Drake & Scull chairman and board member resign amid investigation - The National:
Drake & Scull International said its chairman and another board member resigned, as the UAE’s financial regulator investigates the ailing Dubai contractor’s finances after years of losses.
Chairman Obaid Bin Touq – who was appointed to the post in December – and board member Khamid Buamim resigned from the company, according to a filing to the Dubai Financial Market, where its shares were traded.
DSI thanked the chairman and board member “for their efforts during the tenure of their membership of the board” in the statement. The board of directors will elect new members soon, it added.
Tuesday 7 May 2019
What Souq-Amazon and Uber-Careem deals mean for Middle East’s online platforms
What Souq-Amazon and Uber-Careem deals mean for Middle East’s online platforms:
A number of start-ups in the Middle East are being bought up by global giants, and while some might fear the loss of a home-grown identity, experts say the deals are recognition that local companies know their markets best.
It all started in 2009 with Yahoo!’s acquisition of Jordanian company Maktoob.com. The Amman-based online services company, founded in 1998, was known for being the first Arabic-English email service provider. It later became Yahoo!’s official arm in the Middle East and North Africa (MENA).
In 2017, Amazon purchased the e-commerce platform Souq.com for $580 million. In the UAE, the website was recently rebranded as Amazon.ae, although parts of the Middle East, such as Egypt and Saudi Arabia, were not included in the rebranding.
A number of start-ups in the Middle East are being bought up by global giants, and while some might fear the loss of a home-grown identity, experts say the deals are recognition that local companies know their markets best.
It all started in 2009 with Yahoo!’s acquisition of Jordanian company Maktoob.com. The Amman-based online services company, founded in 1998, was known for being the first Arabic-English email service provider. It later became Yahoo!’s official arm in the Middle East and North Africa (MENA).
In 2017, Amazon purchased the e-commerce platform Souq.com for $580 million. In the UAE, the website was recently rebranded as Amazon.ae, although parts of the Middle East, such as Egypt and Saudi Arabia, were not included in the rebranding.
#Qatar Petroleum issues tender for North Field LNG storage and loading facilities - The Peninsula Qatar
Qatar Petroleum issues tender for North Field LNG storage and loading facilities - The Peninsula Qatar: Qatar Petroleum issued an Invitation to Tender Package for Engineering, Procurement and Construction (EPC) to expand its common lean liquefied natural gas (LNG) storage, and the loading and export facilities for its North Field Expansion (NFE) Project.
The tender package, which was issued to world-class contractors, calls for the engineering, procurement and construction of three LNG storage tanks; compressors to recover tank boil off gas during storage and jetty boil off gas during LNG vessel loading; LNG rundown lines from the LNG trains to the LNG storage area; two additional LNG berths with an option for a third LNG berth; and loading and return lines from the LNG berths to the tanks.
Commenting on the announcement, HE Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum, said: “Issuing this tender package reflects Qatar Petroleum’s unique contracting strategy approach for the North Field Expansion Project. Under this strategy, we have identified the need for multiple EPC packages that can match the execution expertise in the EPC contracting community for specific scopes of work while providing the opportunity for multiple EPC contractors to participate. The issuance of this tender package will culminate in the award of this EPC contract by February 2020.”
The tender package, which was issued to world-class contractors, calls for the engineering, procurement and construction of three LNG storage tanks; compressors to recover tank boil off gas during storage and jetty boil off gas during LNG vessel loading; LNG rundown lines from the LNG trains to the LNG storage area; two additional LNG berths with an option for a third LNG berth; and loading and return lines from the LNG berths to the tanks.
Commenting on the announcement, HE Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the President & CEO of Qatar Petroleum, said: “Issuing this tender package reflects Qatar Petroleum’s unique contracting strategy approach for the North Field Expansion Project. Under this strategy, we have identified the need for multiple EPC packages that can match the execution expertise in the EPC contracting community for specific scopes of work while providing the opportunity for multiple EPC contractors to participate. The issuance of this tender package will culminate in the award of this EPC contract by February 2020.”
Oil Traders See Little in Real World to Justify Slump in Crude - Bloomberg
Oil Traders See Little in Real World to Justify Slump in Crude - Bloomberg:
Whether it’s in the North Sea, West Africa or the Persian Gulf, traders of millions of barrels of crude are seeing little to justify the past fortnight’s slump in oil futures.
Crude on exchanges in New York and London fell as much as 7 percent since late April despite the temporary halt of a pipeline delivering millions of barrels a month of Russian oil to Europe’s refiners. The cessation added to a long list of supply disruptions and curtailments elsewhere in the world.
“There is no true sign of weakness in the physical market,” said Olivier Jakob, managing director of consultant Petromatrix GmbH in Zug, Switzerland. “You have lower exports from Venezuela, you’ve got sanctions form Iran, Libya which is still a risk.”
Whether it’s in the North Sea, West Africa or the Persian Gulf, traders of millions of barrels of crude are seeing little to justify the past fortnight’s slump in oil futures.
Crude on exchanges in New York and London fell as much as 7 percent since late April despite the temporary halt of a pipeline delivering millions of barrels a month of Russian oil to Europe’s refiners. The cessation added to a long list of supply disruptions and curtailments elsewhere in the world.
“There is no true sign of weakness in the physical market,” said Olivier Jakob, managing director of consultant Petromatrix GmbH in Zug, Switzerland. “You have lower exports from Venezuela, you’ve got sanctions form Iran, Libya which is still a risk.”
#UAE Token Sales Make It a Global Crypto Capital - Bloomberg
U.A.E. Token Sales Make It a Global Crypto Capital - Bloomberg:
Coming from way behind, the United Arab Emirates has just emerged as the world’s capital for sales of digital tokens, accounting for more than a fourth of all funds raised in offerings this year through early April, according to CoinSchedule.
Sales in U.A.E. amassed more than $210 million to take the crown from the market’s longtime leader, the U.S., which tumbled from first place for 2018 to seventh in recent months, according to data posted last week by CoinSchedule, which tracks the token market. Last year, the U.A.E. didn’t rank among the top 10 countries by funds raised in token sales, the data show.
“We are seeing the continuation of the move away from the USA due to regulatory concerns,” Alex Buelau, chief executive officer of CoinSchedule, said in an email. U.S. regulators have been cracking down on initial coin offerings, known as ICOs, that they say should’ve been registered as securities.
Coming from way behind, the United Arab Emirates has just emerged as the world’s capital for sales of digital tokens, accounting for more than a fourth of all funds raised in offerings this year through early April, according to CoinSchedule.
Sales in U.A.E. amassed more than $210 million to take the crown from the market’s longtime leader, the U.S., which tumbled from first place for 2018 to seventh in recent months, according to data posted last week by CoinSchedule, which tracks the token market. Last year, the U.A.E. didn’t rank among the top 10 countries by funds raised in token sales, the data show.
“We are seeing the continuation of the move away from the USA due to regulatory concerns,” Alex Buelau, chief executive officer of CoinSchedule, said in an email. U.S. regulators have been cracking down on initial coin offerings, known as ICOs, that they say should’ve been registered as securities.
Oil Futures Sink Into Trade-War Turmoil as Brent Slips Below $70 - Bloomberg
Oil Futures Sink Into Trade-War Turmoil as Brent Slips Below $70 - Bloomberg:
Oil prices tumbled, joining a slide in global equity markets as President Donald Trump’s latest tariff threats raised the stakes in the U.S.-China trade war.
Brent crude futures fell 1.9 percent on Tuesday, slipping below $70 a barrel for the first time in over a month, as investors fretted about potential damage to the global economy. Even as negotiators prepped for a new round of talks in Washington, Trump’s remarks about raising levies on Chinese goods prompted retaliatory threats from the Asian nation.
“There are concerns about the broad economic environment,” said Michael Tran, a commodity strategist at RBC Capital Markets LLC in New York. “Clearly, the biggest risk to the oil market right now is the Trump factor coupled with macro headwinds.”
Oil prices tumbled, joining a slide in global equity markets as President Donald Trump’s latest tariff threats raised the stakes in the U.S.-China trade war.
Brent crude futures fell 1.9 percent on Tuesday, slipping below $70 a barrel for the first time in over a month, as investors fretted about potential damage to the global economy. Even as negotiators prepped for a new round of talks in Washington, Trump’s remarks about raising levies on Chinese goods prompted retaliatory threats from the Asian nation.
“There are concerns about the broad economic environment,” said Michael Tran, a commodity strategist at RBC Capital Markets LLC in New York. “Clearly, the biggest risk to the oil market right now is the Trump factor coupled with macro headwinds.”
Oil Is Drawn Into Trade-War Turmoil as Price Tumbles Toward $60 - Bloomberg
Oil Is Drawn Into Trade-War Turmoil as Price Tumbles Toward $60 - Bloomberg:
Oil tumbled toward $60 a barrel, joining a slide in global equity markets as President Donald Trump’s latest tariff threats raised the stakes in the U.S.-China trade war.
Futures in New York fell as much as 2.6 percent on Tuesday, as investors fretted about the potential damage to the global economy. Even as negotiators planned a new round of talks in Washington, Trump threatened to raise levies on Chinese goods on Friday and the Chinese were said to be planning retaliatory measures of their own.
“There are concerns about the broad economic environment," said Michael Tran, a commodity strategist at RBC Capital Markets LLC in New York. “Clearly the biggest risk to the oil market right now is the Trump factor coupled with macro headwinds."
Oil tumbled toward $60 a barrel, joining a slide in global equity markets as President Donald Trump’s latest tariff threats raised the stakes in the U.S.-China trade war.
Futures in New York fell as much as 2.6 percent on Tuesday, as investors fretted about the potential damage to the global economy. Even as negotiators planned a new round of talks in Washington, Trump threatened to raise levies on Chinese goods on Friday and the Chinese were said to be planning retaliatory measures of their own.
“There are concerns about the broad economic environment," said Michael Tran, a commodity strategist at RBC Capital Markets LLC in New York. “Clearly the biggest risk to the oil market right now is the Trump factor coupled with macro headwinds."
#Abraaj Founder Naqvi Hasn't Paid $20 Million Bail, Stays in Jail - Bloomberg
Abraaj Founder Naqvi Hasn't Paid $20 Million Bail, Stays in Jail - Bloomberg:
Arif Naqvi, the Abraaj Group founder caught up in a U.S. fraud probe, is still being held in U.K. jail days after he won bail -- because he hasn’t paid the 15 million-pound ($20 million) security bond.
Naqvi can be released once he pays, a London court ruled on Friday. But Westminster Magistrates’ Court confirmed on Tuesday that he’s yet to come up with the funds and is still in custody. His spokeswoman and lawyer didn’t immediately comment.
The bail bond is the largest of its kind ever ordered in the U.K., Naqvi said in his filings for Friday’s hearing. The conditions -- which include staying in his London home and wearing an electronic tag -- “effectively amount to house arrest,” the judge said in court.
Arif Naqvi, the Abraaj Group founder caught up in a U.S. fraud probe, is still being held in U.K. jail days after he won bail -- because he hasn’t paid the 15 million-pound ($20 million) security bond.
Naqvi can be released once he pays, a London court ruled on Friday. But Westminster Magistrates’ Court confirmed on Tuesday that he’s yet to come up with the funds and is still in custody. His spokeswoman and lawyer didn’t immediately comment.
The bail bond is the largest of its kind ever ordered in the U.K., Naqvi said in his filings for Friday’s hearing. The conditions -- which include staying in his London home and wearing an electronic tag -- “effectively amount to house arrest,” the judge said in court.
#Saudi Aramco Is Said to Consider Shale Investment With Equinor - Bloomberg
Saudi Aramco Is Said to Consider Shale Investment With Equinor - Bloomberg:
Saudi Aramco is weighing a potential investment in Norwegian oil company Equinor ASA’s U.S. shale operations in what could be the energy giant’s first ever overseas venture for gas exploration, according to people familiar with the matter.
The state-run company, known officially as Saudi Arabian Oil Co., is considering investing in Equinor’s Marcellus shale operations through a joint venture or by buying a stake, the people said, asking not to be identified because the talks are private. Aramco may also invest with other oil companies to gain access to U.S. shale gas, the people said.
No final decisions have been made and the deliberations between Aramco and Equinor are at an early stage, they said. Representatives for Aramco and Equinor declined to comment.
Saudi Aramco is weighing a potential investment in Norwegian oil company Equinor ASA’s U.S. shale operations in what could be the energy giant’s first ever overseas venture for gas exploration, according to people familiar with the matter.
The state-run company, known officially as Saudi Arabian Oil Co., is considering investing in Equinor’s Marcellus shale operations through a joint venture or by buying a stake, the people said, asking not to be identified because the talks are private. Aramco may also invest with other oil companies to gain access to U.S. shale gas, the people said.
No final decisions have been made and the deliberations between Aramco and Equinor are at an early stage, they said. Representatives for Aramco and Equinor declined to comment.
#AbuDhabi Commercial Bank’s first quarter earnings drop, shares plunge | ZAWYA MENA Edition
Abu Dhabi Commercial Bank’s first quarter earnings drop, shares plunge | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank reported a drop in first quarter (Q1) net profit for 2019, triggering a retreat in the company’s shares.
The bank reported a net profit of 1.15 billion United Arab Emirates dirhams ($313.08 million) for Q1 2019, compared to 1.21 billion dirhams in Q1 2018, a 4.96 percent drop.
Net interest and Islamic financing income amounted to 1.71 billion dirhams in Q1 2019, compared to 1.83 billion dirhams in Q1 2018, a 6.56 percent drop.
Abu Dhabi Commercial Bank reported a drop in first quarter (Q1) net profit for 2019, triggering a retreat in the company’s shares.
The bank reported a net profit of 1.15 billion United Arab Emirates dirhams ($313.08 million) for Q1 2019, compared to 1.21 billion dirhams in Q1 2018, a 4.96 percent drop.
Net interest and Islamic financing income amounted to 1.71 billion dirhams in Q1 2019, compared to 1.83 billion dirhams in Q1 2018, a 6.56 percent drop.
#Bahrain ditches subsidy reform plan as political tensions simmer - Reuters
Bahrain ditches subsidy reform plan as political tensions simmer - Reuters:
Bahrain has scrapped a plan to reform its cumbersome subsidy system, officials said on Tuesday, as authorities worry it could trigger more unrest in the Gulf island and complicate government efforts to repair public finances.
The plan, which has been under discussion between the government and parliament since last year, aimed to overhaul allowances paid to Bahrainis squeezed by years of austerity and rising prices.
Bahrain, which does not possess the bountiful oil reserves of other wealthy Gulf neighbours, has had to introduce austerity measures in recent years such as a value-added tax and higher prices for water and power consumption.
Bahrain has scrapped a plan to reform its cumbersome subsidy system, officials said on Tuesday, as authorities worry it could trigger more unrest in the Gulf island and complicate government efforts to repair public finances.
The plan, which has been under discussion between the government and parliament since last year, aimed to overhaul allowances paid to Bahrainis squeezed by years of austerity and rising prices.
Bahrain, which does not possess the bountiful oil reserves of other wealthy Gulf neighbours, has had to introduce austerity measures in recent years such as a value-added tax and higher prices for water and power consumption.
Column: Oil prices correct lower on hedge fund sales - Reuters
Column: Oil prices correct lower on hedge fund sales - Reuters:
Hedge fund managers have started to increase their bearish oil positions for the first time since the start of the year, amid signs the previous bull run had become overextended and prices were ripe for a correction.
Hedge funds and other money managers were net sellers of the six major petroleum futures and options contracts in the week to April 30, bringing to an end a record-breaking 15-week run of net purchases.
Portfolio managers cut their net long position by 17 million barrels last week, after having raised it by a total of 609 million since Jan. 8 (tmsnrt.rs/2LpJ0Ek).
Hedge fund managers have started to increase their bearish oil positions for the first time since the start of the year, amid signs the previous bull run had become overextended and prices were ripe for a correction.
Hedge funds and other money managers were net sellers of the six major petroleum futures and options contracts in the week to April 30, bringing to an end a record-breaking 15-week run of net purchases.
Portfolio managers cut their net long position by 17 million barrels last week, after having raised it by a total of 609 million since Jan. 8 (tmsnrt.rs/2LpJ0Ek).
EIA raises forecast for 2019, 2020 U.S. crude output growth - Reuters
EIA raises forecast for 2019, 2020 U.S. crude output growth - Reuters:
U.S. crude oil production is expected to rise by 1.49 million barrels per day (bpd) in 2019 to average 12.45 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday, up from its previous forecast for a rise of 1.43 million bpd.
The EIA forecast output in 2020 will rise by 930,000 bpd to 13.38 million bpd, a bigger increase than it previously estimated.
The latest forecast puts the United States on track to reach the 13-million-bpd milestone in the fourth quarter of 2019.
U.S. crude oil production is expected to rise by 1.49 million barrels per day (bpd) in 2019 to average 12.45 million bpd, the U.S. Energy Information Administration (EIA) said on Tuesday, up from its previous forecast for a rise of 1.43 million bpd.
The EIA forecast output in 2020 will rise by 930,000 bpd to 13.38 million bpd, a bigger increase than it previously estimated.
The latest forecast puts the United States on track to reach the 13-million-bpd milestone in the fourth quarter of 2019.
MIDEAST STOCKS-Oil, geopolitical tensions weigh on #Saudi; most Gulf markets down - Reuters
MIDEAST STOCKS-Oil, geopolitical tensions weigh on Saudi; most Gulf markets down - Reuters:
Saudi Arabia's stock market fell on Tuesday for the fourth
straight day, weakened by a combination of lower oil prices and geopolitical
tension in the Middle East, while Egypt's blue-chip index was buoyed by its
largest lender.
The Saudi index was down 0.8 percent. The country's second-largest
lender by assets Al Rajhi Bank lost 1.1 percent and National
Commercial Bank shed 2.3 percent.
Alawwal Bank eased 1.8 percent after reporting a fall in its
first-quarter net profit due to higher costs.
Saudi Arabia's stock market fell on Tuesday for the fourth
straight day, weakened by a combination of lower oil prices and geopolitical
tension in the Middle East, while Egypt's blue-chip index was buoyed by its
largest lender.
The Saudi index was down 0.8 percent. The country's second-largest
lender by assets Al Rajhi Bank lost 1.1 percent and National
Commercial Bank shed 2.3 percent.
Alawwal Bank eased 1.8 percent after reporting a fall in its
first-quarter net profit due to higher costs.
Emaar Development's first quarter earnings drop, shares follow | ZAWYA MENA Edition
Emaar Development's first quarter earnings drop, shares follow | ZAWYA MENA Edition:
Emaar Development, the United Arab Emirates based property development arm of Emaar Properties, reported a drop in first quarter earnings (Q1), triggering a retreat in the company’s shares on Tuesday.
Emaar Development’s Q1 2019 net profit amounted to 751 million UAE dirhams, compared to 819 million dirhams in Q1 2018, an 8.3 percent drop, trailing SICO Bank’s estimate of 902 million dirhams.
“While the earnings was a miss on our estimate; key takeaway for us is the surge in 1Q19 off-plan sales with rising penetration from non-UAE residents, which we think would be driven by rising Chinese appetite,” Ayub Ansari, senior analyst at SICO, told Zawya by email.
Emaar Development, the United Arab Emirates based property development arm of Emaar Properties, reported a drop in first quarter earnings (Q1), triggering a retreat in the company’s shares on Tuesday.
Emaar Development’s Q1 2019 net profit amounted to 751 million UAE dirhams, compared to 819 million dirhams in Q1 2018, an 8.3 percent drop, trailing SICO Bank’s estimate of 902 million dirhams.
“While the earnings was a miss on our estimate; key takeaway for us is the surge in 1Q19 off-plan sales with rising penetration from non-UAE residents, which we think would be driven by rising Chinese appetite,” Ayub Ansari, senior analyst at SICO, told Zawya by email.
#Saudi Aramco Said to Give Extra Oil to Crude-Hungry Asian Buyers - Bloomberg
Saudi Aramco Said to Give Extra Oil to Crude-Hungry Asian Buyers - Bloomberg:
Saudi Arabia is set to supply more crude to oil-starved Asian refiners, and extract a heavy price for it.
State-run producer Saudi Aramco will sell additional cargoes to customers in the world’s biggest oil-consuming region for June loading, according to people with knowledge of the matter. The shipments will be on top of those scheduled under long-term crude contracts, they said, asking not to be identified because the information is confidential.
While the extra supplies will alleviate a squeeze driven by U.S. sanctions on Iran and Venezuela as well as unexpected disruptions from Russia to Nigeria, the refiners face a costly bill. Aramco raised its official selling price for June cargoes of its flagship Arab Light crude to the biggest premium to Middle East benchmark prices in 11 months. The cost of the Arab Medium variety was set at highest since December 2013, while Arab Heavy was increased to the most in over six years.
Saudi Arabia is set to supply more crude to oil-starved Asian refiners, and extract a heavy price for it.
State-run producer Saudi Aramco will sell additional cargoes to customers in the world’s biggest oil-consuming region for June loading, according to people with knowledge of the matter. The shipments will be on top of those scheduled under long-term crude contracts, they said, asking not to be identified because the information is confidential.
While the extra supplies will alleviate a squeeze driven by U.S. sanctions on Iran and Venezuela as well as unexpected disruptions from Russia to Nigeria, the refiners face a costly bill. Aramco raised its official selling price for June cargoes of its flagship Arab Light crude to the biggest premium to Middle East benchmark prices in 11 months. The cost of the Arab Medium variety was set at highest since December 2013, while Arab Heavy was increased to the most in over six years.
Foreigners Keep Buying #Saudi Shares: Read This on a Loop - Bloomberg
Foreigners Keep Buying Saudi Shares: Read This on a Loop - Bloomberg:
Qualified foreign investors from outside the Gulf were net buyers of Saudi shares by yet another record last week. It’s the third time that’s happened this year, and it probably won’t be the last.
Foreigners were the main purchasers of shares in Riyadh in the five days ended May 2, during the second phase of FTSE Russell’s inclusion of the kingdom in its emerging-market benchmarks. Buying activity should escalate later this month, when MSCI Inc. follows suit, since its indexes reference a much broader fund universe.
Those making money as foreigners arrive are mostly Saudi. Local individual and institutional investors have been net sellers almost every week this year. The institutional group includes government-related entities and mutual funds tied to the government, which stepped up purchases during an October crisis triggered by the killing of journalist Jamal Khashoggi in Turkey. As of May 2, they held about 67 percent of local shares.
Qualified foreign investors from outside the Gulf were net buyers of Saudi shares by yet another record last week. It’s the third time that’s happened this year, and it probably won’t be the last.
Foreigners were the main purchasers of shares in Riyadh in the five days ended May 2, during the second phase of FTSE Russell’s inclusion of the kingdom in its emerging-market benchmarks. Buying activity should escalate later this month, when MSCI Inc. follows suit, since its indexes reference a much broader fund universe.
Those making money as foreigners arrive are mostly Saudi. Local individual and institutional investors have been net sellers almost every week this year. The institutional group includes government-related entities and mutual funds tied to the government, which stepped up purchases during an October crisis triggered by the killing of journalist Jamal Khashoggi in Turkey. As of May 2, they held about 67 percent of local shares.
Global sukuk market to hit $2.7trln by 2030: Franklin Templeton | ZAWYA MENA Edition
Global sukuk market to hit $2.7trln by 2030: Franklin Templeton | ZAWYA MENA Edition:
The global sukuk market is set to grow at a compound annual rate of around 15 percent to reach $2.7 trillion by 2030, according to investment management firm Franklin Templeton.
In a media briefing at its Dubai office last week, the company’s chief investment officer of global sukuk and Middle East and North Africa (MENA) head of fixed income, Mohieddine Kronfol, described its forecast as a “base case”, stating that growth could be faster if there is more widespread adoption of shariah-compliant debt instruments, particularly in more mature markets. However, it could also slow if forecasted growth in emerging markets such as Nigeria, Pakistan and Turkey fails to materialise, Kronfol said.
Global sukuk issuance stood at over $477 billion at the end of last year, but has slowed somewhat in recent years following a boom in the early part of this century. Figures published by ratings agency S&P Global in January described sukuk issuance as ‘mild’ in 2018, as the total amount of sukuk issued dropped by 5 percent to $114.8 billion. It forecast issuance of $105 billion-$115 billion for 2019, although this prediction was made assuming an average Brent oil price of $55 per barrel.
The global sukuk market is set to grow at a compound annual rate of around 15 percent to reach $2.7 trillion by 2030, according to investment management firm Franklin Templeton.
In a media briefing at its Dubai office last week, the company’s chief investment officer of global sukuk and Middle East and North Africa (MENA) head of fixed income, Mohieddine Kronfol, described its forecast as a “base case”, stating that growth could be faster if there is more widespread adoption of shariah-compliant debt instruments, particularly in more mature markets. However, it could also slow if forecasted growth in emerging markets such as Nigeria, Pakistan and Turkey fails to materialise, Kronfol said.
Global sukuk issuance stood at over $477 billion at the end of last year, but has slowed somewhat in recent years following a boom in the early part of this century. Figures published by ratings agency S&P Global in January described sukuk issuance as ‘mild’ in 2018, as the total amount of sukuk issued dropped by 5 percent to $114.8 billion. It forecast issuance of $105 billion-$115 billion for 2019, although this prediction was made assuming an average Brent oil price of $55 per barrel.
UPDATE 1- #UAE's Majid Al Futtaim markets green dollar sukuk - Reuters
UPDATE 1-UAE's Majid Al Futtaim markets green dollar sukuk - Reuters:
Majid Al Futtaim, a UAE-based developer and shopping mall operator, has started marketing 10-year U.S. dollar-denominated “green” Islamic bonds, or sukuk, at about 245 basis points over mid-swaps, a document showed on Tuesday.
The proceeds of the sukuk will back environmentally-friendly projects in areas such as renewable energy and sustainable water management, according to the document drawn up by one of the banks leading the deal.
Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of sukuk beyond its traditional markets in Asia and the Middle East to include ethical investors in Western countries.
Majid Al Futtaim, a UAE-based developer and shopping mall operator, has started marketing 10-year U.S. dollar-denominated “green” Islamic bonds, or sukuk, at about 245 basis points over mid-swaps, a document showed on Tuesday.
The proceeds of the sukuk will back environmentally-friendly projects in areas such as renewable energy and sustainable water management, according to the document drawn up by one of the banks leading the deal.
Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of sukuk beyond its traditional markets in Asia and the Middle East to include ethical investors in Western countries.
Oil mixed as U.S.-China trade war drags on prices, while sanctions keep markets tense - Reuters
Oil mixed as U.S.-China trade war drags on prices, while sanctions keep markets tense - Reuters:
Oil prices were mixed on Tuesday, pressured by concerns that the escalating Sino-U.S. trade dispute could slow the global economy, while U.S. sanctions on crude exporters Iran and Venezuela helped keep the market on edge.
Brent crude oil futures were at $71.12 per barrel at 0710 GMT, 12 cents, or 0.2 percent, below their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $62.30 per barrel, 5 cents above their last settlement.
Oil prices were mixed on Tuesday, pressured by concerns that the escalating Sino-U.S. trade dispute could slow the global economy, while U.S. sanctions on crude exporters Iran and Venezuela helped keep the market on edge.
Brent crude oil futures were at $71.12 per barrel at 0710 GMT, 12 cents, or 0.2 percent, below their last close.
U.S. West Texas Intermediate (WTI) crude futures were at $62.30 per barrel, 5 cents above their last settlement.
MIDEAST STOCKS-Industrials lift #Qatar, most major Gulf markets rise - Agricultural Commodities - Reuters
MIDEAST STOCKS-Industrials lift Qatar, most major Gulf markets rise - Agricultural Commodities - Reuters:
Qatar’s stock index inched up on Tuesday, lifted in part by Qatar Electricity and Water Co, while most major Middle Eastern markets rose in early trading.
The Qatari index rose 0.1 percent, with Qatar Electricity and Water Co gaining 1.2 percent after its unit signed an amendment to increase water desalination capacity by 61.5 million gallons per day.
Qatar Insurance Co snapped a three-day losing streak to gain 2 percent, while Industries Qatar rose 0.8 percent.
Qatar’s stock index inched up on Tuesday, lifted in part by Qatar Electricity and Water Co, while most major Middle Eastern markets rose in early trading.
The Qatari index rose 0.1 percent, with Qatar Electricity and Water Co gaining 1.2 percent after its unit signed an amendment to increase water desalination capacity by 61.5 million gallons per day.
Qatar Insurance Co snapped a three-day losing streak to gain 2 percent, while Industries Qatar rose 0.8 percent.
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