Union Properties Okays sale of 40% stake in Dubai Autodrome for Dh400m | Property – Gulf News:
Union Properties on Wednesday said it has approved an offer of Dh400 million for a 40 per cent stake in the Dubai Autodrome, UAE’s first fully integrated motor sports facility.
The real-estate developer also approved the acquisition of an existing investment property, valued at Dh250 million, in Dubai’s Business Bay area.
The company said its board of directors “will continue to evaluate and negotiate the acquisition of various other real estate assets in the UAE.”
In August, the Group said it had negotiated and finalised a comprehensive restructuring of the largest part of its outstanding debt with various financial institutions, which will ultimately improve its overall cash-flow profile.
Union reported a net loss of Dh 38.56 million for the second quarter of 2020, lower by 68 per cent compared to the previous quarter. The company, which has developed projects such as MotorCity and Green Community, attributed the reduction in losses to drastic cost cutting efforts.
Wednesday, 30 September 2020
#UAE News: #AbuDhabi's Mubadala Buys Stake in Silver Lake, to Invest $2 Billion - Bloomberg
UAE News: Abu Dhabi's Mubadala Buys Stake in Silver Lake, to Invest $2 Billion - Bloomberg:
Abu Dhabi wealth fund Mubadala Investment Co. is taking a stake of about 5% in private equity firm Silver Lake and investing $2 billion in a technology fund run by the firm as part of its drive to diversify away from oil and gas.
Mubadala said it would buy the stake in Silver Lake from Dyal, a unit of Neuberger Berman. No terms were disclosed. The deal is the latest move in the Abu Dhabi sovereign wealth fund’s drive to expand its technology portfolio.
Silver Lake has been one of most active private equity firms during the coronavirus pandemic and bought stakes this year in companies including Expedia Group Inc., Twitter Inc. and Airbnb Inc. The firm has also put money into online payment provider Klarna AB and Alphabet Inc.’s autonomous driving unit.
Mubadala, which manages $232 billion in assets, is among Gulf sovereign funds plowing their oil and natural gas wealth into technology to lessen their reliance on crude and help diversify their economies. The fund has repeatedly said over the past few years that it’s looking to boost its investments in technology.
Abu Dhabi wealth fund Mubadala Investment Co. is taking a stake of about 5% in private equity firm Silver Lake and investing $2 billion in a technology fund run by the firm as part of its drive to diversify away from oil and gas.
Mubadala said it would buy the stake in Silver Lake from Dyal, a unit of Neuberger Berman. No terms were disclosed. The deal is the latest move in the Abu Dhabi sovereign wealth fund’s drive to expand its technology portfolio.
Silver Lake has been one of most active private equity firms during the coronavirus pandemic and bought stakes this year in companies including Expedia Group Inc., Twitter Inc. and Airbnb Inc. The firm has also put money into online payment provider Klarna AB and Alphabet Inc.’s autonomous driving unit.
Mubadala, which manages $232 billion in assets, is among Gulf sovereign funds plowing their oil and natural gas wealth into technology to lessen their reliance on crude and help diversify their economies. The fund has repeatedly said over the past few years that it’s looking to boost its investments in technology.
OPEC September oil output rises for third month on Libya restart, Iran | Reuters
OPEC September oil output rises for third month on Libya restart, Iran | Reuters:
OPEC oil output has risen for a third month in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum ExportingCountries pumped 24.38 million bpd on average in September, thesurvey found, up 160,000 bpd from August’s revised figure and a further boost from the three-decade low reached in June.
An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.
“While demand struggles to keep up, supply is rising,” said Paola Rodriguez-Masiu, analyst at Rystad Energy. “Libya’s production is coming back.”
OPEC oil output has risen for a third month in September, a Reuters survey found, as a restart of some Libyan installations and higher Iranian exports offset strong adherence by other members to an OPEC-led supply cut deal.
The 13-member Organization of the Petroleum ExportingCountries pumped 24.38 million bpd on average in September, thesurvey found, up 160,000 bpd from August’s revised figure and a further boost from the three-decade low reached in June.
An increase in OPEC supply since August and concerns of a new demand hit as coronavirus cases rise have weighed on oil prices, which have fallen 10% in September to near $40 a barrel. OPEC is monitoring Libyan output, which has failed to sustain restarts in the past.
“While demand struggles to keep up, supply is rising,” said Paola Rodriguez-Masiu, analyst at Rystad Energy. “Libya’s production is coming back.”
Arabtec shareholders vote to liquidate the #Dubai construction firm - email | Reuters
Arabtec shareholders vote to liquidate the Dubai construction firm - email | Reuters:
Arabtec Holding shareholders authorised the board of the Dubai-listed construction company on Wednesday to file for liquidation due to its untenable financial position following the fallout from the coronavirus pandemic, an internal company email said.
Shareholders also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator, two sources told Reuters.
“Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation,” the company said in the email seen by Reuters.
Arabtec could not be immediately reached for comment.
Arabtec Holding shareholders authorised the board of the Dubai-listed construction company on Wednesday to file for liquidation due to its untenable financial position following the fallout from the coronavirus pandemic, an internal company email said.
Shareholders also authorised Arabtec to appoint AlixPartners and Matthew Wilde, or any other person or persons the board considered fit, as liquidator, two sources told Reuters.
“Unfortunately, against a backdrop of adverse market conditions, we regret to inform you that Arabtec shareholders voted to adopt a plan of liquidation and dissolution due to the company’s untenable financial situation,” the company said in the email seen by Reuters.
Arabtec could not be immediately reached for comment.
#Qatar’s Looming Decisions in LNG Expansion | Center for Strategic and International Studies
Qatar’s Looming Decisions in LNG Expansion | Center for Strategic and International Studies:
Qatar is moving forward with a massive liquefied natural gas (LNG) capacity expansion in spite of the current glut in the market and longer-term questions over the role of gas in the energy transition. Qatar is betting that it can dissuade other prospective LNG suppliers and outcompete them through scale, low production costs, and co-production of condensates and liquefied petroleum gas (LPG). In launching this expansion, Qatar faces a number of looming questions—and its choices have implications for the entire LNG industry.
Qatar is moving forward with a massive liquefied natural gas (LNG) capacity expansion in spite of the current glut in the market and longer-term questions over the role of gas in the energy transition. Qatar is betting that it can dissuade other prospective LNG suppliers and outcompete them through scale, low production costs, and co-production of condensates and liquefied petroleum gas (LPG). In launching this expansion, Qatar faces a number of looming questions—and its choices have implications for the entire LNG industry.
Breakneck Expansion or Moderate PaceAlready the world’s largest LNG exporter, Qatar declared a moratorium on new developments at its North Field in 2005 in an effort to ensure the long-term health of the field. By the time Qatar ended the moratorium in 2017, the LNG world had changed. Qatar still held a commanding position, but growing volumes from Australia, the United States, and other suppliers chipped away at its market share and contributed to a global LNG glut. These market developments convinced Qatar to reenter the fray. In 2017, Qatar declared plans to build four new LNG trains, and last November, Qatar Petroleum (QP) chief executive Saad al-Kaabi announced that a significant gas reserve addition would support a six-train expansion to ultimately raise capacity from 77 million tons per year (mmtpa) to 126 mmtpa.
QP seems undeterred by the longer-term challenges for gas. The market already appears well-supplied for at least the next few years, and in 2019, companies took final investment decisions (FID) on more than 70 mmtpa of LNG, far exceeding the previous annual record. But QP is a strong believer in long-term gas demand. It is confident in its low production costs and established relationships with major buyers, and sees advantages in moving ahead with the mega-expansion while other major projects have been deferred and better terms can be negotiated from service companies. Last, QP could perceive some advantages in lower gas prices, which bolster the fuel’s competitiveness against coal and renewables.
QP seems undeterred by the longer-term challenges for gas. The market already appears well-supplied for at least the next few years, and in 2019, companies took final investment decisions (FID) on more than 70 mmtpa of LNG, far exceeding the previous annual record. But QP is a strong believer in long-term gas demand. It is confident in its low production costs and established relationships with major buyers, and sees advantages in moving ahead with the mega-expansion while other major projects have been deferred and better terms can be negotiated from service companies. Last, QP could perceive some advantages in lower gas prices, which bolster the fuel’s competitiveness against coal and renewables.
#SaudiArabia to cut spending next year, sees economy bouncing back | Reuters
Saudi Arabia to cut spending next year, sees economy bouncing back | Reuters:
Saudi Arabia plans to cut spending by 7.5% in next year’s budget to 990 billion riyals ($263.94 billion) from this year’s 1.07 trillion riyals ($285.27 billion), according to a preliminary budget statement published on Wednesday.
But despite a significant drop in revenue this year and a slowdown in economic activity, it expects the economy to bounce back to growth next year as it improves its management of the coronavirus crisis.
The retrenchment in spending comes as the world’s largest oil exporter faces an economic contraction caused by the pandemic, a drop in oil prices, and crude production cuts.
For next year, the government “seeks to preserve the fiscal and economic gains achieved in recent years and to achieve the goals of stability, fiscal discipline, and spending efficiency,” the ministry of finance said in the statement.
Saudi Arabia plans to cut spending by 7.5% in next year’s budget to 990 billion riyals ($263.94 billion) from this year’s 1.07 trillion riyals ($285.27 billion), according to a preliminary budget statement published on Wednesday.
But despite a significant drop in revenue this year and a slowdown in economic activity, it expects the economy to bounce back to growth next year as it improves its management of the coronavirus crisis.
The retrenchment in spending comes as the world’s largest oil exporter faces an economic contraction caused by the pandemic, a drop in oil prices, and crude production cuts.
For next year, the government “seeks to preserve the fiscal and economic gains achieved in recent years and to achieve the goals of stability, fiscal discipline, and spending efficiency,” the ministry of finance said in the statement.
MIDEAST STOCKS- #Dubai leads gains in Gulf as financial shares rise | Nasdaq
MIDEAST STOCKS-Dubai leads gains in Gulf as financial shares rise | Nasdaq:
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading the gains on back of Emirates NBD Bank.
Saudi Arabia's benchmark index .TASI edged up 0.2%, with Saudi Kayan Petrochemical Company 2350.SE rising 6.8% and Saudi Arabian Mining Company 1211.SE was up 2.6%.
The index's gains, however, were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI climbed 0.9%, with Emirates NBD Bank ENBD.DU leaping 3.4% logistic firm Aramex ARMX.DU.
The Dubai Financial Market DFM.DU said on Tuesday it plans to launch an equity derivatives platform as part of its diversification strategy.
The contracts include Emirates NBD Bank along with others.
The Abu Dhabi index .ADI closed up 0.5%, helped by a 0.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 0.7% increase in telecoms firm Etisalat ETISALAT.AD.
FAB, the United Arab Emirates' largest lender, issued a $750 million benchmark additional tier 1 perpetual 6-year bond.
In Qatar, the index .QSI increased 0.8%, driven by a 2.7% increase in Qatar Islamic Bank QISB.QA and a 1.1% rise in Qatar National Bank QNBK.QA.
Back in the UAE, Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
Kuwait was closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Most stock markets in the Gulf ended higher on Wednesday, with Dubai leading the gains on back of Emirates NBD Bank.
Saudi Arabia's benchmark index .TASI edged up 0.2%, with Saudi Kayan Petrochemical Company 2350.SE rising 6.8% and Saudi Arabian Mining Company 1211.SE was up 2.6%.
The index's gains, however, were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI climbed 0.9%, with Emirates NBD Bank ENBD.DU leaping 3.4% logistic firm Aramex ARMX.DU.
The Dubai Financial Market DFM.DU said on Tuesday it plans to launch an equity derivatives platform as part of its diversification strategy.
The contracts include Emirates NBD Bank along with others.
The Abu Dhabi index .ADI closed up 0.5%, helped by a 0.5% gain in First Abu Dhabi Bank (FAB) FAB.AD and a 0.7% increase in telecoms firm Etisalat ETISALAT.AD.
FAB, the United Arab Emirates' largest lender, issued a $750 million benchmark additional tier 1 perpetual 6-year bond.
In Qatar, the index .QSI increased 0.8%, driven by a 2.7% increase in Qatar Islamic Bank QISB.QA and a 1.1% rise in Qatar National Bank QNBK.QA.
Back in the UAE, Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
Kuwait was closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Air travel industry 'hugely depressed'; Mideast passenger demand plummets 92.3% | ZAWYA MENA Edition
Air travel industry 'hugely depressed'; Mideast passenger demand plummets 92.3% | ZAWYA MENA Edition:
The international air travel industry continues to be “hugely depressed” and is heading into a slow winter season, as the second wave of coronavirus cases and return of travel restrictions dampened passenger confidence, the International Air Transport Association (IATA) said.
The air transport body reiterated its call for the governments to reopen their borders and remove restrictions, citing that carriers around the world are still “burning through cash” despite attempts to re-open businesses and revive the economies.
In the Middle East, home to some of the world’s biggest long-haul operators, passenger demand fell 92.3 percent in August, while capacity collapsed 81.9 percent and load factor sank nearly half (47.1 percentage points) to 35.3 percent, the air transport body said. Carriers in the Asia Pacific, North America, Latin America and Africa also witnessed a similar trend, with the decline in demand hovering above 90 percent.
The air transport body also revised its forecast for 2020 and now expects full-year passenger traffic to fall 66 percent, compared with the earlier estimated decline of 63 percent.
The international air travel industry continues to be “hugely depressed” and is heading into a slow winter season, as the second wave of coronavirus cases and return of travel restrictions dampened passenger confidence, the International Air Transport Association (IATA) said.
The air transport body reiterated its call for the governments to reopen their borders and remove restrictions, citing that carriers around the world are still “burning through cash” despite attempts to re-open businesses and revive the economies.
In the Middle East, home to some of the world’s biggest long-haul operators, passenger demand fell 92.3 percent in August, while capacity collapsed 81.9 percent and load factor sank nearly half (47.1 percentage points) to 35.3 percent, the air transport body said. Carriers in the Asia Pacific, North America, Latin America and Africa also witnessed a similar trend, with the decline in demand hovering above 90 percent.
The air transport body also revised its forecast for 2020 and now expects full-year passenger traffic to fall 66 percent, compared with the earlier estimated decline of 63 percent.
#Kuwait's debt law gridlock poses first economic test for new emir | Reuters
Kuwait's debt law gridlock poses first economic test for new emir | Reuters:
Kuwait’s new Emir Sheikh Nawaf al-Ahmad al-Sabah faces the urgent task of overcoming legislative gridlock on debt legislation needed to tackle a liquidity crisis in the wealthy oil producing country.
Parliament has repeatedly blocked the bill, which would allow Kuwait to tap international debt markets, but the issue has gained urgency as low oil prices and COVID-19 strained state finances and led to the rapid depletion of available cash reserves.
“The country needs to quickly pass a new public debt law to ease liquidity shortages,” said Mohamed Abu Basha, head of macroeconomic analysis at EFG Hermes.
The new ruler, sworn in on Wednesday after the death of his brother Emir Sheikh Sabah al-Ahmad al-Sabah, takes the helm with the nearly $140 billion economy facing a yawning deficit of $46 billion this year.
Kuwait’s new Emir Sheikh Nawaf al-Ahmad al-Sabah faces the urgent task of overcoming legislative gridlock on debt legislation needed to tackle a liquidity crisis in the wealthy oil producing country.
Parliament has repeatedly blocked the bill, which would allow Kuwait to tap international debt markets, but the issue has gained urgency as low oil prices and COVID-19 strained state finances and led to the rapid depletion of available cash reserves.
“The country needs to quickly pass a new public debt law to ease liquidity shortages,” said Mohamed Abu Basha, head of macroeconomic analysis at EFG Hermes.
The new ruler, sworn in on Wednesday after the death of his brother Emir Sheikh Sabah al-Ahmad al-Sabah, takes the helm with the nearly $140 billion economy facing a yawning deficit of $46 billion this year.
#Saudi unemployment spikes as virus-hit economy shrinks by 7% in second-quarter | Reuters
Saudi unemployment spikes as virus-hit economy shrinks by 7% in second-quarter | Reuters:
Saudi Arabia’s economy shrank by 7% in the second quarter, a sign of how deeply the new coronavirus hit both the oil and non-oil sectors, while unemployment hit a record high of 15.4%, official data showed on Wednesday.
The world’s largest oil exporter is facing a deep recession after the COVID-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic activity.
“The private sector and the government sector recorded a negative growth rate of 10.1% and 3.5%, respectively,” said the General Authority for Statistics.
The Saudi unemployment rate was “largely impacted by the effects of the COVID-19 pandemic on the Saudi economy,” it said.
Saudi Arabia’s economy shrank by 7% in the second quarter, a sign of how deeply the new coronavirus hit both the oil and non-oil sectors, while unemployment hit a record high of 15.4%, official data showed on Wednesday.
The world’s largest oil exporter is facing a deep recession after the COVID-19 pandemic curbed global crude demand and measures to contain the coronavirus hurt domestic activity.
“The private sector and the government sector recorded a negative growth rate of 10.1% and 3.5%, respectively,” said the General Authority for Statistics.
The Saudi unemployment rate was “largely impacted by the effects of the COVID-19 pandemic on the Saudi economy,” it said.
Sukuk outlook: #Saudi could double issuances to $40bln in 2020 to plug fiscal deficits | ZAWYA MENA Edition
Sukuk outlook: Saudi could double issuances to $40bln in 2020 to plug fiscal deficits | ZAWYA MENA Edition:
COVID-19 has triggered a sharp decline in global oil demand and prices, eroding Saudi Arabia's revenue and leading to a significant widening of the fiscal deficit. Global ratings agency Moody's estimates that the deficit will reach nearly 11 percent of GDP in 2020, up from 4.5 percent of GDP in 2019, and will drive a commensurate increase in the government's gross financing need, at least half of which can be salvaged by issuing sukuks.
Moody's also stated that the financing requirement will rise to around SAR 318 billion ($85 billion) in 2020 from SAR 153 billion ($41 billion) in 2019, and nearly half of the total financing will come from sukuk issuances, including through the established domestic sukuk program as well as private sukuk placements with autonomous government institutions (AGIs).
Moody's expects gross government sukuk issuance to nearly double this year to around $40 billion, up from $21 billion in 2019.
COVID-19 has triggered a sharp decline in global oil demand and prices, eroding Saudi Arabia's revenue and leading to a significant widening of the fiscal deficit. Global ratings agency Moody's estimates that the deficit will reach nearly 11 percent of GDP in 2020, up from 4.5 percent of GDP in 2019, and will drive a commensurate increase in the government's gross financing need, at least half of which can be salvaged by issuing sukuks.
Moody's also stated that the financing requirement will rise to around SAR 318 billion ($85 billion) in 2020 from SAR 153 billion ($41 billion) in 2019, and nearly half of the total financing will come from sukuk issuances, including through the established domestic sukuk program as well as private sukuk placements with autonomous government institutions (AGIs).
Moody's expects gross government sukuk issuance to nearly double this year to around $40 billion, up from $21 billion in 2019.
Mubadala to invest $2 bln in U.S. private equity firm Silver Lake | Reuters
Mubadala to invest $2 bln in U.S. private equity firm Silver Lake | Reuters:
Abu Dhabi state fund Mubadala Investment Co is investing $2 billion in private equity firm Silver Lake as part of a 25-year investment strategy, the companies said on Wednesday.
Abu Dhabi state fund Mubadala Investment Co is investing $2 billion in private equity firm Silver Lake as part of a 25-year investment strategy, the companies said on Wednesday.
Libya’s Oil Crescent Gets Back to Business as Sarir Field Opens - Bloomberg
Libya’s Oil Crescent Gets Back to Business as Sarir Field Opens - Bloomberg:
Libya’s oil industry continued its revival this week following a truce between the main factions in the OPEC member’s devastating civil war.
The Sarir field opened on Tuesday, according to its operator, Arabian Gulf Oil Co. Production is just 30,000 barrels a day for now. But with a capacity of about 200,000, it’s the biggest deposit in the country to restart since an almost-total shutdown of Libyan energy facilities in January.
Much of the country’s “oil crescent” -- a cluster of ports and fields in the east -- is back onstream, though not yet at full capacity. Libya’s western fields, including Sharara, the biggest in the North African nation, are still closed. The state-run National Oil Corp. has said foreign mercenaries and other fighters must leave facilities before than can reopen.
Overall oil output has reached about 300,000 barrels a day, up from 80,000 at the start of the month.
Libya’s oil industry continued its revival this week following a truce between the main factions in the OPEC member’s devastating civil war.
The Sarir field opened on Tuesday, according to its operator, Arabian Gulf Oil Co. Production is just 30,000 barrels a day for now. But with a capacity of about 200,000, it’s the biggest deposit in the country to restart since an almost-total shutdown of Libyan energy facilities in January.
Much of the country’s “oil crescent” -- a cluster of ports and fields in the east -- is back onstream, though not yet at full capacity. Libya’s western fields, including Sharara, the biggest in the North African nation, are still closed. The state-run National Oil Corp. has said foreign mercenaries and other fighters must leave facilities before than can reopen.
Overall oil output has reached about 300,000 barrels a day, up from 80,000 at the start of the month.
The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg
The Middle East’s First Sovereign Green Bond Sees Strong Demand - Bloomberg:
Egypt pulled in orders for nearly five times the $750 million size of the Middle East and North Africa’s first sovereign green bond, as it pushes ahead with anti-pollution and renewable energy projects.
The Arab world’s most populous nation sold the five-year notes at a yield of 5.25%, well inside an opening target of about 5.75%, after amassing more than $3.7 billion of investor orders. The sale “put Egypt on the map of sustainable financing,” the Finance Ministry said.
Among those attracted were a “new investor base from Europe, the U.S., East Asia and the Middle East, as well as asset mangers, pension, investment and insurance funds,” the ministry said in a statement. Such “high-quality,” long-term investors “will reduce price volatility.”
The bond forms part of Egypt’s strategy to lock-in new financing sources and broaden the country’s investor base, steps that could in turn help lower its borrowing costs. It's touting a $1.9 billion portfolio of potential green projects, including clean transportation, renewable energy and sustainable water management.
Egypt pulled in orders for nearly five times the $750 million size of the Middle East and North Africa’s first sovereign green bond, as it pushes ahead with anti-pollution and renewable energy projects.
The Arab world’s most populous nation sold the five-year notes at a yield of 5.25%, well inside an opening target of about 5.75%, after amassing more than $3.7 billion of investor orders. The sale “put Egypt on the map of sustainable financing,” the Finance Ministry said.
Among those attracted were a “new investor base from Europe, the U.S., East Asia and the Middle East, as well as asset mangers, pension, investment and insurance funds,” the ministry said in a statement. Such “high-quality,” long-term investors “will reduce price volatility.”
The bond forms part of Egypt’s strategy to lock-in new financing sources and broaden the country’s investor base, steps that could in turn help lower its borrowing costs. It's touting a $1.9 billion portfolio of potential green projects, including clean transportation, renewable energy and sustainable water management.
#SaudiArabia News: Saudi Economy Shrank 7% From Coronavirus, Oil Price - Bloomberg
Saudi Arabia News: Saudi Economy Shrank 7% From Coronavirus, Oil Price - Bloomberg:
Saudi Arabia’s economy contracted 7% in the second quarter from a year earlier as citizen unemployment hit its highest level on record, illustrating the damage wrought by the oil market turmoil combined with the coronavirus pandemic.
The oil sector shrank an annual 5.3%, while the non-oil sector declined by 8.2%, according to data released on Wednesday by the statistics authority. The non-oil private sector -- the engine of job creation -- contracted by more than 10%. Labor statistics released at the same time showed that citizen unemployment rose to 15.4% during April to June, the highest level recorded in data that goes back two decades. That, despite a government stimulus program that covered 60% of salaries for many Saudi workers.
The world’s largest oil exporter is facing a dual crisis this year as the pandemic, energy output cuts and lower crude prices combine to derail a fragile economic recovery from the last oil-price rout. The International Monetary Fund expects output to contract 6.8% this year, followed by 3.1% growth in 2021.
The worst-hit areas of the economy in the second quarter were, unsurprisingly, those hurt by a series of coronavirus curfews and shutdowns that were implemented in March and gradually lifted from the end of May. A sector that combines wholesale, retail, restaurants and hotels contracted by more than 18%. Finance, insurance and business services, on the other hand, shrank by just 0.3%.
Saudi Arabia’s economy contracted 7% in the second quarter from a year earlier as citizen unemployment hit its highest level on record, illustrating the damage wrought by the oil market turmoil combined with the coronavirus pandemic.
The oil sector shrank an annual 5.3%, while the non-oil sector declined by 8.2%, according to data released on Wednesday by the statistics authority. The non-oil private sector -- the engine of job creation -- contracted by more than 10%. Labor statistics released at the same time showed that citizen unemployment rose to 15.4% during April to June, the highest level recorded in data that goes back two decades. That, despite a government stimulus program that covered 60% of salaries for many Saudi workers.
The world’s largest oil exporter is facing a dual crisis this year as the pandemic, energy output cuts and lower crude prices combine to derail a fragile economic recovery from the last oil-price rout. The International Monetary Fund expects output to contract 6.8% this year, followed by 3.1% growth in 2021.
The worst-hit areas of the economy in the second quarter were, unsurprisingly, those hurt by a series of coronavirus curfews and shutdowns that were implemented in March and gradually lifted from the end of May. A sector that combines wholesale, retail, restaurants and hotels contracted by more than 18%. Finance, insurance and business services, on the other hand, shrank by just 0.3%.
Oil prices to see little upside as virus threat looms large: Reuters poll | Reuters
Oil prices to see little upside as virus threat looms large: Reuters poll | Reuters:
Oil prices will stay near current levels this year as rising novel coronavirus cases threaten to slow the pace of demand recovery and counter output curbs by top producers, a Reuters poll showed on Wednesday.
The survey of 40 analysts and economists forecast benchmark Brent crude LCOc1 averaging $42.48 a barrel in 2020. That compares with an average of $42.54 this year and last month's forecast of $42.75.
Brent is projected to average $50.41 in 2021.
The 2020 U.S. crude CLc1 price outlook was at $38.70 per barrel versus $38.82 predicted in August. It has averaged $38.20 this year.
Oil prices will stay near current levels this year as rising novel coronavirus cases threaten to slow the pace of demand recovery and counter output curbs by top producers, a Reuters poll showed on Wednesday.
The survey of 40 analysts and economists forecast benchmark Brent crude LCOc1 averaging $42.48 a barrel in 2020. That compares with an average of $42.54 this year and last month's forecast of $42.75.
Brent is projected to average $50.41 in 2021.
The 2020 U.S. crude CLc1 price outlook was at $38.70 per barrel versus $38.82 predicted in August. It has averaged $38.20 this year.
Oil extends losses as rising virus cases spur demand worries | Reuters
Oil extends losses as rising virus cases spur demand worries | Reuters:
Oil prices fell for a second day on Wednesday as rising coronavirus cases prompted concerns about further restrictions on global economic activity that could curb fuel demand.
Brent crude LCOc1 for November delivery dropped 63 cents, or 1.56%, to $40.40 per barrel by 1005 GMT. West Texas Intermediate CLc1 fell 50 cents, or 1.3%, to $38.79.
The November Brent contract expires today, to be replaced by the December contract, which was down around 1.4% at $41.00.
The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
Oil prices fell for a second day on Wednesday as rising coronavirus cases prompted concerns about further restrictions on global economic activity that could curb fuel demand.
Brent crude LCOc1 for November delivery dropped 63 cents, or 1.56%, to $40.40 per barrel by 1005 GMT. West Texas Intermediate CLc1 fell 50 cents, or 1.3%, to $38.79.
The November Brent contract expires today, to be replaced by the December contract, which was down around 1.4% at $41.00.
The benchmarks fell more than 3% on Tuesday as global COVID-19 cases passed 1 million, having doubled in three months.
#Kuwait's new emir takes oath, calls for unity at tense time for region | Reuters
Kuwait's new emir takes oath, calls for unity at tense time for region | Reuters:
Kuwait’s new emir was sworn in at parliament on Wednesday as the country prepared to lay to rest late ruler Sheikh Sabah al-Ahmad al-Sabah, a Gulf Arab elder statesman who helped steer his people through some of the Middle East’s most turbulent decades.
The cabinet swiftly named designated successor Crown Prince Sheikh Nawaf al-Ahmad al-Sabah as ruler on Tuesday following the death of Sheikh Sabah, 91, whose body is due to arrive in Kuwait on Wednesday from the United States were he had been hospitalised since July.
Nawaf, 83, pledged to work for the OPEC member country’s prosperity, stability and security after taking the oath of office, raising both hands to his head as lawmakers applauded.
“Our dear nation today faces difficult situations and dangerous challenges that can only be overcome ... by unifying ranks and working hard together,” he told the National Assembly.
Kuwait’s new emir was sworn in at parliament on Wednesday as the country prepared to lay to rest late ruler Sheikh Sabah al-Ahmad al-Sabah, a Gulf Arab elder statesman who helped steer his people through some of the Middle East’s most turbulent decades.
The cabinet swiftly named designated successor Crown Prince Sheikh Nawaf al-Ahmad al-Sabah as ruler on Tuesday following the death of Sheikh Sabah, 91, whose body is due to arrive in Kuwait on Wednesday from the United States were he had been hospitalised since July.
Nawaf, 83, pledged to work for the OPEC member country’s prosperity, stability and security after taking the oath of office, raising both hands to his head as lawmakers applauded.
“Our dear nation today faces difficult situations and dangerous challenges that can only be overcome ... by unifying ranks and working hard together,” he told the National Assembly.
MIDEAST STOCKS-Dubai leads major Gulf markets up as financials rise | Nasdaq
MIDEAST STOCKS-Dubai leads major Gulf markets up as financials rise | Nasdaq:
Major stock markets in the Gulf rose in early trade on Wednesday, with financial shares boosting the Dubai index.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.8% gain in Jabal Omar Development 4250.SE and 0.2% increase in Al Rajhi Bank 1120.SE.
However, the index's gains were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI gained 0.8%, with Emirates NBD Bank ENBD.DU rising 2.4% and logistic firm Aramex
ARMX.DU jumping 3.3%.
The Abu Dhabi index .ADI rose 0.1%, with Emirates Telecommunications ETISALAT.AD gaining 0.5%, while Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
In Qatar, the index .QSI added 0.6%, led by a 2.1% rise in Qatar Fuel QFLS.QA and a 0.9% increase in Qatar Islamic Bank QISB.QA.
Kuwait is closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Major stock markets in the Gulf rose in early trade on Wednesday, with financial shares boosting the Dubai index.
Saudi Arabia's benchmark index .TASI edged up 0.2%, supported by a 0.8% gain in Jabal Omar Development 4250.SE and 0.2% increase in Al Rajhi Bank 1120.SE.
However, the index's gains were capped by losses at oil behemoth Saudi Aramco 2222.SE, which declined 0.8%.
Rosneft and Saudi Aramco are unlikely to bid in the privatisation of Indian refiner Bharat Petroleum Corp BPCL.NS, Reuters reported on Wednesday, citing sources familiar with the matter, as low oil prices and weak demand curb their investment plans.
Dubai's main share index .DFMGI gained 0.8%, with Emirates NBD Bank ENBD.DU rising 2.4% and logistic firm Aramex
ARMX.DU jumping 3.3%.
The Abu Dhabi index .ADI rose 0.1%, with Emirates Telecommunications ETISALAT.AD gaining 0.5%, while Abu Dhabi National Oil Company for Distribution ADNOCDIST.AD advanced 2% after approving payment of an interim cash dividend of 10.285 fils per share for the first six months of 2020.
In Qatar, the index .QSI added 0.6%, led by a 2.1% rise in Qatar Fuel QFLS.QA and a 0.9% increase in Qatar Islamic Bank QISB.QA.
Kuwait is closed following the death of its Emir Sheikh Sabah al-Ahmad al-Sabah.
Tuesday, 29 September 2020
Oil falls over 3% as virus cases mount and U.S. debate looms | Reuters
Oil falls over 3% as virus cases mount and U.S. debate looms | Reuters:
Oil prices fell over 3% on Tuesday to their lowest in two weeks on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.
Investors in stocks and commodities also remained cautious ahead of the first U.S. presidential debate between Democrat Joe Biden and Republican Donald Trump later on Tuesday. .DJI.SPX
“Today’s lower trade generally followed declines in the equities,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
On its second to last day as the front-month, Brent LCOc1 futures for November delivery fell $1.40, or 3.3%, to settle at $41.03 a barrel, while the more active Brent contract for December LCOc2 fell 3.1% to settle at $41.56.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.31, or 3.2%, to settle at $39.29 per barrel.
Oil prices fell over 3% on Tuesday to their lowest in two weeks on worries about the outlook for fuel demand as Europe and the United States grappled with a surge in new coronavirus infections.
Investors in stocks and commodities also remained cautious ahead of the first U.S. presidential debate between Democrat Joe Biden and Republican Donald Trump later on Tuesday. .DJI.SPX
“Today’s lower trade generally followed declines in the equities,” said Jim Ritterbusch, president of Ritterbusch and Associates in Galena, Illinois.
On its second to last day as the front-month, Brent LCOc1 futures for November delivery fell $1.40, or 3.3%, to settle at $41.03 a barrel, while the more active Brent contract for December LCOc2 fell 3.1% to settle at $41.56.
U.S. West Texas Intermediate (WTI) crude CLc1 fell $1.31, or 3.2%, to settle at $39.29 per barrel.
World's first active sharia-compliant global equity ETF lists on London Stock Exchange - The National
World's first active sharia-compliant global equity ETF lists on London Stock Exchange - The National:
The world’s first actively managed global equity Sharia-compliant exchange traded fund (ETF) will list on the London Stock Exchange on Wednesday, as it looks to capture investor interest from the Middle East and UAE.
The ETF from UK financial services group Almalia aims to achieve capital growth over the medium to long by investing in companies with high returns on capital and low leverage. The asset management and investment screening – to ensure the product remains Sharia-compliant – will be supervised by Sanlam Investments UK, which oversees £5.3 billion in funds.
“The status quo in the ETF market has always been to track some sort of index but actively managed will allow us to outperform the MSCI Islamic Global Equity Index. Our long-term track record has demonstrated a significant outperformance over time,” Pieter Fourie, global head of equities at Sanlam, told The National. “The ability for an active manager to add value versus the global equity Islamic index is something the market needs – it’s an underserved market.”
ETFs are bought and sold like shares but typically operate as index-tracking funds, passively following a chosen index, such as the S&P 500 or a commodity like gold. The financial products come with zero upfront fee and annual charges as low as 0.07 per cent, giving investors more of a return as actively managed funds charge around 1.5 per cent to 2 per cent.
The world’s first actively managed global equity Sharia-compliant exchange traded fund (ETF) will list on the London Stock Exchange on Wednesday, as it looks to capture investor interest from the Middle East and UAE.
The ETF from UK financial services group Almalia aims to achieve capital growth over the medium to long by investing in companies with high returns on capital and low leverage. The asset management and investment screening – to ensure the product remains Sharia-compliant – will be supervised by Sanlam Investments UK, which oversees £5.3 billion in funds.
“The status quo in the ETF market has always been to track some sort of index but actively managed will allow us to outperform the MSCI Islamic Global Equity Index. Our long-term track record has demonstrated a significant outperformance over time,” Pieter Fourie, global head of equities at Sanlam, told The National. “The ability for an active manager to add value versus the global equity Islamic index is something the market needs – it’s an underserved market.”
ETFs are bought and sold like shares but typically operate as index-tracking funds, passively following a chosen index, such as the S&P 500 or a commodity like gold. The financial products come with zero upfront fee and annual charges as low as 0.07 per cent, giving investors more of a return as actively managed funds charge around 1.5 per cent to 2 per cent.
#Dubai Financial Market to launch derivatives platform in October | Markets – Gulf News
Dubai Financial Market to launch derivatives platform in October | Markets – Gulf News:
UAE stock investors can trade on a new 'equity derivatives platform' on DFM from next month. The stock exchange operator, Dubai Financial Market, is in the final stages of preparation for the new platform, in tandem with Nasdaq Dubai, Dubai Clear and leading brokerage houses.
The platform will introduce equity futures contracts on single stocks with tenures of one-, two- and three months. The inaugural contracts will include five of the most liquid equities on DFM - Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.
The move is part of DFM's efforts to diversify product offerings and attract further investments. This will enable investors to diversify and hedge their portfolios and access leverage.
UAE stock investors can trade on a new 'equity derivatives platform' on DFM from next month. The stock exchange operator, Dubai Financial Market, is in the final stages of preparation for the new platform, in tandem with Nasdaq Dubai, Dubai Clear and leading brokerage houses.
The platform will introduce equity futures contracts on single stocks with tenures of one-, two- and three months. The inaugural contracts will include five of the most liquid equities on DFM - Emaar Properties, Dubai Islamic Bank, Emirates NBD, Emaar Development and Emaar Malls.
The move is part of DFM's efforts to diversify product offerings and attract further investments. This will enable investors to diversify and hedge their portfolios and access leverage.
Kuwaiti stocks plunge, dinar down in forward market as emir dies | Reuters
Kuwaiti stocks plunge, dinar down in forward market as emir dies | Reuters:
The Kuwaiti dinar fell against the U.S. dollar in the forward market on Tuesday and Kuwaiti stocks plunged as officials announced that the ruling Emir Sheikh Sabah al-Ahmad al-Sabah had died.
The Kuwaiti dinar fell against the U.S. dollar in the forward market on Tuesday and Kuwaiti stocks plunged as officials announced that the ruling Emir Sheikh Sabah al-Ahmad al-Sabah had died.
 |
| FILE PHOTO: Kuwait's Emir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah addresses a joint news conference with U.S. President Donald Trump in the East Room of the White House in Washington, U.S., September 7, 2017. REUTERS/Kevin Lamarque |
Sheikh Sabah, 91, had ruled the oil-producing Gulf Arab country since 2006. His designated successor is his brother, Crown Prince Sheikh Nawaf al-Ahmad al-Sabah.
Kuwaiti stocks were hit hard on Tuesday with the benchmark premier index .BKP retreating 2.2%, its biggest intraday fall since April, ahead of the official announcement of the emir's death.
Three-month dollar/Kuwaiti dinar forwards jumped as high as 84 points, a nearly four-month high, according to Refinitiv data.
Kuwait’s outstanding U.S. dollar-denominated bonds, however, were relatively stable.
Kuwaiti stocks were hit hard on Tuesday with the benchmark premier index .BKP retreating 2.2%, its biggest intraday fall since April, ahead of the official announcement of the emir's death.
Three-month dollar/Kuwaiti dinar forwards jumped as high as 84 points, a nearly four-month high, according to Refinitiv data.
Kuwait’s outstanding U.S. dollar-denominated bonds, however, were relatively stable.
#Israel Seeks 100,000 #UAE Tourists a Year After Landmark Pact - Bloomberg
Israel Seeks 100,000 UAE Tourists a Year After Landmark Pact - Bloomberg:
Israel seeks to attract as many as 100,000 tourists a year from the United Arab Emirates, a new market that’s opened up following the normalization accord the countries signed this month.
It sees the pool of visitors coming from both UAE citizens and foreigners living there, according to a report prepared by the Tourism Ministry. The target refers to the period after the coronavirus pandemic, and would follow several years with more modest goals.
Israel and the UAE have been exploring business opportunities since deciding to normalize relations, with new cooperation pacts signed in sectors ranging from banking to mobile phone services. Saudi Arabia has granted overfly rights to flights between Israel and the UAE, reducing travel time to about three hours.
Israel’s attractions include its proximity and Muslim religious sites, while security concerns and relatively low value for money at hotels are among its drawbacks. In addition, travelers may be required to obtain visas, an issue that still hasn’t been decided.
Israel seeks to attract as many as 100,000 tourists a year from the United Arab Emirates, a new market that’s opened up following the normalization accord the countries signed this month.
It sees the pool of visitors coming from both UAE citizens and foreigners living there, according to a report prepared by the Tourism Ministry. The target refers to the period after the coronavirus pandemic, and would follow several years with more modest goals.
Israel and the UAE have been exploring business opportunities since deciding to normalize relations, with new cooperation pacts signed in sectors ranging from banking to mobile phone services. Saudi Arabia has granted overfly rights to flights between Israel and the UAE, reducing travel time to about three hours.
Israel’s attractions include its proximity and Muslim religious sites, while security concerns and relatively low value for money at hotels are among its drawbacks. In addition, travelers may be required to obtain visas, an issue that still hasn’t been decided.
Credit Suisse Cutting Jobs in Middle East in Wealth Overhaul - Bloomberg
Credit Suisse Cutting Jobs in Middle East in Wealth Overhaul - Bloomberg:
Credit Suisse Group AG is laying off about 20 people in the Middle East as it restructures wealth management activities in the region, according to people familiar with the matter.
The job cuts -- focused on Dubai -- follow the decision to incorporate the business that deals with non-resident Indian and Africa clients under Middle East head Bruno Daher, the people said, asking not to be identified because the plans are private. Raj Sehgal, former head of that unit, is now the chairman of NRI and Africa.
“We are committed to the non-resident Indian segment, and in order to further accelerate growth, we are bringing the operations in the broader Middle East and Africa region under one single leadership,” a bank spokeswoman said in an emailed statement. She declined to comment on the job cuts.
Chief Executive Officer Thomas Gottstein announced his first major revamp of the Swiss lender at the end of July, simplifying the bank’s structure. Credit Suisse is merging its advisory and its trading business into a single division led by global markets head Brian Chin, while plans to cut as many as 500 jobs in Switzerland were also disclosed last month.
Credit Suisse Group AG is laying off about 20 people in the Middle East as it restructures wealth management activities in the region, according to people familiar with the matter.
The job cuts -- focused on Dubai -- follow the decision to incorporate the business that deals with non-resident Indian and Africa clients under Middle East head Bruno Daher, the people said, asking not to be identified because the plans are private. Raj Sehgal, former head of that unit, is now the chairman of NRI and Africa.
“We are committed to the non-resident Indian segment, and in order to further accelerate growth, we are bringing the operations in the broader Middle East and Africa region under one single leadership,” a bank spokeswoman said in an emailed statement. She declined to comment on the job cuts.
Chief Executive Officer Thomas Gottstein announced his first major revamp of the Swiss lender at the end of July, simplifying the bank’s structure. Credit Suisse is merging its advisory and its trading business into a single division led by global markets head Brian Chin, while plans to cut as many as 500 jobs in Switzerland were also disclosed last month.
MIDEAST STOCKS- #Kuwait leads most of Gulf lower as financials drag | Nasdaq
MIDEAST STOCKS-Kuwait leads most of Gulf lower as financials drag | Nasdaq:
Most bourses in the Gulf ended lower on Tuesday, hurt by their financial shares, with Kuwait hardest hit as investors shunned stocks across the board.
In Kuwait, the index .BKP retreated 2.2%, its biggest intraday fall since April, dragged down by a 2.4% drop in Kuwait Finance House KFH.KW.
Saudi Arabia's benchmark index .TASI lost 0.6%, with oil giant Saudi Aramco 2222.SE falling 1% and Al Rajhi Bank 1120.SE dropping 0.6%.
But, Mobile Telecommunications Company Saudi Arabia (Zain KSA) 7030.SE jumped 7.8%, after it raised a 6-billion-riyal ($1.60 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, the telecoms firm said in a bourse filing.
Dubai's main share index .DFMGI gave up early gains to closed down 0.4%, pressured by a 1.9% fall in Emirates NBD Bank ENBD.DU and a 0.7% decrease in blue-chip developer Emaar Properties EMAR.DU.
However, the index's losses were capped by gains at logistic firm Aramex ARMX.DU.
On Monday, Aramex ended two sessions of losses triggered when the logistics firm confirmed last week that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 0.4% rise in the United Arab Emirates' largest lender First Abu Dhabi Bank FAB.AD.
In Qatar, the index .QSI added 0.3%, with United Development Company UDCD.QA jumping 5.4%.
Most bourses in the Gulf ended lower on Tuesday, hurt by their financial shares, with Kuwait hardest hit as investors shunned stocks across the board.
In Kuwait, the index .BKP retreated 2.2%, its biggest intraday fall since April, dragged down by a 2.4% drop in Kuwait Finance House KFH.KW.
Saudi Arabia's benchmark index .TASI lost 0.6%, with oil giant Saudi Aramco 2222.SE falling 1% and Al Rajhi Bank 1120.SE dropping 0.6%.
But, Mobile Telecommunications Company Saudi Arabia (Zain KSA) 7030.SE jumped 7.8%, after it raised a 6-billion-riyal ($1.60 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, the telecoms firm said in a bourse filing.
Dubai's main share index .DFMGI gave up early gains to closed down 0.4%, pressured by a 1.9% fall in Emirates NBD Bank ENBD.DU and a 0.7% decrease in blue-chip developer Emaar Properties EMAR.DU.
However, the index's losses were capped by gains at logistic firm Aramex ARMX.DU.
On Monday, Aramex ended two sessions of losses triggered when the logistics firm confirmed last week that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI edged up 0.1%, helped by a 0.4% rise in the United Arab Emirates' largest lender First Abu Dhabi Bank FAB.AD.
In Qatar, the index .QSI added 0.3%, with United Development Company UDCD.QA jumping 5.4%.
Inside the airline industry's meltdown | World news | The Guardian
Inside the airline industry's meltdown | World news | The Guardian:
When an airline no longer wants a plane, it is sent away to a boneyard, a storage facility where it sits outdoors on a paved lot, wingtip to wingtip with other unwanted planes. From the air, the planes look like the bleached remains of some long-forgotten skeleton. Europe’s biggest boneyard is built on the site of a late-30s airfield in Teruel, in eastern Spain, where the dry climate is kind to metallic airframes. Many planes are here for short-term storage, biding their time while they change owners or undergo maintenance. If their future is less clear, they enter long-term storage. Sometimes a plane’s limbo ends when it is taken apart, its body rendered efficiently down into spare parts and recycled metal.
Read more
In February, Patrick Lecer, the CEO of Tarmac Aerosave, the company that owns the Teruel boneyard and three others in France, had one eye cocked towards China. Lecer has been in aviation long enough to remember flights being grounded during the Sars epidemic in 2003. This year, when the coronavirus spread beyond Asia, he knew what was coming. “We started making space in our sites, playing Tetris with the aircraft to free up two or three or four more spaces in each,” he told me.
By late March, after the US shut its skies to Europe, planes began streaming into Tarmac Aerosave’s boneyards. No one knew if they were going into short-term residency or long-term storage. On one day alone, 3 April, the Teruel boneyard received five Boeing 747s and two Boeing 777s. Throughout the next few weeks, planes arrived from Lufthansa, Air France, Etihad and British Airways. Before the pandemic, there were 78 aircraft at Teruel. By June, there were 114, running near the full capacity of 120-130. Patrick Lecer’s other three boneyards were also “close to saturation”, he told me in July. He sounded grave. He had just spent two hours on the phone with an airline that wanted him to house another 30 planes. “I’ve been in this business almost 40 years, and I’ve never seen anything like this. The mood is bad. It feels like a tragedy.”
When an airline no longer wants a plane, it is sent away to a boneyard, a storage facility where it sits outdoors on a paved lot, wingtip to wingtip with other unwanted planes. From the air, the planes look like the bleached remains of some long-forgotten skeleton. Europe’s biggest boneyard is built on the site of a late-30s airfield in Teruel, in eastern Spain, where the dry climate is kind to metallic airframes. Many planes are here for short-term storage, biding their time while they change owners or undergo maintenance. If their future is less clear, they enter long-term storage. Sometimes a plane’s limbo ends when it is taken apart, its body rendered efficiently down into spare parts and recycled metal.
Read more
In February, Patrick Lecer, the CEO of Tarmac Aerosave, the company that owns the Teruel boneyard and three others in France, had one eye cocked towards China. Lecer has been in aviation long enough to remember flights being grounded during the Sars epidemic in 2003. This year, when the coronavirus spread beyond Asia, he knew what was coming. “We started making space in our sites, playing Tetris with the aircraft to free up two or three or four more spaces in each,” he told me.
By late March, after the US shut its skies to Europe, planes began streaming into Tarmac Aerosave’s boneyards. No one knew if they were going into short-term residency or long-term storage. On one day alone, 3 April, the Teruel boneyard received five Boeing 747s and two Boeing 777s. Throughout the next few weeks, planes arrived from Lufthansa, Air France, Etihad and British Airways. Before the pandemic, there were 78 aircraft at Teruel. By June, there were 114, running near the full capacity of 120-130. Patrick Lecer’s other three boneyards were also “close to saturation”, he told me in July. He sounded grave. He had just spent two hours on the phone with an airline that wanted him to house another 30 planes. “I’ve been in this business almost 40 years, and I’ve never seen anything like this. The mood is bad. It feels like a tragedy.”
ADNOC and Apollo-led consortium close $5.5 billion real estate investment partnership | Reuters
ADNOC and Apollo-led consortium close $5.5 billion real estate investment partnership | Reuters:
The Abu Dhabi National Oil Company (ADNOC) said on Tuesday it closed its $5.5 billion real estate investment partnership with entities owned and/or advised by Apollo Global Management Inc APO.N subsidiaries and a group of institutional investors.
The closing takes the combined investment in select ADNOC real estate assets by the investor consortium to $2.7 billion, the company said in a statement.
The Apollo-led consortium collectively holds a 49% stake in Abu Dhabi Properly Leasing Holding Company RSC Limited (ADPLHC). ADNOC retains a 51% majority stake, according to the statement.
The Abu Dhabi National Oil Company (ADNOC) said on Tuesday it closed its $5.5 billion real estate investment partnership with entities owned and/or advised by Apollo Global Management Inc APO.N subsidiaries and a group of institutional investors.
The closing takes the combined investment in select ADNOC real estate assets by the investor consortium to $2.7 billion, the company said in a statement.
The Apollo-led consortium collectively holds a 49% stake in Abu Dhabi Properly Leasing Holding Company RSC Limited (ADPLHC). ADNOC retains a 51% majority stake, according to the statement.
'Lingering oversupply' to impact #Dubai real estate recovery: S&P | ZAWYA MENA Edition
'Lingering oversupply' to impact Dubai real estate recovery: S&P | ZAWYA MENA Edition:
Almost every sector of the Dubai real estate market, including properties and office spaces, will continue to be impacted by the 'lingering oversupply', which was in place much before the pandemic, affecting sales and revenues of developers, global ratings agency S&P said.
"Even before pandemic, we had lingering oversupply in the real estate sector in preparation for the Expo 2020. Now, developers are under significant pressure because residential prices are lower by 11 - 12 percent and more owners have to roll out rent relief measures. This will continue to impact their topline for a while," Sapna Jagtiani, director for corporate ratings, told a virtual audience at a conference on Tuesday.
According to S&P, the commercial real estate sector will witness some rationalisation in terms of occupancies and rental measures and lot of it has to do with the inherent oversupply, which was there even before the coronavirus pandemic. However, it would take a few quarters before the extend of the impact is visible.
"We are seeing lot of rental pressure in commercial space. Occupancy rates will come down and vacancy rates will go up. But it might take a while. It's not easy to shut down offices unless the businesses are going bust. It will take a few quarters before costs are rationalised by companies and they make big decisions such as working from home and letting go of spaces," Jagtiani said.
Almost every sector of the Dubai real estate market, including properties and office spaces, will continue to be impacted by the 'lingering oversupply', which was in place much before the pandemic, affecting sales and revenues of developers, global ratings agency S&P said.
"Even before pandemic, we had lingering oversupply in the real estate sector in preparation for the Expo 2020. Now, developers are under significant pressure because residential prices are lower by 11 - 12 percent and more owners have to roll out rent relief measures. This will continue to impact their topline for a while," Sapna Jagtiani, director for corporate ratings, told a virtual audience at a conference on Tuesday.
According to S&P, the commercial real estate sector will witness some rationalisation in terms of occupancies and rental measures and lot of it has to do with the inherent oversupply, which was there even before the coronavirus pandemic. However, it would take a few quarters before the extend of the impact is visible.
"We are seeing lot of rental pressure in commercial space. Occupancy rates will come down and vacancy rates will go up. But it might take a while. It's not easy to shut down offices unless the businesses are going bust. It will take a few quarters before costs are rationalised by companies and they make big decisions such as working from home and letting go of spaces," Jagtiani said.
#Oman's new sultan quietly makes his mark as challenges loom
Oman's new sultan quietly makes his mark as challenges loom:
When Oman’s ruler of a half century died without an heir apparent, brief fears of turmoil ended with the quick announcement of a new sultan in this nation on the eastern edge of the Arabian Peninsula.
But instead of the military rulers whose arrivals come with martial music and whose ends often accompany times of trouble in the Mideast, Oman ended up with the culture minister.
That Oman followed its own distinctive, uncommon path after the death of Sultan Qaboos bin Said represents perhaps the best testament to his rule over a nation he brought out of the isolationist obscurity imposed by his father and modernized with its oil wealth.
His successor, Sultan Haitham bin Tariq, has followed his example in establishing his rule over this country of 2.7 million Omanis and another 1.7 million foreigners as the coronavirus pandemic closed off the sultanate. The outside world and internal challenges, however, are preparing to come crashing in.
When Oman’s ruler of a half century died without an heir apparent, brief fears of turmoil ended with the quick announcement of a new sultan in this nation on the eastern edge of the Arabian Peninsula.
But instead of the military rulers whose arrivals come with martial music and whose ends often accompany times of trouble in the Mideast, Oman ended up with the culture minister.
That Oman followed its own distinctive, uncommon path after the death of Sultan Qaboos bin Said represents perhaps the best testament to his rule over a nation he brought out of the isolationist obscurity imposed by his father and modernized with its oil wealth.
His successor, Sultan Haitham bin Tariq, has followed his example in establishing his rule over this country of 2.7 million Omanis and another 1.7 million foreigners as the coronavirus pandemic closed off the sultanate. The outside world and internal challenges, however, are preparing to come crashing in.
Zain #Saudi raises $1.6 billion Islamic loan | Reuters
Zain Saudi raises $1.6 billion Islamic loan | Reuters:
Mobile Telecommunications Company Saudi Arabia (Zain KSA) has raised a 6 billion riyals ($1.60 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, it said in a bourse filing.
The Islamic loan, with a murabaha structure, refinances until 2025 an existing debt facility with an outstanding amount of 3.85 billion riyals.
The new debt package has a two-year grace period and better commercial terms, said the company, which is 37% owned by Kuwait’s Zain Group.
On Sept. 30, “the company will drawdown only the outstanding amount of the existing agreement (3.85 billion riyals) and will withdraw the remaining amount as per the company business requirements,” it said.
Mobile Telecommunications Company Saudi Arabia (Zain KSA) has raised a 6 billion riyals ($1.60 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, it said in a bourse filing.
The Islamic loan, with a murabaha structure, refinances until 2025 an existing debt facility with an outstanding amount of 3.85 billion riyals.
The new debt package has a two-year grace period and better commercial terms, said the company, which is 37% owned by Kuwait’s Zain Group.
On Sept. 30, “the company will drawdown only the outstanding amount of the existing agreement (3.85 billion riyals) and will withdraw the remaining amount as per the company business requirements,” it said.
Oil falls as virus count mounts, U.S. debate looms | Reuters
Oil falls as virus count mounts, U.S. debate looms | Reuters:
Oil prices fell on Tuesday as Europe and the United States grappled with a surge in new coronavirus infections and investors were cautious ahead of the first U.S. presidential debate.
Brent's November contract LCOc1, which expires on Wednesday, fell 11 cents, or 0.3%, to $42.32 per barrel by 1023 GMT. The more-active Brent crude for December LCOc2 fell 12 cents, or 0.3%, to $42.75 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 13 cents, or 0.3%, to $40.47 a barrel.
More than one million people have died of COVID-19 worldwide as of Tuesday, according to a Reuters tally, a bleak milestone in a pandemic that has devastated the global economy and fuel demand.
Oil prices fell on Tuesday as Europe and the United States grappled with a surge in new coronavirus infections and investors were cautious ahead of the first U.S. presidential debate.
Brent's November contract LCOc1, which expires on Wednesday, fell 11 cents, or 0.3%, to $42.32 per barrel by 1023 GMT. The more-active Brent crude for December LCOc2 fell 12 cents, or 0.3%, to $42.75 a barrel.
U.S. West Texas Intermediate (WTI) crude CLc1 fell 13 cents, or 0.3%, to $40.47 a barrel.
More than one million people have died of COVID-19 worldwide as of Tuesday, according to a Reuters tally, a bleak milestone in a pandemic that has devastated the global economy and fuel demand.
MIDEAST STOCKS-Major Gulf bourses gain in early trade, led by financial stocks | Nasdaq
MIDEAST STOCKS-Major Gulf bourses gain in early trade, led by financial stocks | Nasdaq:
Major stock markets in the Gulf rose in early trade on Tuesday, led by advances in financial shares, with Qatar on track to extend gains for a fourth straight session.
Saudi Arabia's benchmark index .TASI rose 0.3%, with Saudi Telecom Company 7010.SE rising 0.8% and Banque Saudi Fransi 1050.SE up 0.9%.
Credit Agricole CAGR.PA sold its remaining 4% stake in Banque Saudi Fransi to two Saudi government-related institutional investors in a deal worth 1.45 billion riyals ($387 million), the French bank said on Monday.
Elsewhere, Mobile Telecommunications Company Saudi Arabia (Zain KSA) 7030.SE gained 1.1%.
The telecoms firm raised a 6-billion-riyal ($1.6 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, it said in a bourse filing.
Dubai's main share index .DFMGI added 0.4%, driven by a 1.2% gain in sharia-compliant lender Dubai Islamic Bank DISB.DU and a 2.8% jump in logistic firm Aramex ARMX.DU.
On Monday, Aramex ended two sessions of losses triggered when the logistics firm confirmed last week that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI gained 0.3%, helped by a 0.5%increase in the country's largest lender First Abu Dhabi Bank FAB.AD and a 0.9% rise in Abu Dhabi Commercial Bank ADCB.AD.
In Qatar, the index .QSI was up 0.7%, with Qatar National Bank QNBK.QA up 2.2%.
Major stock markets in the Gulf rose in early trade on Tuesday, led by advances in financial shares, with Qatar on track to extend gains for a fourth straight session.
Saudi Arabia's benchmark index .TASI rose 0.3%, with Saudi Telecom Company 7010.SE rising 0.8% and Banque Saudi Fransi 1050.SE up 0.9%.
Credit Agricole CAGR.PA sold its remaining 4% stake in Banque Saudi Fransi to two Saudi government-related institutional investors in a deal worth 1.45 billion riyals ($387 million), the French bank said on Monday.
Elsewhere, Mobile Telecommunications Company Saudi Arabia (Zain KSA) 7030.SE gained 1.1%.
The telecoms firm raised a 6-billion-riyal ($1.6 billion) loan to refinance existing debt and secure access to additional liquidity to support growth, it said in a bourse filing.
Dubai's main share index .DFMGI added 0.4%, driven by a 1.2% gain in sharia-compliant lender Dubai Islamic Bank DISB.DU and a 2.8% jump in logistic firm Aramex ARMX.DU.
On Monday, Aramex ended two sessions of losses triggered when the logistics firm confirmed last week that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI gained 0.3%, helped by a 0.5%increase in the country's largest lender First Abu Dhabi Bank FAB.AD and a 0.9% rise in Abu Dhabi Commercial Bank ADCB.AD.
In Qatar, the index .QSI was up 0.7%, with Qatar National Bank QNBK.QA up 2.2%.
Monday, 28 September 2020
Credit Agricole to Build Its Own #Saudi Bank After Stake Sale - Bloomberg
Credit Agricole to Build Its Own Saudi Bank After Stake Sale - Bloomberg:
Credit Agricole SA plans to build its own corporate and investment bank in Saudi Arabia after selling the final portion of its stake in Banque Saudi Fransi.
The French lender sold its remaining 4% holding for 1.45 billion riyal ($387 million) to two Saudi government-related institutional investors, Credit Agricole said in a statement on Monday, without identifying the entities. The shares were sold at 30 riyals each and will help shore up Credit Agricole’s capital.
The disposal ends Credit Agricole’s decades-long investment in one of the kingdom’s largest corporate banks. The French firm is plotting its own path in a region awash with mega-bond deals as well as stake sales by state-owned entities.
Credit Agricole CIB started the process to obtain a license to operate on Saudi’s capital markets and plans to further develop its presence and activities in the country, the unit’s chief executive officer, Jacques Ripoll, said in the statement.
Credit Agricole SA plans to build its own corporate and investment bank in Saudi Arabia after selling the final portion of its stake in Banque Saudi Fransi.
The French lender sold its remaining 4% holding for 1.45 billion riyal ($387 million) to two Saudi government-related institutional investors, Credit Agricole said in a statement on Monday, without identifying the entities. The shares were sold at 30 riyals each and will help shore up Credit Agricole’s capital.
The disposal ends Credit Agricole’s decades-long investment in one of the kingdom’s largest corporate banks. The French firm is plotting its own path in a region awash with mega-bond deals as well as stake sales by state-owned entities.
Credit Agricole CIB started the process to obtain a license to operate on Saudi’s capital markets and plans to further develop its presence and activities in the country, the unit’s chief executive officer, Jacques Ripoll, said in the statement.
#Saudi Tourism Development Fund, banks sign deal for up to $43 billion of projects | Reuters
Saudi Tourism Development Fund, banks sign deal for up to $43 billion of projects | Reuters:
Saudi Arabia's Tourism Development Fund on Monday signed an agreement with Riyadh Bank 1010.SE and Banque Saudi Fransi 1050.SE to finance up to 160 billion riyals ($43 billion) of tourism projects in the kingdom, state news agency SPA reported.
The agreement will set up mechanisms to finance tourism projects across the kingdom as part of the government’s efforts to develop the sector, a key pillar of Saudi Crown Prince Mohammed bin Salman’s ambitious reform strategy to reduce dependence on oil.
The fund, founded in June with an initial $4 billion investment, is part of plans to diversify the economy in the face of the coronavirus pandemic and low oil prices.
It is intended to launch investment vehicles to develop tourism in collaboration with private and investment banks.
Saudi Arabia's Tourism Development Fund on Monday signed an agreement with Riyadh Bank 1010.SE and Banque Saudi Fransi 1050.SE to finance up to 160 billion riyals ($43 billion) of tourism projects in the kingdom, state news agency SPA reported.
The agreement will set up mechanisms to finance tourism projects across the kingdom as part of the government’s efforts to develop the sector, a key pillar of Saudi Crown Prince Mohammed bin Salman’s ambitious reform strategy to reduce dependence on oil.
The fund, founded in June with an initial $4 billion investment, is part of plans to diversify the economy in the face of the coronavirus pandemic and low oil prices.
It is intended to launch investment vehicles to develop tourism in collaboration with private and investment banks.
Column: Hedge funds race to cover crude short positions: Kemp | Reuters
Column: Hedge funds race to cover crude short positions: Kemp | Reuters:
Hedge funds trimmed bearish positions in crude oil last week after Saudi Arabia threatened to punish short sellers and on signs that prices had found a floor after recent weakness.
Hedge funds and other money managers purchased the equivalent of 40 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 22.
Purchases occurred at the fastest rate since late April, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.
But buying was concentrated in crude rather than refined products, and involved buying back previous short positions rather than opening new long ones.
Hedge funds trimmed bearish positions in crude oil last week after Saudi Arabia threatened to punish short sellers and on signs that prices had found a floor after recent weakness.
Hedge funds and other money managers purchased the equivalent of 40 million barrels in the six most important petroleum futures and options contracts in the week to Sept. 22.
Purchases occurred at the fastest rate since late April, according to position records published by ICE Futures Europe and the U.S. Commodity Futures Trading Commission.
But buying was concentrated in crude rather than refined products, and involved buying back previous short positions rather than opening new long ones.
Oil up 1% on economic hope; virus fears check price gains | Reuters
Oil up 1% on economic hope; virus fears check price gains | Reuters:
Oil prices rose 1% on Monday as global equities rallied on hopes for another U.S. stimulus package, but rising virus cases fed concerns about fuel demand and kept oil futures from moving higher.
Brent crude LCOc1 settled at $42.43 a barrel, up 51 cents, or 1.22%. U.S. West Texas Intermediate CLc1 settled at $40.60 a barrel, rising 35 cents, or 0.87%.
“In my opinion, the most likely event capable of moving the crude oil market to the next level would be the passing of a coronavirus stimulus package,” said Bob Yawger, director of energy futures at Mizuho.
Oil followed Wall Street higher as American political talks continued for another COVID-19 relief bill after U.S. House Speaker Nancy Pelosi on Sunday said she thought a deal could be reached with the White House.
Oil prices rose 1% on Monday as global equities rallied on hopes for another U.S. stimulus package, but rising virus cases fed concerns about fuel demand and kept oil futures from moving higher.
Brent crude LCOc1 settled at $42.43 a barrel, up 51 cents, or 1.22%. U.S. West Texas Intermediate CLc1 settled at $40.60 a barrel, rising 35 cents, or 0.87%.
“In my opinion, the most likely event capable of moving the crude oil market to the next level would be the passing of a coronavirus stimulus package,” said Bob Yawger, director of energy futures at Mizuho.
Oil followed Wall Street higher as American political talks continued for another COVID-19 relief bill after U.S. House Speaker Nancy Pelosi on Sunday said she thought a deal could be reached with the White House.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait #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.
Tim Clark reflects on Emirates’ incredible journey | Interview | Flight Global
Tim Clark reflects on Emirates’ incredible journey | Interview | Flight Global:
As he nears his departure after more than three decades at the heart of Emirates Airline, Tim Clark tells FlightGlobal how the Middle Eastern operator went from minnow to global player.
Emirates is entering a brave new world as one of its most faithful stalwarts – the airline’s chief, Tim Clark – steps aside and makes way for the new leadership team to fully take the helm.
He is set to leave after over three decades in the “cockpit” of Dubai’s flag carrier – the last 17 of them as the airline’s president. That Clark is leaving the airline as it – and the rest of the industry – faces its worst crisis ever is not by design. His plan to step aside was disclosed last December, long before the world was being battered by coronavirus.
Clark will stick around at least until next year to support the transition – the details of which are still sketchy – but the reality is that his departure marks a key turning point for the business. As Clark says himself, he is about the last remnant of the Emirates founding fathers – many of whom were ex-Gulf Air.
As he nears his departure after more than three decades at the heart of Emirates Airline, Tim Clark tells FlightGlobal how the Middle Eastern operator went from minnow to global player.
Emirates is entering a brave new world as one of its most faithful stalwarts – the airline’s chief, Tim Clark – steps aside and makes way for the new leadership team to fully take the helm.
He is set to leave after over three decades in the “cockpit” of Dubai’s flag carrier – the last 17 of them as the airline’s president. That Clark is leaving the airline as it – and the rest of the industry – faces its worst crisis ever is not by design. His plan to step aside was disclosed last December, long before the world was being battered by coronavirus.
Clark will stick around at least until next year to support the transition – the details of which are still sketchy – but the reality is that his departure marks a key turning point for the business. As Clark says himself, he is about the last remnant of the Emirates founding fathers – many of whom were ex-Gulf Air.
Credit Agricole Exits #SaudiArabia With $386 Million Fransi Sale - Bloomberg
Credit Agricole Exits Saudi Arabia With $386 Million Fransi Sale - Bloomberg:
Credit Agricole has sold the final portion of its stake in Banque Saudi Fransi, bringing to an end the French lender’s decades long investment in one of the kingdom’s largest corporate banks, according to a person familiar with the deal.
The transaction was completed on Sunday and was valued at about 1.4 billion riyals ($386 million), according to information on the Saudi stock exchange’s website, which didn’t disclose the seller or the buyer of the stake. About 48.3 million shares were sold at 30 riyals each. The stock closed at 32.20 riyals on Sunday.
Credit Agricole declined to comment on the transaction. It has been gradually selling off its stake in Saudi Fransi over the past three years. It sold a stake of about 16%, about half of the total shares it held in the Saudi lender at the time, to billionaire Prince Alwaleed bin Talal in 2017. That was followed by a series of smaller deals with a consortium led by U.S.-based Ripplewood.
The bank has said previously that even as it sells off the stake in Saudi Fransi it wants keep a more limited presence in the country by obtaining a Saudi license for its investment banking unit.
Credit Agricole has sold the final portion of its stake in Banque Saudi Fransi, bringing to an end the French lender’s decades long investment in one of the kingdom’s largest corporate banks, according to a person familiar with the deal.
The transaction was completed on Sunday and was valued at about 1.4 billion riyals ($386 million), according to information on the Saudi stock exchange’s website, which didn’t disclose the seller or the buyer of the stake. About 48.3 million shares were sold at 30 riyals each. The stock closed at 32.20 riyals on Sunday.
Credit Agricole declined to comment on the transaction. It has been gradually selling off its stake in Saudi Fransi over the past three years. It sold a stake of about 16%, about half of the total shares it held in the Saudi lender at the time, to billionaire Prince Alwaleed bin Talal in 2017. That was followed by a series of smaller deals with a consortium led by U.S.-based Ripplewood.
The bank has said previously that even as it sells off the stake in Saudi Fransi it wants keep a more limited presence in the country by obtaining a Saudi license for its investment banking unit.
Oil slips as surge in virus cases clouds demand recovery | Reuters
Oil slips as surge in virus cases clouds demand recovery | Reuters:
Oil prices dipped on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with the main crude benchmarks on track for their first monthly falls in multiple months after slipping last week.
Brent crude LCOc1 fell 37 cents, or 0.9%, to $41.55 a barrel by 0652 GMT after dropping 2.9% last week. U.S. West Texas Intermediate CLc1 was at $39.86 a barrel, down 39 cents or 1%, following a 2.1% decline last week.
Brent is on track to fall for the first month in six while WTI is headed for its first monthly loss since April as the reimposition of mobility curbs in some countries clouds the outlook on fuel demand recovery.
Oil prices dipped on Monday as rising coronavirus cases upset hopes for a smooth recovery in fuel demand, with the main crude benchmarks on track for their first monthly falls in multiple months after slipping last week.
Brent crude LCOc1 fell 37 cents, or 0.9%, to $41.55 a barrel by 0652 GMT after dropping 2.9% last week. U.S. West Texas Intermediate CLc1 was at $39.86 a barrel, down 39 cents or 1%, following a 2.1% decline last week.
Brent is on track to fall for the first month in six while WTI is headed for its first monthly loss since April as the reimposition of mobility curbs in some countries clouds the outlook on fuel demand recovery.
MIDEAST STOCKS- #Qatar leads major Gulf markets higher in early trade | Nasdaq
MIDEAST STOCKS-Qatar leads major Gulf markets higher in early trade | Nasdaq:
Major stock markets in the Gulf rose in early trade on Monday, led by gains in financial shares, with Qatar outperforming the region on broad based gains.
Saudi Arabia's benchmark index .TASI gained 0.6%, led by a 1.9% increase in Banque Saudi Fransi 1050.SE and a 0.3% gain in Al Rajhi Bnnk 1120.SE
French lender Credit Agricole CAGR.PA sold its stake in Banque Saudi Fransi for 1.4 billion riyals ($373.27 million), Bloomberg News reported on Sunday, citing an unnamed person familiar with the matter.
Saudi Arabia plans to resume tourist visas by early 2021 after months of suspension amid strict government measures to prevent the spread of coronavirus, the kingdom's tourism minister told Reuters.
In Qatar, the index .QSI climbed 1%, as most of the shares were in positive territory including the Gulf's largest lender Qatar National Bank QNBK.QA, which was up 2.4%.
On Thursday, ratings agency Moody's affirmed the Gulf state's Aa3 rating, while maintaining a stable outlook.
Dubai's main share index .DFMGI rose 0.8%, with Emirates NBD Bank ENBD.DU gaining 2.4% and sharia-compliant lender Dubai Islamic Bank DISB.DU was up 0.5%.
Elsewhere, Aramex ARMX.DU advanced 1.3%, on track to end two sessions of losses triggered after the logistics firm on Wednesday confirmed that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI added 0.4%, supported by a 2.9% rise in aquaculture firm International Holding IHC.AD.
Major stock markets in the Gulf rose in early trade on Monday, led by gains in financial shares, with Qatar outperforming the region on broad based gains.
Saudi Arabia's benchmark index .TASI gained 0.6%, led by a 1.9% increase in Banque Saudi Fransi 1050.SE and a 0.3% gain in Al Rajhi Bnnk 1120.SE
French lender Credit Agricole CAGR.PA sold its stake in Banque Saudi Fransi for 1.4 billion riyals ($373.27 million), Bloomberg News reported on Sunday, citing an unnamed person familiar with the matter.
Saudi Arabia plans to resume tourist visas by early 2021 after months of suspension amid strict government measures to prevent the spread of coronavirus, the kingdom's tourism minister told Reuters.
In Qatar, the index .QSI climbed 1%, as most of the shares were in positive territory including the Gulf's largest lender Qatar National Bank QNBK.QA, which was up 2.4%.
On Thursday, ratings agency Moody's affirmed the Gulf state's Aa3 rating, while maintaining a stable outlook.
Dubai's main share index .DFMGI rose 0.8%, with Emirates NBD Bank ENBD.DU gaining 2.4% and sharia-compliant lender Dubai Islamic Bank DISB.DU was up 0.5%.
Elsewhere, Aramex ARMX.DU advanced 1.3%, on track to end two sessions of losses triggered after the logistics firm on Wednesday confirmed that a portion of its warehouse facility in Morocco had been damaged in a fire.
The Abu Dhabi index .ADI added 0.4%, supported by a 2.9% rise in aquaculture firm International Holding IHC.AD.
Sunday, 27 September 2020
#UAE-based NMC Healthcare placed in administration - Arabianbusiness
UAE-based NMC Healthcare placed in administration - Arabianbusiness:
UAE-based NMC Healthcare has been placed in the hands of administrators by the Abu Dhabi Global Markets Courts (ADGM).
Richard Fleming and Ben Cairns of Alvarez & Marsal were appointed joint administrators on Sunday.
According to a statement, the “light touch” administration process, which relates directly to 36 businesses operating in the UAE, will allow for financial restructuring on “high levels of debt” discovered earlier in the year.
It will also allow the group of entities to secure an additional $325 million financing facility "whilst protecting the businesses from creditor action", the statement added.
UAE-based NMC Healthcare has been placed in the hands of administrators by the Abu Dhabi Global Markets Courts (ADGM).
Richard Fleming and Ben Cairns of Alvarez & Marsal were appointed joint administrators on Sunday.
According to a statement, the “light touch” administration process, which relates directly to 36 businesses operating in the UAE, will allow for financial restructuring on “high levels of debt” discovered earlier in the year.
It will also allow the group of entities to secure an additional $325 million financing facility "whilst protecting the businesses from creditor action", the statement added.
#Saudi Stocks Recover to Lead Gains in the Middle East: Inside EM - Bloomberg
Saudi Stocks Recover to Lead Gains in the Middle East: Inside EM - Bloomberg:
Saudi Arabia’s main equities index rose the most in the Middle East, recovering from its worst weekly performance since June.
The Tadawul All Shares Index ended the day 0.7% higher following a 1.2% decline last week -- its first weekly drop in more than three months. Saudi British Bank, Saudi Kayan Petrochemical Co. and National Industrialization Co. all advanced more than 1.8%.
Fahd Iqbal, the head of Middle East research at Credit Suisse, said that valuation for Saudi Arabian shares is “very rich” when compared to emerging markets. For the premium they trade at to be justified, “we would have to see a very speedy economic recovery, but that is not the kind of environment we are expecting in the fourth quarter,” Iqbal said in an interview to Bloomberg TV.
The kingdom is preparing for a quick rebound in tourism and hasn’t revised its visitor targets for 2021 despite the pandemic, Tourism Minister Ahmed Al-Khateeb said.
Saudi Arabia’s main equities index rose the most in the Middle East, recovering from its worst weekly performance since June.
The Tadawul All Shares Index ended the day 0.7% higher following a 1.2% decline last week -- its first weekly drop in more than three months. Saudi British Bank, Saudi Kayan Petrochemical Co. and National Industrialization Co. all advanced more than 1.8%.
Fahd Iqbal, the head of Middle East research at Credit Suisse, said that valuation for Saudi Arabian shares is “very rich” when compared to emerging markets. For the premium they trade at to be justified, “we would have to see a very speedy economic recovery, but that is not the kind of environment we are expecting in the fourth quarter,” Iqbal said in an interview to Bloomberg TV.
The kingdom is preparing for a quick rebound in tourism and hasn’t revised its visitor targets for 2021 despite the pandemic, Tourism Minister Ahmed Al-Khateeb said.
Crude Oil Prices: Russia Expects Long Recovery for Global Demand - Bloomberg
Crude Oil Prices: Russia Expects Long Recovery for Global Demand - Bloomberg:
Russia expects a long and gradual revival of the oil market after the pandemic this year crushed energy demand across the world.
“The recovery won’t be fast, it will take quite a while before the pre-crisis levels can be reached,” Russia’s Energy Minister Alexander Novak said Sunday. In 2020, on the back of coronavirus lockdowns, global oil demand is set to decline by as much as 10% compared to last year, he said in his address to a two-day online meeting of G-20 energy ministers.
The recent rebound in the oil market has stalled as fuel consumption remains weak in the U.S., while several European governments have reintroduced measures to keep a lid on the coronavirus. At the same time, the market is struggling to absorb returning supply. Oil traders have reported a sharp increase in Iraqi exports for next month, while output from Libya has shown signs of rising as its civil war abates.
Neil Atkinson, the International Energy Agency’s head of oil industry and markets, said at a Bloomberg event last week that the agency is more likely to downgrade its demand forecasts than lift them in its next report. The IEA has already slashed its forecast for 2020 by 400,000 barrels a day in the past two months to 91.7 million barrels per day.
Russia expects a long and gradual revival of the oil market after the pandemic this year crushed energy demand across the world.
“The recovery won’t be fast, it will take quite a while before the pre-crisis levels can be reached,” Russia’s Energy Minister Alexander Novak said Sunday. In 2020, on the back of coronavirus lockdowns, global oil demand is set to decline by as much as 10% compared to last year, he said in his address to a two-day online meeting of G-20 energy ministers.
The recent rebound in the oil market has stalled as fuel consumption remains weak in the U.S., while several European governments have reintroduced measures to keep a lid on the coronavirus. At the same time, the market is struggling to absorb returning supply. Oil traders have reported a sharp increase in Iraqi exports for next month, while output from Libya has shown signs of rising as its civil war abates.
Neil Atkinson, the International Energy Agency’s head of oil industry and markets, said at a Bloomberg event last week that the agency is more likely to downgrade its demand forecasts than lift them in its next report. The IEA has already slashed its forecast for 2020 by 400,000 barrels a day in the past two months to 91.7 million barrels per day.
War-Torn Libya’s Oil Output Triples a Week After Restarting - Bloomberg
War-Torn Libya’s Oil Output Triples a Week After Restarting - Bloomberg:
Libya’s oil production has almost tripled to 250,000 barrels a day since a partial lifting last week of a blockade on the war-torn country’s energy facilities, according to two people with knowledge of the situation.
Fields that feed the three eastern export terminals of Hariga, Brega and Zueitina have added about 150,000 barrels a day of fresh output, according to the people, who asked not to be identified as they’re not authorized to speak to media. Production will rise further as ships dock and load crude from storage tanks, allowing fields to pump more, they said.
State energy firm, the National Oil Corp., is evaluating security at Libya’s four other onshore oil ports -- including Zawiya, which handles crude from Sharara, the nation’s biggest field -- to see if it’s safe to restart.
Libya’s oil production has almost tripled to 250,000 barrels a day since a partial lifting last week of a blockade on the war-torn country’s energy facilities, according to two people with knowledge of the situation.
Fields that feed the three eastern export terminals of Hariga, Brega and Zueitina have added about 150,000 barrels a day of fresh output, according to the people, who asked not to be identified as they’re not authorized to speak to media. Production will rise further as ships dock and load crude from storage tanks, allowing fields to pump more, they said.
State energy firm, the National Oil Corp., is evaluating security at Libya’s four other onshore oil ports -- including Zawiya, which handles crude from Sharara, the nation’s biggest field -- to see if it’s safe to restart.
#Qatar Airways got $1.95 billion government lifeline after losses widened | Reuters
Qatar Airways got $1.95 billion government lifeline after losses widened | Reuters:
Qatar Airways received a 7.3 billion riyal ($1.95 billion)lifeline from the government of Qatar after losing 7 billion riyals in the year to March 31, the state-owned carrier disclosed on Sunday.
The airline had flagged in March that it would seek state support as the coronavirus crisis hammered the global travel industry, but had not until now disclosed the funding.
Qatar’s government provided Qatar Airways with the support after March, when its annual losses exceeded 50% of the share capital, according to the group’s annual financial statement.
The cash injection was later converted into new shares.
Qatar Airways received a 7.3 billion riyal ($1.95 billion)lifeline from the government of Qatar after losing 7 billion riyals in the year to March 31, the state-owned carrier disclosed on Sunday.
The airline had flagged in March that it would seek state support as the coronavirus crisis hammered the global travel industry, but had not until now disclosed the funding.
Qatar’s government provided Qatar Airways with the support after March, when its annual losses exceeded 50% of the share capital, according to the group’s annual financial statement.
The cash injection was later converted into new shares.
Restructuring firm AlixPartners boosts Mideast headcount amid corporate slump | Reuters
Restructuring firm AlixPartners boosts Mideast headcount amid corporate slump | Reuters:
Turnaround and restructuring firm AlixPartners is boosting its headcount in the Middle East as corporates seek to cut costs and restructure debt amid the double shock of low oil prices and the coronavirus pandemic.
The New York-headquartered firm has recently hired six people in Dubai from one of its competitors, Alvarez & Marsal, and is looking to hire eight to 10 more restructuring specialists next year, said Gabriel Chahine, a Dubai-based managing director.
“We are hiring. We took a decision to double down on our restructuring team,” said Chahine, adding the firm now has around 40 people working in the region, where its main focus is the United Arab Emirates and Saudi Arabia.
Low oil prices are straining the two largest economies in the oil-rich Gulf while sectors such as tourism and real estate, particularly important for Middle East business hub Dubai, are suffering because of the pandemic.
Turnaround and restructuring firm AlixPartners is boosting its headcount in the Middle East as corporates seek to cut costs and restructure debt amid the double shock of low oil prices and the coronavirus pandemic.
The New York-headquartered firm has recently hired six people in Dubai from one of its competitors, Alvarez & Marsal, and is looking to hire eight to 10 more restructuring specialists next year, said Gabriel Chahine, a Dubai-based managing director.
“We are hiring. We took a decision to double down on our restructuring team,” said Chahine, adding the firm now has around 40 people working in the region, where its main focus is the United Arab Emirates and Saudi Arabia.
Low oil prices are straining the two largest economies in the oil-rich Gulf while sectors such as tourism and real estate, particularly important for Middle East business hub Dubai, are suffering because of the pandemic.
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait 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.
Oil Heavyweights #SaudiArabia, Russia Look Ready for a Showdown - Bloomberg
Oil Heavyweights Saudi Arabia, Russia Look Ready for a Showdown - Bloomberg:
Oil producers could be set for another showdown before the end of the year, with heavyweights Saudi Arabia and Russia holding different views on how to approach the halting recovery in oil demand.
Renewed restrictions on travel and social gatherings across Europe, along with the tapering of state support packages for companies, are having a chilling effect on demand for crude, just as the OPEC+ group of oil producers, who cut production by a record 9.7 million barrels a day in May, begin to contemplate the next easing of limits on their output. We should all remember what happened last time they couldn’t agree on what to do.
The International Energy Agency and the Organization of Petroleum Exporting Countries have both resumed cutting their forecasts for this year’s oil demand. In the past two months, the IEA has trimmed its forecast by 400,000 barrels a day, while OPEC has reduced its own by 500,000 barrels. And they may have further yet to fall. Neil Atkinson, the IEA’s Head of Oil Industry and Markets Division, said at a Bloomberg event on Thursday that the agency is “more likely to make a downgrade than an upgrade” to demand forecasts in its next monthly report.
The biggest headwind to oil demand comes from reduced trade, weakened economies and the knock-on effects of business closings and job losses, Standard Chartered analysts, including Emily Ashford and Paul Horsnell, said in a report last week.
Oil producers could be set for another showdown before the end of the year, with heavyweights Saudi Arabia and Russia holding different views on how to approach the halting recovery in oil demand.
Renewed restrictions on travel and social gatherings across Europe, along with the tapering of state support packages for companies, are having a chilling effect on demand for crude, just as the OPEC+ group of oil producers, who cut production by a record 9.7 million barrels a day in May, begin to contemplate the next easing of limits on their output. We should all remember what happened last time they couldn’t agree on what to do.
The International Energy Agency and the Organization of Petroleum Exporting Countries have both resumed cutting their forecasts for this year’s oil demand. In the past two months, the IEA has trimmed its forecast by 400,000 barrels a day, while OPEC has reduced its own by 500,000 barrels. And they may have further yet to fall. Neil Atkinson, the IEA’s Head of Oil Industry and Markets Division, said at a Bloomberg event on Thursday that the agency is “more likely to make a downgrade than an upgrade” to demand forecasts in its next monthly report.
#Saudi economy to bounce back in 2021; S&P affirms A-/A-2 ratings | ZAWYA MENA Edition
Saudi economy to bounce back in 2021; S&P affirms A-/A-2 ratings | ZAWYA MENA Edition:
Ratings agency S&P has affirmed Saudi Arabia’s sovereign ratings at A-/A-2 with a stable outlook, as it expects the kingdom to begin to bounce back from the slump caused by the coronavirus pandemic and low oil prices in 2021.
The agency expects the Gulf state’s “relatively strong” government and external balance sheets to continue to support the ratings, even as it acknowledged that the double whammy of low oil prices and the health outbreak is taking a toll on the Saudi economy.
“The Saudi economy has been hit hard by the twin shocks of the pandemic and lower oil prices and demand. Nevertheless, the sovereign’s sizable fiscal and external buffers should help enable it to weather the period,” S&P said.
“The economy should begin to rebound from 2021 on, as global conditions improve,” it added.
Ratings agency S&P has affirmed Saudi Arabia’s sovereign ratings at A-/A-2 with a stable outlook, as it expects the kingdom to begin to bounce back from the slump caused by the coronavirus pandemic and low oil prices in 2021.
The agency expects the Gulf state’s “relatively strong” government and external balance sheets to continue to support the ratings, even as it acknowledged that the double whammy of low oil prices and the health outbreak is taking a toll on the Saudi economy.
“The Saudi economy has been hit hard by the twin shocks of the pandemic and lower oil prices and demand. Nevertheless, the sovereign’s sizable fiscal and external buffers should help enable it to weather the period,” S&P said.
“The economy should begin to rebound from 2021 on, as global conditions improve,” it added.
Mideast Stocks - Major Gulf markets gain in early trade | ZAWYA MENA Edition
Mideast Stocks - Major Gulf markets gain in early trade | ZAWYA MENA Edition:
Major stock markets in the Gulf rose in early trade on Sunday, with financial shares bolstering the Saudi index.
The kingdom's benchmark index gained 0.3%, with Samba Financial Group rising 0.9%, while Al Rajhi Bank was up 0.2%.
Elsewhere, Najran Cement jumped 6.7%, extending gains from the previous session when the cement producer proposed first-half dividend of 0.75 riyal per share.
Dubai's main share index added 0.3%, supported by a 2% rise in Emaar Malls and a 0.4% increase in blue-chip developer Emaar Properties .
Arabtec Holding advanced 3.2%. The loss-making contractor has hired advisory firm AlixPartners to help it restructure the company's debt, Reuters reported on Thursday, citing two sources familiar with the matter.
The Abu Dhabi index was up 0.4%, led by a 0.7% gain in the country's largest lender, First Abu Dhabi Bank.
In Qatar, the index firmed 0.2%. Qatar Insurance leapt 3.6%, while Qatar Navigation was up 1.3%
The shipping and logistics group said on Sunday it had entered into a formal agreement to cooperate with American oilfield services firm Schlumberger.
Major stock markets in the Gulf rose in early trade on Sunday, with financial shares bolstering the Saudi index.
The kingdom's benchmark index gained 0.3%, with Samba Financial Group rising 0.9%, while Al Rajhi Bank was up 0.2%.
Elsewhere, Najran Cement jumped 6.7%, extending gains from the previous session when the cement producer proposed first-half dividend of 0.75 riyal per share.
Dubai's main share index added 0.3%, supported by a 2% rise in Emaar Malls and a 0.4% increase in blue-chip developer Emaar Properties .
Arabtec Holding advanced 3.2%. The loss-making contractor has hired advisory firm AlixPartners to help it restructure the company's debt, Reuters reported on Thursday, citing two sources familiar with the matter.
The Abu Dhabi index was up 0.4%, led by a 0.7% gain in the country's largest lender, First Abu Dhabi Bank.
In Qatar, the index firmed 0.2%. Qatar Insurance leapt 3.6%, while Qatar Navigation was up 1.3%
The shipping and logistics group said on Sunday it had entered into a formal agreement to cooperate with American oilfield services firm Schlumberger.
Saturday, 26 September 2020
#SaudiArabia's economy set to grow 2.3 per cent next year - The National
Saudi Arabia's economy set to grow 2.3 per cent next year - The National:
Saudi Arabia's economy is set to grow 2.3 per cent next year as stimulus measures put in place to combat a contraction caused by the pandemic and lower oil prices kickstart a "robust rebound", according to the Institute of International Finance.
The institute is forecasting a 5.2 per cent economic contraction this year following an 11 per cent second quarter decline, but said it expects strong growth in the second half of the year as the rise in new cases slows and restrictions ease.
Economic indicators such as purchasing managers' index data, private sector lending, point of sale transactions and cement output, suggest "that a sizeable rebound is already under way", the report by the institute's Mena chief economist Garbis Iradian said.
"However, the depth of contraction in 2020 and the speed of recovery in 2021 is subject to a high degree of uncertainty," it adds.
Saudi Arabia's economy is set to grow 2.3 per cent next year as stimulus measures put in place to combat a contraction caused by the pandemic and lower oil prices kickstart a "robust rebound", according to the Institute of International Finance.
The institute is forecasting a 5.2 per cent economic contraction this year following an 11 per cent second quarter decline, but said it expects strong growth in the second half of the year as the rise in new cases slows and restrictions ease.
Economic indicators such as purchasing managers' index data, private sector lending, point of sale transactions and cement output, suggest "that a sizeable rebound is already under way", the report by the institute's Mena chief economist Garbis Iradian said.
"However, the depth of contraction in 2020 and the speed of recovery in 2021 is subject to a high degree of uncertainty," it adds.
#Iran-U.S. Sanctions: Damage to Iranian Economy Is $150 Billion, Rouhani Says - Bloomberg
Iran-U.S. Sanctions: Damage to Iranian Economy Is $150 Billion, Rouhani Says - Bloomberg:
Iran lost $150 billion of revenue since U.S. President Donald Trump withdrew from a 2015 nuclear deal and reimposed sanctions on its economy, President Hassan Rouhani said.
The U.S. measures are also hampering imports of medical and food supplies, Rouhani said in a statement Saturday on state television.
Iran’s economy has shrunk over the past two years, inflation and unemployment are rising. Crude exports that the nation depends on for most of its foreign exchange are less than 10% of their level before the U.S. withdrew from the multilateral agreement in May 2018.
“If people want to curse anyone for problems and shortcomings in the country, it’s the White House,” Rouhani said.
Iran lost $150 billion of revenue since U.S. President Donald Trump withdrew from a 2015 nuclear deal and reimposed sanctions on its economy, President Hassan Rouhani said.
The U.S. measures are also hampering imports of medical and food supplies, Rouhani said in a statement Saturday on state television.
Iran’s economy has shrunk over the past two years, inflation and unemployment are rising. Crude exports that the nation depends on for most of its foreign exchange are less than 10% of their level before the U.S. withdrew from the multilateral agreement in May 2018.
“If people want to curse anyone for problems and shortcomings in the country, it’s the White House,” Rouhani said.
#Lebanon: PM-Designate Mustafa Adib Quits Over Political Impasse for Government - Bloomberg
Lebanon: PM-Designate Mustafa Adib Quits Over Political Impasse for Government - Bloomberg:
Lebanon’s prime minister-designate stepped down after failing to form a government, leaving the nation rudderless as it struggles to recover from a devastating explosion at its main port last month.
Mustafa Adib quit Saturday after a meeting with President Michel Aoun in Baabda near the capital, Beirut. The 48-year-old diplomat and academic was tapped to form a government on Aug. 31, after the previous governing coalition resigned following the Aug. 4 blast at the Port of Beirut.
“I am excusing myself from continuing the task of forming the government,” Adib told reporters after presenting his resignation letter to Aoun. “Consensus no longer exists.”
Adib had the backing of French President Emmanuel Macron, who is coordinating international aid efforts for Lebanon. Macron has warned politicians that their inability to form a cabinet of independent experts could have consequences, including potential sanctions.
Lebanon’s prime minister-designate stepped down after failing to form a government, leaving the nation rudderless as it struggles to recover from a devastating explosion at its main port last month.
Mustafa Adib quit Saturday after a meeting with President Michel Aoun in Baabda near the capital, Beirut. The 48-year-old diplomat and academic was tapped to form a government on Aug. 31, after the previous governing coalition resigned following the Aug. 4 blast at the Port of Beirut.
“I am excusing myself from continuing the task of forming the government,” Adib told reporters after presenting his resignation letter to Aoun. “Consensus no longer exists.”
Adib had the backing of French President Emmanuel Macron, who is coordinating international aid efforts for Lebanon. Macron has warned politicians that their inability to form a cabinet of independent experts could have consequences, including potential sanctions.
Friday, 25 September 2020
Oil falls on mounting COVID-19 cases, supply concerns | Reuters
Oil falls on mounting COVID-19 cases, supply concerns | Reuters:
Oil edged lower on Friday, falling more than 2% on the week as COVID-19 cases surged globally and oil supply is set to rise in coming weeks.
Brent crude futures LCOc1 settled at $41.92 a barrel, down 2 cents, while U.S. West Texas Intermediate (WTI) crude futures CLc1 lost 6 cents to $40.25 a barrel.
Brent dropped 2.9% for the week and WTI sunk 2.1%
“There is this second wave of fear overhanging the oil market at this point and that’s holding us back,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
Oil edged lower on Friday, falling more than 2% on the week as COVID-19 cases surged globally and oil supply is set to rise in coming weeks.
Brent crude futures LCOc1 settled at $41.92 a barrel, down 2 cents, while U.S. West Texas Intermediate (WTI) crude futures CLc1 lost 6 cents to $40.25 a barrel.
Brent dropped 2.9% for the week and WTI sunk 2.1%
“There is this second wave of fear overhanging the oil market at this point and that’s holding us back,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
#Kuwait’s economy will recover in 2022 | ZAWYA MENA Edition
Kuwait’s economy will recover in 2022 | ZAWYA MENA Edition:
The international credit rating agency, Standard & Poor’s (S&P), said that the rating risks related to the Kuwaiti economy is that Kuwait is completely dependent on oil revenue which is 90% of its exports.
The prospects of the oil industry have been weak significantly due to the corona pandemic subsequently there has been a sharp drop in travel industry. Oil industry has played a major role in Kuwait’s economic performance.
The impact of the epidemic on the oil industry will have a direct impact on the wider Kuwaiti economy, similar to the situation in most other countries of the world during the current year.
Basic economic expectations focus on a decline in Kuwait’s GDP by 7% this year, and it is not expected to recover next year because we estimate that the rate of economic growth in it will be zero, and this is largely due to the production cuts agreed upon.
Standard & Poor’s expected the recovery of the Kuwaiti economy to gather momentum from 2022, in addition to real GDP growth on average to reach 7% during 2022 and 2023.
The international credit rating agency, Standard & Poor’s (S&P), said that the rating risks related to the Kuwaiti economy is that Kuwait is completely dependent on oil revenue which is 90% of its exports.
The prospects of the oil industry have been weak significantly due to the corona pandemic subsequently there has been a sharp drop in travel industry. Oil industry has played a major role in Kuwait’s economic performance.
The impact of the epidemic on the oil industry will have a direct impact on the wider Kuwaiti economy, similar to the situation in most other countries of the world during the current year.
Basic economic expectations focus on a decline in Kuwait’s GDP by 7% this year, and it is not expected to recover next year because we estimate that the rate of economic growth in it will be zero, and this is largely due to the production cuts agreed upon.
Standard & Poor’s expected the recovery of the Kuwaiti economy to gather momentum from 2022, in addition to real GDP growth on average to reach 7% during 2022 and 2023.
Union Properties mulls $108m offer for #Dubai Autodrome stake - Arabianbusiness
Union Properties mulls $108m offer for Dubai Autodrome stake - Arabianbusiness:
Union Properties has announced that it has received an offer of AED400 million ($108 million) for a 40 percent stake in its subsidiary Dubai Autodrome, the UAE’s first fully-integrated multipurpose motorsport and entertainment facility.
The Dubai-based developer did not name the interested party but said it is "evaluating the offer" and will discuss it at the next meeting of the board of directors.
Dubai Autodrome, one of the highlights of the Union Properties portfolio, includes a number of world-class racing circuits and is the only one of its kind in Dubai.
It has hosted world-class races, including the FIA GT Championship, European Touring Car Championship, A1 GP, GP2 Asia, Lamborghini Super Trofeo ME, MRF Challenge, Porsche GT3 Cup Challenge ME, the Radical Middle East Cup and the Hankook 24H Dubai Endurance Race.
Union Properties has announced that it has received an offer of AED400 million ($108 million) for a 40 percent stake in its subsidiary Dubai Autodrome, the UAE’s first fully-integrated multipurpose motorsport and entertainment facility.
The Dubai-based developer did not name the interested party but said it is "evaluating the offer" and will discuss it at the next meeting of the board of directors.
Dubai Autodrome, one of the highlights of the Union Properties portfolio, includes a number of world-class racing circuits and is the only one of its kind in Dubai.
It has hosted world-class races, including the FIA GT Championship, European Touring Car Championship, A1 GP, GP2 Asia, Lamborghini Super Trofeo ME, MRF Challenge, Porsche GT3 Cup Challenge ME, the Radical Middle East Cup and the Hankook 24H Dubai Endurance Race.
Oil heading for weekly decline as coronavirus demand concerns mount | Reuters
Oil heading for weekly decline as coronavirus demand concerns mount | Reuters:
Oil prices slipped on Friday and were set for a weekly decline due to mounting worries about the impact on fuel demand of a widespread resurgence in coronavirus infections, as well as some concern about the likely return of exports from Libya.
Brent crude LCOc1 was down 4 cents at $41.90 a barrel by 0635 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped 8 cents to $40.23.
Brent is heading for a drop of nearly 3% this week with U.S. crude on track for a decline of around 2%. Both benchmarks are also heading for a monthly decline, which would be the first for Brent in six months.
“The outlook for oil demand remains challenging as prospects of new mobility restrictions continue to rise,” ANZ Research said in a note.
Oil prices slipped on Friday and were set for a weekly decline due to mounting worries about the impact on fuel demand of a widespread resurgence in coronavirus infections, as well as some concern about the likely return of exports from Libya.
Brent crude LCOc1 was down 4 cents at $41.90 a barrel by 0635 GMT, while U.S. West Texas Intermediate (WTI) crude CLc1 dropped 8 cents to $40.23.
Brent is heading for a drop of nearly 3% this week with U.S. crude on track for a decline of around 2%. Both benchmarks are also heading for a monthly decline, which would be the first for Brent in six months.
“The outlook for oil demand remains challenging as prospects of new mobility restrictions continue to rise,” ANZ Research said in a note.
Thursday, 24 September 2020
Crude steady as rising European COVID-19 cases offset U.S. oil stock draw | Reuters
Crude steady as rising European COVID-19 cases offset U.S. oil stock draw | Reuters:
Oil prices were steady on Thursday as a new wave of coronavirus cases in Europe led several countries to reimpose travel restrictions, offsetting a bullish drop in U.S. crude and fuel inventories.
Brent futures LCOc1 settled 17 cents, or 0.4%, higher at $41.94 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 38 cents, or 1.0%, to end at $40.31.
That cut Brent's premium over WTI WTCLc1-LCOc1 to its smallest closing level since late May when WTI settled higher than Brent on one day.
“Oil prices (are) stable for now but downside pressure remains ... due to rising COVID numbers across Europe,” said Craig Erlam, senior analysts at OANDA.
Oil prices were steady on Thursday as a new wave of coronavirus cases in Europe led several countries to reimpose travel restrictions, offsetting a bullish drop in U.S. crude and fuel inventories.
Brent futures LCOc1 settled 17 cents, or 0.4%, higher at $41.94 a barrel, while U.S. West Texas Intermediate (WTI) crude CLc1 gained 38 cents, or 1.0%, to end at $40.31.
That cut Brent's premium over WTI WTCLc1-LCOc1 to its smallest closing level since late May when WTI settled higher than Brent on one day.
“Oil prices (are) stable for now but downside pressure remains ... due to rising COVID numbers across Europe,” said Craig Erlam, senior analysts at OANDA.
#Dubai leads most Gulf indexes lower as COVID-19 cases spike | Reuters
Dubai leads most Gulf indexes lower as COVID-19 cases spike | Reuters:
Most Gulf markets ended lower on Thursday, with Dubai taking the hardest hit from losses in real estate shares, a day after the United Arab Emirates reported its sharpest daily spike in coronavirus cases.
The Gulf Arab state on Wednesday reported 1,083 new cases, with authorities attributing the recent surge of infections to people not adhering to social distancing measures.
Dubai's main share index .DFMGI declined 1.5%, weighed down by a 2.4% fall in blue-chip developer Emaar Properties EMAR.DU and a 1.4% decrease in Emirates NBD Bank ENBD.DU.
In Abu Dhabi, the index .ADI slipped 0.5%, driven down by a 0.9% fall in the country's largest lender First Abu Dhabi Bank FAB.AD and a 1.5% fall in Aldar Properties ALDAR.AD.
The UAE has recorded 87,530 infections and 406 deaths from COVID-19 so far. The government does not disclose where in the country of seven emirates infections or deaths occurred.
The benchmark index .TASI in Saudi Arabia, which traded after a day's break, was down 0.1%. Petrochemical maker Saudi Basic Industries 2010.SE dropped 0.9%, while Samba Financial Group 1090.SE retreated 1.5%.
Najran Cement 3002.SE, however, surged 9.9% after it proposed first-half dividend of 0.75 riyal per share.
Kuwait's index .BKP fell 0.3%, as most of the stocks on the index were in negative territory.
Moody’s downgraded Kuwait’s rating citing higher liquidity risks and weaker governance and institutional strength, as the Gulf state, battered by low oil prices, struggles to pass a law allowing it to issue international debt.
Most Gulf markets ended lower on Thursday, with Dubai taking the hardest hit from losses in real estate shares, a day after the United Arab Emirates reported its sharpest daily spike in coronavirus cases.
The Gulf Arab state on Wednesday reported 1,083 new cases, with authorities attributing the recent surge of infections to people not adhering to social distancing measures.
Dubai's main share index .DFMGI declined 1.5%, weighed down by a 2.4% fall in blue-chip developer Emaar Properties EMAR.DU and a 1.4% decrease in Emirates NBD Bank ENBD.DU.
In Abu Dhabi, the index .ADI slipped 0.5%, driven down by a 0.9% fall in the country's largest lender First Abu Dhabi Bank FAB.AD and a 1.5% fall in Aldar Properties ALDAR.AD.
The UAE has recorded 87,530 infections and 406 deaths from COVID-19 so far. The government does not disclose where in the country of seven emirates infections or deaths occurred.
The benchmark index .TASI in Saudi Arabia, which traded after a day's break, was down 0.1%. Petrochemical maker Saudi Basic Industries 2010.SE dropped 0.9%, while Samba Financial Group 1090.SE retreated 1.5%.
Najran Cement 3002.SE, however, surged 9.9% after it proposed first-half dividend of 0.75 riyal per share.
Kuwait's index .BKP fell 0.3%, as most of the stocks on the index were in negative territory.
Moody’s downgraded Kuwait’s rating citing higher liquidity risks and weaker governance and institutional strength, as the Gulf state, battered by low oil prices, struggles to pass a law allowing it to issue international debt.
Oil steadies as frail demand outlook offsets U.S. stock fall | Reuters
Oil steadies as frail demand outlook offsets U.S. stock fall | Reuters:
Oil prices steadied on Thursday, as the bullish impact of a fall in U.S. inventories was offset by a stronger dollar and a renewed wave of coronavirus cases in Europe that led several countries to reimpose travel restrictions.
Brent crude LCOc1 futures rose 8 cents, or 0.2%, to $41.85 a barrel by 1408 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 17 cents, or 0.4%, to $40.1 per barrel.
Both benchmarks traded lower earlier in the session.
On Wednesday, prices climbed slightly after government data showed U.S. oil inventories fell last week.
Oil prices steadied on Thursday, as the bullish impact of a fall in U.S. inventories was offset by a stronger dollar and a renewed wave of coronavirus cases in Europe that led several countries to reimpose travel restrictions.
Brent crude LCOc1 futures rose 8 cents, or 0.2%, to $41.85 a barrel by 1408 GMT. U.S. West Texas Intermediate (WTI) crude CLc1 futures gained 17 cents, or 0.4%, to $40.1 per barrel.
Both benchmarks traded lower earlier in the session.
On Wednesday, prices climbed slightly after government data showed U.S. oil inventories fell last week.
#Dubai Chamber and Tel Aviv Chamber sign agreement to foster businesses, startups | ZAWYA MENA Edition
Dubai Chamber and Tel Aviv Chamber sign agreement to foster businesses, startups | ZAWYA MENA Edition:
Dubai Chamber of Commerce and Industry and Tel Aviv Chamber of Commerce, represented by the Federation of Israeli Chambers of Commerce, have signed a strategic partnership agreement that paves the way for bilateral cooperation.
Under the terms of the agreement, both chambers will produce a joint study identifying synergies and sectors of mutual interest; create a roadmap of virtual events; commit to organising a business delegation and mutual visits; host a joint business forum; and support new businesses, startups, and scale-ups with readily available resources and programmes.
Other aspects of the partnership cover the chambers’ current activities, initiatives, and programmes in areas such as research, networking, arbitration, mediation, education, training, women-in-business, best-practices, sustainability and advocacy.
The partnership also brings benefits for the public and private sector across the Middle East region by opening the door for cross-border collaboration across economic fields. The agreement between the two sides is part of a broader engagement between the UAE and Israel to further peace, dialogue and stability and promote sustainable development .
Dubai Chamber of Commerce and Industry and Tel Aviv Chamber of Commerce, represented by the Federation of Israeli Chambers of Commerce, have signed a strategic partnership agreement that paves the way for bilateral cooperation.
Under the terms of the agreement, both chambers will produce a joint study identifying synergies and sectors of mutual interest; create a roadmap of virtual events; commit to organising a business delegation and mutual visits; host a joint business forum; and support new businesses, startups, and scale-ups with readily available resources and programmes.
Other aspects of the partnership cover the chambers’ current activities, initiatives, and programmes in areas such as research, networking, arbitration, mediation, education, training, women-in-business, best-practices, sustainability and advocacy.
The partnership also brings benefits for the public and private sector across the Middle East region by opening the door for cross-border collaboration across economic fields. The agreement between the two sides is part of a broader engagement between the UAE and Israel to further peace, dialogue and stability and promote sustainable development .
#AbuDhabi, #Qatar Join Wealth Funds Shaking Up Boutique World of Direct Lending - Bloomberg
Abu Dhabi, Qatar Join Wealth Funds Shaking Up Boutique World of Direct Lending - Bloomberg:
A series of mammoth investor tie-ups aimed at financing corporate buyouts is upending the world of direct lending, a corner of the credit market once dominated by boutique funds.
Tuesday’s announcement of Mubadala Investment Company’s new $3.5 billion direct lending partnership with Barings follows the Abu Dhabi sovereign wealth fund’s earlier $12 billion venture with Apollo Global Management. Last week also saw Credit Suisse reveal its new multi-billion dollar direct lending partnership with the Qatar Investment Authority.
Growing scale, driven by voracious investor appetite, is what has seen private credit balloon into an $850 billion market. The tie-ups guarantee investors access to private credit, while the managers get an immediate burst of firepower. In the case of Credit Suisse, and to a lesser extent Apollo, it’s a way of accelerating from an almost standing start to rivaling the size of the biggest direct lenders. Many private credit shops have spent a decade building up the capacity to make $1 billion loans.
“It’s an absolutely natural development,” said Jeff Griffiths, principal and co-head of private credit at Campbell Lutyens, which advises managers on raising capital from investors. “I’m surprised actually we haven’t seen more of it earlier with respect to larger investors taking an ownership position in a manager and then giving that manager capital to invest.”
A series of mammoth investor tie-ups aimed at financing corporate buyouts is upending the world of direct lending, a corner of the credit market once dominated by boutique funds.
Tuesday’s announcement of Mubadala Investment Company’s new $3.5 billion direct lending partnership with Barings follows the Abu Dhabi sovereign wealth fund’s earlier $12 billion venture with Apollo Global Management. Last week also saw Credit Suisse reveal its new multi-billion dollar direct lending partnership with the Qatar Investment Authority.
Growing scale, driven by voracious investor appetite, is what has seen private credit balloon into an $850 billion market. The tie-ups guarantee investors access to private credit, while the managers get an immediate burst of firepower. In the case of Credit Suisse, and to a lesser extent Apollo, it’s a way of accelerating from an almost standing start to rivaling the size of the biggest direct lenders. Many private credit shops have spent a decade building up the capacity to make $1 billion loans.
“It’s an absolutely natural development,” said Jeff Griffiths, principal and co-head of private credit at Campbell Lutyens, which advises managers on raising capital from investors. “I’m surprised actually we haven’t seen more of it earlier with respect to larger investors taking an ownership position in a manager and then giving that manager capital to invest.”
European, Middle Eastern & African Stocks - Bloomberg #UAE #Kuwait close; #Israel #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.
#UAE central bank urges banks to step up anti-money laundering efforts | Reuters
UAE central bank urges banks to step up anti-money laundering efforts | Reuters:
The United Arab Emirates central bank said banks should increase anti-money laundering efforts to safeguard financial stability in the country.
“To mitigate the risk of financial crimes ...banks are urged to put more efforts towards combating money laundering and financing of terrorism,” it said in a statement.
The United Arab Emirates central bank said banks should increase anti-money laundering efforts to safeguard financial stability in the country.
“To mitigate the risk of financial crimes ...banks are urged to put more efforts towards combating money laundering and financing of terrorism,” it said in a statement.
Mercuria Says Market Can’t Handle OPEC Production Increase - Bloomberg
Mercuria Says Market Can’t Handle OPEC Production Increase - Bloomberg:
Global oil markets won’t be able to absorb planned production increases by OPEC+ members as demand remains weaker than expected, said the head of commodities trader Mercuria Energy Group.
Oil stockpiles have been building in September and won’t draw down enough in the remainder of the year to be in balance if the cartel follows through with its plan to taper production cuts early next year, Marco Dunand, Mercuria’s co-founder and chief executive, said in an interview.
“We do not need the extra oil,” Dunand said from the firm’s headquarters in Geneva.
The forecast, by one of the world’s biggest independent oil traders, is ominous for Saudi Arabia, Russia and the rest of OPEC+ who have made historic output cuts this year in an effort to save a market battered by the coronavirus pandemic. With the cartel due to discuss further easing some of those curbs from January 2021, the warning that stockpiles have been building again could force OPEC+ to reconsider.
Global oil markets won’t be able to absorb planned production increases by OPEC+ members as demand remains weaker than expected, said the head of commodities trader Mercuria Energy Group.
Oil stockpiles have been building in September and won’t draw down enough in the remainder of the year to be in balance if the cartel follows through with its plan to taper production cuts early next year, Marco Dunand, Mercuria’s co-founder and chief executive, said in an interview.
“We do not need the extra oil,” Dunand said from the firm’s headquarters in Geneva.
The forecast, by one of the world’s biggest independent oil traders, is ominous for Saudi Arabia, Russia and the rest of OPEC+ who have made historic output cuts this year in an effort to save a market battered by the coronavirus pandemic. With the cartel due to discuss further easing some of those curbs from January 2021, the warning that stockpiles have been building again could force OPEC+ to reconsider.
#SaudiArabia's BinDawood Holding to delay IPO retail offering | Reuters
Saudi Arabia's BinDawood Holding to delay IPO retail offering | Reuters:
Saudi Arabia’s BinDawood Holding said on Thursday a development relating to the supermarket retailer which requires disclosure in a supplementary prospectus would result in a delay of the retail part of a planned initial public offering (IPO).
BinDawood Holding said a supplementary prospectus, to be approved by the Capital Market Authority, will contain “certain additional information regarding, among others, the institutional book-building and the retail offering period, which will no longer begin on September 27.”
The company and the joint financial advisers expect to provide updates next week, BinDawood said in a statement on its website.
Saudi Arabia’s BinDawood Holding said on Thursday a development relating to the supermarket retailer which requires disclosure in a supplementary prospectus would result in a delay of the retail part of a planned initial public offering (IPO).
BinDawood Holding said a supplementary prospectus, to be approved by the Capital Market Authority, will contain “certain additional information regarding, among others, the institutional book-building and the retail offering period, which will no longer begin on September 27.”
The company and the joint financial advisers expect to provide updates next week, BinDawood said in a statement on its website.
Oil falls as demand growth concerns outweigh U.S. stock drawdown | Reuters
Oil falls as demand growth concerns outweigh U.S. stock drawdown | Reuters:
Oil prices dropped on Thursday, weighed down by concerns that U.S. economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of COVID-19 cases in Europe have led to reimposed travel restrictions in several countries.
The jitters over demand and economic outlook due to the coronavirus resurgence have prompted a rally in the dollar as investors turned to safer assets, adding pressure to oil prices. A stronger dollar makes oil, priced in U.S. dollars, less attractive to global buyers.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 37 cents, or 0.9%, to $39.56 a barrel at 0650 GMT, while Brent crude LCOc1 futures dropped 34 cents, or 0.8%, to $41.43 a barrel.
Both benchmarks climbed slightly on Wednesday after government data showed U.S. crude and fuel stockpiles dropped last week. Gasoline inventories fell more than expected, sliding by 4 million barrels, and distillate stockpiles posted a surprise drawdown of 3.4 million barrels.
Oil prices dropped on Thursday, weighed down by concerns that U.S. economic recovery is slowing as the coronavirus outbreak lingers, while a renewed wave of COVID-19 cases in Europe have led to reimposed travel restrictions in several countries.
The jitters over demand and economic outlook due to the coronavirus resurgence have prompted a rally in the dollar as investors turned to safer assets, adding pressure to oil prices. A stronger dollar makes oil, priced in U.S. dollars, less attractive to global buyers.
U.S. West Texas Intermediate (WTI) crude CLc1 futures fell 37 cents, or 0.9%, to $39.56 a barrel at 0650 GMT, while Brent crude LCOc1 futures dropped 34 cents, or 0.8%, to $41.43 a barrel.
Both benchmarks climbed slightly on Wednesday after government data showed U.S. crude and fuel stockpiles dropped last week. Gasoline inventories fell more than expected, sliding by 4 million barrels, and distillate stockpiles posted a surprise drawdown of 3.4 million barrels.
MIDEAST STOCKS-Most Gulf markets inch lower as #UAE reports sharpest virus spike | Nasdaq
MIDEAST STOCKS-Most Gulf markets inch lower as UAE reports sharpest virus spike | Nasdaq:
Most major stock markets in the Gulf region fell in early trade on Thursday, after the United Arab Emirates reported its sharpest daily spike in coronavirus cases.
The United Arab Emirates on Wednesday reported its highest daily number of infections since the start of the pandemic at 1,083 new cases.
Dubai's main share index .DFMGI dropped 0.8%, dragged down by a 0.9% fall in Emirates NBD Bank ENBD.DU and a 1.3% retreat in Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI eased 0.3%, hurt by a 0.2% decrease in First Abu Dhabi Bank FAB.AD and a 2.5% decline in energy firm Dana Gas DANA.AD.
The UAE has recorded 87,530 infections and 406 deaths from COVID-19 so far. The government does not disclose where in the country of seven emirates the infections or deaths occurred.
The benchmark index .TASI in Saudi Arabia, which traded after a day's break, edged up 0.1% with Jabal Omar Development 4250.SE rising 2.1%, while Najran Cement 3002.SE soared 9.9% after it proposed first-half dividend of 0.75 riyal per share.
In Qatar, the index .QSI lost 0.6%, as most of the stocks were in negative territory including the Gulf's largest lender Qatar National Bank QNBK.QA, which was down 1.1%
Most major stock markets in the Gulf region fell in early trade on Thursday, after the United Arab Emirates reported its sharpest daily spike in coronavirus cases.
The United Arab Emirates on Wednesday reported its highest daily number of infections since the start of the pandemic at 1,083 new cases.
Dubai's main share index .DFMGI dropped 0.8%, dragged down by a 0.9% fall in Emirates NBD Bank ENBD.DU and a 1.3% retreat in Dubai Islamic Bank DISB.DU.
The Abu Dhabi index .ADI eased 0.3%, hurt by a 0.2% decrease in First Abu Dhabi Bank FAB.AD and a 2.5% decline in energy firm Dana Gas DANA.AD.
The UAE has recorded 87,530 infections and 406 deaths from COVID-19 so far. The government does not disclose where in the country of seven emirates the infections or deaths occurred.
The benchmark index .TASI in Saudi Arabia, which traded after a day's break, edged up 0.1% with Jabal Omar Development 4250.SE rising 2.1%, while Najran Cement 3002.SE soared 9.9% after it proposed first-half dividend of 0.75 riyal per share.
In Qatar, the index .QSI lost 0.6%, as most of the stocks were in negative territory including the Gulf's largest lender Qatar National Bank QNBK.QA, which was down 1.1%
Wednesday, 23 September 2020
Oil edges higher after U.S. crude, fuel stockpiles draw down | Reuters
Oil edges higher after U.S. crude, fuel stockpiles draw down | Reuters:
Oil prices edged higher on Wednesday, supported by U.S. government data that showed crude and fuel inventories dropped last week, though concerns about the ongoing coronavirus pandemic capped gains.
Brent crude LCOc1 rose 5 cents to settle at $41.77 a barrel. U.S. West Texas Intermediate crude CLc1 gained 13 cents to settle at $39.93 a barrel.
U.S. crude, gasoline and distillate inventories all fell last week, Energy Information Administration data showed. Crude inventories USOILC=ECI fell by 1.6 million barrels, less than forecast; gasoline stocks USOILG=ECI dropped more than expected, sliding by 4 million barrels; while distillate stockpiles USOILD=ECI posted a surprise drawdown of 3.4 million barrels.
“The big surprise was the distillates were well below average,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
Oil prices edged higher on Wednesday, supported by U.S. government data that showed crude and fuel inventories dropped last week, though concerns about the ongoing coronavirus pandemic capped gains.
Brent crude LCOc1 rose 5 cents to settle at $41.77 a barrel. U.S. West Texas Intermediate crude CLc1 gained 13 cents to settle at $39.93 a barrel.
U.S. crude, gasoline and distillate inventories all fell last week, Energy Information Administration data showed. Crude inventories USOILC=ECI fell by 1.6 million barrels, less than forecast; gasoline stocks USOILG=ECI dropped more than expected, sliding by 4 million barrels; while distillate stockpiles USOILD=ECI posted a surprise drawdown of 3.4 million barrels.
“The big surprise was the distillates were well below average,” said Phil Flynn, senior analyst at Price Futures Group in Chicago.
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