Saudi Aramco seeks to overhaul engines and fuel amid electric vehicle hype:
More efficient fuels and more sophisticated combustion engines are needed to bring down carbon dioxide pollution and to secure the long-term future of Saudi Aramco’s business, the company’s chief technology officer said on Wednesday.
“The growth of transport is greater than the growth of alternative drivetrains,” Ahmad Al-Khowaiter, Chief Technology Officer at Saudi Aramco told journalists at the Geneva car show.
The spike in electric car production in Europe will not offset an overall increase in global greenhouse gas emissions as emerging economies industrialize and buy cars with petrol and diesel engines, Al-Khowaiter said.
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Wednesday 6 March 2019
EU Justice Chief Stands by Dirty Money List Targeting Saudis - Bloomberg
EU Justice Chief Stands by Dirty Money List Targeting Saudis - Bloomberg:
A European Commission money-laundering blacklist, which ranks Saudi Arabia as a high-risk country, is “the right thing” to fight money laundering and terrorist financing, the European Union’s justice chief argued as EU members states threatened to vote against the list this week.
The list of jurisdictions with inadequate controls on illicit transactions and terrorism financing was proposed by the EU’s executive authority last month and was quickly criticized by the U.S. Treasury as the result of a flawed process.
“I am absolutely convinced that we did the right thing,” EU Justice Commissioner Vera Jourova told a European Parliament committee Tuesday. “I personally gave a lot of commitments and promises to European people that we will efficiently fight against money-laundering and terrorist financing. Those who lobbied me very heavily before we adopted this list, maybe were not aware that for me these promises are a very strong motivation.”
A European Commission money-laundering blacklist, which ranks Saudi Arabia as a high-risk country, is “the right thing” to fight money laundering and terrorist financing, the European Union’s justice chief argued as EU members states threatened to vote against the list this week.
The list of jurisdictions with inadequate controls on illicit transactions and terrorism financing was proposed by the EU’s executive authority last month and was quickly criticized by the U.S. Treasury as the result of a flawed process.
“I am absolutely convinced that we did the right thing,” EU Justice Commissioner Vera Jourova told a European Parliament committee Tuesday. “I personally gave a lot of commitments and promises to European people that we will efficiently fight against money-laundering and terrorist financing. Those who lobbied me very heavily before we adopted this list, maybe were not aware that for me these promises are a very strong motivation.”
Saudis Said to Mull Hiking Tax on Local Banks to as Much as 20% - Bloomberg
Saudis Said to Mull Hiking Tax on Local Banks to as Much as 20% - Bloomberg:
Saudi Arabia is considering plans to increase an Islamic tax paid by local banks to as much as 20 percent, or double the current rate, according to people with knowledge of the matter, as the world’s biggest oil exporter seeks to bolster alternative sources of revenue.
The tax authority is in talks with lenders about raising the religious levy, known as Zakat, potentially bringing it in line with the 20 percent rate paid by foreign banks in the kingdom, the people said, asking not to be identified because the discussions are private. The talks are ongoing and the final rate could be lower, they said.
Local lenders started paying Zakat at 10 percent of profit after deducting returns on government bonds from last year as part of a settlement with the authority. They used to pay at 2.5 percent of equity and the new rate was applied retrospectively for many years, in some cases stretching as far back as 2002. A spokesman for the General Authority of Zakat and Tax declined to comment.
Saudi Arabia is considering plans to increase an Islamic tax paid by local banks to as much as 20 percent, or double the current rate, according to people with knowledge of the matter, as the world’s biggest oil exporter seeks to bolster alternative sources of revenue.
The tax authority is in talks with lenders about raising the religious levy, known as Zakat, potentially bringing it in line with the 20 percent rate paid by foreign banks in the kingdom, the people said, asking not to be identified because the discussions are private. The talks are ongoing and the final rate could be lower, they said.
Local lenders started paying Zakat at 10 percent of profit after deducting returns on government bonds from last year as part of a settlement with the authority. They used to pay at 2.5 percent of equity and the new rate was applied retrospectively for many years, in some cases stretching as far back as 2002. A spokesman for the General Authority of Zakat and Tax declined to comment.
#AbuDhabi Mega-Lenders May Bring More Pain to 3 #Dubai Stocks - Bloomberg
Abu Dhabi Mega-Lenders May Bring More Pain to 3 Dubai Stocks - Bloomberg:
Banks based in Abu Dhabi are expected to put more pressure on stocks that have already taken a beating in neighboring Dubai.
A merger between Abu Dhabi Commercial Bank PJSC and Union National Bank PJSC on May 1 could draw around $193 million from investors who track benchmarks compiled by MSCI Inc. and FTSE Russell, according to Mohamad Al Hajj, an equities strategist at EFG-Hermes Holding.
The combined entity will later acquire a privately-held bank, creating a lender with around $114 billion in assets, and could trigger the ouster of three stocks in Dubai from MSCI’s benchmarks, he wrote in a report.
Banks based in Abu Dhabi are expected to put more pressure on stocks that have already taken a beating in neighboring Dubai.
A merger between Abu Dhabi Commercial Bank PJSC and Union National Bank PJSC on May 1 could draw around $193 million from investors who track benchmarks compiled by MSCI Inc. and FTSE Russell, according to Mohamad Al Hajj, an equities strategist at EFG-Hermes Holding.
The combined entity will later acquire a privately-held bank, creating a lender with around $114 billion in assets, and could trigger the ouster of three stocks in Dubai from MSCI’s benchmarks, he wrote in a report.
Nobody Knows How #Dubai’s Economy’s Been Doing Lately - Bloomberg
Nobody Knows How Dubai’s Economy’s Been Doing Lately - Bloomberg:
In Dubai, the focus is often too much on the economy of tomorrow rather than that of the recent past.
Even as it constructs the Museum of the Future ahead of an opening next year, the Middle East’s financial hub still hasn’t reported how its gross domestic product performed since 2017. Also missing are other figures considered basic elsewhere, ranging from retail and auto sales to industrial production.
The lack of an accurate read on the $106 billion economy leaves investors and businesses already stung last year by the world’s worst equity performance struggling to decide if it’s time to start buying. The official vacuum often forces them to glean insights from anecdotal conversations with retailers, owners of car dealerships and business conglomerates.
In Dubai, the focus is often too much on the economy of tomorrow rather than that of the recent past.
Even as it constructs the Museum of the Future ahead of an opening next year, the Middle East’s financial hub still hasn’t reported how its gross domestic product performed since 2017. Also missing are other figures considered basic elsewhere, ranging from retail and auto sales to industrial production.
The lack of an accurate read on the $106 billion economy leaves investors and businesses already stung last year by the world’s worst equity performance struggling to decide if it’s time to start buying. The official vacuum often forces them to glean insights from anecdotal conversations with retailers, owners of car dealerships and business conglomerates.
Oil Retreats as Surprise Jump in U.S. Stockpiles Hints at Glut - Bloomberg
Oil Retreats as Surprise Jump in U.S. Stockpiles Hints at Glut - Bloomberg:
Oil retreated for the second day in a row after U.S. crude stockpiles ballooned, casting a shadow over OPEC’s efforts to avert a global glut.
Futures in New York closed 0.6 percent lower on Wednesday after the U.S. Energy Information Administration said domestic oil inventories grew by 7.07 million barrels, exceeding every estimate in a Bloomberg survey. A larger-than-expected draw-down in refined products eased some fears about demand but wasn’t enough to bolster the market.
Crude prices rallied more than 25 percent through mid-February as the Organization of Petroleum Exporting Countries and its partners curbed output. But the rally’s stalled since then, as traders fretted about a fragile global economy and the U.S.-China trade spat. The Organization for Economic Cooperation and Development trimmed its growth outlook earlier in the day.
Oil retreated for the second day in a row after U.S. crude stockpiles ballooned, casting a shadow over OPEC’s efforts to avert a global glut.
Futures in New York closed 0.6 percent lower on Wednesday after the U.S. Energy Information Administration said domestic oil inventories grew by 7.07 million barrels, exceeding every estimate in a Bloomberg survey. A larger-than-expected draw-down in refined products eased some fears about demand but wasn’t enough to bolster the market.
Crude prices rallied more than 25 percent through mid-February as the Organization of Petroleum Exporting Countries and its partners curbed output. But the rally’s stalled since then, as traders fretted about a fragile global economy and the U.S.-China trade spat. The Organization for Economic Cooperation and Development trimmed its growth outlook earlier in the day.
#Qatar Airways to phase out A380 from 2024 | Reuters
Qatar Airways to phase out A380 from 2024 | Reuters:
Qatar Airways will start to phase out its fleet of Airbus A380 aircraft from 2024, its chief executive said on Wednesday.
“We will start phasing out A380 as soon as it is ten years old,” Akbar al-Baker told reporters at the ITB travel fair in Berlin, adding the airline took its first A380 in 2014.
Airbus announced last month it would scrap production of the A380 from 2021 superjumbo following lacklustre sales.
Qatar Airways will start to phase out its fleet of Airbus A380 aircraft from 2024, its chief executive said on Wednesday.
“We will start phasing out A380 as soon as it is ten years old,” Akbar al-Baker told reporters at the ITB travel fair in Berlin, adding the airline took its first A380 in 2014.
Airbus announced last month it would scrap production of the A380 from 2021 superjumbo following lacklustre sales.
#Qatar sells triple-tranche jumbo bond to raise $12 billion | Reuters
Qatar sells triple-tranche jumbo bond to raise $12 billion | Reuters:
Qatar sold $12 billion in bonds on Wednesday, and drew around $50 billion in demand - the largest order book globally since its bond sale last year and the latest indication of how the country has overcome a boycott imposed by some of its Arab neighbors.
The debt sale, split into tranches of five, 10 and 30 years, was much bigger than the $7.5 billion bond issued by rival Saudi Arabia in January, which had attracted over $27 billion in orders.
It was not clear where most of the demand came from, but the high volume showed that despite a lack of demand from Gulf countries, hampered by the boycott, international investor demand remained strong.
Qatar sold $12 billion in bonds on Wednesday, and drew around $50 billion in demand - the largest order book globally since its bond sale last year and the latest indication of how the country has overcome a boycott imposed by some of its Arab neighbors.
The debt sale, split into tranches of five, 10 and 30 years, was much bigger than the $7.5 billion bond issued by rival Saudi Arabia in January, which had attracted over $27 billion in orders.
It was not clear where most of the demand came from, but the high volume showed that despite a lack of demand from Gulf countries, hampered by the boycott, international investor demand remained strong.
MIDEAST STOCKS-Lender FAB hurts #AbuDhabi, #Qatar nears five-month low | Reuters
MIDEAST STOCKS-Lender FAB hurts Abu Dhabi, Qatar nears five-month low | Reuters:
Abu Dhabi's stock index fell sharply for its worst day in eight months on Wednesday while Qatar touched its lowest in nearly five months, pressured respectively by First Abu Dhabi Bank (FAB) and Industries Qatar going ex-dividend.
The Abu Dhabi index fell 2.2 percent, its biggest intraday loss since June 2018, with largest lender First Abu Dhabi Bank dropping 5.2 percent after going ex-dividend. The bank had declared a cash dividend of 0.74 dirhams last month.
Union National Bank, meanwhile, gained 1.1 percent after calling for a shareholder meeting to approve the proposed merger between with Abu Dhabi Commercial Bank, which firmed by 0.2 percent.
Abu Dhabi's stock index fell sharply for its worst day in eight months on Wednesday while Qatar touched its lowest in nearly five months, pressured respectively by First Abu Dhabi Bank (FAB) and Industries Qatar going ex-dividend.
The Abu Dhabi index fell 2.2 percent, its biggest intraday loss since June 2018, with largest lender First Abu Dhabi Bank dropping 5.2 percent after going ex-dividend. The bank had declared a cash dividend of 0.74 dirhams last month.
Union National Bank, meanwhile, gained 1.1 percent after calling for a shareholder meeting to approve the proposed merger between with Abu Dhabi Commercial Bank, which firmed by 0.2 percent.
#Qatar National Bank closes $2.26bln loan with high subscription | ZAWYA MENA Edition
Qatar National Bank closes $2.26bln loan with high subscription | ZAWYA MENA Edition:
Qatar National Bank , the largest bank by assets in the Middle East and Africa, said on Wednesday it had closed a syndicated, three-year loan worth 2 billion euros ($2.26 billion), with subscriptions reaching 3.5 billion euros.
The new syndicated loan replaces a 2.25 billion euro-denominated loan obtained in May 2016.
"Despite the excess commitments received, QNB decided to reduce the overall issuance and closed the transaction successfully at 2.0 billion euros," a statement from QNB said.
Qatar National Bank , the largest bank by assets in the Middle East and Africa, said on Wednesday it had closed a syndicated, three-year loan worth 2 billion euros ($2.26 billion), with subscriptions reaching 3.5 billion euros.
The new syndicated loan replaces a 2.25 billion euro-denominated loan obtained in May 2016.
"Despite the excess commitments received, QNB decided to reduce the overall issuance and closed the transaction successfully at 2.0 billion euros," a statement from QNB said.
Dana Gas, Crescent sign 20-year gas sales deal with Iraq's KRG | ZAWYA MENA Edition
Dana Gas, Crescent sign 20-year gas sales deal with Iraq's KRG | ZAWYA MENA Edition:
A consortium led by the United Arab Emirates' Crescent Petroleum and Dana Gas has signed a 20-year gas sales deal with Iraq's Kurdish region that will boost the project's gas output by 63 percent in two years, the companies said on Wednesday.
The agreement by the Pearl Petroleum consortium will "enable production and sales of an additional 250 million standard cubic feet (mmscf) per day by 2021", a statement said.
Plans are underway to increase gas production from the Khor Mor field to 650 mmscf per day by 2021 and 900 mmscf per day by 2022, the companies said.
A consortium led by the United Arab Emirates' Crescent Petroleum and Dana Gas has signed a 20-year gas sales deal with Iraq's Kurdish region that will boost the project's gas output by 63 percent in two years, the companies said on Wednesday.
The agreement by the Pearl Petroleum consortium will "enable production and sales of an additional 250 million standard cubic feet (mmscf) per day by 2021", a statement said.
Plans are underway to increase gas production from the Khor Mor field to 650 mmscf per day by 2021 and 900 mmscf per day by 2022, the companies said.
#Qatar Airways to report second consecutive full year loss: CEO | Reuters
Qatar Airways to report second consecutive full year loss: CEO | Reuters:
Qatar Airways will report a second consecutive annual lost this year, its chief executive said on Wednesday, blaming higher fuel costs and unfavorable currency exchange rates.
The state-owned airline has rapidly expanded to new destinations since it lost access to 18 Middle East cities in 2017 due to a diplomatic rift between Qatar and some other Arab states.
“We announced a loss last year and we will announce another loss this year but it doesn’t mean that Qatar Airways is not going to expand or invest,” Akbar al-Baker told reporters at the ITB travel fair in Berlin.
Qatar Airways will report a second consecutive annual lost this year, its chief executive said on Wednesday, blaming higher fuel costs and unfavorable currency exchange rates.
The state-owned airline has rapidly expanded to new destinations since it lost access to 18 Middle East cities in 2017 due to a diplomatic rift between Qatar and some other Arab states.
“We announced a loss last year and we will announce another loss this year but it doesn’t mean that Qatar Airways is not going to expand or invest,” Akbar al-Baker told reporters at the ITB travel fair in Berlin.
UPDATE 3- #Qatar gets over $35 bln in orders as it markets jumbo bond | Reuters
UPDATE 3-Qatar gets over $35 bln in orders as it markets jumbo bond | Reuters:
Qatar started marketing on Wednesday a U.S. dollar-denominated bond issue that so far attracted over $35 billion in demand, the latest indication of how the country has overcome a boycott imposed by some of its Arab neighbours.
The debt sale, split into tranches of five, 10 and 30 years, will end later on Wednesday, according to a document issued by one of the banks leading the deal and seen by Reuters.
“I can imagine that they might issue between $7.5 and $12.5 billion. I think they will decide on how the books will develop. If there is heavy over-subscription like it was in April last year, then a larger deal will be likely,” said Sergey Dergachev, senior portfolio manager at Germany-based Union Investment.
Qatar started marketing on Wednesday a U.S. dollar-denominated bond issue that so far attracted over $35 billion in demand, the latest indication of how the country has overcome a boycott imposed by some of its Arab neighbours.
The debt sale, split into tranches of five, 10 and 30 years, will end later on Wednesday, according to a document issued by one of the banks leading the deal and seen by Reuters.
“I can imagine that they might issue between $7.5 and $12.5 billion. I think they will decide on how the books will develop. If there is heavy over-subscription like it was in April last year, then a larger deal will be likely,” said Sergey Dergachev, senior portfolio manager at Germany-based Union Investment.
#Dubai developer Nakheel's fourth quarter profit falls 69 percent | Reuters
Dubai developer Nakheel's fourth quarter profit falls 69 percent | Reuters:
Dubai state-owned developer Nakheel’s fourth-quarter net profit fell 69 percent, according to Reuters calculations, as a drop in property prices has forced construction and engineering firms to cut jobs and halt expansion plans.
Nakheel made a profit of 520 million dirhams ($141.6 million) in the October-December period, Reuters calculated, down from 1.67 billion dirhams a year ago.
The developer behind Dubai’s palm-shaped islands reported on Wednesday a 2018 annual profit of 4.38 billion dirhams, down from 5.67 billion dirhams in 2017. It did not report revenue.
Dubai state-owned developer Nakheel’s fourth-quarter net profit fell 69 percent, according to Reuters calculations, as a drop in property prices has forced construction and engineering firms to cut jobs and halt expansion plans.
Nakheel made a profit of 520 million dirhams ($141.6 million) in the October-December period, Reuters calculated, down from 1.67 billion dirhams a year ago.
The developer behind Dubai’s palm-shaped islands reported on Wednesday a 2018 annual profit of 4.38 billion dirhams, down from 5.67 billion dirhams in 2017. It did not report revenue.
Mideast Stocks: #AbuDhabi and #Qatar drop as heavyweight blue-chips go ex-dividend | ZAWYA MENA Edition
Mideast Stocks: Abu Dhabi and Qatar drop as heavyweight blue-chips go ex-dividend | ZAWYA MENA Edition:
Abu Dhabi's stock index fell sharply on Wednesday, hurt by a slide in First Abu Dhabi Bank , while Qatar was pulled down by Industries Qatar , after both shares went ex-dividend.
The Abu Dhabi index fell 2 percent, declining for the fifth straight session with First Abu Dhabi Bank , the country's largest lender, slumping 4.5 percent.
The bank announced a cash dividend of 0.74 dirhams last month.
Abu Dhabi's stock index fell sharply on Wednesday, hurt by a slide in First Abu Dhabi Bank , while Qatar was pulled down by Industries Qatar , after both shares went ex-dividend.
The Abu Dhabi index fell 2 percent, declining for the fifth straight session with First Abu Dhabi Bank , the country's largest lender, slumping 4.5 percent.
The bank announced a cash dividend of 0.74 dirhams last month.
#Oman Has Work to Do Before a Bond Sale With Ratings All Junk - Bloomberg
Oman Has Work to Do Before a Bond Sale With Ratings All Junk - Bloomberg:
Before Oman succumbs to the temptation of selling Eurobonds, some analysts say the sultanate will first need to convince the market it’s pushing through reforms to tame its budget deficit.
That sentiment was echoed late Tuesday by Moody’s Investors Service, which downgraded the nation’s credit rating to junk. Oman now has a sub-investment grade by all three major rating companies.
“Investors continue to demand a higher risk premium on Oman due to technical and economic reasons,” said Mohammad Ahsan, managing director of rates and fixed income at Mashreq Bank in Dubai, who expects the nation to sell bonds in March or April. But “it should tap the debt markets sooner rather than later,” he said, given the pause in U.S. interest rate increases.
Before Oman succumbs to the temptation of selling Eurobonds, some analysts say the sultanate will first need to convince the market it’s pushing through reforms to tame its budget deficit.
That sentiment was echoed late Tuesday by Moody’s Investors Service, which downgraded the nation’s credit rating to junk. Oman now has a sub-investment grade by all three major rating companies.
“Investors continue to demand a higher risk premium on Oman due to technical and economic reasons,” said Mohammad Ahsan, managing director of rates and fixed income at Mashreq Bank in Dubai, who expects the nation to sell bonds in March or April. But “it should tap the debt markets sooner rather than later,” he said, given the pause in U.S. interest rate increases.
#Dubai developer Nakheel begins large-scale layoffs | ZAWYA MENA Edition
Dubai developer Nakheel begins large-scale layoffs | ZAWYA MENA Edition:
Developer Nakheel has laid off around 300 staff in recent weeks as the ongoing downturn in Dubai's property market has begun to bite.
A source told Zawya that the layoffs at the government-owned developer of projects such as Palm Jumeirah and Deira Islands have occurred within the past few weeks.
In an emailed statement to Zawya, the developer said: “We continue to enhance efficiencies by implementing policies, such as outsourcing non-essential positions, that are in the best long term interests of our stakeholders.”
Developer Nakheel has laid off around 300 staff in recent weeks as the ongoing downturn in Dubai's property market has begun to bite.
A source told Zawya that the layoffs at the government-owned developer of projects such as Palm Jumeirah and Deira Islands have occurred within the past few weeks.
In an emailed statement to Zawya, the developer said: “We continue to enhance efficiencies by implementing policies, such as outsourcing non-essential positions, that are in the best long term interests of our stakeholders.”
UPDATE 1-Moody's downgrades #Oman on challenges to fiscal consolidation | Reuters
UPDATE 1-Moody's downgrades Oman on challenges to fiscal consolidation | Reuters:
Moody’s cut Oman’s credit rating to junk, saying its outlook for the rating was negative and citing fiscal challenges in an environment of moderate oil prices.
Oman’s state coffers have been hit hard by a slump in oil prices in recent years, resulting in a wide budget deficit that it has struggled to tame.
Both Fitch and S&P have also cut Oman’s rating to junk over the past two years.
Moody’s cut Oman’s credit rating to junk, saying its outlook for the rating was negative and citing fiscal challenges in an environment of moderate oil prices.
Oman’s state coffers have been hit hard by a slump in oil prices in recent years, resulting in a wide budget deficit that it has struggled to tame.
Both Fitch and S&P have also cut Oman’s rating to junk over the past two years.
#Saudi sees investment in housing sector at 60 bln riyals in 2019 | Reuters
Saudi sees investment in housing sector at 60 bln riyals in 2019 | Reuters:
Saudi Arabia’s housing minister Majed al-Hogail, said on Wednesday he expects invesment in the housing sector to reach 60 billion Saudi riyals ($16.00 billion)in 2019.
The private sector is now financing 100 percent of housing market needs, up from 35 percent previously, the minister also said in a speech at a conference.
Saudi Arabia’s housing minister Majed al-Hogail, said on Wednesday he expects invesment in the housing sector to reach 60 billion Saudi riyals ($16.00 billion)in 2019.
The private sector is now financing 100 percent of housing market needs, up from 35 percent previously, the minister also said in a speech at a conference.
UPDATE 1- #Qatar starts marketing multi-tranche dollar bond | Reuters
UPDATE 1-Qatar starts marketing multi-tranche dollar bond | Reuters:
Qatar, the world’s largest exporter of liquefied natural gas, started marketing on Wednesday a U.S. dollar-denominated bond issue split into tranches of five, 10 and 30 years.
The debt sale, which sources said could go up to around $10 billion, will be finalised later on Wednesday, according to a document issued by one of the banks leading the deal and seen by Reuters.
The five-year notes are offering an initial price guidance of around 110 basis points over US Treasuries, while the 10-year and the 30-year notes offer around 160 bps and 200 bps over the same benchmark.
Qatar, the world’s largest exporter of liquefied natural gas, started marketing on Wednesday a U.S. dollar-denominated bond issue split into tranches of five, 10 and 30 years.
The debt sale, which sources said could go up to around $10 billion, will be finalised later on Wednesday, according to a document issued by one of the banks leading the deal and seen by Reuters.
The five-year notes are offering an initial price guidance of around 110 basis points over US Treasuries, while the 10-year and the 30-year notes offer around 160 bps and 200 bps over the same benchmark.