Narrow set of options ht @ahmed

Sad bankers

Almost 5 million people have applied for shares in Saudi Aramco’s initial public offering with a total value of 47.4 billion riyals as the retail tranche came to an end on November 28, while bids from institutional investors have reached 119 billion riyals so far with few more days to go for them to submit bids until December 4.

This brings the total to 166 billion riyals which means it has been oversubscribed and raised 1.7 times what the government said it wanted, but this is still far less than what we have seen with previous Saudi share sales. The National Commercial Bank IPO in 2016 was covered 23 times over, while 10 million Saudis participated in Emaar IPO in before the stock market crash in 2006.

Only 10.5% of bids came from non-Saudi investors after the company decided not to market the flotation abroad due to lack of appetite from foreign institutional investors over the valuation and other concerns, but Saudi Aramco executives have traveled to Kuwait and UAE as their sovereign wealth funds are expected to invest.Narrow set of options ht @ahmed

OPEC November oil output slips before Aramco IPO, policy meeting - Reuters

OPEC November oil output slips before Aramco IPO, policy meeting - Reuters:

OPEC oil output has fallen in November as Angolan production has slipped due to maintenance and Saudi Arabia has kept a lid on supply to support the market before the initial public offering (IPO) of state-owned Saudi Aramco, a Reuters survey found.

On average, the 14-member Organization of the Petroleum Exporting Countries has pumped 29.57 million barrels per day (bpd) this month, according to the survey. That is down 110,000 bpd from October’s revised figure.

The survey suggests Saudi Arabia, after resuming normal supply after attacks on facilities in September, is still pumping far less than an OPEC-led supply deal allows. OPEC meets to review the pact on Dec. 5, the same day Aramco is due to announce the final offer price.

US is net exporter of oil for first time in decades | Financial Times

US is net exporter of oil for first time in decades | Financial Times:

The US has cemented its status as a net exporter in world oil markets, a sharp reversal from past years that could affect its ties to foreign allies. 

The top oil producer and consumer exported 89,000 more barrels of crude oil and refined petroleum products a day than it imported in September, the first full month of a positive oil trade balance since the 1940s, the Energy Information Administration said Friday. Imports exceeded exports by 12m barrels a day a decade ago. 

A variety of factors contributed to the shift: surging production from shale oilfields, the end of a crude oil export ban in 2015 and fuel economy improvements for cars that limited petrol demand even as highway travel rebounded from a recession.

Harare’s historic Meikles Hotel set for modern makeover | Financial Times

Harare’s historic Meikles Hotel set for modern makeover | Financial Times:

It is a piece of Zimbabwe’s colonial past that has fallen on hard times — but Harare’s venerable Meikles Hotel could soon be under new management after a Dubai-based buyer approached the US chain Hyatt to run it.

Albwardy Investments, which offered to buy the hotel in the heart of Zimbabwe’s capital for $20m last week, is seeking an international operator as it plans to restore one of the African nation’s most historic buildings.

The proposed deal represents a rare vote of investor confidence in Zimbabwe, which faces its worst economic crisis in a decade under President Emmerson Mnangagwa.

The hotel has faded as Zimbabwe’s economic and political turmoil has deepened, acquiring a gloomy reputation for half-empty suites, mechanical breakdowns and an outdated ambience.

#Saudi Aramco flotation to rely on local money | Financial Times

Saudi Aramco flotation to rely on local money | Financial Times:

Saudi Aramco’s stock market flotation will rely almost exclusively on local money, with new data confirming the full extent of the kingdom’s scaled back ambitions for the long-awaited offering.

Banks on the deal said on Friday about 4.9m retail investors in the kingdom bid for shares before the deadline on Thursday, with a total valuation of 47.4bn Saudi riyals ($12.6bn).

Institutional investor subscriptions totalled SR118.9bn with the subscription period ending on December 4, Samba Capital, NCB Capital and HSBC Saudi Arabia said. 


Less than 11 per cent were made up by non-Saudi investors, with this portion also accounting for investment from elsewhere in the Gulf.

Is Today’s Oil Price Plunge A Sign Of Things To Come? | OilPrice.com

Is Today’s Oil Price Plunge A Sign Of Things To Come? | OilPrice.com:

Oil prices tanked early on Black Friday on rumors that OPEC’s leading members aren’t willing to deepen output cuts. At 12:40 PM ET, WTI was down 4.59% at $55.54 and Brent was trading 4.27% lower at $60.57.

Oil prices have held firm in recent weeks on the understanding that Saudi Arabia was willing to at least extend the current production quota through June 2020.

In light of the ongoing Aramco IPO process, Saudi Arabia’s highest priority has been to keep oil prices steady around $60 per barrel. The Kingdom, however, is facing some resistance from other members of the oil cartel ahead of its next meeting. 


Riyadh’s largest partner in the OPEC+ production cut deal, Russia, has been far less compliant and less vocal about rolling over the current production cuts. Russian oil majors have thus far been slow to respond to Moscow’s mandate to cut oil production and, as a result, the country continues to overproduce. Russian oil CEOs Igor Sechin and Vagit Alekperov even expect OPEC to delay a decision about extending oil production to March 2020.

#Saudi Aramco IPO oversubscribed so far, but not by big margin - Reuters

Saudi Aramco IPO oversubscribed so far, but not by big margin - Reuters:

Saudi Aramco’s initial public offering (IPO) was on course to be oversubscribed but not by a huge margin, according to figures released so far by the lead manager before a Dec. 4 close for institutional investors to submit offers.

Bids received by Friday from institutional and retail investors totaled $44.3 billion, lead manager Samba Capital said, about 1.7 times the value Saudi Arabia aims to raise from selling a 1.5% stake in the state-owned oil giant.

Although the IPO has received more than enough bids, the level of interest is relatively muted compared to other emerging market IPOs and subdued even when compared to the listing of a top Saudi bank in 2014 that was oversubscribed many times over.

If Riyadh hits its target of raising 96 billion riyals ($25.6 billion) or more it would still be a world record IPO, valuing the company at about $1.7 trillion.

Oil slumps but sets monthly gain ahead of OPEC meeting - Reuters

Oil slumps but sets monthly gain ahead of OPEC meeting - Reuters:

Oil prices fell on Friday, with U.S. crude dropping more than 4%, on fresh trade tensions and record high U.S. crude production, but they still ended the month higher as OPEC watchers expect an extension next week to a pact to throttle oil output beyond March.

Brent crude futures LCOc1 settled down $1.44 at $62.43 a barrel, and was down 1.5% on the week. Still, the contract posted its biggest monthly gain since April with a rise of about 6%.

West Texas Intermediate (WTI) futures CLc1 settled down $2.94 at $55.17, falling of 4.1% on the week, after three consecutive increases. On a monthly basis, WTI is poised for a jump of about 2.3%, its highest since June.

Trading volumes were low due after Thursday’s U.S. Thanksgiving Day holiday.

#SaudiArabia Signals It’s Had Enough of OPEC+ Cheating on Quotas - Bloomberg

Saudi Arabia Signals It’s Had Enough of OPEC+ Cheating on Quotas - Bloomberg:

For the last year, Saudi Arabia has largely turned a blind eye to cheaters within the OPEC+ alliance, cutting its own output more than agreed to offset over-production from the likes of Iraq and even Russia. Now, Riyadh’s had enough.

Prince Abdulaziz bin Salman, who took over from Khalid Al-Falih in September, will likely use his first OPEC meeting as Saudi oil minister next week to signal OPEC’s dominant producer is no longer willing to compensate for other members’ non-compliance, according to people familiar with the kingdom’s thinking. OPEC meets in Vienna on Dec. 5, followed by the larger OPEC+ alliance, which includes Russia, the next day. 

“Saudi Arabia is taking a harder line than in the past,” said Amrita Sen, chief oil analyst at consultant Energy Aspects Ltd. in London. “Riyadh is making very clear that they don’t want to shoulder all the cuts alone.”

Exclusive: Brazil, China, #UAE firms in second round of bids for Petrobras refineries - sources - Reuters

Exclusive: Brazil, China, UAE firms in second round of bids for Petrobras refineries - sources - Reuters:

Brazil’s state-controlled oil company Petroleo Brasileiro SA (PETR4.SA) has selected four groups for the second round of bidding for four refineries up for sale, including China’s Sinopec, Abu Dhabi’s state investor and two Brazilian firms, according to four people with knowledge of the matter.

Sinopec, Abu Dhabi’s Mubadala Investment Co and Brazil’s Ultrapar Participações SA (UGPA3.SA) and Raizen were chosen to go through to the next phase, they said. Brazil’s Raizen is a joint venture between Cosan SA (CSAN3.SA) and Royal Dutch Shell Plc (RDSa.L).

Petrobras, as the oil company is known, received non- binding offers in early November for the first block of refineries it plans to sell. It selected the groups that will progress to the second round last week, the sources added, declining to be named as the details are confidential.

Oil mixed amid slow holiday trade before OPEC+ meeting - Reuters

Oil mixed amid slow holiday trade before OPEC+ meeting - Reuters:

Oil prices were mixed on Friday in quiet trade with the U.S. Thanksgiving holiday limiting activity, while investors awaited a meeting of OPEC and its allies next week that may result in the extension of an output cut agreement to support the market.

Brent crude futures LCOc1 were down 8 cents, or 0.1%, at $63.79 a barrel by 0740 GMT. Brent futures are set for a slight gain of 0.6% for the week, the fourth weekly increase, during which prices have climbed 3.4%.

West Texas Intermediate (WTI) futures CLc1 were up 4 cents, or 0.1%, at $58.15 a barrel.

For the week, WTI is set to gain 0.6%, the fourth weekly increase, during which prices have risen 3.4%.

Oil ends mixed, pressured by U.S. tensions with China over rights bill - Reuters

Oil ends mixed, pressured by U.S. tensions with China over rights bill - Reuters:

Oil prices ended mixed on Thursday, with U.S. prices rebounding modestly from concerns that arose from U.S. President Donald Trump signing into law a bill backing protesters in Hong Kong, fuelling tensions with China.

Brent crude lost 14 cents, or 0.2%, at $63.92 a barrel, paring earlier losses. 

West Texas Intermediate crude reversed losses to close up 13 cents, or 0.2%, at $58.24, with many U.S. traders away for the Thanksgiving holiday.

China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.

#Dubai Property Tycoon Buys Italian Fashion Brand Roberto Cavalli - Bloomberg

Dubai Property Tycoon Buys Italian Fashion Brand Roberto Cavalli - Bloomberg:

Damac Properties PJSC’s chairman bought Italian fashion group Roberto Cavalli SpA through his private investment firm.

Hussain Sajwani’s Vision Investments completed the acquisition of the Florentine brand on Thursday, according to a statement. It didn’t provide a value for the deal.

Lebanon Bond Repayment Wins Time for a Nation in Crisis - Bloomberg

Lebanon Bond Repayment Wins Time for a Nation in Crisis - Bloomberg:

Lebanon repaid a $1.5 billion Eurobond on Thursday, an official with knowledge of the matter said, buying the country time as speculation swirls over its ability to avoid a default during a political and economic crisis.

The Finance Ministry issued payment instructions to the central bank, also known as Banque du Liban, the official said on condition of anonymity. The next bond payment is scheduled for March, when a $1.2 billion Eurobond comes due.

Lebanon has never defaulted on its obligations despite struggling under one of the world’s biggest debt burdens, and the central bank had repeatedly said it would cover the $1.5 billion bond. But weeks of nationwide protests that ousted the government saw credit risk surge and investor confidence slump.

#Dubai, #Sharjah more vulnerable to slowdown in non-oil sector: Moody's | ZAWYA MENA Edition

Dubai, Sharjah more vulnerable to slowdown in non-oil sector: Moody's | ZAWYA MENA Edition:

The slowdown in the non-oil sector is likely to affect Dubai and Sharjah more than the UAE capital Abu Dhabi whose reliance on the sector is non-significant, Global ratings agency Moody's said in a report.

"Dubai and Sharjah's revenues are more vulnerable to slowing macroeconomic conditions, as their revenue bases are reliant on government fees, fines and to a lesser extent, tax revenues," said Thaddeus Best, a Moody's Analyst and the report's author.

"For Dubai in particular, lower growth and counter-cyclical fiscal policy are aggravating already elevated debt levels, despite the generally more cautious fiscal stance adopted by the authorities since the 2009 debt crisis," he added.

By contrast, Abu Dhabi is more insulated as its non-oil revenues are relatively small compared to hydrocarbons and investment income from the Abu Dhabi Investment Authority (ADIA), which comprise the vast majority of government revenues.

Emirates NBD has cut over 400 jobs since October - sources - Reuters

Emirates NBD has cut over 400 jobs since October - sources - Reuters:

Dubai’s largest bank, Emirates NBD , has cut between 400 and 500 jobs since October, sources familiar with the matter said, as banks in the United Arab Emirates (UAE) reduce costs amid slower economic growth.

The cuts have been across several areas of the bank, which employs 12,000 people in the UAE, and the process has ended, said one of the sources.

A second source said the retail and technology operations were the most affected.

Qatari foreign minister's #Saudi visit seen easing Gulf rift - Reuters

Qatari foreign minister's Saudi visit seen easing Gulf rift - Reuters:

Qatar’s foreign minister has made an unannounced visit to Riyadh, two sources told Reuters, amid signs that a 2-1/2-year rift among U.S.-allied Gulf Arab states could soon subside.

Sheikh Mohammed bin Abdulrahman al-Thani met with senior Saudi officials last month, said one of the sources familiar with the trip, the highest-level visit since May when Qatar’s prime minister attended an Arab summit in Mecca.

It was unclear if the visit, first reported by the Wall Street Journal, included a face-to-face with de facto Saudi ruler Crown Prince Mohammed bin Salman.

U.S. Senator Chris Murphy said the minister’s trip was “an important move that showed openness to some dialogue between the two sides”.

Russia signals no change to its oil quotas at next week's OPEC+ meeting - Reuters

Russia signals no change to its oil quotas at next week's OPEC+ meeting - Reuters:

Russian oil companies proposed on Thursday not to change their output quotas as part of a global deal until the end of March, when the current agreement expires, putting pressure on OPEC+ to avoid any major shift in policy when the group meets next week.

They also offered to exclude production of gas condensate, a light oil, from the output quotas as Russia has been struggling to meet its supply-reduction targets in recent months.

The proposals to preserve the deal between the Organization of the Petroleum Exporting Countries and non-OPEC nations until the end of March were made at a gathering with Energy Minister Alexander Novak, who will attend next week’s meetings in Vienna.

MIDEAST STOCKS-Emirates NBD drags #Dubai; Egypt snaps losing streak - Reuters

MIDEAST STOCKS-Emirates NBD drags Dubai; Egypt snaps losing streak - Reuters:

Most major Gulf markets ended lower on
Thursday, mirroring losses in global stocks and falling oil
prices, with Dubai particularly hard hit by losses in top lender
Emirates NBD.

On Thursday, a four-day rally that had lifted world stocks
to near-record highs stalled after President Donald Trump signed
into law a bill backing protesters in Hong Kong, fuelling
frictions with China.
China warned of "firm countermeasures".   

In Dubai, the index declined 1.2% led by a 2.5%
slide in Emirates NBD. The bank has cut between
400-500 jobs since October, Reuters reported on Thursday, citing
sources familiar with the matter.

#Lebanon urged to restructure debt as crisis deepens | Financial Times

Lebanon urged to restructure debt as crisis deepens | Financial Times:

Protest-stricken Lebanon has vowed to repay $1.5bn to holders of its government debt as planned this week despite a stalled economy and drained dollar reserves, but economists say the time has come to consider letting investors down.

With total borrowing of $88.4bn, Lebanon has one of the world’s biggest debt burdens, projected to be 155 per cent of gross domestic product by the end of 2019. But it has always met payments to creditors — a crucial step in maintaining investors’ trust and ensuring long-term access to international markets.

Now, as the protests over corruption and joblessness enter their second month, some analysts and economists are warning that imports should take precedence over bond obligations, urging the government to delay repayments or devise another way to spread the pain.

Aramco IPO Retail Offering Fully Covered With One Day to Go - Bloomberg

Aramco IPO Retail Offering Fully Covered With One Day to Go - Bloomberg:

The retail tranche of Saudi Aramco’s initial public offering is fully covered with one day to go after 3.7 million investors applied to buy shares in the world’s biggest oil producer.

The subscription reached 32.6 billion riyals ($8.7 billion), lead manager Samba Capital said in statement. A third of what’s likely to be the world’s largest share sale has been reserved for retail investors, who’ve been targeted by a country-wide advertising campaign and offered larger-than usual loans to finance purchases. 

There may be a last-minute surge before today’s final deadline for applications, but so far the share sale hasn’t been as well subscribed as some other IPOs in the counrty. The book for National Commercial Bank’s 2014 Initial public offering was covered 23 times over. In 2006, 10 million Saudis, about half the kingdom’s adult population, applied to buy shares in the local unit of the Middle East’s biggest property develop, Emaar Properties PJSC.

Oil falls as U.S. rights bill fuels tensions with China - Reuters

Oil falls as U.S. rights bill fuels tensions with China - Reuters:

Oil prices fell for a second day on Thursday after official data showed U.S. crude and gasoline stocks rose and President Donald Trump signed into law a bill backing protesters in Hong Kong, fuelling tensions with China.

Brent crude was down 19 cents, or 0.3%, at $63.87 a barrel by 0854 GMT, having dropped 0.3% on Wednesday.

West Texas Intermediate crude fell 33 cents, or 0.6%, to $57.78, after losing 0.5% in the previous session.

China warned the United States that it would take “firm countermeasures” in response to U.S. legislation backing anti-government protesters in Hong Kong.

Flood of cheap LNG from #Qatar imperils rival North American projects - Reuters

Flood of cheap LNG from Qatar imperils rival North American projects - Reuters:

Proposed projects to export liquefied natural gas (LNG) from North America face an uphill battle against Qatar, which announced plans to further ramp up production to hold onto its position as the world’s leading LNG exporter.

The United States is on track to overtake Qatar and Australia as the top LNG exporter by 2024, but now will only hold that title for a few years as Qatar announced this week it will boost production by 64% by 2027.

Qatar’s plans add another headwind for dozens of long-in-development projects already contending with the difficulty of finding customers due to the U.S.-China trade war and a glut of supply worldwide.

#Saudi Aramco Schadenfreude - Arabianbusiness

Saudi Aramco Schadenfreude - Arabianbusiness:

The news and comments made about Aramco’s IPO is wholly negative. The way the IPO was, and is, being characterized is on par with the flop of WeWork’s IPO. There is a similarity in that both companies differed with the investment banks on the pricing of their shares. But there important differences, not least is that Aramco is massively profitable with huge positive cashflow.

Then there is the point that Aramco has negligible financial liabilities. For example, Aramco can fire its CEO without having to pay him $1.5 billion. Or was it $1.4 billion? But what’s a $100 million for the CEO of an American startup these days?

The pricing of Aramco is based on actual positive cash flows, with the differences between seller and advisor on pricing portrayed predominantly on the expected corporate governance of Aramco.

Cost of India refinery project with Aramco, ADNOC estimated at $70 billion - Reuters

Cost of India refinery project with Aramco, ADNOC estimated at $70 billion - Reuters:

The cost of a giant oil and petrochemicals refinery project to be built jointly by Saudi Aramco and Abu Dhabi National Oil Co. (ADNOC) in India is expected to reach $70 billion, WAM news agency reported on Wednesday.

A joint economic council between the United Arab Emirates and Saudi Arabia reviewed the planned plant on Wednesday at a meeting on the sidelines of Saudi Crown Prince’s visit to his Gulf ally. 

“The initial cost is estimated at $70 billion,” a statement said.

MIDEAST STOCKS- #Saudi edges up on banks; other Gulf bourses little changed - Reuters

MIDEAST STOCKS-Saudi edges up on banks; other Gulf bourses little changed - Reuters:

Saudi Arabian stocks edged up in early trade on Thursday, helped by gains in financial shares, while other major Gulf markets were little changed in thin volumes.

In Saudi Arabia, the benchmark index edged up 0.1% with Al Rajhi Bank gaining 1.2% and Saudi Basic Industries adding 0.3%.

Bupa Arabia gained 1.2% after it won a health insurance contract from National Commercial Bank, which was down 0.4%.

Separately, lead manager Samba Capital on Wednesday said the retail portion of Saudi Aramco’s initial public offering (IPO) has been fully covered, with orders reaching 32.57 billion riyals ($8.69 billion).

Oil edges lower after U.S. crude and gasoline build - Reuters

Oil edges lower after U.S. crude and gasoline build - Reuters:

Oil eased on Wednesday after a report showing U.S. crude inventories grew unexpectedly last week and gasoline stocks surged, but losses were limited by optimism that a U.S.-China trade deal would be reached soon.

Brent crude futures LCOc1 fell 34 cents, or 0.5%, to $63.93 a barrel by 1:14 p.m. EST (1814 GMT). U.S. West Texas Intermediate crude CLc1 fell 34 cents, or 0.8%, to $57.93 a barrel.

WTI trade volumes were also on track to be lower for the week ahead of the U.S. Thanksgiving holiday.

U.S. crude stocks swelled by 1.6 million barrels last week as production hit a record high at 12.9 million barrels per day and refinery runs slowed, the Energy Information Administration said. Analysts in a Reuters poll had forecast a drop of 418,000 barrels.

Man City stake sale breaks valuation record for a sports group | Financial Times

Man City stake sale breaks valuation record for a sports group | Financial Times:

Manchester City’s owner has agreed to sell a $500m stake to Silver Lake in a deal that breaks a record in sports valuations and fuels the football group’s international expansion.

The US private equity firm is buying more than 10 per cent of City Football Group at a valuation of $4.8bn, injecting new capital into the Abu Dhabi-controlled organisation that owns Manchester City and affiliated teams in the US and China. 


On Wednesday, Silver Lake and CFG announced the deal, which was first reported by the Financial Times. “We and Silver Lake share the strong belief in the opportunities being presented by the convergence of entertainment, sports and technology,” CFG chairman Khaldoon Al Mubarak said in a statement. The companies said the transaction was subject to regulatory approval in some territories.

Russia Set to Overshoot Oil Quota Yet Again Ahead of OPEC+ Talks - Bloomberg

Russia Set to Overshoot Oil Quota Yet Again Ahead of OPEC+ Talks - Bloomberg:

Russia, OPEC’s largest ally in a deal to cut oil production, is once again failing to keep its side of the bargain. 

The country pumped 39.884 million tons of crude and condensate from Nov. 1 to Nov. 26, according to Energy Ministry CDU-TEK data seen by Bloomberg. That equals a daily average of 11.244 million barrels -- based on a 7.33 barrels-per-ton ratio -- which is 54,000 more than its OPEC+ cap.

Assuming no sharp cut in output in the remaining four days of the month, November will become the eighth month this year of non-compliance by Russia. That leaves the country in an awkward position ahead of ministerial talks with other members of the OPEC+ coalition in Vienna next week, where de facto leader Saudi Arabia is likely to lean on laggards to adhere to the agreement.

Oil Prices Fall As EIA Reports Crude, Gasoline And Distillate Build | OilPrice.com

Oil Prices Fall As EIA Reports Crude, Gasoline And Distillate Build | OilPrice.com:

Crude oil prices fell lower today after the Energy Information Administration reported a crude oil inventory increase of 1.6 million barrels for the week to November 22. The build in gasoline stockpiles, however, was larger—and distillate fuels booked a rise as well.

Analysts had expected a decline of about 350,000 barrels, after last week the EIA reported an inventory build of 1.4 million barrels. Despite the build, however, prices trended higher that day on renewed optimism about U.S.-Chinese relations.

Crude oil inventories are now 3 percent above the upper limit of the average for this time of the year, the EIA said.

The EIA also reported a sizeable 5.1-million-barrel build in gasoline stockpiles, with production averaging 10.1 million bpd last week. This compares with a 1.8-million-barrel increase in gasoline inventories a week earlier, with production averaging 10.1 million bpd.

Russia to press OPEC+ to change its oil output calculations - Reuters

Russia to press OPEC+ to change its oil output calculations - Reuters:

Russia is likely to call on fellow oil producers to change the way Moscow’s output is measured when most of the world’s biggest oil-producing nations meet next month in Vienna, Russian and OPEC sources say.

For three years OPEC and non-OPEC nations have curbed oil output in order to balance the market and support prices, but Russia has been measuring its production differently to the others.

Unlike Saudi Arabia and other OPEC producers, Russia has been including condensate - a high-premium light type of crude oil mainly extracted during gas production - in its crude oil production numbers.

In the past this has caused no problems for Moscow, but with Russia launching new gas fields in the Arctic and East Siberia and opening a new gas pipeline to China, its gas condensate production is rising.

MIDEAST STOCKS-DIB supports #Dubai as most Gulf markets fall - Agricultural Commodities - Reuters

MIDEAST STOCKS-DIB supports Dubai as most Gulf markets fall - Agricultural Commodities - Reuters:

Most Gulf stock markets extended the
previous session's losses on Wednesday following a rebalancing
of MSCI's benchmark emerging market index, but gains in Dubai
Islamic Bank helped Dubai rebound.

Global index provider MSCI on Tuesday completed an increase
in the weighting of mainland Chinese stocks, or A shares, in its
widely followed emerging markets benchmark. Most Gulf
stock indexes slipped into negative territory after that as
passive investors withdrew funds from the region, which now
accounts for a smaller portion of the index.

The benchmark Saudi index led the losses and
declined by a further 0.3% on Wednesday with financials leading
the way. Al Rajhi Bank and Saudi British Bank
were down 1% and 3.4% respectively.

'Extremely Bullish' on #UAE Banks, Says Marie Salem, Head of Institutions at Daman Investments - Bloomberg

'Extremely Bullish' on U.A.E. Banks, Says Marie Salem, Head of Institutions at Daman Investments - Bloomberg:





Marie Salem, head of institutions at Daman Investments, discusses what Saudi Aramco's initial public offering means for the kingdom's banks and the outlook for United Arab Emirates lenders. Dubai Islamic Bank PJSC said Monday it agreed to buy Noor Bank PJSC in an all-share deal that potentially values the transaction at about $940 million. Salem speaks with Tracy Alloway and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Oil and politics risks to stable MENA sovereign outlook: Fitch Ratings | ZAWYA MENA Edition

Oil and politics risks to stable MENA sovereign outlook: Fitch Ratings | ZAWYA MENA Edition:

Outlooks are mostly stable on sovereign ratings in the Middle East North Africa Region (MENA), but renewed weakness in oil prices and regional and domestic political developments continue to pose a downside risk to ratings in 2020, Fitch Ratings says.

Among the 14 Fitch-rated MENA sovereigns, only Tunisia (B+) is on a Negative Outlook, maintained in June 2019. In August, Fitch downgraded Lebanon to 'CCC' from 'B-', in light of intensifying pressure on the country's financing model. A 'CCC' rating indicates that default is a real possibility, and Fitch does not typically assign Outlooks at this rating level. To different degrees, both Lebanon and Tunisia have wide twin deficits, high and rising public and external debt, a challenging political environment and tepid economic growth.

Headline fiscal balances will continue to weaken across much of the Gulf Cooperation Council (GCC) in 2020. We expect governments to reverse some of the fiscal loosening that took place amid an oil revenue windfall in 2018, but this will not be sufficient to completely offset the expected moderation of oil prices amid continued pressure on production volumes.

Islamic Development Bank set to raise 1 bln euro in green sukuk - Reuters

Islamic Development Bank set to raise 1 bln euro in green sukuk - Reuters:

Jeddah-based Islamic Development Bank is set to raise 1 billion euro ($1.10 billion) through five-year “green” sukuk, or Islamic bonds, a document showed on Wednesday.

The triple-A rated financial institution is offering investors 28 basis points over mid-swaps for the debt sale.

Green bonds are a growing category of fixed-income securities, and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.

Manchester City owner scores $4.8 billion price tag with stake sale - Reuters

Manchester City owner scores $4.8 billion price tag with stake sale - Reuters:

Manchester City’s Abu Dhabi-controlled owner has agreed to sell a $500 million stake to U.S. private equity firm Silver Lake, making it the world’s most valuable soccer group with a $4.8 billion price tag.

Tech-focused Silver Lake will buy just over 10% of City Football Group (CFG), which owns reigning English Premier League champions Manchester City and teams in the United States, Australia and China, the companies said on Wednesday.

The investment crowns a rags to riches story for Manchester City, which spent much of the 1990s in the doldrums but broke into the big league of world soccer with the help of Middle Eastern cash.

#Saudi Aramco IPO unlikely to have 'direct fiscal effect' - Fitch - Arabianbusiness

Saudi Aramco IPO unlikely to have 'direct fiscal effect' - Fitch - Arabianbusiness:

Saudi Aramco's IPO will have little direct fiscal effect, but could help offset the economic impact of renewed government austerity measures by allowing the Public Investment Fund (PIF) to boost domestic investments, according to Fitch Ratings. 


The ratings agency said in a new research note that the IPO's effect on Saudi Arabia's external balance sheet will depend on the nature of PIF investments and the sources of financing for the IPO.

Fitch said the IPO could generate proceeds of around SR90-96 billion ($24-26 billion or 3 percent of GDP) at the indicative valuation range of $1.6-1.7 trillion. 


These proceeds will flow to the PIF, which will use them for domestic and foreign investments. The funds will be small relative to medium-term financing needs, the agency noted.

#AbuDhabi, #Kuwait sovereign funds plan investment in Aramco IPO: sources - Reuters

Abu Dhabi, Kuwait sovereign funds plan investment in Aramco IPO: sources - Reuters:

The sovereign wealth funds of Abu Dhabi and Kuwait plan to invest in the initial public offering (IPO) of Saudi Aramco, which is relying mainly on Saudi and Gulf investors to raise up to $25.6 billion, sources familiar with the matter said.

Abu Dhabi Investment Authority (ADIA) is weighing an investment of at least $1 billion, five sources familiar with the matter told Reuters. A final decision on the amount requires board approval, one of the sources said.

Kuwait Investment Authority (KIA) also plans to invest in the IPO, two of the sources said. The size of the potential deal was not immediately known.

Oil eases on growing U.S. stockpiles; U.S.-China trade deal hopes check losses - Reuters

Oil eases on growing U.S. stockpiles; U.S.-China trade deal hopes check losses - Reuters:

Oil slipped on Wednesday after an industry report showed a surprise build-up in U.S. crude inventories, but optimism surrounding the signing of the first phase of a U.S.-China trade deal prevented a bigger slide in prices.

Brent crude futures LCOc1 dropped 9 cents, or 0.14%, to $64.18 a barrel by 0725 GMT, while West Texas Intermediate (WTI) crude futures CLc1 fell 12 cents, or 0.21%, to $58.29 per barrel.

Wednesday’s decline reversed two days of gains, with WTI climbing 1.1% through Tuesday and Brent gaining 1.4% during the period, on the expectation that China and the United States, the world’s two biggest crude oil users, would soon sign a preliminary agreement beginning an end to their 16-month trade war.

MIDEAST STOCKS-Most major Gulf markets up but banks hurt #Qatar - Agricultural Commodities - Reuters

MIDEAST STOCKS-Most major Gulf markets up but banks hurt Qatar - Agricultural Commodities - Reuters:

Most major Gulf stock markets rebounded on Wednesday, a day after tumbling on a rebalancing of MSCI indexes, while Qatar shares fell in early trade.

In Saudi Arabia, the benchmark index rose 0.3% with Al Rajhi Bank and Saudi Basic Industries increasing 1.3% and 0.8% respectively.

Global index provider MSCI on Tuesday implemented the final step of an increase in the weighting of mainland Chinese stocks, or A shares, in its widely followed emerging markets benchmark . Most Gulf stock indexes slipped into negative territory following the event, with Saudi leading the losses.

Dubai’s index rose 0.2%, as Dubai Islamic Bank gained 1.7% and DAMAC Properties leapt 3.6%.

Surprise Crude Build Disappoints Oil Bulls | OilPrice.com

Surprise Crude Build Disappoints Oil Bulls | OilPrice.com:

The American Petroleum Institute (API) has estimated a crude oil inventory build of 3.639 million barrels for the week ending November 21, compared to analyst expectations of a 418,000-barrel draw in inventory.

Last week saw a build in crude oil inventories of 5.954 million barrels, according to API data. The EIA’s estimates, however, reported a build of 1.4-million barrels for that week.

After today’s inventory move, the net draw has swung into build territory for the year, standing at 830,000 barrels for the 48-week reporting period so far, using API data.

Oil gains, bolstered again by U.S.-China trade talks - Reuters

Oil gains, bolstered again by U.S.-China trade talks - Reuters:

Oil prices rose on Tuesday after news that U.S. and Chinese officials discussed trade, while predictions for a weekly draw on U.S. crude stockpiles lent some support as well.

Brent crude futures LCOc1 gained 62 cents to settle at $64.27 a barrel, while West Texas Intermediate crude CLc1 rose 40 cents to settle at $58.41 a barrel.

The United States and China are close to agreement on the first phase of a trade deal, U.S. President Donald Trump said on Tuesday, after top negotiators from the two countries spoke by telephone and agreed to keep working on remaining issues.

In the last few months, markets have swung back and forth, rallying on headlines suggesting the barest progress, even as an agreement has yet to be nailed down.

#Saudi Aramco turns to Gulf funds to prop up IPO | Financial Times

Saudi Aramco turns to Gulf funds to prop up IPO | Financial Times:

Abu Dhabi is expected to invest about $1.5bn in Saudi Aramco, as Riyadh asks the region’s state-backed funds for billions of dollars to backstop the long-awaited flotation. 


Two people briefed on the move said Abu Dhabi’s decision to invest had come from the top, with the leadership keen to support its allies in Riyadh.

Saudi Aramco executives met with investors in the emirate this week following a decision by Riyadh not to market shares outside Saudi Arabia and its Gulf neighbours.

The company several weeks ago made an initial pitch to Abu Dhabi officials, including representatives from the emirate’s sovereign funds and government-related entities, seeking to persuade the oil-rich capital of the UAE to become a major investor in the IPO, according to one person briefed on the meeting.

Why foreign investors questioned Aramco's IPO valuation | FT

#Iran to Replace $11 Billion of Imports as Economic Crisis Bites - Bloomberg

Iran to Replace $11 Billion of Imports as Economic Crisis Bites - Bloomberg:

Iran plans to manufacture $11 billion worth of products in the next two years to replace some imports and help contend with crippling U.S.-led sanctions.

The Islamic Republic aims to produce electrical, automobile and telecommunications goods and double exports to 15 neighboring countries in order to reach a target value of $48 billion, Reza Rahmani, minister for industry, mining and trade, was cited as saying by state-run Islamic Republic News Agency.

Iran started to ban some 1,400 non-essential goods and commodities within weeks of a sharp decline in the value of the rial against the dollar last year, after the U.S. abandoned the 2015 nuclear deal and reimposed sanctions. The policy is designed to support local manufacturers and shore up foreign exchange supplies.

Qatar Broadcaster Reviews $500 Million Italian Football Deal - Bloomberg

Qatar Broadcaster Reviews $500 Million Italian Football Deal - Bloomberg:

Plans for a soccer match between Turin’s Juventus and Rome’s Lazio in Saudi Arabia next month have sparked a financial threat from a Qatari broadcaster, one of the Italian league’s main partners, which says the event endorses a country that has been pirating its premium sports broadcasts since before the last World Cup.

Over the past year, Qatar’s BeIN Media has been pressing Italy’s elite soccer league, Serie A, to scrap the matches in Saudi, with whom the league has a $22.5 million contract for three games over five seasons. The first match was held last January.

BeIN now says it will reconsider all its financial agreements with Italian soccer, worth around $500 million over a three-year cycle. The Qatari broadcaster accounts for some 55% of Serie A revenue from overseas rights -- bought via the league’s sports rights agency IMG -- with contracts to show matches in the Middle East, Asia and parts of Europe. The President of the Saudi Arabian Football Federation, Yasser Almisehal, said the government had no involvement in any piracy.

Aramco IPO retail subscription at $7.21 billion: lead manager - Reuters

Aramco IPO retail subscription at $7.21 billion: lead manager - Reuters:

Retail subscription for Saudi Aramco’s initial public offering (IPO) reached 27.04 billion Saudi riyals ($7.21 billion) on Tuesday, lead manager Samba Capital said.

The retail element of the sale so far amounts to a total of 845,101,020 shares, Samba Capital said in a statement.

The last day of subscription for the retail tranche of the share sale is Nov. 28, it said. Aramco launched the IPO on Nov. 3.

The oil giant said it plans to sell 1.5% of the company, or about 3 billion shares, at an indicative price range of 30 riyals to 32 riyals, valuing the IPO at as much as 96 billion riyals ($25.6 billion) and giving the company a potential market value of between $1.6 trillion and $1.7 trillion.

Expo 2020 unlikely to stop #Dubai's real estate downward trajectory: S&P - Reuters

Expo 2020 unlikely to stop Dubai's real estate downward trajectory: S&P - Reuters:

Expo 2020 is unlikely to improve the dire conditions of Dubai’s real estate market, S&P Global Ratings said, where residential property prices have fallen by over a quarter since 2014.

Dubai could attract 11 million foreign visitors to the Expo 2020 world fair, which starts in October next year, organizers have previously said.

But while this may give a boost to tourism and improve conditions for the retail sector, the emirate’s real estate market – crucial to Dubai’s economy – is unlikely to be impacted.

“We believe Expo 2020, just on the back of potential visitor flows to the emirate, will ease temporary pressures on hotels and retailers. However, it is unlikely to materially improve long-term conditions in the real estate sector,” S&P Global Ratings credit analyst Sapna Jagtiani said in a statement.

Ex-Barclays banker taken aback by fees #Qatar demanded, court hears - Reuters

Ex-Barclays banker taken aback by fees Qatar demanded, court hears - Reuters:

Roger Jenkins, a former senior Barclays banker tasked with securing a financial lifeline from Qatar at the height of the credit crisis, told a London fraud trial on Tuesday he had been taken aback at the fees demanded by the Gulf state.

Jenkins, 64, told a jury at the Old Bailey criminal court that he had expected Hussain Al-Abdullah, the negotiator for Qatar’s former prime minister Sheikh Hamad bin Jassim bin Jabr al-Thani, to play hardball when he and colleagues met him in his suite at London’s luxury Claridges Hotel on June 3, 2008.

But he said he was surprised when Al-Abdulla, known as Dr Hussain, demanded a fee of 3.75 percent for participating in the first part of what would become an 11 billion pound ($14 billion), two part capital raising over 2008.

Outgoing Lebanese PM withdraws candidacy for post

Outgoing Lebanese PM withdraws candidacy for post:

Outgoing Lebanese Prime Minister Saad Hariri on Tuesday withdrew his candidacy for the premiership, saying he hoped to clear the way for a solution to the political impasse amid weeks of anti-government protests.

Hariri resigned nearly a month ago in response to mass protests ignited by a severe financial crisis. His resignation met a key demand of the protesters but plunged the country into uncertainty, with no clear path to resolving its economic and political problems.

Politicians have failed to agree on the shape and form of a new government. Hariri had insisted on heading a government of technocrats, while his opponents, including the militant group Hezbollah, want a Cabinet made up of both experts and politicians.

The frustrated protesters have resorted to road closures and other tactics in an effort to pressure politicians into responding to their demands for a new government.

IEA Warns Of A Looming Oil Glut Ahead Of OPEC Meeting | OilPrice.com

IEA Warns Of A Looming Oil Glut Ahead Of OPEC Meeting | OilPrice.com:

Strong oil supply growth from non-OPEC countries puts a lot of pressure on OPEC and its Russia-led partners to act, and they will hopefully make the right decision for themselves and for the still ‘very fragile’ global economy, Fatih Birol, the Executive Director of the International Energy Agency (IEA), told Reuters in an interview on Tuesday.

OPEC and its non-OPEC allies are meeting in Vienna next week to discuss the state of the global oil market and the fate of their production cut deal. The meeting comes as global oil demand growth has slowed down this year amid weakening economic growth and the continued trade spat between the two biggest economies in the world, the United States and China.

The meeting is expected to decide how the OPEC+ group of partners will proceed with the production cuts that are currently in place until March 2020. The market expects the group to come up with a decision next week—either to roll over the cuts, or to deepen them, otherwise analysts expect a sell-off in oil.

MIDEAST STOCKS-Gulf stocks slide as MSCI rebalancing prompts passive fund outflows - Reuters

MIDEAST STOCKS-Gulf stocks slide as MSCI rebalancing prompts passive fund outflows - Reuters:

Gulf stock markets fell on Tuesday, with
the Saudi index leading the losses after MSCI rebalancing that
triggered passive fund outflows, while Egyptian stocks also came
under pressure.

Saudi Arabia's benchmark index slid 1.7%, dragged
down by a 3.3% drop in Al Rajhi Bank and a 4% plunge
in National Commercial Bank.

Among other stocks, Saudi Basic Industries and
Savola Group eased 3% and 5.6% respectively.

Global index provider MSCI on Tuesday implemented the final
step of the weight increase of mainland Chinese stocks, or A
shares, in its widely followed emerging markets benchmark

Why the Gulf states are betting on sport | Financial Times

Why the Gulf states are betting on sport | Financial Times:

Eddie Hearn was feeling emotional. Flanked by boxers Anthony Joshua, a former heavyweight champion, and Andy Ruiz Jnr, a Mexican-American fighter who shocked the sport by winning their bout in June, the British sports promoter was in Diriyah, a historical site in the conservative heartland of Saudi Arabia, talking up the next championship bout.

In comparison to the usual pre-fight press conference, it was a polite affair. The fighters avoided trading insults and praised their hosts. Interviews were conducted after prayers.

“Sometimes our sport is very narrow minded,” said Mr Hearn, the mud-brick remains of the ruling al-Saud family’s ancestral home providing the backdrop to the setting. “There’s Las Vegas, there’s New York, there’s London. [But] there’s a whole world out there and now there’s Saudi Arabia for boxing.”

#Turkey Expands Crisis-Era Swap Deal With #Qatar to $5 Billion - Bloomberg

Turkey Expands Crisis-Era Swap Deal With Qatar to $5 Billion - Bloomberg:

Turkish and Qatari central banks are boosting the size of a currency-swap deal that dates back to last year’s lira crisis, extending the gas-rich Gulf nation’s support for its ally by adding to its foreign-exchange reserves.

Clinched during President Recep Tayyip Erdogan’s visit to Doha, the agreement will raise the limit on the existing arrangement to $5 billion from $3 billion. The goal is to boost “bilateral trade in respective local currencies and to support financial stability of the two countries,” Turkey’s central bank said in a statement on Tuesday.

Drawn closer by a succession of crises in both countries, the latest commitment cements an alliance that began to deepen after a failed 2016 coup against Erdogan, when he received backing from Qatar’s rulers. Turkey returned the favor a year later by siding with Qatar after it came under an economic boycott from a group of countries led by Saudi Arabia, Turkey’s rival in the Middle East.

#SaudiArabia Aramco IPO News: #AbuDhabi Plans $1.5 Billion Stake - Bloomberg

Saudi Arabia Aramco IPO News: Abu Dhabi Plans $1.5 Billion Stake - Bloomberg:

Abu Dhabi is planning to put as much as $1.5 billion into Saudi Aramco’s initial public offering, as the oil giant taps friendly neighbors to prop up a deal that’s so far failed to draw foreign investors, people with knowledge of the matter said.

The emirate is seeking to make the investment through one or more state-linked entities, according to the people, who asked not to be identified because the information is private. Aramco representatives are meeting officials of some top Abu Dhabi funds and companies this week to discuss the potential commitments, the people said.

Bringing in a major investor from outside the kingdom would be a relief for Saudi Arabia after plans to market the IPO globally were abandoned. Aramco had high hopes of drawing in sovereign investors, including a big commitment from China, but has yet announce any firm commitments.

Revealed: #AbuDhabi's plan to become global air cargo hub - Arabianbusiness

Revealed: Abu Dhabi's plan to become global air cargo hub - Arabianbusiness:

The program will culminate with the inauguration of Etihad Cargo’s future home, a new air cargo terminal in the East Midfield section of the airport.

Abu Dhabi Airports and Etihad Cargo on Tuesday announced a major project to enhance Abu Dhabi International Airport into a global air cargo centre of excellence.

The two entities said they will implement a multi-phased cargo infrastructure development strategy, starting with the imminent upgrade of Etihad’s existing air cargo terminal facilities on the Southside airport perimeters.

The program will culminate with the inauguration of Etihad Cargo’s future home, a new air cargo terminal in the East Midfield section of the airport, an area designated by Abu Dhabi Airports for future integrated cargo, logistics and integrator activities, a statement said.

Singapore's Hyflux strikes $300 million rescue deal with #UAE's Utico - Reuters

Singapore's Hyflux strikes $300 million rescue deal with UAE's Utico - Reuters:

Embattled Singapore water firm Hyflux (HYFL.SI) said on Tuesday it had entered a restructuring deal worth S$400 million ($293 million) with United Arab Emirates-based utility Utico FZC.

The deal will see Utico subscribe to S$300 million in Hyflux shares, giving it a 95% stake, and inject working capital of S$100 million, the Singapore company said in a statement.

The agreement comes after debt-laden Hyflux - once lauded as a national champion running a strategically important water source for the city-state - entered a court-supervised restructuring process this year that threatened to wipe out the holdings of tens of thousands of retail investors.

Oil firms as optimism returns to U.S.-China trade talks - Reuters

Oil firms as optimism returns to U.S.-China trade talks - Reuters:

Oil prices rose on Tuesday on hopes of progress toward a trade agreement between the United States and China, the world’s biggest oil users, and predictions of a draw in U.S. crude inventories.

Brent crude LCOc1, the international benchmark for oil prices, was up 20 cents at $63.85 at 0958 GMT. West Texas Intermediate crude CLc1 rose 19 cents to $58.20.

Top U.S. and Chinese trade negotiators held a phone call on Tuesday morning, China’s Commerce Ministry said, as the two sides try to hammer out a preliminary “phase one” deal in a trade war that has dragged on for 16 months.

MIDEAST STOCKS-DIB aids #Dubai; most major Gulf markets fall - Reuters

MIDEAST STOCKS-DIB aids Dubai; most major Gulf markets fall - Reuters:

Most major Gulf stock markets fell on Tuesday, with Abu Dhabi leading the losses, though Dubai bucked the trend supported by Dubai Islamic Bank (DIB).

In Dubai, the index rose 0.2% with Dubai Islamic Bank adding 0.8%. The United Arab Emirates’ largest sharia-compliant lender called a shareholders meeting on Dec. 17 to approve acquisition of the unlisted Noor Bank.

Elsewhere, budget airline Air Arabia advanced 2.1% and Emaar Development gained 2.7%.

However, the gains were capped by losses in Emirates NBD , the lender traded down 0.8%.

Why #SaudiArabia's Delayed Aramco IPO Is No Ordinary Share Sale - Bloomberg

Why Saudi Arabia's Delayed Aramco IPO Is No Ordinary Share Sale - Bloomberg:

Saudi Aramco’s much heralded and oft-delayed initial public offering is going ahead -- albeit in a scaled-down version of the original plan by Saudi Crown Prince Mohammed bin Salman. There’ll be no grand opening on the London or New York stock exchanges -- the sale is restricted to the Saudi bourse and won’t even by marketed to most international money managers. Investors will be able to purchase just 1.5% of the world’s most profitable company -- about half what was previously considered. Even so, the share sale in early December will come close to, or even surpass, the record for the biggest IPO in history.

Saudi Crackdown Extended as Intellectuals Said to Be Detained - Bloomberg

Saudi Crackdown Extended as Intellectuals Said to Be Detained - Bloomberg:

Saudi Arabia arrested at least eight intellectuals last week as it extended a crackdown on political dissent that’s sparked condemnation abroad.

Those detained included Fouad Al-Farhan, a prominent blogger; Abdulmajeed al-Buluwi, a writer and political analyst; and Wa’ad al-Muhaya, a self-taught philosophy enthusiast, two people familiar with the arrests said, asking not to be named.

Many of the men held were once active on social media or websites and supported the Arab Spring revolutions of 2011 -- a wave of uprisings against autocratic regimes that was viewed as a destabilizing threat by the Saudi monarchy. However, they’d largely stopped writing years ago and maintained low profiles, starting small businesses or joining the government.

It’s unclear what charges they face, and the government’s Center for International Communication didn’t immediately respond to a request for comment.

Biggest LNG Producer Targets 64% Jump in Output Capacity by 2027 - Bloomberg

Biggest LNG Producer Targets 64% Jump in Output Capacity by 2027 - Bloomberg:

Qatar, the world’s biggest supplier of liquefied natural gas, plans to boost output capacity by almost two thirds after it adds production facilities to exploit recently discovered reserves.

The Persian Gulf state will expand its LNG capacity to 126 million tons a year by 2027, thanks to gas from a newly explored section of the planet’s largest field, Energy Minister Saad Sherida Al Kaabi said at a news briefing in Doha. Qatar can currently produce 77 million tons of LNG annually and expects to raise capacity to 110 million tons by 2024. 

Qatar’s massive North Field extends onshore into the area around the industrial city of Ras Laffan, Al Kaabi said on Monday. “Studies and well tests have also confirmed the ability to produce large quantities of gas from this new sector,” he said.

#Dubai Islamic Bank board approves share swap for Noor Bank acquisition | ZAWYA MENA Edition

Dubai Islamic Bank board approves share swap for Noor Bank acquisition | ZAWYA MENA Edition:

The board of directors of Dubai Islamic Bank (DIB) has proposed the acquisition of Noor Bank through a strategic investment and approved a share swap ratio of 1 new DIB share for every 5.49 shares of Noor Bank through the issuance of 651,159,198 new DIB shares.

DIB’s general assembly will convene on December 17 for considering, and if seen fit, passing resolutions relating to all matters regarding the proposed acquisition, DIB said in a statement.

In case of no quorum, a second meeting is set for December 24.

The proposed strategic investment is by issuing new shares in DIB for an in-kind contribution of 99.999 percent of Noor Bank’s issued share capital held by Noor Investment Group and Emirates Investment Authority, who will subsequently become strategic investors in DIB, the statement said.

#Saudi Aramco meets ADIA, #AbuDhabi funds in IPO pitch: sources - Reuters

Saudi Aramco meets ADIA, Abu Dhabi funds in IPO pitch: sources - Reuters:

Saudi Aramco’s executives met officials of Abu Dhabi Investment Authority (ADIA) on Monday to discuss a potential investment in the oil giant’s share sale that could raise as much as $25.6 billion, three sources familiar with the talks said.

Aramco has struggled to attract a major cornerstone or anchor investor for its IPO, which could be potentially the world’s biggest. It has also approached Kuwait Investment Authority (KIA) and Singapore’s GIC.

The meeting between Aramco and ADIA, one of the world’s biggest sovereign wealth funds, was separate to an investor roadshow in Abu Dhabi, the second leg of a Gulf marketing effort by Aramco and its advisors.

A similar roadshow was held in Dubai on Sunday.

Oil steadies on U.S.-China trade talks optimism - Reuters

Oil steadies on U.S.-China trade talks optimism - Reuters:

Oil prices were little changed on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their trade war.

Brent crude futures LCOc1 were down 6 cents at $63.33 a barrel by 12:50 p.m. (1750 GMT) West Texas Intermediate (WTI) crude CLc1 was up 1 cent at $57.78.

“Oil prices are surprisingly steady on Monday, despite the normal sensitivity to trade headlines,” Craig Erlam, senior market analyst at OANDA said.

“Momentum is clearly lacking in the more recent rallies in crude, although the strong bounce late last week may give bulls some cause for optimism.”

MIDEAST STOCKS-Global mood lifts most of Gulf; Egypt extends losses - Reuters

MIDEAST STOCKS-Global mood lifts most of Gulf; Egypt extends losses - Reuters:

All major Gulf bourses rose on Monday,
taking a cue from global equity markets as investors turned
optimistic about some progress in U.S.-China trade talks, but
Egypt remained pressured due to sell-off in blue chip stocks.

A Chinese state-backed newspaper reported that Beijing and
Washington were "very close" to an initial trade agreement,
adding to optimism from Friday, when the presidents of both
countries reiterated their desire for a deal.

In Saudi Arabia, the benchmark index edged up 0.2%,
driven by a 2.9% hike in Saudi British Bank and a 0.5%
increase in Al Rajhi Bank.

In the previous session, the index snapped a five-day rally,
which was triggered following a lending boom related to Saudi
Aramco's public listing.

Gas ‘Witch’s Brew’ Has U.S. Exporters Facing Worst-Case Scenario - Bloomberg

Gas ‘Witch’s Brew’ Has U.S. Exporters Facing Worst-Case Scenario - Bloomberg:

A global glut of natural gas has gotten so massive that U.S. exporters could soon face their worst-case scenario: Halting shipments to get supply and demand back in balance.

Prices for the heating and power-plant fuel may collapse in Europe and Asia next year to levels that would force U.S. liquefied natural gas suppliers to curb output, Citigroup Inc. said in a note to clients last week. Morgan Stanley sees as much as 2.7 billion cubic feet a day of American exports curtailed around the second or third quarter, assuming normal weather. That’s about half the volume now being sent abroad.

China’s demand for U.S. LNG has plunged amid the trade war, while Europe’s gas storage is almost full and tankers carrying the fuel are taking unusually long journeys in search of better prices. That’s created a “toxic witch’s brew” that’s making it harder to find a home for American exports, according to Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts in New York.

#Saudi Aramco IPO: Next Stop #AbuDhabi: Aramco in Regional Push to Sell Shares - Bloomberg

Saudi Aramco IPO: Dubai Investors Are Being Pitched - Bloomberg:

Saudi Aramco will meet investors in Abu Dhabi on Monday to drum up support for its share sale after pitching the offering in Dubai.

Chief Financial Officer Khalid Al-Dabbagh on Sunday briefed potential investors on strategy and dividend plans at the Ritz-Carlton hotel in Dubai’s financial district, according to several participants who attended, but asked not to be identified because the meetings are private.

The event was invitation-only and participants wore name badges to access the ballroom area where the sessions were held. Attendees left with printed copies of Aramco’s more-than-600-page prospectus, but said they hadn’t received any information that wasn’t previously disclosed.

#Dubai Economy Grew 2.1% in 1st Half of 2019: Dubai Media Office - Bloomberg

Dubai Economy Grew 2.1% in 1st Half of 2019: Dubai Media Office - Bloomberg:

Dubai’s economy expanded 2.1% in the first half, driven by growth in transport and storage.

Total gross domestic product reached 208.2 billion dirham ($56.7 billion) during the first six months of this year, at constant prices compared to the same period last year, according to the Emirate’s Media Office citing the Dubai Statistics Center. 


Trade hit a real growth rate of 3.3% in light of the increase in foreign trade exchange and the increase of re-exports by 3% to reach 210 billion dirham, Arif al-Muhairi, director of Dubai Statistics Center, said.

Figures released last week showed GDP slowed to 1.9% in 2018, from 3.1% the previous year. A property glut and faltering demand have dragged the Middle East’s commercial hub since real estate prices peaked in 2014.

Gulf banks outlook for 2020 stable amid substantial liquidity: Moody's | ZAWYA MENA Edition

Gulf banks outlook for 2020 stable amid substantial liquidity: Moody's | ZAWYA MENA Edition:

The outlook of Gulf Cooperation Council (GCC) banking systems is stable for next year driven mainly by strong capital buffers, solid economic growth and substantial liquidity, according to Moody’s Investors Services. 


"Government spending programs will push average non-hydrocarbon GDP growth to 2.6 percent in 2020, providing favourable operating conditions for the region's banks," said Nitish Bhojnagarwala, Vice President - Senior Credit Officer at Moody's.

"Declining interest rates will start to pressure banks' net interest margins but margins will remain strong compared with global peers." he added.

UPDATE 1- #Qatar LNG production to rise to 126 mln T by 2027- QP CEO - Reuters

UPDATE 1-Qatar LNG production to rise to 126 mln T by 2027- QP CEO - Reuters:

Qatar’s production of liquefied natural gas (LNG) will rise to 126 million tonnes per year by 2027 from 77 million tonnes now, the chief executive of state energy giant Qatar Petroleum said on Monday.

The expansion of tiny but gas-rich Qatar’s LNG facilities, already the world’s largest, is one of the energy sector’s most lucrative projects, and the world’s top oil and gas majors have been racing to secure a stake.

The estimated increase in Qatar’s LNG production comes after exploration work in the expanded North Field mega project showed that confirmed gas reserves of the field exceeded 1,760 trillion cubic feet, Saad al-Kaabi told reporters in Doha.

That would also boost Qatar’s output to 6.7 million barrels of oil equivalent per day (boed) from around 4.8 million boed in the next 8 years, Kaabi said.

RPT-COLUMN-Oil traders bet on economic upswing in 2020: Kemp - Reuters

RPT-COLUMN-Oil traders bet on economic upswing in 2020: Kemp - Reuters:

Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.

Most of the divergence can be explained by differing assumptions about global growth in 2020.

The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries are all projecting that the oil market will be in surplus in 2020.

Each of the three agencies is forecasting that non-OPEC oil supplies will increase around 1 million barrels per day (bpd) faster than global oil consumption next year.

Oil gains on U.S.-China trade talks optimism - Reuters

Oil gains on U.S.-China trade talks optimism - Reuters:

Oil prices rose on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their bitter trade war.

West Texas Intermediate (WTI) crude CLc1 rose 26 cents, or 0.45% to $58.03 a barrel by 0759 GMT, having ended last week little changed after tracking the trade talks through their ups and downs.

Brent crude futures LCOc1 were at $63.73, up 34 cents or 0.54%, the benchmark having also finished little changed last week.

“It is still all about trade talks,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “It seems to be dominating markets action at the moment.”

MIDEAST STOCKS- #Saudi slips on banks; most other Gulf markets rise - Reuters

MIDEAST STOCKS-Saudi slips on banks; most other Gulf markets rise - Reuters:

Saudi Arabian stocks fell on Monday, dragged by banks, while other major Gulf markets rose mostly on the back of financials.

In Saudi Arabia, the benchmark index fell 0.3%, with Al Rajhi Bank dropping 1.3% and Alinma Bank shedding 0.6%.

Last week, the index rose for five sessions in a row, supported by banking stocks on a lending boom related to Saudi Aramco’s public listing.

Saudi banks are marketing loans to help locals subscribe Saudi Arabian Oil Co’s (Aramco) initial public offering (IPO), with some offering four times the usual lending limit, Reuters reported citing two financial sources.

#Dubai Property May Not See Meaningful Recovery in Near Term: S&P - Bloomberg

Dubai Property May Not See Meaningful Recovery in Near Term: S&P - Bloomberg:

Dubai’s real estate market may not see a meaningful recovery in the near term because of "supply-demand imbalance," according to S&P Global Ratings.

S&P said it believes residential prices have fallen by about 10% since its last report on the emirate’s property sector in February. "The outlook remains weak in the fourth quarter as new supply hits the market."

"We believe Expo 2020, just on the back of potential visitor flows to the emirate, will ease temporary pressures on hotels and retailers," credit analyst Sapna Jagtiani said in a note. "However, it is unlikely to materially improve long-term conditions in the real estate sector."

Creditors of #UAE's Al Jaber consider enforcing debt claims: sources - Reuters

Creditors of UAE's Al Jaber consider enforcing debt claims: sources - Reuters:

Creditors of Abu Dhabi-based Al Jaber Group are considering enforcing claims against the owners of the group after delays in executing a restructuring agreement, the latest in a long-running debt dispute, two sources familiar with the matter said. 


Al Jaber, best known as a contractor but with interests across a range of sectors, has struggled since a construction downturn in the United Arab Emirates after the global financial crisis.

The group agreed late last year restructuring terms for 5.9 billion dirhams ($1.6 billion) of debt, in a deal that would have seen the company reduce its obligations through asset sales and a debt buyback mechanism with a 52% discount.

#Saudi Aramco markets IPO in Dubai after approaching Kuwait fund - Reuters

Saudi Aramco markets IPO in Dubai after approaching Kuwait fund - Reuters:

Saudi Aramco met investors in Dubai on Sunday to market its initial public offering (IPO), after trying to secure demand from Kuwait’s sovereign wealth fund for the deal, worth up to $25.6 billion, which relies heavily on local and regional buyers.

Top executives of the Saudi state-owned oil giant, including Aramco’s Chief Executive Amin Nasser, met officials of Kuwait’s sovereign wealth fund weeks ago, a source familiar with the matter said, confirming an earlier report on Sunday in the Kuwaiti newspaper Alrai.

Meanwhile, Aramco’s management including its finance head and advisers met with institutional investors at an IPO roadshow in Dubai on Sunday, the second outside Riyadh after the company decided to cancel all roadshows in developed markets.

#Saudi Aramco won't breach maximum weight for firms in Saudi index: Argaam - Reuters

Saudi Aramco won't breach maximum weight for firms in Saudi index: Argaam - Reuters:

Saudi Aramco’s weighting in Saudi Arabia’s main stock index once the oil giant has listed shares is not expected to breach the maximum limit set by the Gulf kingdom’s Tadawul exchange, a senior executive said on Sunday.

“There is a ceiling for the maximum weight any listed company on the Saudi index can reach, it will be around 15%. It is unlikely that Aramco’s weight will reach the maximum level,” Argaam financial website quoted Tadawul chief executive, Khalid al-Hussan, as saying.

Saudi Aramco plans to sell 1.5% of the company to raise $25.6 billion in a deal that is the centerpiece of Crown Prince Mohammed bin Salman’s plan to raise funds to help diversify the kingdom’s oil-dependent economy.

MIDEAST STOCKS- #Saudi snaps five days of gains with most Gulf markets subdued - Reuters

MIDEAST STOCKS-Saudi snaps five days of gains with most Gulf markets subdued - Reuters:

The Saudi Arabian stock market snapped a
five-day rising streak on Sunday with lenders taking a breather
after riding high on a lending boom related to Saudi Aramco's
public listing.

Other markets in the region were mostly lower as concerns
surrounding global trade persisted.

To help local Saudis to buy Aramco shares, banks are
marketing loans, with some offering four times the usual lending
limit, two financial sources told Reuters earlier this month.

The jump in lending has prompted Saudi Arabia's central bank
to monitor banking sector liquidity on a daily basis but there
have not been any issues so far, the central bank governor said.

Algeria Squeezed In Europe’s Gas Market by a Flood of LNG - Bloomberg

Algeria Squeezed In Europe’s Gas Market by a Flood of LNG - Bloomberg:

Algeria’s natural gas pipeline exports to Europe are getting squeezed by cheaper Russian supplies and a global abundance of the liquefied form of the fuel.

European clients of Sonatrach have “greatly reduced their demand” for conventional gas from Algeria, resulting in a 25% drop the level of sales expected this year, said Ahmed El-Hachemi Mazighi, vice-president of marketing at the state-owned energy company.

Algeria is the third-biggest gas supplier to Europe. Its lower pipeline exports are evidence of how new LNG supplies from the U.S. to Australia and Russia are overwhelming the market and driving prices lower. That’s reduced the competitiveness of the north African country’s pipeline gas contracts, which are mostly tied to oil prices, according to the energy consultant Wood Mackenzie.

#Saudi Banks Extend Gains to Outperform Main Index: Inside EM - Bloomberg

Saudi Banks Extend Gains to Outperform Main Index: Inside EM - Bloomberg:

Most Saudi Arabian banking stocks climbed, even as the main local gauge fell, ahead of Saudi Aramco’s giant listing.

The Tadawul Banks Index gained as much as 0.5% with more than half of its members advancing, while the main local gauge slipped 0.2% as of 11:40 a.m. in Riyadh. Al Rajhi Bank and National Commercial Bank contributed the most to the sector-gauge’s increase. 

Last week the index tracking 11 banks outperformed the main gauge. That’s partly because lenders are expected to get a revenue boost by providing clients margin loans and brokerage services to customers buying Aramco shares.

OPEC+ Can't Afford Not to Act on Oil Amid Trade Wars and Protests - Bloomberg

OPEC+ Can't Afford Not to Act on Oil Amid Trade Wars and Protests - Bloomberg:

In less than two weeks, OPEC and its allies are due to meet to decide on the next phase of their deal for managing the supply of crude oil, and therefore its price. Expect them to decide to do nothing for another six months, kicking the can further down the road even though their own forecasts show a need for deeper cuts to balance the market.

Outlooks for supply and demand indicate that they need to reduce output further during the first half of 2020 if they are to keep inventories from building again. But it looks more likely that the group, known as OPEC+, will risk a period of price weakness that they believe will be short-lived, if it materializes at all.

#Saudi Aramco's CEO met Kuwait sovereign fund to discuss IPO: source - Reuters

Saudi Aramco's CEO met Kuwait sovereign fund to discuss IPO: source - Reuters:

Saudi Aramco’s top executives have met officials of Kuwait’s sovereign wealth fund to convince them to invest in the oil giant’s initial public offering (IPO), which could raise as much as $25.6 billion, a source familiar with the matter said.

The meeting, which was led by Aramco’s Chief Executive Amin Nasser, took place weeks ago, the source said, confirming an earlier report on Sunday in the Kuwaiti newspaper Alrai.

The Kuwaiti newspaper said the Kuwait Investment Authority’s (KIA) decision to participate in the deal or not will depend on a “study” of the IPO.

#Saudi central bank says Aramco IPO not causing liquidity issues for banks - Reuters

Saudi central bank says Aramco IPO not causing liquidity issues for banks - Reuters:

Saudi Arabia’s central bank is monitoring banking indicators on a daily basis and is not seeing any impact on liquidity from oil giant Aramco’s initial public offering (IPO), its governor said on Sunday.

Saudi Arabian Monetary Authority governor Ahmed al-Kholifey told Reuters on the sidelines of a conference that he had no concerns about liquidity due to the size of Aramco’s IPO.

“We are monitoring all indicators on a daily basis and if there is any squeeze on liquidity, definitely we’ll be injecting liquidity but so far ... everything is assuring,” he said.

Aramco plans to sell 1.5% of the company, giving it a potential market value of as much as $1.7 trillion in a deal that is the centrepiece of Crown Prince Mohammed bin Salman’s plans to diversify the oil-dependent economy.

MIDEAST STOCKS- #Saudi rises for a sixth day, #Dubai gains on financials - Reuters

MIDEAST STOCKS-Saudi rises for a sixth day, Dubai gains on financials - Reuters:

Saudi Arabia’s stock market rose in early trade on Sunday and was set for a sixth straight session of gains, led by banking shares, which also bolstered the Dubai index.

The benchmark Saudi index edged up 0.1%, with the kingdom’s largest lender National Commercial Bank increasing 1.6%, and Saudi British Bank gaining 1%.

The country’s banking sector continues to enjoy a high level of liquidity, the kingdom’s central bank governor said on Sunday.

The statement could allay market fears that Saudi oil giant Aramco’s initial public offering (IPO) - which could be the world’s largest so far - might soak up market liquidity as Saudi investors direct their wealth towards the offering.

Aramco IPO: It's a thanks, but no thanks from Malaysia's Petronas - Reuters

Aramco IPO: It's a thanks, but no thanks from Malaysia's Petronas - Reuters:

With Saudi Aramco yet to name any major foreign investors in its upcoming share sale, Malaysia’s state energy company Petronas [PETR.UL] decided to take a pass on Friday.

Expectations that Aramco customers and allies around the world would take significant stakes in the company have so far not materialized, with the listing looking like it will be reliant on local retail and institutional investors.

Aramco, which kicked off the share sale process on Nov. 3 after a series of false starts, declined to comment to Reuters on the lack of any named anchor investors in its listing so far.

Last week Russia’s second largest oil producer Lukoil (LKOH.MM) said it would not be investing in the initial public offering (IPO) which is likely to rank Aramco as the world’s most valuable company.

With young prince and PR push, #SaudiArabia ready to take over G20 reins - Reuters

With young prince and PR push, Saudi Arabia ready to take over G20 reins - Reuters:

Saudi Arabia is set to take over the G20 presidency for a year as it seeks to bounce back from an uproar over its human rights record and last year’s killing of journalist Jamal Khashoggi.

The kingdom’s new foreign minister, a prince with diplomatic experience in the West, landed in Japan’s Nagoya city on Friday to meet with his counterparts from the Group of 20 nations.

Prince Faisal bin Farhan Al Saud was appointed in October in a partial cabinet reshuffle, joining a new generation of royals in their 40s who rose to power under Crown Prince Mohammed bin Salman, 34, the de facto ruler of the world’s top oil exporter.

Saudi Arabia - a key U.S. ally in confronting Iran - has faced heavy Western criticism over the murder of Saudi national Khashoggi, its detention of women’s rights activists and its role in the devastating war in Yemen.

Column: Oil traders bet on economic upswing in 2020: Kemp - Reuters

Column: Oil traders bet on economic upswing in 2020: Kemp - Reuters:

Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.

Most of the divergence can be explained by differing assumptions about global growth in 2020.

The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries are all projecting that the oil market will be in surplus in 2020.

Each of the three agencies is forecasting that non-OPEC oil supplies will increase around 1 million barrels per day (bpd) faster than global oil consumption next year.

Oil pulls back from two-month highs on China trade worries - Reuters

Oil pulls back from two-month highs on China trade worries - Reuters:

Oil prices fell on Friday, pulling back from two-month highs as concern over U.S.-China trade talks overshadowed expectations of an extension to OPEC+ production cuts.

Brent crude futures LCOc1 eased 58 cents to settle at $63.39 a barrel, having touched a high of $64.27 early in the session. West Texas Intermediate crude (WTI) CLc1 fell 81 cents to settle at $57.77 a barrel, dropping from its session high of $58.74. 


After paring their gains, both benchmarks ended the week little changed. 


“The U.S.-China situation isn’t looking very positive, so that took some of the steam out of the rally you had this week,” said John Kilduff, a partner at Again Capital Management in New York.

#Saudi Aramco looks for patriotic IPO support close to home | Financial Times

Saudi Aramco looks for patriotic IPO support close to home | Financial Times:

Saudi Aramco rarely advertises locally but in recent weeks the state oil company has commandeered almost every advertising billboard in Saudi Arabia’s big cities. 


“Soon on Tadawul,” the ads read, in a reference to the stock exchange in the capital Riyadh where the oil company plans to list as soon as next month.

The kingdom had always planned to market some Saudi Aramco shares to local retail investors. But the domestic market is now vital, after a lukewarm foreign reception led the company this week to abandon its plans to market shares to investors outside of Saudi Arabia and its Gulf neighbours.

National Bank of #Kuwait sells $750 mln of perpetual bonds - Reuters

National Bank of Kuwait sells $750 mln of perpetual bonds - Reuters:

National Bank of Kuwait (NBK) sold $750 million of perpetual bonds offering a 4.5% yield, a document by one of the banks leading the deal showed on Thursday.

Citi, JPMorgan, NBK Capital and Standard Chartered were hired as global coordinators to arrange the issue.

Perpetual bonds are similar to an equity instrument in that they have no maturity date.

#UAE in weapons making push as allies restrict sales - Reuters

UAE in weapons making push as allies restrict sales - Reuters:

The United Arab Emirates (UAE) is making a push to develop high-tech military hardware that would give it control over critical defense capabilities and lessen reliance on imports.

Wary of threats from rival Iran, and concerned over moves by some allies to hold up arms sales, the UAE is reshaping a military industry already seen as the region’s most sophisticated.

State defense companies have been brought together to form EDGE, a $5-billion conglomerate to spearhead development of advanced weapons for the country’s military.

Those ambitions were put on display at this week’s Dubai Airshow where the military handed an EDGE company a $1 billion contract for guided missiles.

Oil holds near two-month high on OPEC+ extension expectations - Reuters

Oil holds near two-month high on OPEC+ extension expectations - Reuters:

Oil prices held near two-month highs on Friday and were set for a third consecutive week of gains, boosted by expectations of an extension to OPEC+ production cuts although doubts over U.S. and China trade talks capped gains.

Brent crude futures LCOc1 dropped 6 cents to $63.91 a barrel by 0908 GMT, while West Texas Intermediate (WTI) crude futures CLc1 fell 21 cents to $58.37 per barrel.

Prices touched their highest since late September on Thursday after Reuters reported that the Organization of the Petroleum Exporting Countries (OPEC) and Russia are likely to extend existing production cuts by another three months to mid-2020 when they meet on Dec. 5 and 6.

#Saudi Aramco order book reaches 73 billion riyals so far: Samba - Reuters

Saudi Aramco order book reaches 73 billion riyals so far: Samba - Reuters:

Saudi Aramco’s initial public offering (IPO) has attracted approximately 73 billion riyals ($19.47 billion) in institutional and retail orders so far, Saudi Arabia’s Samba Financial Group said on Thursday.

Some 1.8 million retail subscribers have injected more than 14 billion riyals into the IPO so far, Samba, one of the banks managing the deal, said in a statement sent to Reuters.

Institutional subscriptions amounted to 58.4 billion riyals and 1.82 billion subscribed shares, it added.

“Retail and Institutional subscription levels for the first five days of the offering have reached an unprecedented scale, demonstrating the confidence of investors in Saudi Aramco,” said Rania Nashar, vice chairman of Samba Capital, the investment arm of the bank, in the statement.

Oil rises to two-month high on hopes of longer OPEC cuts, U.S.-China trade deal - Reuters

Oil rises to two-month high on hopes of longer OPEC cuts, U.S.-China trade deal - Reuters:

Oil prices rose more than 2% on Thursday to the highest in nearly two months following a Reuters report that OPEC and its allies are likely to extend output cuts until mid-2020 and fresh signs that China had invited U.S. trade negotiators for a new round of talks.

Brent crude LCOc1 ended the session up $1.57, or 2.5%, at $63.97 a barrel, while West Texas Intermediate (WTI) crude CLc1 settled up $1.57, or 2.8%, to $58.58. 


WTI touched a session high of $58.67 a barrel, the highest since Sept. 23 and Brent climbed to a high of $64.03, the highest since Sept. 24.

To support oil prices, the Organization of the Petroleum Exporting Countries and its allies are likely to extend output cuts to June when they meet next month, according to OPEC sources.

MIDEAST STOCKS-Financials hit most of Gulf, Egypt continues to slide - Reuters

MIDEAST STOCKS-Financials hit most of Gulf, Egypt continues to slide - Reuters:

Most Major Gulf stock markets fell on
Thursday, weighed down by financial stocks and falling oil
prices, while Egypt extended a losing streak to a fourth day.

Oil prices edged lower as fresh tensions between the United
States and China over protests in Hong Kong fuelled concern that
a deal to end a trade war between the world's top two economies
may be further delayed.

The Abu Dhabi stock index was down 1%, with First Abu
Dhabi Bank, the largest lender in the United Arab
Emirates, dropping 0.8% and Abu Dhabi Commercial Bank
falling 1%. International Holding (IHC) was down 5.7%.

Alibaba, Aramco Share Sale Bonanza Fails to Deliver Banks Fee Windfall - The New York Times

Alibaba, Aramco Share Sale Bonanza Fails to Deliver Banks Fee Windfall - The New York Times:

A late-year rush of giant global share sales led by Alibaba's $13 billion Hong Kong listing and Aramco's $26 billion initial public offering is failing to deliver an equivalent payday for equities bankers.

Filings on Thursday revealed 17 banks will split up to $32.3 million for Alibaba Group's Hong Kong deal, which will raise up to $12.9 billion for the Chinese e-commerce giant.

Earlier this week, sources told Reuters that banks working on Saudi Aramco's IPO would split fees worth 0.35% of the amount raised, meaning at the top of its pricing range, raising $25.6 billion, fees would reach $90 million.

The numbers pale in comparison to the $300 million banks made from Alibaba's own record IPO of $25 billion in 2014. The record fee payout was the $550 million banks earned for the $19.6 billion IPO of Visa in New York in 2008.

RPT-OPEC+ likely to extend oil supply cuts until June - sources - Reuters

RPT-OPEC+ likely to extend oil supply cuts until June - sources - Reuters:

OPEC and its allies are likely to extend existing oil output cuts when they meet next month until mid-2020, with non-OPEC oil producer Russia supporting Saudi Arabia’s push for stable oil prices amid the listing of state oil giant Saudi Aramco. 


The Organization of the Petroleum Exporting Countries meets on Dec. 5 at its headquarters in Vienna, followed by talks with a group of other oil producers, lead by Russia, known as OPEC+. The current oil supply cuts run through to March 2020.

On Dec. 5, Saudi Arabia is set to announce the final pricing of the initial public offering of Aramco, in what it hopes will be the world’s largest IPO. The oil price at the time is likely to be key to Aramco’s listing, expected around mid-December.