Middle East executives have ‘potential blind spot’ over climate change risk:
Regional business leaders run the risk of underestimating the threat of climate change, a World Economic Forum report has warned.
A new analysis of regional risks found that economic and governance issues rank most highly as topics of concern among executives in the Middle East and North Africa.
But environmental factors are “not top of mind,” despite being a real risk, the World Economic Forum (WEF) report found.
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Thursday 4 April 2019
#Saudi investment firm buys Australian farmland, sheep
Saudi investment firm buys Australian farmland, sheep:
Saudi Agricultural and Livestock Investment Company (SALIC), an arm of Saudi Arabia’s state-owned Public Investment Fund, said on Thursday it has made its first acquisition in Australia.
SALIC did not give a figure for the purchase of Baladjie Pty Ltd, an aggregation of over 200,000 hectares (494,200 acres) of farmland in Western Australia’s wheatbelt that also carries 40,000 head of Merino sheep.
“It is our first acquisition in Australia as well as our first investment in sheep production,” Matthew Jansen, SALIC CEO said in a statement.
Saudi Agricultural and Livestock Investment Company (SALIC), an arm of Saudi Arabia’s state-owned Public Investment Fund, said on Thursday it has made its first acquisition in Australia.
SALIC did not give a figure for the purchase of Baladjie Pty Ltd, an aggregation of over 200,000 hectares (494,200 acres) of farmland in Western Australia’s wheatbelt that also carries 40,000 head of Merino sheep.
“It is our first acquisition in Australia as well as our first investment in sheep production,” Matthew Jansen, SALIC CEO said in a statement.
QFC records strongest rise in new businesses since August 2018 - The Peninsula Qatar
QFC records strongest rise in new businesses since August 2018 - The Peninsula Qatar:
Qatar Financial Centre’s (QFC) latest Purchasing Managers’ Index (PMI) survey of Qatari non-hydrocarbon private sector businesses highlighted a marked increase in the volume of new business. The rate of expansion was the fastest since August 2018, and sharper than the trend pace indicated since the survey began in April 2017. The latest findings also show output expectations were the second-strongest on record; with the fastest input price inflation in a year.
Sheikha Alanoud bint Hamad Al-Thani, Managing Director of Business Development at QFC Authority, said, “Intakes of new business boosted Qatar’s non-hydrocarbon private sector in March, with this indicator from the PMI survey at a seven-month high. Moreover, the month-on-month rise in the new business index, at 4.5 points, was the second-largest in nearly a year-and-a-half. This improvement in demand influenced companies’ expectations for total workloads, with the Future Activity Index rising to the second-highest level since the survey began in April 2017. Over the first quarter of 2019 Qatar’s PMI has trended higher compared with the final quarter of 2018; a period during which the global economy saw the softest expansion i
Qatar Financial Centre’s (QFC) latest Purchasing Managers’ Index (PMI) survey of Qatari non-hydrocarbon private sector businesses highlighted a marked increase in the volume of new business. The rate of expansion was the fastest since August 2018, and sharper than the trend pace indicated since the survey began in April 2017. The latest findings also show output expectations were the second-strongest on record; with the fastest input price inflation in a year.
Sheikha Alanoud bint Hamad Al-Thani, Managing Director of Business Development at QFC Authority, said, “Intakes of new business boosted Qatar’s non-hydrocarbon private sector in March, with this indicator from the PMI survey at a seven-month high. Moreover, the month-on-month rise in the new business index, at 4.5 points, was the second-largest in nearly a year-and-a-half. This improvement in demand influenced companies’ expectations for total workloads, with the Future Activity Index rising to the second-highest level since the survey began in April 2017. Over the first quarter of 2019 Qatar’s PMI has trended higher compared with the final quarter of 2018; a period during which the global economy saw the softest expansion i
#Qatar shares edge up on local funds’ buying interests
Qatar shares edge up on local funds’ buying interests:
Domestic funds’ increased buying interests on Thursday led the Qatar Stock Exchange to gain 28 points to inch near the 10,200 level.
The insurance, transport, consumer goods and real estate counters witnessed higher than average demand, which led the 20-stock Qatar Index to gain 0.28% to 10,189.56 points.
Foreign institutions were seen marginally bullish in the market, whose sensitive index is down 1.06% year-to-date.
Domestic funds’ increased buying interests on Thursday led the Qatar Stock Exchange to gain 28 points to inch near the 10,200 level.
The insurance, transport, consumer goods and real estate counters witnessed higher than average demand, which led the 20-stock Qatar Index to gain 0.28% to 10,189.56 points.
Foreign institutions were seen marginally bullish in the market, whose sensitive index is down 1.06% year-to-date.
Brent oil briefly touches $70 per barrel on tight supply | Reuters
Brent oil briefly touches $70 per barrel on tight supply | Reuters:
Brent oil prices rose on Thursday, briefly touching $70 a barrel for the first time since November as expectations of tight global supply outweighed pressure from rising U.S. production and less robust global demand indicators.
International benchmark Brent futures settled up 9 cents at $69.40. Brent touched a session high of $70.03, the highest since Nov. 12 when it last traded above $70.
U.S. West Texas Intermediate (WTI) crude fell 36 cents a barrel to settle at $62.10. The contract hit $62.99 on Wednesday, its highest since November.
Brent oil prices rose on Thursday, briefly touching $70 a barrel for the first time since November as expectations of tight global supply outweighed pressure from rising U.S. production and less robust global demand indicators.
International benchmark Brent futures settled up 9 cents at $69.40. Brent touched a session high of $70.03, the highest since Nov. 12 when it last traded above $70.
U.S. West Texas Intermediate (WTI) crude fell 36 cents a barrel to settle at $62.10. The contract hit $62.99 on Wednesday, its highest since November.
Wall Street Heads Back to #SaudiArabia – Bloomberg
Wall Street Heads Back to Saudi Arabia – Bloomberg:
Bloomberg’s Peggy Collins discusses financial institutions heading back to Saudi Arabia after protest over a journalist being killed. She speaks with Bloomberg's Alix Steel and David Westin on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Bloomberg’s Peggy Collins discusses financial institutions heading back to Saudi Arabia after protest over a journalist being killed. She speaks with Bloomberg's Alix Steel and David Westin on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Mobius Says Don’t Buy #Dubai Property Before ‘Real Slump’ - Bloomberg
Mobius Says Don’t Buy Dubai Property Before ‘Real Slump’ - Bloomberg:
Three years ago, Mark Mobius saw his luxury apartments in Dubai go up in flames. While the suites have by now been restored to their old splendor, the investor has something else to worry about: the frenzy of construction that’s adding to the existing glut in real estate.
The downturn “will get much worse from here,” said Mobius, a pioneer in emerging-market investing, adding he’d hold off on buying more property. “I would probably want to wait until there’s a real slump when all this new building comes in and people are really hurting.”
Prices and rents have already dropped by as much as a third in the past five years during what S&P Global Ratings has called the property market’s “long decline.” The slump will run for another 12 to 18 months because government measures to stimulate the economy -- including granting long-term visas which benefit the affluent and people with specialized expertise -- won’t be enough to revive demand, said Lahlou Meksaoui, a Dubai-based analyst at Moody’s Investors Service.
Three years ago, Mark Mobius saw his luxury apartments in Dubai go up in flames. While the suites have by now been restored to their old splendor, the investor has something else to worry about: the frenzy of construction that’s adding to the existing glut in real estate.
The downturn “will get much worse from here,” said Mobius, a pioneer in emerging-market investing, adding he’d hold off on buying more property. “I would probably want to wait until there’s a real slump when all this new building comes in and people are really hurting.”
Prices and rents have already dropped by as much as a third in the past five years during what S&P Global Ratings has called the property market’s “long decline.” The slump will run for another 12 to 18 months because government measures to stimulate the economy -- including granting long-term visas which benefit the affluent and people with specialized expertise -- won’t be enough to revive demand, said Lahlou Meksaoui, a Dubai-based analyst at Moody’s Investors Service.
Even $10 Billion Aramco Megabond Can't Fix Gulf-Debt Hunger - Bloomberg
Even $10 Billion Aramco Megabond Can't Fix Gulf-Debt Hunger - Bloomberg:
A $10 billion corporate-bond offering might be hard for investors to digest in some emerging markets. Not so in the Gulf, and not when the notes are being sold by the most profitable company on the planet.
“The appetite for ultra-high investment grade, particularly from the Gulf Cooperation Council where spreads are still wide relative to developed markets, is very strong,” said Patrick Wacker, fund manager for emerging-markets fixed income at UOB Asset Management Ltd. in Singapore. “If Ecuador or Indonesia came with these sizes, that would cause indigestion.”
Though a contender for the highest rating from Moody’s Investors Service, Aramco’s state-owned status means it shares Saudi Arabia’s A1 sovereign credit score, which is five steps below the top grade. The yield on the nation’s 2029 debt is similar to that of lower-ranked Colombia and Panama, which could mean attractive pricing for a company that turned a $111.1 billion profit last year if the bonds are, as expected, placed at a small premium to the sovereign.
A $10 billion corporate-bond offering might be hard for investors to digest in some emerging markets. Not so in the Gulf, and not when the notes are being sold by the most profitable company on the planet.
“The appetite for ultra-high investment grade, particularly from the Gulf Cooperation Council where spreads are still wide relative to developed markets, is very strong,” said Patrick Wacker, fund manager for emerging-markets fixed income at UOB Asset Management Ltd. in Singapore. “If Ecuador or Indonesia came with these sizes, that would cause indigestion.”
Though a contender for the highest rating from Moody’s Investors Service, Aramco’s state-owned status means it shares Saudi Arabia’s A1 sovereign credit score, which is five steps below the top grade. The yield on the nation’s 2029 debt is similar to that of lower-ranked Colombia and Panama, which could mean attractive pricing for a company that turned a $111.1 billion profit last year if the bonds are, as expected, placed at a small premium to the sovereign.
Mideast Stocks: Banks lift #Saudi, #Dubai continues to rally on Emirates NBD deal | ZAWYA MENA Edition
Mideast Stocks: Banks lift Saudi, Dubai continues to rally on Emirates NBD deal | ZAWYA MENA Edition:
Saudi Arabia's stock market marked its ninth session of gains on Thursday, led by banking shares, while Emirates NBD's deal to buy Turkey's Denizbank lifted Dubai's main index.
The Saudi index was up 0.9 percent, led by a 3.1 percent rise in Al Rajhi Bank and a 2.3 percent gain in the largest lender National Commercial bank.
Al Rajhi Bank's shareholders approved an increase in its capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through issuing bonus shares.
Saudi Arabia's stock market marked its ninth session of gains on Thursday, led by banking shares, while Emirates NBD's deal to buy Turkey's Denizbank lifted Dubai's main index.
The Saudi index was up 0.9 percent, led by a 3.1 percent rise in Al Rajhi Bank and a 2.3 percent gain in the largest lender National Commercial bank.
Al Rajhi Bank's shareholders approved an increase in its capital to 25 billion riyals ($6.7 billion) from 16.25 billion riyals through issuing bonus shares.
Aramco treads carefully on #Saudi ties as it markets debut bond | Reuters
Aramco treads carefully on Saudi ties as it markets debut bond | Reuters:
For Saudi Aramco and its advisers, a debut international debt issue that could raise well over $10 billion presents a key challenge - how to forge an identity as a state-owned major while in the same league as the likes of Exxon Mobil and Shell.
At stake is the likely multi-million dollar difference in interest payments over coming years between its standing as an independent international corporate and one tied closely to the host kingdom whose oil it ships to global markets.
Having said in January it was planning its first ever international debt issue, Aramco has been meeting with investors in Asia, Europe and the United States to promote the bonds. It hasn’t commented on what was said during the sessions.
For Saudi Aramco and its advisers, a debut international debt issue that could raise well over $10 billion presents a key challenge - how to forge an identity as a state-owned major while in the same league as the likes of Exxon Mobil and Shell.
At stake is the likely multi-million dollar difference in interest payments over coming years between its standing as an independent international corporate and one tied closely to the host kingdom whose oil it ships to global markets.
Having said in January it was planning its first ever international debt issue, Aramco has been meeting with investors in Asia, Europe and the United States to promote the bonds. It hasn’t commented on what was said during the sessions.
#Saudi plans to invite bids for nuclear power project in 2020: sources | Reuters
Saudi plans to invite bids for nuclear power project in 2020: sources | Reuters:
Saudi Arabia plans to issue a multi-billion-dollar tender in 2020 to construct its first two nuclear power reactors and is discussing the project with U.S. and other potential suppliers, three sources familiar with the plans said.
The world’s top oil exporter wants to diversify its energy mix, adding nuclear power so it can free up more crude for export. But the plans are facing Washington’s scrutiny because of potential military uses for the technology.
Saudi Arabia, which aims to mine for uranium, says its plans are peaceful. But Crown Prince Mohammed bin Salman said in 2018 the kingdom would develop nuclear arms if Iran did.
Saudi Arabia plans to issue a multi-billion-dollar tender in 2020 to construct its first two nuclear power reactors and is discussing the project with U.S. and other potential suppliers, three sources familiar with the plans said.
The world’s top oil exporter wants to diversify its energy mix, adding nuclear power so it can free up more crude for export. But the plans are facing Washington’s scrutiny because of potential military uses for the technology.
Saudi Arabia, which aims to mine for uranium, says its plans are peaceful. But Crown Prince Mohammed bin Salman said in 2018 the kingdom would develop nuclear arms if Iran did.
As Expats Leave #SaudiArabia, No One Is Replacing Them: Chart - Bloomberg
As Expats Leave Saudi Arabia, No One Is Replacing Them: Chart - Bloomberg:
Saudi Arabia’s push to replace expat workers with nationals doesn’t seem to be working. Nearly 1.5 million expatriate jobs have gone since the end of 2016, squeezed out by an economic slowdown and policies encouraging companies to hire locals as the government weans the economy away from its reliance on oil and cheap foreign labor. Over the same period, however, the number of Saudis employed outside the security and military sector grew by less than 50,000, according to the General Authority for Statistics.
Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Sign up here.
Saudi Arabia’s push to replace expat workers with nationals doesn’t seem to be working. Nearly 1.5 million expatriate jobs have gone since the end of 2016, squeezed out by an economic slowdown and policies encouraging companies to hire locals as the government weans the economy away from its reliance on oil and cheap foreign labor. Over the same period, however, the number of Saudis employed outside the security and military sector grew by less than 50,000, according to the General Authority for Statistics.
Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Sign up here.
Mideast Stocks: #Dubai continues to gain from Emirates NBD's $2.8bln deal | ZAWYA MENA Edition
Mideast Stocks: Dubai continues to gain from Emirates NBD's $2.8bln deal | ZAWYA MENA Edition:
Dubai's stock market rose for the sixth straight session on Thursday as top lender Emirates NBD extended gains after it announced a deal to buy Turkey's Denizbank, while most major Gulf markets inched up.
The Dubai index increased 0.6 percent, with Emirates NBD adding 4 percent in active trade.
On Wednesday, the bank said it will buy Denizbank for 15.48 billion lira ($2.75 billion) from Russia's state-owned Sberbank. The offer is a roughly 20 percent discount to a previously agreed price after a steep fall in the Turkish lira.
Dubai's stock market rose for the sixth straight session on Thursday as top lender Emirates NBD extended gains after it announced a deal to buy Turkey's Denizbank, while most major Gulf markets inched up.
The Dubai index increased 0.6 percent, with Emirates NBD adding 4 percent in active trade.
On Wednesday, the bank said it will buy Denizbank for 15.48 billion lira ($2.75 billion) from Russia's state-owned Sberbank. The offer is a roughly 20 percent discount to a previously agreed price after a steep fall in the Turkish lira.
Why the bond market is so keen to back #Saudi Aramco | Financial Times
Why the bond market is so keen to back Saudi Aramco | Financial Times:
It is not every day that a company asks to borrow money while at the same time explicitly stating that it has absolutely no need for it.
Then again, it is not every day that the most profitable company in the world emerges from a shroud of secrecy, to tap international bond markets for the first time.
Saudi Aramco’s debut bond sale is just days away, prompting the jewel in the crown of the desert kingdom to open its books and reveal some staggering numbers. The Saudi Arabian oil company booked $111bn of net income in 2018, more than that of Apple and Alphabet combined.
It is not every day that a company asks to borrow money while at the same time explicitly stating that it has absolutely no need for it.
Then again, it is not every day that the most profitable company in the world emerges from a shroud of secrecy, to tap international bond markets for the first time.
Saudi Aramco’s debut bond sale is just days away, prompting the jewel in the crown of the desert kingdom to open its books and reveal some staggering numbers. The Saudi Arabian oil company booked $111bn of net income in 2018, more than that of Apple and Alphabet combined.
First #AbuDhabi Bank, Abu Dhabi Islamic Bank deny merger talks | ZAWYA MENA Edition
First Abu Dhabi Bank, Abu Dhabi Islamic Bank deny merger talks | ZAWYA MENA Edition:
Abu Dhabi Islamic Bank and First Abu Dhabi Bank denied on Thursday they were in merger talks after a news report said the emirate was considering combining them.
Citing unnamed sources, Bloomberg reported on Wednesday that Abu Dhabi was considering merging the two lenders to create the Gulf region’s largest lender. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, in a bourse filing said it "strongly denies the report issued by Bloomberg on the potential merger".
"FAB currently has not entered discussions with ADIB to pursue any merger activity," it said.
Abu Dhabi Islamic Bank and First Abu Dhabi Bank denied on Thursday they were in merger talks after a news report said the emirate was considering combining them.
Citing unnamed sources, Bloomberg reported on Wednesday that Abu Dhabi was considering merging the two lenders to create the Gulf region’s largest lender. First Abu Dhabi Bank, the largest lender in the United Arab Emirates, in a bourse filing said it "strongly denies the report issued by Bloomberg on the potential merger".
"FAB currently has not entered discussions with ADIB to pursue any merger activity," it said.
Monthly markets review: Stocks in #Kuwait and #SaudiArabia outperform in a dull market phase | ZAWYA MENA Edition
Monthly markets review: Stocks in Kuwait and Saudi Arabia outperform in a dull market phase | ZAWYA MENA Edition:
Investors in the Middle East were mostly cautious during the month of March, reflecting the calmness in global markets following a rally at the beginning of the year.
Trade talks between the United States and China were the main focus for investors, as positive or negative news on the progress in talks remains as the main factor moving global markets.
The MSCI World index rose 1.05 percent in March, data from Eikon showed, while Brent oil prices gained 3.57 percent. The oil price strength reflected in improvements in Saudi Arabia and Kuwait’s stock markets, leading to overall growth in MSCI’s GCC index of 2.73 percent.
Investors in the Middle East were mostly cautious during the month of March, reflecting the calmness in global markets following a rally at the beginning of the year.
Trade talks between the United States and China were the main focus for investors, as positive or negative news on the progress in talks remains as the main factor moving global markets.
The MSCI World index rose 1.05 percent in March, data from Eikon showed, while Brent oil prices gained 3.57 percent. The oil price strength reflected in improvements in Saudi Arabia and Kuwait’s stock markets, leading to overall growth in MSCI’s GCC index of 2.73 percent.