Dubai's Long-Awaited Stats Showed Weakest Economy Since 2010 - Bloomberg:
Investors got their first chance in months to size up how Dubai’s economy has fared during a downturn in its bellwether property sector as much-delayed data indicated growth last year was the slowest since 2010.
Figures released by the emirate’s statistics center website late on Tuesday showed gross domestic product expanded 1.9 percent in 2018, down from 3.1 percent the previous year. Finance, mining and manufacturing were among the worst-performing industries. No quarterly GDP figures are available for last year.
“The weakening in economic activity was already being seen in a number of proxy indicators,” said Monica Malik, chief economist at Abu Dhabi Commercial Bank. “Looking forward to 2019, we believe that the key headwinds to Dubai’s economy will likely come from oversupply of infrastructure and the external backdrop.”
Wednesday 27 March 2019
Oil prices sink after surprise U.S. crude stock build | Reuters
Oil prices sink after surprise U.S. crude stock build | Reuters:
Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said.
Oil prices slumped on Wednesday after government data showed U.S. crude inventories grew more than expected last week as a Texas chemical spill hampered exports.
Brent crude futures settled at $67.83 a barrel, down 14 cents or 0.2 percent. U.S. crude futures settled at $59.41 a barrel, falling 53 cents or 0.9 percent.
U.S. crude inventories rose last week by 2.8 million barrels, compared with analysts’ expectations for a decrease of 1.2 million barrels, the U.S. Energy Information Administration said.
Germany takes steps to spur more investment in LNG terminals | Reuters
Germany takes steps to spur more investment in LNG terminals | Reuters:
Germany’s cabinet on Wednesday approved a plan that will make it easier for LNG project companies to invest in new LNG terminals as part of efforts to diversify the country’s sources of gas.
Under the legislation, LNG companies will only pay a 10 percent share of the connection costs for LNG, giving them more scope to invest in LNG projects. At the moment, pipeline companies have to put up the initial cost of the pipelines and then recoup this over the long term via network usage fees that are part of customers gas bills.
“It is important for the supply security of gas in Germany to be able to use as many supply routes and sources as possible,” economy minister Peter Altmaier said in a statement.
Germany’s cabinet on Wednesday approved a plan that will make it easier for LNG project companies to invest in new LNG terminals as part of efforts to diversify the country’s sources of gas.
Under the legislation, LNG companies will only pay a 10 percent share of the connection costs for LNG, giving them more scope to invest in LNG projects. At the moment, pipeline companies have to put up the initial cost of the pipelines and then recoup this over the long term via network usage fees that are part of customers gas bills.
“It is important for the supply security of gas in Germany to be able to use as many supply routes and sources as possible,” economy minister Peter Altmaier said in a statement.
Saudi Aramco to buy SABIC in $69 billion chemicals megadeal | Reuters
Saudi Aramco to buy SABIC in $69 billion chemicals megadeal | Reuters:
The world’s largest oil producer Saudi Aramco has agreed to buy a 70 percent stake in Saudi Basic Industries Corp (SABIC) from the kingdom’s wealth fund for $69.1 billion in one of the biggest deals in the global chemical industry.
The agreement to help boost Aramco’s downstream growth plans comes after months of talks between Aramco and the Public Investment Fund (PIF), which contributed to the delay of Aramco’s planned multi-billion dollar initial public offering.
“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities,” said Yasir al-Rumayyan, managing director of the PIF.
The world’s largest oil producer Saudi Aramco has agreed to buy a 70 percent stake in Saudi Basic Industries Corp (SABIC) from the kingdom’s wealth fund for $69.1 billion in one of the biggest deals in the global chemical industry.
The agreement to help boost Aramco’s downstream growth plans comes after months of talks between Aramco and the Public Investment Fund (PIF), which contributed to the delay of Aramco’s planned multi-billion dollar initial public offering.
“This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities,” said Yasir al-Rumayyan, managing director of the PIF.
MIDEAST STOCKS-Blue-chips lift #Qatar, Banks boost #Saudi | Reuters
MIDEAST STOCKS-Blue-chips lift Qatar, Banks boost Saudi | Reuters:
Qatar's stock market rose on Wednesday, lifted by shareholder approval for an increase in foreign ownership limits at Qatar Fuel and Mesaieed Petrochemical, while Saudi Arabia rose on the back of its banks.
The Qatar index rose 1.7 percent, with 18 of 20 stocks increasing. Qatar Fuel added 4.2 percent and Mesaieed Petrochemical was up 5.8 percent.
Last year, their parent company, state-owned energy firm, Qatar Petroleum said it would raise the foreign ownership limit in its listed-units to up to 49 percent after limits on foreign ownership were amended.
Qatar's stock market rose on Wednesday, lifted by shareholder approval for an increase in foreign ownership limits at Qatar Fuel and Mesaieed Petrochemical, while Saudi Arabia rose on the back of its banks.
The Qatar index rose 1.7 percent, with 18 of 20 stocks increasing. Qatar Fuel added 4.2 percent and Mesaieed Petrochemical was up 5.8 percent.
Last year, their parent company, state-owned energy firm, Qatar Petroleum said it would raise the foreign ownership limit in its listed-units to up to 49 percent after limits on foreign ownership were amended.
#Dubai tenants drive down rents | Financial Times
Dubai tenants drive down rents | Financial Times:
Dubai’s expat community has been bargaining hard for rent discounts. According to research by JLL, in the last quarter of 2018, average rental prices for apartments were 11 per cent lower while rents for detached homes were down 8 per cent from the same period in 2017.
“Typically, colleagues and friends are getting close to 15 per cent off when they renew their rental contracts,” says Jason (not his real name), 61, a corporate writer for one of the Big Four accounting firms who arrived with his wife from Paris a year and a half ago.
The fall in demand owes much to Dubai’s faltering economy, thanks to regional tensions and the slide in oil prices since 2015, leading to job lay-offs in many sectors. In its March Dubai Economy Tracker, Emirates NBD, a local bank, reported that employment was falling faster than at any time since the survey began in 2010. Jason noticed the lay-offs soon after he arrived, he says, with cuts focused in property sectors and among large international companies that use Dubai as a regional base.
Dubai’s expat community has been bargaining hard for rent discounts. According to research by JLL, in the last quarter of 2018, average rental prices for apartments were 11 per cent lower while rents for detached homes were down 8 per cent from the same period in 2017.
“Typically, colleagues and friends are getting close to 15 per cent off when they renew their rental contracts,” says Jason (not his real name), 61, a corporate writer for one of the Big Four accounting firms who arrived with his wife from Paris a year and a half ago.
The fall in demand owes much to Dubai’s faltering economy, thanks to regional tensions and the slide in oil prices since 2015, leading to job lay-offs in many sectors. In its March Dubai Economy Tracker, Emirates NBD, a local bank, reported that employment was falling faster than at any time since the survey began in 2010. Jason noticed the lay-offs soon after he arrived, he says, with cuts focused in property sectors and among large international companies that use Dubai as a regional base.
Uber Adds #Saudi Investors as Pharo, Branson Shun Kingdom's Cash - Bloomberg
Uber Adds Saudi Investors as Pharo, Branson Shun Kingdom's Cash - Bloomberg:
As global investors reevaluate their relationships with Saudi Arabia after the killing of columnist Jamal Khashoggi, Uber Technologies Inc. just ended up with more shareholders from the kingdom.
The U.S. ride-hailing company will add Prince Alwaleed bin Talal Al Saud’s Kingdom Holding Co., Al Tayyar Travel Group Holding Co. and Saudi Telecom Co. to its shareholder base once it completes the acquisition of Dubai-based rival Careem Networks FZ.
As part of the $3.1 billion deal, existing Careem shareholders will receive notes that can be converted into Uber stock once the company completes its initial public offering expected in April. Saudi Arabia’s Public Investment Fund is already one of Uber’s biggest backers after pumping in $3.5 billion in 2016.
As global investors reevaluate their relationships with Saudi Arabia after the killing of columnist Jamal Khashoggi, Uber Technologies Inc. just ended up with more shareholders from the kingdom.
The U.S. ride-hailing company will add Prince Alwaleed bin Talal Al Saud’s Kingdom Holding Co., Al Tayyar Travel Group Holding Co. and Saudi Telecom Co. to its shareholder base once it completes the acquisition of Dubai-based rival Careem Networks FZ.
As part of the $3.1 billion deal, existing Careem shareholders will receive notes that can be converted into Uber stock once the company completes its initial public offering expected in April. Saudi Arabia’s Public Investment Fund is already one of Uber’s biggest backers after pumping in $3.5 billion in 2016.
#Dubai economy grew 1.94% in 2018 - government says | ZAWYA MENA Edition
Dubai economy grew 1.94% in 2018 - government says | ZAWYA MENA Edition:
Dubai's economy grew 1.94 percent in 2018, the government said on Wednesday, a slowdown from a growth rate of 2.8 percent in 2017.
GDP growth was largely driven by the performance of trade related activities, which grew by 1.3 percent in 2018 from a year earlier, representing 18.1 percent of the total growth achieved last year, the government said in a statement.
Dubai's economy grew 1.94 percent in 2018, the government said on Wednesday, a slowdown from a growth rate of 2.8 percent in 2017.
GDP growth was largely driven by the performance of trade related activities, which grew by 1.3 percent in 2018 from a year earlier, representing 18.1 percent of the total growth achieved last year, the government said in a statement.
Mideast Stocks: Blue-chip banks lift #Qatar, most major Gulf markets up | ZAWYA MENA Edition
Mideast Stocks: Blue-chip banks lift Qatar, most major Gulf markets up | ZAWYA MENA Edition:
Qatar's stock market rose on Wednesday, aided by its blue-chip bank shares, while the Dubai index recouped some losses as all its property firms gained.
The Qatar index added 1 percent as market heavyweight Industries Qatar rose 1.3 percent and Qatar National Bank , the largest bank by assets in the Middle East and Africa, increased 1 percent.
Qatar International Islamic Bank rose 0.9 percent. On Monday, the lender's shareholders approved an increase in its foreign ownership limit to 49 percent from 25 percent.
Qatar's stock market rose on Wednesday, aided by its blue-chip bank shares, while the Dubai index recouped some losses as all its property firms gained.
The Qatar index added 1 percent as market heavyweight Industries Qatar rose 1.3 percent and Qatar National Bank , the largest bank by assets in the Middle East and Africa, increased 1 percent.
Qatar International Islamic Bank rose 0.9 percent. On Monday, the lender's shareholders approved an increase in its foreign ownership limit to 49 percent from 25 percent.
Wednesday outlook: Oil prices edge higher on tightening supplies | ZAWYA MENA Edition
Wednesday outlook: Oil prices edge higher on tightening supplies | ZAWYA MENA Edition:
Oil prices rose again on Wednesday on tightening supplies, however future demand concerns kept the gains in check.
OPEC issued a list of oil production cuts by its members and other major producers for six months starting January 1, to boost confidence in its oil supply reduction pact.
Oil prices have also been boosted by lower supply from Venezuela, as the U.S. introduced petroleum export sanctions against state-owned Venezuelan energy firm PDVSA.
Brent was up by 17 cents, or 0.3 percent, at $68.14 by 0311 GMT. U.S. crude futures added 9 cents, or 0.2 percent.
Oil prices rose again on Wednesday on tightening supplies, however future demand concerns kept the gains in check.
OPEC issued a list of oil production cuts by its members and other major producers for six months starting January 1, to boost confidence in its oil supply reduction pact.
Oil prices have also been boosted by lower supply from Venezuela, as the U.S. introduced petroleum export sanctions against state-owned Venezuelan energy firm PDVSA.
Brent was up by 17 cents, or 0.3 percent, at $68.14 by 0311 GMT. U.S. crude futures added 9 cents, or 0.2 percent.
#Qatar's Nebras Said to Mull More Than $1 Billion Indonesian Sale - Bloomberg
Qatar's Nebras Said to Mull More Than $1 Billion Indonesian Sale - Bloomberg:
Qatari energy investment firm Nebras Power QSC is considering selling its stake in PT Paiton Energy, one of Indonesia’s largest independently owned power producers, according to people familiar with the matter.
Nebras’s 35.5 percent holding in Paiton could be valued at more than $1 billion, the people said, asking not to be identified as the matter is private. Nebras has held initial talks with potential financial advisers, but hasn’t started a formal sale process, the people said.
Qatar, one of the world’s biggest liquefied natural gas producers, set up Doha-based Nebras in 2014 to help build a portfolio of global power assets. The company is controlled by Qatar Electricity & Water Co. and the state sovereign wealth fund. Nebras acquired its stake in Paiton from French utility Engie SA in 2016.
Qatari energy investment firm Nebras Power QSC is considering selling its stake in PT Paiton Energy, one of Indonesia’s largest independently owned power producers, according to people familiar with the matter.
Nebras’s 35.5 percent holding in Paiton could be valued at more than $1 billion, the people said, asking not to be identified as the matter is private. Nebras has held initial talks with potential financial advisers, but hasn’t started a formal sale process, the people said.
Qatar, one of the world’s biggest liquefied natural gas producers, set up Doha-based Nebras in 2014 to help build a portfolio of global power assets. The company is controlled by Qatar Electricity & Water Co. and the state sovereign wealth fund. Nebras acquired its stake in Paiton from French utility Engie SA in 2016.
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