Saudi Arabia’s Economic Growth Seen Picking Up Again in 2019 - Bloomberg:
Saudi Arabia’s economic outlook is expected to improve further in 2019, although downside risks remain as a result of the global economic slowdown and the impact it could have on oil markets, the kingdom’s central bank said.
The country’s economic growth recovered to 2.2% in 2018 after contracting the previous year, the Saudi Arabian Monetary Authority said in a June 1 report. The rebound was mainly powered by the oil sector, which grew 2.9% while the non-oil sector expanded 1.7% in 2018, compared to 1% the previous year, SAMA said.
The gains are welcome news for the OPEC powerhouse, which had been hit earlier by a slide in global oil prices just as the government was pushing to decrease reliance on crude and boost foreign direct investment. The kingdom is also working to bring more Saudis into the workforce instead of relying on expatriate labor.
Sunday, 2 June 2019
Trade War: Recession Within a Year if It Gets Worse - Bloomberg
Trade War: Recession Within a Year if It Gets Worse - Bloomberg:
Investors may still be underestimating the full risk to the global economy from a trade war, even after U.S. stocks capped the worst month of the year.
A recession could begin in as soon as nine months if President Donald Trump pushes to impose 25% tariffs on additional $300 billion of Chinese imports and China retaliates with its own countermeasures, according to Chetan Ahya, chief economist and global head of economics at Morgan Stanley.
The rift between the Trump administration and China has escalated as each side blames the other for the breakdown in talks. Over the weekend, Trump celebrated his trade policies and the recent move to impose tariffs on Mexican goods in response to illegal immigration.
Investors may still be underestimating the full risk to the global economy from a trade war, even after U.S. stocks capped the worst month of the year.
A recession could begin in as soon as nine months if President Donald Trump pushes to impose 25% tariffs on additional $300 billion of Chinese imports and China retaliates with its own countermeasures, according to Chetan Ahya, chief economist and global head of economics at Morgan Stanley.
The rift between the Trump administration and China has escalated as each side blames the other for the breakdown in talks. Over the weekend, Trump celebrated his trade policies and the recent move to impose tariffs on Mexican goods in response to illegal immigration.
#SaudiArabia's central bank warns global slowdown may hit growth - Reuters
Saudi Arabia's central bank warns global slowdown may hit growth - Reuters:
Saudi Arabia’s economy is expected to pick up in 2019 but a global economic slowdown and its potential impact on the global oil market could impact growth, the Kingdom’s central bank said.
Saudi Arabia’s economy grew by 2.2% in 2018, driven by the oil sector, compared to a decline of 0.7% in 2017, the Saudi Arabian Monetary Authority (SAMA) said in a report.
The main risk for the Saudi economy comes from its exposure to the global oil market. The oil sector accounts for some 45% of Saudi GDP and more than 63% of government revenue.
Saudi Arabia’s economy is expected to pick up in 2019 but a global economic slowdown and its potential impact on the global oil market could impact growth, the Kingdom’s central bank said.
Saudi Arabia’s economy grew by 2.2% in 2018, driven by the oil sector, compared to a decline of 0.7% in 2017, the Saudi Arabian Monetary Authority (SAMA) said in a report.
The main risk for the Saudi economy comes from its exposure to the global oil market. The oil sector accounts for some 45% of Saudi GDP and more than 63% of government revenue.
#Bahrain wealth fund Mumtalakat's 2018 profit tumbles - Reuters
Bahrain wealth fund Mumtalakat's 2018 profit tumbles - Reuters:
Bahrain’s sovereign wealth fund Mumtalakat’s 2018 net profit tumbled 73.5%, it said in a statement on Sunday. The fund which holds stakes in Bahraini companies including Aluminium Bahrain (Alba) and telecoms company Batelco made a net profit of $148.4 million in 2018 compared to $560.1 million in the previous year.
“Net profit in 2017 included fair value gain on de-recognition of associates of $667 million while a higher cost of raw materials in 2018 led to a fall in Alba’s profits,” the statement said, without giving further details.
Mumtalakat’s revenue totalled $5.5 billion in 2018, up 38% over the previous year due to the full year impact of the consolidation of McLaren and higher sales at Alba, it said.
Bahrain’s sovereign wealth fund Mumtalakat’s 2018 net profit tumbled 73.5%, it said in a statement on Sunday. The fund which holds stakes in Bahraini companies including Aluminium Bahrain (Alba) and telecoms company Batelco made a net profit of $148.4 million in 2018 compared to $560.1 million in the previous year.
“Net profit in 2017 included fair value gain on de-recognition of associates of $667 million while a higher cost of raw materials in 2018 led to a fall in Alba’s profits,” the statement said, without giving further details.
Mumtalakat’s revenue totalled $5.5 billion in 2018, up 38% over the previous year due to the full year impact of the consolidation of McLaren and higher sales at Alba, it said.
Mideast Stocks: #Qatar and Egypt drop, other Gulf markets closed for holiday | ZAWYA MENA Edition
Mideast Stocks: Qatar and Egypt drop, other Gulf markets closed for holiday | ZAWYA MENA Edition:
Stock markets in Qatar and Egypt dropped on Sunday, while other Gulf markets, including Saudi Arabia, are closed for the Eid ul-Fitr holiday:
QATAR
The index slipped 1.02% to 10,168 points
EGYPT
The index dropped 0.6 % at 13,691 points
BAHRAIN
The index gained 0.1% to 1,435 points
OMAN
The index inched up 0.07% to 3,937 points
KUWAIT
The index fell 0.2% to 6,229 points
Stock markets in Qatar and Egypt dropped on Sunday, while other Gulf markets, including Saudi Arabia, are closed for the Eid ul-Fitr holiday:
QATAR
The index slipped 1.02% to 10,168 points
EGYPT
The index dropped 0.6 % at 13,691 points
BAHRAIN
The index gained 0.1% to 1,435 points
OMAN
The index inched up 0.07% to 3,937 points
KUWAIT
The index fell 0.2% to 6,229 points
#AbuDhabi GDP Growth to Average 2.5% Through 2022, S&P Says - Bloomberg
Abu Dhabi GDP Growth to Average 2.5% Through 2022, S&P Says - Bloomberg:
Abu Dhabi’s economic growth will average 2.5% in the four years through 2022 as it benefits from higher oil production and prices, S&P Global Ratings estimated.
Abu Dhabi’s economy still depends heavily on oil, deriving 50% of its real gross domestic product and more than 90% of central government revenue from the hydrocarbon sector, the ratings company said in a report May 31. Oil will continue to dominate the economy despite diversification efforts, it said.
S&P Global projects economic growth in the largest and richest of the seven sheikhdoms that make up the U.A.E. to accelerate to 2% this year from 1.8% in 2018. It expects growth to accelerate to 2.5% in 2020 and 2021 before climbing to 3% in 2022. S&P expects Brent will average $60 per barrel this year and next, before dropping to an average $55 a barrel in 2021.
Abu Dhabi’s economic growth will average 2.5% in the four years through 2022 as it benefits from higher oil production and prices, S&P Global Ratings estimated.
Abu Dhabi’s economy still depends heavily on oil, deriving 50% of its real gross domestic product and more than 90% of central government revenue from the hydrocarbon sector, the ratings company said in a report May 31. Oil will continue to dominate the economy despite diversification efforts, it said.
S&P Global projects economic growth in the largest and richest of the seven sheikhdoms that make up the U.A.E. to accelerate to 2% this year from 1.8% in 2018. It expects growth to accelerate to 2.5% in 2020 and 2021 before climbing to 3% in 2022. S&P expects Brent will average $60 per barrel this year and next, before dropping to an average $55 a barrel in 2021.
Face it, OPEC. Russia Is No Longer Your Friend - Bloomberg
Face it, OPEC. Russia Is No Longer Your Friend - Bloomberg:
Has OPEC reached the point where the benefit of bringing in outsiders to achieve its goals is outweighed by the difficulty of managing the expanded group? It certainly seems so.
Six months ago, the group couldn’t reach a deal on production levels without help from Russia. Now it can’t even agree on the date of a meeting, and Russia seems to be the problem. So much for any hope members might have of putting a floor under oil prices.
The rot really became evident in December. A deal to extend a policy of output restraint was reached only after Russian oil minister Alexander Novak took over an office at the heart of OPEC’s headquarters in Vienna and brokered a compromise that both Iran and Saudi Arabia would accept.
Has OPEC reached the point where the benefit of bringing in outsiders to achieve its goals is outweighed by the difficulty of managing the expanded group? It certainly seems so.
Six months ago, the group couldn’t reach a deal on production levels without help from Russia. Now it can’t even agree on the date of a meeting, and Russia seems to be the problem. So much for any hope members might have of putting a floor under oil prices.
The rot really became evident in December. A deal to extend a policy of output restraint was reached only after Russian oil minister Alexander Novak took over an office at the heart of OPEC’s headquarters in Vienna and brokered a compromise that both Iran and Saudi Arabia would accept.
Middle East carriers’ losses in 2019 will top $1.1bln: Iata | ZAWYA MENA Edition
Middle East carriers’ losses in 2019 will top $1.1bln: Iata | ZAWYA MENA Edition:
Middle Eastern airlines will deliver a combined net loss of $1.1 billion in 2019, marginally higher than the $1 billion loss last year, said the International Air Transport Association (Iata) in its 2019 outlook for the global air transport industry.
That equates to a $5.01 loss per passenger and a negative net margin (-1.9 per cent). The region has faced substantial challenges in recent years, both to the business environment and to business models, Iata added.
Airlines there are going through a process of adjustment and announced schedules point to a substantial slowdown in capacity growth in 2019. Performance is now improving but the worsening in the business environment is expected to prolong losses in 2019, it said.
Middle Eastern airlines will deliver a combined net loss of $1.1 billion in 2019, marginally higher than the $1 billion loss last year, said the International Air Transport Association (Iata) in its 2019 outlook for the global air transport industry.
That equates to a $5.01 loss per passenger and a negative net margin (-1.9 per cent). The region has faced substantial challenges in recent years, both to the business environment and to business models, Iata added.
Airlines there are going through a process of adjustment and announced schedules point to a substantial slowdown in capacity growth in 2019. Performance is now improving but the worsening in the business environment is expected to prolong losses in 2019, it said.
#Saudi Arabian economy improves further as credit to private sector rises | ZAWYA MENA Edition
Saudi Arabian economy improves further as credit to private sector rises | ZAWYA MENA Edition:
Saudi Arabian economy continued to improve as credit to the private sector registered a rise (+2.1% y-o-y; +0.4% m-o-m) in April, while bank claims to the public sector also grew (+25.5% yo-y; +2.7% m-o-m) in the same month, Al Rajhi Capital said in its Monthly Economic Report in June this year, quoting SAMA data for April.
In addition, deposit increased at the fastest annual pace in 21 months in April (+2.9% y-o-y; +1.3% m-o-m). POS transactions continued its rise in April (+24.4% y-o-y; +3.0% m-o-m), supported by ‘Restaurants and Hotels’, ‘Food and Beverage’ and ‘Transportation’ segments.
The cost of living index continued in the deflation territory for the fourth straight month (-1.9% y-o-y; flat m-o-m) in April. The ‘Housing, Water, Electricity, Gas’ and the ‘Furnishings and Household Equipment’ sectors (together constituting 34% of the index) weighed on the index.
Saudi Arabian economy continued to improve as credit to the private sector registered a rise (+2.1% y-o-y; +0.4% m-o-m) in April, while bank claims to the public sector also grew (+25.5% yo-y; +2.7% m-o-m) in the same month, Al Rajhi Capital said in its Monthly Economic Report in June this year, quoting SAMA data for April.
In addition, deposit increased at the fastest annual pace in 21 months in April (+2.9% y-o-y; +1.3% m-o-m). POS transactions continued its rise in April (+24.4% y-o-y; +3.0% m-o-m), supported by ‘Restaurants and Hotels’, ‘Food and Beverage’ and ‘Transportation’ segments.
The cost of living index continued in the deflation territory for the fourth straight month (-1.9% y-o-y; flat m-o-m) in April. The ‘Housing, Water, Electricity, Gas’ and the ‘Furnishings and Household Equipment’ sectors (together constituting 34% of the index) weighed on the index.
#Iran warns any clash in the Gulf would push oil prices above $100 - Reuters
Iran warns any clash in the Gulf would push oil prices above $100 - Reuters:
U.S. military vessels in the Gulf are within range of Iranian missiles, a top military aide to Iran’s Supreme Leader Ayatollah Ali Khamenei said on Sunday, warning any clash between the two countries would push oil prices above $100 a barrel.
Iran and the United States have been drawn into starker confrontation in the past month, a year after Washington pulled out of a deal between Iran and global powers to curb Tehran’s nuclear programme in return for lifting international sanctions.
Washington re-imposed sanctions last year and ratcheted them up in May, ordering all countries to halt imports of Iranian oil. In recent weeks it has also hinted at military confrontation, saying it was sending extra forces to the Middle East to respond to an Iranian threat.
U.S. military vessels in the Gulf are within range of Iranian missiles, a top military aide to Iran’s Supreme Leader Ayatollah Ali Khamenei said on Sunday, warning any clash between the two countries would push oil prices above $100 a barrel.
Iran and the United States have been drawn into starker confrontation in the past month, a year after Washington pulled out of a deal between Iran and global powers to curb Tehran’s nuclear programme in return for lifting international sanctions.
Washington re-imposed sanctions last year and ratcheted them up in May, ordering all countries to halt imports of Iranian oil. In recent weeks it has also hinted at military confrontation, saying it was sending extra forces to the Middle East to respond to an Iranian threat.
Russian oil output hits 11-month low in May - Reuters
Russian oil output hits 11-month low in May - Reuters:
Russian oil output fell to 11.11 million barrels per day (bpd) in May, down from 11.23 million bpd in April, Energy Ministry data showed on Sunday, the lowest level since June 2018, amid a crisis over contaminated oil and a global deal to cut output.
June 2018 production was 11.06 million bpd. In tonnes, oil output reached 47.004 million versus 45.975 million in April, which is one day shorter than May.
The production fall has mainly resulted from the contamination of oil in the Russian Druzhba pipeline, which used to ship 1 million bpd, or 1 percent of global oil demand. The pipeline, built in the 1960s, carries Russian oil to Europe, including Germany, Hungary, Poland and Slovakia.
Russian oil output fell to 11.11 million barrels per day (bpd) in May, down from 11.23 million bpd in April, Energy Ministry data showed on Sunday, the lowest level since June 2018, amid a crisis over contaminated oil and a global deal to cut output.
June 2018 production was 11.06 million bpd. In tonnes, oil output reached 47.004 million versus 45.975 million in April, which is one day shorter than May.
The production fall has mainly resulted from the contamination of oil in the Russian Druzhba pipeline, which used to ship 1 million bpd, or 1 percent of global oil demand. The pipeline, built in the 1960s, carries Russian oil to Europe, including Germany, Hungary, Poland and Slovakia.
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