Why Saudi Arabia's Delayed Aramco IPO Is No Ordinary Share Sale - Bloomberg:
Saudi Aramco’s much heralded and oft-delayed initial public offering is going ahead -- albeit in a scaled-down version of the original plan by Saudi Crown Prince Mohammed bin Salman. There’ll be no grand opening on the London or New York stock exchanges -- the sale is restricted to the Saudi bourse and won’t even by marketed to most international money managers. Investors will be able to purchase just 1.5% of the world’s most profitable company -- about half what was previously considered. Even so, the share sale in early December will come close to, or even surpass, the record for the biggest IPO in history.
Monday 25 November 2019
Saudi Crackdown Extended as Intellectuals Said to Be Detained - Bloomberg
Saudi Crackdown Extended as Intellectuals Said to Be Detained - Bloomberg:
Saudi Arabia arrested at least eight intellectuals last week as it extended a crackdown on political dissent that’s sparked condemnation abroad.
Those detained included Fouad Al-Farhan, a prominent blogger; Abdulmajeed al-Buluwi, a writer and political analyst; and Wa’ad al-Muhaya, a self-taught philosophy enthusiast, two people familiar with the arrests said, asking not to be named.
Many of the men held were once active on social media or websites and supported the Arab Spring revolutions of 2011 -- a wave of uprisings against autocratic regimes that was viewed as a destabilizing threat by the Saudi monarchy. However, they’d largely stopped writing years ago and maintained low profiles, starting small businesses or joining the government.
It’s unclear what charges they face, and the government’s Center for International Communication didn’t immediately respond to a request for comment.
Saudi Arabia arrested at least eight intellectuals last week as it extended a crackdown on political dissent that’s sparked condemnation abroad.
Those detained included Fouad Al-Farhan, a prominent blogger; Abdulmajeed al-Buluwi, a writer and political analyst; and Wa’ad al-Muhaya, a self-taught philosophy enthusiast, two people familiar with the arrests said, asking not to be named.
Many of the men held were once active on social media or websites and supported the Arab Spring revolutions of 2011 -- a wave of uprisings against autocratic regimes that was viewed as a destabilizing threat by the Saudi monarchy. However, they’d largely stopped writing years ago and maintained low profiles, starting small businesses or joining the government.
It’s unclear what charges they face, and the government’s Center for International Communication didn’t immediately respond to a request for comment.
Biggest LNG Producer Targets 64% Jump in Output Capacity by 2027 - Bloomberg
Biggest LNG Producer Targets 64% Jump in Output Capacity by 2027 - Bloomberg:
Qatar, the world’s biggest supplier of liquefied natural gas, plans to boost output capacity by almost two thirds after it adds production facilities to exploit recently discovered reserves.
The Persian Gulf state will expand its LNG capacity to 126 million tons a year by 2027, thanks to gas from a newly explored section of the planet’s largest field, Energy Minister Saad Sherida Al Kaabi said at a news briefing in Doha. Qatar can currently produce 77 million tons of LNG annually and expects to raise capacity to 110 million tons by 2024.
Qatar’s massive North Field extends onshore into the area around the industrial city of Ras Laffan, Al Kaabi said on Monday. “Studies and well tests have also confirmed the ability to produce large quantities of gas from this new sector,” he said.
Qatar, the world’s biggest supplier of liquefied natural gas, plans to boost output capacity by almost two thirds after it adds production facilities to exploit recently discovered reserves.
The Persian Gulf state will expand its LNG capacity to 126 million tons a year by 2027, thanks to gas from a newly explored section of the planet’s largest field, Energy Minister Saad Sherida Al Kaabi said at a news briefing in Doha. Qatar can currently produce 77 million tons of LNG annually and expects to raise capacity to 110 million tons by 2024.
Qatar’s massive North Field extends onshore into the area around the industrial city of Ras Laffan, Al Kaabi said on Monday. “Studies and well tests have also confirmed the ability to produce large quantities of gas from this new sector,” he said.
#Dubai Islamic Bank board approves share swap for Noor Bank acquisition | ZAWYA MENA Edition
Dubai Islamic Bank board approves share swap for Noor Bank acquisition | ZAWYA MENA Edition:
The board of directors of Dubai Islamic Bank (DIB) has proposed the acquisition of Noor Bank through a strategic investment and approved a share swap ratio of 1 new DIB share for every 5.49 shares of Noor Bank through the issuance of 651,159,198 new DIB shares.
DIB’s general assembly will convene on December 17 for considering, and if seen fit, passing resolutions relating to all matters regarding the proposed acquisition, DIB said in a statement.
In case of no quorum, a second meeting is set for December 24.
The proposed strategic investment is by issuing new shares in DIB for an in-kind contribution of 99.999 percent of Noor Bank’s issued share capital held by Noor Investment Group and Emirates Investment Authority, who will subsequently become strategic investors in DIB, the statement said.
The board of directors of Dubai Islamic Bank (DIB) has proposed the acquisition of Noor Bank through a strategic investment and approved a share swap ratio of 1 new DIB share for every 5.49 shares of Noor Bank through the issuance of 651,159,198 new DIB shares.
DIB’s general assembly will convene on December 17 for considering, and if seen fit, passing resolutions relating to all matters regarding the proposed acquisition, DIB said in a statement.
In case of no quorum, a second meeting is set for December 24.
The proposed strategic investment is by issuing new shares in DIB for an in-kind contribution of 99.999 percent of Noor Bank’s issued share capital held by Noor Investment Group and Emirates Investment Authority, who will subsequently become strategic investors in DIB, the statement said.
#Saudi Aramco meets ADIA, #AbuDhabi funds in IPO pitch: sources - Reuters
Saudi Aramco meets ADIA, Abu Dhabi funds in IPO pitch: sources - Reuters:
Saudi Aramco’s executives met officials of Abu Dhabi Investment Authority (ADIA) on Monday to discuss a potential investment in the oil giant’s share sale that could raise as much as $25.6 billion, three sources familiar with the talks said.
Aramco has struggled to attract a major cornerstone or anchor investor for its IPO, which could be potentially the world’s biggest. It has also approached Kuwait Investment Authority (KIA) and Singapore’s GIC.
The meeting between Aramco and ADIA, one of the world’s biggest sovereign wealth funds, was separate to an investor roadshow in Abu Dhabi, the second leg of a Gulf marketing effort by Aramco and its advisors.
A similar roadshow was held in Dubai on Sunday.
Saudi Aramco’s executives met officials of Abu Dhabi Investment Authority (ADIA) on Monday to discuss a potential investment in the oil giant’s share sale that could raise as much as $25.6 billion, three sources familiar with the talks said.
Aramco has struggled to attract a major cornerstone or anchor investor for its IPO, which could be potentially the world’s biggest. It has also approached Kuwait Investment Authority (KIA) and Singapore’s GIC.
The meeting between Aramco and ADIA, one of the world’s biggest sovereign wealth funds, was separate to an investor roadshow in Abu Dhabi, the second leg of a Gulf marketing effort by Aramco and its advisors.
A similar roadshow was held in Dubai on Sunday.
Oil steadies on U.S.-China trade talks optimism - Reuters
Oil steadies on U.S.-China trade talks optimism - Reuters:
Oil prices were little changed on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their trade war.
Brent crude futures LCOc1 were down 6 cents at $63.33 a barrel by 12:50 p.m. (1750 GMT) West Texas Intermediate (WTI) crude CLc1 was up 1 cent at $57.78.
“Oil prices are surprisingly steady on Monday, despite the normal sensitivity to trade headlines,” Craig Erlam, senior market analyst at OANDA said.
“Momentum is clearly lacking in the more recent rallies in crude, although the strong bounce late last week may give bulls some cause for optimism.”
Oil prices were little changed on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their trade war.
Brent crude futures LCOc1 were down 6 cents at $63.33 a barrel by 12:50 p.m. (1750 GMT) West Texas Intermediate (WTI) crude CLc1 was up 1 cent at $57.78.
“Oil prices are surprisingly steady on Monday, despite the normal sensitivity to trade headlines,” Craig Erlam, senior market analyst at OANDA said.
“Momentum is clearly lacking in the more recent rallies in crude, although the strong bounce late last week may give bulls some cause for optimism.”
MIDEAST STOCKS-Global mood lifts most of Gulf; Egypt extends losses - Reuters
MIDEAST STOCKS-Global mood lifts most of Gulf; Egypt extends losses - Reuters:
All major Gulf bourses rose on Monday,
taking a cue from global equity markets as investors turned
optimistic about some progress in U.S.-China trade talks, but
Egypt remained pressured due to sell-off in blue chip stocks.
A Chinese state-backed newspaper reported that Beijing and
Washington were "very close" to an initial trade agreement,
adding to optimism from Friday, when the presidents of both
countries reiterated their desire for a deal.
In Saudi Arabia, the benchmark index edged up 0.2%,
driven by a 2.9% hike in Saudi British Bank and a 0.5%
increase in Al Rajhi Bank.
In the previous session, the index snapped a five-day rally,
which was triggered following a lending boom related to Saudi
Aramco's public listing.
All major Gulf bourses rose on Monday,
taking a cue from global equity markets as investors turned
optimistic about some progress in U.S.-China trade talks, but
Egypt remained pressured due to sell-off in blue chip stocks.
A Chinese state-backed newspaper reported that Beijing and
Washington were "very close" to an initial trade agreement,
adding to optimism from Friday, when the presidents of both
countries reiterated their desire for a deal.
In Saudi Arabia, the benchmark index edged up 0.2%,
driven by a 2.9% hike in Saudi British Bank and a 0.5%
increase in Al Rajhi Bank.
In the previous session, the index snapped a five-day rally,
which was triggered following a lending boom related to Saudi
Aramco's public listing.
Gas ‘Witch’s Brew’ Has U.S. Exporters Facing Worst-Case Scenario - Bloomberg
Gas ‘Witch’s Brew’ Has U.S. Exporters Facing Worst-Case Scenario - Bloomberg:
A global glut of natural gas has gotten so massive that U.S. exporters could soon face their worst-case scenario: Halting shipments to get supply and demand back in balance.
Prices for the heating and power-plant fuel may collapse in Europe and Asia next year to levels that would force U.S. liquefied natural gas suppliers to curb output, Citigroup Inc. said in a note to clients last week. Morgan Stanley sees as much as 2.7 billion cubic feet a day of American exports curtailed around the second or third quarter, assuming normal weather. That’s about half the volume now being sent abroad.
China’s demand for U.S. LNG has plunged amid the trade war, while Europe’s gas storage is almost full and tankers carrying the fuel are taking unusually long journeys in search of better prices. That’s created a “toxic witch’s brew” that’s making it harder to find a home for American exports, according to Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts in New York.
A global glut of natural gas has gotten so massive that U.S. exporters could soon face their worst-case scenario: Halting shipments to get supply and demand back in balance.
Prices for the heating and power-plant fuel may collapse in Europe and Asia next year to levels that would force U.S. liquefied natural gas suppliers to curb output, Citigroup Inc. said in a note to clients last week. Morgan Stanley sees as much as 2.7 billion cubic feet a day of American exports curtailed around the second or third quarter, assuming normal weather. That’s about half the volume now being sent abroad.
China’s demand for U.S. LNG has plunged amid the trade war, while Europe’s gas storage is almost full and tankers carrying the fuel are taking unusually long journeys in search of better prices. That’s created a “toxic witch’s brew” that’s making it harder to find a home for American exports, according to Madeline Jowdy, senior director of global gas and LNG for S&P Global Platts in New York.
#Saudi Aramco IPO: Next Stop #AbuDhabi: Aramco in Regional Push to Sell Shares - Bloomberg
Saudi Aramco IPO: Dubai Investors Are Being Pitched - Bloomberg:
Saudi Aramco will meet investors in Abu Dhabi on Monday to drum up support for its share sale after pitching the offering in Dubai.
Chief Financial Officer Khalid Al-Dabbagh on Sunday briefed potential investors on strategy and dividend plans at the Ritz-Carlton hotel in Dubai’s financial district, according to several participants who attended, but asked not to be identified because the meetings are private.
The event was invitation-only and participants wore name badges to access the ballroom area where the sessions were held. Attendees left with printed copies of Aramco’s more-than-600-page prospectus, but said they hadn’t received any information that wasn’t previously disclosed.
Saudi Aramco will meet investors in Abu Dhabi on Monday to drum up support for its share sale after pitching the offering in Dubai.
Chief Financial Officer Khalid Al-Dabbagh on Sunday briefed potential investors on strategy and dividend plans at the Ritz-Carlton hotel in Dubai’s financial district, according to several participants who attended, but asked not to be identified because the meetings are private.
The event was invitation-only and participants wore name badges to access the ballroom area where the sessions were held. Attendees left with printed copies of Aramco’s more-than-600-page prospectus, but said they hadn’t received any information that wasn’t previously disclosed.
#Dubai Economy Grew 2.1% in 1st Half of 2019: Dubai Media Office - Bloomberg
Dubai Economy Grew 2.1% in 1st Half of 2019: Dubai Media Office - Bloomberg:
Dubai’s economy expanded 2.1% in the first half, driven by growth in transport and storage.
Total gross domestic product reached 208.2 billion dirham ($56.7 billion) during the first six months of this year, at constant prices compared to the same period last year, according to the Emirate’s Media Office citing the Dubai Statistics Center.
Trade hit a real growth rate of 3.3% in light of the increase in foreign trade exchange and the increase of re-exports by 3% to reach 210 billion dirham, Arif al-Muhairi, director of Dubai Statistics Center, said.
Figures released last week showed GDP slowed to 1.9% in 2018, from 3.1% the previous year. A property glut and faltering demand have dragged the Middle East’s commercial hub since real estate prices peaked in 2014.
Dubai’s economy expanded 2.1% in the first half, driven by growth in transport and storage.
Total gross domestic product reached 208.2 billion dirham ($56.7 billion) during the first six months of this year, at constant prices compared to the same period last year, according to the Emirate’s Media Office citing the Dubai Statistics Center.
Trade hit a real growth rate of 3.3% in light of the increase in foreign trade exchange and the increase of re-exports by 3% to reach 210 billion dirham, Arif al-Muhairi, director of Dubai Statistics Center, said.
Figures released last week showed GDP slowed to 1.9% in 2018, from 3.1% the previous year. A property glut and faltering demand have dragged the Middle East’s commercial hub since real estate prices peaked in 2014.
Gulf banks outlook for 2020 stable amid substantial liquidity: Moody's | ZAWYA MENA Edition
Gulf banks outlook for 2020 stable amid substantial liquidity: Moody's | ZAWYA MENA Edition:
The outlook of Gulf Cooperation Council (GCC) banking systems is stable for next year driven mainly by strong capital buffers, solid economic growth and substantial liquidity, according to Moody’s Investors Services.
"Government spending programs will push average non-hydrocarbon GDP growth to 2.6 percent in 2020, providing favourable operating conditions for the region's banks," said Nitish Bhojnagarwala, Vice President - Senior Credit Officer at Moody's.
"Declining interest rates will start to pressure banks' net interest margins but margins will remain strong compared with global peers." he added.
The outlook of Gulf Cooperation Council (GCC) banking systems is stable for next year driven mainly by strong capital buffers, solid economic growth and substantial liquidity, according to Moody’s Investors Services.
"Government spending programs will push average non-hydrocarbon GDP growth to 2.6 percent in 2020, providing favourable operating conditions for the region's banks," said Nitish Bhojnagarwala, Vice President - Senior Credit Officer at Moody's.
"Declining interest rates will start to pressure banks' net interest margins but margins will remain strong compared with global peers." he added.
UPDATE 1- #Qatar LNG production to rise to 126 mln T by 2027- QP CEO - Reuters
UPDATE 1-Qatar LNG production to rise to 126 mln T by 2027- QP CEO - Reuters:
Qatar’s production of liquefied natural gas (LNG) will rise to 126 million tonnes per year by 2027 from 77 million tonnes now, the chief executive of state energy giant Qatar Petroleum said on Monday.
The expansion of tiny but gas-rich Qatar’s LNG facilities, already the world’s largest, is one of the energy sector’s most lucrative projects, and the world’s top oil and gas majors have been racing to secure a stake.
The estimated increase in Qatar’s LNG production comes after exploration work in the expanded North Field mega project showed that confirmed gas reserves of the field exceeded 1,760 trillion cubic feet, Saad al-Kaabi told reporters in Doha.
That would also boost Qatar’s output to 6.7 million barrels of oil equivalent per day (boed) from around 4.8 million boed in the next 8 years, Kaabi said.
Qatar’s production of liquefied natural gas (LNG) will rise to 126 million tonnes per year by 2027 from 77 million tonnes now, the chief executive of state energy giant Qatar Petroleum said on Monday.
The expansion of tiny but gas-rich Qatar’s LNG facilities, already the world’s largest, is one of the energy sector’s most lucrative projects, and the world’s top oil and gas majors have been racing to secure a stake.
The estimated increase in Qatar’s LNG production comes after exploration work in the expanded North Field mega project showed that confirmed gas reserves of the field exceeded 1,760 trillion cubic feet, Saad al-Kaabi told reporters in Doha.
That would also boost Qatar’s output to 6.7 million barrels of oil equivalent per day (boed) from around 4.8 million boed in the next 8 years, Kaabi said.
RPT-COLUMN-Oil traders bet on economic upswing in 2020: Kemp - Reuters
RPT-COLUMN-Oil traders bet on economic upswing in 2020: Kemp - Reuters:
Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.
Most of the divergence can be explained by differing assumptions about global growth in 2020.
The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries are all projecting that the oil market will be in surplus in 2020.
Each of the three agencies is forecasting that non-OPEC oil supplies will increase around 1 million barrels per day (bpd) faster than global oil consumption next year.
Crude oil traders are betting the market will tighten significantly next year, even as the major statistical agencies predict production will outstrip consumption and oil inventories will rise.
Most of the divergence can be explained by differing assumptions about global growth in 2020.
The International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and the Organization of the Petroleum Exporting Countries are all projecting that the oil market will be in surplus in 2020.
Each of the three agencies is forecasting that non-OPEC oil supplies will increase around 1 million barrels per day (bpd) faster than global oil consumption next year.
Oil gains on U.S.-China trade talks optimism - Reuters
Oil gains on U.S.-China trade talks optimism - Reuters:
Oil prices rose on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their bitter trade war.
West Texas Intermediate (WTI) crude CLc1 rose 26 cents, or 0.45% to $58.03 a barrel by 0759 GMT, having ended last week little changed after tracking the trade talks through their ups and downs.
Brent crude futures LCOc1 were at $63.73, up 34 cents or 0.54%, the benchmark having also finished little changed last week.
“It is still all about trade talks,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “It seems to be dominating markets action at the moment.”
Oil prices rose on Monday as positive comments from the United States and China rekindled hopes in global markets that the world’s two largest economies could soon sign an interim deal to end their bitter trade war.
West Texas Intermediate (WTI) crude CLc1 rose 26 cents, or 0.45% to $58.03 a barrel by 0759 GMT, having ended last week little changed after tracking the trade talks through their ups and downs.
Brent crude futures LCOc1 were at $63.73, up 34 cents or 0.54%, the benchmark having also finished little changed last week.
“It is still all about trade talks,” said Michael McCarthy, chief market strategist at CMC Markets in Sydney. “It seems to be dominating markets action at the moment.”
MIDEAST STOCKS- #Saudi slips on banks; most other Gulf markets rise - Reuters
MIDEAST STOCKS-Saudi slips on banks; most other Gulf markets rise - Reuters:
Saudi Arabian stocks fell on Monday, dragged by banks, while other major Gulf markets rose mostly on the back of financials.
In Saudi Arabia, the benchmark index fell 0.3%, with Al Rajhi Bank dropping 1.3% and Alinma Bank shedding 0.6%.
Last week, the index rose for five sessions in a row, supported by banking stocks on a lending boom related to Saudi Aramco’s public listing.
Saudi banks are marketing loans to help locals subscribe Saudi Arabian Oil Co’s (Aramco) initial public offering (IPO), with some offering four times the usual lending limit, Reuters reported citing two financial sources.
Saudi Arabian stocks fell on Monday, dragged by banks, while other major Gulf markets rose mostly on the back of financials.
In Saudi Arabia, the benchmark index fell 0.3%, with Al Rajhi Bank dropping 1.3% and Alinma Bank shedding 0.6%.
Last week, the index rose for five sessions in a row, supported by banking stocks on a lending boom related to Saudi Aramco’s public listing.
Saudi banks are marketing loans to help locals subscribe Saudi Arabian Oil Co’s (Aramco) initial public offering (IPO), with some offering four times the usual lending limit, Reuters reported citing two financial sources.
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