Saudis Issue 70% More Foreign Business Licenses From Year Ago - Bloomberg:
The number of new licenses approved for foreign businesses in Saudi Arabia rose by 70 percent in the first quarter from a year earlier, according to the Saudi Arabia General Investment Authority.
Applications from British and Chinese companies drove the increase, rising by 86 percent and 71 percent, respectively, Ibrahim Al Omar, governor of Sagia, as the kingdom’s investment-promotion body is known, said in an interview. The fastest-growing industries were education -- which the kingdom only opened to foreign investors in November -- and information and communications technology, Al Omar said.
The year-on-year growth in foreign licenses follows Saudi efforts to remove restrictions on international investments. Yet, fresh foreign direct investment in the country has been modest. While FDI more than doubled last year to about $3 billion, it remains well below the average level of the past decade, as uncertainty over the government’s economic plans, its human-rights record and the declared crackdown on corruption in 2017 have weighed on investor sentiment.
Sunday 28 April 2019
#Saudi TAQA drilling unit to buy Schlumberger's Middle East rigs - Reuters
Saudi TAQA drilling unit to buy Schlumberger's Middle East rigs - Reuters:
Saudi Arabia’s Industrialization and Energy Services Company (TAQA) said on Sunday its drilling subsidiary, Arabian Drilling Company, has agreed to buy Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million.
Through the expansion, Arabian Drilling will operate 58 onshore rigs and nine offshore rigs across the Middle East and North Africa.
Moelis advised TAQA and Rothschild advised Schlumberger for the deal, which is expected to close in the second half of this year, TAQA said in a statement.
Saudi Arabia’s Industrialization and Energy Services Company (TAQA) said on Sunday its drilling subsidiary, Arabian Drilling Company, has agreed to buy Schlumberger’s Middle East onshore drilling rigs business in Kuwait, Oman, Iraq and Pakistan for $415 million.
Through the expansion, Arabian Drilling will operate 58 onshore rigs and nine offshore rigs across the Middle East and North Africa.
Moelis advised TAQA and Rothschild advised Schlumberger for the deal, which is expected to close in the second half of this year, TAQA said in a statement.
MIDEAST STOCKS-Falling oil prices weigh on Gulf stocks - Reuters
MIDEAST STOCKS-Falling oil prices weigh on Gulf stocks - Reuters:
Stocks closed lower across the
Gulf on Sunday with markets overshadowed by a fall in oil
prices.
Saudi stocks eked out some early gains then went
into reverse, closing 0.1 percent lower. Al Rajhi Bank
initially rose after posting an increase in profits last week
but ended up with a 1.32 percent decline on the day.
Oil prices fell 3 percent on Friday, hitting sentiment
across the region, after U.S. President Donald Trump again
pressured the Organization of the Petroleum Exporting Countries
to raise crude production to ease gasoline prices.
Stocks closed lower across the
Gulf on Sunday with markets overshadowed by a fall in oil
prices.
Saudi stocks eked out some early gains then went
into reverse, closing 0.1 percent lower. Al Rajhi Bank
initially rose after posting an increase in profits last week
but ended up with a 1.32 percent decline on the day.
Oil prices fell 3 percent on Friday, hitting sentiment
across the region, after U.S. President Donald Trump again
pressured the Organization of the Petroleum Exporting Countries
to raise crude production to ease gasoline prices.
#Saudi Mall Owner Seeks $836 Million From Initial Share Sale - Bloomberg
Saudi Mall Owner Seeks $836 Million From Initial Share Sale - Bloomberg:
Fawaz Alhokair Group, the Saudi retailer that owns the franchise for brands like Banana Republic and Zara, is seeking to raise as much as 3.1 billion riyals ($836 million) from selling shares in its malls unit. It would be the country’s largest IPO since 2014.
Arabian Centres Co. set the price range of the initial public offering at 26 riyals to 33 riyals, valuing it at as much as 15.7 billion riyals. The company operates 19 shopping malls in the kingdom.
Saudi share sales slowed as the kingdom’s economy grappled with lower oil prices. Listings by companies and real-estate investment trusts raised almost $900 million last year, down from $6.7 billion in 2014, according to data compiled by Bloomberg.
Fawaz Alhokair Group, the Saudi retailer that owns the franchise for brands like Banana Republic and Zara, is seeking to raise as much as 3.1 billion riyals ($836 million) from selling shares in its malls unit. It would be the country’s largest IPO since 2014.
Arabian Centres Co. set the price range of the initial public offering at 26 riyals to 33 riyals, valuing it at as much as 15.7 billion riyals. The company operates 19 shopping malls in the kingdom.
Saudi share sales slowed as the kingdom’s economy grappled with lower oil prices. Listings by companies and real-estate investment trusts raised almost $900 million last year, down from $6.7 billion in 2014, according to data compiled by Bloomberg.
FlyDubai Looking at Financing Options Ahead of Maturing Sukuk - Bloomberg
FlyDubai Looking at Financing Options Ahead of Maturing Sukuk - Bloomberg:
FlyDubai, a discount airline that’s forging closer links to long-haul giant Emirates, is looking at funding options for its sukuk maturing in November.
The carrier seeks to replace the $500 million Islamic loan with new sukuk or a combination of sukuk and bank loans, Chief Executive Officer Ghaith Al-Ghaith said in Dubai on Sunday. FlyDubai hasn’t yet asked banks to bid.
He also said there are no updates on the airline’s plans for the Boeing’s 737 Max or potential orders. “The grounding of the 737 Max will impact our financials but our priority is to ensure the aircraft is safe and ready to fly," Al-Ghaith said.
FlyDubai, a discount airline that’s forging closer links to long-haul giant Emirates, is looking at funding options for its sukuk maturing in November.
The carrier seeks to replace the $500 million Islamic loan with new sukuk or a combination of sukuk and bank loans, Chief Executive Officer Ghaith Al-Ghaith said in Dubai on Sunday. FlyDubai hasn’t yet asked banks to bid.
He also said there are no updates on the airline’s plans for the Boeing’s 737 Max or potential orders. “The grounding of the 737 Max will impact our financials but our priority is to ensure the aircraft is safe and ready to fly," Al-Ghaith said.
#SaudiArabia may issue euro-demonimated bonds this year - finance minister - Reuters
Saudi Arabia may issue euro-demonimated bonds this year - finance minister - Reuters:
Saudi Arabia may issue euro-denominated bonds this year, depending on market conditions, Finance Minister Mohammed al-Jadaan said on Sunday.
Saudi Arabia plans to issue 118 billion riyals ($31.47 billion) in debt this year to help finance the national budget deficit, the country’s Debt Management Office (DMO), part of the ministry of finance, said last month.
Saudi Arabia may issue euro-denominated bonds this year, depending on market conditions, Finance Minister Mohammed al-Jadaan said on Sunday.
Saudi Arabia plans to issue 118 billion riyals ($31.47 billion) in debt this year to help finance the national budget deficit, the country’s Debt Management Office (DMO), part of the ministry of finance, said last month.
Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg
Dirty Russian Oil Has Made a Fragile Market Worse - Bloomberg:
President Donald Trump wants to strangle the Iranian economy and keep gas prices low for American drivers. The discovery that Russia has been exporting contaminated crude oil means any hopes that he could do both have all but evaporated.
Trump decided this month not to renew waivers that let countries buy Iranian oil without violating his sanctions, affecting eight nations that have exemptions expiring on May 2. This drove crude prices higher at a time when gasoline prices were already rising. Gas is up by nearly 30 percent since the start of the year and is now within 10 cents of last year’s peak, before America’s summer driving season has even started.
This harsher regime looks like it will stick. While some countries will try to persuade Trump to grant last-minute extensions, the current rhetoric from Washington doesn’t look encouraging. The exemptions that were made alongside the first wave of sanctions in November were unexpected. Offering a second round of waivers after saying there wouldn’t be any would, frankly, make Trump’s administration look stupid.
President Donald Trump wants to strangle the Iranian economy and keep gas prices low for American drivers. The discovery that Russia has been exporting contaminated crude oil means any hopes that he could do both have all but evaporated.
Trump decided this month not to renew waivers that let countries buy Iranian oil without violating his sanctions, affecting eight nations that have exemptions expiring on May 2. This drove crude prices higher at a time when gasoline prices were already rising. Gas is up by nearly 30 percent since the start of the year and is now within 10 cents of last year’s peak, before America’s summer driving season has even started.
This harsher regime looks like it will stick. While some countries will try to persuade Trump to grant last-minute extensions, the current rhetoric from Washington doesn’t look encouraging. The exemptions that were made alongside the first wave of sanctions in November were unexpected. Offering a second round of waivers after saying there wouldn’t be any would, frankly, make Trump’s administration look stupid.
China to Invest $3.4 Billion in #Dubai For Trading Initiative - Bloomberg
China to Invest $3.4 Billion in Dubai For Trading Initiative - Bloomberg:
China plans to to invest $3.4 billion in two Dubai-based trading facilities, increasing the influence of the world’s second-largest economy in the Gulf region.
The country will invest $2.4 billion in a 60-million square-feet (5.6 million square-meters) operation that will be used to store Chinese products for shipping around the world, Dubai ports group DP World said in a statement on Saturday, citing Sheikh Mohammed Bin Rashid Al Maktoum, ruler of Dubai.
“It will include wholesale and retail outlets that help enhance regional and international trade,” according to the statement. DP World has also signed an agreement with China to create a $1 billion project in Dubai to import, process, pack and export agricultural, marine and animal products.
China plans to to invest $3.4 billion in two Dubai-based trading facilities, increasing the influence of the world’s second-largest economy in the Gulf region.
The country will invest $2.4 billion in a 60-million square-feet (5.6 million square-meters) operation that will be used to store Chinese products for shipping around the world, Dubai ports group DP World said in a statement on Saturday, citing Sheikh Mohammed Bin Rashid Al Maktoum, ruler of Dubai.
“It will include wholesale and retail outlets that help enhance regional and international trade,” according to the statement. DP World has also signed an agreement with China to create a $1 billion project in Dubai to import, process, pack and export agricultural, marine and animal products.
#Saudi’s SABIC Q1 net profit drops 38%, cites lower selling prices | ZAWYA MENA Edition
Saudi’s SABIC Q1 net profit drops 38%, cites lower selling prices | ZAWYA MENA Edition:
Saudi Basic Industries Corp (SABIC) expects its financial performance in 2019 won't be as strong as 2018, but will still beat market forecasts, its chief executive said on Sunday.
His comments came after the world's fourth-biggest petrochemicals giant posted a 38 percent drop in first-quarter earnings, missing analyst expectations.
"Our expectations are that 2019 will be better than what the market gives, but it will not be as it was in 2018," Yousef al-Benyan told reporters in Riyadh.
Saudi Basic Industries Corp (SABIC) expects its financial performance in 2019 won't be as strong as 2018, but will still beat market forecasts, its chief executive said on Sunday.
His comments came after the world's fourth-biggest petrochemicals giant posted a 38 percent drop in first-quarter earnings, missing analyst expectations.
"Our expectations are that 2019 will be better than what the market gives, but it will not be as it was in 2018," Yousef al-Benyan told reporters in Riyadh.
Warren Buffett Bets on #Dubai Property as Market Prolongs Slump - Bloomberg
Warren Buffett Bets on Dubai Property as Market Prolongs Slump - Bloomberg:
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Berkshire Hathaway HomeServices Gulf Properties will be led by Chairman Ihsan Husein Al Marzouqi and Chief Executive Officer Phil Sheridan. It will have a team of 30 advisers and support staff, according to a statement. “Gulf Properties aspires to grow quickly by tripling its advisor count and opening a second office in Abu Dhabi within a year," it said.
Berkshire Hathaway HomeServices in November teamed up with London-based Kay & Co., its second franchisee in Europe, after Rubina Real Estate in Berlin. The company said then it hoped to add Milan, Vienna and Dubai to its network. Berkshire Hathaway Specialty Insurance Co. started operations in Dubai last year.
Warren Buffett’s real estate brokerage is expanding into the Middle East with an office in Dubai.
Berkshire Hathaway HomeServices Gulf Properties will be led by Chairman Ihsan Husein Al Marzouqi and Chief Executive Officer Phil Sheridan. It will have a team of 30 advisers and support staff, according to a statement. “Gulf Properties aspires to grow quickly by tripling its advisor count and opening a second office in Abu Dhabi within a year," it said.
Berkshire Hathaway HomeServices in November teamed up with London-based Kay & Co., its second franchisee in Europe, after Rubina Real Estate in Berlin. The company said then it hoped to add Milan, Vienna and Dubai to its network. Berkshire Hathaway Specialty Insurance Co. started operations in Dubai last year.
Oil Squeeze on #Iran Aids Putin's Power Play in the Middle East - Bloomberg
Oil Squeeze on Iran Aids Putin's Power Play in the Middle East - Bloomberg:
If President Donald Trump succeeds in cutting Iran’s oil exports to almost nothing, one of the main beneficiaries is likely to be Russia.
The economic blow to Iran will ease the Kremlin’s efforts to rein in Iranian influence in Syria, bolstering President Vladimir Putin’s efforts to project Russian power across the Middle East. Tehran and Moscow were one-time collaborators in the region, but they’ve found themselves increasingly at odds as Syria’s eight-year-old civil war winds down.
In recent months, the two main power brokers in Syria have engaged in deadly clashes, with Russian and Iranian forces and their proxies firing at one another, according to a Russian official and media reports. The relationship between the two countries is tense, three people close to the Russian government confirmed, speaking on condition of anonymity to discuss confidential matters.
If President Donald Trump succeeds in cutting Iran’s oil exports to almost nothing, one of the main beneficiaries is likely to be Russia.
The economic blow to Iran will ease the Kremlin’s efforts to rein in Iranian influence in Syria, bolstering President Vladimir Putin’s efforts to project Russian power across the Middle East. Tehran and Moscow were one-time collaborators in the region, but they’ve found themselves increasingly at odds as Syria’s eight-year-old civil war winds down.
In recent months, the two main power brokers in Syria have engaged in deadly clashes, with Russian and Iranian forces and their proxies firing at one another, according to a Russian official and media reports. The relationship between the two countries is tense, three people close to the Russian government confirmed, speaking on condition of anonymity to discuss confidential matters.
Current oil prices are fair, #Kuwait deputy minister says - Reuters
Current oil prices are fair, Kuwait deputy minister says - Reuters:
Kuwait’s acting deputy oil minister said on Sunday that the oil market is balanced and current prices are fair.
“The current oil prices of around $74 per barrel are fair prices ... And Kuwait is committed to its agreed quota under the production reduction agreement,” Sheikh Talal Nasser Al-Izabi Al-Sabah told reporters.
“Oil prices are currently supported by geopolitical tensions in Libya, Venezuela, Nigeria, sanctions on Iran and a decrease in U.S. inventories,” Al-Sabah added.
Kuwait’s acting deputy oil minister said on Sunday that the oil market is balanced and current prices are fair.
“The current oil prices of around $74 per barrel are fair prices ... And Kuwait is committed to its agreed quota under the production reduction agreement,” Sheikh Talal Nasser Al-Izabi Al-Sabah told reporters.
“Oil prices are currently supported by geopolitical tensions in Libya, Venezuela, Nigeria, sanctions on Iran and a decrease in U.S. inventories,” Al-Sabah added.
Libyan oil revenues rise after field recovered from militia
Libyan oil revenues rise after field recovered from militia:
Libya’s National Oil Corporation says monthly oil revenues increased by 20% to more than $1.5 billion in March, after forces loyal to a military commander captured an oil field from another militia that had closed it for three months.
NOC chairman Mustafa Sanalla said late Saturday, however, that the latest fighting in Tripoli threatens production.
Field Marshal Khalifa Hifter’s self-styled Libyan National Army captured the Sharara oil field in southwestern Libya in February and allowed the NOC to resume operations there. Earlier this month, his forces advanced on the capital, where they are battling armed groups loosely allied with a weak, U.N.-backed government.
Libya’s National Oil Corporation says monthly oil revenues increased by 20% to more than $1.5 billion in March, after forces loyal to a military commander captured an oil field from another militia that had closed it for three months.
NOC chairman Mustafa Sanalla said late Saturday, however, that the latest fighting in Tripoli threatens production.
Field Marshal Khalifa Hifter’s self-styled Libyan National Army captured the Sharara oil field in southwestern Libya in February and allowed the NOC to resume operations there. Earlier this month, his forces advanced on the capital, where they are battling armed groups loosely allied with a weak, U.N.-backed government.
UPDATE 1- #UAE's United Arab Bank cuts 150 jobs - sources - Reuters
UPDATE 1-UAE's United Arab Bank cuts 150 jobs - sources - Reuters:
United Arab Bank made about 150 staff redundant last week as part of cost cutting and efficiency measures, three sources told Reuters.
The bank said in a statement it had completed an assessment of its human resources requirements that concluded it had “excess capacity”, without giving details.
“Letting go of talent is never an easy decision,” it said.
United Arab Bank made about 150 staff redundant last week as part of cost cutting and efficiency measures, three sources told Reuters.
The bank said in a statement it had completed an assessment of its human resources requirements that concluded it had “excess capacity”, without giving details.
“Letting go of talent is never an easy decision,” it said.
PIF-backed #Saudi real estate firm to buy $200 mln worth of mortgages - Reuters
PIF-backed Saudi real estate firm to buy $200 mln worth of mortgages - Reuters:
Saudi Real Estate Refinance Co (SRC), a subsidiary of sovereign wealth fund Public Investment Fund, said on Saturday it had agreed to buy 750 million riyals ($200 million) worth of mortgages from local banks and mortgage financing companies.
The move comes after SRC recently completed a 750 million riyal sukuk issue with multiple tenors, under a programme that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.
SRC, formed in 2017, is trying to boost the kingdom’s secondary mortgage market. It aims to refinance 20 percent of Saudi Arabia’s mortgage market over the next decade. The agreements, signed on the sidelines of the Financial Sector Conference in Riyadh last week, included deals to buy portfolio of mortgages from Saudi British Bank and Banque Saudi Fransi, it said in a statement.
Saudi Real Estate Refinance Co (SRC), a subsidiary of sovereign wealth fund Public Investment Fund, said on Saturday it had agreed to buy 750 million riyals ($200 million) worth of mortgages from local banks and mortgage financing companies.
The move comes after SRC recently completed a 750 million riyal sukuk issue with multiple tenors, under a programme that allows it to issue up to 11 billion riyals of local currency denominated Islamic bonds.
SRC, formed in 2017, is trying to boost the kingdom’s secondary mortgage market. It aims to refinance 20 percent of Saudi Arabia’s mortgage market over the next decade. The agreements, signed on the sidelines of the Financial Sector Conference in Riyadh last week, included deals to buy portfolio of mortgages from Saudi British Bank and Banque Saudi Fransi, it said in a statement.
MIDEAST STOCKS- #SaudiArabia up on banks, other Gulf shares lower - Reuters
MIDEAST STOCKS-Saudi Arabia up on banks, other Gulf shares lower - Reuters:
Stocks in Saudi Arabia gained on Sunday after lenders such as Riyad Bank rose due to strong earnings, while markets across the rest of the Gulf region traded lower.
Saudi stocks were up 0.23 percent, boosted by Riyad Bank, which added 2 percent, while Al Rajhi Bank gained 0.1 percent. Both banks posted a jump in first-quarter net profits last week.
However, Samba Financial Group was down 1.42 percent after last week it said its profits fell 7.4 percent year-on-year, missing analyst estimates.
Stocks in Saudi Arabia gained on Sunday after lenders such as Riyad Bank rose due to strong earnings, while markets across the rest of the Gulf region traded lower.
Saudi stocks were up 0.23 percent, boosted by Riyad Bank, which added 2 percent, while Al Rajhi Bank gained 0.1 percent. Both banks posted a jump in first-quarter net profits last week.
However, Samba Financial Group was down 1.42 percent after last week it said its profits fell 7.4 percent year-on-year, missing analyst estimates.
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