Oil falls on possibility of Iran exports resuming after Trump fires hardline adviser - Reuters:
Oil prices edged lower on Tuesday after U.S. President Donald Trump fired national security adviser John Bolton, the chief architect of Trump’s strident stance against Iran, raising speculation of a return of Iranian crude exports to the market.
Saudi Arabia’s new energy minister’s assurances of continued output cuts by the Organization of the Petroleum Exporting Countries and its allies, however, supported the market.
Brent LCOc1 settled at $62.38 a barrel, shedding 21 cents, while U.S. West Texas Intermediate (WTI) futures CLc1 finished 45 cents, or 0.8%, lower at $57.40 a barrel.
Trump abruptly fired Bolton amid disagreements over how to handle foreign policy challenges such as North Korea, Iran, Afghanistan and Russia.
Tuesday 10 September 2019
ECJ limits Gazprom’s use of crucial gas link | Financial Times
ECJ limits Gazprom’s use of crucial gas link | Financial Times:
The EU’s top court has delivered a blow to Gazprom by overturning an EU decision allowing the Russian gas giant to boost deliveries to Europe via the Opal pipeline.
Poland, Lithuania and Latvia had challenged the European Commission’s 2016 decision to allow Gazprom to send more gas via Opal, which connects Russia’s Nordstream pipeline to Germany, arguing that the decision “violated the principles of the European Union by not examining its impact on Poland’s energy security”.
On Tuesday, the European Court of Justice found in favour of the three countries, arguing that the Commission’s 2016 decision had been taken “in breach of the principle of energy solidarity”.
The EU’s top court has delivered a blow to Gazprom by overturning an EU decision allowing the Russian gas giant to boost deliveries to Europe via the Opal pipeline.
Poland, Lithuania and Latvia had challenged the European Commission’s 2016 decision to allow Gazprom to send more gas via Opal, which connects Russia’s Nordstream pipeline to Germany, arguing that the decision “violated the principles of the European Union by not examining its impact on Poland’s energy security”.
On Tuesday, the European Court of Justice found in favour of the three countries, arguing that the Commission’s 2016 decision had been taken “in breach of the principle of energy solidarity”.
Gold price could smash records at $2,000, says Citi | Financial Times
Gold price could smash records at $2,000, says Citi | Financial Times:
The price of gold could hit a record high of $2,000 an ounce within the next two years as US economic growth fades and the Federal Reserve cuts interest rates, according to analysts at Citigroup.
The New York-based bank said in a Monday research note that the precious metal could top levels last seen eight years ago, when gold surged to $1,900 an ounce, as uncertainty over the 2020 presidential election combines with a sputtering domestic economy.
Investors around the world have been drawn to gold at a time of negative bond yields, which have increased the appeal of yieldless assets such as gold. Around $15.3tn of bonds are trading at levels that guarantee buyers a loss, if the bonds are held to maturity. The gold price has risen by 17 per cent this year to trade at $1,495 a troy ounce, putting the precious metal on track for its best year since 2010.
The price of gold could hit a record high of $2,000 an ounce within the next two years as US economic growth fades and the Federal Reserve cuts interest rates, according to analysts at Citigroup.
The New York-based bank said in a Monday research note that the precious metal could top levels last seen eight years ago, when gold surged to $1,900 an ounce, as uncertainty over the 2020 presidential election combines with a sputtering domestic economy.
Investors around the world have been drawn to gold at a time of negative bond yields, which have increased the appeal of yieldless assets such as gold. Around $15.3tn of bonds are trading at levels that guarantee buyers a loss, if the bonds are held to maturity. The gold price has risen by 17 per cent this year to trade at $1,495 a troy ounce, putting the precious metal on track for its best year since 2010.
Oil prices fall after Trump fires national security adviser Bolton | Financial Times
Oil prices fall after Trump fires national security adviser Bolton | Financial Times:
Oil took a more than 2 per cent round-trip on Tuesday, tumbling after President Donald Trump fired national security adviser John Bolton.
Brent crude, the global benchmark, erased a 1.9 per cent gain to trade as much as 0.4 per cent lower, before bouncing back to be up 0.5 per cent at $62.90 a barrel.
That has kept oil hovering at its highest level in a month, as renewed hopes of a speedy resolution to the US-China trade war and receding concerns about a recession have tempted investors back to riskier and growth-sensitive assets.
Oil took a more than 2 per cent round-trip on Tuesday, tumbling after President Donald Trump fired national security adviser John Bolton.
Brent crude, the global benchmark, erased a 1.9 per cent gain to trade as much as 0.4 per cent lower, before bouncing back to be up 0.5 per cent at $62.90 a barrel.
That has kept oil hovering at its highest level in a month, as renewed hopes of a speedy resolution to the US-China trade war and receding concerns about a recession have tempted investors back to riskier and growth-sensitive assets.
Goldman, JPMorgan Said to Be Among Banks in Top Aramco IPO Roles - Bloomberg
Goldman, JPMorgan Said to Be Among Banks in Top Aramco IPO Roles - Bloomberg:
Saudi Aramco has picked banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. for top roles on its planned initial public offering following intense lobbying by some of the world’s top dealmakers, people with knowledge of the matter said.
The oil giant told banks of their selection Tuesday, the people said, asking not to be identified because the information is private. It plans to add more joint global coordinators to the deal, according to the people.
Bankers spent the beginning of the month making pitches in Aramco’s headquarters in Dhahran, with some additional presentations in Dubai and London, Bloomberg News has reported. The company invited more than 20 advisory firms from the U.S., Europe and Asia to compete, including some of the world’s biggest underwriters as well as a number of smaller banks.
Saudi Aramco has picked banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. for top roles on its planned initial public offering following intense lobbying by some of the world’s top dealmakers, people with knowledge of the matter said.
The oil giant told banks of their selection Tuesday, the people said, asking not to be identified because the information is private. It plans to add more joint global coordinators to the deal, according to the people.
Bankers spent the beginning of the month making pitches in Aramco’s headquarters in Dhahran, with some additional presentations in Dubai and London, Bloomberg News has reported. The company invited more than 20 advisory firms from the U.S., Europe and Asia to compete, including some of the world’s biggest underwriters as well as a number of smaller banks.
Goldman's #Saudi Aramco IPO Pursuit Seeks to Overcome 1MDB Fallout - Bloomberg
Goldman's Saudi Aramco IPO Pursuit Seeks to Overcome 1MDB Fallout - Bloomberg:
Goldman Sachs Group Inc.'s push into Saudi Arabia may be paying off as the bank is considered one of the strongest contenders to get a lead role in Saudi Aramco's initial public offering. Bloomberg's Sonali Basak reports on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
Goldman Sachs Group Inc.'s push into Saudi Arabia may be paying off as the bank is considered one of the strongest contenders to get a lead role in Saudi Aramco's initial public offering. Bloomberg's Sonali Basak reports on "Bloomberg Daybreak: Americas." (Source: Bloomberg)
#Iraq Is Committed to OPEC+ Cuts but Has ‘Difficulties’ Complying - Bloomberg
Iraq Is Committed to OPEC+ Cuts but Has ‘Difficulties’ Complying - Bloomberg:
Iraq is committed to curbing its oil output in compliance with the OPEC+ agreement, but persistent divisions with the regional Kurdish administration over exports are making this difficult.
While Iraq and the autonomous Kurdish region are cooperating on exports of oil produced at Kurdish fields, “we still have issues,” Oil Minister Thamir Ghadhban told delegates at the World Energy Congress in Abu Dhabi on Tuesday.
Iraq, including the self-ruling Kurdish region, has about 5 million barrels a day of oil output capacity. Last month, its production increased by about 30,000 barrels a day to 4.78 million barrels a day, according to a Bloomberg survey. Ghadhban said on Monday that Iraq increased output over the summer to meet seasonal demand for power.
Iraq is committed to curbing its oil output in compliance with the OPEC+ agreement, but persistent divisions with the regional Kurdish administration over exports are making this difficult.
While Iraq and the autonomous Kurdish region are cooperating on exports of oil produced at Kurdish fields, “we still have issues,” Oil Minister Thamir Ghadhban told delegates at the World Energy Congress in Abu Dhabi on Tuesday.
Iraq, including the self-ruling Kurdish region, has about 5 million barrels a day of oil output capacity. Last month, its production increased by about 30,000 barrels a day to 4.78 million barrels a day, according to a Bloomberg survey. Ghadhban said on Monday that Iraq increased output over the summer to meet seasonal demand for power.
#UAE's ADCB to sell majority of India banking portfolio to DCB Bank | ZAWYA MENA Edition
UAE's ADCB to sell majority of India banking portfolio to DCB Bank | ZAWYA MENA Edition:
Abu Dhabi Commercial Bank (ADCB) will sell the majority of its banking portfolio in India to DCB Bank, after which it will exit the country.
ADCB said that the decision is driven by the “Group’s strategy to focus on its home market, the United Arab Emirates,” adding that the sale of the India banking portfolio will have no impact on the bank’s profitability.
The banking portfolio sold to DCB Bank comprises of 355 million dirhams in assets and 691 million dirhams in liabilities and the sale will be made at par.
Abu Dhabi Commercial Bank (ADCB) will sell the majority of its banking portfolio in India to DCB Bank, after which it will exit the country.
ADCB said that the decision is driven by the “Group’s strategy to focus on its home market, the United Arab Emirates,” adding that the sale of the India banking portfolio will have no impact on the bank’s profitability.
The banking portfolio sold to DCB Bank comprises of 355 million dirhams in assets and 691 million dirhams in liabilities and the sale will be made at par.
Cost of India refinery project with Aramco to rise: oil minister - Reuters
Cost of India refinery project with Aramco to rise: oil minister - Reuters:
India’s planned giant refinery and petrochemical project, which is being built with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), will cost more than the originally planned $45 billion, India’s oil minister said on Tuesday.
The 1.2 million barrels-per-day (bpd) giant coastal project is part of India’s plans to raise its refining capacity by 77% to 8.8 million bpd by 2030. It is being built at Roha, around 100 km (62 miles) south of Mumbai.
“The primary plan was around $45 billion, it will be more than that,” Dharmendra Pradhan told reporters at the World Energy Congress in Abu Dhabi, declining to say by how much.
India’s planned giant refinery and petrochemical project, which is being built with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), will cost more than the originally planned $45 billion, India’s oil minister said on Tuesday.
The 1.2 million barrels-per-day (bpd) giant coastal project is part of India’s plans to raise its refining capacity by 77% to 8.8 million bpd by 2030. It is being built at Roha, around 100 km (62 miles) south of Mumbai.
“The primary plan was around $45 billion, it will be more than that,” Dharmendra Pradhan told reporters at the World Energy Congress in Abu Dhabi, declining to say by how much.
Aramco ready for foreign float alongside primary domestic listing - Reuters
Aramco ready for foreign float alongside primary domestic listing - Reuters:
Saudi Aramco is primed to float on international markets to complement a planned domestic initial public offering (IPO) which has been selected as its primary listing, the state oil giant’s chief executive said on Tuesday.
An IPO of Saudi Aramco would happen “very soon”, Amin Nasser cited the kingdom’s new energy minister Prince Abdulaziz bin Salman as saying, adding that the ultimate decision on the venue and timing of the flotation rested with the Saudi government.
“We have always said that Aramco is ready whenever the shareholder makes a decision to list ... so we are prepared, that’s the bottom line,” Nasser told reporters.
Saudi Aramco is primed to float on international markets to complement a planned domestic initial public offering (IPO) which has been selected as its primary listing, the state oil giant’s chief executive said on Tuesday.
An IPO of Saudi Aramco would happen “very soon”, Amin Nasser cited the kingdom’s new energy minister Prince Abdulaziz bin Salman as saying, adding that the ultimate decision on the venue and timing of the flotation rested with the Saudi government.
“We have always said that Aramco is ready whenever the shareholder makes a decision to list ... so we are prepared, that’s the bottom line,” Nasser told reporters.
Oil rises over 1% on expectations of extended output cuts - Reuters
Oil rises over 1% on expectations of extended output cuts - Reuters:
Oil futures rose on Tuesday to their highest levels in almost six weeks on optimism that OPEC and other producing countries will agree to extend output cuts to support prices.
Brent LCOc1 was up 67 cents or 1.07% at $63.26 a barrel by 1305 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were up 63 cents, or 1.09%, at $58.48 a barrel.
Brent reached its highest level since Aug. 1, while U.S. crude rose to its highest since July 31.
Oil futures rose on Tuesday to their highest levels in almost six weeks on optimism that OPEC and other producing countries will agree to extend output cuts to support prices.
Brent LCOc1 was up 67 cents or 1.07% at $63.26 a barrel by 1305 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were up 63 cents, or 1.09%, at $58.48 a barrel.
Brent reached its highest level since Aug. 1, while U.S. crude rose to its highest since July 31.
MIDEAST STOCKS-Banks, petchems drag down #Saudi, property lifts #Dubai - Reuters
MIDEAST STOCKS-Banks, petchems drag down Saudi, property lifts Dubai - Reuters:
Saudi Arabian stocks dropped sharply on
Tuesday as banking and petrochemical shares weakened, while
builder Arabtec Holding posted its sharpest single-day
rise in two and half years after announcing a potential merger,
helping to lift the Dubai index.
Saudi's index was down 1.1%. Al Rajhi Bank
dropped 2% and petrochemical maker Saudi Basic Industries
shed 2.8%.
Saudi Enaya Cooperative Insurance lost 4.9% after
its accumulated losses reached 40% of its capital.
Real estate firm Arriyadh Development and gym
network operator Leejam Sports shed 3.3% and 2%
respectively as the stocks traded ex-dividend.
Saudi Arabian stocks dropped sharply on
Tuesday as banking and petrochemical shares weakened, while
builder Arabtec Holding posted its sharpest single-day
rise in two and half years after announcing a potential merger,
helping to lift the Dubai index.
Saudi's index was down 1.1%. Al Rajhi Bank
dropped 2% and petrochemical maker Saudi Basic Industries
shed 2.8%.
Saudi Enaya Cooperative Insurance lost 4.9% after
its accumulated losses reached 40% of its capital.
Real estate firm Arriyadh Development and gym
network operator Leejam Sports shed 3.3% and 2%
respectively as the stocks traded ex-dividend.
#Qatar Exchange CEO Rashid Bin Ali Al-Mansoori on Bourse Plans, Baladna's Planned IPO - Bloomberg
Qatar Exchange CEO Rashid Bin Ali Al-Mansoori on Bourse Plans, Baladna's Planned IPO - Bloomberg:
Rashid Bin Ali Al-Mansoori, chief executive officer of the Qatar Exchange, discusses the bourse plans to attract more foreign investors, the prospects for initial public offerings and food producer Baladna's planned listing. He speaks with Bloomberg's Simone Foxman. (Source: Bloomberg)
Rashid Bin Ali Al-Mansoori, chief executive officer of the Qatar Exchange, discusses the bourse plans to attract more foreign investors, the prospects for initial public offerings and food producer Baladna's planned listing. He speaks with Bloomberg's Simone Foxman. (Source: Bloomberg)
Yousuf Al-Jaida, CEO of #Qatar Financial Centre Authority, on Strategy - Bloomberg
Yousuf Al-Jaida, CEO of Qatar Financial Centre Authority, on Strategy - Bloomberg:
Yousuf Al-Jaida, chief executive officer of the Qatar Financial Centre Authority, talks about its plans to make the country an international financial hub. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Yousuf Al-Jaida, chief executive officer of the Qatar Financial Centre Authority, talks about its plans to make the country an international financial hub. He speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Oil Market: Demand Points to Slower Growth, Not a Recession, IHS's Yergin Says - Bloomberg
Oil Market: Demand Points to Slower Growth, Not a Recession, IHS's Yergin Says - Bloomberg:
Daniel Yergin, vice president at IHS Markit, discusses Saudi Arabia naming a new oil minister and the impact of the trade war and geopolitical concerns on the oil market. He speaks with Bloomberg's Manus Cranny on "Bloomberg Surveillance." (Source: Bloomberg)
Daniel Yergin, vice president at IHS Markit, discusses Saudi Arabia naming a new oil minister and the impact of the trade war and geopolitical concerns on the oil market. He speaks with Bloomberg's Manus Cranny on "Bloomberg Surveillance." (Source: Bloomberg)
OPEC’s New #Saudi Kingpin Faces Demand Woes That Beat Predecessor - Bloomberg
OPEC’s New Saudi Kingpin Faces Demand Woes That Beat Predecessor - Bloomberg:
The OPEC+ alliance has a new helmsman, but he’s about to confront the same challenges that thwarted his predecessor.
Saudi Energy Minister Prince Abdulaziz bin Salman, appointed at the weekend by OPEC’s biggest member, said he plans no “radical” changes to the kingdom’s oil policy. But the cartel’s attempt to revive the market by cutting production is struggling against economic headwinds, which have so far held prices below the level most members need.
The 24-nation coalition of the Organization of Petroleum Exporting Countries and non-members such as Russia remains solid. The group has gone well beyond its targeted cut of 1.2 million barrels a day, helping to offset surging U.S. shale-oil output. Yet key members who meet in Abu Dhabi’s opulent Emirates Palace hotel on Thursday to discuss their pact, also have to grapple with fears of a recession amid an escalating U.S.-China trade war.
The OPEC+ alliance has a new helmsman, but he’s about to confront the same challenges that thwarted his predecessor.
Saudi Energy Minister Prince Abdulaziz bin Salman, appointed at the weekend by OPEC’s biggest member, said he plans no “radical” changes to the kingdom’s oil policy. But the cartel’s attempt to revive the market by cutting production is struggling against economic headwinds, which have so far held prices below the level most members need.
The 24-nation coalition of the Organization of Petroleum Exporting Countries and non-members such as Russia remains solid. The group has gone well beyond its targeted cut of 1.2 million barrels a day, helping to offset surging U.S. shale-oil output. Yet key members who meet in Abu Dhabi’s opulent Emirates Palace hotel on Thursday to discuss their pact, also have to grapple with fears of a recession amid an escalating U.S.-China trade war.
Goldman Makes Push Into #SaudiArabia After 1MDB Scandal Fallout - Bloomberg
Goldman Makes Push Into Saudi Arabia After 1MDB Scandal Fallout - Bloomberg:
Goldman Sachs Group Inc. is tapping its upper echelons to navigate a notoriously complicated region where it has stumbled of late: the Middle East.
After missing out on at least $25 billion in deals in Abu Dhabi -- the emirate that snubbed the U.S. bank for its involvement in the 1MDB scandal -- Goldman Sachs is making a push into Saudi Arabia.
Chief Executive Officer David Solomon -- the first chief of a Wall Street bank to visit the kingdom following the murder of government critic Jamal Khashoggi -- has turned to international banking head Richard Gnodde and former Donald Trump adviser Dina Powell to help lead the push. They’ve all spent months wooing top officials in Riyadh, vying for a slice of the world’s biggest initial public offering, people with knowledge of the matter said.
Goldman Sachs Group Inc. is tapping its upper echelons to navigate a notoriously complicated region where it has stumbled of late: the Middle East.
After missing out on at least $25 billion in deals in Abu Dhabi -- the emirate that snubbed the U.S. bank for its involvement in the 1MDB scandal -- Goldman Sachs is making a push into Saudi Arabia.
Chief Executive Officer David Solomon -- the first chief of a Wall Street bank to visit the kingdom following the murder of government critic Jamal Khashoggi -- has turned to international banking head Richard Gnodde and former Donald Trump adviser Dina Powell to help lead the push. They’ve all spent months wooing top officials in Riyadh, vying for a slice of the world’s biggest initial public offering, people with knowledge of the matter said.
#Dubai's Emaar Properties starts marketing dollar sukuk - Reuters
Dubai's Emaar Properties starts marketing dollar sukuk - Reuters:
Dubai’s largest listed developer, Emaar Properties, started marketing on Tuesday 10-year U.S. dollar-denominated sukuk, or Islamic bonds, at around 270 basis points over mid-swaps, a document by one of the banks leading the deal showed.
The planned deal, part of a $2 billion debt-raising programme, will be of benchmark size, which generally means upwards of $500 million.
Standard Chartered is coordinating the debt sale, which is expected to close later on Tuesday, according to the document.
Dubai’s largest listed developer, Emaar Properties, started marketing on Tuesday 10-year U.S. dollar-denominated sukuk, or Islamic bonds, at around 270 basis points over mid-swaps, a document by one of the banks leading the deal showed.
The planned deal, part of a $2 billion debt-raising programme, will be of benchmark size, which generally means upwards of $500 million.
Standard Chartered is coordinating the debt sale, which is expected to close later on Tuesday, according to the document.
#Qatar's commercial bank to raise $600-700 mln in debt over next 6-12 months -CEO - Reuters
Qatar's commercial bank to raise $600-700 mln in debt over next 6-12 months -CEO - Reuters:
Qatar’s Commercial Bank plans to raise $600-700 million in debt over the next 6-12 months, the bank’s chief executive officer Joseph Abraham said on Tuesday.
The country’s third-largest lender by assets had said previously that it was looking into a variety of funding sources including Kangaroo bonds, and Taiwanese and Japanese debt markets.
Qatar’s Commercial Bank plans to raise $600-700 million in debt over the next 6-12 months, the bank’s chief executive officer Joseph Abraham said on Tuesday.
The country’s third-largest lender by assets had said previously that it was looking into a variety of funding sources including Kangaroo bonds, and Taiwanese and Japanese debt markets.
#Kuwait's Warba Bank hires banks for dollar sukuk - Reuters
Kuwait's Warba Bank hires banks for dollar sukuk - Reuters:
Kuwait’s Warba Bank has hired banks to arrange fixed income investor meetings ahead of a potential sale of five-year U.S. dollar denominated sukuk, or Islamic bonds, a document issued by one of the banks showed.
BNP Paribas, Emirates NBD Capital, and Standard Chartered were hired as joint global coordinators. Other banks on the deal are Abu Dhabi Islamic Bank, Bank ABC, Dubai Islamic Bank, NBK Capital and QNB Capital.
Warba, 34% owned by the state of Kuwait, will meet investors in Asia, UAE and London from Sept. 12, the document showed.
Kuwait’s Warba Bank has hired banks to arrange fixed income investor meetings ahead of a potential sale of five-year U.S. dollar denominated sukuk, or Islamic bonds, a document issued by one of the banks showed.
BNP Paribas, Emirates NBD Capital, and Standard Chartered were hired as joint global coordinators. Other banks on the deal are Abu Dhabi Islamic Bank, Bank ABC, Dubai Islamic Bank, NBK Capital and QNB Capital.
Warba, 34% owned by the state of Kuwait, will meet investors in Asia, UAE and London from Sept. 12, the document showed.
Oil rises for fifth day on expectations of extended output cuts - Reuters
Oil rises for fifth day on expectations of extended output cuts - Reuters:
Oil futures rose slightly on Tuesday to their highest levels in almost six weeks on optimism that OPEC and other producing countries may agree to extend output cuts to support prices.
Brent LCOc1 was up 7 cents at $62.66 a barrel by 0840 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were up 15 cents, or 0.6%, at $58.17 a barrel.
Brent earlier hit its highest level since Aug. 1, while U.S. crude rose to its highest since July 31.
Oil futures rose slightly on Tuesday to their highest levels in almost six weeks on optimism that OPEC and other producing countries may agree to extend output cuts to support prices.
Brent LCOc1 was up 7 cents at $62.66 a barrel by 0840 GMT, while U.S. West Texas Intermediate (WTI) futures CLc1 were up 15 cents, or 0.6%, at $58.17 a barrel.
Brent earlier hit its highest level since Aug. 1, while U.S. crude rose to its highest since July 31.
#Kuwait plans for future after oil with mega-projects | Financial Times
Kuwait plans for future after oil with mega-projects | Financial Times:
When rising tensions in the Gulf threatened the passage of tankers through the Strait of Hormuz, one state had particular reason to worry — Kuwait, whose entire 2m barrels of daily oil exports pass through the strategic waterway.
The return of such tensions again highlighted the need for Kuwait to wean itself off oil, which currently contributes 90 per cent of state revenues and about half its GDP.
Kuwait is trying to diversify its economy and cut back on its enormous welfare state. GDP has fallen from its peak of $174bn in 2013, standing down at $141bn last year, according to the World Bank.
When rising tensions in the Gulf threatened the passage of tankers through the Strait of Hormuz, one state had particular reason to worry — Kuwait, whose entire 2m barrels of daily oil exports pass through the strategic waterway.
The return of such tensions again highlighted the need for Kuwait to wean itself off oil, which currently contributes 90 per cent of state revenues and about half its GDP.
Kuwait is trying to diversify its economy and cut back on its enormous welfare state. GDP has fallen from its peak of $174bn in 2013, standing down at $141bn last year, according to the World Bank.
Boursa #Kuwait set for boost from index upgrade and oil sell-offs | Financial Times
Boursa Kuwait set for boost from index upgrade and oil sell-offs | Financial Times:
Kuwait’s stock exchange is encouraging state-owned oil companies to offer shares on the public market, a move aimed to open the country’s main economic sector — the oil and gas industry — to private investment.
The composition of the domestic stock market, Boursa Kuwait, does not currently reflect the central role of oil and gas in the state’s economy, which makes it less attractive for investors.
Of Boursa Kuwait’s 176 listed companies, nearly three-quarters of their weight as measured by market capitalisation are accounted for by banks, which contributed just 7.3 per cent of GDP last year, says Raghu Mandagolathur, research head at Markaz, a Kuwait-based asset manager. While nearly half of Kuwait’s GDP came from oil and gas companies, they account for less than 1 per cent of the local stock exchange’s market cap.
Kuwait’s stock exchange is encouraging state-owned oil companies to offer shares on the public market, a move aimed to open the country’s main economic sector — the oil and gas industry — to private investment.
The composition of the domestic stock market, Boursa Kuwait, does not currently reflect the central role of oil and gas in the state’s economy, which makes it less attractive for investors.
Of Boursa Kuwait’s 176 listed companies, nearly three-quarters of their weight as measured by market capitalisation are accounted for by banks, which contributed just 7.3 per cent of GDP last year, says Raghu Mandagolathur, research head at Markaz, a Kuwait-based asset manager. While nearly half of Kuwait’s GDP came from oil and gas companies, they account for less than 1 per cent of the local stock exchange’s market cap.
#Saudi Aramco chief says IPO to happen ‘very soon’ | Financial Times
Saudi Aramco chief says IPO to happen ‘very soon’ | Financial Times:
Saudi Aramco’s chief executive Amin Nasser said the oil giant’s initial public offering would take place “very soon”, with a primary listing on its home market of Riyadh.
Echoing the new Saudi energy minister’s comments on Monday, Mr Nasser on Tuesday said the decision on any overseas listing remained with the firm’s government shareholder.
“The primary listing is going to be locally, but we are also ready to list outside the Kingdom,” he told reporters at an energy congress in Abu Dhabi.
Saudi Aramco’s chief executive Amin Nasser said the oil giant’s initial public offering would take place “very soon”, with a primary listing on its home market of Riyadh.
Echoing the new Saudi energy minister’s comments on Monday, Mr Nasser on Tuesday said the decision on any overseas listing remained with the firm’s government shareholder.
“The primary listing is going to be locally, but we are also ready to list outside the Kingdom,” he told reporters at an energy congress in Abu Dhabi.
How #Saudi oil minister fell from grace as #MBS pushes Aramco IPO | Financial Times
How Saudi oil minister fell from grace as MBS pushes Aramco IPO | Financial Times:
Khalid al-Falih appeared untouchable a year ago as he presided over a Saudi super-ministry that straddled energy, industry and mining.
Crude prices had risen to their highest levels since the slump of 2014 partly because of his oil diplomacy. The much-hyped initial public offering of Saudi Aramco had stalled, suggesting technocrats, including the minister, had won the day in pushing for a more cautious approach to the listing. And when Crown Prince Mohammed bin Salman needed a senior minister to step up to help restore the kingdom’s image at Riyadh’s “Davos in the Desert” conference in the wake of the murder of Jamal Khashoggi, Mr Falih took to the stage — a reflection of his standing at home and abroad.
But now as Prince Mohammed seeks to accelerate the listing of state-owned Aramco and inject new impetus into faltering economic reforms, Mr Falih has apparently been rendered surplus to requirements. Even under the tumultuous rule of the 34-year-old crown prince, the sacking of Mr Falih at the weekend represents a remarkable fall from grace for one of the kingdom’s highest-ranking officials and the de facto leader of Opec.
Khalid al-Falih appeared untouchable a year ago as he presided over a Saudi super-ministry that straddled energy, industry and mining.
Crude prices had risen to their highest levels since the slump of 2014 partly because of his oil diplomacy. The much-hyped initial public offering of Saudi Aramco had stalled, suggesting technocrats, including the minister, had won the day in pushing for a more cautious approach to the listing. And when Crown Prince Mohammed bin Salman needed a senior minister to step up to help restore the kingdom’s image at Riyadh’s “Davos in the Desert” conference in the wake of the murder of Jamal Khashoggi, Mr Falih took to the stage — a reflection of his standing at home and abroad.
But now as Prince Mohammed seeks to accelerate the listing of state-owned Aramco and inject new impetus into faltering economic reforms, Mr Falih has apparently been rendered surplus to requirements. Even under the tumultuous rule of the 34-year-old crown prince, the sacking of Mr Falih at the weekend represents a remarkable fall from grace for one of the kingdom’s highest-ranking officials and the de facto leader of Opec.
Arabtec in talks to merge with Trojan Holding | Business – Gulf News
Arabtec in talks to merge with Trojan Holding | Business – Gulf News:
Arabtec Holding, the construction firm that helped build the world’s tallest tower, confirmed on Tuesday that it was in discussions about a possible merger with Trojan Holding.
The two sides have commenced a review “of the possibility of combining their construction businesses,” Arabtec said. It said that if a deal is reached, it may lead to a merger between Arabtec and Abu Dhabi-based Trojan.
Arabtec’s share prices jumped on the news, and were trading over 10 per cent higher in the first 50 minutes of trade. Shares of the company were the most actively traded on the Dubai bourse, and rose past Dh1.76.
Arabtec Holding, the construction firm that helped build the world’s tallest tower, confirmed on Tuesday that it was in discussions about a possible merger with Trojan Holding.
The two sides have commenced a review “of the possibility of combining their construction businesses,” Arabtec said. It said that if a deal is reached, it may lead to a merger between Arabtec and Abu Dhabi-based Trojan.
Arabtec’s share prices jumped on the news, and were trading over 10 per cent higher in the first 50 minutes of trade. Shares of the company were the most actively traded on the Dubai bourse, and rose past Dh1.76.
MIDEAST STOCKS-Lenders weigh on #Saudi, #Dubai's Arabtec jumps on potential merger - Reuters
MIDEAST STOCKS-Lenders weigh on Saudi, Dubai's Arabtec jumps on potential merger - Reuters:
Saudi Arabian stocks fell on Tuesday as banking shares weakened, while builder Arabtec Holding posted its sharpest single-day rise in more than two years after announcing a potential merger, helping to lift the Dubai index.
Saudi’s index was down 0.6%. Al Rajhi Bank and the kingdom’s largest lender National Commercial Bank both dropped 1.1%.
Real estate firm Arriyadh Development and gym network operator Leejam Sports shed 3.5% and 0.8% respectively as the stocks traded ex-dividend.
Saudi Arabian stocks fell on Tuesday as banking shares weakened, while builder Arabtec Holding posted its sharpest single-day rise in more than two years after announcing a potential merger, helping to lift the Dubai index.
Saudi’s index was down 0.6%. Al Rajhi Bank and the kingdom’s largest lender National Commercial Bank both dropped 1.1%.
Real estate firm Arriyadh Development and gym network operator Leejam Sports shed 3.5% and 0.8% respectively as the stocks traded ex-dividend.
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