Sovereign borrowing in MENA to soar to $136bn in 2019: S&P:
Sovereign borrowing by 13 states in the Middle East and North Africa is set to rise by 20 percent this year, as states look to refinance long-term debt and cover fiscal deficits, a report by S&P Global Ratings found.
The countries’ long-term borrowing is estimated to hit about $136 billion in 2019 compared with $109 billion in 2018, when issuances fell by 38 percent, the ratings agency said.
Countries covered by the report include Saudi Arabia, Egypt, Lebanon, Kuwait and Morocco.
Sunday, 24 February 2019
Why #SaudiArabia is tilting East | Arab News
Why Saudi Arabia is tilting East | Arab News:
The ineluctable process of what a wise man called “easternization” continued with the visit of Saudi Crown Prince Mohammed bin Salman to three of Asia’s biggest economies. But it would be a mistake to see it as a reaction to any perceived hiccup in relations between the Kingdom and the West.
In truth, the tilt of the global economy toward the fast-growing economies of Asia has been an unstoppable force in the world since Deng Xiaoping, the former president of China, opened up the country to entrepreneurial capitalism at the end of the 1980s.
It was given a huge impetus in 2008, when the global financial crisis made many in the eastern hemisphere realize that perhaps the old ways of the West were not the best for the world economy. There were other economic models that could be adopted, and they were already in effective service in the fast-growing economies of Asia.
The ineluctable process of what a wise man called “easternization” continued with the visit of Saudi Crown Prince Mohammed bin Salman to three of Asia’s biggest economies. But it would be a mistake to see it as a reaction to any perceived hiccup in relations between the Kingdom and the West.
In truth, the tilt of the global economy toward the fast-growing economies of Asia has been an unstoppable force in the world since Deng Xiaoping, the former president of China, opened up the country to entrepreneurial capitalism at the end of the 1980s.
It was given a huge impetus in 2008, when the global financial crisis made many in the eastern hemisphere realize that perhaps the old ways of the West were not the best for the world economy. There were other economic models that could be adopted, and they were already in effective service in the fast-growing economies of Asia.
Libor scandal lessons unleash volatility in #UAE’s bank rate
Libor scandal lessons unleash volatility in UAE’s bank rate:
The UAE wanted to inoculate its banking benchmark against manipulation after Europe’s rate-rigging scandal.
The result: a lending reference rate so volatile it’s a challenge to derivatives traders. Under the new method implemented last year, the Gulf state’s central bank gives priority to data from actual executed transactions between lenders and large companies. Previously it relied largely on estimates to determine the rates they would charge each other for short-term loans.
The Emirates Interbank Offered Rate underpins many dirham-denominated loans and is also a benchmark for derivative products such as swaps, used to hedge against floating interest rates. After the changes, the Opec’s third-biggest producer ended up with an official reference rate whose spread over Libor has swung in the past month from eight basis points to minus 22, according to data compiled by Bloomberg.
The UAE wanted to inoculate its banking benchmark against manipulation after Europe’s rate-rigging scandal.
The result: a lending reference rate so volatile it’s a challenge to derivatives traders. Under the new method implemented last year, the Gulf state’s central bank gives priority to data from actual executed transactions between lenders and large companies. Previously it relied largely on estimates to determine the rates they would charge each other for short-term loans.
The Emirates Interbank Offered Rate underpins many dirham-denominated loans and is also a benchmark for derivative products such as swaps, used to hedge against floating interest rates. After the changes, the Opec’s third-biggest producer ended up with an official reference rate whose spread over Libor has swung in the past month from eight basis points to minus 22, according to data compiled by Bloomberg.
Rise of Shale Oil and OPEC Cuts Leave Supertankers Empty - Bloomberg
Rise of Shale Oil and OPEC Cuts Leave Supertankers Empty - Bloomberg:
Supertankers hauling seawater across the Atlantic? That's just one of the odder results of the U.S. shale boom.
Crude oil has always flowed backwards and forwards across the world’s oceans. A typical voyage by one of the global fleet of around 750 of the giant ships currently in service might see it haul Middle Eastern exports across the Atlantic to a refinery on the U.S. Gulf coast, then pick up a cargo from Venezuela for delivery to China or India, before returning to the Persian Gulf.
Vessels only earn money when they’re full, so being able to haul cargoes in both directions across the seas makes a great deal of sense for ship owners. But soaring U.S. production, OPEC output cuts and sanctions on Iran and Venezuela are turning the global crude oil trade on its head.
Supertankers hauling seawater across the Atlantic? That's just one of the odder results of the U.S. shale boom.
Crude oil has always flowed backwards and forwards across the world’s oceans. A typical voyage by one of the global fleet of around 750 of the giant ships currently in service might see it haul Middle Eastern exports across the Atlantic to a refinery on the U.S. Gulf coast, then pick up a cargo from Venezuela for delivery to China or India, before returning to the Persian Gulf.
Vessels only earn money when they’re full, so being able to haul cargoes in both directions across the seas makes a great deal of sense for ship owners. But soaring U.S. production, OPEC output cuts and sanctions on Iran and Venezuela are turning the global crude oil trade on its head.
#Dubai Stocks Cross Resistance Level Held For a Year: Inside EM - Bloomberg
Dubai Stocks Cross Resistance Level Held For a Year: Inside EM - Bloomberg:
Dubai’s main stock index ended Sunday’s session above a resistance level that it had held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It has crossed above its 100-day moving average for the first time since Jan. 18, 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
Dubai’s main stock index ended Sunday’s session above a resistance level that it had held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It has crossed above its 100-day moving average for the first time since Jan. 18, 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
#Saudi Prince Shows Grip on Power, Names First Female U.S. Envoy - Bloomberg
Saudi Prince Shows Grip on Power, Names First Female U.S. Envoy - Bloomberg:
Saudi Crown Prince Mohammed bin Salman solidified his immediate family’s sway by promoting his full brother and tried to turn the page on relations with the U.S. by appointing the kingdom’s first female ambassador to America.
Princess Reema bint Bandar bin Sultan will replace Prince Khalid bin Salman, who was named vice defense minister. The decision to pick the daughter of a longtime Saudi envoy in Washington suggests the government is trying to soften its image at a time of tense relations with Congress over the murder of Saudi insider-turned-critic Jamal Khashoggi as well as outrage over the arrest of women activists and Yemen’s humanitarian crisis.
The royal order announcing the appointments was made late on Saturday by the crown prince, who is also the defense minister, on behalf of King Salman.
Saudi Crown Prince Mohammed bin Salman solidified his immediate family’s sway by promoting his full brother and tried to turn the page on relations with the U.S. by appointing the kingdom’s first female ambassador to America.
Princess Reema bint Bandar bin Sultan will replace Prince Khalid bin Salman, who was named vice defense minister. The decision to pick the daughter of a longtime Saudi envoy in Washington suggests the government is trying to soften its image at a time of tense relations with Congress over the murder of Saudi insider-turned-critic Jamal Khashoggi as well as outrage over the arrest of women activists and Yemen’s humanitarian crisis.
The royal order announcing the appointments was made late on Saturday by the crown prince, who is also the defense minister, on behalf of King Salman.
INTERVIEW: #Saudi grocery retailer BinDawood Group expanding aggressively - CEO | ZAWYA MENA Edition
INTERVIEW: Saudi grocery retailer BinDawood Group expanding aggressively - CEO | ZAWYA MENA Edition:
Saudi Arabia’s BinDawood Group, the owner of the Danube & BinDawood supermarket brands, is gearing up for an aggressive online and offline expansion within the kingdom, and is also looking at opportunities to grow physical stores beyond the Saudi borders, the group’s chief executive has told Zawya.
Despite the fact that many physical retail companies are struggling worldwide, BinDawood Group’s CEO Ahmad A.R. BinDawood believes that there is still room for traditional retail to grow, especially in Saudi Arabia, where the lifting of the ban on women driving ‘offers a rare opportunity for Saudi retailers’.
And while the CEO expects a minimal negative impact from a combination of last year’s value-added tax, the introduction of expat dependents’ fees and a Saudisation drive in retail, he believes this could play into the hands of stronger companies, with more consolidation in the sector anticipated in 2019, especially among small retailers in the kingdom.
Saudi Arabia’s BinDawood Group, the owner of the Danube & BinDawood supermarket brands, is gearing up for an aggressive online and offline expansion within the kingdom, and is also looking at opportunities to grow physical stores beyond the Saudi borders, the group’s chief executive has told Zawya.
Despite the fact that many physical retail companies are struggling worldwide, BinDawood Group’s CEO Ahmad A.R. BinDawood believes that there is still room for traditional retail to grow, especially in Saudi Arabia, where the lifting of the ban on women driving ‘offers a rare opportunity for Saudi retailers’.
And while the CEO expects a minimal negative impact from a combination of last year’s value-added tax, the introduction of expat dependents’ fees and a Saudisation drive in retail, he believes this could play into the hands of stronger companies, with more consolidation in the sector anticipated in 2019, especially among small retailers in the kingdom.
#Dubai tourism grows marginally in 2018, China tourists up 12 percent: data | Reuters
Dubai tourism grows marginally in 2018, China tourists up 12 percent: data | Reuters:
Gulf tourism hub Dubai had 15.92 million overnight tourist visitors in 2018, up 0.8 percent from 2017, official data showed on Sunday, with tourist numbers from China rose 12 percent.
The number of visitors from Nigeria soared 36 percent.
Gulf tourism hub Dubai had 15.92 million overnight tourist visitors in 2018, up 0.8 percent from 2017, official data showed on Sunday, with tourist numbers from China rose 12 percent.
The number of visitors from Nigeria soared 36 percent.
REFILE-MIDEAST STOCKS- #Dubai hits 2-month high, #Saudi hurt by financials | Reuters
REFILE-MIDEAST STOCKS-Dubai hits 2-month high, Saudi hurt by financials | Reuters:
Dubai stocks rose to a more than 2-month high on Sunday after falling in the previous session, helped by strong gains in property stocks, while financials weighed on both the Saudi and Qatari markets.
Dubai's index was up 1.3 percent, supported by Emaar Properties, which gained 3.2 percent, DAMAC Properties surged 8.4 percent and Emaar Malls rose 5.1 percent.
Emirates NBD Bank fell 5.3 percent after the bank last week announced it has received approval from its shareholders to issue new shares.
Dubai stocks rose to a more than 2-month high on Sunday after falling in the previous session, helped by strong gains in property stocks, while financials weighed on both the Saudi and Qatari markets.
Dubai's index was up 1.3 percent, supported by Emaar Properties, which gained 3.2 percent, DAMAC Properties surged 8.4 percent and Emaar Malls rose 5.1 percent.
Emirates NBD Bank fell 5.3 percent after the bank last week announced it has received approval from its shareholders to issue new shares.
#Dubai Stocks Poised to End Above Resistance Level: Inside EM - Bloomberg
Dubai Stocks Poised to End Above Resistance Level: Inside EM - Bloomberg:
Dubai’s main stock index is poised to end above a resistance level that it has held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It was poised to finish above its 100-day moving average for the first time since early 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
Dubai’s main stock index is poised to end above a resistance level that it has held for over a year, boosted by continued gains for the biggest listed real-estate developer.
The DFM General Index advanced for an eighth straight session, extending its longest winning streak in over a year. It was poised to finish above its 100-day moving average for the first time since early 2018.
The stock contributing the most to the gauge’s increase was Emaar Properties PJSC, a bellwether for the local real-estate market, which entered a bull market last week after delivering earnings that surprised analysts on the positive side. Emaar advanced for the seventh session, stretching its longest winning streak since July 2017.
#UAE's ADNOC seals $4 billion pipeline infrastructure deal with KKR, BlackRock | Reuters
UAE's ADNOC seals $4 billion pipeline infrastructure deal with KKR, BlackRock | Reuters:
Abu Dhabi National Oil Company (ADNOC) has sealed a $4 billion midstream pipeline infrastructure deal with U.S. investment firms KKR and BlackRock, the Abu Dhabi government owned company said on Sunday.
A new entity called ADNOC Oil Pipelines will lease the oil firm’s interest in 18 pipelines, transporting crude oil and condensates across Adnoc’s offshore and onshore upstream concessions for a 23-year period, ADNOC said in a statement.
Funds managed by KKR and BlackRock will form a consortium to hold a 40 percent stake in the entity with ADNOC owning the remainder. ADNOC will have sovereignty over the pipelines and management of pipeline operations.
Abu Dhabi National Oil Company (ADNOC) has sealed a $4 billion midstream pipeline infrastructure deal with U.S. investment firms KKR and BlackRock, the Abu Dhabi government owned company said on Sunday.
A new entity called ADNOC Oil Pipelines will lease the oil firm’s interest in 18 pipelines, transporting crude oil and condensates across Adnoc’s offshore and onshore upstream concessions for a 23-year period, ADNOC said in a statement.
Funds managed by KKR and BlackRock will form a consortium to hold a 40 percent stake in the entity with ADNOC owning the remainder. ADNOC will have sovereignty over the pipelines and management of pipeline operations.
UPDATE 1- #Saudi c.bank governor says does not see more bank mergers | Reuters
UPDATE 1-Saudi c.bank governor says does not see more bank mergers | Reuters:
Saudi Arabia’s central bank does not see more bank mergers for the time being beyond those already announced, its governor Ahmed al-Kholifey said on Sunday.
His comments came after National Commercial Bank, the kingdom’s biggest lender by assets, and Riyad Bank said in December they had begun preliminary talks to potentially create a combined group with $183 billion in assets.
That move came two months after Saudi British Bank (SABB) and smaller rival Alawwal Bank agreed a binding deal to create Saudi Arabia’s third-biggest lender in the first major tie-up for the country’s banking sector in recent times.
Saudi Arabia’s central bank does not see more bank mergers for the time being beyond those already announced, its governor Ahmed al-Kholifey said on Sunday.
His comments came after National Commercial Bank, the kingdom’s biggest lender by assets, and Riyad Bank said in December they had begun preliminary talks to potentially create a combined group with $183 billion in assets.
That move came two months after Saudi British Bank (SABB) and smaller rival Alawwal Bank agreed a binding deal to create Saudi Arabia’s third-biggest lender in the first major tie-up for the country’s banking sector in recent times.
MIDEAST STOCKS- #Dubai lifted by Emaar Properties, #Saudi hurt by banks | Reuters
MIDEAST STOCKS-Dubai lifted by Emaar Properties, Saudi hurt by banks | Reuters:
Dubai stocks rebounded on Sunday after falling in the previous session, helped by strong gains in market heavyweight Emaar Properties, while financials weighed on both the Saudi and Qatari markets.
Dubai’s index was up 0.4 percent, supported by Emaar Properties, which gained 2.6 percent.
Property firms have led a recent rally after signs of recovery in their fourth-quarter results and more construction contracts. However they remain vulnerable to falling property prices.
Dubai stocks rebounded on Sunday after falling in the previous session, helped by strong gains in market heavyweight Emaar Properties, while financials weighed on both the Saudi and Qatari markets.
Dubai’s index was up 0.4 percent, supported by Emaar Properties, which gained 2.6 percent.
Property firms have led a recent rally after signs of recovery in their fourth-quarter results and more construction contracts. However they remain vulnerable to falling property prices.
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