Tesla rival Lucid Motors wants to build factory in Saudi Arabia:
A US-based electric-vehicle company that raised more than $1 billion from Saudi Arabia wants to build a factory in the Kingdom, and says its mission to build “the best car in the world” is well underway.
The California-based Lucid Motors is developing its first model, the Air, which it hopes to sell for more than $100,000 when it enters production in less than two years’ time.
Financial backing from Saudi Arabia’s Public Investment Fund (PIF), announced last year, will allow Lucid to proceed with the development of the all-electric sedan, as well as fund the $240 million cost of building the first phase of its factory in the US.
Wednesday 20 February 2019
#Qatar leads Mena 2018 IPO activity in value - The Peninsula Qatar
Qatar leads Mena 2018 IPO activity in value - The Peninsula Qatar:
Qatar witnessed the highest valued IPO in 2018 in the Mena region with the listing of Qatar Aluminum Manufacturing Company (Qamco) on the Qatar Stock Exchange (QSE), raising $745.6m in Q4.
FTSE Russell announced the entry of Qamco to the FTSE Index within the first week of trading, owing to the positive response generated by the IPO (it was 2.5 times oversubscribed). The Qatar exchange has performed well in 2018 with prospects of inflows from investors tracking emerging-market indexes after the relaxation on foreign ownership curbs, the latest EY MENA IPO Eye report noted.
Phil Gandier (pictured), MENA Transactions Leader, EY, said:“The successful subscription of the Qatar Aluminum Manufacturing Company (Qamco) reflects the strength of Qatar’s economy, and the government’s mandate towards supporting capital markets and privatization as it pursues diversification of the economy.”
Qatar witnessed the highest valued IPO in 2018 in the Mena region with the listing of Qatar Aluminum Manufacturing Company (Qamco) on the Qatar Stock Exchange (QSE), raising $745.6m in Q4.
FTSE Russell announced the entry of Qamco to the FTSE Index within the first week of trading, owing to the positive response generated by the IPO (it was 2.5 times oversubscribed). The Qatar exchange has performed well in 2018 with prospects of inflows from investors tracking emerging-market indexes after the relaxation on foreign ownership curbs, the latest EY MENA IPO Eye report noted.
Phil Gandier (pictured), MENA Transactions Leader, EY, said:“The successful subscription of the Qatar Aluminum Manufacturing Company (Qamco) reflects the strength of Qatar’s economy, and the government’s mandate towards supporting capital markets and privatization as it pursues diversification of the economy.”
#Qatar posts 42% jump in Q4 trade surplus to QR50.86bn
Qatar posts 42% jump in Q4 trade surplus to QR50.86bn:
Faster expansion in exports, especially to Asia, and weakened imports helped Qatar register a 42% year-on-year growth in trade surplus to QR50.86bn during the fourth quarter (Q4) of 2018, according to official estimates.
For the full year 2018, trade surplus swelled about 40% to QR191.44bn, according to figures released by the Planning and Statistics Authority.
In Q4, Qatar’s total exports (of domestic goods and re-exports) were QR79.7bn, which grew 16.4% on a yearly basis. Imports declined 11.6% to QR28.8bn.
Faster expansion in exports, especially to Asia, and weakened imports helped Qatar register a 42% year-on-year growth in trade surplus to QR50.86bn during the fourth quarter (Q4) of 2018, according to official estimates.
For the full year 2018, trade surplus swelled about 40% to QR191.44bn, according to figures released by the Planning and Statistics Authority.
In Q4, Qatar’s total exports (of domestic goods and re-exports) were QR79.7bn, which grew 16.4% on a yearly basis. Imports declined 11.6% to QR28.8bn.
Next OPEC Headache Is Brazil's Burgeoning Crude Production - Bloomberg
Next OPEC Headache Is Brazil's Burgeoning Crude Production - Bloomberg:
When the giant P-67 floating oil production vessel lit its flare tower earlier this month, it marked the start of a Brazilian supply boom that’s poised to challenge OPEC’s efforts to balance the global market.
The mammoth facility -- long and wide enough to fit an American football field -- is the first of four similar platforms to begin pumping crude this year, lifting Brazilian output by roughly 365,000 barrels a day, its largest annual increase in at least 20 years, International Energy Agency estimates show. A second platform, P-76, has also started production, according to a regulatory filing Wednesday.
The Brazilian surge, combined with more oil from shale fields from Texas to North Dakota, is set to create a headache for the Organization of the Petroleum Exporting Countries. In the worst-case scenario, it may force Saudi Arabia and Russia to roll their production cuts over into the second half of the year, testing the strength of the Riyadh-Moscow oil relationship.
When the giant P-67 floating oil production vessel lit its flare tower earlier this month, it marked the start of a Brazilian supply boom that’s poised to challenge OPEC’s efforts to balance the global market.
The mammoth facility -- long and wide enough to fit an American football field -- is the first of four similar platforms to begin pumping crude this year, lifting Brazilian output by roughly 365,000 barrels a day, its largest annual increase in at least 20 years, International Energy Agency estimates show. A second platform, P-76, has also started production, according to a regulatory filing Wednesday.
The Brazilian surge, combined with more oil from shale fields from Texas to North Dakota, is set to create a headache for the Organization of the Petroleum Exporting Countries. In the worst-case scenario, it may force Saudi Arabia and Russia to roll their production cuts over into the second half of the year, testing the strength of the Riyadh-Moscow oil relationship.
Morgan Stanley U-Turns on #UAE Equity Call, Cuts #Qatar - Bloomberg
Morgan Stanley U-Turns on U.A.E. Equity Call, Cuts Qatar - Bloomberg:
It’s time to double-upgrade United Arab Emirates stocks amid early signs of a bottoming out in the property sector, Morgan Stanley analysts say, adding that investors should cut their exposure to Qatar.
U.A.E. shares are the most oversold of any markets in Eastern Europe, the Middle East and Africa, “led particularly by real estate,” according to analysts Marina Zavolock, Regiane Yamanari and Katherine Carpenter. After 17 months of structural decline, the forward dividend yield for U.A.E real estate is 7.4 percent, above its 11-year average, they wrote in a report. They highlighted a 75 percent discount to the average price for Emaar Properties PJSC. The company is the third biggest single weight in Dubai’s main gauge.
“We note various contrarian indicators pointing to a potential tactical, if not structural, turning point,” the analysts wrote in the report that upgrades U.A.E. shares to overweight. As Saudi Arabia’s inclusion to MSCI Inc.’s emerging markets category approaches, “U.A.E. may shift from a funding source to a cheaper alternative for investors wishing to cover significant MENA equities underweights.”
It’s time to double-upgrade United Arab Emirates stocks amid early signs of a bottoming out in the property sector, Morgan Stanley analysts say, adding that investors should cut their exposure to Qatar.
U.A.E. shares are the most oversold of any markets in Eastern Europe, the Middle East and Africa, “led particularly by real estate,” according to analysts Marina Zavolock, Regiane Yamanari and Katherine Carpenter. After 17 months of structural decline, the forward dividend yield for U.A.E real estate is 7.4 percent, above its 11-year average, they wrote in a report. They highlighted a 75 percent discount to the average price for Emaar Properties PJSC. The company is the third biggest single weight in Dubai’s main gauge.
“We note various contrarian indicators pointing to a potential tactical, if not structural, turning point,” the analysts wrote in the report that upgrades U.A.E. shares to overweight. As Saudi Arabia’s inclusion to MSCI Inc.’s emerging markets category approaches, “U.A.E. may shift from a funding source to a cheaper alternative for investors wishing to cover significant MENA equities underweights.”
#Bahrain to Allow Crypto to Regain Middle East Finance Hub Status - Bloomberg
Bahrain to Allow Crypto to Regain Middle East Finance Hub Status - Bloomberg:
Bahrain, once the Middle East’s hub for financial industries, is attempting to regain its footing by allowing companies using cryptocurrency to work in the country on a trial basis, as it considers how to regulate them.
Dalal Buhejji, business manager at Bahrain’s Economic Development Board, said she is confident that the central bank will issue regulation, without specifying a timeline. The central bank said it previously issued a consultation paper on draft regulations for crypto-asset platform operators.
The country’s attempt to attract companies focusing on blockchain technology and cryptocurrency trading comes as the sector remains largely unlicensed and unregulated in major global financial hubs. That’s forcing adopters to seek clarity from smaller jurisdictions that have been more open to regulating the market such as Malta, Liechtenstein, Gibraltar.
Bahrain, once the Middle East’s hub for financial industries, is attempting to regain its footing by allowing companies using cryptocurrency to work in the country on a trial basis, as it considers how to regulate them.
Dalal Buhejji, business manager at Bahrain’s Economic Development Board, said she is confident that the central bank will issue regulation, without specifying a timeline. The central bank said it previously issued a consultation paper on draft regulations for crypto-asset platform operators.
The country’s attempt to attract companies focusing on blockchain technology and cryptocurrency trading comes as the sector remains largely unlicensed and unregulated in major global financial hubs. That’s forcing adopters to seek clarity from smaller jurisdictions that have been more open to regulating the market such as Malta, Liechtenstein, Gibraltar.
#Saudi Aramco to decide in H1 on financing SABIC buy - CEO | ZAWYA MENA Edition
Saudi Aramco to decide in H1 on financing SABIC buy - CEO | ZAWYA MENA Edition:
Saudi Aramco said on Wednesday it expects to decide by mid-2019 how to finance the acquisition of Saudi Arabian Basic Industries Corp (SABIC).
"The decision on financing the SABIC acquisition is expected to be taken in the first half," said Amin Nasser, chief executive of Aramco.
"We have internal resources, then of course there are banks and the bond market, which we are evaluating at the moment," he added.
Saudi Aramco said on Wednesday it expects to decide by mid-2019 how to finance the acquisition of Saudi Arabian Basic Industries Corp (SABIC).
"The decision on financing the SABIC acquisition is expected to be taken in the first half," said Amin Nasser, chief executive of Aramco.
"We have internal resources, then of course there are banks and the bond market, which we are evaluating at the moment," he added.
#UAE eases #Qatar shipping ban amid continuing dispute | Reuters
UAE eases Qatar shipping ban amid continuing dispute | Reuters:
The United Arab Emirates has eased a ban on the shipping of goods between it and Qatar enforced under a political and economic boycott of Doha, according to port circulars and an industry source.
The UAE, Saudi Arabia, Egypt and Bahrain severed diplomatic, trade and transport ties with Qatar in June 2017 over allegations it supports terrorism, a charge Doha denies.
An Abu Dhabi Ports circular dated Feb. 12 canceled previous directives that banned cargoes of Qatar origin from UAE waters and ports and those of UAE origin from Qatar.
The United Arab Emirates has eased a ban on the shipping of goods between it and Qatar enforced under a political and economic boycott of Doha, according to port circulars and an industry source.
The UAE, Saudi Arabia, Egypt and Bahrain severed diplomatic, trade and transport ties with Qatar in June 2017 over allegations it supports terrorism, a charge Doha denies.
An Abu Dhabi Ports circular dated Feb. 12 canceled previous directives that banned cargoes of Qatar origin from UAE waters and ports and those of UAE origin from Qatar.
Oil settles 1 percent higher on hopes of market rebalance, trade deal | Reuters
Oil settles 1 percent higher on hopes of market rebalance, trade deal | Reuters:
Crude prices rose more than 1 percent on Wednesday to their highest level this year on hopes that oil markets will balance later this year, helped by output cuts from top producers as well as U.S. sanctions on OPEC members Iran and Venezuela.
Market fears over trade talks between the United States and China had helped push oil prices lower in early trade, but the market reversed after signs of progress emerged on Wednesday and strengthened equity markets. [.N]
U.S. President Donald Trump said negotiations with China were going well and suggested he was open to extending the deadline to complete them beyond March 1, when tariffs on $200 billion worth of Chinese imports are scheduled to rise to 25 percent from 10 percent.
Crude prices rose more than 1 percent on Wednesday to their highest level this year on hopes that oil markets will balance later this year, helped by output cuts from top producers as well as U.S. sanctions on OPEC members Iran and Venezuela.
Market fears over trade talks between the United States and China had helped push oil prices lower in early trade, but the market reversed after signs of progress emerged on Wednesday and strengthened equity markets. [.N]
U.S. President Donald Trump said negotiations with China were going well and suggested he was open to extending the deadline to complete them beyond March 1, when tariffs on $200 billion worth of Chinese imports are scheduled to rise to 25 percent from 10 percent.
MIDEAST STOCKS- #Dubai lifted by real estate as Gulf gains on global rally | Reuters
MIDEAST STOCKS-Dubai lifted by real estate as Gulf gains on global rally | Reuters:
Dubai's main stock index closed at a two-and-half-month high on Wednesday after strong fourth-quarter earnings from real estate companies last week triggered six days of gains.
All major Gulf bourses were driven higher by a wider stocks rally on hopes of progress in trade talks between the United States and China.
Dubai's index ended 2.6 percent higher at 2,632 points, its highest since December 2018, led by Emaar Properties , Emaar Malls and Emaar Development , which have risen in recent sessions.
Dubai's main stock index closed at a two-and-half-month high on Wednesday after strong fourth-quarter earnings from real estate companies last week triggered six days of gains.
All major Gulf bourses were driven higher by a wider stocks rally on hopes of progress in trade talks between the United States and China.
Dubai's index ended 2.6 percent higher at 2,632 points, its highest since December 2018, led by Emaar Properties , Emaar Malls and Emaar Development , which have risen in recent sessions.
Aramco Trading to open London office in overseas expansion - sources | Reuters
Aramco Trading to open London office in overseas expansion - sources | Reuters:
Saudi Aramco’s trading arm plans to open an office in London soon as it expands its international business, sources familiar with the move said.
Aramco Trading Co (ATC) also opened an office in the bunkering hub of Fujairah, United Arab Emirates in December to trade oil products and hired two traders from Trafigura and PetroChina to run operations there, the sources said.
“Last June, a trading office was inaugurated in Singapore, and last December (another) in Fujairah and very soon in London, just like any trading house,” one of the sources said.
Saudi Aramco’s trading arm plans to open an office in London soon as it expands its international business, sources familiar with the move said.
Aramco Trading Co (ATC) also opened an office in the bunkering hub of Fujairah, United Arab Emirates in December to trade oil products and hired two traders from Trafigura and PetroChina to run operations there, the sources said.
“Last June, a trading office was inaugurated in Singapore, and last December (another) in Fujairah and very soon in London, just like any trading house,” one of the sources said.
What The Inclusion in Key EM Benchmarks Would Mean for #Saudi Stocks – Bloomberg
What The Inclusion in Key EM Benchmarks Would Mean for Saudi Stocks – Bloomberg:
Rami Sidani, the head of Middle East, North Africa portfolio management at Schroder Investment Management, talks about the prospects for Saudi Arabian stocks and the kingdom’s inclusion in key emerging-market benchmarks compiled by MSCI Inc. and FTSE Russell later this year. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Rami Sidani, the head of Middle East, North Africa portfolio management at Schroder Investment Management, talks about the prospects for Saudi Arabian stocks and the kingdom’s inclusion in key emerging-market benchmarks compiled by MSCI Inc. and FTSE Russell later this year. He speaks with Manus Cranny and Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Emaar Denies Reports It Will Accept Payment in Digital Currency - Bloomberg
Emaar Denies Reports It Will Accept Payment in Digital Currency - Bloomberg:
Emaar Properties PJSC, Dubai’s biggest publicly traded developer, denied reports of plans to accept payments in digital currencies.
“Emaar does not accept payment in digital currency,’’ a spokesperson for the company said in response to questions. “Emaar only accepts payment in government-issued currency, primarily in U.A.E. dirham and U.S. dollar.”
Reports and blogs circulated online cited an alleged Emaar circular to real estate brokers as saying that the developer will accept payment in digital currencies such as Bitcoin and Ethereum through a broker in Switzerland.
Emaar Properties PJSC, Dubai’s biggest publicly traded developer, denied reports of plans to accept payments in digital currencies.
“Emaar does not accept payment in digital currency,’’ a spokesperson for the company said in response to questions. “Emaar only accepts payment in government-issued currency, primarily in U.A.E. dirham and U.S. dollar.”
Reports and blogs circulated online cited an alleged Emaar circular to real estate brokers as saying that the developer will accept payment in digital currencies such as Bitcoin and Ethereum through a broker in Switzerland.
Oil dips below 2019 highs as surging U.S. supply counters OPEC cuts | Reuters
Oil dips below 2019 highs as surging U.S. supply counters OPEC cuts | Reuters:
Oil prices slipped away from 2019 highs on Wednesday, with surging U.S. supply and slowing economic growth tempering upward pressure from supply cuts led by producer club OPEC and from Washington’s sanctions on Iran and Venezuela.
U.S. West Texas Intermediate (WTI) crude oil futures hit 2019 highs of $56.39 per barrel on Wednesday but had slipped back to $56.16 per barrel by 0746 GMT, which was slightly above their last settlement.
International Brent crude futures were at $66.41 per barrel, down 4 cents from their last close, though still not far off their 2019 high of $66.83 per barrel, hit on Monday.
Oil prices slipped away from 2019 highs on Wednesday, with surging U.S. supply and slowing economic growth tempering upward pressure from supply cuts led by producer club OPEC and from Washington’s sanctions on Iran and Venezuela.
U.S. West Texas Intermediate (WTI) crude oil futures hit 2019 highs of $56.39 per barrel on Wednesday but had slipped back to $56.16 per barrel by 0746 GMT, which was slightly above their last settlement.
International Brent crude futures were at $66.41 per barrel, down 4 cents from their last close, though still not far off their 2019 high of $66.83 per barrel, hit on Monday.
Flydubai swings to loss on rising fuel costs and interest rates | Reuters
Flydubai swings to loss on rising fuel costs and interest rates | Reuters:
Flydubai swung to a loss of almost 160 million dirhams ($43.5 million) for 2018, it said on Wednesday, citing higher fuel costs and unfavourable currency moves.
The state-owned Dubai airline, which made a profit of 37.3 million dirhams in 2017, said fuel costs accounted for 29.8 percent of operating costs last year compared with 25 percent the previous year.
Though passenger numbers rose to 11 million from 10.9 million in 2017, the airline said it had also been hit by rising interest rates.
Flydubai swung to a loss of almost 160 million dirhams ($43.5 million) for 2018, it said on Wednesday, citing higher fuel costs and unfavourable currency moves.
The state-owned Dubai airline, which made a profit of 37.3 million dirhams in 2017, said fuel costs accounted for 29.8 percent of operating costs last year compared with 25 percent the previous year.
Though passenger numbers rose to 11 million from 10.9 million in 2017, the airline said it had also been hit by rising interest rates.
#Saudi Electricity Company to sign $4bln syndicated loan | ZAWYA MENA Edition
Saudi Electricity Company to sign $4bln syndicated loan | ZAWYA MENA Edition:
State-controlled Saudi Electricity Company said it will sign on Wednesday a 15.2-billion-riyal ($4.05 billion) Islamic syndicated loan provided by a group of local banks.
The loan has a murabaha structure, a cost-plus-profit arrangement which complies with Islamic finance standards, and will be used for general corporate purposes, including capital expenditure, the company said in a statement.
The firm, the main electricity producer in Saudi Arabia with an 81.2 percent indirect government ownership, is a frequent borrower in the domestic and international debt capital markets.
State-controlled Saudi Electricity Company said it will sign on Wednesday a 15.2-billion-riyal ($4.05 billion) Islamic syndicated loan provided by a group of local banks.
The loan has a murabaha structure, a cost-plus-profit arrangement which complies with Islamic finance standards, and will be used for general corporate purposes, including capital expenditure, the company said in a statement.
The firm, the main electricity producer in Saudi Arabia with an 81.2 percent indirect government ownership, is a frequent borrower in the domestic and international debt capital markets.
#Dubai's DP World buys Britain-based P&O Ferries for $421mln | ZAWYA MENA Edition
Dubai's DP World buys Britain-based P&O Ferries for $421mln | ZAWYA MENA Edition:
DP World has bought Britain-based P&O Ferries and its logistics arm for 322 million pounds ($421 million), the Dubai-based port operator said on Wednesday.
P&O Ferries operates more than 30,000 voyages a year between Britain, France, Northern Ireland, the Republic of Ireland, the Netherlands, and Belgium, according to its website.
P&O Ferrymasters, the logistics unit, provides supply chain solutions in 19 European locations, DP World said in a statement, adding that the deal was expected to close in the first half of the year.
DP World has bought Britain-based P&O Ferries and its logistics arm for 322 million pounds ($421 million), the Dubai-based port operator said on Wednesday.
P&O Ferries operates more than 30,000 voyages a year between Britain, France, Northern Ireland, the Republic of Ireland, the Netherlands, and Belgium, according to its website.
P&O Ferrymasters, the logistics unit, provides supply chain solutions in 19 European locations, DP World said in a statement, adding that the deal was expected to close in the first half of the year.
Mideast Stocks: #Dubai rises for sixth day; banks lift major Gulf markets | ZAWYA MENA Edition
Mideast Stocks: Dubai rises for sixth day; banks lift major Gulf markets | ZAWYA MENA Edition:
Dubai stocks rose on Wednesday, extending a rally that began last week after real estate companies reported fourth-quarter earnings that beat expectations. Other major Gulf markets were lifted by financial stocks.
In Dubai, the index rose 1.5 percent, boosted by banks and real estate stocks. Dubai Islamic Bank gained 1.4 percent.
Emaar Properties jumped 3.2 percent, continuing the gains driven by better-than-expected profit for the fourth quarter.
Dubai stocks rose on Wednesday, extending a rally that began last week after real estate companies reported fourth-quarter earnings that beat expectations. Other major Gulf markets were lifted by financial stocks.
In Dubai, the index rose 1.5 percent, boosted by banks and real estate stocks. Dubai Islamic Bank gained 1.4 percent.
Emaar Properties jumped 3.2 percent, continuing the gains driven by better-than-expected profit for the fourth quarter.
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