Not just games - Riyadh Bureau ht @ahmed

Not just games - Riyadh Bureau:

I was barely six months old when Saudi Arabia’s national football team won the Asian Cup for the first time in 1984 after defeating China in the final that was played in Singapore. Four years later, Saudi Arabia retained the title in Doha as they overcame South Korea in a penalty shootout.

Even though I was too young to remember myself, I have such fond memories of these victories because my late father kept a cassette video tape by famous Kuwaiti commentator Khalid al-Harban who made a documentary film on the Saudi back-to-back continental football glory entitled “Masters of Asia.”

Saudi Arabia announced itself as a major football force, qualifying for the World Cup for the first time in 1994 and winning the Asian Cup for a third time in 1996. That marked the peak of a football generation that remains unmatched as the kingdom’s sports found itself increasingly mired in chaos and corruption in the following years.

Meanwhile, the kingdom’s Gulf neighbours have decided to increase their investment in sports to put themselves on the international map. Knowing they lack the required talent pool to compete due to their small native populations, they instead focused on building infrastructure and hosting international tournaments as Saudi Arabia stagnated.

#Lebanon gives Lazard bankers a brainteaser

Here’s a brainteaser for investment-banking job candidates. How can Lebanon – a country with debt running around 150% of its roughly $60 billion GDP, massive deficits and under $30 billion in foreign reserves – achieve financial stability? Lazard, the country’s newly approved adviser, will earn its fees if it can solve this puzzle.

Lebanon has characteristics that make it especially hard to restructure debt without imperiling local banks or increasing political instability. The issue is coming to a head, too, with a $1.2 billion payment on foreign-currency debt due on March 9.

Restructuring Lebanon’s foreign-currency-denominated debt alone – which foreigners are more apt to hold – wouldn’t be enough. Only about 40% of the country’s nearly $90 billion debt stock is in hard currency. That means even if creditors took a 60% haircut, the debt-to-GDP ratio would still be around 120%, according to Fitch Ratings. That’s unsustainable.

Oil Plummets in Worst Week Since 2008 Amid Coronavirus Panic - Bloomberg

Oil Plummets in Worst Week Since 2008 Amid Coronavirus Panic - Bloomberg:

Oil had it worst week since the financial crisis as panic over the coronavirus pandemic battered global markets.

Futures in New York fell 16% this week, marking the biggest weekly drop since December 2008. The viral outbeak showed no signs of relenting, with the World Health Organization raising global risk to “very high” from “high.” The collapse of financial markets prompted U.S. Federal Reserve Chairman Jerome Powell to assure investors that the central bank is prepared to cut interest rates to mitigate the virus’ threat to economic activity.

“A month ago the concern was only China,” said Pavel Molchanov, energy research analyst at Raymond James & Associates Inc. “This meltdown is a fear of a global pandemic. The risk is we will see the same disruptions we saw in Asia, from travel restrictions to quarantines, materialize all over the world.”

Oil prices have tumbled almost 27% this year on concerns the coronavirus outbreak will dent crude demand. OPEC and its allies have signaled the coalition could reach an agreement to stem the rout before meeting in Vienna next week. Saudi Arabia is reportedly pushing for collective OPEC+ production cuts of an additional 1 million barrels a day, of which it would bear the brunt.

Humbled Saudis May Yet Clinch OPEC+ Deal as Virus Crisis Worsens - Bloomberg

Humbled Saudis May Yet Clinch OPEC+ Deal as Virus Crisis Worsens - Bloomberg:

Saudi Arabia has so far been thwarted by Russia in its push to shore up oil markets against the coronavirus. But when they meet next week, the humbled kingdom may yet clinch victory.

Ever since it became clear the outbreak was savaging energy demand in China -- and oil prices everywhere -- Riyadh has been pushing for swift production cuts to compensate. Russia, the most important partner in the producers’ coalition, rebuffed those entreaties, underscoring the dominant role that President Vladimir Putin has played since forging an alliance with the Saudis three years ago.

“They’re sitting in very different places -- clearly, Putin has an advantage,” said Ed Morse, head of commodities research at Citigroup Inc. “The fact is that Russia has a budget that can be balanced at less than $50 a barrel, and the Saudis don’t.”

That gives Moscow the upper hand when the countries sit down to debate a joint policy on March 5 to 6. But while slumping prices put the kingdom and its energy minister under tremendous pressure, growing signs that the virus imperils the global economy may ultimately work in Riyadh’s favor.

Aramco secures unconditional EU okay for $69 billion SABIC deal - Reuters

Aramco secures unconditional EU okay for $69 billion SABIC deal - Reuters:

World No. 1 oil producer Saudi Aramco has gained unconditional EU antitrust approval for its $69 billion bid for a 70% stake in petrochemicals group Saudi Basic Industries Corp (SABIC), according to an EU filing.

Aramco announced the deal in March last year, a move key to its diversification into refining and petrochemicals.

The European Commission cleared the deal on Thursday, a filing on its site showed. Reuters reported on Feb. 21 that the deal was heading for unconditional EU clearance.

'Big Dog' and the 'omnipotent sheikh' - how #Qatar saved Barclays - Reuters

'Big Dog' and the 'omnipotent sheikh' - how Qatar saved Barclays - Reuters:

When Roger Jenkins was asked to help Barclays avoid a state bailout at the height of the financial crisis in 2008, he was expecting a bonus not a prosecution for his efforts.

More than a decade later, Jenkins and former Barclays colleagues Richard Boath and Tom Kalaris, were unanimously acquitted by a jury on Friday in a case that revealed how the British banking giant secured a 4 billion pound ($5.2 billion) investment from Qatar.

With its survival at risk, Barclays was relying on Jenkins’ persuasiveness and personal relationship with Qatar’s then prime minister Sheikh Hamad bin Jassim bin Jabr al-Thani.

But the tiny emirate, which has punched above its weight for years after the discovery of oil and gas, was playing hardball. Barclays’ response was to pursue a deal which Jenkins conceded during his trial was optically “close to the line”.

Oil prices sink to lowest in over a year, biggest weekly drop since 2016 - Reuters

Oil prices sink to lowest in over a year, biggest weekly drop since 2016 - Reuters:

Oil prices slumped for a sixth day in a row on Friday to their lowest in more than a year, causing futures to drop by the most in a week since 2016, as the spread of coronavirus stoked fears that a slowing global economy would hit energy demand.

The coronavirus spread further, with cases reported for the first time in six countries across three continents, battering markets and leading the World Health Organization (WHO) to raise its impact risk alert to “very high.”

The most active Brent future for May LCOc2 delivery fell $2.06, or 4.0%, to settle at $49.67 a barrel, its lowest since July 2017.

Brent LCOc1 futures for April delivery, meanwhile, lost $1.66, or 3.2%, to settle at $50.52 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 fell $2.33, or 5.0%, to settle at $44.76. That is the lowest closes for both Brent and WTI since December 2018.

For the week, Brent lost almost 14%, its biggest weekly percentage decline since January 2016, while WTI fell over 16% in its biggest weekly p

Ex-Barclays executives cleared over #Qatar fees in blow to UK fraud office - Reuters

Ex-Barclays executives cleared over Qatar fees in blow to UK fraud office - Reuters:

Three former Barclays (BARC.L) executives were acquitted in London on Friday of charges they helped funnel 322 million pounds ($418 million) in secret fees to Qatar in return for rescue financing during the credit crisis.

In a blow to the Serious Fraud Office (SFO), a jury cleared Roger Jenkins, Tom Kalaris, and Richard Boath of fraud.

The men, aged between 61 and 64, all denied any wrongdoing. Qatar, a major investor in Britain and still a significant Barclays shareholder, was neither investigated nor accused of wrongdoing.

The verdict draws a line under an ambitious, seven-and-a-half year investigation that led to the first criminal charges in Britain against senior financiers at a major bank over credit crisis-era conduct.

Virus Concerns Hit Shares in Builder of World’s Tallest Tower - Bloomberg

Virus Concerns Hit Shares in Builder of World’s Tallest Tower - Bloomberg:

Dubai’s Emaar group felt the downside of being a proxy for investments in the local exchange as traders rushed to price in the impact of the coronavirus on the city’s real estate, hospitality and retail industries.

Shares of Emaar Properties PJSC, developer of the 828-meter (2,716-foot) high Burj Khalifa, slumped 10% this week after more than 230 cases of the virus were confirmed throughout the Middle East. Subsidiaries Emaar Malls and Emaar Development lost 4.7% and 8.4%, respectively.

While analysts and investors assess the full effect of the outbreak on business in the region, there are already signs of the potential damage to come. Emirates, the world’s largest long-haul carrier, suspended flights earlier this month to Guangzhou and Shanghai, while continuing those to Beijing. The United Arab Emirates this week halted all flights to Iran, the epicenter of cases in the region.

The upheaval could hardly come at a worse moment for the listed Emaar companies, which combine to represent about a fifth of Dubai’s main equities index. Emaar Properties has been battered along with its developer peers in the past two years by a slump in the local real estate industry amid a slowing economy. The holding company posted a 4.3% drop in revenue for 2019 as it eked out a slight gain in net income.

#UAE News: NMC Health's Shetty Sunk by Muddy Waters Attack - Bloomberg

UAE News: NMC Health's Shetty Sunk by Muddy Waters Attack - Bloomberg:

When discussing his business philosophy, Indian entrepreneur Bavaguthu Raghuram Shetty likes to stress the importance of embracing challenges — even those you fail to overcome. “Without mistakes you can’t learn,” the founder of hospital operator NMC Health Plc said in a YouTube video in January. “If I don’t have one problem in the office, it’s not a good day for me.”

By that measure, Shetty has been having a string of really good days lately. Since U.S. short seller Muddy Waters Capital LLC in December alleged fraud at NMC, the company has lost two-thirds of its value. Yesterday, shares of NMC, the largest private health-care company in the United Arab Emirates, were suspended and the company announced it was under investigation by the U.K. markets regulator.

In the last two weeks, five of 11 board members have either been fired or resigned amid a drip-drip-drip of financial improprieties. Shetty himself was out on Feb. 17 after the company said he may have misreported the size of his stake, calling into question who really holds control. Next month, when the FTSE 100 carries out its quarterly recalibration, NMC is almost certain to be dropped from the benchmark index of the biggest companies listed in London. 

Brent Crude Drops Below $50 as Coronavirus Spreads Around World - Bloomberg

Brent Crude Drops Below $50 as Coronavirus Spreads Around World - Bloomberg:

Oil slipped below $50 a barrel in London as the fast-spreading coronavirus roiled global markets, intensifying speculation that OPEC and its allies will strike a deal to support prices.

Brent crude for May delivery, the most actively traded contract, lost almost 4% as fears over the outbreak sent shares around the world slumping. The market’s price structure has weakened dramatically, tumbling into a contango, while the profits from making products like diesel have also collapsed. Amid the slump, there are signs that OPEC and its allies could be nearing agreement on action to stem the rout before meeting in Vienna next week.

The group’s top official said the cartel and its allies are displaying a “renewed commitment” to reach an accord as the virus puts the world economy on course for its worst performance since 2009. Saudi Arabia has been pushing for deeper production cuts over the last few weeks, but Russia has so far taken a more cautious stance. One silver lining for markets is that prices are now at a level that may be uneconomic for U.S. shale producers.

#Saudi reserves up 2.4% in January – SAMA | ZAWYA MENA Edition

Saudi reserves up 2.4% in January – SAMA | ZAWYA MENA Edition:

The Saudi Arabian Monetary Authority (SAMA) reported an increase in assets by 2.54% during January 2020, compared with the same months of last year to SAR 1.91 trillion.

On a monthly basis, assets marginally increased compared to its level in December 2019 at SAR 1.9 trillion.

Meanwhile, Saudi Arabia’s foreign reserves grew by 2.4% last month by SAR 44.55 billion ($11.88 billion) to SAR 1.88 trillion, compared with SAR 1.84 trillion in the same period in the year before.

Reserves also increased by SAR 8.47 billion compared with its level in December at SAR 1.87 trillion.

Meanwhile, general reserves rose by 0.25% month-on-month (MoM) to SAR 470.8 billion, while the government’s current account surged by 45% MoM to SAR 86.66 billion

#AbuDhabi in talks with banks for debut loan of $2 billion - sources - Reuters

Abu Dhabi in talks with banks for debut loan of $2 billion - sources - Reuters:

The government of Abu Dhabi is in talks with banks for a $2 billion loan, two sources familiar with the discussions said, a move which would allow the oil-rich emirate to tap new liquidity pools in an era of low oil prices.

Abu Dhabi, the capital of the United Arab Emirates, sold its latest international bonds in September last year, raising $10 billion for budgetary purposes and garnering almost $20 billion in demand.

It is now working on a “self-arranged loan”, putting together commitments from banks for a potential $2 billion debt facility which, if finalised, would be the government’s first, the two sources familiar with the discussions said.

The Abu Dhabi Department of Finance declined to comment, a spokesman said.

Oil prices on track for biggest weekly fall in four years - Reuters

Oil prices on track for biggest weekly fall in four years - Reuters:

Oil prices slumped to their lowest in more than a year on Friday and were set for their steepest weekly fall in more than four years as the spread of the coronavirus stokes fears of slowing global demand.

Investors are increasingly worried as the virus has spread beyond its epicentre in China to more than 40 other countries.

The most active Brent crude contract for May LCOc2 was down $1.42, or 2.8%, at $50.31 a barrel by 0745 GMT, a 14-month low. The front-month April contract expires later on Friday.

West Texas Intermediate (WTI) crude futures CLc1 fell $1.39, or about 3%, to $45.70 per barrel. U.S. crude has fallen about 14% for the week, the biggest weekly decline since May 2011.

New infections of the coronavirus reported around the world were now surpassing those in mainland China, where more than 2,700 people have died. A further 57 deaths have been recorded in other countries.

Muddy Waters Scores Big Win for Short-Sellers Over NMC Health - Bloomberg

Muddy Waters Scores Big Win for Short-Sellers Over NMC Health - Bloomberg:

In 2018 NMC Health Plc commissioned an external review of its board’s effectiveness. The idea of this box-ticking exercise was to assure investors that the directors of the United Arab Emirates hospital operator were working “in the interests of all key stakeholders.”

The unsurprising conclusion was that the board was “operating effectively and healthily,” NMC’s last annual report revealed. That finding clearly wasn’t worth the paper it was written on.

On Wednesday evening the FTSE-100 company ousted its chief executive officer and revealed that its chief financial officer was on sick leave. An inquiry into a laundry list of allegations published by short-seller Muddy Waters Capital LLC in December has revealed potential discrepancies in the company’s bank statements and accounting ledger entries.

Furthermore, NMC has been acting as guarantor for $335 million of supply-chain financing used by other entities owned by the company’s founder, Bavaguthu Raghuram Shetty, without the board being aware of it (the arrangements weren’t disclosed in the accounts either).

Oil prices dive to lowest in over a year on coronavirus fears - Reuters

Oil prices dive to lowest in over a year on coronavirus fears - Reuters:

Oil prices tumbled for a fifth day on Thursday to their lowest level in more than a year, as new reports of novel coronavirus cases outside China spurred investor fears that the rapidly spreading outbreak could slow the global economy.

Brent crude LCOc1 dropped $1.25, or 2.3%, to settle at $52.18 a barrel, off the session low of $50.97 a barrel, which was the lowest since December 2018. West Texas Intermediate (WTI) futures CLc1 sank $1.64, or 3.4%, to $47.09, after hitting their lowest level since January 2019.

Earlier this week, for the first time since the outbreak erupted, the number of new coronavirus infections reported outside China exceeded new Chinese cases.

Other risk markets also slumped on Thursday. The S&P 500 suffered its biggest one-day point loss since August 2011 and the Dow Jones Industrial Average marked its biggest-ever one-day point drop, as investors fled to the safety of assets like Treasury bonds and gold. The slump in global equities has wiped out more than $3 trillion in value this week.

OPEC Chief Says Group Is Making Renewed Push for Oil Deal - Bloomberg

OPEC Chief Says Group Is Making Renewed Push for Oil Deal - Bloomberg:

OPEC and its allies are displaying a “renewed commitment” to reach an accord that will stabilize oil markets hit hard by the coronavirus, the group’s top official said.

All eyes will be on the group’s meeting next week after crude prices slumped to a one-year low below $46 a barrel in New York. The disease has slashed fuel demand in China and threatens global economic growth, but the 23-nation coalition has so far appeared divided over its response, with Saudi Arabia pressing for production cuts and Russia taking a more cautious stance.

“There is a renewed commitment” in the alliance “to build the consensus for a joint action in mitigating the current hyper volatility in the market,” Secretary-General Mohammad Barkindo said in an interview from Saudi Arabia, where he has interrupted a religious pilgrimage in Mecca to help co-ordinate the Organization of Petroleum Exporting Countries’ upcoming meeting.

The group intends to proceed with talks scheduled for March 5-6, and has distributed health guidelines to staff at its Vienna secretariat as well as national delegations with advice on preventing infections.

#Saudi Aramco Open to Share Sales Abroad to Fuel Economic Plans - Bloomberg

Saudi Aramco Open to Share Sales Abroad to Fuel Economic Plans - Bloomberg:

Saudi Arabia is planning to sell more stakes in state-owned oil producer Saudi Aramco as it looks to raise money to fuel an economic diversification plan, chairman Yasir Al-Rumayyan said.

The kingdom, which raised nearly $30 billion last year from Saudi Aramco’s initial public offering in Riyadh, is planning to sell more of its stake in the world’s biggest oil producer, Al-Rumayyan said in an interview with Carlyle Group Inc. co-founder David Rubenstein. Potential future share sales could be held outside Saudi Arabia, he said.

Any international offering of Aramco shares would face significant hurdles. Last year’s IPO in Riyadh was already widely marketed to the world’s largest investors, many of whom passed on the deal because other oil stocks offered better returns. Investors may also question Aramco’s current valuation at a time when crude prices are slumping.

“If we have any good stock exchange that we think can bring some valuable investors to us, we will definitely consider it,” said Al-Rumayyan, who is also governor of the Saudi sovereign wealth fund.

Oil prices dive to lowest in over a year as virus fears grow - Reuters

Oil prices dive to lowest in over a year as virus fears grow - Reuters:

Oil prices fell for a fifth straight day on Thursday, plunging to their lowest levels since January 2019 as more new coronavirus cases outside China fanned fears that a pandemic could slow the global economy.

Brent crude LCOc1 was down $1.81, or 3.4%, at $51.61 a barrel at 11:51 a.m. ET (1651 GMT), off the session low of $50.97 a barrel, the lowest since December 2018. West Texas Intermediate (WTI) futures CLc1 fell by $2.06, or 4.2%, to $46.66, after hitting their lowest since January 2019.

For the first time since the outbreak erupted, the number of new coronavirus infections outside China exceeded new Chinese cases. Trading in oil markets suggested investors expect a prolonged period of oversupply, with demand hit as the virus spreads to large economies including South Korea, Japan and Italy.

“Oil is in freefall as the magnitude of global quarantine efforts will provide severe demand destruction for the next couple of quarters,” said Edward Moya, senior market analyst at OANDA in New York.

MIDEAST STOCKS-Middle Eastern stocks retreat as coronavirus fears sharpen | Nasdaq

MIDEAST STOCKS-Middle Eastern stocks retreat as coronavirus fears sharpen | Nasdaq:

Stock markets in the Middle East ended lower on Thursday, with Egypt shares falling the most, as a jump in coronavirus cases outside China triggered fears of a pandemic.

The rapid spread of the virus in Iran, Italy, South Korea and elsewhere left alarmed governments and people across the globe rushing on Thursday to implement emergency measures.

For the first time, new infections around the world in the past 24 hours surpassed those in mainland China, where the flu-like disease emerged two months ago but is on the decline after an aggressive containment campaign.

Egypt's blue-chip index .EGX30 slid 1.5%, pressured by a 1.7% fall in Commercial International Bank COMI.CA and a 9.1% plunge in GB Auto AUTO.CA.

#Oman reveals plan to build Muscat Airport City in major aviation push - Arabianbusiness

Oman reveals plan to build Muscat Airport City in major aviation push - Arabianbusiness:

Plans have been unveiled to launch Muscat Airport City which will include a free zone, logistics hub and retail zone as part of Oman's new National Aviation Strategy 2030.

The Oman Aviation Group is adopting a master plan to launch the project which will be made up of five main areas including the Muscat Airport Free Zone spread across 3.3 million square metres and devoted to light industries and storage activities for air freight, e-commerce, manufacturing and packaging of national products, in addition to aviation equipment, office spaces, and an integrated service delivery station.
   

The project will also feature a 200,000 sq m logistics area for air freight services, a mixed-use project designated for the offices of airlines and related economic sectors and a zone to host aviation, cultural and social activities, innovation centres for the aviation sector and a specialised emergency hospital.

COLUMN-China coronavirus roils oil markets, but China may ultimately rescue crude: Russell - Reuters

COLUMN-China coronavirus roils oil markets, but China may ultimately rescue crude: Russell - Reuters:

The spread across the world of the Chinese coronavirus has probably wiped out global crude oil demand growth for 2020, but in something of an irony it’s likely to be China that will be responsible if any increase is eked out.


There is little doubt that the coronavirus, which started in the city of Wuhan and has killed more than 2,700 people so far, will hit Chinese crude consumption this month, and likely into March and April.

But it also seems to be the case that Beijing may finally be getting a handle on containing the virus, just as it ramps up in other countries, most notably South Korea, Japan, Iran and Italy.

This makes it likely that Chinese refiners will be keen to resume operations that have been curtailed because of the virus, but this could be delayed until April.

NMC’s Woes Deepen as Investigation Finds Financial Discrepancies - Bloomberg

NMC’s Woes Deepen as Investigation Finds Financial Discrepancies - Bloomberg:

NMC Health Plc fired its chief executive officer as it revealed financial discrepancies that have worsened the crisis for the Middle Eastern hospital chain targeted by short seller Muddy Waters Capital LLC.

Founder Bavaguthu Raghuram Shetty and former Vice Chairman Khaleefa Bin Butti controlled entities used for NMC’s supply chain financing, the company said late Wednesday. The board was unaware of these financial arrangements, which had been in place since early 2018, NMC said. Shetty was forced off the board earlier this month amid concerns he’d misrepresented his shareholdings.

Operator of the largest medical network in the United Arab Emirates, NMC announced a management overhaul along with the latest revelations. CEO Prasanth Manghat was dismissed, and Chief Financial Officer Prashanth Shenoy has been granted extended sick leave. An unnamed member of the treasury team was suspended because of “a belief that the independent review has been obstructed,” and the company is looking at whether others are involved.

#Russia satisfied with #Saudi cooperation within OPEC and non-OPEC frameworks -Novak | ZAWYA MENA Edition

Russia satisfied with Saudi cooperation within OPEC and non-OPEC frameworks -Novak | ZAWYA MENA Edition:

Russia is "very satisfied" with its cooperation with Saudi Arabia and wants to continue it within OPEC and non-OPEC frameworks, as well as bilaterally, Russian Energy Minister Alexander Novak said on Thursday.

"We are very satisfied with the cooperation with our partners, Saudi Arabia, and naturally we want to continue to cooperate not only in the framework of multilateral relations - OPEC, but also bilaterally - we have a lot of joint projects," he said. 


Novak added that Russia was sticking to its earlier forecast of a potential hit to global demand from the coronavirus outbreak in China and beyond, adding that estimates may change given that the flu-like virus is spreading in Europe.

Profitability at the #UAE's four largest banks to remain resilient in 2020 - The National

Profitability at the UAE's four largest banks to remain resilient in 2020 - The National:

Profitability at the UAE's four largest banks is set to remain resilient in 2020, as solid public-sector loan growth balances the effects of competition and subdued private-sector credit demand, a new report from Moody’s Investors Service found.

The four lenders – First Abu Dhabi Bank (FAB), Emirates NBD, Abu Dhabi Commercial Bank (ADCB) and Dubai Islamic Bank (DIB) – reported a combined net profit of Dh37 billion for 2019, up 13 per cent from the previous year on the back of growth from organic lending, acquisitions and strong non-interest income. A large one-off gain of $1.2bn (Dh4.40bn) at Emirates NBD from the partial disposal of a stake in payments company Network International in April last year, was also a factor.

The four banks accounted for 73 per cent of banking assets in the UAE as of December 2019.

"We expect the banks' profitability to remain resilient in 2020, with a net income to tangible assets ratio at around 1.8 per cent," said Mik Kabeya, assistant vice president and analyst at Moody's.

Airports in #UAE, rest of Middle East to see 'severe drop' in passengers on coronavirus fears | ZAWYA MENA Edition

Airports in UAE, rest of Middle East to see 'severe drop' in passengers on coronavirus fears | ZAWYA MENA Edition:

Passenger traffic across airports in the UAE and the rest of the Middle East will be “severely” impacted in the first part of 2020 by the increasing number of flight cancellations and travel restrictions amid the coronavirus outbreak, according to the latest analysis.

The Airports Council International (ACI) said on Thursday that aviation hubs in the region, as well as those in the Asia Pacific, are currently “facing tremendous pressure” as air connectivity has been reduced.

“A severe drop in passenger traffic is expected as many countries have imposed travel bans and direct flight cancellations in response to the outbreak,” ACI said.

Carriers in the UAE have ceased flights to and from China, as well as Iran and Bahrain over the virus scare. So far, the country has confirmed 13 cases, while the neighbouring countries of Iran and Bahrain are seeing a spike in infections.

NMC Health shares suspended on LSE - Reuters

NMC Health shares suspended on LSE - Reuters:

NMC Health said on Thursday trading in its shares on the London bourse has been suspended, a day after the UAE healthcare firm removed its top boss and granted its finance chief an extended sick leave as details of an investigation into the company emerged. Abu-Dhabi based NMC’s shares have lost about two thirds of their value since U.S.-based short-seller Muddy Waters late last year questioned its financial statements.

“The company is focused on providing additional clarity to the market as to its financial position and to restoring its admission to trading,” NMC said on Thursday.

#UAE News: Arab Royal Feud Exposed in London Amid Claims of Spying - Bloomberg

UAE News: Arab Royal Feud Exposed in London Amid Claims of Spying - Bloomberg:

What began as a legal dispute over a hotel has unfolded in a London courtroom in recent weeks into an extraordinary tale of royal intrigue, one that includes allegations of global undercover spying operation, hacked emails and a covert public relations campaign.

The investment authority of Ras Al Khaimah, one of the seven emirates that make up the United Arab Emirates, sued an Iranian-American aviation executive named Farhad Azima in 2016 for breach of contract in relation to the sale of a hotel in Tbilisi, Georgia.

Azima counter-sued, alleging that authorities in Ras Al Khaimah hired contractors who hacked his emails.

The trial wrapped up Feb. 14, and a judge in London’s High Court is currently mulling a decision, which is expected in March. If the judge finds in Azima’s favor, he would be the first person to successfully sue a foreign government for hacking, according to Kirby Behre, a former federal prosecutor and an attorney with Miller & Chevalier, which represents Azima.

#Saudi IPO Nets $2.3 Billion for Dr. Sulaiman Al Habib - Bloomberg

Saudi IPO Nets $2.3 Billion for Dr. Sulaiman Al Habib - Bloomberg:

A Saudi pediatrician has become one of the world’s wealthiest doctors after the medical-services group he founded priced its initial public offering at the top of a marketed range.

Sulaiman Abdulaziz Al-Habib’s 49% stake in his eponymous company is worth 8.5 billion riyals ($2.3 billion), according to the Bloomberg Billionaires Index, based on the announced selling price of 50 riyals a share. He plans to sell 17.4 million shares in the IPO, according to the prospectus. The company didn’t respond to a request for comment.

Dr. Sulaiman Al Habib Medical Group is one of the biggest providers of health care in Saudi Arabia, operating hospitals, outpatient clinics, pharmacies and medical labs throughout the kingdom as well as in Dubai and Bahrain. The IPO is the first in Saudi Arabia since state-owned oil company Saudi Aramco raised almost $30 billion in December.

 The firm is seeking to capitalize on the government’s plans to ramp up private-sector participation in health care and the country’s demographic trends. Saudi Arabia’s population is disproportionately young and relatively unhealthy. More than a third of adults are obese and 18.5% suffer from diabetes, according to World Health Organization statistics.

#SaudiArabia Halts Mecca Pilgrimages to Block Coronavirus - Bloomberg

Saudi Arabia Halts Mecca Pilgrimages to Block Coronavirus - Bloomberg:

Saudi Arabia temporarily halted religious visits that include stops in Mecca and Medina, which draw millions of people a year as the Islamic world’s holiest cities, to help prevent the spread of coronavirus into the country.

Tourism visa-holders from countries with reported coronavirus infections will also be denied entry, the Saudi embassy in Washington said in an emailed statement, without naming any countries. The steps are temporary and subject to continuous evaluation, according to the statement.

The government is acting to block the deadly virus as neighboring countries including Kuwait, Bahrain, Iraq and the United Arab Emirates have flagged dozens of cases. No infections had been reported by Saudi Arabian authorities as of Wednesday.

The kingdom is also suspending entry by citizens from Gulf States traveling under their national IDs, as well as travel by Saudis to the Gulf States. Saudis abroad who want to return or Gulf citizens in Saudi Arabia who wish to leave may do so, according to the statement.

Oil falls for fifth day on demand concerns as coronavirus spreads - Reuters

Oil falls for fifth day on demand concerns as coronavirus spreads - Reuters:

Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic which could slow the global economy and lower crude demand.

Brent crude LCOc1 was down 60 cents, or 1.1%, at $52.83 a barrel at 0741 GMT. The contract earlier fell to as low as $52.53, the lowest since Jan. 2, 2019.

West Texas Intermediate (WTI) futures CLc1 fell by 55 cents, or 1.1%, to $48.18 a barrel. It earlier fell to as low as $47.82, the lowest since Jan. 4, 2019.

In the five trading sessions through Thursday, Brent has dropped 10.6%, while WTI has declined 10.4%, their biggest five-day percentage losses since August 2019.

UPDATE 1- #Lebanon to ask for 7-day grace period for March 9 bond-source - Reuters

UPDATE 1-Lebanon to ask for 7-day grace period for March 9 bond-source - Reuters:

Lebanon intends to ask for a seven-day grace period for a $1.2 billion Eurobond that matures on March 9, as it is entitled to, in order to give financial advisers more time to draft a restructuring plan, a government source said on Thursday.

Lebanon would seek the seven-day grace period ahead of the March 9 date, the source said. 

The Lebanese government this week appointed U.S. investment bank Lazard and law firm Cleary Gottlieb Steen & Hamilton LLP as its financial and legal advisers on the widely expected debt restructuring.

Lebanon’s long-brewing economic crisis came to a head last year as capital inflows slowed and protests erupted against the ruling elite over corruption and bad governance - root causes of the crisis.

MIDEAST STOCKS-Most Gulf stocks slide as coronavirus pandemic fears grow | Nasdaq

MIDEAST STOCKS-Most Gulf stocks slide as coronavirus pandemic fears grow | Nasdaq:

Most bourses in the Gulf fell further on Thursday as a rise in new coronavirus cases outside of China heightened fears of a pandemic.

Governments ramped up measures to battle a global pandemic of the coronavirus as the number of infections outside China, the source of the outbreak, for the first time surpassed those appearing inside the country.

The Dubai's index .DFMGI lost 1.1%, extending losses for a fifth consecutive day. Emaar Properties EMAR.DU fell 1.7% and Dubai Islamic Bank DISB.DU opened 1.3% down.

Air Arabia AIRA.DU, the United Arab Emirates' only listed airline, dropped a further 2.1%. On Tuesday, the UAE suspended all flights to and from Iran for at least a week due to the spread of the coronavirus in the Islamic republic.

Saudi Arabia's benchmark index .TASI retreated 0.9%. Al Rajhi Bank 1120.SE decreased 0.9% and hotel operator and developer Jabal Omar Development 4250.SE declined 3.6%.

Oil prices drop to lowest in more than a year as coronavirus spreads - Reuters

Oil prices drop to lowest in more than a year as coronavirus spreads - Reuters:

Oil prices fell to their lowest in more than a year on Wednesday after hundreds of new coronavirus cases reported in Europe and the Middle East stoked fears that energy demand would decline, and on concerns that the virus could spread across the United States.

Brent crude settled at $53.43 a barrel, shedding $1.52, or 2.77%, while U.S. West Texas Intermediate (WTI) crude settled at $48.73 a barrel, down $1.17, or 2.34%. Earlier in the session, both benchmarks hit their lowest since January 2019, with Brent sinking to $53.03 a barrel and WTI dipping to $48.30.

Oil followed equities lower after reports that 83 people were being monitored in New York for possible coronavirus exposure.

“Every time a headline comes out, especially one regarding new cases in the U.S. such as New York, that comes in and forces additional selling and pushes normal fundamental input to the sidelines,” said Jim Ritterbusch, president of Ritterbusch and Associates.

Troubled Hospital Operator NMC Dismisses CEO Amid Probe - Bloomberg

Troubled Hospital Operator NMC Dismisses CEO Amid Probe - Bloomberg:

NMC Health Plc, the Middle Eastern hospital operator targeted by short seller Muddy Waters Capital LLC, dismissed its chief executive officer and said advisers identified potential discrepancies in its bank statements.

CEO Prasanth Manghat will be succeeded on an interim basis by Michael Davis, currently chief operating officer, with immediate effect, the company said in a statement late Wednesday. Chief Financial Officer Prashanth Shenoy has been granted extended sick leave.

Operator of the largest medical network in the United Arab Emirates, NMC had commissioned a review of potential financial discrepancies. It said Wednesday that it has suspended a member of the treasury team because of “a belief that the independent review has been obstructed,” and is looking at whether others are involved.

NMC said it’s still verifying the drawdown of some supply-chain financing arrangements that amounted to about $335 million at the end of 2019. These arrangements were not disclosed to, or approved by, the board, it said.

Aramco Is Said to Start Early Preparations for Overseas Listing - Bloomberg

Aramco Is Said to Start Early Preparations for Overseas Listing - Bloomberg:

Saudi Aramco is starting early preparations for an international listing, just months after the oil giant turned its record initial public offering into a domestic affair and sidelined global banks, people with knowledge of the matter said.

The world’s largest publicly traded company is in discussions with Wall Street banks to draw up scenarios for a second listing overseas, according to the people, who asked not to be identified because the information is private. Aramco wants to be ready to move ahead if Saudi Arabia’s de-facto ruler, Crown Prince Mohammed bin Salman, gives the go-ahead to proceed with the plans, the people said.

Aramco hasn’t set a timetable for the potential deal, the people said. An overseas listing is currently seen as unlikely to take place this year given market conditions and a weak outlook for commodity prices, according to the people.

Global equity indexes have slumped this week from their record highs, erasing this year’s gains amid concerns that the coronavirus epidemic is spreading outside of China and hurting corporate earnings. Shares of Aramco are down about 5% this year, giving the company a market value of $1.78 trillion.

Oil falls more than 1% as virus spreads in Middle East and Europe - Reuters

Oil falls more than 1% as virus spreads in Middle East and Europe - Reuters:

Oil prices fell more than 1% on Wednesday after hundreds of new coronavirus cases reported in Asia, Europe and the Middle East stoked fears that energy demand would decline, while crude oil inventories in the United States grew.

Brent crude was down 94 cents, or 1.7%, to $54.01 a barrel by 12:09 p.m. EST (1709 GMT), while U.S. West Texas Intermediate (WTI) crude shed 53 cents, or 1.1%, $49.37 a barrel.

“It’s still all about the virus here,” said Bob Yawger, director of energy futures at Mizuho in New York. “It’s hard to come up with any type of scenario where demand increases over the next couple months.”

Prices briefly turned positive after the U.S. government reported a drop in gasoline inventories last week. Crude stocks grew by 452,000 barrels to 443.3 million barrels, the Energy Information Administration said, which was less than the 2-million-barrel rise analysts had expected.

Why #Iran’s coronavirus outbreak is dangerous for the Middle East | Financial Times

Why Iran’s coronavirus outbreak is dangerous for the Middle East | Financial Times:

Iran has recorded the highest number of coronavirus deaths outside of China and is struggling to contain the disease. This is raising fears that the outbreak will spread into neighbouring countries where fragile health systems and weak government control would make fighting the deadly illness even more difficult.


How many cases are there?

At least 139 people in Iran have tested positive for coronavirus so far, including the country’s deputy health minister who was filmed sweating heavily and repeatedly wiping his face at a coronavirus press conference on Monday. Of those cases, 19 people have died in the past week, according to official figures.

The first cases were traced to the holy city of Qom, 140km south of Tehran and home to 1.2m people. Qom receives business travellers and Islamic pilgrims from all over the globe and has the highest number of Shia Muslim clerical students in the world. A few hundred of those students are believed to be Chinese nationals. But Iranian authorities are yet to identify the patient that first brought the virus to Iran.

New Gulf gas finds serve strategic purpose | Analysis – Gulf News

New Gulf gas finds serve strategic purpose | Analysis – Gulf News:

Over the past year, huge gas discoveries were made in Bahrain, the UAE and Saudi Arabia. In April last year, Bahrain announced discoveries estimated at 80 billion barrels of oil and 20 trillion cubic feet of gas, while this month, the UAE announced a new gas field with reserves estimated at 80 trillion cubic feet.

And just last week, Saudi Arabia came up with the Jafurah field, with reserves estimated at 200 trillion cubic feet. These discoveries will not only lead to significant economic outcomes, but will result in strategic repercussions on the global energy industry. It will also affect the nature of relations among countries of the region, especially if the three Gulf states coordinate with each another, as their projected scale of the finds add up to 300 trillion Cubic feet.

This will be added to 400 trillion cubic feet previously discovered in Saudi Arabia, the UAE and Bahrain, which means their collective reserves are in the order of 700 trillion.

Trump’s Mideast Envoy Joins Israeli Fund to Build Regional Ties - Bloomberg

Trump’s Mideast Envoy Joins Israeli Fund to Build Regional Ties - Bloomberg:

Former U.S. Middle East peace envoy Jason Greenblatt is joining OurCrowd, an Israeli crowdfunding and venture investment company, to build business ties with Arab countries -- including ones that don’t have official relations with Israel.

After spending nearly three years helping to develop President Donald Trump’s Israeli-Palestinian peace plan, Greenblatt stepped down from his White House position three months before its January release. His new job will leverage ties made in that position.

“We have relationships with Israel and its Arab neighbors that have been developing over the last several years and are becoming more and more public,” Greenblatt said in an interview. “From the conversations I’ve had, people are ready.”

Two countries he sees as a focus are the United Arab Emirates and Saudi Arabia. Israel doesn’t have formal diplomatic ties with them, but its relations with Gulf Arab States have improved in recent years over a shared interest in combating Iran’s regional influence.

Iranian rial plunges as coronavirus threatens export lifeline - Reuters

Iranian rial plunges as coronavirus threatens export lifeline - Reuters:

Iran’s rial hit a one-year low against the dollar on Wednesday as a sharp rise in coronavirus cases forced the closure of most of its borders, threatening the non-oil exports that are its main economic lifeline.

The dollar was being offered at as much as 158,500 rials on Wednesday, well below its official rate of 42,000 rials and 10% lower than a week earlier, according to foreign exchange website Bonbast.com, which tracks the free market.

Iran’s coronavirus death toll rose to 19, the highest outside China, pushing several countries to suspend flights and most of its neighbours to close their borders.

Mounting U.S. sanctions pressure has already shackled Iran’s oil industry and slashed its crude exports.

DIFC Courts cases surge 45%; more than $844mln commercial claims | ZAWYA MENA Edition

DIFC Courts cases surge 45%; more than $844mln commercial claims | ZAWYA MENA Edition:

More and more businesses are resorting to the Dubai International Financial Centre (DIFC) Courts to settle conflicts, with the nearly 1,000 disputes filed last year and the value of commercial claims cases reaching more than 3.1 billion UAE dirhams ($844 million), new statistics revealed.

The total volume of complaints lodged across different divisions at the common law court went up by 43 percent in 2019 to 952.

The cases filed involved companies in the banking and finance sector, construction, real estate and manufacturing, as well as arbitration-related disputes, according to a report released on Wednesday by the DIFC Courts.

The judiciary, which started operations in 2006, deals with civil and commercial disputes occurring within the DIFC. It deals with different types of cases, ranging from sophisticated, international financial transactions to debt collection and labour disputes, and has the power to issue orders, which may be made concerning compensation and damages, among others.

#UAE and Mideast News: Gulf Economies to Suffer From Coronavirus - Bloomberg

UAE and Mideast News: Gulf Economies to Suffer From Coronavirus - Bloomberg:

Gulf economies will grow at a slower pace than estimated this year as the coronavirus hurts oil demand, trade and tourism, Standard Chartered PLC said.

“The Gulf Cooperation Council is exposed to the slowdown in global growth – and China growth in particular – via two main channels: softer oil demand growth (with lower prices underpinning the need for ongoing production cuts by OPEC producers) and weaker trade and tourism,” economists Bilal Khan and Carla Slim wrote in note dated Feb. 25.

More than 80,000 people globally have been infected with the coronavirus which has spread from China. In recent days, the number of cases has risen across the oil-rich Middle East prompting many airlines to restrict flights.

The bank reduced expectations for Brent crude prices to an average $64 per barrel this year, down from an initial estimate of $70. The revision also takes OPEC’s December decision to deepen oil cuts into account, Khan said.

U.S. crude drops below $50 as virus spreads in Middle East and Europe - Reuters

U.S. crude drops below $50 as virus spreads in Middle East and Europe - Reuters:

U.S. crude dropped below $50 on Wednesday to its lowest since January 2019, as Asia, Europe and oil-producing countries in the Middle East reported hundreds of new coronavirus cases and the United States warned of an inevitable pandemic.

Brent crude was down $1.19, or 2.2%, to $53.76 a barrel by 1241 GMT, while U.S. West Texas Intermediate (WTI) crude was 83 cents, or 1.7%, lower at $49.07 a barrel.

Pandemic fears intensified as authorities around the world battled to prevent the spread of coronavirus, which has now been found in about 30 countries.

World stocks tumbled for a fifth straight day on Wednesday, while safe-haven gold rose back towards seven-year highs and U.S. bond yields held near record lows after governments and health authorities warned of a possible pandemic.

Mideast Stocks: #Dubai leads Gulf lower as coronavirus concerns intensify | ZAWYA MENA Edition

Mideast Stocks: Dubai leads Gulf lower as coronavirus concerns intensify | ZAWYA MENA Edition:

Most Gulf stocks extended loses on Wednesday as the coronavirus continued to spread through the Middle East, with Kuwait and Bahrain reporting a rise in new cases.

Three Gulf Arab states recorded their first coronavirus cases this week, all in people who had travelled from Iran, which on Wednesday reported a total of 19 virus-related deaths, the most outside China, and 139 cases.

Bahrain, which has suspended flights to Dubai, on Wednesday reported a rise in the number of cases to 26, some in people who had travelled through the UAE. Oman has recorded four cases.

Kuwait, which last week evacuated 700 people from Iran, has reported 25 cases. 


Dubai's main share index dropped 2% to its lowest level since June last year. Emaar Properties lost 2.7%, while sharia-compliant lender Dubai Islamic Bank was down 2.1%.

The UAE has reported 13 cases of the coronavirus since Jan. 28.

Lebanon Faces a $50 Billion Hole Even Beyond Its Eurobonds - Bloomberg

Lebanon Faces a $50 Billion Hole Even Beyond Its Eurobonds - Bloomberg: Lebanon has a lot more than just maturing Eurobonds to worry about.

In addition to $31 billion of those, the Middle Eastern nation’s central bank has $52.5 billion of obligations in the form of foreign-currency deposits and certificates of deposit, according to calculations by Toby Iles and Jan Friederich, Hong Kong-based analysts at Fitch Ratings Ltd.

Mostly owed to Lebanese banks, these additional debts compound the country’s woes as it grapples with its deepest economic crisis in decades. They also complicate a potential debt restructuring by the government, which on Tuesday confirmed it had hired Lazard Ltd. and Cleary Gottlieb Steen & Hamilton as financial advisers.

Falling reserves and inflows have led to a shortage of foreign exchange in Lebanon, causing havoc with the financial system. Moody’s Investors Service, which downgraded the government’s debt to 10 steps below investment grade last week, said a default is “all but inevitable” in the near term.

American Air Ends #Qatar Feud With Eye on Future Doha Flights - Bloomberg

American Air Ends Qatar Feud With Eye on Future Doha Flights - Bloomberg:

American Airlines Group Inc. set the stage for possible flights to the Middle East after it set aside a long-running quarrel with Qatar Airways to revive a suspended marketing pact.

The two airlines will seek U.S. regulatory approval to reinstate a codeshare agreement that ended in 2017 amid a dispute initiated by the three largest U.S. carriers over government subsidies they said were giving an unfair competitive advantage to Qatar Air and two other Persian Gulf rivals. That same year, American also objected to Qatar Air Chief Executive Officer Akbar Al Baker’s plan to buy a stake in the Fort Worth, Texas-based carrier.

Flights to Doha, Qatar’s capital, would be the latest front in American’s plan to expand its global network to markets in the Middle East, Africa and India. The carrier will begin flights to Casablanca, Morocco, in June and recently said it would fly to Bangalore, India, starting in October. American will resume service to Tel Aviv in September. None of the largest U.S. carriers currently flies its own aircraft to the Middle East.

“We can’t announce today’s news with Qatar Airways without acknowledging there have been differences between our airlines,” American Chief Executive Officer Doug Parker and President Robert Isom said in a message to employees Tuesday. “However, during the past several months, the dialogue has been good, and we have agreed that we can move forward and begin a new chapter.”

India's Petronet explores buying LNG under 10-year contract - Reuters

India's Petronet explores buying LNG under 10-year contract - Reuters:

India’s Petronet LNG, the country’s largest importer of liquefied natural gas (LNG), is looking to buy the super-chilled fuel through a long term contract starting from 2024, according to a document reviewed by Reuters.

It has issued a Request for Information (RFI) indicating an interest to buy about 1 million tonnes per annum (mtpa) of LNG for 10 years starting from 2024, with the possibility to extend, according to the Feb. 19 document.

A request for information is a common practice to ask for written information about the capabilities of various LNG sellers to help them make more informed buying decisions.

Petronet’s Director of Finance Vinod Kumar Mishra declined to comment on the RFI.

Finablr eyes #Saudi expansion after BayanPay licence announcement - Arabianbusiness

Finablr eyes Saudi expansion after BayanPay licence announcement - Arabianbusiness:

Finablr network brand BayanPay – a Saudi based digital payments firm – has been awarded a payment services provider licence by the Saudi Arabian Monetary Authority (SAMA), allowing it to offer digital wallets, e-commerce and SME business payment products in the kingdom.

BayanPay’s portfolio includes BayanPay Business, an online payments gateway services aggregator designed to provide a way to accept, process and disburse digital payments for B2B, B2C and B2G businesses in Saudi Arabia.

Additionally, the company offers BayanPay Wallet that enables users to make seamless payments. The service also allows for cross-border payments from Saudi Arabia, which according to the World Bank is the world’s second-largest remittance market.

“Saudi Arabia is a fast-evolving market in the payments space with the right infrastructure readiness and a conducive regulatory framework,” said Finablr group CEO Promoth Manghat.

Middle East low cost carriers set to grow market share in changing aviation market - Arabianbusiness

Middle East low cost carriers set to grow market share in changing aviation market - Arabianbusiness:

Middle East-based low cost carriers (LCCs) saw a 9.3 percent increase in seat capacity in 2019, increasing their share of total seats from 14.9 percent in 2018 to 16.5 percent in 2019, according to statistics from CAPA Centre for Aviation released ahead of April’s Arabian Travel Market.

Over the course of the next 12 months, LCCs are expected to further chip away at the market share of their larger rivals.

Saudia low-cost subsidiary Flyadeal, for example, became the region’s largest airline by seats in 2019, recording a capacity growth of 78.1 percent, according to CAPA.

“Situated within eight hours of two-third of the world’s population and located between the major cities of Europe in the northwest, the fast-developing East African cities in the west and India and Pakistan in the east, the Middle East is the ideal location to set up a budget airline, attracting passenger traffic from within the region as well as from across much of the eastern hemisphere,” said Danielle Curtis, Arabian Travel Market’s MidEast exhibition director.

UPDATE 1- #UAE ready for 'worst case' coronavirus scenarios, says government - Reuters

UPDATE 1-UAE ready for 'worst case' coronavirus scenarios, says government - Reuters:

The United Arab Emirates, a major international air transit centre, is prepared for “worst case scenarios” as the new coronavirus spreads in the Middle East, a government official said on Wednesday.

Authorities have enough facilities to quarantine patients and will be carrying out surveillance on people entering the country, said the official from the UAE National Emergency Crisis and Disasters Management Authority.

It was too early to ban public gatherings in the business, trade and tourism hub, added the official. Dubai is due to host the Expo 2020 world fair in October for six months.

The UAE has reported 13 cases of the new coronavirus since Jan. 28, three of whom have recovered.

Oil slides for fourth day as pandemic fears deepen - Reuters

Oil slides for fourth day as pandemic fears deepen - Reuters:

Crude oil prices gave up early gains and slid for a fourth day on Wednesday as fears of a coronavirus pandemic deepened as the outbreak spread in several countries outside China.

Brent crude fell 31 cents, or 0.6%, to $54.64 a barrel by 0753 GMT, while U.S. West Texas Intermediate crude dropped 16 cents, or 0.3%, to $49.74.

Fears of a pandemic have escalated as authorities around the world battle to prevent the spread of coronavirus, which has now been found in about 30 countries.

Asian shares fell on Wednesday as a U.S. warning to Americans to prepare for the possibility of a pandemic jolted Wall Street yet again and pushed yields on safe-haven Treasuries to record lows.

Mideast Stocks: Gulf stocks retreat further as virus fears grow | ZAWYA MENA Edition

Mideast Stocks: Gulf stocks retreat further as virus fears grow | ZAWYA MENA Edition:

Major bourses in the Gulf slid on Wednesday, with Saudi leading the losses, mirroring declines in global stocks as concerns about the spread of the coronavirus grew after the United States warned Americans to prepare for the possibility of a pandemic.

The U.S. Centers for Disease Control and Prevention on Tuesday alerted Americans to begin to prepare for community spread of the new coronavirus after reports this week of new cases in several more countries. 

Asia reported hundreds of new coronavirus cases on Wednesday, including the first U.S. soldier to be infected and outbreaks in Italy and Iran spread to other countries. 


There have been nearly 50 deaths outside China, including 11 in Italy and 16 in Iran, the most outside China, according to a Reuters tally.

Saudi Arabia's benchmark index was down 1.3% in early trade, as all its banking shares were in the red including Al Rajhi Bank, which fell 1.1%.

Oil falls for third day as virus fears accelerate on U.S. warning - Reuters

Oil falls for third day as virus fears accelerate on U.S. warning - Reuters:

Crude prices fell about 3% on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus and its impact on oil demand outweighed OPEC output cuts and Libyan supply losses.

The market sell-off accelerated after the U.S. Centers for Disease Control and Prevention said Americans should begin to prepare for community spread of the new coronavirus after reports this week of new cases in several more countries. 


Stocks across the globe fell on Tuesday to their lowest since early December and the benchmark U.S. debt yield hit a record low on concerns about the economic hit of the spread of the virus. [MKTS/GLOB]

Brent crude fell $1.35, or 2.4%, to settle at $54.95 a barrel. U.S. West Texas Intermediate crude dropped $1.53, or 3%, to settle at $49.90 a barrel.

U.S. Push to Pry Open Gulf Airspace for Qatar Hits Resistance - Bloomberg

U.S. Push to Pry Open Gulf Airspace for Qatar Hits Resistance - Bloomberg:

Saudi Arabia and its Arab allies are resisting a U.S. push to open their airspace to Qatar and end the natural-gas powerhouse’s heavy reliance on Iran’s skies, according to officials familiar with the contacts.

They figure they stand a better chance of extracting bigger concessions from Qatar, which they’ve been boycotting for nearly three years, the closer it gets to hosting the 2022 World Cup soccer tournament, according to one official familiar with the matter. Like three others, the official spoke on condition of anonymity to discuss confidential conversations.

Washington, the people said, intensified its efforts to mend the Gulf rift after last year’s attacks on energy interests in the Persian Gulf, which briefly disrupted Saudi oil production and raised the threat of open conflict between the U.S. and Iran. Opening airspace has been a key point on the agenda of regular meetings between U.S. and Saudi officials in Washington and the Gulf, even as broader reconciliation overtures between Arab countries have stalled.

Qatar has depended on Iranian skies at great cost ever since Saudi Arabia, the United Arab Emirates, Bahrain and Egypt severed diplomatic and trade ties in June 2017, forcing it to cut some flights and reroute others. Washington sees airspace as a possible way to begin a broader detente, the officials said, though it’s not clear whether this would mean restarting direct flights to Doha or simply allowing flyovers.

#Saudi ex-energy minister bounces back as investment chief - Reuters

Saudi ex-energy minister bounces back as investment chief - Reuters:

The man sacked as Saudi Arabia’s energy minister in September has been tapped to head a new investment ministry, in a cabinet reshuffle announced on Tuesday that also created ministries for tourism and sports.

Khalid al-Falih, who previously chaired state oil company Saudi Aramco and oversaw more than half the economy of the world’s top oil exporter, was widely seen as having fallen out of favor when he was removed from the energy ministry. 


Attracting billions of dollars in foreign investment is key to ambitious plans championed by de facto ruler Crown Prince Mohammed bin Salman to end the economy’s dependence on crude exports and open up its long-cloistered society. 


According to royal orders published in state media, Falih’s new ministry replaces the Saudi Arabian General Investment Authority (SAGIA), which had been responsible for issuing investment licenses to foreign companies but did not control other key regulations.

RPT-American Airlines, #Qatar Airways sign strategic partnership, codeshare deal - Reuters

RPT-American Airlines, Qatar Airways sign strategic partnership, codeshare deal - Reuters:

American Airlines Group Inc said Tuesday it has signed a strategic partnership deal with Qatar Airways and is reviving its codeshare agreement.

The largest U.S. airline also said it is considering launching service from the United States to Doha.

Starting in 2015, the largest U.S. carriers argued their Gulf rivals were being unfairly subsidized by their governments, distorting competition and costing U.S. jobs - something the Gulf carriers deny.

“The issues that led to the suspension of our partnership two years ago have been addressed, and we believe resuming our codeshare agreement will allow us to provide service to markets that our customers, team members and shareholders value,” said American Chairman and Chief Executive Doug Parker in a statement.

NMC Health founder BR Shetty pledges 7m shares against debt - Arabianbusiness

NMC Health founder BR Shetty pledges 7m shares against debt - Arabianbusiness:

NMC Health founder BR Shetty has pledged 7 million of the company’s shares as security for debt, according to a statement released by his holding company on Monday.

In a filing to the London Stock Exchange, BRS International said that the Indian billionaire currently has a 9.81 percent interest in the UAE healthcare group. 


It said Shetty had pledged the shares to Goldman Sachs as part of a funded equity collar transaction, a complex structure used to help to build a stake in a company. 


Shetty resigned as NMC’s co-chairman last week following a slump in its share price on doubts about the shareholdings of its major investors.

The stock has lost 68 percent since a Muddy Waters report on December 17 and is the worst performer this year in the UK’s benchmark FTSE 100 Index. It jumped on February 10 after the company said it received preliminary takeover approaches.

#UAE's largest bank approves $2.1bn cash dividends for 2019 - Arabianbusiness

UAE's largest bank approves $2.1bn cash dividends for 2019 - Arabianbusiness:

First Abu Dhabi Bank, the UAE's largest bank, has approved the distribution of cash dividends of more than AED8 billion ($2.1 billion) for the financial year ending December 31.

Its general assembly meeting in Abu Dhabi approved the distribution of 74 percent cash dividends, implying total cash dividends of AED8.08 billion.

The meeting also saw the election of new board members, increasing the size of FAB's board from nine to 11 members.

Jassim Mohammed Buatabh Al Zaabi and Dr Sultan bin Ahmad Sultan Al Jaber, Waleed Al Mokarrab Al Muhairi and Abdulhamid Saeed were named as the new members joining the board for a three-year term.

Leaving the board after completing their terms are Khaldoon Khalifa Al Mubarak and Nasser Ahmed Khalifa Ahmed Alsowaidi, a FAB statement noted.

Oil slips for 3rd day as virus fears outweigh supply cuts - Reuters

Oil slips for 3rd day as virus fears outweigh supply cuts - Reuters:

Oil fell below $56 a barrel on Tuesday, dropping for a third day, as concerns about the spread of the coronavirus and its impact on oil demand outweighed OPEC output cuts and Libyan supply losses. 

Crude fell almost 4% on Monday, with other commodities also reporting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic.

Brent crude fell 83 cents to $55.47 a barrel by 12:33 p.m. EST. U.S. West Texas Intermediate crude slipped 91 cents to $50.52.

“Demand concerns are wiping out all of the gains we have made over the last few weeks,” said Bob Yawger, director of energy futures at Mizuho in New York. “This is not a situation that is going to suddenly get better.”

#SaudiArabia’s former energy minister returns in cabinet reshuffle | Financial Times

Saudi Arabia’s former energy minister returns in cabinet reshuffle | Financial Times:

Khalid al-Falih, who was removed from his position as Saudi Arabia’s energy minister last year, has returned to lead a new government ministry for investment as part of a cabinet reshuffle announced on Tuesday.

The state news agency published a series of royal decrees that also announced the creation of new ministries for sports, tourism and human resources as well as new government appointments.

Until last year, Mr Falih was one of the highest ranking officials in the kingdom. An oil industry veteran for decades, he oversaw a Saudi super-ministry that straddled energy, industry and mining.

But his inability to deliver a rapid overhaul of industrial strategy and a cautious approach to the stock market offering of Saudi Aramco - much sought after by Crown Prince Mohammed bin Salman - were among reasons he fell from grace in a dramatic fashion. Within a few days in September he lost a series of positions including his role as the head of oil policy and the chairman of the state energy giant, moves that revealed the ruthless nature of governance in the kingdom.

MIDEAST STOCKS-Most Mideast stocks slip as virus fears continue - Agricultural Commodities - Reuters

MIDEAST STOCKS-Most Mideast stocks slip as virus fears continue - Agricultural Commodities - Reuters:

Most Middle Eastern stocks fell on
Tuesday, extending the previous session's sharp selloff
triggered by a spike in the number of coronavirus cases outside
China.

The death toll from the virus in Iran rose to 16, the
highest outside China, while other hard-hit nations including
South Korea and Italy accelerated emergency measures to curb the
spread of the epidemic.

Dubai's share index closed down 0.9% with Emaar
Properties losing 3.2% and Air Arabia
falling 3.4%.

The United Arab Emirates on Tuesday suspended all flights to
and from Iran for at least a week due to the spread of the virus
in the country. Air Arabia, whose main base is at
Sharjah International Airport, is the UAE's only listed airline.

Qatar’s index dropped 0.7% with Qatar Islamic Bank
down 2.5% and Industries Qatar off 1.7%.

#Saudi regulator issues licensing guidelines for digital-only banks | ZAWYA MENA Edition

Saudi regulator issues licensing guidelines for digital-only banks | ZAWYA MENA Edition:

The Saudi Arabian Monetary Authority (SAMA) has issued additional licensing guidelines for digital-only banks in the kingdom, the regulator said on twitter. 


Conditions for the digital-only bank include that it should be set up as a locally incorporated joint-stock company and maintain a physical presence in Saudi Arabia. The promoter should also have experience and knowledge in the financial industry and technology-related expertise.

While it is not expected to establish physical branches, the regulator may require setting up costumer service centers in some exceptional cases.

Other requirements include a clearly articulated business plan that covers the IT infrastructure, the financial projections, the target segment, and the proposed products and services.

These guidelines must be considered as additional conditions to be met along with the licensing guidelines for conventional banks, SAMA said in the detailed report on the licensing criteria for digital-only banks.

#Dubai regulator slaps $105,000 fine on company for unauthorized financial service | ZAWYA MENA Edition

Dubai regulator slaps $105,000 fine on company for unauthorized financial service | ZAWYA MENA Edition:

The Dubai Financial Services Authority (DFSA) has fined Enness Limited, a DIFC representative office of a UK-based firm, $105,000 (approximately 386,000 UAE dirhams) for engaging in unauthorised activity outside the scope of its license.

Enness DIFC is only permitted to carry out activities in the DIFC relating to the marketing of mortgage services offered by its head office, as per the DFSA license. 


However, the company engaged in arranging mortgages and providing mortgage advice for its clients between November 2017 and January 2019. The firm now has sought to obtain a license authorising it to carry on wider financial services activity. 


“This action demonstrates that the DFSA takes the failure by Representative Offices to act within the scope of their Licenses seriously. We expect that all Representative Offices in the DIFC understand what they are authorised to do and have controls in place that ensure they only engage in authorised activities,” said Bryan Stirewalt, Chief Executive of the DFSA in a statement.

Credit risk rises for Gulf crude exporters on virus fears - Reuters

Credit risk rises for Gulf crude exporters on virus fears - Reuters:

The cost of insuring against sovereign debt defaults by Gulf Arab states has risen in recent days as markets price the risk the coronavirus outbreak represents for the crude export-dependent region.

Conventional spreads on the five-year credit default swaps (CDS) of Bahrain and Oman were up four and seven basis points respectively on Tuesday compared to their close last week, according to IHS Markit, while those for Saudi Arabia and Dubai have risen 5 and 3 points respectively.

The rise, though not huge, reflected risk-off sentiment in debt markets which could translate into further weakness in coming days, fund managers said.

“We haven’t seen a sell off in regional bonds but the overall emerging markets sentiment is heavy because of the virus outbreak,” said Zeina Rizk, executive fixed income director at Arqaam Capital, adding that it was normal for CDS to move before bonds.

Oil steadies above $56 as supply constraints counter virus fears - Reuters

Oil steadies above $56 as supply constraints counter virus fears - Reuters:

Oil steadied above $56 a barrel on Tuesday after two days of declines as OPEC output cuts and Libyan supply losses balanced concerns about the spread of the coronavirus and its impact on oil demand.

Crude fell almost 4% on Monday, with other commodities also posting losses while U.S. and European equities suffered their steepest declines since mid-2016 on concern the coronavirus outbreak could turn into a pandemic. [MKTS/GLOB]

Brent crude rose 5 cents to $56.35 a barrel by 0952 GMT. U.S. West Texas Intermediate crude was down 14 cents at $51.29.

“Risk appetite appears to be growing again on the markets,” said Commerzbank analyst Eugen Weinberg. “However, the Covid-19 virus and resulting risks to demand cannot be expected to disappear from the news any time soon.”

#UAE suspends all flights with Iran over coronavirus outbreak - Reuters

UAE suspends all flights with Iran over coronavirus outbreak - Reuters:

The United Arab Emirates has suspended all flights to and from Iran for at least a week due to the spread of the new coronavirus in the Islamic republic, state news agency WAM reported, citing a directive from the Gulf Arab state’s aviation authority.

The suspension affects passenger and cargo flights of UAE carriers Emirates, flydubai, which operate services from Dubai, and Air Arabia (AIRA.DU), which flies from Sharjah, and Iranian airlines.

“The aviation authority said it was suspending all passenger and cargo flights to and from the Islamic Republic of Iran for a week, which could be extended,” WAM said, quoting a statement from the authority.

Two more Iranians infected with the new coronavirus have died in Iran, media said on Tuesday, taking to 14 its tally of deaths.

Fierce competition, rising medical cost drain profits of #Saudi, #UAE insurers | ZAWYA MENA Edition

Fierce competition, rising medical cost drain profits of Saudi, UAE insurers | ZAWYA MENA Edition:

Insurance companies in the UAE and Saudi Arabia will continue to face challenges amid high healthcare costs and a crowded market, according to Fitch Ratings.

The credit rating agency stated in its latest report issued on Monday that medical inflation, coupled with stiff competition, will further squeeze insurers’ profits in the two markets this year. 

Rising medical claims are outpacing premiums increases in Saudi Arabia, while health insurance gross written premiums in the UAE are on a decline, it said.

The UAE and Saudi Arabia are the two largest insurance markets in the Middle East, with health insurance business dominating in both.

Since the compulsory cover was mandated in the UAE in 2005 and in Saudi Arabia in 2006, the health segment has been the fastest-growing insurance product in the region.

MIDEAST STOCKS-Most major Gulf stocks slide as virus fears grip markets | Nasdaq

MIDEAST STOCKS-Most major Gulf stocks slide as virus fears grip markets | Nasdaq:

Most major Gulf markets extended losses on Tuesday, with Qatar falling the most as concerns about the coronavirus spreading out of China weighed on investor sentiment.

The coronavirus death toll climbed to seven in Italy on Monday and several Middle East countries were dealing with their first infections, feeding worries it could turn into a pandemic.

The Qatari index .QSI extended losses from the previous session to open 1.4% down. Qatar Islamic Bank QISB.QA slid 4.9%, while Mesaieed Petrochemical MPHC.QA retreated 4%.

Saudi Arabia's benchmark index .TASI retreated a further 0.8%, a day after it saw its biggest decline in more than nine months. Oil giant Saudi Aramco 2222.SE eased 0.6%, while Savola Group 2050.SE decreased 2.7%.

How Is the Coronavirus Outbreak Affecting Middle East Markets? - Bloomberg

How Is the Coronavirus Outbreak Affecting Middle East Markets? - Bloomberg:



Ali Taqi, the head of equities at Rasmala Investment Bank Ltd. in Dubai, discusses how the coronavirus outbreak is affecting Middle East economies and markets. He speaks with Manus Cranny on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)

Doha Bank Plans to Hold Off Paying Dividends For the Near Term - Bloomberg

Doha Bank Plans to Hold Off Paying Dividends For the Near Term - Bloomberg:

Doha Bank QPSC will hold off paying dividends for the near term and focus on consolidating its capital after the Qatari lender posted a fourth-quarter loss.

“We have reasons to believe we’ll continue to perform well and start paying dividend as we deem fit,” Raghavan Seetharaman said in an interview with Bloomberg TV on Tuesday.

Doha Bank last week said it was reducing the “2019 dividend to zero to enhance capital and reserves.”

The bank’s quarterly loss was “solely attributable” to a surge in provisions and impairments to the highest level in the bank’s operating history.

#UAE News: 44% of Energy Supply to Come From Solar, Wind - Bloomberg

UAE News: 44% of Energy Supply to Come From Solar, Wind - Bloomberg:

The United Arab Emirates plans to produce 44% of its energy mix from renewable sources, according to United Arab Emirates Energy Minister Suhail Al Mazrouei. 


The country aims to capture 5 million tons of carbon dioxide by 2030, he said at an event in Riyadh, Saudi Arabia.

No OPEC Decision Yet on Oil Cuts, #Saudi Energy Minister Says - Bloomberg

No OPEC Decision Yet on Oil Cuts, Saudi Energy Minister Says - Bloomberg:

OPEC hasn’t made a decision yet on whether to extend or modify its agreement to cut oil output, Saudi Arabia’s Energy Minister Prince Abdulaziz bin Salman said. 


The Organization of Petroleum Exporting Countries and its allies are to meet next week in Vienna to assess their global cuts and output policy. Prince Abdulaziz is confident of OPEC’s partnership with other producers including Russia, he told reporters in Riyadh.

“We are communicating with each other at every opportunity,” he said, before addressing an industry conference in the Saudi capital. “The OPEC secretary-general is attending this conference, and we just had a chat. We did not run out of ideas.”

Crude rose, with benchmark Brent gaining as much as 68 cents a barrel, or 1.2%. The contract was at $56.84 a barrel at 7:34 a.m. in London.

FIFA, NFL Ask U.S. to Keep #SaudiArabia on Watchlist Over Piracy - Bloomberg

FIFA, NFL Ask U.S. to Keep Saudi Arabia on Watchlist Over Piracy - Bloomberg:

Global sports bodies asked the U.S. to keep Saudi Arabia on its higher-priority watch list of nations that don’t adequately protect intellectual-property rights because of what they say is unchecked content piracy in the kingdom.

The International Olympic Committee, global soccer governing-body FIFA, Europe’s UEFA, and a coalition representing U.S. sports organizations including the National Football League are among those that have written in recent weeks to the U.S. Trade Representative as part of its annual review to identify countries that deny adequate protection of IP rights. The USTR holds hearings on the so-called special 301 review in Washington Wednesday.

Global sports bodies say Saudi Arabia-based beoutQ tapped illegally into coverage of their top events and sold it on to viewers across the Middle East. Qatar, whose beIN Media Group LLC holds the rights to most soccer games, tennis matches and motor races, says beoutQ has pirated much of its content, adding Saudi Arabia is behind the operation. The Saudi authorities denied the allegation and said they were combating piracy.

#UAE News: Flights Halted to Iran, Except Tehran, on Virus - Bloomberg

UAE News: Flights Halted to Iran, Except Tehran, on Virus - Bloomberg:

The United Arab Emirates banned flights to all cities in Iran with the exception of Tehran in an effort to prevent the spread of coronavirus.

The decision is effective Tuesday until further notice, the U.A.E. civil aviation authority said in a statement. The country has already suspended all flights to and from China, with the exception of Beijing.

Iran is the epicenter of coronavirus in the Middle East, with 12 deaths and about 60 confirmed cases. Air Arabia PJSC and FlyDubai operate about 25 weekly flights to Iranian cities other than Tehran. Emirates, the world’s biggest airline by international traffic, only flies to Tehran.

Bahrain on Monday temporarily banned flights to and from Dubai, the Middle East’s airline hub, and Sharjah in the U.A.E. as Middle East countries reported more cases overnight.

RPT- #Saudi Aramco launches largest shale gas development outside U.S. - Reuters

RPT-Saudi Aramco launches largest shale gas development outside U.S. - Reuters:

Saudi Aramco is launching the biggest shale gas development outside of the United States to boost domestic gas supply and end the burning of oil at its power generation plants, Chief Executive Officer Amin Nasser told Reuters on Monday. 


The world’s top crude oil exporter has for years battled for market share with rapidly expanding shale oil producers in the United States, which in just a decade have developed capacity to pump millions of barrels per day of oil from rock formations that were previously too costly to tap.

Saudi Arabia fought a price war aimed at putting the U.S. shale industry out of business just six years ago, which ultimately failed. Now, the country has adopted the techniques developed in U.S. fields - which started with gas - for the huge $110 billion Jafurah shale gas field project. Aramco said it received the go ahead for the project on Saturday.

If Aramco hits its targets for development of the field, Saudi Arabia would become the world’s third largest gas producer by 2030. The world’s top two gas producers are the United States and Russia.