Saudi and Kuwaiti money returns to London property despite Brexit:
Property broker Knight Frank estimates there is as much as £40 billion targeting real estate assets in London this year despite a sharp retreat by Gulf-based investors in 2018.
Preliminary data for the first quarter has seen two transactions worth almost $171 million put Saudi Arabia and Kuwait back on the London commercial property investment leader board for 2019.
Taking into account the UK’s planned departure from the EU, which has dented confidence in some property sectors, Knight Frank expects the central London commercial property market to remain robust and supported by strong letting demand for prime property.
Tuesday, 30 April 2019
#Abraaj executive bailed in New York on $10m bond - The National
Abraaj executive bailed in New York on $10m bond - The National:
Mustafa Abdel-Wadood, the former managing partner of private equity company the Abraaj Group, was granted bail by a New York judge on Monday after he put up two homes as security for a $10 million bond.
Mr Abdel-Wadood will go on trial on November 4 and will be confined to a Manhattan apartment, thought to be one of the homes he used to cover the bail requirements.
A Justice Department spokesman told The National the bail package had been approved.
Mustafa Abdel-Wadood, the former managing partner of private equity company the Abraaj Group, was granted bail by a New York judge on Monday after he put up two homes as security for a $10 million bond.
Mr Abdel-Wadood will go on trial on November 4 and will be confined to a Manhattan apartment, thought to be one of the homes he used to cover the bail requirements.
A Justice Department spokesman told The National the bail package had been approved.
#Abraaj is ‘version two of Lehman Brothers’: Air Arabia CEO
Abraaj is ‘version two of Lehman Brothers’: Air Arabia CEO:
After having to pay over Dh1 billion in impairments on the now-bankrupt Abraaj, the head of Air Arabia called the private equity firm “version two of Lehman Brothers,” the financial services firm that filed for the largest bankruptcy in American history in 2008.
Air Arabia, which had $336 million (Dh1.2 billion) invested in Abraaj funds, reported in mid-February Dh609.5 million in losses for the full-year 2018, compared to a profit of Dh630.6 million a year earlier. The losses came as the Sharjah-based company paid Dh1.1 billion in impairment costs on its exposure to Abraaj.
Adel Ali, chief executive officer of Air Arabia, said on Tuesday that the airline reported the full impairments on that exposure in 2018, meaning that it won’t report any further costs related to Abraaj this year.
After having to pay over Dh1 billion in impairments on the now-bankrupt Abraaj, the head of Air Arabia called the private equity firm “version two of Lehman Brothers,” the financial services firm that filed for the largest bankruptcy in American history in 2008.
Air Arabia, which had $336 million (Dh1.2 billion) invested in Abraaj funds, reported in mid-February Dh609.5 million in losses for the full-year 2018, compared to a profit of Dh630.6 million a year earlier. The losses came as the Sharjah-based company paid Dh1.1 billion in impairment costs on its exposure to Abraaj.
Adel Ali, chief executive officer of Air Arabia, said on Tuesday that the airline reported the full impairments on that exposure in 2018, meaning that it won’t report any further costs related to Abraaj this year.
QFC showcases opportunities available in Doha for Fintech firms on Qatar Day in London
QFC showcases opportunities available in Doha for Fintech firms on Qatar Day in London:
The Qatar Financial Center (QFC) has showcased the country's Fintech strategy and the opportunities available for the UK and Qatar Fintech firms, apart from the growing scope for asset management firms in Doha.
This was highlighted by the QFC at the recently held Qatar Day, which was recently hosted by the City of London Corporation, in partnership with the UK’s Department for International Trade and Qatar Central Bank (QCB).
The inaugural event saw around 120 C-level executives and senior representatives from the UK and Qatar’s key national and financial services institutions that included Qatar Development Bank (QDB), QCB and Qatar Financial Markets Authority come together in the city of London.
The Qatar Financial Center (QFC) has showcased the country's Fintech strategy and the opportunities available for the UK and Qatar Fintech firms, apart from the growing scope for asset management firms in Doha.
This was highlighted by the QFC at the recently held Qatar Day, which was recently hosted by the City of London Corporation, in partnership with the UK’s Department for International Trade and Qatar Central Bank (QCB).
The inaugural event saw around 120 C-level executives and senior representatives from the UK and Qatar’s key national and financial services institutions that included Qatar Development Bank (QDB), QCB and Qatar Financial Markets Authority come together in the city of London.
Oil pares gains as fears ease on Venezuelan exports - Reuters
Oil pares gains as fears ease on Venezuelan exports - Reuters:
Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.
Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.
Young Arabs say jobs and living costs are their biggest concerns | Financial Times
Young Arabs say jobs and living costs are their biggest concerns | Financial Times:
Young Arabs say the rising cost of living and unemployment are the biggest issues facing the Middle East, according to region’s largest survey of youth opinion.
Some 56 per cent of respondents cited the cost of living and 45 per cent chose joblessness as their top concern in the 2019 Arab Youth Survey, now in its 11th year.
“The mother of all priorities for the region is tackling youth unemployment,” said Jihad Azour, International Monetary Fund regional director, at Tuesday’s launch of the survey. “All economic policies will fail if we don’t reduce unemployment.”
Young Arabs say the rising cost of living and unemployment are the biggest issues facing the Middle East, according to region’s largest survey of youth opinion.
Some 56 per cent of respondents cited the cost of living and 45 per cent chose joblessness as their top concern in the 2019 Arab Youth Survey, now in its 11th year.
“The mother of all priorities for the region is tackling youth unemployment,” said Jihad Azour, International Monetary Fund regional director, at Tuesday’s launch of the survey. “All economic policies will fail if we don’t reduce unemployment.”
UPDATE 1- #Saudi's Flynas considering upgrading Airbus A320neo order - Reuters
UPDATE 1-Saudi's Flynas considering upgrading Airbus A320neo order - Reuters:
Saudi Arabian airline Flynas is considering upgrading part of its existing order for 80 Airbus A320neo jets to the larger A321 model, its chief executive said on Tuesday.
The airline, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm Kingdom Holding, ordered the A320neos worth $8.6 billion in 2017.
“We (have) started evaluating and are in discussion with Airbus,” Bander Abdulrahman al-Mohanna said.
Saudi Arabian airline Flynas is considering upgrading part of its existing order for 80 Airbus A320neo jets to the larger A321 model, its chief executive said on Tuesday.
The airline, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm Kingdom Holding, ordered the A320neos worth $8.6 billion in 2017.
“We (have) started evaluating and are in discussion with Airbus,” Bander Abdulrahman al-Mohanna said.
#Oman readies U.S. dollar bond sale – sources - Reuters
Oman readies U.S. dollar bond sale – sources - Reuters:
Oman is preparing a sale of U.S. dollar-denominated bonds, two sources familiar with the matter said, as the sultanate seeks to take advantage of improved conditions across emerging markets to finance its budget deficit.
It would be its first international issuance of 2019.
Less wealthy than its Gulf neighbours, Oman’s state coffers have been depleted by a slump in oil prices over the past few years and the country has increasingly relied on external borrowing to refill widening deficits.
Oman is preparing a sale of U.S. dollar-denominated bonds, two sources familiar with the matter said, as the sultanate seeks to take advantage of improved conditions across emerging markets to finance its budget deficit.
It would be its first international issuance of 2019.
Less wealthy than its Gulf neighbours, Oman’s state coffers have been depleted by a slump in oil prices over the past few years and the country has increasingly relied on external borrowing to refill widening deficits.
Oil tops $73 per barrel then pares gains as Venezuela's Maduro claims support - Reuters
Oil tops $73 per barrel then pares gains as Venezuela's Maduro claims support - Reuters:
Oil prices rose on Tuesday above $73 a barrel but then eased off the session high after Venezuela’s president Nicolas Maduro said military leaders remained loyal to his government despite an attempted coup that could further threaten the OPEC producer’s oil exports.
Prices rose after opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains when Maduro countered with a statement military leaders he had spoken to showed him “their total loyalty.”
Reuters witnesses said several armed men in military uniforms accompanying Guaido clashed with soldiers supporting Maduro at a protest outside a Caracas air base. But witnesses said the incident fizzled out.
Oil prices rose on Tuesday above $73 a barrel but then eased off the session high after Venezuela’s president Nicolas Maduro said military leaders remained loyal to his government despite an attempted coup that could further threaten the OPEC producer’s oil exports.
Prices rose after opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains when Maduro countered with a statement military leaders he had spoken to showed him “their total loyalty.”
Reuters witnesses said several armed men in military uniforms accompanying Guaido clashed with soldiers supporting Maduro at a protest outside a Caracas air base. But witnesses said the incident fizzled out.
OPEC oil output hits four-year low in April on Iran, Venezuela: Reuters survey - Reuters
OPEC oil output hits four-year low in April on Iran, Venezuela: Reuters survey - Reuters:
OPEC oil supply hit a four-year low in April, a Reuters survey found, due to further involuntary declines in sanctions-hit Iran and Venezuela and output restraint by top exporter Saudi Arabia.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.23 million barrels per day (bpd) this month, the survey showed, down 90,000 bpd from March and the lowest OPEC total since 2015, the Reuters survey showed.
The survey suggests that Saudi Arabia and its Gulf allies are maintaining even larger supply cuts than called for by OPEC’s latest deal, shrugging off pressure from U.S. President Donald Trump. On Friday, Trump said he had called OPEC to tell the group to bring down prices.
OPEC oil supply hit a four-year low in April, a Reuters survey found, due to further involuntary declines in sanctions-hit Iran and Venezuela and output restraint by top exporter Saudi Arabia.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.23 million barrels per day (bpd) this month, the survey showed, down 90,000 bpd from March and the lowest OPEC total since 2015, the Reuters survey showed.
The survey suggests that Saudi Arabia and its Gulf allies are maintaining even larger supply cuts than called for by OPEC’s latest deal, shrugging off pressure from U.S. President Donald Trump. On Friday, Trump said he had called OPEC to tell the group to bring down prices.
MIDEAST STOCKS-Bank dents #AbuDhabi as cement makers strengthen #Saudi index - Reuters
MIDEAST STOCKS-Bank dents Abu Dhabi as cement makers strengthen Saudi index - Reuters:
The Abu Dhabi stock market fell sharply
on Tuesday, dragged down by First Abu Dhabi Bank(FAB),
while the Saudi index was lifted by its cement producers.
Abu Dhabi's index dropped 1.4 percent as First Abu
Dhabi, the UAE's largest bank, shed 2.4 percent after reporting
first-quarter results. The lender posted a rise in first-quarter
profit but customer deposits and net interest margins fell while
expenses rose.
"Overall numbers were in line, though it would have been
good to see a beat, as the stock trades at rich valuations,"
said Vrajesh Bhandari, senior portfolio manager at Al Mal
Capital said.
The Abu Dhabi stock market fell sharply
on Tuesday, dragged down by First Abu Dhabi Bank(FAB),
while the Saudi index was lifted by its cement producers.
Abu Dhabi's index dropped 1.4 percent as First Abu
Dhabi, the UAE's largest bank, shed 2.4 percent after reporting
first-quarter results. The lender posted a rise in first-quarter
profit but customer deposits and net interest margins fell while
expenses rose.
"Overall numbers were in line, though it would have been
good to see a beat, as the stock trades at rich valuations,"
said Vrajesh Bhandari, senior portfolio manager at Al Mal
Capital said.
Berkshire Hathaway Eyes #Dubai's Distressed Real Estate Market - Bloomberg
Berkshire Hathaway Eyes Dubai's Distressed Real Estate Market - Bloomberg:
Warren Buffett’s real estate brokerage sees value in Dubai’s flagging property market and wants to entice wealthy investors.
Real estate prices, which have been falling in Dubai since a recent peak in 2014, offer good value for investors looking to pick up distressed assets, Phil Sheridan, the chief executive officer of Berkshire Hathaway HomeServices Gulf Properties, said in a Bloomberg TV interview. “Many high-net worth investors are viewing the market as good value in terms of the declines over recent years.”
Berkshire Hathaway’s real estate brokerage, which had a hand in more closed real estate deals in the U.S. than any other residential brokerage last year, this week announced the opening of its Dubai office. Buffett is expanding in the city as the emirate’s property market defies all predictions of a rebound. S&P Global Ratings said last month it expects prices to fall as much as 10 percent this year.
Warren Buffett’s real estate brokerage sees value in Dubai’s flagging property market and wants to entice wealthy investors.
Real estate prices, which have been falling in Dubai since a recent peak in 2014, offer good value for investors looking to pick up distressed assets, Phil Sheridan, the chief executive officer of Berkshire Hathaway HomeServices Gulf Properties, said in a Bloomberg TV interview. “Many high-net worth investors are viewing the market as good value in terms of the declines over recent years.”
Berkshire Hathaway’s real estate brokerage, which had a hand in more closed real estate deals in the U.S. than any other residential brokerage last year, this week announced the opening of its Dubai office. Buffett is expanding in the city as the emirate’s property market defies all predictions of a rebound. S&P Global Ratings said last month it expects prices to fall as much as 10 percent this year.
#AbuDhabi Said to Weigh Multi-Billion Dollar Gas Pipeline Deal - Bloomberg
Abu Dhabi Said to Weigh Multi-Billion Dollar Gas Pipeline Deal - Bloomberg:
Abu Dhabi National Oil Co. is seeking to raise billions of dollars from its natural-gas pipelines, months after the state-owned explorer got a $4 billion investment in its oil infrastructure assets, according to people familiar with the matter.
Adnoc, as the company is known, is speaking to financial advisers about bringing in international investors for the pipelines, which could help raise $5 billion or more, one of the people said, asking not to be identified as the matter is private. Adnoc is yet to hire banks for the plans and talks are in the early stages, the people said.
The company may structure the investment so bidders lease assets for a period of time, similar to February’s oil-infrastructure deal with KKR & Co. and BlackRock Inc., the people said. Adnoc’s entire gas pipeline business could be worth more than $15 billion, the people said. No final decisions have been made and the Abu Dhabi oil giant may decide against a deal, they said.
Abu Dhabi National Oil Co. is seeking to raise billions of dollars from its natural-gas pipelines, months after the state-owned explorer got a $4 billion investment in its oil infrastructure assets, according to people familiar with the matter.
Adnoc, as the company is known, is speaking to financial advisers about bringing in international investors for the pipelines, which could help raise $5 billion or more, one of the people said, asking not to be identified as the matter is private. Adnoc is yet to hire banks for the plans and talks are in the early stages, the people said.
The company may structure the investment so bidders lease assets for a period of time, similar to February’s oil-infrastructure deal with KKR & Co. and BlackRock Inc., the people said. Adnoc’s entire gas pipeline business could be worth more than $15 billion, the people said. No final decisions have been made and the Abu Dhabi oil giant may decide against a deal, they said.
Air Arabia CEO says needs to put in order for over 100 aircraft | ZAWYA MENA Edition
Air Arabia CEO says needs to put in order for over 100 aircraft | ZAWYA MENA Edition:
Sharjah-based Air Arabia needs to put in an order for around 100 aircraft or more in three to four months, its chief executive Adel Abdullah Ali said on Tuesday.
The airline will have discussions with Airbus and Boeing about its order this week, he said at the Arabian travel market exhibition in Dubai.
Sharjah-based Air Arabia needs to put in an order for around 100 aircraft or more in three to four months, its chief executive Adel Abdullah Ali said on Tuesday.
The airline will have discussions with Airbus and Boeing about its order this week, he said at the Arabian travel market exhibition in Dubai.
Dark clouds form Gulf's low-cost carriers, but horizon remains bright | ZAWYA MENA Edition
Dark clouds form Gulf's low-cost carriers, but horizon remains bright | ZAWYA MENA Edition:
Competition is stiffening in the Gulf’s budget airline sector following the recent launch of state-backed low-cost carriers (LCCs) in Saudi Arabia and Oman, while the blockade of Qatar has halted some of the region’s most profitable routes as regional passenger growth has slowed.
Rising fuel costs are weighing on earnings, with per-seat profitability among the lowest globally. Yet the longer-term outlook for Gulf LCCs remains bright, analysts say, with the cost-conscious segment of the Middle East’s aviation market relatively small compared with other regions.
“We’re seeing the same customer reaction in the Gulf as elsewhere – people are willing to use these services and the airlines are getting a good response,” said John Strickland, a director at London’s JLS Consulting.
Competition is stiffening in the Gulf’s budget airline sector following the recent launch of state-backed low-cost carriers (LCCs) in Saudi Arabia and Oman, while the blockade of Qatar has halted some of the region’s most profitable routes as regional passenger growth has slowed.
Rising fuel costs are weighing on earnings, with per-seat profitability among the lowest globally. Yet the longer-term outlook for Gulf LCCs remains bright, analysts say, with the cost-conscious segment of the Middle East’s aviation market relatively small compared with other regions.
“We’re seeing the same customer reaction in the Gulf as elsewhere – people are willing to use these services and the airlines are getting a good response,” said John Strickland, a director at London’s JLS Consulting.
#Saudi's Falih will stick to global oil deal, pact could be extended: RIA - Reuters
Saudi's Falih will stick to global oil deal, pact could be extended: RIA - Reuters:
Saudi Arabia will not rush to boost oil supply to make up for a loss of Iranian crude due to U.S. sanctions, and will stick to a global deal on oil production, which could be extended to the end of 2019, Energy Minister Khalid al-Falih told RIA news agency.
The United States decided last week not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected. Oil prices rose on concerns of a tighter oil market.
Falih was speaking to Russia’s RIA news agency on Tuesday, without specifying whether, or by how much, output levels could change after June.
Saudi Arabia will not rush to boost oil supply to make up for a loss of Iranian crude due to U.S. sanctions, and will stick to a global deal on oil production, which could be extended to the end of 2019, Energy Minister Khalid al-Falih told RIA news agency.
The United States decided last week not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected. Oil prices rose on concerns of a tighter oil market.
Falih was speaking to Russia’s RIA news agency on Tuesday, without specifying whether, or by how much, output levels could change after June.
Oil prices firm as #SaudiArabia says OPEC may extend supply cuts - Reuters
Oil prices firm as Saudi Arabia says OPEC may extend supply cuts - Reuters:
Oil prices rose 1 percent on Tuesday after Saudi Arabia said a deal between producers to withhold output could be extended beyond June to cover all of 2019.
The comments by Saudi Energy Minister Khalid al-Falih came despite pressure from U.S. President Donald Trump to raise output to make up for a supply shortfall expected from tightening U.S. sanctions against Iran.
Brent crude futures had risen to $72.72 per barrel by 1010 GMT, up 68 cents or 0.94 percent from their last close.
U.S. crude futures were at $64.10, up 60 cents or 0.95 percent.
Oil prices rose 1 percent on Tuesday after Saudi Arabia said a deal between producers to withhold output could be extended beyond June to cover all of 2019.
The comments by Saudi Energy Minister Khalid al-Falih came despite pressure from U.S. President Donald Trump to raise output to make up for a supply shortfall expected from tightening U.S. sanctions against Iran.
Brent crude futures had risen to $72.72 per barrel by 1010 GMT, up 68 cents or 0.94 percent from their last close.
U.S. crude futures were at $64.10, up 60 cents or 0.95 percent.
MIDEAST STOCKS-Lender FAB weighs on #AbuDhabi; cement producers lift #Saudi - Reuters
MIDEAST STOCKS-Lender FAB weighs on Abu Dhabi; cement producers lift Saudi - Reuters:
The Abu Dhabi stock market fell on Tuesday for the fifth straight day, dragged down by First Abu Dhabi Bank, the largest bank in the United Arab Emirates, while strong earnings by some cement producers boosted Saudi Arabia’s index.
The Abu Dhabi index slipped 1 percent, with First Abu Dhabi Bank shedding 2.4 percent after reporting its first-quarter results. The lender reported a rise in its first-quarter profit, but saw a fall in customer deposits, net interest margins and a rise in expenses.
Saudi Arabia’s main index rose 0.7 percent, with 13 of 14 cement producers gaining after Yamama Cement and City Cement’s first-quarter results.
The Abu Dhabi stock market fell on Tuesday for the fifth straight day, dragged down by First Abu Dhabi Bank, the largest bank in the United Arab Emirates, while strong earnings by some cement producers boosted Saudi Arabia’s index.
The Abu Dhabi index slipped 1 percent, with First Abu Dhabi Bank shedding 2.4 percent after reporting its first-quarter results. The lender reported a rise in its first-quarter profit, but saw a fall in customer deposits, net interest margins and a rise in expenses.
Saudi Arabia’s main index rose 0.7 percent, with 13 of 14 cement producers gaining after Yamama Cement and City Cement’s first-quarter results.
Monday, 29 April 2019
Oil climbs, shaking off Trump calls for OPEC to offset Iran sanctions - Reuters
Oil climbs, shaking off Trump calls for OPEC to offset Iran sanctions - Reuters:
Oil prices edged higher on Monday, as the market attempted to resume a weeks-long rally that was halted on Friday when U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures fell 11 cents, or 0.2 percent, to settle at $72.04 a barrel while U.S. West Texas Intermediate (WTI) crude futures climbed 20 cents, or 0.3 percent, to end the session at $63.50.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
Oil prices edged higher on Monday, as the market attempted to resume a weeks-long rally that was halted on Friday when U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures fell 11 cents, or 0.2 percent, to settle at $72.04 a barrel while U.S. West Texas Intermediate (WTI) crude futures climbed 20 cents, or 0.3 percent, to end the session at $63.50.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
#SaudiArabia to open up bond market to retail investors | Financial Times
Saudi Arabia to open up bond market to retail investors | Financial Times:
Saudi Arabia is seeking to open up its government bond market to retail investors as part of sweeping reforms intended to develop a savings culture.
Officials said last week that the country’s government sukuk, or Islamic bonds, would be sold in chunks of SR1,000 ($267), rather than the typical SR1m, in a move that finance minister Mohammed al-Jadaan said was designed to make it easier for retail investors and investment funds to participate in the multibillion-dollar market.
Riyadh has increased its borrowing to finance its budget deficit and help fund Crown Prince Mohammed bin Salman’s economic reform programme. The debt management office has said that at the end of 2018 the government had about $150bn in overall debt, 54 per cent of which was denominated in riyals and the rest in US dollars.
Saudi Arabia is seeking to open up its government bond market to retail investors as part of sweeping reforms intended to develop a savings culture.
Officials said last week that the country’s government sukuk, or Islamic bonds, would be sold in chunks of SR1,000 ($267), rather than the typical SR1m, in a move that finance minister Mohammed al-Jadaan said was designed to make it easier for retail investors and investment funds to participate in the multibillion-dollar market.
Riyadh has increased its borrowing to finance its budget deficit and help fund Crown Prince Mohammed bin Salman’s economic reform programme. The debt management office has said that at the end of 2018 the government had about $150bn in overall debt, 54 per cent of which was denominated in riyals and the rest in US dollars.
Trump Wants Cheap Oil. IMF Data Show Saudis Need Higher Prices - Bloomberg
Trump Wants Cheap Oil. IMF Data Show Saudis Need Higher Prices - Bloomberg:
Saudi Arabia needs oil prices to be higher than what U.S. President Donald Trump may be comfortable with as the government increases spending to bolster economic growth.
International Monetary Fund data released on Monday show the world’s biggest oil exporter needs prices at about $85 a barrel to balance its budget this year, up from a forecast of $73 in September.
The estimates highlight the tricky task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with Trump and, at the same time, finance a plan to revive economic growth and create jobs at home. The kingdom, which reiterated last week its commitment to balance its books by 2023, plans to increase spending by 7 percent this year.
Saudi Arabia needs oil prices to be higher than what U.S. President Donald Trump may be comfortable with as the government increases spending to bolster economic growth.
International Monetary Fund data released on Monday show the world’s biggest oil exporter needs prices at about $85 a barrel to balance its budget this year, up from a forecast of $73 in September.
The estimates highlight the tricky task facing Crown Prince Mohammed bin Salman as he tries to forge closer ties with Trump and, at the same time, finance a plan to revive economic growth and create jobs at home. The kingdom, which reiterated last week its commitment to balance its books by 2023, plans to increase spending by 7 percent this year.
#Iran’s economy slumps as US sanctions pile on the pain | Financial Times
Iran’s economy slumps as US sanctions pile on the pain | Financial Times:
Donald Trump’s sanctions against Iran have triggered a collapse in economic growth, pushing the Islamic republic into a deep recession and lifting inflation towards 40 per cent, according to the IMF.
The fund on Monday linked its forecast of a 6 per cent contraction in Iran this year with Mr Trump’s efforts to tighten an economic squeeze on the country.
The economic slowdown is stoking popular discontent and heightening political tensions between reformists allied to President Hassan Rouhani and hardliners, who have long been staunchly opposed to dialogue with the US.
Donald Trump’s sanctions against Iran have triggered a collapse in economic growth, pushing the Islamic republic into a deep recession and lifting inflation towards 40 per cent, according to the IMF.
The fund on Monday linked its forecast of a 6 per cent contraction in Iran this year with Mr Trump’s efforts to tighten an economic squeeze on the country.
The economic slowdown is stoking popular discontent and heightening political tensions between reformists allied to President Hassan Rouhani and hardliners, who have long been staunchly opposed to dialogue with the US.
Major Boeing customer threatens to switch to Airbus | Financial Times
Major Boeing customer threatens to switch to Airbus | Financial Times:
One of Boeing’s largest customers has threatened to order aircraft from arch rival Airbus, as the US airline’s chief executive sought to shore up investor confidence following the crisis over its 737 Max aircraft.
Dennis Muilenburg told shareholders at the company’s annual meeting on Monday that Boeing would ensure the 737 was “the safest aeroplane out there to fly” and rejected criticisms over its safety record in the wake of two deadly crashes that killed 346 people.
His defence came as Sheikh Ahmed bin Saeed Al Maktoum, chief executive of Emirates airline and president of Dubai’s Civil Aviation Authority, said he would seek compensation for the grounding of 14 737 Max jets at Emirates’ sister low-cost airline Flydubai, which has more than 230 on order. He added that Flydubai could order Airbus A320neos as replacements for the Max jets.
One of Boeing’s largest customers has threatened to order aircraft from arch rival Airbus, as the US airline’s chief executive sought to shore up investor confidence following the crisis over its 737 Max aircraft.
Dennis Muilenburg told shareholders at the company’s annual meeting on Monday that Boeing would ensure the 737 was “the safest aeroplane out there to fly” and rejected criticisms over its safety record in the wake of two deadly crashes that killed 346 people.
His defence came as Sheikh Ahmed bin Saeed Al Maktoum, chief executive of Emirates airline and president of Dubai’s Civil Aviation Authority, said he would seek compensation for the grounding of 14 737 Max jets at Emirates’ sister low-cost airline Flydubai, which has more than 230 on order. He added that Flydubai could order Airbus A320neos as replacements for the Max jets.
#Saudi Aramco Sees Shale Gas as Kingdom's Next Energy Bonanza - Bloomberg
Saudi Aramco Sees Shale Gas as Kingdom's Next Energy Bonanza - Bloomberg:
The world’s biggest oil exporter is ramping up efforts to develop natural gas with plans for a 15-fold boost in output from unconventional deposits of the fuel.
Saudi Aramco is building facilities to tap shale gas in the kingdom’s oil-rich eastern region and is making “a lot of progress” toward this goal, Chief Executive Officer Amin Nasser told reporters in Dammam, Saudi Arabia. Plans include a plant to desalinate seawater that Aramco can then inject underground to frack for gas.
“We are looking to take our unconventional gas within the next 10 years to 3 billion standard cubic feet a day of sales gas,” Nasser said on Sunday. Aramco currently produces more than 190 million cubic feet of unconventional gas daily, all of it in the remote north.
The world’s biggest oil exporter is ramping up efforts to develop natural gas with plans for a 15-fold boost in output from unconventional deposits of the fuel.
Saudi Aramco is building facilities to tap shale gas in the kingdom’s oil-rich eastern region and is making “a lot of progress” toward this goal, Chief Executive Officer Amin Nasser told reporters in Dammam, Saudi Arabia. Plans include a plant to desalinate seawater that Aramco can then inject underground to frack for gas.
“We are looking to take our unconventional gas within the next 10 years to 3 billion standard cubic feet a day of sales gas,” Nasser said on Sunday. Aramco currently produces more than 190 million cubic feet of unconventional gas daily, all of it in the remote north.
Emirates Rethinks Its Network for a World Without the A380 - Bloomberg
Emirates Rethinks Its Network for a World Without the A380 - Bloomberg:
Emirates, the world’s biggest long-haul airline, is reviewing its route network as it grapples with slowing economic growth and the demise of the A380 superjumbo, a plane that’s been the cornerstone of its strategic thinking for almost two decades.
Dubai-based Emirates has spent the past nine months “knocking down the network” to establish the optimum route profile both for itself and for the sheikdom, and is now close to the end of that exercise, President Tim Clark said at the 2019 Arabian Travel Market convention on Monday.
After establishing Dubai as the leading interchange for flights linking cities around the globe, Emirates is finding it tougher to find profitable new routes, especially with sluggish Persian Gulf economies weighing on margins. The state-owned airline was also unable to convince Airbus SE to upgrade the A380, forcing it to buy smaller jets requiring a recalibration of its super-hub model.
Emirates, the world’s biggest long-haul airline, is reviewing its route network as it grapples with slowing economic growth and the demise of the A380 superjumbo, a plane that’s been the cornerstone of its strategic thinking for almost two decades.
Dubai-based Emirates has spent the past nine months “knocking down the network” to establish the optimum route profile both for itself and for the sheikdom, and is now close to the end of that exercise, President Tim Clark said at the 2019 Arabian Travel Market convention on Monday.
After establishing Dubai as the leading interchange for flights linking cities around the globe, Emirates is finding it tougher to find profitable new routes, especially with sluggish Persian Gulf economies weighing on margins. The state-owned airline was also unable to convince Airbus SE to upgrade the A380, forcing it to buy smaller jets requiring a recalibration of its super-hub model.
Gulf Air in Talks With Etihad Airways to Deepen Partnership - Bloomberg
Gulf Air in Talks With Etihad Airways to Deepen Partnership - Bloomberg:
Gulf Air is in talks with Abu Dhabi’s Etihad Airways to deepen an existing codeshare agreement, the Bahrain carrier’s chief commercial officer said, as the airline seeks to expand its network and become the region’s boutique airline.
“The scope of a partnership with Etihad can include domains in which we might find strengths," Vincent Coste said on Sunday on the sidelines of the Arabian Travel Market in Dubai. The partnership might expand to include maintenance and cargo handling, but is currently focused on the codeshare, he said. That agreement began March 20, according to Etihad’s statement at the time.
The state-owned carrier, which flies five Boeing 787 jets equipped with Rolls Royce engines, isn’t facing issues with the Trent 1000 engine, Coste said, after Rolls recommended extra checks for excessive wear.
Gulf Air is in talks with Abu Dhabi’s Etihad Airways to deepen an existing codeshare agreement, the Bahrain carrier’s chief commercial officer said, as the airline seeks to expand its network and become the region’s boutique airline.
“The scope of a partnership with Etihad can include domains in which we might find strengths," Vincent Coste said on Sunday on the sidelines of the Arabian Travel Market in Dubai. The partnership might expand to include maintenance and cargo handling, but is currently focused on the codeshare, he said. That agreement began March 20, according to Etihad’s statement at the time.
The state-owned carrier, which flies five Boeing 787 jets equipped with Rolls Royce engines, isn’t facing issues with the Trent 1000 engine, Coste said, after Rolls recommended extra checks for excessive wear.
Citigroup Is Busy With M&A as Oil Pushes Mideast Deals to Record - Bloomberg
Citigroup Is Busy With M&A as Oil Pushes Mideast Deals to Record - Bloomberg:
Citigroup Inc. is working on about seven M&A deals in the Middle East and North Africa as a rebound in oil prices pushes transactions to record levels.
The deals are “mainly in Saudi Arabia and the United Arab Emirates,” Naveed Kamal, the head of corporate banking in MENA, said in an interview. “Depending on how many of those are successful, it could be one of the best years for us; it could also be one of the best years for the market.”
Some of transactions are “sizable” and involve companies looking at acquisitions outside the region to build networks and diversify geographically, Kamal said. “Fundamentally, the increase in M&A activity is a sign of renewed confidence in the business environment.”
Citigroup Inc. is working on about seven M&A deals in the Middle East and North Africa as a rebound in oil prices pushes transactions to record levels.
The deals are “mainly in Saudi Arabia and the United Arab Emirates,” Naveed Kamal, the head of corporate banking in MENA, said in an interview. “Depending on how many of those are successful, it could be one of the best years for us; it could also be one of the best years for the market.”
Some of transactions are “sizable” and involve companies looking at acquisitions outside the region to build networks and diversify geographically, Kamal said. “Fundamentally, the increase in M&A activity is a sign of renewed confidence in the business environment.”
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg
What Oil at $100 a Barrel Would Mean for the World Economy - Bloomberg:
Surging crude prices are posing another headwind for the world economy after President Donald Trump’s “zero” pledge on Iran oil sales.
Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative.
Much will depend on how sustained the spike proves to be. Exporting nations will enjoy a boost to corporate and government revenues, while consuming nations will bear the cost at the pump, potentially fanning inflation and hurting demand. Ultimately, there comes a point where higher prices may be damaging to everyone.
Surging crude prices are posing another headwind for the world economy after President Donald Trump’s “zero” pledge on Iran oil sales.
Brent crude has risen about 33 percent this year and is close to the highest in six months. While higher prices due to strong demand typically reflects a robust world economy, a shock from constrained supply is a negative.
Much will depend on how sustained the spike proves to be. Exporting nations will enjoy a boost to corporate and government revenues, while consuming nations will bear the cost at the pump, potentially fanning inflation and hurting demand. Ultimately, there comes a point where higher prices may be damaging to everyone.
Emirates says full-year results will not be as good as in previous years - Reuters
Emirates says full-year results will not be as good as in previous years - Reuters:
Dubai state-owned airline Emirates will report “positive” full-year results next month but they will not be as good as in previous years due to higher fuel costs and unfavourable currency moves, the company’s president said on Monday.
The Dubai state-owned carrier, which last year warned of a tough second-half, will report results on May 9.
“It has not been easy, in terms of the results,” Tim Clark said at the Arabian Travel Market exhibition in Dubai.
Dubai state-owned airline Emirates will report “positive” full-year results next month but they will not be as good as in previous years due to higher fuel costs and unfavourable currency moves, the company’s president said on Monday.
The Dubai state-owned carrier, which last year warned of a tough second-half, will report results on May 9.
“It has not been easy, in terms of the results,” Tim Clark said at the Arabian Travel Market exhibition in Dubai.
UPDATE 1-First Abu Dhabi Bank Q1 profit buoyed by forex, investment income - Reuters
UPDATE 1-First Abu Dhabi Bank Q1 profit buoyed by forex, investment income - Reuters:
First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Monday reported a 3.6 percent rise in first quarter profit driven by higher foreign exchange and investment income.
FAB made a net profit of 3.11 billion dirhams ($846.79 million) in the three months ending March 31, up from 3.0 billion a year earlier, it said in a statement.
SICO Bahrain had projected a net profit of 3.067 billion dirhams for the lender.
First Abu Dhabi Bank , the largest bank in the United Arab Emirates, on Monday reported a 3.6 percent rise in first quarter profit driven by higher foreign exchange and investment income.
FAB made a net profit of 3.11 billion dirhams ($846.79 million) in the three months ending March 31, up from 3.0 billion a year earlier, it said in a statement.
SICO Bahrain had projected a net profit of 3.067 billion dirhams for the lender.
Oil steadies after Trump presses OPEC to offset Iran sanctions - Reuters
Oil steadies after Trump presses OPEC to offset Iran sanctions - Reuters:
Oil prices steadied on Monday, after a weeks-long rally was halted on Friday when the market tumbled after U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures rose 5 cents, or 0.1 percent, to $72.207 a barrel by 10:49 a.m. ET (1449 GMT). U.S. West Texas Intermediate (WTI) crude futures lost 20 cents, or 0.3 percent, to $63.10.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
Oil prices steadied on Monday, after a weeks-long rally was halted on Friday when the market tumbled after U.S. President Donald Trump demanded that producer club OPEC raise output to soften the impact of U.S. sanctions against Iran.
Brent crude futures rose 5 cents, or 0.1 percent, to $72.207 a barrel by 10:49 a.m. ET (1449 GMT). U.S. West Texas Intermediate (WTI) crude futures lost 20 cents, or 0.3 percent, to $63.10.
Both benchmarks fell by about 3 percent on Friday after Trump told reporters that he had called OPEC and told the cartel to lower oil prices, without identifying who he spoke to, or if he was speaking about previous discussions with OPEC officials.
#Saudi central bank says financing for properties tripled in Q1 - Reuters
Saudi central bank says financing for properties tripled in Q1 - Reuters:
Saudi Arabia’s central bank said on Monday that in the first quarter of this year financing for properties in the kingdom tripled when compared to the same period last year.
Contracts related to property financing reached a total value 15 billion riyals ($4.00 billion), the central bank said in a statement.
Saudi Arabia’s central bank said on Monday that in the first quarter of this year financing for properties in the kingdom tripled when compared to the same period last year.
Contracts related to property financing reached a total value 15 billion riyals ($4.00 billion), the central bank said in a statement.
Oil prices stumble as hedge funds become overextended: Kemp - Reuters
Oil prices stumble as hedge funds become overextended: Kemp - Reuters:
Hedge fund managers added even more bullish long positions in crude oil and refined fuels last week, but positions showed signs of becoming stretched, setting prices up for a setback.
Hedge funds and other money managers were net buyers of another 46 million barrels of futures and options in the six major petroleum contracts in the week to April 23, according to exchange and regulatory data.
Funds were net buyers of Brent (+16 million barrels), NYMEX and ICE WTI (+24 million) and European gasoil (+8 million) but smaller sellers of U.S. gasoline (-3 million) and left U.S. heating oil positions unchanged.
Hedge fund managers added even more bullish long positions in crude oil and refined fuels last week, but positions showed signs of becoming stretched, setting prices up for a setback.
Hedge funds and other money managers were net buyers of another 46 million barrels of futures and options in the six major petroleum contracts in the week to April 23, according to exchange and regulatory data.
Funds were net buyers of Brent (+16 million barrels), NYMEX and ICE WTI (+24 million) and European gasoil (+8 million) but smaller sellers of U.S. gasoline (-3 million) and left U.S. heating oil positions unchanged.
MIDEAST STOCKS-Profit-taking hits #UAE markets, Saudi inches up - Reuters
MIDEAST STOCKS-Profit-taking hits UAE markets, Saudi inches up - Reuters:
Abu Dhabi's stock market slid on
Monday, affected by profit-taking and a sell-off in its
financial shares, while Saudi Arabia was the only major Gulf
market to rise.
The Abu Dhabi index lost 0.9 percent in its fourth
straight day of declines, with energy firm Dana Gas
dropping 4.1 percent and the largest bank in the United Arab
Emirates, First Abu Dhabi Bank, losing 1.2 percent.
Dana's stock traded ex-dividend on Thursday and has been
sliding since. First Abu Dhabi Bank posted a 3.6 percent rise in
first-quarter 2019 profit.
Abu Dhabi's stock market slid on
Monday, affected by profit-taking and a sell-off in its
financial shares, while Saudi Arabia was the only major Gulf
market to rise.
The Abu Dhabi index lost 0.9 percent in its fourth
straight day of declines, with energy firm Dana Gas
dropping 4.1 percent and the largest bank in the United Arab
Emirates, First Abu Dhabi Bank, losing 1.2 percent.
Dana's stock traded ex-dividend on Thursday and has been
sliding since. First Abu Dhabi Bank posted a 3.6 percent rise in
first-quarter 2019 profit.
IMF: Mideast economies face volatile politics, oil prices
IMF: Mideast economies face volatile politics, oil prices:
Political uncertainty and volatile oil prices are weighing heavily on economic growth in the Middle East this year, according to a new report released Monday by the International Monetary Fund.
The report, which looks at the economies of 23 countries spanning North Africa, the Levant, the Persian Gulf, but also Djibouti, Somalia, Afghanistan and Pakistan, predicts that overall growth across these nations is expected to slowdown from close to 2% last year to about 1.5% in 2019.
Inflation is expected to remain unchanged at close to 10%.
Political uncertainty and volatile oil prices are weighing heavily on economic growth in the Middle East this year, according to a new report released Monday by the International Monetary Fund.
The report, which looks at the economies of 23 countries spanning North Africa, the Levant, the Persian Gulf, but also Djibouti, Somalia, Afghanistan and Pakistan, predicts that overall growth across these nations is expected to slowdown from close to 2% last year to about 1.5% in 2019.
Inflation is expected to remain unchanged at close to 10%.
Saudi GDP could surprise on the upside, higher budget deficit seen in 2019: IMF - Reuters
Saudi GDP could surprise on the upside, higher budget deficit seen in 2019: IMF - Reuters:
The International Monetary Fund (IMF) estimates that Saudi Arabia’s economic growth in 2019 may be slightly higher than its earlier 1.8 percent forecast as the non-oil sector is expanding faster than the wider economy, a senior official said.
The budget deficit this year could be 7.9 percent, higher than 2018 on an assumption that oil prices would be lower in 2019 compared to last year, Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told Reuters.
“We expect non-oil growth to be at 2.6 percent this year and 2.9 percent for 2020,” he said in an interview in Dubai.
The International Monetary Fund (IMF) estimates that Saudi Arabia’s economic growth in 2019 may be slightly higher than its earlier 1.8 percent forecast as the non-oil sector is expanding faster than the wider economy, a senior official said.
The budget deficit this year could be 7.9 percent, higher than 2018 on an assumption that oil prices would be lower in 2019 compared to last year, Jihad Azour, director of the Middle East and Central Asia Department at the IMF, told Reuters.
“We expect non-oil growth to be at 2.6 percent this year and 2.9 percent for 2020,” he said in an interview in Dubai.
Sunday, 28 April 2019
Saudis Issue 70% More Foreign Business Licenses From Year Ago - Bloomberg
Saudis Issue 70% More Foreign Business Licenses From Year Ago - Bloomberg:
The number of new licenses approved for foreign businesses in Saudi Arabia rose by 70 percent in the first quarter from a year earlier, according to the Saudi Arabia General Investment Authority.
Applications from British and Chinese companies drove the increase, rising by 86 percent and 71 percent, respectively, Ibrahim Al Omar, governor of Sagia, as the kingdom’s investment-promotion body is known, said in an interview. The fastest-growing industries were education -- which the kingdom only opened to foreign investors in November -- and information and communications technology, Al Omar said.
The year-on-year growth in foreign licenses follows Saudi efforts to remove restrictions on international investments. Yet, fresh foreign direct investment in the country has been modest. While FDI more than doubled last year to about $3 billion, it remains well below the average level of the past decade, as uncertainty over the government’s economic plans, its human-rights record and the declared crackdown on corruption in 2017 have weighed on investor sentiment.
The number of new licenses approved for foreign businesses in Saudi Arabia rose by 70 percent in the first quarter from a year earlier, according to the Saudi Arabia General Investment Authority.
Applications from British and Chinese companies drove the increase, rising by 86 percent and 71 percent, respectively, Ibrahim Al Omar, governor of Sagia, as the kingdom’s investment-promotion body is known, said in an interview. The fastest-growing industries were education -- which the kingdom only opened to foreign investors in November -- and information and communications technology, Al Omar said.
The year-on-year growth in foreign licenses follows Saudi efforts to remove restrictions on international investments. Yet, fresh foreign direct investment in the country has been modest. While FDI more than doubled last year to about $3 billion, it remains well below the average level of the past decade, as uncertainty over the government’s economic plans, its human-rights record and the declared crackdown on corruption in 2017 have weighed on investor sentiment.
#Saudi TAQA drilling unit to buy Schlumberger's Middle East rigs - Reuters
Saudi TAQA drilling unit to buy Schlumberger's Middle East rigs - Reuters:
Saudi Arabia’s Industrialization and Energy Services Company (TAQA) said on Sunday its drilling subsidiary, Arabian Drilling Company, has agreed to buy Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million.
Through the expansion, Arabian Drilling will operate 58 onshore rigs and nine offshore rigs across the Middle East and North Africa.
Moelis advised TAQA and Rothschild advised Schlumberger for the deal, which is expected to close in the second half of this year, TAQA said in a statement.
Saudi Arabia’s Industrialization and Energy Services Company (TAQA) said on Sunday its drilling subsidiary, Arabian Drilling Company, has agreed to buy Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million.
Through the expansion, Arabian Drilling will operate 58 onshore rigs and nine offshore rigs across the Middle East and North Africa.
Moelis advised TAQA and Rothschild advised Schlumberger for the deal, which is expected to close in the second half of this year, TAQA said in a statement.
MIDEAST STOCKS-Falling oil prices weigh on Gulf stocks - Reuters
MIDEAST STOCKS-Falling oil prices weigh on Gulf stocks - Reuters:
Stocks closed lower across the
Gulf on Sunday with markets overshadowed by a fall in oil
prices.
Saudi stocks eked out some early gains then went
into reverse, closing 0.1 percent lower. Al Rajhi Bank
initially rose after posting an increase in profits last week
but ended up with a 1.32 percent decline on the day.
Oil prices fell 3 percent on Friday, hitting sentiment
across the region, after U.S. President Donald Trump again
pressured the Organization of the Petroleum Exporting Countries
to raise crude production to ease gasoline prices.
Stocks closed lower across the
Gulf on Sunday with markets overshadowed by a fall in oil
prices.
Saudi stocks eked out some early gains then went
into reverse, closing 0.1 percent lower. Al Rajhi Bank
initially rose after posting an increase in profits last week
but ended up with a 1.32 percent decline on the day.
Oil prices fell 3 percent on Friday, hitting sentiment
across the region, after U.S. President Donald Trump again
pressured the Organization of the Petroleum Exporting Countries
to raise crude production to ease gasoline prices.
#Saudi Mall Owner Seeks $836 Million From Initial Share Sale - Bloomberg
Saudi Mall Owner Seeks $836 Million From Initial Share Sale - Bloomberg:
Fawaz Alhokair Group, the Saudi retailer that owns the franchise for brands like Banana Republic and Zara, is seeking to raise as much as 3.1 billion riyals ($836 million) from selling shares in its malls unit. It would be the country’s largest IPO since 2014.
Arabian Centres Co. set the price range of the initial public offering at 26 riyals to 33 riyals, valuing it at as much as 15.7 billion riyals. The company operates 19 shopping malls in the kingdom.
Saudi share sales slowed as the kingdom’s economy grappled with lower oil prices. Listings by companies and real-estate investment trusts raised almost $900 million last year, down from $6.7 billion in 2014, according to data compiled by Bloomberg.
Fawaz Alhokair Group, the Saudi retailer that owns the franchise for brands like Banana Republic and Zara, is seeking to raise as much as 3.1 billion riyals ($836 million) from selling shares in its malls unit. It would be the country’s largest IPO since 2014.
Arabian Centres Co. set the price range of the initial public offering at 26 riyals to 33 riyals, valuing it at as much as 15.7 billion riyals. The company operates 19 shopping malls in the kingdom.
Saudi share sales slowed as the kingdom’s economy grappled with lower oil prices. Listings by companies and real-estate investment trusts raised almost $900 million last year, down from $6.7 billion in 2014, according to data compiled by Bloomberg.
FlyDubai Looking at Financing Options Ahead of Maturing Sukuk - Bloomberg
FlyDubai Looking at Financing Options Ahead of Maturing Sukuk - Bloomberg:
FlyDubai, a discount airline that’s forging closer links to long-haul giant Emirates, is looking at funding options for its sukuk maturing in November.
The carrier seeks to replace the $500 million Islamic loan with new sukuk or a combination of sukuk and bank loans, Chief Executive Officer Ghaith Al-Ghaith said in Dubai on Sunday. FlyDubai hasn’t yet asked banks to bid.
He also said there are no updates on the airline’s plans for the Boeing’s 737 Max or potential orders. “The grounding of the 737 Max will impact our financials but our priority is to ensure the aircraft is safe and ready to fly," Al-Ghaith said.
FlyDubai, a discount airline that’s forging closer links to long-haul giant Emirates, is looking at funding options for its sukuk maturing in November.
The carrier seeks to replace the $500 million Islamic loan with new sukuk or a combination of sukuk and bank loans, Chief Executive Officer Ghaith Al-Ghaith said in Dubai on Sunday. FlyDubai hasn’t yet asked banks to bid.
He also said there are no updates on the airline’s plans for the Boeing’s 737 Max or potential orders. “The grounding of the 737 Max will impact our financials but our priority is to ensure the aircraft is safe and ready to fly," Al-Ghaith said.
#SaudiArabia may issue euro-demonimated bonds this year - finance minister - Reuters
Saudi Arabia may issue euro-demonimated bonds this year - finance minister - Reuters:
Saudi Arabia may issue euro-denominated bonds this year, depending on market conditions, Finance Minister Mohammed al-Jadaan said on Sunday.
Saudi Arabia plans to issue 118 billion riyals ($31.47 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 last month.
Saudi Arabia may issue euro-denominated bonds this year, depending on market conditions, Finance Minister Mohammed al-Jadaan said on Sunday.
Saudi Arabia plans to issue 118 billion riyals ($31.47 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 last month.
Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg
Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg:
President Donald Trump wants to strangle the Iranian economy and keep gas prices low for American drivers. The discovery that Russia has been exporting contaminated crude oil means any hopes that he could do both have all but evaporated.
Trump decided this month not to renew waivers that let countries buy Iranian oil without violating his sanctions, affecting eight nations that have exemptions expiring on May 2. This drove crude prices higher at a time when gasoline prices were already rising. Gas is up by nearly 30 percent since the start of the year and is now within 10 cents of last year’s peak, before America’s summer driving season has even started.
This harsher regime looks like it will stick. While some countries will try to persuade Trump to grant last-minute extensions, the current rhetoric from Washington doesn’t look encouraging. The exemptions that were made alongside the first wave of sanctions in November were unexpected. Offering a second round of waivers after saying there wouldn’t be any would, frankly, make Trump’s administration look stupid.
President Donald Trump wants to strangle the Iranian economy and keep gas prices low for American drivers. The discovery that Russia has been exporting contaminated crude oil means any hopes that he could do both have all but evaporated.
Trump decided this month not to renew waivers that let countries buy Iranian oil without violating his sanctions, affecting eight nations that have exemptions expiring on May 2. This drove crude prices higher at a time when gasoline prices were already rising. Gas is up by nearly 30 percent since the start of the year and is now within 10 cents of last year’s peak, before America’s summer driving season has even started.
This harsher regime looks like it will stick. While some countries will try to persuade Trump to grant last-minute extensions, the current rhetoric from Washington doesn’t look encouraging. The exemptions that were made alongside the first wave of sanctions in November were unexpected. Offering a second round of waivers after saying there wouldn’t be any would, frankly, make Trump’s administration look stupid.
China to Invest $3.4 Billion in #Dubai For Trading Initiative - Bloomberg
China to Invest $3.4 Billion in Dubai For Trading Initiative - Bloomberg:
China plans to to invest $3.4 billion in two Dubai-based trading facilities, increasing the influence of the world’s second-largest economy in the Gulf region.
The country will invest $2.4 billion in a 60-million square-feet (5.6 million square-meters) operation that will be used to store Chinese products for shipping around the world, Dubai ports group DP World said in a statement on Saturday, citing Sheikh Mohammed Bin Rashid Al Maktoum, ruler of Dubai.
“It will include wholesale and retail outlets that help enhance regional and international trade,” according to the statement. DP World has also signed an agreement with China to create a $1 billion project in Dubai to import, process, pack and export agricultural, marine and animal products.
China plans to to invest $3.4 billion in two Dubai-based trading facilities, increasing the influence of the world’s second-largest economy in the Gulf region.
The country will invest $2.4 billion in a 60-million square-feet (5.6 million square-meters) operation that will be used to store Chinese products for shipping around the world, Dubai ports group DP World said in a statement on Saturday, citing Sheikh Mohammed Bin Rashid Al Maktoum, ruler of Dubai.
“It will include wholesale and retail outlets that help enhance regional and international trade,” according to the statement. DP World has also signed an agreement with China to create a $1 billion project in Dubai to import, process, pack and export agricultural, marine and animal products.
#Saudi’s SABIC Q1 net profit drops 38%, cites lower selling prices | ZAWYA MENA Edition
Saudi’s SABIC Q1 net profit drops 38%, cites lower selling prices | ZAWYA MENA Edition:
Saudi Basic Industries Corp (SABIC) expects its financial performance in 2019 won't be as strong as 2018, but will still beat market forecasts, its chief executive said on Sunday.
His comments came after the world's fourth-biggest petrochemicals giant posted a 38 percent drop in first-quarter earnings, missing analyst expectations.
"Our expectations are that 2019 will be better than what the market gives, but it will not be as it was in 2018," Yousef al-Benyan told reporters in Riyadh.
Saudi Basic Industries Corp (SABIC) expects its financial performance in 2019 won't be as strong as 2018, but will still beat market forecasts, its chief executive said on Sunday.
His comments came after the world's fourth-biggest petrochemicals giant posted a 38 percent drop in first-quarter earnings, missing analyst expectations.
"Our expectations are that 2019 will be better than what the market gives, but it will not be as it was in 2018," Yousef al-Benyan told reporters in Riyadh.
Warren Buffett Bets on #Dubai Property as Market Prolongs Slump - Bloomberg
Warren Buffett Bets on Dubai Property as Market Prolongs Slump - Bloomberg:
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Berkshire Hathaway HomeServices Gulf Properties will be led by Chairman Ihsan Husein Al Marzouqi and Chief Executive Officer Phil Sheridan. It will have a team of 30 advisers and support staff, according to a statement. “Gulf Properties aspires to grow quickly by tripling its advisor count and opening a second office in Abu Dhabi within a year," it said.
Berkshire Hathaway HomeServices in November teamed up with London-based Kay & Co., its second franchisee in Europe, after Rubina Real Estate in Berlin. The company said then it hoped to add Milan, Vienna and Dubai to its network. Berkshire Hathaway Specialty Insurance Co. started operations in Dubai last year.
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Berkshire Hathaway HomeServices Gulf Properties will be led by Chairman Ihsan Husein Al Marzouqi and Chief Executive Officer Phil Sheridan. It will have a team of 30 advisers and support staff, according to a statement. “Gulf Properties aspires to grow quickly by tripling its advisor count and opening a second office in Abu Dhabi within a year," it said.
Berkshire Hathaway HomeServices in November teamed up with London-based Kay & Co., its second franchisee in Europe, after Rubina Real Estate in Berlin. The company said then it hoped to add Milan, Vienna and Dubai to its network. Berkshire Hathaway Specialty Insurance Co. started operations in Dubai last year.
Oil Squeeze on #Iran Aids Putin's Power Play in the Middle East - Bloomberg
Oil Squeeze on Iran Aids Putin's Power Play in the Middle East - Bloomberg:
If President Donald Trump succeeds in cutting Iran’s oil exports to almost nothing, one of the main beneficiaries is likely to be Russia.
The economic blow to Iran will ease the Kremlin’s efforts to rein in Iranian influence in Syria, bolstering President Vladimir Putin’s efforts to project Russian power across the Middle East. Tehran and Moscow were one-time collaborators in the region, but they’ve found themselves increasingly at odds as Syria’s eight-year-old civil war winds down.
In recent months, the two main power brokers in Syria have engaged in deadly clashes, with Russian and Iranian forces and their proxies firing at one another, according to a Russian official and media reports. The relationship between the two countries is tense, three people close to the Russian government confirmed, speaking on condition of anonymity to discuss confidential matters.
If President Donald Trump succeeds in cutting Iran’s oil exports to almost nothing, one of the main beneficiaries is likely to be Russia.
The economic blow to Iran will ease the Kremlin’s efforts to rein in Iranian influence in Syria, bolstering President Vladimir Putin’s efforts to project Russian power across the Middle East. Tehran and Moscow were one-time collaborators in the region, but they’ve found themselves increasingly at odds as Syria’s eight-year-old civil war winds down.
In recent months, the two main power brokers in Syria have engaged in deadly clashes, with Russian and Iranian forces and their proxies firing at one another, according to a Russian official and media reports. The relationship between the two countries is tense, three people close to the Russian government confirmed, speaking on condition of anonymity to discuss confidential matters.
Current oil prices are fair, #Kuwait deputy minister says - Reuters
Current oil prices are fair, Kuwait deputy minister says - Reuters:
Kuwait’s acting deputy oil minister said on Sunday that the oil market is balanced and current prices are fair.
“The current oil prices of around $74 per barrel are fair prices ... And Kuwait is committed to its agreed quota under the production reduction agreement,” Sheikh Talal Nasser Al-Izabi Al-Sabah told reporters.
“Oil prices are currently supported by geopolitical tensions in Libya, Venezuela, Nigeria, sanctions on Iran and a decrease in U.S. inventories,” Al-Sabah added.
Kuwait’s acting deputy oil minister said on Sunday that the oil market is balanced and current prices are fair.
“The current oil prices of around $74 per barrel are fair prices ... And Kuwait is committed to its agreed quota under the production reduction agreement,” Sheikh Talal Nasser Al-Izabi Al-Sabah told reporters.
“Oil prices are currently supported by geopolitical tensions in Libya, Venezuela, Nigeria, sanctions on Iran and a decrease in U.S. inventories,” Al-Sabah added.
Libyan oil revenues rise after field recovered from militia
Libyan oil revenues rise after field recovered from militia:
Libya’s National Oil Corporation says monthly oil revenues increased by 20% to more than $1.5 billion in March, after forces loyal to a military commander captured an oil field from another militia that had closed it for three months.
NOC chairman Mustafa Sanalla said late Saturday, however, that the latest fighting in Tripoli threatens production.
Field Marshal Khalifa Hifter’s self-styled Libyan National Army captured the Sharara oil field in southwestern Libya in February and allowed the NOC to resume operations there. Earlier this month, his forces advanced on the capital, where they are battling armed groups loosely allied with a weak, U.N.-backed government.
Libya’s National Oil Corporation says monthly oil revenues increased by 20% to more than $1.5 billion in March, after forces loyal to a military commander captured an oil field from another militia that had closed it for three months.
NOC chairman Mustafa Sanalla said late Saturday, however, that the latest fighting in Tripoli threatens production.
Field Marshal Khalifa Hifter’s self-styled Libyan National Army captured the Sharara oil field in southwestern Libya in February and allowed the NOC to resume operations there. Earlier this month, his forces advanced on the capital, where they are battling armed groups loosely allied with a weak, U.N.-backed government.
UPDATE 1- #UAE's United Arab Bank cuts 150 jobs - sources - Reuters
UPDATE 1-UAE's United Arab Bank cuts 150 jobs - sources - Reuters:
United Arab Bank made about 150 staff redundant last week as part of cost cutting and efficiency measures, three sources told Reuters.
The bank said in a statement it had completed an assessment of its human resources requirements that concluded it had “excess capacity”, without giving details.
“Letting go of talent is never an easy decision,” it said.
United Arab Bank made about 150 staff redundant last week as part of cost cutting and efficiency measures, three sources told Reuters.
The bank said in a statement it had completed an assessment of its human resources requirements that concluded it had “excess capacity”, without giving details.
“Letting go of talent is never an easy decision,” it said.
PIF-backed #Saudi real estate firm to buy $200 mln worth of mortgages - Reuters
PIF-backed Saudi real estate firm to buy $200 mln worth of mortgages - Reuters:
Saudi Real Estate Refinance Co (SRC), a subsidiary of sovereign wealth fund Public Investment Fund, said on Saturday it had agreed to buy 750 million riyals ($200 million) worth of mortgages from local banks and mortgage financing companies.
The move comes after SRC recently completed a 750 million riyal sukuk issue with multiple tenors, under a programme that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.
SRC, formed in 2017, is trying to boost the kingdom’s secondary mortgage market. It aims to refinance 20 percent of Saudi Arabia’s mortgage market over the next decade. The agreements, signed on the sidelines of the Financial Sector Conference in Riyadh last week, included deals to buy portfolio of mortgages from Saudi British Bank and Banque Saudi Fransi, it said in a statement.
Saudi Real Estate Refinance Co (SRC), a subsidiary of sovereign wealth fund Public Investment Fund, said on Saturday it had agreed to buy 750 million riyals ($200 million) worth of mortgages from local banks and mortgage financing companies.
The move comes after SRC recently completed a 750 million riyal sukuk issue with multiple tenors, under a programme that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.
SRC, formed in 2017, is trying to boost the kingdom’s secondary mortgage market. It aims to refinance 20 percent of Saudi Arabia’s mortgage market over the next decade. The agreements, signed on the sidelines of the Financial Sector Conference in Riyadh last week, included deals to buy portfolio of mortgages from Saudi British Bank and Banque Saudi Fransi, it said in a statement.
MIDEAST STOCKS- #SaudiArabia up on banks, other Gulf shares lower - Reuters
MIDEAST STOCKS-Saudi Arabia up on banks, other Gulf shares lower - Reuters:
Stocks in Saudi Arabia gained on Sunday after lenders such as Riyad Bank rose due to strong earnings, while markets across the rest of the Gulf region traded lower.
Saudi stocks were up 0.23 percent, boosted by Riyad Bank, which added 2 percent, while Al Rajhi Bank gained 0.1 percent. Both banks posted a jump in first-quarter net profits last week.
However, Samba Financial Group was down 1.42 percent after last week it said its profits fell 7.4 percent year-on-year, missing analyst estimates.
Stocks in Saudi Arabia gained on Sunday after lenders such as Riyad Bank rose due to strong earnings, while markets across the rest of the Gulf region traded lower.
Saudi stocks were up 0.23 percent, boosted by Riyad Bank, which added 2 percent, while Al Rajhi Bank gained 0.1 percent. Both banks posted a jump in first-quarter net profits last week.
However, Samba Financial Group was down 1.42 percent after last week it said its profits fell 7.4 percent year-on-year, missing analyst estimates.
Saturday, 27 April 2019
Putin Says Countries in OPEC+ Deal Are Abiding by Agreement - Bloomberg
Putin Says Countries in OPEC+ Deal Are Abiding by Agreement - Bloomberg:
OPEC+ states including Saudi Arabia are complying with the terms of the agreement to limit oil output, Russian President Vladimir Putin said.
“We have agreements within the OPEC+. We fulfill our agreements and we don’t have any news, any information, from our Saudi partners and any other OPEC member, that they are ready to exit these agreements,” Putin told reporters in Beijing on Saturday, where he participated in the Belt and Road forum.
On Friday, U.S. President Donald Trump tweeted that he “spoke to Saudi Arabia and others about increasing oil flow” and said that “all are in agreement” after the administration announced on Monday that it wouldn’t extend waivers for buyers of Iranian crude that had allowed them to continue purchases despite American sanctions.
OPEC+ states including Saudi Arabia are complying with the terms of the agreement to limit oil output, Russian President Vladimir Putin said.
“We have agreements within the OPEC+. We fulfill our agreements and we don’t have any news, any information, from our Saudi partners and any other OPEC member, that they are ready to exit these agreements,” Putin told reporters in Beijing on Saturday, where he participated in the Belt and Road forum.
On Friday, U.S. President Donald Trump tweeted that he “spoke to Saudi Arabia and others about increasing oil flow” and said that “all are in agreement” after the administration announced on Monday that it wouldn’t extend waivers for buyers of Iranian crude that had allowed them to continue purchases despite American sanctions.
Oil Bulls on Longest Run in 13 Years as Trump Demands Price Cut - Bloomberg
Oil Bulls on Longest Run in 13 Years as Trump Demands Price Cut - Bloomberg:
Oil is on its longest bull run in 13 years, fueling a rally that has U.S. President Donald Trump fretting about higher prices.
Hedge funds have increased bullish sentiment on U.S. crude prices for the last nine weeks, the longest such run since 2006, according to data released Friday. Almost 14 times as many bets have been placed on prices going up as on a decline, as investors see supply threats multiplying around the globe.
Gasoline prices have risen in tandem this year, and Trump on Friday said that he has pressured OPEC to boost output to reverse the trend. That helped stall a rally that drove oil to a six-month high, partly due to tightened U.S. sanctions against Iran. But the ebullient tilt in speculative wagers suggested a correction was likely no matter what, said Phil Flynn of Price Futures Group Inc.
Oil is on its longest bull run in 13 years, fueling a rally that has U.S. President Donald Trump fretting about higher prices.
Hedge funds have increased bullish sentiment on U.S. crude prices for the last nine weeks, the longest such run since 2006, according to data released Friday. Almost 14 times as many bets have been placed on prices going up as on a decline, as investors see supply threats multiplying around the globe.
Gasoline prices have risen in tandem this year, and Trump on Friday said that he has pressured OPEC to boost output to reverse the trend. That helped stall a rally that drove oil to a six-month high, partly due to tightened U.S. sanctions against Iran. But the ebullient tilt in speculative wagers suggested a correction was likely no matter what, said Phil Flynn of Price Futures Group Inc.
Putin hopes #Iran will continue oil exports despite U.S. warning - Reuters
Putin hopes Iran will continue oil exports despite U.S. warning - Reuters:
Russian President Vladimir Putin said on Saturday he hoped Iranian oil exports would continue despite Washington’s efforts to stop them.
Washington has demanded that buyers of Iranian crude halt purchases by May 1 or face sanctions, a move to choke off Tehran’s oil revenues.
The United States expects Saudi Arabia and its Gulf allies to boost output in order to offset the cut in Iranian supplies.
Russian President Vladimir Putin said on Saturday he hoped Iranian oil exports would continue despite Washington’s efforts to stop them.
Washington has demanded that buyers of Iranian crude halt purchases by May 1 or face sanctions, a move to choke off Tehran’s oil revenues.
The United States expects Saudi Arabia and its Gulf allies to boost output in order to offset the cut in Iranian supplies.
Saudis, OPEC deny discussing lowering oil prices with Trump: report
Saudis, OPEC deny discussing lowering oil prices with Trump: report:
Neither Saudi Arabia’s energy minister nor OPEC’s secretary general discussed lowering oil prices with President Donald Trump, sources told the Wall Street Journal, denying the U.S. leader’s earlier claim.
Moments after the Journal reported the denials, Trump took to Twitter to double down on his earlier remark.
“Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement,” the president tweeted.
Neither Saudi Arabia’s energy minister nor OPEC’s secretary general discussed lowering oil prices with President Donald Trump, sources told the Wall Street Journal, denying the U.S. leader’s earlier claim.
Moments after the Journal reported the denials, Trump took to Twitter to double down on his earlier remark.
“Spoke to Saudi Arabia and others about increasing oil flow. All are in agreement,” the president tweeted.
Friday, 26 April 2019
doha: #Qatar to abolish exit visa system by year's end: UN - The Economic Times
doha: Qatar to abolish exit visa system by year's end: UN - The Economic Times:
Qatar is set to abolish its controversial exit visa system for all foreign workers by the end of the year, the UN's International Labour Organisation said Friday.
Qatar has introduced a series of labour reforms since its selection as the 2022 World Cup host, with the event setting in motion a huge construction programme employing foreign workers.
"Last year, the exit visa was eliminated for the majority of workers, this year, that will be extended to all remaining categories of workers," ILO's Houtan Homayounpour, head of the labour agency's project office in Doha, told AFP.
Qatar is set to abolish its controversial exit visa system for all foreign workers by the end of the year, the UN's International Labour Organisation said Friday.
Qatar has introduced a series of labour reforms since its selection as the 2022 World Cup host, with the event setting in motion a huge construction programme employing foreign workers.
"Last year, the exit visa was eliminated for the majority of workers, this year, that will be extended to all remaining categories of workers," ILO's Houtan Homayounpour, head of the labour agency's project office in Doha, told AFP.
Investors bolster oversight in emerging-market private equity after #Abraaj collapse - Reuters
Investors bolster oversight in emerging-market private equity after Abraaj collapse - Reuters:
Investors in private equity funds that focus on emerging markets are tightening oversight after the collapse of a Middle East buyout firm, a survey has found.
Many investors said they planned to put more money into such funds over the next two years, but also to install extra checks and balances, suggested the survey by the Emerging Markets Private Equity Association (EMPEA).
Dubai-based Abraaj Capital Ltd had been the largest buyout fund in the Middle East and North Africa until it fell apart last year after a dispute with investors, including the Gates Foundation, over a $1 billion healthcare fund. Two of its top executives have been arrested.
Investors in private equity funds that focus on emerging markets are tightening oversight after the collapse of a Middle East buyout firm, a survey has found.
Many investors said they planned to put more money into such funds over the next two years, but also to install extra checks and balances, suggested the survey by the Emerging Markets Private Equity Association (EMPEA).
Dubai-based Abraaj Capital Ltd had been the largest buyout fund in the Middle East and North Africa until it fell apart last year after a dispute with investors, including the Gates Foundation, over a $1 billion healthcare fund. Two of its top executives have been arrested.
#Abraaj founder Naqvi refused bail on flight risk | Financial Times
Abraaj founder Naqvi refused bail on flight risk | Financial Times:
The founder of collapsed private equity group Abraaj was refused bail by a London court on Friday in the latest stage of his battle to fight extradition to the US on fraud charges.
Arif Naqvi is facing allegations that he defrauded investors by lying about the financial health of Dubai-based Abraaj, which was one of the largest emerging market private equity groups.
The 58-year-old, who is accused of inflating the value of the company’s funds and diverting millions of dollars for personal gain, has been held in a UK prison since being arrested at Heathrow airport on April 10.
The founder of collapsed private equity group Abraaj was refused bail by a London court on Friday in the latest stage of his battle to fight extradition to the US on fraud charges.
Arif Naqvi is facing allegations that he defrauded investors by lying about the financial health of Dubai-based Abraaj, which was one of the largest emerging market private equity groups.
The 58-year-old, who is accused of inflating the value of the company’s funds and diverting millions of dollars for personal gain, has been held in a UK prison since being arrested at Heathrow airport on April 10.
With Asda deal dead, Sainsbury's looks to revive sales - Reuters #Qatar
With Asda deal dead, Sainsbury's looks to revive sales - Reuters:
With Sainsbury’s dream of creating Britain’s biggest supermarket group in tatters, its chastened CEO Mike Coupe needs to reassure investors he has the plan to arrest a sales decline when he presents annual results next week.
Britain’s competition regulator blocked Sainsbury’s 7.3 billion pound ($9.4 billion) takeover of Walmart’s Asda on Thursday, saying the deal would increase prices. Sainsbury’s shares fell 5 percent and are down 22 percent over the last three months.
For Sainsbury’s fourth quarter to March 9 analysts are on average forecasting a 1.6 percent fall in like-for-like sales, which would follow 1.1 percent decline over the Christmas period.
With Sainsbury’s dream of creating Britain’s biggest supermarket group in tatters, its chastened CEO Mike Coupe needs to reassure investors he has the plan to arrest a sales decline when he presents annual results next week.
Britain’s competition regulator blocked Sainsbury’s 7.3 billion pound ($9.4 billion) takeover of Walmart’s Asda on Thursday, saying the deal would increase prices. Sainsbury’s shares fell 5 percent and are down 22 percent over the last three months.
For Sainsbury’s fourth quarter to March 9 analysts are on average forecasting a 1.6 percent fall in like-for-like sales, which would follow 1.1 percent decline over the Christmas period.
Oil sink 3% as Trump again pressures OPEC to lower crude prices - Reuters
Oil sink 3% as Trump again pressures OPEC to lower crude prices - Reuters:
Oil prices fell 3% on Friday after U.S. President Donald Trump again pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.
Profit-taking from the oil market’s strongest bull run in at least a year also pushed prices through technical stops which accelerated the decline, analysts said.
Brent crude futures settled at $72.15 a barrel, down $2.20, or 3 percent. West Texas Intermediate crude ended at $63.30 a barrel, down $1.91, or 2.9 percent.
Brent was flat on the week after rallying for four weeks in a row. WTI saw a 1.2 percent weekly loss, breaking its six-week bull run.
Oil prices fell 3% on Friday after U.S. President Donald Trump again pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.
Profit-taking from the oil market’s strongest bull run in at least a year also pushed prices through technical stops which accelerated the decline, analysts said.
Brent crude futures settled at $72.15 a barrel, down $2.20, or 3 percent. West Texas Intermediate crude ended at $63.30 a barrel, down $1.91, or 2.9 percent.
Brent was flat on the week after rallying for four weeks in a row. WTI saw a 1.2 percent weekly loss, breaking its six-week bull run.
Oil extends decline to over 3% after Trump Opec comments | Financial Times
Oil extends decline to over 3% after Trump Opec comments | Financial Times:
Oil accelerated its decline to over 3 per cent on Friday after US president Donald Trump said he had called Opec to demand that the cartel brings down prices.
“I called up Opec, I said you’ve got to bring them down. You’ve got to bring them down,” Mr Trump told reporters, according to Reuters.
Brent crude, the international oil benchmark, fell by $2.32 a barrel — or 3.1 per cent — to $72.08. West Texas Intermediate, the US marker, fell by $2.20 a barrel — or 3.4 per cent — to $63.12.
Oil accelerated its decline to over 3 per cent on Friday after US president Donald Trump said he had called Opec to demand that the cartel brings down prices.
“I called up Opec, I said you’ve got to bring them down. You’ve got to bring them down,” Mr Trump told reporters, according to Reuters.
Brent crude, the international oil benchmark, fell by $2.32 a barrel — or 3.1 per cent — to $72.08. West Texas Intermediate, the US marker, fell by $2.20 a barrel — or 3.4 per cent — to $63.12.
Trump's Widening OPEC Fight Puts Saudi Oil Capacity in Spotlight - Bloomberg
Trump's Widening OPEC Fight Puts Saudi Oil Capacity in Spotlight - Bloomberg:
The biggest threat to President Donald Trump’s hopes for low gasoline prices is his growing entanglement in the politics of OPEC nations.
The White House plans to choke off oil exports from Iran without triggering a spike in prices largely by getting Saudi Arabia, the only OPEC member with significant spare capacity, to make up the shortfall. Yet his parallel interventions in Venezuela and, more recently, Libya could test the kingdom’s ability to deal with further disruptions.
Crude prices have already climbed almost 40 percent this year, hitting $75 a barrel in London this week for the first time in six months. If reserve output is exhausted by multiple supply crises, it could surge to levels that hurt the global economy.
The biggest threat to President Donald Trump’s hopes for low gasoline prices is his growing entanglement in the politics of OPEC nations.
The White House plans to choke off oil exports from Iran without triggering a spike in prices largely by getting Saudi Arabia, the only OPEC member with significant spare capacity, to make up the shortfall. Yet his parallel interventions in Venezuela and, more recently, Libya could test the kingdom’s ability to deal with further disruptions.
Crude prices have already climbed almost 40 percent this year, hitting $75 a barrel in London this week for the first time in six months. If reserve output is exhausted by multiple supply crises, it could surge to levels that hurt the global economy.
Oil Ends Week With a Slump Despite Russia Pipeline Outage - Bloomberg
Oil Ends Week With a Slump Despite Russia Pipeline Outage - Bloomberg:
Oil fell, paring an eighth weekly advance, even as supplies stopped flowing through a major Russian pipeline to Europe.
Futures in New York lost as much as 1.4 percent, while Brent also fell.
Futures in London had spiked briefly above $75 a barrel on Thursday as Russian flows were halted after customers complained of impurities. Prices have since failed to extend gains as investors wait to see how long the outage will last.
Oil fell, paring an eighth weekly advance, even as supplies stopped flowing through a major Russian pipeline to Europe.
Futures in New York lost as much as 1.4 percent, while Brent also fell.
Futures in London had spiked briefly above $75 a barrel on Thursday as Russian flows were halted after customers complained of impurities. Prices have since failed to extend gains as investors wait to see how long the outage will last.
Mubadala Investment launches $1bln fund: #AbuDhabi Catalyst Partners | ZAWYA MENA Edition
Mubadala Investment launches $1bln fund: Abu Dhabi Catalyst Partners | ZAWYA MENA Edition:
Abu Dhabi Global Market, the International Financial Centre will be home to a newly established $1 billion fund: Abu Dhabi Catalyst Partners.
The new enterprise will pursue opportunities that satisfy a mandate of establishing a hub for pioneering companies to locate at ADGM, to generate attractive returns while having a positive impact on the ADGM ecosystem.
Abu Dhabi Catalyst Partners seeks to realise commercial returns by partnering with top tier and up-and -coming investment firms and industry-leading businesses and professionals who will benefit from building a meaningful and sustainable presence in Abu Dhabi Global Market.
Abu Dhabi Global Market, the International Financial Centre will be home to a newly established $1 billion fund: Abu Dhabi Catalyst Partners.
The new enterprise will pursue opportunities that satisfy a mandate of establishing a hub for pioneering companies to locate at ADGM, to generate attractive returns while having a positive impact on the ADGM ecosystem.
Abu Dhabi Catalyst Partners seeks to realise commercial returns by partnering with top tier and up-and -coming investment firms and industry-leading businesses and professionals who will benefit from building a meaningful and sustainable presence in Abu Dhabi Global Market.
#Qatar emerges as front-runner for long-term LNG deal for Pakistan - Reuters
Qatar emerges as front-runner for long-term LNG deal for Pakistan - Reuters:
Qatar has emerged as the front-runner for a long-term gas supply deal to Pakistan, a senior Pakistani official said on Friday, with the cabinet of Prime Minister Imran Khan set to decide in the coming weeks on an agreement.
Pakistan, with 208 million people, is running out of domestic gas and has turned to liquefied natural gas (LNG) imports to alleviate chronic energy shortages that have hindered its economy and led to a decade of electricity blackouts.
Qatar is already Pakistan’s biggest gas supplier after signing a 15-year agreement to export up to 3.75 million tonnes of LNG a year to the South Asian country. That 2016 deal supplied Pakistan’s first LNG terminal.
Qatar has emerged as the front-runner for a long-term gas supply deal to Pakistan, a senior Pakistani official said on Friday, with the cabinet of Prime Minister Imran Khan set to decide in the coming weeks on an agreement.
Pakistan, with 208 million people, is running out of domestic gas and has turned to liquefied natural gas (LNG) imports to alleviate chronic energy shortages that have hindered its economy and led to a decade of electricity blackouts.
Qatar is already Pakistan’s biggest gas supplier after signing a 15-year agreement to export up to 3.75 million tonnes of LNG a year to the South Asian country. That 2016 deal supplied Pakistan’s first LNG terminal.
Backstory: Tracking Africa’s smuggled gold - Reuters #Dubai #UAE
Backstory: Tracking Africa’s smuggled gold - Reuters:
It took Reuters journalists a few days of research to work out that the numbers coming out of Africa’s vast gold trade did not add up.
It then took almost another 15 months - and the contributions of colleagues and analysts across the world - to show how those discrepancies pointed to a vast web of smuggling operations, reaching from the pit mines of the Democratic Republic of Congo across the continent to the Gulf.
Reuters has now published the first results of all that work – an exclusive report on the billions of dollars' worth of gold spirited out of Africa every year through the United Arab Emirates, a gateway to markets in Europe, the United States and beyond. (here)
It took Reuters journalists a few days of research to work out that the numbers coming out of Africa’s vast gold trade did not add up.
It then took almost another 15 months - and the contributions of colleagues and analysts across the world - to show how those discrepancies pointed to a vast web of smuggling operations, reaching from the pit mines of the Democratic Republic of Congo across the continent to the Gulf.
Reuters has now published the first results of all that work – an exclusive report on the billions of dollars' worth of gold spirited out of Africa every year through the United Arab Emirates, a gateway to markets in Europe, the United States and beyond. (here)
Russia's Sechin says no threat for now of global oil deficit - Reuters
Russia's Sechin says no threat for now of global oil deficit - Reuters:
Russia’s Rosneft does not see tougher U.S. sanctions on Iran resulting in a global oil deficit in the second and third quarters of 2019, the Russian oil giant’s CEO Igor Sechin said on Friday.
Asked whether Russia should gradually withdraw from a supply cut agreement with OPEC, Sechin pointed to U.S. Secretary of State Mike Pompeo’s statement saying that any drop in Iran’s supplies would be offset by exports from Saudi Arabia and the United Arab Emirates.
Russia’s Rosneft does not see tougher U.S. sanctions on Iran resulting in a global oil deficit in the second and third quarters of 2019, the Russian oil giant’s CEO Igor Sechin said on Friday.
Asked whether Russia should gradually withdraw from a supply cut agreement with OPEC, Sechin pointed to U.S. Secretary of State Mike Pompeo’s statement saying that any drop in Iran’s supplies would be offset by exports from Saudi Arabia and the United Arab Emirates.
#Saudi, #UAE overstate their oil capacities: Iran oil minister - Reuters
Saudi, UAE overstate their oil capacities: Iran oil minister - Reuters:
Iranian Oil Minister Bijan Zanganeh said Saudi Arabia and the United Arab Emirates overstate their oil capacities, Iran’s state news agency IRNA reported on Friday.
The comments were in reaction to expectations the two countries would fill any supply gap caused by a tightening of U.S. sanctions on Iran.
Washington has decided not to renew its exemptions from U.S. sanctions to buyers of Iranian oil. A senior U.S. administration official said on Monday that President Donald Trump was confident Saudi Arabia and the United Arab Emirates would fill any gap left in the oil market.
Iranian Oil Minister Bijan Zanganeh said Saudi Arabia and the United Arab Emirates overstate their oil capacities, Iran’s state news agency IRNA reported on Friday.
The comments were in reaction to expectations the two countries would fill any supply gap caused by a tightening of U.S. sanctions on Iran.
Washington has decided not to renew its exemptions from U.S. sanctions to buyers of Iranian oil. A senior U.S. administration official said on Monday that President Donald Trump was confident Saudi Arabia and the United Arab Emirates would fill any gap left in the oil market.
Oil set to extend long run of weekly gains in tense global market - Reuters
Oil set to extend long run of weekly gains in tense global market - Reuters:
Oil prices dipped on Friday on expectations that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a hardening of sanctions on Tehran by the United States.
Still, prices are on course for the longest run of weekly gains in years, as oil markets have tightened amid supply disruptions and rising geopolitical concerns, especially over the tensions between the United States and Iran.
Brent crude futures were at $74.18 per barrel at 0505 GMT, down 17 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.89 per barrel, down 32 cents, or 0.5 percent.
Oil prices dipped on Friday on expectations that producer club OPEC will soon raise output to make up for a decline in exports from Iran following a hardening of sanctions on Tehran by the United States.
Still, prices are on course for the longest run of weekly gains in years, as oil markets have tightened amid supply disruptions and rising geopolitical concerns, especially over the tensions between the United States and Iran.
Brent crude futures were at $74.18 per barrel at 0505 GMT, down 17 cents, or 0.2 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $64.89 per barrel, down 32 cents, or 0.5 percent.
Thursday, 25 April 2019
Former Abraaj director fights on in London extradition battle - The National
Former Abraaj director fights on in London extradition battle - The National:
A recently arrested senior director of the now-defunct private equity firm Abraaj has been permitted by a London judge to alter the place where he checked in with police as part of his bail conditions.
Sivendran Vettivetpillai is fighting an American extradition request over accusations by US prosecutors that he fraudulent misaproaopted millions of dollars.
A week ago, Mr Vettivetpillai became the third former director of Abraaj to be detained amid the aftermath of the industry giant’s insolvency. US prosecutors allege he duped investors, which include the Bill & Melinda Gates Foundation.
A recently arrested senior director of the now-defunct private equity firm Abraaj has been permitted by a London judge to alter the place where he checked in with police as part of his bail conditions.
Sivendran Vettivetpillai is fighting an American extradition request over accusations by US prosecutors that he fraudulent misaproaopted millions of dollars.
A week ago, Mr Vettivetpillai became the third former director of Abraaj to be detained amid the aftermath of the industry giant’s insolvency. US prosecutors allege he duped investors, which include the Bill & Melinda Gates Foundation.
#SaudiArabia considers relaxing ownership limits for foreign investors | Business | The Journal Pioneer
Saudi Arabia considers relaxing ownership limits for foreign investors | Business | The Journal Pioneer:
Saudi Arabia’s Capital Market Authority (CMA) is considering relaxing a 49 percent limit for foreign strategic investors in shares of listed companies due to increased demand, its chairman said on Thursday.
Foreigners currently own 5.5 percent of Saudi equities but that could nearly double by the end of 2020, Mohammed El Kuwaiz said in an interview on the sidelines of a financial conference in Riyadh.
"We found most strategic investors are maybe looking to build more sizeable stakes," Kuwaiz said.
Saudi Arabia’s Capital Market Authority (CMA) is considering relaxing a 49 percent limit for foreign strategic investors in shares of listed companies due to increased demand, its chairman said on Thursday.
Foreigners currently own 5.5 percent of Saudi equities but that could nearly double by the end of 2020, Mohammed El Kuwaiz said in an interview on the sidelines of a financial conference in Riyadh.
"We found most strategic investors are maybe looking to build more sizeable stakes," Kuwaiz said.
#Saudi Wealth Fund on Track to Manage $400 Billion Assets in 2020 - Bloomberg
Saudi Wealth Fund on Track to Manage $400 Billion Assets in 2020 - Bloomberg:
Saudi Arabia’s sovereign wealth fund is on track to manage $400 billion of assets by the end of next year, its head of corporate finance and treasury said.
“We are going to become one of the largest and most impactful sovereign wealth funds in the world," Alireza Zaimi said at a financial summit in Riyadh. “We are growing our assets faster on the international pool as we are trying to diversify, and increase the size and proportion of our international assets.”
Saudi Arabia is seeking to transform the Public Investment Fund from a domestic holding company into the world’s largest sovereign fund. It’s already made a series of investments in companies such as Tesla Inc. and Uber Technologies Inc. as well as a $45 billion commitment to SoftBank Group Corp.’s Vision Fund.
Saudi Arabia’s sovereign wealth fund is on track to manage $400 billion of assets by the end of next year, its head of corporate finance and treasury said.
“We are going to become one of the largest and most impactful sovereign wealth funds in the world," Alireza Zaimi said at a financial summit in Riyadh. “We are growing our assets faster on the international pool as we are trying to diversify, and increase the size and proportion of our international assets.”
Saudi Arabia is seeking to transform the Public Investment Fund from a domestic holding company into the world’s largest sovereign fund. It’s already made a series of investments in companies such as Tesla Inc. and Uber Technologies Inc. as well as a $45 billion commitment to SoftBank Group Corp.’s Vision Fund.
#Israel to Participate in 2020 #Dubai Expo as Ties With Gulf Warm - Bloomberg
Israel to Participate in 2020 Dubai Expo as Ties With Gulf Warm - Bloomberg:
Israel said Thursday it will take part in next year’s World Expo in Dubai, a further sign of improving ties with Persian Gulf states that once shunned contact with it.
“We look forward to sharing our innovative spirit and the advances our entrepreneurs and innovators are making in the various fields such as water, information and medical technologies,” the Foreign Ministry said in a statement.
In a statement on the Expo’s official website, organizers noted they had invited “all countries” to take part, and that 192 had accepted. It didn’t mention Israel by name.
Israel said Thursday it will take part in next year’s World Expo in Dubai, a further sign of improving ties with Persian Gulf states that once shunned contact with it.
“We look forward to sharing our innovative spirit and the advances our entrepreneurs and innovators are making in the various fields such as water, information and medical technologies,” the Foreign Ministry said in a statement.
In a statement on the Expo’s official website, organizers noted they had invited “all countries” to take part, and that 192 had accepted. It didn’t mention Israel by name.
Aramco Cash Behind #Saudi Oil Revenue Rise That Puzzled Analysts - Bloomberg
Aramco Cash Behind Saudi Oil Revenue Rise That Puzzled Analysts - Bloomberg:
Payments from oil giant Saudi Aramco were behind the surge in the kingdom’s oil revenue in the first quarter, Finance Minister Mohammed Al-Jadaan said, explaining an increase that puzzled economists.
“We received royalties, tax, dividends and special dividends in the first quarter, like we did last year” from Aramco, Al-Jadaan told Bloomberg Television in an interview in Riyadh on Thursday. He also said the kingdom plans to tap international bond markets again this year.
The minister spoke one day after data showed oil revenue climbed to about 169 billion riyals ($45 billion) from 114 billion riyals in the first quarter of 2018. Overall, the biggest Arab economy started the year with a budget surplus for the first time since 2014 as non-oil revenue also increased.
Payments from oil giant Saudi Aramco were behind the surge in the kingdom’s oil revenue in the first quarter, Finance Minister Mohammed Al-Jadaan said, explaining an increase that puzzled economists.
“We received royalties, tax, dividends and special dividends in the first quarter, like we did last year” from Aramco, Al-Jadaan told Bloomberg Television in an interview in Riyadh on Thursday. He also said the kingdom plans to tap international bond markets again this year.
The minister spoke one day after data showed oil revenue climbed to about 169 billion riyals ($45 billion) from 114 billion riyals in the first quarter of 2018. Overall, the biggest Arab economy started the year with a budget surplus for the first time since 2014 as non-oil revenue also increased.
#Dubai's Emaar eyeing entry into China's real estate market | ZAWYA MENA Edition
Dubai's Emaar eyeing entry into China's real estate market | ZAWYA MENA Edition:
Dubai-headquartered property developer Emaar announced on Thursday that it had signed a memorandum of understanding (MoU) with the Dubai branch of Industrial and Commercial Bank of China (ICBC) and Dubai’s largest bank, Emirates NBD, to explore tripartite collaboration with an view to entering the Chinese real estate market.
The MoU was signed during a Belt & Road Bankers Roundtable hosted by ICBC in Beijing on Wednesday, the Dubai Financial Market-listed developer said in a press statement.
The statement said that the cooperation between the three entities would not be limited to financial services support with regard to Emaar’s development in China and other countries in the ‘Belt and Road’ initiative, but would also include joint exploration of urban development and the creation of high-quality living communities in China.
Dubai-headquartered property developer Emaar announced on Thursday that it had signed a memorandum of understanding (MoU) with the Dubai branch of Industrial and Commercial Bank of China (ICBC) and Dubai’s largest bank, Emirates NBD, to explore tripartite collaboration with an view to entering the Chinese real estate market.
The MoU was signed during a Belt & Road Bankers Roundtable hosted by ICBC in Beijing on Wednesday, the Dubai Financial Market-listed developer said in a press statement.
The statement said that the cooperation between the three entities would not be limited to financial services support with regard to Emaar’s development in China and other countries in the ‘Belt and Road’ initiative, but would also include joint exploration of urban development and the creation of high-quality living communities in China.
U.S.-based Six Flags to contest #Dubai park cancellation | ZAWYA MENA Edition
U.S.-based Six Flags to contest Dubai park cancellation | ZAWYA MENA Edition:
U.S.-based theme parks operator Six Flags Entertainment Corporation has said that it will "pursue all our rights and remedies" under its agreement with Dubai-based DXB Entertainments after being formally notified that contracts for a Six Flags Dubai park had been terminated.
In a statement accompanying its quarterly results on Wednesday, Six Flags Entertainment Corporation said that "our partner in Dubai sent us notice purporting to terminate our various contracts with them" on Wednesday.
"We believe that they have no basis to do so and we will pursue all our rights and remedies under our agreements."
U.S.-based theme parks operator Six Flags Entertainment Corporation has said that it will "pursue all our rights and remedies" under its agreement with Dubai-based DXB Entertainments after being formally notified that contracts for a Six Flags Dubai park had been terminated.
In a statement accompanying its quarterly results on Wednesday, Six Flags Entertainment Corporation said that "our partner in Dubai sent us notice purporting to terminate our various contracts with them" on Wednesday.
"We believe that they have no basis to do so and we will pursue all our rights and remedies under our agreements."
#Saudi wealth fund "not in a hurry" to issue bonds, considers funding options | ZAWYA MENA Edition
Saudi wealth fund "not in a hurry" to issue bonds, considers funding options | ZAWYA MENA Edition:
Saudi Arabia's sovereign wealth fund Public Investment Fund (PIF) is "not in a hurry" to issue bonds but is assessing several funding options, an executive said on Thursday.
The PIF has been given the task of helping to deliver the so-called Vision 2030 reform plan, an ambitious economic programme announced by the government in 2016 designed to free the kingdom from dependence on oil exports.
Last year the fund raised an $11 billion international syndicated loan, its first commercial borrowing, and sources told Reuters this month it has been in talks with banks to raise a short-term bridge loan for as much as $8 billion to use for new investments.
Saudi Arabia's sovereign wealth fund Public Investment Fund (PIF) is "not in a hurry" to issue bonds but is assessing several funding options, an executive said on Thursday.
The PIF has been given the task of helping to deliver the so-called Vision 2030 reform plan, an ambitious economic programme announced by the government in 2016 designed to free the kingdom from dependence on oil exports.
Last year the fund raised an $11 billion international syndicated loan, its first commercial borrowing, and sources told Reuters this month it has been in talks with banks to raise a short-term bridge loan for as much as $8 billion to use for new investments.
MIDEAST STOCKS- #Dubai Investments weighs on Dubai index, banks lift #Saudi - Reuters
MIDEAST STOCKS-Dubai Investments weighs on Dubai index, banks lift Saudi - Reuters:
Dubai's stock market fell on Thursday,
pressured by Dubai Investments trading ex-dividend, while banks
lifted the Saudi index.
Dubai's index dropped 0.5 percent, with Dubai
Investments plunging 9.8 percent to its biggest
one-day loss since August 2015, as the stock went ex-dividend.
Takaful Emarat Insurance was down 1.3 percent
after it said it will no longer proceed with the proposed
acquisition of Al Hilal Takaful.
Dubai's stock market fell on Thursday,
pressured by Dubai Investments trading ex-dividend, while banks
lifted the Saudi index.
Dubai's index dropped 0.5 percent, with Dubai
Investments plunging 9.8 percent to its biggest
one-day loss since August 2015, as the stock went ex-dividend.
Takaful Emarat Insurance was down 1.3 percent
after it said it will no longer proceed with the proposed
acquisition of Al Hilal Takaful.
Iraq to Deliver Third-Biggest Chunk of New Oil to 2030, IEA Says - Bloomberg
Iraq to Deliver Third-Biggest Chunk of New Oil to 2030, IEA Says - Bloomberg:
Iraq will be the third-biggest provider of new oil supplies over the next decade, boosting its production by almost 30 percent, according to the International Energy Agency.
The OPEC member will raise output to almost 6 million barrels a day by 2030, overtaking Canada as the world’s fourth-largest producer, as it continues to rehabilitate an oil industry ravaged by decades of conflict and sanctions, the IEA said Thursday. Only the U.S. and Brazil will add more output in the period.
Iraq will be the third-biggest provider of new oil supplies over the next decade, boosting its production by almost 30 percent, according to the International Energy Agency.
The OPEC member will raise output to almost 6 million barrels a day by 2030, overtaking Canada as the world’s fourth-largest producer, as it continues to rehabilitate an oil industry ravaged by decades of conflict and sanctions, the IEA said Thursday. Only the U.S. and Brazil will add more output in the period.
DP World's Q1 shipping container volumes fall in UAE, flat globally | ZAWYA MENA Edition
DP World's Q1 shipping container volumes fall in UAE, flat globally | ZAWYA MENA Edition:
Ports operator DP World on Thursday reported a sharp drop in shipping container volumes in the United Arab Emirates in the first quarter of 2019 and flat growth globally.
DP World operates 78 marine and inland terminals, supported by over 50 related businesses in over 40 countries.
Gross container volumes fell by 0.6 percent on a reported basis and gross like-for-like volumes declined by 0.7 percent, it said in a statement.
Ports operator DP World on Thursday reported a sharp drop in shipping container volumes in the United Arab Emirates in the first quarter of 2019 and flat growth globally.
DP World operates 78 marine and inland terminals, supported by over 50 related businesses in over 40 countries.
Gross container volumes fell by 0.6 percent on a reported basis and gross like-for-like volumes declined by 0.7 percent, it said in a statement.
KKR, BlackRock raising $3 billion for ADNOC pipeline deal -PFI | ZAWYA MENA Edition
KKR, BlackRock raising $3 billion for ADNOC pipeline deal -PFI | ZAWYA MENA Edition:
U.S. investment firms KKR and BlackRock are raising a $3 billion loan to back the purchase of a 40 percent stake in ADNOC Oil Pipelines, an entity of the Abu Dhabi state oil company, according to Project Finance International, a news service that is part of Refinitiv.
BNP Paribas, SMBC, Mizuho, Santander and First Abu Dhabi Bank are leading the loan, which has a 23-year maturity and is now being syndicated to other banks, PFI reported.
ADNOC Oil Pipelines will lease the oil company's interest in 18 pipelines covering 350 km, transporting crude oil and condensates across ADNOC's upstream concessions, for 23 years.
U.S. investment firms KKR and BlackRock are raising a $3 billion loan to back the purchase of a 40 percent stake in ADNOC Oil Pipelines, an entity of the Abu Dhabi state oil company, according to Project Finance International, a news service that is part of Refinitiv.
BNP Paribas, SMBC, Mizuho, Santander and First Abu Dhabi Bank are leading the loan, which has a 23-year maturity and is now being syndicated to other banks, PFI reported.
ADNOC Oil Pipelines will lease the oil company's interest in 18 pipelines covering 350 km, transporting crude oil and condensates across ADNOC's upstream concessions, for 23 years.
#Saudi Telecom hires banks for debut dollar sukuk - Reuters
Saudi Telecom hires banks for debut dollar sukuk - Reuters:
State-run Saudi Telecom has hired six banks to arrange its first issue of U.S. dollar-denominated sukuk, or Islamic bonds, the company said on Thursday.
Saudi corporates are increasingly expected to tap the international debt markets following the inclusion of Saudi government and quasi-government debt in key JP Morgan emerging market bond indexes this year.
The recent jumbo inaugural bond by state-owned oil giant Saudi Aramco has also attracted new interest in Saudi borrowers, and has provided a fresh pricing benchmark for future issues by state-backed entities.
State-run Saudi Telecom has hired six banks to arrange its first issue of U.S. dollar-denominated sukuk, or Islamic bonds, the company said on Thursday.
Saudi corporates are increasingly expected to tap the international debt markets following the inclusion of Saudi government and quasi-government debt in key JP Morgan emerging market bond indexes this year.
The recent jumbo inaugural bond by state-owned oil giant Saudi Aramco has also attracted new interest in Saudi borrowers, and has provided a fresh pricing benchmark for future issues by state-backed entities.
Brent oil hits $75 for first time in 2019 amid tighter Iran sanctions - Reuters
Brent oil hits $75 for first time in 2019 amid tighter Iran sanctions - Reuters:
Brent crude oil on Thursday rose above $75 per barrel for the first time in 2019 in the wake of tightening sanctions on Iran, while gains in U.S. prices were crimped by a surge in U.S. supply.
Brent crude futures rose to a 2019 high of $75.01 per barrel on Thursday and were at $74.90 per barrel at 0705 GMT, up 33 cents, or 0.4 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $65.94 per barrel, up 5 cents from their previous settlement.
Brent crude oil on Thursday rose above $75 per barrel for the first time in 2019 in the wake of tightening sanctions on Iran, while gains in U.S. prices were crimped by a surge in U.S. supply.
Brent crude futures rose to a 2019 high of $75.01 per barrel on Thursday and were at $74.90 per barrel at 0705 GMT, up 33 cents, or 0.4 percent, from their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $65.94 per barrel, up 5 cents from their previous settlement.
MIDEAST STOCKS- #UAE markets slip on ex-dividend stocks, Saudi inches up - Reuters
MIDEAST STOCKS-UAE markets slip on ex-dividend stocks, Saudi inches up - Reuters:
Dubai and Abu Dhabi’s stock markets slid on Thursday, pulled down by firms which traded ex-dividend, while most major Gulf markets fell.
Dubai’s index declined 0.8 percent, with Dubai Investments plunging 8 percent as the stock traded ex-dividend. Emaar Properties, the Emirate’s largest listed developer, was down 1 percent.
The Abu Dhabi index was down 0.6 percent, led by a 6.4 percent decrease in energy company Dana Gas after the stock went ex-dividend.
Dubai and Abu Dhabi’s stock markets slid on Thursday, pulled down by firms which traded ex-dividend, while most major Gulf markets fell.
Dubai’s index declined 0.8 percent, with Dubai Investments plunging 8 percent as the stock traded ex-dividend. Emaar Properties, the Emirate’s largest listed developer, was down 1 percent.
The Abu Dhabi index was down 0.6 percent, led by a 6.4 percent decrease in energy company Dana Gas after the stock went ex-dividend.
Wednesday, 24 April 2019
Oil hovers near 6-month peak as rising US crude stockpiles rise
Oil hovers near 6-month peak as rising US crude stockpiles rise:
Oil prices steadied on Wednesday near six-month highs after data that showed U.S. stockpiles rose to their highest since October 2017, countering fears of tight supply resulting from OPEC output cuts and U.S. sanctions on Venezuela and Iran.
U.S. West Texas Intermediate crude futures settled 41 cents lower at $65.89 per barrel, down more than half a percent. The contract hit $66.60 a barrel on Tuesday, highest since Oct. 31.
Brent crude futures rose 6 cent to $74.57 per barrel, eking out a new six-month closing high. The international benchmark reached $74.73 a barrel on Tuesday, its highest intraday level since Nov. 1.
Oil prices steadied on Wednesday near six-month highs after data that showed U.S. stockpiles rose to their highest since October 2017, countering fears of tight supply resulting from OPEC output cuts and U.S. sanctions on Venezuela and Iran.
U.S. West Texas Intermediate crude futures settled 41 cents lower at $65.89 per barrel, down more than half a percent. The contract hit $66.60 a barrel on Tuesday, highest since Oct. 31.
Brent crude futures rose 6 cent to $74.57 per barrel, eking out a new six-month closing high. The international benchmark reached $74.73 a barrel on Tuesday, its highest intraday level since Nov. 1.
#Saudi financial sector shows off wares to global audience | Arab News
Saudi financial sector shows off wares to global audience | Arab News:
At lunchtime on Tuesday, the headcount of attendees for Saudi Arabia’s latest international financial extravaganza stood at 3,400, and rising. By the time you read this in print or online, it will probably have topped the 4,000 mark and still heading upward.
Organizers at the Financial Sector Conference, which opens in the world-renowned Ritz-Carlton conference hall in Riyadh on Wednesday morning, said informally that some 3,400 attendees had signed up for the two-day showcase of the Kingdom’s financial industry, and that more were registering at an impressive rate.
This is the first time Saudi Arabia has specifically highlighted the progress its financial sector has made within the Vision 2030 strategy to diversify its economy away from oil dependency. Of course, finance was a big feature of the Future Investment Initiative (FII) held in successive years at the same venue, which earned the epithet “Davos in the desert,” but the Kingdom’s policymakers obviously felt that finance was so important to the overall Vision that it needed its own event.
At lunchtime on Tuesday, the headcount of attendees for Saudi Arabia’s latest international financial extravaganza stood at 3,400, and rising. By the time you read this in print or online, it will probably have topped the 4,000 mark and still heading upward.
Organizers at the Financial Sector Conference, which opens in the world-renowned Ritz-Carlton conference hall in Riyadh on Wednesday morning, said informally that some 3,400 attendees had signed up for the two-day showcase of the Kingdom’s financial industry, and that more were registering at an impressive rate.
This is the first time Saudi Arabia has specifically highlighted the progress its financial sector has made within the Vision 2030 strategy to diversify its economy away from oil dependency. Of course, finance was a big feature of the Future Investment Initiative (FII) held in successive years at the same venue, which earned the epithet “Davos in the desert,” but the Kingdom’s policymakers obviously felt that finance was so important to the overall Vision that it needed its own event.
Aramco's bond is 'only the beginning', #Saudi energy minister says - Reuters
Aramco's bond is 'only the beginning', Saudi energy minister says - Reuters:
Saudi Aramco, the world’s biggest oil producer, will remain active in the debt markets after its debut $12 billion bond earlier this month, which was “only the beginning”, Saudi Energy Minister Khalid al-Falih said on Wednesday.
Falih, speaking at a financial conference in Riyadh, also said Aramco would access the equity markets earlier than expected after the company gained exposure among investors through the bond sale.
Many saw the debt deal as a relationship-building exercise with international investors ahead of Aramco’s planned initial public offering, aimed at raising money for the government as Saudi Arabia looks to cut its budget deficit and diversify its economy.
Saudi Aramco, the world’s biggest oil producer, will remain active in the debt markets after its debut $12 billion bond earlier this month, which was “only the beginning”, Saudi Energy Minister Khalid al-Falih said on Wednesday.
Falih, speaking at a financial conference in Riyadh, also said Aramco would access the equity markets earlier than expected after the company gained exposure among investors through the bond sale.
Many saw the debt deal as a relationship-building exercise with international investors ahead of Aramco’s planned initial public offering, aimed at raising money for the government as Saudi Arabia looks to cut its budget deficit and diversify its economy.
#Saudi Bourse Chief Sees Foreign Bets in Market Soaring - Bloomberg
Saudi Bourse Chief Sees Foreign Bets in Market Soaring - Bloomberg:
The chief of Saudi Arabia’s stock exchange predicts ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of its crown-jewel, Saudi Aramco.
“Since we opened up the market, we wanted to make sure we have enough companies, diversified sectors and industries,” Khalid Al Hussan, chief executive officer of the $573 billion Saudi stock exchange, said in an interview at a conference in Riyadh on Wednesday. “We are ready for the Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”
Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the country within emerging-market benchmarks by MSCI Inc. and FTSE Russell. International investors will double their estimated holdings to 10 percent of the market by 2020, rising to 15 percent by 2022, Al Hussan estimates. They were initially allowed to trade shares directly in Riyadh about four years ago.
The chief of Saudi Arabia’s stock exchange predicts ownership of equities by foreigners will triple by 2022, driven by flows from index trackers, as the country awaits the listing of its crown-jewel, Saudi Aramco.
“Since we opened up the market, we wanted to make sure we have enough companies, diversified sectors and industries,” Khalid Al Hussan, chief executive officer of the $573 billion Saudi stock exchange, said in an interview at a conference in Riyadh on Wednesday. “We are ready for the Aramco IPO, but as they change their plans, it gives more time for the exchange to develop.”
Foreigners are net buyers of about $4.3 billion in Saudi shares this year, as they anticipate the upgrade of the country within emerging-market benchmarks by MSCI Inc. and FTSE Russell. International investors will double their estimated holdings to 10 percent of the market by 2020, rising to 15 percent by 2022, Al Hussan estimates. They were initially allowed to trade shares directly in Riyadh about four years ago.
Undeterred by Khashoggi murder, global executives return to #SaudiArabia - Reuters
Undeterred by Khashoggi murder, global executives return to Saudi Arabia - Reuters:
Global finance chiefs who boycotted a Saudi investment summit last year following the murder of journalist Jamal Khashoggi returned to Riyadh this week as the Gulf kingdom gets business back on track.
Dozens of Western politicians and business executives pulled out of Saudi Arabia’s showcase summit in October amid global uproar over Khashoggi’s killing at the hands of Saudi agents inside the kingdom’s Istanbul consulate three weeks earlier.
A Saudi court has charged 11 suspects in a secretive trial and Western allies imposed sanctions on individuals. But Riyadh still faces criticism with some Western governments saying Crown Prince Mohammed bin Salman ordered the murder. Saudi authorities have denied any connection to the country’s de facto ruler.
Global finance chiefs who boycotted a Saudi investment summit last year following the murder of journalist Jamal Khashoggi returned to Riyadh this week as the Gulf kingdom gets business back on track.
Dozens of Western politicians and business executives pulled out of Saudi Arabia’s showcase summit in October amid global uproar over Khashoggi’s killing at the hands of Saudi agents inside the kingdom’s Istanbul consulate three weeks earlier.
A Saudi court has charged 11 suspects in a secretive trial and Western allies imposed sanctions on individuals. But Riyadh still faces criticism with some Western governments saying Crown Prince Mohammed bin Salman ordered the murder. Saudi authorities have denied any connection to the country’s de facto ruler.
MIDEAST STOCKS-Egypt, #Qatar gain on financials; cement makers lift Saudi - Reuters
MIDEAST STOCKS-Egypt, Qatar gain on financials; cement makers lift Saudi - Reuters:
Egypt's blue-chip index and the Qatar
stock market rose modestly on Wednesday, buoyed by their
financial shares, while the Saudi index edged up on the back of
its cement producers.
The Egyptian index rose 0.9 percent, after its
largest lender Commercial International Bank increased
0.6 percent and Egypt Kuwait Holding rebounded 3.7
percent after trading ex-dividend on Tuesday.
Eastern Company inched up 0.1 percent. On Monday,
HC Research raised its rating on the cigarette maker to
'neutral' from 'underweight'.
Egypt's blue-chip index and the Qatar
stock market rose modestly on Wednesday, buoyed by their
financial shares, while the Saudi index edged up on the back of
its cement producers.
The Egyptian index rose 0.9 percent, after its
largest lender Commercial International Bank increased
0.6 percent and Egypt Kuwait Holding rebounded 3.7
percent after trading ex-dividend on Tuesday.
Eastern Company inched up 0.1 percent. On Monday,
HC Research raised its rating on the cigarette maker to
'neutral' from 'underweight'.
BlackRock to Open #Saudi Office as Fink Scouts for Mideast Deals - Bloomberg
BlackRock to Open Saudi Office as Fink Scouts for Mideast Deals - Bloomberg:
BlackRock Inc. plans to open an office in Saudi Arabia as the world’s largest asset manager seeks investment opportunities in the kingdom and wider Middle East.
“The changes in Saudi Arabia are pretty amazing,” Chief Executive Officer Larry Fink said at a financial summit in Riyadh on Wednesday. “We are looking at many different opportunities as an investor and we are working with the region in terms of helping them diversify their portfolios outside the region.”
BlackRock Inc. plans to open an office in Saudi Arabia as the world’s largest asset manager seeks investment opportunities in the kingdom and wider Middle East.
“The changes in Saudi Arabia are pretty amazing,” Chief Executive Officer Larry Fink said at a financial summit in Riyadh on Wednesday. “We are looking at many different opportunities as an investor and we are working with the region in terms of helping them diversify their portfolios outside the region.”
Saudis Start Year With Budget Surplus for First Time Since 2014 - Bloomberg
Saudis Start Year With Budget Surplus for First Time Since 2014 - Bloomberg:
Saudi Arabia started the year with a quarterly budget surplus for the first time since the 2014 collapse in oil prices.
The biggest Arab economy posted a surplus of 27.8 billion riyals ($7.4 billion) in the first quarter, helped by an increase in non-oil revenue as well as income from crude exports, Finance Minister Mohammed Al-Jadaan told an audience of Saudi and international bankers gathered in Riyadh on Wednesday.
Saudi Arabia started the year with a quarterly budget surplus for the first time since the 2014 collapse in oil prices.
The biggest Arab economy posted a surplus of 27.8 billion riyals ($7.4 billion) in the first quarter, helped by an increase in non-oil revenue as well as income from crude exports, Finance Minister Mohammed Al-Jadaan told an audience of Saudi and international bankers gathered in Riyadh on Wednesday.
Head of #Dubai's gold trade body calls for more support from government, industry | ZAWYA MENA Edition
Head of Dubai's gold trade body calls for more support from government, industry | ZAWYA MENA Edition:
The head of the trade body for Dubai’s jewellery industry has called for more support for the industry both from the global gold industry and the government to help boost sales in a sector which has been hit by the imposition of VAT charges and a 5 percent customs duty within the past two years.
Tawhid Abdulla, chairman of the Dubai Gold and Jewellery Group and CEO of the Damas jewellery business, called for the World Gold Council to bring together international organisations in the gold industry to form a global body to promote gold, and asked for the Dubai government’s support to provide more prominence to the industry locally.
Speaking to Zawya on the sidelines of the Dubai Precious Metals Conference earlier this month, Abdulla said that he felt the World Gold Council had “kind of a duty of care, still, to look at our region”.
The head of the trade body for Dubai’s jewellery industry has called for more support for the industry both from the global gold industry and the government to help boost sales in a sector which has been hit by the imposition of VAT charges and a 5 percent customs duty within the past two years.
Tawhid Abdulla, chairman of the Dubai Gold and Jewellery Group and CEO of the Damas jewellery business, called for the World Gold Council to bring together international organisations in the gold industry to form a global body to promote gold, and asked for the Dubai government’s support to provide more prominence to the industry locally.
Speaking to Zawya on the sidelines of the Dubai Precious Metals Conference earlier this month, Abdulla said that he felt the World Gold Council had “kind of a duty of care, still, to look at our region”.
Family-owned YBA Kanoo gets itself IPO-ready | ZAWYA MENA Edition
Family-owned YBA Kanoo gets itself IPO-ready | ZAWYA MENA Edition:
Family-owned business group Yusuf Bin Ahmed Kanoo (YBA Kanoo) has announced the launch of a new group structure which it said would prepare the firm “for future growth and an IPO in 3 to 5 years”.
The company, which is one of the biggest family-owned businesses in the Gulf, with operations across Bahrain, Oman, Saudi Arabia and the United Arab Emirates, has created seven executive committees to oversee company business lines, each of which will be overseen by a family member, and appointed Jeffrey Singer - a former CEO of Dubai International Financial Center and Nasdaq Dubai - as group CEO.
The seven divisions overseen by family members are: Kanoo Travel, Kanoo Industry & Energy, Kanoo Shipping & Logistics, Kanoo Real Estate, Kanoo Capital and Kanoo Innovations.
Family-owned business group Yusuf Bin Ahmed Kanoo (YBA Kanoo) has announced the launch of a new group structure which it said would prepare the firm “for future growth and an IPO in 3 to 5 years”.
The company, which is one of the biggest family-owned businesses in the Gulf, with operations across Bahrain, Oman, Saudi Arabia and the United Arab Emirates, has created seven executive committees to oversee company business lines, each of which will be overseen by a family member, and appointed Jeffrey Singer - a former CEO of Dubai International Financial Center and Nasdaq Dubai - as group CEO.
The seven divisions overseen by family members are: Kanoo Travel, Kanoo Industry & Energy, Kanoo Shipping & Logistics, Kanoo Real Estate, Kanoo Capital and Kanoo Innovations.
#Saudi's Falih: no need for immediate action after end of Iran oil waivers - Reuters
Saudi's Falih: no need for immediate action after end of Iran oil waivers - Reuters:
Saudi Arabia’s energy minister said on Wednesday he saw no need to raise oil output immediately after the United States ends waivers granted to buyers of Iranian crude, but added that his country will respond to customers’ needs if asked for more oil.
Speaking in Riyadh, Khalid al-Falih said he was guided by oil market fundamentals, not prices, and global oil inventories continued to rise.
“Our intent is to remain within our voluntary (OPEC) production limit, but (we will).. be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn,” Falih told reporters.
Saudi Arabia’s energy minister said on Wednesday he saw no need to raise oil output immediately after the United States ends waivers granted to buyers of Iranian crude, but added that his country will respond to customers’ needs if asked for more oil.
Speaking in Riyadh, Khalid al-Falih said he was guided by oil market fundamentals, not prices, and global oil inventories continued to rise.
“Our intent is to remain within our voluntary (OPEC) production limit, but (we will).. be responsive to our customers, especially those who have been under waivers and those whose waivers have been withdrawn,” Falih told reporters.
Glut forces LNG producers to offer flexible deals from global portfolios - Reuters
Glut forces LNG producers to offer flexible deals from global portfolios - Reuters:
The world’s biggest liquefied natural gas (LNG) producers including Shell, Total and Petronas are increasingly selling from global supply pools instead of dedicated projects as buyers leverage a fuel surplus to force ever more flexible deals.
This marks an accelerated turning from traditional long-term contracts that lock customers into taking regular volumes from specific projects under oil-linked pricing formulas.
Global oversupply that has pulled spot LNG prices down by more than 50 percent over the past half-year has producers succumbing to consumer demands for fuel on shorter notice and without sourcing or destination restrictions.
The world’s biggest liquefied natural gas (LNG) producers including Shell, Total and Petronas are increasingly selling from global supply pools instead of dedicated projects as buyers leverage a fuel surplus to force ever more flexible deals.
This marks an accelerated turning from traditional long-term contracts that lock customers into taking regular volumes from specific projects under oil-linked pricing formulas.
Global oversupply that has pulled spot LNG prices down by more than 50 percent over the past half-year has producers succumbing to consumer demands for fuel on shorter notice and without sourcing or destination restrictions.
Exclusive: Gold worth billions smuggled out of Africa - Reuters
Exclusive: Gold worth billions smuggled out of Africa - Reuters:
Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Billions of dollars’ worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.
Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.
Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.
Oil falls from 6-month high on signs market not as tight as feared - Reuters
Oil falls from 6-month high on signs market not as tight as feared - Reuters:
Oil prices fell on Wednesday after a report allayed concerns about tightening supply, ending a rally that took prices to their highest since early November on concerns that OPEC output cuts and sanctions would take too much oil out of the market.
The International Energy Agency (IEA), a watchdog for oil consuming countries, said in a statement on Tuesday that markets are “adequately supplied” and that “global spare production capacity remains at comfortable levels.”
Also weighing on prices, U.S. crude stocks rose by 6.9 million barrels last week, more than expected, data from industry group the American Petroleum Institute showed on Tuesday. EIA stocks data is due later on Wednesday.
Oil prices fell on Wednesday after a report allayed concerns about tightening supply, ending a rally that took prices to their highest since early November on concerns that OPEC output cuts and sanctions would take too much oil out of the market.
The International Energy Agency (IEA), a watchdog for oil consuming countries, said in a statement on Tuesday that markets are “adequately supplied” and that “global spare production capacity remains at comfortable levels.”
Also weighing on prices, U.S. crude stocks rose by 6.9 million barrels last week, more than expected, data from industry group the American Petroleum Institute showed on Tuesday. EIA stocks data is due later on Wednesday.
Growth outlook lowered for Gulf Arab economies this year - Reuters
Growth outlook lowered for Gulf Arab economies this year - Reuters:
Expectations for growth in the Arab Gulf economies this year have been lowered, according to a quarterly Reuters poll of economists released on Wednesday, as oil output cuts, austerity measures and sluggish non-oil growth continue to weigh on them.
Gross domestic product in Saudi Arabia, the largest Arab economy and the world’s top oil exporter, will grow 1.8 percent in 2019 and 2.2 percent in 2020, the poll of 23 economists projected. Three months ago, the forecasts were for growth of 2.1 percent in 2019 and 2.2 percent in 2020.
The Saudi economy grew 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a 0.74 percent contraction in 2017 when the economy was hit by weak oil prices and austerity measures.
Expectations for growth in the Arab Gulf economies this year have been lowered, according to a quarterly Reuters poll of economists released on Wednesday, as oil output cuts, austerity measures and sluggish non-oil growth continue to weigh on them.
Gross domestic product in Saudi Arabia, the largest Arab economy and the world’s top oil exporter, will grow 1.8 percent in 2019 and 2.2 percent in 2020, the poll of 23 economists projected. Three months ago, the forecasts were for growth of 2.1 percent in 2019 and 2.2 percent in 2020.
The Saudi economy grew 2.21 percent in 2018, buoyed by strong oil sector growth and recovering from a 0.74 percent contraction in 2017 when the economy was hit by weak oil prices and austerity measures.
Credit Suisse will receive #Saudi banking license, finance minister says - Reuters
Credit Suisse will receive Saudi banking license, finance minister says - Reuters:
A banking license to operate in Saudi Arabia will be issued to Credit Suisse, Mohammed al-Jadaan, the kingdom’s finance minister said on Wednesday.
The Swiss bank has been seeking to obtain a full banking license in the Middle East’s largest economy and in July last year the bank’s Chief Executive, Tidjane Thiam, said he traveled personally to the country to file the application.
However, in October Thiam - who had been scheduled to go to the Future Investment Initiative conference in Riyadh - decided not to attend the event, joining several other top executives who bowed out amidst uproar over the disappearance of Saudi journalist Jamal Khashoggi.
A banking license to operate in Saudi Arabia will be issued to Credit Suisse, Mohammed al-Jadaan, the kingdom’s finance minister said on Wednesday.
The Swiss bank has been seeking to obtain a full banking license in the Middle East’s largest economy and in July last year the bank’s Chief Executive, Tidjane Thiam, said he traveled personally to the country to file the application.
However, in October Thiam - who had been scheduled to go to the Future Investment Initiative conference in Riyadh - decided not to attend the event, joining several other top executives who bowed out amidst uproar over the disappearance of Saudi journalist Jamal Khashoggi.
MIDEAST STOCKS-Q1 results boost #Saudi, most major Gulf markets mixed - Reuters
MIDEAST STOCKS-Q1 results boost Saudi, most major Gulf markets mixed - Reuters:
Saudi Arabia’s stock market inched higher on Wednesday bolstered by first-quarter results, while major Gulf markets were mixed in subdued trading.
Saudi’s index was up 0.1 percent, with Al Rajhi Bank adding 0.5 percent and National Commercial Bank rose 0.8 percent. Both companies reported an increase in their first-quarter net profit.
Saudi banks’ performance in 2019 is xpected to be boosted by a surge in liquidity and an anticipated recovery in lending against a backdrop of higher oil prices.
Saudi Arabia’s stock market inched higher on Wednesday bolstered by first-quarter results, while major Gulf markets were mixed in subdued trading.
Saudi’s index was up 0.1 percent, with Al Rajhi Bank adding 0.5 percent and National Commercial Bank rose 0.8 percent. Both companies reported an increase in their first-quarter net profit.
Saudi banks’ performance in 2019 is xpected to be boosted by a surge in liquidity and an anticipated recovery in lending against a backdrop of higher oil prices.
Tuesday, 23 April 2019
#UAE gross bank assets up to Dh2.895 trillion
UAE gross bank assets up to Dh2.895 trillion:
The UAE gross bank assets, including bankers’ acceptances, stood at Dh2.895 trillion, in March down from Dh2.909.5 trillion in the preceding month, figures by the UAE Central Bank have showed.
Gross credit in the banking system, rallied 2 per cent from Dh1,671.9 trillion by the end of February 2019 to Dh1,675.1 trillion in March, with total bank deposits going down by Dh20.1 billion driven by a dip in residents’ and non-residents’ deposits, by Dh17.4 billion and Dh2.7 billion respectively.
In the meantime, CBUAE announced that the Money Supply aggregate M1 increased by 2.2 per cent, from Dh501.1 billion by the end of February 2019 to Dh512 billion by March same year.
The UAE gross bank assets, including bankers’ acceptances, stood at Dh2.895 trillion, in March down from Dh2.909.5 trillion in the preceding month, figures by the UAE Central Bank have showed.
Gross credit in the banking system, rallied 2 per cent from Dh1,671.9 trillion by the end of February 2019 to Dh1,675.1 trillion in March, with total bank deposits going down by Dh20.1 billion driven by a dip in residents’ and non-residents’ deposits, by Dh17.4 billion and Dh2.7 billion respectively.
In the meantime, CBUAE announced that the Money Supply aggregate M1 increased by 2.2 per cent, from Dh501.1 billion by the end of February 2019 to Dh512 billion by March same year.
Column: Oil traders to Saudi Arabia: show us the barrels - Reuters
Column: Oil traders to Saudi Arabia: show us the barrels - Reuters:
“The United States, Saudi Arabia and the United Arab Emirates ... are committed to ensuring that global oil markets remain adequately supplied,” the White House said in a press statement issued on Monday.
“Oil markets are well-supplied and oil inventory levels are seasonally strong,” the U.S. State Department wrote in an accompanying briefing note explaining the rationale for eliminating sanctions waivers for buyers of Iranian oil.
“We have commitments from oil-producing countries, including the kingdom of Saudi Arabia and the United Arab Emirates, to increase oil production to offset reductions in Iranian oil exports,” the department announced.
“The United States, Saudi Arabia and the United Arab Emirates ... are committed to ensuring that global oil markets remain adequately supplied,” the White House said in a press statement issued on Monday.
“Oil markets are well-supplied and oil inventory levels are seasonally strong,” the U.S. State Department wrote in an accompanying briefing note explaining the rationale for eliminating sanctions waivers for buyers of Iranian oil.
“We have commitments from oil-producing countries, including the kingdom of Saudi Arabia and the United Arab Emirates, to increase oil production to offset reductions in Iranian oil exports,” the department announced.
#Saudi Real Estate Refinance Co plans up to $1.07bln sukuk sale this year -CEO | ZAWYA MENA Edition
Saudi Real Estate Refinance Co plans up to $1.07bln sukuk sale this year -CEO | ZAWYA MENA Edition:
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, aims to issue up to 4 billion riyals ($1.07 billion) of long-term sukuk this year, its chief executive said on Tuesday.
The plan by SRC, a subsidiary of Saudi Arabia's sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom's secondary mortgage market.
SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year, Fabrice Susini told Reuters in an interview.
Saudi Real Estate Refinance Co (SRC), modelled on U.S. mortgage finance firm Fannie Mae, aims to issue up to 4 billion riyals ($1.07 billion) of long-term sukuk this year, its chief executive said on Tuesday.
The plan by SRC, a subsidiary of Saudi Arabia's sovereign Public Investment Fund, comes as it prepares to purchase more home loan portfolios from mortgage financing companies and banks to boost the kingdom's secondary mortgage market.
SRC, formed in 2017, is also keen to tap foreign institutional investors for its debt sale this year, Fabrice Susini told Reuters in an interview.
U.S. making a mistake politicizing oil: #Iran oil minister - Reuters
U.S. making a mistake politicizing oil: Iran oil minister - Reuters:
The United States has made a bad mistake by politicizing oil and using it as a weapon, Iran’s Oil Minister Bijan Zanganeh said in a parliamentary session on Tuesday, the Islamic Republic News Agency (IRNA) reported.
Oil prices on Tuesday hit their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.
Zanganeh added that the United States will not be able to reduce Iran’s oil exports to zero.
The United States has made a bad mistake by politicizing oil and using it as a weapon, Iran’s Oil Minister Bijan Zanganeh said in a parliamentary session on Tuesday, the Islamic Republic News Agency (IRNA) reported.
Oil prices on Tuesday hit their highest level since November after Washington announced all waivers on imports of sanctions-hit Iranian oil would end next week, pressuring importers to stop buying from Tehran and further tightening global supply.
Zanganeh added that the United States will not be able to reduce Iran’s oil exports to zero.
Oil surges amid OPEC caution to offset Iran sanctions - Reuters
Oil surges amid OPEC caution to offset Iran sanctions - Reuters:
Oil prices hit their highest in about six months on Tuesday as sources said Gulf OPEC members were ready to raise output only if there was demand before offsetting any shortfall following a U.S. decision to end waivers for buyers of Iranian crude.
Output in Saudi Arabia, the world’s top oil exporter and de facto leader of the Organization of the Petroleum Exporting Countries, will rise in May, but that it is not related to Iran sanctions, the sources said.
The sources said Saudi production in May will also still within its production target under a OPEC+ supply-cutting deal, which has led global supply cuts since the start of the year aimed at propping up crude prices. The group is set to meet in June to discuss output policy.
Oil prices hit their highest in about six months on Tuesday as sources said Gulf OPEC members were ready to raise output only if there was demand before offsetting any shortfall following a U.S. decision to end waivers for buyers of Iranian crude.
Output in Saudi Arabia, the world’s top oil exporter and de facto leader of the Organization of the Petroleum Exporting Countries, will rise in May, but that it is not related to Iran sanctions, the sources said.
The sources said Saudi production in May will also still within its production target under a OPEC+ supply-cutting deal, which has led global supply cuts since the start of the year aimed at propping up crude prices. The group is set to meet in June to discuss output policy.
UPDATE 2- #Saudi's Al Rajhi Bank Q1 net profit rises 21 pct on higher fees - Reuters
UPDATE 2-Saudi's Al Rajhi Bank Q1 net profit rises 21 pct on higher fees - Reuters:
Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets, reported double-digit growth in first-quarter net profit on Tuesday, helped by higher special commission income and fees.
Saudi Arabia’s biggest Islamic lender said net profit rose 21 percent in the three months ended March 31 to 2.89 billion riyals ($771 million). It made net profit of 2.38 billion riyals in the same period a year earlier.
The bank aims to boost its mortgage lending as more affordable housing comes on the market, Chief Executive Steve Bertamini told Reuters this month.
Al Rajhi Bank, Saudi Arabia’s second-largest lender by assets, reported double-digit growth in first-quarter net profit on Tuesday, helped by higher special commission income and fees.
Saudi Arabia’s biggest Islamic lender said net profit rose 21 percent in the three months ended March 31 to 2.89 billion riyals ($771 million). It made net profit of 2.38 billion riyals in the same period a year earlier.
The bank aims to boost its mortgage lending as more affordable housing comes on the market, Chief Executive Steve Bertamini told Reuters this month.
MIDEAST STOCKS-Earnings aid #Saudi, real estate hurts Egypt - Reuters
MIDEAST STOCKS-Earnings aid Saudi, real estate hurts Egypt - Reuters:
Saudi Arabia's stock market rose on
Tuesday, lifted by a slew of corporate announcements, while
Egypt's blue-chip index was pulled down by its real estate
shares.
Saudi Arabia's index added 0.4 percent, with Riyad
Bank climbing 3.6 percent to reach its highest since
May 2006. The lender posted a 44.7 percent increase in first
quarter net profit.
Saudi British Bank rose 1.3 percent after the
Capital Market Authority approved a request to increase its
capital to 20.55 billion riyals ($5.48 billion) from 15 billion
riyals.
Saudi Arabia's stock market rose on
Tuesday, lifted by a slew of corporate announcements, while
Egypt's blue-chip index was pulled down by its real estate
shares.
Saudi Arabia's index added 0.4 percent, with Riyad
Bank climbing 3.6 percent to reach its highest since
May 2006. The lender posted a 44.7 percent increase in first
quarter net profit.
Saudi British Bank rose 1.3 percent after the
Capital Market Authority approved a request to increase its
capital to 20.55 billion riyals ($5.48 billion) from 15 billion
riyals.
These Six Markets Are the Biggest Winners and Losers From Oil’s Rally By Bloomberg
These Six Markets Are the Biggest Winners and Losers From Oil’s Rally By Bloomberg:
Emerging markets got a lift from the Federal Reserve, Donald Trump and Xi Jinping to start the year. Oil may be the next saving grace.
Investors say a potential uptick in crude prices might be the latest tailwind for the developing world after the White House scrapped waivers tied to Iranian oil sanctions. Brent crude gained as much as 3.5 percent on Monday and was close to reaching $75 a barrel on Tuesday for the first time since October.
While there’s no guarantee the gains will last, emerging-market assets have historically benefited from climbing oil prices. MSCI’s EM currency index produced double-digit returns during the three biggest oil rallies this century.
Emerging markets got a lift from the Federal Reserve, Donald Trump and Xi Jinping to start the year. Oil may be the next saving grace.
Investors say a potential uptick in crude prices might be the latest tailwind for the developing world after the White House scrapped waivers tied to Iranian oil sanctions. Brent crude gained as much as 3.5 percent on Monday and was close to reaching $75 a barrel on Tuesday for the first time since October.
While there’s no guarantee the gains will last, emerging-market assets have historically benefited from climbing oil prices. MSCI’s EM currency index produced double-digit returns during the three biggest oil rallies this century.
UPDATE 1- #Oman Aviation seeks up to $6 bln for airline, airports -CEO - Reuters
UPDATE 1-Oman Aviation seeks up to $6 bln for airline, airports -CEO - Reuters:
Oman Aviation Group is seeking to raise up to $6 billion to finance the expansion of state-owned Oman Air and Oman Airports up until 2030, its chief executive said on Tuesday.
Request for proposals have been issued to local and international banks and the first tranche is expected to be raised by mid-2020, Mustafa al-Hinai told Reuters in a phone interview. The planned financing would be spread over several tranches.
Government entity Oman Aviation Group was formed in February 2018 and includes Oman Air, Oman Airports and Oman Aviation Services.
Oman Aviation Group is seeking to raise up to $6 billion to finance the expansion of state-owned Oman Air and Oman Airports up until 2030, its chief executive said on Tuesday.
Request for proposals have been issued to local and international banks and the first tranche is expected to be raised by mid-2020, Mustafa al-Hinai told Reuters in a phone interview. The planned financing would be spread over several tranches.
Government entity Oman Aviation Group was formed in February 2018 and includes Oman Air, Oman Airports and Oman Aviation Services.
#Dubai Islamic Bank board backs examining possible deal for Noor Bank - Reuters
Dubai Islamic Bank board backs examining possible deal for Noor Bank - Reuters:
Dubai Islamic Bank (DIB) on Tuesday said it had received approval from its board to explore the possible acquisition of unlisted Noor Bank.
The United Arab Emirates’ largest sharia-compliant lender also received approval to appoint financial advisers to conduct due diligence and valuation of Noor Bank, it said in a statement.
Dubai’s sovereign investment group, Investment Corp of Dubai (ICD) is a common shareholder in the two banks. ICD owns 28.37 percent of DIB and more than 22.7 percent of Noor Bank.
Dubai Islamic Bank (DIB) on Tuesday said it had received approval from its board to explore the possible acquisition of unlisted Noor Bank.
The United Arab Emirates’ largest sharia-compliant lender also received approval to appoint financial advisers to conduct due diligence and valuation of Noor Bank, it said in a statement.
Dubai’s sovereign investment group, Investment Corp of Dubai (ICD) is a common shareholder in the two banks. ICD owns 28.37 percent of DIB and more than 22.7 percent of Noor Bank.
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