First Abu Dhabi Bank plans to issue perpetual bonds as soon as September - sources | ZAWYA MENA Edition:
First Abu Dhabi Bank (FAB) plans to issue Additional Tier 1 (AT1) bonds as soon as September, two sources familiar with the matter said.
One of the sources said FAB, the largest bank in the United Arab Emirates, will likely issue $750 million in AT1 bonds.
"We always actively monitor our capital positions and we will always make sure to keep them at the best ratios within regulatory buffers," Rula Al Qadi, head of group funding at FAB, said in response to a Reuters query.
Additional Tier 1 (AT1) bonds, the riskiest debt instruments banks can issue, are designed to be perpetual in nature, but lenders can call them after a specified period.
In June, FAB redeemed $750 million in AT1 bonds on their first call date.
Monday 31 August 2020
Oil dips as prices struggle to break through demand uncertainty - Reuters
Oil dips as prices struggle to break through demand uncertainty - Reuters:
Oil prices dropped on Monday, with Brent slipping from a five-month high as global demand remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53 cents, or 1.2%. U.S. West Texas Intermediate crude CLc1 settled at $42.61 a barrel, down 36 cents, or 0.8%.
Brent still closed out August up 7.5% for a fifth successive monthly price rise. WTI logged a fourth monthly gain at 5.8% after hitting a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Still, with key economies around the world limply recovering from coronavirus lockdowns, analysts said the market could remain oversupplied with fuel.
Oil prices dropped on Monday, with Brent slipping from a five-month high as global demand remained below pre-COVID levels while U.S. production edged up.
Brent crude futures settled at $45.28 a barrel, down 53 cents, or 1.2%. U.S. West Texas Intermediate crude CLc1 settled at $42.61 a barrel, down 36 cents, or 0.8%.
Brent still closed out August up 7.5% for a fifth successive monthly price rise. WTI logged a fourth monthly gain at 5.8% after hitting a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Still, with key economies around the world limply recovering from coronavirus lockdowns, analysts said the market could remain oversupplied with fuel.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Israel Sees $6.5 Billion in Trade as #UAE Peace Talks Start - Bloomberg
Israel Sees $6.5 Billion in Trade as UAE Peace Talks Start - Bloomberg:
Talks to normalize relations between Israel and the United Arab Emirates launch this week with a focus on economic issues, with thornier defense matters pushed off as controversy churns around the Gulf Nation’s bid to buy the U.S.’s top warplane.
Israel’s Finance Ministry sees potential for annual bilateral trade starting at $2 billion and building up to $6.5 billion once cooperation matures, according to deputy chief economist Lev Drucker. This week’s trip will center on promoting cooperation in fields like tourism, finance, trade and health, according to Israeli Prime Minister Benjamin Netanyahu.
The UAE Foreign Ministry declined to comment.
Just three weeks ago such a meeting would have been unheard of. But on Aug. 13, the countries announced their plan to normalize ties, a first between Israel and a Gulf Arab nation, and only the third such arrangement between the Jewish state and an Arab one. Making this week’s two-day gathering even more eventful is that on Monday, the delegation of Israelis and Americans are flying from Tel Aviv to Abu Dhabi, over Saudi Arabia -- a first commercial flight of its kind for an Israeli airline.
Talks to normalize relations between Israel and the United Arab Emirates launch this week with a focus on economic issues, with thornier defense matters pushed off as controversy churns around the Gulf Nation’s bid to buy the U.S.’s top warplane.
Israel’s Finance Ministry sees potential for annual bilateral trade starting at $2 billion and building up to $6.5 billion once cooperation matures, according to deputy chief economist Lev Drucker. This week’s trip will center on promoting cooperation in fields like tourism, finance, trade and health, according to Israeli Prime Minister Benjamin Netanyahu.
The UAE Foreign Ministry declined to comment.
Just three weeks ago such a meeting would have been unheard of. But on Aug. 13, the countries announced their plan to normalize ties, a first between Israel and a Gulf Arab nation, and only the third such arrangement between the Jewish state and an Arab one. Making this week’s two-day gathering even more eventful is that on Monday, the delegation of Israelis and Americans are flying from Tel Aviv to Abu Dhabi, over Saudi Arabia -- a first commercial flight of its kind for an Israeli airline.
Grocery retailer Bindawood announces intention to list on #Saudi bourse | ZAWYA MENA Edition
Grocery retailer Bindawood announces intention to list on Saudi bourse | ZAWYA MENA Edition:
Saudi Arabian grocery retailer BinDawood Holding Co on Monday announced its intention to list on the Saudi bourse, with plans to sell existing shares and have a free float of 20%.
The company has 73 stores including 51 hypermarkets and 22 supermarkets, making it the third-largest operator of hypermarkets and supermarkets in Saudi Arabia by revenue in 2019, it said.
BinDawood Holding, which controls supermarket chains BinDawood and Danube in the kingdom, this year postponed its planned IPO in the wake of the coronavirus outbreak.
Saudi Arabia is encouraging more family-owned companies to list in a bid to deepen its capital markets under a reform push aimed at cutting the kingdom’s reliance on oil.
Saudi Arabian grocery retailer BinDawood Holding Co on Monday announced its intention to list on the Saudi bourse, with plans to sell existing shares and have a free float of 20%.
The company has 73 stores including 51 hypermarkets and 22 supermarkets, making it the third-largest operator of hypermarkets and supermarkets in Saudi Arabia by revenue in 2019, it said.
BinDawood Holding, which controls supermarket chains BinDawood and Danube in the kingdom, this year postponed its planned IPO in the wake of the coronavirus outbreak.
Saudi Arabia is encouraging more family-owned companies to list in a bid to deepen its capital markets under a reform push aimed at cutting the kingdom’s reliance on oil.
UPDATE 3- #Dubai plans comeback to debt markets amid sharp economic downturn - Reuters
UPDATE 3-Dubai plans comeback to debt markets amid sharp economic downturn - Reuters:
Dubai has hired banks to advise it on its comeback to the international debt markets as the Middle East trade and tourism hub seeks to bolster finances hit by the coronavirus pandemic.
It is planning to issue U.S. dollar-denominated 10-year Islamic bonds, or sukuk, and 30-year conventional bonds, a document issued by one of the banks leading the deal showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered will arrange investor calls, which will begin on Monday, ahead of the potential debt offering.
The planned deals will be of benchmark size, which generally means upwards of $500 million, as part of a $6 billion sukuk issuance programme and of a $5 billion bond issuance programme, the document showed.
A banking source estimated the issuance could be around $2 billion.
Dubai has hired banks to advise it on its comeback to the international debt markets as the Middle East trade and tourism hub seeks to bolster finances hit by the coronavirus pandemic.
It is planning to issue U.S. dollar-denominated 10-year Islamic bonds, or sukuk, and 30-year conventional bonds, a document issued by one of the banks leading the deal showed.
Dubai Islamic Bank, Emirates NBD Capital, First Abu Dhabi Bank, HSBC, and Standard Chartered will arrange investor calls, which will begin on Monday, ahead of the potential debt offering.
The planned deals will be of benchmark size, which generally means upwards of $500 million, as part of a $6 billion sukuk issuance programme and of a $5 billion bond issuance programme, the document showed.
A banking source estimated the issuance could be around $2 billion.
Emirates airline got $2 billion injection from #Dubai government: document - Reuters
Emirates airline got $2 billion injection from Dubai government: document - Reuters:
Emirates airline has received 7.3 billion dirhams ($2 billion) from the government of Dubai as it faces a cash crunch caused by the COVID-19 pandemic, a bond prospectus seen by Reuters shows.
Aviation has been one of the worst-hit industries during the pandemic and Emirates has cut thousands of jobs as it tries to manage the crisis, sources have said.
The government provided 7.3 billion dirhams to the airline it owns after Dubai’s crown prince in March promised equity to Emirates to see it through the crisis, the prospectus shows.
No such injection has been publicly announced by the government or the airline.
The details were disclosed in a prospectus for a potential bond issuance by the Dubai government.
Emirates airline has received 7.3 billion dirhams ($2 billion) from the government of Dubai as it faces a cash crunch caused by the COVID-19 pandemic, a bond prospectus seen by Reuters shows.
Aviation has been one of the worst-hit industries during the pandemic and Emirates has cut thousands of jobs as it tries to manage the crisis, sources have said.
The government provided 7.3 billion dirhams to the airline it owns after Dubai’s crown prince in March promised equity to Emirates to see it through the crisis, the prospectus shows.
No such injection has been publicly announced by the government or the airline.
The details were disclosed in a prospectus for a potential bond issuance by the Dubai government.
Brent hits five-month high on #AbuDhabi supply cuts, China data - Reuters
Brent hits five-month high on Abu Dhabi supply cuts, China data - Reuters:
Oil rose on Monday, with Brent touching the highest in five months, underpinned by a 30% cut in Abu Dhabi crude supplies and encouraging Chinese data even as global demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November LCOc1 advanced to $46.38 a barrel earlier, the highest since March, and was fetching $46.27 by 0656 GMT, up 46 cents, or 1%. U.S. West Texas Intermediate crude CLc1 was at $43.25 a barrel, up 28 cents, or 0.7%.
Brent is set to close out August with a fifth successive monthly price rise while WTI is on track for a fourth monthly gain, having hit a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Abu Dhabi National Oil Company told its customers on Monday that it will reduce October supplies by 30%, up from a 5% cut in September, as directed by the United Arab Emirates government to meet its commitment on the recent OPEC+ agreement.
Oil rose on Monday, with Brent touching the highest in five months, underpinned by a 30% cut in Abu Dhabi crude supplies and encouraging Chinese data even as global demand struggles to return to pre-COVID levels in a well supplied market.
Brent crude futures for November LCOc1 advanced to $46.38 a barrel earlier, the highest since March, and was fetching $46.27 by 0656 GMT, up 46 cents, or 1%. U.S. West Texas Intermediate crude CLc1 was at $43.25 a barrel, up 28 cents, or 0.7%.
Brent is set to close out August with a fifth successive monthly price rise while WTI is on track for a fourth monthly gain, having hit a five-month high of $43.78 a barrel on Aug. 26 when Hurricane Laura struck.
Abu Dhabi National Oil Company told its customers on Monday that it will reduce October supplies by 30%, up from a 5% cut in September, as directed by the United Arab Emirates government to meet its commitment on the recent OPEC+ agreement.
MIDEAST STOCKS- #Saudi gains in early trade; other markets mixed - Reuters
MIDEAST STOCKS-Saudi gains in early trade; other markets mixed - Reuters:
Saudi Arabia’s stock market rose in early trade on Monday, boosted by energy and financial companies, while shares in the United Arab Emirates moved sideways.
The kingdom’s benchmark index was up 0.3%, with state oil company Saudi Aramco rising 1% and Riyad Bank gaining 0.8%.
Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The oil giant will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, energy minister Prince Abdulaziz bin Salman Al-Saud said.
Dubai’s main share index slipped 0.3%, hurt by a 1.8% fall in Emirates NBD Bank and a 0.8% drop in Dubai Investments.
In Abu Dhabi, the index gained 0.4%, helped by a 0.7% rise in the country’s largest lender First Abu Dhabi Bank and a 0.5% increase in Emirates Telecommunications .
The Qatari index edged up 0.1% as utility firm Qatar Electricity and Water Company gained 1.3%.
Saudi Arabia’s stock market rose in early trade on Monday, boosted by energy and financial companies, while shares in the United Arab Emirates moved sideways.
The kingdom’s benchmark index was up 0.3%, with state oil company Saudi Aramco rising 1% and Riyad Bank gaining 0.8%.
Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The oil giant will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, energy minister Prince Abdulaziz bin Salman Al-Saud said.
Dubai’s main share index slipped 0.3%, hurt by a 1.8% fall in Emirates NBD Bank and a 0.8% drop in Dubai Investments.
In Abu Dhabi, the index gained 0.4%, helped by a 0.7% rise in the country’s largest lender First Abu Dhabi Bank and a 0.5% increase in Emirates Telecommunications .
The Qatari index edged up 0.1% as utility firm Qatar Electricity and Water Company gained 1.3%.
Coronavirus ends ‘golden’ era for sovereign wealth funds | Financial Times
Coronavirus ends ‘golden’ era for sovereign wealth funds | Financial Times:
The “golden age” of sovereign wealth funds has ended, according to academic research that predicts the coronavirus pandemic will result in profound changes for the state-backed investment vehicles.
Sovereign wealth funds, which oversee $6tn globally, are being tapped by governments to stabilise budgets and mitigate the effects of the economic fallout of the pandemic, according to academics at Bocconi University, New York University and London School of Economics.
SWFs linked to commodities such as oil, in particular, are “facing the most severe adverse shock in their history”, with the pandemic adding to problems such as low oil prices and declining hydrocarbon revenues.
“The Covid-19 crisis is a turning point in the history of SWFs. This dramatic, unexpected shock accelerates the pre-existing negative trend of declining oil prices and slowing of global trade, the two main drivers of SWF growth,” said Bernardo Bortolotti, an economics professor and one of the report’s authors.
The “golden age” of sovereign wealth funds has ended, according to academic research that predicts the coronavirus pandemic will result in profound changes for the state-backed investment vehicles.
Sovereign wealth funds, which oversee $6tn globally, are being tapped by governments to stabilise budgets and mitigate the effects of the economic fallout of the pandemic, according to academics at Bocconi University, New York University and London School of Economics.
SWFs linked to commodities such as oil, in particular, are “facing the most severe adverse shock in their history”, with the pandemic adding to problems such as low oil prices and declining hydrocarbon revenues.
“The Covid-19 crisis is a turning point in the history of SWFs. This dramatic, unexpected shock accelerates the pre-existing negative trend of declining oil prices and slowing of global trade, the two main drivers of SWF growth,” said Bernardo Bortolotti, an economics professor and one of the report’s authors.
Sunday 30 August 2020
#Dubai Is Said To Be in Talks With Banks for Dollar Sukuk Sale - Bloomberg
Dubai Is Said To Be in Talks With Banks for Dollar Sukuk Sale - Bloomberg:
Dubai is in talks with banks for a possible sale of Islamic bonds in dollars, people familiar with the matter said, as it seeks ways to shore up its finances.
The sheikhdom last week sent a request for proposals for a benchmark sukuk offering, the people said, asking not to be identified because the information is private. A final decision hasn’t been made and Dubai may decide not to tap the market.
A spokesman for Dubai’s Department of Finance declined to comment.
If Dubai does tap the market, it would follow other governments from the Gulf that have sold dollar debt or started the process since the spread of the coronavirus. Abu Dhabi, the capital of the United Arab Emirates, raised $5 billion in a three-part offering last week while Bahrain is planning a return to the dollar debt market, according to people familiar with the matter.
Dubai is in talks with banks for a possible sale of Islamic bonds in dollars, people familiar with the matter said, as it seeks ways to shore up its finances.
The sheikhdom last week sent a request for proposals for a benchmark sukuk offering, the people said, asking not to be identified because the information is private. A final decision hasn’t been made and Dubai may decide not to tap the market.
A spokesman for Dubai’s Department of Finance declined to comment.
If Dubai does tap the market, it would follow other governments from the Gulf that have sold dollar debt or started the process since the spread of the coronavirus. Abu Dhabi, the capital of the United Arab Emirates, raised $5 billion in a three-part offering last week while Bahrain is planning a return to the dollar debt market, according to people familiar with the matter.
Middle East News: #Kuwait Finance Ministry Weighs Cuts to Debt Ceiling - Bloomberg
Middle East News: Kuwait Finance Ministry Weighs Cuts to Debt Ceiling - Bloomberg:
Kuwait’s government will study an idea to lower by half the ceiling on public debt as part of proposed amendments to a law it’s struggled to push through parliament, Finance Minister Barak Al-Sheetan said.
The finance and economic committee has also suggested reducing the period for borrowing, Al-Sheetan said Sunday after meeting lawmakers. The panel has proposed reducing the limit from 20 billion dinars ($66 billion) to 10 billion dinars, said the committee’s head, Safa Al-Hashem.
Liquid assets in Kuwait’s Treasury will soon be depleted if oil prices don’t improve and if the government can’t borrow in local and international markets, the minister has said. The draft bill currently allows for the sale of 30-year bonds over 10 years from the approval date.
Kuwait’s government will study an idea to lower by half the ceiling on public debt as part of proposed amendments to a law it’s struggled to push through parliament, Finance Minister Barak Al-Sheetan said.
The finance and economic committee has also suggested reducing the period for borrowing, Al-Sheetan said Sunday after meeting lawmakers. The panel has proposed reducing the limit from 20 billion dinars ($66 billion) to 10 billion dinars, said the committee’s head, Safa Al-Hashem.
Liquid assets in Kuwait’s Treasury will soon be depleted if oil prices don’t improve and if the government can’t borrow in local and international markets, the minister has said. The draft bill currently allows for the sale of 30-year bonds over 10 years from the approval date.
#Qatar raises minimum wage, lifts curbs on changing jobs - Reuters
Qatar raises minimum wage, lifts curbs on changing jobs - Reuters:
Qatar announced changes to its labour laws on Sunday, raising the minimum wage by 25 percent to 1,000 riyals ($275) a month and scrapping a requirement for workers to get permission from their employers to change jobs.
They are the latest in a series of labour reforms by the 2022 FIFA World Cup host which in the lead up to the tournament has faced accusations that migrant workers are exploited.
The new minimum wage, which comes into effect in six months and is 250 riyals more a month than the old one, is non-discriminatory and applies to all workers.
Companies must also provide accommodation and food or a combined monthly stipend of 800 riyals.
The removal of employer permission to change jobs is effective immediately.
Qatar announced changes to its labour laws on Sunday, raising the minimum wage by 25 percent to 1,000 riyals ($275) a month and scrapping a requirement for workers to get permission from their employers to change jobs.
They are the latest in a series of labour reforms by the 2022 FIFA World Cup host which in the lead up to the tournament has faced accusations that migrant workers are exploited.
The new minimum wage, which comes into effect in six months and is 250 riyals more a month than the old one, is non-discriminatory and applies to all workers.
Companies must also provide accommodation and food or a combined monthly stipend of 800 riyals.
The removal of employer permission to change jobs is effective immediately.
#Saudi Aramco discovers two new oil and gas fields: energy minister - Reuters
Saudi Aramco discovers two new oil and gas fields: energy minister - Reuters:
State oil company Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The energy minister Prince Abdulaziz bin Salman Al-Saud said the new Abraq al-Toloul oil field, which lies to the south east of the northern city of Arar, flows with a daily rate of 3,189 barrels per day (bpd) of Arab light crude oil, along with 3.5 million cubic feet of natural gas.
Hadabat al Hajara gas field in al-Jof region has a daily production rate of 16 million cubic feets of natural gas, along with 1944 bpd of oil condensate, according to the minister.
Aramco will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, he added.
State oil company Saudi Aramco has discovered two new oil and gas fields in the northern regions, the kingdom’s energy minister said on Sunday, state news agency SPA reported.
The energy minister Prince Abdulaziz bin Salman Al-Saud said the new Abraq al-Toloul oil field, which lies to the south east of the northern city of Arar, flows with a daily rate of 3,189 barrels per day (bpd) of Arab light crude oil, along with 3.5 million cubic feet of natural gas.
Hadabat al Hajara gas field in al-Jof region has a daily production rate of 16 million cubic feets of natural gas, along with 1944 bpd of oil condensate, according to the minister.
Aramco will carry on with its efforts to estimate the total amount of oil and gas in the two fields and is drilling more wells to determine their areas and capacities, he added.
#Saudi's foray into derivatives to boost kingdom's capital market | ZAWYA MENA Edition
Saudi's foray into derivatives to boost kingdom's capital market | ZAWYA MENA Edition:
Saudi Arabia’s stock exchange (Tadawul) has officially entered the derivatives marketplace, a move that is seen to boost the kingdom’s capital market.
The Saudi Stock Exchange announced on Sunday that it has launched its first Derivatives Market and a clearing house, the Securities Clearing Centre Company (Muqassa).
In a statement, the exchange also unveiled the first exchange-traded derivatives product, which is called the MT30 Index Futures. The new product is an index futures contract based on the MSCI Tadawul 30 Index (MT30).
The exchange also plans to roll out more derivatives products, including the Single Stock Futures, Single Stock Options and Index Options.
The launch of the derivatives market is considered to be a vital move that will provide investors more exposure to the Saudi capital market. It is part of the key initiatives under the Saudi Vision 2030.
Saudi Arabia’s stock exchange (Tadawul) has officially entered the derivatives marketplace, a move that is seen to boost the kingdom’s capital market.
The Saudi Stock Exchange announced on Sunday that it has launched its first Derivatives Market and a clearing house, the Securities Clearing Centre Company (Muqassa).
In a statement, the exchange also unveiled the first exchange-traded derivatives product, which is called the MT30 Index Futures. The new product is an index futures contract based on the MSCI Tadawul 30 Index (MT30).
The exchange also plans to roll out more derivatives products, including the Single Stock Futures, Single Stock Options and Index Options.
The launch of the derivatives market is considered to be a vital move that will provide investors more exposure to the Saudi capital market. It is part of the key initiatives under the Saudi Vision 2030.
#Bahrain plans return to debt markets with mix of bonds and sukuk - Arabianbusiness
Bahrain plans return to debt markets with mix of bonds and sukuk - Arabianbusiness:
Bahrain is planning to return to the dollar bond market, according to people familiar with the matter, as the country faces one of the world’s biggest budget deficits this year.
The Gulf nation sent a request for proposals to banks seeking to offer a benchmark-size issue, the people said, asking not to be identified because the discussions are private. Benchmark typically means at least $500 million equivalent.
The sale may include a mix of conventional bonds and Islamic securities known as sukuk, the people said.
The kingdom is under fiscal strain despite a $10 billion bailout package from its wealthier neighbours received in 2018.
Bahrain is planning to return to the dollar bond market, according to people familiar with the matter, as the country faces one of the world’s biggest budget deficits this year.
The Gulf nation sent a request for proposals to banks seeking to offer a benchmark-size issue, the people said, asking not to be identified because the discussions are private. Benchmark typically means at least $500 million equivalent.
The sale may include a mix of conventional bonds and Islamic securities known as sukuk, the people said.
The kingdom is under fiscal strain despite a $10 billion bailout package from its wealthier neighbours received in 2018.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
#AbuDhabi's Waha Capital unveils income focused Islamic fund | ZAWYA MENA Edition
Abu Dhabi's Waha Capital unveils income focused Islamic fund | ZAWYA MENA Edition:
Abu Dhabi-based investment company Waha Capital has launched an open-ended, Shariah-compliant, income generating Islamic fund.
The new fund - Waha Islamic Income Fund SP – will invest in Shariah-compliant assets across sukuk and equity markets and is expected to attract more than $500 million.
Amr AlMenhali, CEO of Waha Capital, said: “While our existing funds have some Shariah-compliant elements in them, there has been a steadily growing demand from our existing clients over the past couple of years for us to develop such a fully-fledged Islamic fund.”
“The new fund will be well received because it avoids investment in prohibited or controversial activities or assets and business sectors that may be considered as particularly risky or potentially volatile. It will also only invest in entities that have relatively low gearing,” AlMenhali added.
Abu Dhabi-based investment company Waha Capital has launched an open-ended, Shariah-compliant, income generating Islamic fund.
The new fund - Waha Islamic Income Fund SP – will invest in Shariah-compliant assets across sukuk and equity markets and is expected to attract more than $500 million.
Amr AlMenhali, CEO of Waha Capital, said: “While our existing funds have some Shariah-compliant elements in them, there has been a steadily growing demand from our existing clients over the past couple of years for us to develop such a fully-fledged Islamic fund.”
“The new fund will be well received because it avoids investment in prohibited or controversial activities or assets and business sectors that may be considered as particularly risky or potentially volatile. It will also only invest in entities that have relatively low gearing,” AlMenhali added.
#UAE commercial property market to take a hit as office work is changing | ZAWYA MENA Edition
UAE commercial property market to take a hit as office work is changing | ZAWYA MENA Edition:
With coronavirus cases still being reported and many offices continuing the work from home (WFH) policy , the commercial real estate sector in the UAE could face some pressure next year, an industry expert said.
Since the lockdown in March, when concerned bosses sent masses of employees home, many offices around the country remain mostly empty. Those with client-facing businesses have indeed returned after the restrictions have eased but work from home remains a key trend, and there’s a likelihood of tenants scaling back or changing their office requirements in 2021.
“There will be pressure on the commercial sector in 2021 as leases come up for renewal. In the assets that we manage, we only have a few tenants seeking relief from us. We have some large tenants who still have yet to return to their offices on any great degree. When the lease comes up for renewal [next year], they might reconsider if they need so much space if they’ve managed to work from home,” John Stevens, managing director of property manager Asteco, said during a recent webinar.
Stevens noted that while there isn’t necessarily a rush going on in the UAE to scale back office space, there have already been “a number” of commercial tenants who have opted to send jobs offshore. Other tenants that provide client-facing services are back, but workstations have undergone some changes, such as the installation of partitions and protective screens.
With coronavirus cases still being reported and many offices continuing the work from home (WFH) policy , the commercial real estate sector in the UAE could face some pressure next year, an industry expert said.
Since the lockdown in March, when concerned bosses sent masses of employees home, many offices around the country remain mostly empty. Those with client-facing businesses have indeed returned after the restrictions have eased but work from home remains a key trend, and there’s a likelihood of tenants scaling back or changing their office requirements in 2021.
“There will be pressure on the commercial sector in 2021 as leases come up for renewal. In the assets that we manage, we only have a few tenants seeking relief from us. We have some large tenants who still have yet to return to their offices on any great degree. When the lease comes up for renewal [next year], they might reconsider if they need so much space if they’ve managed to work from home,” John Stevens, managing director of property manager Asteco, said during a recent webinar.
Stevens noted that while there isn’t necessarily a rush going on in the UAE to scale back office space, there have already been “a number” of commercial tenants who have opted to send jobs offshore. Other tenants that provide client-facing services are back, but workstations have undergone some changes, such as the installation of partitions and protective screens.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Middle East, Gulf Stocks: Latest News on Equity, Stock Trading for August 30 - Bloomberg
Middle East, Gulf Stocks: Latest News on Equity, Stock Trading for August 30 - Bloomberg:
Most Middle Eastern equity markets advanced on Sunday, with major gauges heading for the best monthly performance since April amid growing optimism regarding a coronavirus vaccine and higher oil prices.
The main indexes in Dubai, Abu Dhabi, Saudi Arabia and Qatar were all headed to the best monthly advance in four months, with Dubai’s DFM General Index leading the increase at 11%. Kuwait’s gauge was poised for the biggest increase since March 2019.
Gauges in the region are catching up with gains for emerging-market stocks and currencies last week amid progress toward a vaccine and after the U.S. and China said they remained committed to the phase-one trade deal. Crude prices also climbed as U.S. Gulf Coast refineries began restarting after Hurricane Laura.
“Going forward, equity markets are likely to continue their upward trend, encouraged by the liquidity packages being rolled out by central banks and hopes of potential vaccines to treat Covid-19,” said Iyad Abu Hweij, the managing partner at Allied Investment Partners PJSC in Dubai.
Most Middle Eastern equity markets advanced on Sunday, with major gauges heading for the best monthly performance since April amid growing optimism regarding a coronavirus vaccine and higher oil prices.
The main indexes in Dubai, Abu Dhabi, Saudi Arabia and Qatar were all headed to the best monthly advance in four months, with Dubai’s DFM General Index leading the increase at 11%. Kuwait’s gauge was poised for the biggest increase since March 2019.
Gauges in the region are catching up with gains for emerging-market stocks and currencies last week amid progress toward a vaccine and after the U.S. and China said they remained committed to the phase-one trade deal. Crude prices also climbed as U.S. Gulf Coast refineries began restarting after Hurricane Laura.
“Going forward, equity markets are likely to continue their upward trend, encouraged by the liquidity packages being rolled out by central banks and hopes of potential vaccines to treat Covid-19,” said Iyad Abu Hweij, the managing partner at Allied Investment Partners PJSC in Dubai.
Saturday 29 August 2020
#UAE scraps Israel boycott in new step towards normal ties - Reuters
UAE scraps Israel boycott in new step towards normal ties - Reuters:
The president of the United Arab Emirates scrapped an economic boycott against Israel, allowing trade and financial agreements between the countries in another key step towards normal ties, the UAE’s state news agency reported on Saturday.
Israel and the UAE said on Aug. 13 they would normalise diplomatic relations in a deal brokered by U.S. President Donald Trump that reshapes the order of Middle East politics from the Palestinian issue to the fight against Iran.
President Khalifa bin Zayed Al Nahyan issued a decree abolishing a boycott law as part of “the UAE’s efforts to expand diplomatic and commercial cooperation with Israel, leading to bilateral relations by stimulating economic growth and promoting technological innovation,” the WAM news agency said.
Israeli Foreign Minister Gabi Ashkenazi said the UAE had taken “an important step towards peace, which will yield substantial economic and commercial achievements for both people while strengthening the stability in the region.”
The announcement came as Israeli flag carrier El Al Israel Airlines Ltd (ELAL.TA) prepared to operate the country’s first direct flight between Tel Aviv’s Ben Gurion Airport and the UAE’s capital, Abu Dhabi.
The president of the United Arab Emirates scrapped an economic boycott against Israel, allowing trade and financial agreements between the countries in another key step towards normal ties, the UAE’s state news agency reported on Saturday.
Israel and the UAE said on Aug. 13 they would normalise diplomatic relations in a deal brokered by U.S. President Donald Trump that reshapes the order of Middle East politics from the Palestinian issue to the fight against Iran.
President Khalifa bin Zayed Al Nahyan issued a decree abolishing a boycott law as part of “the UAE’s efforts to expand diplomatic and commercial cooperation with Israel, leading to bilateral relations by stimulating economic growth and promoting technological innovation,” the WAM news agency said.
Israeli Foreign Minister Gabi Ashkenazi said the UAE had taken “an important step towards peace, which will yield substantial economic and commercial achievements for both people while strengthening the stability in the region.”
The announcement came as Israeli flag carrier El Al Israel Airlines Ltd (ELAL.TA) prepared to operate the country’s first direct flight between Tel Aviv’s Ben Gurion Airport and the UAE’s capital, Abu Dhabi.
#Emirates, #Etihad and #Qatar: graphing return to normality
Emirates, Etihad and Qatar: graphing return to normality:
Big three of the Middle East – Emirates, Etihad Airways and Qatar Airways – are amongst the best known airlines in the world and amongst the biggest rivals. COVID-19 epidemic only exemplified this rivalry, as each airline strived to announce a return to their pre-pandemic destinations. But how did their efforts fare against each other?
On March 25, 2020, Etihad Airways announced the suspension of their passenger services. A day later, Emirates airline operated their last pre-lockdown flight. For these two, the next months were full of cargo hauling and occasional repatriation flights, mostly employing airliners as impromptu transporters.
Qatar Airways went the other route. They reduced flight numbers by over two-thirds, but did not stop operations altogether, using remains of scheduled flights to fly home people who got stranded abroad, bring medical supplies and haul cargo – and sometimes, all of this together. As a result, come April, the airline proudly announced briefly becoming the world's biggest airline, accounting for 17.8% of the global market.
Big three of the Middle East – Emirates, Etihad Airways and Qatar Airways – are amongst the best known airlines in the world and amongst the biggest rivals. COVID-19 epidemic only exemplified this rivalry, as each airline strived to announce a return to their pre-pandemic destinations. But how did their efforts fare against each other?
On March 25, 2020, Etihad Airways announced the suspension of their passenger services. A day later, Emirates airline operated their last pre-lockdown flight. For these two, the next months were full of cargo hauling and occasional repatriation flights, mostly employing airliners as impromptu transporters.
Qatar Airways went the other route. They reduced flight numbers by over two-thirds, but did not stop operations altogether, using remains of scheduled flights to fly home people who got stranded abroad, bring medical supplies and haul cargo – and sometimes, all of this together. As a result, come April, the airline proudly announced briefly becoming the world's biggest airline, accounting for 17.8% of the global market.
#UAE Formally Ends Israel Boycott Amid US-brokered Deal - Bloomberg
UAE Formally Ends Israel Boycott Amid US-brokered Deal - Bloomberg:
The ruler of the United Arab Emirates issued Saturday a decree formally ending the country's boycott of Israel amid a U.S.-brokered deal to normalize relations between the two countries.
The state-run WAM news agency said the move was made on the orders of Sheikh Khalifa bin Zayed Al Nahyan, the ruler of Abu Dhabi and the Emirates' leader.
WAM said the new decree allows Israelis and Israeli firms to do business in the UAE, a federation of seven sheikhdoms on the Arabian Peninsula. It also allows for the purchase and trade of Israeli goods.
“The decree of the new law comes within the UAE’s efforts to expand diplomatic and commercial cooperation with Israel,” WAM said. It lays out “a roadmap toward launching joint cooperation, leading to bilateral relations by stimulating economic growth and promoting technological innovation.”
The ruler of the United Arab Emirates issued Saturday a decree formally ending the country's boycott of Israel amid a U.S.-brokered deal to normalize relations between the two countries.
The state-run WAM news agency said the move was made on the orders of Sheikh Khalifa bin Zayed Al Nahyan, the ruler of Abu Dhabi and the Emirates' leader.
WAM said the new decree allows Israelis and Israeli firms to do business in the UAE, a federation of seven sheikhdoms on the Arabian Peninsula. It also allows for the purchase and trade of Israeli goods.
“The decree of the new law comes within the UAE’s efforts to expand diplomatic and commercial cooperation with Israel,” WAM said. It lays out “a roadmap toward launching joint cooperation, leading to bilateral relations by stimulating economic growth and promoting technological innovation.”
#Kuwait equities attractively priced as country embarks on structural changes | ZAWYA MENA Edition
Kuwait equities attractively priced as country embarks on structural changes | ZAWYA MENA Edition:
The decision by MSCI to postpone the reclassification of Kuwait indices from frontier market status to emerging market, and developments in the country since the coronavirus crisis started, means Kuwaiti equities are attractively priced.
This is the view of the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8), a UCITS compliant Exchange Traded Fund domiciled in Ireland which tracks the FTSE Kuwait All Cap 15% Capped Index, an index of large, mid and small cap securities trading on the premier or main market of Kuwait Stock Exchange.
Abdullah Al-Busairi, director of KMEFIC FTSE Kuwait ETF, commented: “The postponement of MSCI’s upgrade for Kuwait to emerging market status was a blessing in disguise as it has allowed Kuwaiti firms time to stabilize prior to the inclusion of major new investor inflows.
“This, combined with the fact that Kuwait has seemingly been successful so far in controlling the pandemic and is now slowly opening the economy back up, means Kuwait equity prices are very competitively priced. Even so, buying pressure will slowly ramp up again prior to the emerging market status upgrade in November.”
The decision by MSCI to postpone the reclassification of Kuwait indices from frontier market status to emerging market, and developments in the country since the coronavirus crisis started, means Kuwaiti equities are attractively priced.
This is the view of the KMEFIC FTSE Kuwait Equity UCITS ETF (KUW8), a UCITS compliant Exchange Traded Fund domiciled in Ireland which tracks the FTSE Kuwait All Cap 15% Capped Index, an index of large, mid and small cap securities trading on the premier or main market of Kuwait Stock Exchange.
Abdullah Al-Busairi, director of KMEFIC FTSE Kuwait ETF, commented: “The postponement of MSCI’s upgrade for Kuwait to emerging market status was a blessing in disguise as it has allowed Kuwaiti firms time to stabilize prior to the inclusion of major new investor inflows.
“This, combined with the fact that Kuwait has seemingly been successful so far in controlling the pandemic and is now slowly opening the economy back up, means Kuwait equity prices are very competitively priced. Even so, buying pressure will slowly ramp up again prior to the emerging market status upgrade in November.”
Friday 28 August 2020
Oil prices dip as producers, refiners avoid worst of hurricane - Reuters
Oil prices dip as producers, refiners avoid worst of hurricane - Reuters:
Oil prices inched lower on Friday as Hurricane Laura passed the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage and companies began to restart operations.
Brent crude futures LCOc1 for October fell 4 cents to settle at $45.05 a barrel, before expiring on Friday. U.S. West Texas Intermediate (WTI) crude CLc1 fell 7 cents to $42.97 a barrel.
Both benchmarks notched weekly gains of about 1.5%, with WTI rising for a fourth straight week. The benchmarks hit five-month highs during the week as U.S. producers cut crude output ahead of Laura at a rate close to the level of 2005’s Hurricane Katrina.
“The oil trade has been featured by strong advances at the start of the week as a sizable amount of storm premium was pumped into the market ahead of Hurricane Laura, followed by a major erasure of hurricane premium following the storm’s arrival as limited impact on offshore crude production or refinery activity was indicated,” said Jim Ritterbusch, president of Ritterbusch and Associates.
Oil prices inched lower on Friday as Hurricane Laura passed the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage and companies began to restart operations.
Brent crude futures LCOc1 for October fell 4 cents to settle at $45.05 a barrel, before expiring on Friday. U.S. West Texas Intermediate (WTI) crude CLc1 fell 7 cents to $42.97 a barrel.
Both benchmarks notched weekly gains of about 1.5%, with WTI rising for a fourth straight week. The benchmarks hit five-month highs during the week as U.S. producers cut crude output ahead of Laura at a rate close to the level of 2005’s Hurricane Katrina.
“The oil trade has been featured by strong advances at the start of the week as a sizable amount of storm premium was pumped into the market ahead of Hurricane Laura, followed by a major erasure of hurricane premium following the storm’s arrival as limited impact on offshore crude production or refinery activity was indicated,” said Jim Ritterbusch, president of Ritterbusch and Associates.
Oil edges lower as U.S. producers, refiners avoid worst of storm - Reuters
Oil edges lower as U.S. producers, refiners avoid worst of storm - Reuters:
Oil prices edged lower on Friday as storm Laura past the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage to refineries.
Brent crude LCOc1 futures for October, set to expire on Friday, was down 7 cents to $44.99 a barrel by 1154 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 3 cents to $43.01 a barrel.
“With the U.S. Gulf hurricanes out of the way and preliminary assessment showing no damage to the upstream or downstream facilities, crude has surrendered most of the storm premium and could enter a holding pattern again,” said Vandana Hari, oil market analyst at Vanda Insights.
Oil prices edged lower on Friday as storm Laura past the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage to refineries.
Brent crude LCOc1 futures for October, set to expire on Friday, was down 7 cents to $44.99 a barrel by 1154 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 3 cents to $43.01 a barrel.
“With the U.S. Gulf hurricanes out of the way and preliminary assessment showing no damage to the upstream or downstream facilities, crude has surrendered most of the storm premium and could enter a holding pattern again,” said Vandana Hari, oil market analyst at Vanda Insights.
Investors awaiting launch of #Saudi derivatives market next week | ZAWYA MENA Edition
Investors awaiting launch of Saudi derivatives market next week | ZAWYA MENA Edition:
The Saudi Stock Exchange (Tadawul) is close to launching the Derivatives Market to start trading of the kingdom's first exchange-traded derivatives product.
Many market analysts affirmed the launch, set to take place on Sunday, 30 August, will considerably benefit the Saudi stock market, being a new investment opportunity. It will enhance the market's efficacy, emphasise its robustness while creating an attractive investment scene for foreign investors.
The financial derivatives market will offer investors a comprehensive and diversified range of investment products and services.
It was necessary to roll out invaluable investment products for both international and local segments after competent foreign investors directly entered the Saudi market and joined emerging markets indices, member of the Saudi Economic Association, Saad Al Thaqfaan, told Mubasher.
The Saudi Stock Exchange (Tadawul) is close to launching the Derivatives Market to start trading of the kingdom's first exchange-traded derivatives product.
Many market analysts affirmed the launch, set to take place on Sunday, 30 August, will considerably benefit the Saudi stock market, being a new investment opportunity. It will enhance the market's efficacy, emphasise its robustness while creating an attractive investment scene for foreign investors.
The financial derivatives market will offer investors a comprehensive and diversified range of investment products and services.
It was necessary to roll out invaluable investment products for both international and local segments after competent foreign investors directly entered the Saudi market and joined emerging markets indices, member of the Saudi Economic Association, Saad Al Thaqfaan, told Mubasher.
Oil lower as U.S. producers, refiners avoid worst of storm - Reuters
Oil lower as U.S. producers, refiners avoid worst of storm - Reuters:
Oil prices fell on Friday as storm Laura raced inland past the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage to refineries.
Brent crude LCOc1 futures for October, set to expire on Friday, had fallen 19 cents to $44.90 a barrel by 0815 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 20 cents to $42.84 a barrel.
“With the U.S. Gulf hurricanes out of the way and preliminary assessment showing no damage to the upstream or downstream facilities, crude has surrendered most of the storm premium and could enter a holding pattern again,” said Vandana Hari, oil market analyst at Vanda Insights.
Oil prices fell on Friday as storm Laura raced inland past the heart of the U.S. oil industry in Louisiana and Texas without causing any widespread damage to refineries.
Brent crude LCOc1 futures for October, set to expire on Friday, had fallen 19 cents to $44.90 a barrel by 0815 GMT.
U.S. West Texas Intermediate (WTI) crude CLc1 futures were down 20 cents to $42.84 a barrel.
“With the U.S. Gulf hurricanes out of the way and preliminary assessment showing no damage to the upstream or downstream facilities, crude has surrendered most of the storm premium and could enter a holding pattern again,” said Vandana Hari, oil market analyst at Vanda Insights.
Thursday 27 August 2020
EV Maker XPeng Climbs 41% in Debut After $1.5 Billion IPO - Bloomberg
EV Maker XPeng Climbs 41% in Debut After $1.5 Billion IPO - Bloomberg:
Chinese electric-car startup XPeng Inc. rose 41% in its trading debut after raising $1.5 billion in a U.S. initial public offering.
XPeng’s American depositary shares closed at $21.22 in New York trading Thursday after rising as much as 67% earlier in the day. The company, with a market value of about $15 billion, sold 99.7 million shares Wednesday for $15 each after expanding the size of its offering and pricing the shares above a marketed range.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. Li’s shares, which fell 17% Wednesday, are still up 69% from its offer price.
XPeng Vice Chairman Brian Gu said competition among electric vehicle makers is helping speed their adoption.
Chinese electric-car startup XPeng Inc. rose 41% in its trading debut after raising $1.5 billion in a U.S. initial public offering.
XPeng’s American depositary shares closed at $21.22 in New York trading Thursday after rising as much as 67% earlier in the day. The company, with a market value of about $15 billion, sold 99.7 million shares Wednesday for $15 each after expanding the size of its offering and pricing the shares above a marketed range.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. Li’s shares, which fell 17% Wednesday, are still up 69% from its offer price.
XPeng Vice Chairman Brian Gu said competition among electric vehicle makers is helping speed their adoption.
Top #Dubai, Israeli Banks in Cooperation Talks After Peace Deal - Bloomberg
Top Dubai, Israeli Banks in Cooperation Talks After Peace Deal - Bloomberg:
The biggest banks in Dubai and Israel are in talks to cooperate following this month’s landmark peace agreement between the Jewish state and the United Arab Emirates.
Discussions between Bank Leumi and Emirates NBD Bank PJSC are at an early stage and no final decisions have been made, according to a person familiar with the matter, who asked not to be identified because the matter is private. The person declined to give further details.
While Shmulik Arbel, head of Leumi’s corporate division, said on a conference call on Thursday that the Tel Aviv-based lender is in cooperation negotiations with a “leading bank in Dubai,” he didn’t identify the company. Leumi and Emirates NBD declined to comment.
A deal would be the first commercial cooperation between Israeli and UAE banks since the countries announced on Aug. 13 that they reached a U.S.-brokered agreement to begin normalizing relations. Talks between various parties from startups to airlines have already started as investors prepare for what could be an economic boon for both sides as they end decades of hostility.
The biggest banks in Dubai and Israel are in talks to cooperate following this month’s landmark peace agreement between the Jewish state and the United Arab Emirates.
Discussions between Bank Leumi and Emirates NBD Bank PJSC are at an early stage and no final decisions have been made, according to a person familiar with the matter, who asked not to be identified because the matter is private. The person declined to give further details.
While Shmulik Arbel, head of Leumi’s corporate division, said on a conference call on Thursday that the Tel Aviv-based lender is in cooperation negotiations with a “leading bank in Dubai,” he didn’t identify the company. Leumi and Emirates NBD declined to comment.
A deal would be the first commercial cooperation between Israeli and UAE banks since the countries announced on Aug. 13 that they reached a U.S.-brokered agreement to begin normalizing relations. Talks between various parties from startups to airlines have already started as investors prepare for what could be an economic boon for both sides as they end decades of hostility.
FTSE Russell launches local currency #Saudi government bond index | ZAWYA MENA Edition
FTSE Russell launches local currency Saudi government bond index | ZAWYA MENA Edition:
Global index provider FTSE Russell said on Thursday it had launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, a move which could lead to new inflows to the Saudi market.
The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of 1 billion riyals ($266.65 million). Sukuk are Islamic bonds.
Riyadh's government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).
As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, according to the FTSE statement.
Global index provider FTSE Russell said on Thursday it had launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, a move which could lead to new inflows to the Saudi market.
The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of 1 billion riyals ($266.65 million). Sukuk are Islamic bonds.
Riyadh's government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).
As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, according to the FTSE statement.
Chinese EV maker Xpeng shares jump 54% in NYSE debut - Reuters
Chinese EV maker Xpeng shares jump 54% in NYSE debut - Reuters:
Chinese electric vehicle maker Xpeng Inc’s shares jumped 54% in their debut on the New York Stock Exchange on Thursday, after raising $1.5 billion in its upsized initial public offering.
Shares of Xpeng, which counts Chinese e-commerce titan Alibaba and Xiaomi Corp among its backers, opened at $23.10 per American Depositary Share (ADS), up from the raised offer price of $15 per ADS.
Chinese electric vehicle maker Xpeng Inc’s shares jumped 54% in their debut on the New York Stock Exchange on Thursday, after raising $1.5 billion in its upsized initial public offering.
Shares of Xpeng, which counts Chinese e-commerce titan Alibaba and Xiaomi Corp among its backers, opened at $23.10 per American Depositary Share (ADS), up from the raised offer price of $15 per ADS.
Oil prices slip as Hurricane Laura's blow unlikely to have sustained impact - Reuters
Oil prices slip as Hurricane Laura's blow unlikely to have sustained impact - Reuters:
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Brent crude LCOc1 futures for October, which expire on Friday, fell 55 cents, or 1.2%, to settle at $45.09 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 35 cents or 0.8% to $43.04 a barrel.
The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.
Oil producers on Tuesday had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities.
Oil prices eased on Thursday as the market expected a quick recovery for production platforms shuttered ahead of a hurricane that churned through the Gulf of Mexico and slammed Louisiana.
Brent crude LCOc1 futures for October, which expire on Friday, fell 55 cents, or 1.2%, to settle at $45.09 a barrel. U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 35 cents or 0.8% to $43.04 a barrel.
The storm hit Louisiana early Thursday with 150 mile-per-hour (240 kph) winds, damaging buildings, knocking down trees and cutting power to more than 400,000 people in Louisiana and Texas. Its storm surge was less than predicted, sparing inland plants from feared flooding.
Oil producers on Tuesday had shut 1.56 million barrels per day (bpd) of crude output, or 84% of the Gulf of Mexico’s production, evacuating 310 offshore facilities.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
RPT-Defying economic gloom, #Iran's oil firms propel bourse to record high - Reuters
RPT-Defying economic gloom, Iran's oil firms propel bourse to record high - Reuters:
The coronavirus crisis, an oil price shock and crippling U.S. sanctions on Iran’s energy and banking sectors have brought the country’s economy to its knees. Yet the Tehran Stock Exchange is home to one of the top performing equity indexes in the world.
Iran’s benchmark TSE index (TEDPIX) has soared 330% since the start of the year in local currency terms thanks to a breathtaking rally in oil firms, refineries and the petrochemical industry - accounting for more than a third of the top 30 companies.
The steep ascent, however, may have little to do with confidence in the country’s future. Instead, it mirrors events in Venezuela and Zimbabwe, where indexes have surged more than 400% in local terms amid rising inflation and capital controls.
“Stock market gains in Iran should not be viewed as a signal of economic stabilisation, but rather a reflection of hyperinflation and trapped capital, more akin to Zimbabwe than Russia or Saudi Arabia,” said Hasnain Malik, head of equity research at Tellimer.
The coronavirus crisis, an oil price shock and crippling U.S. sanctions on Iran’s energy and banking sectors have brought the country’s economy to its knees. Yet the Tehran Stock Exchange is home to one of the top performing equity indexes in the world.
Iran’s benchmark TSE index (TEDPIX) has soared 330% since the start of the year in local currency terms thanks to a breathtaking rally in oil firms, refineries and the petrochemical industry - accounting for more than a third of the top 30 companies.
The steep ascent, however, may have little to do with confidence in the country’s future. Instead, it mirrors events in Venezuela and Zimbabwe, where indexes have surged more than 400% in local terms amid rising inflation and capital controls.
“Stock market gains in Iran should not be viewed as a signal of economic stabilisation, but rather a reflection of hyperinflation and trapped capital, more akin to Zimbabwe than Russia or Saudi Arabia,” said Hasnain Malik, head of equity research at Tellimer.
Sovereign wealth funds stampede into stocks outside the U.S. - Reuters
Sovereign wealth funds stampede into stocks outside the U.S. - Reuters:
Sovereign wealth funds poured a net $7.1 billion into stocks during the second quarter, the most in several years, with the bulk outside the United States, data showed on Thursday.
The funds also pulled a net $5.2 billion out of fixed income during that period, the most since the first quarter of 2019, according to the eVestment data on strategies managed by third-party fund managers.
Global large-cap growth equity strategies took in the most investment during the quarter, a net $6 billion. U.S. equity strategies pulled in only a net $704 million during that time.
That was far short of the flows into U.S. equities in the first quarter as the coronavirus spread around the world.
Sovereign wealth funds poured a net $7.1 billion into stocks during the second quarter, the most in several years, with the bulk outside the United States, data showed on Thursday.
The funds also pulled a net $5.2 billion out of fixed income during that period, the most since the first quarter of 2019, according to the eVestment data on strategies managed by third-party fund managers.
Global large-cap growth equity strategies took in the most investment during the quarter, a net $6 billion. U.S. equity strategies pulled in only a net $704 million during that time.
That was far short of the flows into U.S. equities in the first quarter as the coronavirus spread around the world.
EV Maker XPeng Raising $1.5 Billion in Expanded, Above-Range IPO - Bloomberg
EV Maker XPeng Raising $1.5 Billion in Expanded, Above-Range IPO - Bloomberg:
Chinese electric-car startup XPeng Inc. is raising about $1.5 billion in a U.S. initial public offering, expanding the size of its share sale and pricing the shares above a marketed range.
The company is selling 99.7 million American depositary shares on for $15 each, based on a filing Wednesday with the U.S. Securities and Exchange Commission. The Guangzhou-based company had marketed 85 million shares for $11 to $13 apiece. The company will be valued in the offering at $10.8 billion based on the outstanding shares listed in its filings.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. The stock has since more than doubled from its offer price.
For the six months ended June 30, XPeng said it had a net loss of $113 million on revenue of $142 million. XPeng delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the company’s filings. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filings.
Chinese electric-car startup XPeng Inc. is raising about $1.5 billion in a U.S. initial public offering, expanding the size of its share sale and pricing the shares above a marketed range.
The company is selling 99.7 million American depositary shares on for $15 each, based on a filing Wednesday with the U.S. Securities and Exchange Commission. The Guangzhou-based company had marketed 85 million shares for $11 to $13 apiece. The company will be valued in the offering at $10.8 billion based on the outstanding shares listed in its filings.
Strong share price gains this year by Tesla Inc. and NIO Inc. have stoked investor demand in the electric vehicles sector and prompted similar companies to go public. Li Auto Inc., another Chinese EV startup, increased the size of its U.S. IPO in July to raise $1.26 billion including the so-called greenshoe shares. The stock has since more than doubled from its offer price.
For the six months ended June 30, XPeng said it had a net loss of $113 million on revenue of $142 million. XPeng delivered 18,741 of its first vehicle, the G3 SUV, through July 31, according to the company’s filings. It started deliveries of its second model, the P7 sedan, in May, shipping 1,966 units by July 31, according to its filings.
Guangzhou-based XPeng closed its latest funding round for a total of $900 million, according to its filings. Qatar Investment Authority put in $100 million, while Abu Dhabi’s Mubadala invested another $100 million, the company said in the prospectus. Alibaba Group Holding Ltd. also contributed $215 million, boosting its investment in XPeng.
#Saudi Aramco Appoints New CEO for $500 Million Investment Arm - Bloomberg
Saudi Aramco Appoints New CEO for $500 Million Investment Arm - Bloomberg:
Saudi Aramco appointed a new chief executive officer to run its $500 million venture capital and investments arm after the previous head departed, according to people with knowledge of the situation.
Mahdi Aladel, who formerly led the state energy producer’s base oils and lubricants division, will take over as CEO of Saudi Aramco Energy Ventures LLC, according to the people, who asked not to be identified because the information hasn’t been made public. A LinkedIn page appearing to belong to Aladel said he’d started the new role this month.
Aramco is the world’s biggest oil exporter and provides most of the income for the Persian Gulf kingdom. SAEV invests in early-stage oil, gas, renewable and chemicals technologies that can potentially benefit the parent company. SAEV generally spends several million to tens of millions of dollars on each acquisition, focusing on companies developing drilling techniques, chemical applications or blockchain-based trading.
Saudi Aramco appointed a new chief executive officer to run its $500 million venture capital and investments arm after the previous head departed, according to people with knowledge of the situation.
Mahdi Aladel, who formerly led the state energy producer’s base oils and lubricants division, will take over as CEO of Saudi Aramco Energy Ventures LLC, according to the people, who asked not to be identified because the information hasn’t been made public. A LinkedIn page appearing to belong to Aladel said he’d started the new role this month.
Aramco is the world’s biggest oil exporter and provides most of the income for the Persian Gulf kingdom. SAEV invests in early-stage oil, gas, renewable and chemicals technologies that can potentially benefit the parent company. SAEV generally spends several million to tens of millions of dollars on each acquisition, focusing on companies developing drilling techniques, chemical applications or blockchain-based trading.
Middle East Economies: Gulf States Head Deeper Into Deflation as Pandemic Grips - Bloomberg
Middle East Economies: Gulf States Head Deeper Into Deflation as Pandemic Grips - Bloomberg:
The world’s steepest deflation is set to linger across Gulf Arab states as the coronavirus pandemic broadens a slump in prices that started with a downturn in their housing markets.
Price declines in Qatar, Bahrain and the United Arab Emirates are currently the biggest among more than 80 countries tracked on Bloomberg’s Global Economy Watch. Oman, another of the six members of the Gulf Cooperation Council, isn’t far behind. Inflation has been positive in Kuwait and recently picked up in Saudi Arabia after it tripled its value-added tax.
The world’s steepest deflation is set to linger across Gulf Arab states as the coronavirus pandemic broadens a slump in prices that started with a downturn in their housing markets.
Price declines in Qatar, Bahrain and the United Arab Emirates are currently the biggest among more than 80 countries tracked on Bloomberg’s Global Economy Watch. Oman, another of the six members of the Gulf Cooperation Council, isn’t far behind. Inflation has been positive in Kuwait and recently picked up in Saudi Arabia after it tripled its value-added tax.
Restrictions imposed to stop the virus have translated into record deflation from Qatar to the UAE as social-distancing rules, job losses and the departure of foreign workers crushed consumer demand. Adding to the drag from housing, a downswing in oil is another challenge for the region’s $1.6 trillion economy, putting it on course for what could be its worst recession on history.
Israeli tech's 'thirst' for #UAE cash must overcome old enmity - Reuters
Israeli tech's 'thirst' for UAE cash must overcome old enmity - Reuters:
A thaw in relations between Israel and the United Arab Emirates has raised expectations of an influx of funding in ‘Silicon Wadi’, Israel’s answer to Silicon Valley.
“The UAE has excess amounts of money, but not enough places to invest it in the Middle East,” said Eldad Tamir, founder and CEO of the Tamir Fishman investment house, one of Israel’s top investment funds.
“The high tech sector here is thirsty for money and having new investors from the UAE will help us diversify a bit from our usual Chinese and American investor.”
But deep-seated animosity towards Israel among some investors could cap inflows, according to investment bankers and fund managers in the UAE, the Middle East’s financial hub.
A thaw in relations between Israel and the United Arab Emirates has raised expectations of an influx of funding in ‘Silicon Wadi’, Israel’s answer to Silicon Valley.
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| Israeli national flags flutter at a business park also housing high tech companies, at Ofer Park in Petah Tikva, Israel August 27, 2020. REUTERS/Ronen Zvulun |
“The UAE has excess amounts of money, but not enough places to invest it in the Middle East,” said Eldad Tamir, founder and CEO of the Tamir Fishman investment house, one of Israel’s top investment funds.
“The high tech sector here is thirsty for money and having new investors from the UAE will help us diversify a bit from our usual Chinese and American investor.”
But deep-seated animosity towards Israel among some investors could cap inflows, according to investment bankers and fund managers in the UAE, the Middle East’s financial hub.
Delivery Hero buys InstaShop to expand in Middle East, North Africa - Reuters
Delivery Hero buys InstaShop to expand in Middle East, North Africa - Reuters:
German online takeaway food group Delivery Hero (DHER.DE) said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Delivery Hero said.
It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.
Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of $360 million. The initial purchase price was $270 million, and the size of the deferred component to InstaShop’s founding team will be dependent on growth and profitability in the future.
German online takeaway food group Delivery Hero (DHER.DE) said on Thursday it is acquiring online grocery service InstaShop after almost doubling its revenues in the first half of 2020.
InstaShop, launched in 2015, operates in the United Arab Emirates, Qatar, Bahrain, Egypt and Lebanon and has an annualised gross merchandise volume of $300 million, Delivery Hero said.
It said the Dubai-based firm would continue to operate as an independent brand under the current leadership.
Berlin-based Delivery Hero said its takeover of InstaShop was based on a valuation of $360 million. The initial purchase price was $270 million, and the size of the deferred component to InstaShop’s founding team will be dependent on growth and profitability in the future.
Oil prices steady as Gulf of Mexico coast braces for Hurricane Laura - Reuters
Oil prices steady as Gulf of Mexico coast braces for Hurricane Laura - Reuters:
Oil prices held steady on Thursday as a massive hurricane in the Gulf of Mexico raced towards the heart of the U.S. oil industry, which has forced oil rigs and refineries to shut down production.
Brent crude LCOc1 futures for October, which expire on Friday, rose 13 cents, or, 0.3% to $45.77 a barrel by 0540 GMT, having fallen 22 cents, or 0.5%, on Wednesday. The more active November Brent contract LCOc2 was up 10 cents at $46.26 per barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures inched up 1 cent to $43.40 a barrel.
The threat from Hurricane Laura has pushed the market higher this week, but the storm is not expected to affect supplies much because oil and product inventories remain high due to the coronavirus pandemic’s hit to fuel demand.
Oil prices held steady on Thursday as a massive hurricane in the Gulf of Mexico raced towards the heart of the U.S. oil industry, which has forced oil rigs and refineries to shut down production.
Brent crude LCOc1 futures for October, which expire on Friday, rose 13 cents, or, 0.3% to $45.77 a barrel by 0540 GMT, having fallen 22 cents, or 0.5%, on Wednesday. The more active November Brent contract LCOc2 was up 10 cents at $46.26 per barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 futures inched up 1 cent to $43.40 a barrel.
The threat from Hurricane Laura has pushed the market higher this week, but the storm is not expected to affect supplies much because oil and product inventories remain high due to the coronavirus pandemic’s hit to fuel demand.
MIDEAST STOCKS-Major Gulf bourses as financials weigh - Reuters
MIDEAST STOCKS-Major Gulf bourses as financials weigh - Reuters:
Financial stocks pressured major indexes in the Gulf in early trade on Thursday, with Saudi British Bank (SABB) weighing on the Saudi index.
The kingdom’s benchmark index eased 0.1%, dragged down by a 1.6% drop in Saudi British Bank and a 0.3% fall in Al Rajhi Bank.
SABB on Tuesday had reported a net loss widened to 6.87 billion riyals ($1.83 billion) in the quarter compared with a loss of 196 million riyals a year earlier, due to an impairment in goodwill worth 7.42 billion riyals.
Dubai’s main share index dropped 0.4%, with its largest lender Emirates NBD falling 2.2%, while developer DAMAC Properties was down 1.3%.
In Abu Dhabi, the index lost 0.3%, hurt by Abu Dhabi Commercial Bank’s 2.1% fall and First Abu Dhabi Bank 0.2% decrease.
The Qatari index slipped 0.2%, weighed by a 0.4% drop in Qatar National Bank and a 0.9% decline in utility firm Qatar Electricity and Water.
Financial stocks pressured major indexes in the Gulf in early trade on Thursday, with Saudi British Bank (SABB) weighing on the Saudi index.
The kingdom’s benchmark index eased 0.1%, dragged down by a 1.6% drop in Saudi British Bank and a 0.3% fall in Al Rajhi Bank.
SABB on Tuesday had reported a net loss widened to 6.87 billion riyals ($1.83 billion) in the quarter compared with a loss of 196 million riyals a year earlier, due to an impairment in goodwill worth 7.42 billion riyals.
Dubai’s main share index dropped 0.4%, with its largest lender Emirates NBD falling 2.2%, while developer DAMAC Properties was down 1.3%.
In Abu Dhabi, the index lost 0.3%, hurt by Abu Dhabi Commercial Bank’s 2.1% fall and First Abu Dhabi Bank 0.2% decrease.
The Qatari index slipped 0.2%, weighed by a 0.4% drop in Qatar National Bank and a 0.9% decline in utility firm Qatar Electricity and Water.
Wednesday 26 August 2020
Oil steadies; virus concerns weigh as hurricane heads to U.S. - Reuters
Oil steadies; virus concerns weigh as hurricane heads to U.S. - Reuters:
Oil prices steadied on Wednesday, pressured by worries about the demand outlook during the coronavirus pandemic but buoyed as U.S. producers shut output in the Gulf of Mexico ahead of Hurricane Laura.
Renewed worries over the pandemic, which has squeezed demand and sent prices to record lows in April, dampened market sentiment after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 fell 22 cents to settle at $45.64 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 4 cents to $43.39 a barrel. Both benchmarks settled at a five-month high on Tuesday.
The U.S. energy industry was preparing for Hurricane Laura, forecast to become a Category 4 hurricane with heavy rains and catastrophic, 130 mile-per-hour (209 kph) winds that will drive ocean waters up to 30 miles (48 km) inland, forecasters said. Nine oil-processing plants that convert nearly 2.9 million barrels per day of oil into fuel, and account for about 15% of U.S. processing, were shutting down.
Oil prices steadied on Wednesday, pressured by worries about the demand outlook during the coronavirus pandemic but buoyed as U.S. producers shut output in the Gulf of Mexico ahead of Hurricane Laura.
Renewed worries over the pandemic, which has squeezed demand and sent prices to record lows in April, dampened market sentiment after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 fell 22 cents to settle at $45.64 a barrel, while U.S. West Texas Intermediate crude CLc1 rose 4 cents to $43.39 a barrel. Both benchmarks settled at a five-month high on Tuesday.
The U.S. energy industry was preparing for Hurricane Laura, forecast to become a Category 4 hurricane with heavy rains and catastrophic, 130 mile-per-hour (209 kph) winds that will drive ocean waters up to 30 miles (48 km) inland, forecasters said. Nine oil-processing plants that convert nearly 2.9 million barrels per day of oil into fuel, and account for about 15% of U.S. processing, were shutting down.
Kingdom Holding CEO Talal Ibrahim Al Maiman Says Everything Is Overvalued - Bloomberg
Kingdom Holding CEO Talal Ibrahim Al Maiman Says Everything Is Overvalued - Bloomberg:
Talal Ibrahim Al Maiman, chief executive officer at Kingdom Holding Co., discusses his investment portfolio, his strategy and where he’s finding opportunities. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Talal Ibrahim Al Maiman, chief executive officer at Kingdom Holding Co., discusses his investment portfolio, his strategy and where he’s finding opportunities. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)
Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters
Oil holds near five-month high on U.S. output cuts, virus concern weighs - Reuters:
Oil edged up towards $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.
Renewed worries over the COVID-19 pandemic, which has squeezed demand and sent prices to record lows in April, limited gains after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 rose 8 cents, or 0.2%, to $45.94 a barrel by 1331 GMT, while U.S. West Texas Intermediate crude CLc1 added 26 cents, or 0.6%, to $43.61. Both benchmarks settled at a five-month high on Tuesday.
“Oil traders will be preoccupied with the hurricane today,” said Tamas Varga of broker PVM. “Once the danger passes, demand considerations will come into focus again.”
Oil edged up towards $46 a barrel on Wednesday, close to its highest since March, lifted by U.S. producers shutting most of their offshore Gulf of Mexico output ahead of Hurricane Laura and a report showing a drop in U.S. crude inventories.
Renewed worries over the COVID-19 pandemic, which has squeezed demand and sent prices to record lows in April, limited gains after reports this week of patients being re-infected, raising concerns about future immunity.
Brent crude LCOc1 rose 8 cents, or 0.2%, to $45.94 a barrel by 1331 GMT, while U.S. West Texas Intermediate crude CLc1 added 26 cents, or 0.6%, to $43.61. Both benchmarks settled at a five-month high on Tuesday.
“Oil traders will be preoccupied with the hurricane today,” said Tamas Varga of broker PVM. “Once the danger passes, demand considerations will come into focus again.”
#UAE, #AbuDhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg
UAE, Abu Dhabi News: NMC Health Faces Fees of $140 Million for Bankruptcy - Bloomberg:
The restructuring of NMC Health Plc through an Abu Dhabi court could cost as much as $140 million in consultancy and legal fees, almost half of what the hospital operator’s administrators are raising in new funding from creditors.
“It’s not cheap and we have the best advisers and the best minds in the world working on the preservation of this business,” acting Chief Executive Officer Michael Davis said in a recent interview. “If you look at the amount of money that has gone to other parties or that the company has lost, this is money well spent.”
NMC’s court-appointed overseers are applying for bankruptcy proceedings through Abu Dhabi Global Markets, the financial center of the United Arab Emirates capital. They’re doing so as the company’s complex legal structure across different geographies makes it more efficient to oversee the process in one jurisdiction, where the bulk of its operations are based.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration. Caretakers Alvarez & Marsal Inc. are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.
The restructuring of NMC Health Plc through an Abu Dhabi court could cost as much as $140 million in consultancy and legal fees, almost half of what the hospital operator’s administrators are raising in new funding from creditors.
“It’s not cheap and we have the best advisers and the best minds in the world working on the preservation of this business,” acting Chief Executive Officer Michael Davis said in a recent interview. “If you look at the amount of money that has gone to other parties or that the company has lost, this is money well spent.”
NMC’s court-appointed overseers are applying for bankruptcy proceedings through Abu Dhabi Global Markets, the financial center of the United Arab Emirates capital. They’re doing so as the company’s complex legal structure across different geographies makes it more efficient to oversee the process in one jurisdiction, where the bulk of its operations are based.
Founded by Indian entrepreneur Bavaguthu Raghuram Shetty, NMC had a peak market value of $10 billion on the London Stock Exchange before the uncovering of billions of dollars of undisclosed debt pushed it into administration. Caretakers Alvarez & Marsal Inc. are now working on a turnaround plan that will see NMC focus on its UAE and Oman domestic markets, while selling non-core international assets.
#Saudi Billionaire’s Firm Eyes Europe With U.S. Stocks Overvalued - Bloomberg
Saudi Billionaire’s Firm Eyes Europe With U.S. Stocks Overvalued - Bloomberg:
The investment firm of Saudi Arabian billionaire Prince Alwaleed bin Talal is looking for deals in Europe because U.S. assets, particularly technology stocks, are seen as overpriced.
“The markets are really exuberant in the United States versus Europe,” Kingdom Holding Chief Executive Officer Talal Al Maiman said in an interview with Bloomberg TV on Wednesday. “Europe is actually a much better place to invest in at this time.”
Al Maiman adds to a growing list of investors including BlackRock Inc. and Manulife Investment Management that are nervous about U.S. equities hitting all-time highs during an economic crisis and an election year.
Prince Alwaleed, who owns 95% of Kingdom Holding, has stakes in Citigroup Inc., ride-hailing firm Lyft Inc., and Accor SA through the investment firm. He has also made several high-profile technology investments, including $250 million into Snap Inc. and $267 million in music-streaming service Deezer in 2018.
The investment firm of Saudi Arabian billionaire Prince Alwaleed bin Talal is looking for deals in Europe because U.S. assets, particularly technology stocks, are seen as overpriced.
“The markets are really exuberant in the United States versus Europe,” Kingdom Holding Chief Executive Officer Talal Al Maiman said in an interview with Bloomberg TV on Wednesday. “Europe is actually a much better place to invest in at this time.”
Al Maiman adds to a growing list of investors including BlackRock Inc. and Manulife Investment Management that are nervous about U.S. equities hitting all-time highs during an economic crisis and an election year.
Prince Alwaleed, who owns 95% of Kingdom Holding, has stakes in Citigroup Inc., ride-hailing firm Lyft Inc., and Accor SA through the investment firm. He has also made several high-profile technology investments, including $250 million into Snap Inc. and $267 million in music-streaming service Deezer in 2018.
MIDEAST STOCKS-Most Gulf bourses fall as financial shares drag; #Saudi up - Reuters
MIDEAST STOCKS-Most Gulf bourses fall as financial shares drag; Saudi up - Reuters:
Most major stock markets in the Gulf ended lower on Wednesday, pressured by losses in financial shares, although the Saudi index bucked the trend to close higher.
Saudi Arabia's benchmark index edged up 0.2%, helped by a 2.2% rise in Banque Saudi Fransi and a 4.1% jump in Sahara International Petrochemical Company.
Elsewhere, Saudi British Bank (SABB) reversed earlier losses to close up 1.6%.
SABB on Tuesday reported a net loss of 6.87 billion riyals ($1.83 billion) in the quarter ended June 30, compared with a loss of 196 million riyals a year earlier.
Dubai's main share index fell 0.7%, with sharia-compliant lender Dubai Islamic Bank losing 1.9% and blue-chip developer Emaar Properties down 1.7%.
In Abu Dhabi, the index dropped 0.6%, dragged down by a 1.2% fall in the country's largest lender First Abu Dhabi Bank and 3.7% slide in Aldar Properties.
Abu Dhabi raised $5 billion through a three-tranche bond offering on Tuesday, the oil-rich Gulf emirate's third foray into the international debt markets this year to prop up its finances following a fall in crude prices.
In Qatar, the index eased 0.1%, hurt by a 0.9% fall in petrochemical firm Industries Qatar and a 0.5% drop in Commercial Bank.
Most major stock markets in the Gulf ended lower on Wednesday, pressured by losses in financial shares, although the Saudi index bucked the trend to close higher.
Saudi Arabia's benchmark index edged up 0.2%, helped by a 2.2% rise in Banque Saudi Fransi and a 4.1% jump in Sahara International Petrochemical Company.
Elsewhere, Saudi British Bank (SABB) reversed earlier losses to close up 1.6%.
SABB on Tuesday reported a net loss of 6.87 billion riyals ($1.83 billion) in the quarter ended June 30, compared with a loss of 196 million riyals a year earlier.
Dubai's main share index fell 0.7%, with sharia-compliant lender Dubai Islamic Bank losing 1.9% and blue-chip developer Emaar Properties down 1.7%.
In Abu Dhabi, the index dropped 0.6%, dragged down by a 1.2% fall in the country's largest lender First Abu Dhabi Bank and 3.7% slide in Aldar Properties.
Abu Dhabi raised $5 billion through a three-tranche bond offering on Tuesday, the oil-rich Gulf emirate's third foray into the international debt markets this year to prop up its finances following a fall in crude prices.
In Qatar, the index eased 0.1%, hurt by a 0.9% fall in petrochemical firm Industries Qatar and a 0.5% drop in Commercial Bank.
#AbuDhabi Returns to Debt Market With Longest Gulf Bond Ever - Bloomberg
Abu Dhabi Returns to Debt Market With Longest Gulf Bond Ever - Bloomberg:
Abu Dhabi returned to the dollar debt market, selling the longest bond ever offered by Gulf Arab governments as countries in the region raise cash buffers to weather the pandemic and low oil prices.
The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.
The government is taking advantage of low borrowing costs and investor demand for higher returns as it seeks to bolster its finances, with oil prices below what it needs to balance its budget. The wealthiest of the seven emirates that make up the UAE, its debt is rated AA by S&P Global Ratings.
Abu Dhabi returned to the dollar debt market, selling the longest bond ever offered by Gulf Arab governments as countries in the region raise cash buffers to weather the pandemic and low oil prices.
The capital of the United Arab Emirates raised $5 billion from a three-part offering, according to a person familiar with the matter, who isn’t authorized to speak publicly and asked not to be identified. Abu Dhabi offered a yield of 65 basis points over U.S. Treasuries on $2 billion of notes due September 2023, 105 basis points for its $1.5 billion in long 10-year securities and 2.7% for $1.5 billion in bonds due in half a century, which will be its longest yet. Final pricing on all three tranches was lower than initial guidance.
The government is taking advantage of low borrowing costs and investor demand for higher returns as it seeks to bolster its finances, with oil prices below what it needs to balance its budget. The wealthiest of the seven emirates that make up the UAE, its debt is rated AA by S&P Global Ratings.
GCC corporate earnings plunge 60.7% in Q2 | ZAWYA MENA Edition
GCC corporate earnings plunge 60.7% in Q2 | ZAWYA MENA Edition:
Combined profit of most GCC-listed companies plummeted 60.7 per cent year-on-year in the second quarter 2020 to $15.7 billion as compared to $39.9 billion in the same 2019 period, reflecting the impact of the Covid-19 lockdown, a study by Kamco Invest has revealed.
In terms of quarter-on-quarter performance, earnings of 55 per cent of the listed companies that reported their second-quarter performance declined by 38.8 per cent in the second quarter. "The decline in earnings was broad-based as all of the GCC exchanges reported a year-on-year decline," said Mohamed Ali Omar, analyst at Kamco Invest.
The International Monetary Fund said the economy of the six GCC member countries will shrink by 7.6 per cent in 2020 amid low oil prices and the coronavirus outbreak.
A recent report by S&P Global Ratings said the key focus for GCC corporates would be on preservation rather than growth. A sharp drop in oil prices and a negative impact from Covid-19 measures have been weighing on corporates in the region and worldwide. New investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimisation, management of liquidity, and cash-flow preservation, the ratings agency said.
Combined profit of most GCC-listed companies plummeted 60.7 per cent year-on-year in the second quarter 2020 to $15.7 billion as compared to $39.9 billion in the same 2019 period, reflecting the impact of the Covid-19 lockdown, a study by Kamco Invest has revealed.
In terms of quarter-on-quarter performance, earnings of 55 per cent of the listed companies that reported their second-quarter performance declined by 38.8 per cent in the second quarter. "The decline in earnings was broad-based as all of the GCC exchanges reported a year-on-year decline," said Mohamed Ali Omar, analyst at Kamco Invest.
The International Monetary Fund said the economy of the six GCC member countries will shrink by 7.6 per cent in 2020 amid low oil prices and the coronavirus outbreak.
A recent report by S&P Global Ratings said the key focus for GCC corporates would be on preservation rather than growth. A sharp drop in oil prices and a negative impact from Covid-19 measures have been weighing on corporates in the region and worldwide. New investments are expected to take a back seat for most sectors, with the key priorities for businesses being cost optimisation, management of liquidity, and cash-flow preservation, the ratings agency said.
#Qatar's Masraf Al Rayan markets 5-yr dollar sukuk - document - Reuters
Qatar's Masraf Al Rayan markets 5-yr dollar sukuk - document - Reuters:
Qatari Islamic lender Masraf Al Rayan began marketing a five-year U.S. dollar-denominated sukuk on Wednesday, a document showed.
It gave an initial price guidance of 220 basis points over midswaps for the Islamic bonds, the document from one of the banks arranging the deal showed. It is expected to close later on Wednesday.
Al Rayan Investment, Credit Agricole, HSBC, Mizuho, MUFG, QNB Capital, Societe Generale and Standard Chartered were hired to arrange the debt sale.
Qatari Islamic lender Masraf Al Rayan began marketing a five-year U.S. dollar-denominated sukuk on Wednesday, a document showed.
It gave an initial price guidance of 220 basis points over midswaps for the Islamic bonds, the document from one of the banks arranging the deal showed. It is expected to close later on Wednesday.
Al Rayan Investment, Credit Agricole, HSBC, Mizuho, MUFG, QNB Capital, Societe Generale and Standard Chartered were hired to arrange the debt sale.
European, Middle Eastern & African Stocks - Bloomberg #UAE #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters
Brent prices climb on U.S. output cuts, China trade deal hopes - Reuters:
Brent crude oil prices rose on Wednesday, lifted by U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.
But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with COVID-19, raising concerns about future immunity.
Brent crude oil futures LCOc1 added 10 cents, or 0.2%, to $45.96 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude CLc1 fell 5 cents, or 0.1%, to $43.30 a barrel. Both benchmarks settled at a five-month high on Tuesday.
“The hurricane impact is short-term bullish, but that could be short-lived if the damage to the Texas and Louisiana coasts cripples demand for an extended time,” said Edward Moya, senior market analyst at OANDA in New York.
Brent crude oil prices rose on Wednesday, lifted by U.S. producers shutting most of their offshore output in the Gulf of Mexico ahead of Hurricane Laura and optimism over China-U.S. trade talks.
But gains were capped amid renewed concern over the coronavirus pandemic, which has squeezed fuel demand, after reports from Europe and Asia of patients being re-infected with COVID-19, raising concerns about future immunity.
Brent crude oil futures LCOc1 added 10 cents, or 0.2%, to $45.96 a barrel by 0642 GMT, while U.S. West Texas Intermediate crude CLc1 fell 5 cents, or 0.1%, to $43.30 a barrel. Both benchmarks settled at a five-month high on Tuesday.
“The hurricane impact is short-term bullish, but that could be short-lived if the damage to the Texas and Louisiana coasts cripples demand for an extended time,” said Edward Moya, senior market analyst at OANDA in New York.
Tuesday 25 August 2020
Oil hits 5-month highs as U.S. producers cut output ahead of hurricane | Financial Post
Oil hits 5-month highs as U.S. producers cut output ahead of hurricane | Financial Post:
Crude oil prices rose to a five-month high on Tuesday as U.S. producers shut most offshore output in the Gulf of Mexico ahead of Hurricane Laura even as rising coronavirus cases in Asia and Europe capped gains.
Brent futures rose 73 cents, or 1.6%, to settle at $45.86 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 73 cents, or 1.7%, to settle at $43.35.
That was the highest closes for both benchmarks since March 5, the day before Saudi Arabia and Russia failed to agree on a new plan to cut output and about a week before the World Health Organization declared COVID-19 a pandemic.
U.S. producers cut crude output ahead of Hurricane Laura at a rate approaching the level of 2005’s Hurricane Katrina and also halted most oil refining along the Texas/Louisiana coast.
Crude oil prices rose to a five-month high on Tuesday as U.S. producers shut most offshore output in the Gulf of Mexico ahead of Hurricane Laura even as rising coronavirus cases in Asia and Europe capped gains.
Brent futures rose 73 cents, or 1.6%, to settle at $45.86 a barrel, while U.S. West Texas Intermediate (WTI) crude rose 73 cents, or 1.7%, to settle at $43.35.
That was the highest closes for both benchmarks since March 5, the day before Saudi Arabia and Russia failed to agree on a new plan to cut output and about a week before the World Health Organization declared COVID-19 a pandemic.
U.S. producers cut crude output ahead of Hurricane Laura at a rate approaching the level of 2005’s Hurricane Katrina and also halted most oil refining along the Texas/Louisiana coast.
#Qatar Considers Economic Aid for Lebanon After Beirut Blast - Bloomberg
Qatar Considers Economic Aid for Lebanon After Beirut Blast - Bloomberg:
Qatar is considering giving economic aid to Lebanon to help it through its worst financial crisis in decades and rebuild Beirut following this month’s massive explosion.
“We have some ideas that we will discuss with the Lebanese government,” Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani said in a press conference on Tuesday during a visit to the city.
The Gulf country sent $50 million to Lebanon soon after the blast at Beirut’s port on Aug. 4.
Qatar was mulling assistance for Lebanon even before the explosion, Al Thani said.
Qatar is considering giving economic aid to Lebanon to help it through its worst financial crisis in decades and rebuild Beirut following this month’s massive explosion.
“We have some ideas that we will discuss with the Lebanese government,” Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani said in a press conference on Tuesday during a visit to the city.
The Gulf country sent $50 million to Lebanon soon after the blast at Beirut’s port on Aug. 4.
Qatar was mulling assistance for Lebanon even before the explosion, Al Thani said.
#AbuDhabi tightens guidance, gets over $23bln demand for three-part bonds - document | ZAWYA MENA Edition
Abu Dhabi tightens guidance, gets over $23bln demand for three-part bonds - document | ZAWYA MENA Edition:
Abu Dhabi tightened the price guidance on Tuesday for a three-tranche U.S. dollar-denominated bond offering and received more than $23 billion in orders for the debt sale, a document showed.
The notes due in 2023 were tightened to 70-75 basis points (bps) over U.S. Treasuries from around 95 bps earlier in the day. The tranche due in March 2031 was tightened to 110-115 bps from around 135 bps and the bonds due in 2070 were tightened to 2.75-2.8% from around 3%.
Abu Dhabi tightened the price guidance on Tuesday for a three-tranche U.S. dollar-denominated bond offering and received more than $23 billion in orders for the debt sale, a document showed.
The notes due in 2023 were tightened to 70-75 basis points (bps) over U.S. Treasuries from around 95 bps earlier in the day. The tranche due in March 2031 was tightened to 110-115 bps from around 135 bps and the bonds due in 2070 were tightened to 2.75-2.8% from around 3%.
MIDEAST STOCKS- #Dubai leads gains on property shares; #Saudi eases - Reuters
MIDEAST STOCKS-Dubai leads gains on property shares; Saudi eases - Reuters:
Dubai shares reversed early losses to close higher on Tuesday, led by gains in property stocks, while other major markets in the Gulf region were little changed.
Dubai's main share index gained 1%, with blue-chip developer Emaar Properties rising 2.4% and its unit Emaar Development advancing 3.9%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank was up 1.9%.
Saudi Arabia's benchmark index lost 0.2%, driven down by a 1.6% decline in the kingdom's largest lender National Commercial Bank, while Jabal Omar Development slid 4.3%.
The developer on Monday posted a net loss of 465.2 million riyals ($124.04 million) in second-quarter, compared to a profit of 29.8 million riyals a year earlier.
Dubai shares reversed early losses to close higher on Tuesday, led by gains in property stocks, while other major markets in the Gulf region were little changed.
Dubai's main share index gained 1%, with blue-chip developer Emaar Properties rising 2.4% and its unit Emaar Development advancing 3.9%.
Elsewhere, sharia-compliant lender Dubai Islamic Bank was up 1.9%.
Saudi Arabia's benchmark index lost 0.2%, driven down by a 1.6% decline in the kingdom's largest lender National Commercial Bank, while Jabal Omar Development slid 4.3%.
The developer on Monday posted a net loss of 465.2 million riyals ($124.04 million) in second-quarter, compared to a profit of 29.8 million riyals a year earlier.
Mideast News: Top #Saudi Binladin Executives Leave Amid $15 Billion Debt Revamp - Bloomberg
Mideast News: Top Saudi Binladin Executives Leave Amid $15 Billion Debt Revamp - Bloomberg:
Saudi Binladin Group lost two more senior executives, including the head of its biggest business, as the Saudi Arabian construction giant grapples with a crushing debt load of about $15 billion.
Majid Al Harthy resigned as chief executive officer of the Jeddah-based company’s construction division and was replaced by Abdulrahman Bajunaid on Aug. 19, according to an internal announcement seen by Bloomberg. Bajunaid is experienced in financial restructuring, having held senior positions in banking and other private-sector businesses, the memorandum said, without giving reasons for why Al Harthy quit.
The CEO’s exit follows the resignation earlier this month of Saad Bin Laden, the vice chairman of its parent, Binladin International Holding Group, people familiar with the situation said.
The holding company also appointed Ahmed Al Sanea as acting managing director, they said, asking not to be identified speaking publicly about internal matters. The CEO of that same entity is Khalid Al Gwaiz, who joined in March.
Saudi Binladin Group lost two more senior executives, including the head of its biggest business, as the Saudi Arabian construction giant grapples with a crushing debt load of about $15 billion.
Majid Al Harthy resigned as chief executive officer of the Jeddah-based company’s construction division and was replaced by Abdulrahman Bajunaid on Aug. 19, according to an internal announcement seen by Bloomberg. Bajunaid is experienced in financial restructuring, having held senior positions in banking and other private-sector businesses, the memorandum said, without giving reasons for why Al Harthy quit.
The CEO’s exit follows the resignation earlier this month of Saad Bin Laden, the vice chairman of its parent, Binladin International Holding Group, people familiar with the situation said.
The holding company also appointed Ahmed Al Sanea as acting managing director, they said, asking not to be identified speaking publicly about internal matters. The CEO of that same entity is Khalid Al Gwaiz, who joined in March.
#AbuDhabi fund said to be seek resolution to Mumbai airport takeover deal - Arabianbusiness
Abu Dhabi fund said to be seek resolution to Mumbai airport takeover deal - Arabianbusiness:
Abu Dhabi Investment Authority (ADIA) has reportedly sought the Indian government’s help in resolving a tussle over its takeover bid for Mumbai International Airport Ltd (MIAL) amid a rival bid from the Adani Group to acquire the aviation hub.
ADIA, in consortium with India’s NIIF (National Infrastructure and Investment Fund) and Canada’s PSP (Public Sector Pension) Investments, have an existing agreement with the GVK Group, the promoter of MIAL, to acquire 79 percent stake in GVK Airport Holdings for $964 million.
The agreement entered into April 2019 has ‘deal exclusivity’ until January 31, 2021.
ADIA, which told Arabian Business it had no comment to make on a report in India's Economic Times, has reportedly written to India’s Prime Minister’s Office and finance ministry for a fair resolution to the takeover tussle.
Abu Dhabi Investment Authority (ADIA) has reportedly sought the Indian government’s help in resolving a tussle over its takeover bid for Mumbai International Airport Ltd (MIAL) amid a rival bid from the Adani Group to acquire the aviation hub.
ADIA, in consortium with India’s NIIF (National Infrastructure and Investment Fund) and Canada’s PSP (Public Sector Pension) Investments, have an existing agreement with the GVK Group, the promoter of MIAL, to acquire 79 percent stake in GVK Airport Holdings for $964 million.
The agreement entered into April 2019 has ‘deal exclusivity’ until January 31, 2021.
ADIA, which told Arabian Business it had no comment to make on a report in India's Economic Times, has reportedly written to India’s Prime Minister’s Office and finance ministry for a fair resolution to the takeover tussle.
Steady oil price belies weakening physical market - Reuters
Steady oil price belies weakening physical market - Reuters:
The oil price is holding steady close to $45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country’s buying binge earlier in the year.
The spread between Brent crude for nearby delivery and six-months ahead is at its widest since late May at around $2.50, a market structure known as contango.
The coronavirus crisis reduced global oil demand by nearly a third in April and May when 4 billion people around the world were in some form of lockdown.
The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts.
The oil price is holding steady close to $45 a barrel, but prices further forward and in the physical market are showing new signs of weakness mainly due to a fall in demand from China after the country’s buying binge earlier in the year.
The spread between Brent crude for nearby delivery and six-months ahead is at its widest since late May at around $2.50, a market structure known as contango.
The coronavirus crisis reduced global oil demand by nearly a third in April and May when 4 billion people around the world were in some form of lockdown.
The market began to rebalance in late May when economies began to reopen and as OPEC and other major producing countries made big production cuts.
Emirates and Etihad airlines ask crew to take more unpaid leave - Reuters
Emirates and Etihad airlines ask crew to take more unpaid leave - Reuters:
Middle East airlines Emirates and Etihad Airways have again asked cabin crew to take voluntary unpaid leave as they try to manage the impact from the COVID-19 pandemic, according to internal memos and sources familiar with the matter.
Aviation has been one of the worst-hit industries during the pandemic and Emirates and Etihad of the United Arab Emirates have cut thousands of jobs, sources have said.
In an internal memo, Emirates crew are told they can take unpaid leave for between one and three months from Sept. 1 to Nov. 30 owing to expected staffing requirements.
Emirates, which in July asked pilots and crew to take four months of unpaid leave, also laid off some crew last week, two sources said, continuing a redundancy process that began in July.
Middle East airlines Emirates and Etihad Airways have again asked cabin crew to take voluntary unpaid leave as they try to manage the impact from the COVID-19 pandemic, according to internal memos and sources familiar with the matter.
Aviation has been one of the worst-hit industries during the pandemic and Emirates and Etihad of the United Arab Emirates have cut thousands of jobs, sources have said.
In an internal memo, Emirates crew are told they can take unpaid leave for between one and three months from Sept. 1 to Nov. 30 owing to expected staffing requirements.
Emirates, which in July asked pilots and crew to take four months of unpaid leave, also laid off some crew last week, two sources said, continuing a redundancy process that began in July.
European, Middle Eastern & African Stocks - Bloomberg #UAE close; #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Abu Dhabi comes back to bond market with three-part dollar issue
Abu Dhabi comes back to bond market with three-part dollar issue
Abu Dhabi started marketing on Tuesday a U.S. dollar-denominated bond offering split into three tranches of three, 10 and a half and 50 years, a document showed.
Each bond tranche is of benchmark size, which generally means at least $500 million each, according to the document issued by one of the banks leading the deal and seen by Reuters.
The paper due in 2023 offers investors an initial price of around 95 basis points over U.S. Treasuries and a second tranche due in March 2031 offers around 135 basis points over the same benchmark.
The longest tranche, maturing in 2070, offers around 3%.
Abu Dhabi started marketing on Tuesday a U.S. dollar-denominated bond offering split into three tranches of three, 10 and a half and 50 years, a document showed.
Each bond tranche is of benchmark size, which generally means at least $500 million each, according to the document issued by one of the banks leading the deal and seen by Reuters.
The paper due in 2023 offers investors an initial price of around 95 basis points over U.S. Treasuries and a second tranche due in March 2031 offers around 135 basis points over the same benchmark.
The longest tranche, maturing in 2070, offers around 3%.
Yara completes $1 billion #Qatar sale, starts share buyback - Reuters
Yara completes $1 billion Qatar sale, starts share buyback - Reuters:
Yara (YAR.OL), one of the world’s largest fertiliser makers, has completed a long-awaited sale of its stake in Qatar Fertiliser Company, paving the way for a significant share buyback program, the Norwegian company said on Tuesday.
Yara in March agreed to sell its 25% holding in Qafco to Qatar Petroleum for $1 billion, exiting a partnership that began more than 50 years ago, but the deal was conditional on regulatory approvals that have now been granted.
Oslo-based Yara will now initiate a buyback of up to 5% of its own shares, it said in a statement.
The company will buy up to 8.55 million shares on the open market and aims to purchase a further 4.85 million shares from the holdings of the Norwegian government - thus keeping the state’s stake in Yara unchanged at 36.2%.
Yara (YAR.OL), one of the world’s largest fertiliser makers, has completed a long-awaited sale of its stake in Qatar Fertiliser Company, paving the way for a significant share buyback program, the Norwegian company said on Tuesday.
Yara in March agreed to sell its 25% holding in Qafco to Qatar Petroleum for $1 billion, exiting a partnership that began more than 50 years ago, but the deal was conditional on regulatory approvals that have now been granted.
Oslo-based Yara will now initiate a buyback of up to 5% of its own shares, it said in a statement.
The company will buy up to 8.55 million shares on the open market and aims to purchase a further 4.85 million shares from the holdings of the Norwegian government - thus keeping the state’s stake in Yara unchanged at 36.2%.
Etihad asks cabin crew to take up to six months unpaid leave: memo - Reuters
Etihad asks cabin crew to take up to six months unpaid leave: memo - Reuters:
Etihad Airways is asking cabin crew to take up to six months unpaid leave from September as it tries to manage the impact of the COVID-19 pandemic, according to an internal memo and two sources familiar with the matter.
The Abu Dhabi state carrier, which lost $758 million in the first half of the year, has been gradually resuming passenger services since June after grounding flights in March.
In an internal memo, staff were told that the airline has more cabin crew than are required and that many are not being rostered on flights, which is not sustainable for the business.
Cabin crew can take between 10 days to six months of unpaid leave from Sept. 16, the email said.
Etihad Airways is asking cabin crew to take up to six months unpaid leave from September as it tries to manage the impact of the COVID-19 pandemic, according to an internal memo and two sources familiar with the matter.
The Abu Dhabi state carrier, which lost $758 million in the first half of the year, has been gradually resuming passenger services since June after grounding flights in March.
In an internal memo, staff were told that the airline has more cabin crew than are required and that many are not being rostered on flights, which is not sustainable for the business.
Cabin crew can take between 10 days to six months of unpaid leave from Sept. 16, the email said.
Oil prices mixed on storm-driven output cuts, rising COVID-19 cases - Reuters
Oil prices mixed on storm-driven output cuts, rising COVID-19 cases - Reuters:
Crude oil prices were mixed on Tuesday as traders weighed massive production cuts in the U.S. Gulf Coast from Tropical Storms Marco and Laura against rising coronavirus cases in Asia and Europe.
Brent crude oil futures LCOc1 added 14 cents, or 0.3%, to $45.27 a barrel by 0700 GMT, while U.S. West Texas Intermediate crude CLc1 was down 4 cents, or 0.1%, at $42.58 a barrel.
“A jump last week in the U.S. rig count and mixed data on COVID-19 infections are having a muted negative effect on oil this week, thanks in part to the possible disruption from two separate hurricanes moving into the U.S. Gulf Coast region,” said Stephen Innes, chief global markets strategist at AxiCorp.
Energy companies moved to cut production at U.S. Gulf Coast oil refineries on Monday after shutting 82% of the area’s offshore crude oil output as the rare double-storm assault on key U.S. oil regions threatens to bring days of heavy rains and strong winds this week.
Crude oil prices were mixed on Tuesday as traders weighed massive production cuts in the U.S. Gulf Coast from Tropical Storms Marco and Laura against rising coronavirus cases in Asia and Europe.
Brent crude oil futures LCOc1 added 14 cents, or 0.3%, to $45.27 a barrel by 0700 GMT, while U.S. West Texas Intermediate crude CLc1 was down 4 cents, or 0.1%, at $42.58 a barrel.
“A jump last week in the U.S. rig count and mixed data on COVID-19 infections are having a muted negative effect on oil this week, thanks in part to the possible disruption from two separate hurricanes moving into the U.S. Gulf Coast region,” said Stephen Innes, chief global markets strategist at AxiCorp.
Energy companies moved to cut production at U.S. Gulf Coast oil refineries on Monday after shutting 82% of the area’s offshore crude oil output as the rare double-storm assault on key U.S. oil regions threatens to bring days of heavy rains and strong winds this week.
MIDEAST STOCKS- #Saudi gains on banking strength; #UAE bourses slip as financials weigh - Reuters
MIDEAST STOCKS-Saudi gains on banking strength; UAE bourses slip as financials weigh - Reuters:
Saudi Arabian shares rose in early trade on Tuesday, led by gains in banking stocks, while losses in financials weighed on Dubai and Abu Dhabi equity markets.
The Saudi Arabian benchmark index rose 0.4%, with Saudi British Bank and Al Rajhi Bank gaining 1.7% and 0.5%, respectively.
National Shipping Carrier of Saudi Arabia (Bahri) gained 0.7%, after Saudi state-owned companies SALIC and Bahri announced forming a commodities joint venture, National Grains Company, on Monday.
Dubai’s main share index dropped 0.5%, dragged by a 2.7% decline in Emirates NBD Bank and a 1% fall in blue-chip developer Emaar Properties.
The Abu Dhabi index lost 0.6%, hurt by a 1% fall in the country’s largest lender First Abu Dhabi Bank and a 0.4% slip in telecoms firm Etisalat.
Saudi Arabian shares rose in early trade on Tuesday, led by gains in banking stocks, while losses in financials weighed on Dubai and Abu Dhabi equity markets.
The Saudi Arabian benchmark index rose 0.4%, with Saudi British Bank and Al Rajhi Bank gaining 1.7% and 0.5%, respectively.
National Shipping Carrier of Saudi Arabia (Bahri) gained 0.7%, after Saudi state-owned companies SALIC and Bahri announced forming a commodities joint venture, National Grains Company, on Monday.
Dubai’s main share index dropped 0.5%, dragged by a 2.7% decline in Emirates NBD Bank and a 1% fall in blue-chip developer Emaar Properties.
The Abu Dhabi index lost 0.6%, hurt by a 1% fall in the country’s largest lender First Abu Dhabi Bank and a 0.4% slip in telecoms firm Etisalat.
Monday 24 August 2020
Kohlberg & Co, Mubadala take controlling stake in PCI Pharma - Reuters
Kohlberg & Co, Mubadala take controlling stake in PCI Pharma - Reuters:
Private equity firm Kohlberg & Company and Abu Dhabi state investor Mubadala have agreed to take a controlling stake in PCI Pharma Services, a U.S. pharmaceutical outsourcing company, from Partners Group, the companies said on Monday.
Under the deal, Kohlberg will buy a majority stake, Mubadala a significant stake and Partners Group will retain a minority equity stake in the company.
The size of the stakes and value of the deal were not disclosed.
Headquartered in Philadelphia, PCI Pharma Services provides a broad range of integrated pharmaceutical supply chain solutions from the earliest stages of drug development through to its commercial launch.
Private equity firm Kohlberg & Company and Abu Dhabi state investor Mubadala have agreed to take a controlling stake in PCI Pharma Services, a U.S. pharmaceutical outsourcing company, from Partners Group, the companies said on Monday.
Under the deal, Kohlberg will buy a majority stake, Mubadala a significant stake and Partners Group will retain a minority equity stake in the company.
The size of the stakes and value of the deal were not disclosed.
Headquartered in Philadelphia, PCI Pharma Services provides a broad range of integrated pharmaceutical supply chain solutions from the earliest stages of drug development through to its commercial launch.
Oil prices rise as storms cut U.S. production - Reuters
Oil prices rise as storms cut U.S. production - Reuters:
Oil prices rose on Monday as storms headed for the Gulf of Mexico shut more than half of the region’s offshore production, with the more dangerous of the two storms expected to strike later in the week.
Brent crude LCOc1 settled at $45.13 a barrel, gaining 78 cents, or 1.76%, while U.S. West Texas Intermediate crude CLc1 settled at $42.62 a barrel, rising 28 cents, or 0.66%.
Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil supply in the U.S. Gulf of Mexico and evacuated more than 100 production platforms because of the twin threat from Tropical Storms Marco and Laura.
Marco reached the coast Monday, and Laura was expected to accelerate to a hurricane and hit by midweek.
Oil prices rose on Monday as storms headed for the Gulf of Mexico shut more than half of the region’s offshore production, with the more dangerous of the two storms expected to strike later in the week.
Brent crude LCOc1 settled at $45.13 a barrel, gaining 78 cents, or 1.76%, while U.S. West Texas Intermediate crude CLc1 settled at $42.62 a barrel, rising 28 cents, or 0.66%.
Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil supply in the U.S. Gulf of Mexico and evacuated more than 100 production platforms because of the twin threat from Tropical Storms Marco and Laura.
Marco reached the coast Monday, and Laura was expected to accelerate to a hurricane and hit by midweek.
Oil gains on storm-hit U.S. output and COVID-19 treatment hopes - Reuters
Oil gains on storm-hit U.S. output and COVID-19 treatment hopes - Reuters:
Crude oil prices rose on Monday as storms closed in on the Gulf of Mexico, shutting more than half its oil production, and on signs of progress in development of a COVID-19 treatment.
Brent crude LCOc1 was up 33 cents, or 0.7%, at $44.68 a barrel by 1033 GMT. U.S. West Texas Intermediate crude CLc1 rose 32 cents, or 0.8%, to $42.66.
"Prices are taking their cues from Mother Nature this morning as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged COVID wave,” said Stephen Brennock of oil broker PVM.
Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil production in the U.S. Gulf of Mexico because of the twin threat from Hurricane Marco and Tropical Storm Laura. Workers have been evacuated from more than 100 production platforms.
Crude oil prices rose on Monday as storms closed in on the Gulf of Mexico, shutting more than half its oil production, and on signs of progress in development of a COVID-19 treatment.
Brent crude LCOc1 was up 33 cents, or 0.7%, at $44.68 a barrel by 1033 GMT. U.S. West Texas Intermediate crude CLc1 rose 32 cents, or 0.8%, to $42.66.
"Prices are taking their cues from Mother Nature this morning as two storms bear down on the Gulf of Mexico. Half of the region’s production has been shut down, though gains will be limited by the threat of a second prolonged COVID wave,” said Stephen Brennock of oil broker PVM.
Energy companies shut more than 1 million barrels per day (bpd) of offshore crude oil production in the U.S. Gulf of Mexico because of the twin threat from Hurricane Marco and Tropical Storm Laura. Workers have been evacuated from more than 100 production platforms.
European, Middle Eastern & African Stocks - Bloomberg #SaudiArabia #Qatar close
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
European, Middle Eastern & African Stocks - Bloomberg #UAE close, #SaudiArabia #Qatar mid-session
European, Middle Eastern & African Stocks - Bloomberg:
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
Updated stock indexes in Europe, Middle East & Africa. Get an overview of major indexes, current values and stock market data in Europe, UK, Germany, Russia & more.
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