Oil Falls to Lowest in a Week After Surprise U.S. Crude Build - Bloomberg

Oil Falls to Lowest in a Week After Surprise U.S. Crude Build - Bloomberg:

Oil fell for a third day as a U.S. government report showed a bigger-than-expected build in domestic crude supplies and Chile canceled a summit where the U.S. and China were expected to sign a preliminary trade accord.

Futures in New York declined to the lowest in a week on Wednesday. The Energy Information Administration reported that American crude inventories rose by 5.7 million barrels last week, beating analyst forecasts, while supplies at the key Cushing, Oklahoma, storage hub rose for a fourth week. U.S. President Donald Trump’s plan to ink a trade deal with Chinese President Xi Jinping were thrown into question when Chile canceled next month’s APEC summit where the two leaders planned to meet.

Gulf Rate Cuts in Wake of Fed Are Finally Joined by #Kuwait - Bloomberg

Gulf Rate Cuts in Wake of Fed Are Finally Joined by Kuwait - Bloomberg:

Kuwait joined a round of monetary easing in the Gulf for the first time this year as regional central banks followed the U.S. Federal Reserve’s interest-rate cut of a quarter percentage point on Wednesday.

Policy makers in Kuwait lowered borrowing costs for the first time since 2012, after splitting from their neighbors when U.S. rates were cut in July and September. Central banks in the region usually tend to move in lockstep with the Fed to protect their currencies’ peg to the dollar. Kuwait controls the value of its dinar against an undisclosed basket of currencies, meaning it has more flexibility in setting rates.

Two ‘Forbidden’ IPOs Pit Gulf Investors Against Islamic Clerics - Bloomberg

Two ‘Forbidden’ IPOs Pit Gulf Investors Against Islamic Clerics - Bloomberg:

This year’s list of IPO debacles could grow longer if Kuwait’s clerics have their way.

A religious ruling in Kuwait against two initial public offerings launched this month is stirring fears that the Gulf state is clamming up at a time its bigger neighbor Saudi Arabia is doing just the opposite, courting investors in anticipation of Saudi Aramco’s IPO.

The offering of half of Kuwait’s stock exchange to citizens and a long-awaited public subscription to Shamal Al-Zour, the company that owns and operates a major power station, began Oct. 1. Nearly three weeks later, Kuwait’s highest religious authority said they breached Islamic law’s prohibition on interest and branded them “haram,” or forbidden.

The non-binding fatwa issued by the Ministry of Awqaf and Islamic Affairs said Boursa Kuwait trades in stocks of companies including those that don’t comply with Islamic principals, and makes “illegal revenues” from brokering transactions in these stocks. It also states Kuwait Stock Exchange company’s earns returns on deposits at banks aren’t Shariah compliant.

Investcorp plans $1 bln infrastructure investments in #Saudi, Gulf & MENA - joint CEO - Reuters

Investcorp plans $1 bln infrastructure investments in Saudi, Gulf & MENA - joint CEO - Reuters:

Bahrain-based Investcorp plans to invest at least half of its $1 billion GCC Infrastructure fund in Saudi Arabia as it seeks to take advantage of investment opportunities in the kingdom, its co-chief executive said on Wednesday. 


“It will focus on healthcare, education, social housing, infrastructure roads, utilities,” Hazem Ben-Gacem told Reuters, adding that the remainder would be invested in other Gulf Arab states and the wider Middle East and North Africa (MENA) region.

The firm wants to be active in projects such as ports in Oman, utilities in the United Arab Emirates as well as the toll road infrastructure in Bahrain, he said in an interview on the sidelines of a Future Investment Initiative forum in Riyadh.

Russia's RDIF unlikely to make huge investment in Aramco IPO -chief - Reuters

Russia's RDIF unlikely to make huge investment in Aramco IPO -chief - Reuters:

Russia’s sovereign wealth fund will not make a huge investment in Saudi oil giant Aramco’s initial public offering (IPO), the head of the Russian Direct Investment Fund (RDIF) Kirill Dmitriev told Reuters on Wednesday.

“Definitely Russia will not be making a huge investment in Aramco because already it is quite exposed to oil,” he said in an interview on the sidelines of an investment forum in the Saudi capital Riyadh.

“But lots of pension funds believe Aramco offers a very interesting value proposition ... There’s definite interest from a number of Russian pension funds, a number of Russian investment funds and investment banks.”

#Saudi Public Investment Fund signs $10 bln loan - Reuters

Saudi Public Investment Fund signs $10 bln loan - Reuters:

Saudi Arabia’s Public investment Fund (PIF) on Wednesday signed a $10 billion loan, an executive said. 


The loan, provided by a syndicate of 10 banks, is linked to the acquisition by Saudi Aramco of PIF’s stake in petrochemical company Saudi Basic Corporation (SABIC), said Alireza Zaimi, head of corporate finance at PIF.

He was speaking at an investment conference in Riyadh.

#Saudi, #UAE sovereign wealth funds look for growth in global markets - FII | ZAWYA MENA Edition

Saudi, UAE sovereign wealth funds look for growth in global markets - FII | ZAWYA MENA Edition:

Sovereign wealth funds from Saudi Arabia and the UAE are expanding across markets such as Russia, China, India and Latin America to mitigate risks of uncertainty.

Experts attending the three-day Future Investment Initiative (FII) conference in Saudi Arabia identified uncertainty due to fast-changing technologies and geopolitical tensions as one of the biggest challenges for businesses and societies around the world. Additionally, many of these new technologies are being used by the finance sector to break geographical barriers.

Slowing of GDP growth in the UAE and Saudi Arabia can be mitigated through diligent global investments by cash-rich sovereign wealth funds (SWFs) from Saudi Arabia and the UAE, according to the speakers at the opening session on investments.

Brazil President Bolsonaro says he wants his country to join OPEC - Reuters

Brazil President Bolsonaro says he wants his country to join OPEC - Reuters: 

Brazilian President Jair Bolsonaro said on Wednesday that he wants his country to join OPEC, a move that would add the most significant new producer to the oil cartel for years. 

The comments come ahead of a massive auction of oil rights in Brazil, which is boosting output rapidly. OPEC membership would likely require Brazil to limit oil production, potentially throwing future expansion plans into doubt.

The Organization of the Petroleum Exporting Countries groups top exporter Saudi Arabia and 13 other countries. Since 2017, OPEC has had a deal with several non-member producers, excluding Brazil, to limit supply in an effort to bolster prices.

U.S., Gulf countries impose joint #Iran-related sanctions on 25 targets - Reuters

U.S., Gulf countries impose joint Iran-related sanctions on 25 targets - Reuters:

The United States and six Gulf countries agreed to jointly impose sanctions on 25 corporations, banks and individuals linked to Iran’s support for militant networks including Hezbollah, the U.S. Treasury Department said on Wednesday.

The blacklisted targets were announced by the Terrorist Financing Targeting Center (TFTC) nations - which also include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates - as U.S. Treasury Secretary Steve Mnuchin traveled in the Middle East to finalize details of an economic development plan for the Palestinians, Jordan, Egypt and Lebanon.

All 25 targets were previously under sanctions by the United States.

MIDEAST STOCKS- #AbuDhabi outperforms on FAB, #Saudi ends losing streak - Reuters

MIDEAST STOCKS-Abu Dhabi outperforms on FAB, Saudi ends losing streak - Reuters:

Abu Dhabi stocks rebounded on Wednesday,
outperforming regional peers after a surge in First Abu Dhabi
Bank, while Saudi snapped a three-day losing streak on corporate
earnings announcements.

The Abu Dhabi index bounced back 1.9% after it lost
1.2% in the previous session, with market heavyweight First Abu
Dhabi Bank (FAB) surging 3.4%.

The largest lender in the United Arab Emirates saw its
biggest intraday gain since July, a day after it announced the
opening of a new branch in Saudi's Al Khobar. Another branch is
scheduled to open soon in Jeddah.

On Oct. 24 the lender also reported single-digit growth in
third-quarter net profit, broadly in line with analyst
forecasts.

Gulf Wealth Funds to Consider Investing in Aramco IPO - Bloomberg

Gulf Wealth Funds to Consider Investing in Aramco IPO - Bloomberg:

Sovereign wealth funds in Kuwait and Bahrain said they will consider investing in the initial public offering of Saudi Aramco, while their counterpart in South Korea plans to wait for the inclusion of the oil giant in benchmark stock indexes.

“Usually we try to be diversified away from oil but it’s an investment opportunity,” Kuwait Investment Authority’s Managing Director Farouk Bastaki told reporters in Riyadh at the Future Investment Initiative conference. The Kuwait Investment Authority hasn’t been approached by Aramco nor its advisers and its decision to invest would depend on the size, timing and valuation of the IPO, he said.

Saudi Aramco is working toward an IPO that may raise $40 billion $60 billion and is set to be the world’s biggest. Saudi Arabia’s Capital Markets Authority will announce the start of the IPO process on Sunday and the shares will begin trading in Riyadh from Dec. 11, Al Arabiya TV reported, without saying where it got the information.

#SaudiArabia’s Sovereign Fund to Invest $10 Billion in Brazil - Bloomberg

Saudi Arabia’s Sovereign Fund to Invest $10 Billion in Brazil - Bloomberg:

Saudi Arabia’s Public Investment Fund will invest $10 billion in Brazil and plans to use the country as a gateway to the rest of Latin America, the Brazilian government said.

The investment comes after talks between President Jair Bolsonaro and Crown Prince Mohammed Bin Salman, Brazilian Foreign Affairs Minister Ernesto Araujo told reporters in Riyadh on Tuesday.

Bolsonaro met Bin Salman at the Ritz-Carlton Hotel, where the sovereign fund is hosting an investment summit this week. The $320 billion fund is mandated with making the kingdom’s economy less dependent on oil.

#Dubai Ports Operator’s U.K. Expansion on Hold Over Brexit - Bloomberg

Dubai Ports Operator’s U.K. Expansion on Hold Over Brexit - Bloomberg:

Dubai ports operator DP World Plc put its expansion plan in the U.K. on hold due to uncertainties over Brexit.

“I have a deal to expand, but on hold until they decide,” Chairman Sultan Ahmed Bin Sulayem said in an interview with Bloomberg TV in Riyadh. “Because today if you go to any bank to lend you money in the U.K., they don’t know are we going to be out or in.”

The U.K. voted to leave the European Union in 2016, yet remains trapped in a long-term relationship with the trading bloc as two prime ministers have found it difficult to have divorce deals approved by parliament.

#Saudi regulator approves public offering of AlBilad Investment Company's fund | ZAWYA MENA Edition

Saudi regulator approves public offering of AlBilad Investment Company's fund | ZAWYA MENA Edition:

The Saudi Capital Market Authority (CMA) has announced the approval of public offering of "Ensan Endowment Fund", by AlBilad Investment Company, the regulator said in a statement.

However, CMA noted that the approval of the fund should never be considered as a recommendation to subscribe in the fund, as it only means that the legal requirements have been met, it added in the statement.

#UAE banks' investments hit $17.43bln in nine months | ZAWYA MENA Edition

UAE banks' investments hit $17.43bln in nine months | ZAWYA MENA Edition:

The investment portfolio of UAE-based banks amounted to AED64 billion in the first nine months of 2019, hitting a total record of AED397.3 billion by the end of September, according to figures revealed by the Central Bank of the United Arab Emirates.

The growth trajectory is driven by a 19.4 percent jump in banks' investments in securities from circa AED210.9 bn in December 2018 to AED248.6 bn by the end of this September.

Investing in shares grew likewise from AED10.1 bn to AED11.6 bn during the same period, with investments in held-to-maturity securities growing from AED81.2 bn to AED94.1 bn, while other investments amounted from AED30.6 bn to AED43 bn.

Oil slips as trade concerns outweigh drop in inventories - Reuters

Oil slips as trade concerns outweigh drop in inventories - Reuters:

Oil prices fell on Wednesday as a possible delay in resolving the U.S.-China trade war overshadowed a drop in U.S. crude inventories.

Brent crude was down 7 cents, or 0.1%, at $61.52 a barrel by 0735 GMT, having fallen to as low as $61.32.

U.S. West Texas Intermediate (WTI) crude was down 15 cents, or 0.3%, at $55.39 a barrel after reaching a low of $55.16.

U.S. crude inventories fell 708,000 barrels in the week ended Oct. 25 to 436 million, compared with analysts’ expectations for an increase of 494,000 barrels, according to data from the industry group, the American Petroleum Institute.

#Saudi energy minister: Saudi Aramco's public offering 'soon'

Saudi energy minister: Saudi Aramco's public offering 'soon':

Saudi Arabia’s energy minister says a planned initial public offering of the state-run oil giant Saudi Aramco will happen “soon.”

Speaking before the Future Investment Initiative summit on Wednesday, Prince Abdulaziz bin Salman told those gathered in Riyadh that “the IPO will come soon.”

He also reference the kingdom’s powerful Crown Prince Mohammed bin Salman. 


Prince Abdulaziz said: “It will come in the right time with the right approach and definitely with the right decision. And it will be a Saudi decision, first and foremost. Specifically, Prince Mohammed’s decision.”