Gulf Capital CEO optimistic about 2019, even as fundraising challenges persist - The National:
Gulf Capital, one of the largest venture capital firms in the Middle East with more than $3 billion of assets under management, is eyeing investments in high-growth sectors such as e-commerce and logistics, where it sees attractive returns despite a challenging environment for private equity, its chief executive said.
“Personally, I'm very excited about 2019,” said Karim El Solh, who is also co-founder and managing partner of private equity at the Abu Dhabi-based firm. “We're seeing more deal flows, more interesting companies in new sectors, at very attractive multipliers, and for me that’s what makes a good vintage.”
Last May, Gulf Capital acquired a strategic stake in financial technology (FinTech) firm Saudi Geidea, an electronic payments provider, for more than 1 billion Saudi riyals (Dh980 million), among other investments.
Thursday, 21 February 2019
#Turkey set to begin oil and gas drilling off Cyprus
Turkey set to begin oil and gas drilling off Cyprus:
Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
Turkey will begin drilling for oil and gas near Cyprus in coming days, state-owned news agency Anadolu reported Foreign Minister Mevlut Cavusoglu saying on Thursday, a move that could stoke tensions with neighboring Cyprus and Greece.
Turkey and the internationally recognized Greek Cypriot government have overlapping claims of jurisdiction for offshore oil and gas research in the eastern Mediterranean, a region thought to be rich in natural gas.
“In the coming days we will start drilling with two ships around Cyprus,” Cavusoglu was quoted as saying in a speech to a business conference in western Turkey’s Aydin province.
#UAE Says Will Issue New Circular to Ports on #Qatar Boycott - Bloomberg
U.A.E. Says Will Issue New Circular to Ports on Qatar Boycott - Bloomberg:
The United Arab Emirates said it will issue a clarifying memo to the country’s ports regarding a boycott of Qatar after an earlier circular eased cargo shipping restrictions between the two nations.
There is no change to its ports policy on Qatar, the Federal Transport Authority was cited as saying in state-run WAM news agency.
The United Arab Emirates said it will issue a clarifying memo to the country’s ports regarding a boycott of Qatar after an earlier circular eased cargo shipping restrictions between the two nations.
There is no change to its ports policy on Qatar, the Federal Transport Authority was cited as saying in state-run WAM news agency.
Twelve Empty Supertankers Reveal Truths About Today's Oil Market - Bloomberg
Twelve Empty Supertankers Reveal Truths About Today's Oil Market - Bloomberg:
They are slowly plowing their way across thousands of miles of ocean toward America’s Gulf of Mexico coastline. As they do, twelve empty supertankers are also revealing a few truths about today’s global oil market.
In normal times, the vessels would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries.
The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.
They are slowly plowing their way across thousands of miles of ocean toward America’s Gulf of Mexico coastline. As they do, twelve empty supertankers are also revealing a few truths about today’s global oil market.
In normal times, the vessels would be filled with heavy, high sulfur Middle East oil for delivery to refineries in places like Houston or New Orleans. Not now though. They are sailing cargo-less, a practice that vessel owners normally try to avoid because ships earn money by making deliveries.
The 12 vessels are making voyages of as much as 21,000 miles direct from Asia, all the way around South Africa, holding nothing but seawater for stability because Middle East producers are restricting supplies. Still, America’s booming volumes of light crude must still be exported, and there aren’t enough supertankers in the Atlantic Ocean for the job. So they’re coming empty.
KKR, BlackRock Are Set to Invest $4 Billion in Adnoc Pipeline - Bloomberg
KKR, BlackRock Are Set to Invest $4 Billion in Adnoc Pipeline - Bloomberg:
KKR & Co. and BlackRock Inc. are set to invest in Abu Dhabi National Oil Co.’s pipeline network in a deal valued at $4 billion to $4.5 billion, according to people familiar with knowledge of the matter.
The deal could be structured so that the two New York-based financial firms acquire leasing rights from the state oil company, the people said, asking not to be identified as the information is private. A transaction could be announced as early as Sunday and the bidders are in talks with banks about financing for the deal, they said.
Adnoc, as the state-owned energy giant is known, KKR and BlackRock declined to comment.
KKR & Co. and BlackRock Inc. are set to invest in Abu Dhabi National Oil Co.’s pipeline network in a deal valued at $4 billion to $4.5 billion, according to people familiar with knowledge of the matter.
The deal could be structured so that the two New York-based financial firms acquire leasing rights from the state oil company, the people said, asking not to be identified as the information is private. A transaction could be announced as early as Sunday and the bidders are in talks with banks about financing for the deal, they said.
Adnoc, as the state-owned energy giant is known, KKR and BlackRock declined to comment.
Sainsbury Snag Adds $336 Million to #Qatar's European Problems - Bloomberg
Sainsbury Snag Adds $336 Million to Qatar's European Problems - Bloomberg:
The day a major deal hits a snag is never a good one for investors, and Wednesday must have been particularly annoying for the Qatar Investment Authority.
QIA is J Sainsbury Plc’s largest shareholder, controlling more than a fifth of the British grocery chain. The value of that holding fell by about 257 million pounds ($336 million) Wednesday, data compiled by Bloomberg show, on news that the grocer’s planned tie-up with Asda hadn’t passed muster with regulators.
Supermarkets aren’t the only European investments looking dubious for Qatar, which has one of the world’s largest sovereign-wealth funds, with more than $320 billion in assets. In addition to U.K. real estate, which is in the midst of a slump as Brexit scares away buyers and a retail decline hurts shops, QIA’s publicly traded Europe portfolio also includes a number of firms that have been falling.
The day a major deal hits a snag is never a good one for investors, and Wednesday must have been particularly annoying for the Qatar Investment Authority.
QIA is J Sainsbury Plc’s largest shareholder, controlling more than a fifth of the British grocery chain. The value of that holding fell by about 257 million pounds ($336 million) Wednesday, data compiled by Bloomberg show, on news that the grocer’s planned tie-up with Asda hadn’t passed muster with regulators.
Supermarkets aren’t the only European investments looking dubious for Qatar, which has one of the world’s largest sovereign-wealth funds, with more than $320 billion in assets. In addition to U.K. real estate, which is in the midst of a slump as Brexit scares away buyers and a retail decline hurts shops, QIA’s publicly traded Europe portfolio also includes a number of firms that have been falling.
UPDATE 1-Saudi Alhokair's mall business seeks $1 bln from IPO - sources | Reuters
UPDATE 1-Saudi Alhokair's mall business seeks $1 bln from IPO - sources | Reuters:
Shopping malls operator Arabian Centres Company, owned by Fawaz Alhokair Group, is seeking $1 billion from a public share listing in the second quarter, sources told Reuters.
Arabian Centres, which has applied for an initial public offering with the Capital Market Authority, is looking to sell a 30 percent stake to investors on Riyadh’s stock exchange, the Tadawul, sources told Reuters in January.
Goldman Sachs and EFG Hermes have been appointed as bookrunners and Credit Suisse and Citigroup, may also join, two sources who declined to be named due to commercial sensitivities said on Thursday.
Shopping malls operator Arabian Centres Company, owned by Fawaz Alhokair Group, is seeking $1 billion from a public share listing in the second quarter, sources told Reuters.
Arabian Centres, which has applied for an initial public offering with the Capital Market Authority, is looking to sell a 30 percent stake to investors on Riyadh’s stock exchange, the Tadawul, sources told Reuters in January.
Goldman Sachs and EFG Hermes have been appointed as bookrunners and Credit Suisse and Citigroup, may also join, two sources who declined to be named due to commercial sensitivities said on Thursday.
COLUMN-Oil traders bet on Saudi Arabia and White House lifting prices: Kemp | Reuters
COLUMN-Oil traders bet on Saudi Arabia and White House lifting prices: Kemp | Reuters:
Oil traders are becoming very bullish on the outlook for prices, betting that Saudi Arabia will do whatever it takes to tighten the market even if consumption growth slows, helped by U.S. sanctions on Iran and Venezuela.
Brent’s calendar spread for the second half of 2019 has surged into a backwardation of 90 cents per barrel, the strongest for more than three months and a huge swing from a 70 cent contango near the end of last year.
For many traders, spreads rather than spot prices are a better indicator of expected balance between production and consumption (“Price relations between July and September Wheat Futures at Chicago”, Working, 1933).
Oil traders are becoming very bullish on the outlook for prices, betting that Saudi Arabia will do whatever it takes to tighten the market even if consumption growth slows, helped by U.S. sanctions on Iran and Venezuela.
Brent’s calendar spread for the second half of 2019 has surged into a backwardation of 90 cents per barrel, the strongest for more than three months and a huge swing from a 70 cent contango near the end of last year.
For many traders, spreads rather than spot prices are a better indicator of expected balance between production and consumption (“Price relations between July and September Wheat Futures at Chicago”, Working, 1933).
MIDEAST STOCKS- #Qatar rises as blue-chips climb, top lender weighs in Egypt | Reuters
MIDEAST STOCKS-Qatar rises as blue-chips climb, top lender weighs in Egypt | Reuters:
Qatar's stock market rose sharply on Thursday as its blue-chip shares gained after a spate of selling, while Egypt's index was driven lower partly by its top lender.
The Qatari index rose 1.1 percent, with 15 out of 20 stocks advancing. Heavyweights Qatar National Bank and Industries Qatar gained 2 percent and 1.9 percent respectively.
Qatar was the best performing Gulf market in 2018 after a limit on foreign ownership of stocks was raised. It continued last year's performance into January but began a downward trend in February.
Qatar's stock market rose sharply on Thursday as its blue-chip shares gained after a spate of selling, while Egypt's index was driven lower partly by its top lender.
The Qatari index rose 1.1 percent, with 15 out of 20 stocks advancing. Heavyweights Qatar National Bank and Industries Qatar gained 2 percent and 1.9 percent respectively.
Qatar was the best performing Gulf market in 2018 after a limit on foreign ownership of stocks was raised. It continued last year's performance into January but began a downward trend in February.
Iranian businesses devise creative ways to evade Trump sanctions | Financial Times
Iranian businesses devise creative ways to evade Trump sanctions | Financial Times:
Two years ago Hossein was optimistic about the future of his booming Iranian oil services businesses. Iran’s landmark nuclear agreement with world powers had lifted the economy out of recession, western companies were re-engaging with the Islamic republic and his revenue was surging. But in May last year everything changed.
US president Donald Trump pulled out of the nuclear deal and began the process of reimposing American sanctions. European partners with exposure to the US cut their ties to Hossein’s business and his annual revenue plunged 50 per cent. To prevent things from getting even worse, he has been forced into a complex web of global transactions in an effort to circumvent the sanctions.
Hossein likens the nuclear deal to a wonder drug in the 1990 film Awakenings, which brings patients out of a catatonic state but, tragically, only temporarily. “We had been all expecting to double our turnover very easily,” he said wistfully.
Two years ago Hossein was optimistic about the future of his booming Iranian oil services businesses. Iran’s landmark nuclear agreement with world powers had lifted the economy out of recession, western companies were re-engaging with the Islamic republic and his revenue was surging. But in May last year everything changed.
US president Donald Trump pulled out of the nuclear deal and began the process of reimposing American sanctions. European partners with exposure to the US cut their ties to Hossein’s business and his annual revenue plunged 50 per cent. To prevent things from getting even worse, he has been forced into a complex web of global transactions in an effort to circumvent the sanctions.
Hossein likens the nuclear deal to a wonder drug in the 1990 film Awakenings, which brings patients out of a catatonic state but, tragically, only temporarily. “We had been all expecting to double our turnover very easily,” he said wistfully.
Oil hovers near 2019 highs amid OPEC cuts | Reuters
Oil hovers near 2019 highs amid OPEC cuts | Reuters:
Oil prices hovered around 2019 highs on Thursday, bolstered by OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran, but were capped by slowing growth in the global economy.
U.S. West Texas Intermediate (WTI) crude oil futures were at $57.14 a barrel at 0955 GMT, 2 cents below their last settlement, and close to a 2019 high of $57.55 reached the previous day.
Brent crude futures eased by 14 cents, or 0.2 percent, to $66.94 after touching a 2019 peak on Wednesday at $67.38.
Oil prices hovered around 2019 highs on Thursday, bolstered by OPEC-led supply cuts and U.S. sanctions on Venezuela and Iran, but were capped by slowing growth in the global economy.
U.S. West Texas Intermediate (WTI) crude oil futures were at $57.14 a barrel at 0955 GMT, 2 cents below their last settlement, and close to a 2019 high of $57.55 reached the previous day.
Brent crude futures eased by 14 cents, or 0.2 percent, to $66.94 after touching a 2019 peak on Wednesday at $67.38.
Cheapest #Dubai Stocks in 8 Years Trigger Best Gain Since 2016 - Bloomberg
Cheapest Dubai Stocks in 8 Years Trigger Best Gain Since 2016 - Bloomberg:
Investors just woke up to the allure of last year’s worst-performing stock market, with Bank of America Merrill Lynch and Morgan Stanley saying it’s bargain time.
Dubai’s main index, which tumbled almost 25 percent last year, had its best day on Wednesday since December 2016. Before that, the stocks had been trading at the biggest discount to their emerging-market peers since 2011.
“U.A.E. stocks look very, very attractive valuation-wise,” said Hootan Yazhari, the head of Middle East, North Africa and global frontier markets at Bank of America Merrill Lynch in Dubai. “Especially in the real-estate sector, you’ve seen a pullback over concerns on overbuilding and overcapacity. And it’s just fair, because we have seen house prices and rents falling.”
Investors just woke up to the allure of last year’s worst-performing stock market, with Bank of America Merrill Lynch and Morgan Stanley saying it’s bargain time.
Dubai’s main index, which tumbled almost 25 percent last year, had its best day on Wednesday since December 2016. Before that, the stocks had been trading at the biggest discount to their emerging-market peers since 2011.
“U.A.E. stocks look very, very attractive valuation-wise,” said Hootan Yazhari, the head of Middle East, North Africa and global frontier markets at Bank of America Merrill Lynch in Dubai. “Especially in the real-estate sector, you’ve seen a pullback over concerns on overbuilding and overcapacity. And it’s just fair, because we have seen house prices and rents falling.”
#UAE Says #Qatar Embargo Stands After Trade Ban Seemed Eased - Bloomberg
U.A.E. Says Qatar Embargo Stands After Trade Ban Seemed Eased - Bloomberg:
The United Arab Emirates said a port circular signaling an easing of the almost two-year Saudi-led embargo of Qatar was “misinterpreted” and that a clarification will be issued to ports.
The clarification will address a directive by Abu Dhabi Ports that removed any mention of banning cargo shipments to Qatar, allowing a resumption of trade by third-party shippers. A previous order that barred goods originating from either Qatar or the U.A.E. from being loaded or delivered to either country was canceled by the one-page circular issued on Feb. 12.
The Federal Transport Authority said the embargo on Qatar stands and only it has jurisdiction over the ports, according to a statement on Thursday cited by state-run WAM news agency.
The United Arab Emirates said a port circular signaling an easing of the almost two-year Saudi-led embargo of Qatar was “misinterpreted” and that a clarification will be issued to ports.
The clarification will address a directive by Abu Dhabi Ports that removed any mention of banning cargo shipments to Qatar, allowing a resumption of trade by third-party shippers. A previous order that barred goods originating from either Qatar or the U.A.E. from being loaded or delivered to either country was canceled by the one-page circular issued on Feb. 12.
The Federal Transport Authority said the embargo on Qatar stands and only it has jurisdiction over the ports, according to a statement on Thursday cited by state-run WAM news agency.
And Just Like That, #Oman's Bond Yields Are Back Below #Bahrain's - Bloomberg
And Just Like That, Oman's Bond Yields Are Back Below Bahrain's - Bloomberg:
The hefty premium investors demanded to hold Oman’s Eurobonds rather than those of lower-rated Bahrain has just vanished.
The sultanate’s plans to slash its borrowing requirements and rely on asset sales for funding lifted Eurobonds due 2028 by the most on record, driving the yield down 37 basis points to 6.43 percent as of 8:42 a.m. in London. Bahrain’s similar-maturity debt now yields one basis point more than Oman’s, according to data compiled by Bloomberg.
Oman, which has one of the largest budget deficits among oil exporters, will also tap a $1.2 billion loan backed by the World Bank’s Multilateral Investment Guarantee Agency, and any additional funding will come through domestic borrowing, a senior government official said on condition of anonymity because the plans haven’t been made public.
The hefty premium investors demanded to hold Oman’s Eurobonds rather than those of lower-rated Bahrain has just vanished.
The sultanate’s plans to slash its borrowing requirements and rely on asset sales for funding lifted Eurobonds due 2028 by the most on record, driving the yield down 37 basis points to 6.43 percent as of 8:42 a.m. in London. Bahrain’s similar-maturity debt now yields one basis point more than Oman’s, according to data compiled by Bloomberg.
Oman, which has one of the largest budget deficits among oil exporters, will also tap a $1.2 billion loan backed by the World Bank’s Multilateral Investment Guarantee Agency, and any additional funding will come through domestic borrowing, a senior government official said on condition of anonymity because the plans haven’t been made public.
#Oman Said to Cut Borrowing Plans as It Turns to Asset Sales - Bloomberg
Oman Said to Cut Borrowing Plans as It Turns to Asset Sales - Bloomberg:
Oman plans to slash its borrowing requirements for 2019 by as much as 70 percent and rely on asset sales to plug one of the largest budget deficits among oil exporters, according to a senior government official.
The Gulf Arab monarchy will likely raise between $2 billion and $3 billion in bonds and loans, the official said on condition of anonymity because the plans haven’t been made public. The budget had listed debt requirements of about $6.2 billion.
Oman is working with legal advisers to update its bond program and will tap the market before early May. The country plans to plug its funding gap using dividends and capital gains received from Oman Oil Co.’s stake sale of the Khazzan field, the official said. An additional $1 billion will come from the ownership transfer of some gas pipelines to Oman Gas Co., he said.
Oman plans to slash its borrowing requirements for 2019 by as much as 70 percent and rely on asset sales to plug one of the largest budget deficits among oil exporters, according to a senior government official.
The Gulf Arab monarchy will likely raise between $2 billion and $3 billion in bonds and loans, the official said on condition of anonymity because the plans haven’t been made public. The budget had listed debt requirements of about $6.2 billion.
Oman is working with legal advisers to update its bond program and will tap the market before early May. The country plans to plug its funding gap using dividends and capital gains received from Oman Oil Co.’s stake sale of the Khazzan field, the official said. An additional $1 billion will come from the ownership transfer of some gas pipelines to Oman Gas Co., he said.
#UAE government deposit rebounds to $81bln in January | ZAWYA MENA Edition
UAE government deposit rebounds to $81bln in January | ZAWYA MENA Edition:
Government deposits rebounded to AED297.6 billion by the end of January, AED3.7 bn up from AED293.9 bn in December 2018.
Driven by a significant rise in oil prices in H1 2018, the deposits grew AED94 bn across the year, hitting an all-time high of AED305 bn in November against AED300 bn in October .
According to statistics released by the Central Bank of United Arab Emirates, Q3 of 2018 saw government deposits rise by AED35.2 bn, after having been up by AED22 bn in Q1, AED20.6 bn in Q3 and AED16.4 bn during the last three months of the year.
Government deposits rebounded to AED297.6 billion by the end of January, AED3.7 bn up from AED293.9 bn in December 2018.
Driven by a significant rise in oil prices in H1 2018, the deposits grew AED94 bn across the year, hitting an all-time high of AED305 bn in November against AED300 bn in October .
According to statistics released by the Central Bank of United Arab Emirates, Q3 of 2018 saw government deposits rise by AED35.2 bn, after having been up by AED22 bn in Q1, AED20.6 bn in Q3 and AED16.4 bn during the last three months of the year.
RPT-COLUMN- #SaudiArabia resumes familiar role as swing producer: Kemp | Reuters
RPT-COLUMN-Saudi Arabia resumes familiar role as swing producer: Kemp | Reuters:
Saudi Arabia has resumed its traditional role as the swing producer, sharply reducing its own output to tighten the oil market and push prices higher.
The de facto OPEC leader has demonstrated, once again, that it can always tighten the physical market, boost prices and push the calendar spread into backwardation - if it is prepared to cut its own production enough.
The familiar problem is that protecting prices comes at the expense of market share: the more the kingdom cuts its own production and tightens the market, the more it encourages increased output from other sources.
Saudi Arabia has resumed its traditional role as the swing producer, sharply reducing its own output to tighten the oil market and push prices higher.
The de facto OPEC leader has demonstrated, once again, that it can always tighten the physical market, boost prices and push the calendar spread into backwardation - if it is prepared to cut its own production enough.
The familiar problem is that protecting prices comes at the expense of market share: the more the kingdom cuts its own production and tightens the market, the more it encourages increased output from other sources.
China's desire for close #Iran ties unchanged, Xi says ahead of Saudi prince's visit | Reuters
China's desire for close Iran ties unchanged, Xi says ahead of Saudi prince's visit | Reuters:
China’s desire to develop close ties with Iran will remain unchanged, regardless of the international situation, President Xi Jinping told the speaker of Iran’s parliament, ahead of Thursday’s visit to Beijing by Saudi Arabia’s crown prince.
China has traditionally played little role in Middle East conflicts or diplomacy, despite relying on the region for oil, with Iran its fourth largest supplier last year, but has been trying to raise its profile, especially in the Arab world.
Saudi Arabia’s King Salman visited Beijing in 2017, and Saudi Crown Prince Mohammed bin Salman arrives on Thursday for a two-day visit.
China’s desire to develop close ties with Iran will remain unchanged, regardless of the international situation, President Xi Jinping told the speaker of Iran’s parliament, ahead of Thursday’s visit to Beijing by Saudi Arabia’s crown prince.
China has traditionally played little role in Middle East conflicts or diplomacy, despite relying on the region for oil, with Iran its fourth largest supplier last year, but has been trying to raise its profile, especially in the Arab world.
Saudi Arabia’s King Salman visited Beijing in 2017, and Saudi Crown Prince Mohammed bin Salman arrives on Thursday for a two-day visit.
MIDEAST STOCKS- #Dubai ends run of gains, Gulf dragged by financials | Reuters
MIDEAST STOCKS-Dubai ends run of gains, Gulf dragged by financials | Reuters:
Dubai stocks fell back on Thursday after touching a two-and-half-month high as real estate stocks slipped after leading six days of gains, while all major Gulf bourses also dropped on sliding financial stocks.
Dubai’s index was down 0.5 percent with DAMAC Properties shedding 3 percent and Emaar Development dropping 2.3 percent.
Property firms have led the recent rally after displaying signs of recovery in their fourth-quarter results and more construction contracts. However they remained vulnerable to falling property prices.
Dubai stocks fell back on Thursday after touching a two-and-half-month high as real estate stocks slipped after leading six days of gains, while all major Gulf bourses also dropped on sliding financial stocks.
Dubai’s index was down 0.5 percent with DAMAC Properties shedding 3 percent and Emaar Development dropping 2.3 percent.
Property firms have led the recent rally after displaying signs of recovery in their fourth-quarter results and more construction contracts. However they remained vulnerable to falling property prices.
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