Pharo Hedge Fund Returns Saudi Cash After Khashoggi Murder - Bloomberg:
A hedge fund has told investors it returned money to Saudi Arabia following the murder of columnist Jamal Khashoggi, according to people with knowledge of the matter.
The move is a rare rebuke to one of the world’s most influential investors. Pharo Management (UK) LLP in December gave back about $300 million that it had previously managed for the kingdom’s central bank Saudi Arabian Monetary Authority, known as SAMA, one of the people said, asking not to be identified because the information is confidential.
Guillaume Fonkenell, 54, who founded Pharo, told some investors in January that the decision was made to uphold its principles due to concerns about Khashoggi’s death at the hands of government agents last year, the person said.
Tuesday, 26 March 2019
Emirate of #Sharjah to raise $1bln with seven-year sukuk - source | ZAWYA MENA Edition
Emirate of Sharjah to raise $1bln with seven-year sukuk - source | ZAWYA MENA Edition:
The emirate of Sharjah, the third-largest constituent of the United Arab Emirates, is set to raise $1 billion in seven-year sukuk, or Islamic bonds, a source familiar with the terms of the transaction said.
Sharjah started marketing the paper earlier on Tuesday with a spread of around 180 basis points (bps) over mid-swap, which was later tightened to 155 bps, documents issued by one of the banks leading the deal showed.
Bank ABC, Dubai Islamic Bank , HSBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank have been hired as deal bookrunners.
The emirate of Sharjah, the third-largest constituent of the United Arab Emirates, is set to raise $1 billion in seven-year sukuk, or Islamic bonds, a source familiar with the terms of the transaction said.
Sharjah started marketing the paper earlier on Tuesday with a spread of around 180 basis points (bps) over mid-swap, which was later tightened to 155 bps, documents issued by one of the banks leading the deal showed.
Bank ABC, Dubai Islamic Bank , HSBC, KFH Capital, Sharjah Islamic Bank and Standard Chartered Bank have been hired as deal bookrunners.
Top traders see oil price sustained by tighter market in second half of 2019 | Reuters
Top traders see oil price sustained by tighter market in second half of 2019 | Reuters:
Four of the world’s biggest traders expect the Brent oil price in 2019 to largely linger in the $60s a barrel with a slight rise in the second half of the year due to a tightening market, they said on the sidelines of the FT Commodities Global Summit.
Glencore’s head of oil Alex Beard expects Brent to stay in the mid-$60s while Gunvor chief executive Torbjorn Tornqvist saw $60s to low $70s a barrel.
“I think they (the Saudis) like to see the oil price where it is and not lower,” Gunvor’s Tornqvist said.
Four of the world’s biggest traders expect the Brent oil price in 2019 to largely linger in the $60s a barrel with a slight rise in the second half of the year due to a tightening market, they said on the sidelines of the FT Commodities Global Summit.
Glencore’s head of oil Alex Beard expects Brent to stay in the mid-$60s while Gunvor chief executive Torbjorn Tornqvist saw $60s to low $70s a barrel.
“I think they (the Saudis) like to see the oil price where it is and not lower,” Gunvor’s Tornqvist said.
Oil rises 2 percent as tightening supplies take focus | Reuters
Oil rises 2 percent as tightening supplies take focus | Reuters:
Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.
Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.
Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.
Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.
U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data.
Oil rose nearly 2 percent on Tuesday as attention centered on geopolitical factors tightening supplies that are leading to falling exports from Venezuela and declining U.S. inventories.
Despite concerns about weaker demand due to an economic slowdown, oil prices have risen more than 25 percent this year, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and losses due to U.S. sanctions on Iran and Venezuela.
Venezuela’s main oil export port of Jose and its four crude upgraders have been unable to resume operations following a massive power blackout on Monday, the second in a month, according to industry workers and a union leader close to the facilities.
Brent settled up 76 cents at $67.97 a barrel, not far below its year-to-date high of $68.69, reached on March 21.
U.S. crude futures’ gains were sharper, rising $1.12, or 1.9 percent, to $59.94 a barrel, ahead of government inventory data.
MIDEAST STOCKS-Uber-Careem deal boosts #Saudi, real estate hurts #Dubai | Reuters
MIDEAST STOCKS-Uber-Careem deal boosts Saudi, real estate hurts Dubai | Reuters:
Saudi shares rose on Tuesday boosted by a 10 percent surge in travel operator Al Tayyar Group, a shareholder in ride hailing app Careem which Uber has agreed to buy.
Tayyar said it was expecting to make a gross profit of 1.78 billion riyals ($474.64 million) from the transaction, supporting a 0.1 percent gain in the Saudi index.
Dubai's index fell 0.7 percent, weighed down by declines across its real estate stocks. Dubai's largest listed-developer Emaar Properties lost 2.1 percent and its unit Emaar Malls dropped 1.7 percent.
Saudi shares rose on Tuesday boosted by a 10 percent surge in travel operator Al Tayyar Group, a shareholder in ride hailing app Careem which Uber has agreed to buy.
Tayyar said it was expecting to make a gross profit of 1.78 billion riyals ($474.64 million) from the transaction, supporting a 0.1 percent gain in the Saudi index.
Dubai's index fell 0.7 percent, weighed down by declines across its real estate stocks. Dubai's largest listed-developer Emaar Properties lost 2.1 percent and its unit Emaar Malls dropped 1.7 percent.
Gulf Capital JV Is in Talks to Sell #AbuDhabi Mall to Mubadala - Bloomberg
Gulf Capital JV Is in Talks to Sell Abu Dhabi Mall to Mubadala - Bloomberg:
Abu Dhabi-based private equity firm Gulf Capital PJSC is in talks to sell a mall to Mubadala Investment Co. and is raising a loan to boost liquidity.
Gulf Related, a joint venture between Gulf Capital’s real estate unit and U.S. developer Related Cos., is close to selling the Galleria Mall on Abu Dhabi’s Al Maryah Island to the sovereign wealth fund after operating the development for five years, Karim El Solh, Gulf Capital chief executive officer and Gulf Related’s co-managing partner, said in an interview.
“We are going to close very soon on that,” Mubadala executive director of real estate and infrastructure, Ali Eid Almheiri, said in the same interview, without revealing the size of the deal. “It just became obvious that we are the matching buyer.”
Abu Dhabi-based private equity firm Gulf Capital PJSC is in talks to sell a mall to Mubadala Investment Co. and is raising a loan to boost liquidity.
Gulf Related, a joint venture between Gulf Capital’s real estate unit and U.S. developer Related Cos., is close to selling the Galleria Mall on Abu Dhabi’s Al Maryah Island to the sovereign wealth fund after operating the development for five years, Karim El Solh, Gulf Capital chief executive officer and Gulf Related’s co-managing partner, said in an interview.
“We are going to close very soon on that,” Mubadala executive director of real estate and infrastructure, Ali Eid Almheiri, said in the same interview, without revealing the size of the deal. “It just became obvious that we are the matching buyer.”
Al Dhabi Capital’s Yasin Sees Pockets of Opportunity in #Saudi Market – Bloomberg
Al Dhabi Capital’s Yasin Sees Pockets of Opportunity in Saudi Market – Bloomberg:
Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, discusses Middle East markets and where he’s finding opportunity. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital, discusses Middle East markets and where he’s finding opportunity. He speaks on “Bloomberg Daybreak: Middle East.” (Source: Bloomberg)
Deutsche Bank Said to Face Qatari Resistance to Bank Merger - Bloomberg
Deutsche Bank Said to Face Qatari Resistance to Bank Merger - Bloomberg:
Deutsche Bank AG is facing resistance from top Qatari shareholders to its merger plans with Commerzbank AG, four people familiar with the matter said.
The investors are concerned that a deal would dilute their holdings if Deutsche Bank is forced to raise equity in a share sale to help fund the deal, the people said, asking not to be identified because the matter is private. The Persian Gulf nation is also seeking to negotiate other concessions before it backs the deal, the people said.
Deutsche Bank shares have slumped by about two thirds since Qatar first invested about five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn.
Deutsche Bank AG is facing resistance from top Qatari shareholders to its merger plans with Commerzbank AG, four people familiar with the matter said.
The investors are concerned that a deal would dilute their holdings if Deutsche Bank is forced to raise equity in a share sale to help fund the deal, the people said, asking not to be identified because the matter is private. The Persian Gulf nation is also seeking to negotiate other concessions before it backs the deal, the people said.
Deutsche Bank shares have slumped by about two thirds since Qatar first invested about five years ago. The discontent among key shareholders adds to widening opposition to the deal, which Germany sees as a way to ensure financing to the country’s export-oriented economy during a downturn.
Arcane Pollution Rule May Cost #Saudis and Neighbors Billions - Bloomberg
Arcane Pollution Rule May Cost Saudis and Neighbors Billions - Bloomberg:
The world’s biggest oil-exporting region may lose billions of dollars in annual revenue when an obscure United Nations requirement for ships to burn cleaner fuel takes effect next year.
Saudi Arabia, Iraq and other Middle Eastern suppliers of heavy, high-sulfur crude could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels. The UN maritime agency’s new rule kicks in on Jan. 1, and estimates of the possible price impact vary widely.
Revenues could drop by $5 a barrel starting in the second half as refiners and shippers prepare for the change, Citigroup Inc. says. Some traders expect a less dramatic slide, but even Saudi Energy Minister Khalid Al-Falih, whose country ships more oil than any other, sees a $1 reduction for some grades.
The world’s biggest oil-exporting region may lose billions of dollars in annual revenue when an obscure United Nations requirement for ships to burn cleaner fuel takes effect next year.
Saudi Arabia, Iraq and other Middle Eastern suppliers of heavy, high-sulfur crude could take a hit as refiners favor lighter, low-sulfur grades that they can process more easily into less-polluting fuels. The UN maritime agency’s new rule kicks in on Jan. 1, and estimates of the possible price impact vary widely.
Revenues could drop by $5 a barrel starting in the second half as refiners and shippers prepare for the change, Citigroup Inc. says. Some traders expect a less dramatic slide, but even Saudi Energy Minister Khalid Al-Falih, whose country ships more oil than any other, sees a $1 reduction for some grades.
Dubai to Allow Schools to Raise Fees After Freezing Last Year - Bloomberg
Dubai to Allow Schools to Raise Fees After Freezing Last Year - Bloomberg:
Dubai will allow most schools to raise fees in the next academic year after freezing them last year.
The Dubai Executive Council capped the fee increase at 2.07 percent for about 90 percent of students at private schools, according to a statement on Dubai Media Office’s website. Fees for the remaining 10 percent of students will rise above that limit, depending on their school’s performance.
The new fee structure is expected to be effective for the 2019-2020 academic year.
Dubai will allow most schools to raise fees in the next academic year after freezing them last year.
The Dubai Executive Council capped the fee increase at 2.07 percent for about 90 percent of students at private schools, according to a statement on Dubai Media Office’s website. Fees for the remaining 10 percent of students will rise above that limit, depending on their school’s performance.
The new fee structure is expected to be effective for the 2019-2020 academic year.
INTERVIEW: DFSA's new CEO needs to balance more than his workload | ZAWYA MENA Edition
INTERVIEW: DFSA's new CEO needs to balance more than his workload | ZAWYA MENA Edition: Bryan Stirewalt has stepped into the CEO’s role at Dubai Financial Services Authority at what is a very busy time for the regulatory body overseeing Dubai International Financial Centre (DIFC).
Stirewalt, who replaced the retiring Ian Johnson as CEO in September 2018 after an eight year-stint running the regulator’s supervisory arm, not only has the forthcoming visit of the Financial Action Task Force (FATF) – the global body overseeing anti-money laundering and terrorist financing regimes – to contend with, he also has to deal with the ongoing fallout from private equity firm Abraaj Group’s collapse, and the challenge of keeping abreast with technological changes as DIFC makes its push to become a global fintech hub.
For the next three months, it is the visit by officials from Paris-based FATF in July that will occupy much of the regulator’s time. The fourth Mutual Evaluation of the United Arab Emirates will be the first to take place since the 2008 financial crisis, and although the DFSA has no jurisdiction over criminal law, as the regulator of the country’s biggest financial free zone, it has been working with a national committee to make sure that its own rules are aligned with national anti-terror financing and anti-money laundering efforts.
Stirewalt, who replaced the retiring Ian Johnson as CEO in September 2018 after an eight year-stint running the regulator’s supervisory arm, not only has the forthcoming visit of the Financial Action Task Force (FATF) – the global body overseeing anti-money laundering and terrorist financing regimes – to contend with, he also has to deal with the ongoing fallout from private equity firm Abraaj Group’s collapse, and the challenge of keeping abreast with technological changes as DIFC makes its push to become a global fintech hub.
For the next three months, it is the visit by officials from Paris-based FATF in July that will occupy much of the regulator’s time. The fourth Mutual Evaluation of the United Arab Emirates will be the first to take place since the 2008 financial crisis, and although the DFSA has no jurisdiction over criminal law, as the regulator of the country’s biggest financial free zone, it has been working with a national committee to make sure that its own rules are aligned with national anti-terror financing and anti-money laundering efforts.
INTERVIEW: Daman Investments to launch two new funds | ZAWYA MENA Edition
INTERVIEW: Daman Investments to launch two new funds | ZAWYA MENA Edition:
Dubai-based Daman Investments is launching two new funds, with the first targeting conventional investors and the second being offered to those seeking shariah-compliant investments, the company’s head of asset management has told Zawya.
“We have new investment strategies we are trying to implement. We are targeting conventional and shariah-compliant investors,” Ali El Adou, head of asset management at Daman Investments told Zawya in an interview at the company’s office last week.
Daman Investments said in November last year that it was developing a new investment strategy targeting institutional investors, which would see it wind down three old funds ahead of the launch of its first new fund this year.
Dubai-based Daman Investments is launching two new funds, with the first targeting conventional investors and the second being offered to those seeking shariah-compliant investments, the company’s head of asset management has told Zawya.
“We have new investment strategies we are trying to implement. We are targeting conventional and shariah-compliant investors,” Ali El Adou, head of asset management at Daman Investments told Zawya in an interview at the company’s office last week.
Daman Investments said in November last year that it was developing a new investment strategy targeting institutional investors, which would see it wind down three old funds ahead of the launch of its first new fund this year.
#Saudi's Al Tayyar Travel exits Careem in $474mln deal | ZAWYA MENA Edition
Saudi's Al Tayyar Travel exits Careem in $474mln deal | ZAWYA MENA Edition:
Al Tayyar Travel Group, the Middle East’s leading technology-powered travel and tourism company, has announced that it will divest its investment in Careem, the leading ride-hailing app in Mena, with an exit value of SR1.78 billion ($474.58 million).
The move is in connection with the acquisition of Careem by Uber Technologies, a San Francisco headquartered transportation network company.
The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1, 2020.
Al Tayyar Travel Group, the Middle East’s leading technology-powered travel and tourism company, has announced that it will divest its investment in Careem, the leading ride-hailing app in Mena, with an exit value of SR1.78 billion ($474.58 million).
The move is in connection with the acquisition of Careem by Uber Technologies, a San Francisco headquartered transportation network company.
The net proceeds from the sale will be received partly in cash and partly in convertible notes in Uber, which are subject to the satisfaction of terms and conditions. The acquisition of Careem’s business in each country is subject to applicable regulatory approvals. The transaction is expected to close in Q1, 2020.
Oil rises further above $67 as OPEC cuts counter economic concern | Reuters
Oil rises further above $67 as OPEC cuts counter economic concern | Reuters:
Oil rose further above $67 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela.
Brent was up 50 cents at $67.71 a barrel at 1003 GMT, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added 72 cents at $59.54.
Oil rose further above $67 a barrel on Tuesday as OPEC supply cuts and expectations of lower U.S. inventories outweighed concern about weaker demand due to an economic slowdown.
The price of global benchmark Brent crude has risen about 25 percent in 2019, supported by supply curbs by the Organization of the Petroleum Exporting Countries plus allies, and involuntary losses due to U.S. sanctions on Iran and Venezuela.
Brent was up 50 cents at $67.71 a barrel at 1003 GMT, not far from its 2019 high of $68.69 reached on March 21. U.S. crude added 72 cents at $59.54.
Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East | Reuters
Uber buys rival Careem in $3.1 billion deal to dominate ride-hailing in Middle East | Reuters:
Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp more than a year ago.
Global ride-hailing firm Uber Technologies Inc will spend $3.1 billion to acquire Middle East rival Careem, buying dominance in a competitive region ahead of a hotly anticipated initial public offering.
Uber said late Monday night it would pay $1.4 billion in cash and $1.7 billion in convertible notes in a deal that gives it full ownership of Careem. The long-expected agreement ends more than nine months of start-and-stop negotiations between the two companies and hands Uber a much-needed victory after a series of overseas divestments.
The notes will be convertible into Uber shares at a price equal to $55 apiece, Uber said, marking about a nearly 13 percent increase over Uber’s share price in its last financing round, led by SoftBank Group Corp more than a year ago.
#Saudi Aramco building global gas business to cut carbon footprint | Reuters
Saudi Aramco building global gas business to cut carbon footprint | Reuters:
Saudi Aramco, the world’s biggest oil producer, was building an international gas business and converting more crude oil into chemicals in a bid to lessen its carbon footprint, Chief Executive Amin Nasser said on Tuesday.
Aramco is building “an energy bridge” between Saudi Arabia and China to meet the Asian energy consumer’s increasing need for oil and gas as well as for chemicals and liquefied natural gas (LNG), according to a copy of Nasser’s speech at an industry event in Beijing.
“We need to help our stakeholders - including here in China and the wider Asia region - realize that oil and gas will remain vital to world energy for decades to come,” he said.
Saudi Aramco, the world’s biggest oil producer, was building an international gas business and converting more crude oil into chemicals in a bid to lessen its carbon footprint, Chief Executive Amin Nasser said on Tuesday.
Aramco is building “an energy bridge” between Saudi Arabia and China to meet the Asian energy consumer’s increasing need for oil and gas as well as for chemicals and liquefied natural gas (LNG), according to a copy of Nasser’s speech at an industry event in Beijing.
“We need to help our stakeholders - including here in China and the wider Asia region - realize that oil and gas will remain vital to world energy for decades to come,” he said.
UPDATE 1- #SaudiArabia extends domestic debt curve with new sukuk issue | Reuters
UPDATE 1-Saudi Arabia extends domestic debt curve with new sukuk issue | Reuters:
Saudi Arabia sold around $1.6 billion in local currency debt with maturities of 10 and 15 years, the longest-dated public debt ever issued domestically by the kingdom.
Saudi Arabia began offering local currency bonds in monthly auctions in mid-2015 to help cover a huge budget deficit caused by low oil prices.
It suspended those issues in late 2016 as banks struggled to absorb so much debt and Riyadh began to borrow overseas, but launched monthly sukuk issues in mid-2017.
Saudi Arabia sold around $1.6 billion in local currency debt with maturities of 10 and 15 years, the longest-dated public debt ever issued domestically by the kingdom.
Saudi Arabia began offering local currency bonds in monthly auctions in mid-2015 to help cover a huge budget deficit caused by low oil prices.
It suspended those issues in late 2016 as banks struggled to absorb so much debt and Riyadh began to borrow overseas, but launched monthly sukuk issues in mid-2017.
MIDEAST STOCKS-Financials hurt #Qatar, most Gulf markets muted | Reuters
MIDEAST STOCKS-Financials hurt Qatar, most Gulf markets muted | Reuters:
Qatar’s stock market slipped on Tuesday as its blue-chip shares faltered. Most major Gulf markets dipped in subdued trading.
Qatar’s index fell 0.2 percent, led by a 1.5 percent decline in Qatar National Bank, the largest bank by assets in the Middle East and Africa, and a 3.4 percent drop in Qatar Fuel.
Qatari Islamic lender Masraf Al Rayan was down 0.4 percent. It has hired banks before a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, Reuters reported.
Qatar’s stock market slipped on Tuesday as its blue-chip shares faltered. Most major Gulf markets dipped in subdued trading.
Qatar’s index fell 0.2 percent, led by a 1.5 percent decline in Qatar National Bank, the largest bank by assets in the Middle East and Africa, and a 3.4 percent drop in Qatar Fuel.
Qatari Islamic lender Masraf Al Rayan was down 0.4 percent. It has hired banks before a potential sale of U.S. dollar-denominated sukuk, or Islamic bonds, Reuters reported.
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