Saudi unemployment dips to 12% in Q3 - Reuters:
Unemployment among Saudi Arabian citizens fell slightly to 12% in the third quarter of 2019, figures released on Sunday showed.
The rate fell from 12.3% recorded in the second quarter and from a record high of 12.9% in 2018.
Sunday 15 December 2019
#Oman sells $1 billion stake in electricity company to Chinese buyer - Reuters
Oman sells $1 billion stake in electricity company to Chinese buyer - Reuters:
Oman’s state-owned Electricity Holding Company, also known as Nama, has sold a 49% stake in Oman Electricity Transmission Co. to State Grid Corporation of China, raising around $1 billion, Mansoor Al Hinai, a Nama spokesman, said on Sunday.
The deal is one of five privatizations that Nama is planning as Oman seeks to raise cash from asset sales to bolster its coffers, which have been depleted over the past few years by a slump in oil prices.
A deal for Muscat Electricity Distribution Co. is planned for the second quarter of 2020, Hinai said, adding that 14 non-binding bids had been submitted for it.
Oman has smaller energy reserves and lower oil output than most of its wealthy neighbors. It has forecast a 2019 budget deficit of 2.8 billion rials ($7.28 billion), or 9% of gross domestic product.
Oman’s state-owned Electricity Holding Company, also known as Nama, has sold a 49% stake in Oman Electricity Transmission Co. to State Grid Corporation of China, raising around $1 billion, Mansoor Al Hinai, a Nama spokesman, said on Sunday.
The deal is one of five privatizations that Nama is planning as Oman seeks to raise cash from asset sales to bolster its coffers, which have been depleted over the past few years by a slump in oil prices.
A deal for Muscat Electricity Distribution Co. is planned for the second quarter of 2020, Hinai said, adding that 14 non-binding bids had been submitted for it.
Oman has smaller energy reserves and lower oil output than most of its wealthy neighbors. It has forecast a 2019 budget deficit of 2.8 billion rials ($7.28 billion), or 9% of gross domestic product.
Jumeirah Group expansion into cruise ships 'a possibility', says CEO - Arabianbusiness
Jumeirah Group expansion into cruise ships 'a possibility', says CEO - Arabianbusiness:
Dubai’s Jumeirah Group has considered expanding into the cruise ship industry and the move is “a possibility”, the CEO of the luxury hotelier told Arabian Business.
The hotel group currently has 25 projects in its portfolio, including the iconic Burj al Arab, and the expansion into the cruise ship sector would be a natural brand development.
“It's a conversation that comes and goes, but, of course, it could be one day a possibility,” Jose Silva told Arabian Business in an interview.
“We don't have a project today with a cruise [line],” he said, adding that any partnership would have to bring value to both parties.
Dubai’s Jumeirah Group has considered expanding into the cruise ship industry and the move is “a possibility”, the CEO of the luxury hotelier told Arabian Business.
The hotel group currently has 25 projects in its portfolio, including the iconic Burj al Arab, and the expansion into the cruise ship sector would be a natural brand development.
“It's a conversation that comes and goes, but, of course, it could be one day a possibility,” Jose Silva told Arabian Business in an interview.
“We don't have a project today with a cruise [line],” he said, adding that any partnership would have to bring value to both parties.
Talks between #SaudiArabia and #Qatar good for the region: #Iran foreign minister - Reuters
Talks between Saudi Arabia and Qatar good for the region: Iran foreign minister - Reuters:
Talks between Saudi Arabia and Qatar to heal their two-year rift are a good development for the whole Gulf region, Iranian Foreign Minister Mohammad Javad Zarif said on Sunday in Doha.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and trade links with Qatar in June 2017, accusing it of backing terrorism and aligning itself with Iran.
Doha denies their charges and accuses its neighbors of seeking to curtail its sovereignty.
Qatari Prime Minister Sheikh Abdullah bin Nasser Al Thani attended an annual Gulf Cooperation Council (GCC) summit in Saudi Arabia last Tuesday, its highest representation at the meeting since 2017.
Talks between Saudi Arabia and Qatar to heal their two-year rift are a good development for the whole Gulf region, Iranian Foreign Minister Mohammad Javad Zarif said on Sunday in Doha.
Saudi Arabia, the United Arab Emirates, Bahrain and Egypt cut diplomatic and trade links with Qatar in June 2017, accusing it of backing terrorism and aligning itself with Iran.
Doha denies their charges and accuses its neighbors of seeking to curtail its sovereignty.
Qatari Prime Minister Sheikh Abdullah bin Nasser Al Thani attended an annual Gulf Cooperation Council (GCC) summit in Saudi Arabia last Tuesday, its highest representation at the meeting since 2017.
MIDEAST STOCKS-Aramco gains aid #Saudi; other Gulf bourses quiet - Reuters
MIDEAST STOCKS-Aramco gains aid Saudi; other Gulf bourses quiet - Reuters:
Oil giant Aramco helped carry the Saudi
stock market higher on Sunday, as it extended gains for the
third day, while other major Gulf indexes were little changed.
Saudi's benchmark index rebounded 0.6%, with Saudi
Aramco closing up 1.6% at 37.4 riyals.
Aramco will join the Tadawul index and global benchmarks
such as MSCI and FTSE this week, which analysts said should fuel
further demand, particularly from "passive" investors who track
such indexes.
The state-owned oil company listed 1.5% of its shares at 32
riyals ($8.53) on Riyadh's Tadawul exchange on Dec. 11 in the
world's largest initial public offering (IPO).
Initially valued at $1.7 trillion, the shares have since hit
$2 trillion, a value long sought by Saudi Crown Prince Mohammed
bin Salman.
Oil giant Aramco helped carry the Saudi
stock market higher on Sunday, as it extended gains for the
third day, while other major Gulf indexes were little changed.
Saudi's benchmark index rebounded 0.6%, with Saudi
Aramco closing up 1.6% at 37.4 riyals.
Aramco will join the Tadawul index and global benchmarks
such as MSCI and FTSE this week, which analysts said should fuel
further demand, particularly from "passive" investors who track
such indexes.
The state-owned oil company listed 1.5% of its shares at 32
riyals ($8.53) on Riyadh's Tadawul exchange on Dec. 11 in the
world's largest initial public offering (IPO).
Initially valued at $1.7 trillion, the shares have since hit
$2 trillion, a value long sought by Saudi Crown Prince Mohammed
bin Salman.
#Qatar 2022: VW to Develop Self-Driving Electric Shuttles - Bloomberg
Qatar 2022: VW to Develop Self-Driving Electric Shuttles - Bloomberg:
Volkswagen AG will help develop a fleet of self-driving electric shuttles for use in Qatar’s capital Doha in 2022, the company said.
Volkswagen and the Qatar Investment Authority signed an agreement on Saturday for the self-driving Level 4 electric vehicles, they said in a joint statement, without specifying the project’s cost.
Qatar plans to host the soccer World Cup in 2022.
Volkswagen AG will help develop a fleet of self-driving electric shuttles for use in Qatar’s capital Doha in 2022, the company said.
Volkswagen and the Qatar Investment Authority signed an agreement on Saturday for the self-driving Level 4 electric vehicles, they said in a joint statement, without specifying the project’s cost.
Qatar plans to host the soccer World Cup in 2022.
#Qatar’s $320 Billion Wealth Fund Seeks to Catch Up on Technology - Bloomberg
Qatar’s $320 Billion Wealth Fund Seeks to Catch Up on Technology - Bloomberg:
Qatar’s sovereign wealth fund is seeking to increase investments in technology companies, unfazed by recent declines in the sector, its chief executive officer said.
The Qatar Investment Authority “will keep investing in technology as it is the most important sector right now,” Mansoor Al Mahmoud told reporters in Doha Sunday. “We think we are underweight” and are “trying to catch up.”
Middle East sovereign wealth funds have been beefing up their investments in the industry after previously spending billions of dollars on trophy assets, such as London real estate and stakes in global banks. The QIA, which has assets of about $320 billion, hired Bank of America Corp. dealmaker Tristan Lacroix to bolster its push into technology, people familiar with the matter told Bloomberg in September.
Qatar’s sovereign wealth fund is seeking to increase investments in technology companies, unfazed by recent declines in the sector, its chief executive officer said.
The Qatar Investment Authority “will keep investing in technology as it is the most important sector right now,” Mansoor Al Mahmoud told reporters in Doha Sunday. “We think we are underweight” and are “trying to catch up.”
Middle East sovereign wealth funds have been beefing up their investments in the industry after previously spending billions of dollars on trophy assets, such as London real estate and stakes in global banks. The QIA, which has assets of about $320 billion, hired Bank of America Corp. dealmaker Tristan Lacroix to bolster its push into technology, people familiar with the matter told Bloomberg in September.
OPEC Deal Isn't Worth the Paper It's Written On - Bloomberg
OPEC Deal Isn't Worth the Paper It's Written On - Bloomberg:
There was an elephant in the room during the recent OPEC+ meeting: The record-breaking initial public offering of Saudi Arabia’s mammoth oil company Saudi Aramco occurring at exactly the same time.
The coincidence meant that the output cuts agreed by OPEC and its allies were designed as much to bolster the share price of Saudi Arabian Oil Co., as they were to balance the oil market going into 2020. This will greatly complicate matters for Saudi Arabia when it finds itself having to impose discipline on fellow producers looking for ways to adhere to their targets without actually cutting production. The deal is much weaker than it looks.
The headlines out of Vienna took markets by surprise. The group cut their collective output target by a further 500,000 barrels a day for the first quarter of 2020, taking the reduction from 2018 baselines to 1.7 million barrels a day. Saudi Arabia, the kingmaker in all oil matters, said it would reduce its own target by a further 400,000 barrels a day on top of that — as long as all the other participants adhered to their pledges.
There was an elephant in the room during the recent OPEC+ meeting: The record-breaking initial public offering of Saudi Arabia’s mammoth oil company Saudi Aramco occurring at exactly the same time.
The coincidence meant that the output cuts agreed by OPEC and its allies were designed as much to bolster the share price of Saudi Arabian Oil Co., as they were to balance the oil market going into 2020. This will greatly complicate matters for Saudi Arabia when it finds itself having to impose discipline on fellow producers looking for ways to adhere to their targets without actually cutting production. The deal is much weaker than it looks.
The headlines out of Vienna took markets by surprise. The group cut their collective output target by a further 500,000 barrels a day for the first quarter of 2020, taking the reduction from 2018 baselines to 1.7 million barrels a day. Saudi Arabia, the kingmaker in all oil matters, said it would reduce its own target by a further 400,000 barrels a day on top of that — as long as all the other participants adhered to their pledges.
Aramco shares inch up in early Sunday trade - Reuters
Aramco shares inch up in early Sunday trade - Reuters:
Saudi Aramco (2222.SE) shares were up 1% at 37.2 riyals ($9.89) in early trade on Sunday.
The state-owned oil company listed 1.5% of its shares at 32 riyals on Riyadh’s Tadawul exchange .TASI on Dec 11 in the world’s largest initial public offering (IPO).
Initially valued at $1.7 trillion, the shares have since hit $2 trillion, a value long sought by Saudi Crown Prince Mohammed bin Salman.
The IPO is the centerpiece of the Saudi leader’s plans for diversifying the economy away from its dependence on oil.
Saudi Aramco (2222.SE) shares were up 1% at 37.2 riyals ($9.89) in early trade on Sunday.
The state-owned oil company listed 1.5% of its shares at 32 riyals on Riyadh’s Tadawul exchange .TASI on Dec 11 in the world’s largest initial public offering (IPO).
Initially valued at $1.7 trillion, the shares have since hit $2 trillion, a value long sought by Saudi Crown Prince Mohammed bin Salman.
The IPO is the centerpiece of the Saudi leader’s plans for diversifying the economy away from its dependence on oil.
Pressure on UAE banks' profit margins to continue into Q4 | ZAWYA MENA Edition
Pressure on UAE banks' profit margins to continue into Q4 | ZAWYA MENA Edition:
Although the top 10 UAE banks (by assets) reported a combined 25.5 percent year-on-year increase in the top line during the third quarter, a new report has revealed that margins are starting to come under pressure, and the impact is expected to continue in the fourth quarter.
The bottom line was impacted adversely due to significant impairments reported by Emirates NBD (arising from the acquisition of DenizBank) and by ADIB. For rest of 2019, margins are likely to stay under pressure due to the interest rate cuts in September and October 2019, according to a recent report titled “UAE Banking Pulse” by global professional services firm Alvarez & Marsal (A&M).
Overall, banking profitability was influenced by lower gross yields and higher net impairment charges during the quarter, it said.
A&M Managing Director & Head of Financial Services Asad Ahmed, said: “The UAE banking sector maintained a modest growth, even though profitability was impacted by lower gross yields and higher net impairment charges during the quarter, a knock-on effect from the real estate and construction sectors. Looking ahead, we anticipate this pressure will continue as two successive rate cuts by the Fed in September and October 2019, are likely to put further pressure on banks’ margins. We expect that Q4 will not be dissimilar.”
Although the top 10 UAE banks (by assets) reported a combined 25.5 percent year-on-year increase in the top line during the third quarter, a new report has revealed that margins are starting to come under pressure, and the impact is expected to continue in the fourth quarter.
The bottom line was impacted adversely due to significant impairments reported by Emirates NBD (arising from the acquisition of DenizBank) and by ADIB. For rest of 2019, margins are likely to stay under pressure due to the interest rate cuts in September and October 2019, according to a recent report titled “UAE Banking Pulse” by global professional services firm Alvarez & Marsal (A&M).
Overall, banking profitability was influenced by lower gross yields and higher net impairment charges during the quarter, it said.
A&M Managing Director & Head of Financial Services Asad Ahmed, said: “The UAE banking sector maintained a modest growth, even though profitability was impacted by lower gross yields and higher net impairment charges during the quarter, a knock-on effect from the real estate and construction sectors. Looking ahead, we anticipate this pressure will continue as two successive rate cuts by the Fed in September and October 2019, are likely to put further pressure on banks’ margins. We expect that Q4 will not be dissimilar.”
#Qatar open to accepting all currencies for trade - finance minister - Reuters
Qatar open to accepting all currencies for trade - finance minister - Reuters:
Qatar is open to accepting all currencies for trade though the dollar will still dominate, Finance Minister Ali al-Emadi told a conference in Doha on Saturday.
The comment at the Doha Forum came in response to a question about whether Qatar, one of the world largest exporters of liquefied natural gas (LNG), was prepared to accept other currencies in LNG trade.
“We are very much open to all currencies,” al-Emadi said on a joint panel with U.S. Treasury Secretary Steven Mnuchin. The finance ministry clarified the comment was referring to broader trade rather than LNG specifically.
“If you look at Qatar, as I said, most of our economy is dollarized, based on our export of energy,” he said.
Qatar is open to accepting all currencies for trade though the dollar will still dominate, Finance Minister Ali al-Emadi told a conference in Doha on Saturday.
The comment at the Doha Forum came in response to a question about whether Qatar, one of the world largest exporters of liquefied natural gas (LNG), was prepared to accept other currencies in LNG trade.
“We are very much open to all currencies,” al-Emadi said on a joint panel with U.S. Treasury Secretary Steven Mnuchin. The finance ministry clarified the comment was referring to broader trade rather than LNG specifically.
“If you look at Qatar, as I said, most of our economy is dollarized, based on our export of energy,” he said.
MIDEAST STOCKS-Banks lead #Saudi rebound, other major Gulf markets gain - Agricultural Commodities - Reuters
MIDEAST STOCKS-Banks lead Saudi rebound, other major Gulf markets gain - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market rebounded on Sunday, supported by gains in banking stocks, while other major Gulf indexes were also up in early trade.
Saudi’s benchmark index rose 0.9%, with Alinma Bank jumping 5.5% after its board proposed a capital increase through bonus shares.
Saudi Aramco was up 1.5%, on its third day of trading. The oil giant will join the Tadawul index and global benchmarks such as MSCI and FTSE this week, which analysts said should fuel further demand, particularly from “passive” investors who track such indexes.
Aramco raised $25.6 billion on Dec. 5 through its IPO and plans to exercise a 15% greenshoe option in whole or part during the first 30 days of trading. If the option is exercised in full, the total raised from the IPO would amount to $29.4 billion.
Saudi Arabia’s stock market rebounded on Sunday, supported by gains in banking stocks, while other major Gulf indexes were also up in early trade.
Saudi’s benchmark index rose 0.9%, with Alinma Bank jumping 5.5% after its board proposed a capital increase through bonus shares.
Saudi Aramco was up 1.5%, on its third day of trading. The oil giant will join the Tadawul index and global benchmarks such as MSCI and FTSE this week, which analysts said should fuel further demand, particularly from “passive” investors who track such indexes.
Aramco raised $25.6 billion on Dec. 5 through its IPO and plans to exercise a 15% greenshoe option in whole or part during the first 30 days of trading. If the option is exercised in full, the total raised from the IPO would amount to $29.4 billion.
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