Saudi and Kuwaiti money returns to London property despite Brexit:
Property broker Knight Frank estimates there is as much as £40 billion targeting real estate assets in London this year despite a sharp retreat by Gulf-based investors in 2018.
Preliminary data for the first quarter has seen two transactions worth almost $171 million put Saudi Arabia and Kuwait back on the London commercial property investment leader board for 2019.
Taking into account the UK’s planned departure from the EU, which has dented confidence in some property sectors, Knight Frank expects the central London commercial property market to remain robust and supported by strong letting demand for prime property.
Tuesday 30 April 2019
#Abraaj executive bailed in New York on $10m bond - The National
Abraaj executive bailed in New York on $10m bond - The National:
Mustafa Abdel-Wadood, the former managing partner of private equity company the Abraaj Group, was granted bail by a New York judge on Monday after he put up two homes as security for a $10 million bond.
Mr Abdel-Wadood will go on trial on November 4 and will be confined to a Manhattan apartment, thought to be one of the homes he used to cover the bail requirements.
A Justice Department spokesman told The National the bail package had been approved.
Mustafa Abdel-Wadood, the former managing partner of private equity company the Abraaj Group, was granted bail by a New York judge on Monday after he put up two homes as security for a $10 million bond.
Mr Abdel-Wadood will go on trial on November 4 and will be confined to a Manhattan apartment, thought to be one of the homes he used to cover the bail requirements.
A Justice Department spokesman told The National the bail package had been approved.
#Abraaj is ‘version two of Lehman Brothers’: Air Arabia CEO
Abraaj is ‘version two of Lehman Brothers’: Air Arabia CEO:
After having to pay over Dh1 billion in impairments on the now-bankrupt Abraaj, the head of Air Arabia called the private equity firm “version two of Lehman Brothers,” the financial services firm that filed for the largest bankruptcy in American history in 2008.
Air Arabia, which had $336 million (Dh1.2 billion) invested in Abraaj funds, reported in mid-February Dh609.5 million in losses for the full-year 2018, compared to a profit of Dh630.6 million a year earlier. The losses came as the Sharjah-based company paid Dh1.1 billion in impairment costs on its exposure to Abraaj.
Adel Ali, chief executive officer of Air Arabia, said on Tuesday that the airline reported the full impairments on that exposure in 2018, meaning that it won’t report any further costs related to Abraaj this year.
After having to pay over Dh1 billion in impairments on the now-bankrupt Abraaj, the head of Air Arabia called the private equity firm “version two of Lehman Brothers,” the financial services firm that filed for the largest bankruptcy in American history in 2008.
Air Arabia, which had $336 million (Dh1.2 billion) invested in Abraaj funds, reported in mid-February Dh609.5 million in losses for the full-year 2018, compared to a profit of Dh630.6 million a year earlier. The losses came as the Sharjah-based company paid Dh1.1 billion in impairment costs on its exposure to Abraaj.
Adel Ali, chief executive officer of Air Arabia, said on Tuesday that the airline reported the full impairments on that exposure in 2018, meaning that it won’t report any further costs related to Abraaj this year.
QFC showcases opportunities available in Doha for Fintech firms on Qatar Day in London
QFC showcases opportunities available in Doha for Fintech firms on Qatar Day in London:
The Qatar Financial Center (QFC) has showcased the country's Fintech strategy and the opportunities available for the UK and Qatar Fintech firms, apart from the growing scope for asset management firms in Doha.
This was highlighted by the QFC at the recently held Qatar Day, which was recently hosted by the City of London Corporation, in partnership with the UK’s Department for International Trade and Qatar Central Bank (QCB).
The inaugural event saw around 120 C-level executives and senior representatives from the UK and Qatar’s key national and financial services institutions that included Qatar Development Bank (QDB), QCB and Qatar Financial Markets Authority come together in the city of London.
The Qatar Financial Center (QFC) has showcased the country's Fintech strategy and the opportunities available for the UK and Qatar Fintech firms, apart from the growing scope for asset management firms in Doha.
This was highlighted by the QFC at the recently held Qatar Day, which was recently hosted by the City of London Corporation, in partnership with the UK’s Department for International Trade and Qatar Central Bank (QCB).
The inaugural event saw around 120 C-level executives and senior representatives from the UK and Qatar’s key national and financial services institutions that included Qatar Development Bank (QDB), QCB and Qatar Financial Markets Authority come together in the city of London.
Oil pares gains as fears ease on Venezuelan exports - Reuters
Oil pares gains as fears ease on Venezuelan exports - Reuters:
Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.
Oil prices pared their gains on Tuesday, after global benchmark Brent crude rose above $73 a barrel, as the market grew less worried that a rebellion against Venezuelan President Nicolas Maduro would hit the country’s crude exports.
Brent crude futures hit a session high of $73.27 per barrel and settled 76 cents, or 1.1 percent, higher at $72.80. Last week, Brent hit a six-month high above $75.
U.S. crude futures closed at $63.91, up 41 cents, or 0.7 percent, on the day, after hitting a session high at $64.75.
Prices rose after Venezuelan opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains after the government said state-run oil company PDVSA’s operations were not disrupted and top military leaders remained loyal.
Young Arabs say jobs and living costs are their biggest concerns | Financial Times
Young Arabs say jobs and living costs are their biggest concerns | Financial Times:
Young Arabs say the rising cost of living and unemployment are the biggest issues facing the Middle East, according to region’s largest survey of youth opinion.
Some 56 per cent of respondents cited the cost of living and 45 per cent chose joblessness as their top concern in the 2019 Arab Youth Survey, now in its 11th year.
“The mother of all priorities for the region is tackling youth unemployment,” said Jihad Azour, International Monetary Fund regional director, at Tuesday’s launch of the survey. “All economic policies will fail if we don’t reduce unemployment.”
Young Arabs say the rising cost of living and unemployment are the biggest issues facing the Middle East, according to region’s largest survey of youth opinion.
Some 56 per cent of respondents cited the cost of living and 45 per cent chose joblessness as their top concern in the 2019 Arab Youth Survey, now in its 11th year.
“The mother of all priorities for the region is tackling youth unemployment,” said Jihad Azour, International Monetary Fund regional director, at Tuesday’s launch of the survey. “All economic policies will fail if we don’t reduce unemployment.”
UPDATE 1- #Saudi's Flynas considering upgrading Airbus A320neo order - Reuters
UPDATE 1-Saudi's Flynas considering upgrading Airbus A320neo order - Reuters:
Saudi Arabian airline Flynas is considering upgrading part of its existing order for 80 Airbus A320neo jets to the larger A321 model, its chief executive said on Tuesday.
The airline, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm Kingdom Holding, ordered the A320neos worth $8.6 billion in 2017.
“We (have) started evaluating and are in discussion with Airbus,” Bander Abdulrahman al-Mohanna said.
Saudi Arabian airline Flynas is considering upgrading part of its existing order for 80 Airbus A320neo jets to the larger A321 model, its chief executive said on Tuesday.
The airline, part owned by Saudi billionaire Prince Alwaleed Bin Talal’s firm Kingdom Holding, ordered the A320neos worth $8.6 billion in 2017.
“We (have) started evaluating and are in discussion with Airbus,” Bander Abdulrahman al-Mohanna said.
#Oman readies U.S. dollar bond sale – sources - Reuters
Oman readies U.S. dollar bond sale – sources - Reuters:
Oman is preparing a sale of U.S. dollar-denominated bonds, two sources familiar with the matter said, as the sultanate seeks to take advantage of improved conditions across emerging markets to finance its budget deficit.
It would be its first international issuance of 2019.
Less wealthy than its Gulf neighbours, Oman’s state coffers have been depleted by a slump in oil prices over the past few years and the country has increasingly relied on external borrowing to refill widening deficits.
Oman is preparing a sale of U.S. dollar-denominated bonds, two sources familiar with the matter said, as the sultanate seeks to take advantage of improved conditions across emerging markets to finance its budget deficit.
It would be its first international issuance of 2019.
Less wealthy than its Gulf neighbours, Oman’s state coffers have been depleted by a slump in oil prices over the past few years and the country has increasingly relied on external borrowing to refill widening deficits.
Oil tops $73 per barrel then pares gains as Venezuela's Maduro claims support - Reuters
Oil tops $73 per barrel then pares gains as Venezuela's Maduro claims support - Reuters:
Oil prices rose on Tuesday above $73 a barrel but then eased off the session high after Venezuela’s president Nicolas Maduro said military leaders remained loyal to his government despite an attempted coup that could further threaten the OPEC producer’s oil exports.
Prices rose after opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains when Maduro countered with a statement military leaders he had spoken to showed him “their total loyalty.”
Reuters witnesses said several armed men in military uniforms accompanying Guaido clashed with soldiers supporting Maduro at a protest outside a Caracas air base. But witnesses said the incident fizzled out.
Oil prices rose on Tuesday above $73 a barrel but then eased off the session high after Venezuela’s president Nicolas Maduro said military leaders remained loyal to his government despite an attempted coup that could further threaten the OPEC producer’s oil exports.
Prices rose after opposition leader Juan Guaido called for military backing to end Maduro’s rule, but pared gains when Maduro countered with a statement military leaders he had spoken to showed him “their total loyalty.”
Reuters witnesses said several armed men in military uniforms accompanying Guaido clashed with soldiers supporting Maduro at a protest outside a Caracas air base. But witnesses said the incident fizzled out.
OPEC oil output hits four-year low in April on Iran, Venezuela: Reuters survey - Reuters
OPEC oil output hits four-year low in April on Iran, Venezuela: Reuters survey - Reuters:
OPEC oil supply hit a four-year low in April, a Reuters survey found, due to further involuntary declines in sanctions-hit Iran and Venezuela and output restraint by top exporter Saudi Arabia.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.23 million barrels per day (bpd) this month, the survey showed, down 90,000 bpd from March and the lowest OPEC total since 2015, the Reuters survey showed.
The survey suggests that Saudi Arabia and its Gulf allies are maintaining even larger supply cuts than called for by OPEC’s latest deal, shrugging off pressure from U.S. President Donald Trump. On Friday, Trump said he had called OPEC to tell the group to bring down prices.
OPEC oil supply hit a four-year low in April, a Reuters survey found, due to further involuntary declines in sanctions-hit Iran and Venezuela and output restraint by top exporter Saudi Arabia.
The 14-member Organization of the Petroleum Exporting Countries pumped 30.23 million barrels per day (bpd) this month, the survey showed, down 90,000 bpd from March and the lowest OPEC total since 2015, the Reuters survey showed.
The survey suggests that Saudi Arabia and its Gulf allies are maintaining even larger supply cuts than called for by OPEC’s latest deal, shrugging off pressure from U.S. President Donald Trump. On Friday, Trump said he had called OPEC to tell the group to bring down prices.
MIDEAST STOCKS-Bank dents #AbuDhabi as cement makers strengthen #Saudi index - Reuters
MIDEAST STOCKS-Bank dents Abu Dhabi as cement makers strengthen Saudi index - Reuters:
The Abu Dhabi stock market fell sharply
on Tuesday, dragged down by First Abu Dhabi Bank(FAB),
while the Saudi index was lifted by its cement producers.
Abu Dhabi's index dropped 1.4 percent as First Abu
Dhabi, the UAE's largest bank, shed 2.4 percent after reporting
first-quarter results. The lender posted a rise in first-quarter
profit but customer deposits and net interest margins fell while
expenses rose.
"Overall numbers were in line, though it would have been
good to see a beat, as the stock trades at rich valuations,"
said Vrajesh Bhandari, senior portfolio manager at Al Mal
Capital said.
The Abu Dhabi stock market fell sharply
on Tuesday, dragged down by First Abu Dhabi Bank(FAB),
while the Saudi index was lifted by its cement producers.
Abu Dhabi's index dropped 1.4 percent as First Abu
Dhabi, the UAE's largest bank, shed 2.4 percent after reporting
first-quarter results. The lender posted a rise in first-quarter
profit but customer deposits and net interest margins fell while
expenses rose.
"Overall numbers were in line, though it would have been
good to see a beat, as the stock trades at rich valuations,"
said Vrajesh Bhandari, senior portfolio manager at Al Mal
Capital said.
Berkshire Hathaway Eyes #Dubai's Distressed Real Estate Market - Bloomberg
Berkshire Hathaway Eyes Dubai's Distressed Real Estate Market - Bloomberg:
Warren Buffett’s real estate brokerage sees value in Dubai’s flagging property market and wants to entice wealthy investors.
Real estate prices, which have been falling in Dubai since a recent peak in 2014, offer good value for investors looking to pick up distressed assets, Phil Sheridan, the chief executive officer of Berkshire Hathaway HomeServices Gulf Properties, said in a Bloomberg TV interview. “Many high-net worth investors are viewing the market as good value in terms of the declines over recent years.”
Berkshire Hathaway’s real estate brokerage, which had a hand in more closed real estate deals in the U.S. than any other residential brokerage last year, this week announced the opening of its Dubai office. Buffett is expanding in the city as the emirate’s property market defies all predictions of a rebound. S&P Global Ratings said last month it expects prices to fall as much as 10 percent this year.
Warren Buffett’s real estate brokerage sees value in Dubai’s flagging property market and wants to entice wealthy investors.
Real estate prices, which have been falling in Dubai since a recent peak in 2014, offer good value for investors looking to pick up distressed assets, Phil Sheridan, the chief executive officer of Berkshire Hathaway HomeServices Gulf Properties, said in a Bloomberg TV interview. “Many high-net worth investors are viewing the market as good value in terms of the declines over recent years.”
Berkshire Hathaway’s real estate brokerage, which had a hand in more closed real estate deals in the U.S. than any other residential brokerage last year, this week announced the opening of its Dubai office. Buffett is expanding in the city as the emirate’s property market defies all predictions of a rebound. S&P Global Ratings said last month it expects prices to fall as much as 10 percent this year.
#AbuDhabi Said to Weigh Multi-Billion Dollar Gas Pipeline Deal - Bloomberg
Abu Dhabi Said to Weigh Multi-Billion Dollar Gas Pipeline Deal - Bloomberg:
Abu Dhabi National Oil Co. is seeking to raise billions of dollars from its natural-gas pipelines, months after the state-owned explorer got a $4 billion investment in its oil infrastructure assets, according to people familiar with the matter.
Adnoc, as the company is known, is speaking to financial advisers about bringing in international investors for the pipelines, which could help raise $5 billion or more, one of the people said, asking not to be identified as the matter is private. Adnoc is yet to hire banks for the plans and talks are in the early stages, the people said.
The company may structure the investment so bidders lease assets for a period of time, similar to February’s oil-infrastructure deal with KKR & Co. and BlackRock Inc., the people said. Adnoc’s entire gas pipeline business could be worth more than $15 billion, the people said. No final decisions have been made and the Abu Dhabi oil giant may decide against a deal, they said.
Abu Dhabi National Oil Co. is seeking to raise billions of dollars from its natural-gas pipelines, months after the state-owned explorer got a $4 billion investment in its oil infrastructure assets, according to people familiar with the matter.
Adnoc, as the company is known, is speaking to financial advisers about bringing in international investors for the pipelines, which could help raise $5 billion or more, one of the people said, asking not to be identified as the matter is private. Adnoc is yet to hire banks for the plans and talks are in the early stages, the people said.
The company may structure the investment so bidders lease assets for a period of time, similar to February’s oil-infrastructure deal with KKR & Co. and BlackRock Inc., the people said. Adnoc’s entire gas pipeline business could be worth more than $15 billion, the people said. No final decisions have been made and the Abu Dhabi oil giant may decide against a deal, they said.
Air Arabia CEO says needs to put in order for over 100 aircraft | ZAWYA MENA Edition
Air Arabia CEO says needs to put in order for over 100 aircraft | ZAWYA MENA Edition:
Sharjah-based Air Arabia needs to put in an order for around 100 aircraft or more in three to four months, its chief executive Adel Abdullah Ali said on Tuesday.
The airline will have discussions with Airbus and Boeing about its order this week, he said at the Arabian travel market exhibition in Dubai.
Sharjah-based Air Arabia needs to put in an order for around 100 aircraft or more in three to four months, its chief executive Adel Abdullah Ali said on Tuesday.
The airline will have discussions with Airbus and Boeing about its order this week, he said at the Arabian travel market exhibition in Dubai.
Dark clouds form Gulf's low-cost carriers, but horizon remains bright | ZAWYA MENA Edition
Dark clouds form Gulf's low-cost carriers, but horizon remains bright | ZAWYA MENA Edition:
Competition is stiffening in the Gulf’s budget airline sector following the recent launch of state-backed low-cost carriers (LCCs) in Saudi Arabia and Oman, while the blockade of Qatar has halted some of the region’s most profitable routes as regional passenger growth has slowed.
Rising fuel costs are weighing on earnings, with per-seat profitability among the lowest globally. Yet the longer-term outlook for Gulf LCCs remains bright, analysts say, with the cost-conscious segment of the Middle East’s aviation market relatively small compared with other regions.
“We’re seeing the same customer reaction in the Gulf as elsewhere – people are willing to use these services and the airlines are getting a good response,” said John Strickland, a director at London’s JLS Consulting.
Competition is stiffening in the Gulf’s budget airline sector following the recent launch of state-backed low-cost carriers (LCCs) in Saudi Arabia and Oman, while the blockade of Qatar has halted some of the region’s most profitable routes as regional passenger growth has slowed.
Rising fuel costs are weighing on earnings, with per-seat profitability among the lowest globally. Yet the longer-term outlook for Gulf LCCs remains bright, analysts say, with the cost-conscious segment of the Middle East’s aviation market relatively small compared with other regions.
“We’re seeing the same customer reaction in the Gulf as elsewhere – people are willing to use these services and the airlines are getting a good response,” said John Strickland, a director at London’s JLS Consulting.
#Saudi's Falih will stick to global oil deal, pact could be extended: RIA - Reuters
Saudi's Falih will stick to global oil deal, pact could be extended: RIA - Reuters:
Saudi Arabia will not rush to boost oil supply to make up for a loss of Iranian crude due to U.S. sanctions, and will stick to a global deal on oil production, which could be extended to the end of 2019, Energy Minister Khalid al-Falih told RIA news agency.
The United States decided last week not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected. Oil prices rose on concerns of a tighter oil market.
Falih was speaking to Russia’s RIA news agency on Tuesday, without specifying whether, or by how much, output levels could change after June.
Saudi Arabia will not rush to boost oil supply to make up for a loss of Iranian crude due to U.S. sanctions, and will stick to a global deal on oil production, which could be extended to the end of 2019, Energy Minister Khalid al-Falih told RIA news agency.
The United States decided last week not to renew exemptions from sanctions against Iran granted last year to buyers of Iranian oil, taking a tougher line than expected. Oil prices rose on concerns of a tighter oil market.
Falih was speaking to Russia’s RIA news agency on Tuesday, without specifying whether, or by how much, output levels could change after June.
Oil prices firm as #SaudiArabia says OPEC may extend supply cuts - Reuters
Oil prices firm as Saudi Arabia says OPEC may extend supply cuts - Reuters:
Oil prices rose 1 percent on Tuesday after Saudi Arabia said a deal between producers to withhold output could be extended beyond June to cover all of 2019.
The comments by Saudi Energy Minister Khalid al-Falih came despite pressure from U.S. President Donald Trump to raise output to make up for a supply shortfall expected from tightening U.S. sanctions against Iran.
Brent crude futures had risen to $72.72 per barrel by 1010 GMT, up 68 cents or 0.94 percent from their last close.
U.S. crude futures were at $64.10, up 60 cents or 0.95 percent.
Oil prices rose 1 percent on Tuesday after Saudi Arabia said a deal between producers to withhold output could be extended beyond June to cover all of 2019.
The comments by Saudi Energy Minister Khalid al-Falih came despite pressure from U.S. President Donald Trump to raise output to make up for a supply shortfall expected from tightening U.S. sanctions against Iran.
Brent crude futures had risen to $72.72 per barrel by 1010 GMT, up 68 cents or 0.94 percent from their last close.
U.S. crude futures were at $64.10, up 60 cents or 0.95 percent.
MIDEAST STOCKS-Lender FAB weighs on #AbuDhabi; cement producers lift #Saudi - Reuters
MIDEAST STOCKS-Lender FAB weighs on Abu Dhabi; cement producers lift Saudi - Reuters:
The Abu Dhabi stock market fell on Tuesday for the fifth straight day, dragged down by First Abu Dhabi Bank, the largest bank in the United Arab Emirates, while strong earnings by some cement producers boosted Saudi Arabia’s index.
The Abu Dhabi index slipped 1 percent, with First Abu Dhabi Bank shedding 2.4 percent after reporting its first-quarter results. The lender reported a rise in its first-quarter profit, but saw a fall in customer deposits, net interest margins and a rise in expenses.
Saudi Arabia’s main index rose 0.7 percent, with 13 of 14 cement producers gaining after Yamama Cement and City Cement’s first-quarter results.
The Abu Dhabi stock market fell on Tuesday for the fifth straight day, dragged down by First Abu Dhabi Bank, the largest bank in the United Arab Emirates, while strong earnings by some cement producers boosted Saudi Arabia’s index.
The Abu Dhabi index slipped 1 percent, with First Abu Dhabi Bank shedding 2.4 percent after reporting its first-quarter results. The lender reported a rise in its first-quarter profit, but saw a fall in customer deposits, net interest margins and a rise in expenses.
Saudi Arabia’s main index rose 0.7 percent, with 13 of 14 cement producers gaining after Yamama Cement and City Cement’s first-quarter results.
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