Abraaj’s Arif Naqvi to be released on bail as US government says it hasn’t found all his wealth - The National:
A high court judge in Britain on Friday approved terms to free the Abraaj founder Arif Naqvi on £15 million bail while he fights extradition to the United States to face fraud charges.
The US government lodged an appeal on Wednesday after a lower court granted Mr Naqvi, 58, bail on 24-hour curfew on condition that he remain at his west London home and wear an electronic tag.
The Pakistani national is accused of conspiracy and fraud over the collapse of his Dubai-based private equity company the Abraaj Group. If found guilty, the maximum sentence he could serve is 45 years imprisonment. Mr Naqvi denies any wrongdoing.
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Friday 3 May 2019
Distancing themselves from an oil-led economy
Distancing themselves from an oil-led economy:
The oil-exporting GCC states have long been in the middle of diversifying their economies from oil revenues. It has been the central theme of their major reforms, thus hoping to not only make themselves immune from oil price fluctuations, but also ensure that they are prepared for a future after fossil fuels.
Their economic resilience and sustainable development heavily depend on how successful they are in the shift from a volatile oil-based economy and how ready they are in a world without oil. In 2016, the UAE Government hosted a two-day retreat in Dubai to produce a road map for this era. Federal and local authorities highlighted the need to bring their attention to human capital, knowledge, and innovation to strengthen the non-oil industry.
The efforts already yielded positive results. According to the Economic Insight report by ICAEW, the UAE’s non-oil sector now accounts for almost 70 per cent of its economy and expected to increase by 3.6 per cent in 2019. Elsewhere in the GCC, other member states have similar initiatives.
The oil-exporting GCC states have long been in the middle of diversifying their economies from oil revenues. It has been the central theme of their major reforms, thus hoping to not only make themselves immune from oil price fluctuations, but also ensure that they are prepared for a future after fossil fuels.
Their economic resilience and sustainable development heavily depend on how successful they are in the shift from a volatile oil-based economy and how ready they are in a world without oil. In 2016, the UAE Government hosted a two-day retreat in Dubai to produce a road map for this era. Federal and local authorities highlighted the need to bring their attention to human capital, knowledge, and innovation to strengthen the non-oil industry.
The efforts already yielded positive results. According to the Economic Insight report by ICAEW, the UAE’s non-oil sector now accounts for almost 70 per cent of its economy and expected to increase by 3.6 per cent in 2019. Elsewhere in the GCC, other member states have similar initiatives.
Increased buying interests of foreign institutions lifts index
Increased buying interests of foreign institutions lifts index:
The Qatar Stock Exchange settled near 10,500 levels this week which saw the listed companies cumulatively report net profit of QR10.49bn in the first three months of this year.
Although 58% of the traded constituents were in the red, the market was overall bullish this week which saw Gulf International Services (GIS) bag six orders for rigs from the North Oil Company project.
Increased buying interests of foreign institutions largely drove the key index up 0.28% this week which saw Nebras Power take a 60% equity stake in Tunisia's Carthage Power Company.
The Qatar Stock Exchange settled near 10,500 levels this week which saw the listed companies cumulatively report net profit of QR10.49bn in the first three months of this year.
Although 58% of the traded constituents were in the red, the market was overall bullish this week which saw Gulf International Services (GIS) bag six orders for rigs from the North Oil Company project.
Increased buying interests of foreign institutions largely drove the key index up 0.28% this week which saw Nebras Power take a 60% equity stake in Tunisia's Carthage Power Company.
Oil edges up after strong economic data, but ends week lower - Reuters
Oil edges up after strong economic data, but ends week lower - Reuters:
Oil prices inched up on Friday as strong U.S. economic data boosted demand sentiment and as production losses in sanctions-hit Iran and Venezuela tightened the market.
Still, oil futures recorded weekly declines after a jump in U.S. crude inventories reported this week.
Brent crude oil futures settled at $70.85 a barrel, rising 10 cents. The global benchmark shed 2.6% for the week, breaking a five-week winning streak.
U.S. West Texas Intermediate (WTI) crude futures closed at $61.94 a barrel, up 13 cents, while losing about 3% percent during the week, its second straight weekly decline.
Oil prices inched up on Friday as strong U.S. economic data boosted demand sentiment and as production losses in sanctions-hit Iran and Venezuela tightened the market.
Still, oil futures recorded weekly declines after a jump in U.S. crude inventories reported this week.
Brent crude oil futures settled at $70.85 a barrel, rising 10 cents. The global benchmark shed 2.6% for the week, breaking a five-week winning streak.
U.S. West Texas Intermediate (WTI) crude futures closed at $61.94 a barrel, up 13 cents, while losing about 3% percent during the week, its second straight weekly decline.
COLUMN-Oil market will tighten sharply when U.S. refineries return from maintenance: Kemp - Reuters
COLUMN-Oil market will tighten sharply when U.S. refineries return from maintenance: Kemp - Reuters:
U.S. commercial crude oil inventories have been rising in recent weeks, which some observers have interpreted as evidence the global oil market is adequately supplied and blame for a sudden decline in oil prices.
But this narrative cannot explain the steep backwardation in futures prices for global grades such as Brent, which is usually associated with a market that is significantly under-supplied.
In fact, U.S. commercial inventories have been rising much less than normal for the time of year - even though refiners are undertaking heavy maintenance, which would otherwise have resulted in a larger stock build.
U.S. commercial crude oil inventories have been rising in recent weeks, which some observers have interpreted as evidence the global oil market is adequately supplied and blame for a sudden decline in oil prices.
But this narrative cannot explain the steep backwardation in futures prices for global grades such as Brent, which is usually associated with a market that is significantly under-supplied.
In fact, U.S. commercial inventories have been rising much less than normal for the time of year - even though refiners are undertaking heavy maintenance, which would otherwise have resulted in a larger stock build.
Oil Prices Head for First Back-to-Back Weekly Loss of 2019 - Bloomberg
Oil Prices Head for First Back-to-Back Weekly Loss of 2019 - Bloomberg:
Oil rallied as a forecast-topping U.S. jobs report signaled a strong domestic economy to go along with the supply disruptions squeezing global crude markets.
Futures in New York rose as much as 1.2 percent on Friday, paring a weekly loss, after unemployment unexpectedly fell to a fresh 49-year low in the world’s biggest economy amid cooler-than-projected wage gains. The report helped reverse investors’ unease after a big surge in American crude production earlier this week.
“The demand picture has been one possible weak leg for petroleum and this helps to alleviate that concern,” said Kyle Cooper, a consultant at Ion Energy Group in Houston. “You’ve got minimal-to-moderate inflation with solid growth – that’s your Goldilocks economy.”
Oil rallied as a forecast-topping U.S. jobs report signaled a strong domestic economy to go along with the supply disruptions squeezing global crude markets.
Futures in New York rose as much as 1.2 percent on Friday, paring a weekly loss, after unemployment unexpectedly fell to a fresh 49-year low in the world’s biggest economy amid cooler-than-projected wage gains. The report helped reverse investors’ unease after a big surge in American crude production earlier this week.
“The demand picture has been one possible weak leg for petroleum and this helps to alleviate that concern,” said Kyle Cooper, a consultant at Ion Energy Group in Houston. “You’ve got minimal-to-moderate inflation with solid growth – that’s your Goldilocks economy.”
#Abraaj Founder Arif Naqvi Gets Record $20 Million Bail in London - Bloomberg
Abraaj Founder Arif Naqvi Gets Record $20 Million Bail in London - Bloomberg:
Arif Naqvi, the founder of buyout fund Abraaj Group, can be released on conditional bail of 15 million pounds ($20 million) after a London judge dismissed prosecutors’ bid to keep him in custody while he fights extradition to the U.S.
Naqvi -- who’s caught up in an American fraud probe -- was granted bail by Judge Michael Supperstone on Friday. The bond amount is “the largest security ever ordered in the U.K.,” according to Naqvi’s filings for Friday’s hearing.
During his bail, the 58-year-old must surrender his travel documents, wear an electronic tag and stay in his London home. Naqvi’s bail conditions “effectively amount to house arrest,” the judge said.
Arif Naqvi, the founder of buyout fund Abraaj Group, can be released on conditional bail of 15 million pounds ($20 million) after a London judge dismissed prosecutors’ bid to keep him in custody while he fights extradition to the U.S.
Naqvi -- who’s caught up in an American fraud probe -- was granted bail by Judge Michael Supperstone on Friday. The bond amount is “the largest security ever ordered in the U.K.,” according to Naqvi’s filings for Friday’s hearing.
During his bail, the 58-year-old must surrender his travel documents, wear an electronic tag and stay in his London home. Naqvi’s bail conditions “effectively amount to house arrest,” the judge said.
Oil Prices Head for First Back-to-Back Weekly Loss of 2019 - Bloomberg
Oil Prices Head for First Back-to-Back Weekly Loss of 2019 - Bloomberg:
From an attempted coup in Venezuela to tougher sanctions on Iran and disrupted flows from Russia, global oil markets have been roiled by a host of supply crises over the past week.
The surprising result is that prices have kept sliding.
Crude’s indifference to the array of threats reflects that world markets remain comfortably supplied for the time being, largely thanks to the ongoing surge in American production, which hit a new record last week. Prices are also capped by worries about the global economy, with manufacturing data from China and the U.S. showing that growth remains fragile.
From an attempted coup in Venezuela to tougher sanctions on Iran and disrupted flows from Russia, global oil markets have been roiled by a host of supply crises over the past week.
The surprising result is that prices have kept sliding.
Crude’s indifference to the array of threats reflects that world markets remain comfortably supplied for the time being, largely thanks to the ongoing surge in American production, which hit a new record last week. Prices are also capped by worries about the global economy, with manufacturing data from China and the U.S. showing that growth remains fragile.
#Abraaj Investor Hamilton Lane Among Several Warned About Fund - Bloomberg
Abraaj Investor Hamilton Lane Among Several Warned About Fund - Bloomberg:
Five months before the events that led to the collapse of Abraaj Group, the biggest in private equity history, one of the firm’s investors was warned about putting more money in, according to an email chain reviewed by Bloomberg News.
At least two senior executives of Hamilton Lane Inc. received an anonymous email in September 2017 advising them not to invest in a planned Abraaj global emerging-markets fund, the emails show. The warning was also sent to several other institutions that were potential investors in the fund, said a person with knowledge of the matter, who asked not to be identified because it is private.
The email, with the subject line “Abraaj Fund 6 Warning,” alleged that the buyout firm was overvaluing holdings to falsely suggest they were profitable and to boost its track record. In addition, the email claimed, most of the deals in the pipeline for the planned fund-raising were “dead” and Abraaj knew it.
Five months before the events that led to the collapse of Abraaj Group, the biggest in private equity history, one of the firm’s investors was warned about putting more money in, according to an email chain reviewed by Bloomberg News.
At least two senior executives of Hamilton Lane Inc. received an anonymous email in September 2017 advising them not to invest in a planned Abraaj global emerging-markets fund, the emails show. The warning was also sent to several other institutions that were potential investors in the fund, said a person with knowledge of the matter, who asked not to be identified because it is private.
The email, with the subject line “Abraaj Fund 6 Warning,” alleged that the buyout firm was overvaluing holdings to falsely suggest they were profitable and to boost its track record. In addition, the email claimed, most of the deals in the pipeline for the planned fund-raising were “dead” and Abraaj knew it.
#Iran's Oil Minister Warns That OPEC Collapse Is Likely - Bloomberg
Iran's Oil Minister Warns That OPEC Collapse Is Likely - Bloomberg:
Iran’s oil minister warned that OPEC is in danger of collapse as some nations seek to undermine their fellow members, an apparent reference to Saudi Arabia’s pledge to fill the supply gap created by U.S. sanctions on Iranian exports.
"Iran is a member of OPEC for its interests and any threat from member states won’t go unanswered," Bijan Namdar Zanganeh said after a meeting with OPEC Secretary General Mohammad Barkindo in Tehran on Thursday, according to the oil ministry’s Shana news agency.
His comments come as U.S. President Donald Trump tries to cut the Islamic Republic’s oil exports to zero, backed by a promise from Saudi Arabia and its Gulf allies to increase production to ensure the squeeze doesn’t create a supply shortage.
Iran’s oil minister warned that OPEC is in danger of collapse as some nations seek to undermine their fellow members, an apparent reference to Saudi Arabia’s pledge to fill the supply gap created by U.S. sanctions on Iranian exports.
"Iran is a member of OPEC for its interests and any threat from member states won’t go unanswered," Bijan Namdar Zanganeh said after a meeting with OPEC Secretary General Mohammad Barkindo in Tehran on Thursday, according to the oil ministry’s Shana news agency.
His comments come as U.S. President Donald Trump tries to cut the Islamic Republic’s oil exports to zero, backed by a promise from Saudi Arabia and its Gulf allies to increase production to ensure the squeeze doesn’t create a supply shortage.
#UAE banks invested $9.53bln in Q1-2019 | ZAWYA MENA Edition
UAE banks invested $9.53bln in Q1-2019 | ZAWYA MENA Edition:
UAE banks invested up to AED35 bn in Q1-2019, bringing to AED367.8 bn their aggregate investments, a growth of 10.5 percent as compared to the end of 2018, figures by the Central Bank of United Arab Emirates indicated.
Debt-bonds accounted for the lion's share of banking investments, standing at AED25.4 bn, ratcheting investment in this instrument to AED236.3 bn by the end of March, up 12 percent as compared to December 2018.
Bonds-held-to-maturity came second and valued AED89.7 bn by the end of Q1, with other funds distributed across other investment vehicles.
UAE banks invested up to AED35 bn in Q1-2019, bringing to AED367.8 bn their aggregate investments, a growth of 10.5 percent as compared to the end of 2018, figures by the Central Bank of United Arab Emirates indicated.
Debt-bonds accounted for the lion's share of banking investments, standing at AED25.4 bn, ratcheting investment in this instrument to AED236.3 bn by the end of March, up 12 percent as compared to December 2018.
Bonds-held-to-maturity came second and valued AED89.7 bn by the end of Q1, with other funds distributed across other investment vehicles.
#Saudi oil output may rise in June, but U.S. may not get the extra exports it wants - Reuters
Saudi oil output may rise in June, but U.S. may not get the extra exports it wants - Reuters:
Saudi Arabia’s oil output may edge up in June, sources familiar with the kingdom’s policy said, but the extra crude may be used for domestic power generation rather than providing the boost to exports that Washington has been seeking.
The sources said any rise in Saudi output would still be within its output quota in a pact on supply cuts agreed between OPEC and its allies, a group known as OPEC+.
Production from the world’s top crude exporter in May is expected to be around 10 million barrels per day (bpd), slightly higher than April but still below its quota under the OPEC-led pact of 10.3 million bpd, industry sources said.
Saudi Arabia’s oil output may edge up in June, sources familiar with the kingdom’s policy said, but the extra crude may be used for domestic power generation rather than providing the boost to exports that Washington has been seeking.
The sources said any rise in Saudi output would still be within its output quota in a pact on supply cuts agreed between OPEC and its allies, a group known as OPEC+.
Production from the world’s top crude exporter in May is expected to be around 10 million barrels per day (bpd), slightly higher than April but still below its quota under the OPEC-led pact of 10.3 million bpd, industry sources said.
Oil prices poised for weekly drop as U.S. output climbs - Reuters
Oil prices poised for weekly drop as U.S. output climbs - Reuters:
Oil prices were on track for sharp weekly declines on Friday as surging U.S. output countered production losses in sanctions-hit Iran and Venezuela.
Brent crude oil futures were at $70.08 a barrel at 0835 GMT, down 67 cents and set for their first weekly loss after five weeks of gains.
U.S. West Texas Intermediate (WTI) crude futures were down 41 cents at $61.40, poised for a second straight weekly decline.
Oil prices were on track for sharp weekly declines on Friday as surging U.S. output countered production losses in sanctions-hit Iran and Venezuela.
Brent crude oil futures were at $70.08 a barrel at 0835 GMT, down 67 cents and set for their first weekly loss after five weeks of gains.
U.S. West Texas Intermediate (WTI) crude futures were down 41 cents at $61.40, poised for a second straight weekly decline.
Norway’s $1tn oil fund rebounds to third best quarterly returns | Financial Times
Norway’s $1tn oil fund rebounds to third best quarterly returns | Financial Times:
Norway’s $1.1tn oil fund recorded the third best quarter in its 23-year history as the world’s largest sovereign wealth investor rebounded from a difficult end to last year.
The oil fund returned 9.1 per cent in the first quarter — behind the second and third quarters of 2009 — while in krone terms it was the investor’s largest ever increase with NKr738bn ($84bn).
Apple, Microsoft and Amazon made the biggest positive contributions to the fund’s equity performance with technology companies the best performing sector. Equities, which the fund is boosting to 70 per cent of its portfolio, returned 12.2 per cent.
Norway’s $1.1tn oil fund recorded the third best quarter in its 23-year history as the world’s largest sovereign wealth investor rebounded from a difficult end to last year.
The oil fund returned 9.1 per cent in the first quarter — behind the second and third quarters of 2009 — while in krone terms it was the investor’s largest ever increase with NKr738bn ($84bn).
Apple, Microsoft and Amazon made the biggest positive contributions to the fund’s equity performance with technology companies the best performing sector. Equities, which the fund is boosting to 70 per cent of its portfolio, returned 12.2 per cent.