Saudi Aramco Said to Approach Asian State Oil Producers on IPO - Bloomberg:
Saudi Aramco has approached Asian state oil producers including Malaysia’s Petroliam Nasional Bhd. and China’s Sinopec Group about potential cornerstone investments in its initial public offering, people with knowledge of the matter said.
The Gulf energy giant and its advisers have recently been holding talks with potential investors including China’s sovereign wealth fund and China National Petroleum Corp., according to the people, who asked not to be identified because the information is private. They have also reached out to state-owned entities from the United Arab Emirates and Kuwait, including Abu Dhabi sovereign fund Mubadala Investment Co., as well as Canadian pension funds, the people said.
Deliberations are at a preliminary stage, and Aramco hasn’t yet received any firm commitments, the people said. Aramco’s advisers are arranging meetings with some potential cornerstone investors this week and next week, according to the people. The funds could decide against buying into the offering, they said.
Monday, 30 September 2019
#Saudi Non-Oil Growth Fastest Since 2015 as Private Sector Heals - Bloomberg
Saudi Non-Oil Growth Fastest Since 2015 as Private Sector Heals - Bloomberg:
Saudi Arabia’s non-oil economic growth accelerated in the second quarter, a sign that the economy is shrugging off the effects of austerity measures that followed the collapse of crude prices five years ago.
Non-oil gross domestic product expanded almost 3%, the fastest pace since 2015. The kingdom’s oil GDP shrank due to production cuts as Saudi Arabia sought to stabilize crude prices. That caused overall economic growth to slow to 0.5%, according to official data released Monday.
The absence of fiscal measures to cut spending and bolster government revenue, as well as the “strengthening of investment momentum” are the key reasons for the improvement of business sentiment, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Saudi Arabia’s non-oil economic growth accelerated in the second quarter, a sign that the economy is shrugging off the effects of austerity measures that followed the collapse of crude prices five years ago.
Non-oil gross domestic product expanded almost 3%, the fastest pace since 2015. The kingdom’s oil GDP shrank due to production cuts as Saudi Arabia sought to stabilize crude prices. That caused overall economic growth to slow to 0.5%, according to official data released Monday.
The absence of fiscal measures to cut spending and bolster government revenue, as well as the “strengthening of investment momentum” are the key reasons for the improvement of business sentiment, said Monica Malik, chief economist at Abu Dhabi Commercial Bank.
Boeing Max Buyer Flydubai Says Grounding Has Set It Back 5 Years - Bloomberg
Boeing Max Buyer Flydubai Says Grounding Has Set It Back 5 Years - Bloomberg:
Flydubai, the second-biggest customer for Boeing Co.’s grounded 737 Max jetliner, warned that its operations will shrink to 2014 levels if the model doesn’t return to service soon.
With the Max idled since March after two fatal crashes and leased planes due to be returned to their owners as contracts expire, Flydubai has gone from rapid expansion to a severely reduced network and mounting losses, Chief Executive Officer Ghaith Al Ghaith said Monday.
“Without any deliveries of new aircraft and no visibility of the timelines, we will see our operating fleet reduce in size to what it was in 2014,” Al Ghaith said in a statement after the sister carrier to long-haul giant Emirates reported a loss of 197 million dirhams ($54million) first-half loss.
Flydubai, the second-biggest customer for Boeing Co.’s grounded 737 Max jetliner, warned that its operations will shrink to 2014 levels if the model doesn’t return to service soon.
With the Max idled since March after two fatal crashes and leased planes due to be returned to their owners as contracts expire, Flydubai has gone from rapid expansion to a severely reduced network and mounting losses, Chief Executive Officer Ghaith Al Ghaith said Monday.
“Without any deliveries of new aircraft and no visibility of the timelines, we will see our operating fleet reduce in size to what it was in 2014,” Al Ghaith said in a statement after the sister carrier to long-haul giant Emirates reported a loss of 197 million dirhams ($54million) first-half loss.
#Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg
Saudi Aramco Plans to Boost Dividend to Tempt IPO Investors - Bloomberg:
Saudi Aramco will increase dividend payments and pay less tax as the government tries to secure the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman in the state oil company’s initial public offering.
But should Aramco meet the prince’s target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc.
The state-run company, which produces about 10% of the world’s oil, plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November. The IPO is the centerpiece the crown prince’s plans to revamp the Saudi economy and will release billions in capital for the kingdom’s sovereign wealth fund.
Saudi Aramco will increase dividend payments and pay less tax as the government tries to secure the $2 trillion valuation targeted by Crown Prince Mohammed bin Salman in the state oil company’s initial public offering.
But should Aramco meet the prince’s target, the proposed payout of $75 billion next year would still leave dividend yields below those already offered by competitors like Exxon Mobil Corp. and Royal Dutch Shell Plc.
The state-run company, which produces about 10% of the world’s oil, plans to announce its intention to float later this month with the aim of selling shares on the Riyadh stock exchange as soon as November. The IPO is the centerpiece the crown prince’s plans to revamp the Saudi economy and will release billions in capital for the kingdom’s sovereign wealth fund.
Fitch downgrades #SaudiArabia over geopolitical tensions | ZAWYA MENA Edition
Fitch downgrades Saudi Arabia over geopolitical tensions | ZAWYA MENA Edition:
Fitch Ratings has downgraded Saudi Arabia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'A' from 'A+' with a stable outlook.
The downgrade reflects rising geopolitical and military tensions in the Gulf region, vulnerability of Saudi Arabia's economic infrastructure and continued deterioration in the kingdom’s fiscal and external balance sheets, Fitch said.
Earlier in September, attacks on Aramco facilities in Abqaiq and Khurais cut Saudi Aramco’s company's crude oil supply by around 5.7 million barrels per day or about 50 percent of its output.
Fitch Ratings has downgraded Saudi Arabia's Long-Term Foreign-Currency Issuer Default Rating (IDR) to 'A' from 'A+' with a stable outlook.
The downgrade reflects rising geopolitical and military tensions in the Gulf region, vulnerability of Saudi Arabia's economic infrastructure and continued deterioration in the kingdom’s fiscal and external balance sheets, Fitch said.
Earlier in September, attacks on Aramco facilities in Abqaiq and Khurais cut Saudi Aramco’s company's crude oil supply by around 5.7 million barrels per day or about 50 percent of its output.
OPEC oil output sinks to lowest since 2011 after #Saudi attacks: Reuters survey - Reuters
OPEC oil output sinks to lowest since 2011 after Saudi attacks: Reuters survey - Reuters:
OPEC oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and U.S. sanctions on Iran and Venezuela, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.9 million barrels per day (bpd) this month, the survey showed, down 750,000 bpd from August’s revised figure and the lowest monthly total since 2011.
The Sept. 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20% to $72 a barrel on Sept. 16. The price has since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
OPEC oil output has fallen to an eight-year low in September after attacks on Saudi oil plants cut production, deepening the impact of a supply pact and U.S. sanctions on Iran and Venezuela, a Reuters survey found.
The 14-member Organization of the Petroleum Exporting Countries (OPEC) has pumped 28.9 million barrels per day (bpd) this month, the survey showed, down 750,000 bpd from August’s revised figure and the lowest monthly total since 2011.
The Sept. 14 attacks on two Saudi oil plants shut down 5.7 million bpd of production and sent crude prices up 20% to $72 a barrel on Sept. 16. The price has since fallen to $61, near levels before the Saudi attack, pressured by a rapid production restart and concern about slowing demand.
Oil falls, Brent posts biggest quarterly drop this year on demand fears - Reuters
Oil falls, Brent posts biggest quarterly drop this year on demand fears - Reuters:
Oil prices fell on Monday on fading concerns of supply shortfalls and conflicts in the Middle East after the Sept. 14 attack on Saudi Arabia, but global benchmark Brent posted its biggest quarterly loss this year on demand fears due to the escalating U.S.-China trade war.
Brent crude LCOc1 futures settled at $60.78, down $1.13, or 1.8%. U.S. West Texas Intermediate (WTI) crude CLc1 futures, the U.S. benchmark, fell $1.84, or 3.3%, to $54.07.
Brent gained 0.6% while WTI fell 1.9% in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored.
Oil prices fell on Monday on fading concerns of supply shortfalls and conflicts in the Middle East after the Sept. 14 attack on Saudi Arabia, but global benchmark Brent posted its biggest quarterly loss this year on demand fears due to the escalating U.S.-China trade war.
Brent crude LCOc1 futures settled at $60.78, down $1.13, or 1.8%. U.S. West Texas Intermediate (WTI) crude CLc1 futures, the U.S. benchmark, fell $1.84, or 3.3%, to $54.07.
Brent gained 0.6% while WTI fell 1.9% in September after volatile month where prices spike nearly 20% after the attacks halved Saudi Arabia’s output, but have pared nearly all those gains as output has been quickly restored.
MIDEAST STOCKS-Banks dent Egyptian index as financials lift #Saudi - Reuters
MIDEAST STOCKS-Banks dent Egyptian index as financials lift Saudi - Reuters:
Egypt's blue-chip index ended its
three-day winning streak as declines in banking shares sent it
into negative territory on Monday, while financial stocks
bolstered the Saudi index.
The Egyptian index lost 0.4%, with the country's
largest lender Commercial International Bank (COMI)
falling 1% and Eastern Company dropping 2.6%.
Cairo Investment and Real Estate Development
outperformed the market, jumping 6.3% after its board approved a
25 million euro ($27.27 million) loan agreement to finance the
first phase of construction of a university in Asyut.
Egypt's blue-chip index ended its
three-day winning streak as declines in banking shares sent it
into negative territory on Monday, while financial stocks
bolstered the Saudi index.
The Egyptian index lost 0.4%, with the country's
largest lender Commercial International Bank (COMI)
falling 1% and Eastern Company dropping 2.6%.
Cairo Investment and Real Estate Development
outperformed the market, jumping 6.3% after its board approved a
25 million euro ($27.27 million) loan agreement to finance the
first phase of construction of a university in Asyut.
Exclusive: #Dubai Aerospace drops plans for big aircraft order, targets M&A deal - Reuters
Exclusive: Dubai Aerospace drops plans for big aircraft order, targets M&A deal - Reuters:
Dubai Aerospace Enterprise favors expanding its fleet via a takeover of a rival after the group was unable to agree on a major order from Airbus (AIR.PA) and Boeing (BA.N), its chief executive said.
DAE, which joined the top tier of aircraft lessors with the 2017 acquisition of Dublin-based AWAS, was interested in a near-record purchase of 400 jets from Airbus and Boeing.
“It is hard to see how DAE is able to find a way to accept the price and terms and conditions the OEMs (original equipment manufacturer) are offering,” CEO Firoz Tarapore told Reuters.
A pricing disagreement had been an issue when Tarapore told Reuters in May 2018 DAE was interested in the order. This has led to DAE pursuing other options to increase its portfolio.
Dubai Aerospace Enterprise favors expanding its fleet via a takeover of a rival after the group was unable to agree on a major order from Airbus (AIR.PA) and Boeing (BA.N), its chief executive said.
DAE, which joined the top tier of aircraft lessors with the 2017 acquisition of Dublin-based AWAS, was interested in a near-record purchase of 400 jets from Airbus and Boeing.
“It is hard to see how DAE is able to find a way to accept the price and terms and conditions the OEMs (original equipment manufacturer) are offering,” CEO Firoz Tarapore told Reuters.
A pricing disagreement had been an issue when Tarapore told Reuters in May 2018 DAE was interested in the order. This has led to DAE pursuing other options to increase its portfolio.
Riyadh replaces Khalid al-Falih as chair of mining company | Financial Times
Riyadh replaces Khalid al-Falih as chair of mining company | Financial Times:
Saudi Arabia has appointed Yasir al-Rumayyan, head of the country’s sovereign wealth fund, as chairman of Ma’aden, the state mining company, replacing Khalid al-Falih, the former energy minister.
The move is another sign of Mr Falih’s waning influence and the rise of Mr Rumayyan, a close ally of Crown Prince Mohammed bin Salman and governor of the Public Investment Fund.
Mr Falih was one of the kingdom’s highest-profile technocrats. But his fall from grace began last month when he was stripped of his role overseeing industry and mining policy. He was then replaced by Mr Rumayyan as chair of Saudi Aramco, the state oil company, which is being prepared for an initial public offering.
Saudi Arabia has appointed Yasir al-Rumayyan, head of the country’s sovereign wealth fund, as chairman of Ma’aden, the state mining company, replacing Khalid al-Falih, the former energy minister.
The move is another sign of Mr Falih’s waning influence and the rise of Mr Rumayyan, a close ally of Crown Prince Mohammed bin Salman and governor of the Public Investment Fund.
Mr Falih was one of the kingdom’s highest-profile technocrats. But his fall from grace began last month when he was stripped of his role overseeing industry and mining policy. He was then replaced by Mr Rumayyan as chair of Saudi Aramco, the state oil company, which is being prepared for an initial public offering.
Majed Shawky, chairman of Beltone Financial Holding, on Strategy - Bloomberg
Majed Shawky, chairman of Beltone Financial Holding, on Strategy - Bloomberg:
Majed Shawky, chairman of Beltone Financial Holding SAE, the Egyptian investment bank owned by billionaire Naguib Sawiris, talks about the company's growth strategy, and the nation's economy. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Majed Shawky, chairman of Beltone Financial Holding SAE, the Egyptian investment bank owned by billionaire Naguib Sawiris, talks about the company's growth strategy, and the nation's economy. He speaks with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Alberto Bigolin, head of fixed income for MENA at Tellimer, #SaudiArabi's Possible Sukuk Sale - Bloomberg
Alberto Bigolin, head of fixed income for MENA at Tellimer, Saudi Arabi's Possible Sukuk Sale - Bloomberg:
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter. Alberto Bigolin, head of fixed income for MENA at Tellimer, shares his views, and also discusses the GCC bond market with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Saudi Arabia is considering selling a dollar-denominated Islamic bond as early as next month as the kingdom seeks to take advantage of lower borrowing costs, according to people with knowledge of the matter. Alberto Bigolin, head of fixed income for MENA at Tellimer, shares his views, and also discusses the GCC bond market with Yousef Gamal El-Din and Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
SAMA delivers positive assessment of the #SaudiArabia’s economy | ZAWYA MENA Edition
SAMA delivers positive assessment of the Saudi Arabia’s economy | ZAWYA MENA Edition:
The Saudi Arabian Monetary Authority (SAMA) has published its 55th annual report which reviews the economic and financial developments in the Kingdom during 2018. In its report, SAMA assessed the economic and the banking performance of the Kingdom as fair for last year.
The report said that under balanced economic policies the Saudi economy showed positive developments in most sectors during the year. This robust economic performance benefitted from the economic and financial reform package that was introduced by the government when the Kingdom’s Vision 2030 was announced in April 2016.
The reforms helped the different sectors of the economy to achieve positive developments in 2018, as evidenced by the growth registered in the gross domestic product (GDP) of 2.21 percent to SR2,625.5 billion ($700 billion) in 2018, compared to a decline of 0.74 percent in 2017.
The Saudi Arabian Monetary Authority (SAMA) has published its 55th annual report which reviews the economic and financial developments in the Kingdom during 2018. In its report, SAMA assessed the economic and the banking performance of the Kingdom as fair for last year.
The report said that under balanced economic policies the Saudi economy showed positive developments in most sectors during the year. This robust economic performance benefitted from the economic and financial reform package that was introduced by the government when the Kingdom’s Vision 2030 was announced in April 2016.
The reforms helped the different sectors of the economy to achieve positive developments in 2018, as evidenced by the growth registered in the gross domestic product (GDP) of 2.21 percent to SR2,625.5 billion ($700 billion) in 2018, compared to a decline of 0.74 percent in 2017.
Middle East green bond demand to grow; investors plan shifts in capital allocation | ZAWYA MENA Edition
Middle East green bond demand to grow; investors plan shifts in capital allocation | ZAWYA MENA Edition:
Environmental and social issues are 'very important' for bond issuers and investors worldwide.
Despite the heavy reliance of the Middle East on oil and gas, the region is the strongest to recognise impacts on businesses due to climate change, bringing forth big shifts in capital allocation.
Two thirds of issuers (85 percent in the Middle East) expect to reallocate capital noticeably in the next five years, HSBC said in its Sustainable Financing and Investing Survey 2019 report.
Environmental and social issues are 'very important' for bond issuers and investors worldwide.
Despite the heavy reliance of the Middle East on oil and gas, the region is the strongest to recognise impacts on businesses due to climate change, bringing forth big shifts in capital allocation.
Two thirds of issuers (85 percent in the Middle East) expect to reallocate capital noticeably in the next five years, HSBC said in its Sustainable Financing and Investing Survey 2019 report.
Oil prices fall as China's economic outlook still weak - Reuters
Oil prices fall as China's economic outlook still weak - Reuters:
Oil prices slipped on Monday as China’s economic outlook remained weak even as manufacturing data improved as an ongoing trade war with the United States weighs on demand growth at the world’s largest crude importer.
Brent crude LCOc1 futures fell 20 cents to $61.71 a barrel by 0632 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down 3 cents to $55.88 a barrel.
The official Purchasing Managers’ Index (PMI) rose to 49.8 in September, slightly better than expected and advancing from 49.5 in August. But it remained below the 50-point mark that separates expansion from contraction on a monthly basis, data from the National Bureau of Statistics (NBS) showed.
Oil prices slipped on Monday as China’s economic outlook remained weak even as manufacturing data improved as an ongoing trade war with the United States weighs on demand growth at the world’s largest crude importer.
Brent crude LCOc1 futures fell 20 cents to $61.71 a barrel by 0632 GMT while U.S. West Texas Intermediate (WTI) crude CLc1 futures edged down 3 cents to $55.88 a barrel.
The official Purchasing Managers’ Index (PMI) rose to 49.8 in September, slightly better than expected and advancing from 49.5 in August. But it remained below the 50-point mark that separates expansion from contraction on a monthly basis, data from the National Bureau of Statistics (NBS) showed.
#Saudi crown prince warns of escalation with #Iran, prefers political solution - Reuters
Saudi crown prince warns of escalation with Iran, prefers political solution - Reuters:
Saudi Arabia’s crown prince warned in an interview broadcast on Sunday that oil prices could spike to “unimaginably high numbers” if the world doesn’t come together to deter Iran, but said he preferred a political solution to a military one.
Speaking to the CBS program “60 Minutes,” Mohammed bin Salman also denied ordering the killing of journalist Jamal Khashoggi by Saudi operatives last year, but said he ultimately bears “full responsibility” as the kingdom’s de facto leader.
While Khashoggi’s death sparked a global uproar and tarnished the crown prince’s reputation, the Trump administration’s tense standoff with Saudi arch-foe Iran has more recently dominated U.S. policy toward Riyadh, especially after Sept. 14 attacks on the heart of the Saudi oil industry.
Saudi Arabia’s crown prince warned in an interview broadcast on Sunday that oil prices could spike to “unimaginably high numbers” if the world doesn’t come together to deter Iran, but said he preferred a political solution to a military one.
Speaking to the CBS program “60 Minutes,” Mohammed bin Salman also denied ordering the killing of journalist Jamal Khashoggi by Saudi operatives last year, but said he ultimately bears “full responsibility” as the kingdom’s de facto leader.
While Khashoggi’s death sparked a global uproar and tarnished the crown prince’s reputation, the Trump administration’s tense standoff with Saudi arch-foe Iran has more recently dominated U.S. policy toward Riyadh, especially after Sept. 14 attacks on the heart of the Saudi oil industry.
MIDEAST STOCKS-Banks buoy #Saudi market, property shares aid #Dubai - Reuters
MIDEAST STOCKS-Banks buoy Saudi market, property shares aid Dubai - Reuters:
Saudi Arabia’s stock market rose in early trade on Monday, buoyed by financial shares, while the Dubai index was driven up by gains in property shares.
The Saudi Arabian index was up 0.5% as Al Rajhi Bank gained 0.6% and Jabal Omar Development advanced 2.8%.
Walaa Cooperative Insurance jumped 4.9% to be the top gainer in the index. On Sunday, the insurer entered into a binding agreement to acquire all shares in Metlife AIG ANB in a share-swap deal.
Saudi Arabia’s stock market rose in early trade on Monday, buoyed by financial shares, while the Dubai index was driven up by gains in property shares.
The Saudi Arabian index was up 0.5% as Al Rajhi Bank gained 0.6% and Jabal Omar Development advanced 2.8%.
Walaa Cooperative Insurance jumped 4.9% to be the top gainer in the index. On Sunday, the insurer entered into a binding agreement to acquire all shares in Metlife AIG ANB in a share-swap deal.
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