Top Abraaj executives arrested on U.S. fraud charges - Reuters:
The chief executive and a managing partner of the collapsed Dubai private equity firm Abraaj Capital Ltd were arrested on U.S. charges that they defrauded their investors, including the Bill & Melinda Gates Foundation, a federal prosecutor said on Thursday.
Abraaj founder and Chief Executive Arif Naqvi was arrested in the United Kingdom last Friday, while managing partner Mustafa Abdel-Wadood was arrested at a New York hotel on Thursday, Assistant U.S. Attorney Andrea Griswold said at a hearing in Manhattan federal court.
Abdel-Wadood appeared at the hearing and pleaded not guilty to securities fraud, wire fraud and conspiracy charges. His lawyer, Benjamin Brafman, did not immediately request bail, saying he needed more time to become familiar with the case.
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Thursday 11 April 2019
#Dubai regulator took 'appropriate' measures against Abraaj - The National
Dubai regulator took 'appropriate' measures against Abraaj - The National:
Dubai’s financial services regulator took “appropriate” measures against collapsed private equity company Abraaj Group, but communication was lacking and there needs to be tighter scrutiny of high-risk entities, the regulator's chief executive said.
“I think the actions we took were appropriate, but one of our lessons learnt is to better communicate our actions to the market, to address public concerns,” Bryan Stirewalt, chief executive of the Dubai Financial Services Authority, told The National, in his first interview to address market concerns over the Abraaj scandal.
The DFSA, which regulates 500 companies registered at the Dubai International Financial Centre free zone, is preparing to introduce tougher policies with regard to corporate transparency and risk management.
Dubai’s financial services regulator took “appropriate” measures against collapsed private equity company Abraaj Group, but communication was lacking and there needs to be tighter scrutiny of high-risk entities, the regulator's chief executive said.
“I think the actions we took were appropriate, but one of our lessons learnt is to better communicate our actions to the market, to address public concerns,” Bryan Stirewalt, chief executive of the Dubai Financial Services Authority, told The National, in his first interview to address market concerns over the Abraaj scandal.
The DFSA, which regulates 500 companies registered at the Dubai International Financial Centre free zone, is preparing to introduce tougher policies with regard to corporate transparency and risk management.
Abraaj founder Arif Naqvi charged with fraud in New York
Abraaj founder Arif Naqvi charged with fraud in New York:
Arif Naqvi, the founder of the collapsed Dubai-based private-equity firm The Abraaj Group, has been charged with fraud and conspiracy in New York.
Prosecutors claim Naqvi carried out a scheme, beginning in 2014, to defraud investors by hiding the firm’s failing financial health and stealing investor money, Bloomberg reported.
Abraaj was the largest private equity player in the Middle East until its collapse last year following a row with investors that included the Gates Foundation over a $1 billion health care fund.
Arif Naqvi, the founder of the collapsed Dubai-based private-equity firm The Abraaj Group, has been charged with fraud and conspiracy in New York.
Prosecutors claim Naqvi carried out a scheme, beginning in 2014, to defraud investors by hiding the firm’s failing financial health and stealing investor money, Bloomberg reported.
Abraaj was the largest private equity player in the Middle East until its collapse last year following a row with investors that included the Gates Foundation over a $1 billion health care fund.
#Saudi Aramco's Quest to Become the World's Biggest Oil Consumer - Bloomberg
Saudi Aramco's Quest to Become the World's Biggest Oil Consumer - Bloomberg:
Saudi Aramco is well known as the world’s top crude exporter. If all goes to plan, it may also become the biggest user of the fossil fuel.
More than a third of Aramco’s oil is currently fed into its fully-owned and joint venture refineries, according to its bond prospectus. The company plans to double its refining network to handle as much as 10 million barrels a day by 2030, locking in a friendly buyer for the kingdom’s crude.
Aramco’s “goal is to provide a reliable destination for its future oil production,” said John Stewart, an analyst at consultant Wood Mackenzie Ltd. The expansion “would make it the biggest refiner in the world by some margin.”
Saudi Aramco is well known as the world’s top crude exporter. If all goes to plan, it may also become the biggest user of the fossil fuel.
More than a third of Aramco’s oil is currently fed into its fully-owned and joint venture refineries, according to its bond prospectus. The company plans to double its refining network to handle as much as 10 million barrels a day by 2030, locking in a friendly buyer for the kingdom’s crude.
Aramco’s “goal is to provide a reliable destination for its future oil production,” said John Stewart, an analyst at consultant Wood Mackenzie Ltd. The expansion “would make it the biggest refiner in the world by some margin.”
#Saudi Aramco's $12 Billion Bond Deal Fizzles - Bloomberg
Saudi Aramco's $12 Billion Bond Deal Fizzles - Bloomberg:
The bonds issued by Saudi Aramco in this week’s unprecedented offering sank for a second day, marking a quick sell-off that calls into question the depth of the deal’s $100 billion of investor orders.
Risk premiums on the oil giant’s $12 billion of bonds climbed amid a mild decline in oil prices and rising yields on the company’s sovereign parent. For the most actively traded piece of the offering -- $3 billion of 3.5 percent bonds due in 2029 -- the extra yield investors demanded to own the debt widened to as high as 1.2 percentage points more than U.S. Treasuries in trading Thursday, according to the Trace bond-price reporting system. That’s up from a spread of 1.05 percentage points when the deal priced Tuesday.
The trading sheds light on a long-held reality in the corporate bond market: that orders on highly anticipated deals are often padded by investors who fear losing out on allocations. It can create a “vicious cycle” that inflates demand, said Lon Erickson, a portfolio manager at Thornburg Investment Management
The bonds issued by Saudi Aramco in this week’s unprecedented offering sank for a second day, marking a quick sell-off that calls into question the depth of the deal’s $100 billion of investor orders.
Risk premiums on the oil giant’s $12 billion of bonds climbed amid a mild decline in oil prices and rising yields on the company’s sovereign parent. For the most actively traded piece of the offering -- $3 billion of 3.5 percent bonds due in 2029 -- the extra yield investors demanded to own the debt widened to as high as 1.2 percentage points more than U.S. Treasuries in trading Thursday, according to the Trace bond-price reporting system. That’s up from a spread of 1.05 percentage points when the deal priced Tuesday.
The trading sheds light on a long-held reality in the corporate bond market: that orders on highly anticipated deals are often padded by investors who fear losing out on allocations. It can create a “vicious cycle” that inflates demand, said Lon Erickson, a portfolio manager at Thornburg Investment Management
#Qatar has no say in who runs Deutsche: foreign minister - Reuters
Qatar has no say in who runs Deutsche: foreign minister - Reuters:
Qatar has no direct say in who runs Deutsche Bank, the country’s foreign minister said when he was asked on Thursday for Doha’s view on merger talks between Deutsche Bank and fellow German lender Commerzbank.
Some 6.1 percent of the shares in Germany’s troubled lender are owned by two members of Qatar’s wealthy royal family, and the country’s sovereign wealth fund has also previously considered building a stake.
“Qatar invests in many areas in Germany,” said foreign minister Mohammed bin Abdulrahman al-Thani at a press conference after talks with his German counterpart. “The question of who runs this or that institution is not a matter for Qatar directly or which Qatar decides upon.”
Qatar has no direct say in who runs Deutsche Bank, the country’s foreign minister said when he was asked on Thursday for Doha’s view on merger talks between Deutsche Bank and fellow German lender Commerzbank.
Some 6.1 percent of the shares in Germany’s troubled lender are owned by two members of Qatar’s wealthy royal family, and the country’s sovereign wealth fund has also previously considered building a stake.
“Qatar invests in many areas in Germany,” said foreign minister Mohammed bin Abdulrahman al-Thani at a press conference after talks with his German counterpart. “The question of who runs this or that institution is not a matter for Qatar directly or which Qatar decides upon.”
#Qatar Airways says Air Italy stake compliant with 2018 U.S.-Qatar aviation agreement - Reuters
Qatar Airways says Air Italy stake compliant with 2018 U.S.-Qatar aviation agreement - Reuters:
State-owned Qatar Airways on Thursday dismissed concerns its 49 percent stake in Air Italy breaches a 2018 aviation agreement between the United States and Qatar, designed to address U.S. concerns that Gulf airlines had an unfair competitive advantage.
The U.S is “looking very closely” at the deal after Republicans and Democrats said on Wednesday they were concerned it violated the agreement.
Qatar Airways bought a stake in Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced non-stop U.S. destinations from Milan.
State-owned Qatar Airways on Thursday dismissed concerns its 49 percent stake in Air Italy breaches a 2018 aviation agreement between the United States and Qatar, designed to address U.S. concerns that Gulf airlines had an unfair competitive advantage.
The U.S is “looking very closely” at the deal after Republicans and Democrats said on Wednesday they were concerned it violated the agreement.
Qatar Airways bought a stake in Italian airline Meridiana in 2017, rebranded it Air Italy and transformed it into a carrier with five announced non-stop U.S. destinations from Milan.
Oil prices slip as OPEC mulls output hike, U.S. stocks build - Reuters
Oil prices slip as OPEC mulls output hike, U.S. stocks build - Reuters:
Oil prices fell on Thursday after sources said OPEC may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying.
Rising U.S. crude stockpiles also dragged U.S. futures down by more than $1 a barrel. West Texas Intermediate (WTI) crude fell $1.03 to settle at $63.58 a barrel.
Global benchmark Brent settled at $70.83 a barrel, down 90 cents.
Oil prices fell on Thursday after sources said OPEC may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying.
Rising U.S. crude stockpiles also dragged U.S. futures down by more than $1 a barrel. West Texas Intermediate (WTI) crude fell $1.03 to settle at $63.58 a barrel.
Global benchmark Brent settled at $70.83 a barrel, down 90 cents.
MIDEAST STOCKS- #Dubai ends 10-day rally, most Gulf markets little changed - Reuters
MIDEAST STOCKS-Dubai ends 10-day rally, most Gulf markets little changed - Reuters:
Dubai's stock market slid on Thursday as most of its financial shares dropped, snapping a 10-day winning streak, while other major Gulf markets were little changed.
The Dubai index fell 0.6 percent, led by a 1.7 percent fall in Emirates NBD, ahead of its board meeting scheduled on April 16 to approve its first-quarter financial statement.
On Wednesday, the lender said it would receive 554.5 million pounds ($725.6 million) from the sale of a stake in Network International through a secondary listing of the shares in London. Emirates NBD sold 127.5 million shares in the payment processor, reducing its stake to 25.5 percent.
Dubai's stock market slid on Thursday as most of its financial shares dropped, snapping a 10-day winning streak, while other major Gulf markets were little changed.
The Dubai index fell 0.6 percent, led by a 1.7 percent fall in Emirates NBD, ahead of its board meeting scheduled on April 16 to approve its first-quarter financial statement.
On Wednesday, the lender said it would receive 554.5 million pounds ($725.6 million) from the sale of a stake in Network International through a secondary listing of the shares in London. Emirates NBD sold 127.5 million shares in the payment processor, reducing its stake to 25.5 percent.
#SaudiArabia: King Abdullah Financial District Entertainment - Bloomberg
Saudi Arabia: King Abdullah Financial District Entertainment - Bloomberg:
There might not be any banks yet in the King Abdullah Financial District, but on a sunny afternoon, the once-stalled development in Riyadh is packed with people.
Surrounded by unfinished skyscrapers, Mona Al Humaidi and Munira Al Shumaisi sipped iced coffee in an outdoor lounge, laughing and watching the crowds. "We lack open spaces in Saudi Arabia," 27-year-old Al Shumaisi said. "This kind of atmosphere’s very important for us."
The two Saudi women were among the first to explore "THE303," a smattering of pop-up cafes with live music that opened last month in the financial district. Along with a cinema nearby, the venue is bringing early signs of life to the long-struggling development, announced in 2006 as a hub for foreign and local banks. Plagued by delays, the $10 billion project was dismissed by many as a white elephant -- a ghost town that companies were reluctant to move into.
There might not be any banks yet in the King Abdullah Financial District, but on a sunny afternoon, the once-stalled development in Riyadh is packed with people.
Surrounded by unfinished skyscrapers, Mona Al Humaidi and Munira Al Shumaisi sipped iced coffee in an outdoor lounge, laughing and watching the crowds. "We lack open spaces in Saudi Arabia," 27-year-old Al Shumaisi said. "This kind of atmosphere’s very important for us."
The two Saudi women were among the first to explore "THE303," a smattering of pop-up cafes with live music that opened last month in the financial district. Along with a cinema nearby, the venue is bringing early signs of life to the long-struggling development, announced in 2006 as a hub for foreign and local banks. Plagued by delays, the $10 billion project was dismissed by many as a white elephant -- a ghost town that companies were reluctant to move into.
IEA Says Oil Market Tightening, But Global Demand May Falter - Bloomberg
IEA Says Oil Market Tightening, But Global Demand May Falter - Bloomberg:
Global oil markets are tightening as OPEC supply falls, the International Energy Agency said, while warning it could lower demand forecasts because of economic threats.
Crude inventories are set to decline for the rest of the year as Saudi Arabia and its partners curb production, while exports from Venezuela and Iran are squeezed by economic and political crises, the agency said in its monthly report. But it cautioned that threats in the world economy, from Europe to emerging markets, could take a toll on fuel consumption.
“The oil market shows signs of tightening as we move into the second quarter of 2019, but we see mixed signals in terms of the outlook for demand,” said the Paris-based agency, which advises most major economies. Risks to demand are “currently to the downside.”
Global oil markets are tightening as OPEC supply falls, the International Energy Agency said, while warning it could lower demand forecasts because of economic threats.
Crude inventories are set to decline for the rest of the year as Saudi Arabia and its partners curb production, while exports from Venezuela and Iran are squeezed by economic and political crises, the agency said in its monthly report. But it cautioned that threats in the world economy, from Europe to emerging markets, could take a toll on fuel consumption.
“The oil market shows signs of tightening as we move into the second quarter of 2019, but we see mixed signals in terms of the outlook for demand,” said the Paris-based agency, which advises most major economies. Risks to demand are “currently to the downside.”
Aramco's Bond-Sale Billions Make #Saudi Stock Inflows Look Tiny - Bloomberg
The $12 billion in bonds sold this week by the world’s most profitable company exceeds by more than three times net inflows from foreigners investing in the Saudi Arabian stock market, which has 203 traded securities.
Inflows to Saudi stocks have been steady since the beginning of the year, as investors anticipate the inclusion of the kingdom in emerging-market benchmarks compiled by FTSE Russell and MSCI Inc. But investors from outside of the six-nation Gulf Cooperation Council still own just about 5.4 percent of stocks in Riyadh.
Fitch affirms #Kuwait at AA; outlook stable | ZAWYA MENA Edition
Fitch affirms Kuwait at AA; outlook stable | ZAWYA MENA Edition:
(The following statement was released by the rating agency)
Fitch Ratings-Hong Kong-April 11: Fitch Ratings has affirmed Kuwait's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AA' with a Stable Outlook.
A full list of rating actions is at the end of this rating action commentary.
(The following statement was released by the rating agency)
Fitch Ratings-Hong Kong-April 11: Fitch Ratings has affirmed Kuwait's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'AA' with a Stable Outlook.
A full list of rating actions is at the end of this rating action commentary.
How #Uzbekistan plans to take on the world’s oil majors | Financial Times
How Uzbekistan plans to take on the world’s oil majors | Financial Times:
Uzbekistan’s state oil and gas company has a bold aim — to become the next Royal Dutch Shell or BP and join the ranks of the world’s energy majors.
It is early days but Uzbekneftegaz, which contributes 15 per cent of the country’s gross domestic product, has taken the first steps towards its ambitious goal by gaining the freedom from the government to act as an independent corporate entity.
The company has also appointed a new chairman, 39-year-old Bahodirjon Sidikov, to oversee its planned transformation as the group aims to take advantage of reforms implemented across the country under president Shavkat Mirziyoyev.
Uzbekistan’s state oil and gas company has a bold aim — to become the next Royal Dutch Shell or BP and join the ranks of the world’s energy majors.
It is early days but Uzbekneftegaz, which contributes 15 per cent of the country’s gross domestic product, has taken the first steps towards its ambitious goal by gaining the freedom from the government to act as an independent corporate entity.
The company has also appointed a new chairman, 39-year-old Bahodirjon Sidikov, to oversee its planned transformation as the group aims to take advantage of reforms implemented across the country under president Shavkat Mirziyoyev.
MIDEAST STOCKS-Tasnee lifts Saudi, major Gulf markets mixed - Reuters
MIDEAST STOCKS-Tasnee lifts Saudi, major Gulf markets mixed - Reuters:
Saudi Arabia’s stock market inched up on Thursday, partly helped by petrochemical firm National Industrialization Co (Tasnee), while Dubai was driven lower by its top bank.
Saudi Arabia’s index inched up 0.1 percent with Tasnee climbing 5.3 percent, to its highest since August 2018, and Al Rajhi Bank was up 0.1 percent.
Tasnee said that its unit Cristal completed the sale of its titanium dioxide business to Tronox Holdings. Cristal will receive a cash consideration of $1.673 billion and a 24 percent equity in Tronox.
Saudi Arabia’s stock market inched up on Thursday, partly helped by petrochemical firm National Industrialization Co (Tasnee), while Dubai was driven lower by its top bank.
Saudi Arabia’s index inched up 0.1 percent with Tasnee climbing 5.3 percent, to its highest since August 2018, and Al Rajhi Bank was up 0.1 percent.
Tasnee said that its unit Cristal completed the sale of its titanium dioxide business to Tronox Holdings. Cristal will receive a cash consideration of $1.673 billion and a 24 percent equity in Tronox.
Fitch rates #Saudi Aramco's debut bonds final A+ | ZAWYA MENA Edition
Fitch rates Saudi Aramco's debut bonds final A+ | ZAWYA MENA Edition:
Fitch Ratings-London-April 10: Fitch Ratings has assigned Saudi Arabian Oil Company's (Saudi Aramco) GMTN programme and debut bonds issued under the programme final 'A+' senior unsecured ratings. The ratings are in line with Saudi Aramco's 'A+' Issuer Default Rating (IDR), which has a Stable Outlook.
Saudi Aramco is the world's largest oil producer and the national oil company of Saudi Arabia (A+/Stable). Its standalone profile corresponds to a rating of 'AA+', which sits at the upper boundary of the Fitch rating spectrum for oil and gas companies, and reflects the company's high production, vast reserves, low production costs and very conservative financial profile.
On the other hand, the company is less integrated into natural gas and downstream than some of its international peers, though this would somewhat improve following the acquisition of Saudi Basic Industries Corp. (Saudi Basic Industries Corp. (SABIC)3, A+/Stable). Saudi Aramco is also less diversified geographically as its upstream assets are located in a single country.
Fitch Ratings-London-April 10: Fitch Ratings has assigned Saudi Arabian Oil Company's (Saudi Aramco) GMTN programme and debut bonds issued under the programme final 'A+' senior unsecured ratings. The ratings are in line with Saudi Aramco's 'A+' Issuer Default Rating (IDR), which has a Stable Outlook.
Saudi Aramco is the world's largest oil producer and the national oil company of Saudi Arabia (A+/Stable). Its standalone profile corresponds to a rating of 'AA+', which sits at the upper boundary of the Fitch rating spectrum for oil and gas companies, and reflects the company's high production, vast reserves, low production costs and very conservative financial profile.
On the other hand, the company is less integrated into natural gas and downstream than some of its international peers, though this would somewhat improve following the acquisition of Saudi Basic Industries Corp. (Saudi Basic Industries Corp. (SABIC)3, A+/Stable). Saudi Aramco is also less diversified geographically as its upstream assets are located in a single country.