‘The Saudi 4.0 Industrial Revolution’ | Arab News:
There is no doubting the enthusiasm of government and private sector business in Saudi Arabia to progress to the next phase of the economic and industrial transformation. But there is some confusion, even hesitancy, about the pace of change and the appropriate vehicles to get to the final destination.
This was the message that came across loud and clear from the inaugural Saudi Arabia Energy Forum, held in the King Abdullah Petroleum Studies and Research Center (KAPSARC) in Riyadh on Sunday.
The event’s organizers came up with the snappy title “The Saudi 4.0 Industrial Revolution.” That just about summed up the essence of the gathering. It was about the space where the Vision 2030 diversification strategy meets the Fourth Industrial Revolution beloved of the World Economic Forum. It is fertile ground for debate, discussion and some disagreement.
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Monday 8 April 2019
QSE surpasses 10,200 level with ease as Ezdan jumps
QSE surpasses 10,200 level with ease as Ezdan jumps:
Ezdan, which is looking to nullify its earlier proposal to delist, saw its stocks make huge gains on Monday, thus helping the Qatar Stock Exchange surpass the 10,200 level with ease.
Foreign institutions’ increased buying support led the 20-stock Qatar Index to settle 0.34% higher at 10,226.68 points.
The increased buying support from non-Qatari and Gulf individuals also helped the market, whose sensitive index is down 0.7% year-to-date.
Ezdan, which is looking to nullify its earlier proposal to delist, saw its stocks make huge gains on Monday, thus helping the Qatar Stock Exchange surpass the 10,200 level with ease.
Foreign institutions’ increased buying support led the 20-stock Qatar Index to settle 0.34% higher at 10,226.68 points.
The increased buying support from non-Qatari and Gulf individuals also helped the market, whose sensitive index is down 0.7% year-to-date.
OPEC+ Learns From the Past as New Oil Cutbacks Hit the Mark - Bloomberg
OPEC+ Learns From the Past as New Oil Cutbacks Hit the Mark - Bloomberg:
If there’s one conclusion to be drawn from oil’s return to $70 a barrel, it’s that OPEC has learned from its mistakes.
Crude’s rally to a four-month high has largely been driven by production cuts by the Organization of Petroleum Exporting Countries and its partners, a coalition that pumps about half of the world’s oil. It’s a strategy they previously deployed in 2017 -- but whereas that effort initially struggled, this time the impact has been almost immediate.
The alliance’s greater success reflects how its de-facto leader, Saudi Arabia, has learned from errors made two years ago. The kingdom has honed its implementation -- making the cutbacks more proactive, deeper, and focusing them specifically on the market that matters most.
If there’s one conclusion to be drawn from oil’s return to $70 a barrel, it’s that OPEC has learned from its mistakes.
Crude’s rally to a four-month high has largely been driven by production cuts by the Organization of Petroleum Exporting Countries and its partners, a coalition that pumps about half of the world’s oil. It’s a strategy they previously deployed in 2017 -- but whereas that effort initially struggled, this time the impact has been almost immediate.
The alliance’s greater success reflects how its de-facto leader, Saudi Arabia, has learned from errors made two years ago. The kingdom has honed its implementation -- making the cutbacks more proactive, deeper, and focusing them specifically on the market that matters most.
Oil Climbs as Weak Dollar, Libya Crisis Draw Investors to Rally - Bloomberg
Oil Climbs as Weak Dollar, Libya Crisis Draw Investors to Rally - Bloomberg:
Oil spiked to its highest level in five months as a drop in the U.S. dollar and conflicts from Iran to Libya helped make the barrel look like an increasingly strong bet for investors.
Crude futures rallied 2.1 percent in New York Monday. The dollar fell, improving the lure of commodities priced in the greenback. Meanwhile, fighter jets bombed the Tripoli airport in Libya and U.S. President Donald Trump said he would designate Iran’s Revolutionary Guard a terrorist group, escalating tensions in two of the world’s biggest producers.
“The expectation that the tightened supply picture is going to boost prices is starting to attract length into the market," said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.
Oil spiked to its highest level in five months as a drop in the U.S. dollar and conflicts from Iran to Libya helped make the barrel look like an increasingly strong bet for investors.
Crude futures rallied 2.1 percent in New York Monday. The dollar fell, improving the lure of commodities priced in the greenback. Meanwhile, fighter jets bombed the Tripoli airport in Libya and U.S. President Donald Trump said he would designate Iran’s Revolutionary Guard a terrorist group, escalating tensions in two of the world’s biggest producers.
“The expectation that the tightened supply picture is going to boost prices is starting to attract length into the market," said Gene McGillian, senior analyst at Tradition Energy in Stamford, Connecticut.
#Saudi Aramco Offers 6-Part Debt, Order Book at $60 Billion - Bloomberg
Saudi Aramco Offers 6-Part Debt, Order Book at $60 Billion - Bloomberg:
Saudi Aramco, the world’s largest oil company, has received $60 billion in orders for its debut bond sale, kickstarting an offering with yields likely to fall in line or below Saudi Arabia’s sovereign debt.
It’s rare for bonds of a state-owned company to yield less than the sovereign debt and the demand reflects intense investor appetite for high-quality paper. For Saudi Arabia and Aramco itself, the early success in selling the bonds marks a tremendous turnaround after investors, Wall Street bankers and corporate titans briefly shunned the kingdom last year following the assassination of journalist Jamal Khashoggi.
The crisis, along with sliding crude prices, hit the kingdom late last year and in early 2019, with the economy slowing down and investors taking money out of the local stock market. Now, the situation appears to be reversing, helped by oil rising to more than $70 a barrel, up from $50 in December.
Saudi Aramco, the world’s largest oil company, has received $60 billion in orders for its debut bond sale, kickstarting an offering with yields likely to fall in line or below Saudi Arabia’s sovereign debt.
It’s rare for bonds of a state-owned company to yield less than the sovereign debt and the demand reflects intense investor appetite for high-quality paper. For Saudi Arabia and Aramco itself, the early success in selling the bonds marks a tremendous turnaround after investors, Wall Street bankers and corporate titans briefly shunned the kingdom last year following the assassination of journalist Jamal Khashoggi.
The crisis, along with sliding crude prices, hit the kingdom late last year and in early 2019, with the economy slowing down and investors taking money out of the local stock market. Now, the situation appears to be reversing, helped by oil rising to more than $70 a barrel, up from $50 in December.
Demand for Aramco's debut bonds at over $50 billion: sources - Reuters
Demand for Aramco's debut bonds at over $50 billion: sources - Reuters:
Saudi Aramco has received over $50 billion in bids for its debut international bond sale, which had been expected to be in the $10 billion region, sources familiar with the matter said.
The state-owned oil giant is marketing a U.S. dollar-denominated debt issue split into six tranches with maturities ranging from three to 30 years.
One of the sources said demand had gone up to $60 billion. That would be the highest order book value since a record issuance by Qatar last year, which attracted around $52 billion in orders.
Saudi Aramco has received over $50 billion in bids for its debut international bond sale, which had been expected to be in the $10 billion region, sources familiar with the matter said.
The state-owned oil giant is marketing a U.S. dollar-denominated debt issue split into six tranches with maturities ranging from three to 30 years.
One of the sources said demand had gone up to $60 billion. That would be the highest order book value since a record issuance by Qatar last year, which attracted around $52 billion in orders.
Invest Bank shareholder meeting could set scene for another #UAE bank merger: sources - Reuters
Invest Bank shareholder meeting could set scene for another UAE bank merger: sources - Reuters:
Shareholders of Invest Bank will meet this week to approve a government bailout of the lender in a move that sources said could set the stage for another bank merger in the United Arab Emirates.
The government of Sharjah, the emirate where Invest Bank is based, stepped in late last year to promise to support the bank after it was hit by high levels of bad loans, partly due to its exposure to the troubled real estate and construction sectors.
Sharjah agreed to invest up to 1.9 billion dirhams ($517 million) in new shares of the struggling lender, one of the smaller banks in the UAE. Investors will finally vote on the plan on April 10, in a meeting originally set in early January.
Shareholders of Invest Bank will meet this week to approve a government bailout of the lender in a move that sources said could set the stage for another bank merger in the United Arab Emirates.
The government of Sharjah, the emirate where Invest Bank is based, stepped in late last year to promise to support the bank after it was hit by high levels of bad loans, partly due to its exposure to the troubled real estate and construction sectors.
Sharjah agreed to invest up to 1.9 billion dirhams ($517 million) in new shares of the struggling lender, one of the smaller banks in the UAE. Investors will finally vote on the plan on April 10, in a meeting originally set in early January.
#UAE's Finablr set to launch London IPO on Tuesday: sources - Reuters
UAE's Finablr set to launch London IPO on Tuesday: sources - Reuters:
United Arab Emirates-based payments and foreign exchange company Finablr is set to launch its initial public offering in London on Tuesday in a deal that could raise about $500 million, three sources familiar with the matter said.
The plan comes after its rival firm Network International’s IPO drew strong demand from investors in a potential deal that could value the company at $3 billion.
Finablr, the holding company for businesses including UAE Exchange, Travelex Holdings and Xpress Money, plans to sell between 25 and 30 percent of its shares, which could raise around $500 million, sources said.
United Arab Emirates-based payments and foreign exchange company Finablr is set to launch its initial public offering in London on Tuesday in a deal that could raise about $500 million, three sources familiar with the matter said.
The plan comes after its rival firm Network International’s IPO drew strong demand from investors in a potential deal that could value the company at $3 billion.
Finablr, the holding company for businesses including UAE Exchange, Travelex Holdings and Xpress Money, plans to sell between 25 and 30 percent of its shares, which could raise around $500 million, sources said.
#Qatar sues Luxembourg, #UAE, #Saudi banks in FX manipulation case - Reuters
Qatar sues Luxembourg, UAE, Saudi banks in FX manipulation case - Reuters:
Qatar filed lawsuits on Monday against three banks, accusing them of causing billions of dollars of damage to its economy by what it called overseas currency manipulation in the wake of an Arab boycott against Qatar in 2017.
The cases, filed in London and New York, name Luxembourg-based Banque Havilland, the United Arab Emirates’ First Abu Dhabi Bank (FAB) and Saudi Arabia’s Samba Bank, according to filings seen by Reuters and a statement from Qatar’s government communications office.
First Abu Dhabi Bank declined to comment, while Banque Havilland and Samba Bank did not immediately respond to requests for comment.
Qatar filed lawsuits on Monday against three banks, accusing them of causing billions of dollars of damage to its economy by what it called overseas currency manipulation in the wake of an Arab boycott against Qatar in 2017.
The cases, filed in London and New York, name Luxembourg-based Banque Havilland, the United Arab Emirates’ First Abu Dhabi Bank (FAB) and Saudi Arabia’s Samba Bank, according to filings seen by Reuters and a statement from Qatar’s government communications office.
First Abu Dhabi Bank declined to comment, while Banque Havilland and Samba Bank did not immediately respond to requests for comment.
Russia signals OPEC and allies could raise oil output from June - Reuters
Russia signals OPEC and allies could raise oil output from June - Reuters:
One of the key Russian officials to foster a supply pact with OPEC, Kirill Dmitriev, signaled on Monday that Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.
Dmitriev, head of Russian sovereign wealth fund RDIF, was the first Russian official to predict a deal with OPEC in 2016 and since then has become a key defender of the pact despite pressure from domestic oil firms to drop the agreement.
Dmitriev, an envoy for Moscow in the Middle East in general and Saudi Arabia in particular, had in recent months said it was still too early to terminate output cuts, echoing the position of OPEC’s de facto leader, Saudi Arabia.
One of the key Russian officials to foster a supply pact with OPEC, Kirill Dmitriev, signaled on Monday that Russia wanted to raise oil output when it meets with OPEC in June because of improving market conditions and falling stockpiles.
Dmitriev, head of Russian sovereign wealth fund RDIF, was the first Russian official to predict a deal with OPEC in 2016 and since then has become a key defender of the pact despite pressure from domestic oil firms to drop the agreement.
Dmitriev, an envoy for Moscow in the Middle East in general and Saudi Arabia in particular, had in recent months said it was still too early to terminate output cuts, echoing the position of OPEC’s de facto leader, Saudi Arabia.
Mideast Stocks: #Dubai leads gains, most major Gulf markets rise | ZAWYA MENA Edition
Mideast Stocks: Dubai leads gains, most major Gulf markets rise | ZAWYA MENA Edition:
Dubai's stock market rose for the eighth straight session on Monday and most major Gulf markets gained, as financial shares lifted the exchanges.
The Dubai index rose 0.6 percent, as Dubai Islamic Bank added 1.6 percent and its largest listed-developer Emaar Properties closed 1.4 percent higher.
On Sunday, a media report said that Dubai Islamic Bank was in talks to buy Dubai-based Noor Bank. The company said it does not comment on market speculation and rumours.
Dubai's stock market rose for the eighth straight session on Monday and most major Gulf markets gained, as financial shares lifted the exchanges.
The Dubai index rose 0.6 percent, as Dubai Islamic Bank added 1.6 percent and its largest listed-developer Emaar Properties closed 1.4 percent higher.
On Sunday, a media report said that Dubai Islamic Bank was in talks to buy Dubai-based Noor Bank. The company said it does not comment on market speculation and rumours.
MIDEAST STOCKS- #Saudi shares down as banks fall; #Dubai extends winning streak - Reuters
MIDEAST STOCKS-Saudi shares down as banks fall; Dubai extends winning streak - Reuters:
Saudi Arabia’s stock market slid on Monday as most of its banking shares dropped, while Dubai rose for its eighth straight session, partly aided by United Arab Emirates’ largest sharia-compliant lender, Dubai Islamic Bank.
Saudi Arabia’s index was down 0.5 percent as Al Rajhi Bank slid 1.5 percent and Banque Saudi Fransi fell 1.6 percent.
Saudi’s Almarai lost 1.1 percent. On Sunday, the dairy producer reported a drop of 2.6 percent in its first-quarter results.
Saudi Arabia’s stock market slid on Monday as most of its banking shares dropped, while Dubai rose for its eighth straight session, partly aided by United Arab Emirates’ largest sharia-compliant lender, Dubai Islamic Bank.
Saudi Arabia’s index was down 0.5 percent as Al Rajhi Bank slid 1.5 percent and Banque Saudi Fransi fell 1.6 percent.
Saudi’s Almarai lost 1.1 percent. On Sunday, the dairy producer reported a drop of 2.6 percent in its first-quarter results.
Norway Is Walking Away From Billions of Barrels of Oil - Bloomberg
Norway Is Walking Away From Billions of Barrels of Oil - Bloomberg:
Western Europe’s biggest petroleum producer is falling out of love with oil.
To the dismay of the nation’s powerful oil industry and its worker unions, the opposition Labor Party over the weekend decided to withdraw its support for oil exploration offshore the sensitive Lofoten islands in Norway’s Arctic, creating a solid majority in parliament to keep the area off limits for drilling.
The dramatic shift by Norway’s biggest party is a significant blow to the support the oil industry has enjoyed, and could signal that the Scandinavian nation is coming closer to the end of an era that made it one of the world’s most affluent.
Western Europe’s biggest petroleum producer is falling out of love with oil.
To the dismay of the nation’s powerful oil industry and its worker unions, the opposition Labor Party over the weekend decided to withdraw its support for oil exploration offshore the sensitive Lofoten islands in Norway’s Arctic, creating a solid majority in parliament to keep the area off limits for drilling.
The dramatic shift by Norway’s biggest party is a significant blow to the support the oil industry has enjoyed, and could signal that the Scandinavian nation is coming closer to the end of an era that made it one of the world’s most affluent.
#Saudi Aramco Set for Mega Debt Deal Pitched by JPMorgan CEO - Bloomberg
Saudi Aramco Set for Mega Debt Deal Pitched by JPMorgan CEO - Bloomberg:
In a bond sale closely watched by investors globally, Saudi Aramco and its bankers are preparing to kick off what could be at least a $10 billion offering this week. Early indications suggest investors are already crowding in.
Demand for the most highly anticipated sale of the year already totaled $30 billion, Aramco Chairman and Saudi Energy Minister Khalid Al-Falih told Bloomberg TV in an interview in Riyadh on Monday. The state-owned oil giant and bankers spent the last week drumming up support for its debut offering at presentations in cities ranging from New York and Chicago to Singapore and Tokyo.
Bond update:
The success of the sale is hugely important for banks, such as JPMorgan Chase & Co., that are working on the company’s behalf. They are eager to run an initial public offering by Aramco -- the world’s most profitable company -- if and when it comes, which would bring lucrative fees for the selected banks. In a rare appearance that underlines the bond sale’s significance,
In a bond sale closely watched by investors globally, Saudi Aramco and its bankers are preparing to kick off what could be at least a $10 billion offering this week. Early indications suggest investors are already crowding in.
Demand for the most highly anticipated sale of the year already totaled $30 billion, Aramco Chairman and Saudi Energy Minister Khalid Al-Falih told Bloomberg TV in an interview in Riyadh on Monday. The state-owned oil giant and bankers spent the last week drumming up support for its debut offering at presentations in cities ranging from New York and Chicago to Singapore and Tokyo.
Bond update:
- Roadshow finishing Monday
- IPTs will launch London afternoon Monday across a range of tenors
- Books will be open overnight tonight and during Asia day Tuesday
- Look to price Tuesday afternoon London time
The success of the sale is hugely important for banks, such as JPMorgan Chase & Co., that are working on the company’s behalf. They are eager to run an initial public offering by Aramco -- the world’s most profitable company -- if and when it comes, which would bring lucrative fees for the selected banks. In a rare appearance that underlines the bond sale’s significance,
Oil climbs to five-month high amid OPEC cuts, U.S. sanctions and Libya fighting - Reuters
Oil climbs to five-month high amid OPEC cuts, U.S. sanctions and Libya fighting - Reuters:
Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC’s ongoing supply cuts, U.S. sanctions against Iran and Venezuela, fighting in Libya as well as strong U.S. jobs data.
International benchmark Brent futures were at $70.62 per barrel at 0716 GMT on Monday, up 28 cents, or 0.4 percent from their last close.
U.S. West Texas Intermediate (WTI) crude were up 30 cents, or 0.5 percent, at $63.39 per barrel.
Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively, early on Monday.
Oil prices rose to their highest level since November 2018 on Monday, driven upwards by OPEC’s ongoing supply cuts, U.S. sanctions against Iran and Venezuela, fighting in Libya as well as strong U.S. jobs data.
International benchmark Brent futures were at $70.62 per barrel at 0716 GMT on Monday, up 28 cents, or 0.4 percent from their last close.
U.S. West Texas Intermediate (WTI) crude were up 30 cents, or 0.5 percent, at $63.39 per barrel.
Brent and WTI both hit their highest since November at $70.76 and $63.48 a barrel, respectively, early on Monday.
#UAE's Mubadala says Carlyle Group to buy 30-40 pct stake in Cepsa - Reuters
UAE's Mubadala says Carlyle Group to buy 30-40 pct stake in Cepsa - Reuters:
U.S buyout firm Carlyle Group has agreed to buy a 30 to 40 percent stake in Spanish energy company Cepsa from Muabdala based on an enterprise value of $12 billion, the Abu Dhabi wealth fund said on Monday.
The deal is expected to close by the end of 2019 and final shareholding stakes of both parties will be confirmed then, state-owned Mubadala said.
Mubadala will remain the majority shareholder of Cepsa. Equity for this investment will come from Carlyle International Energy Partners I and II, Carlyle Partners VII, Carlyle Europe Partners V and co-investors, the statement said.
U.S buyout firm Carlyle Group has agreed to buy a 30 to 40 percent stake in Spanish energy company Cepsa from Muabdala based on an enterprise value of $12 billion, the Abu Dhabi wealth fund said on Monday.
The deal is expected to close by the end of 2019 and final shareholding stakes of both parties will be confirmed then, state-owned Mubadala said.
Mubadala will remain the majority shareholder of Cepsa. Equity for this investment will come from Carlyle International Energy Partners I and II, Carlyle Partners VII, Carlyle Europe Partners V and co-investors, the statement said.
#SaudiArabia says no change to policy of trading oil in dollars - Reuters
Saudi Arabia says no change to policy of trading oil in dollars - Reuters:
Saudi Energy Minister Khalid al-Falih said on Monday there was no change to the kingdom’s long-standing policy of trading oil in U.S. dollars.
“Absolutely not. There is no change whatsoever to our long-standing policy,” Falih said when asked to comment on the possibility that Saudi Arabia could ditch the dollar.
Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy told Reuters last week.
Saudi Energy Minister Khalid al-Falih said on Monday there was no change to the kingdom’s long-standing policy of trading oil in U.S. dollars.
“Absolutely not. There is no change whatsoever to our long-standing policy,” Falih said when asked to comment on the possibility that Saudi Arabia could ditch the dollar.
Saudi Arabia is threatening to sell its oil in currencies other than the dollar if Washington passes a bill exposing OPEC members to U.S. antitrust lawsuits, three sources familiar with Saudi energy policy told Reuters last week.