Saudi Mobile Operator Seeks to Cut Cost of $2.1 Billion Debt - Bloomberg:
Etihad Etisalat Co. held preliminary talks with banks to refinance as much 8 billion riyals ($2.1 billion) of debt as the Saudi Arabian mobile-network operator looks to lower borrowing costs following a turn around in its finances, according to people familiar with the matter.
Mobily, as the company is known, has been gauging appetite from lenders to participate in the refinancing and plans to start formal discussions before the end of the year, the people said, asking not to be identified as the information is private. Banks were told that the firm wants to reduce interest expenses with the new facility, they said.
Saudi Arabia’s second-largest wireless operator is trying to benefit from four straight quarters of profit growth after accounting irregularities discovered in 2014 led to years of losses. Amid the slump in earnings, Mobily in 2017 refinanced 8 billion riyals of loans at a rate that was said at the time to be 20% higher than the debt it was repaying.
Thursday, 29 August 2019
#SaudiArabia’s Net Foreign Assets Fall Most in Over Two Years - Bloomberg
Saudi Arabia’s Net Foreign Assets Fall Most in Over Two Years - Bloomberg:
Saudi Arabia’s net foreign assets fell 1.8% in July, the biggest monthly drop in more than two years, potentially an effect of the government boosting spending.
Net foreign assets held by the Saudi Arabian Monetary Authority declined by about $9 billion last month to $498 billion, the largest fall since February 2017, according to the central bank’s latest monthly report. The government’s current account at the central bank fell by about $9.5 billion in July.
Saudi officials have long promised to inject more spending into the biggest Arab economy to boost lackluster growth, though the central bank data doesn’t specify where the government cash went. The world’s largest oil exporter has struggled to recover from a slowdown brought on by the crude price rout of 2014 while also reining in its budget deficit. Gross domestic product is expected to grow 1.7% this year, a second year of expansion after contracting 0.7% in 2017, according to data compiled by Bloomberg.
Saudi Arabia’s net foreign assets fell 1.8% in July, the biggest monthly drop in more than two years, potentially an effect of the government boosting spending.
Net foreign assets held by the Saudi Arabian Monetary Authority declined by about $9 billion last month to $498 billion, the largest fall since February 2017, according to the central bank’s latest monthly report. The government’s current account at the central bank fell by about $9.5 billion in July.
Saudi officials have long promised to inject more spending into the biggest Arab economy to boost lackluster growth, though the central bank data doesn’t specify where the government cash went. The world’s largest oil exporter has struggled to recover from a slowdown brought on by the crude price rout of 2014 while also reining in its budget deficit. Gross domestic product is expected to grow 1.7% this year, a second year of expansion after contracting 0.7% in 2017, according to data compiled by Bloomberg.
#Dubai Halts Mega-Airport Project as Gulf Economies Stumble - Bloomberg
Dubai Halts Mega-Airport Project as Gulf Economies Stumble - Bloomberg:
Work on Dubai’s Al Maktoum Airport, designed to be one of the world’s biggest with an annual capacity of more than 250 million passengers, is on hold as Gulf Arab economies falter, people familiar with the matter said.
Construction activity has been halted and finances for expansion frozen until further notice, according to the people, who asked not to be named due to the sensitivity of the topic.
The completion date for the first phase of the airport, envisaged as a $36 billion super-hub allowing local airline Emirates to consolidate its position as the world’s No. 1 long-haul carrier, had already been pushed back five years to 2030 in October.
Work on Dubai’s Al Maktoum Airport, designed to be one of the world’s biggest with an annual capacity of more than 250 million passengers, is on hold as Gulf Arab economies falter, people familiar with the matter said.
Construction activity has been halted and finances for expansion frozen until further notice, according to the people, who asked not to be named due to the sensitivity of the topic.
The completion date for the first phase of the airport, envisaged as a $36 billion super-hub allowing local airline Emirates to consolidate its position as the world’s No. 1 long-haul carrier, had already been pushed back five years to 2030 in October.
U.S. crude rises 1.7% on big inventory draw, hurricane fears - Reuters
U.S. crude rises 1.7% on big inventory draw, hurricane fears - Reuters:
U.S. oil futures rose 1.7% on Thursday, lifted by a deep draw on U.S. crude inventories, especially at the benchmark’s delivery hub due to increased demand with the start-up of two new West Texas pipelines.
The approach of Hurricane Dorian toward Florida also raised fears that offshore U.S. crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend, analysts said.
Meanwhile, international benchmark Brent oil rose above the $61 a barrel mark as concerns about economic growth eased.
West Texas International (WTI) crude settled at $56.71 a barrel, up 93 cents, or 1.7%. Brent crude settled at $61.08, up 59 cents, or 0.98%.
U.S. oil futures rose 1.7% on Thursday, lifted by a deep draw on U.S. crude inventories, especially at the benchmark’s delivery hub due to increased demand with the start-up of two new West Texas pipelines.
The approach of Hurricane Dorian toward Florida also raised fears that offshore U.S. crude producers may slow output if the storm passes into the Gulf of Mexico over the weekend, analysts said.
Meanwhile, international benchmark Brent oil rose above the $61 a barrel mark as concerns about economic growth eased.
West Texas International (WTI) crude settled at $56.71 a barrel, up 93 cents, or 1.7%. Brent crude settled at $61.08, up 59 cents, or 0.98%.
Political uncertainty puts London listing for #Saudi Aramco in doubt | Business | The Guardian
Political uncertainty puts London listing for Saudi Aramco in doubt | Business | The Guardian:
Saudi Arabia’s revived plans for a $2tn mega-listing of its state oil company may rule out the London Stock Exchange amid Britain’s rising political uncertainty, according to reports.
Saudi Aramco, the world’s most profitable company, may instead look to Japan’s Tokyo stock exchange to host the second phase of what would be the biggest public offering in history.
The oil giant’s advisers had originally favoured an international stock market debut in either London or Hong Kong but political instability has reduced their appeal, according to the Wall Street Journal.
Saudi Arabia’s revived plans for a $2tn mega-listing of its state oil company may rule out the London Stock Exchange amid Britain’s rising political uncertainty, according to reports.
Saudi Aramco, the world’s most profitable company, may instead look to Japan’s Tokyo stock exchange to host the second phase of what would be the biggest public offering in history.
The oil giant’s advisers had originally favoured an international stock market debut in either London or Hong Kong but political instability has reduced their appeal, according to the Wall Street Journal.
#Saudi stock exchange now full MSCI member, but market euphoria may fade - Reuters
Saudi stock exchange now full MSCI member, but market euphoria may fade - Reuters:
The Saudi Stock Exchange (Tadawul), the region’s largest market, has completed the second and final phase of joining the MSCI Emerging Markets Index, raising its weight on the closely monitored index to 2.8 percent.
Its inclusion has generated foreign inflows worth billions of dollars since the start of the year and has helped the Saudi index make double-digit gains. Those benefits may fade as trading wanes amid gloomy economic conditions.
“Full inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Saudi capital market and further opening Tadawul to international investors,” Khalid al-Hussan, Tadawul’s chief executive, said in an exchange filing on Thursday.
The Saudi Stock Exchange (Tadawul), the region’s largest market, has completed the second and final phase of joining the MSCI Emerging Markets Index, raising its weight on the closely monitored index to 2.8 percent.
Its inclusion has generated foreign inflows worth billions of dollars since the start of the year and has helped the Saudi index make double-digit gains. Those benefits may fade as trading wanes amid gloomy economic conditions.
“Full inclusion in the MSCI Emerging Market Index represents an important milestone in advancing the Saudi capital market and further opening Tadawul to international investors,” Khalid al-Hussan, Tadawul’s chief executive, said in an exchange filing on Thursday.
#Dubai mall operator Majid Al Futtaim posts H1 revenue at $4.87bln | ZAWYA MENA Edition
Dubai mall operator Majid Al Futtaim posts H1 revenue at $4.87bln | ZAWYA MENA Edition:
Shopping mall and leisure pioneer Majid Al Futtaim has posted a revenue of $4.87 billion (17.9 billion dirhams) for the first six months (H1) of the year, an increase of one per cent year-on-year, the company said in a statement.
EBITDA increased by 1 per cent at 2.1 billion dirhams, while the group’s increased focus on working capital management and operational excellence resulted in operating cash flow amounting to 115 per cent of EBITDA.
The group’s assets increased 7 per cent to approximately 64 billion dirhams, on account of the introduction of IFRS16. Net borrowings for the first half of the year stood at around 12.8 billion dirhams.
Shopping mall and leisure pioneer Majid Al Futtaim has posted a revenue of $4.87 billion (17.9 billion dirhams) for the first six months (H1) of the year, an increase of one per cent year-on-year, the company said in a statement.
EBITDA increased by 1 per cent at 2.1 billion dirhams, while the group’s increased focus on working capital management and operational excellence resulted in operating cash flow amounting to 115 per cent of EBITDA.
The group’s assets increased 7 per cent to approximately 64 billion dirhams, on account of the introduction of IFRS16. Net borrowings for the first half of the year stood at around 12.8 billion dirhams.
Brent oil holds above $60 as lower inventories boost WTI - Reuters
Brent oil holds above $60 as lower inventories boost WTI - Reuters:
Brent oil held above $60 a barrel on Thursday, withstanding pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted West Texas Intermediate (WTI) crude futures.
International benchmark Brent crude was up 2 cents at $60.51 a barrel by 1215 GMT. WTI was up 48 cents at $56.26 a barrel.
“If the API (American Petroleum Institute) unexpectedly supplied bullets to oil bulls on Tuesday evening so that they could fire from all cylinders, the EIA flung the door of the ammunition depot wide open yesterday,” Tamas Varga of oil brokerage PVM said.
Brent oil held above $60 a barrel on Thursday, withstanding pressure from concerns about economic growth, while a sharp fall in U.S. inventories boosted West Texas Intermediate (WTI) crude futures.
International benchmark Brent crude was up 2 cents at $60.51 a barrel by 1215 GMT. WTI was up 48 cents at $56.26 a barrel.
“If the API (American Petroleum Institute) unexpectedly supplied bullets to oil bulls on Tuesday evening so that they could fire from all cylinders, the EIA flung the door of the ammunition depot wide open yesterday,” Tamas Varga of oil brokerage PVM said.
#UAE's Utico confident of securing deal for Singapore's Hyflux: CEO - Reuters
UAE's Utico confident of securing deal for Singapore's Hyflux: CEO - Reuters:
United Arab Emirates-based Utico FZC said on Thursday it was confident a restructuring deal with Singapore’s indebted Hyflux Ltd (HYFL.SI) could be reached, after the two sides earlier issued conflicting statements about progress on an agreement.
Utico announced at the start of the week that a deal had been reached in which it would take 88% of Hyflux, but the Singaporean firm said on Wednesday no definitive agreement had been struck although discussions were advanced.
Hyflux, which is under a court-supervised restructuring process, was once considered a national champion running a strategically important water source for the city-state.
United Arab Emirates-based Utico FZC said on Thursday it was confident a restructuring deal with Singapore’s indebted Hyflux Ltd (HYFL.SI) could be reached, after the two sides earlier issued conflicting statements about progress on an agreement.
Utico announced at the start of the week that a deal had been reached in which it would take 88% of Hyflux, but the Singaporean firm said on Wednesday no definitive agreement had been struck although discussions were advanced.
Hyflux, which is under a court-supervised restructuring process, was once considered a national champion running a strategically important water source for the city-state.
MIDEAST STOCKS- #Saudi index hits 8-month low; #Qatar outweighs regional markets - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi index hits 8-month low; Qatar outweighs regional markets - Agricultural Commodities - Reuters:
Saudi Arabian stocks closed at an
eight-month low on Thursday as banking shares continued to weigh
on the market, while Qatar outperformed other major Gulf markets
mainly boosted by financial shares.
On Wednesday, a second batch of Saudi shares was added to
the MSCI emerging markets index after the country's stocks were
first included in the index in May.
The inclusion brought Saudi's share to 2.8% of the index's
total market capitalization.
However, the event failed to provide upward momentum for the
Saudi stocks as receding fund inflows rattled investor
confidence.
Saudi Arabian stocks closed at an
eight-month low on Thursday as banking shares continued to weigh
on the market, while Qatar outperformed other major Gulf markets
mainly boosted by financial shares.
On Wednesday, a second batch of Saudi shares was added to
the MSCI emerging markets index after the country's stocks were
first included in the index in May.
The inclusion brought Saudi's share to 2.8% of the index's
total market capitalization.
However, the event failed to provide upward momentum for the
Saudi stocks as receding fund inflows rattled investor
confidence.
Majid Al Futtaim CEO: Egypt Continues to Be Growth Market
Bloomberg.com:
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding LLC, talks about the company's financial results and business outlook. The Middle East operator of Carrefour SA stores posted a 1% increase in first-half revenue amid "challenging market conditions and more cost-conscious consumer behavior." Bejjani speaks with Bloomberg's Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Alain Bejjani, chief executive officer of Majid Al Futtaim Holding LLC, talks about the company's financial results and business outlook. The Middle East operator of Carrefour SA stores posted a 1% increase in first-half revenue amid "challenging market conditions and more cost-conscious consumer behavior." Bejjani speaks with Bloomberg's Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
IShares MSCI #SaudiArabia ETF Sees Record NYSE Outflows - Bloomberg
IShares MSCI Saudi Arabia ETF Sees Record NYSE Outflows - Bloomberg:
Investors in a New York-listed exchange-traded fund tracking Saudi Arabian stocks withdrew the most money on record, just as MSCI Inc. completed the country’s long-waited upgrade to its widely tracked emerging-markets benchmark.
Outflows from the iShares MSCI Saudi Arabia soared to $119 million on Aug. 27, the most for any day since its inception in 2015, Bloomberg Data show. It’s the biggest ETF focused on Saudi equities trading in the U.S., with $659 million in assets.
It’s been a good week for those seeking to pare bets on a market that brokers including Morgan Stanley say has become too expensive, given weakening fundamentals. MSCI on Tuesday wrapped up the second phase of including Saudi shares in its developing nations index, prompting billions of dollars in inflows from passive funds. Some active managers took advantage of the increased liquidity to reduce their holdings. The main gauge in Riyadh is down 3.3% this week.
Investors in a New York-listed exchange-traded fund tracking Saudi Arabian stocks withdrew the most money on record, just as MSCI Inc. completed the country’s long-waited upgrade to its widely tracked emerging-markets benchmark.
Outflows from the iShares MSCI Saudi Arabia soared to $119 million on Aug. 27, the most for any day since its inception in 2015, Bloomberg Data show. It’s the biggest ETF focused on Saudi equities trading in the U.S., with $659 million in assets.
It’s been a good week for those seeking to pare bets on a market that brokers including Morgan Stanley say has become too expensive, given weakening fundamentals. MSCI on Tuesday wrapped up the second phase of including Saudi shares in its developing nations index, prompting billions of dollars in inflows from passive funds. Some active managers took advantage of the increased liquidity to reduce their holdings. The main gauge in Riyadh is down 3.3% this week.
Oil Drops as U.S. Inventories Optimism Gives Way to Trade Gloom - Bloomberg
Oil Drops as U.S. Inventories Optimism Gives Way to Trade Gloom - Bloomberg:
Oil snapped a two-day gain as investors weighed a sizable drop in U.S. inventories against a trade war that shows few signs it will be resolved.
Futures in New York dropped as much as 0.6% after rallying 4% over the previous two sessions. U.S. stockpiles fell by 10 million barrels last week to the lowest since October 2018, the Energy Information Administration reported. Treasury Secretary Steven Mnuchin said Wednesday that U.S. trade officials expect Chinese negotiators to visit Washington, but he wouldn’t say whether a previously planned September meeting would take place.
Oil snapped a two-day gain as investors weighed a sizable drop in U.S. inventories against a trade war that shows few signs it will be resolved.
Futures in New York dropped as much as 0.6% after rallying 4% over the previous two sessions. U.S. stockpiles fell by 10 million barrels last week to the lowest since October 2018, the Energy Information Administration reported. Treasury Secretary Steven Mnuchin said Wednesday that U.S. trade officials expect Chinese negotiators to visit Washington, but he wouldn’t say whether a previously planned September meeting would take place.
#Dubai Property Developer Sobha Plans IPO Even as Prices Decline - Bloomberg
Dubai Property Developer Sobha Plans IPO Even as Prices Decline - Bloomberg:
Property developer Sobha LLC is planning an initial public offering of its United Arab Emirates business in 2022 even as a slump in prices weighs on developers in its Dubai base.
The company will wait to meet profitability projections before making a final decision on the IPO, founder P.N.C. Menon said in an interview. It hasn’t decided where to list the shares.
Sobha expects revenue to jump to about 2 billion dirhams ($545 million) this year from 620 million dirhams in 2018 as it hands over more homes in its Sobha Hartland development, Menon said. About 6,000 homes will be delivered at the $4 billion project over the next six years.
Property developer Sobha LLC is planning an initial public offering of its United Arab Emirates business in 2022 even as a slump in prices weighs on developers in its Dubai base.
The company will wait to meet profitability projections before making a final decision on the IPO, founder P.N.C. Menon said in an interview. It hasn’t decided where to list the shares.
Sobha expects revenue to jump to about 2 billion dirhams ($545 million) this year from 620 million dirhams in 2018 as it hands over more homes in its Sobha Hartland development, Menon said. About 6,000 homes will be delivered at the $4 billion project over the next six years.
#SaudiArabia's Tadawul to attract $5bln in second phase of MSCI upgrade | ZAWYA MENA Edition
Saudi Arabia's Tadawul to attract $5bln in second phase of MSCI upgrade | ZAWYA MENA Edition:
Having completed its full inclusion on the MSCI emerging markets index, Saudi Arabia’s stock exchange, the Tadawul, is expected to attract an additional $5 billion (18.36 billion dirhams) in equity inflows, according to the Institute of International Finance (IIF).
Saudi Arabia’s stock market, worth approximately $549 billion, is the largest in the region. It will have a weight of 2.8 per cent on the MSCI index.
Investor appetite for Saudi equities spiked in August, and foreign equity inflows to the kingdom surpassed those of India and China during first eight months of this year. The IIF has hailed this as a “remarkable” development given that Saudi Arabia’s economy is just a fraction of the size of the two other countries.
Having completed its full inclusion on the MSCI emerging markets index, Saudi Arabia’s stock exchange, the Tadawul, is expected to attract an additional $5 billion (18.36 billion dirhams) in equity inflows, according to the Institute of International Finance (IIF).
Saudi Arabia’s stock market, worth approximately $549 billion, is the largest in the region. It will have a weight of 2.8 per cent on the MSCI index.
Investor appetite for Saudi equities spiked in August, and foreign equity inflows to the kingdom surpassed those of India and China during first eight months of this year. The IIF has hailed this as a “remarkable” development given that Saudi Arabia’s economy is just a fraction of the size of the two other countries.
Exclusive: Oil giants shower #Qatar with crown jewels in race for LNG prize - Reuters
Exclusive: Oil giants shower Qatar with crown jewels in race for LNG prize - Reuters:
When Royal Dutch Shell wanted to buy a stake last year in a promising exploration block off South Africa, Total, the asset’s main shareholder, used its right to stymie the deal and acquired the share itself, only to sell it on to Qatar Petroleum.
The rapid turn of events caught some of those involved by surprise, according to company sources close to the transaction, whose details have not previously been reported.
For Total, it was part of a wider quest to tighten ties with Qatar Petroleum (QP) in an effort to secure a stake in the Gulf country’s planned expansion of its liquefied natural gas (LNG) facilities, already the world’s largest and one of the most lucrative projects in the energy sector.
When Royal Dutch Shell wanted to buy a stake last year in a promising exploration block off South Africa, Total, the asset’s main shareholder, used its right to stymie the deal and acquired the share itself, only to sell it on to Qatar Petroleum.
The rapid turn of events caught some of those involved by surprise, according to company sources close to the transaction, whose details have not previously been reported.
For Total, it was part of a wider quest to tighten ties with Qatar Petroleum (QP) in an effort to secure a stake in the Gulf country’s planned expansion of its liquefied natural gas (LNG) facilities, already the world’s largest and one of the most lucrative projects in the energy sector.
MIDEAST STOCKS-Banks hurt #Saudi; other major Gulf markets up - Reuters
MIDEAST STOCKS-Banks hurt Saudi; other major Gulf markets up - Reuters:
Saudi stocks slipped on Thursday, extending losses for the second straight session pressured by banking shares, as receding fund inflows continued to keep investors at bay while other major Gulf markets rose.
On Wednesday, a second batch of Saudi shares was added to the MSCI emerging markets index but the move failed to lift the market as funds remain bearish.
Sixty percent of fund managers said they would reduce their investments in Saudi Arabia, displaying bearishness that has carried over from last month.
Saudi stocks slipped on Thursday, extending losses for the second straight session pressured by banking shares, as receding fund inflows continued to keep investors at bay while other major Gulf markets rose.
On Wednesday, a second batch of Saudi shares was added to the MSCI emerging markets index but the move failed to lift the market as funds remain bearish.
Sixty percent of fund managers said they would reduce their investments in Saudi Arabia, displaying bearishness that has carried over from last month.
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