Saudi Aramco Said to Approach Asian State Oil Producers on IPO - Bloomberg:
Saudi Aramco has approached Asian state oil producers including Malaysia’s Petroliam Nasional Bhd. and China’s Sinopec Group about potential cornerstone investments in its initial public offering, people with knowledge of the matter said.
The Gulf energy giant and its advisers have recently been holding talks with potential investors including China’s sovereign wealth fund and China National Petroleum Corp., according to the people, who asked not to be identified because the information is private. They have also reached out to state-owned entities from the United Arab Emirates and Kuwait, including Abu Dhabi sovereign fund Mubadala Investment Co., as well as Canadian pension funds, the people said.
Deliberations are at a preliminary stage, and Aramco hasn’t yet received any firm commitments, the people said. Aramco’s advisers are arranging meetings with some potential cornerstone investors this week and next week, according to the people. The funds could decide against buying into the offering, they said.
Monday, 30 September 2019
#Saudi Non-Oil Growth Fastest Since 2015 as Private Sector Heals - Bloomberg
Saudi Non-Oil Growth Fastest Since 2015 as Private Sector Heals - Bloomberg:
Saudi Arabia’s non-oil economic growth accelerated in the second quarter, a sign that the economy is shrugging off the effects of austerity measures that followed the collapse of crude prices five years ago.
Non-oil gross domestic product expanded almost 3%, the fastest pace since 2015. The kingdom’s oil GDP shrank due to production cuts as Saudi Arabia sought to stabilize crude prices. That caused overall economic growth to slow to 0.5%, according to official data released Monday.
The absence of fiscal measures to cut spending and bolster government revenue, as well as the “strengthening of investment momentum” are the key reasons for the improvement of business sentiment, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Saudi Arabia’s non-oil economic growth accelerated in the second quarter, a sign that the economy is shrugging off the effects of austerity measures that followed the collapse of crude prices five years ago.
Non-oil gross domestic product expanded almost 3%, the fastest pace since 2015. The kingdom’s oil GDP shrank due to production cuts as Saudi Arabia sought to stabilize crude prices. That caused overall economic growth to slow to 0.5%, according to official data released Monday.
The absence of fiscal measures to cut spending and bolster government revenue, as well as the “strengthening of investment momentum” are the key reasons for the improvement of business sentiment, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Boeing Max Buyer Flydubai Says Grounding Has Set It Back 5 Years - Bloomberg
Boeing Max Buyer Flydubai Says Grounding Has Set It Back 5 Years - Bloomberg:
Flydubai, the second-biggest customer for Boeing Co.’s grounded 737 Max jetliner, warned that its operations will shrink to 2014 levels if the model doesn’t return to service soon.
With the Max idled since March after two fatal crashes and leased planes due to be returned to their owners as contracts expire, Flydubai has gone from rapid expansion to a severely reduced network and mounting losses, Chief Executive Officer Ghaith Al Ghaith said Monday.
“Without any deliveries of new aircraft and no visibility of the timelines, we will see our operating fleet reduce in size to what it was in 2014,” Al Ghaith said in a statement after the sister carrier to long-haul giant Emirates reported a loss of 197 million dirhams ($54million) first-half loss.
Flydubai, the second-biggest customer for Boeing Co.’s grounded 737 Max jetliner, warned that its operations will shrink to 2014 levels if the model doesn’t return to service soon.
With the Max idled since March after two fatal crashes and leased planes due to be returned to their owners as contracts expire, Flydubai has gone from rapid expansion to a severely reduced network and mounting losses, Chief Executive Officer Ghaith Al Ghaith said Monday.
“Without any deliveries of new aircraft and no visibility of the timelines, we will see our operating fleet reduce in size to what it was in 2014,” Al Ghaith said in a statement after the sister carrier to long-haul giant Emirates reported a loss of 197 million dirhams ($54million) first-half loss.
#Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg
Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg:
Saudi Aramco will increase dividend payments and pay less tax as the government tries to secure the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman in the state oil company’s initial public offering.
But should Aramco meet the prince’s target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc.
The state-run company, which produces about 10% of the world’s oil, plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November. The IPO is the centerpiece the crown prince’s plans to revamp the Saudi economy and will release billions in capital for the kingdom’s sovereign wealth fund.
Saudi Aramco will increase dividend payments and pay less tax as the government tries to secure the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman in the state oil company’s initial public offering.
But should Aramco meet the prince’s target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc.
The state-run company, which produces about 10% of the world’s oil, plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November. The IPO is the centerpiece the crown prince’s plans to revamp the Saudi economy and will release billions in capital for the kingdom’s sovereign wealth fund.
Fitch downgrades #SaudiArabia over geopolitical tensions | ZAWYA MENA Edition
Fitch downgrades Saudi Arabia over geopolitical tensions | ZAWYA MENA Edition:
Fitch Ratings has downgraded Saudi Arabia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'A' from 'A+' with a stable outlook.
The downgrade reflects rising geopolitical and military tensions in the Gulf region, vulnerability of Saudi Arabia's economic infrastructure and continued deterioration in the kingdom’s fiscal and external balance sheets, Fitch said.
Earlier in September, attacks on Aramco facilities in Abqaiq and Khurais cut Saudi Aramco’s company's crude oil supply by around 5.7 million barrels per day or about 50 percent of its output.
Fitch Ratings has downgraded Saudi Arabia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'A' from 'A+' with a stable outlook.
The downgrade reflects rising geopolitical and military tensions in the Gulf region, vulnerability of Saudi Arabia's economic infrastructure and continued deterioration in the kingdom’s fiscal and external balance sheets, Fitch said.
Earlier in September, attacks on Aramco facilities in Abqaiq and Khurais cut Saudi Aramco’s company's crude oil supply by around 5.7 million barrels per day or about 50 percent of its output.
OPEC oil output sinks to lowest since 2011 after #Saudi attacks: Reuters survey - Reuters
OPEC oil output sinks to lowest since 2011 after Saudi attacks: Reuters survey - Reuters:
OPEC oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and U.S. sanctions on Iran and Venezuela, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.9 million barrels per day (bpd) this month, the survey showed, down 750,000 bpd from August’s revised figure and the lowest monthly total since 2011.
The Sept. 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20% to $72 a barrel on Sept. 16. The price has since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
OPEC oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and U.S. sanctions on Iran and Venezuela, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.9 million barrels per day (bpd) this month, the survey showed, down 750,000 bpd from August’s revised figure and the lowest monthly total since 2011.
The Sept. 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20% to $72 a barrel on Sept. 16. The price has since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
Oil falls, Brent posts biggest quarterly drop this year on demand fears - Reuters
Oil falls, Brent posts biggest quarterly drop this year on demand fears - Reuters:
Oil prices fell on Monday on fading concerns of supply shortfalls and conflicts in the Middle East after the Sept. 14 attack on Saudi Arabia, but global benchmark Brent posted its biggest quarterly loss this year on demand fears due to the escalating U.S.-China trade war.
Brent crude LCOc1 futures settled at $60.78, down $1.13, or 1.8%. U.S. West Texas Intermediate (WTI) crude CLc1 futures, the U.S. benchmark, fell $1.84, or 3.3%, to $54.07.
Brent gained 0.6% while WTI fell 1.9% in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored.
Oil prices fell on Monday on fading concerns of supply shortfalls and conflicts in the Middle East after the Sept. 14 attack on Saudi Arabia, but global benchmark Brent posted its biggest quarterly loss this year on demand fears due to the escalating U.S.-China trade war.
Brent crude LCOc1 futures settled at $60.78, down $1.13, or 1.8%. U.S. West Texas Intermediate (WTI) crude CLc1 futures, the U.S. benchmark, fell $1.84, or 3.3%, to $54.07.
Brent gained 0.6% while WTI fell 1.9% in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored.
MIDEAST STOCKS-Banks dent Egyptian index as financials lift #Saudi - Reuters
MIDEAST STOCKS-Banks dent Egyptian index as financials lift Saudi - Reuters:
Egypt's blue-chip index ended its
three-day winning streak as declines in banking shares sent it
into negative territory on Monday, while financial stocks
bolstered the Saudi index.
The Egyptian index lost 0.4%, with the country's
largest lender Commercial International Bank (COMI)
falling 1% and Eastern Company dropping 2.6%.
Cairo Investment and Real Estate Development
outperformed the market, jumping 6.3% after its board approved a
25 million euro ($27.27 million) loan agreement to finance the
first phase of construction of a university in Asyut.
Egypt's blue-chip index ended its
three-day winning streak as declines in banking shares sent it
into negative territory on Monday, while financial stocks
bolstered the Saudi index.
The Egyptian index lost 0.4%, with the country's
largest lender Commercial International Bank (COMI)
falling 1% and Eastern Company dropping 2.6%.
Cairo Investment and Real Estate Development
outperformed the market, jumping 6.3% after its board approved a
25 million euro ($27.27 million) loan agreement to finance the
first phase of construction of a university in Asyut.
Exclusive: #Dubai Aerospace drops plans for big aircraft order, targets M&A deal - Reuters
Exclusive: Dubai Aerospace drops plans for big aircraft order, targets M&A deal - Reuters:
Dubai Aerospace Enterprise favors expanding its fleet via a takeover of a rival after the group was unable to agree on a major order from Airbus (AIR.PA) and Boeing (BA.N), its chief executive said.
DAE, which joined the top tier of aircraft lessors with the 2017 acquisition of Dublin-based AWAS, was interested in a near-record purchase of 400 jets from Airbus and Boeing.
“It is hard to see how DAE is able to find a way to accept the price and terms and conditions the OEMs (original equipment manufacturer) are offering,” CEO Firoz Tarapore told Reuters.
A pricing disagreement had been an issue when Tarapore told Reuters in May 2018 DAE was interested in the order. This has led to DAE pursuing other options to increase its portfolio.
Dubai Aerospace Enterprise favors expanding its fleet via a takeover of a rival after the group was unable to agree on a major order from Airbus (AIR.PA) and Boeing (BA.N), its chief executive said.
DAE, which joined the top tier of aircraft lessors with the 2017 acquisition of Dublin-based AWAS, was interested in a near-record purchase of 400 jets from Airbus and Boeing.
“It is hard to see how DAE is able to find a way to accept the price and terms and conditions the OEMs (original equipment manufacturer) are offering,” CEO Firoz Tarapore told Reuters.
A pricing disagreement had been an issue when Tarapore told Reuters in May 2018 DAE was interested in the order. This has led to DAE pursuing other options to increase its portfolio.
Riyadh replaces Khalid al-Falih as chair of mining company | Financial Times
Riyadh replaces Khalid al-Falih as chair of mining company | Financial Times:
Saudi Arabia has appointed Yasir al-Rumayyan, head of the country’s sovereign wealth fund, as chairman of Ma’aden, the state mining company, replacing Khalid al-Falih, the former energy minister.
The move is another sign of Mr Falih’s waning influence and the rise of Mr Rumayyan, a close ally of Crown Prince Mohammed bin Salman and governor of the Public Investment Fund.
Mr Falih was one of the kingdom’s highest-profile technocrats. But his fall from grace began last month when he was stripped of his role overseeing industry and mining policy. He was then replaced by Mr Rumayyan as chair of Saudi Aramco, the state oil company, which is being prepared for an initial public offering.
Saudi Arabia has appointed Yasir al-Rumayyan, head of the country’s sovereign wealth fund, as chairman of Ma’aden, the state mining company, replacing Khalid al-Falih, the former energy minister.
The move is another sign of Mr Falih’s waning influence and the rise of Mr Rumayyan, a close ally of Crown Prince Mohammed bin Salman and governor of the Public Investment Fund.
Mr Falih was one of the kingdom’s highest-profile technocrats. But his fall from grace began last month when he was stripped of his role overseeing industry and mining policy. He was then replaced by Mr Rumayyan as chair of Saudi Aramco, the state oil company, which is being prepared for an initial public offering.
Majed Shawky, chairman of Beltone Financial Holding, on Strategy - Bloomberg
Majed Shawky, chairman of Beltone Financial Holding, on Strategy - Bloomberg:
Majed Shawky, chairman of Beltone Financial Holding SAE, the Egyptian investment bank owned by billionaire Naguib Sawiris, talks about the company's growth strategy, and the nation's economy. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Majed Shawky, chairman of Beltone Financial Holding SAE, the Egyptian investment bank owned by billionaire Naguib Sawiris, talks about the company's growth strategy, and the nation's economy. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Alberto Bigolin, head of fixed income for MENA at Tellimer, #SaudiArabi's Possible Sukuk Sale - Bloomberg
Alberto Bigolin, head of fixed income for MENA at Tellimer, Saudi Arabi's Possible Sukuk Sale - Bloomberg:
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter. Alberto Bigolin, head of fixed income for MENA at Tellimer, shares his views, and also discusses the GCC bond market with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter. Alberto Bigolin, head of fixed income for MENA at Tellimer, shares his views, and also discusses the GCC bond market with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
SAMA delivers positive assessment of the #SaudiArabia’s economy | ZAWYA MENA Edition
SAMA delivers positive assessment of the Saudi Arabia’s economy | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) has published its 55th annual report which reviews the economic and financial developments in the Kingdom during 2018. In its report, SAMA assessed the economic and the banking performance of the Kingdom as fair for last year.
The report said that under balanced economic policies the Saudi economy showed positive developments in most sectors during the year. This robust economic performance benefitted from the economic and financial reform package that was introduced by the government when the Kingdom’s Vision 2030 was announced in April 2016.
The reforms helped the different sectors of the economy to achieve positive developments in 2018, as evidenced by the growth registered in the gross domestic product (GDP) of 2.21 percent to SR2,625.5 billion ($700 billion) in 2018, compared to a decline of 0.74 percent in 2017.
The Saudi Arabian Monetary Authority (SAMA) has published its 55th annual report which reviews the economic and financial developments in the Kingdom during 2018. In its report, SAMA assessed the economic and the banking performance of the Kingdom as fair for last year.
The report said that under balanced economic policies the Saudi economy showed positive developments in most sectors during the year. This robust economic performance benefitted from the economic and financial reform package that was introduced by the government when the Kingdom’s Vision 2030 was announced in April 2016.
The reforms helped the different sectors of the economy to achieve positive developments in 2018, as evidenced by the growth registered in the gross domestic product (GDP) of 2.21 percent to SR2,625.5 billion ($700 billion) in 2018, compared to a decline of 0.74 percent in 2017.
Middle East green bond demand to grow; investors plan shifts in capital allocation | ZAWYA MENA Edition
Middle East green bond demand to grow; investors plan shifts in capital allocation | ZAWYA MENA Edition:
Environmental and social issues are 'very important' for bond issuers and investors worldwide.
Despite the heavy reliance of the Middle East on oil and gas, the region is the strongest to recognise impacts on businesses due to climate change, bringing forth big shifts in capital allocation.
Two thirds of issuers (85 percent in the Middle East) expect to reallocate capital noticeably in the next five years, HSBC said in its Sustainable Financing and Investing Survey 2019 report.
Environmental and social issues are 'very important' for bond issuers and investors worldwide.
Despite the heavy reliance of the Middle East on oil and gas, the region is the strongest to recognise impacts on businesses due to climate change, bringing forth big shifts in capital allocation.
Two thirds of issuers (85 percent in the Middle East) expect to reallocate capital noticeably in the next five years, HSBC said in its Sustainable Financing and Investing Survey 2019 report.
Oil prices fall as China's economic outlook still weak - Reuters
Oil prices fall as China's economic outlook still weak - Reuters:
Oil prices slipped on Monday as China’s economic outlook remained weak even as manufacturing data improved as an ongoing trade war with the United States weighs on demand growth at the world’s largest crude importer.
Brent crude LCOc1 futures fell 20 cents to $61.71 a barrel by 0632 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down 3 cents to $55.88 a barrel.
The official Purchasing Managers’ Index (PMI) rose to 49.8 in September, slightly better than expected and advancing from 49.5 in August. But it remained below the 50-point mark that separates expansion from contraction on a monthly basis, data from the National Bureau of Statistics (NBS) showed.
Oil prices slipped on Monday as China’s economic outlook remained weak even as manufacturing data improved as an ongoing trade war with the United States weighs on demand growth at the world’s largest crude importer.
Brent crude LCOc1 futures fell 20 cents to $61.71 a barrel by 0632 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down 3 cents to $55.88 a barrel.
The official Purchasing Managers’ Index (PMI) rose to 49.8 in September, slightly better than expected and advancing from 49.5 in August. But it remained below the 50-point mark that separates expansion from contraction on a monthly basis, data from the National Bureau of Statistics (NBS) showed.
#Saudi crown prince warns of escalation with #Iran, prefers political solution - Reuters
Saudi crown prince warns of escalation with Iran, prefers political solution - Reuters:
Saudi Arabia’s crown prince warned in an interview broadcast on Sunday that oil prices could spike to “unimaginably high numbers” if the world doesn’t come together to deter Iran, but said he preferred a political solution to a military one.
Speaking to the CBS program “60 Minutes,” Mohammed bin Salman also denied ordering the killing of journalist Jamal Khashoggi by Saudi operatives last year, but said he ultimately bears “full responsibility” as the kingdom’s de facto leader.
While Khashoggi’s death sparked a global uproar and tarnished the crown prince’s reputation, the Trump administration’s tense standoff with Saudi arch-foe Iran has more recently dominated U.S. policy toward Riyadh, especially after Sept. 14 attacks on the heart of the Saudi oil industry.
Saudi Arabia’s crown prince warned in an interview broadcast on Sunday that oil prices could spike to “unimaginably high numbers” if the world doesn’t come together to deter Iran, but said he preferred a political solution to a military one.
Speaking to the CBS program “60 Minutes,” Mohammed bin Salman also denied ordering the killing of journalist Jamal Khashoggi by Saudi operatives last year, but said he ultimately bears “full responsibility” as the kingdom’s de facto leader.
While Khashoggi’s death sparked a global uproar and tarnished the crown prince’s reputation, the Trump administration’s tense standoff with Saudi arch-foe Iran has more recently dominated U.S. policy toward Riyadh, especially after Sept. 14 attacks on the heart of the Saudi oil industry.
MIDEAST STOCKS-Banks buoy #Saudi market, property shares aid #Dubai - Reuters
MIDEAST STOCKS-Banks buoy Saudi market, property shares aid Dubai - Reuters:
Saudi Arabia’s stock market rose in early trade on Monday, buoyed by financial shares, while the Dubai index was driven up by gains in property shares.
The Saudi Arabian index was up 0.5% as Al Rajhi Bank gained 0.6% and Jabal Omar Development advanced 2.8%.
Walaa Cooperative Insurance jumped 4.9% to be the top gainer in the index. On Sunday, the insurer entered into a binding agreement to acquire all shares in Metlife AIG ANB in a share-swap deal.
Saudi Arabia’s stock market rose in early trade on Monday, buoyed by financial shares, while the Dubai index was driven up by gains in property shares.
The Saudi Arabian index was up 0.5% as Al Rajhi Bank gained 0.6% and Jabal Omar Development advanced 2.8%.
Walaa Cooperative Insurance jumped 4.9% to be the top gainer in the index. On Sunday, the insurer entered into a binding agreement to acquire all shares in Metlife AIG ANB in a share-swap deal.
Sunday, 29 September 2019
Australia's Battle With #Qatar for LNG Crown Stretching to 2020 - Bloomberg
Australia's Battle With Qatar for LNG Crown Stretching to 2020 - Bloomberg:
Australia will likely overtake Qatar as the world’s largest LNG exporter in 2020, according to an Australian government report, one year later than it had previously forecast.
“The narrow difference between the projected exports of the two nations means that Australia overtaking Qatar is far from certain, especially in 2019,” the Department of Industry, Innovation and Science said in its report released Monday.
The two nations, along with the U.S., will be the top producers next decade of LNG, the fastest growing fossil fuel that’s finding users across developing economies and Asia, particularly China.
Australia’s LNG exports are expected to rise to 81 million metric tons in 2020, while Qatar’s hold steady at around 76 million, close to levels forecast for this year for the Persian Gulf state, according to the report.
Australia will likely overtake Qatar as the world’s largest LNG exporter in 2020, according to an Australian government report, one year later than it had previously forecast.
“The narrow difference between the projected exports of the two nations means that Australia overtaking Qatar is far from certain, especially in 2019,” the Department of Industry, Innovation and Science said in its report released Monday.
The two nations, along with the U.S., will be the top producers next decade of LNG, the fastest growing fossil fuel that’s finding users across developing economies and Asia, particularly China.
Australia’s LNG exports are expected to rise to 81 million metric tons in 2020, while Qatar’s hold steady at around 76 million, close to levels forecast for this year for the Persian Gulf state, according to the report.
#SaudiArabia Starts Offering Loans to Develop Renewable Energy - Bloomberg
Saudi Arabia Starts Offering Loans to Develop Renewable Energy - Bloomberg:
Saudi Arabia will start offering loans for renewable energy projects and manufacturers of renewable-energy components as the kingdom seeks to diversify its economy away from crude oil.
The 105 billion-riyal ($28 billion) Saudi Industrial Development Fund opened applications for the program, called Mutjadeda, on Sunday. The program will give loans of as much as 1.2 billion riyals, depending on a company’s ownership, targeting renewable-energy component manufacturers as well as independent production projects. The fund will also offer financing for firms in other sectors that want to start using such energy.
“Whether you’re in manufacturing, agriculture or retail, if you want to deploy renewable energy, we will finance it,” said Ibrahim Almojel, the fund’s director general. "For renewables to be adopted in the kingdom, we need to support it.”
Saudi Arabia will start offering loans for renewable energy projects and manufacturers of renewable-energy components as the kingdom seeks to diversify its economy away from crude oil.
The 105 billion-riyal ($28 billion) Saudi Industrial Development Fund opened applications for the program, called Mutjadeda, on Sunday. The program will give loans of as much as 1.2 billion riyals, depending on a company’s ownership, targeting renewable-energy component manufacturers as well as independent production projects. The fund will also offer financing for firms in other sectors that want to start using such energy.
“Whether you’re in manufacturing, agriculture or retail, if you want to deploy renewable energy, we will finance it,” said Ibrahim Almojel, the fund’s director general. "For renewables to be adopted in the kingdom, we need to support it.”
A Ghost Army of Workers Is Paid to Do Nothing in the Gulf - Bloomberg
A Ghost Army of Workers Is Paid to Do Nothing in the Gulf - Bloomberg:
Show up, swipe in. The routine is familiar to office workers everywhere. In Kuwait, it proved too much to ask.
The government was trying to trim a wage bill that eats up more than half its budget -- an outlandish share even by Gulf standards. Last year, it required public employees to swipe their fingers on a biometric reader every morning. The following quarter, about 5,000 quit. Many of them rarely, if ever, turned up, and were worried they’d get caught under the new rule, according to Khalifa Hamada, the undersecretary at Kuwait’s Finance Ministry.
All Persian Gulf monarchies have some version of this problem. Government is the employer of first resort -- even when it has nothing much for its employees to do. That’s part of a tacit agreement between ruling families and citizens. The latter may not get a say in how their countries are run, but at least they get looked after.
Show up, swipe in. The routine is familiar to office workers everywhere. In Kuwait, it proved too much to ask.
The government was trying to trim a wage bill that eats up more than half its budget -- an outlandish share even by Gulf standards. Last year, it required public employees to swipe their fingers on a biometric reader every morning. The following quarter, about 5,000 quit. Many of them rarely, if ever, turned up, and were worried they’d get caught under the new rule, according to Khalifa Hamada, the undersecretary at Kuwait’s Finance Ministry.
All Persian Gulf monarchies have some version of this problem. Government is the employer of first resort -- even when it has nothing much for its employees to do. That’s part of a tacit agreement between ruling families and citizens. The latter may not get a say in how their countries are run, but at least they get looked after.
Expats Sent to Back of Queue for 160 #UAE Private-Sector Roles - Bloomberg
Expats Sent to Back of Queue for 160 U.A.E. Private-Sector Roles - Bloomberg:
The United Arab Emirates is renewing a push to boost the hiring of citizens by creating 20,000 new jobs and subsidizing their employment by private companies.
Emiratis must be given priority when applying for jobs in 160 private-sector positions, Sheikh Mohammed Bin Rashid Al Maktoum, acting in his capacity as the country’s prime minister, tweeted on Sunday. About 80% of the population of the U.A.E., the Arab world’s second-largest economy, are foreigners.
Cash-strapped governments across the oil-rich Gulf are seeking to reduce the burden of having to be the employer of first resort to the vast majority of its population. Private companies prefer foreign workers who tend to accept lower pay and longer hours than their local counterparts.
The United Arab Emirates is renewing a push to boost the hiring of citizens by creating 20,000 new jobs and subsidizing their employment by private companies.
Emiratis must be given priority when applying for jobs in 160 private-sector positions, Sheikh Mohammed Bin Rashid Al Maktoum, acting in his capacity as the country’s prime minister, tweeted on Sunday. About 80% of the population of the U.A.E., the Arab world’s second-largest economy, are foreigners.
Cash-strapped governments across the oil-rich Gulf are seeking to reduce the burden of having to be the employer of first resort to the vast majority of its population. Private companies prefer foreign workers who tend to accept lower pay and longer hours than their local counterparts.
#Kuwait Family Businesses Should Join Stock Market, Minister Says - Bloomberg
Kuwait Family Businesses Should Join Stock Market, Minister Says - Bloomberg:
Family businesses in Kuwait should be encouraged to sell shares on the country’s fledgling stock market, which is also trying to attract foreign investments in an effort to expand, according to a key minister.
“We think we have the muscles, the know-how, and all the opportunity to become a commercial hub,” Minister of Commerce and Industry Khaled Al-Roudhan said in an interview. “We’re trying to improve our business environment not only for foreigners but Kuwaitis too.”
Kuwait is working to help the exchange grow, Al-Roudhan said, touting upcoming IPOs, a “very ambitious” development program by the Capital Markets Authority focused on accessibility for foreign investors, as well as the lack of foreign ownership limits.
Family businesses in Kuwait should be encouraged to sell shares on the country’s fledgling stock market, which is also trying to attract foreign investments in an effort to expand, according to a key minister.
“We think we have the muscles, the know-how, and all the opportunity to become a commercial hub,” Minister of Commerce and Industry Khaled Al-Roudhan said in an interview. “We’re trying to improve our business environment not only for foreigners but Kuwaitis too.”
Kuwait is working to help the exchange grow, Al-Roudhan said, touting upcoming IPOs, a “very ambitious” development program by the Capital Markets Authority focused on accessibility for foreign investors, as well as the lack of foreign ownership limits.
#SaudiArabia Is Said to Plan Dollar Sukuk as Soon as October - Bloomberg
Saudi Arabia Is Said to Plan Dollar Sukuk as Soon as October - Bloomberg:
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter.
The government is close to hiring banks for the possible sukuk sale, the people said, asking not to be identified because the information is private. A spokesman for the Finance Ministry didn’t immediately respond to requests to comment.
A sale would come just weeks after attacks on the kingdom’s oil facilities slashed Saudi Aramco’s crude output by half. Still, Finance Minister Mohammed Al-Jadaan said the strikes had “zero” impact on the country’s revenue. S&P Global Ratings last week affirmed the country’s rating at A- with a stable outlook.
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter.
The government is close to hiring banks for the possible sukuk sale, the people said, asking not to be identified because the information is private. A spokesman for the Finance Ministry didn’t immediately respond to requests to comment.
A sale would come just weeks after attacks on the kingdom’s oil facilities slashed Saudi Aramco’s crude output by half. Still, Finance Minister Mohammed Al-Jadaan said the strikes had “zero” impact on the country’s revenue. S&P Global Ratings last week affirmed the country’s rating at A- with a stable outlook.
#Dubai attracts $13bln in FDIs for H1 2019 | ZAWYA MENA Edition
Dubai attracts $13bln in FDIs for H1 2019 | ZAWYA MENA Edition:
The Emirate of Dubai has witnessed exceptional growth during the first half of 2019, with foreign direct investments, FDIs, reaching a record-breaking AED46.6 billion, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced on Sunday.
This new record represents a growth of 135 percent compared to the same period last year, His Highness added, noting that this FDI growth within the emirate is "a testament to global confidence in Dubai's economy." During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects.
The Emirate of Dubai has witnessed exceptional growth during the first half of 2019, with foreign direct investments, FDIs, reaching a record-breaking AED46.6 billion, H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, announced on Sunday.
This new record represents a growth of 135 percent compared to the same period last year, His Highness added, noting that this FDI growth within the emirate is "a testament to global confidence in Dubai's economy." During the first half of 2019, Dubai has continued to progress in global rankings of the most attractive cities for FDI, ranking third in the world in attracting FDI, in terms of both capital flows and the number of greenfield projects.
#Kuwait plans to sell up to 44% stakes in two power projects in 2020, 2021 -official | ZAWYA MENA Edition
Kuwait plans to sell up to 44% stakes in two power projects in 2020, 2021 -official | ZAWYA MENA Edition:
Kuwait plans to sell stakes of up to 44% in the Al-Zour and Khiran power projects to investors in the middle of 2020 and early 2021 respectively, a senior official said on Sunday.
"We are in the process of appointing the consultant (for the two projects in cooperation) with the Central Agency for Public Tenders," Mutlaq al-Sanei, who heads the Kuwait Authority for Partnership Projects, told Reuters in an interview.
Kuwait plans to sell at least 26% stakes in each project and not more than 44%, he said.
Kuwait plans to sell stakes of up to 44% in the Al-Zour and Khiran power projects to investors in the middle of 2020 and early 2021 respectively, a senior official said on Sunday.
"We are in the process of appointing the consultant (for the two projects in cooperation) with the Central Agency for Public Tenders," Mutlaq al-Sanei, who heads the Kuwait Authority for Partnership Projects, told Reuters in an interview.
Kuwait plans to sell at least 26% stakes in each project and not more than 44%, he said.
MIDEAST STOCKS-Egypt posts third winning session while other markets mixed - Reuters
MIDEAST STOCKS-Egypt posts third winning session while other markets mixed - Reuters:
Egypt's stock market rose sharply on
Sunday, extending gains for a third session following steep
losses triggered by September 20 protests.
Egypt's blue-chip index rose 3.3% with all 30
stocks gaining, including Commercial International Bank
up 2.5% and a 5.3% surge in EFG Hermes.
Egypt's broader index EGX 100 closed up 3.7% as
the central bank cut key interest rates for the second month in
a row and anti-government protests failed to gather momentum.
The central bank cut interest rates by 100 basis points,
with overnight deposit rates lowered to 13.25% and lending rates
easing to 14.25%.
Egypt's stock market rose sharply on
Sunday, extending gains for a third session following steep
losses triggered by September 20 protests.
Egypt's blue-chip index rose 3.3% with all 30
stocks gaining, including Commercial International Bank
up 2.5% and a 5.3% surge in EFG Hermes.
Egypt's broader index EGX 100 closed up 3.7% as
the central bank cut key interest rates for the second month in
a row and anti-government protests failed to gather momentum.
The central bank cut interest rates by 100 basis points,
with overnight deposit rates lowered to 13.25% and lending rates
easing to 14.25%.
Majid Al Futtaim CEO CHUNK on #Saudi tourism, investment - Bloomberg
Majid Al Futtaim CEO CHUNK on Saudi tourism, investment - Bloomberg:
Dubai-based shopping malls operator Majid Al Futtaim is planning to invest 20 billion riyals in Saudi Arabia. The Group CEO Alain Bejjani explains his growth strategy to Bloomberg's Zainab Fattah in Riyadh. (Source: Bloomberg)
Dubai-based shopping malls operator Majid Al Futtaim is planning to invest 20 billion riyals in Saudi Arabia. The Group CEO Alain Bejjani explains his growth strategy to Bloomberg's Zainab Fattah in Riyadh. (Source: Bloomberg)
Tourism offers new investment opportunities in #SaudiArabia: SAGIA - Bloomberg
Tourism offers new investment opportunities in Saudi Arabia: SAGIA - Bloomberg:
Sultan Mofti, SAGIA Deputy Governor for Investment Attraction and Development, discusses how Saudi Arabia is opening up to global tourism. He tells Bloomberg that the country is also ready to attract new investments from abroad. (Source: Bloomberg)
Sultan Mofti, SAGIA Deputy Governor for Investment Attraction and Development, discusses how Saudi Arabia is opening up to global tourism. He tells Bloomberg that the country is also ready to attract new investments from abroad. (Source: Bloomberg)
S&P affirms #SaudiArabia's rating with stable outlook; expects fast rebound in oil production | ZAWYA MENA Edition
S&P affirms Saudi Arabia's rating with stable outlook; expects fast rebound in oil production | ZAWYA MENA Edition:
S&P Global Ratings affirmed its ‘A-/A-2’ long and short-term sovereign credit ratings on Saudi Arabia with a stable outlook. The ratings agency said that the stable outlook reflects its expectations that the Kingdom’s oil production will rebound quickly.
The ‘A-/A-2’ is supported by Saudi Arabia’s strong external and fiscal net asset stock positions, S&P said.
“The stable outlook also reflects our view that Saudi Arabia will maintain a pace of moderate economic growth and retain strong government and external balance sheets (net asset-stock positions) over the next two years, despite sizable fiscal deficits and heightened regional tensions,” S&P said.
S&P Global Ratings affirmed its ‘A-/A-2’ long and short-term sovereign credit ratings on Saudi Arabia with a stable outlook. The ratings agency said that the stable outlook reflects its expectations that the Kingdom’s oil production will rebound quickly.
The ‘A-/A-2’ is supported by Saudi Arabia’s strong external and fiscal net asset stock positions, S&P said.
“The stable outlook also reflects our view that Saudi Arabia will maintain a pace of moderate economic growth and retain strong government and external balance sheets (net asset-stock positions) over the next two years, despite sizable fiscal deficits and heightened regional tensions,” S&P said.
#SaudiArabia's Samba issues $1bln international notes | ZAWYA MENA Edition
Saudi Arabia's Samba issues $1bln international notes | ZAWYA MENA Edition:
Saudi Arabia’s Samba Financial Group has issued $1 billion international notes under its $5 billion Euro Medium Term Note Programme.
The maturity date of the issuance is in five years, generating a 2.865 percent annual yield. The notes are listed on the Irish Stock Exchange.
First Abu Dhabi Bank, Goldman Sachs International, HSBC, Samba Capital & Investment Management Company and Standard Chartered Bank are the joint lead managers for the offer.
Saudi Arabia’s Samba Financial Group has issued $1 billion international notes under its $5 billion Euro Medium Term Note Programme.
The maturity date of the issuance is in five years, generating a 2.865 percent annual yield. The notes are listed on the Irish Stock Exchange.
First Abu Dhabi Bank, Goldman Sachs International, HSBC, Samba Capital & Investment Management Company and Standard Chartered Bank are the joint lead managers for the offer.
Residential rents in #Dubai to stay lower in 2020 | ZAWYA MENA Edition
Residential rents in Dubai to stay lower in 2020 | ZAWYA MENA Edition:
Residents in Dubai are expected to enjoy lower rents next year despite a pick-up in economic activity and preparation for Expo 2020 as more units will come online and increase competition in the market, experts say.
Unlike a general perception that rents will go up ahead of Expo 2020, residents will be paying less rents due to a supply-and-demand correction, subdued population growth, bearish market sentiments and global or regional economic uncertainties, they said.
Latest data released by ValuStrat indicates that average annual rents in Dubai dropped by 9.2 per cent in the first three quarters of 2019 compared to 8.4 per cent in 2018 and 9.1 per cent in 2017.
Residents in Dubai are expected to enjoy lower rents next year despite a pick-up in economic activity and preparation for Expo 2020 as more units will come online and increase competition in the market, experts say.
Unlike a general perception that rents will go up ahead of Expo 2020, residents will be paying less rents due to a supply-and-demand correction, subdued population growth, bearish market sentiments and global or regional economic uncertainties, they said.
Latest data released by ValuStrat indicates that average annual rents in Dubai dropped by 9.2 per cent in the first three quarters of 2019 compared to 8.4 per cent in 2018 and 9.1 per cent in 2017.
MIDEAST STOCKS-Property stocks weigh on #Dubai; other markets mixed - Reuters
MIDEAST STOCKS-Property stocks weigh on Dubai; other markets mixed - Reuters:
Dubai’s stock market fell on Sunday to extend losses for a fourth session hurt by real estate shares while other major Gulf markets were mixed.
The Dubai index dropped 0.5% weighed down by its largest lender Emirates NBD which fell 0.8% and a 0.6% fall in Emaar Properties.
A weakening property market in the United Arab Emirates is likely to put more pressure on the asset quality of the banking sector, Fitch Ratings agency said.
Dubai’s stock market fell on Sunday to extend losses for a fourth session hurt by real estate shares while other major Gulf markets were mixed.
The Dubai index dropped 0.5% weighed down by its largest lender Emirates NBD which fell 0.8% and a 0.6% fall in Emaar Properties.
A weakening property market in the United Arab Emirates is likely to put more pressure on the asset quality of the banking sector, Fitch Ratings agency said.
Saturday, 28 September 2019
#Yemen's Houthis say attacked #Saudi border frontline, no immediate Saudi confirmation - Reuters
Yemen's Houthis say attacked Saudi border frontline, no immediate Saudi confirmation - Reuters:
Yemen’s Houthi movement said on Saturday it had carried out a major attack near the border with the southern Saudi region of Najran and captured many troops and vehicles, but there was no immediate confirmation from Saudi Arabian authorities.
The Houthis’ military spokesman said in a statement that three “enemy military brigades had fallen” in the attack, which he said was launched 72 hours ago and supported by the group’s drone, missile and air defense units.
Houthi-run Al Masirah TV quoted the spokesman as saying the Iran-aligned movement had captured “thousands” of enemy troops, including many officers and soldiers of the Saudi army, as well as hundreds of armored vehicles.
Yemen’s Houthi movement said on Saturday it had carried out a major attack near the border with the southern Saudi region of Najran and captured many troops and vehicles, but there was no immediate confirmation from Saudi Arabian authorities.
The Houthis’ military spokesman said in a statement that three “enemy military brigades had fallen” in the attack, which he said was launched 72 hours ago and supported by the group’s drone, missile and air defense units.
Houthi-run Al Masirah TV quoted the spokesman as saying the Iran-aligned movement had captured “thousands” of enemy troops, including many officers and soldiers of the Saudi army, as well as hundreds of armored vehicles.
#Saudi strikes and spiking oil price raise spectre of ‘black swan’ | Financial Times
Saudi strikes and spiking oil price raise spectre of ‘black swan’ | Financial Times:
The twists and turns of the US-China trade war and Britain’s torturous departure from the EU have consumed asset managers in recent years as they fretted over the possible impact on their portfolios.
But investors this month were jolted by an unexpected threat in the form of volatile oil prices after Saudi Arabia’s oil processing facilities were damaged by drone and missile strikes, knocking out around half of Saudi oil production.
A 20 per cent surge in the price of Brent crude ensued, the largest intraday percentage rise since Saddam Hussein invaded Kuwait in 1990.
The twists and turns of the US-China trade war and Britain’s torturous departure from the EU have consumed asset managers in recent years as they fretted over the possible impact on their portfolios.
But investors this month were jolted by an unexpected threat in the form of volatile oil prices after Saudi Arabia’s oil processing facilities were damaged by drone and missile strikes, knocking out around half of Saudi oil production.
A 20 per cent surge in the price of Brent crude ensued, the largest intraday percentage rise since Saddam Hussein invaded Kuwait in 1990.
Oil Shorts Soar as Market Shakes Off #Saudi Arabian Disruption - Bloomberg
Oil Shorts Soar as Market Shakes Off Saudi Arabian Disruption - Bloomberg:
Oil investors piled into short positions as oil markets shook off the disruption from attacks on Saudi Arabian oil facilities.
Bets that West Texas Intermediate crude prices would decline surged 33%, just before prices briefly dipped below pre-attack levels. Money managers are still net long, according to data released Sept. 27 by the U.S. Commodity Futures Trading Commission, but wagers on a rally shrank to below where they were before the Sept. 14 strikes that halted half of Saudi oil output.
“The initial up-swell in long positions in part was a function of worries that the damage to Saudi facilities was going to take long to fix,” said Stewart Glickman, an energy analyst at CFRA Research Inc. “Now it seems like, by all indications, the Saudis, the majority of their processing capacity, is back.”
Oil investors piled into short positions as oil markets shook off the disruption from attacks on Saudi Arabian oil facilities.
Bets that West Texas Intermediate crude prices would decline surged 33%, just before prices briefly dipped below pre-attack levels. Money managers are still net long, according to data released Sept. 27 by the U.S. Commodity Futures Trading Commission, but wagers on a rally shrank to below where they were before the Sept. 14 strikes that halted half of Saudi oil output.
“The initial up-swell in long positions in part was a function of worries that the damage to Saudi facilities was going to take long to fix,” said Stewart Glickman, an energy analyst at CFRA Research Inc. “Now it seems like, by all indications, the Saudis, the majority of their processing capacity, is back.”
#Saudi Recovery From Aramco Abqaiq Oil Attack Isn’t All It Seems - Bloomberg
Saudi Recovery From Aramco Abqaiq Oil Attack Isn’t All It Seems - Bloomberg:
A blizzard of data on Saudi Arabia’s oil production, production capacity and exports has painted a picture of an industry that is almost back to normal after the Sept. 14 attacks. That view may be too simplistic, though. Here’s my take on how the numbers might be reconciled and what that means for Saudi oil flows.
The Numbers We’ve Been Given
Production:
A blizzard of data on Saudi Arabia’s oil production, production capacity and exports has painted a picture of an industry that is almost back to normal after the Sept. 14 attacks. That view may be too simplistic, though. Here’s my take on how the numbers might be reconciled and what that means for Saudi oil flows.
The Numbers We’ve Been Given
Production:
- Immediately before the attack, Aramco was pumping 9.8 million barrels a day, in line with its average production level in August.
- Saudi Arabia lost 5.7 million barrels a day of production, with 4.5 million coming from the Abqaiq processing plant and 1.2 million from the Khurais field, taking output down to 4.1 million barrels a day immediately after the attack.
- Crude production has been restored to more than 8 million barrels a day.
Tidal wave of emerging market debt setting new records - Reuters
Tidal wave of emerging market debt setting new records - Reuters:
What a difference a few weeks make. Developing countries were all but shut out of borrowing markets last month as global recession fears started to bite, but fast forward and September is challenging issuance records.
September tends to be a busy time of year anyway as borrowers look to lock in any funding they still need for the year, but this time a real tidal wave seems to have been unleashed.
On the sovereign side alone, Abu Dhabi has sold a $10 billion bond, Armenia a $500 million one, South Africa $5 billion, Ecuador $2 billion, Bahrain $2 billion, Uruguay $750 million, Kazakhstan 1.15 billion euros. Even troubled Lebanon says it has $2 billion in the works.
What a difference a few weeks make. Developing countries were all but shut out of borrowing markets last month as global recession fears started to bite, but fast forward and September is challenging issuance records.
September tends to be a busy time of year anyway as borrowers look to lock in any funding they still need for the year, but this time a real tidal wave seems to have been unleashed.
On the sovereign side alone, Abu Dhabi has sold a $10 billion bond, Armenia a $500 million one, South Africa $5 billion, Ecuador $2 billion, Bahrain $2 billion, Uruguay $750 million, Kazakhstan 1.15 billion euros. Even troubled Lebanon says it has $2 billion in the works.
Friday, 27 September 2019
Oil prices post weekly loss as supply fears wane - Reuters
Oil prices post weekly loss as supply fears wane - Reuters:
Oil prices fell on Friday and posted a weekly loss on a faster-than-expected recovery in Saudi output, while investors also worried about global crude demand amid slowing Chinese economic growth.
During a volatile session, Brent crude LCOc1 futures fell 83 cents, or 1.3%, to settle at $61.91 a barrel, after dropping to a session low of $60.76 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 50 cents, or 0.9%, to settle at $55.91 a barrel. It hit a session low of $54.75 a barrel.
Brent fell 3.7% for the week, its biggest weekly loss since early August. WTI lost 3.6%, its steepest loss since mid-July.
Oil prices fell on Friday and posted a weekly loss on a faster-than-expected recovery in Saudi output, while investors also worried about global crude demand amid slowing Chinese economic growth.
During a volatile session, Brent crude LCOc1 futures fell 83 cents, or 1.3%, to settle at $61.91 a barrel, after dropping to a session low of $60.76 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 50 cents, or 0.9%, to settle at $55.91 a barrel. It hit a session low of $54.75 a barrel.
Brent fell 3.7% for the week, its biggest weekly loss since early August. WTI lost 3.6%, its steepest loss since mid-July.
Oil prices head for big weekly loss as supply fears wane - Reuters
Oil prices head for big weekly loss as supply fears wane - Reuters:
Oil prices fell on Friday and were heading for a weekly loss on a faster than expected recovery in Saudi output while slowing Chinese economic growth dampens the demand outlook.
Brent crude LCOc1 fell 93 cents to $61.81 a barrel by 1102 GMT while U.S. crude CLc1 sliped by 65 cents to $55.76. Both were down almost 4% over the week, representing WTI’s biggest weekly loss in 10 weeks and Brent’s biggest in seven.
Brent and WTI were also hit by a Wall Street Journal report citing unnamed sources saying that Saudi Arabia had agreed a partial ceasefire in Yemen, said analysts in the Reuters Global Oil Forum.
Oil prices fell on Friday and were heading for a weekly loss on a faster than expected recovery in Saudi output while slowing Chinese economic growth dampens the demand outlook.
Brent crude LCOc1 fell 93 cents to $61.81 a barrel by 1102 GMT while U.S. crude CLc1 sliped by 65 cents to $55.76. Both were down almost 4% over the week, representing WTI’s biggest weekly loss in 10 weeks and Brent’s biggest in seven.
Brent and WTI were also hit by a Wall Street Journal report citing unnamed sources saying that Saudi Arabia had agreed a partial ceasefire in Yemen, said analysts in the Reuters Global Oil Forum.
Oil Set for Worst Week Since July as Saudis Restore Production - Bloomberg
Oil Set for Worst Week Since July as Saudis Restore Production - Bloomberg:
Oil is heading for the biggest weekly loss since July on indications Saudi Arabia is restoring lost crude production quicker-than-expected after attacks on its key energy infrastructure.
Futures slid as much as 0.6% in New York on Friday. The kingdom is about a week ahead of its repair schedule and is pumping more than 8 million barrels a day, according to people familiar with the matter. Further price losses may be capped by the prospect of escalating tension in the Middle East. The U.S. said it will send an additional Patriot missile battery and 200 more personnel to Saudi Arabia, extending the region’s air defense in the wake of the Sept. 14 assault.
Oil is heading for the biggest weekly loss since July on indications Saudi Arabia is restoring lost crude production quicker-than-expected after attacks on its key energy infrastructure.
Futures slid as much as 0.6% in New York on Friday. The kingdom is about a week ahead of its repair schedule and is pumping more than 8 million barrels a day, according to people familiar with the matter. Further price losses may be capped by the prospect of escalating tension in the Middle East. The U.S. said it will send an additional Patriot missile battery and 200 more personnel to Saudi Arabia, extending the region’s air defense in the wake of the Sept. 14 assault.
Aramco picks SMBC Nikko Securities as first Japanese bookrunner for IPO: sources - Reuters
Aramco picks SMBC Nikko Securities as first Japanese bookrunner for IPO: sources - Reuters:
Saudi Aramco has chosen SMBC Nikko Securities as a bookrunner for its initial public offering (IPO), the first Japanese financial firm to grab a role in the mega deal, three sources familiar with the matter said.
Aramco has hired over a dozen banks including U.S. and European banks to manage its IPO as it seeks to tap a wider global investor base for a potential $20 billion local listing in Riyadh of around 1% of the company’s shares.
The selection of a Japanese financial player comes amid speculation about Tokyo being a possible overseas destination for the Aramco listing.
Saudi Aramco has chosen SMBC Nikko Securities as a bookrunner for its initial public offering (IPO), the first Japanese financial firm to grab a role in the mega deal, three sources familiar with the matter said.
Aramco has hired over a dozen banks including U.S. and European banks to manage its IPO as it seeks to tap a wider global investor base for a potential $20 billion local listing in Riyadh of around 1% of the company’s shares.
The selection of a Japanese financial player comes amid speculation about Tokyo being a possible overseas destination for the Aramco listing.
Oil sinks amid threats to demand growth, fading #Saudi supply concerns - Reuters
Oil sinks amid threats to demand growth, fading Saudi supply concerns - Reuters:
Oil prices fell on Friday as economic headwinds revived concerns of slowing global demand growth and a faster-than-expected recovery in Saudi crude oil output eased worries over potential major supply disruptions.
The International Energy Agency (IEA) said on Friday it may cut its growth estimates for global oil demand for 2019 and 2020, should the global economy weaken further.
“It will depend on the global economy. If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters.
Brent crude LCOc1 futures fell 55 cents, or 0.9%, from the previous session’s close to $62.19 a barrel by 0653 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 30 cents, or 0.5%, to $56.11 a barrel.
Oil prices fell on Friday as economic headwinds revived concerns of slowing global demand growth and a faster-than-expected recovery in Saudi crude oil output eased worries over potential major supply disruptions.
The International Energy Agency (IEA) said on Friday it may cut its growth estimates for global oil demand for 2019 and 2020, should the global economy weaken further.
“It will depend on the global economy. If the global economy weakens, for which there are already some signs, we may lower oil demand expectations,” IEA Executive Director Fatih Birol told Reuters.
Brent crude LCOc1 futures fell 55 cents, or 0.9%, from the previous session’s close to $62.19 a barrel by 0653 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 fell 30 cents, or 0.5%, to $56.11 a barrel.
Thursday, 26 September 2019
Satellite images show activity pick-up at Saudi Aramco's Abqaiq site - Reuters
Satellite images show activity pick-up at Saudi Aramco's Abqaiq site - Reuters:
Satellite imagery of Saudi Arabia’s Abqaiq oil processing plant, which was damaged in an attack on Sept. 14, show signs of a return to thermal activity, data analytics firm Kayrros said on Thursday.
Kayrros also said that flaring - the burning of gas from oilfields - was at “usual minimal levels” at Ghawar, Khurais and Abqaiq.
The low flaring levels are in line with the resumption of gas compression activities at the Abqaiq plant, highlighting Saudi Aramco attempts to restore production levels, Kayrros said.
Satellite imagery of Saudi Arabia’s Abqaiq oil processing plant, which was damaged in an attack on Sept. 14, show signs of a return to thermal activity, data analytics firm Kayrros said on Thursday.
Kayrros also said that flaring - the burning of gas from oilfields - was at “usual minimal levels” at Ghawar, Khurais and Abqaiq.
The low flaring levels are in line with the resumption of gas compression activities at the Abqaiq plant, highlighting Saudi Aramco attempts to restore production levels, Kayrros said.
Oil steady as Middle East conflict fears support, Trump probe weighs - Reuters
Oil steady as Middle East conflict fears support, Trump probe weighs - Reuters:
Oil was largely flat on Thursday after a Pentagon statement intensified concerns of a Middle East conflict disrupting supply, supporting prices, while new details connected to the impeachment inquiry into U.S. President Donald Trump weakened demand sentiment.
Brent crude LCOc1 futures settled at $62.74 a barrel, up 0.6%, or 35 cents. U.S. West Texas Intermediate (WTI) crude CLc1 settled at $56.41 a barrel, down 8 cents, after briefly turning positive following the Pentagon statement.
Crude futures pared losses late in the session after the U.S. Department of Defense said it would deploy radar systems, Patriot missiles and about two hundred personnel to bolster Saudi Arabia’s defenses after an attack on the kingdom’s oil facilities this month.
Oil was largely flat on Thursday after a Pentagon statement intensified concerns of a Middle East conflict disrupting supply, supporting prices, while new details connected to the impeachment inquiry into U.S. President Donald Trump weakened demand sentiment.
Brent crude LCOc1 futures settled at $62.74 a barrel, up 0.6%, or 35 cents. U.S. West Texas Intermediate (WTI) crude CLc1 settled at $56.41 a barrel, down 8 cents, after briefly turning positive following the Pentagon statement.
Crude futures pared losses late in the session after the U.S. Department of Defense said it would deploy radar systems, Patriot missiles and about two hundred personnel to bolster Saudi Arabia’s defenses after an attack on the kingdom’s oil facilities this month.
#Saudi Crude Exports Have Yet to Fully Recover From Attacks - Bloomberg
Saudi Crude Exports Have Yet to Fully Recover From Attacks - Bloomberg:
Saudi Arabia’s crude exports haven’t fully recovered from attacks on key oil facilities almost two weeks ago, even as the kingdom races to resume full production after the incident.
Observed crude loadings dropped to about 5.86 million barrels a day from Sept. 14 -- the day of the attacks -- through Sept. 25, preliminary tanker-tracking data compiled by Bloomberg show. That compares with 6.74 million barrels a day in the 13 days prior to the incident.
Saudi Arabia’s crude exports haven’t fully recovered from attacks on key oil facilities almost two weeks ago, even as the kingdom races to resume full production after the incident.
Observed crude loadings dropped to about 5.86 million barrels a day from Sept. 14 -- the day of the attacks -- through Sept. 25, preliminary tanker-tracking data compiled by Bloomberg show. That compares with 6.74 million barrels a day in the 13 days prior to the incident.
RBC, Santander, Mizuho Said to Win Coveted Roles on Aramco IPO - Bloomberg
RBC, Santander, Mizuho Said to Win Coveted Roles on Aramco IPO - Bloomberg:
Royal Bank of Canada, Banco Santander SA and Japan’s Mizuho Financial Group Inc. are among banks that have secured bookrunner roles on Saudi Aramco’s initial public offering, people with knowledge of the matter said.
Chinese investment bank BOC International Holdings Ltd. and Tokyo-based Sumitomo Mitsui Banking Corp. are also among 15 joint bookrunners chosen by Aramco, the people said. Middle Eastern firms Saudi Fransi Capital, Al Rajhi Capital, Riyad Bank and EFG Hermes were also picked, the people said.
Aramco is accelerating its listing plans after recovering faster than expected from the biggest terror attacks in its history. The state oil giant plans to formally kick off its much-anticipated IPO next month by announcing the intention to float on Oct. 20, with a target of listing as soon as November, Bloomberg News has reported.
Royal Bank of Canada, Banco Santander SA and Japan’s Mizuho Financial Group Inc. are among banks that have secured bookrunner roles on Saudi Aramco’s initial public offering, people with knowledge of the matter said.
Chinese investment bank BOC International Holdings Ltd. and Tokyo-based Sumitomo Mitsui Banking Corp. are also among 15 joint bookrunners chosen by Aramco, the people said. Middle Eastern firms Saudi Fransi Capital, Al Rajhi Capital, Riyad Bank and EFG Hermes were also picked, the people said.
Aramco is accelerating its listing plans after recovering faster than expected from the biggest terror attacks in its history. The state oil giant plans to formally kick off its much-anticipated IPO next month by announcing the intention to float on Oct. 20, with a target of listing as soon as November, Bloomberg News has reported.
Speedy Aramco IPO Schedule Leaves Research Teams Scrambling - Bloomberg
Speedy Aramco IPO Schedule Leaves Research Teams Scrambling - Bloomberg:
Saudi Aramco is wasting no time pushing ahead with its initial public offering, leaving legions of analysts scrambling to prepare research that will help investors decide whether to buy into one of the world’s biggest ever share sales.
Investment banks’ research teams started meeting Wednesday in the desert city of Dhahran for two packed days of briefings by Aramco top brass. They will then have barely three weeks to prepare their pre-IPO reports on Aramco, according to an internal schedule seen by Bloomberg. That compares to six to eight weeks they’re normally given for some of the biggest global listings.
Aramco is speeding up preparations for the IPO with an aim of listing on the Saudi bourse as soon as November, Bloomberg News has reported. For its bankers, the stakes couldn’t be higher: they’ve spent years wooing the oil giant to get a lucrative spot on the deal, which could make Aramco the world’s biggest listed company if it hits its target market capitalization of $2 trillion.
Saudi Aramco is wasting no time pushing ahead with its initial public offering, leaving legions of analysts scrambling to prepare research that will help investors decide whether to buy into one of the world’s biggest ever share sales.
Investment banks’ research teams started meeting Wednesday in the desert city of Dhahran for two packed days of briefings by Aramco top brass. They will then have barely three weeks to prepare their pre-IPO reports on Aramco, according to an internal schedule seen by Bloomberg. That compares to six to eight weeks they’re normally given for some of the biggest global listings.
Aramco is speeding up preparations for the IPO with an aim of listing on the Saudi bourse as soon as November, Bloomberg News has reported. For its bankers, the stakes couldn’t be higher: they’ve spent years wooing the oil giant to get a lucrative spot on the deal, which could make Aramco the world’s biggest listed company if it hits its target market capitalization of $2 trillion.
#Saudi Aramco lures sovereign funds to hit $2trln IPO valuation - sources | ZAWYA MENA Edition
Saudi Aramco lures sovereign funds to hit $2trln IPO valuation - sources | ZAWYA MENA Edition:
State-owned Saudi Aramco has approached Abu Dhabi Investment Authority (ADIA), Singapore's GIC and other sovereign wealth funds to invest in the domestic leg of the oil giant's listing at it seeks to achieve a $2 trillion valuation, sources said.
After initial conversations in recent months between Saudi Arabia and governments in the Gulf and Asia, approaches to their sovereign wealth funds have started via the banks appointed to handle Aramco's initial public offering (IPO), the sources said.
A meeting between Aramco's management and a team from Abu Dhabi's ADIA, the world's third-biggest sovereign wealth fund, was set up for October, one of the sources told Reuters.
State-owned Saudi Aramco has approached Abu Dhabi Investment Authority (ADIA), Singapore's GIC and other sovereign wealth funds to invest in the domestic leg of the oil giant's listing at it seeks to achieve a $2 trillion valuation, sources said.
After initial conversations in recent months between Saudi Arabia and governments in the Gulf and Asia, approaches to their sovereign wealth funds have started via the banks appointed to handle Aramco's initial public offering (IPO), the sources said.
A meeting between Aramco's management and a team from Abu Dhabi's ADIA, the world's third-biggest sovereign wealth fund, was set up for October, one of the sources told Reuters.
Oil slides as Trump impeachment prospect, #Saudi supply weighs - Reuters
Oil slides as Trump impeachment prospect, Saudi supply weighs - Reuters:
Oil fell on Thursday as new developments in an inquiry into the impeachment of U.S. President Donald Trump weighed on demand sentiment while moves to quickly restore Saudi output after attacks on its oil installations promised more oil supply.
The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.
“When the odds of impeachment go down, the market goes up. When the odds of impeachment goes up, it goes down,” said Phil Flynn, an analyst with Price Futures Group in Chicago. “The market doesn’t like the prospect of impeachment - that’s going to be a negative for the U.S. economy, it’s going to be a negative on U.S.-China trade.”
Both benchmarks fell for a third straight day, with Brent crude LCOc1 futures down 39 cents, or 0.6%, at $62.00 a barrel and U.S. West Texas Intermediate (WTI) crude CLc1 65 cents, or 1.2%, lower at $55.84 a barrel by 11:47 a.m.
Oil fell on Thursday as new developments in an inquiry into the impeachment of U.S. President Donald Trump weighed on demand sentiment while moves to quickly restore Saudi output after attacks on its oil installations promised more oil supply.
The U.S. House Intelligence Committee released a declassified version of a whistleblower report alleging Trump used his office to solicit interference in the 2020 presidential election from a foreign country.
“When the odds of impeachment go down, the market goes up. When the odds of impeachment goes up, it goes down,” said Phil Flynn, an analyst with Price Futures Group in Chicago. “The market doesn’t like the prospect of impeachment - that’s going to be a negative for the U.S. economy, it’s going to be a negative on U.S.-China trade.”
Both benchmarks fell for a third straight day, with Brent crude LCOc1 futures down 39 cents, or 0.6%, at $62.00 a barrel and U.S. West Texas Intermediate (WTI) crude CLc1 65 cents, or 1.2%, lower at $55.84 a barrel by 11:47 a.m.
GRAPHIC-Tidal wave of emerging market debt setting new records - Reuters
GRAPHIC-Tidal wave of emerging market debt setting new records - Reuters:
What a difference a few weeks make. Developing countries were all but shut out of borrowing markets last month as global recession fears started to bite, but fast forward and September is challenging issuance records.
September tends to be a busy time of year anyway as borrowers look to lock in any funding they still need for the year, but this time a real tidal wave seems to have been unleashed.
On the sovereign side alone, Abu Dhabi has sold a $10 billion bond, Armenia a $500 million one, South Africa $5 billion, Ecuador $2 billion, Bahrain $2 billion, Uruguay $750 million, Kazakhstan 1.15 billion euros. Even troubled Lebanon says it has $2 billion in the works.
What a difference a few weeks make. Developing countries were all but shut out of borrowing markets last month as global recession fears started to bite, but fast forward and September is challenging issuance records.
September tends to be a busy time of year anyway as borrowers look to lock in any funding they still need for the year, but this time a real tidal wave seems to have been unleashed.
On the sovereign side alone, Abu Dhabi has sold a $10 billion bond, Armenia a $500 million one, South Africa $5 billion, Ecuador $2 billion, Bahrain $2 billion, Uruguay $750 million, Kazakhstan 1.15 billion euros. Even troubled Lebanon says it has $2 billion in the works.
MIDEAST STOCKS-Egypt extends gains; other markets subdued - Reuters
MIDEAST STOCKS-Egypt extends gains; other markets subdued - Reuters:
Egyptian stocks on Thursday extended
gains from the previous session offsetting some of its wide
losses incurred in the first three sessions of the week
following protests in several Egyptian cities.
Anti-government protests broke out last weekend against
President Abdel Fattah al-Sisi, causing shares to plunge on the
Cairo bourse early in the week.
Egypt's blue-chip index rebounded for a second day,
gaining 1.9% with 27 of 30 stocks rising on the index.
The country's largest lender Commercial International Bank
jumped 4.1% and Cairo for Investment and Real Estate
Development (CIRA) surged 10%, its biggest since April
2011.
Egyptian stocks on Thursday extended
gains from the previous session offsetting some of its wide
losses incurred in the first three sessions of the week
following protests in several Egyptian cities.
Anti-government protests broke out last weekend against
President Abdel Fattah al-Sisi, causing shares to plunge on the
Cairo bourse early in the week.
Egypt's blue-chip index rebounded for a second day,
gaining 1.9% with 27 of 30 stocks rising on the index.
The country's largest lender Commercial International Bank
jumped 4.1% and Cairo for Investment and Real Estate
Development (CIRA) surged 10%, its biggest since April
2011.
Prince Khaled’s KBW Ventures to increase investments in US tech sector - The National
Prince Khaled’s KBW Ventures to increase investments in US tech sector - The National:
KBW Ventures is looking to increase its investments in the US technology sector, its chairman Prince Khaled bin Alwaleed bin Talal said.
The venture capital arm of Dubai-based KBW Investments has already invested in 24 companies in e-gaming, e-commerce and the plant-based protein sector, among others, so far this year. It is planning to invest in five more companies by the end of 2019.
“Last month, we closed five investments and we are looking to increase our investments in the US. By the end of this year, we will have investments in about 30 companies,” Prince Khaled told The National. He did not provide details about the total value of the investments or the name of the companies.
KBW Ventures is looking to increase its investments in the US technology sector, its chairman Prince Khaled bin Alwaleed bin Talal said.
The venture capital arm of Dubai-based KBW Investments has already invested in 24 companies in e-gaming, e-commerce and the plant-based protein sector, among others, so far this year. It is planning to invest in five more companies by the end of 2019.
“Last month, we closed five investments and we are looking to increase our investments in the US. By the end of this year, we will have investments in about 30 companies,” Prince Khaled told The National. He did not provide details about the total value of the investments or the name of the companies.
Bounced cheque reports among 15 #Dubai police services to go online | Uae – Gulf News
Bounced cheque reports among 15 Dubai police services to go online | Uae – Gulf News:
As many as 15 public services by Dubai Police will not be provided in person, except in three stations, starting January 2, 2020. They will be offered only online.
The 15 services will be available on the Dubai Police app or other smart channels. The services pertain to reporting bounced cheques, lost and found enquiries, requests for report of traffic accidents without injuries, reports of traffic accident against the unknown, replacement of lost traffic accident reports, requests to release impounded vehicles, requests to pay fees for impounded vehicle, police clearance certificates, lost documents certificates, traffic fines clearance, to whomever it may concern certificates, work permits at night, detainee visit requests and traffic fines payment.
Major-General Dr Abdul Qudoos Abdul Razzaq Al Obaidly, assistant commander-in-chief for quality and excellence, said that the 15 services are part of 33 services provided by Dubai Police.
As many as 15 public services by Dubai Police will not be provided in person, except in three stations, starting January 2, 2020. They will be offered only online.
The 15 services will be available on the Dubai Police app or other smart channels. The services pertain to reporting bounced cheques, lost and found enquiries, requests for report of traffic accidents without injuries, reports of traffic accident against the unknown, replacement of lost traffic accident reports, requests to release impounded vehicles, requests to pay fees for impounded vehicle, police clearance certificates, lost documents certificates, traffic fines clearance, to whomever it may concern certificates, work permits at night, detainee visit requests and traffic fines payment.
Major-General Dr Abdul Qudoos Abdul Razzaq Al Obaidly, assistant commander-in-chief for quality and excellence, said that the 15 services are part of 33 services provided by Dubai Police.
#Saudi Crown Prince risks destroying his own script | Financial Times
Saudi Crown Prince risks destroying his own script | Financial Times:
When Prince Mohammed bin Salman announced his plans to launch an initial public offering for Saudi Aramco, he said taking the world’s biggest oil company public would create “more transparency”. In theory, he was right. A well-managed IPO should subject the kingdom’s national champion to scrutiny like never before, forcing it to open its books and become accountable to outside shareholders. Three years on, Prince Mohammed, the headstrong de facto leader of the kingdom, is destroying his own script.
The Financial Times reported last week that the government is pressing wealthy Saudis to become cornerstone investors as part of a plan to achieve the $2tn valuation coveted by the Crown Prince. There is nothing unusual about securing anchor investors ahead of an IPO. But the fear is the heir apparent is determined to dictate the terms of the partial privatisation rather than leave it to market forces. The Saudi government denied putting pressure on families or individuals. Saying no to Prince Mohammed, however, would not be an easy option even if there were no coercion, given his propensity to detain or silence critics and rivals.
When Prince Mohammed bin Salman announced his plans to launch an initial public offering for Saudi Aramco, he said taking the world’s biggest oil company public would create “more transparency”. In theory, he was right. A well-managed IPO should subject the kingdom’s national champion to scrutiny like never before, forcing it to open its books and become accountable to outside shareholders. Three years on, Prince Mohammed, the headstrong de facto leader of the kingdom, is destroying his own script.
The Financial Times reported last week that the government is pressing wealthy Saudis to become cornerstone investors as part of a plan to achieve the $2tn valuation coveted by the Crown Prince. There is nothing unusual about securing anchor investors ahead of an IPO. But the fear is the heir apparent is determined to dictate the terms of the partial privatisation rather than leave it to market forces. The Saudi government denied putting pressure on families or individuals. Saying no to Prince Mohammed, however, would not be an easy option even if there were no coercion, given his propensity to detain or silence critics and rivals.
#AbuDhabi launches freehold residential project in financial free zone - Reuters
Abu Dhabi launches freehold residential project in financial free zone - Reuters:
Privately owned Webridge Properties, in partnership with Mubadala Investment Co, has launched the first freehold residential project in Abu Dhabi’s financial free zone.
Abu Dhabi this year has made changes to its real estate laws allowing foreign investors to own freehold property in designated zones.
The Al Maryah island, home to Abu Dhabi’s financial free zone currently has only commercial properties such as hotels, retailers, offices and the Cleveland Clinic, where hundreds of foreign nationals work.
Privately owned Webridge Properties, in partnership with Mubadala Investment Co, has launched the first freehold residential project in Abu Dhabi’s financial free zone.
Abu Dhabi this year has made changes to its real estate laws allowing foreign investors to own freehold property in designated zones.
The Al Maryah island, home to Abu Dhabi’s financial free zone currently has only commercial properties such as hotels, retailers, offices and the Cleveland Clinic, where hundreds of foreign nationals work.
Oil Steady as Investors Weigh Trade Hope Against #Saudi Recovery - Bloomberg
Oil Steady as Investors Weigh Trade Hope Against Saudi Recovery - Bloomberg:
Oil was steady as investors weighed prospects of a thaw in the U.S.-China trade war against indications Saudi Arabia is recovering quicker than expected from the biggest attacks ever on its energy industry.
Futures rose 0.4% in New York after sliding 3.7% over the previous two sessions. President Donald Trump said Wednesday that a deal with Beijing could happen “sooner than you think,” offering a glimmer of hope for global oil demand. Saudi Arabia has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the matter, beating its own target by about a week.
Oil was steady as investors weighed prospects of a thaw in the U.S.-China trade war against indications Saudi Arabia is recovering quicker than expected from the biggest attacks ever on its energy industry.
Futures rose 0.4% in New York after sliding 3.7% over the previous two sessions. President Donald Trump said Wednesday that a deal with Beijing could happen “sooner than you think,” offering a glimmer of hope for global oil demand. Saudi Arabia has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the matter, beating its own target by about a week.
#Dubai’s Desperate Realtors Told Not to Hound Clients at Showcase - Bloomberg
Dubai’s Desperate Realtors Told Not to Hound Clients at Showcase - Bloomberg:
Gone are the days of dancing fountains, sky gardens and scuffles for the latest outlandish project. Dubai’s property showcase is a much more subdued affair this year.
As the city’s real estate sector suffers its worst run since the 2009 global crisis, Cityscape Global -- the emirate’s largest annual real estate conference -- is also adjusting to the new reality.
Some of Dubai’s flagship developers such as Emaar Properties PJSC -- builder of the world’s tallest tower -- and Damac Properties that built U.S. President Donald Trump’s golf resort in the emirate -- were notably absent from the event that started Wednesday. Many of those that did show up -- such as Nakheel PJSC, which built the palm-shaped islands and teetered on the brink of default almost a decade ago -- peddled existing developments.
Gone are the days of dancing fountains, sky gardens and scuffles for the latest outlandish project. Dubai’s property showcase is a much more subdued affair this year.
As the city’s real estate sector suffers its worst run since the 2009 global crisis, Cityscape Global -- the emirate’s largest annual real estate conference -- is also adjusting to the new reality.
Some of Dubai’s flagship developers such as Emaar Properties PJSC -- builder of the world’s tallest tower -- and Damac Properties that built U.S. President Donald Trump’s golf resort in the emirate -- were notably absent from the event that started Wednesday. Many of those that did show up -- such as Nakheel PJSC, which built the palm-shaped islands and teetered on the brink of default almost a decade ago -- peddled existing developments.
#UAE reports surplus in consolidated government finances | ZAWYA MENA Edition
UAE reports surplus in consolidated government finances | ZAWYA MENA Edition:
UAE reported a surplus of AED49.42 billion in consolidated government finances during H1 2019, a growth of 35.4 percent on the comparable period in 2018, figures revealed by the Ministry of Finance indicate.
The growth is driven by a significant rise in revenues from January through June to AED249.87 billion, with expenses standing at AED200.45 billion.
The largest share of revenues came from 'other sources' , amounting to AED132.63 billion since the beginning of the year until the end of June against AED127.75 billion on the comparable period of 2018.
UAE reported a surplus of AED49.42 billion in consolidated government finances during H1 2019, a growth of 35.4 percent on the comparable period in 2018, figures revealed by the Ministry of Finance indicate.
The growth is driven by a significant rise in revenues from January through June to AED249.87 billion, with expenses standing at AED200.45 billion.
The largest share of revenues came from 'other sources' , amounting to AED132.63 billion since the beginning of the year until the end of June against AED127.75 billion on the comparable period of 2018.
U.S. slaps new sanctions on Chinese entities over #Iran oil - Reuters
U.S. slaps new sanctions on Chinese entities over Iran oil - Reuters:
The United States is imposing new sanctions on certain Chinese entities and people who it accuses of knowingly transferring oil from Iran in violation of Washington’s curbs on Tehran, U.S. Secretary of State Mike Pompeo said on Wednesday.
The U.S. Treasury Department announced that it placing sanctions on five Chinese nationals and six entities, including two Cosco Shipping Corporation subsidiaries.
“And we are telling China, and all nations: know that we will sanction every violation,” Pompeo said at a conference on the sidelines of the United Nations General Assembly in New York.
The United States is imposing new sanctions on certain Chinese entities and people who it accuses of knowingly transferring oil from Iran in violation of Washington’s curbs on Tehran, U.S. Secretary of State Mike Pompeo said on Wednesday.
The U.S. Treasury Department announced that it placing sanctions on five Chinese nationals and six entities, including two Cosco Shipping Corporation subsidiaries.
“And we are telling China, and all nations: know that we will sanction every violation,” Pompeo said at a conference on the sidelines of the United Nations General Assembly in New York.
MIDEAST STOCKS- #Saudi gains as oil output recovers; other markets mixed - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi gains as oil output recovers; other markets mixed - Agricultural Commodities - Reuters:
Saudi Arabia’s key stock index rose 0.2%, with Al Rjahi Bank gaining 1%, while Sahara International Petrochemical (Sipchem) advanced 3.4% after its board approved a higher first-half dividend compared to a year earlier.
Other petrochemical stocks also increased after they said feedstock supplies from Saudi Aramco (IPO-ARAM.SE) returned to normal. Saudi Kayan Petrochemical added 1.2% and Rabigh Refining And Petrochemical climbed 0.3%.
Qatar traded 0.1% higher, with Mesaieed Petrochemical Holding rising 2.3%, while Qatar Islamic Bank gained 0.5%.
Rating agency Moody’s on Tuesday said the outlook for Qatar’s banking sector remained stable as infrastructure spending drives economic growth.
Saudi Arabia’s key stock index rose 0.2%, with Al Rjahi Bank gaining 1%, while Sahara International Petrochemical (Sipchem) advanced 3.4% after its board approved a higher first-half dividend compared to a year earlier.
Other petrochemical stocks also increased after they said feedstock supplies from Saudi Aramco (IPO-ARAM.SE) returned to normal. Saudi Kayan Petrochemical added 1.2% and Rabigh Refining And Petrochemical climbed 0.3%.
Qatar traded 0.1% higher, with Mesaieed Petrochemical Holding rising 2.3%, while Qatar Islamic Bank gained 0.5%.
Rating agency Moody’s on Tuesday said the outlook for Qatar’s banking sector remained stable as infrastructure spending drives economic growth.
OPEC's Barkindo says quick #Saudi response was key to curbing volatility - Reuters
OPEC's Barkindo says quick Saudi response was key to curbing volatility - Reuters:
Saudi Arabia’s quick moves to restore output have been crucial to curbing oil price volatility after the global oil market had been shaken up following the attacks on some of its facilities, OPEC Secretary General Mohammed Barkindo said on Thursday.
Barkindo told an energy conference in Kazakhstan that an extraordinary meeting of OPEC members and fellow oil exporters was not on the cards as Saudi Arabia has restored the bulk of its supply and the incident was “behind us”.
The group remains focused on maintaining oil price stability and “will do whatever it takes to insulate oil from politics”, he said.
Saudi Arabia’s quick moves to restore output have been crucial to curbing oil price volatility after the global oil market had been shaken up following the attacks on some of its facilities, OPEC Secretary General Mohammed Barkindo said on Thursday.
Barkindo told an energy conference in Kazakhstan that an extraordinary meeting of OPEC members and fellow oil exporters was not on the cards as Saudi Arabia has restored the bulk of its supply and the incident was “behind us”.
The group remains focused on maintaining oil price stability and “will do whatever it takes to insulate oil from politics”, he said.
#Saudi attacks unlikely to have major impact on LNG supply - IEA - Reuters
Saudi attacks unlikely to have major impact on LNG supply - IEA - Reuters:
Recent attacks on Saudi Arabia’s oil facilities are unlikely to have a major immediate impact on the supply of liquefied natural gas, a senior official at the International Energy Agency (IEA) said at a press briefing on Thursday.
But if the security situation worsens in the Middle East, in particular the Strait of Hormuz, then it may hit LNG supply from Qatar and the United Arab Emirates, said Keisuke Sadamori, director of IEA’S Energy Markets and Security division.
The share of Qatar and UAE in global trade is about one quarter, he said.
Recent attacks on Saudi Arabia’s oil facilities are unlikely to have a major immediate impact on the supply of liquefied natural gas, a senior official at the International Energy Agency (IEA) said at a press briefing on Thursday.
But if the security situation worsens in the Middle East, in particular the Strait of Hormuz, then it may hit LNG supply from Qatar and the United Arab Emirates, said Keisuke Sadamori, director of IEA’S Energy Markets and Security division.
The share of Qatar and UAE in global trade is about one quarter, he said.
Tokyo bourse owner feels #Saudi Aramco IPO plans intact -Jiji - Reuters
Tokyo bourse owner feels Saudi Aramco IPO plans intact -Jiji - Reuters:
Japan Exchange Group, owner of the Tokyo Stock Exchange, has contacted Saudi Aramco and feels the listing plan for the world’s largest oil company remains intact, Japan’s Jiji Press quoted CEO Akira Kiyota as saying.
Kiyota said Aramco officials were planning to visit Japan in October and a meeting with them was possible, Jiji reported on Thursday.
Saudi Arabia is unlikely to list state-owned Aramco this year after attacks this month on its facilities, sources told Reuters this week.
Japan Exchange Group, owner of the Tokyo Stock Exchange, has contacted Saudi Aramco and feels the listing plan for the world’s largest oil company remains intact, Japan’s Jiji Press quoted CEO Akira Kiyota as saying.
Kiyota said Aramco officials were planning to visit Japan in October and a meeting with them was possible, Jiji reported on Thursday.
Saudi Arabia is unlikely to list state-owned Aramco this year after attacks this month on its facilities, sources told Reuters this week.
Oil slips on weak demand outlook, returning #Saudi supply - Reuters
Oil slips on weak demand outlook, returning Saudi supply - Reuters:
Oil prices edged lower on Thursday, extending losses from the previous two sessions, as Saudi Arabia quickly regained production volumes after an attack on its oil facilities and amid increasing signs of slowing demand.
Brent crude LCOc1 futures were at $62.36 a barrel, down 3 cents, or 0.1%, from the previous close, by 0659 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were 9 cents lower, or 0.2%, to $56.40 a barrel.
Brent and WTI prices have dropped 3.7% and 3.8%, respectively, since their close on Monday, weighed down by a surprise 2.4 million-barrel build in U.S. crude inventories last week, and a faster-than-expected recovery of Saudi output capacity after the Sept. 14 attacks on two of its oil processing plants.
Oil prices edged lower on Thursday, extending losses from the previous two sessions, as Saudi Arabia quickly regained production volumes after an attack on its oil facilities and amid increasing signs of slowing demand.
Brent crude LCOc1 futures were at $62.36 a barrel, down 3 cents, or 0.1%, from the previous close, by 0659 GMT.
U.S. West Texas Intermediate (WTI) crude futures CLc1 were 9 cents lower, or 0.2%, to $56.40 a barrel.
Brent and WTI prices have dropped 3.7% and 3.8%, respectively, since their close on Monday, weighed down by a surprise 2.4 million-barrel build in U.S. crude inventories last week, and a faster-than-expected recovery of Saudi output capacity after the Sept. 14 attacks on two of its oil processing plants.
Wednesday, 25 September 2019
Oil Declines as Market Returns Focus to Saudi Production Return - Bloomberg
Oil Declines as Market Returns Focus to Saudi Production Return - Bloomberg:
Crude declined to the lowest since Saudi Arabia’s oil industry suffered devastating attacks as investors gauged the kingdom’s efforts to restore production.
Futures in New York settled down 1.4% to the lowest since before the Sept. 14 bombardment of Saudi oil installations. State oil producer Aramco has boosted total capacity to more than 11 million barrels a day, according to people with knowledge of the situation, a week earlier than forecast.
The “Saudis seem to be getting their output back on track,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Connecticut. “What we’ve given back is the geopolitical premium.”
West Texas Intermediate for November delivery settled 1.4% lower at $56.49 a barrel on the New York Mercantile Exchange. Brent for the same month closed down 1.1% to $62.39 on the ICE Futures Europe Exchange and traded at a $5.90 premium to WTI.
Crude declined to the lowest since Saudi Arabia’s oil industry suffered devastating attacks as investors gauged the kingdom’s efforts to restore production.
Futures in New York settled down 1.4% to the lowest since before the Sept. 14 bombardment of Saudi oil installations. State oil producer Aramco has boosted total capacity to more than 11 million barrels a day, according to people with knowledge of the situation, a week earlier than forecast.
The “Saudis seem to be getting their output back on track,” said Gene McGillian, a senior analyst and broker at Tradition Energy in Connecticut. “What we’ve given back is the geopolitical premium.”
West Texas Intermediate for November delivery settled 1.4% lower at $56.49 a barrel on the New York Mercantile Exchange. Brent for the same month closed down 1.1% to $62.39 on the ICE Futures Europe Exchange and traded at a $5.90 premium to WTI.
U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters
U.S. oil activity slumps amid rising price uncertainty: Fed survey - Reuters:
U.S. oil and gas activity in some of the largest producing regions is declining, led by a weakening oilfield services sector as producers cut spending, according to an energy survey released on Wednesday by the Federal Reserve Bank of Dallas.
The Fed’s energy business activity index fell to negative 7.4 in the third quarter, the worst reading since early 2016. Activity in the services sector slumped by more than 28 points to negative 21.8.
Although oil production rose, service firms reported declines in activity, a sign that companies continue to do more with less. The equipment utilization index fell by 27 points to negative 24 for the quarter, the lowest reading since 2016, according to the report, which surveyed 163 energy firms this month in Texas, southern New Mexico and northern Louisiana.
U.S. oil and gas activity in some of the largest producing regions is declining, led by a weakening oilfield services sector as producers cut spending, according to an energy survey released on Wednesday by the Federal Reserve Bank of Dallas.
The Fed’s energy business activity index fell to negative 7.4 in the third quarter, the worst reading since early 2016. Activity in the services sector slumped by more than 28 points to negative 21.8.
Although oil production rose, service firms reported declines in activity, a sign that companies continue to do more with less. The equipment utilization index fell by 27 points to negative 24 for the quarter, the lowest reading since 2016, according to the report, which surveyed 163 energy firms this month in Texas, southern New Mexico and northern Louisiana.
#SaudiArabia’s oil output bounces back after attacks | Financial Times
Saudi Arabia’s oil output bounces back after attacks | Financial Times:
Saudi Arabia’s oil production has rebounded to more than 8m barrels a day following the attacks on energy infrastructure earlier this month, with the faster than expected recovery helping to push the oil price down below $62 on Wednesday.
The rise, shared with the Financial Times by two people briefed on the situation and corroborated by satellite heat maps of output from the fields, marks the restoration or substitution of more than three-quarters of lost production. It still leaves the kingdom’s output at least 1.5m barrels a day below the level it was before the attacks.
The recovery is quicker than analysts had been anticipating, with state oil company Saudi Aramco acting to fire up spare capacity at offshore fields and bring production back online, while restoring processing capacity at one of the damaged facilities.
Saudi Arabia’s oil production has rebounded to more than 8m barrels a day following the attacks on energy infrastructure earlier this month, with the faster than expected recovery helping to push the oil price down below $62 on Wednesday.
The rise, shared with the Financial Times by two people briefed on the situation and corroborated by satellite heat maps of output from the fields, marks the restoration or substitution of more than three-quarters of lost production. It still leaves the kingdom’s output at least 1.5m barrels a day below the level it was before the attacks.
The recovery is quicker than analysts had been anticipating, with state oil company Saudi Aramco acting to fire up spare capacity at offshore fields and bring production back online, while restoring processing capacity at one of the damaged facilities.
Oil Holds Declines After U.S. Crude Stocks Rise for Second Week - Bloomberg
Oil Holds Declines After U.S. Crude Stocks Rise for Second Week - Bloomberg:
Oil held declines after the U.S. government reported a build in nationwide crude inventories for the second consecutive week.
The Energy Information Administration said crude supplies rose 2.41 million barrels last week. At the Cushing, Oklahoma, storage hub, inventories rose 2.26 million barrels, the most since February and the first advance in 12 weeks.
West Texas Intermediate for November delivery dropped $1.41, or 2.6%, to $55.76 a barrel on the New York Mercantile Exchange at 10:36 a.m. local time. Brent for the same month slipped $1.67, or 2.7%, to $61.42 a barrel on the ICE Futures Europe Exchange, and traded at a $5.66 premium to WTI.
Oil held declines after the U.S. government reported a build in nationwide crude inventories for the second consecutive week.
The Energy Information Administration said crude supplies rose 2.41 million barrels last week. At the Cushing, Oklahoma, storage hub, inventories rose 2.26 million barrels, the most since February and the first advance in 12 weeks.
West Texas Intermediate for November delivery dropped $1.41, or 2.6%, to $55.76 a barrel on the New York Mercantile Exchange at 10:36 a.m. local time. Brent for the same month slipped $1.67, or 2.7%, to $61.42 a barrel on the ICE Futures Europe Exchange, and traded at a $5.66 premium to WTI.
Middle Eastern Bond Sales Surge as Yields Hit Record Lows - Bloomberg
Middle Eastern Bond Sales Surge as Yields Hit Record Lows - Bloomberg:
Middle Eastern and North African borrowers are issuing Eurobonds at a record pace as global monetary easing prompts them to exploit the lowest funding costs they’ve ever experienced.
This week Abu Dhabi sold $10 billion of bonds in its first international deal in two years, while Bahrain issued $2 billion of conventional and Shariah-compliant debt.
Sovereigns and companies from the region have raised around $85 billion of dollar and euro bonds this year. Saudi Aramco and Qatar have been the biggest issuers, while Egypt, Oman and Saudi Arabia have also come to market. The latter could sell more Eurobonds before the end of 2019, according to a research note from Morgan Stanley strategist Jaiparan Khurana. He also said Dubai may consider its first deal since late 2016.
Middle Eastern and North African borrowers are issuing Eurobonds at a record pace as global monetary easing prompts them to exploit the lowest funding costs they’ve ever experienced.
This week Abu Dhabi sold $10 billion of bonds in its first international deal in two years, while Bahrain issued $2 billion of conventional and Shariah-compliant debt.
Sovereigns and companies from the region have raised around $85 billion of dollar and euro bonds this year. Saudi Aramco and Qatar have been the biggest issuers, while Egypt, Oman and Saudi Arabia have also come to market. The latter could sell more Eurobonds before the end of 2019, according to a research note from Morgan Stanley strategist Jaiparan Khurana. He also said Dubai may consider its first deal since late 2016.
#Saudi Samba Financial Group sells $1 bln five-year bonds - Reuters
Saudi Samba Financial Group sells $1 bln five-year bonds - Reuters:
Saudi Arabia’s Samba Financial Group is set to raise $1 billion in five-year bonds, a document issued by one of the banks on the deal showed on Wednesday.
The bank, which ranks behind National Commercial Bank (NCB) and al Rajhi among Saudi banks by total assets, received orders in excess of $3.25 billion for the issuance, the document said.
The deal comes amid a flurry of international debt issuance from the Gulf region, as governments and companies take advantage of low global rates to raise cash amid low oil prices.
Saudi Arabia’s Samba Financial Group is set to raise $1 billion in five-year bonds, a document issued by one of the banks on the deal showed on Wednesday.
The bank, which ranks behind National Commercial Bank (NCB) and al Rajhi among Saudi banks by total assets, received orders in excess of $3.25 billion for the issuance, the document said.
The deal comes amid a flurry of international debt issuance from the Gulf region, as governments and companies take advantage of low global rates to raise cash amid low oil prices.
MIDEAST STOCKS-Egypt recovers some losses; #Saudi loses momentum - Reuters
MIDEAST STOCKS-Egypt recovers some losses; Saudi loses momentum - Reuters:
Egyptian stocks closed on a positive
note on Wednesday, recovering some losses from the previous
sessions, while Saudi retreated amid falling oil prices on the
backdrop of global political uncertainty.
Egypt's blue-chip index rebounded sharply to close
3.2% higher, snapping an eight-session losing streak, with 29
out of 30 stocks on the index rising.
The country's largest lender, Commercial International Bank
, jumped 5%, while Eastern Company advanced
4.7%.
Exchange data showed foreign investors were net buyers of
the stocks.
Egyptian stocks closed on a positive
note on Wednesday, recovering some losses from the previous
sessions, while Saudi retreated amid falling oil prices on the
backdrop of global political uncertainty.
Egypt's blue-chip index rebounded sharply to close
3.2% higher, snapping an eight-session losing streak, with 29
out of 30 stocks on the index rising.
The country's largest lender, Commercial International Bank
, jumped 5%, while Eastern Company advanced
4.7%.
Exchange data showed foreign investors were net buyers of
the stocks.
#Saudi Oil Capacity Recovers Faster Than Expected From Attack - Bloomberg
Saudi Oil Capacity Recovers Faster Than Expected From Attack - Bloomberg:
Saudi Arabia is recovering faster than expected from the biggest attacks ever on its oil industry, beating its own target for restoring capacity by about a week.
State oil producer Saudi Aramco has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the situation. The news helped to push crude down by as much as 1.8% in London as the kingdom’s efforts to resolve the worst disruption of output in history help avert a global supply crisis.
The attacks this month by more than two dozen missiles and drones threw into doubt Saudi Arabia’s role as an anchor of stability in global energy markets and its ability to convince investors to buy shares in Aramco’s planned initial public offering. The U.S. blamed Iran for the strikes, the latest in a string of tanker bombings and pipeline assaults since May. Iran denied responsibility for the latest attacks which were claimed by Houthi rebels that the Saudis are battling in Yemen.
Saudi Arabia is recovering faster than expected from the biggest attacks ever on its oil industry, beating its own target for restoring capacity by about a week.
State oil producer Saudi Aramco has boosted total production capacity to more than 11 million barrels a day, according to people with knowledge of the situation. The news helped to push crude down by as much as 1.8% in London as the kingdom’s efforts to resolve the worst disruption of output in history help avert a global supply crisis.
The attacks this month by more than two dozen missiles and drones threw into doubt Saudi Arabia’s role as an anchor of stability in global energy markets and its ability to convince investors to buy shares in Aramco’s planned initial public offering. The U.S. blamed Iran for the strikes, the latest in a string of tanker bombings and pipeline assaults since May. Iran denied responsibility for the latest attacks which were claimed by Houthi rebels that the Saudis are battling in Yemen.
Aramco Is Said Set to Formally Announce Listing Plan Next Month - Bloomberg
Aramco Is Said Set to Formally Announce Listing Plan Next Month - Bloomberg:
Saudi Aramco is planning to formally announce the kickoff of its initial public offering next month, people with knowledge of the matter said.
The oil giant aims to announce its intention to float around Oct. 20, the people said, asking not to be identified because the information is private. The potential listing on the Saudi stock exchange could take place as early as November, though the timetable hasn’t been finalized, one of the people said.
Aramco is pushing ahead with its IPO preparations as the kingdom vows to bring oil production back to its full capacity by the end of the month after attacks on its facilities disabled 5% of global supply. The company’s production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week, people with knowledge of the situation said on Wednesday.
Saudi Aramco is planning to formally announce the kickoff of its initial public offering next month, people with knowledge of the matter said.
The oil giant aims to announce its intention to float around Oct. 20, the people said, asking not to be identified because the information is private. The potential listing on the Saudi stock exchange could take place as early as November, though the timetable hasn’t been finalized, one of the people said.
Aramco is pushing ahead with its IPO preparations as the kingdom vows to bring oil production back to its full capacity by the end of the month after attacks on its facilities disabled 5% of global supply. The company’s production capacity now exceeds 11 million barrels a day, beating a self-imposed deadline by about a week, people with knowledge of the situation said on Wednesday.
Fitch Warns on $23 Billion of #Dubai Inc. Debt Held by Banks - Bloomberg
Fitch Warns on $23 Billion of Dubai Inc. Debt Held by Banks - Bloomberg:
A “significant portion” of $23 billion in loans made to Dubai government-related companies maturing at the end of 2021 may need to be restructured -- again, according to Fitch Ratings Ltd.
Banks in the United Arab Emirates -- still suffering the fallout of Dubai’s 2010 property crisis -- are at risk once again due to falling home prices and non-performing loans, the ratings agency said in a report on Tuesday.
Oversupply, weaker consumer sentiment due to lower oil prices and a less supportive economic environment are all impacting prices, according to Fitch. Foreign buyers have also been deterred by the U.A.E. dirham appreciation and geopolitical tensions.
A “significant portion” of $23 billion in loans made to Dubai government-related companies maturing at the end of 2021 may need to be restructured -- again, according to Fitch Ratings Ltd.
Banks in the United Arab Emirates -- still suffering the fallout of Dubai’s 2010 property crisis -- are at risk once again due to falling home prices and non-performing loans, the ratings agency said in a report on Tuesday.
Oversupply, weaker consumer sentiment due to lower oil prices and a less supportive economic environment are all impacting prices, according to Fitch. Foreign buyers have also been deterred by the U.A.E. dirham appreciation and geopolitical tensions.
#Saudi Aramco seeks project finance loan of more than $1 billion: sources - Reuters
Saudi Aramco seeks project finance loan of more than $1 billion: sources - Reuters:
Saudi Aramco has asked banks to submit proposals for a project finance loan of more than $1 billion, two sources with direct knowledge of the matter said.
The state oil company’s request for proposals (RFPs) was sent this week, one of the sources said.
It was not immediately clear from the RFP the specific nature of the projects the funds will be used for, the sources said.
Saudi Aramco has asked banks to submit proposals for a project finance loan of more than $1 billion, two sources with direct knowledge of the matter said.
The state oil company’s request for proposals (RFPs) was sent this week, one of the sources said.
It was not immediately clear from the RFP the specific nature of the projects the funds will be used for, the sources said.
Government measures will promote long-term growth of #Dubai real estate market: CEO of JLL MEA | ZAWYA MENA Edition
Government measures will promote long-term growth of Dubai real estate market: CEO of JLL MEA | ZAWYA MENA Edition:
With the market abuzz with commentary about excessive supply hurting property prices, Dubai’s real estate sector has begun to realise the need to control supply, a top executive of global real estate consulting firm JLL said.
“There has been a growing awareness that more needs to be done to both stimulate demand and control supply if a more balanced real estate market is to be created,” said Thierry Delvaux, CEO of JLL Middle East and Africa (MEA) in an email interview.
He said several steps taken by the government this year will contribute to this objective and help promote the long-term maturity and growth of the city’s real estate market.
With the market abuzz with commentary about excessive supply hurting property prices, Dubai’s real estate sector has begun to realise the need to control supply, a top executive of global real estate consulting firm JLL said.
“There has been a growing awareness that more needs to be done to both stimulate demand and control supply if a more balanced real estate market is to be created,” said Thierry Delvaux, CEO of JLL Middle East and Africa (MEA) in an email interview.
He said several steps taken by the government this year will contribute to this objective and help promote the long-term maturity and growth of the city’s real estate market.
Egypt to sell stakes in 5 or 6 state companies by end-June 2020-PM - Agricultural Commodities - Reuters
Egypt to sell stakes in 5 or 6 state companies by end-June 2020-PM - Agricultural Commodities - Reuters:
Egypt will offer stakes in five or six state-owned enterprises by the end of June 2020, Prime Minister Mostafa Madbouly said.
The share offerings will be made “to encourage the private sector and citizens to invest,” he said in a statement late on Tuesday.
Egypt will offer stakes in five or six state-owned enterprises by the end of June 2020, Prime Minister Mostafa Madbouly said.
The share offerings will be made “to encourage the private sector and citizens to invest,” he said in a statement late on Tuesday.
Sanctions-hit Iran props up economy with bartering, secret deals - Reuters
Sanctions-hit Iran props up economy with bartering, secret deals - Reuters:
Washington’s policy of applying “maximum pressure” on Iran with wide-ranging sanctions has shredded the country’s oil revenues, sent its economy into recession and devalued its national currency.
Yet Iran remains defiant in the face of U.S. efforts to compel it to accept tougher restrictions on its nuclear program and scale back support for proxy wars across the Middle East.
Iranian officials, business people and analysts say the country is staying on its feet by stepping up exports of non-oil goods and increasing tax revenues, but most importantly resorting to bartering, smuggling and back-room deals.
Washington’s policy of applying “maximum pressure” on Iran with wide-ranging sanctions has shredded the country’s oil revenues, sent its economy into recession and devalued its national currency.
Yet Iran remains defiant in the face of U.S. efforts to compel it to accept tougher restrictions on its nuclear program and scale back support for proxy wars across the Middle East.
Iranian officials, business people and analysts say the country is staying on its feet by stepping up exports of non-oil goods and increasing tax revenues, but most importantly resorting to bartering, smuggling and back-room deals.
Oil falls on Trump's bearish China trade comments - Reuters
Oil falls on Trump's bearish China trade comments - Reuters:
Oil prices fell for a second day on worries that fuel demand could fall after U.S. President Donald Trump doused recent optimism over China-U.S. trade talks, at a time of rising U.S. crude oil stockpiles.
Brent crude futures LCOc1 were down $1.03 cents to $62.07 a barrel by 0811 GMT on Wednesday, erasing all gains made after an attack on Saudi oil facilities sent the benchmark up around 20% last week.
Nevertheless, the benchmark remains on track for its first monthly gain since June.
U.S. West Texas Intermediate crude CLc1 dropped to $56.49 a barrel, down 80 cents.
Oil prices fell for a second day on worries that fuel demand could fall after U.S. President Donald Trump doused recent optimism over China-U.S. trade talks, at a time of rising U.S. crude oil stockpiles.
Brent crude futures LCOc1 were down $1.03 cents to $62.07 a barrel by 0811 GMT on Wednesday, erasing all gains made after an attack on Saudi oil facilities sent the benchmark up around 20% last week.
Nevertheless, the benchmark remains on track for its first monthly gain since June.
U.S. West Texas Intermediate crude CLc1 dropped to $56.49 a barrel, down 80 cents.
MIDEAST STOCKS-Most Gulf markets drop as global political uncertainty hits oil prices - Agricultural Commodities - Reuters
MIDEAST STOCKS-Most Gulf markets drop as global political uncertainty hits oil prices - Agricultural Commodities - Reuters:
Most major Gulf stock markets fell on Wednesday as oil prices eased, while investors offloaded risky bets after an impeachment inquiry was launched against U.S. President Donald Trump, stoking political uncertainty in the world’s largest economy.
Oil prices fell for a second session on worries that fuel demand could drop after Trump doused recent optimism over China-U.S. trade talks.
Both crude benchmarks fell to their lowest levels since before the attacks on Saudi Arabian oil facilities on Sept. 14.
Brent crude futures were down $1.03 cents at $62.07 a barrel, as of 0811 GMT, while U.S. West Texas Intermediate crude dropped to $56.49 a barrel.
Most major Gulf stock markets fell on Wednesday as oil prices eased, while investors offloaded risky bets after an impeachment inquiry was launched against U.S. President Donald Trump, stoking political uncertainty in the world’s largest economy.
Oil prices fell for a second session on worries that fuel demand could drop after Trump doused recent optimism over China-U.S. trade talks.
Both crude benchmarks fell to their lowest levels since before the attacks on Saudi Arabian oil facilities on Sept. 14.
Brent crude futures were down $1.03 cents at $62.07 a barrel, as of 0811 GMT, while U.S. West Texas Intermediate crude dropped to $56.49 a barrel.
Tuesday, 24 September 2019
Despite Climate Push, Oil May Still Be Needed for Decades - Bloomberg
Despite Climate Push, Oil May Still Be Needed for Decades - Bloomberg:
While global leaders meet in New York to discuss solutions to climate change, the U.S. government has offered a sober assessment of the world’s ability to wean itself off fossil fuels.
Although renewables will be the fastest-growing energy source through 2050, oil consumption will still be key to meeting energy demand for decades, according to a report released Tuesday by the Energy Information Administration. Fossil fuel use will keep climbing for the next 30 years, the report said.
“Even though you see a very aggressive change in renewables uptick, it is just not growing fast enough to meet the demand and we don’t see demand tapering off,” EIA Administrator Linda Capuano said in Washington.
While global leaders meet in New York to discuss solutions to climate change, the U.S. government has offered a sober assessment of the world’s ability to wean itself off fossil fuels.
Although renewables will be the fastest-growing energy source through 2050, oil consumption will still be key to meeting energy demand for decades, according to a report released Tuesday by the Energy Information Administration. Fossil fuel use will keep climbing for the next 30 years, the report said.
“Even though you see a very aggressive change in renewables uptick, it is just not growing fast enough to meet the demand and we don’t see demand tapering off,” EIA Administrator Linda Capuano said in Washington.
Oil falls 2% after Trump ratchets up U.S.-China trade war - Reuters
Oil falls 2% after Trump ratchets up U.S.-China trade war - Reuters:
Oil prices fell 2% on Tuesday as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled amid ongoing negotiations, a grim sign for oil demand growth.
Trump sharply criticized what he called China’s unfair trade practices in a speech at the United Nations General Assembly, saying he would not accept a “bad deal” between the United States and China.
“He ratcheted up the U.S.-China trade war again,” said John Kilduff, a partner at Again Capital LLC in New York. “It wasn’t a constructive tone in trying to get that resolved, and we know how sensitive oil prices are to the back and forth.”
Brent crude futures LCOc1 fell $1.35, or 2%, to $63.42 a barrel by 12:08 p.m. CDT (1708 GMT). West Texas Intermediate futures CLc1 were down $1.12, or 1.9%, at $57.52 a barrel.
Oil prices fell 2% on Tuesday as U.S. President Donald Trump fanned market fears that Sino-American trade tensions are far from settled amid ongoing negotiations, a grim sign for oil demand growth.
Trump sharply criticized what he called China’s unfair trade practices in a speech at the United Nations General Assembly, saying he would not accept a “bad deal” between the United States and China.
“He ratcheted up the U.S.-China trade war again,” said John Kilduff, a partner at Again Capital LLC in New York. “It wasn’t a constructive tone in trying to get that resolved, and we know how sensitive oil prices are to the back and forth.”
Brent crude futures LCOc1 fell $1.35, or 2%, to $63.42 a barrel by 12:08 p.m. CDT (1708 GMT). West Texas Intermediate futures CLc1 were down $1.12, or 1.9%, at $57.52 a barrel.
#AbuDhabi Sells $10 Billion, Tapping Demand for Quality Bonds - Bloomberg
Abu Dhabi Sells $10 Billion, Tapping Demand for Quality Bonds - Bloomberg:
Abu Dhabi sold $10 billion of bonds in a three-part deal in its first international offering in two years as it takes advantage of relatively low borrowing costs.
The oil-rich emirate sold $3 billion of five-year fixed notes, $3 billion of notes due 2029 and $4 billion of 30-year notes.
The sovereign -- which boasts the third-highest grade from Moody’s Investors Service and S&P Global Ratings -- didn’t need to offer an extra premium to its yield curve to attract investors.
DETAILS OF ABU DHABI’S BOND SALE:
Abu Dhabi sold $10 billion of bonds in a three-part deal in its first international offering in two years as it takes advantage of relatively low borrowing costs.
The oil-rich emirate sold $3 billion of five-year fixed notes, $3 billion of notes due 2029 and $4 billion of 30-year notes.
The sovereign -- which boasts the third-highest grade from Moody’s Investors Service and S&P Global Ratings -- didn’t need to offer an extra premium to its yield curve to attract investors.
DETAILS OF ABU DHABI’S BOND SALE:
- Debt due 2024 at yield premium of 65 basis points more than Treasuries of similar maturity versus initial price thoughts of 80 basis points.
- Securities due 2029 at a spread of 85 basis points versus indicative pricing of about 100 basis points.
- And 2049 bonds at 110 basis points compared with an earlier guidance of 125 basis points.
#Bahrain Adds to Sale Mania With Dollar Offering of Its Own - Bloomberg
Bahrain Adds to Sale Mania With Dollar Offering of Its Own - Bloomberg:
Bahrain is tapping the international bond market about a year after it secured a bailout package from its wealthier neighbors.
The island kingdom won’t raise more than $2 billion from the sale of dollar-denominated debt, which includes Sharia-compliant securities due 2027 and a conventional bond due 2031, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. The deal may price today.
DETAILS OF BAHRAIN’S BOND OFFERING:
Bahrain is tapping the international bond market about a year after it secured a bailout package from its wealthier neighbors.
The island kingdom won’t raise more than $2 billion from the sale of dollar-denominated debt, which includes Sharia-compliant securities due 2027 and a conventional bond due 2031, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. The deal may price today.
DETAILS OF BAHRAIN’S BOND OFFERING:
- Sukuk due 2027 to yield around 4.75% versus initial price thoughts of between 4.875% and 5%
- Bond due 2031 to yield between 5.75% and 5.875% versus indicative price range of 5.875% to 6%
Mideast Stocks: Egyptian stocks slump on worries of more protests | ZAWYA MENA Edition
Mideast Stocks: Egyptian stocks slump on worries of more protests | ZAWYA MENA Edition:
Egypt stock markets extended their decline on Tuesday as foreign investors sold equities on fears of more protests after several of them broke out in Egyptian cities over the weekend.
Authorities rounded up more than 400 people in response to an outbreak of protests against President Abdel Fattah al-Sisi and security forces stepped up their presence in central Cairo, human rights monitors said on Monday.
The blue-chip stock index plunged 4.2%, its lowest since January, with 26 out of 30 stocks on the index seeing a fall. The country's blue-chip index has lost 10.7% so far this week, leaving it with a meagre 1% gain so far this year.
The broader stock index EGX 100 declined 3%, the most since March 2017.
Egypt stock markets extended their decline on Tuesday as foreign investors sold equities on fears of more protests after several of them broke out in Egyptian cities over the weekend.
Authorities rounded up more than 400 people in response to an outbreak of protests against President Abdel Fattah al-Sisi and security forces stepped up their presence in central Cairo, human rights monitors said on Monday.
The blue-chip stock index plunged 4.2%, its lowest since January, with 26 out of 30 stocks on the index seeing a fall. The country's blue-chip index has lost 10.7% so far this week, leaving it with a meagre 1% gain so far this year.
The broader stock index EGX 100 declined 3%, the most since March 2017.
#UAE remittances decline due to slow down in employment | ZAWYA MENA Edition
UAE remittances decline due to slow down in employment | ZAWYA MENA Edition:
Remittances from the UAE fell nearly eight per cent in the first-half of 2019 as both the quarters saw a decline due to a slowdown in employment, official data showed.
Central Bank data revealed that remittances fell from Dh87.92 billion in H1 2018 to Dh80.96 billion in the corresponding period this year. First-quarter remittances fell from Dh43.5 billion to Dh38.4 billion while second-quarter saw remittance declining from Dh44.42 billion to Dh42.55 billion.
"The annual growth rate of outward personal remittances during April-June 2019 was recorded at negative 4.2 per cent, a significant reduction compared to the growth for the same period in 2018 of 8.8 per cent. The slowdown in outward personal remittances is in line with the slowdown in employment," The Central Bank said.
Remittances from the UAE fell nearly eight per cent in the first-half of 2019 as both the quarters saw a decline due to a slowdown in employment, official data showed.
Central Bank data revealed that remittances fell from Dh87.92 billion in H1 2018 to Dh80.96 billion in the corresponding period this year. First-quarter remittances fell from Dh43.5 billion to Dh38.4 billion while second-quarter saw remittance declining from Dh44.42 billion to Dh42.55 billion.
"The annual growth rate of outward personal remittances during April-June 2019 was recorded at negative 4.2 per cent, a significant reduction compared to the growth for the same period in 2018 of 8.8 per cent. The slowdown in outward personal remittances is in line with the slowdown in employment," The Central Bank said.
#Saudi Aramco IPO unlikely to happen this year after oil attacks: sources - Reuters
Saudi Aramco IPO unlikely to happen this year after oil attacks: sources - Reuters:
Saudi Arabia is unlikely to list its state-owned oil giant Aramco this year after attacks this month on its facilities, two sources with direct knowledge of the company’s thinking said.
The initial public offering (IPO) of Aramco, the world’s largest oil company, is the pillar of Crown Prince Mohammed bin Salman’s economic reform agenda that aims to raise billions of dollars to help diversify the kingdom away from oil.
Aramco did not immediately respond to a request for comment. The sources declined to be identified because the information is not public.
Saudi Arabia is unlikely to list its state-owned oil giant Aramco this year after attacks this month on its facilities, two sources with direct knowledge of the company’s thinking said.
The initial public offering (IPO) of Aramco, the world’s largest oil company, is the pillar of Crown Prince Mohammed bin Salman’s economic reform agenda that aims to raise billions of dollars to help diversify the kingdom away from oil.
Aramco did not immediately respond to a request for comment. The sources declined to be identified because the information is not public.
Oil prices fall due to weak economic data, #Saudi output recovery - Reuters
Oil prices fall due to weak economic data, Saudi output recovery - Reuters:
Oil prices fell on Tuesday after weak manufacturing data from Europe and Japan focused market attention on a gloomy outlook for demand and as Saudi Arabia could restore oil output faster than anticipated following attacks last week.
Brent crude futures LCOc1 dropped 95 cents to $63.82 a barrel by 1106 GMT, while U.S. West Texas Intermediate futures CLc1 were at $57.91, down 73 cents.
“Financial data was anything but encouraging yesterday,” said Tamas Varga of oil brokerage PVM, pointing to sluggish manufacturing numbers in leading European economies and Japan.
Oil prices fell on Tuesday after weak manufacturing data from Europe and Japan focused market attention on a gloomy outlook for demand and as Saudi Arabia could restore oil output faster than anticipated following attacks last week.
Brent crude futures LCOc1 dropped 95 cents to $63.82 a barrel by 1106 GMT, while U.S. West Texas Intermediate futures CLc1 were at $57.91, down 73 cents.
“Financial data was anything but encouraging yesterday,” said Tamas Varga of oil brokerage PVM, pointing to sluggish manufacturing numbers in leading European economies and Japan.
MIDEAST STOCKS- #Saudi stocks gain on banks, petrochemicals - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks gain on banks, petrochemicals - Agricultural Commodities - Reuters:
Saudi Arabian stocks rose on Tuesday, boosted by banks and petrochemical firms and as more companies joined the FTSE Russell and the S&P Dow Jones emerging market indexes.
On Monday, Saudi stocks joined the FTSE Russell index in their fourth of eventual five tranches and the S&P Dow Jones index in the second and final phase.
Saudi stocks initially joined the two indexes as well as MSCI’s emerging markets index earlier this year.
Saudi’s index was up 0.5%, led by a 1% gain in Al Rajhi Bank and a 0.5% rise in Riyad Bank.
Saudi Arabian stocks rose on Tuesday, boosted by banks and petrochemical firms and as more companies joined the FTSE Russell and the S&P Dow Jones emerging market indexes.
On Monday, Saudi stocks joined the FTSE Russell index in their fourth of eventual five tranches and the S&P Dow Jones index in the second and final phase.
Saudi stocks initially joined the two indexes as well as MSCI’s emerging markets index earlier this year.
Saudi’s index was up 0.5%, led by a 1% gain in Al Rajhi Bank and a 0.5% rise in Riyad Bank.
Oil Slips on Signs of Returning #Saudi Output as Doubts Linger - Bloomberg
Oil Slips on Signs of Returning Saudi Output as Doubts Linger - Bloomberg:
Oil edged lower on signs Saudi Arabia is making progress in restoring lost output even as uncertainty remains about the kingdom’s ability to meet its timeline of a full return by the end of the month.
Futures dropped 0.6% in New York after rising 1% on Monday. Saudi Aramco is returning most of its domestic oil refineries to full capacity after cutting back on processing to meet the crude demands of customers, according to people familiar with the matter. U.S. stockpiles probably declined by 600,000 barrels last week, a Bloomberg survey showed.
Oil edged lower on signs Saudi Arabia is making progress in restoring lost output even as uncertainty remains about the kingdom’s ability to meet its timeline of a full return by the end of the month.
Futures dropped 0.6% in New York after rising 1% on Monday. Saudi Aramco is returning most of its domestic oil refineries to full capacity after cutting back on processing to meet the crude demands of customers, according to people familiar with the matter. U.S. stockpiles probably declined by 600,000 barrels last week, a Bloomberg survey showed.
In Conversation With Ambassador Anne Patterson - Bloomberg
In Conversation With Ambassador Anne Patterson - Bloomberg:
The President of the US-Qatar Business Council Ambassador Anne W. Patterson speaks with Bloomberg’s Jason Kelly at the Future of Investing on September 23, 2019 at Bloomberg Headquarters in New York. (Source: Bloomberg)
The President of the US-Qatar Business Council Ambassador Anne W. Patterson speaks with Bloomberg’s Jason Kelly at the Future of Investing on September 23, 2019 at Bloomberg Headquarters in New York. (Source: Bloomberg)
Hootan Yazhari, head of MENA and Global Frontier Markets at BofAML, on #Saudi Arabian Stocks, Oil - Bloomberg
Hootan Yazhari, head of MENA and Global Frontier Markets at BofAML, on Saudi Arabian Stocks, Oil - Bloomberg:
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and oil. Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes. Yazhari also discusses U.A.E. stocks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Hootan Yazhari, head of MENA and global frontier markets at Bank of America Merrill Lynch, talks about Saudi Arabian stocks and oil. Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes. Yazhari also discusses U.A.E. stocks on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Anand Raheja, CEO of Dar Al Arkan Real Estate Development Co., on #Saudi Arabian Property Market - Bloomberg
Anand Raheja, CEO of Dar Al Arkan Real Estate Development Co., on Saudi Arabian Property Market - Bloomberg:
Anand Raheja, chief executive officer of Dar Al Arkan Real Estate Development Co., a Saudi Arabian property company, talks about the outlook for the market and his business strategy. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Anand Raheja, chief executive officer of Dar Al Arkan Real Estate Development Co., a Saudi Arabian property company, talks about the outlook for the market and his business strategy. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Big Oil CEOs Talk Climate Change, Methane and Why They Need Gas - Bloomberg
Big Oil CEOs Talk Climate Change, Methane and Why They Need Gas - Bloomberg:
One of the opening events of Climate Week in New York offered a rare sight -- nine bosses of some of the world’s largest oil and gas companies in one room.
The occasion was the Oil and Gas Climate Initiative, an industry-supported organization whose members set targets to reduce methane emissions and gas flaring. Present Monday were the chief executive officers of companies including BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA. They took questions from reporters and activists.
One of the opening events of Climate Week in New York offered a rare sight -- nine bosses of some of the world’s largest oil and gas companies in one room.
The occasion was the Oil and Gas Climate Initiative, an industry-supported organization whose members set targets to reduce methane emissions and gas flaring. Present Monday were the chief executive officers of companies including BP Plc, Chevron Corp., Exxon Mobil Corp., Royal Dutch Shell Plc and Total SA. They took questions from reporters and activists.
Drake & Scull hires Shuaa to advise on debt restructuring -sources | ZAWYA MENA Edition
Drake & Scull hires Shuaa to advise on debt restructuring -sources | ZAWYA MENA Edition:
Drake & Scull International has hired Shuaa Capital to advise on its debt restructuring, two sources said.
Shuaa, part of Abu Dhabi Financial Group, has been appointed as adviser, the sources told Reuters declining to be named as the matter is not yet public.
Shuaa and Drake & Scull declined comment.
Drake & Scull International has hired Shuaa Capital to advise on its debt restructuring, two sources said.
Shuaa, part of Abu Dhabi Financial Group, has been appointed as adviser, the sources told Reuters declining to be named as the matter is not yet public.
Shuaa and Drake & Scull declined comment.
#Dubai's residential property values down 2.6% in Q3: ValuStrat | ZAWYA MENA Edition
Dubai's residential property values down 2.6% in Q3: ValuStrat | ZAWYA MENA Edition:
The residential properties across Dubai displayed an overall 11.2 per cent annual fall in capital values, with quarterly declines decelerating to 2.6 per cent, said a leading local consulting firm ValuStrat in its Dubai real estate review for third quarter 2019.
This downward trend resulted in 31.1% citywide capital value loss since the peaks of mid-2014. All established freehold locations monitored by the VPI witnessed price drops since the last quarter, ranging from 1.8% to 4.5%, stated ValuStrat Price Index (VPI).
On an annual basis, 3 out of 26 locations were more resilient to downward pressure and saw single-digit declines, villas in Palm Jumeirah and Emirates Hills, as well as apartments in Dubai Sports City, stated VPI, which is a valuation-based price index for Dubai’s residential capital values.
The residential properties across Dubai displayed an overall 11.2 per cent annual fall in capital values, with quarterly declines decelerating to 2.6 per cent, said a leading local consulting firm ValuStrat in its Dubai real estate review for third quarter 2019.
This downward trend resulted in 31.1% citywide capital value loss since the peaks of mid-2014. All established freehold locations monitored by the VPI witnessed price drops since the last quarter, ranging from 1.8% to 4.5%, stated ValuStrat Price Index (VPI).
On an annual basis, 3 out of 26 locations were more resilient to downward pressure and saw single-digit declines, villas in Palm Jumeirah and Emirates Hills, as well as apartments in Dubai Sports City, stated VPI, which is a valuation-based price index for Dubai’s residential capital values.
Breakingviews - Hong Kong’s IPO debutants rely on helping hands - Reuters
Breakingviews - Hong Kong’s IPO debutants rely on helping hands - Reuters:
Hong Kong’s latest wave of listings are attracting some big helping hands. Anheuser-Busch InBev raised $5 billion through a relaunched float of its Asia-Pacific unit. There’s appetite for new share issues in the city despite ongoing protests, but at a discount and with strong cornerstone support.
After its attempt to sell shares in Budweiser Brewing Company APAC fell flat in July, AB InBev sold the unit’s low-growth Australian division to Japan’s Asahi, then relaunched the process last week with backing from Singapore state investment fund GIC. Priced at the bottom end of a marketed range, the new deal gives Budweiser APAC an enterprise value of $45 billion.
When adding in the generous $11 billion raised from Asahi, that’s within the roughly $53 billion to $62 billion range the company had initially sought. A listing by Chinese biotech company Henlius, which raised $410 million last week in the city’s first major IPO since July, looked similar. Support from four cornerstone backers including the Qatar Investment Authority got it across the line, but it too priced at the lower end.
Hong Kong’s latest wave of listings are attracting some big helping hands. Anheuser-Busch InBev raised $5 billion through a relaunched float of its Asia-Pacific unit. There’s appetite for new share issues in the city despite ongoing protests, but at a discount and with strong cornerstone support.
After its attempt to sell shares in Budweiser Brewing Company APAC fell flat in July, AB InBev sold the unit’s low-growth Australian division to Japan’s Asahi, then relaunched the process last week with backing from Singapore state investment fund GIC. Priced at the bottom end of a marketed range, the new deal gives Budweiser APAC an enterprise value of $45 billion.
When adding in the generous $11 billion raised from Asahi, that’s within the roughly $53 billion to $62 billion range the company had initially sought. A listing by Chinese biotech company Henlius, which raised $410 million last week in the city’s first major IPO since July, looked similar. Support from four cornerstone backers including the Qatar Investment Authority got it across the line, but it too priced at the lower end.
UPDATE 2- #AbuDhabi raises $10 billion with triple-tranche bond - Reuters
UPDATE 2-Abu Dhabi raises $10 billion with triple-tranche bond - Reuters:
The government of Abu Dhabi has sold $10 billion in bonds, its first debt issuance in two years, which attracted hefty demand as the oil-rich emirate takes advantage of low rates to partly offset the impact of falling oil prices on state coffers.
Abu Dhabi has issued $3 billion in five-year bonds, $3 billion in 10-year and $4 billion in 30-year notes, according to a document issued by one of the banks leading the deal and seen by Reuters.
Abu Dhabi, the capital of the United Arab Emirates (UAE), has the biggest hydrocarbon reserves among the UAE’s seven emirates and its fiscal position is among the strongest in the region.
It has a rating of Aa2 by rating agency Moody’s, AA by S&P and AA by Fitch, with stable outlooks assigned by all three rating agencies.
The government of Abu Dhabi has sold $10 billion in bonds, its first debt issuance in two years, which attracted hefty demand as the oil-rich emirate takes advantage of low rates to partly offset the impact of falling oil prices on state coffers.
Abu Dhabi has issued $3 billion in five-year bonds, $3 billion in 10-year and $4 billion in 30-year notes, according to a document issued by one of the banks leading the deal and seen by Reuters.
Abu Dhabi, the capital of the United Arab Emirates (UAE), has the biggest hydrocarbon reserves among the UAE’s seven emirates and its fiscal position is among the strongest in the region.
It has a rating of Aa2 by rating agency Moody’s, AA by S&P and AA by Fitch, with stable outlooks assigned by all three rating agencies.
#Kuwait shares #SaudiArabia's optimism to end disagreement: Kuwait's deputy foreign minister - Reuters
Kuwait shares Saudi Arabia's optimism to end disagreement: Kuwait's deputy foreign minister - Reuters:
Kuwait’s deputy foreign minister said on Monday that Kuwait shares Saudi Arabia’s optimism to end a disagreement over the Saudi–Kuwaiti neutral zone “very soon,” state news agency (KUNA) cited him as saying.
Khaled al-Jarallah added that he listened to the Saudi energy minister’s “positive statements” and wished to “close the page on this disagreement very soon”, KUNA reported.
Saudi energy minister Prince Abdulaziz bin Salman had said earlier this month talks with Kuwait about resuming oil production in jointly operated fields in the Saudi-Kuwaiti neutral zone are “positive” and there was political will to resolve relevant issues.
Kuwait’s deputy foreign minister said on Monday that Kuwait shares Saudi Arabia’s optimism to end a disagreement over the Saudi–Kuwaiti neutral zone “very soon,” state news agency (KUNA) cited him as saying.
Khaled al-Jarallah added that he listened to the Saudi energy minister’s “positive statements” and wished to “close the page on this disagreement very soon”, KUNA reported.
Saudi energy minister Prince Abdulaziz bin Salman had said earlier this month talks with Kuwait about resuming oil production in jointly operated fields in the Saudi-Kuwaiti neutral zone are “positive” and there was political will to resolve relevant issues.
Oil slips as focus shifts from #Saudi supply to global demand concerns - Reuters
Oil slips as focus shifts from Saudi supply to global demand concerns - Reuters:
Oil prices eased on Tuesday as weak manufacturing data from Europe and Japan focused market attention on the gloomy outlook for demand and away from uncertainty around supply disruptions in Saudi Arabia.
Brent crude futures LCOc1 fell 40 cents to $64.37 a barrel by 0624 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.31, down 33 cents.
“The demand side of the equation is back in focus,” said Michael McCarthy, senior market analyst at CMC Markets in Sydney, pointing to sluggish manufacturing numbers in leading economies in Europe as well as Japan.
Oil prices eased on Tuesday as weak manufacturing data from Europe and Japan focused market attention on the gloomy outlook for demand and away from uncertainty around supply disruptions in Saudi Arabia.
Brent crude futures LCOc1 fell 40 cents to $64.37 a barrel by 0624 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were at $58.31, down 33 cents.
“The demand side of the equation is back in focus,” said Michael McCarthy, senior market analyst at CMC Markets in Sydney, pointing to sluggish manufacturing numbers in leading economies in Europe as well as Japan.
Monday, 23 September 2019
Oil rises about 1% on concerns about return of #Saudi output - Reuters
Oil rises about 1% on concerns about return of Saudi output - Reuters:
Oil ended about 1% higher on Monday after a volatile trading session as traders focused on when Saudi Arabia would be able to restore full output following the Sept. 14 attack on its facilities.
Brent futures gained 49 cents, or 0.8%, to settle at $64.77 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1%, to settle at $58.64.
“We’ve seen futures trade on both sides of unchanged today. The market is hesitant to drive too much higher at this point until it gets more facts. But I think the bullish news outweighs the bearish news and that is why we are up at the end of the day,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent futures started the session at a high of $65.50 on a report in the Wall Street Journal that it could take Saudi Arabia months longer than its Aramco oil company anticipates to repair damage from the Sept. 14 attacks.
Oil ended about 1% higher on Monday after a volatile trading session as traders focused on when Saudi Arabia would be able to restore full output following the Sept. 14 attack on its facilities.
Brent futures gained 49 cents, or 0.8%, to settle at $64.77 a barrel, while U.S. West Texas Intermediate (WTI) crude gained 55 cents, or 1%, to settle at $58.64.
“We’ve seen futures trade on both sides of unchanged today. The market is hesitant to drive too much higher at this point until it gets more facts. But I think the bullish news outweighs the bearish news and that is why we are up at the end of the day,” said Phil Flynn, an analyst at Price Futures Group in Chicago.
Brent futures started the session at a high of $65.50 on a report in the Wall Street Journal that it could take Saudi Arabia months longer than its Aramco oil company anticipates to repair damage from the Sept. 14 attacks.
Deutsche Bank Top Holder Takes Chairman Search Into Own Hand - Bloomberg
Deutsche Bank Top Holder Takes Chairman Search Into Own Hand - Bloomberg:
Deutsche Bank AG’s top shareholders in Qatar are taking the unusual step of directly approaching candidates to gauge their interest in replacing chairman Paul Achleitner as investor patience runs out after a prolonged stock slump.
Some representatives of the Qatari royal family have held talks with an international recruiting firm as they review potential executives, according to people familiar with the matter. They’re debating whether to try and force Achleitner to leave before his term expires in 2022, the people said, asking not to be identified disclosing private discussions.
The Qatari efforts underscore the frustration of key Deutsche Bank backers after the shares lost about 70% of their value during Achleitner’s time as chairman. The Austrian received his lowest backing yet at this year’s shareholder meeting after a tumultuous period that saw the stock fall to a new record low and the appointment of the fourth CEO under his watch. The Qataris’ stake gives them an outsized voice in choosing the next chairman.
Deutsche Bank AG’s top shareholders in Qatar are taking the unusual step of directly approaching candidates to gauge their interest in replacing chairman Paul Achleitner as investor patience runs out after a prolonged stock slump.
Some representatives of the Qatari royal family have held talks with an international recruiting firm as they review potential executives, according to people familiar with the matter. They’re debating whether to try and force Achleitner to leave before his term expires in 2022, the people said, asking not to be identified disclosing private discussions.
The Qatari efforts underscore the frustration of key Deutsche Bank backers after the shares lost about 70% of their value during Achleitner’s time as chairman. The Austrian received his lowest backing yet at this year’s shareholder meeting after a tumultuous period that saw the stock fall to a new record low and the appointment of the fourth CEO under his watch. The Qataris’ stake gives them an outsized voice in choosing the next chairman.
Egypt’s Status as an Emerging-Market Darling Under Threat - Bloomberg
Egypt’s Status as an Emerging-Market Darling Under Threat - Bloomberg:
Political risk is back on the table in Egypt, and it’s threatening the country’s status as an emerging-market darling.
Egyptian assets have come under pressure since Friday’s anti-government protests alleging corruption in the military, with 12-month NDF contracts for the pound rising the most since March 2017 to 18.38/USD (versus the spot rate of 16.29). Stocks have fallen almost 7% in two days, the most in more than three years and the biggest drop by far among equity markets worldwide.
Until now, investors have put political concerns, including the government’s jailing of thousands of opponents, to the side and instead focused on Egypt’s macroeconomics. Thanks to IMF-led reforms since 2016, the economy is the fastest-growing in the Middle East and North Africa and the inflation rate is the lowest in 6-1/2 years. All that has helped Egyptian assets outperform emerging markets in 2019.
Political risk is back on the table in Egypt, and it’s threatening the country’s status as an emerging-market darling.
Egyptian assets have come under pressure since Friday’s anti-government protests alleging corruption in the military, with 12-month NDF contracts for the pound rising the most since March 2017 to 18.38/USD (versus the spot rate of 16.29). Stocks have fallen almost 7% in two days, the most in more than three years and the biggest drop by far among equity markets worldwide.
Until now, investors have put political concerns, including the government’s jailing of thousands of opponents, to the side and instead focused on Egypt’s macroeconomics. Thanks to IMF-led reforms since 2016, the economy is the fastest-growing in the Middle East and North Africa and the inflation rate is the lowest in 6-1/2 years. All that has helped Egyptian assets outperform emerging markets in 2019.
Column: #Saudi oil attacks leave hedge funds unmoved despite battle of the bots - Reuters
Column: Saudi oil attacks leave hedge funds unmoved despite battle of the bots - Reuters:
Hedge fund managers remain cautious about the outlook for oil prices despite a short-term surge following the recent attacks on Saudi Arabia’s oil installations.
Amid record trading volumes, oil prices posted a record one-day rise on Sept. 16, the first trading day after the attacks.
However, most of this was probably attributable to short-term computerised market-making programmes (“bots”) taking intra-day positions rather than fund managers shifting their strategic view.
Prior to the attacks, hedge fund managers had increased their bullish positioning in petroleum significantly as hopes rose for a trade truce between China and the United States.
Hedge fund managers remain cautious about the outlook for oil prices despite a short-term surge following the recent attacks on Saudi Arabia’s oil installations.
Amid record trading volumes, oil prices posted a record one-day rise on Sept. 16, the first trading day after the attacks.
However, most of this was probably attributable to short-term computerised market-making programmes (“bots”) taking intra-day positions rather than fund managers shifting their strategic view.
Prior to the attacks, hedge fund managers had increased their bullish positioning in petroleum significantly as hopes rose for a trade truce between China and the United States.
MIDEAST STOCKS-Egypt extends losses amid uncertainty over protests - Reuters
MIDEAST STOCKS-Egypt extends losses amid uncertainty over protests - Reuters:
Egyptian stocks closed lower on Monday,
stretching last session's sharp fall following protests which
broke out in several Egyptian cities over the weekend.
On Friday, hundreds of people rallied in central Cairo and
several other Egyptian cities against President Abdel Fattah
al-Sisi, responding to an online call for a demonstration
against government corruption.
Egyptian authorities have detained at least 373 people as
they try to quash the rare outbreak of protest, rights monitors
said on Monday.
The blue-chip stock index fell 1.5% with Commercial
International Bank declining 3.5% and Talaat Mostafa
Holding plunging 7.6%.
Egyptian stocks closed lower on Monday,
stretching last session's sharp fall following protests which
broke out in several Egyptian cities over the weekend.
On Friday, hundreds of people rallied in central Cairo and
several other Egyptian cities against President Abdel Fattah
al-Sisi, responding to an online call for a demonstration
against government corruption.
Egyptian authorities have detained at least 373 people as
they try to quash the rare outbreak of protest, rights monitors
said on Monday.
The blue-chip stock index fell 1.5% with Commercial
International Bank declining 3.5% and Talaat Mostafa
Holding plunging 7.6%.
Foreigners Boosted #Saudi Stocks the Week Aramco Woes Dominated - Bloomberg
Foreigners Boosted Saudi Stocks the Week Aramco Woes Dominated - Bloomberg:
Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes.
Qualified foreign institutional funds were the main net buyers of shares for the week of Sept. 19, in the aftermath of strikes on facilities of giant oil producer Saudi Aramco. That led to a cut in the kingdom’s oil output. The funds purchased about $790 million in shares, or about five times more than local institutional investors, flow data from the Saudi stock exchange showed. Saudi individuals and Gulf investors were net sellers.
Boost From Foreigners
Net trading with Saudi shares for the week ending Sept. 19
Attacks on the heart of Saudi Arabia’s oil production were not enough to stop foreigners from buying shares in Riyadh last week, with most of them tracking global benchmark indexes.
Qualified foreign institutional funds were the main net buyers of shares for the week of Sept. 19, in the aftermath of strikes on facilities of giant oil producer Saudi Aramco. That led to a cut in the kingdom’s oil output. The funds purchased about $790 million in shares, or about five times more than local institutional investors, flow data from the Saudi stock exchange showed. Saudi individuals and Gulf investors were net sellers.
Boost From Foreigners
Net trading with Saudi shares for the week ending Sept. 19