Higher foreign ownership limits to boost UAE investment flows | Business – Gulf News:
A number of listed companies in the UAE, particularly banks, have announced their intention to increase foreign ownership limits (FOL), attracting higher portfolio investments into the UAE.
Analysts expect the increased foreign investment into domestic banks to offer manifold benefits for the institutions concerned, the stock market and the economy as a whole.
“Increasing foreign ownership levels would enable banks to broaden their investor base and attract capital at a time when economic uncertainty looms large. It also bodes well for the privatisation programme and shall sustain capital inflows into UAE,” said M.R. Raghu, head of research at Kuwait Financial Centre (Markaz).
Sunday, 8 September 2019
#Kuwait’s CMA to Start Stake Sale of Bourse to Local Investors - Bloomberg
Kuwait’s CMA to Start Stake Sale of Bourse to Local Investors - Bloomberg:
The Kuwait Capital Market Authority will start next month a public offering of its 50% stake in the local stock exchange.
Only Kuwaiti citizens will be eligible to buy the shares, according to a press release on Sunday. The subscription period will run from Oct. 1 to Dec. 1, with the offering price set at 100 fils per share, or one-tenth of a dinar.
The offering is the second and final stage of a privatization process that started in February, when the markets regulator sold 44% of the company to a consortium of domestic and international investors.
The Kuwait Capital Market Authority will start next month a public offering of its 50% stake in the local stock exchange.
Only Kuwaiti citizens will be eligible to buy the shares, according to a press release on Sunday. The subscription period will run from Oct. 1 to Dec. 1, with the offering price set at 100 fils per share, or one-tenth of a dinar.
The offering is the second and final stage of a privatization process that started in February, when the markets regulator sold 44% of the company to a consortium of domestic and international investors.
#SaudiArabia Oil Ministry Shake-Up: What It Means - Bloomberg
Saudi Arabia Oil Ministry Shake-Up: What It Means - Bloomberg:
It seems to me that Khalid Al-Falih, just ousted as Saudi Arabia’s Energy Minister, is better off out of it. Imagine waking every morning wondering how you’re going to spend that day appeasing two masters. One of them, a capricious force capable of fueling instability in the Middle East. The other, the oil market.
Having recently been stripped of his industry and mining portfolios as well as the chairmanship of Saudi Arabian Oil Co. – known as Saudi Aramco – Al-Falih’s latest demotion is more of a coda than a coup. This being Saudi Arabia, especially under the current rule of the King and his son Crown Prince Mohammed bin Salman, there is naturally the whiff of intrigue. A more straightforward explanation is that the oil crash and long-delayed initial public offering of Aramco have claimed another scalp.
Aramco’s new chairman is Yasir Al-Rumayyan, a board member running the sovereign wealth fund that is due to receive the world’s biggest ever round of seed funding from the IPO. He is also a close adviser of MBS, as the crown prince is known. Meanwhile, the new energy minister will be Prince Abdulaziz bin Salman, an energy ministry veteran who just happens to also be the half-b
It seems to me that Khalid Al-Falih, just ousted as Saudi Arabia’s Energy Minister, is better off out of it. Imagine waking every morning wondering how you’re going to spend that day appeasing two masters. One of them, a capricious force capable of fueling instability in the Middle East. The other, the oil market.
Having recently been stripped of his industry and mining portfolios as well as the chairmanship of Saudi Arabian Oil Co. – known as Saudi Aramco – Al-Falih’s latest demotion is more of a coda than a coup. This being Saudi Arabia, especially under the current rule of the King and his son Crown Prince Mohammed bin Salman, there is naturally the whiff of intrigue. A more straightforward explanation is that the oil crash and long-delayed initial public offering of Aramco have claimed another scalp.
Aramco’s new chairman is Yasir Al-Rumayyan, a board member running the sovereign wealth fund that is due to receive the world’s biggest ever round of seed funding from the IPO. He is also a close adviser of MBS, as the crown prince is known. Meanwhile, the new energy minister will be Prince Abdulaziz bin Salman, an energy ministry veteran who just happens to also be the half-b
#Saudi Shares Fall Second Day, With Banks Pressuring: Inside EM - Bloomberg
Saudi Shares Fall Second Day, With Banks Pressuring: Inside EM - Bloomberg:
Saudi Arabia’s equity index ended lower for a second day, after spending much of the trading session in the green, as investors assessed changes in the top position within the country’s energy ministry.
Over the weekend, the Saudi king named his son as energy minister replacing Khalid al-Falih, who had been the face of OPEC diplomacy over the past three years. The new minister, Prince Abdulaziz bin Salman, is half-brother to the Crown Prince Mohammed bin Salman and has served in the energy ministry for decades, most recently as state minister for energy affairs. He is seen as a capable and experienced technocrat.
While the reshuffle is seen as having little direct impact on the Saudi market, investors have been shying away from some expensive stocks in Riyadh, said Marwan Haddad, senior portfolio manager at Emirates NBD Asset Management, in an interview to Bloomberg Television.
Saudi Arabia’s equity index ended lower for a second day, after spending much of the trading session in the green, as investors assessed changes in the top position within the country’s energy ministry.
Over the weekend, the Saudi king named his son as energy minister replacing Khalid al-Falih, who had been the face of OPEC diplomacy over the past three years. The new minister, Prince Abdulaziz bin Salman, is half-brother to the Crown Prince Mohammed bin Salman and has served in the energy ministry for decades, most recently as state minister for energy affairs. He is seen as a capable and experienced technocrat.
While the reshuffle is seen as having little direct impact on the Saudi market, investors have been shying away from some expensive stocks in Riyadh, said Marwan Haddad, senior portfolio manager at Emirates NBD Asset Management, in an interview to Bloomberg Television.
U.S. to Press #UAE CEOs to Tighten Financial Screws on Iran - Bloomberg
U.S. to Press U.A.E. CEOs to Tighten Financial Screws on Iran - Bloomberg:
A senior U.S. Treasury official is in the United Arab Emirates to meet with the chiefs of the country’s banks and shipping companies as the Trump administration seeks to further tighten sanctions against the Iranian regime.
Sigal Mandelker, the Treasury’s undersecretary for terrorism and financial intelligence, will be meeting the chief executive officers of seven U.A.E. banks on Sunday and Monday. She will also hold talks with officials before heading to Switzerland and Israel.
“We’re discussing ways to work together to counter terrorism and Iran’s destabilizing influence in the region and around the world,” Mandelker told reporters in the capital, Abu Dhabi, on Sunday.
A senior U.S. Treasury official is in the United Arab Emirates to meet with the chiefs of the country’s banks and shipping companies as the Trump administration seeks to further tighten sanctions against the Iranian regime.
Sigal Mandelker, the Treasury’s undersecretary for terrorism and financial intelligence, will be meeting the chief executive officers of seven U.A.E. banks on Sunday and Monday. She will also hold talks with officials before heading to Switzerland and Israel.
“We’re discussing ways to work together to counter terrorism and Iran’s destabilizing influence in the region and around the world,” Mandelker told reporters in the capital, Abu Dhabi, on Sunday.
It’s 1986 Again as #Saudi King Removes Energy Chief: Oil Strategy - Bloomberg
It’s 1986 Again as Saudi King Removes Energy Chief: Oil Strategy - Bloomberg:
A Saudi ruler replaces his oil minister for failing to deliver high enough prices as demand growth weakens and non-OPEC supply soars. I thought I’d woken up in 1986.
My former boss, Sheikh Zaki Yamani, was removed from his role as energy minister by King Fahd that year, after failing to deliver the impossible combination of higher oil prices -- $18 a barrel was what the king wanted -- and higher production for the kingdom. Outgoing minister Khalid Al-Falih seems to have faced a similar challenge. Except now the kingdom needs an oil price closer to $85 to balance its budget and, as ever, that seems to take priority over long-term considerations of market share.
Sure, there are differences, but in essence two competent technocrats lost their jobs for failing to deliver the impossible.
A Saudi ruler replaces his oil minister for failing to deliver high enough prices as demand growth weakens and non-OPEC supply soars. I thought I’d woken up in 1986.
My former boss, Sheikh Zaki Yamani, was removed from his role as energy minister by King Fahd that year, after failing to deliver the impossible combination of higher oil prices -- $18 a barrel was what the king wanted -- and higher production for the kingdom. Outgoing minister Khalid Al-Falih seems to have faced a similar challenge. Except now the kingdom needs an oil price closer to $85 to balance its budget and, as ever, that seems to take priority over long-term considerations of market share.
Sure, there are differences, but in essence two competent technocrats lost their jobs for failing to deliver the impossible.
U.S. will sanction whoever purchases #Iran's oil: official - Reuters
U.S. will sanction whoever purchases Iran's oil: official - Reuters:
The United States will continue to impose sanctions on whoever purchases Iran’s oil or conducts business with Iran’s Revolutionary Guards and no oil waivers will be re-issued, a U.S. official said on Sunday.
Iran’s crude oil exports were slashed by more than 80% due to re-imposed sanctions by the United States after President Donald Trump exited last year Iran’s 2015 nuclear deal with world powers.
“We will continue to put pressure on Iran and as President (Trump) said there will be no waivers of any kind for Iran’s oil,” Sigal Mandelker, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, told reporters.
The United States will continue to impose sanctions on whoever purchases Iran’s oil or conducts business with Iran’s Revolutionary Guards and no oil waivers will be re-issued, a U.S. official said on Sunday.
Iran’s crude oil exports were slashed by more than 80% due to re-imposed sanctions by the United States after President Donald Trump exited last year Iran’s 2015 nuclear deal with world powers.
“We will continue to put pressure on Iran and as President (Trump) said there will be no waivers of any kind for Iran’s oil,” Sigal Mandelker, U.S. Treasury Under Secretary for Terrorism and Financial Intelligence, told reporters.
#SaudiArabia launches military industrial licensing program - Reuters
Saudi Arabia launches military industrial licensing program - Reuters:
Saudi Arabia said on Sunday it had begun accepting license applications for firms in the military industrial sector, a major target under plans to diversify the kingdom’s economy away from oil exports.
The General Authority for Military Industries (GAMI) will license companies to manufacture firearms, ammunition, military explosives, military equipment, individual military equipment, and military electronics, state news agency SPA reported.
GAMI Governor Ahmed al-Ohali said the move would open the door for foreign and local investment in the sector.
Saudi Arabia said on Sunday it had begun accepting license applications for firms in the military industrial sector, a major target under plans to diversify the kingdom’s economy away from oil exports.
The General Authority for Military Industries (GAMI) will license companies to manufacture firearms, ammunition, military explosives, military equipment, individual military equipment, and military electronics, state news agency SPA reported.
GAMI Governor Ahmed al-Ohali said the move would open the door for foreign and local investment in the sector.
MIDEAST STOCKS-Most Gulf markets drop, #Dubai leads losses - Reuters
MIDEAST STOCKS-Most Gulf markets drop, Dubai leads losses - Reuters:
Most Gulf markets fell on Sunday, pulled down by
financial shares, while Dubai’s stock market unperformed regional peers as its
top lender Emirates NBD broke a four-day winning streak.
Dubai's index closed 0.7% lower with Emirates NBD falling 2.9%.
The bank's shares have risen in recent sessions after NBD raised its foreign
ownership limit to 20% from 5% and announced its intention to further hike the
limit to 40% in future.
Dubai's developers also weighed on the index as DAMAC Properties
and contractor Arabtec Holding both shed 1.2%.
Dubai house prices are expected to decline sharply this year and next as a
slowdown in the economy and an oversupply of housing units pose big downside
risks to their already weak outlook, a Reuters poll found.
Most Gulf markets fell on Sunday, pulled down by
financial shares, while Dubai’s stock market unperformed regional peers as its
top lender Emirates NBD broke a four-day winning streak.
Dubai's index closed 0.7% lower with Emirates NBD falling 2.9%.
The bank's shares have risen in recent sessions after NBD raised its foreign
ownership limit to 20% from 5% and announced its intention to further hike the
limit to 40% in future.
Dubai's developers also weighed on the index as DAMAC Properties
and contractor Arabtec Holding both shed 1.2%.
Dubai house prices are expected to decline sharply this year and next as a
slowdown in the economy and an oversupply of housing units pose big downside
risks to their already weak outlook, a Reuters poll found.
#Saudi Banker’s Rise to Top Aramco Job Tracks Prince’s Own Ascent - Bloomberg
Saudi Banker’s Rise to Top Aramco Job Tracks Prince’s Own Ascent - Bloomberg:
If ever there was a doubt that Yasir Al-Rumayyan belonged to Crown Prince Mohammed bin Salman’s innermost circle, a photo that went viral in December in Saudi Arabia removed it.
It showed the two of them with five others on Mount Lawz, in the northwestern part of the country, in baseball caps, shorts and t-shirts, prompting Saudi-watchers to call them “hiking bros.”
More evidence of Al-Rumayyan’s rising clout emerged last week when the former banker, who heads the country’s about $320 billion sovereign wealth fund, was appointed chairman of oil producer Saudi Aramco. Al-Rumayyan will be stepping into what’s arguably the country’s top corporate job as the world’s most profitable company prepares for what may be the biggest initial public offering ever.
If ever there was a doubt that Yasir Al-Rumayyan belonged to Crown Prince Mohammed bin Salman’s innermost circle, a photo that went viral in December in Saudi Arabia removed it.
It showed the two of them with five others on Mount Lawz, in the northwestern part of the country, in baseball caps, shorts and t-shirts, prompting Saudi-watchers to call them “hiking bros.”
More evidence of Al-Rumayyan’s rising clout emerged last week when the former banker, who heads the country’s about $320 billion sovereign wealth fund, was appointed chairman of oil producer Saudi Aramco. Al-Rumayyan will be stepping into what’s arguably the country’s top corporate job as the world’s most profitable company prepares for what may be the biggest initial public offering ever.
Emirates NBD Near to Hiring Banks for $2 Billion Rights Sale - Bloomberg
Emirates NBD Near to Hiring Banks for $2 Billion Rights Sale - Bloomberg:
Dubai’s biggest bank is close to appointing Citigroup Inc. and Morgan Stanley to manage a rights share offering of as much as $2 billion, people with knowledge of the matter said. The shares fell.
Emirates NBD PJSC may also involve its investment banking division, Emirates NBD Capital Ltd., in the process and could hire other banks as well, the people said, asking not to be identified because the discussions are private. Banks haven’t formally been hired for the sale and the situation may change, they said.
A spokeswoman for Citigroup declined to comment. A spokesman for Morgan Stanley declined to comment.
Dubai’s biggest bank is close to appointing Citigroup Inc. and Morgan Stanley to manage a rights share offering of as much as $2 billion, people with knowledge of the matter said. The shares fell.
Emirates NBD PJSC may also involve its investment banking division, Emirates NBD Capital Ltd., in the process and could hire other banks as well, the people said, asking not to be identified because the discussions are private. Banks haven’t formally been hired for the sale and the situation may change, they said.
A spokeswoman for Citigroup declined to comment. A spokesman for Morgan Stanley declined to comment.
#SaudiArabia Has a New Energy Minister: What It Means for Oil - Bloomberg
Saudi Arabia Has a New Energy Minister: What It Means for Oil - Bloomberg:
Saudi Arabia’s King Salman Bin Abdulaziz named his son Prince Abdulaziz as the country’s energy minister, replacing Khalid Al-Falih, who led three years of active OPEC diplomacy to forge a global alliance with producers such as Russia to limit production in order to prop up prices. Will this change the policy, or will it affect Saudi Aramco’s plan for an initial public offering?
Who is the new minister in charge?
Prince Abdulaziz served as deputy petroleum minister for a dozen years and most recently as minister of state for energy since 2017. He is an older half-brother of the influential Crown Prince Mohammed bin Salman, though the pair aren’t believed to be close and are quite far apart in age. Prince Abdulaziz’s years in the ministry prepare him for the top role.
Saudi Arabia’s King Salman Bin Abdulaziz named his son Prince Abdulaziz as the country’s energy minister, replacing Khalid Al-Falih, who led three years of active OPEC diplomacy to forge a global alliance with producers such as Russia to limit production in order to prop up prices. Will this change the policy, or will it affect Saudi Aramco’s plan for an initial public offering?
Who is the new minister in charge?
Prince Abdulaziz served as deputy petroleum minister for a dozen years and most recently as minister of state for energy since 2017. He is an older half-brother of the influential Crown Prince Mohammed bin Salman, though the pair aren’t believed to be close and are quite far apart in age. Prince Abdulaziz’s years in the ministry prepare him for the top role.
The World's Oil Glut Is Much Worse Than It Looks - Bloomberg
The World's Oil Glut Is Much Worse Than It Looks - Bloomberg:
A meeting of ministers from OPEC states and their oil-producing allies will take place in Abu Dhabi this week. It will probably be a subdued affair. Oil prices remain stubbornly low despite big output cuts by the so-called OPEC+ group and geopolitical factors such as the U.S. sanctions on Iran.
The meeting of the Joint Ministerial Monitoring Committee, a body set up by OPEC+ to oversee its production-cutting strategy, won’t reset the group’s approach but it might provide some clearer guidance on its goals. The ministers insist that they don’t have a target for how far they want the price of crude to rise, and say instead that their aim is to reduce excess stockpiles.
But for market-watchers it’s tough to even get a sense of how big that stockpile is, and hence when the output-cutting exercise may be seen to have done its job.
A meeting of ministers from OPEC states and their oil-producing allies will take place in Abu Dhabi this week. It will probably be a subdued affair. Oil prices remain stubbornly low despite big output cuts by the so-called OPEC+ group and geopolitical factors such as the U.S. sanctions on Iran.
The meeting of the Joint Ministerial Monitoring Committee, a body set up by OPEC+ to oversee its production-cutting strategy, won’t reset the group’s approach but it might provide some clearer guidance on its goals. The ministers insist that they don’t have a target for how far they want the price of crude to rise, and say instead that their aim is to reduce excess stockpiles.
But for market-watchers it’s tough to even get a sense of how big that stockpile is, and hence when the output-cutting exercise may be seen to have done its job.
#UAE's Shuaa Capital to sell non-core businesses to IHC subsidiary | ZAWYA MENA Edition
UAE's Shuaa Capital to sell non-core businesses to IHC subsidiary | ZAWYA MENA Edition:
UAE-based financial services group Shuaa Capital will sell SHUAA Securities brokerage and market-making businesses in the UAE to IHC RSC, a subsidiary of International Holdings Company (IHC), pending regulatory approvals.
IHC is an investment holding company with diverse interests. Under the terms of the all-cash deal, IHC will acquire the operations of both businesses, which currently function as stand-alone business units within SHUAA, the financial services group said in a statement.
This sale is part of the strategy of the combined entity to exit non-core businesses and focus on asset management and investment banking, the statement said.
UAE-based financial services group Shuaa Capital will sell SHUAA Securities brokerage and market-making businesses in the UAE to IHC RSC, a subsidiary of International Holdings Company (IHC), pending regulatory approvals.
IHC is an investment holding company with diverse interests. Under the terms of the all-cash deal, IHC will acquire the operations of both businesses, which currently function as stand-alone business units within SHUAA, the financial services group said in a statement.
This sale is part of the strategy of the combined entity to exit non-core businesses and focus on asset management and investment banking, the statement said.
#Kuwait's CMA to sell 50% stake in Boursa Kuwait to citizens | ZAWYA MENA Edition
Kuwait's CMA to sell 50% stake in Boursa Kuwait to citizens | ZAWYA MENA Edition:
Kuwait’s Capital Markets Authority (CMA) will launch an initial public offering of its 50 percent stake in Boursa Kuwait to citizens on October 1.
The subscription period will be open for 3 months, from October 1 to December 1, 2019, with an offer price of 100 Kuwait fils per share. The number of shares offered is close to 100.39 million shares.
The CMA’s 50 percent stake will be offered to the public to complete the privatisation process of the company.
Kuwait’s Capital Markets Authority (CMA) will launch an initial public offering of its 50 percent stake in Boursa Kuwait to citizens on October 1.
The subscription period will be open for 3 months, from October 1 to December 1, 2019, with an offer price of 100 Kuwait fils per share. The number of shares offered is close to 100.39 million shares.
The CMA’s 50 percent stake will be offered to the public to complete the privatisation process of the company.
No shift in #Saudi OPEC policy after naming new energy minister: official - Reuters
No shift in Saudi OPEC policy after naming new energy minister: official - Reuters:
There will be no shift in Saudi Arabia’s OPEC policy after the appointment of Prince Abdulaziz bin Salman as the new energy minister, and the top oil exporter will continue with the OPEC-led output cut agreement, a Saudi official said on Sunday.
Prince Abdulaziz, a son of the king and veteran oil official, was named earlier on Sunday as the Minister of Energy, replacing Khalid al-Falih. The appointment marked the first time that a member of Al Saud ruling family has headed the energy portfolio.
“There is no shift in Saudi oil and OPEC policy. Prince Abdulaziz will work on strengthening cooperation among OPEC and non-OPEC,” the official said.
There will be no shift in Saudi Arabia’s OPEC policy after the appointment of Prince Abdulaziz bin Salman as the new energy minister, and the top oil exporter will continue with the OPEC-led output cut agreement, a Saudi official said on Sunday.
Prince Abdulaziz, a son of the king and veteran oil official, was named earlier on Sunday as the Minister of Energy, replacing Khalid al-Falih. The appointment marked the first time that a member of Al Saud ruling family has headed the energy portfolio.
“There is no shift in Saudi oil and OPEC policy. Prince Abdulaziz will work on strengthening cooperation among OPEC and non-OPEC,” the official said.
#Saudi king replaces energy minister, naming one of his sons
Saudi king replaces energy minister, naming one of his sons:
Saudi Arabia’s King Salman replaced the country’s energy minister with one of his own sons Sunday, naming Prince Abdulaziz bin Salman to one of the most important positions in the country as oil prices remain stubbornly below what is needed to keep up with government spending.
The new energy minister is an older half-brother to 34-year-old Crown Prince Mohammed bin Salman and replaces Khalid al-Falih, who’d been in the role since 2016.
Prince Abdulaziz is an experienced oil industry figure in Saudi Arabia. He has been minister of state for energy affairs since 2017, but is not known to be close to Prince Mohammed, the king’s most powerful son and heir to the throne.
Saudi Arabia’s King Salman replaced the country’s energy minister with one of his own sons Sunday, naming Prince Abdulaziz bin Salman to one of the most important positions in the country as oil prices remain stubbornly below what is needed to keep up with government spending.
The new energy minister is an older half-brother to 34-year-old Crown Prince Mohammed bin Salman and replaces Khalid al-Falih, who’d been in the role since 2016.
Prince Abdulaziz is an experienced oil industry figure in Saudi Arabia. He has been minister of state for energy affairs since 2017, but is not known to be close to Prince Mohammed, the king’s most powerful son and heir to the throne.
#UAE energy minister says oil producers are 'committed' to balancing market - Reuters
UAE energy minister says oil producers are 'committed' to balancing market - Reuters:
United Arab Emirates Minister of Energy and Industry Suhail al-Mazrouei said on Sunday that OPEC and non-OPEC producers are “committed” to achieving oil market balance, when asked about possible deeper cuts to production levels.
He was not concerned about current oil prices, but rather the level of oil inventories, he told a news conference in Abu Dhabi.
He said political effects and concerns about global trade tensions rather than levels of supply and demand were affecting the market.
United Arab Emirates Minister of Energy and Industry Suhail al-Mazrouei said on Sunday that OPEC and non-OPEC producers are “committed” to achieving oil market balance, when asked about possible deeper cuts to production levels.
He was not concerned about current oil prices, but rather the level of oil inventories, he told a news conference in Abu Dhabi.
He said political effects and concerns about global trade tensions rather than levels of supply and demand were affecting the market.
Egypt's Fawry eyes #UAE deal, #Saudi and Kuwaiti markets - Reuters
Egypt's Fawry eyes UAE deal, Saudi and Kuwaiti markets - Reuters:
Egyptian digital payments company Fawry (FWRY.CA) plans to expand into the United Arab Emirates by the end of the year and also hopes to enter Saudi Arabia and Kuwait in 2020, its managing director said.
Founded in 2009, Fawry offers digital payments to companies and individuals in Egypt, the Arab world’s most populous nation, where many do not have a bank account.
Mohamed Okasha told Reuters that Fawry, which made a stock market debut in August, planned to complete a deal with one of the largest listed UAE banks to use its technology platform in the Gulf country.
Egyptian digital payments company Fawry (FWRY.CA) plans to expand into the United Arab Emirates by the end of the year and also hopes to enter Saudi Arabia and Kuwait in 2020, its managing director said.
Founded in 2009, Fawry offers digital payments to companies and individuals in Egypt, the Arab world’s most populous nation, where many do not have a bank account.
Mohamed Okasha told Reuters that Fawry, which made a stock market debut in August, planned to complete a deal with one of the largest listed UAE banks to use its technology platform in the Gulf country.
MIDEAST STOCKS-Financials lead #Saudi higher, Emirates NBD pulls #Dubai lower - Agricultural Commodities - Reuters
MIDEAST STOCKS-Financials lead Saudi higher, Emirates NBD pulls Dubai lower - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market opened higher on Sunday, led by gains in financial and petrochemical shares while Emirates NBD pushed Dubai bourse lower.
The Saudi index was up 0.3% in early trade. Al Rajhi Bank and the Gulf’s largest petrochemical maker Saudi Basic Industries both rose 0.5%.
Saudi Arabia has named Prince Abdulaziz bin Salman, a son of the king, as energy minister, replacing Khalid al-Falih, in a reshuffle that a Saudi official said would cause no shift in Saudi Arabia’s OPEC policy and the top oil exporter will continue with the OPEC-led output cut agreement.
Saudi Arabia’s stock market opened higher on Sunday, led by gains in financial and petrochemical shares while Emirates NBD pushed Dubai bourse lower.
The Saudi index was up 0.3% in early trade. Al Rajhi Bank and the Gulf’s largest petrochemical maker Saudi Basic Industries both rose 0.5%.
Saudi Arabia has named Prince Abdulaziz bin Salman, a son of the king, as energy minister, replacing Khalid al-Falih, in a reshuffle that a Saudi official said would cause no shift in Saudi Arabia’s OPEC policy and the top oil exporter will continue with the OPEC-led output cut agreement.
King Salman appoints son as #Saudi energy minister | Financial Times
King Salman appoints son as Saudi energy minister | Financial Times:
Saudi Arabia has removed energy minister Khalid al-Falih, one of the most powerful figures in the global oil industry, in a dramatic shake-up of the kingdom’s most important government department.
The move, announced in the early hours of Sunday morning, will see King Salman’s son Abdulaziz appointed new energy minister, breaking the longtime convention in which members of the ruling family are not appointed to the top position in the kingdom’s economy.
Analysts said the move would send shockwaves through the global energy industry at a time when Saudi Arabia and its oil producing allies have been struggling to raise prices.
Mr Falih was stripped of his other roles in the past 10 days, including his chairmanship of Saudi oil company Saudi Aramco, and his oversight of the kingdom’s industrial strategy.
Powerful crown prince Mohammed bin Salman has been pushing to transform Saudi Arabia’s economy and make it less dependent on oil in the long-run, but in the short term needs a higher oil price to finance this transformation.
“Falih has paid the price for an oil price that remains stubbornly beneath the $70-80 range needed in Saudi Arabia — and for the persistent weakness of the kingdom’s economy,” said Derek Brower, a director at RS Energy Group.
“Worse still, prices remain too low for the kingdom even though it has shouldered the burden of the Opec cuts in recent months. It’s big for the oil market — Falih was the architect of the cuts deal between Opec and Russia and a persuasive spokesman for their efforts of the past three years to raise oil prices.”
Prince Mohamamed has made the listing of Saudi Aramco the centrepiece of his economic transformation plan. The planned public offering, which has been long delayed, is expected to be the biggest in history. Prince Mohamamed has targeted a valuation of $2trn, but analysts and bankers have warned that this might be optimistic.
The decision was announced in a royal decree published by the official state news agency shortly after midnight on Saturday.
Mr Falih has been the face of Saudi Arabia’s energy policy since he was appointed minister in 2016, but saw his power diminishing in recent weeks. Industrial development and mining were separated from the energy ministry at the end of August, just days before he was removed as chairman of state oil company Saudi Aramco. Yassir al-Rumayyan, who leads the kingdom’s sovereign wealth fund, replaced him in that position.
In addition to his focus on energy, Mr Falih was seen as one of the main voices shaping the kingdom’s economic policy as Saudi Arabia embarked on an ambitious programme to diversify its revenue sources away from oil. He has also played a role in the kingdom’s foreign policy as he helped manage Saudi Arabia’s deepening relationship with Russia as the two major oil producers worked together to prop up prices.
Mr Bower said the market would be nervous as big Saudi oil policy shifts often followed the sacking of an energy minister. “To prevent a sell off, the kingdom will need to be clear that it is sticking with its Opec cuts,” he said.
Russian officials said earlier this week that they did not expect the Saudi decision to remove industry and mining from Mr Falih’s portfolio to affect the kingdom’s energy policy of restraining output. Saudi Arabia has cut its production to less than 10m barrels per day as part of an agreement between the Opec and its allies.
Prince Abdulaziz, the new energy minister, joined the oil ministry in the 1980s and served in several positions including deputy minister and most recently as minister of state for energy affairs, a position he held since 2017. He is the king’s fourth son and a half-brother of Crown Prince Mohammed bin Salman.
The crown prince is spearheading the economic overhaul, including a plan to publicly list shares in Saudi Aramco and changing the kingdom’s business environment to make the country more attractive to foreign investors. But the plan has faced hurdles as international scrutiny of the country’s human rights record has grown after the killing of journalist Jamal Khashoggi last year.
Saudi Arabia has historically kept the position of energy minister separate from direct control of the royal family given its importance to the economy of the kingdom.
Jason Bordoff, a former Obama administration energy adviser, said the appointment of Prince Abdulaziz as the first member of the royal family to lead the oil ministry was significant.
“Al-Falih is very highly regarded, and a shake up like this will always rattle markets, but Abdulaziz has served in the ministry for decades and has strong global relationships, and the market will probably see this as a sign of even stronger commitment to supporting prices and to the IPO.”
Saudi Arabia has removed energy minister Khalid al-Falih, one of the most powerful figures in the global oil industry, in a dramatic shake-up of the kingdom’s most important government department.
The move, announced in the early hours of Sunday morning, will see King Salman’s son Abdulaziz appointed new energy minister, breaking the longtime convention in which members of the ruling family are not appointed to the top position in the kingdom’s economy.
Analysts said the move would send shockwaves through the global energy industry at a time when Saudi Arabia and its oil producing allies have been struggling to raise prices.
Mr Falih was stripped of his other roles in the past 10 days, including his chairmanship of Saudi oil company Saudi Aramco, and his oversight of the kingdom’s industrial strategy.
Powerful crown prince Mohammed bin Salman has been pushing to transform Saudi Arabia’s economy and make it less dependent on oil in the long-run, but in the short term needs a higher oil price to finance this transformation.
“Falih has paid the price for an oil price that remains stubbornly beneath the $70-80 range needed in Saudi Arabia — and for the persistent weakness of the kingdom’s economy,” said Derek Brower, a director at RS Energy Group.
“Worse still, prices remain too low for the kingdom even though it has shouldered the burden of the Opec cuts in recent months. It’s big for the oil market — Falih was the architect of the cuts deal between Opec and Russia and a persuasive spokesman for their efforts of the past three years to raise oil prices.”
Prince Mohamamed has made the listing of Saudi Aramco the centrepiece of his economic transformation plan. The planned public offering, which has been long delayed, is expected to be the biggest in history. Prince Mohamamed has targeted a valuation of $2trn, but analysts and bankers have warned that this might be optimistic.
The decision was announced in a royal decree published by the official state news agency shortly after midnight on Saturday.
Mr Falih has been the face of Saudi Arabia’s energy policy since he was appointed minister in 2016, but saw his power diminishing in recent weeks. Industrial development and mining were separated from the energy ministry at the end of August, just days before he was removed as chairman of state oil company Saudi Aramco. Yassir al-Rumayyan, who leads the kingdom’s sovereign wealth fund, replaced him in that position.
In addition to his focus on energy, Mr Falih was seen as one of the main voices shaping the kingdom’s economic policy as Saudi Arabia embarked on an ambitious programme to diversify its revenue sources away from oil. He has also played a role in the kingdom’s foreign policy as he helped manage Saudi Arabia’s deepening relationship with Russia as the two major oil producers worked together to prop up prices.
Mr Bower said the market would be nervous as big Saudi oil policy shifts often followed the sacking of an energy minister. “To prevent a sell off, the kingdom will need to be clear that it is sticking with its Opec cuts,” he said.
Russian officials said earlier this week that they did not expect the Saudi decision to remove industry and mining from Mr Falih’s portfolio to affect the kingdom’s energy policy of restraining output. Saudi Arabia has cut its production to less than 10m barrels per day as part of an agreement between the Opec and its allies.
Prince Abdulaziz, the new energy minister, joined the oil ministry in the 1980s and served in several positions including deputy minister and most recently as minister of state for energy affairs, a position he held since 2017. He is the king’s fourth son and a half-brother of Crown Prince Mohammed bin Salman.
The crown prince is spearheading the economic overhaul, including a plan to publicly list shares in Saudi Aramco and changing the kingdom’s business environment to make the country more attractive to foreign investors. But the plan has faced hurdles as international scrutiny of the country’s human rights record has grown after the killing of journalist Jamal Khashoggi last year.
Saudi Arabia has historically kept the position of energy minister separate from direct control of the royal family given its importance to the economy of the kingdom.
Jason Bordoff, a former Obama administration energy adviser, said the appointment of Prince Abdulaziz as the first member of the royal family to lead the oil ministry was significant.
“Al-Falih is very highly regarded, and a shake up like this will always rattle markets, but Abdulaziz has served in the ministry for decades and has strong global relationships, and the market will probably see this as a sign of even stronger commitment to supporting prices and to the IPO.”
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