Dubai increases public spending to ward off economic slowdown | Financial Times:
Dubai is to raise public spending to record levels to stimulate its economy and finance its plans to host the Expo 2020 world fair.
The budget for the 2020 fiscal year, signed by ruler Sheikh Mohammed bin Rashid al-Maktoum, plans an expenditure increase of 17 per cent to Dh66.4bn ($18bn), the highest level in Dubai’s history, the government said on Sunday.
“We are keen to provide economic incentives with an impact of attracting more investments, and work to improve the emirate’s competitive position,” said Abdulrahman Al Saleh, director-general of the department of finance.
The budget allocated 46 per cent of total spending to the economy, infrastructure and transport as the emirate pursues an expansionary fiscal policy to maintain its attractiveness as the Gulf’s business centre.
Sunday, 29 December 2019
MIDEAST STOCKS-Financials lead most Gulf bourses higher, but Egypt retreats - Reuters
MIDEAST STOCKS-Financials lead most Gulf bourses higher, but Egypt retreats - Reuters:
Most major Gulf markets rose on Sunday as
financial shares climbed, with Saudi leading the gains, though
Egypt was pressured by a sell-off in blue chip stocks.
Saudi's benchmark index ended up 0.7%, with Al Rajhi
Bank rising 1.2% and Saudi Basic Industries
gaining 0.9%.
State-owned Saudi Aramco inched up 0.1%. On
Tuesday Aramco said Goldman Sachs may make additional purchases
of the oil giant's shares to support the price of the stock. The
so-called stabilisation period will end on Jan. 9.
But Arab National Bank lost 1.3%. Post trading
hours, the lender's board proposed a lower second-half dividend.
Most major Gulf markets rose on Sunday as
financial shares climbed, with Saudi leading the gains, though
Egypt was pressured by a sell-off in blue chip stocks.
Saudi's benchmark index ended up 0.7%, with Al Rajhi
Bank rising 1.2% and Saudi Basic Industries
gaining 0.9%.
State-owned Saudi Aramco inched up 0.1%. On
Tuesday Aramco said Goldman Sachs may make additional purchases
of the oil giant's shares to support the price of the stock. The
so-called stabilisation period will end on Jan. 9.
But Arab National Bank lost 1.3%. Post trading
hours, the lender's board proposed a lower second-half dividend.
Bigger oil looks set to have its day in US shale | Financial Times
Bigger oil looks set to have its day in US shale | Financial Times:
The shale energy revolution was not a feat of Big Oil. Independent exploration and production companies run by little-known executives fracked their way to a stunning rise in US oil and gas output over the past decade.
Big — or at least bigger — oil is set to have its day in US shale, however. Conditions suggest that E&P M&A will loom large in the early 2020s. A fragmented production system will fuse into bigger pieces.
Several factors point to why. The early days of the boom were a manic time of exploring rock and issuing debt and stock. With crude prices above $100 a barrel, capital markets were obliging.
While production soared, investor returns did not. E&P companies as a group failed to cover capital spending out of cash from their operations. Now, with oil prices at $60 a barrel, investors are scarce.
The shale energy revolution was not a feat of Big Oil. Independent exploration and production companies run by little-known executives fracked their way to a stunning rise in US oil and gas output over the past decade.
Big — or at least bigger — oil is set to have its day in US shale, however. Conditions suggest that E&P M&A will loom large in the early 2020s. A fragmented production system will fuse into bigger pieces.
Several factors point to why. The early days of the boom were a manic time of exploring rock and issuing debt and stock. With crude prices above $100 a barrel, capital markets were obliging.
While production soared, investor returns did not. E&P companies as a group failed to cover capital spending out of cash from their operations. Now, with oil prices at $60 a barrel, investors are scarce.
#Dubai 2020 budget sets record spending to boost growth ahead of Expo - Reuters
Dubai 2020 budget sets record spending to boost growth ahead of Expo - Reuters:
Dubai expects to substantially increase state spending next year to stimulate the emirate’s economy and support the Expo 2020 world fair, according to the 2020 budget released on Sunday.
State spending will increase by 17% to a record 66.4 billion dirhams ($18.1 billion), compared with the original budget plan of 56.8 billion dirhams for 2019, state news agency WAM reported.
Budgeted infrastructure spending will drop for a second consecutive year in 2020, this time to 8 billion dirhams, as the emirate nears the start of Expo 2020.
The government has spent heavily in preparation of the six-month-long World’s Fair, which starts in October, although it tapered its investment as associated projects were completed.
Dubai expects to substantially increase state spending next year to stimulate the emirate’s economy and support the Expo 2020 world fair, according to the 2020 budget released on Sunday.
State spending will increase by 17% to a record 66.4 billion dirhams ($18.1 billion), compared with the original budget plan of 56.8 billion dirhams for 2019, state news agency WAM reported.
Budgeted infrastructure spending will drop for a second consecutive year in 2020, this time to 8 billion dirhams, as the emirate nears the start of Expo 2020.
The government has spent heavily in preparation of the six-month-long World’s Fair, which starts in October, although it tapered its investment as associated projects were completed.
#Dubai hotel revenues down by 15% in first 10 months of 2019 - survey - Arabianbusiness
Dubai hotel revenues down by 15% in first 10 months of 2019 - survey - Arabianbusiness:
Dubai's hotel sector reported a 15 percent drop in revenues during the first ten months of the year, despite occupancy levels remaining relatively static.
According to The Middle East Hotel Benchmark Survey by EY MENA, occupancy levels across Dubai stood at 73.5 percent between January and October 2019, down only slightly from an average of 74 percent during the same period last year.
However, average room rates across the period was $217, down from $254 during the same period last year. As a consequence, the average Revenue per Available Room (RevPAR) was down 15 percent to $160.
Dubai's hotel sector reported a 15 percent drop in revenues during the first ten months of the year, despite occupancy levels remaining relatively static.
According to The Middle East Hotel Benchmark Survey by EY MENA, occupancy levels across Dubai stood at 73.5 percent between January and October 2019, down only slightly from an average of 74 percent during the same period last year.
However, average room rates across the period was $217, down from $254 during the same period last year. As a consequence, the average Revenue per Available Room (RevPAR) was down 15 percent to $160.
#Dubai developers "punishing themselves" by pushing more units into the market, says Egyptian billionaire - Arabianbusiness
Dubai developers "punishing themselves" by pushing more units into the market, says Egyptian billionaire - Arabianbusiness:
Egyptian billionaire Naguib Sawiris, who has investments in sectors ranging from development to telecoms and logistics, said developers in Dubai are "punishing themselves" by pushing more units into the market.
Speaking to Arabian Business, the executive chairman and CEO of investment conglomerate Orascom Investment Holding (OIH) said developers in the Gulf city need to "take a breath".
He said: “You can argue the developers are punishing themselves because they’re the ones pushing the real estate. They need to take a breath. [Dubai is] here to stay for hundreds of years. The Emirates is the best country in the whole Middle East in terms of stability, freedom, righteousness, rule of law.
“In democracy maybe no, not really in democratic terms, but people are not complaining there because their life standards have evolved to be magnificent. Life is splendid, everything is available, organised, and clean; traffic is manageable, airports are amazing, their infrastructure and IT and all software they’ve implemented is state of the art. So they should be proud of what they have created.”
Egyptian billionaire Naguib Sawiris, who has investments in sectors ranging from development to telecoms and logistics, said developers in Dubai are "punishing themselves" by pushing more units into the market.
Speaking to Arabian Business, the executive chairman and CEO of investment conglomerate Orascom Investment Holding (OIH) said developers in the Gulf city need to "take a breath".
He said: “You can argue the developers are punishing themselves because they’re the ones pushing the real estate. They need to take a breath. [Dubai is] here to stay for hundreds of years. The Emirates is the best country in the whole Middle East in terms of stability, freedom, righteousness, rule of law.
“In democracy maybe no, not really in democratic terms, but people are not complaining there because their life standards have evolved to be magnificent. Life is splendid, everything is available, organised, and clean; traffic is manageable, airports are amazing, their infrastructure and IT and all software they’ve implemented is state of the art. So they should be proud of what they have created.”
MIDEAST STOCKS- #Saudi stocks gain as most of Gulf markets rise - Agricultural Commodities - Reuters
MIDEAST STOCKS-Saudi stocks gain as most of Gulf markets rise - Agricultural Commodities - Reuters:
Saudi Arabia’s stock market rose early on Sunday, extending gains for a second session on the back of firmer banking and energy shares, while other major Gulf markets were mostly up.
The Saudi index rose 0.7% as Al Rajhi Bank gained 1.4%, while oil-giant Saudi Aramco added a further 0.7% after a 0.4% rise in the previous session.
On Tuesday, Aramco said Goldman Sachs may make additional purchases of the oil giant’s shares to support the price of the stock. The so-called stabilisation period will end on Jan. 9.
Saudi Arabian Amiantit was up 0.7% after it agreed to sell its entire stake in two Egyptian units.
Saudi Arabia’s stock market rose early on Sunday, extending gains for a second session on the back of firmer banking and energy shares, while other major Gulf markets were mostly up.
The Saudi index rose 0.7% as Al Rajhi Bank gained 1.4%, while oil-giant Saudi Aramco added a further 0.7% after a 0.4% rise in the previous session.
On Tuesday, Aramco said Goldman Sachs may make additional purchases of the oil giant’s shares to support the price of the stock. The so-called stabilisation period will end on Jan. 9.
Saudi Arabian Amiantit was up 0.7% after it agreed to sell its entire stake in two Egyptian units.