riyals in cash, plus convertible bonds in Uber Technologies worth 685 million riyals.
“We have five companies on the table that are being discussed, deliberated. Hopefully we will be able to come to a conclusion on where to invest within the next eight weeks,” Talal Ibrahim al-Maiman said in a phone interview.
Oil posts biggest quarterly rise since 2009 on OPEC cuts, sanctions | Reuters
Oil posts biggest quarterly rise since 2009 on OPEC cuts, sanctions | Reuters:
Oil prices rose about 1 percent on Friday, posting their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy.
The May Brent crude oil futures contract, which expired Friday, gained 57 cents, or 0.8 percent, to settle at $68.39 a barrel, marking a first-quarter gain of 27 percent. The more-active June contract settled up 48 cents at $67.58 a barrel.
U.S. West Texas Intermediate (WTI) futures rose 84 cents, or 1.42 percent, to $60.14 a barrel, and posted a rise of 32 percent in the January-March period.
Oil prices rose about 1 percent on Friday, posting their biggest quarterly rise in a decade, as U.S. sanctions against Iran and Venezuela as well as OPEC-led supply cuts overshadowed concerns over a slowing global economy.
The May Brent crude oil futures contract, which expired Friday, gained 57 cents, or 0.8 percent, to settle at $68.39 a barrel, marking a first-quarter gain of 27 percent. The more-active June contract settled up 48 cents at $67.58 a barrel.
U.S. West Texas Intermediate (WTI) futures rose 84 cents, or 1.42 percent, to $60.14 a barrel, and posted a rise of 32 percent in the January-March period.
#SaudiArabia's `Win-Win-Win' Megadeal Is No Dead Cert for Aramco - Bloomberg
Saudi Arabia's `Win-Win-Win' Megadeal Is No Dead Cert for Aramco - Bloomberg:
When Saudi Arabia unveiled the $69 billion Aramco-Sabic deal on Wednesday, officials described it as a "win-win-win" that would bring rewards for the government, the giant oil company and the chemicals group.
The reality is likely to prove more prosaic.
The deal is a Plan B to raise money for the country’s economic agenda after the initial public offering of Aramco, slated for 2018, was postponed. In effect, Crown Prince Mohammed bin Salman is using the company’s pristine balance sheet to finance his ambitions.
When Saudi Arabia unveiled the $69 billion Aramco-Sabic deal on Wednesday, officials described it as a "win-win-win" that would bring rewards for the government, the giant oil company and the chemicals group.
The reality is likely to prove more prosaic.
The deal is a Plan B to raise money for the country’s economic agenda after the initial public offering of Aramco, slated for 2018, was postponed. In effect, Crown Prince Mohammed bin Salman is using the company’s pristine balance sheet to finance his ambitions.
Rescue deal is no panacea for India's struggling Jet Airways | Reuters
Rescue deal is no panacea for India's struggling Jet Airways | Reuters:
Jet Airways’ investors are cheering this week’s government-led rescue deal, but the cash-strapped Indian airline’s future looks mired in uncertainty as convincing a new investor to come on board may not be easy.
The airline, which was on the brink of bankruptcy, was bailed out on Monday by state-run banks, which have temporarily taken a majority stake in the company, given it a new loan of $218 million and forced its chairman, Naresh Goyal, to step down from the board of the airline he founded 25 years ago.
Jet shares have rallied 20 percent since news of the rescue on hopes that the airline would now be able to clear salaries, redeploy grounded planes and claw back market share.
Jet Airways’ investors are cheering this week’s government-led rescue deal, but the cash-strapped Indian airline’s future looks mired in uncertainty as convincing a new investor to come on board may not be easy.
The airline, which was on the brink of bankruptcy, was bailed out on Monday by state-run banks, which have temporarily taken a majority stake in the company, given it a new loan of $218 million and forced its chairman, Naresh Goyal, to step down from the board of the airline he founded 25 years ago.
Jet shares have rallied 20 percent since news of the rescue on hopes that the airline would now be able to clear salaries, redeploy grounded planes and claw back market share.
Emerging market debt sales shrink as window for new issues threatens to shut | Reuters
Emerging market debt sales shrink as window for new issues threatens to shut | Reuters:
Bond sales by emerging market borrowers dipped 15 percent in the first three months of 2019 from the same year-ago period and the outlook for the coming months is clouded by choppy markets, global recession fears and another financial crisis in Turkey.
But borrowers nimble enough to negotiate the market during the first quarter were rewarded by robust demand from investors in search of high-yielding but riskier bets.
A debut international issue for Benin and a $3 billion bond sale for Ghana, the world’s second-largest cocoa producer, were both well-received by investors.
Bond sales by emerging market borrowers dipped 15 percent in the first three months of 2019 from the same year-ago period and the outlook for the coming months is clouded by choppy markets, global recession fears and another financial crisis in Turkey.
But borrowers nimble enough to negotiate the market during the first quarter were rewarded by robust demand from investors in search of high-yielding but riskier bets.
A debut international issue for Benin and a $3 billion bond sale for Ghana, the world’s second-largest cocoa producer, were both well-received by investors.
Oil set for biggest quarterly rise since 2009 amid OPEC cuts, sanctions | Reuters
Oil set for biggest quarterly rise since 2009 amid OPEC cuts, sanctions | Reuters:
Oil prices rose on Friday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, putting crude markets on track for their biggest quarterly rise since 2009.
Brent crude oil futures were up 75 cents at $68.57 a barrel by 1150 GMT, set for a gain of more than 27 percent in the first quarter.
U.S. West Texas Intermediate (WTI) futures were at $60.15 per barrel, up 85 cents, and on track for a rise of more than 32 percent over the January-March period.
Oil prices rose on Friday amid OPEC-led supply cuts and U.S. sanctions against Iran and Venezuela, putting crude markets on track for their biggest quarterly rise since 2009.
Brent crude oil futures were up 75 cents at $68.57 a barrel by 1150 GMT, set for a gain of more than 27 percent in the first quarter.
U.S. West Texas Intermediate (WTI) futures were at $60.15 per barrel, up 85 cents, and on track for a rise of more than 32 percent over the January-March period.
Thursday, 28 March 2019
Deutsche Bank Merger Plan Seen Threatened by Mounting Opposition - Bloomberg
Deutsche Bank Merger Plan Seen Threatened by Mounting Opposition - Bloomberg:
Less than two weeks ago, the leaders of Deutsche Bank AG and Commerzbank AG agreed to take an unbiased look at a proposed merger. Almost every day since then, their efforts have been undermined by internal and external forces.
Egged on by the German government, Deutsche Bank Chief Executive Officer Christian Sewing and his Commerzbank counterpart, Martin Zielke, are war-gaming the kind of cost savings and market share that would make a $20 billion-plus deal work. While neither is necessarily a fan, they agreed to give it a fair hearing, people briefed on the matter said.
The banks are still looking at one another, but the chances of a deal have dwindled, according to several people close to the talks, who asked not to be identified discussing confidential matters. What nobody foresaw was the parade of stakeholders who decided a merger would be a recipe for disaster. Commerzbank employees lambasted it; labor unions want to block it; some of Deutsche Bank’s biggest shareholders, including Qatar’s government, are wary of the plan.
Less than two weeks ago, the leaders of Deutsche Bank AG and Commerzbank AG agreed to take an unbiased look at a proposed merger. Almost every day since then, their efforts have been undermined by internal and external forces.
Egged on by the German government, Deutsche Bank Chief Executive Officer Christian Sewing and his Commerzbank counterpart, Martin Zielke, are war-gaming the kind of cost savings and market share that would make a $20 billion-plus deal work. While neither is necessarily a fan, they agreed to give it a fair hearing, people briefed on the matter said.
The banks are still looking at one another, but the chances of a deal have dwindled, according to several people close to the talks, who asked not to be identified discussing confidential matters. What nobody foresaw was the parade of stakeholders who decided a merger would be a recipe for disaster. Commerzbank employees lambasted it; labor unions want to block it; some of Deutsche Bank’s biggest shareholders, including Qatar’s government, are wary of the plan.
Aramco Megadeal Takes Middle East M&A Volume Near Europe Levels - Bloomberg
Aramco Megadeal Takes Middle East M&A Volume Near Europe Levels - Bloomberg:
In a matter of days, the Middle East has turned the tables on global M&A.
Acquisitions involving targets in the Middle East and Africa are up more than six-fold this year to $103.4 billion, according to data compiled by Bloomberg. That’s inching closer to acquisitions of European companies, which are down 50 percent to $114.7 billion, the data show.
Saudi Aramco, the world’s biggest oil producer, on Wednesday agreed to buy a majority stake in chemical giant Saudi Basic Industries Corp. for $69.1 billion, marking the Middle East’s biggest deal. It came just one day after Uber Technologies Inc. agreed to buy Dubai-based rival Careem Networks for $3.1 billion in the region’s largest technology transaction.
In a matter of days, the Middle East has turned the tables on global M&A.
Acquisitions involving targets in the Middle East and Africa are up more than six-fold this year to $103.4 billion, according to data compiled by Bloomberg. That’s inching closer to acquisitions of European companies, which are down 50 percent to $114.7 billion, the data show.
Saudi Aramco, the world’s biggest oil producer, on Wednesday agreed to buy a majority stake in chemical giant Saudi Basic Industries Corp. for $69.1 billion, marking the Middle East’s biggest deal. It came just one day after Uber Technologies Inc. agreed to buy Dubai-based rival Careem Networks for $3.1 billion in the region’s largest technology transaction.
#AbuDhabi Is Said to Weigh Options for $10 Billion Nova Business - Bloomberg
Abu Dhabi Is Said to Weigh Options for $10 Billion Nova Business - Bloomberg:
Abu Dhabi’s Mubadala Investment Co. is exploring options for Nova Chemicals Corp., a Canadian plastics maker that could be valued at $10 billion or more, according to people with knowledge of the situation.
The sovereign wealth fund is working with financial advisers as it weighs what to do with the asset, including selling a stake to a Canadian pension fund or another company in the industry, said the people, who asked not to be identified as the matter is private. No final decisions have been made, and Mubadala may still decide to keep its holding in Nova, they said.
Abu Dhabi, like many of the governments in the Middle East, is seeking funds to diversify its economy away from oil, though opinions within the emirate have differed on which strategy to pursue, two of the people said. The emirate acquired debt-laden Nova in 2009, and the asset soon became one of its top investments after the Calgary-based company took advantage of the boom in North American shale.
Abu Dhabi’s Mubadala Investment Co. is exploring options for Nova Chemicals Corp., a Canadian plastics maker that could be valued at $10 billion or more, according to people with knowledge of the situation.
The sovereign wealth fund is working with financial advisers as it weighs what to do with the asset, including selling a stake to a Canadian pension fund or another company in the industry, said the people, who asked not to be identified as the matter is private. No final decisions have been made, and Mubadala may still decide to keep its holding in Nova, they said.
Abu Dhabi, like many of the governments in the Middle East, is seeking funds to diversify its economy away from oil, though opinions within the emirate have differed on which strategy to pursue, two of the people said. The emirate acquired debt-laden Nova in 2009, and the asset soon became one of its top investments after the Calgary-based company took advantage of the boom in North American shale.
#Saudi Aramco to meet bond investors next week ahead of debut dollar bond - sources | ZAWYA MENA Edition
Saudi Aramco to meet bond investors next week ahead of debut dollar bond - sources | ZAWYA MENA Edition:
Saudi Aramco will start meeting bond investors next week to persuade them to buy its debut international bond, which will help the world's largest oil producer fund the $69.1 billion purchase of a stake in Saudi Basic Industries Corp (SABIC), sources familiar with the matter said.
The Saudi oil giant, which declined to comment, said on Wednesday it had agreed to buy a 70 percent stake in SABIC from Saudi Arabia's Public Investment Fund (PIF) in one of the largest deals in the global chemicals industry.
The deal could inject billions of dollars into the PIF, giving it the firepower to proceed with its plans to create jobs and diversify the largest Arab economy beyond oil exports.
Saudi Aramco will start meeting bond investors next week to persuade them to buy its debut international bond, which will help the world's largest oil producer fund the $69.1 billion purchase of a stake in Saudi Basic Industries Corp (SABIC), sources familiar with the matter said.
The Saudi oil giant, which declined to comment, said on Wednesday it had agreed to buy a 70 percent stake in SABIC from Saudi Arabia's Public Investment Fund (PIF) in one of the largest deals in the global chemicals industry.
The deal could inject billions of dollars into the PIF, giving it the firepower to proceed with its plans to create jobs and diversify the largest Arab economy beyond oil exports.
MENA fund managers increase investments in #UAE, Egypt: poll | ZAWYA MENA Edition
MENA fund managers increase investments in UAE, Egypt: poll | ZAWYA MENA Edition:
Middle Eastern funds plan to increase their investments in the United Arab Emirates (UAE) and Egypt over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Dubai was one of the world's worst performing markets last year but six out of 10 fund managers polled in March said they would increase their allocations to the UAE.
One said he was picking specific stocks rather than allocating broadly to the country, however.
Middle Eastern funds plan to increase their investments in the United Arab Emirates (UAE) and Egypt over the next three months, while largely keeping their exposure to other countries in the region at current levels, according to a Reuters poll.
Dubai was one of the world's worst performing markets last year but six out of 10 fund managers polled in March said they would increase their allocations to the UAE.
One said he was picking specific stocks rather than allocating broadly to the country, however.
Exclusive: OPEC struggles to keep Russia on board with oil cut, may offer shorter extension | Reuters
Exclusive: OPEC struggles to keep Russia on board with oil cut, may offer shorter extension | Reuters:
Saudi Arabia is having a hard time convincing Russia to stay much longer in an OPEC-led pact cutting oil supply, and Moscow may agree only to a three-month extension, three sources familiar with the matter said.
Russian Energy Minister Alexander Novak told his Saudi counterpart Khalid al-Falih when the two met in Baku this month that he cannot guarantee an extension to the end of 2019, the sources said.
“Novak told Falih that he will extend in June but can only do it until the end of September as he is under too much pressure internally to end the cuts,” a source familiar with Russian oil policy said.
Saudi Arabia is having a hard time convincing Russia to stay much longer in an OPEC-led pact cutting oil supply, and Moscow may agree only to a three-month extension, three sources familiar with the matter said.
Russian Energy Minister Alexander Novak told his Saudi counterpart Khalid al-Falih when the two met in Baku this month that he cannot guarantee an extension to the end of 2019, the sources said.
“Novak told Falih that he will extend in June but can only do it until the end of September as he is under too much pressure internally to end the cuts,” a source familiar with Russian oil policy said.
Oil near flat, shrugs off Trump calls for OPEC to boost output | Reuters
Oil near flat, shrugs off Trump calls for OPEC to boost output | Reuters:
Oil futures were near flat on Thursday after recovering from the day’s worst losses that came when U.S. President Donald Trump called for OPEC to boost crude output in an effort to lower prices that were headed for their best quarterly gains in a decade.
Futures hit a session low immediately following Trump’s comments, but subsequently rallied above pre-tweet levels.
U.S. West Texas Intermediate (WTI) crude futures dropped 11 cents to settle at $59.30 a barrel. Earlier the contract fell to $58.20 in the wake of Trump’s tweet, where he said it was “very important that OPEC (the Organization of the Petroleum Exporting Countries) increase the flow of Oil” due to fragile world markets.
Brent crude futures lost 1 cent to settle at $67.82 a barrel, after earlier sinking to $66.54 a barrel.
Oil futures were near flat on Thursday after recovering from the day’s worst losses that came when U.S. President Donald Trump called for OPEC to boost crude output in an effort to lower prices that were headed for their best quarterly gains in a decade.
Futures hit a session low immediately following Trump’s comments, but subsequently rallied above pre-tweet levels.
U.S. West Texas Intermediate (WTI) crude futures dropped 11 cents to settle at $59.30 a barrel. Earlier the contract fell to $58.20 in the wake of Trump’s tweet, where he said it was “very important that OPEC (the Organization of the Petroleum Exporting Countries) increase the flow of Oil” due to fragile world markets.
Brent crude futures lost 1 cent to settle at $67.82 a barrel, after earlier sinking to $66.54 a barrel.
MIDEAST STOCKS- #Saudi's SABIC loses steam, ex-dividend stocks hit #AbuDhabi | Reuters
MIDEAST STOCKS-Saudi's SABIC loses steam, ex-dividend stocks hit Abu Dhabi | Reuters:
Saudi Arabia's stock market rose on Thursday aided by its banks, even as Saudi Basic Industries (SABIC) gave up most of its early gains spurred by news of Aramco's purchase of a large stake in the petrochemicals group.
Abu Dhabi edged down as some stocks traded ex-dividend.
Saudi Arabia's index was up 0.3 percent with Al Rajhi Bank adding 1 percent and National Commercial Bank rising 2 percent.
Saudi Arabia's stock market rose on Thursday aided by its banks, even as Saudi Basic Industries (SABIC) gave up most of its early gains spurred by news of Aramco's purchase of a large stake in the petrochemicals group.
Abu Dhabi edged down as some stocks traded ex-dividend.
Saudi Arabia's index was up 0.3 percent with Al Rajhi Bank adding 1 percent and National Commercial Bank rising 2 percent.
Mideast Stocks: Aramco-SABIC deal lifts #Saudi, ex-dividend stocks hurt Abu Dhabi | ZAWYA MENA Edition
Mideast Stocks: Aramco-SABIC deal lifts Saudi, ex-dividend stocks hurt Abu Dhabi | ZAWYA MENA Edition:
Saudi Arabia's stock market inched up on Thursday after oil producer Saudi Aramco agreed to buy a 70 percent stake in Saudi Basic Industries, while Abu Dhabi's stock market fell as some stocks traded ex-dividend.
Saudi Arabia's index was up 0.2 percent with market heavyweight Saudi Basic Industries (SABIC) gaining 1.6 percent after the world's largest oil producer Saudi Aramco agreed to buy a 70 percent stake in the firm from the Public Investment Firm (PIF) for $69.1 billion.
The mega deal sent Saudi's petrochemical stocks higher, with SABIC's unit Saudi Kayan Petrochemical adding 0.9 percent, while Aramco's unit Rabigh Refining rose 0.2 percent.
Saudi Arabia's stock market inched up on Thursday after oil producer Saudi Aramco agreed to buy a 70 percent stake in Saudi Basic Industries, while Abu Dhabi's stock market fell as some stocks traded ex-dividend.
Saudi Arabia's index was up 0.2 percent with market heavyweight Saudi Basic Industries (SABIC) gaining 1.6 percent after the world's largest oil producer Saudi Aramco agreed to buy a 70 percent stake in the firm from the Public Investment Firm (PIF) for $69.1 billion.
The mega deal sent Saudi's petrochemical stocks higher, with SABIC's unit Saudi Kayan Petrochemical adding 0.9 percent, while Aramco's unit Rabigh Refining rose 0.2 percent.
#Dubai theme parks owner writes down value of assets by over $400mln | ZAWYA MENA Edition
Dubai theme parks owner writes down value of assets by over $400mln | ZAWYA MENA Edition:
The owner of the Dubai Parks and Resorts theme parks has written down the value of its assets by more than 1.54 billion ($419.3 million), newly-filed accounts show.
DXB Entertainments declared a 991 million-dirhams impairment in the value of the Dubai Parks and Resorts complex of theme parks, comprising the Bollywood Parks Dubai, Motiongate Dubai and Legoland Dubai theme parks, among other assets, which it attributed to a “delayed ramp-up of international visitation”.
Dubai Parks and Resorts attracted almost 2.8 million visitors last year, which was a 22 percent year-on-year increase. However, its initial target for visitor numbers for 2018 was 6.6 million visits.
The owner of the Dubai Parks and Resorts theme parks has written down the value of its assets by more than 1.54 billion ($419.3 million), newly-filed accounts show.
DXB Entertainments declared a 991 million-dirhams impairment in the value of the Dubai Parks and Resorts complex of theme parks, comprising the Bollywood Parks Dubai, Motiongate Dubai and Legoland Dubai theme parks, among other assets, which it attributed to a “delayed ramp-up of international visitation”.
Dubai Parks and Resorts attracted almost 2.8 million visitors last year, which was a 22 percent year-on-year increase. However, its initial target for visitor numbers for 2018 was 6.6 million visits.
Wednesday, 27 March 2019
#Dubai's Long-Awaited Stats Showed Weakest Economy Since 2010 - Bloomberg
Dubai's Long-Awaited Stats Showed Weakest Economy Since 2010 - Bloomberg:
Investors got their first chance in months to size up how Dubai’s economy has fared during a downturn in its bellwether property sector as much-delayed data indicated growth last year was the slowest since 2010.
Figures released by the emirate’s statistics center website late on Tuesday showed gross domestic product expanded 1.9 percent in 2018, down from 3.1 percent the previous year. Finance, mining and manufacturing were among the worst-performing industries. No quarterly GDP figures are available for last year.
“The weakening in economic activity was already being seen in a number of proxy indicators,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “Looking forward to 2019, we believe that the key headwinds to Dubai’s economy will likely come from oversupply of infrastructure and the external backdrop.”
Investors got their first chance in months to size up how Dubai’s economy has fared during a downturn in its bellwether property sector as much-delayed data indicated growth last year was the slowest since 2010.
Figures released by the emirate’s statistics center website late on Tuesday showed gross domestic product expanded 1.9 percent in 2018, down from 3.1 percent the previous year. Finance, mining and manufacturing were among the worst-performing industries. No quarterly GDP figures are available for last year.
“The weakening in economic activity was already being seen in a number of proxy indicators,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “Looking forward to 2019, we believe that the key headwinds to Dubai’s economy will likely come from oversupply of infrastructure and the external backdrop.”
Oil prices sink after surprise U.S. crude stock build | Reuters
Oil prices sink after surprise U.S. crude stock build | Reuters:
Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said.
Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said.
Germany takes steps to spur more investment in LNG terminals | Reuters
Germany takes steps to spur more investment in LNG terminals | Reuters:
Germany’s cabinet on Wednesday approved a plan that will make it easier for LNG project companies to invest in new LNG terminals as part of efforts to diversify the country’s sources of gas.
Under the legislation, LNG companies will only pay a 10 percent share of the connection costs for LNG, giving them more scope to invest in LNG projects. At the moment, pipeline companies have to put up the initial cost of the pipelines and then recoup this over the long term via network usage fees that are part of customers gas bills.
“It is important for the supply security of gas in Germany to be able to use as many supply routes and sources as possible,” economy minister Peter Altmaier said in a statement.
Germany’s cabinet on Wednesday approved a plan that will make it easier for LNG project companies to invest in new LNG terminals as part of efforts to diversify the country’s sources of gas.
Under the legislation, LNG companies will only pay a 10 percent share of the connection costs for LNG, giving them more scope to invest in LNG projects. At the moment, pipeline companies have to put up the initial cost of the pipelines and then recoup this over the long term via network usage fees that are part of customers gas bills.
“It is important for the supply security of gas in Germany to be able to use as many supply routes and sources as possible,” economy minister Peter Altmaier said in a statement.
Saudi Aramco to buy SABIC in $69 billion chemicals megadeal | Reuters
Saudi Aramco to buy SABIC in $69 billion chemicals megadeal | Reuters:
The world’s largest oil producer Saudi Aramco has agreed to buy a 70 percent stake in Saudi Basic Industries Corp (SABIC) from the kingdom’s wealth fund for $69.1 billion in one of the biggest deals in the global chemical industry.
The agreement to help boost Aramco’s downstream growth plans comes after months of talks between Aramco and the Public Investment Fund (PIF), which contributed to the delay of Aramco’s planned multi-billion dollar initial public offering.
“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities,” said Yasir al-Rumayyan, managing director of the PIF.
The world’s largest oil producer Saudi Aramco has agreed to buy a 70 percent stake in Saudi Basic Industries Corp (SABIC) from the kingdom’s wealth fund for $69.1 billion in one of the biggest deals in the global chemical industry.
The agreement to help boost Aramco’s downstream growth plans comes after months of talks between Aramco and the Public Investment Fund (PIF), which contributed to the delay of Aramco’s planned multi-billion dollar initial public offering.
“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities,” said Yasir al-Rumayyan, managing director of the PIF.
MIDEAST STOCKS-Blue-chips lift #Qatar, Banks boost #Saudi | Reuters
MIDEAST STOCKS-Blue-chips lift Qatar, Banks boost Saudi | Reuters:
Qatar's stock market rose on Wednesday, lifted by shareholder approval for an increase in foreign ownership limits at Qatar Fuel and Mesaieed Petrochemical, while Saudi Arabia rose on the back of its banks.
The Qatar index rose 1.7 percent, with 18 of 20 stocks increasing. Qatar Fuel added 4.2 percent and Mesaieed Petrochemical was up 5.8 percent.
Last year, their parent company, state-owned energy firm, Qatar Petroleum said it would raise the foreign ownership limit in its listed-units to up to 49 percent after limits on foreign ownership were amended.
Qatar's stock market rose on Wednesday, lifted by shareholder approval for an increase in foreign ownership limits at Qatar Fuel and Mesaieed Petrochemical, while Saudi Arabia rose on the back of its banks.
The Qatar index rose 1.7 percent, with 18 of 20 stocks increasing. Qatar Fuel added 4.2 percent and Mesaieed Petrochemical was up 5.8 percent.
Last year, their parent company, state-owned energy firm, Qatar Petroleum said it would raise the foreign ownership limit in its listed-units to up to 49 percent after limits on foreign ownership were amended.
#Dubai tenants drive down rents | Financial Times
Dubai tenants drive down rents | Financial Times:
Dubai’s expat community has been bargaining hard for rent discounts. According to research by JLL, in the last quarter of 2018, average rental prices for apartments were 11 per cent lower while rents for detached homes were down 8 per cent from the same period in 2017.
“Typically, colleagues and friends are getting close to 15 per cent off when they renew their rental contracts,” says Jason (not his real name), 61, a corporate writer for one of the Big Four accounting firms who arrived with his wife from Paris a year and a half ago.
The fall in demand owes much to Dubai’s faltering economy, thanks to regional tensions and the slide in oil prices since 2015, leading to job lay-offs in many sectors. In its March Dubai Economy Tracker, Emirates NBD, a local bank, reported that employment was falling faster than at any time since the survey began in 2010. Jason noticed the lay-offs soon after he arrived, he says, with cuts focused in property sectors and among large international companies that use Dubai as a regional base.
Dubai’s expat community has been bargaining hard for rent discounts. According to research by JLL, in the last quarter of 2018, average rental prices for apartments were 11 per cent lower while rents for detached homes were down 8 per cent from the same period in 2017.
“Typically, colleagues and friends are getting close to 15 per cent off when they renew their rental contracts,” says Jason (not his real name), 61, a corporate writer for one of the Big Four accounting firms who arrived with his wife from Paris a year and a half ago.
The fall in demand owes much to Dubai’s faltering economy, thanks to regional tensions and the slide in oil prices since 2015, leading to job lay-offs in many sectors. In its March Dubai Economy Tracker, Emirates NBD, a local bank, reported that employment was falling faster than at any time since the survey began in 2010. Jason noticed the lay-offs soon after he arrived, he says, with cuts focused in property sectors and among large international companies that use Dubai as a regional base.
Uber Adds #Saudi Investors as Pharo, Branson Shun Kingdom's Cash - Bloomberg
Uber Adds Saudi Investors as Pharo, Branson Shun Kingdom's Cash - Bloomberg:
As global investors reevaluate their relationships with Saudi Arabia after the killing of columnist Jamal Khashoggi, Uber Technologies Inc. just ended up with more shareholders from the kingdom.
The U.S. ride-hailing company will add Prince Alwaleed bin Talal Al Saud’s Kingdom Holding Co., Al Tayyar Travel Group Holding Co. and Saudi Telecom Co. to its shareholder base once it completes the acquisition of Dubai-based rival Careem Networks FZ.
As part of the $3.1 billion deal, existing Careem shareholders will receive notes that can be converted into Uber stock once the company completes its initial public offering expected in April. Saudi Arabia’s Public Investment Fund is already one of Uber’s biggest backers after pumping in $3.5 billion in 2016.
As global investors reevaluate their relationships with Saudi Arabia after the killing of columnist Jamal Khashoggi, Uber Technologies Inc. just ended up with more shareholders from the kingdom.
The U.S. ride-hailing company will add Prince Alwaleed bin Talal Al Saud’s Kingdom Holding Co., Al Tayyar Travel Group Holding Co. and Saudi Telecom Co. to its shareholder base once it completes the acquisition of Dubai-based rival Careem Networks FZ.
As part of the $3.1 billion deal, existing Careem shareholders will receive notes that can be converted into Uber stock once the company completes its initial public offering expected in April. Saudi Arabia’s Public Investment Fund is already one of Uber’s biggest backers after pumping in $3.5 billion in 2016.
#Dubai economy grew 1.94% in 2018 - government says | ZAWYA MENA Edition
Dubai economy grew 1.94% in 2018 - government says | ZAWYA MENA Edition:
Dubai's economy grew 1.94 percent in 2018, the government said on Wednesday, a slowdown from a growth rate of 2.8 percent in 2017.
GDP growth was largely driven by the performance of trade related activities, which grew by 1.3 percent in 2018 from a year earlier, representing 18.1 percent of the total growth achieved last year, the government said in a statement.
Dubai's economy grew 1.94 percent in 2018, the government said on Wednesday, a slowdown from a growth rate of 2.8 percent in 2017.
GDP growth was largely driven by the performance of trade related activities, which grew by 1.3 percent in 2018 from a year earlier, representing 18.1 percent of the total growth achieved last year, the government said in a statement.
Mideast Stocks: Blue-chip banks lift #Qatar, most major Gulf markets up | ZAWYA MENA Edition
Mideast Stocks: Blue-chip banks lift Qatar, most major Gulf markets up | ZAWYA MENA Edition:
Qatar's stock market rose on Wednesday, aided by its blue-chip bank shares, while the Dubai index recouped some losses as all its property firms gained.
The Qatar index added 1 percent as market heavyweight Industries Qatar rose 1.3 percent and Qatar National Bank , the largest bank by assets in the Middle East and Africa, increased 1 percent.
Qatar International Islamic Bank rose 0.9 percent. On Monday, the lender's shareholders approved an increase in its foreign ownership limit to 49 percent from 25 percent.
Qatar's stock market rose on Wednesday, aided by its blue-chip bank shares, while the Dubai index recouped some losses as all its property firms gained.
The Qatar index added 1 percent as market heavyweight Industries Qatar rose 1.3 percent and Qatar National Bank , the largest bank by assets in the Middle East and Africa, increased 1 percent.
Qatar International Islamic Bank rose 0.9 percent. On Monday, the lender's shareholders approved an increase in its foreign ownership limit to 49 percent from 25 percent.
Wednesday outlook: Oil prices edge higher on tightening supplies | ZAWYA MENA Edition
Wednesday outlook: Oil prices edge higher on tightening supplies | ZAWYA MENA Edition:
Oil prices rose again on Wednesday on tightening supplies, however future demand concerns kept the gains in check.
OPEC issued a list of oil production cuts by its members and other major producers for six months starting January 1, to boost confidence in its oil supply reduction pact.
Oil prices have also been boosted by lower supply from Venezuela, as the U.S. introduced petroleum export sanctions against state-owned Venezuelan energy firm PDVSA.
Brent was up by 17 cents, or 0.3 percent, at $68.14 by 0311 GMT. U.S. crude futures added 9 cents, or 0.2 percent.
Oil prices rose again on Wednesday on tightening supplies, however future demand concerns kept the gains in check.
OPEC issued a list of oil production cuts by its members and other major producers for six months starting January 1, to boost confidence in its oil supply reduction pact.
Oil prices have also been boosted by lower supply from Venezuela, as the U.S. introduced petroleum export sanctions against state-owned Venezuelan energy firm PDVSA.
Brent was up by 17 cents, or 0.3 percent, at $68.14 by 0311 GMT. U.S. crude futures added 9 cents, or 0.2 percent.
#Qatar's Nebras Said to Mull More Than $1 Billion Indonesian Sale - Bloomberg
Qatar's Nebras Said to Mull More Than $1 Billion Indonesian Sale - Bloomberg:
Qatari energy investment firm Nebras Power QSC is considering selling its stake in PT Paiton Energy, one of Indonesia’s largest independently owned power producers, according to people familiar with the matter.
Nebras’s 35.5 percent holding in Paiton could be valued at more than $1 billion, the people said, asking not to be identified as the matter is private. Nebras has held initial talks with potential financial advisers, but hasn’t started a formal sale process, the people said.
Qatar, one of the world’s biggest liquefied natural gas producers, set up Doha-based Nebras in 2014 to help build a portfolio of global power assets. The company is controlled by Qatar Electricity & Water Co. and the state sovereign wealth fund. Nebras acquired its stake in Paiton from French utility Engie SA in 2016.
Qatari energy investment firm Nebras Power QSC is considering selling its stake in PT Paiton Energy, one of Indonesia’s largest independently owned power producers, according to people familiar with the matter.
Nebras’s 35.5 percent holding in Paiton could be valued at more than $1 billion, the people said, asking not to be identified as the matter is private. Nebras has held initial talks with potential financial advisers, but hasn’t started a formal sale process, the people said.
Qatar, one of the world’s biggest liquefied natural gas producers, set up Doha-based Nebras in 2014 to help build a portfolio of global power assets. The company is controlled by Qatar Electricity & Water Co. and the state sovereign wealth fund. Nebras acquired its stake in Paiton from French utility Engie SA in 2016.
Tuesday, 26 March 2019
Pharo Hedge Fund Returns #Saudi Cash After Khashoggi Murder - Bloomberg
Pharo Hedge Fund Returns Saudi Cash After Khashoggi Murder - Bloomberg:
A hedge fund has told investors it returned money to Saudi Arabia following the murder of columnist Jamal Khashoggi, according to people with knowledge of the matter.
The move is a rare rebuke to one of the world’s most influential investors. Pharo Management (UK) LLP in December gave back about $300 million that it had previously managed for the kingdom’s central bank Saudi Arabian Monetary Authority, known as SAMA, one of the people said, asking not to be identified because the information is confidential.
Guillaume Fonkenell, 54, who founded Pharo, told some investors in January that the decision was made to uphold its principles due to concerns about Khashoggi’s death at the hands of government agents last year, the person said.
A hedge fund has told investors it returned money to Saudi Arabia following the murder of columnist Jamal Khashoggi, according to people with knowledge of the matter.
The move is a rare rebuke to one of the world’s most influential investors. Pharo Management (UK) LLP in December gave back about $300 million that it had previously managed for the kingdom’s central bank Saudi Arabian Monetary Authority, known as SAMA, one of the people said, asking not to be identified because the information is confidential.
Guillaume Fonkenell, 54, who founded Pharo, told some investors in January that the decision was made to uphold its principles due to concerns about Khashoggi’s death at the hands of government agents last year, the person said.
Emirate of #Sharjah to raise $1bln with seven-year sukuk - source | ZAWYA MENA Edition
Emirate of Sharjah to raise $1bln with seven-year sukuk - source | ZAWYA MENA Edition:
The emirate of Sharjah, the third-largest constituent of the United Arab Emirates, is set to raise $1 billion in seven-year sukuk, or Islamic bonds, a source familiar with the terms of the transaction said.
Sharjah started marketing the paper earlier on Tuesday with a spread of around 180 basis points (bps) over mid-swap, which was later tightened to 155 bps, documents issued by one of the banks leading the deal showed.
Bank ABC, Dubai Islamic Bank , HSBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank have been hired as deal bookrunners.
The emirate of Sharjah, the third-largest constituent of the United Arab Emirates, is set to raise $1 billion in seven-year sukuk, or Islamic bonds, a source familiar with the terms of the transaction said.
Sharjah started marketing the paper earlier on Tuesday with a spread of around 180 basis points (bps) over mid-swap, which was later tightened to 155 bps, documents issued by one of the banks leading the deal showed.
Bank ABC, Dubai Islamic Bank , HSBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank have been hired as deal bookrunners.
Top traders see oil price sustained by tighter market in second half of 2019 | Reuters
Top traders see oil price sustained by tighter market in second half of 2019 | Reuters:
Four of the world’s biggest traders expect the Brent oil price in 2019 to largely linger in the $60s a barrel with a slight rise in the second half of the year due to a tightening market, they said on the sidelines of the FT Commodities Global Summit.
Glencore’s head of oil Alex Beard expects Brent to stay in the mid-$60s while Gunvor chief executive Torbjorn Tornqvist saw $60s to low $70s a barrel.
“I think they (the Saudis) like to see the oil price where it is and not lower,” Gunvor’s Tornqvist said.
Four of the world’s biggest traders expect the Brent oil price in 2019 to largely linger in the $60s a barrel with a slight rise in the second half of the year due to a tightening market, they said on the sidelines of the FT Commodities Global Summit.
Glencore’s head of oil Alex Beard expects Brent to stay in the mid-$60s while Gunvor chief executive Torbjorn Tornqvist saw $60s to low $70s a barrel.
“I think they (the Saudis) like to see the oil price where it is and not lower,” Gunvor’s Tornqvist said.
Oil rises 2 percent as tightening supplies take focus | Reuters
Oil rises 2 percent as tightening supplies take focus | Reuters:
Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.
Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.
Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.
Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.
U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data.
Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.
Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.
Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.
Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.
U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data.
MIDEAST STOCKS-Uber-Careem deal boosts #Saudi, real estate hurts #Dubai | Reuters
MIDEAST STOCKS-Uber-Careem deal boosts Saudi, real estate hurts Dubai | Reuters:
Saudi shares rose on Tuesday boosted by a 10 percent surge in travel operator Al Tayyar Group, a shareholder in ride hailing app Careem which Uber has agreed to buy.
Tayyar said it was expecting to make a gross profit of 1.78 billion riyals ($474.64 million) from the transaction, supporting a 0.1 percent gain in the Saudi index.
Dubai's index fell 0.7 percent, weighed down by declines across its real estate stocks. Dubai's largest listed-developer Emaar Properties lost 2.1 percent and its unit Emaar Malls dropped 1.7 percent.
Saudi shares rose on Tuesday boosted by a 10 percent surge in travel operator Al Tayyar Group, a shareholder in ride hailing app Careem which Uber has agreed to buy.
Tayyar said it was expecting to make a gross profit of 1.78 billion riyals ($474.64 million) from the transaction, supporting a 0.1 percent gain in the Saudi index.
Dubai's index fell 0.7 percent, weighed down by declines across its real estate stocks. Dubai's largest listed-developer Emaar Properties lost 2.1 percent and its unit Emaar Malls dropped 1.7 percent.
Gulf Capital JV Is in Talks to Sell #AbuDhabi Mall to Mubadala - Bloomberg
Gulf Capital JV Is in Talks to Sell Abu Dhabi Mall to Mubadala - Bloomberg:
Abu Dhabi-based private equity firm Gulf Capital PJSC is in talks to sell a mall to Mubadala Investment Co. and is raising a loan to boost liquidity.
Gulf Related, a joint venture between Gulf Capital’s real estate unit and U.S. developer Related Cos., is close to selling the Galleria Mall on Abu Dhabi’s Al Maryah Island to the sovereign wealth fund after operating the development for five years, Karim El Solh, Gulf Capital chief executive officer and Gulf Related’s co-managing partner, said in an interview.
“We are going to close very soon on that,” Mubadala executive director of real estate and infrastructure, Ali Eid Almheiri, said in the same interview, without revealing the size of the deal. “It just became obvious that we are the matching buyer.”
Abu Dhabi-based private equity firm Gulf Capital PJSC is in talks to sell a mall to Mubadala Investment Co. and is raising a loan to boost liquidity.
Gulf Related, a joint venture between Gulf Capital’s real estate unit and U.S. developer Related Cos., is close to selling the Galleria Mall on Abu Dhabi’s Al Maryah Island to the sovereign wealth fund after operating the development for five years, Karim El Solh, Gulf Capital chief executive officer and Gulf Related’s co-managing partner, said in an interview.
“We are going to close very soon on that,” Mubadala executive director of real estate and infrastructure, Ali Eid Almheiri, said in the same interview, without revealing the size of the deal. “It just became obvious that we are the matching buyer.”
Al Dhabi Capital’s Yasin Sees Pockets of Opportunity in #Saudi Market – Bloomberg
Al Dhabi Capital’s Yasin Sees Pockets of Opportunity in Saudi Market – Bloomberg:
Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, discusses Middle East markets and where he’s finding opportunity. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, discusses Middle East markets and where he’s finding opportunity. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Deutsche Bank Said to Face Qatari Resistance to Bank Merger - Bloomberg
Deutsche Bank Said to Face Qatari Resistance to Bank Merger - Bloomberg:
Deutsche Bank AG is facing resistance from top Qatari shareholders to its merger plans with Commerzbank AG, four people familiar with the matter said.
The investors are concerned that a deal would dilute their holdings if Deutsche Bank is forced to raise equity in a share sale to help fund the deal, the people said, asking not to be identified because the matter is private. The Persian Gulf nation is also seeking to negotiate other concessions before it backs the deal, the people said.
Deutsche Bank shares have slumped by about two thirds since Qatar first invested about five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn.
Deutsche Bank AG is facing resistance from top Qatari shareholders to its merger plans with Commerzbank AG, four people familiar with the matter said.
The investors are concerned that a deal would dilute their holdings if Deutsche Bank is forced to raise equity in a share sale to help fund the deal, the people said, asking not to be identified because the matter is private. The Persian Gulf nation is also seeking to negotiate other concessions before it backs the deal, the people said.
Deutsche Bank shares have slumped by about two thirds since Qatar first invested about five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn.
Arcane Pollution Rule May Cost #Saudis and Neighbors Billions - Bloomberg
Arcane Pollution Rule May Cost Saudis and Neighbors Billions - Bloomberg:
The world’s biggest oil-exporting region may lose billions of dollars in annual revenue when an obscure United Nations requirement for ships to burn cleaner fuel takes effect next year.
Saudi Arabia, Iraq and other Middle Eastern suppliers of heavy, high-sulfur crude could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels. The UN maritime agency’s new rule kicks in on Jan. 1, and estimates of the possible price impact vary widely.
Revenues could drop by $5 a barrel starting in the second half as refiners and shippers prepare for the change, Citigroup Inc. says. Some traders expect a less dramatic slide, but even Saudi Energy Minister Khalid Al-Falih, whose country ships more oil than any other, sees a $1 reduction for some grades.
The world’s biggest oil-exporting region may lose billions of dollars in annual revenue when an obscure United Nations requirement for ships to burn cleaner fuel takes effect next year.
Saudi Arabia, Iraq and other Middle Eastern suppliers of heavy, high-sulfur crude could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels. The UN maritime agency’s new rule kicks in on Jan. 1, and estimates of the possible price impact vary widely.
Revenues could drop by $5 a barrel starting in the second half as refiners and shippers prepare for the change, Citigroup Inc. says. Some traders expect a less dramatic slide, but even Saudi Energy Minister Khalid Al-Falih, whose country ships more oil than any other, sees a $1 reduction for some grades.
Dubai to Allow Schools to Raise Fees After Freezing Last Year - Bloomberg
Dubai to Allow Schools to Raise Fees After Freezing Last Year - Bloomberg:
Dubai will allow most schools to raise fees in the next academic year after freezing them last year.
The Dubai Executive Council capped the fee increase at 2.07 percent for about 90 percent of students at private schools, according to a statement on Dubai Media Office’s website. Fees for the remaining 10 percent of students will rise above that limit, depending on their school’s performance.
The new fee structure is expected to be effective for the 2019-2020 academic year.
Dubai will allow most schools to raise fees in the next academic year after freezing them last year.
The Dubai Executive Council capped the fee increase at 2.07 percent for about 90 percent of students at private schools, according to a statement on Dubai Media Office’s website. Fees for the remaining 10 percent of students will rise above that limit, depending on their school’s performance.
The new fee structure is expected to be effective for the 2019-2020 academic year.
INTERVIEW: DFSA's new CEO needs to balance more than his workload | ZAWYA MENA Edition
INTERVIEW: DFSA's new CEO needs to balance more than his workload | ZAWYA MENA Edition: Bryan Stirewalt has stepped into the CEO’s role at Dubai Financial Services Authority at what is a very busy time for the regulatory body overseeing Dubai International Financial Centre (DIFC).
Stirewalt, who replaced the retiring Ian Johnson as CEO in September 2018 after an eight year-stint running the regulator’s supervisory arm, not only has the forthcoming visit of the Financial Action Task Force (FATF) – the global body overseeing anti-money laundering and terrorist financing regimes – to contend with, he also has to deal with the ongoing fallout from private equity firm Abraaj Group’s collapse, and the challenge of keeping abreast with technological changes as DIFC makes its push to become a global fintech hub.
For the next three months, it is the visit by officials from Paris-based FATF in July that will occupy much of the regulator’s time. The fourth Mutual Evaluation of the United Arab Emirates will be the first to take place since the 2008 financial crisis, and although the DFSA has no jurisdiction over criminal law, as the regulator of the country’s biggest financial free zone, it has been working with a national committee to make sure that its own rules are aligned with national anti-terror financing and anti-money laundering efforts.
Stirewalt, who replaced the retiring Ian Johnson as CEO in September 2018 after an eight year-stint running the regulator’s supervisory arm, not only has the forthcoming visit of the Financial Action Task Force (FATF) – the global body overseeing anti-money laundering and terrorist financing regimes – to contend with, he also has to deal with the ongoing fallout from private equity firm Abraaj Group’s collapse, and the challenge of keeping abreast with technological changes as DIFC makes its push to become a global fintech hub.
For the next three months, it is the visit by officials from Paris-based FATF in July that will occupy much of the regulator’s time. The fourth Mutual Evaluation of the United Arab Emirates will be the first to take place since the 2008 financial crisis, and although the DFSA has no jurisdiction over criminal law, as the regulator of the country’s biggest financial free zone, it has been working with a national committee to make sure that its own rules are aligned with national anti-terror financing and anti-money laundering efforts.
INTERVIEW: Daman Investments to launch two new funds | ZAWYA MENA Edition
INTERVIEW: Daman Investments to launch two new funds | ZAWYA MENA Edition:
Dubai-based Daman Investments is launching two new funds, with the first targeting conventional investors and the second being offered to those seeking shariah-compliant investments, the company’s head of asset management has told Zawya.
“We have new investment strategies we are trying to implement. We are targeting conventional and shariah-compliant investors,” Ali El Adou, head of asset management at Daman Investments told Zawya in an interview at the company’s office last week.
Daman Investments said in November last year that it was developing a new investment strategy targeting institutional investors, which would see it wind down three old funds ahead of the launch of its first new fund this year.
Dubai-based Daman Investments is launching two new funds, with the first targeting conventional investors and the second being offered to those seeking shariah-compliant investments, the company’s head of asset management has told Zawya.
“We have new investment strategies we are trying to implement. We are targeting conventional and shariah-compliant investors,” Ali El Adou, head of asset management at Daman Investments told Zawya in an interview at the company’s office last week.
Daman Investments said in November last year that it was developing a new investment strategy targeting institutional investors, which would see it wind down three old funds ahead of the launch of its first new fund this year.
#Saudi's Al Tayyar Travel exits Careem in $474mln deal | ZAWYA MENA Edition
Saudi's Al Tayyar Travel exits Careem in $474mln deal | ZAWYA MENA Edition:
Al Tayyar Travel Group, the Middle East’s leading technology-powered travel and tourism company, has announced that it will divest its investment in Careem, the leading ride-hailing app in Mena, with an exit value of SR1.78 billion ($474.58 million).
The move is in connection with the acquisition of Careem by Uber Technologies, a San Francisco headquartered transportation network company.
The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1, 2020.
Al Tayyar Travel Group, the Middle East’s leading technology-powered travel and tourism company, has announced that it will divest its investment in Careem, the leading ride-hailing app in Mena, with an exit value of SR1.78 billion ($474.58 million).
The move is in connection with the acquisition of Careem by Uber Technologies, a San Francisco headquartered transportation network company.
The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1, 2020.
Oil rises further above $67 as OPEC cuts counter economic concern | Reuters
Oil rises further above $67 as OPEC cuts counter economic concern | Reuters:
Oil rose further above $67 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela.
Brent was up 50 cents at $67.71 a barrel at 1003 GMT, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added 72 cents at $59.54.
Oil rose further above $67 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela.
Brent was up 50 cents at $67.71 a barrel at 1003 GMT, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added 72 cents at $59.54.
Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East | Reuters
Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East | Reuters:
Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp more than a year ago.
Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp more than a year ago.
#Saudi Aramco building global gas business to cut carbon footprint | Reuters
Saudi Aramco building global gas business to cut carbon footprint | Reuters:
Saudi Aramco, the world’s biggest oil producer, was building an international gas business and converting more crude oil into chemicals in a bid to lessen its carbon footprint, Chief Executive Amin Nasser said on Tuesday.
Aramco is building “an energy bridge” between Saudi Arabia and China to meet the Asian energy consumer’s increasing need for oil and gas as well as for chemicals and liquefied natural gas (LNG), according to a copy of Nasser’s speech at an industry event in Beijing.
“We need to help our stakeholders - including here in China and the wider Asia region - realize that oil and gas will remain vital to world energy for decades to come,” he said.
Saudi Aramco, the world’s biggest oil producer, was building an international gas business and converting more crude oil into chemicals in a bid to lessen its carbon footprint, Chief Executive Amin Nasser said on Tuesday.
Aramco is building “an energy bridge” between Saudi Arabia and China to meet the Asian energy consumer’s increasing need for oil and gas as well as for chemicals and liquefied natural gas (LNG), according to a copy of Nasser’s speech at an industry event in Beijing.
“We need to help our stakeholders - including here in China and the wider Asia region - realize that oil and gas will remain vital to world energy for decades to come,” he said.
UPDATE 1- #SaudiArabia extends domestic debt curve with new sukuk issue | Reuters
UPDATE 1-Saudi Arabia extends domestic debt curve with new sukuk issue | Reuters:
Saudi Arabia sold around $1.6 billion in local currency debt with maturities of 10 and 15 years, the longest-dated public debt ever issued domestically by the kingdom.
Saudi Arabia began offering local currency bonds in monthly auctions in mid-2015 to help cover a huge budget deficit caused by low oil prices.
It suspended those issues in late 2016 as banks struggled to absorb so much debt and Riyadh began to borrow overseas, but launched monthly sukuk issues in mid-2017.
Saudi Arabia sold around $1.6 billion in local currency debt with maturities of 10 and 15 years, the longest-dated public debt ever issued domestically by the kingdom.
Saudi Arabia began offering local currency bonds in monthly auctions in mid-2015 to help cover a huge budget deficit caused by low oil prices.
It suspended those issues in late 2016 as banks struggled to absorb so much debt and Riyadh began to borrow overseas, but launched monthly sukuk issues in mid-2017.
MIDEAST STOCKS-Financials hurt #Qatar, most Gulf markets muted | Reuters
MIDEAST STOCKS-Financials hurt Qatar, most Gulf markets muted | Reuters:
Qatar’s stock market slipped on Tuesday as its blue-chip shares faltered. Most major Gulf markets dipped in subdued trading.
Qatar’s index fell 0.2 percent, led by a 1.5 percent decline in Qatar National Bank, the largest bank by assets in the Middle East and Africa, and a 3.4 percent drop in Qatar Fuel.
Qatari Islamic lender Masraf Al Rayan was down 0.4 percent. It has hired banks before a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, Reuters reported.
Qatar’s stock market slipped on Tuesday as its blue-chip shares faltered. Most major Gulf markets dipped in subdued trading.
Qatar’s index fell 0.2 percent, led by a 1.5 percent decline in Qatar National Bank, the largest bank by assets in the Middle East and Africa, and a 3.4 percent drop in Qatar Fuel.
Qatari Islamic lender Masraf Al Rayan was down 0.4 percent. It has hired banks before a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, Reuters reported.
Monday, 25 March 2019
Oil prices near flat as economic slowdown fears tempered | Reuters
Oil prices near flat as economic slowdown fears tempered | Reuters:
Oil prices were little changed on Monday as investors shrugged off fears of a global economic slowdown and focused on the prospect of tighter supply and lower U.S. crude inventories ahead.
Brent crude oil futures climbed 30 cents to $67.33 a barrel by 11:56 a.m. EST (1556 GMT), while U.S. West Texas Intermediate (WTI) futures rose 11 cents to $59.15 a barrel.
Crude oil pared earlier losses as the U.S. stock market turned positive.
Oil prices were little changed on Monday as investors shrugged off fears of a global economic slowdown and focused on the prospect of tighter supply and lower U.S. crude inventories ahead.
Brent crude oil futures climbed 30 cents to $67.33 a barrel by 11:56 a.m. EST (1556 GMT), while U.S. West Texas Intermediate (WTI) futures rose 11 cents to $59.15 a barrel.
Crude oil pared earlier losses as the U.S. stock market turned positive.
Hedge funds increase appetite for oil: Kemp | Reuters
Hedge funds increase appetite for oil: Kemp | Reuters:
Hedge funds bought another 65 million barrels of petroleum futures and options in the week to March 19, taking total purchases over the last 10 weeks to 384 million barrels, according to reports published on Friday.
The one-week increase in net long positions was the largest since the end of August 2018, a strong bullish signal about the expected direction of prices over the next six months.
Hedge funds and other money managers have boosted their overall bullish position in the six most important derivative contracts linked to crude and fuels prices to 685 million barrels, up from just 302 million on Jan. 8.
Hedge funds bought another 65 million barrels of petroleum futures and options in the week to March 19, taking total purchases over the last 10 weeks to 384 million barrels, according to reports published on Friday.
The one-week increase in net long positions was the largest since the end of August 2018, a strong bullish signal about the expected direction of prices over the next six months.
Hedge funds and other money managers have boosted their overall bullish position in the six most important derivative contracts linked to crude and fuels prices to 685 million barrels, up from just 302 million on Jan. 8.
MIDEAST STOCKS-Egypt hit by sell-off of blue chips, financials lift #Qatar | Reuters
MIDEAST STOCKS-Egypt hit by sell-off of blue chips, financials lift Qatar | Reuters:
Egypt's index fell sharply on Monday, pulled down by its blue-chip shares, while Qatar's index was lifted by its financial stocks.
The Egyptian blue-chip index dropped 1.2 percent, with 26 of its 30 stocks declining. Egyptians were the net sellers of stocks during the session and non-Arab foreigners were the net buyers, according to data on the exchange website.
Egyptian Chemical Industries lost 5 percent and Palm Hills Development declined 4.6 percent. The former said it expects to post profit of 296.8 million Egyptian pounds ($17.21 million)on sales of 3.63 billion Egyptian pounds for the full-year 2019-2020.
Egypt's index fell sharply on Monday, pulled down by its blue-chip shares, while Qatar's index was lifted by its financial stocks.
The Egyptian blue-chip index dropped 1.2 percent, with 26 of its 30 stocks declining. Egyptians were the net sellers of stocks during the session and non-Arab foreigners were the net buyers, according to data on the exchange website.
Egyptian Chemical Industries lost 5 percent and Palm Hills Development declined 4.6 percent. The former said it expects to post profit of 296.8 million Egyptian pounds ($17.21 million)on sales of 3.63 billion Egyptian pounds for the full-year 2019-2020.
Oil prices hit by worries of sharp economic slowdown | ZAWYA MENA Edition
Oil prices hit by worries of sharp economic slowdown | ZAWYA MENA Edition:
Oil prices slipped on Monday, with concerns of a sharp economic slowdown overshadowing support from tighter supply due to OPEC's production cuts and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 36 cents, or 0.54 percent, at $66.67 per barrel at 1200 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.75 per barrel, down 29 cents, or 0.49 percent.
Both crude oil price benchmarks closed down last week after briefly hitting their highest since November 2018.
Oil prices slipped on Monday, with concerns of a sharp economic slowdown overshadowing support from tighter supply due to OPEC's production cuts and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 36 cents, or 0.54 percent, at $66.67 per barrel at 1200 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.75 per barrel, down 29 cents, or 0.49 percent.
Both crude oil price benchmarks closed down last week after briefly hitting their highest since November 2018.
Algeria faces economic crunch as oil and gas revenues fall short | Financial Times
Algeria faces economic crunch as oil and gas revenues fall short | Financial Times:
Weeks of protests in Algeria have revealed popular discontent with Abdelaziz Bouteflika, the ailing president. A less visible threat to Algiers is the looming economic crisis, as revenues from the north African country’s oil and gas exports continue to fall short of its expanding needs, politicians and analysts warn.
“The debate is now focused on politics, but the real iceberg is the risk of an economic crisis in the next couple of years and no one has a strategy to tackle this,” said Riccardo Fabiani, Algeria analyst at Energy Aspects, a London-based consultancy. “Foreign reserves are falling very quickly and they probably have less than two years of import cover left.”
The third-biggest natural gas supplier to Europe, Algeria depends on hydrocarbon exports to bring in more than 95 per cent of foreign currency receipts. Oil and gas revenue in 2018 accounted for an estimated 40 per cent of the budget.
Weeks of protests in Algeria have revealed popular discontent with Abdelaziz Bouteflika, the ailing president. A less visible threat to Algiers is the looming economic crisis, as revenues from the north African country’s oil and gas exports continue to fall short of its expanding needs, politicians and analysts warn.
“The debate is now focused on politics, but the real iceberg is the risk of an economic crisis in the next couple of years and no one has a strategy to tackle this,” said Riccardo Fabiani, Algeria analyst at Energy Aspects, a London-based consultancy. “Foreign reserves are falling very quickly and they probably have less than two years of import cover left.”
The third-biggest natural gas supplier to Europe, Algeria depends on hydrocarbon exports to bring in more than 95 per cent of foreign currency receipts. Oil and gas revenue in 2018 accounted for an estimated 40 per cent of the budget.
Who keeps buying California's scarce water? #SaudiArabia | US news | The Guardian
Who keeps buying California's scarce water? Saudi Arabia | US news | The Guardian:
Four hours east of Los Angeles, in a drought-stricken area of a drought-afflicted state, is a small town called Blythe where alfalfa is king. More than half of the town’s 94,000 acres are bushy blue-green fields growing the crop.
Massive industrial storehouses line the southern end of town, packed with thousands upon thousands of stacks of alfalfa bales ready to be fed to dairy cows – but not cows in California’s Central Valley or Montana’s rangelands.
Instead, the alfalfa will be fed to cows in Saudi Arabia.
Four hours east of Los Angeles, in a drought-stricken area of a drought-afflicted state, is a small town called Blythe where alfalfa is king. More than half of the town’s 94,000 acres are bushy blue-green fields growing the crop.
Massive industrial storehouses line the southern end of town, packed with thousands upon thousands of stacks of alfalfa bales ready to be fed to dairy cows – but not cows in California’s Central Valley or Montana’s rangelands.
Instead, the alfalfa will be fed to cows in Saudi Arabia.
Speaking of EM: #Dubai’s Real Estate Slump Is No Blip (Podcast) - Bloomberg
Bloomberg:
Dubai became famous selling glitzy real estate projects on artificial islands to international investors. With those home prices now in the midst of a protracted slump that most analysts predict could continue for at least another year, concerns about spillover effects are growing.
Dubai-based reporters Filipe Pacheco and Matthew Martin speak to Dana El Baltaji about how the emirate’s real estate slump is hitting banks, markets and the wider economy.
Dubai became famous selling glitzy real estate projects on artificial islands to international investors. With those home prices now in the midst of a protracted slump that most analysts predict could continue for at least another year, concerns about spillover effects are growing.
Dubai-based reporters Filipe Pacheco and Matthew Martin speak to Dana El Baltaji about how the emirate’s real estate slump is hitting banks, markets and the wider economy.
#Saudi Market Will Not Correct After MSCI Inclusion, Says Fim Partner’s CEO – Bloomberg
Saudi Market Will Not Correct After MSCI Inclusion, Says Fim Partner’s CEO – Bloomberg:
Hedi Ben Mlouka, chief executive officer and chief investment officer at Fim Partners, discusses how he thinks the GCC markets will perform with their inclusion into some of the global indexes and his outlook for the Saudi consumer. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Hedi Ben Mlouka, chief executive officer and chief investment officer at Fim Partners, discusses how he thinks the GCC markets will perform with their inclusion into some of the global indexes and his outlook for the Saudi consumer. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Oil Steady After Biggest Loss in Three Weeks Amid Economy Fears - Bloomberg
Oil Steady After Biggest Loss in Three Weeks Amid Economy Fears - Bloomberg:
Oil steadied in New York after its biggest loss in three weeks, yet concerns lingered that a slowdown in global economic growth will erode fuel consumption.
West Texas Intermediate futures were little changed near $59 a barrel, after losing 1.6 percent on Friday. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy. Some concerns over a new crude glut abated however as drilling rigs in America fell to the lowest in almost a year.
Crude has retreated after reaching a four-month high on Thursday as disappointing global economic data and a lack of resolution to the U.S.-China trade war damped sentiment. The Organization of the Petroleum Exporting Countries and its allies’ commitment to curb output, coupled with supply disruptions in Venezuela and Iran, is stopping prices from falling further.
Oil steadied in New York after its biggest loss in three weeks, yet concerns lingered that a slowdown in global economic growth will erode fuel consumption.
West Texas Intermediate futures were little changed near $59 a barrel, after losing 1.6 percent on Friday. A closely watched gauge of U.S. Treasuries inverted for the first time since 2007, a signal a recession may be coming in the world’s largest economy. Some concerns over a new crude glut abated however as drilling rigs in America fell to the lowest in almost a year.
Crude has retreated after reaching a four-month high on Thursday as disappointing global economic data and a lack of resolution to the U.S.-China trade war damped sentiment. The Organization of the Petroleum Exporting Countries and its allies’ commitment to curb output, coupled with supply disruptions in Venezuela and Iran, is stopping prices from falling further.
UAE's National Bank of Ras Al-Khaimah hires banks for bond: document | ZAWYA MENA Edition
UAE's National Bank of Ras Al-Khaimah hires banks for bond: document | ZAWYA MENA Edition:
The National Bank of Ras Al-Khaimah has hired banks to arrange fixed income investor meetings before a potential U.S. dollar-denominated bond sale, a document issued by one of the banks showed on Monday.
The bank, majority owned by the government of the Ras Al Khaimah emirate in the United Arab Emirates, appointed Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank as joint lead managers and bookrunners.
Investor meetings will start on March 28 and a five-year senior unsecured benchmark deal might follow, subject to market conditions. Benchmark deals are generally meant to be upwards of $500 million.
The National Bank of Ras Al-Khaimah has hired banks to arrange fixed income investor meetings before a potential U.S. dollar-denominated bond sale, a document issued by one of the banks showed on Monday.
The bank, majority owned by the government of the Ras Al Khaimah emirate in the United Arab Emirates, appointed Bank ABC, Citi, Emirates NBD Capital, First Abu Dhabi Bank, ICBC and Standard Chartered Bank as joint lead managers and bookrunners.
Investor meetings will start on March 28 and a five-year senior unsecured benchmark deal might follow, subject to market conditions. Benchmark deals are generally meant to be upwards of $500 million.
UPDATE 1- #UAE's Shuaa Capital, ADFG mandate banks on merger plan - ADFG | Reuters
UPDATE 1-UAE's Shuaa Capital, ADFG mandate banks on merger plan - ADFG | Reuters:
Shuaa Capital and Abu Dhabi Financial Group (ADFG) have mandated UBS and JPMorgan Chase & Co as advisers on a potential merger between the United Arab Emirates investment firms, an ADFG spokesman said.
Dubai-listed investment bank Shuaa Capital said on Sunday it had started talks on a possible merger with ADFG.
Shuaa said each party has formed a working group, and upon review, working groups will report their recommendations to their respective boards, adding that there is no certainty that a deal will happen.
Shuaa Capital and Abu Dhabi Financial Group (ADFG) have mandated UBS and JPMorgan Chase & Co as advisers on a potential merger between the United Arab Emirates investment firms, an ADFG spokesman said.
Dubai-listed investment bank Shuaa Capital said on Sunday it had started talks on a possible merger with ADFG.
Shuaa said each party has formed a working group, and upon review, working groups will report their recommendations to their respective boards, adding that there is no certainty that a deal will happen.
Oil prices steady amid worries of severe economic slowdown | Reuters
Oil prices steady amid worries of severe economic slowdown | Reuters:
Oil prices were steady on Monday, with concerns of a sharp economic slowdown competing with support from tighter supply due to OPEC’s production cutbacks and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 7 cents, or 0.1 percent, at $66.96 per barrel at 0955 GMT, while U.S. West Texas Intermediate (WTI) futures were unchanged at $59.04 per barrel.
Both crude oil price benchmarks closed down on the week since briefly hitting their highest since November 2018.
Oil prices were steady on Monday, with concerns of a sharp economic slowdown competing with support from tighter supply due to OPEC’s production cutbacks and U.S. sanctions on Iran and Venezuela.
Brent crude oil futures were down 7 cents, or 0.1 percent, at $66.96 per barrel at 0955 GMT, while U.S. West Texas Intermediate (WTI) futures were unchanged at $59.04 per barrel.
Both crude oil price benchmarks closed down on the week since briefly hitting their highest since November 2018.
MIDEAST STOCKS-Financials pull #Saudi, #Qatar lifted by QIIB | Reuters
MIDEAST STOCKS-Financials pull Saudi, Qatar lifted by QIIB | Reuters:
Saudi Arabia’s stock market slipped on Monday, dragged down by financial and petrochemicals shares, while Qatar was lifted by Qatar International Islamic Bank (QIIB) raising its foreign ownership limit.
The Saudi market ended the previous week at its highest in almost four years after its inclusion in the FTSE Russell’s emerging-market index.
The Saudi index fell 0.6 percent, with Al Rajhi Bank losing 0.6 percent and its insurance unit Al Rajhi Takaful plunging 8.9 percent. The latter reported a 7.4 percent drop in its gross written premiums for the full year.
Saudi Arabia’s stock market slipped on Monday, dragged down by financial and petrochemicals shares, while Qatar was lifted by Qatar International Islamic Bank (QIIB) raising its foreign ownership limit.
The Saudi market ended the previous week at its highest in almost four years after its inclusion in the FTSE Russell’s emerging-market index.
The Saudi index fell 0.6 percent, with Al Rajhi Bank losing 0.6 percent and its insurance unit Al Rajhi Takaful plunging 8.9 percent. The latter reported a 7.4 percent drop in its gross written premiums for the full year.
Oil majors and utilities begin battle for power | Financial Times
Oil majors and utilities begin battle for power | Financial Times:
Ten years ago, you knew where you stood with your energy suppliers. Oil companies sold road fuel, while utilities supplied electricity and gas. Today, those old lines of demarcation are blurring: utilities can fill up your car and oil companies want to keep your lights on.
Technological progress and the threat of climate change are forcing both oil companies and utilities to rethink their strategies, and are pushing them into each other’s territory.
The result is set to be a period of intensified competition and instability, as companies that were previously able largely to forget about each other are now forced to battle for dominance.
Ten years ago, you knew where you stood with your energy suppliers. Oil companies sold road fuel, while utilities supplied electricity and gas. Today, those old lines of demarcation are blurring: utilities can fill up your car and oil companies want to keep your lights on.
Technological progress and the threat of climate change are forcing both oil companies and utilities to rethink their strategies, and are pushing them into each other’s territory.
The result is set to be a period of intensified competition and instability, as companies that were previously able largely to forget about each other are now forced to battle for dominance.
The risks of #SaudiArabia’s nuclear power plans | Financial Times
The risks of Saudi Arabia’s nuclear power plans | Financial Times:
In normal circumstances, the decision by any country to improve the efficiency of its energy supplies by investing in new technology would barely be worthy of attention. But Saudi Arabia is not a normal country and the combination of the technology chosen — civil nuclear power — and concerns over the strategy of Crown Prince Mohammed bin Salman has made the Saudi move a cause of debate.
The Saudi plans for nuclear development are not new. Eight years ago a target of building 16 reactors over 20 years was announced. The commitment has been regularly repeated since and updated to a new target of 17 gigawatts of capacity by 2032 or 2040
Dialogues were established with a number of the countries and companies capable of supplying the necessary reactors — including South Korea, Russia, France and China, as well as the US through General Electric and Westinghouse. Various pre-development studies were started. But no construction work has begun and Saudi’s growing electricity needs continue to be met almost entirely by oil and natural gas.
In normal circumstances, the decision by any country to improve the efficiency of its energy supplies by investing in new technology would barely be worthy of attention. But Saudi Arabia is not a normal country and the combination of the technology chosen — civil nuclear power — and concerns over the strategy of Crown Prince Mohammed bin Salman has made the Saudi move a cause of debate.
The Saudi plans for nuclear development are not new. Eight years ago a target of building 16 reactors over 20 years was announced. The commitment has been regularly repeated since and updated to a new target of 17 gigawatts of capacity by 2032 or 2040
Dialogues were established with a number of the countries and companies capable of supplying the necessary reactors — including South Korea, Russia, France and China, as well as the US through General Electric and Westinghouse. Various pre-development studies were started. But no construction work has begun and Saudi’s growing electricity needs continue to be met almost entirely by oil and natural gas.
Sunday, 24 March 2019
Uber to sign $3.1bn deal for Careem as early as Monday | Financial Times
Uber to sign $3.1bn deal for Careem as early as Monday | Financial Times:
Uber’s long-running talks to acquire Dubai-based rival Careem are nearing completion, with final agreement expected to be signed as early as Monday or Tuesday.
Two people familiar with the transaction said the US ride-hailing company would acquire Careem for about $3.1bn, via a mixture of cash and convertible notes.
Careem, founded in 2012 by two former McKinsey consultants, was valued at around $2bn during a fundraising round last year.
Uber’s long-running talks to acquire Dubai-based rival Careem are nearing completion, with final agreement expected to be signed as early as Monday or Tuesday.
Two people familiar with the transaction said the US ride-hailing company would acquire Careem for about $3.1bn, via a mixture of cash and convertible notes.
Careem, founded in 2012 by two former McKinsey consultants, was valued at around $2bn during a fundraising round last year.
#UAE government’s surplus in 2018 stood at Dh67.5b
UAE government’s surplus in 2018 stood at Dh67.5b:
The UAE government’s surplus posted Dh67.5 billion in 2018, according to the latest figures released by the Ministry of Finance.
The surplus increase is attributed to the rise in the UAE Government’s revenues, which hit Dh455.5 billion in 2018, while expenditures totalled Dh388.147 billion.
Earlier, the Federal Competitiveness And Statistics Authority announced that the government’s surplus recorded Dh28 billion in the first nine months of 2018.
The UAE government’s surplus posted Dh67.5 billion in 2018, according to the latest figures released by the Ministry of Finance.
The surplus increase is attributed to the rise in the UAE Government’s revenues, which hit Dh455.5 billion in 2018, while expenditures totalled Dh388.147 billion.
Earlier, the Federal Competitiveness And Statistics Authority announced that the government’s surplus recorded Dh28 billion in the first nine months of 2018.
QCB reserves 'remains high'; economic diversification to sustain robust growth: EIU
QCB reserves 'remains high'; economic diversification to sustain robust growth: EIU:
Reserves at the Qatar Central Banks “remains high” although annual average oil prices are forecast to fall in 2019, Economist Intelligence Unit (EIU) has said in an overview.
The QCB reserves will take care of the country’s repayment obligations, the EIU noted.
According to the EIU, the "threat of capital outflows in the wake of the regional blockade has largely subsided" with the recovery and subsequent stabilisation of foreign reserves and the return to a current-account surplus in 2018.
Reserves at the Qatar Central Banks “remains high” although annual average oil prices are forecast to fall in 2019, Economist Intelligence Unit (EIU) has said in an overview.
The QCB reserves will take care of the country’s repayment obligations, the EIU noted.
According to the EIU, the "threat of capital outflows in the wake of the regional blockade has largely subsided" with the recovery and subsequent stabilisation of foreign reserves and the return to a current-account surplus in 2018.
Fitch affirms QIB’s ‘A’ rating with stable outlook - The Peninsula Qatar
Fitch affirms QIB’s ‘A’ rating with stable outlook - The Peninsula Qatar:
Fitch Ratings has affirmed Qatar Islamic Bank’s (QIB), Long Term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook. It also upgraded QIB’s Viability Rating (VR) to ‘bbb’ from ‘bbb-’.
The rating reflects QIB’s strong and stable standing in Qatar, with the highest market share of Islamic Banking assets of 42.3 percent and about 11 percent of the total banking assets at end of the fiscal year 2018.
QIB reported a growth in net profit by 14.5 percent in 2018 reflecting the Bank’s outstanding performance across all divisions. The rating considers the Bank’s adequate profitability, sound asset-quality metrics, satisfactory capital ratios and sufficient liquid assets.
Fitch Ratings has affirmed Qatar Islamic Bank’s (QIB), Long Term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook. It also upgraded QIB’s Viability Rating (VR) to ‘bbb’ from ‘bbb-’.
The rating reflects QIB’s strong and stable standing in Qatar, with the highest market share of Islamic Banking assets of 42.3 percent and about 11 percent of the total banking assets at end of the fiscal year 2018.
QIB reported a growth in net profit by 14.5 percent in 2018 reflecting the Bank’s outstanding performance across all divisions. The rating considers the Bank’s adequate profitability, sound asset-quality metrics, satisfactory capital ratios and sufficient liquid assets.
OPEC Faces Uncertainty on Oil Supply Demand Outlook - Bloomberg
OPEC Faces Uncertainty on Oil Supply Demand Outlook - Bloomberg:
What do OPEC and the Federal Reserve have in common, other than being on the receiving end of angry tweets from President Donald Trump?
They are both having a particularly terrible time assessing the outlook for demand, and this is making setting policy exceptionally fraught.
The Fed must adjust interest rates and other policy levers to achieve its twin goals of low and stable inflation and full employment. In the case of OPEC nations and their band of friends, ministers have to judge the production needed to balance global supply and demand. At the current juncture, this means deciding whether to continue restraints on output set at the start of 2017 – their current deal to cap supply ends in three months.
What do OPEC and the Federal Reserve have in common, other than being on the receiving end of angry tweets from President Donald Trump?
They are both having a particularly terrible time assessing the outlook for demand, and this is making setting policy exceptionally fraught.
The Fed must adjust interest rates and other policy levers to achieve its twin goals of low and stable inflation and full employment. In the case of OPEC nations and their band of friends, ministers have to judge the production needed to balance global supply and demand. At the current juncture, this means deciding whether to continue restraints on output set at the start of 2017 – their current deal to cap supply ends in three months.
Abu Dhabi Partners With Microsoft, SoftBank to Start Tech Hub - Bloomberg
Abu Dhabi Partners With Microsoft, SoftBank to Start Tech Hub - Bloomberg:
Abu Dhabi is teaming up with companies such as Microsoft Corp. and SoftBank Group Corp. to open a technology startup center as the oil-rich emirate seeks to diversify its economy.
The so-called Hub71 is based in the Abu Dhabi Global Market, an offshore financial center that houses Blackstone Group International Partners and Aberdeen Standard Investments among others.
Abu Dhabi is teaming up with companies such as Microsoft Corp. and SoftBank Group Corp. to open a technology startup center as the oil-rich emirate seeks to diversify its economy.
The so-called Hub71 is based in the Abu Dhabi Global Market, an offshore financial center that houses Blackstone Group International Partners and Aberdeen Standard Investments among others.
Uber to Seal $3.1 Billion Deal to Buy Middle East Rival Careem - Bloomberg
Uber to Seal $3.1 Billion Deal to Buy Middle East Rival Careem - Bloomberg:
Uber Technologies Inc. is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem Networks FZ as early as this week, according to people with knowledge of the matter.
The U.S. ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, the people said, asking not to identified because the talks are private. The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet seen by Bloomberg.
Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the people said.
Uber Technologies Inc. is set to announce a $3.1 billion cash-and-share deal to acquire its Dubai-based rival Careem Networks FZ as early as this week, according to people with knowledge of the matter.
The U.S. ride-hailing giant will pay $1.4 billion in cash and $1.7 billion in convertible notes for Careem, the people said, asking not to identified because the talks are private. The notes will be convertible into Uber shares at a price equal to $55 per share, according to the term-sheet seen by Bloomberg.
Shareholders in Careem, whose backers include Saudi Prince Alwaleed bin Talal’s investment firm and Japanese e-commerce company Rakuten Inc., have been asked to agree to the terms of the transaction by Monday evening and a deal could be announced as soon as Tuesday, the people said.
Shuaa's shares rocket as company announces merger talks with #AbuDhabi Financial Group | ZAWYA MENA Edition
Shuaa's shares rocket as company announces merger talks with Abu Dhabi Financial Group | ZAWYA MENA Edition:
Shares in Dubai-listed investment bank Shuaa Capital surged on Sunday after the company confirmed to the exchange media reports about initial discussions for a merger with its major shareholder, Abu Dhabi Financial Group.
The investment bank’s statement said that discussions have commenced with Abu Dhabi Financial Group “regarding the possibility of a merger of the two institutions to become a larger, financial listed firm".
Television station Al-Arabiya had reported the news earlier in the day, citing sources. The statement said the structure of the conbined entity would be "subject to legal and regulatory consent.”
Shares in Dubai-listed investment bank Shuaa Capital surged on Sunday after the company confirmed to the exchange media reports about initial discussions for a merger with its major shareholder, Abu Dhabi Financial Group.
The investment bank’s statement said that discussions have commenced with Abu Dhabi Financial Group “regarding the possibility of a merger of the two institutions to become a larger, financial listed firm".
Television station Al-Arabiya had reported the news earlier in the day, citing sources. The statement said the structure of the conbined entity would be "subject to legal and regulatory consent.”
#AbuDhabi's Senaat assets reach $7.4bln, debt stable at $1.6bln - CEO | ZAWYA MENA Edition
Abu Dhabi's Senaat assets reach $7.4bln, debt stable at $1.6bln - CEO | ZAWYA MENA Edition:
Senaat, the largest industrial investment holding company in the United Arab Emirates, has said that the value of its industrial asset portfolio reached 27.3 billion dirhams ($7.43 billion) at the end of 2018, according to its chief executive.
Jamal Salem Al Dhaheri told reporters at a media briefing in Abu Dhabi that the state-owned conglomerate’s portfolio had grown “by a compounded annual rate of 15.5 percent since 2004”.
Total debt reached 6 billion dirhams at the end of 2018, he said in Arabic, noting that the 1.1 billion dirham sukuk issued by the firm in the last quarter of 2018 was used to re-finance existing debt.
Senaat, the largest industrial investment holding company in the United Arab Emirates, has said that the value of its industrial asset portfolio reached 27.3 billion dirhams ($7.43 billion) at the end of 2018, according to its chief executive.
Jamal Salem Al Dhaheri told reporters at a media briefing in Abu Dhabi that the state-owned conglomerate’s portfolio had grown “by a compounded annual rate of 15.5 percent since 2004”.
Total debt reached 6 billion dirhams at the end of 2018, he said in Arabic, noting that the 1.1 billion dirham sukuk issued by the firm in the last quarter of 2018 was used to re-finance existing debt.
#Qatar's Masraf Al Rayan hires banks for debut dollar sukuk - sources | Reuters
Qatar's Masraf Al Rayan hires banks for debut dollar sukuk - sources | Reuters:
Qatari Islamic lender Masraf Al Rayan has hired banks ahead of a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, sources familiar with the matter said.
The planned deal - which would be Masraf’s first public debt sale - would follow last week’s international bond issues by Qatar Islamic Bank and Qatar National Bank, as the Gulf state’s banks take advantage of improved market conditions to boost their finances.
The planned five-year sukuk will be of benchmark size, which generally means upwards of $500 million, the sources added.
Qatari Islamic lender Masraf Al Rayan has hired banks ahead of a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, sources familiar with the matter said.
The planned deal - which would be Masraf’s first public debt sale - would follow last week’s international bond issues by Qatar Islamic Bank and Qatar National Bank, as the Gulf state’s banks take advantage of improved market conditions to boost their finances.
The planned five-year sukuk will be of benchmark size, which generally means upwards of $500 million, the sources added.
#AbuDhabi's Al Hilal Bank cuts 160 jobs ahead of three-way merger -sources | Reuters
Abu Dhabi's Al Hilal Bank cuts 160 jobs ahead of three-way merger -sources | Reuters:
Abu Dhabi’s Al Hilal Bank has made about 160 people redundant ahead of a three-way merger with Abu Dhabi Commercial Bank and Union National Bank,, three sources familiar with the matter told Reuters.
Majority of those laid off were staff outsourced from a Dubai-based company, one of the sources said.
The staff were largely in the retail and sales business while a small number were in the administration and finance departments, the sources said.
Abu Dhabi’s Al Hilal Bank has made about 160 people redundant ahead of a three-way merger with Abu Dhabi Commercial Bank and Union National Bank,, three sources familiar with the matter told Reuters.
Majority of those laid off were staff outsourced from a Dubai-based company, one of the sources said.
The staff were largely in the retail and sales business while a small number were in the administration and finance departments, the sources said.
#Saudi-led consortium, DEWA complete financing for #Dubai solar park | Reuters
Saudi-led consortium, DEWA complete financing for Dubai solar park | Reuters:
Saudi Arabia’s ACWA Power and Dubai Electricity and Water Authority (DEWA) said on Sunday they had completed the financing of a 950 megawatt concentrated solar power project in Dubai.
The companies did not disclose the size of the deal in Sunday’s statement but sources told Reuters in January the financing would be more than $2 billion.
The project, called Noor Energy 1, was launched in a partnership between DEWA, ACWA Power and China’s Silk Road Fund.
Saudi Arabia’s ACWA Power and Dubai Electricity and Water Authority (DEWA) said on Sunday they had completed the financing of a 950 megawatt concentrated solar power project in Dubai.
The companies did not disclose the size of the deal in Sunday’s statement but sources told Reuters in January the financing would be more than $2 billion.
The project, called Noor Energy 1, was launched in a partnership between DEWA, ACWA Power and China’s Silk Road Fund.
MIDEAST STOCKS- #Saudi index retreats from multi-year peak; Gulf rivals also fall | Reuters
MIDEAST STOCKS-Saudi index retreats from multi-year peak; Gulf rivals also fall | Reuters:
Saudi Arabia's stock market closed lower on Sunday, along with other Gulf markets, having ended the previous week at its highest in nearly four years after inclusion in the FTSE Russell's emerging-market index.
Saudi's Tadawul index will have a weighting of 2.9 percent in the FTSE Emerging All Cap Index and this year will join the MSCI emerging market benchmark.
The Saudi index dropped 0.7 percent on Sunday, dragged down by petrochemical and banking shares.
Saudi Arabia's stock market closed lower on Sunday, along with other Gulf markets, having ended the previous week at its highest in nearly four years after inclusion in the FTSE Russell's emerging-market index.
Saudi's Tadawul index will have a weighting of 2.9 percent in the FTSE Emerging All Cap Index and this year will join the MSCI emerging market benchmark.
The Saudi index dropped 0.7 percent on Sunday, dragged down by petrochemical and banking shares.
Saturday, 23 March 2019
Why #UAE is a global connectivity hub | ZAWYA MENA Edition
Why UAE is a global connectivity hub | ZAWYA MENA Edition:
The UAE has positioned itself as a leading global business and connectivity hub, and this was affirmed recently when both etisalat and du announced upgrades to their broadband speeds bringing a focus yet again on Dubai's 5G ambition.
Almost all of intercontinental traffic - whether it is basic Web browsing and e-commerce to streaming video and artificial intelligence - crosses a subsea cable with less than 1 per cent of the remaining traffic carried through satellite systems. The recent Capacity Middle East 2019 event in Dubai highlighted the developments in subsea segment.
Farid Faraidooni, deputy CEO for enterprise solutions at EITC, said: "Capacity ME provided an ideal platform to showcase datamena and present the full suite of innovative solutions available to prospective clients. We pride ourselves on delivering a world class environment enabling customers to benefit from the advantages of seamless end-to-end connectivity and datamena's position as the region's richest global partner ecosystem of 150-plus enterprises, carriers, cloud and content providers. The premier event helped to project the UAE as a leading global business and connectivity hub."
The UAE has positioned itself as a leading global business and connectivity hub, and this was affirmed recently when both etisalat and du announced upgrades to their broadband speeds bringing a focus yet again on Dubai's 5G ambition.
Almost all of intercontinental traffic - whether it is basic Web browsing and e-commerce to streaming video and artificial intelligence - crosses a subsea cable with less than 1 per cent of the remaining traffic carried through satellite systems. The recent Capacity Middle East 2019 event in Dubai highlighted the developments in subsea segment.
Farid Faraidooni, deputy CEO for enterprise solutions at EITC, said: "Capacity ME provided an ideal platform to showcase datamena and present the full suite of innovative solutions available to prospective clients. We pride ourselves on delivering a world class environment enabling customers to benefit from the advantages of seamless end-to-end connectivity and datamena's position as the region's richest global partner ecosystem of 150-plus enterprises, carriers, cloud and content providers. The premier event helped to project the UAE as a leading global business and connectivity hub."
Dariga Nazarbayeva: Kazakhstan’s understudy president | Financial Times
Dariga Nazarbayeva: Kazakhstan’s understudy president | Financial Times:
Three years ago, Kazakhstan’s then-president Nursultan Nazarbayev made it clear that he thought his country was ready for a female head of state. “This is possible,” he said. “Given that I have three daughters, I have a special attitude to women.”
This week, his prophecy began to take shape. Mr Nazarbayev, 78, unexpectedly announced he would resign from office after almost three decades in charge, and appointed his eldest daughter Dariga Nazarbayeva as Speaker of the country’s Senate, a role that occupies second place in the line of succession.
“Let me thank you again for your trust and assure you that I will apply all my knowledge and experience to achieve the goals and objectives set,” Ms Nazarbayeva said on Wednesday. Should acting president Kassym-Zhomart Tokayev die in office or resign, Ms Nazarbayeva would succeed him as the country’s first female president. Or she may win power at a presidential election scheduled for next year.
Three years ago, Kazakhstan’s then-president Nursultan Nazarbayev made it clear that he thought his country was ready for a female head of state. “This is possible,” he said. “Given that I have three daughters, I have a special attitude to women.”
This week, his prophecy began to take shape. Mr Nazarbayev, 78, unexpectedly announced he would resign from office after almost three decades in charge, and appointed his eldest daughter Dariga Nazarbayeva as Speaker of the country’s Senate, a role that occupies second place in the line of succession.
“Let me thank you again for your trust and assure you that I will apply all my knowledge and experience to achieve the goals and objectives set,” Ms Nazarbayeva said on Wednesday. Should acting president Kassym-Zhomart Tokayev die in office or resign, Ms Nazarbayeva would succeed him as the country’s first female president. Or she may win power at a presidential election scheduled for next year.
The week in energy: The Exxon Valdez spill 30 years on | Financial Times
The week in energy: The Exxon Valdez spill 30 years on | Financial Times:
Thirty years ago this Sunday, at just after midnight on March 24, 1989, the Exxon Valdez supertanker ran aground in Prince William Sound off the south coast of Alaska. No-one was hurt, but the ship’s hull was ruptured, and of the 1.26m barrels of crude on board about 258,000 spilled into the water. The National Transportation Safety Board inquiry found that the causes of the accident included the failure of the ship’s master to provide a proper navigation watch “because of impairment from alcohol”, as well as inadequate personnel training and deficient management oversight.
In terms of volume released, the spill does not make the list of the world’s largest, but it was one of the worst in US waters. The harm caused by a spill is also not a direct function of the quantity of oil: a release in the cool waters of Prince William Sound, where oil breaks down more slowly, could be more damaging than a larger volume in the Gulf of Mexico, where temperatures are warmer and there are more plentiful microbes that thrive on natural oil seeps. The location of the spill also added to its emotional impact: the pictures of the oil fouling the pristine waters of Alaska shocked the world.
Thirty years ago this Sunday, at just after midnight on March 24, 1989, the Exxon Valdez supertanker ran aground in Prince William Sound off the south coast of Alaska. No-one was hurt, but the ship’s hull was ruptured, and of the 1.26m barrels of crude on board about 258,000 spilled into the water. The National Transportation Safety Board inquiry found that the causes of the accident included the failure of the ship’s master to provide a proper navigation watch “because of impairment from alcohol”, as well as inadequate personnel training and deficient management oversight.
In terms of volume released, the spill does not make the list of the world’s largest, but it was one of the worst in US waters. The harm caused by a spill is also not a direct function of the quantity of oil: a release in the cool waters of Prince William Sound, where oil breaks down more slowly, could be more damaging than a larger volume in the Gulf of Mexico, where temperatures are warmer and there are more plentiful microbes that thrive on natural oil seeps. The location of the spill also added to its emotional impact: the pictures of the oil fouling the pristine waters of Alaska shocked the world.
Friday, 22 March 2019
ADCB and UNB shareholders greenlight mega-merger
ADCB and UNB shareholders greenlight mega-merger:
Shareholders of Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) have given their approval for a merger of the two banks and then to acquire Al Hilal Bank, creating an entity with Dh6.1 billion in net profit.
At the separate ADCB and UNB annual general meetings on Thursday, shareholders approved the terms of the transaction, under which ADCB will issue convertible bonds to Al Hilal’s shareholders as the acquisition price paid by ADCB for the privately-held bank.
The bonds will be converted into over 117 million new shares in ADCB, increasing the share capital of the bank to up to Dh6.9 billion on conversion of the bonds. ADCB said at the meeting the acquisition of Al Hilal Bank is expected to close in the second quarter, having earlier said that the merger with UNB alone is likely to be effective only by May 1.
Shareholders of Abu Dhabi Commercial Bank (ADCB) and Union National Bank (UNB) have given their approval for a merger of the two banks and then to acquire Al Hilal Bank, creating an entity with Dh6.1 billion in net profit.
At the separate ADCB and UNB annual general meetings on Thursday, shareholders approved the terms of the transaction, under which ADCB will issue convertible bonds to Al Hilal’s shareholders as the acquisition price paid by ADCB for the privately-held bank.
The bonds will be converted into over 117 million new shares in ADCB, increasing the share capital of the bank to up to Dh6.9 billion on conversion of the bonds. ADCB said at the meeting the acquisition of Al Hilal Bank is expected to close in the second quarter, having earlier said that the merger with UNB alone is likely to be effective only by May 1.
Art is alive and kicking in #Dubai — and so is the bigger business picture | Arab News
Art is alive and kicking in Dubai — and so is the bigger business picture | Arab News:
There are several ways to feel the economic pulse of Dubai. You can pore over statistics from the Department of Economic Development; you can look at the sales and valuation figures from the property agents and the Land Department; you can look at the financial indices from the emirate’s two stock markets.
But by far the most enjoyable, and also maybe the most reliable, is to attend the opening night of Art Dubai, the annual cultural extravaganza that has been going for 13 years now and has made the emirate the main artistic center of the region. I’ve been to 12 of those, and in my experience the event faithfully reflects the underlying economic sentiment of the city.
In the early days, there was almost a feel of the California Gold Rush about it, with serious money chasing works at big valuations. Then, during the 2009 financial crisis, it all went rather flat, with investors keeping their wallets in their pockets for all but the most precious works.
There are several ways to feel the economic pulse of Dubai. You can pore over statistics from the Department of Economic Development; you can look at the sales and valuation figures from the property agents and the Land Department; you can look at the financial indices from the emirate’s two stock markets.
But by far the most enjoyable, and also maybe the most reliable, is to attend the opening night of Art Dubai, the annual cultural extravaganza that has been going for 13 years now and has made the emirate the main artistic center of the region. I’ve been to 12 of those, and in my experience the event faithfully reflects the underlying economic sentiment of the city.
In the early days, there was almost a feel of the California Gold Rush about it, with serious money chasing works at big valuations. Then, during the 2009 financial crisis, it all went rather flat, with investors keeping their wallets in their pockets for all but the most precious works.
QSE index closes at 9,953.72 points - The Peninsula #Qatar
QSE index closes at 9,953.72 points - The Peninsula Qatar:
Qatar Stock Exchange’s (QSE) benchmark index lost 16.83 points, or 0.17 percent, last week when the bourse closed yesterday at 9,953.72 points.
Trading value during last week decreased by 46.09 percent to reach QR1.33bn compared to QR2.48bn.
Trading volume decreased by 38.98 percent to reach 46.14 million shares, as against 75.63 million shares, while the number of transactions fell by 11.28 percent, to reach 27,553 transactions as compared to 31,056 transactions. Market cap rose by 0.40 percent to reach QR563.31bn as compared to QR561.06bn at the end of previous week, reports QNA.
Qatar Stock Exchange’s (QSE) benchmark index lost 16.83 points, or 0.17 percent, last week when the bourse closed yesterday at 9,953.72 points.
Trading value during last week decreased by 46.09 percent to reach QR1.33bn compared to QR2.48bn.
Trading volume decreased by 38.98 percent to reach 46.14 million shares, as against 75.63 million shares, while the number of transactions fell by 11.28 percent, to reach 27,553 transactions as compared to 31,056 transactions. Market cap rose by 0.40 percent to reach QR563.31bn as compared to QR561.06bn at the end of previous week, reports QNA.
Oil dips further from 2019 highs on demand worries | Reuters
Oil dips further from 2019 highs on demand worries | Reuters:
Oil fell about 2 percent on Friday, slipping further from 2019 highs as focus shifted to a lack of progress in U.S.-China trade talks and as grim manufacturing data from Germany and the U.S. reignited fears of a slowdown in the global economy and oil demand.
Wall Street’s main indexes tumbled between 1 and 2 percent on Friday after manufacturers in Europe, Japan and the United States suffered in March as surveys showed trade tensions had impacted factory output, a setback for hopes the global economy might be turning the corner on its slowdown.
Brent crude futures settled at $67.30 per barrel, 83 cents, or 1.2 percent below their last close and down about 0.2 percent on the week. The contract hit a four-month high of $68.69 on Thursday.
Oil fell about 2 percent on Friday, slipping further from 2019 highs as focus shifted to a lack of progress in U.S.-China trade talks and as grim manufacturing data from Germany and the U.S. reignited fears of a slowdown in the global economy and oil demand.
Wall Street’s main indexes tumbled between 1 and 2 percent on Friday after manufacturers in Europe, Japan and the United States suffered in March as surveys showed trade tensions had impacted factory output, a setback for hopes the global economy might be turning the corner on its slowdown.
Brent crude futures settled at $67.30 per barrel, 83 cents, or 1.2 percent below their last close and down about 0.2 percent on the week. The contract hit a four-month high of $68.69 on Thursday.
Oil slips further from 2019 highs on trade worries | Reuters
Oil slips further from 2019 highs on trade worries | Reuters:
Oil fell further from 2019 highs on Friday as focus shifted to a lack of progress in U.S.-China trade talks, but prices found support from supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.
Brent crude futures were at $67.11 per barrel at 1204 GMT, 75 cents below their last close and broadly flat on the week. The contract hit a four-month high of $68.69 on Thursday.
Benchmark Brent has risen by just under a third since the beginning of January, when OPEC started to cut production.
Oil fell further from 2019 highs on Friday as focus shifted to a lack of progress in U.S.-China trade talks, but prices found support from supply cuts led by producer club OPEC and by U.S. sanctions on Iran and Venezuela.
Brent crude futures were at $67.11 per barrel at 1204 GMT, 75 cents below their last close and broadly flat on the week. The contract hit a four-month high of $68.69 on Thursday.
Benchmark Brent has risen by just under a third since the beginning of January, when OPEC started to cut production.
More shale, who cares? #SaudiArabia pushes for at least $70 oil | Reuters
More shale, who cares? Saudi Arabia pushes for at least $70 oil | Reuters:
Budget needs are forcing Saudi Arabia to push for oil prices of at least $70 per barrel this year, industry sources say, even though U.S. shale oil producers could benefit and Riyadh’s share of global crude markets might be further eroded.
Riyadh, OPEC’s de facto leader, said it was steeply cutting exports to its main customers in March and April despite refiners asking for more of its oil. The move defies U.S. President Donald Trump’s demands for OPEC to help reduce prices while he toughens sanctions on oil producers Iran and Venezuela.
The export cuts are designed to prop up prices, sources close to Saudi oil policy say. Saudi officials say the kingdom’s output policies are merely intended to balance the world market and reduce high inventories.
Budget needs are forcing Saudi Arabia to push for oil prices of at least $70 per barrel this year, industry sources say, even though U.S. shale oil producers could benefit and Riyadh’s share of global crude markets might be further eroded.
Riyadh, OPEC’s de facto leader, said it was steeply cutting exports to its main customers in March and April despite refiners asking for more of its oil. The move defies U.S. President Donald Trump’s demands for OPEC to help reduce prices while he toughens sanctions on oil producers Iran and Venezuela.
The export cuts are designed to prop up prices, sources close to Saudi oil policy say. Saudi officials say the kingdom’s output policies are merely intended to balance the world market and reduce high inventories.
Thursday, 21 March 2019
Network International Confirms Plan to Proceed With London IPO - Bloomberg
Network International Confirms Plan to Proceed With London IPO - Bloomberg:
Middle Eastern payment processor Network International plans to list its shares in London next month in the first big initial public offering in the U.K. this year.
Indicative price range, together with the maximum number of shares to be sold in the offer, will be determined in due course, the company said in a statement. Network International intends to have a free float of at least 25 percent of its issued share capital.
An IPO could value the company at about $3 billion, people familiar with the matter said in November and the company expects to be eligible for inclusion in FTSE U.K. indexes. Warburg Pincus and General Atlantic jointly own a 49 percent stake in Network International, while Dubai’s biggest bank, Emirates NBD PJSC, holds the remaining 51 percent.
Middle Eastern payment processor Network International plans to list its shares in London next month in the first big initial public offering in the U.K. this year.
Indicative price range, together with the maximum number of shares to be sold in the offer, will be determined in due course, the company said in a statement. Network International intends to have a free float of at least 25 percent of its issued share capital.
An IPO could value the company at about $3 billion, people familiar with the matter said in November and the company expects to be eligible for inclusion in FTSE U.K. indexes. Warburg Pincus and General Atlantic jointly own a 49 percent stake in Network International, while Dubai’s biggest bank, Emirates NBD PJSC, holds the remaining 51 percent.
#AbuDhabi's Mubadala Explores Asia Investments and Partnerships - Bloomberg
Abu Dhabi's Mubadala Explores Asia Investments and Partnerships - Bloomberg:
Abu Dhabi’s Mubadala Investment Co., which has committed $15 billion to SoftBank Group Corp.’s Vision Fund, is exploring investments and new partnerships in Asia.
The fund is looking at sectors including hi-tech industries, artificial intelligence, health care, real estate, as well as traditional private equity, Mubadala’s deputy group Chief Executive Officer Waleed Al Mokarrab Al Muhairi said in an interview with Bloomberg TV in Hong Kong on Thursday.
“We have strong partnerships with a lot of different entities” in places such as Hong Kong, China, Japan and Singapore, Al Muhairi said.
Abu Dhabi’s Mubadala Investment Co., which has committed $15 billion to SoftBank Group Corp.’s Vision Fund, is exploring investments and new partnerships in Asia.
The fund is looking at sectors including hi-tech industries, artificial intelligence, health care, real estate, as well as traditional private equity, Mubadala’s deputy group Chief Executive Officer Waleed Al Mokarrab Al Muhairi said in an interview with Bloomberg TV in Hong Kong on Thursday.
“We have strong partnerships with a lot of different entities” in places such as Hong Kong, China, Japan and Singapore, Al Muhairi said.
Family Office With London Roots Goes on Global Buying Spree - Bloomberg
Family Office With London Roots Goes on Global Buying Spree - Bloomberg:
Alvarium Investments, a multifamily office with stakes in some City of London hotels, has snapped up five small wealth-management firms in the past eight months, adding about $1 billion in client assets.
The latest acquisition was Paris-based asset manager Iskander, Alvarium said in a statement Thursday that didn’t include terms. Other recent purchases include U.K.-based Casteel Capital in February, Swiss multifamily office Albacore in November and two New Zealand-based money managers.
The firm, formerly known as LJ Partnership, was also part of a joint venture that bought four Grange hotels in London last week for about 1 billion pounds ($1.3 billion). Alvarium’s biggest backers include Hong Kong’s Peterson Group and Dilmun, a New York family office with ties to the Qatari royal family.
Alvarium Investments, a multifamily office with stakes in some City of London hotels, has snapped up five small wealth-management firms in the past eight months, adding about $1 billion in client assets.
The latest acquisition was Paris-based asset manager Iskander, Alvarium said in a statement Thursday that didn’t include terms. Other recent purchases include U.K.-based Casteel Capital in February, Swiss multifamily office Albacore in November and two New Zealand-based money managers.
The firm, formerly known as LJ Partnership, was also part of a joint venture that bought four Grange hotels in London last week for about 1 billion pounds ($1.3 billion). Alvarium’s biggest backers include Hong Kong’s Peterson Group and Dilmun, a New York family office with ties to the Qatari royal family.
#Dubai Buyers Still Love Emaar Villas as 2018 Sales Almost Double - Bloomberg
Dubai Buyers Still Love Emaar Villas as 2018 Sales Almost Double - Bloomberg:
Dubai’s property market’s woes aren’t denting appetite for villas just yet.
Emaar Properties PJSC said on Thursday revenue from villa sales jumped 90 percent last year to 7.84 billion dirhams ($2.13 billion), the biggest increase across its property segments, according to a breakdown of the 2018 earnings originally released last month.
Home prices and rents have dropped by as much as a third since peaking in 2014 in Dubai, as the Middle East’s financial and commerce hub struggles with an economic slowdown. The Real Estate & Construction Index on Dubai’s stock market fell 39 percent last year, its lowest level since the global financial crisis in 2008.
Dubai’s property market’s woes aren’t denting appetite for villas just yet.
Emaar Properties PJSC said on Thursday revenue from villa sales jumped 90 percent last year to 7.84 billion dirhams ($2.13 billion), the biggest increase across its property segments, according to a breakdown of the 2018 earnings originally released last month.
Home prices and rents have dropped by as much as a third since peaking in 2014 in Dubai, as the Middle East’s financial and commerce hub struggles with an economic slowdown. The Real Estate & Construction Index on Dubai’s stock market fell 39 percent last year, its lowest level since the global financial crisis in 2008.
Saudis Spiral Deeper Into Isolation Amid U.S. Ire Over #Khashoggi - Bloomberg
Saudis Spiral Deeper Into Isolation Amid U.S. Ire Over Khashoggi - Bloomberg:
Saudi Crown Prince Mohammed Bin Salman’s U.S. trip a year ago was packed with the sort of events most world leaders struggle to secure: a meeting at Bill Gates’s home, a tour of Amazon.com Inc.’s headquarters and a private visit to Virgin Galactic’s hangar in the Mojave Desert.
The murder of Jamal Khashoggi destroyed all that, leaving the 33-year-old heir to the Saudi throne shunned, his government unable to repair ties with its most important foreign partner and the crown prince’s grand vision for economic development increasingly out of reach.
Rather than melt away, congressional anger at Saudi Arabia’s role in killing Khashoggi -- a U.S. resident and Washington Post columnist -- has solidified, helping fuel this month’s vote by the Republican-controlled Senate rejecting U.S. military support for the Saudi-led war in Yemen. The measure awaits House action.
Saudi Crown Prince Mohammed Bin Salman’s U.S. trip a year ago was packed with the sort of events most world leaders struggle to secure: a meeting at Bill Gates’s home, a tour of Amazon.com Inc.’s headquarters and a private visit to Virgin Galactic’s hangar in the Mojave Desert.
The murder of Jamal Khashoggi destroyed all that, leaving the 33-year-old heir to the Saudi throne shunned, his government unable to repair ties with its most important foreign partner and the crown prince’s grand vision for economic development increasingly out of reach.
Rather than melt away, congressional anger at Saudi Arabia’s role in killing Khashoggi -- a U.S. resident and Washington Post columnist -- has solidified, helping fuel this month’s vote by the Republican-controlled Senate rejecting U.S. military support for the Saudi-led war in Yemen. The measure awaits House action.
Emaar Propertes' shares drop after firm proposes 15% dividend | ZAWYA MENA Edition
Emaar Propertes' shares drop after firm proposes 15% dividend | ZAWYA MENA Edition:
Emaar Properties, Dubai's largest listed developer, has proposed a 15 percent dividend for the year 2018, in line with estimates.
In a statement to the Dubai exchange, the company said that its board of directors has recommended to distribute dividends to its shareholders amounting to 1.07 billion United Arab Emirates dirhams ($291 million), or 15 fils per share, which was in line with an estimate by broker Arqaam Capital.
The company announced a full-year net profit for last year of 6.11 billion dirhams, compared to 5.57 billion dirhams for the year 2017, translating into a 9.7 percent increase. Revenues for 2018 stood at 25.69 billion dirhams, compared to 18.75 billion dirhams in 2017 - a 37 percent increase.
Emaar Properties, Dubai's largest listed developer, has proposed a 15 percent dividend for the year 2018, in line with estimates.
In a statement to the Dubai exchange, the company said that its board of directors has recommended to distribute dividends to its shareholders amounting to 1.07 billion United Arab Emirates dirhams ($291 million), or 15 fils per share, which was in line with an estimate by broker Arqaam Capital.
The company announced a full-year net profit for last year of 6.11 billion dirhams, compared to 5.57 billion dirhams for the year 2017, translating into a 9.7 percent increase. Revenues for 2018 stood at 25.69 billion dirhams, compared to 18.75 billion dirhams in 2017 - a 37 percent increase.
Corrected: Badwa Capital’s new investment arm targets education, healthcare and logistics sectors | ZAWYA MENA Edition
Corrected: Badwa Capital’s new investment arm targets education, healthcare and logistics sectors | ZAWYA MENA Edition:
The new investment management company launched by Dubai-based Badwa Capital last month will target investments in physical infrastructure in areas such as education, healthcare and logistics, one of the firm’s partners has said.
The company announced its entry to the investment management business last month, with its press release stating that the business is “anchored with $100 million in capital”, adding that it would target both family and institutional investors. (Read more here).
The firm, which is regulated by the Dubai Financial Services Authority, has a target to become the “pre-eminent investment management firm in the Middle East,” partner Abdulaziz Alfalih told Zawya in an interview.
The new investment management company launched by Dubai-based Badwa Capital last month will target investments in physical infrastructure in areas such as education, healthcare and logistics, one of the firm’s partners has said.
The company announced its entry to the investment management business last month, with its press release stating that the business is “anchored with $100 million in capital”, adding that it would target both family and institutional investors. (Read more here).
The firm, which is regulated by the Dubai Financial Services Authority, has a target to become the “pre-eminent investment management firm in the Middle East,” partner Abdulaziz Alfalih told Zawya in an interview.
MIDEAST STOCKS- #Saudi near-4 year high days after entering FTSE Russell index | Reuters
MIDEAST STOCKS-Saudi near-4 year high days after entering FTSE Russell index | Reuters:
All of Saudi Arabia's banks rose on
Thursday, lifting its stock exchange to a near-four year high
following its inclusion in the FTSE Russell's emerging-market
index this week.
Saudi's Tadawul index will have a weighting of 2.9
percent in the FTSE Emerging All Cap Index and this year will
join the MSCI emerging market benchmark. The market is
positioned for passive fund inflows of around $20 billion.
Saudi Arabia's index was up 0.8 percent with Al Rajhi Bank
and Riyad Bank gaining 2.2 percent each.
All of Saudi Arabia's banks rose on
Thursday, lifting its stock exchange to a near-four year high
following its inclusion in the FTSE Russell's emerging-market
index this week.
Saudi's Tadawul index will have a weighting of 2.9
percent in the FTSE Emerging All Cap Index and this year will
join the MSCI emerging market benchmark. The market is
positioned for passive fund inflows of around $20 billion.
Saudi Arabia's index was up 0.8 percent with Al Rajhi Bank
and Riyad Bank gaining 2.2 percent each.
MIDEAST STOCKS-Real estate hurts #Dubai, ex-dividend stocks weigh on #Qatar | Reuters
MIDEAST STOCKS-Real estate hurts Dubai, ex-dividend stocks weigh on Qatar | Reuters:
Dubai’s stock market dropped on Thursday, weighed down by its property shares, while Qatar slipped as its heavyweight stocks traded ex-dividend.
In Dubai, the index fell 0.7 percent after four straight days of gains, with blue-chip developer Emaar Properties decreasing 1.7 percent. Its board proposed a full-year dividend of 15 fils a share.
Emaar’s unit Emaar Malls fell 2.3 percent after declaring an unchanged full-year dividend of 10 fils per share.
Dubai’s stock market dropped on Thursday, weighed down by its property shares, while Qatar slipped as its heavyweight stocks traded ex-dividend.
In Dubai, the index fell 0.7 percent after four straight days of gains, with blue-chip developer Emaar Properties decreasing 1.7 percent. Its board proposed a full-year dividend of 15 fils a share.
Emaar’s unit Emaar Malls fell 2.3 percent after declaring an unchanged full-year dividend of 10 fils per share.
New shipping rules leave oil traders strangely paralysed | Financial Times
New shipping rules leave oil traders strangely paralysed | Financial Times:
It does not take a huge shift in supply or demand to unsettle the 100m barrel-a-day global oil market, with most of the big price swings of the past two decades caused by one side of the equation moving out of alignment by 2 per cent or less.
So it’s little surprise that a looming shift in the global shipping fuel market, which makes up about 3 per cent of the total oil market, has caught the attention of traders.
The International Maritime Organization, a body of the UN, from next year will require all ships to stop burning high-sulphur fuels — generally the cheap, but highly polluting remnants of the refining process — and switch to something more akin to the diesel you might put in your car.
It does not take a huge shift in supply or demand to unsettle the 100m barrel-a-day global oil market, with most of the big price swings of the past two decades caused by one side of the equation moving out of alignment by 2 per cent or less.
So it’s little surprise that a looming shift in the global shipping fuel market, which makes up about 3 per cent of the total oil market, has caught the attention of traders.
The International Maritime Organization, a body of the UN, from next year will require all ships to stop burning high-sulphur fuels — generally the cheap, but highly polluting remnants of the refining process — and switch to something more akin to the diesel you might put in your car.
Revolutionary Guards drill into Iran’s gas potential | Financial Times
Revolutionary Guards drill into Iran’s gas potential | Financial Times:
Iran’s Revolutionary Guards are looking to fill a vacuum in the energy sector created by western companies that pulled out of the Islamic republic following the reimposition of US sanctions.
Saeed Mohammad, head of Khatam-ul-Anbia, the construction arm of the elite force, said his organisation was ready to replace Total, the French company, in the development of phase 11 of the South Pars gasfield, the republic’s flagship hydrocarbons project.
“The Islamic Revolutionary Guard Corps stands by the dedicated government against this fierce economic war and is in the frontline of [foiling] economic conspiracies of the [US],” he said in a speech at the launch of new projects at South Pars this week.
Iran’s Revolutionary Guards are looking to fill a vacuum in the energy sector created by western companies that pulled out of the Islamic republic following the reimposition of US sanctions.
Saeed Mohammad, head of Khatam-ul-Anbia, the construction arm of the elite force, said his organisation was ready to replace Total, the French company, in the development of phase 11 of the South Pars gasfield, the republic’s flagship hydrocarbons project.
“The Islamic Revolutionary Guard Corps stands by the dedicated government against this fierce economic war and is in the frontline of [foiling] economic conspiracies of the [US],” he said in a speech at the launch of new projects at South Pars this week.
Landmark for Saudi stocks as index providers become kingmakers | Financial Times
Landmark for Saudi stocks as index providers become kingmakers | Financial Times:
A landmark year for Saudi Arabia’s stock market will have little to do with Saudi Aramco, the country’s oil giant whose IPO plan has been put on hold.
Instead, the world’s three largest index providers will funnel billions and billions of dollars into Saudi stocks after admitting them to benchmarks whose influence has grown alongside the rise of passive investing over the past decade.
The process, which began this week when FTSE Russell and S&P Dow Jones added the stocks to their indices, raises questions over what investors will be buying given the country’s largest and highest-profile company, Saudi Aramco, remains state-owned.
A landmark year for Saudi Arabia’s stock market will have little to do with Saudi Aramco, the country’s oil giant whose IPO plan has been put on hold.
Instead, the world’s three largest index providers will funnel billions and billions of dollars into Saudi stocks after admitting them to benchmarks whose influence has grown alongside the rise of passive investing over the past decade.
The process, which began this week when FTSE Russell and S&P Dow Jones added the stocks to their indices, raises questions over what investors will be buying given the country’s largest and highest-profile company, Saudi Aramco, remains state-owned.
Mubadala sets up tech hub in #AbuDhabi with SoftBank | Financial Times
Mubadala sets up tech hub in Abu Dhabi with SoftBank | Financial Times:
Mubadala, an Abu Dhabi sovereign wealth fund, is building on its relationship with SoftBank to attract some of the world’s most valuable start-ups to a new technology hub in the capital of the United Arab Emirates.
Mubadala Ventures, the tech arm of the $225bn fund, will unveil plans for the new hub on Sunday, including a partnership with Microsoft, according to people familiar with the situation.
It is in talks with companies including Improbable, Oyo, Plenty, SenseTime and WeWork, all of which have raised money from SoftBank’s Vision Fund, to set up offices in the Abu Dhabi hub.
Mubadala, an Abu Dhabi sovereign wealth fund, is building on its relationship with SoftBank to attract some of the world’s most valuable start-ups to a new technology hub in the capital of the United Arab Emirates.
Mubadala Ventures, the tech arm of the $225bn fund, will unveil plans for the new hub on Sunday, including a partnership with Microsoft, according to people familiar with the situation.
It is in talks with companies including Improbable, Oyo, Plenty, SenseTime and WeWork, all of which have raised money from SoftBank’s Vision Fund, to set up offices in the Abu Dhabi hub.
MIDEAST STOCKS-Real estate hurts #Dubai, ex-dividend stocks weigh on #Qatar | Reuters
MIDEAST STOCKS-Real estate hurts Dubai, ex-dividend stocks weigh on Qatar | Reuters:
Dubai’s stock market dropped on Thursday, weighed down by its property shares, while Qatar slipped as its heavyweight stocks traded ex-dividend.
In Dubai, the index fell 0.7 percent after four straight days of gains, with blue-chip developer Emaar Properties decreasing 1.7 percent. Its board proposed a full-year dividend of 15 fils a share.
Emaar’s unit Emaar Malls fell 2.3 percent after declaring an unchanged full-year dividend of 10 fils per share.
Dubai’s stock market dropped on Thursday, weighed down by its property shares, while Qatar slipped as its heavyweight stocks traded ex-dividend.
In Dubai, the index fell 0.7 percent after four straight days of gains, with blue-chip developer Emaar Properties decreasing 1.7 percent. Its board proposed a full-year dividend of 15 fils a share.
Emaar’s unit Emaar Malls fell 2.3 percent after declaring an unchanged full-year dividend of 10 fils per share.
Oil Stays Above $60 on U.S. Stockpile Draw and Saudi Supply Drop - Bloomberg
Oil Stays Above $60 on U.S. Stockpile Draw and Saudi Supply Drop - Bloomberg:
Oil held above $60 a barrel after the biggest withdrawal of crude in American storage tanks since July raised speculation that global supplies are tightening.
Futures for May in New York were little changed after the April contract reached the highest level this year before expiring on Wednesday. U.S. government data showed a 9.59 million-barrel decline in nationwide stockpiles, exceeding analysts’ expectations. Crude exports from the country were near a record high while imports from Saudi Arabia fell by more than half, and it stopped shipments from Venezuela altogether.
Crude broke above $60 a barrel for the first time since November as output reductions by the Organization of Petroleum Exporting Countries and its partners, as well as supply disruptions in Venezuela and Iran, countered growing U.S. shale production. Meanwhile, the Federal Reserve said interest rates could be on hold for “some time,” thawing investor concerns over weakening global growth that would dampen oil demand.
Oil held above $60 a barrel after the biggest withdrawal of crude in American storage tanks since July raised speculation that global supplies are tightening.
Futures for May in New York were little changed after the April contract reached the highest level this year before expiring on Wednesday. U.S. government data showed a 9.59 million-barrel decline in nationwide stockpiles, exceeding analysts’ expectations. Crude exports from the country were near a record high while imports from Saudi Arabia fell by more than half, and it stopped shipments from Venezuela altogether.
Crude broke above $60 a barrel for the first time since November as output reductions by the Organization of Petroleum Exporting Countries and its partners, as well as supply disruptions in Venezuela and Iran, countered growing U.S. shale production. Meanwhile, the Federal Reserve said interest rates could be on hold for “some time,” thawing investor concerns over weakening global growth that would dampen oil demand.
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