DAE posts 3% rise in first-quarter profit - The National:
Dubai Aerospace Enterprise, the Middle East's biggest aircraft lessor, posted a 3 per cent increase in first-quarter profit as revenues rose.
DAE's net income for the three months ending March 31 reached $99 million (Dh363.6m) compared to $96m in the same period a year ago, the lessor said on Thursday. First-quarter revenues climbed 2.2 per cent to $360m year-on-year.
The company did not provide a comment on reasons for first-quarter earnings growth.
Thursday, 9 May 2019
Dana Gas evaluates options on alternative listing
Dana Gas evaluates options on alternative listing:
Sharjah-based Dana Gas said on Thursday it regularly evaluates options for optimum capital structure including listing of its shares on alternative exchanges.
Dana Gas shares are currently listed on the Abu Dhabi Securities Exchange. The markets will be informed with any updates with relation to this in due course, the company said in a regulatory filing.
The company reported a 150 per cent increase in net profit in the first quarter of 2019 to $35 million (Dh128 million) due to an increase in production in the Kurdistan Region of Iraq (KRI) as well as lower financing costs.
Sharjah-based Dana Gas said on Thursday it regularly evaluates options for optimum capital structure including listing of its shares on alternative exchanges.
Dana Gas shares are currently listed on the Abu Dhabi Securities Exchange. The markets will be informed with any updates with relation to this in due course, the company said in a regulatory filing.
The company reported a 150 per cent increase in net profit in the first quarter of 2019 to $35 million (Dh128 million) due to an increase in production in the Kurdistan Region of Iraq (KRI) as well as lower financing costs.
Real estate weakness hurts GCC’s economic outlook
Real estate weakness hurts GCC’s economic outlook:
Weakness in the real estate market has both reflected and contributed to weak economic growth in much of the GCC, particularly the UAE, Qatar, and Saudi Arabia, according to the Institute of International Finance (IIF).
“After consciously targeting real estate investment as a key plank of their diversification strategies, these countries have experienced a persistent drag on overall growth due to the real estate slowdown since the 2014 plunge in oil prices, and a mounting challenge to financial stability,” said Jonah Rosenthal, Associate Economist at IIF.
Prices have fallen largely in Dubai and Saudi Arabia since 2014; Qatar’s prices have seen some temporary upturns but remain well below their pre-rift levels. The weakness of the GCC real estate market in recent years stands in stark contrast to emerging markets as a whole.
Weakness in the real estate market has both reflected and contributed to weak economic growth in much of the GCC, particularly the UAE, Qatar, and Saudi Arabia, according to the Institute of International Finance (IIF).
“After consciously targeting real estate investment as a key plank of their diversification strategies, these countries have experienced a persistent drag on overall growth due to the real estate slowdown since the 2014 plunge in oil prices, and a mounting challenge to financial stability,” said Jonah Rosenthal, Associate Economist at IIF.
Prices have fallen largely in Dubai and Saudi Arabia since 2014; Qatar’s prices have seen some temporary upturns but remain well below their pre-rift levels. The weakness of the GCC real estate market in recent years stands in stark contrast to emerging markets as a whole.
#Saudi economy warms up as private spending rises
Saudi economy warms up as private spending rises:
Rising private sector consumption and government fiscal stimulus measures are expected to give a boost to the Saudi economy, according to new research from Bloomberg Economics.
It expects non-oil growth to average 2.6 percent this year, up from 2.1 percent in 2018, helped by fiscal stimulus, a lower drag from monetary policy and more spending by the public.
But it is not year clear if the pickup will help to reduce the budgetary deficit.
Rising private sector consumption and government fiscal stimulus measures are expected to give a boost to the Saudi economy, according to new research from Bloomberg Economics.
It expects non-oil growth to average 2.6 percent this year, up from 2.1 percent in 2018, helped by fiscal stimulus, a lower drag from monetary policy and more spending by the public.
But it is not year clear if the pickup will help to reduce the budgetary deficit.
#Qatar shares extend losses amid increased selling pressure
Qatar shares extend losses amid increased selling pressure:
The Qatar Stock Exchange on Thursday fell for the fifth straight session by more than 96 points to settle a tad above 10,000 levels, mainly dragged by real estate, transport, insurance and banks.
Foreign institutions’ substantially increased selling pressure led the 20-stock Qatar Index to fall about 1% to 10,027.17 points.
A Kamco technical analysis suggests that medium-term and long-term investors can stay in the market with a stop-loss below 10,200 points and 9,700 points, respectively.
The Qatar Stock Exchange on Thursday fell for the fifth straight session by more than 96 points to settle a tad above 10,000 levels, mainly dragged by real estate, transport, insurance and banks.
Foreign institutions’ substantially increased selling pressure led the 20-stock Qatar Index to fall about 1% to 10,027.17 points.
A Kamco technical analysis suggests that medium-term and long-term investors can stay in the market with a stop-loss below 10,200 points and 9,700 points, respectively.
#Qatar international reserves may scale up to $38.1bn in 2023: FocusEconomics
Qatar international reserves may scale up to $38.1bn in 2023: FocusEconomics:
Qatar’s international reserves will scale up to $38.1bn in 2023 from $33.8bn this year, FocusEconomics has said in its latest country report.
The international reserves will cover 9.6 months of imports in 2023 as against 11.7 months this year, the researcher said.
Qatar’s fiscal balance as a percentage of GDP is set to rise to 4.5% in 2023 from an estimated 0.5% this year, FocusEconomics said.
Qatar’s international reserves will scale up to $38.1bn in 2023 from $33.8bn this year, FocusEconomics has said in its latest country report.
The international reserves will cover 9.6 months of imports in 2023 as against 11.7 months this year, the researcher said.
Qatar’s fiscal balance as a percentage of GDP is set to rise to 4.5% in 2023 from an estimated 0.5% this year, FocusEconomics said.
Shares in #Saudi’s Middle East Healthcare plunge 9% on lower earnings | ZAWYA MENA Edition
Shares in Saudi’s Middle East Healthcare plunge 9% on lower earnings | ZAWYA MENA Edition:
Saudi Arabia’s Middle East Healthcare company (MEAHCO), the owner and operator of Saudi German Hospitals, reported a drop in first quarter earnings for 2019, triggering a sharp drop in the company’s shares on Thursday.
The company reported a net profit after zakat and tax of 14.59 million Saudi riyals ($3.89 million) in Q1 2019, compared to 87.13 million riyals in Q1 2018, an 83.25 percent drop.
“Middle East healthcare 1Q19 results disappointed despite lowered expectations,” Asim Bukhtiar, head of research, capital markets at Saudi Fransi Capital told Zawya by email.
Saudi Arabia’s Middle East Healthcare company (MEAHCO), the owner and operator of Saudi German Hospitals, reported a drop in first quarter earnings for 2019, triggering a sharp drop in the company’s shares on Thursday.
The company reported a net profit after zakat and tax of 14.59 million Saudi riyals ($3.89 million) in Q1 2019, compared to 87.13 million riyals in Q1 2018, an 83.25 percent drop.
“Middle East healthcare 1Q19 results disappointed despite lowered expectations,” Asim Bukhtiar, head of research, capital markets at Saudi Fransi Capital told Zawya by email.
Oil rebounds as Trump says letter revives China trade hopes - Reuters
Oil rebounds as Trump says letter revives China trade hopes - Reuters:
Brent oil futures settled slightly higher on Thursday, rebounding from a drop after U.S. President Donald Trump revived investor hopes that the United States might not raise tariffs on Chinese imports, a step that could hit economic growth and crimp oil demand.
The trade dispute between the world’s two biggest economies and a sharp drop in global equity markets has hit oil prices, outweighing geopolitical tensions and supply cuts that have lowered global supplies from Latin America, Africa and the Middle East.
Brent settled 2 cents higher at $70.39 a barrel, rebounding from a session low of $69.40 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled down 42 cents at $61.70 per barrel.
Brent oil futures settled slightly higher on Thursday, rebounding from a drop after U.S. President Donald Trump revived investor hopes that the United States might not raise tariffs on Chinese imports, a step that could hit economic growth and crimp oil demand.
The trade dispute between the world’s two biggest economies and a sharp drop in global equity markets has hit oil prices, outweighing geopolitical tensions and supply cuts that have lowered global supplies from Latin America, Africa and the Middle East.
Brent settled 2 cents higher at $70.39 a barrel, rebounding from a session low of $69.40 a barrel. U.S. West Texas Intermediate (WTI) crude futures settled down 42 cents at $61.70 per barrel.
Heatmap Shows #Saudi Economy Humming at Pre-Purge Clip: Graphic - Bloomberg
Heatmap Shows Saudi Economy Humming at Pre-Purge Clip: Graphic - Bloomberg:
Saudi Arabia’s economy suffered after the detention of hundreds of royals, billionaires and government officials at the Ritz-Carlton hotel in Riyadh on corruption charges in 2017. But Bloomberg Economics’ heat map of economic activity shows non-oil growth bouncing back to pre-purge levels. BE expects non-oil growth to average 2.6% this year, up from 2.1% in 2018, helped by fiscal stimulus, a lower drag from monetary policy and improved private consumption.
Saudi Arabia’s economy suffered after the detention of hundreds of royals, billionaires and government officials at the Ritz-Carlton hotel in Riyadh on corruption charges in 2017. But Bloomberg Economics’ heat map of economic activity shows non-oil growth bouncing back to pre-purge levels. BE expects non-oil growth to average 2.6% this year, up from 2.1% in 2018, helped by fiscal stimulus, a lower drag from monetary policy and improved private consumption.
TPG signs deal to takeover management of #Abraaj's healthcare fund | ZAWYA MENA Edition
TPG signs deal to takeover management of Abraaj's healthcare fund | ZAWYA MENA Edition:
U.S. private equity firm TPG said on Thursday it has signed a definitive agreement to takeover the management of a healthcare fund, previously managed by collapsed private equity firm Abraaj.
The healthcare fund assets will form part of a new fund called Evercare Health Fund, it said in a statement.
Abraaj, once the Middle East and North Africa's biggest buyout fund, had a row with investors including the Bill & Melinda Gates Foundation and the International Finance Corp over the use of money in a $1 billion healthcare fund.
U.S. private equity firm TPG said on Thursday it has signed a definitive agreement to takeover the management of a healthcare fund, previously managed by collapsed private equity firm Abraaj.
The healthcare fund assets will form part of a new fund called Evercare Health Fund, it said in a statement.
Abraaj, once the Middle East and North Africa's biggest buyout fund, had a row with investors including the Bill & Melinda Gates Foundation and the International Finance Corp over the use of money in a $1 billion healthcare fund.
GCC real estate slump continues, but there is light at end of the tunnel, says IIF | ZAWYA MENA Edition
GCC real estate slump continues, but there is light at end of the tunnel, says IIF | ZAWYA MENA Edition:
Price declines in real estate markets in Saudi Arabia, the United Arab Emirates and Qatar are likely to persist given an oversupply in the market and regional tensions, but there are country-specific reasons for optimism in each market, according to a new paper from the Institute of International Finance (IIF).
The paper states that real estate in the region "has often operated on a model that emphasises excess for the sake of excess" and as a result the market is oversaturated with huge developments that have low levels of product differentiation. It also pointed to recent figures from JLL Mena stating that supply in Dubai is set to undergo an average annual increase of 8 percent over the next two years, "far outpacing the projected 2.5 percent increase in the resident population".
JLL MENA's Q1 Dubai report states that the number of residential units in Dubai is scheduled to increase to 652,000 by the end of 2021, up from 520,000 at the end of last year.
Price declines in real estate markets in Saudi Arabia, the United Arab Emirates and Qatar are likely to persist given an oversupply in the market and regional tensions, but there are country-specific reasons for optimism in each market, according to a new paper from the Institute of International Finance (IIF).
The paper states that real estate in the region "has often operated on a model that emphasises excess for the sake of excess" and as a result the market is oversaturated with huge developments that have low levels of product differentiation. It also pointed to recent figures from JLL Mena stating that supply in Dubai is set to undergo an average annual increase of 8 percent over the next two years, "far outpacing the projected 2.5 percent increase in the resident population".
JLL MENA's Q1 Dubai report states that the number of residential units in Dubai is scheduled to increase to 652,000 by the end of 2021, up from 520,000 at the end of last year.
Exxon, #Qatar to start construction on Texas Golden Pass LNG export plant - Reuters
Exxon, Qatar to start construction on Texas Golden Pass LNG export plant - Reuters:
Exxon Mobil Corp and Qatar Petroleum told the U.S. Federal Energy Regulatory Commission (FERC) on Thursday they would start construction of the $10 billion-plus Golden Pass liquefied natural gas (LNG) export terminal in Texas on May 13:
Exxon and Qatar Petroleum made a final investment decision to build the project in February and expect the project to enter service in 2024.
Golden Pass is designed to produce around 16 million tonnes per annum (MTPA) of LNG, equivalent to about 2.1 billion cubic feet per day (bcfd) of natural gas.
Exxon Mobil Corp and Qatar Petroleum told the U.S. Federal Energy Regulatory Commission (FERC) on Thursday they would start construction of the $10 billion-plus Golden Pass liquefied natural gas (LNG) export terminal in Texas on May 13:
Exxon and Qatar Petroleum made a final investment decision to build the project in February and expect the project to enter service in 2024.
Golden Pass is designed to produce around 16 million tonnes per annum (MTPA) of LNG, equivalent to about 2.1 billion cubic feet per day (bcfd) of natural gas.
MIDEAST STOCKS-Global mood weighs on Gulf as all major markets fall - Reuters
MIDEAST STOCKS-Global mood weighs on Gulf as all major markets fall - Reuters:
Abu Dhabi’s stock market fell on Thursday, weighed down by its biggest lender amid global trade tensions and falling oil prices, which sent all major Gulf markets sliding.
Oil prices dropped on Thursday over the escalating trade battle between the United States and China.
The Abu Dhabi index fell 1.3 percent, declining for the sixth straight session, with First Abu Dhabi Bank shedding 1.9 percent and Abu Dhabi Commercial Bank decreasing 2.3 percent.
Abu Dhabi’s stock market fell on Thursday, weighed down by its biggest lender amid global trade tensions and falling oil prices, which sent all major Gulf markets sliding.
Oil prices dropped on Thursday over the escalating trade battle between the United States and China.
The Abu Dhabi index fell 1.3 percent, declining for the sixth straight session, with First Abu Dhabi Bank shedding 1.9 percent and Abu Dhabi Commercial Bank decreasing 2.3 percent.
#Dubai's Economic Hopes Flying High at Cost of Huge Discounting - Bloomberg
Dubai's Economic Hopes Flying High at Cost of Huge Discounting - Bloomberg:
Dubai’s latest growth spurt is coming with a sharp discount.
Business conditions in the emirate’s non-oil private sector improved at the fastest rate in over four years in April as companies led by wholesalers and retailers offered lower prices to win orders, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index showed on Thursday.
The gauge rose to 57.9 from 57.6 in March, edging further above the threshold of 50 that separates contraction from growth. The 12-month outlook for activity climbed to the strongest since the data series began in 2010.
Dubai’s latest growth spurt is coming with a sharp discount.
Business conditions in the emirate’s non-oil private sector improved at the fastest rate in over four years in April as companies led by wholesalers and retailers offered lower prices to win orders, the seasonally adjusted Emirates NBD Dubai Economy Tracker Index showed on Thursday.
The gauge rose to 57.9 from 57.6 in March, edging further above the threshold of 50 that separates contraction from growth. The 12-month outlook for activity climbed to the strongest since the data series began in 2010.
Property Slowdown Beckons as Next Risk for Emerging Markets - Bloomberg
Property Slowdown Beckons as Next Risk for Emerging Markets - Bloomberg:
As growth worries and trade war jitters threaten to spoil any rebound for emerging markets in 2019, property markets are shaping up as a critical element to monitor for further signs of gloom.
Some developing economies from Thailand to Dubai and Brazil are facing double-digit real estate sales declines on the back of weakening domestic growth. Developed countries already have shown some of the pain -- including Australia, the U.K., Switzerland and Singapore -- and made all the more worrisome as borrowing costs remain relatively low.
“There are different factors driving the various markets; real estate tends to be to a large extent a localized market,” said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. “However, the one over-riding theme is decelerating economic growth momentum, which is continuing to be a headwind for all markets and preventing a recovery in markets, such as Dubai, which have faced multi-year downturns.”
As growth worries and trade war jitters threaten to spoil any rebound for emerging markets in 2019, property markets are shaping up as a critical element to monitor for further signs of gloom.
Some developing economies from Thailand to Dubai and Brazil are facing double-digit real estate sales declines on the back of weakening domestic growth. Developed countries already have shown some of the pain -- including Australia, the U.K., Switzerland and Singapore -- and made all the more worrisome as borrowing costs remain relatively low.
“There are different factors driving the various markets; real estate tends to be to a large extent a localized market,” said Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. “However, the one over-riding theme is decelerating economic growth momentum, which is continuing to be a headwind for all markets and preventing a recovery in markets, such as Dubai, which have faced multi-year downturns.”
Oil prices fall as U.S.-China trade war outweighs inventory drop - Reuters
Oil prices fall as U.S.-China trade war outweighs inventory drop - Reuters:
Oil prices fell on Thursday as an escalating trade battle between the United States and China outweighed upward pressure from a surprise decline in U.S. inventories of crude.
Brent crude oil futures were at $69.72 a barrel by 0814 GMT, down 65 cents from their previous settlement and heading for their second consecutive weekly loss. U.S. West Texas Intermediate (WTI) crude futures were at $61.43 per barrel, down 69 cents and set for a third week of losses. “Concerns over the ongoing trade dispute between the United States and China weighed on markets,” RBC’s Al Stanton said in a note.
Heightened tensions between the world’s two biggest economies cloud the outlook for global growth and thus oil demand. U.S. President Donald Trump said on Wednesday that China “broke the deal” in trade talks with Washington and would face stiff tariffs if no agreement is reached.
Oil prices fell on Thursday as an escalating trade battle between the United States and China outweighed upward pressure from a surprise decline in U.S. inventories of crude.
Brent crude oil futures were at $69.72 a barrel by 0814 GMT, down 65 cents from their previous settlement and heading for their second consecutive weekly loss. U.S. West Texas Intermediate (WTI) crude futures were at $61.43 per barrel, down 69 cents and set for a third week of losses. “Concerns over the ongoing trade dispute between the United States and China weighed on markets,” RBC’s Al Stanton said in a note.
Heightened tensions between the world’s two biggest economies cloud the outlook for global growth and thus oil demand. U.S. President Donald Trump said on Wednesday that China “broke the deal” in trade talks with Washington and would face stiff tariffs if no agreement is reached.
MIDEAST STOCKS-Global mood weighs on Gulf as all major markets fall - Reuters
MIDEAST STOCKS-Global mood weighs on Gulf as all major markets fall - Reuters:
Abu Dhabi’s stock market fell on Thursday, weighed down by its biggest lender amid global trade tensions and falling oil prices, which sent all major Gulf markets sliding.
Oil prices dropped on Thursday over the escalating trade battle between the United States and China.
The Abu Dhabi index fell 1.3 percent, declining for the sixth straight session, with First Abu Dhabi Bank shedding 1.9 percent and Abu Dhabi Commercial Bank decreasing 2.3 percent.
Abu Dhabi’s stock market fell on Thursday, weighed down by its biggest lender amid global trade tensions and falling oil prices, which sent all major Gulf markets sliding.
Oil prices dropped on Thursday over the escalating trade battle between the United States and China.
The Abu Dhabi index fell 1.3 percent, declining for the sixth straight session, with First Abu Dhabi Bank shedding 1.9 percent and Abu Dhabi Commercial Bank decreasing 2.3 percent.
#UAE's TAQA Q1 profit sinks, hit by forex losses, U.S write down - Reuters
UAE's TAQA Q1 profit sinks, hit by forex losses, U.S write down - Reuters:
Abu Dhabi National Energy Company (TAQA) on Thursday reported a nearly 95 percent drop in first quarter profit, hit by foreign exchange losses and revaluation of U.S power assets.
The state-owned oil explorer and power producer made a net profit attributable to shareholders of 6 million dirhams ($1.63 million) for the period ending March 31, 2019, it said in a bourse filing. That compared with 110 million dirhams in the prior-year period. Foreign exchange losses totaled 65 million dirhams in the quarter versus 3 million dirhams in first quarter 2018.
TAQA’s administrative and other expenses doubled to 157 million dirhams in the quarter from a year earlier. “The bottom line was impacted by uncontrollable items, namely foreign exchange losses and adverse movements on mark-to-market revaluations within its US-based power asset,” TAQA said in a statement.
Abu Dhabi National Energy Company (TAQA) on Thursday reported a nearly 95 percent drop in first quarter profit, hit by foreign exchange losses and revaluation of U.S power assets.
The state-owned oil explorer and power producer made a net profit attributable to shareholders of 6 million dirhams ($1.63 million) for the period ending March 31, 2019, it said in a bourse filing. That compared with 110 million dirhams in the prior-year period. Foreign exchange losses totaled 65 million dirhams in the quarter versus 3 million dirhams in first quarter 2018.
TAQA’s administrative and other expenses doubled to 157 million dirhams in the quarter from a year earlier. “The bottom line was impacted by uncontrollable items, namely foreign exchange losses and adverse movements on mark-to-market revaluations within its US-based power asset,” TAQA said in a statement.
#SaudiArabia's Savola plans riyal sukuk issue - Reuters
Saudi Arabia's Savola plans riyal sukuk issue - Reuters:
Savola Group, Saudi Arabia’s largest food products company, said on Thursday it plans to issue sukuk denominated in Saudi riyals, as part of a sukuk programme of up to 5.3 billion riyals ($1.41 billion).
The company said it will issue the sukuk, or Islamic bonds, to back the company’s financial and strategic needs.
Savola and other consumer goods companies in Saudi Arabia are suffering from the effects of subsidy cuts, the introduction of VAT and an exodus of expatriates which have all put pressure on consumer spending.
Savola Group, Saudi Arabia’s largest food products company, said on Thursday it plans to issue sukuk denominated in Saudi riyals, as part of a sukuk programme of up to 5.3 billion riyals ($1.41 billion).
The company said it will issue the sukuk, or Islamic bonds, to back the company’s financial and strategic needs.
Savola and other consumer goods companies in Saudi Arabia are suffering from the effects of subsidy cuts, the introduction of VAT and an exodus of expatriates which have all put pressure on consumer spending.
#UAE's Amlak Finance to conclude debt renegotiations by Q2 | ZAWYA MENA Edition
UAE's Amlak Finance to conclude debt renegotiations by Q2 | ZAWYA MENA Edition:
Islamic real estate financier Amlak Finance on Wednesday said its ongoing renegotiations with financiers on restructuring terms agreed in 2014 and subsequently revised in 2016 are progressing and would be concluded by second quarter 2019.
The Shariah-complaint home financier said in a statement that it continued renegotiating the funding conditions with its financiers to allow it more flexibility in adapting to current market conditions.
"This will provide the company with the opportunity to grow its business resulting in balance sheet growth and increased shareholder value. The renegotiation is currently in progress and, subject to securing approvals from financiers and related authorities, is expected to be concluded by second quarter 2019," the company said as it reported a net profit of Dh2 million in first quarter 2019 compared to Dh7 million in the same period during 2018.
Islamic real estate financier Amlak Finance on Wednesday said its ongoing renegotiations with financiers on restructuring terms agreed in 2014 and subsequently revised in 2016 are progressing and would be concluded by second quarter 2019.
The Shariah-complaint home financier said in a statement that it continued renegotiating the funding conditions with its financiers to allow it more flexibility in adapting to current market conditions.
"This will provide the company with the opportunity to grow its business resulting in balance sheet growth and increased shareholder value. The renegotiation is currently in progress and, subject to securing approvals from financiers and related authorities, is expected to be concluded by second quarter 2019," the company said as it reported a net profit of Dh2 million in first quarter 2019 compared to Dh7 million in the same period during 2018.
#SaudiArabia Makes Friends With an Old Enemy - Bloomberg
Saudi Arabia Makes Friends With an Old Enemy - Bloomberg:
The border between Saudi Arabia and Iraq is a line in the sand that says much about the Middle East’s instability over the past three decades.
It was shut in 1990 after Saddam Hussein’s invasion of Kuwait triggered the Gulf War. The Saudis proposed building a $7 billion barrier to seal it in 2006 as sectarian violence escalated. Then the rise of Islamic State prompted the kingdom to strengthen the 900-kilometer (560-mile) frontier.
With the extremist militants driven out of Iraq, Saudi Arabia is preparing to reopen the land crossing to trade this year because of the latest conflict that’s dominating the region: its proxy war with Iran. In a stark reversal of policy, the kingdom has identified Iraq as a timely ally in curbing the influence of its Shiite enemy, which on Wednesday threatened to abandon commitments made in its 2015 nuclear deal in response to American sanctions.
The border between Saudi Arabia and Iraq is a line in the sand that says much about the Middle East’s instability over the past three decades.
It was shut in 1990 after Saddam Hussein’s invasion of Kuwait triggered the Gulf War. The Saudis proposed building a $7 billion barrier to seal it in 2006 as sectarian violence escalated. Then the rise of Islamic State prompted the kingdom to strengthen the 900-kilometer (560-mile) frontier.
With the extremist militants driven out of Iraq, Saudi Arabia is preparing to reopen the land crossing to trade this year because of the latest conflict that’s dominating the region: its proxy war with Iran. In a stark reversal of policy, the kingdom has identified Iraq as a timely ally in curbing the influence of its Shiite enemy, which on Wednesday threatened to abandon commitments made in its 2015 nuclear deal in response to American sanctions.
#Bahrain Is Set to Receive $2.3 Billion From Allies in 2019 - Bloomberg
Bahrain Is Set to Receive $2.3 Billion From Allies in 2019 - Bloomberg:
Bahrain said it will receive about $2.3 billion this year from a five-year support package provided by its Gulf Arab allies as the island-kingdom seeks to reduce its budget deficit and debt.
The sum is roughly in line with the amount received in 2018, according to Bahrain’s Finance Ministry. The $10 billion package was made available by Saudi Arabia, the United Arab Emirates and Kuwait in 2018 to help avert a currency devaluation that could have reverberated across the region.
The ministry’s announcement is the first that offers details about the aid package, which has helped slash Bahrain’s borrowing costs and restore investor confidence. After struggling to tap international debt markets at some point last year, the kingdom is now planning to sell bonds in the second half of 2019, according to people with knowledge of the matter.
Bahrain said it will receive about $2.3 billion this year from a five-year support package provided by its Gulf Arab allies as the island-kingdom seeks to reduce its budget deficit and debt.
The sum is roughly in line with the amount received in 2018, according to Bahrain’s Finance Ministry. The $10 billion package was made available by Saudi Arabia, the United Arab Emirates and Kuwait in 2018 to help avert a currency devaluation that could have reverberated across the region.
The ministry’s announcement is the first that offers details about the aid package, which has helped slash Bahrain’s borrowing costs and restore investor confidence. After struggling to tap international debt markets at some point last year, the kingdom is now planning to sell bonds in the second half of 2019, according to people with knowledge of the matter.
Emirates Profit Slumps to Seven-Year Low as Oil Erodes Margins - Bloomberg
Emirates Profit Slumps to Seven-Year Low as Oil Erodes Margins - Bloomberg:
Emirates Group, owner of the world’s biggest long-haul airline, suffered a 44 percent decline in annual earnings as higher oil prices and a stronger dollar hit margins at a time when its business model faces increasing competition.
Net income shrank to 2.32 billion dirhams ($632 million) in the 12 months through March, the lowest level since fiscal 2012, according to a statement Thursday from Dubai-based Emirates. Seat-occupancy levels also fell and the company reduced dividend payments to its state owner by 75 percent.
While all earnings are affected by the price of crude, the Persian Gulf giant is particularly sensitive to fluctuations. Too high and rising fuel costs become difficult to manage, too low and demand for travel falls in the region’s oil-based economies. The carrier said last week that the sweet spot is between $50 to $60 a barrel, compared with the current level of about $70.
Emirates Group, owner of the world’s biggest long-haul airline, suffered a 44 percent decline in annual earnings as higher oil prices and a stronger dollar hit margins at a time when its business model faces increasing competition.
Net income shrank to 2.32 billion dirhams ($632 million) in the 12 months through March, the lowest level since fiscal 2012, according to a statement Thursday from Dubai-based Emirates. Seat-occupancy levels also fell and the company reduced dividend payments to its state owner by 75 percent.
While all earnings are affected by the price of crude, the Persian Gulf giant is particularly sensitive to fluctuations. Too high and rising fuel costs become difficult to manage, too low and demand for travel falls in the region’s oil-based economies. The carrier said last week that the sweet spot is between $50 to $60 a barrel, compared with the current level of about $70.
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