Dubai Financial Hub Adds Companies Even as Slowing Growth Weighs - Bloomberg:
The number of financial companies operating in the Dubai International Financial Centre rose 11% during the first half, even as a slowing global economy forced some banks to cut jobs.
Almost 2,290 companies, including 671 financial firms, are now based in the tax-free business park with the number of jobs increasing by 660 to more than 24,000, according to a statement on the DIFC’s website. Malaysia’s Maybank Islamic Berhad, Cantor Fitzgerald and Australia’s Atlas Wealth Management were among the financial firms that joined.
Dubai ranked as the Middle East’s leading financial center in a March study by consulting firm Z/Yen. The hub climbed three places to No. 12, ahead of Abu Dhabi by 14 places. Riyadh ranked 61st. Still, Barclays Plc and Deutsche Bank AG have reduced their presence in the financial district in recent years and the hub has turned to African and Asian institutions to fill office space.
Sunday 28 July 2019
#Dubai Is Back and a Bargain, at Least to Stock Pickers With Time - Bloomberg
Dubai Is Back and a Bargain, at Least to Stock Pickers With Time - Bloomberg:
After Dubai’s benchmark stock index lost almost half its value in the past five years, it’s beginning to attract investors on the lookout for bargains.
Hobbled by a lackluster economy and languishing in the shadow of its Gulf Arab neighbors, the emirate’s stocks have dropped in three of the last four years. The main gauge peaked in 2014, when MSCI Inc. officially included the United Arab Emirates -- of which Dubai is a part -- in the emerging-markets category.
#Shares in Dubai companies have now become so cheap relative to developing-nation equities that the gap in their estimated price-to-earnings ratios is near the widest since 2011.
After Dubai’s benchmark stock index lost almost half its value in the past five years, it’s beginning to attract investors on the lookout for bargains.
Hobbled by a lackluster economy and languishing in the shadow of its Gulf Arab neighbors, the emirate’s stocks have dropped in three of the last four years. The main gauge peaked in 2014, when MSCI Inc. officially included the United Arab Emirates -- of which Dubai is a part -- in the emerging-markets category.
#Shares in Dubai companies have now become so cheap relative to developing-nation equities that the gap in their estimated price-to-earnings ratios is near the widest since 2011.
#SaudiArabia to start next phase of flour mill privatization - Reuters
Saudi Arabia to start next phase of flour mill privatization - Reuters:
Saudi Arabia’s state grain buyer SAGO said it will start the next phase of the sale of its flour mills on Wednesday, which will see pre-qualified bidders perform due diligence and present financial offers.
The sale is one of the first privatizations the kingdom is planning as part of a wide-reaching overhaul of its economy.
It has attracted interest from some of the world’s largest agribusiness firms, including Archer Daniels Midland Co (ADM.N) and Bunge Ltd (BG.N).
Saudi Arabia’s state grain buyer SAGO said it will start the next phase of the sale of its flour mills on Wednesday, which will see pre-qualified bidders perform due diligence and present financial offers.
The sale is one of the first privatizations the kingdom is planning as part of a wide-reaching overhaul of its economy.
It has attracted interest from some of the world’s largest agribusiness firms, including Archer Daniels Midland Co (ADM.N) and Bunge Ltd (BG.N).
#Saudi Equity Index Shrugs Off Sabic’s Lower 2Q Profit: Inside EM - Bloomberg
Saudi Equity Index Shrugs Off Sabic’s Lower 2Q Profit: Inside EM - Bloomberg:
Saudi Arabia’s stocks gauge ended Sunday’s session higher even after the country’s biggest publicly traded company reported profit for the second quarter that was the lowest in a decade.
Saudi Basic Industries Corp.’s net income dropped to 2.12 billion riyals ($565 million) in the three months ended in June, shrinking 68% from last year, as lower petrochemical prices impacted performance. The biggest petrochemicals maker in the Middle East fell as much as 3.8% in Riyadh, before trimming the loss to 0.7% at close. Sabic is the third-largest individual constituent of the main Saudi gauge.
“The new capacities in key products lines that pressured Sabic’s product prices and margins in the first half of 2019 are expected to continue to impact the company’s earnings in the second half of 2019,” the company said.
Saudi Arabia’s stocks gauge ended Sunday’s session higher even after the country’s biggest publicly traded company reported profit for the second quarter that was the lowest in a decade.
Saudi Basic Industries Corp.’s net income dropped to 2.12 billion riyals ($565 million) in the three months ended in June, shrinking 68% from last year, as lower petrochemical prices impacted performance. The biggest petrochemicals maker in the Middle East fell as much as 3.8% in Riyadh, before trimming the loss to 0.7% at close. Sabic is the third-largest individual constituent of the main Saudi gauge.
“The new capacities in key products lines that pressured Sabic’s product prices and margins in the first half of 2019 are expected to continue to impact the company’s earnings in the second half of 2019,” the company said.
#SaudiArabia to Ban Foreigners From Slew of Hospitality Jobs - Bloomberg
Saudi Arabia to Ban Foreigners From Slew of Hospitality Jobs - Bloomberg:
Saudi Arabia plans to restrict certain hospitality jobs to its own citizens by the end of the year, banning the recruitment of foreign workers for those positions.
The decision, announced in a Labor Ministry statement on Friday, will apply to resorts, hotels rated three stars or higher, and hotel apartments rated four stars or higher. Positions that must be filled by Saudis range from front-desk jobs to management. Among the exceptions are drivers, doormen and porters, the ministry said in the statement. Other jobs that will be restricted to nationals include restaurant host and health club supervisor.
As Saudi Arabia tries to develop its fledgling tourism industry, it’s also tackling citizen unemployment, which hit a high of nearly 13% last year. Hospitality is the latest sector to face stricter “Saudization” policies, which call for replacing the foreigners who dominate many parts of the private sector -- particularly blue collar and service jobs.
Saudi Arabia plans to restrict certain hospitality jobs to its own citizens by the end of the year, banning the recruitment of foreign workers for those positions.
The decision, announced in a Labor Ministry statement on Friday, will apply to resorts, hotels rated three stars or higher, and hotel apartments rated four stars or higher. Positions that must be filled by Saudis range from front-desk jobs to management. Among the exceptions are drivers, doormen and porters, the ministry said in the statement. Other jobs that will be restricted to nationals include restaurant host and health club supervisor.
As Saudi Arabia tries to develop its fledgling tourism industry, it’s also tackling citizen unemployment, which hit a high of nearly 13% last year. Hospitality is the latest sector to face stricter “Saudization” policies, which call for replacing the foreigners who dominate many parts of the private sector -- particularly blue collar and service jobs.
MIDEAST STOCKS- #Saudi rises for second straight session as #AbuDhabi winning streak ends - Reuters
MIDEAST STOCKS-Saudi rises for second straight session as Abu Dhabi winning streak ends - Reuters:
Financial shares helped lift
Saudi Arabia's stock market for a second consecutive session on
Sunday, while top lender First Abu Dhabi Bank (FAB) weighed on
the Abu Dhabi bourse, bringing an eight-session streak of gains
to an end.
The Saudi index rose 0.5% with Al Rajhi Bank
and Riyad Bank gaining 1% and 3.1%
respectively. National Commercial Bank ended the day
0.6% higher.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, fell 0.7% after reporting
its lowest quarterly profit since late 2009.
Financial shares helped lift
Saudi Arabia's stock market for a second consecutive session on
Sunday, while top lender First Abu Dhabi Bank (FAB) weighed on
the Abu Dhabi bourse, bringing an eight-session streak of gains
to an end.
The Saudi index rose 0.5% with Al Rajhi Bank
and Riyad Bank gaining 1% and 3.1%
respectively. National Commercial Bank ended the day
0.6% higher.
Saudi Basic Industries Co (SABIC), the world's
fourth-biggest petrochemicals firm, fell 0.7% after reporting
its lowest quarterly profit since late 2009.
#AbuDhabi Commercial Bank second quarter profit falls 11% - Reuters
Abu Dhabi Commercial Bank second quarter profit falls 11% - Reuters:
Abu Dhabi Commercial Bank ADCB.AD, which formally merged with two other banks this year, reported an 11% drop in second quarter profit on Sunday, as both interest income and non interest income declined.
ADCB made a net profit of 1.45 billion dirhams ($ 395 million) in the three months ending June 30, compared to 1.62 billion dirhams in the prior-year period, it said in a statement. EFG Hermes had projected a net profit of 1.3 billion dirhams for the second quarter.
Net interest income fell 7% to 2.59 billion dirhams, while non-interest income dropped 9% to 656 million dirhams.
Abu Dhabi Commercial Bank ADCB.AD, which formally merged with two other banks this year, reported an 11% drop in second quarter profit on Sunday, as both interest income and non interest income declined.
ADCB made a net profit of 1.45 billion dirhams ($ 395 million) in the three months ending June 30, compared to 1.62 billion dirhams in the prior-year period, it said in a statement. EFG Hermes had projected a net profit of 1.3 billion dirhams for the second quarter.
Net interest income fell 7% to 2.59 billion dirhams, while non-interest income dropped 9% to 656 million dirhams.
#SaudiArabia Plan to Avoid Oil Danger at Hormuz Isn't Much Safer - Bloomberg
Saudi Arabia Plan to Avoid Oil Danger at Hormuz Isn't Much Safer - Bloomberg:
After all of the incidents in the Strait of Hormuz in recent months, Saudi Arabia is understandably nervous about its dependence on using the chokepoint to ship its oil to vital overseas markets. But its plan to pump more of its crude all the way across the country and export it through the Red Sea instead may not bring it as much security as it hopes.
Two separate attacks on oil tankers in May and June just outside Hormuz – a narrow neck of water that links the Persian Gulf to the high seas – have caused costs and insurance rates to skyrocket. British-flagged vessels have shunned the strait after one was seized by Iran’s Revolutionary Guard in retaliation for the arrest of the supertanker Grace 1 off Gibraltar earlier this month.
It’s perfectly understandable that producers are weighing up their options. But unlike most of the others in the region, Saudi Arabia actually does have some. It and the United Arab Emirates are the only countries in the Persian Gulf that have a coastline on another sea. In Saudi Arabia’s case it’s the Red Sea, which forms the country’s western boundary.
After all of the incidents in the Strait of Hormuz in recent months, Saudi Arabia is understandably nervous about its dependence on using the chokepoint to ship its oil to vital overseas markets. But its plan to pump more of its crude all the way across the country and export it through the Red Sea instead may not bring it as much security as it hopes.
Two separate attacks on oil tankers in May and June just outside Hormuz – a narrow neck of water that links the Persian Gulf to the high seas – have caused costs and insurance rates to skyrocket. British-flagged vessels have shunned the strait after one was seized by Iran’s Revolutionary Guard in retaliation for the arrest of the supertanker Grace 1 off Gibraltar earlier this month.
It’s perfectly understandable that producers are weighing up their options. But unlike most of the others in the region, Saudi Arabia actually does have some. It and the United Arab Emirates are the only countries in the Persian Gulf that have a coastline on another sea. In Saudi Arabia’s case it’s the Red Sea, which forms the country’s western boundary.
UPDATE 1-SABIC still keen on Clariant joint venture once conditions improve - Reuters
UPDATE 1-SABIC still keen on Clariant joint venture once conditions improve - Reuters:
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, said on Sunday it has no interest in taking over Swiss chemicals firm Clariant but remains keen on a partnership once market conditions improve.
Some analysts have said that SABIC, which owns a 25% stake in Clariant, could consider taking over the company after the Swiss firm last week saw its chief executive quit, announced a loss for the first half of the year and shelved its joint venture plans with SABIC.
“We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” SABIC CEO Yousef al-Benyan told a news conference.
Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals firm, said on Sunday it has no interest in taking over Swiss chemicals firm Clariant but remains keen on a partnership once market conditions improve.
Some analysts have said that SABIC, which owns a 25% stake in Clariant, could consider taking over the company after the Swiss firm last week saw its chief executive quit, announced a loss for the first half of the year and shelved its joint venture plans with SABIC.
“We have no interest in a full takeover, if that’s your question, but we have interest to grow our share and make sure that we can bring positive growth and retain investment for SABIC and Clariant shareholders,” SABIC CEO Yousef al-Benyan told a news conference.
Exclusive: #UAE's Dana Gas hires adviser to sell Egypt assets - Reuters
Exclusive: UAE's Dana Gas hires adviser to sell Egypt assets - Reuters:
United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operations.
The Abu Dhabi-listed energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) - has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.
A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.
United Arab Emirates’ Dana Gas has hired investment bank Tudor, Pickering, Holt & Co. (TPH) to advise it on the sale of its Egyptian assets, worth over $500 million, two sources familiar with the matter said, as the company shifts its focus to its Kurdistan operations.
The Abu Dhabi-listed energy producer - whose main assets are in Egypt and in the Kurdistan Region of Iraq (KRI) - has been considering an alternative listing in London, and focusing on a single geographical area could be appealing to future investors in the company, said one of the sources. The sources did not wish to be identified because the information has not been made public.
A spokesman for Dana Gas declined to comment while TPH did not immediately respond to a request for comment, sent outside working hours.
MIDEAST STOCKS-SABIC weighs on #Saudi index, banks help lift #Dubai - Reuters
MIDEAST STOCKS-SABIC weighs on Saudi index, banks help lift Dubai - Reuters:
Saudi Arabia’s stock market opened lower on Sunday, with Saudi Basic Industries Co (SABIC) ,the world’s fourth-biggest petrochemicals firm, weighing on the index after reporting its lowest quarterly profit since late 2009.
Saudi Arabia’s benchmark index slipped 0.1% with SABIC and Saudi Electric falling 1.8% and 2.6% respectively.
SABIC reported second-quarter net profit slid 68% to 2.12 billion riyals ($565 million), citing lower average selling prices and a decrease in the share of contributions from associates and joint ventures.
Saudi Arabia’s stock market opened lower on Sunday, with Saudi Basic Industries Co (SABIC) ,the world’s fourth-biggest petrochemicals firm, weighing on the index after reporting its lowest quarterly profit since late 2009.
Saudi Arabia’s benchmark index slipped 0.1% with SABIC and Saudi Electric falling 1.8% and 2.6% respectively.
SABIC reported second-quarter net profit slid 68% to 2.12 billion riyals ($565 million), citing lower average selling prices and a decrease in the share of contributions from associates and joint ventures.
Brookfield Said to Weigh Stake Purchase in Meraas Retail Venture - Bloomberg
Brookfield Said to Weigh Stake Purchase in Meraas Retail Venture - Bloomberg:
Brookfield Asset Management Inc. is exploring a purchase of a stake in a new company that will hold some of Dubai property developer Meraas Holding’s retail assets, people familiar with the matter said.
The Canadian investment firm is considering putting as much as $1 billion in the venture, the people said, asking not to be identified as the information is private. No final agreements have been reached and the discussions may not result in a deal, they said.
Brookfield Asset Management Inc. is exploring a purchase of a stake in a new company that will hold some of Dubai property developer Meraas Holding’s retail assets, people familiar with the matter said.
The Canadian investment firm is considering putting as much as $1 billion in the venture, the people said, asking not to be identified as the information is private. No final agreements have been reached and the discussions may not result in a deal, they said.
UPDATE 1-Jordan's Arab Bank group says H1 net profit rises 4% to $453 mln - Reuters
UPDATE 1-Jordan's Arab Bank group says H1 net profit rises 4% to $453 mln - Reuters:
Jordan’s largest lender, Arab Bank Group, reported a 4% rise in first-half net profit to $453 million, from $436 million a year earlier driven by growth in core banking income.
A statement on Sunday by the bank, one of the Middle East’s major financial institutions, said total loans rose 3% to $26.2 billion as of the end of June, while deposits also rose 3% to $34.1 billion. Group equity stood at $8.7 billion, it said.
Chairman Sabih al Masri said the “strong performance despite the continued slowdown of economic growth in the region” reflected the bank’s ability to adjust to a “challenging banking environment.”
Jordan’s largest lender, Arab Bank Group, reported a 4% rise in first-half net profit to $453 million, from $436 million a year earlier driven by growth in core banking income.
A statement on Sunday by the bank, one of the Middle East’s major financial institutions, said total loans rose 3% to $26.2 billion as of the end of June, while deposits also rose 3% to $34.1 billion. Group equity stood at $8.7 billion, it said.
Chairman Sabih al Masri said the “strong performance despite the continued slowdown of economic growth in the region” reflected the bank’s ability to adjust to a “challenging banking environment.”
#AbuDhabi's Growth Masks Weakness as Non-Oil GDP Shrinks: Chart - Bloomberg
Abu Dhabi's Growth Masks Weakness as Non-Oil GDP Shrinks: Chart - Bloomberg:
Revved-up spending plans by Abu Dhabi’s government have yet to spur growth in the non-oil sector of the emirate’s economy. While first-quarter gross domestic product grew 5.7% from the previous year, the non-oil part shrank for a third successive quarter. A $13.6 billion stimulus program announced a year ago is “supportive of growth, but will take more time to filter through,” said Jean-Paul Pigat, the head of research and founder of Lighthouse Research.
Revved-up spending plans by Abu Dhabi’s government have yet to spur growth in the non-oil sector of the emirate’s economy. While first-quarter gross domestic product grew 5.7% from the previous year, the non-oil part shrank for a third successive quarter. A $13.6 billion stimulus program announced a year ago is “supportive of growth, but will take more time to filter through,” said Jean-Paul Pigat, the head of research and founder of Lighthouse Research.
Sabic Profit Plunges to Lowest in 10 Years on Chemicals Slump - Bloomberg
Sabic Profit Plunges to Lowest in 10 Years on Chemicals Slump - Bloomberg:
Saudi Basic Industries Corp.’s second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined.
Net income dropped to 2.12 billion riyals ($565 million) from 6.7 billion riyals a year ago, the biggest petrochemicals maker in the Middle East said in a statement. The average estimate of five analysts was for a profit of 3.37 billion riyals.
A downturn in the global economy, including the car industry, has dented demand for plastics and chemicals, leading to a spate of profit warnings at companies such as BASF SE.
Saudi Basic Industries Corp.’s second-quarter profit plunged to the lowest level since 2009 as demand for chemicals and plastics declined.
Net income dropped to 2.12 billion riyals ($565 million) from 6.7 billion riyals a year ago, the biggest petrochemicals maker in the Middle East said in a statement. The average estimate of five analysts was for a profit of 3.37 billion riyals.
A downturn in the global economy, including the car industry, has dented demand for plastics and chemicals, leading to a spate of profit warnings at companies such as BASF SE.
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