Saudi Arabia's BinDawood Said to Pick JPMorgan, Goldman for IPO - Bloomberg:
Saudi Arabia’s BinDawood Group is working with Goldman Sachs Group Inc. and JPMorgan Chase & Co. to sell shares of its supermarket business as early as next year, according to people with knowledge of the matter.
The company also picked GIB Capital for the deal, which could value the business at more than 7 billion riyals ($1.87 billion), the people said, asking not to be identified as the information is private. Moelis & Co. is working as the financial adviser.
The group started preparations earlier this year to list the company that operates the BinDawood and Danube supermarkets and hypermarkets, Bloomberg News reported. The deal would allow Investcorp Bank BSC to exit its minority stake in the retailer, marking the buyout firm’s third exit from Saudi investments via an IPO in five years.
Sunday 27 October 2019
Gulf’s Holdout on Rates Is About to Jump on Fed Easing Bandwagon - Bloomberg
Gulf’s Holdout on Rates Is About to Jump on Fed Easing Bandwagon - Bloomberg:
The only Gulf Arab central bank with an unpredictable monetary policy might finally fall in line this week.
In a region where most countries usually track the Federal Reserve to protect their currencies’ pegs to the dollar, Kuwait split from the likes of Saudi Arabia and the United Arab Emirates, standing pat when U.S. interest rates were lowered in July and September. But now that the Fed is widely expected to deliver another cut, Kuwait is likely to pull the trigger too, even as inflation accelerates.
As pressure builds on funding costs at Kuwaiti banks and with this year’s economic growth forecast at just above zero, the probability of its first monetary easing since 2012 is “very high,” according to Raghu Mandagolathur, head of research at Kuwait Financial Centre SAK. Unlike its neighbors’ pegs to the dollar, Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
The only Gulf Arab central bank with an unpredictable monetary policy might finally fall in line this week.
In a region where most countries usually track the Federal Reserve to protect their currencies’ pegs to the dollar, Kuwait split from the likes of Saudi Arabia and the United Arab Emirates, standing pat when U.S. interest rates were lowered in July and September. But now that the Fed is widely expected to deliver another cut, Kuwait is likely to pull the trigger too, even as inflation accelerates.
As pressure builds on funding costs at Kuwaiti banks and with this year’s economic growth forecast at just above zero, the probability of its first monetary easing since 2012 is “very high,” according to Raghu Mandagolathur, head of research at Kuwait Financial Centre SAK. Unlike its neighbors’ pegs to the dollar, Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.
Industries #Qatar reports 47% fall in nine-month net profit - Reuters
Industries Qatar reports 47% fall in nine-month net profit - Reuters:
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
UPDATE 1- #AbuDhabi Commercial Bank Q3 profit falls 13%, to exit Kuwait, Qatar - Reuters
UPDATE 1-Abu Dhabi Commercial Bank Q3 profit falls 13%, to exit Kuwait, Qatar - Reuters:
Abu Dhabi Commercial Bank on Sunday reported a 13% drop in third quarter profit thanks to lower interest income, and said it would quit foreign operations to focus on its home market.
The bank said it was on track to exit its operations in India after selling most of its banking portfolio there to DCB Bank and had also begun to withdraw from Qatar and Kuwait.
ADCB reported a net profit of 1.41 billion dirhams ($383.93 million) in the three months ending Sept. 30, down from 1.62 billion dirhams during the same period last year, it said in a statement.
Abu Dhabi Commercial Bank on Sunday reported a 13% drop in third quarter profit thanks to lower interest income, and said it would quit foreign operations to focus on its home market.
The bank said it was on track to exit its operations in India after selling most of its banking portfolio there to DCB Bank and had also begun to withdraw from Qatar and Kuwait.
ADCB reported a net profit of 1.41 billion dirhams ($383.93 million) in the three months ending Sept. 30, down from 1.62 billion dirhams during the same period last year, it said in a statement.
Air Products, ACWA, Aramco JV raising debt to fund purchase of assets - Reuters
Air Products, ACWA, Aramco JV raising debt to fund purchase of assets - Reuters:
A joint venture between U.S.-based Air Products (APD.N), Saudi Arabia’s ACWA Power and Saudi Aramco (IPO-ARMO.SE) is raising debt to help finance the purchase of assets worth $11.5 billion by the end of the year, an ACWA Power spokeswoman told Reuters.
The joint venture is in advanced stages of talks with lenders, the spokeswoman said.
The companies had signed an agreement for a gasification/power joint venture in August 2018, to serve Aramco’s Jazan Refinery and terminal.
A joint venture between U.S.-based Air Products (APD.N), Saudi Arabia’s ACWA Power and Saudi Aramco (IPO-ARMO.SE) is raising debt to help finance the purchase of assets worth $11.5 billion by the end of the year, an ACWA Power spokeswoman told Reuters.
The joint venture is in advanced stages of talks with lenders, the spokeswoman said.
The companies had signed an agreement for a gasification/power joint venture in August 2018, to serve Aramco’s Jazan Refinery and terminal.
MIDEAST STOCKS- #Saudi dips on weak earnings; property shares aid Egypt - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi dips on weak earnings; property shares aid Egypt - Agricultural Commodities - Reuters:
Gulf stock markets mostly slipped on
Sunday, following a series of disappointing corporate results in
Saudi Arabia, while Egypt edged up on property shares.
In Saudi Arabia, the benchmark index slipped 0.3%,
snapping a three-day winning streak, as Saudi Basic Industries
(SABIC) fell 1.2% following an 86% plunge in
third-quarter net profit.
The world's fourth-biggest petrochemicals firm recorded a
1.5 billion riyal ($400 million) impairment provision related to
its stake in Switzerland's Clariant AG.
Zain Saudi slid 3.5%, its biggest intraday fall
since August. On Thursday, the telecommunications operator
reported a third-quarter net profit of 121 million riyals, up
from 48 million riyals a year earlier but down nearly 7% from
the second quarter.
Gulf stock markets mostly slipped on
Sunday, following a series of disappointing corporate results in
Saudi Arabia, while Egypt edged up on property shares.
In Saudi Arabia, the benchmark index slipped 0.3%,
snapping a three-day winning streak, as Saudi Basic Industries
(SABIC) fell 1.2% following an 86% plunge in
third-quarter net profit.
The world's fourth-biggest petrochemicals firm recorded a
1.5 billion riyal ($400 million) impairment provision related to
its stake in Switzerland's Clariant AG.
Zain Saudi slid 3.5%, its biggest intraday fall
since August. On Thursday, the telecommunications operator
reported a third-quarter net profit of 121 million riyals, up
from 48 million riyals a year earlier but down nearly 7% from
the second quarter.
Russia's Oil Supply Is Vulnerable - Bloomberg
Russia's Oil Supply Is Vulnerable - Bloomberg:
It’s just been six months since the biggest crisis for Russian oil distribution in living history, and the leader of the country’s largest oil company is already flinging mud in the direction of the world’s other two giant oil producers, Saudi Arabia and the U.S.
On Thursday, speaking at the Verona Forum, Igor Sechin, chief executive officer of state controlled Rosneft PJSC, which produces more than a third of Russia’s crude, said it was time to “reassess Saudi Arabia’s role as the unconditionally reliable oil supplier” in light of last month’s drone attack on Saudi oil infrastructure. Then he turned his sights on President Donald Trump’s decision to pull the U.S. out of the Iran nuclear deal, saying it was “a serious blow to security of supplies from the Middle East.”
He also questioned how long America’s shale boom would last, suggesting that the long-term potential is unclear, especially without more in-depth study of the resource base underpinning the industry there.
It’s just been six months since the biggest crisis for Russian oil distribution in living history, and the leader of the country’s largest oil company is already flinging mud in the direction of the world’s other two giant oil producers, Saudi Arabia and the U.S.
On Thursday, speaking at the Verona Forum, Igor Sechin, chief executive officer of state controlled Rosneft PJSC, which produces more than a third of Russia’s crude, said it was time to “reassess Saudi Arabia’s role as the unconditionally reliable oil supplier” in light of last month’s drone attack on Saudi oil infrastructure. Then he turned his sights on President Donald Trump’s decision to pull the U.S. out of the Iran nuclear deal, saying it was “a serious blow to security of supplies from the Middle East.”
He also questioned how long America’s shale boom would last, suggesting that the long-term potential is unclear, especially without more in-depth study of the resource base underpinning the industry there.
World ‘Awash’ in Oil As U.S. Sees Its Shale Boom Barreling Ahead - Bloomberg
World ‘Awash’ in Oil As U.S. Sees Its Shale Boom Barreling Ahead - Bloomberg:
Global markets are “awash” in crude thanks to the surge in U.S. oil output, and the boom looks set to continue, U.S. Energy Secretary Rick Perry said in a Bloomberg TV interview.
U.S. shale production has turned the world “on its head,” and Goldman Sachs Group Inc. is “off a bit” in a report last week saying that the bonanza is fading, Perry said on Sunday in Dubai.
Oil and natural gas from American shale fields have made the U.S. one of the world’s largest producers and enabled it to become a net energy exporter. Perry will travel in the coming week to Saudi Arabia to discuss possible sales of U.S. liquefied natural gas and Saudi efforts to develop a nuclear power program. Perry held talks in the United Arab Emirates and visited the country’s largest solar-power facility at a site near the U.A.E.’s commercial hub of Dubai.
Global markets are “awash” in crude thanks to the surge in U.S. oil output, and the boom looks set to continue, U.S. Energy Secretary Rick Perry said in a Bloomberg TV interview.
U.S. shale production has turned the world “on its head,” and Goldman Sachs Group Inc. is “off a bit” in a report last week saying that the bonanza is fading, Perry said on Sunday in Dubai.
Oil and natural gas from American shale fields have made the U.S. one of the world’s largest producers and enabled it to become a net energy exporter. Perry will travel in the coming week to Saudi Arabia to discuss possible sales of U.S. liquefied natural gas and Saudi efforts to develop a nuclear power program. Perry held talks in the United Arab Emirates and visited the country’s largest solar-power facility at a site near the U.A.E.’s commercial hub of Dubai.
#Dubai Faces a ‘Disaster’ From Overbuilding, Top Developer Says - Bloomberg
Dubai Faces a ‘Disaster’ From Overbuilding, Top Developer Says - Bloomberg:
Dubai needs to halt all new home construction for one or two years to avert an economic disaster brought on by continued oversupply, according to one of its biggest builders.
“We’re entering a crossroads now,” Damac Properties PJSC Chairman Hussain Sajwani said in a Bloomberg interview.
“Either we fix this problem and we can grow from here or we are going to see a disaster.”
Hussain Sajwani
Damac’s chairman is the latest executive to call for curbs on construction in a market that’s been on a downward trajectory since it peaked five years ago. The slump has defied all predictions of a rebound as house prices fell around 30%. About 30,000 new homes will be built this year, twice the demand in the Gulf city, property broker JLL estimates.
Dubai needs to halt all new home construction for one or two years to avert an economic disaster brought on by continued oversupply, according to one of its biggest builders.
“We’re entering a crossroads now,” Damac Properties PJSC Chairman Hussain Sajwani said in a Bloomberg interview.
“Either we fix this problem and we can grow from here or we are going to see a disaster.”
Hussain Sajwani
Damac’s chairman is the latest executive to call for curbs on construction in a market that’s been on a downward trajectory since it peaked five years ago. The slump has defied all predictions of a rebound as house prices fell around 30%. About 30,000 new homes will be built this year, twice the demand in the Gulf city, property broker JLL estimates.
#Saudi SABIC records $400 mln impairment loss on Clariant, Q3 drops - Reuters
Saudi SABIC records $400 mln impairment loss on Clariant, Q3 drops - Reuters:
Saudi Basic Industries Corp. (SABIC) took an impairment loss of 1.5 billion riyals ($400 million) on its investment in Swiss chemicals firm Clariant , which resulted in an 86% drop in its third-quarter net profit.
SABIC posted a net profit of 830 million riyals in the quarter ending September 30, down from 6.1 billion riyals in the same quarter a year earlier.
“The decrease in net income is attributable to lower average selling prices in addition to recording (Saudi riyal) 1.5 billion impairment provision in the investment in (Clariant AG),” it said in a statement.
Saudi Basic Industries Corp. (SABIC) took an impairment loss of 1.5 billion riyals ($400 million) on its investment in Swiss chemicals firm Clariant , which resulted in an 86% drop in its third-quarter net profit.
SABIC posted a net profit of 830 million riyals in the quarter ending September 30, down from 6.1 billion riyals in the same quarter a year earlier.
“The decrease in net income is attributable to lower average selling prices in addition to recording (Saudi riyal) 1.5 billion impairment provision in the investment in (Clariant AG),” it said in a statement.
S&P affirms #Sharjah's rating; outlook stable | ZAWYA MENA Edition
S&P affirms Sharjah's rating; outlook stable | ZAWYA MENA Edition:
S&P Global Ratings affirmed its ‘BBB+/A-2’ long- and short-term foreign and local currency sovereign credit ratings for the Emirate of Sharjah, with a stable outlook.
Sharjah’s economy is expected to expand steadily by about 2 percent from 2019 to 2022, with moderate debt and interest burdens, S&P said in its research report.
S&P could raise the emirate’s rating in the next two years if net general government debt or debt-service costs decreased materially, however views this as unlikely over the next two years.
S&P Global Ratings affirmed its ‘BBB+/A-2’ long- and short-term foreign and local currency sovereign credit ratings for the Emirate of Sharjah, with a stable outlook.
Sharjah’s economy is expected to expand steadily by about 2 percent from 2019 to 2022, with moderate debt and interest burdens, S&P said in its research report.
S&P could raise the emirate’s rating in the next two years if net general government debt or debt-service costs decreased materially, however views this as unlikely over the next two years.
Industries #Qatar reports 47% fall in nine-month net profit - Reuters
Industries Qatar reports 47% fall in nine-month net profit - Reuters:
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
Industries Qatar on Sunday reported a 47% fall in nine-month net profit to 2 billion Qatar riyals ($549.22 million) citing lower sales and prices.
The company said in a statement it had been hurt by a global slowdown, the global trade row and volatile commodity prices as well as planned and unplanned maintenance.
The Middle East’s second-biggest petrochemicals company by market value said its earnings per share fell to 0.34 riyals from 0.63 riyals a year earlier.
#Qatar Airways, JAL among suitors for Malaysia Airlines: media - Reuters
Qatar Airways, JAL among suitors for Malaysia Airlines: media - Reuters:
Three international carriers have put in bids to buy a strategic stake in the ailing Malaysian carrier, Malaysia Airlines, according to a report published on Saturday by business weekly The Edge Malaysia.
Malaysia’s government said on Tuesday that sovereign fund Khazanah Nasional Bhd, which owns Malaysia Airlines, has shortlisted four potential investors for the deal, after having invited initial proposals from a field of 20.
Of the four short-listed, three of them are airlines - Qatar Airways, Japan Airlines Co Ltd (9201.T) and China Southern Airlines (600029.SS) - The Edge reported citing sources.
However, a Qatar Airways spokesman told Reuters in a brief text message that the airline was not among the bidders shortlisted.
Three international carriers have put in bids to buy a strategic stake in the ailing Malaysian carrier, Malaysia Airlines, according to a report published on Saturday by business weekly The Edge Malaysia.
Malaysia’s government said on Tuesday that sovereign fund Khazanah Nasional Bhd, which owns Malaysia Airlines, has shortlisted four potential investors for the deal, after having invited initial proposals from a field of 20.
Of the four short-listed, three of them are airlines - Qatar Airways, Japan Airlines Co Ltd (9201.T) and China Southern Airlines (600029.SS) - The Edge reported citing sources.
However, a Qatar Airways spokesman told Reuters in a brief text message that the airline was not among the bidders shortlisted.
Mideast Stocks Trade Mixed With Earnings in Focus: Inside EM - Bloomberg
Mideast Stocks Trade Mixed With Earnings in Focus: Inside EM - Bloomberg:
Equity markets in the Middle East were mixed as investors followed closely earnings results for some of the biggest companies in the region.
The main index in Doha led losses as Industries Qatar QSC declined on the back of a 47% drop in net profit for the nine months ended in September. The Qatari gauge headed for the sixth decline in seven sessions.
In Riyadh, giant petrochemicals producer Saudi Basic Industries Corp. fell as much as 2.4% after posting the worst quarterly profit in ten years. The company cited lower average selling prices and a 1.5 billion riyal impairment provision for its investment in Clariant AG for the poor results.
Equity markets in the Middle East were mixed as investors followed closely earnings results for some of the biggest companies in the region.
The main index in Doha led losses as Industries Qatar QSC declined on the back of a 47% drop in net profit for the nine months ended in September. The Qatari gauge headed for the sixth decline in seven sessions.
In Riyadh, giant petrochemicals producer Saudi Basic Industries Corp. fell as much as 2.4% after posting the worst quarterly profit in ten years. The company cited lower average selling prices and a 1.5 billion riyal impairment provision for its investment in Clariant AG for the poor results.
MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit #Saudi - Reuters
MIDEAST STOCKS-Most Gulf markets fall, weak earnings hit Saudi - Reuters:
Saudi Arabia’s stock market fell on Sunday, ending a three-day winning streak weighed down by lacklustre corporate earnings, while other Gulf markets were mixed.
In Saudi Arabia, the benchmark index was down 0.2%. Saudi Basic Industries fell 1% after it posted an 86% fall in third-quarter net profit.
The firm recorded a 1.5 billion riyal impairment provision related to its stake in Switzerland’s Clariant AG.
Saudi Arabia’s stock market fell on Sunday, ending a three-day winning streak weighed down by lacklustre corporate earnings, while other Gulf markets were mixed.
In Saudi Arabia, the benchmark index was down 0.2%. Saudi Basic Industries fell 1% after it posted an 86% fall in third-quarter net profit.
The firm recorded a 1.5 billion riyal impairment provision related to its stake in Switzerland’s Clariant AG.
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