Young #Saudi prince with Western experience named foreign minister - Reuters

Young Saudi prince with Western experience named foreign minister - Reuters:

Saudi Arabia appointed a prince with diplomatic experience in Western capitals as foreign minister on Wednesday in a partial cabinet reshuffle as the kingdom tries to mend its international image and prepares to take over the Group of 20 presidency.

FILE PHOTO: New ambassador of Saudi Arabia to Germany Prince Faisal bin Farhan Al Saud poses for the media after his diplomatic accreditation at Bellevue Palace in Berlin, Germany, March 27, 2019. REUTERS/Fabrizio Bensch/File Photo

Prince Faisal bin Farhan Al Saud had served for the last several months as ambassador to Germany and earlier as political adviser at the Washington embassy. His previous business career in the defense industry included chairmanship of a joint venture with planemaker Boeing.

Saudi Arabia, a key U.S. ally in confronting Iran, has faced intense Western criticism over its human rights record, including over last year’s murder of journalist Jamal Khashoggi and its involvement in the devastating war in Yemen.


Prince Faisal joins a new cadre of top Saudi diplomats in their 40s, including the ambassadors to the United States and Britain, who are siblings.

Oil rises on surprise U.S. crude drawdown, prospect of OPEC action - Reuters

Oil rises on surprise U.S. crude drawdown, prospect of OPEC action - Reuters:

Oil rose about 2.5% on Wednesday after government data showed a surprise draw in U.S. crude stocks and as the prospect of deeper output cuts by OPEC and its allies offered support.

U.S. crude stocks fell 1.7 million barrels last week as refineries hiked crude runs by 429,000 barrels per day (bpd) and oil imports fell, the Energy Information Administration said. Analysts had expected an increase of 2.2 million barrels.

Brent crude futures settled at $61.17 a barrel, up $1.47, or 2.5%. West Texas Intermediate (WTI) crude futures rose $1.49, or 2.7%, to end at $55.97 a barrel.

Oil prices had fallen earlier in the session after data on Tuesday from industry group the American Petroleum Institute showed U.S. crude stocks rising more than analysts’ expectations, by 4.5 million barrels to 437 million barrels.

Oil Rallies After Surprise Decline in U.S. Crude Stockpiles - Bloomberg

Oil Rallies After Surprise Decline in U.S. Crude Stockpiles - Bloomberg:

Oil spiked above $55 a barrel for the first time in three weeks after a surprise drop in U.S. crude supplies signaled strengthening demand.

Futures rose as much as 1.5% in New York on Wednesday after an Energy Information Administration report showed American crude inventories fell by 1.7 million barrels last week and gasoline stockpiles shrank more than forecast. Imports of foreign crude slumped to the lowest in more than two decades.

“There’s a fair bit to like in this report,” said Matt Sallee, portfolio manager at Tortoise, a Kansas firm that oversees more than $21 billion in assets. “We view inventories moving lower from here.”

Goldman Sachs Ousts Senior Mideast Banker Over Compliance Breach - Bloomberg

Goldman Sachs Ousts Senior Mideast Banker Over Compliance Breach - Bloomberg:

Goldman Sachs Group Inc. dismissed a senior banker in the Middle East over compliance violations, according to people with knowledge of the matter, adding to the U.S. bank’s woes in the region.

Martin Weber, who’d been with the bank for about 20 years, ran the financing division in the Middle East and North Africa, the people said, asking not to be identified because the matter is private. Weber relocated to Dubai last year to take on the role and reported to regional management, as well as executives in London, they said.

The decision to terminate Weber’s contract came after the firm concluded in an internal review that actions tied to due diligence were unacceptable for someone of his seniority, one of the people said.

Aramco Is Said to Explore Incentives to Reward Loyal IPO Buyers - Bloomberg

Aramco Is Said to Explore Incentives to Reward Loyal IPO Buyers - Bloomberg:

Saudi Aramco is exploring ways to reward loyal investors in its initial public offering to ensure the record share sale isn’t followed by a wave of selling, people with knowledge of the matter said.

One potential measure that Aramco has discussed with Saudi regulators is whether it could offer bonus shares to retail stock buyers who keep their holdings for six months, one of the people said. Aramco is looking to reduce market volatility after it begins trading as well as provide a benefit to mom-and-pop buyers who expect a windfall from local listings, the people said, asking not to be identified because the information is private.

Aramco faces a delicate balance as it seeks to push its IPO valuation as close as possible to $2 trillion -- a figure that’s been met with skepticism from many professional investors -- while making sure it’s attractive to potential Saudi buyers. It’s planning to rely more on local funds after mixed feedback from international money managers forced the company to delay the offer’s kickoff, Bloomberg News reported this week.

Climate Risks Push #Kuwait to Consider Lower Oil-Capacity Targets - Bloomberg

Climate Risks Push Kuwait to Consider Lower Oil-Capacity Targets - Bloomberg:

Kuwait, OPEC’s fourth-biggest member, is considering cuts to its oil production capacity targets, in large part because mounting concern about climate change will constrict demand for fossil fuels. 


Kuwait Petroleum Corp. may reduce its long-standing goal of reaching 4 million barrels of daily capacity by 2020 to 3.125 million barrels, according to a person with direct knowledge of the discussions. The state-owned producer’s current capacity is about 3 million.

Such a change would be a rare acknowledgment by a member of the Organization of Petroleum Exporting Countries that environmental issues are influencing producers’ strategies. While most analysts expect the world to keep consuming oil for decades to come, the debate among them now is when, rather than if, demand will stop growing at all.

Lebanese Billionaire and Top Bank Accused of Illicit Gains - Bloomberg

Lebanese Billionaire and Top Bank Accused of Illicit Gains - Bloomberg:

A state prosecutor accused former prime minister Najib Mikati -- Lebanon’s richest man -- and the country’s biggest bank of making illicit gains from a subsidized housing program, in the first corruption case filed since anti-government protesters took to the streets a week ago.

The lawmaker, his brother Taha and his son Maher, as well as Bank Audi, are alleged to have illegally benefited from loans subsidized by the central bank to help ordinary families buy their own home, the state-owned National News Agency said. The illicit gains law in Lebanon criminalizes profits made through bribes or abuse of public office. The case against Mikati marks the first time it has ever been implemented, according to monitoring group Legal Agenda.

Hundreds of thousands of Lebanese have filled the streets nationwide in the past week, taking aim at a political elite they blame for entrenched corruption and worsening living conditions. The government presented an emergency reform plan Monday to avert financial crisis and appease the public, but the move has failed to quell the revolt.

#Dubai's Averda hires banks to arrange $325 mln bond- document - Reuters

Dubai's Averda hires banks to arrange $325 mln bond- document - Reuters:

Dubai-based Averda International, one of the largest waste management firms in the Middle East and North Africa, has hired banks to arrange a $325 million bond, a document by one of the banks leading the deal showed on Wednesday.

Barclays, Citi and HSBC have been hired as coordinators for the deal and they are joint bookrunners along with Banca IMI, Bank ABC, Emirates NBD Capital and First Abu Dhabi Bank.

Tourism boosts #AbuDhabi hotels; #Dubai counts on Expo 2020 - JLL | ZAWYA MENA Edition

Tourism boosts Abu Dhabi hotels; Dubai counts on Expo 2020 - JLL | ZAWYA MENA Edition:

The UAE capital’s hotel market has posted a strong performance in the third quarter of 2019, thanks to Abu Dhabi government’s efforts to boost tourism.

Occupancy levels in Abu Dhabi increased by 100 basis points, registering 71 per cent in the year until August 2019 and Average Daily Rates (ADRs) increased by eight per cent from the same period last year to reach $113. As a result, revenues per available room (RevPar) in Abu Dhabi during Q3 increased by nine percent over the same period at $80, property consulting firm Jones Lang LaSalle (JLL) in its latest UAE Market report.

Government initiatives aimed to promote tourism within Abu Dhabi has boosted visitor numbers along with overall investment in the tourism sector through a series of high-profile events, conferences and activations during the past quarter, said property consulting firm Jones Lang LaSalle (JLL) in its latest UAE Market report.

UPDATE 2- #UAE's Majid Al Futtaim to raise $600 mln with green dollar sukuk - Reuters

UPDATE 2-UAE's Majid Al Futtaim to raise $600 mln with green dollar sukuk - Reuters:

Majid Al Futtaim, a UAE-based developer and shopping mall operator, is set to raise $600 million by selling “green” sukuk, or Islamic bonds, a document issued by one of the banks leading the sale showed on Wednesday.

The bonds, due in February 2030, offer 225 basis points over mid-swaps, down from an initial price guidance of around 250 basis points over.

The offering has received orders in excess of $2.3 billion, including interest from the joint lead managers, the document said.

#Kuwait's audit body warns against depletion of sovereign fund assets - Reuters

Kuwait's audit body warns against depletion of sovereign fund assets - Reuters:

Kuwait’s State Audit Bureau warned against further withdrawals from the Gulf state’s General Reserve Fund and called for economic reforms to reduce the government reliance on oil revenues, it said in a report on Wednesday.

The General Reserve Fund’s assets fell 5.4% to 22.88 billion Kuwaiti dinars ($75.45 billion) in the second quarter of 2019, it added. ($1 = 0.3033 Kuwaiti dinars)

#SaudiArabia's SALIC says looking at Black Sea grain terminal - Reuters

Saudi Arabia's SALIC says looking at Black Sea grain terminal - Reuters:

Saudi Arabia’s SALIC is conducting due diligence on several projects in the Black Sea region and is looking to acquire a grain terminal there, its managing director told Reuters.

SALIC, the Saudi Agricultural and Livestock Investment Co, was formed in 2011 to secure food supplies for the desert kingdom, the world’s top oil exporter, through mass production and foreign investments.

“It is part of our mandate to give importance to logistics ... so we are looking at SALIC’s presence on that side in the form of a takeover or buying a grain terminal on the Black Sea,” Khaled al-Aboodi said on Sunday.

MIDEAST STOCKS-Property shares weigh on Egypt; other Gulf markets mixed - Reuters

MIDEAST STOCKS-Property shares weigh on Egypt; other Gulf markets mixed - Reuters:

Most Gulf stock markets moved marginally
amid falling oil prices on Wednesday, while Egypt’s blue-chip
index declined, led by property shares.

Oil prices slipped towards $59 a barrel on data showing a
bigger-than-expected rise in U.S. crude stocks, while the
prospect of deeper output cuts by OPEC and its allies offered
support.

Saudi Arabia's index extended gains from the
previous session to close 0.2% up. Al Rajhi Bank
gained 0.7%, while Alinma Bank rose a further 1.3%.   

On Tuesday, Alinma reported a rise in third-quarter profit
to 713 million riyals ($190.10 million) compared to 637 million
a year earlier.

However, gains were capped by losses in petrochemical
stocks.

Russia looks to translate Gulf’s warm welcome to cold cash | Financial Times

Russia looks to translate Gulf’s warm welcome to cold cash | Financial Times:

As Russian president Vladimir Putin’s official jumbo jet flew over the Syrian desert last week, he could afford himself a satisfied smile that the dynamics of the country’s eight-year war — and the wider geopolitics of the Middle East — were shifting in Moscow’s favour.

When he landed in Riyadh a short while later, he was on the hunt for signals that the region’s business climate was doing likewise.

Armed with a delegation of business leaders and executives, Mr Putin’s first state visit to Saudi Arabia for a dozen years was noteworthy for its focus on trade and investment, amid a concerted push by the Kremlin to translate its rising regional clout into bankable cheques.

Mnuchin, Kushner to Return to #Saudi Forum After Khashoggi Death - Bloomberg

Mnuchin, Kushner to Return to Saudi Forum After Khashoggi Death - Bloomberg:

Treasury Secretary Steven Mnuchin and Jared Kushner, a White House adviser and President Donald Trump’s son-in-law, plan to attend an annual Saudi Arabian investment forum a year after skipping the event because of the kingdom’s role in the murder of journalist Jamal Khashoggi.

They plan to stop in Israel before going to Riyadh, according to people familiar with the matter. They’re departing this weekend and will be joined by Brian Hook, a U.S. State Department special representative for Iran.

The investment forum, called the Future Investment Ini tiative, is a the three-day confab, known as “Davos in the Desert.” Held in Riyadh Oct. 29 to 31, the meeting is set to attract some of Wall Street’s top dealmakers, as well as representatives from major institutional investors across the globe.

Abdulmohsen Al-Fares, CEO of Alinma Bank, on Earnings, Outlook - Bloomberg

Abdulmohsen Al-Fares, CEO of Alinma Bank, on Earnings, Outlook - Bloomberg:





Abdulmohsen Al-Fares, chief executive officer of Saudi Arabia's Alinma Bank, talks about the company's financial results, business outlook, and the opportunities that Saudi Aramco's initial public offering might create for the country's lenders. Alinma Bank reported a 12 percent increase in third-quarter profit. Al-Fares speaks with Yousef Gamal El-Din and Tracy Alloway on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Investors Lap Up #SaudiArabia’s First Bond Since Drone Attacks - Bloomberg

Investors Lap Up Saudi Arabia’s First Bond Since Drone Attacks - Bloomberg:

Saudi Arabia raised $2.5 billion of Islamic bonds in its first international debt sale since a missile and drone attack on its oil industry.

The Gulf monarchy sold the sukuk securities maturing in October 2029 at 127 basis points more than the benchmark midswap rate, down from an anticipated range of between 145 and 150 basis points, as it received more than $13 billion of orders. 





The sale reflects how demand for Saudi Arabia’s Islamic bonds has remained buoyant even as its conventional dollar debt has underperformed that of peers this month. Last month’s strikes on Saudi Aramco facilities laid bare the vulnerability of the kingdom’s lifeblood industry, prompting Fitch Ratings to downgrade the debt. The boost from the kingdom’s inclusion in JPMorgan Chase & Co.’s emerging-market dollar-bond indexes earlier this year has also faded.

#Kuwait’s wealth reaches $405bln in mid-2019 | ZAWYA MENA Edition

Kuwait’s wealth reaches $405bln in mid-2019 | ZAWYA MENA Edition:

Kuwait’s wealth reached $405 billion in mid-2019, up $60 billion from $390 billion in the middle of last year, up more than 15 percent a year, according to the latest report by Swiss research firm Credit Suisse, reports Al-Anba daily.

The report added the average per capita wealth of Kuwait reached 131.1 thousand dollars by the middle of this year, and the per capita GDP of 45 thousand dollars. 


According to the report, a Kuwaiti citizen is considered the second richest among the GCC citizens in terms of the average per capita wealth, while the Qatari is ranked first with an average of 147.7 thousand dollars, followed by the Emirati with an average of 117 thousand dollars and the Saudi citizen an average of 67 thousand dollars.

Oil dips as U.S. stocks rise; prospect of OPEC action supports - Reuters

Oil dips as U.S. stocks rise; prospect of OPEC action supports - Reuters:

Oil prices declined on Wednesday, holding below $60 a barrel on data showing a bigger-than-expected rise in U.S. crude stocks, but the prospect of deeper output cuts by OPEC and its allies offered support.

Brent crude futures LCOc1 were down 25 cents, or 0.43%, to $59.45 a barrel at 0834 GMT.

West Texas Intermediate (WTI) crude futures CLc1 for December delivery fell 32 cents, or 0.59%, to $54.16 per barrel. The November contract expired on Tuesday at $54.16.

U.S. crude stocks rose by 4.5 million barrels to 437 million barrels in the week ended Oct. 18, compared with analysts’ expectations for a gain of 2.2 million barrels, data from industry group the American Petroleum Institute showed.

Oil and non-oil declines weigh on #Qatar growth outlook: Reuters poll - Reuters

Oil and non-oil declines weigh on Qatar growth outlook: Reuters poll - Reuters:

Growth forecasts for the Gulf state of Qatar were chopped in a quarterly Reuters poll on Wednesday after the government this month published the first quarterly contraction of its economy in years.

Qatar’s gross domestic product (GDP) will grow 2.0% in 2019, 2.4% in 2020 and 2.3% in 2021, the Oct. 8-21 poll of around 25 economists projected. Three months ago, the forecasts were for growth of 2.5% in 2019, 2.9% in 2020 and 3.2% in 2021.

Government data this month showed Qatar’s economy contracted 1.4% in the second quarter from a year earlier, hurt by a drop in the manufacturing and construction sectors.

“The 1.4% year-on-year contraction was weaker than we expected,” James Swanston of Capital Economics said, adding that the weakness stemmed from declines in both oil and non-oil GDP.

#UAE's Majid Al Futtaim starts marketing green dollar sukuk - Reuters

UAE's Majid Al Futtaim starts marketing green dollar sukuk - Reuters:

Majid Al Futtaim, a UAE-based developer and shopping mall operator, started marketing U.S. dollar-denominated “green” sukuk, or Islamic bonds, a document issued by one of the banks leading the deal showed on Wednesday.

The bonds, due in February 2030, offer an initial price guidance of around 250 basis points over mid-swaps and are of benchmark size, which generally means upwards of $500 million. 


Green bonds are a growing category of fixed-income securities and green sukuk could widen the appeal of Islamic bonds beyond traditional markets in Asia and the Middle East to include ethical investors in Western countries.

RPT-UPDATE 1-Aramco listing was delayed to rope in anchor investors -sources - Reuters

RPT-UPDATE 1-Aramco listing was delayed to rope in anchor investors -sources - Reuters:

Oil giant Saudi Aramco’s much-vaunted stock market listing was delayed after deal advisers said they need more time to lock in cornerstone investors, three sources with direct knowledge of the matter told Reuters.

After a false start last year, preparations gathered momentum this summer with approaches to sovereign wealth funds, rich Saudis and large foreign fund managers as potential cornerstone investors only for plans to unravel for a second time.

The world’s biggest oil company had been expected last week to launch the domestic sale of a 1-2% stake, but the signing up of marquee backers has been hampered by continuing valuation concerns exacerbated by recent attacks on Aramco’s Abqaiq and Khurais plants.

#Qatar's Commercial Bank still looking to sell United Arab Bank stake - Reuters

Qatar's Commercial Bank still looking to sell United Arab Bank stake - Reuters:

Qatar’s Commercial Bank, the country’s third-largest bank by assets, said on Wednesday it is still looking to sell its 40% stake in Abu Dhabi-listed United Arab Bank (UAB), after sale talks stalled last year.

Commercial Bank continued to classify its shares in UAB as an “asset held for sale”, according to a statement announcing its financial results for the nine-month period ending on Sept. 30.

Qatar became locked in a diplomatic dispute with Saudi Arabia, the United Arab Emirates, Egypt and Bahrain in mid-2017.

MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit #Saudi - Reuters

MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit Saudi - Reuters:

Most major Gulf indexes opened lower on Wednesday, with Saudi hurt by a slew of weak earnings, while Qatar extended losses for a fifth straight session.

In Saudi Arabia, the benchmark index dropped 0.3% with National Commercial Bank dropping 0.8% and Al Rajhi Bank losing 0.3%.

Sahara International Petrochemical (Sipchem) also slid 3.2% after it reported a more than 38% plunge in third-quarter net profit. The petrochemical maker said it was due to a decrease in selling prices for most of the products.

Saudi Arabia Mining Co declined 1.2% after it posted a third-quarter net loss of 92 million riyals, compared with a profit of 415 million riyals a year earlier.